# EDGAR Filing Document

**Accession Number:** 0002081628
**File Stem:** 0001104659-25-115977
**Filing Date:** 2025-11
**Character Count:** 2302407
**Document Hash:** 858c82dcb4555ebf2b6e6548b27c7d81
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-25-115977.hdr.sgml**: 20251125

**ACCESSION NUMBER**: 0001104659-25-115977

**CONFORMED SUBMISSION TYPE**: 10-12G/A

**PUBLIC DOCUMENT COUNT**: 17

**FILED AS OF DATE**: 20251125

**DATE AS OF CHANGE**: 20251125

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Rithm Perpetual Life Residential Trust
- **CENTRAL INDEX KEY:** 0002081628
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE INVESTMENT TRUSTS [6798]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 397059385
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-12G/A
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-56783
- **FILM NUMBER:** 251521759

**BUSINESS ADDRESS:**
- **STREET 1:** 2405 YORK ROAD
- **STREET 2:** SUITE 201
- **CITY:** LUTHERVILLE-TIMONIUM
- **STATE:** MD
- **ZIP:** 21093
- **BUSINESS PHONE:** 212 850 7770

**MAIL ADDRESS:**
- **STREET 1:** 799 BROADWAY
- **STREET 2:** 8TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10003

**[**TABLE OF CONTENTS**](#TOC)

As filed with the Securities and Exchange Commission on November 25, 2025

File No. 000-56783

U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

Amendment No. 1 to

FORM 10

GENERAL FORM FOR REGISTRATION OF SECURITIES PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934

Rithm Perpetual Life Residential Trust (Exact name of registrant as specified in charter)

Maryland (State or other jurisdiction of incorporation or organization) 39-7059385 (I.R.S. Employer Identification No.) <br> 799 Broadway New York, NY (Address of principal executive offices) 10003 (Zip Code)

(212) 850-7770

(Registrant's telephone number, including area code)

 *with copies to:* 

Jason A. Friedhoff Adam M. Gross Sidley Austin LLP 787 Seventh Avenue New York, New York 10019

Securities to be registered pursuant to Section 12(b) of the Act: None

Securities to be registered pursuant to Section 12(g) of the Act: Common Shares of Beneficial Interest, par value $0.01 per share (Title of class)

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☒ Smaller reporting company ☒ <br> Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒

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#### **TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
| | **Page**  | **Page**  |
| [EXPLANATORY NOTE](#tEXNO)  |  | [1](#tEXNO) |
| [SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS](#tSNRF)  |  | [3](#tSNRF) |
| [SUMMARY RISK FACTORS](#tSRF)  |  | [4](#tSRF) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [ITEM 1. ](#tITE) <br> [BUSINESS](#tITE) <br>|  | [6](#tITE) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [ITEM 1A. ](#tITE1) <br> [RISK FACTORS](#tITE1) <br>|  | [55](#tITE1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [ITEM 2. ](#tITE2) <br> [FINANCIAL INFORMATION](#tITE2) <br>|  | [113](#tITE2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [ITEM 3. ](#tITE3) <br> [PROPERTIES](#tITE3) <br>|  | [119](#tITE3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [ITEM 4. ](#tITE4) <br> [SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT](#tITE4) <br>|  | [120](#tITE4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [ITEM 5. ](#tITE5) <br> [DIRECTORS AND EXECUTIVE OFFICERS](#tITE5) <br>|  | [121](#tITE5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [ITEM 6. ](#tITE6) <br> [EXECUTIVE COMPENSATION](#tITE6) <br>|  | [128](#tITE6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [ITEM 7. ](#tITE7) <br> [CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE](#tITE7) <br>|  | [129](#tITE7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [ITEM 8. ](#tITE8) <br> [LEGAL PROCEEDINGS](#tITE8) <br>|  | [141](#tITE8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [ITEM 9. ](#tITE9) <br> [MARKET PRICE OF AND DIVIDENDS ON THE REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS](#tITE9) <br>|  | [142](#tITE9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [ITEM 10. ](#tITE10) <br> [RECENT SALES OF UNREGISTERED SECURITIES](#tITE10) <br>|  | [149](#tITE10) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [ITEM 11. ](#tITE11) <br> [DESCRIPTION OF REGISTRANT'S SECURITIES TO BE REGISTERED](#tITE11) <br>|  | [150](#tITE11) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [ITEM 12. ](#tITE12) <br> [INDEMNIFICATION OF DIRECTORS AND OFFICERS](#tITE12) <br>|  | [167](#tITE12) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [ITEM 13. ](#tITE13) <br> [FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA](#tITE13) <br>|  | [168](#tITE13) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [ITEM 14. ](#tITE14) <br> [CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE](#tITE14) <br>|  | [169](#tITE14) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [ITEM 15. ](#tITE15) <br> [FINANCIAL STATEMENTS AND EXHIBITS](#tITE15) <br>|  | [170](#tITE15) |

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#### EXPLANATORY NOTE
Rithm Perpetual Life Residential Trust is filing this Registration Statement on Form 10 (the "**Registration Statement**") with the Securities and Exchange Commission (the "**SEC**") under the Securities Exchange Act of 1934, as amended (the "**Exchange Act**"), to register our common shares (as defined below) under Section 12(g) of the Exchange Act and comply with applicable requirements thereunder.

We have filed this Registration Statement with the SEC under the Exchange Act on a voluntary basis to provide current information to holders of our common shares.

When used in this Registration Statement, the following terms shall have the meanings set forth below, except where the context suggests otherwise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • "**we**," "**us**," "**our**" and the "**Company**" refer to Rithm Perpetual Life Residential Trust, a Maryland statutory trust, together with its feeder vehicles, if any, and consolidated subsidiaries unless the context specifically requires otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • "**ABF**" refers to asset-based finance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • "**Adviser**" refers to RCM GA Manager LLC, a Delaware limited liability company, and an affiliate of the Sponsor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • "**Affiliated Service Providers**" refer to the Sponsor and certain of its affiliates, including, without limitation, Newrez LLC ("**Newrez**"), Adoor LLC, Genesis Capital, LLC ("**Genesis**"), Guardian Asset Management LLC and GreenBarn Investment Group LLC ("**GreenBarn**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • "**Code**" means the Internal Revenue Code of 1986, as amended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • "**common shares**" refers to our common shares of beneficial interest, par value $0.01 per share, which, upon the amendment and restatement of our initial declaration of trust and adoption of our Amended and Restated Declaration of Trust ("**Declaration of Trust**"), will be classified as Class S common shares of beneficial interest, par value $0.01 per share (the "**Class S shares**"), Class T common shares of beneficial interest, par value $0.01 per share (the "**Class T shares**"), Class D common shares of beneficial interest, par value $0.01 per share (the "**Class D shares**"), Class I common shares of beneficial interest, par value $0.01 per share (the "**Class I shares**"), Class J common shares of beneficial interest, par value $0.01 per share (the "**Class J shares**"), Class J-2 common shares of beneficial interest, par value $0.01 per share (the "**Class J-2 shares**"), and Class E common shares of beneficial interest, par value $0.01 per share (the "**Class E shares**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • "**Independent Valuation Advisor**" means Phoenix Analytic Services, Inc., or a similarly qualified independent valuation advisor as determined to be appropriate from time to time by our Board (as defined below), including a majority of our independent trustees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • "**Other Rithm Accounts**" means, collectively, investors, third parties or other businesses, investment vehicles, accounts, arrangements or clients that are sponsored, managed and/or advised by the Sponsor or its affiliates, including the Adviser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • "**REIT**" means real estate investment trust under the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • "**Rithm**" or "**Sponsor**" refers to Rithm Capital Corp., a publicly-traded real estate investment trust;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • "**Rithm Affiliates**" means Rithm Capital Management LLC, the Sponsor, Rithm Capital Advisors LLC and other affiliates of the Adviser, including investment funds that are managed or may in the future be managed by any such affiliate; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • "**Rithm Investor**" means Rithm Perpetual Life Residential Investor LLC, an affiliate of the Sponsor and our initial investor in the Initial Capitalization (as defined below).

The Company is an emerging growth company as defined in the Jumpstart Our Business Startups Act of 2012 (the "**JOBS Act**").

This Registration Statement does not constitute an offer of securities of the Company or any other Rithm entity. Once this Registration Statement has been deemed effective, we will be subject to the requirements of Section 13(a) of the Exchange Act, including the rules and regulations promulgated

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thereunder, which will require us, among other things, to file annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, and we will be required to comply with all other obligations of the Exchange Act applicable to issuers filing registration statements pursuant to Section 12(g) of the Exchange Act. Additionally, we will be subject to the proxy rules in Section 14 of the Exchange Act and the Company, trustees, certain officers and principal shareholders will be subject to the reporting requirements of Sections 13 and 16 of the Exchange Act, as the case may be.

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#### SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Registration Statement contains forward-looking statements about our business and prospects, including, in particular, statements about our plans, strategies and objectives. You can generally identify forward-looking statements by our use of forward-looking terminology such as "may," "will," "plan," "should," "potential," "expect," "intend," "endeavor," "seek," "anticipate," "estimate," "overestimate," "underestimate," "believe," "continue," "could," "project," "predict," or other similar words. These statements include our plans and objectives for future operations, including plans and objectives relating to future growth and availability of funds, and are based on current expectations that involve numerous risks and uncertainties. Assumptions relating to these statements involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to accurately predict and many of which are beyond our control. Although we believe the assumptions underlying the forward-looking statements, and the forward-looking statements themselves, are reasonable, any of the assumptions could be inaccurate and, therefore, there can be no assurance that these forward-looking statements will prove to be accurate, and our actual results, performance and achievements may be materially different from that expressed or implied by these forward-looking statements. In light of the significant uncertainties inherent in these forward-looking statements, the inclusion of this information should not be regarded as a representation by us or any other person that our plans, strategies and objectives, which we consider to be reasonable, will be achieved.

You should carefully review the factors set forth in "*Item 1A. Risk Factors*" of this Registration Statement for a discussion of the risks and uncertainties that we believe are material to our business, financial condition, results of operations, net income and prospects, and our ability to satisfy our debt obligations or make distributions to our shareholders. Except as otherwise required by law, we do not undertake to publicly update or revise any forward-looking statements, including (but not limited to) as a result of new information or future events.

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#### SUMMARY RISK FACTORS
The following is only a summary of the principal risks that may adversely affect our business, financial condition, results of operations, net income and prospects, and our ability to satisfy our debt obligations or make distributions to our shareholders. The following should be read in conjunction with the complete discussion of risk factors we face, which are set forth below under "*Item 1A. Risk Factors*."

Some of the more significant risks relating to our business and investment in our common shares include:

#### Risks Related to Our Business and Operations
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We have no operating history and there is no assurance that we will be able to successfully achieve our investment objectives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We face risks associated with the deployment of our capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We are dependent on the Adviser and its affiliates and their key personnel who provide services to us through the Management Agreement, and we may not find a suitable replacement for the Adviser if the Management Agreement is terminated, or for these key personnel if they leave us or otherwise become unavailable to us.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • The Adviser manages our portfolio pursuant to very broad investment guidelines and generally is not required to seek the approval of our Board for each investment, financing or asset allocation decision made by it, which may result in our making riskier investments and, in turn, may materially and adversely affect us.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • There is no public trading market for our shares; therefore, your ability to dispose of your shares will likely be limited to repurchase by us. If you do sell your shares to us, you may receive less than the price you paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Your ability to have your shares repurchased is limited. We may choose to repurchase fewer shares (or none at all) than have been requested to be repurchased, in our discretion at any time, and the amount of shares we may repurchase is subject to caps. Further, our Board may make exceptions to, modify or suspend our share repurchase plan if it deems such action to be in our best interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We may fund any distributions from sources other than cash flow from operations, including, without limitation, the sale of or repayment under our assets, borrowings or offering proceeds, and we have no limits on the amounts we may pay from such sources.

#### Risks Related to Our Structure and Organization
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Our shareholders generally have limited voting rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Our Declaration of Trust does not provide for the annual election of trustees by our shareholders and contains provisions that could make removal of our trustees difficult, which could make it difficult for our shareholders to effect changes to our management.

#### Risks Related to Our Investments Generally
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Our loans and other investments expose us to risks associated with debt-oriented real estate investments generally.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Residential mortgage loans and other pools of residential mortgage loans that we may acquire are subject to delinquency, foreclosure and loss, which could result in losses to us.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Our success depends on the availability of attractive investment opportunities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We operate in a highly competitive market for investment opportunities and competition may limit our ability to originate and/or acquire desirable investments in our target assets and could also affect the pricing of these assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Real estate valuation is inherently subjective and uncertain.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Declining real estate valuations and impairment charges could materially and adversely affect our business, financial condition, results of operations and cash flows.

#### Risks Related to Specific Investments
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • The RTLs in which we may invest may be subject to a greater risk of loss than conventional mortgage loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Risks of cost overruns and noncompletion of renovations of properties in transition may result in significant losses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We may face risks related to lower credit quality loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We may be subject to risks associated with construction lending, such as declining real estate values, cost overruns and delays in completion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We may invest in residential bridge "fix and flip" loans, which would expose us to the risk that the borrower of such loan may not be able to sell the property on attractive terms or at all once the property has been re-developed, which may materially and adversely affect us.

#### Risks Related to Debt Financing
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • The amount of our debt may subject us to increased risk of loss and could materially adversely affect us.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We may not be able to earn returns on loans we make in excess of the interest we pay on our borrowings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • For our borrowed money, the potential for gain or loss on amounts invested in us will be magnified and may increase the risk of investing in us.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We may not be able to access financing sources on attractive terms which could adversely affect our ability to execute our business plan.

#### Risks Related to our Relationship with the Adviser and the Management Agreement
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We depend on the Adviser to select our investments and otherwise conduct our business, and any material adverse change in its financial condition or our relationship with the Adviser could have a material adverse effect on us.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • There are conflicts of interest in our relationships with the Adviser, which could result in outcomes that are not in our best interests.

#### Risks Related to our REIT Status and Certain Other Tax Items
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Our failure to qualify as a REIT would subject us to U.S. federal income tax and potentially increased state and local taxes, which would reduce the amount of our income available for distribution to our shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • REIT distribution requirements could adversely affect our ability to execute on our strategies and may require us to incur debt, sell assets or take other actions to make such distributions.

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#### ITEM 1.

#### BUSINESS
We are a Maryland statutory trust formed on July 31, 2025. We are externally managed by the Adviser, an affiliate of the Sponsor. Our investment strategy is to invest primarily in North America in ABF opportunities. We intend to initially focus on residential transitional loans ("**RTLs**") and also invest across a range of other assets and investment types, including, but not limited to, investments in new origination loans, including non-qualified mortgage loans ("**NQM loans**"), scratch-and-dent loans, non-performing loans ("**NPLs**") and reperforming loans ("**RPLs**"), closed-end second loans ("**CES loans**"), manufactured housing loans ("**MH loans**"), synthetic and/or credit risk transfers ("**SRTs**"), consumer loans, equity and other securities, including collateralized loan obligation ("**CLO**") securities ("**CLO Securities**") and other collateralized products, and other opportunistic credit investments, in each case subject to compliance with the applicable REIT tax requirements and the applicable provisions of the U.S. Investment Company Act of 1940, as amended and the rules thereunder (the "**Investment Company Act**"). Such investments may take the form of debt securities, warrants, options, other derivative instruments and other asset types, including equity-linked securities and, on an opportunistic basis, equity securities.

In September 2025, we commenced a private offering of our common shares (our "**Private Offering**") pursuant to the exemption from registration provided by Section 4(a)(2) of the U.S. Securities Act of 1933, as amended (the "**Securities Act**"), and Regulation D promulgated thereunder, and other exemptions of similar import in the laws of the states and other jurisdictions where the offering is being made.

We currently expect that the initial closing of our Private Offering of Class J shares will occur in the fourth quarter of 2025 and that concurrent with that closing we will commence operations. Following our initial closing, we expect to have subsequent closings of our Private Offering of common shares on a monthly basis. We intend to promptly invest the net proceeds from each closing in our target assets consistent with our investment strategy. In addition, we expect to obtain debt financing on our assets consistent with our leverage strategy and intend to use the proceeds from these financings to make additional investments in our target assets. We intend to use cash flows from our investments, including payments of principal and interest, and our financings to pay our operating expenses, which we expect will be primarily comprised of fees and expense reimbursements to our Adviser, interest and principal payments on our indebtedness, and dividends to our shareholders.

#### The Company
We are structured as a privately placed, non-listed, perpetual-life REIT, and therefore our securities are not listed on a national securities exchange and, as of the date of this Registration Statement, there is no plan to list our securities on a national securities exchange. We are organized as a holding company and conduct our business primarily through our subsidiaries. We intend to elect and qualify as a REIT under the Code for U.S. federal income tax purposes, commencing with the taxable year ending December 31, 2025. As such, we will generally not be subject to U.S. federal corporate income tax on that portion of our REIT taxable income that is distributed to shareholders if we distribute at least 90% of our REIT taxable income to our shareholders by prescribed dates and comply with various other requirements. Our principal office is located at 799 Broadway, New York, New York, 10003 and our telephone number is (212) 850-7770.

#### Rithm and the Adviser
Rithm, the Sponsor, is a publicly traded REIT, listed on the New York Stock Exchange. The Sponsor was created in 2013 to own mortgage servicing rights and other mortgage related assets. Since its founding, the Sponsor has evolved into a leading manager of assets and investments across the real estate, credit and financial services sectors. As of September 30, 2025, the Sponsor had approximately $8.6 billion in total stockholders' equity and managed multiple operating companies and a diverse investment portfolio. The Sponsor's investment team is made up of individuals with deep experience in real estate and financial services investing at both the institutional and operating company level. As of September 30, 2025, the Sponsor had approximately 73 employees and its operating companies employed more than 9,000 people (in each case, including contractors). The Sponsor is headquartered in New York City and has offices in London and Tokyo.

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The Sponsor's investment team is led by Michael Nierenberg and Charles Sorrentino (the "**Co-Chief Investment Officers**"). Mr. Nierenberg has over 38 years of real estate and financial services investment experience and Mr. Sorrentino has over 20 years of capital markets investment experience. A large majority of the senior members of the Sponsor's investment team have been working together for over 10 years at the Sponsor (and previously, Fortress Investment Group LLC ("**Fortress**")). The senior investment team has an average of over 30 years of industry experience and has worked together through multiple economic cycles.

RCM GA Manager LLC, the Adviser, is our investment adviser and manager pursuant to the advisory agreement between us and the Adviser (the "**Management Agreement**"). The Adviser is an affiliate of the Sponsor. The Adviser is registered with the SEC as an investment adviser pursuant to the Investment Advisers Act of 1940, as amended, and the rules thereunder (the "**Advisers Act**"). Under the terms of the Management Agreement, the Adviser is responsible for selecting and acquiring assets on our behalf, evaluating and monitoring our investments and providing day-to-day managerial services to us, subject to the overall supervision of our board of trustees (our "**Board**"). The Adviser was formed in June 2024.

We and the Adviser will seek to draw upon the Sponsor's expertise in origination, servicing, asset valuation, structured finance, operations and restructuring in the real estate, credit and financial services sectors to source, acquire, manage and seek to enhance the value of our investments. In addition, we intend to acquire assets, including RTLs and NQM loans, from both unaffiliated third parties and, if suitable opportunities are offered to us, the Sponsor's operating companies and, in each case, such loans are intended to be serviced by the Sponsor's affiliated businesses.

#### Investment Objectives
Our primary investment objectives are to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • provide shareholders current income in the form of regular, stable cash distributions to achieve an attractive distribution yield;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • preserve and protect invested capital, by focusing on high quality real assets with an emphasis on current cash-flow;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • aim to capture yield and/or capital appreciation while managing downside risk by acquiring assets where downside protection is the asset itself;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • mitigate downside risk through appropriate loan-to-value ("**LTV**") ratios with meaningful borrower equity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • provide a diversified investment alternative for shareholders seeking to allocate a portion of their long-term investment portfolios to credit-focused real estate assets with lower volatility than listed public real estate companies.

There can be no assurance that our investment objectives will be achieved. In addition, certain investment practices (e.g., the use of leverage) will, in some circumstances, potentially increase any adverse impact on our investment portfolio. Actual investment results may vary substantially from the investment objective. In particular, we note that the net asset value ("**NAV**") of non-traded REITs may be subject to volatility related to the values of their underlying assets. See "*Item 1A. Risk Factors*."

#### Investment Strategy
The Adviser believes that current investment conditions in North America continue to create compelling opportunities to invest in high quality assets in the real estate and financial services sectors at attractive yields and provide for bespoke servicing opportunities and increase investment opportunities more generally across our areas of focus. Additionally, the Adviser believes that the quality of housing collateral and borrower credit, along with high yields, creates a unique value proposition today. Furthermore, the Adviser believes this current economic backdrop will lead to increased liquidity needs among market participants, presenting significant investment opportunities for us. The Adviser also believes that it is well positioned to capitalize on the opportunities that may emerge from this economic backdrop. See "*Item 1A. Risk Factors*" for a discussion of certain risks relating to the market and the investment opportunity.

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The Adviser anticipates that finalized U.S. federal banking regulator proposals will ease capital requirements. However, the Adviser expects "higher for longer" asset yields even as the Federal Reserve Board is easing interest rate policy to change banks' asset liability management practices to shorten the duration of their assets as competition for deposits remains high. The Adviser also expects bank mergers and acquisitions activity to pick up, leading to portfolio restructurings that the Adviser foresees as creating exciting opportunities to invest in high quality assets at attractive yields and providing for bespoke servicing opportunities and increased investment opportunities more generally across our areas of focus.

We will initially seek to achieve our investment objective primarily through investments in RTLs, including bridge, construction, renovation and rental hold loans made to professional real estate developers. We may also invest across a range of other assets and investment types, including, but not limited to: (i) NQM loans; (ii) scratch-and-dent loans; (iii) NPLs and RPLs; (iv) CES loans; (v) MH loans; (vi) SRTs; (vii) consumer loans; (viii) equity and other securities, including CLO Securities and other collateralized products; and (ix) other opportunistic credit investments, in each case subject to compliance with the applicable REIT tax requirements and the applicable provisions of the Investment Company Act. There is no guarantee that the Adviser will see investment opportunities in each of the asset classes described below under "— *Investment Portfolio*", or that the Adviser will be able to pursue a diverse set of investment opportunities. See "*Item 1A. Risk Factors*" for a discussion of certain risks relating to investment opportunities.

Our investment strategy includes a focus on assets in the real estate and financial services sectors that capture yield and appreciation while minimizing downside risk in order to deliver attractive risk-adjusted returns to investors. We intend to invest primarily in North America but may also invest in other geographic areas on an opportunistic basis, capitalizing on the Sponsor's platform, relationships and expertise across regions.

With respect to cash, cash equivalents and real estate-related debt securities, we expect that they will help maintain liquidity to satisfy any share repurchases we choose to make in any particular month, and we expect to manage cash before investing subscription proceeds into investments while also seeking attractive current income.

#### Investment Portfolio

#### Target Assets
As of November 25, 2025, we have neither acquired nor entered into any arrangements to acquire any investments. However, the Adviser is in the process of identifying an initial portfolio consisting primarily of RTLs originated by Genesis and NQM loans. We expect that this portfolio would be financed at levels within our target asset-level leverage ratio range (see "— *Leverage*" below), and any acquisitions would be subject to approval by our Board and/or the Independent Compliance Reviewer (as defined below). No assurance can be given that any potential investments will close on anticipated terms or at all. Depending on market conditions, the Adviser may identify other or additional investments prior to the date of the initial closing of our Private Offering.

Our target assets will include, but not be limited to, the following types of real estate investments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • ***RTLs***: Subject to compliance with the applicable REIT tax requirements and the applicable provisions of the Investment Company Act, we will initially seek to achieve our investment objective primarily through investments in RTLs. Initially, we expect to target a portfolio consisting of 65% to 75% of RTLs (on an equity basis). However, there can be no assurance that we will meet such target and such target and the composition of our portfolio are subject to change, including due to market conditions, availability of investment opportunities and financing and tax and regulatory considerations. RTLs are short-duration assets that can be term, non-mark to market financed. RTLs include products such as bridge, construction, renovation and rental hold loans made to professional real estate developers. The Adviser believes there is an opportunity to acquire RTLs from both unaffiliated third parties and, to the extent offered to us, the Sponsor's wholly-owned subsidiary, Genesis. The Adviser also intends to leverage Genesis's internal credit underwriting and construction management team to service the loans.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • ***Other Investments***: Consistent with maintaining our qualification as a REIT under the Code, and maintaining our exclusion from registration under the Investment Company Act, we may also invest across a range of other assets and investment types, including, but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • ***NQM Loans*** — NQM loans are loans that do not meet the "Qualified Mortgage" rules per the Consumer Financial Protection Bureau ("**CFPB**"). These loans do not qualify for regular income verification due to certain characteristics, but meet ability-to-pay requirements as set by the CFPB. The Adviser believes there is an opportunity to acquire NQM loans, which typically feature higher rates than agency mortgages and products, from both unaffiliated third parties and, to the extent offered to us, the Sponsor's wholly-owned servicer, Newrez. The Adviser also intends to leverage Newrez to manage the loans. Initially, we expect to target a portfolio consisting of 25% to 35% of NQM loans (on an equity basis).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • ***Scratch-and-Dent Loans*** *—* The Adviser believes there is an opportunity to acquire "scratch-and-dent" loans, which are loans that have become ineligible for sale to government-sponsored entities ("**GSEs**"), generally due to reasons that do not impair performance (e.g., document deficiencies, missing signatures or debt-to-income ratios slightly above the GSE threshold). When a GSE flags a loan as agency ineligible, the loan is put back or sold to the third-party seller, who must then rely on the non-GSE market to buy the loan off their balance sheet. The Adviser believes that there are investment opportunities to acquire these loans, which have strong credit characteristics, at a discount, and also intends to leverage Newrez to service them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • ***NPLs & RPLs*** *—* The Adviser believes there will be an increasing number of NPLs and RPLs available to acquire at discounts, given evolving trends that are putting pressure on homeowners. The Adviser intends to leverage Newrez to keep and/or bring applicable loans to reperforming status, restoring much of their value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • ***CES Loans*** — The Adviser believes there is a strategic opportunity to acquire CES loans. These loans are structured as second liens where the borrower receives the full loan amount as a lump-sum disbursement at origination, in contrast to home equity lines of credit, which allow for funds to be drawn over time. The market for CES loans has experienced increased demand, driven in part by the so-called housing 'lock-in effect' — where higher current mortgage rates discourage homeowners from moving, as they would lose their existing lower-rate loans. In this interest rate environment, CES loans enable borrowers to access home equity for specific purposes (e.g., renovations or large expenses) without refinancing their first-lien mortgage, which often carries a more favorable interest rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • ***MH Loans*** — MH loans are designed for the purchase or refinancing of a factory-built home that is transported to a permanent site. As home prices continue to rise in the United States, resulting in a housing shortage, manufactured housing has gained market share over the past several years as a result of increased affordability compared to traditional site-built homes. The Adviser believes there is an opportunity to source and acquire MH loans, as the Adviser expects higher costs of materials and a shrinking construction workforce to represent a continued challenge for the recovery of the housing market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • ***SRT*** — SRT is a mechanism employed by financial institutions to distribute risk associated with a pool of assets to other parties without selling the underlying assets. Following strong demand supporting proof-of-concept, the Adviser expects banks to continue issuing SRTs for balance sheet and capital maintenance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • ***Consumer Loans*** — The Adviser believes there is an opportunity to source and acquire consumer loans from third parties backed by household debt (e.g., auto loans, credit cards, personal installment loans). Despite rising credit card and auto delinquencies, the Adviser believes strong retail spending and healthy corporate margins indicate a resilient consumer and has the potential to result in attractive investment opportunities. The Adviser has the necessary experience and in-house tools to favorably position itself across specific product offerings and origination platforms in efforts to withstand an ever-changing macroeconomic backdrop.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • ***CLO Securities*** — CLO Securities represent a pool of senior secured corporate loans structured into different tranches with varying levels of risk and return. The Adviser believes there is an

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opportunity to source and acquire equity, mezzanine and senior interests in third-party managed CLO Securities to take advantage of improved credit conditions from expected earnings-friendly policy changes and lower future interest rates. The Adviser intends to leverage the combined expertise of our Sponsor's Sculptor Capital Management, Inc. (together with its affiliates (including any investment vehicles, accounts or arrangements managed or advised thereby, "**Sculptor Accounts**"), "**Sculptor**") platform and, when acquired, our Sponsor's Crestline Management, L.P. (together with its affiliates (including any investment vehicles, accounts or arrangements managed or advised thereby, "**Crestline Accounts**"), "**Crestline**") platform, and the Sponsor's platform to ensure prudent credit underwriting. We may also acquire interests in different tranches of CLO Securities sponsored by Sculptor, Crestline or certain other asset managers under common control with Rithm ("**Acquired Managers**"). See "*Item 7. Certain Relationships and Related Transactions, and Director Independence — Potential Conflicts of Interest — Acquired Managers*."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • ***Other Opportunistic Credit Investments*** — Opportunities could come from a variety of sectors impacted by volatility and lack of access to capital, including businesses seeking to go public or seeking to make strategic acquisitions.

#### Cash, Cash Equivalents and Other Short-Term Investments
We intend to hold cash, cash equivalents and other short-term investments. These types of investments may include the following, to the extent consistent with our intended qualification as a REIT:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • money market instruments, cash and other cash equivalents (such as high-quality short-term debt instruments, including commercial paper, certificates of deposit, bankers' acceptances, repurchase agreements, interest-bearing time deposits and credit rated corporate debt securities);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • U.S. government or government agency securities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • investment grade-rated corporate debt or asset-backed securities of U.S. or foreign entities, or investment grade rated debt securities of foreign governments or multi-national organizations.

We may pursue investments outside of the categories described herein to take advantage of prevailing market conditions. We may also acquire asset portfolios on a standalone basis or as part of a corporate transaction.

#### Potential Competitive Strengths
We believe our potential competitive strengths are the Sponsor's proprietary sourcing capabilities, active management and operational expertise, extensive skills and industry experience, team continuity since the inception of the Sponsor's business, and extensive experience as a REIT manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • ***Proprietary Sourcing Capabilities***. The Sponsor and its affiliates, Genesis and Newrez, are leading direct lenders in the United States to homebuilders and homeowners. This enables the Sponsor to source newly originated assets while exercising controls on underwriting quality and to service the investments to meet the return potential of the assets. We believe that, in addition to sourcing assets from Genesis and Newrez (to the extent such opportunities are offered to us), unaffiliated third parties can also be a source for additional opportunities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • ***Active Management***. The Sponsor actively manufactures assets, underwrites credit and dynamically manages risk, leveraging its operational and capital markets expertise to deliver exceptional service to borrowers. The Sponsor's nationwide servicing platforms provide hands-on solutions for customers while offering valuable market insights that inform the Sponsor's investment strategy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • ***Operational Expertise****.* Since inception, the Sponsor has focused on certain investment strategies that leverage the Sponsor's operational expertise, which has allowed the Sponsor to differentiate itself from other capital providers and to secure proprietary deal flow. Historically, this has included a wide range of investment strategies, including mortgage products such as NQM loans, RPLs and NPLs, as well as RTLs. The Sponsor has acquired origination and servicing businesses to complement the senior investment team's management experience in these asset classes. This enables the

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investment team to take advantage of changes in conditions, from fluctuations in the housing market to how households are managing their balance sheets, and track credit metrics in order to detect early signs of any deterioration in asset performance. Aggregating this information across the complex of affiliate loan books provides insights that informs underwriting and servicing decisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • ***Team Continuity.*** A large majority of the senior members of the Sponsor's investment team have been working together for over 10 years at the Sponsor, and many even longer at previous firms, enhancing consistency in sourcing, underwriting, structuring, diligence and, most importantly, returns. The Sponsor has historically been able to attract and retain top talent by providing exceptional development opportunities, including allowing team members to take responsibility over certain asset classes or product types.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • ***Experienced REIT Manager.*** The Sponsor has demonstrated the ability to grow a successful externally- and internally-managed REIT, having grown the Sponsor itself from $1 billion in total stockholders' equity to approximately $8.6 billion today. The Sponsor also became the external manager of a publicly traded commercial real estate investment platform, Rithm Property Trust Inc. (NYSE: RPT), in June 2024. Accordingly, the Sponsor and its subsidiaries have existing infrastructure and operational experience in managing REITs.

#### Investment Origination, Underwriting and Active Asset Management
The Adviser's investment process will be based on criteria that provide a clear framework for assessing investment opportunities and selecting those opportunities that, in the Adviser's opinion, aim to capture yield and/or capital appreciation while managing downside risk.

The Adviser's investment process will generally follow the steps outlined below, although the actual evaluation process for any particular investment may vary, depending on the facts and circumstances surrounding such investment opportunity. This summary is included for illustrative purposes only. While this summary illustrates common elements and themes of the Adviser's investment process, in practice, the investment process will be tailored as appropriate for each investment and may vary from the summary included herein.

#### Overview
Our investment process will be led by the Adviser's senior investment professionals in consultation with the Co-Chief Investment Officers.

The investment process will begin with deal sourcing and is expected to include opportunities generated through the Sponsor's broad network. The Adviser believes that the Sponsor's network, cultivated through decades-long professional relationships within the real estate and financial services sectors, will help to provide a robust deal pipeline for us. The Sponsor's wholly-owned operating companies are also expected to potentially provide propriety sourcing and origination opportunities across asset classes, significant market insight, and strong asset servicing capabilities.

Our investment professionals generally meet multiple times a week to discuss prospective investments, as well as investments in process, with focused meetings of individual sub-investment teams also taking place. The Co-Chief Investment Officers will generally meet with other senior investment professionals as often as necessary during the underwriting, structuring and negotiation processes. Each potential investment opportunity will be staffed in accordance with the transaction requirements.

Once an investment is identified, the Adviser will begin the diligence process. While the diligence process may vary depending on the nature of the prospective investment, it is expected to include, but is not limited to, the evaluation and due diligence of data room materials, the construction and analysis of transaction operating models and the creation and presentation of an Investment Committee (as defined below) memo.

In connection with analyzing an investment opportunity, the Adviser may engage investment bankers, accounting firms, law firms and other experts to assist with the underwriting, evaluation and negotiation

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process. While the Adviser generally expects to rely on internal resources for financial analysis, it may also engage outside consultants or diligence providers to assist with asset-specific due diligence, particularly on larger transactions.

#### Investment Process
The Adviser believes that its investment process will enable the investment team to filter through a high volume of potential deals, execute attractive investment opportunities and remain engaged with the relevant asset throughout its lifecycle. The actual investment process may vary, including materially, from the process described herein, including as a result of changes in market conditions. The investment process will generally include the relevant investment team presenting deals to the Adviser's investment committee (the "**Investment Committee**") in order to move into approval phase. Once approved by the Investment Committee, the investment team will seek to complete final diligence, agreements and closing.

The Adviser believes that the following capabilities will materially contribute to the overall investment process: (i) asset sourcing and credit expertise; (ii) robust asset servicing; (iii) proprietary market insights; (iv) ability to adapt to market changes; and (v) term out financing.

#### Access to the Sponsor's In-House Manufacturing Capabilities
The Sponsor has the ability to originate, acquire, service and securitize assets for us through its family of wholly-owned operating companies (to the extent such opportunities are offered to us).

![[MISSING IMAGE: tb_propertysource-4clr.jpg]](tb_propertysource-4clr.jpg)

(1) *Genesis is the second largest private capital RTL lender based on Genesis internal estimates.* 

(2) *Source: Inside Mortgage Finance report as of Q3'25.* 

#### Extensive Capital Markets Experience
The Adviser expects us to benefit from the Sponsor's expertise in sourcing and executing asset-level financing while mitigating risk via term, non-mark to market structures. The Sponsor has significant capital markets experience and, from April 1, 2013 through September 30, 2025, has completed 117 securitizations (with more than $60 billion in unpaid principal balance) across various asset classes.

See "*Item 7. Certain Relationships and Related Transactions, and Director Independence*" for further information relating to transactions with the Sponsor and its affiliates.

#### Leverage
We intend to use leverage to provide additional funds to support our investment activities. After we raise substantial proceeds in our Private Offering and acquire a diversified portfolio of investments (the "**Ramp-Up Period**"), our target asset-level leverage ratio will be 65% to 85%.

Our leverage ratio is measured by dividing (i) the aggregate principal amount of our outstanding indebtedness (including both entity-level and investment-level debt), by (ii) the gross asset value of our

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investments (measured using the greater of fair market value and cost). For purposes of calculating our leverage, we will exclude (i) any senior portions of investments that are sold to, or held by, third-party lenders to achieve "structural leverage," where we retain a mezzanine or other subordinate investment that is unencumbered and not otherwise pledged as collateral for borrowed money and (ii) any term-matched structured products, such as non-recourse cross-collateralized leverage, partial-recourse cross-collateralized leverage and collateralized loan obligations.

During the Ramp-Up Period and/or times of increased investment and capital market activity, we may employ greater leverage to quickly build a broader portfolio of assets. We may leverage our portfolio by assuming or incurring secured or unsecured investment-level or entity-level debt. We may in the future procure financing from the Adviser or its affiliates; provided that any such financing will be approved by a majority of our trustees, including a majority of our independent trustees, not otherwise interested in the transaction as fair, competitive and commercially reasonable and no less favorable to us than comparable loans between unaffiliated parties under the same circumstances. We may decide to reserve borrowing capacity under any future lines of credit to be used to fund repurchases of our common shares in the event that repurchase requests exceed our operating cash flows and net proceeds from our continuous Private Offering, to fund debt investments, to mitigate the potential for margin calls or for any other corporate purpose.

Our actual leverage level will be affected by a number of factors, some of which are outside our control. Significant inflows of proceeds from the sale of our common shares generally will cause our leverage as a percentage of our gross assets to decrease, at least temporarily. Significant outflows of equity as a result of repurchases of our common shares generally will cause our leverage as a percentage of our gross assets to increase, at least temporarily. Our leverage as a percentage of our gross assets will also increase or decrease with decreases or increases, respectively, in the gross asset value of our portfolio. If we borrow under a line of credit to fund repurchases of our common shares or for other purposes, our leverage would increase and may exceed our target leverage. In such cases, our leverage may remain at the higher level until we receive additional net proceeds from our continuous Private Offering or sell some of our assets to repay outstanding indebtedness.

There is, however, no limit on the amount we may borrow with respect to any individual investment or, subject to our Board's oversight, on a portfolio-wide basis. During the Ramp-Up Period, our asset-level leverage ratio may exceed our target. We may also exceed our target asset-level leverage ratio at times, particularly during a market downturn or in connection with a large acquisition. Our Board will periodically review our aggregate borrowings. In connection with such review, our Board may determine to modify our target asset-level leverage ratio in light of then-current economic conditions, relative costs of debt and equity capital, fair values of our investments, general conditions in the market for debt investment, growth and investment opportunities or other factors.

We may elect to borrow against our loan investment assets through, among others, the kinds of arrangements described below:

#### Loan Facilities
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • ***Warehouse Facility***: A financing facility, such as a repurchase agreement, used by us for the purpose of financing loan investment assets. Defining characteristics generally include: margin calls; partial recourse or full recourse; and cross collateralization with other loan investment assets on the same warehouse facility. As of November 25, 2025, the Company and certain of its subsidiaries are parties to warehouse facilities with Churchill MRA Funding I LLC ("**Churchill**") and Wells Fargo Bank, National Association ("**Wells Fargo**"). See "*Item 2. Financial Information — Management's Discussion and Analysis of Financial Condition and Results of Operations — Financial Condition, Liquidity and Capital Resources*" for more information on these warehouse facilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • ***Term Loan Financing (Debt-on-Debt)***: A credit facility used by us for the purpose of financing a pre-identified pool of loan investment assets. Defining characteristics generally include: no margin call rights, partial to no recourse, and cross collateralization with other loan investment assets on the same facility.

The financing of loan asset investments under these facilities are often short term in nature. Accordingly, we may be unable to renew short term financing on favorable terms. Also, many warehouse or aggregation

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financing facilities for loan asset investments will accrue interest at a floating rate of interest. Meanwhile, the loan asset investments may earn interest at a fixed rate of interest. Accordingly, we could be subject to interest rate risk on our loan asset investments while they are subject to floating rate financing facilities.

#### Securitization
We may choose to contribute all or a subset of the loan investment assets in the portfolio to an asset-backed securitized offering, such as mortgage-backed securities, or some other structured finance vehicle. Such asset-backed securitizations may include loan investment assets contributed by other Rithm Affiliates, including the Sponsor. Defining characteristics generally include: match term; no margin call rights; no recourse; and cross collateralization with other loan investment assets on the same securitization.

#### Subscription Line
We expect to borrow through a subscription-based credit facility (i.e., a "subscription line"), which poses additional risks as discussed herein.

#### Temporary Strategies
During periods of adverse market volatility or unfavorable economic conditions, the Adviser may temporarily depart from our investment strategy and investment guidelines. During these periods, we may also determine to pay down certain of our indebtedness and have indebtedness below our target leverage or we may borrow more to provide for additional liquidity causing us to exceed our target leverage. It is impossible to predict when, or for how long, the Adviser will use these alternative strategies. There can be no assurance that such strategies will be successful.

#### Operating and Regulatory Structure

#### REIT Qualification
We intend to elect and qualify as a REIT under the Code for U.S. federal income tax purposes, commencing with our taxable year ending December 31, 2025. As such, we will generally not be subject to U.S. federal corporate income tax on that portion of our REIT taxable income that is distributed to shareholders if we distribute at least 90% of our REIT taxable income to our shareholders by prescribed dates and comply with various other requirements. Qualification and taxation as a REIT depend on our ability to meet, on a continuing basis, through actual results of operations, distribution levels, diversity of share ownership and various qualification requirements imposed upon REITs by the Code. In addition, our ability to qualify as a REIT may depend in part upon the operating results, organizational structure and entity classification for U.S. federal income tax purposes of certain entities in which we invest. Our ability to qualify as a REIT also requires that we satisfy certain asset and income tests, some of which depend upon the fair market values of assets directly or indirectly owned by us or which serve as security for loans made or owned by us. Such values may not be susceptible to a precise determination. Accordingly, no assurance can be given that the actual results of our operations for any taxable year will satisfy the requirements for qualification and taxation as a REIT. See "*Item 1A. Risk Factors — Risks Related to our REIT Status and Certain Other Tax Items*."

#### Investment Company Act Considerations
We intend to engage primarily in the business of investing in RTLs and other loans and assets and intend to conduct our operations so that neither we nor any of our subsidiaries are required to register as an investment company under the Investment Company Act. As a result, we should not be subject to the rules and regulations under the Investment Company Act applicable to investment companies, including but not limited to, provisions requiring diversification of investments, limiting leverage and restricting investments in illiquid assets.

In relevant part, a company is an "investment company" under the Investment Company Act:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • under Section 3(a)(1)(A), if it is, or holds itself out as being, engaged primarily, or proposes to engage primarily, in the business of investing, reinvesting or trading in securities; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • under Section 3(a)(1)(C), if it is engaged, or proposes to engage, in the business of investing, reinvesting, owning, holding or trading in securities and owns, or proposes to acquire, "investment securities" having a value exceeding 40% of the value of its total assets (exclusive of U.S. government securities and cash items) on an unconsolidated basis, which we refer to as the "40% test." The term "investment securities" generally includes all securities except U.S. government securities and securities of majority-owned subsidiaries that are not themselves investment companies and are not relying on the exemption from the definition of "investment company" under Section 3(c)(1) or Section 3(c)(7) of the Investment Company Act.

We are organized as a holding company and conduct our businesses primarily through our subsidiaries. We intend to conduct our operations so that we comply with the 40% test. The securities issued by any wholly-owned or majority-owned subsidiaries that we may form in the future that are excepted from the definition of "investment company" based on Section 3(c)(1) or Section 3(c)(7) of the Investment Company Act, together with any other investment securities we may own, may not have a value in excess of 40% of the value of our total assets (exclusive of U.S. government securities and cash items) on an unconsolidated basis. We will monitor our holdings to ensure continuing and ongoing compliance with this test. In addition, we believe that we will not be considered an investment company under Section 3(a)(1)(A) of the Investment Company Act because we will not engage primarily or hold ourselves out as being engaged primarily in the business of investing, reinvesting or trading in securities. Rather, through our subsidiaries, we are primarily engaged in non-investment company businesses related to real estate.

The Investment Company Act defines a majority-owned subsidiary of a person as a company 50% or more of the outstanding voting securities of which are owned by such person, or by another company which is a majority-owned subsidiary of such person. The Investment Company Act defines a "wholly-owned subsidiary" of a person as a company 95% or more of the outstanding voting securities of which are owned by such person or by another company which is a wholly-owned subsidiary of such person. The Investment Company Act further defines voting securities as any security presently entitling the owner or holder thereof to vote for the election of directors of a company. Generally, we treat companies in which we own at least a majority of the outstanding voting securities as majority-owned subsidiaries for purposes of the 40% test. We have not requested that the SEC or its staff approve our treatment of any company as a majority-owned subsidiary, and neither the SEC nor its staff has done so. If the SEC or its staff were to disagree with our treatment of one or more companies as majority-owned subsidiaries, we would need to adjust our strategy and our assets in order to continue to pass the 40% test. Any such adjustment in our strategy or assets could have a material adverse effect on us.

We expect that most of our wholly-owned and majority-owned subsidiaries will not be relying on either Section 3(c)(1) or Section 3(c)(7) of the Investment Company Act and will either not fall within the definition of "investment company" under Section 3(a)(1) or will rely on the exclusion from the definition of "investment company" contained in Section 3(c)(5)(C) of the Investment Company Act. As a result, we expect that our interests in these subsidiaries (which we expect will constitute a substantial majority of our assets) will not constitute "investment securities" for purposes of the 40% test. Consequently, we expect to be able to conduct our operations so that we are not required to register as an investment company under the Investment Company Act.

We expect certain of our subsidiaries to qualify for the exclusion from the definition of "investment company" pursuant to Section 3(c)(5)(C) of the Investment Company Act, which is available for certain entities "primarily engaged in the business of purchasing or otherwise acquiring mortgages and other liens on and interests in real estate." To qualify for the exclusion pursuant to Section 3(c)(5)(C), based on positions set forth by the staff of the SEC, each such subsidiary generally is required to hold (i) at least 55% of its assets in qualifying real estate assets and (ii) at least 80% of its assets in qualifying real estate assets and real estate-related assets.

We assess our subsidiaries' compliance with Section 3(c)(5)(C) by reference to SEC staff no-action positions and other guidance. No-action positions are based on specific factual situations that may be substantially different from the factual situations our subsidiaries may face, and a number of the no-action positions relevant to our business were issued more than twenty years ago. There may be no guidance from the SEC staff that applies directly to our factual situations and as a result we may have to apply SEC staff

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guidance that relates to other factual situations by analogy. No assurance can be given that the SEC or its staff will concur with our classification of our assets. In addition, the SEC or its staff may, in the future, issue further guidance that may require us to reclassify our assets for purposes of the Investment Company Act, including for purposes of our subsidiaries' compliance with the exclusion provided in Section 3(c)(5)(C) of the Investment Company Act. There is no guarantee that we will be able to adjust our assets in the manner required to maintain an exclusion from registration under the Investment Company Act and any adjustment in our strategy or assets could have a material adverse effect on us.

To the extent that the SEC or its staff provide new specific guidance the exemptions under Section 3(c)(5)(C) or 3(c)(6) of the Investment Company Act, we may be required to adjust our strategy accordingly. Any additional guidance from the SEC or its staff could provide additional flexibility to us, or it could further inhibit our ability to pursue the strategies we have chosen.

Specifically, based on certain no-action letters and other guidance issued by the SEC staff, we expect to treat certain mortgage loans, mezzanine loans and certain other assets that represent an actual interest in residential or commercial real estate or are a loan or lien fully secured by residential or commercial real estate as qualifying real estate assets. On the other hand, we expect to treat certain other types of mortgages and certain other indirect interests in residential or commercial real estate as real estate-related assets. The SEC staff has not, however, published guidance with respect to the treatment of some of these assets under Section 3(c)(5)(C). To the extent the SEC staff publishes new or different guidance with respect to these matters, we may be required to adjust our strategy or assets accordingly. There can be no assurance that we will be able to maintain this exclusion from registration for certain of our subsidiaries. In addition, we may be limited in our ability to make certain investments, and these limitations could result in a subsidiary holding assets we might wish to sell or selling assets we might wish to hold.

We may hold a portion of our investments through partnerships, joint ventures, securitization vehicles or other entities with third-party investors. In connection with any such investment, and consistent with no-action letters and other guidance issued by the SEC staff addressing the classification of such investments for Investment Company Act purposes, we generally intend to be active in the management and operation of any such entity and have the right to approve major decisions. We will not participate in joint ventures or similar arrangements in which we do not have or share control to the extent that we believe such participation would potentially threaten our ability to conduct our operations so that we comply with the 40% test or would otherwise potentially render any of our subsidiaries seeking to rely on Section 3(c)(5)(C) unable to rely on such exclusion.

It is possible that some of our subsidiaries may seek to rely on the Investment Company Act exemption provided to certain structured financing vehicles by Rule 3a-7. Any such subsidiary would need to be structured to comply with Rule 3a-7 and with any guidance that may be issued by the Division of Investment Management of the SEC on the restrictions contained in Rule 3a-7. In certain circumstances, compliance with Rule 3a-7 may require, among other things, that the indenture governing the subsidiary include limitations on the types of assets the subsidiary may sell or acquire out of the proceeds of assets that mature, are refinanced or otherwise sold, on the period of time during which such transactions may occur, and on the level of transactions that may occur. We expect that the aggregate value of our interests in subsidiaries that may in the future seek to rely on Rule 3a-7, if any, will comprise less than 20% of our total assets on an unconsolidated basis. We may in the ordinary course of our business form securitization trusts in the future that may seek to rely on Rule 3a-7.

In order to not have to register as an "investment company" under the Investment Company Act, we and/or our subsidiaries may be restricted from making certain investments or may structure investments in a manner that would be less advantageous to us than would be the case in the absence of such requirements. For example, these restrictions will limit the ability of our subsidiaries to invest directly in equity and other CLO Securities, certain collateralized products and certain opportunistic credit investments. Further, the mortgage-related investments that we acquire are limited by the provisions of the Investment Company Act and the rules and regulations promulgated thereunder. We also may be required at times to adopt less efficient methods of financing for certain of our mortgage-related investments, and we may be precluded from acquiring certain types of mortgage-related investments. Additionally, Section 3(c)(5)(C) of the Investment Company Act prohibits us from issuing redeemable securities. If we fail to qualify for an exemption from registration as an investment company under the Investment Company Act or an exclusion

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from the definition of an investment company, our ability to use leverage would be substantially reduced, and we would not be able to conduct our business as described in this Registration Statement.

No assurance can be given that the SEC staff will concur with our classification of our or our subsidiaries' assets or that the SEC staff will not, in the future, issue further guidance that may require us to reclassify those assets for purposes of qualifying for an exclusion or exemption from registration under the Investment Company Act. To the extent that the SEC staff provides more specific guidance regarding any of the matters bearing upon the definition of "investment company" and the exclusions or exceptions to that definition, we may be required to adjust our investment strategies accordingly.

Additional guidance from the SEC staff could provide additional flexibility to us, or it could further inhibit our ability to pursue the investment strategies we have chosen. If the SEC or its staff take a position contrary to our view with respect to the characterization of any of the assets or securities we invest in, we may be deemed an unregistered investment company. Therefore, in order not to be required to register as an investment company, we may need to dispose of a significant portion of our assets or securities or acquire significant other additional assets that may have lower returns than our expected portfolio, or we may need to modify our business plan to register as an investment company, which would result in significantly increased operating expenses and would likely entail significantly reducing our indebtedness, which could also require us to sell a significant portion of our assets, which would likely reduce our profitability. We cannot assure you that we would be able to complete these dispositions or acquisitions of assets, or deleveraging, on favorable terms, or at all. Consequently, any modification of our business plan could have a material adverse effect on us.

If the SEC determined that we were an unregistered investment company, there would be a risk that we would be subject to monetary penalties and injunctive relief in an action brought by the SEC, that we would potentially be unable to enforce contracts with third parties and that third parties could seek to obtain rescission of transactions undertaken during the period for which it was established that we were an unregistered investment company. Any of these results would have a material adverse effect on us.

 *For additional discussion of the risks that we would face if we were required to register as an investment company under the Investment Company Act, see "Item 1A. Risk Factors — Risks Related to Our Structure and Organization — Our shareholders' investment return may be reduced if we register as an investment company under the Investment Company Act."* 

#### Operating Structure and REIT Considerations
A non-listed REIT is a REIT whose shares are not listed for trading on a stock exchange or other securities market. We use the term "perpetual-life REIT" to describe an investment vehicle of indefinite duration, whose common shares are intended to be sold by the REIT periodically on a continuous basis at a price generally equal to the REIT's prior period NAV per share. In our perpetual-life structure, the investors may request that we repurchase their shares on a monthly basis at a price equal to our NAV per share of the applicable class as of the last calendar day of the prior month, but we are not obligated to repurchase any shares and may choose to repurchase only some, or even none, of our shares that have been requested to be repurchased in any particular month in our discretion. While we may consider a liquidity event at any time in the future, we are not obligated by our Declaration of Trust or otherwise to effect a liquidity event at any time.

We intend to elect and qualify as a REIT under the Code for U.S. federal income tax purposes, commencing with our taxable year ending December 31, 2025, and we intend to operate in a manner consistent with such an election. In general, a REIT is a company that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • combines the capital of many investors to acquire or provide financing for real estate assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • offers the benefits of a real estate portfolio under professional management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • satisfies the various requirements of the Code relating to the sources of its income, the nature of its assets, its distribution levels and the diversity of its share ownership, and various other qualification tests imposed under the Code, including a requirement to distribute to shareholders at least 90% of its REIT taxable income each year; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • is generally not subject to U.S. federal corporate income taxes on its REIT taxable income that it currently distributes to its shareholders, which substantially eliminates the "double taxation" (i.e., taxation at both the corporate and shareholder levels) that generally results from investments in a C corporation.

However, even if an entity qualifies as a REIT, it will nonetheless be subject to U.S. federal, state, local and non-U.S. tax in certain circumstances.

In order to comply with REIT requirements, we may need to forego otherwise attractive opportunities and limit the manner in which we conduct our operations. See "*Item 1A. Risk Factors — Risks Related to our REIT Status and Certain Other Tax Items*."

The following chart shows our current ownership structure and our relationship with the Sponsor, the Adviser and their respective affiliates as of the commencement of our Private Offering. The Adviser or an affiliate thereof may form funds that invest with us in an entity (an "**Aggregator Entity**") below us (i.e., between us and an asset).

![[MISSING IMAGE: fc_rithmperp-4clr.jpg]](fc_rithmperp-4clr.jpg)

#### Our Board
We operate under the direction of our Board. We have retained the Adviser to manage the acquisition and dispositions of our investments, subject to our Board's supervision.

We currently have a five-member board. Our Declaration of Trust provides that the number of trustees may be increased or decreased only by our Board pursuant to our bylaws. Our bylaws provide that the number of trustees may not be fewer than three nor more than fifteen, unless our Board amends our bylaws. Although our Declaration of Trust does not require a minimum number of independent trustees, our bylaws currently require that the majority of our Board consist of independent trustees. Our Board has determined that Lori Okun, Jayme Fagas and Matthew Whalen are independent trustees, giving us a majority independent Board. Under our Declaration of Trust, a trustee is independent if he, she or it (i) is not an officer or employee of ours, any subsidiary of ours, or of the Sponsor or its affiliates, (ii) has no material relationship with us, as determined by our Board, and (iii) otherwise satisfies the director independence tests provided for in the New York Stock Exchange ("**NYSE**") Listing Manual Rule 303A.02, as may be amended from time to time. We expect a majority of our Board to continue to consist of independent trustees,

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except for a period of up to 60 days after the death, removal or resignation or other vacancy of an independent trustee pending the election of a successor independent trustee.

Each trustee will serve until his, her or (if the trustee is an entity) its resignation, removal, death, dissolution, termination of legal existence, adjudication of legal incompetence or the election and qualification of his, her or its successor. Although the number of trustees may be increased or decreased, a decrease may not shorten the term of any incumbent trustee. Any trustee may resign at any time or may be removed by the shareholders only for "cause," and then only upon the affirmative vote of shareholders entitled to cast at least two-thirds of the votes entitled to be cast on such matter. In addition, any trustee may be removed, at any time, but only for "cause" by written instrument, signed by a majority of the trustees. For this purpose, "cause" means, with respect to any particular trustee, conviction of a felony or a final judgment of a court of competent jurisdiction holding that such trustee caused demonstrable, material harm to us through bad faith or active and deliberate dishonesty. A vacancy on our Board for any reason other than removal for "cause" by the shareholders may be filled only by a vote of a majority of the remaining trustees. A vacancy on our Board resulting from removal by the shareholders for "cause" may be filled only by the shareholders. However, if the trustee so removed had been designated to serve on our Board by the Adviser, then the Adviser shall have the exclusive right to designate the successor trustee for election to our Board to replace the removed trustee. Any election by our shareholders or our Board to replace a removed trustee must comply with the terms or our Declaration of Trust and bylaws providing for, as applicable, the Adviser's exclusive right to designate one or more trustees to serve on our Board, including without limitation as a successor trustee to a removed trustee, and the qualifications applicable to an independent trustee.

Our Board will generally meet quarterly or more frequently if necessary. Our trustees are not required to devote all of their time to our business and are only required to devote the time to our business as their duties may require. Consequently, in the exercise of their duties as trustees, our trustees will rely heavily on the Adviser and on information provided by the Adviser. As part of our trustees' duties, our Board will supervise the relationship between us and the Adviser. Our Board is empowered to approve the payment of compensation to trustees for services rendered to us.

Our Board will adopt written policies on investments and borrowings, the general terms of which are set forth in this Registration Statement. Our Board may revise these policies or establish further written policies on investments and borrowings and will monitor our administrative procedures, investment operations and performance.

#### Independent Compliance Reviewer
Our Board may appoint, terminate the appointment of and replace, in its discretion, a suitably qualified representative, which may be recommended by the Adviser, but will be unaffiliated with the Adviser, the Sponsor and their respective affiliates (each, an "**Independent Compliance Reviewer**"), to consider and provide or withhold consent for certain related party transactions and other transactions that may present conflicts of interest requiring client consent for purposes of Sections 206(3), 206(2) and 205(a) of the Advisers Act. The Independent Compliance Reviewer will act in accordance with, and be subject to, our Independent Compliance Reviewer Policy. For the avoidance of doubt, our Board may change the third party that serves as the Independent Compliance Reviewer at any time in its sole discretion.

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#### Management Agreement
 *The description below of the Management Agreement is a summary of the material terms of the Management Agreement, which will be filed as an exhibit to this Registration Statement. The description set forth below is qualified in its entirety by reference to the Management Agreement so filed.* 

Our Board at all times has oversight responsibility for governance, financial controls, compliance and disclosure with respect to us. Pursuant to the Management Agreement, we have delegated to the Adviser the authority to source, evaluate and monitor our investment opportunities and make decisions related to the acquisition, management, financing and disposition of our assets, in accordance with our investment objectives, guidelines, policies and limitations, subject to oversight by our Board. However, the Adviser is at all times subject to supervision, direction and management through our Board and will have only such functions and authority as our Board delegates to it. We believe that the Adviser currently has sufficient staff and resources so as to be capable of fulfilling the duties set forth in the Management Agreement.

#### Services
Under the terms of the Management Agreement, the Adviser is responsible for the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • serving as our advisor with respect to the establishment and periodic review of the investment guidelines for our investments, financing activities and operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • sourcing, evaluating and monitoring our investment opportunities and executing the acquisition, origination, management, financing and disposition of our assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • conducting negotiations on our behalf with borrowers, sellers, purchasers and other counterparties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • providing us with portfolio management and other related services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • serving as our advisor with respect to decisions regarding any of our financings, hedging activities or borrowing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • engaging and supervising, on our behalf and at our expense, independent contractors, advisors, consultants, attorneys, accountants, administrators, auditors, appraisers, independent valuation agents, escrow agents and other service providers (which may include affiliates of the Adviser) that provide various services to us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • communicating on our behalf with the holders of any of our equity or debt securities, as required;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • advising us in connection with policy decisions to be made by our Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • providing our daily management, including performing and supervising the various administrative functions reasonably necessary for our management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • engaging one or more sub-advisors with respect our management, including, where appropriate, affiliates of the Adviser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • evaluating and recommending to our Board hedging strategies and engaging in hedging activities on our behalf, consistent with our qualification as a REIT and investment guidelines;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • investing and reinvesting any of our moneys and securities and advising as to our capital structure and capital raising;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • determining valuations for our assets and liabilities and calculating the NAV;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • obtaining appraisals performed by third-party appraisal firms and providing input in connection with the appraisals of our investments, as needed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • monitoring our investments for events that may be expected to have a material impact on the most recent estimated values;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • monitoring each appraiser's valuation process to ensure that it complies with our valuation guidelines;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • delivering to, or maintaining on our behalf, copies of appraisals obtained in connection with our investments, if any;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • if we are a commodity pool under the U.S. Commodity Exchange Act, acting as our commodity pool operator;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • placing, or arranging for the placement of, orders of investments pursuant to the Adviser's investment determinations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • making, from time to time, reports to our Board of the Adviser's performance of services to us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • advising us regarding our ability to elect REIT status and, thereafter, maintaining our qualification as a REIT;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • taking all necessary actions to enable us and any of our subsidiaries to make required tax filings and reports;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • assisting us in maintaining the registration of our shares under federal and state securities laws; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • performing such other services from time to time in connection with the management of our investment activities as our Board may reasonably request and/or the Adviser may deem appropriate under the particular circumstances.

The Adviser's services under the Management Agreement are not exclusive, and it is free to furnish similar services to other entities so long as its services to us are not impaired. The above summary is provided to illustrate the material functions which the Adviser will perform for us and it is not intended to include all of the services which may be provided to us by the Adviser or third parties.

#### Term
The Management Agreement has been approved by our Board. Unless earlier terminated as described below, the Management Agreement will remain in effect for a period of two years from the date it first became effective, and will remain in effect subject to an unlimited number of successive two-year renewals if approved by a majority of our Board and a majority of our independent trustees.

Without payment of penalty, we may terminate the Management Agreement with the Adviser upon 60 days' advance written notice. The decision to terminate the agreement may be made by a majority of our Board and a majority of our independent trustees. In addition, without payment of penalty, the Adviser may generally terminate the Management Agreement upon 60 days' advance written notice.

Following termination, the Adviser will be entitled to receive from us, within 30 days after the effective date of such termination, all unpaid reimbursements of expenses and all earned but unpaid fees payable to the Adviser prior to termination of the Management Agreement. However, the Adviser will not be entitled to compensation for further services and will not be entitled to a termination fee.

#### Compensation of the Adviser
*Management Fee*. Until we become a "publicly offered REIT" for U.S. federal income tax purposes, we will pay a management fee equal to 1.25% of NAV per annum (less any Distribution Fees (as defined below)), payable monthly in arrears. After we become a "publicly offered REIT" for U.S. federal income tax purposes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Class S shares, Class T shares, Class D shares, Class I shares, Class J shares and Class J-2 shares will pay a management fee equal to 1.25% of NAV per annum (less any Distribution Fees), payable monthly in arrears; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • The payment of a management fee to the Adviser for the Class E shareholders will be waived by the Adviser; provided that the Adviser may, in its discretion, reinstate management fees of any Class E shareholder who is no longer an employee, officer or director at the Sponsor or its affiliates.

For the avoidance of doubt, the amount of the management fee paid by any class of shares to the Adviser for a given period will be reduced by the amount of any Distribution Fees with respect to such class for such period. Until we become a "publicly offered REIT" for U.S. federal income tax purposes and in order to meet the applicable REIT tax requirements, we intend to only issue Class J shares.

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Any management fee will be calculated and paid to the Adviser on a class-by-class basis, based on the NAV of each applicable class of our shares. In calculating the Adviser's management fee, we will use our NAV before giving effect to accruals for the management fee, performance fee, ongoing servicing fees payable to a dealer manager, if any ("**Ongoing Servicing Fees**"), or distribution fees payable to a dealer manager, if any ("**Distribution Fees**"), or distributions payable on our shares.

All or a portion of the management fee may be paid, at the Adviser's election, in cash or Class E shares. The Adviser may elect to receive Class E shares primarily for our cash management purposes and alignment of interest, but may have its shares repurchased from time to time. Any repurchase requests by the Adviser will be consistent with the Adviser's fiduciary duties to us and our shareholders. Our Class E shares obtained by the Adviser will not be subject to the repurchase limits of our share repurchase plan or any Early Repurchase Deduction (as defined below).

As part of their investment in us, certain investors (or their affiliates) may be granted rights to receive a share of the Adviser's revenues received under the Management Agreement.

*Performance Fee*. Pursuant to the terms of the Management Agreement, upon the effectiveness of this Registration Statement, the Adviser may be entitled to a performance fee, which is accrued monthly and payable quarterly (or part thereof that the Management Agreement is in effect) in arrears. The performance fee will be an amount, not less than zero, equal to 12.5% of Core Earnings (as defined below) for the immediately preceding quarter, subject to a hurdle rate, expressed as a rate of return on average adjusted capital (as defined below), equal to 1.25% per quarter (the "**hurdle rate**"), or an annualized hurdle rate of 5.0%. As a result, the Adviser does not earn a performance fee for any quarter until Core Earnings for such quarter exceeds the hurdle rate of 1.25%.

Once Core Earnings in any quarter exceeds the hurdle rate, the Adviser shall be entitled to a "catch-up" fee equal to the amount of Core Earnings in excess of the hurdle rate, until Core Earnings for such quarter exceeds a percentage of average adjusted capital equal to the hurdle rate divided by 0.875 (or 1 minus 0.125) for such quarter (i.e., approximately 1.429% quarterly, or 5.714% annually, of average adjusted capital). Thereafter, the Adviser is entitled to receive 12.5% of Core Earnings.

Upon the effectiveness of this Registration Statement, the payment of the performance fee to the Adviser for the holders of Class J shares and Class E shares will be waived by the Adviser.

For purposes of the performance fee, "adjusted capital" means cumulative net proceeds generated from sales of our Class S shares, Class T shares, Class D shares, Class I shares and Class J-2 shares (including proceeds from the distribution reinvestment plan) reduced for distributions from non-liquidating dispositions of our investments paid to our Class S, Class T, Class D, Class I and Class J-2 shareholders and amounts paid to our Class S, Class T, Class D, Class I and Class J-2 shareholders for share repurchases pursuant to our share repurchase plan.

Because the performance fee is calculated based on Core Earnings, the Adviser may be entitled to a performance fee even if shareholders experience a decline in NAV per share in the relevant month.

For purposes of calculating the performance fee, "Core Earnings" means: the net income (loss) attributable to holders of our Class S shares, Class T shares, Class D shares, Class I shares and Class J-2 shares, computed in accordance with generally accepted accounting principles in the United States ("**GAAP**"), including realized gains (losses) not otherwise included in GAAP net income (loss) and excluding (i) non-cash equity compensation expense, (ii) the performance fee, (iii) depreciation and amortization, (iv) any unrealized gains or losses or other non-cash items that are included in net income for the applicable reporting period, regardless of whether such items are included in other comprehensive income or loss, or in net income, (v) one-time events pursuant to changes in GAAP and (vi) certain non-cash adjustments and certain material non-cash income or expense items, in each case after discussions between the Adviser and our independent trustees and approved by a majority of our independent trustees. Core Earnings is calculated by the Adviser (after consultation with and approval by our independent trustees with respect to the exclusion of certain non-cash items and adjustments). However, the Adviser is ultimately and solely responsible for determining Core Earnings.

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The performance fee may be paid, at the Adviser's election, in cash or Class E shares, or any combination thereof. To the extent that the Adviser elects to receive any portion of the performance fee in Class E shares, we may repurchase such Class E shares from the Adviser at a later date. Class E shares obtained by the Adviser will not be subject to the repurchase limits of our share repurchase plan or any Early Repurchase Deduction.

As part of their investment in us, certain investors (or their affiliates) may be granted rights to receive a share of the Adviser's revenues received under the Management Agreement.

*Expense Reimbursement*. The Adviser will advance all of our organization and offering expenses through the earlier of (i) the date that our aggregate NAV is at least $200 million and (ii) the first anniversary of the date on which we first calculate NAV. We will reimburse the Adviser for all such advanced expenses ratably over the 60 months following the date on which the Adviser stops advancing organization and offering expenses per the prior sentence. Thereafter, we will reimburse the Adviser for any organization and offering expenses as and when incurred. The reimbursements may be paid, at the Adviser's election, in cash or Class E shares, or any combination thereof.

Organizational and offering expenses will include, without limitation, total underwriting and brokerage discounts and commissions, expenses for drafting, printing and amending the private placement memorandum relating to our Private Offering or supplementing the memorandum, travel (including airfare consistent with the Adviser's travel policy, meals, lodging and entertainment), legal (whether in-house or outside counsel), tax professionals (whether in-house or outside tax professionals), salaries of employees while engaged in sales activity, mailing and distributing, telephone and other telecommunications, all advertising and marketing (including design and website expenses and the costs related to investor and broker-dealer sales meetings), capital raising, consulting, accounting, regulatory compliance, any administrative or other filings in connection with our structuring, organization, negotiation, funding and start-up, including printing and document production costs, long distance telephone charges, postage and delivery charges and the preparation of, and negotiations with respect to, our offering documents, investor presentations and other marketing materials, our governing documents, subscription agreements, any side letters or similar agreements, agreements with broker-dealers and any other similar agreements, agreements with any depositary required to be appointed pursuant to applicable law, reasonable bona fide due diligence expenses and other out-of-pocket costs and expenses of participating broker-dealers supported by detailed and itemized invoices, expense reimbursements for actual costs incurred by employees of a dealer manager in the performance of wholesaling activities, costs in connection with preparing sales materials, design and website expenses, fees, expenses and charges of the transfer agent, registrars, trustees (including our Board), subscription processing, depositaries and experts, and fees to attend retail seminars sponsored by participating broker-dealers, expenses and taxes related to the filing, registration and qualification of the sale of our shares under federal and state laws. There will be no cap on organizational or offering expenses.

#### Operating Expense Reimbursement
We will pay directly or reimburse the Adviser or its affiliates for costs and expenses the Adviser or its affiliates incur in connection with the services it provides to us, including, but not limited to, (i) the actual cost of goods and services used by us and obtained from either an affiliate or a non-affiliated person, including fees paid to Affiliated Service Providers (as defined below), administrators, transfer agents, consultants, attorneys, accountants, tax advisors, technology providers and other services providers, and brokerage fees paid in connection with the origination, acquisition, purchase and sale of its investments, (ii) expenses of managing, operating and disposing of our investments, whether payable to an affiliate or a non-affiliated person, (iii) expenses related to the personnel of the Adviser performing services for us other than those who provide investment advisory services to us, (iv) expenses relating to compliance-related matters and regulatory filings relating to our activities and (v) administration fees and expenses, if any, payable under the Management Agreement (including payments based upon our allocable portion of the Adviser's overhead in performing its obligations under the Management Agreement, including rent and the allocable portion of the cost (including total compensation) of our chief financial officer and chief legal officer, and their respective staffs that assist with the activities covered by the Management Agreement).

The Adviser has agreed to advance certain of our operating costs and expenses, certain costs and expenses incurred pursuant to the Management Agreement, and other expenses incurred on our behalf (but

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excluding organization and offering expenses), through the earlier of (i) the date that our aggregate NAV is at least $200 million and (ii) the first anniversary of the date on which we first calculate NAV (the "**Operating Expense Commencement Date**"). We will reimburse the Adviser for all such advanced operating expenses ratably over the 60 months following such date. For purposes of calculating our NAV, the operating costs and expenses paid by the Adviser on our behalf through the Operating Expense Commencement Date will not be deducted as an expense until reimbursed by us.

After the Operating Expense Commencement Date, we will reimburse the Adviser, as applicable, for any operating expenses that it incurs on our behalf as and when incurred. The reimbursements may be paid, at the Adviser's election, as applicable, in cash or Class E shares, or any combination thereof.

#### Acquisition Expense Reimbursement
Except as provided herein, we do not intend to pay the Adviser any acquisition, financing (except interest payments to the lender in cases where the lender is an affiliate of the Adviser) or other similar fees in connection with making investments. We will, however, reimburse the Adviser for out-of-pocket expenses in connection with the selection, acquisition, origination, financing and management of investments, whether or not such investments are made. The reimbursements may be paid, at the Adviser's election, in cash or Class E shares, or any combination thereof. We will also make payments to third parties or certain of the Adviser's affiliates in connection with making investments as described in "— *Fees from Other Services*" below.

#### Fees from Other Services
The Sponsor or Affiliated Service Providers may be retained to provide services to us or entities through which investments are held by us that would otherwise be performed for us or such entities by third parties. Any fees, compensation and costs payable to the Affiliated Service Providers in connection with services provided by such Affiliated Service Providers that (i) do not exceed market rates, as determined by the Adviser to be appropriate under the circumstances or (ii) are approved by a majority of our trustees, including a majority of our independent trustees, will not offset or otherwise reduce the management fee or otherwise be shared with us. For more information about such services, please see "*Item 7. Certain Relationships and Related Transactions, and Director Independence — Potential Conflicts of Interest — Services Provided by Affiliates of the Sponsor*" in this Registration Statement.

#### Indemnification
We will indemnify and hold harmless the Adviser and its affiliates, including their respective officers, managers, directors, partners and employees, from all liability, claims, damages or losses arising in the performance of their duties under the Management Agreement, and related expenses, including reasonable attorneys' fees, to the extent such liability, claims, damages or losses and related expenses are not fully reimbursed by insurance, and to the fullest extent possible without such indemnification being inconsistent with the laws of the State of Maryland or our Declaration of Trust.

The Adviser will indemnify us and hold us harmless from contract or other liability, claims, damages, taxes or losses and related expenses including attorneys' fees, to the extent that (i) such liability, claims, damages, taxes or losses and related expenses are not fully reimbursed by insurance and (ii) are incurred by reason of the Adviser's bad faith, fraud, willful misconduct, gross negligence or reckless disregard of its duties under the Management Agreement; provided, however, that the Adviser will not be held responsible for any action of our Board in following or declining to follow any advice or recommendation given by the Adviser.

#### Sponsor Investment
In order to facilitate the origination or acquisition of our initial investments, the Sponsor (or an affiliate) has agreed to purchase (in one or more purchases) the lesser of (i) 5% of our total NAV and (ii) $20 million of Class E shares at a price per share equal to the most recently determined NAV of Class E shares or, if a NAV has yet to be calculated, then at a price of $20.00 per Class E share (the "**Sponsor** 

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**Investment**"). As of the date of this Registration Statement, the Sponsor (or an affiliate) has not purchased any Class E shares in connection with the Sponsor Investment.

The Sponsor may, from time to time, request to have any Class E shares it receives in connection with the Sponsor Investment be repurchased by us at a price per share equal to the most recently determined NAV per Class E share as of the Repurchase Date (as defined below). Any such repurchase will not be subject to the Early Repurchase Deduction.

#### Allocation of Investment Opportunities
As a general matter, it is not expected that all investment opportunities identified by the Adviser that are suitable for us will be made available to us. We expect that certain investments that would be suitable for us will be retained by the Sponsor or affiliates that originated such investments or will be sold to third parties and therefore will not be available for investment and will not be part of the Adviser's investment allocation protocols. The Sponsor has established, and the Sponsor and the Adviser will be permitted, in their sole discretion, in the future, to establish Other Rithm Accounts with investment objectives, mandates and policies that are the same or substantially similar to and/or overlap with, ours, in each case, without the consent of, or notice to, any shareholder. Consistent with the Adviser's allocation policy, from time to time, the Adviser will allocate investment opportunities that fall within our investment objectives (including RTLs) between us, the Sponsor, Rithm Affiliates and/or Other Rithm Accounts, and may allocate up to 100% of such an opportunity to Rithm Affiliates, including the Sponsor, and/or Other Rithm Accounts. In this regard, we are expected, from time to time, to invest on a side-by-side basis with Rithm Affiliates, including the Sponsor, and Other Rithm Accounts. In addition, from time to time, Rithm Affiliates, including the Sponsor, and Other Rithm Accounts, will receive an allocation in a pool of loans (including RTLs and NQM loans) which are not allocated to us. For instance, we expect that certain investment opportunities in RTLs and NQM loans will be allocated first to Sponsor securitizations and, thereafter, to us. In determining such allocations, the Adviser takes into account such factors as it deems appropriate, including, without limitation: investment program, objectives and focus; investment capacity; investment sourcing; target investment size and target returns; investment guidelines, restrictions and concentration limits; leverage considerations; available cash, including the timing of capital inflows and outflows and anticipated capital commitments; timing of investment closing; tax, regulatory, policy and procedural considerations (including internal policies and procedures); tolerance for volatility and risk as determined by the Adviser from time to time; desired concentration, exposure and diversification targets; liquidity needs; investment rights and other contractual obligations; the management of actual and potential conflicts of interest; performance considerations; domicile; and other factors that the Adviser believes are consistent with the fair and equitable treatment of us, the Sponsor, Rithm Affiliates and any Other Rithm Accounts over time. The Adviser may allocate investment opportunities among us, the Sponsor, Rithm Affiliates and any Other Rithm Accounts based on anticipated or projected investment characteristics based solely on its expectations at the time an investment is made. The Adviser has adopted policies and procedures designed to result in fair and equitable allocations of opportunities across client accounts over time. However, there can be no assurances that the characteristics of an investment will ultimately match the Adviser's expectations at the time such investment was made, and such investment may, as a result, prove to have (or have not) been suitable for us.

The Sponsor, Rithm Affiliates and Other Rithm Accounts are expected to have terms that differ from our terms and may participate in investments on different terms than us, at different levels of the capital structure and/or after the closing of our investments. Furthermore, Rithm Affiliates, including the Sponsor, and Other Rithm Accounts may from time to time be entitled to priority allocations of certain investment opportunities over us (or another Other Rithm Account). Accordingly, our participation in investments with Rithm Affiliates, including the Sponsor, and Other Rithm Accounts is expected to vary on an investment-by-investment basis and there may be investments within our investment objective made by the Sponsor or the Adviser, on behalf of such Rithm Affiliates, including the Sponsor, or Other Rithm Accounts, in which we do not participate or does not participate to the same extent as other investments.

The Sponsor and the Adviser may also give advice and recommend assets, instruments, loans, securities or other investments to Rithm Affiliates or Other Rithm Accounts that differ from the advice given to, or assets, instruments, loans, securities or other investments recommended or bought for, us, even though the

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investment objectives of us, such Rithm Affiliates and such Other Rithm Accounts may be the same or substantially similar. For example, we may elect to sell all or part of an investment in an asset while the Sponsor or a Rithm Affiliate or an Other Rithm Account continues to hold its investment in the same asset (or increases its exposure to it) (and vice versa).

The Sponsor and the Adviser may agree in the future to address, certain legal, tax, regulatory or other considerations applicable to their respective investors that will impact the allocation of investment opportunities among us, the Sponsor, Rithm Affiliates and Other Rithm Accounts and otherwise impact the time and terms of investment and divestment determinations with respect to us, the Sponsor, Rithm Affiliates and such Other Rithm Accounts.

Rithm Affiliates, including the Sponsor, engage, and in the future may engage, in a broad spectrum of activities, including direct investment activities and investment advisory activities, and have investment activities (including principal investments by the Sponsor or its affiliates for their own account) on behalf of both persons or entities to which they provide investment advice on a principal basis, that are independent from, and may from time to time conflict or compete with, our investment activities.

Acquired Managers have established, and will be permitted in the future to establish, as applicable, Sculptor Accounts, Crestline Accounts or investment vehicles, accounts or arrangements managed or advised by other Acquired Managers (collectively, the "**Acquired Manager Accounts**") with investment objectives, mandates and policies that are substantially similar to and/or overlap with, ours, in each case, without the consent of, or notice to, any shareholder. As a result, the potential and actual conflicts of interest discussed in this section will also apply in respect of Acquired Managers and Acquired Manager Accounts, and such conflicts may be exacerbated in the future to the extent the operations of the Sponsor and Acquired Manager Account businesses are further integrated.

 *For additional information, see "Item 7. Certain Relationships and Related Transactions, and Director Independence — Potential Conflicts of Interest — Allocation of Investment Opportunities."* 

#### Term
The Company has been established, and is expected to continue, for an indefinite period of time. As part of the Company's indefinite term structure, investors may request the repurchase of their common shares on a monthly basis (as further discussed below). See "— *Share Repurchase Plan*" below for more information regarding repurchases.

#### Governmental Regulations
Our business is affected by conditions in the housing and real estate markets and the broader financial markets, as well as by the financial condition and resources of other participants in these markets. These markets and many of the participants in these markets are subject to, or regulated under, various federal, state and local laws and regulations. In particular, because issues relating to residential housing (including both owner-occupied and rental housing), and real estate finance can be areas of political focus, federal, state and local governments may be more likely to take actions that affect residential housing, the markets for financing residential housing, landlord and tenant rights, lender rights, institutional ownership of residential housing, and the participants in residential housing-related industries than they would with respect to other industries. Other changes or actions by judges or legislators regarding mortgage loans and contracts, including the voiding of certain portions of these agreements or the promulgation of additional restrictions on mortgage foreclosures, may reduce our earnings, impair our ability to mitigate losses, or increase the probability and severity of losses. Moreover, to the extent we participate in markets that as-yet do not have fully developed regulatory frameworks or responsibilities, we are subject to a heightened risk of new, enhanced, or changing regulation that is adverse to our business or burdensome to comply with. As a result of the government's statutory and regulatory oversight of the markets we participate in, federal, state and local governmental actions, policies, and directives can have an adverse effect on these markets and on our business and the value of, and the returns on, our investments, which effects may be material. It is not possible at this time to forecast the exact nature of any future legislation, regulations, judicial decisions, orders or interpretations, nor their impact upon our future business, financial condition, or results of operations or prospects.

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#### Competition
We operate in a highly competitive market for lending and investment opportunities. Our profitability depends, in large part, on our ability to originate and/or acquire our target assets at attractive prices. In originating or acquiring our target assets, we compete with a variety of institutional investors, including other REITs, commercial and investment banks, specialty finance companies, public and private funds, commercial finance and insurance companies and other financial institutions. Many of our competitors are substantially larger and have considerably greater financial, technical, marketing and other resources than we do. Several other REITs have recently raised significant amounts of capital, and may have investment objectives that overlap with ours, which may create additional competition for investment opportunities. Some competitors may have a lower cost of funds and access to funding sources that may not be available to us, such as funding from the U.S. government, if we are not eligible to participate in programs established by the U.S. government. Many of our competitors are not subject to the operating constraints associated with REIT tax compliance or maintenance of an exception from the definition of an investment company under the Investment Company Act. In addition, some of our competitors may have higher risk tolerances or different risk assessments, which could allow them to consider a wider variety of investments and establish more relationships than us. Furthermore, competition for originations of and investments in our target assets may lead to decreasing yields, which may further limit our ability to generate desired returns. We cannot assure you that the competitive pressures we face will not have a material adverse effect on our business, financial condition and results of operations. Also, as a result of this competition, desirable investments in our target assets may be limited in the future and we may not be able to take advantage of attractive investment opportunities from time to time, as we can provide no assurance that we will be able to identify and make investments that are consistent with our investment objectives.

#### Emerging Growth Company
We will be and we will remain an "emerging growth company" as defined in the JOBS Act until the earlier of (a) the last day of the fiscal year (i) following the fifth anniversary of the date of an initial public offering pursuant to an effective registration statement under the Securities Act, or (ii) in which we have total annual gross revenue of at least $1.235 billion, (b) the date on which we are deemed to be a large accelerated filer, which means the market value of our shares that is held by non-affiliates exceeds $700 million as of the date of our most recently completed second fiscal quarter, or (c) the date on which we have issued more than $1.0 billion in non-convertible debt during the prior three-year period. For so long as we remain an "emerging growth company" we may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not "emerging growth companies" including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002 ("**Sarbanes-Oxley Act**"). Also, because we are not a large accelerated filer or an accelerated filer under Section 12b-2 of the Exchange Act, and will not be for so long as our common shares are not traded on a securities exchange, we will not be subject to auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act even once we are no longer an emerging growth company. We cannot predict if investors will find our shares less attractive because we may rely on some or all of these exemptions.

#### Distribution Reinvestment Plan
We have adopted a distribution reinvestment plan whereby shareholders will have their cash distributions automatically reinvested in additional common shares unless they elect to receive their distributions in cash. If an investor participates in our distribution reinvestment plan, the cash distributions attributable to the class of shares that such investor owns will be automatically invested in additional shares of the same class. The purchase price for shares purchased under our distribution reinvestment plan will be equal to the transaction price for such shares at the time the distribution is payable. Shareholders will not pay upfront selling commissions / origination fees, upfront dealer manager fees or other similar placement fees when purchasing shares under our distribution reinvestment plan; however, all outstanding Class S shares, Class T shares, Class D shares, Class J shares and Class J-2 shares, including those purchased under our distribution reinvestment plan, will be subject to Ongoing Servicing Fees or Distribution Fees. Participants may terminate their participation in the distribution reinvestment plan with ten business days' prior written

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 *notice to us. See "Item 11. Description of Registrant's Securities to be Registered — Distribution Reinvestment Plan" for more information regarding the reinvestment of distributions investors may receive from us.* 

#### Share Repurchase Plan
While shareholders may request on a monthly basis that we repurchase all or any portion of their shares pursuant to our share repurchase plan, we are not obligated to repurchase any shares and may choose to repurchase only some, or even none, of our shares that have been requested to be repurchased in any particular month in our discretion. In addition, our ability to fulfill repurchase requests is subject to a number of limitations. As a result, share repurchases may not be available each month. Under our share repurchase plan, to the extent we choose to repurchase shares in any particular month, we will only repurchase shares as of the opening of the last business day of that month (each such date, a "**Repurchase Date**"). Notwithstanding the foregoing, shareholders holding Class J shares have agreed not to submit their Class J shares for repurchase until the date that is two years from the date of purchase of the applicable Class J shares.

The repurchase price for repurchases will generally be based on the NAV per share of the applicable class as of the last calendar day of the prior month, except that shares tendered for repurchase within the first 12 months of issuance will be repurchased at 95% of the transaction price (an "**Early Repurchase Deduction**"). The holding period is measured as of the closing date immediately preceding the prospective Repurchase Date. Subject to our ability to meet the applicable REIT tax requirements, the Early Repurchase Deduction may only be waived in the case of repurchase requests arising from the death or qualified disability of the holder and in other limited circumstances. For an investor to have its shares repurchased, the investor's repurchase request and required documentation must be received in good order by 4:00 p.m. (Eastern time) on the second to last business day of the applicable month. Settlements of share repurchases will be made within three business days of the Repurchase Date using the NAV per share of the applicable class as of the last calendar day of the prior month. The Early Repurchase Deduction will not apply to shares acquired through our distribution reinvestment plan. Shares purchased by the Sponsor in the Sponsor Investment or issued to the Adviser or its affiliates as a result of the management fee, performance fee or reimbursements of expenses are not subject to the Early Repurchase Deduction. An investor may withdraw its repurchase request by notifying the transfer agent before 4:00 p.m. (Eastern time) on the second to last business day of the applicable month. We expect to begin the share repurchase plan in the first month of the first full calendar quarter after the initial closing of our Private Offering.

The aggregate NAV of total repurchases of our common shares is limited to no more than 2% of our aggregate NAV per month (measured using the aggregate NAV as of the end of the immediately preceding month) and no more than 5% of our aggregate NAV per calendar quarter (measured using the aggregate NAV as of the end of the previous calendar quarter). Shares purchased by the Adviser or its affiliates or issued to such parties in lieu of cash in respect of our management fee, our performance fee or as other compensation or as reimbursements of expenses or to the Sponsor for any future commitments to us are not subject to these repurchase limitations.

Subject to our right to decline any repurchase request by a shareholder, in the event that we determine to repurchase some but not all of our shares submitted for repurchase during any month, shares repurchased at the end of the month will be repurchased on a pro rata basis after we have repurchased all common shares for which repurchase has been requested due to death or disability and other limited exceptions. All unsatisfied repurchase requests must be resubmitted after the start of the next month or upon the recommencement of the share repurchase plan, as applicable.

We may fund repurchase requests from sources other than cash flow from operations, including, without limitation, the sale of or repayment under our assets, borrowings or offering proceeds, and we have no limits on the amounts we may pay from such sources. Should repurchase requests, in our judgment, place an undue burden on our liquidity, adversely affect our operations or risk having an adverse impact on us as a whole, or should we otherwise determine that investing our liquid assets in investments rather than repurchasing our shares is in our best interests as a whole, then we may choose to repurchase fewer shares than have been requested to be repurchased, or none at all. Further, our Board may make exceptions to, modify or suspend our share repurchase plan if it deems in its reasonable judgment such action to be in our best interest (including to make exceptions to the repurchase limitations or Early Repurchase Deduction, or

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repurchase fewer shares than such repurchase limitations). During any period in which we believe that we are not a "publicly offered REIT" for U.S. federal income tax purposes, we also may decline any repurchase request by a shareholder if we believe the repurchase (i) would not qualify for sale or exchange treatment under Section 302(b) of the Code or (ii) would otherwise negatively affect any other shareholders or negatively affect our status as a REIT.

See "*Item 11. Description of Registrant's Securities to be Registered — Share Repurchase Plan*" for more information regarding our share repurchase plan.

#### Human Capital
We do not currently have any employees and do not expect to have any employees. Services necessary for our business are provided by individuals who are employees of the Adviser or their affiliates pursuant to the terms of the Management Agreement. See "*Item 1. Business — Management Agreement*."

#### Our Private Offering
Subscriptions to purchase our common shares may be made on an ongoing basis, but investors may only purchase our common shares pursuant to accepted subscription orders as of the first business day of each month (based on the prior month's transaction price), and to be accepted, a subscription request must be made with a completed and executed subscription agreement in good order, including satisfying any additional requirements imposed by the subscriber's broker-dealer, and payment of the full purchase price of our common shares being subscribed at least five business days prior to the first business day of the month (unless waived by our dealer manager, if any, or the Adviser).

Prior to the time a NAV per share has been calculated, the per share purchase price for our common shares will be $20.00 plus any applicable upfront selling commissions / origination fees, upfront dealer manager fees or other similar placement fees. Thereafter, the purchase price per share of each class will be equal to the then-current per share transaction price, which will generally be our prior month's NAV per share for such class as of the last calendar day of such month, plus any applicable upfront selling commissions / origination fees, upfront dealer manager fees or other similar placement fees.

Although the price an investor pays for our common shares will generally be based on the prior month's NAV per share, the NAV per share for the month in which an investor makes its purchase may be significantly different. Given that we initially expect to invest primarily in RTLs, which have a shorter duration than certain other asset types, such differences in NAV could be more pronounced. We may offer shares at a price that we believe reflects the NAV per share of such shares more appropriately than the prior month's NAV per share, including by updating a previously available offering price, in cases where we believe there has been a material change (positive or negative) to our NAV per share since the end of the prior month. Each class of shares may have a different NAV per share because Ongoing Servicing Fees or Distribution Fees are charged differently with respect to each class. See "*Item 9. Market Price of and Dividends on the Registrant's Common Equity and Related Stockholder Matters — Net Asset Value Calculation and Valuation Guidelines*" for more information about the calculation of NAV per share.

On each business day, our transfer agent will collect purchase orders. Notwithstanding the submission of an initial purchase order, we can reject purchase orders for any reason, even if a prospective investor meets the minimum suitability requirements. Investors may only purchase our common shares pursuant to accepted subscription orders as of the first business day of each month (based on the prior month's transaction price plus any applicable upfront selling commissions / origination fees, upfront dealer manager fees or other similar placement fees), and to be accepted, a subscription request must be made with a completed and executed subscription agreement in good order, including satisfying any additional requirements imposed by the subscriber's broker-dealer, and payment of the full purchase price of our common shares being subscribed at least five business days prior to the first business day of the month. If a purchase order is received less than five business days prior to the first business day of the month, unless waived by the Adviser or the dealer manager, if any, the purchase order will be executed in the next month's closing at the transaction price applicable to that month plus any applicable upfront selling commissions / origination fees, upfront dealer manager fees or other similar placement fees. As a result of this process, the

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price per share at which an investor's order is executed may be different than the price per share for the month in which such investor submitted its purchase order.

Generally, within 15 calendar days after the last calendar day of each month, we will determine our NAV per share for each share class as of the last calendar day of the prior month, which will generally be the transaction price for the then-current month for such share class.

#### Reporting Obligations
We will file our annual reports containing audited financial statements, quarterly reports, and such other periodic reports as we determine to be appropriate or as may be required by law. We are filing this Registration Statement with the SEC under the Exchange Act to register our common shares under Section 12(g) of the Exchange Act and comply with applicable requirements thereunder.

We intend to make available on our website, when available, our annual reports on Form 10-K, quarterly reports on Form 10-Q and our current reports on Form 8-K. The SEC also maintains a website (www.sec.gov) that contains such information. Our website will contain additional information about our business, but the contents of the website are not incorporated by reference in or otherwise a part of this Registration Statement.

#### Certain U.S. Federal Income Tax Considerations
 ***The discussion of certain tax matters set forth in this Registration Statement is not intended to be used, and cannot be used by any prospective investor, for the purpose of avoiding penalties that may be imposed. Each prospective investor should seek advice based on its particular circumstances from its tax advisor.***

The following is a summary of certain U.S. federal income tax considerations relating to Rithm Perpetual Life Residential Trust's qualification and taxation as a REIT and the acquisition, ownership and disposition of our common shares. For purposes of this section only, references to "our," "us" or "we" mean only Rithm Perpetual Life Residential Trust and not any of its subsidiaries or other lower-tier entities except as otherwise indicated. This summary is based upon the Code, regulations promulgated by the U.S. Treasury Department (the "**U.S. Treasury regulations**"), current administrative interpretations and practices of the Internal Revenue Service ("**IRS**") (including administrative interpretations and practices expressed in private letter rulings which are binding on the IRS only with respect to the particular taxpayers who requested and received those rulings) and judicial decisions, all as currently in effect and all of which are subject to differing interpretations or to change, possibly with retroactive effect. This summary does not address any proposals to modify such tax laws. No assurance can be given that the IRS would not assert, or that a court would not sustain, a position contrary to any of the tax considerations described below. No advance ruling has been or will be sought from the IRS regarding any matter discussed in this summary. The summary is also based upon the assumption that our operation, and the operation of our subsidiaries and other lower-tier and affiliated entities will, in each case, be in accordance with such entity's applicable organizational documents. Except as otherwise discussed below, this summary does not discuss the impact that U.S. state and local taxes and taxes imposed by non-U.S. jurisdictions could have on the matters discussed in this summary. This summary is for general information only, and does not purport to discuss all aspects of U.S. federal income taxation that may be important to a particular shareholder in light of its investment or tax circumstances or to shareholders subject to special tax rules, such as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • U.S. expatriates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • persons who mark-to-market our common shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • subchapter S corporations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • U.S. shareholders (as defined below) whose functional currency is not the U.S. dollar;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • financial institutions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • insurance companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • broker-dealers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • regulated investment companies ("**RIC**");

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • REITs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • trusts and estates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • persons who receive our common shares as compensation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • persons holding our common shares as part of a "straddle," "hedge," "conversion transaction," "synthetic security" or other integrated investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • persons subject to the alternative minimum tax ("**AMT**") provisions of the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • persons holding their interest in us through a partnership or similar pass-through entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • tax-exempt organizations (except as otherwise discussed below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • persons subject to special tax rules as a result of being treated as receiving any "excess inclusion income" ("**EII**") from us (except as otherwise discussed below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • shareholders subject to special tax accounting rules as a result of their use of "applicable financial statements" (within the meaning of Section 451(b)(3) of the Code); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • non-U.S. shareholders (as defined below, and except as otherwise discussed below).

This summary assumes that shareholders hold our common shares as capital assets, which generally means as property held for investment.

THE U.S. FEDERAL INCOME TAX TREATMENT OF THE ACQUISITION, OWNERSHIP AND DISPOSITION OF OUR COMMON SHARES DEPENDS IN SOME INSTANCES ON DETERMINATIONS OF FACT AND INTERPRETATIONS OF COMPLEX PROVISIONS OF U.S. FEDERAL INCOME TAX LAW FOR WHICH NO CLEAR PRECEDENT OR AUTHORITY MAY BE AVAILABLE. IN ADDITION, THE U.S. FEDERAL INCOME TAX TREATMENT OF THE ACQUISITION, OWNERSHIP AND DISPOSITION OF OUR COMMON SHARES TO ANY PARTICULAR SHAREHOLDER WILL DEPEND ON THE SHAREHOLDER'S PARTICULAR TAX CIRCUMSTANCES. YOU ARE URGED TO CONSULT YOUR TAX ADVISOR REGARDING THE U.S. FEDERAL, STATE, LOCAL, AND FOREIGN INCOME AND OTHER TAX CONSEQUENCES TO YOU, IN LIGHT OF YOUR PARTICULAR INVESTMENT OR TAX CIRCUMSTANCES, OF THE ACQUISITION, OWNERSHIP AND DISPOSITION OF OUR COMMON SHARES.

#### U.S. Federal Income Tax Considerations as a REIT
 *Taxation of Rithm Perpetual Life Residential Trust — General* 

We intend to elect and qualify as a REIT under the Code for U.S. federal income tax purposes, commencing with our taxable year ending December 31, 2025. Qualification and taxation as a REIT depend on our ability to meet, on a continuing basis, through actual results of operations, distribution levels, diversity of share ownership and various qualification requirements imposed upon REITs by the Code. In addition, our ability to qualify as a REIT may depend in part upon the operating results, organizational structure and entity classification for U.S. federal income tax purposes of certain entities in which we invest. Our ability to qualify as a REIT also requires that we satisfy certain asset and income tests, some of which depend upon the fair market values of assets directly or indirectly owned by us or which serve as security for loans made or owned by us. Such values may not be susceptible to a precise determination. Accordingly, no assurance can be given that the actual results of our operations for any taxable year will satisfy the requirements for qualification and taxation as a REIT.

 *Taxation of REITs in General* 

As indicated above, qualification and taxation as a REIT depends on our ability to meet, on a continuing basis, through actual results of operations, distribution levels, diversity of share ownership and various qualification requirements imposed upon REITs by the Code. The material qualification requirements are summarized below, under "— *Requirements for Qualification as a REIT*." While we intend to operate so that

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we qualify as a REIT, no assurance can be given that the IRS will not challenge our qualification as a REIT or that we will be able to continue to operate in accordance with the REIT requirements in the future. See "— *Failure to Qualify*" below.

Provided that we qualify as a REIT, we will generally be entitled to a deduction for dividends that we pay and, therefore, will not be subject to U.S. federal corporate income tax on our net taxable income that is currently distributed to our shareholders. This treatment substantially eliminates the "double taxation" with respect to distributed income at the corporate and shareholder levels that results generally from investment in a corporation. Rather, income generated by a REIT and distributed to its shareholders generally is taxed only at the shareholder level, upon a distribution of dividends by the REIT. See "*— Taxation of Shareholders — Taxation of Taxable U.S. Shareholders*" below.

Even if we qualify for taxation as a REIT, however, we will be subject to U.S. federal income taxation as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We will be taxed at regular U.S. federal corporate income tax rates on any undistributed income, including undistributed net capital gains.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We expect to have one or more subsidiaries that are subchapter C corporations that will be taxable REIT subsidiaries ("**TRSs**"), the earnings of which, if organized in the United States, will be subject to U.S. federal corporate income tax (including potentially a 15% AMT on the adjusted financial statement income ("**AFSI**") of TRSs whose three-year average AFSI exceeds $1 billion).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • If we have net income from prohibited transactions, which are, in general, sales or other dispositions of property held primarily for sale to customers in the ordinary course of business, other than foreclosure property, such income will be subject to a 100% tax. See "— *Prohibited Transactions*" and "— *Foreclosure Property*" below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • If we elect to treat property that we acquire in connection with a foreclosure of a mortgage loan or from certain leasehold terminations as "foreclosure property," we may thereby avoid (i) the 100% tax on gain from a resale of that property (if the sale would otherwise constitute a prohibited transaction) and (ii) the inclusion of any income from such property not qualifying for purposes of the REIT gross income tests discussed below, but the income from the sale or operation of the property may be subject to income tax at the corporate tax rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • If we fail to satisfy the 75% gross income test or the 95% gross income test, as discussed below, but nonetheless maintain our qualification as a REIT because other requirements are met, we will be subject to a 100% tax on an amount equal to (i) the greater of (a) the amount by which we fail the 75% gross income test or (b) the amount by which we fail the 95% gross income test, as the case may be, multiplied by (ii) a fraction intended to reflect our profitability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • If we fail to satisfy any of the REIT asset tests, as described below, other than a failure of the 5% or 10% REIT asset tests, that does not exceed a statutory de minimis amount as described more fully below, but our failure is due to reasonable cause and not due to willful neglect and we nonetheless maintain our REIT qualification because of specified cure provisions, we will be required to pay a tax equal to the greater of $50,000 or the corporate tax rate of the net income generated by the non-qualifying assets during the period in which we failed to satisfy the asset tests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • If we fail to satisfy any provision of the Code that would result in our failure to qualify as a REIT (other than a gross income or asset test requirement) and the violation is due to reasonable cause and not willful neglect, we may retain our REIT qualification but we will be required to pay a penalty of $50,000 for each such failure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • If we fail to distribute during each calendar year at least the sum of (i) 85% of our REIT ordinary income for such year, (ii) 95% of our REIT capital gain net income for such year and (iii) any undistributed taxable income from prior periods (the foregoing sum is referred to as the required distribution), we will be subject to a 4% excise tax on the excess of the required distribution over the sum of (a) the amounts actually distributed (taking into account excess distributions from prior years), plus (b) retained amounts on which income tax is paid at the corporate level.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We may be required to pay monetary penalties to the IRS in certain circumstances, including if we fail to meet record-keeping requirements intended to monitor our compliance with rules relating to the composition of our shareholders, as described below in "— *Requirements for Qualification as a REIT*."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • A 100% excise tax may be imposed on some items of income and expense that are directly or constructively paid between us and any TRSs we may own if and to the extent that the IRS successfully adjusts the reported amounts of these items.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • If we acquire appreciated assets from a corporation that is not a REIT, a RIC or an S corporation in a transaction in which the adjusted tax basis of the assets in our hands is determined by reference to the adjusted tax basis of the assets in the hands of the transferor corporation, we will be subject to tax on such appreciation at the corporate income tax rate then applicable if we subsequently recognize gain on a disposition of any such assets during the five-year period following our acquisition from the transferor corporation. The results described in this paragraph assume that such corporation will not elect, in lieu of this treatment, to be subject to an immediate tax when the asset is acquired by us.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • While we intend not to derive any EII from a securitization (e.g., a residual interest in a real estate mortgage investment conduit (a "**REMIC**")) or other financing arrangements, if we were to derive EII, we could be subject to corporate level U.S. federal income tax, currently at a 21% rate, to the extent that such income is distributed to specified types of U.S. and non-U.S. tax-exempt shareholders (known as "disqualified organizations"), such as public pension funds and government agencies and instrumentalities. We may decide to retain, and to pay corporate income tax on, EII. If we decide to own a REMIC residual interest through a TRS, we will not be subject to this tax directly, but will indirectly bear such tax economically as the shareholder of the TRS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We may elect to retain and pay income tax on our net long-term capital gain. In that case, a shareholder would include its proportionate share of our undistributed long-term capital gain (to the extent we make a timely designation of such gain to the shareholder) in its income, would be deemed to have paid the tax that we paid on such gain, and would be allowed a credit for its proportionate share of the tax deemed to have been paid, and an adjustment would be made to increase the shareholder's basis in our common shares. Shareholders that are U.S. corporations will also appropriately adjust their earnings and profits for the retained capital gains in accordance with U.S. Treasury regulations to be promulgated.

In addition, we may be subject to a variety of taxes other than U.S. federal income tax, including state, local and foreign income, franchise property and other taxes. We could also be subject to tax in situations and on transactions not presently contemplated.

 *Requirements for Qualification as a REIT* 

The Code defines a REIT as a corporation, trust or association:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • that is managed by one or more directors or trustees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the beneficial ownership of which is evidenced by transferable shares or by transferable certificates of beneficial interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • that would be taxable as a domestic corporation but for the special Code provisions applicable to REITs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • that is neither a financial institution nor an insurance company subject to specific provisions of the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the beneficial ownership of which is held by 100 or more persons (the "**100 Shareholder Rule**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • in which, during the last half of each taxable year, not more than 50% in value of the outstanding shares are owned, directly or indirectly, by five or fewer "individuals" (as defined in the Code to include specified entities) (the "**5/50 Rule**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • that has no earnings and profits from any non-REIT taxable year or as a successor to any subchapter C corporation at the close of any taxable year;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • that uses the calendar year for U.S. federal income tax purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • which meets other tests described below, including with respect to the nature of its income and assets and the amount of its distributions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • that makes an election to be a REIT for the current taxable year or has made such an election for a previous taxable year that has not been terminated or revoked.

The Code provides that the first through forth conditions must be met during the entire taxable year, and that the fifth condition must be met during at least 335 days of a taxable year of 12 months, or during a proportionate part of a shorter taxable year. The fifth and sixth conditions (the 100 Shareholder Rule and the 5/50 Rule) do not need to be satisfied for the first taxable year for which an election to become a REIT has been made. For purposes of the sixth condition, an "individual" generally includes a supplemental unemployment compensation benefit plan, a private foundation or a portion of a trust permanently set aside or used exclusively for charitable purposes, but does not include a qualified pension plan or profit sharing trust. Our Declaration of Trust has restrictions regarding the ownership and transfer of our shares, which are intended to assist us in satisfying the 100 Shareholder Rule and the 5/50 Rule described in the fifth and sixth conditions above.

To monitor compliance with the share ownership requirements, we are generally required to maintain records regarding the actual ownership of our shares. To do so, we must demand written statements each year from the record shareholders of significant percentages of our shares, in which the record shareholders are to disclose the actual owners of our shares (i.e., the persons required to include in gross income the dividends paid by us). A list of those persons failing or refusing to comply with this demand must be maintained as part of our records. Failure by us to comply with these record-keeping requirements could subject us to monetary penalties. If we satisfy these requirements and after exercising reasonable diligence would not have known that the 5/50 Rule is not satisfied, we will be deemed to have satisfied such condition. A shareholder that fails or refuses to comply with the demand is required by U.S. Treasury regulations to submit a statement with its tax return disclosing the actual ownership of its shares and other information.

 *Effect of Subsidiary Entities* 

<u>Partnership Subsidiaries</u> 

If we are a partner in an entity that is treated as a partnership for U.S. federal income tax purposes, U.S. Treasury regulations provide that we are deemed to own our proportionate share of the partnership's assets, and to earn our proportionate share of the partnership's income, for purposes of the asset and gross income tests applicable to REITs. Our proportionate share of a partnership's assets and income is based on our capital interest in the partnership (except that, for purposes of the 10% value test, our proportionate share of the partnership's assets is based on our proportionate interest in the equity and certain debt securities issued by the partnership). In addition, the assets and gross income of a partnership are deemed to retain the same character in our hands. Thus, our proportionate share of the assets and items of income of any of our subsidiary partnerships will be treated as our assets and items of income for purposes of applying the REIT requirements. Consequently, to the extent that we directly or indirectly hold an equity interest in a partnership, the partnership's assets and operations may affect our ability to qualify as a REIT, especially if we have no control or only limited influence over the partnership. If a fund is formed that invests with us in an Aggregator Entity, the Aggregator Entity would intend to be classified as a partnership for U.S. federal income tax purposes that is not a publicly traded partnership taxable as a corporation. Consequently, rules regarding investments in partnerships similar to those described in this paragraph above would be expected to apply to our investment in the Aggregator Entity. See "— *Tax Aspects of Investments in Partnerships — General*."

<u>Disregarded Subsidiaries</u> 

If a REIT owns a corporate subsidiary that is a "qualified REIT subsidiary," that subsidiary is disregarded for U.S. federal income tax purposes, and all assets, liabilities and items of income, deduction and credit of the subsidiary are treated as assets, liabilities and items of income, deduction and credit of the REIT itself, including for purposes of the gross income and asset tests applicable to REITs, as summarized

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below. A qualified REIT subsidiary is any corporation, other than a TRS, that is wholly owned by a REIT, by other disregarded subsidiaries of the REIT or by a combination of the two. Limited partnerships and single member limited liability companies that are wholly owned by a regarded parent that have not elected to be taxed as corporations for U.S. federal income tax purposes are also generally disregarded as separate entities for U.S. federal income tax purposes. Disregarded subsidiaries, along with partnerships in which we hold an equity interest, are sometimes referred to herein as "pass-through subsidiaries."

In the event that a disregarded subsidiary ceases to be wholly owned by us (for example, if any equity interest in the subsidiary is acquired by a person other than us or another disregarded subsidiary of ours), the subsidiary's separate existence would no longer be disregarded for U.S. federal income tax purposes. Instead, it would have multiple owners and would be treated as either a partnership or a taxable corporation. Such an event could, depending on the circumstances, adversely affect our ability to satisfy the various asset and gross income tests applicable to REITs, including the requirement that REITs generally may not own, directly or indirectly, more than 10% of the value or voting power of the outstanding securities of another corporation other than a TRS. See "— *Asset Tests*" and "— *Gross Income Tests*" below.

<u>Taxable REIT Subsidiaries</u> 

A REIT, in general, may jointly elect with a subsidiary corporation, whether or not wholly-owned, to treat the subsidiary corporation as a TRS. The separate existence of a TRS or other taxable corporation, unlike a disregarded subsidiary as discussed above, is not ignored for U.S. federal income tax purposes. Accordingly, such an entity would generally be subject to U.S. federal and state corporate income tax on its earnings, if it is organized in the United States (including potentially a 15% AMT on the AFSI of a TRS whose three-year average AFSI exceeds $1 billion), which may reduce the cash flow generated by us and our subsidiaries in the aggregate and our ability to make distributions to our shareholders.

A REIT is not treated as holding the assets of a TRS or other taxable subsidiary corporation or as receiving any income that the subsidiary earns. Rather, our shares issued by the subsidiary is an asset in the hands of the REIT, and the REIT generally recognizes as income the dividends, if any, that it receives from the subsidiary. This treatment can affect the gross income and asset test calculations that apply to the REIT, as described below. See "— *Gross Income Tests*" and "— *Asset Tests*" below. Because a REIT does not include the assets and income of such subsidiary corporations in determining the parent's compliance with the REIT requirements, such entities may be used by the REIT to undertake indirectly activities that the REIT rules might otherwise preclude it from doing directly or through pass-through subsidiaries or render commercially unfeasible. For example, we may use TRSs or other taxable subsidiary corporations to conduct activities that give rise to non-qualifying income under the annual 75% and 95% REIT gross income tests or to conduct activities that, if conducted by us directly, could be treated in our hands as "prohibited transactions."

The TRS rules impose a 100% excise tax on transactions between a TRS and its parent REIT or the REIT's tenants that are not conducted on an arm's-length basis, such as any redetermined rents, redetermined deductions, excess interest or redetermined TRS service income. In general, redetermined rents are rents from real property that are overstated as a result of any services furnished to any of our tenants by a TRS of ours, redetermined deductions and excess interest represent any amounts that are deducted by a TRS of ours for amounts paid to us that are in excess of the amounts that would have been deducted based on arm's length negotiations, and redetermined TRS service income is income of a TRS that is understated as a result of services provided to us or on our behalf. Rents we receive will not constitute redetermined rents if they qualify for certain safe harbor provisions contained in the Code. We intend to review all of our transactions with our TRSs and to conduct such transactions on an arm's-length basis; however we cannot assure you that we will be successful in avoiding this excise tax.

<u>Ownership of Interests in Subsidiary REITs</u> 

We may acquire direct or indirect interests in one or more entities that have elected or will elect to be taxed as REITs under the Code (each, a "**Subsidiary REIT**"). A Subsidiary REIT is subject to the various REIT qualification requirements and other limitations described herein that are applicable to us. If a Subsidiary REIT were to fail to qualify as a REIT, then (i) that Subsidiary REIT would become subject to U.S. federal income tax and (ii) the Subsidiary REIT's failure to qualify could have an adverse effect on our

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ability to comply with the REIT income and asset tests, and thus could impair our ability to qualify as a REIT unless we could avail ourselves of certain relief provisions.

 *Gross Income Tests* 

In order to qualify as a REIT, we must annually satisfy two gross income tests. First, at least 75% of our gross income for each taxable year, excluding gross income from sales of inventory or dealer property in "prohibited transactions" and certain hedging and foreign currency transactions, must consist of defined types of income that we derive, directly or indirectly, from investments relating to real property or mortgage loans on real property or qualified temporary investment income. Qualifying income for purposes of the 75% gross income test generally includes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • rents from real property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • interest on debt secured by a mortgage on real property or on interests in real property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • dividends or other distributions on, and gain from the sale of, shares in other REITs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • gain from the sale of real estate assets (other than a nonqualified publicly offered REIT debt instrument);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • income and gain derived from foreclosure property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • amounts, such as commitment fees, received in consideration for entering into an agreement to make a loan secured by real property, unless such amounts are determined by income and profits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • income derived from a REMIC in proportion to the real estate assets held by the REMIC, unless at least 95% of the REMIC's assets are real estate assets, in which case all of the income derived from the REMIC; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • income derived from certain kinds of temporary investments.

Second, at least 95% of our gross income in each taxable year, excluding gross income from "prohibited transactions" and certain hedging and foreign currency transactions, must be derived from some combination of income that qualifies under the 75% gross income test described above, as well as other dividends, interest, and gain from the sale or disposition of share or securities, which need not have any relation to real property.

To the extent that the terms of a loan provide for contingent interest that is based on the cash proceeds realized upon the sale of the property securing the loan (a "**shared appreciation provision**"), income attributable to the shared appreciation provision will be treated as gain from the sale of the underlying property, which generally will be qualifying income for purposes of both the 75% and 95% gross income tests, provided that the property is not held as inventory or dealer property.

We may directly or indirectly receive distributions from TRSs or other corporations that are not REITs or qualified REIT subsidiaries. These distributions generally are treated as dividend income to the extent of the earnings and profits of the distributing corporation. Such distributions will generally constitute qualifying income for purposes of the 95% gross income test, but not for purposes of the 75% gross income test. Any dividends that we receive from a REIT, however, will be qualifying income for purposes of both the 95% and 75% gross income tests.

<u>Hedging Transactions</u> 

We may enter into hedging transactions with respect to one or more of our assets or liabilities. Hedging transactions could take a variety of forms, including interest rate swap contracts, index swap contracts, interest rate cap or floor contracts, futures or forward contracts and options or similar financial instruments. Except to the extent provided by U.S. Treasury regulations, any income from a hedging transaction will not constitute gross income for purposes of the 75% or 95% gross income test if we properly identify the transaction as specified in applicable U.S. Treasury regulations and we enter into such transaction (i) in the normal course of our business primarily to manage risk of interest rate or price changes or currency fluctuations with respect to borrowings made or to be made, or ordinary obligations incurred or to be incurred, to acquire or carry real estate assets, or (ii) primarily to manage risk of currency fluctuations with

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respect to any item of income or gain that would be qualifying income under the 75% or 95% gross income tests. In addition, income from certain new hedging transactions that counteract prior qualifying hedging transactions described in (i) and (ii) above may not constitute gross income for purposes of the 75% and 95% gross income tests if we properly identify the new hedging transaction as specified in applicable U.S. Treasury regulations. To the extent that we enter into other types of hedging transactions, the income from those transactions is likely to be treated as non-qualifying income for purposes of both of the 75% and 95% gross income tests. We intend to structure any hedging transactions in a manner that does not jeopardize our qualification as a REIT. We may conduct some or all of the hedging activities through a TRS or other corporate entity, the income from which may be subject to U.S. federal income tax, rather than by participating in the arrangements directly or through pass-through subsidiaries. No assurance can be given, however, that our hedging activities will not give rise to income that does not qualify for purposes of either or both of the REIT gross income tests, or that our hedging activities will not adversely affect our ability to satisfy the REIT qualification requirements.

<u>Failure to Satisfy the Gross Income Tests</u> 

We intend to monitor our sources of income, including any non-qualifying income received by us, so as to ensure our compliance with the gross income tests. If we fail to satisfy one or both of the 75% or 95% gross income tests for any taxable year, we may still qualify as a REIT for the year if we are entitled to relief under applicable provisions of the Code. These relief provisions will generally be available if our failure to meet these tests was due to reasonable cause and not due to willful neglect and, following the identification of such failure, we set forth a description of each item of our gross income that satisfies the gross income tests in a schedule for the taxable year filed in accordance with the U.S. Treasury regulations. It is not possible to state whether we would be entitled to the benefit of these relief provisions in all circumstances. If these relief provisions are inapplicable to a particular set of circumstances involving us, we will not qualify as a REIT. As discussed above under "— *Taxation of REITs in General*," even where these relief provisions apply, a tax would be imposed upon the profit attributable to the amount by which we fail to satisfy the particular gross income test.

 *Asset Tests* 

We, at the close of each calendar quarter, must also satisfy five tests relating to the nature of our assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • First, at least 75% of the value of our total assets must be represented by some combination of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • cash and cash items;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • U.S. government securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • interests in real property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • interests in mortgage loans secured by real property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • share (or transferable certificates of beneficial interest) in other REITs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • debt instruments issued by "publicly offered REITs" for U.S. federal income tax purposes; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • regular or residual interests in a REMIC. However, if less than 95% of the assets of a REMIC consist of assets that are qualifying real estate-related assets under the U.S. federal income tax laws, determined as if we held such assets, we will be treated as holding our proportionate share of the assets of such REMIC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Second, of our investments not included in the 75% asset class, the value of any one issuer's securities owned by us may not exceed 5% of the value of our assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Third, of our investments not included in the 75% asset class, we may not own more than 10% of any one issuer's outstanding securities, as measured by either voting power or value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Fourth, the aggregate value of all securities of TRSs held by us may not exceed 20% of the value of our gross assets (and 25% of the value of our gross assets beginning in 2026).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Fifth, of our investments not included in the 75% asset class, debt instruments issued by publicly offered REITs, if they would not otherwise qualify as "real estate assets," cannot exceed 25% of the value of our total assets.

The 5% and 10% asset tests do not apply to securities of TRSs and qualified REIT subsidiaries. The 10% value test does not apply to certain "straight debt" and certain other excluded securities, as described in the Code. In addition, (i) a REIT's interest as a partner in a partnership is not considered a security for purposes of applying the 10% value test; (ii) any debt instrument issued by a partnership (other than straight debt or other excluded security) will not be considered a security issued by the partnership if at least 75% of the partnership's gross income is derived from sources that would qualify for the 75% REIT gross income test; and (3) any debt instrument issued by a partnership (other than straight debt or other excluded security) will not be considered a security issued by the partnership to the extent of the REIT's interest as a partner in the partnership.

For purposes of the 10% value test, "straight debt" means a written unconditional promise to pay on demand on a specified date a sum certain in money if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the debt is not convertible, directly or indirectly, into shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the interest rate and interest payment dates are not contingent on profits, the borrower's discretion, or similar factors other than certain contingencies relating to the timing and amount of principal and interest payments, as described in the Code; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • in the case of an issuer which is a corporation or a partnership, securities that otherwise would be considered straight debt will not be so considered if we, and any of our "controlled taxable REIT subsidiaries" as defined in the Code, hold any securities of the corporate or partnership issuer which:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • are not straight debt or other excluded securities (prior to the application of this rule); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • have an aggregate value greater than 1% of the issuer's outstanding securities (including, for the purposes of a partnership issuer, its interest as a partner in the partnership).

After initially meeting the asset tests at the close of any quarter, we will not lose our qualification as a REIT for failure to satisfy the asset tests at the end of a later quarter solely by reason of changes in asset values. We generally do not intend to take actions we believe would cause us to fail to satisfy the asset tests described above. However, if we fail to satisfy the asset tests because we acquire or increase our ownership interest in securities during a quarter, we can cure this failure by disposing of sufficient non-qualifying assets within 30 days after the close of that quarter. If we fail the 5% asset test, or the 10% vote or value asset tests at the end of any quarter and such failure is not cured within 30 days thereafter, we may dispose of sufficient assets (generally within six months after the last day of the quarter in which our identification of the failure to satisfy these asset tests occurred) to cure such a violation that does not exceed the lesser of 1% of our assets at the end of the relevant quarter or $10,000,000. If we fail any of the other asset tests or our failure of the 5% and 10% asset tests is in excess of the de minimis amount described above, as long as such failure was due to reasonable cause and not willful neglect, we may be permitted to avoid disqualification as a REIT, after the 30 day cure period, by taking steps including the disposition of sufficient assets to meet the asset test (generally within six months after the last day of the quarter in which our identification of the failure to satisfy the REIT asset test occurred) and paying a tax equal to the greater of $50,000 or the corporate income tax rate of the net income generated by the non-qualifying assets during the period in which we failed to satisfy the asset test.

We may enter into financing arrangements that are structured as sale and repurchase agreements pursuant to which we would nominally sell certain of our assets to a counterparty and simultaneously enter into an agreement to repurchase these assets at a later date in exchange for a purchase price. Economically, these agreements act as financings which are secured by the assets sold pursuant thereto. We believe that we would be treated for REIT asset and income test purposes as the owner of the assets that are the subject of any such sale and repurchase agreement notwithstanding that such agreement may transfer record ownership of the assets to the counterparty during the term of the agreement. It is possible, however, that the IRS could assert that we did not own the assets during the term of the sale and repurchase agreement, in which case we could fail to qualify as a REIT.

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 *Phantom Income from Our Acquisition and Holding of Subordinated Debt Instruments and "Scratch-and-Dent" Loans and NPLs along with other Debt Instruments* 

The tax accounting rules with respect to the timing and character of income and losses from our acquisition and holding of subordinated debt instruments and "scratch-and-dent" loans and NPLs, along with other debt instruments, may result in adverse tax consequences. We will be required to include in income accrued interest, original issue discount ("**OID**") and, potentially, market discount (each of which will be ordinary income), with respect to subordinated debt instruments, "scratch-and-dent" loans, NPLs or other debt instruments we hold, in accordance with the accrual method of accounting. Income will be required to be accrued and reported, without giving effect to delays or reductions in distributions attributable to defaults or delinquencies on the debt instruments, except to the extent it can be established that such losses are uncollectible. Accordingly, we may incur a diminution in actual or projected cash flow in a given year as a result of an actual or anticipated default or delinquency but may not be able to take a deduction for the corresponding loss until a subsequent tax year. While we generally may cease to accrue interest income if it reasonably appears that the interest will be uncollectible, the IRS may take the position that OID must continue to be accrued in spite of its uncollectibility until our investments in subordinated debt instruments, "scratch-and-dent" loans, NPLs or other debt instruments are disposed of in a taxable transaction or become worthless.

Due to each of these potential differences between income recognition or expense deduction and related cash receipts or disbursements, there is a significant risk that we may have substantial taxable income in excess of cash available for distribution. In that event, we may need to borrow funds or take other actions to satisfy the REIT distribution requirements for the taxable year in which this "phantom income" is recognized. See "— *Annual Distribution Requirements*" below.

 *Annual Distribution Requirements* 

In order to qualify as a REIT, we are required to distribute dividends, other than capital gain dividends, to our shareholders in an amount at least equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the sum of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • 90% of our "REIT taxable income" (computed without regard to the deduction for dividends paid and our net capital gains); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • 90% of the net income (after tax), if any, from foreclosure property (as described below); minus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the sum of specified items of non-cash income that exceeds a percentage of our income.

These distributions must be paid in the taxable year to which they relate or in the following taxable year if such distributions are declared in October, November or December of the taxable year, are payable to shareholders of record on a specified date in any such month and are actually paid before the end of January of the following year. Such distributions are treated as both paid by us and received by each shareholder on December 31 of the year in which they are declared. In addition, at our election, a distribution for a taxable year may be declared before we timely file our tax return for the year and be paid with or before the first regular dividend payment after such declaration, provided that such payment is made during the 12-month period following the close of such taxable year. These distributions are taxable to our shareholders in the year in which they are paid, even though the distributions relate to our prior taxable year for purposes of the 90% distribution requirement.

Except for distributions by "publicly offered REITs" for U.S. federal income tax purposes, distributions must not be "preferential dividends" in order for such distributions to be counted as dividends by us for purposes of satisfying the annual 90% REIT distribution requirement and avoiding corporate income tax and the 4% nondeductible excise. A dividend is not a preferential dividend if it is pro rata among all outstanding shares within a particular class and is in accordance with the preferences among different classes of shares as set forth in the organizational documents. Additionally, if we repurchase shares from a shareholder in a transaction that does not qualify for sale or exchange treatment, the distribution to the shareholder is treated as a distribution taxable as a dividend for U.S. federal income tax purposes and we are not a "publicly offered REIT" at the time we repurchase such shares, then such distribution could be treated as a preferential dividend and, therefore, be ineligible to be counted as a dividend by us for purposes of satisfying the

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annual 90% REIT distribution requirement and avoiding corporate income tax and the 4% nondeductible excise tax. In that case, we may be subject to additional income and excise taxes or be required to pay taxable "deficiency dividends" to shareholders in a later year or potentially fail to qualify as a REIT, as described in greater detail below. These preferential dividend limitations will not apply to us during any period that we are treated as a "publicly offered REIT," which generally includes a REIT that is required to file annual and periodic reports with the SEC. As a result, we do not expect to be subject to the preferential dividend rule upon the effectiveness of this Registration Statement.

To the extent that we distribute at least 90%, but less than 100%, of our "REIT taxable income," as adjusted, we will be subject to tax at the regular corporate tax rate on the retained portion. In addition, we may elect to retain, rather than distribute, our net long-term capital gains and pay tax on such gains. In this case, we could elect to have our shareholders include their proportionate share of such undistributed long-term capital gains in income and receive a corresponding credit for their proportionate share of the tax paid by us. Our shareholders would then increase the adjusted basis of their shares in us by the difference between the designated amounts included in their long-term capital gains and the tax deemed paid with respect to their proportionate shares. We generally intend to make regular monthly distributions sufficient for us to qualify and maintain our qualification as a REIT for U.S. federal income tax purposes and not be subject to U.S. federal income tax.

If we fail to distribute during each calendar year at least the sum of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • 85% of our REIT ordinary income for such year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • 95% of our REIT capital gain net income for such year; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • any undistributed taxable income from prior periods;

we will be subject to a 4% excise tax on the excess of such required distribution over the sum of (i) the amounts actually distributed (taking into account excess distributions from prior periods) and (ii) the amounts of income retained on which we have paid corporate income tax. We intend to distribute our net income in a manner intended to satisfy the 90% distribution requirement and to avoid both corporate income tax and the 4% nondeductible excise tax.

It is possible that we, from time to time, may not have sufficient cash to meet the distribution requirements due to timing differences between (i) the actual receipt of cash, including receipt of distributions from our subsidiaries and (ii) the inclusion of items in income by us for U.S. federal income tax purposes. See "— *Phantom Income from Our Acquisition and Holding of Subordinated Debt Instruments and "Scratch-and-Dent" Loans and NPLs along with other Debt Instruments*" above. In such circumstances, in order to satisfy the distribution requirement and to avoid U.S. federal corporate income tax and the 4% excise tax in that year, we may be required to: (i) sell assets in adverse market conditions; (ii) borrow on unfavorable terms; (iii) distribute amounts that would otherwise be invested in target assets consistent with our strategy, capital expenditures or repayment of debt; or (iv) make a taxable distribution of our common shares to our common shareholders as part of a distribution in which shareholders may elect to receive shares or (subject to a limit measured as a percentage of the total distribution) cash.

We may be able to rectify a failure to meet the distribution requirements for a year by paying "deficiency dividends" to shareholders in a later year, which may be included in our deduction for dividends paid for the earlier year. In this case, we may be able to avoid losing our qualification as a REIT or being taxed on amounts distributed as deficiency dividends. However, we will be required to pay interest accrued on (and may be required to pay any applicable penalties based on) the amount of any deduction taken for deficiency dividends as though it were an actual increase in our taxes.

 *Prohibited Transactions* 

Net income we derive from a prohibited transaction is subject to a 100% tax. The term "prohibited transaction" generally includes a sale or other disposition of property (other than foreclosure property) that is held as inventory or primarily for sale to customers in the ordinary course of a trade or business by a REIT or by a borrower that has issued a shared appreciation mortgage or similar debt instrument to the REIT. We intend to conduct our operations to avoid the application of the 100% "prohibited transaction"

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tax. However, whether property would trigger the 100% "prohibited transaction" tax depends on the particular facts and circumstances. No assurance can be given that any particular asset in which we hold a direct or indirect interest is the kind of asset that will not trigger the 100% "prohibited transaction" tax. The 100% "prohibited transaction" tax is not expected to apply to gains from the sale of property (or from a shared appreciation mortgage or similar debt instrument) that is held through a TRS or other taxable corporation, although such income will be subject to tax in the hands of the corporation at the regular corporate income tax rate. We intend that any property the sale or disposition of which could give rise to the 100% "prohibited transaction" tax (or any shared appreciation mortgage or similar debt instrument that could give rise to the 100% "prohibited transaction" tax) will be sold through a TRS. Because sales or other dispositions by a TRS are subject to tax at regular corporate income tax rates, these transactions could cause us to indirectly bear material amounts of corporate income tax, depending on the circumstances. Moreover, if we contribute to a TRS any asset the sale or disposition of which could otherwise give rise to the 100% "prohibited transaction" tax before it is sold, there can be no assurance that the IRS would not successfully assert that we, rather than the TRS, were the seller of such asset for U.S. federal income tax purposes, with the TRS acting as our agent. In such a case, the 100% "prohibited transaction" tax could apply to the sale or other disposition.

 *Foreclosure Property* 

Foreclosure property is real property and any personal property incident to such real property:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • that is acquired by a REIT as a result of the REIT having bid on the property at foreclosure or having otherwise reduced the property to ownership or possession by agreement or process of law after there was a default (or default was imminent) on a lease of the property or a mortgage loan held by the REIT and secured by the property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • for which the related loan or lease was acquired by the REIT at a time when default was not imminent or anticipated; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • for which such REIT makes a proper election to treat the property as foreclosure property.

REITs generally are subject to tax at the corporate rate on any net income from foreclosure property, including any gain from the disposition of the foreclosure property, other than income that would otherwise be qualifying income for purposes of the 75% gross income test. Any gain from the sale of property for which a foreclosure property election has been made will not be subject to the 100% tax on gains from prohibited transactions described above, even if the property would otherwise constitute inventory or dealer property in the hands of the selling REIT, but any such gain from the sale of such property could be subject to income tax at the corporate tax rate. If we acquire any foreclosure property, we intend to do so through a TRS. If we were to acquire foreclosure property outside a TRS, however, we do not anticipate that we would receive any income from such foreclosure property that is not qualifying income for purposes of the 75% gross income test, but, if we were to receive any such income, we may elect to treat such property as foreclosure property.

 *Failure to Qualify* 

In the event that we violate a provision of the Code that would otherwise result in our failure to qualify as a REIT, we may nevertheless continue to qualify as a REIT. Specified relief provisions will be available to us to avoid such disqualification if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the violation is due to reasonable cause and not due to willful neglect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • we pay a penalty of $50,000 for each failure to satisfy a requirement for qualification as a REIT; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the violation does not include a violation under the gross income or asset tests described above (for which other specified relief provisions are available).

This cure provision reduces the instances that could lead to our disqualification as a REIT for violations due to reasonable cause. If we fail to qualify for taxation as a REIT in any taxable year and none of the relief provisions of the Code apply, we will be subject to tax on our taxable income at the regular corporate rate. Distributions to our shareholders in any year in which we are not a REIT will not be deductible by us, nor will

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they be required to be made. In this situation, to the extent of current and accumulated earnings and profits, and, subject to limitations of the Code, distributions to our shareholders will generally be taxable in the case of our shareholders who are individual U.S. shareholders, as "qualified dividend income" at a reduced maximum rate, and dividends in the hands of our corporate U.S. shareholders may be eligible for the dividends received deduction. However, distributions to individual U.S. shareholders during any year in which we are not a REIT will not be eligible for the deduction from their taxable income of one-fifth of the Qualified REIT Dividends (as defined below) payable. Unless we are entitled to relief under specific statutory provisions, we will also be disqualified from re-electing to be taxed as a REIT for the four taxable years following the year during which qualification was lost. It is not possible to state whether, in all circumstances, we will be entitled to statutory relief.

 *Tax Aspects of Investments in Partnerships* 

<u>General</u> 

We may hold investments through entities that are classified as partnerships for U.S. federal income tax purposes. In general, partnerships are "pass-through" entities that are not subject to U.S. federal income tax. Rather, partners are allocated their proportionate shares of the items of income, gain, loss, deduction and credit of a partnership, and are subject to tax on these items, without regard to whether the partners receive a distribution from the partnership. However, a partnership could be subject to state and local tax, including the New York City unincorporated business tax. As a partner in a partnership, U.S. Treasury regulations provide that we are deemed to own our proportionate share of the partnership's assets, and to earn our proportionate share of the partnership's income, for purposes of the asset and gross income tests applicable to REITs. Our proportionate share of a partnership's assets and income is based on our capital interest in the partnership (except that, for purposes of the 10% value test, our proportionate share of the partnership's assets is based on our proportionate interest in the equity and certain debt securities issued by the partnership). In addition, the assets and gross income of a partnership are deemed to retain the same character in our hands. Thus, our proportionate share of the assets and items of income of any of our subsidiary partnerships will be treated as our assets and items of income for purposes of applying the REIT requirements. Consequently, to the extent that we directly or indirectly hold an equity interest in a partnership, the partnership's assets and operations may affect our ability to qualify as a REIT, especially if we have no control or only limited influence over the partnership.

If a fund is formed that invests with us in an Aggregator Entity, the Aggregator Entity would intend to be classified as a partnership for U.S. federal income tax purposes that is not a publicly traded partnership taxable as a corporation. Consequently, rules regarding investments in partnerships similar to those described in this section "— *Tax Aspects of Investments in Partnerships*" are expected to apply to the investment in the Aggregator Entity.

<u>Entity Classification</u> 

Any investment in partnerships involves special tax considerations, including the possibility of a challenge by the IRS of the status of any subsidiary partnership as a partnership, as opposed to an association taxable as a corporation, for U.S. federal income tax purposes. If any of these entities were treated as an association for U.S. federal income tax purposes, it would be taxable as a corporation and therefore could be subject to an entity-level tax on its income. In such a situation, the character of our assets and items of gross income would change and this could preclude us from satisfying the REIT asset tests or the gross income tests as discussed in "— *Asset Tests*" and "— *Gross Income Tests*," and in turn could prevent us from qualifying as a REIT, unless we are eligible for relief from the violation pursuant to relief provisions described above. See "*— Asset Tests*," "— *Gross Income Tests*" and "— *Failure to Qualify*," above, for discussion of the effect of failure to satisfy the REIT tests for a taxable year, and of the relief provisions. In addition, any change in the status of any subsidiary partnership for tax purposes might be treated as a taxable event, in which case we could have taxable income that is subject to the REIT distribution requirements without receiving any cash.

<u>Partnership Audit Rules and other Partnership Tax Liability</u> 

The audit procedures for partnerships generally require underpayments of tax to be determined and paid at the partnership level following any adjustment to the partnership's items of income, gain, loss,

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deduction or credit. A partnership will generally be permitted to elect to have a partnership adjustment taken into account by the persons who were partners in the year to which the adjustment relates. Under these rules, it is possible that partnerships in which we directly or indirectly invest will be required to pay additional taxes, interest and penalties as a result of an audit adjustment, and we, as a direct or indirect partner of these partnerships, could be required to bear the economic burden of those taxes, interest, and penalties even though we, as a REIT, may not otherwise have been required to pay additional corporate-level taxes as a result of the related audit adjustment.

If a non-U.S. fund is formed that invests with us in an Aggregator Entity and the Aggregator Entity were engaged in a U.S. trade or business (e.g., from the direct sale of a U.S. real property interests ("**USRPI**") rather than through a TRS), the Aggregator Entity would be required to withhold certain taxes on such fund's share of any income and gain considered to be effectively connected with the U.S. trade or business. If the Aggregator Entity were to fail to so withhold (e.g., because it took the position that its activities did not constitute conducting a U.S. trade or business, and the IRS prevailed in a challenge to that position), the Aggregator Entity could be liable for such withholding taxes and interest and penalties, which could be borne by us and reduce the amount of distributions that we make to our shareholders, including shareholders that did not hold shares in us at the time that the economic gains, if any, from such USRPI sale or other trade or business activity, were distributed.

#### Taxation of Shareholders
 *Taxation of Taxable U.S. Shareholders* 

This section summarizes the taxation of U.S. shareholders who own our common shares that are not tax-exempt organizations. For these purposes, a "**U.S. shareholder**" is a beneficial owner of our common shares who for U.S. federal income tax purposes is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a citizen or resident of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a corporation (including an entity treated as a corporation) created or organized in or under the laws of the United States or of a political subdivision thereof (including the District of Columbia);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • an estate whose income is subject to U.S. federal income taxation regardless of its source; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • any trust if (i) a U.S. court is able to exercise primary supervision over the administration of such trust and one or more U.S. persons have the authority to control all substantial decisions of the trust or (ii) it has a valid election in place to be treated as a U.S. person.

If an entity or arrangement treated as a partnership for U.S. federal income tax purposes owns our shares, the U.S. federal income tax treatment of a partner generally will depend upon the status of the partner and the activities of the partnership. A partner of a partnership that owns our shares should consult its own tax advisor regarding the U.S. federal income tax consequences to the partner of the acquisition, ownership and disposition of our shares by the partnership.

<u>Distributions</u> 

So long as we qualify as a REIT, the distributions that we make to our U.S. shareholders out of current or accumulated earnings and profits that we do not designate as capital gain dividends will generally be taken into account by shareholders as ordinary income and will not be eligible for the dividends received deduction for corporations. With limited exceptions, our dividends are not eligible for taxation at the preferential income tax rates (i.e., the current 20% maximum U.S. federal rate) for qualified dividends received by U.S. shareholders that are individuals, trusts and estates from taxable C corporations. However, such non-corporate shareholders may deduct from their taxable income one-fifth of the REIT dividends payable to them that are not treated as capital gains dividends or as qualified dividend income ("**Qualified REIT Dividends**") for purposes of determining their U.S. federal income tax (but not for purposes of the 3.8% Medicare tax). To qualify for this deduction, the shareholder receiving a Qualified REIT Dividend must hold the dividend-paying REIT shares for at least 46 days (taking into account certain special holding period rules) of the 91-day period beginning 45 days before our shares become ex-dividend and cannot be under an obligation to

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make related payments with respect to a position in substantially similar or related property. Shareholders are urged to consult their tax advisors as to their ability to claim this deduction.

In addition, such shareholders are taxed at the preferential rates on dividends designated by, and received from, REITs to the extent that the dividends are attributable to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • income retained by the REIT in the prior taxable year on which the REIT was subject to corporate level income tax (less the amount of tax),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • dividends received by the REIT from TRSs or other taxable C corporations, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • income in the prior taxable year from the sales of "built-in gain" property acquired by the REIT from C corporations in carryover basis transactions (less the amount of corporate tax on such income).

Distributions that we designate as capital gain dividends will generally be taxed to our U.S. shareholders as long-term capital gains, to the extent that such distributions do not exceed our actual net capital gain for the taxable year, without regard to the period for which the shareholder that receives such distribution has held its shares. The distributions we designate as capital gain dividends may not exceed our dividends paid for the taxable year, including dividends paid the following year that are treated as paid in the current year. The IRS requires a REIT that has two or more classes of shares outstanding to designate to each such class proportionate amounts of each type of its income, such as net capital gains, for each tax year based upon the percentage of total dividends distributed to each class for such year. We may elect to retain and pay taxes on some or all of our net long term capital gains, in which case provisions of the Code will treat our shareholders as having received, solely for tax purposes, our undistributed capital gains, and the shareholders will receive a corresponding credit for taxes that we paid on such undistributed capital gains. Corporate shareholders may be required to treat up to 20% of some capital gain dividends as ordinary income. Long-term capital gains are generally currently taxable at maximum U.S. federal rates of 20% in the case of shareholders that are individuals, trusts and estates, and 21% in the case of shareholders that are corporations. Capital gains attributable to the sale of depreciable real property held for more than 12 months are currently subject to a 25% maximum U.S. federal income tax rate for taxpayers who are taxed as individuals, to the extent of previously claimed depreciation deductions.

Distributions in excess of our current and accumulated earnings and profits will generally represent a return of capital and will not be taxable to a U.S. shareholder to the extent that the amount of such distributions does not exceed the adjusted basis of the shareholder's shares in respect of which the distributions were made. Rather, the distribution will reduce the adjusted basis of the shareholder's shares. To the extent that such distributions exceed the adjusted basis of a shareholder's shares, the shareholder generally must include such distributions in income as long-term capital gain if our shares have been held for more than one year, or short-term capital gain if our shares have been held for one year or less. In addition, any dividend that we declare in October, November or December of any year and that is payable to a shareholder of record on a specified date in any such month will be treated as both paid by us and received by the shareholder on December 31 of such year, provided that we actually pay the dividend before the end of January of the following calendar year.

Earnings and profits are allocated to distributions with respect to preferred shares, if any, before they are allocated to distributions with respect to common shares. Therefore, depending on our earnings and profits, distributions with respect to our preferred shares (as compared to distributions with respect to our common shares) are more likely to be treated as dividends than as a return of capital or a distribution in excess of basis. In addition, the IRS requires a REIT that has two or more classes of shares outstanding to designate to each such class proportionate amounts of each type of its income, such as net capital gains, for each tax year based upon the percentage of total dividends distributed to each class for such year.

To the extent that we have available net operating losses and capital losses carried forward from prior tax years, such losses may reduce the amount of distributions that we must make in order to comply with the REIT distribution requirements. See "— *U.S. Federal Income Tax Considerations as a REIT — Annual Distribution Requirements*." Such losses, however, are not passed through to shareholders and do not offset income of shareholders from other sources. In addition, there are certain limitations on the deductibility of net operating losses. Any distributions made with respect to such tax years into which net operating losses

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have been carried forward from prior tax years will nevertheless be taxable as dividends to the extent that we have current earnings and profits.

While we intend not to distribute any EII from a securitization or any other financing arrangement, if we were to distribute EII to a shareholder, that income would be taxable in the hands of the shareholder and would not be offset by any net operating losses of the shareholder that would otherwise be available.

<u>Distributions under Distribution Reinvestment Plan and other Distributions of our Common Shares</u> 

We may make taxable distributions of our shares to shareholders who participate in the distribution reinvestment plan. Additionally, in certain circumstances, we may make a taxable distribution of our shares as part of a distribution in which shareholders may elect to receive shares or (subject to a limit measured as a percentage of the total distribution) cash. In either case, a U.S. shareholder generally will be treated as receiving a distribution equal to the sum of the value of our shares and the amount of cash received, if any. Such distributions will be taxable as income or gain or reduce the U.S. shareholder's adjusted tax basis in its shares, or some combination of these treatments, under the rules described above under "— *Distributions*." These distributions may give rise to a liability for the payment of income tax without providing such U.S. shareholder with the immediate cash to pay the tax when it becomes due, and you may be forced to use funds from other sources to pay your tax liability.

A U.S. shareholder's tax basis in our shares acquired under the dividend reinvestment plan or other distribution of our shares described above generally will equal the value of our shares received. A U.S. shareholder's holding period for our shares will begin on the day following the date of the distribution.

<u>Dispositions of Our Common Shares</u> 

In general, capital gains recognized by individuals, trusts and estates upon the sale or disposition of our shares will be subject to a current maximum U.S. federal income tax rate of 20% if our shares are held for more than one year, and will be taxed at ordinary income rates (currently up to 37%) if our shares are held for one year or less. Gains recognized by shareholders that are corporations are subject to U.S. federal income tax at a current maximum rate of 21%, whether or not such gains are classified as long-term capital gains. Capital losses recognized by a shareholder upon the disposition of our shares that were held for more than one year at the time of disposition will be considered long-term capital losses and are generally available only to offset capital gain income of the shareholder but not ordinary income (except in the case of individuals, who may offset up to $3,000 of ordinary income each year). In addition, any loss upon a sale or exchange of our shares by a shareholder who has held our shares for six months or less, after applying holding period rules, will be treated as a long-term capital loss to the extent of distributions that we make that are required to be treated by the shareholder as long-term capital gain.

If an investor recognizes a loss upon a subsequent disposition of our shares in an amount that exceeds a prescribed threshold, it is possible that the provisions of U.S. Treasury regulations involving "reportable transactions" could apply, with a resulting requirement to separately disclose the loss-generating transaction to the IRS. These U.S. Treasury regulations, though directed towards "tax shelters," are broadly written, and apply to transactions that would not typically be considered tax shelters. The Code imposes significant penalties for failure to comply with these requirements. You should consult your tax advisors concerning any possible disclosure obligation with respect to the receipt or disposition of our shares, or transactions that we might undertake directly or indirectly. Moreover, you should be aware that we and other participants in the transactions in which we are involved (including their advisors) might be subject to disclosure or other requirements pursuant to these U.S. Treasury regulations.

<u>Repurchase of our Common Shares</u> 

A repurchase of our shares will be treated as a sale or exchange of the repurchased shares for U.S. federal income tax purposes and will be taxed in the same manner as any other taxable sale or exchange of our shares discussed above, provided that the repurchase satisfies one of the tests enabling the repurchase to be treated as a sale or exchange. A repurchase will generally be treated as a sale or exchange for U.S. federal income tax purposes if it (i) results in a "complete termination" of the shareholder's interest in our shares, (ii) results in a "substantially disproportionate" distribution with respect to the shareholder or (iii) is

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"not essentially equivalent to a dividend" with respect to the shareholder, all within the meaning of Section 302(b) of the Code. In determining whether any of these tests has been met, shares actually owned, as well as shares considered to be owned by the shareholder by reason of certain constructive ownership rules set forth in Section 318 of the Code, generally must be taken into account. A repurchase of our shares generally will result in a "substantially disproportionate" distribution with respect to a shareholder if the percentage of our then outstanding voting shares owned by the shareholder immediately after the sale is less than 80% of the percentage of our voting shares owned by the shareholder determined immediately before the sale, and certain other conditions are met. A repurchase of our shares generally will be treated as "not essentially equivalent to a dividend" with respect to a shareholder if the reduction in the shareholder's proportionate interest in our shares as a result of our repurchase constitutes a "meaningful reduction" of such shareholder's interest. Because the determination as to whether any of the tests of Section 302(b) of the Code is satisfied with respect to any particular repurchase will depend upon the facts and circumstances as of the time the determination is made and the constructive ownership rules are complicated, shareholders are urged to consult their own tax advisers to determine the U.S. federal income tax treatment of any such share repurchase.

If a repurchase of our shares does not qualify for sale or exchange treatment under Section 302(b) of the Code, the amount of cash and the fair market value of the property received by the shareholder will be treated as a distribution from us, as described above in the section entitled "— *Distributions*." In addition, although guidance is sparse, the IRS could take the position that shareholders who do not participate in any repurchase that is treated as a dividend should be treated as receiving a constructive share distribution taxable as a dividend in the amount of the increased percentage ownership in us as a result of the repurchase, even though such shareholders did not actually receive cash or other property as a result of such repurchase.

During any period in which we believe that we are not a "publicly offered REIT" for U.S. federal income tax purposes, we may decline any repurchase request by a shareholder if we believe the repurchase (i) would not qualify for sale or exchange treatment under Section 302(b) of the Code or (ii) would otherwise negatively affect any other shareholders or negatively affect our status as a REIT. Under the share repurchase plan, each shareholder agrees to provide to us any information reasonably requested to enable us to determine whether a repurchase requested by the shareholder would qualify for sale or exchange treatment under Section 302(b) of the Code or would otherwise negatively affect any other shareholders or negatively affect our status as a REIT.

<u>Medicare Contribution Tax on Unearned Income</u> 

A U.S. person that is an individual or estate, or a trust that does not fall into a special class of trusts that is exempt from such tax, will be subject to a 3.8% tax on the lesser of (i) the U.S. person's "net investment income" for the relevant taxable year and (ii) the excess of the U.S. person's modified adjusted gross income for the taxable year over a certain threshold (which in the case of individuals will be between $125,000 and $250,000 depending on the individual's circumstances). Net investment income generally includes dividends, and net gains from the disposition of shares, unless such income or gains are derived in the ordinary course of the conduct of a trade or business (other than a trade or business that consists of certain passive or trading activities). A U.S. person that is an individual, estate or trust should consult its tax advisor regarding the applicability of the Medicare tax to its income and gains in respect of its investment in our shares.

<u>No Deductibility for Certain Fees and Expenses</u> 

Non-corporate U.S. shareholders may be unable to deduct certain expenses, including any upfront selling commissions / origination fees, upfront dealer manager fees or other similar placement fees paid to participating broker dealers and/or the dealer manager (if any) or any placement fees charged by certain other financial intermediaries.

<u>Information Reporting and Backup Withholding</u> 

We will report to our shareholders and to the IRS the amount of distributions we pay during each calendar year and the amount of tax we withhold, if any. Under the backup withholding rules, you may be subject to backup withholding at a current rate of 24% with respect to distributions unless you: (i) are a

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corporation or come within certain other exempt categories and, when required, demonstrate this fact; or (ii) provide a taxpayer identification number, certify as to no loss of exemption from backup withholding, and otherwise comply with the applicable requirements of the backup withholding rules. Backup withholding is not an additional tax. Any amount withheld under these rules will be refunded or credited against your U.S. federal income tax liability, provided that you timely furnish the IRS with certain required information.

 *Taxation of Non-U.S. Shareholders* 

The following is a summary of certain U.S. federal income tax consequences of the ownership and disposition of our shares applicable to non-U.S. shareholders. For these purposes, a "**non-U.S. shareholder**" is a beneficial owner of our shares who is neither a U.S. shareholder nor an entity that is treated as a partnership for U.S. federal income tax purposes. The following discussion is based on current law and is for general information only. It addresses only selective and not all aspects of U.S. federal income taxation of non-U.S. shareholders and does not take into account certain special rules under the Foreign Investment in Real Property Tax Act of 1980 ("**FIRPTA**") that apply to "qualified shareholders" and "qualified foreign pension funds" as defined in the Code. "Qualified shareholders" and "qualified foreign pension funds" are urged to consult their tax advisors regarding the U.S. federal, state and local to you of sales of our shares and the receipt of dividends and other distributions from us. If a partnership, including for this purpose any entity that is treated as a partnership for U.S. federal income tax purposes, holds our shares, the tax treatment of a partner in the partnership will generally depend upon the status of the partner and the activities of the partnership. An investor that is a partnership and the partners in such partnership should consult their tax advisors about the U.S. federal income tax consequences of the acquisition, ownership and disposition of our shares.

<u>In General</u> 

In general and except as described below, non-U.S. shareholders will not be engaged in a U.S. trade or business solely as a result of their ownership of our shares. In cases where the dividend income from a non-U.S. shareholder's investment in our shares is, or is treated as, effectively connected with the non-U.S. shareholder's conduct of a U.S. trade or business, the non-U.S. shareholder generally will be subject to U.S. federal income tax at graduated rates, in the same manner as U.S. shareholders are taxed with respect to such dividends. Such income must generally be reported on a U.S. federal income tax return filed by or on behalf of the non-U.S. shareholder. The income may also be subject to the 30% (or lower applicable treaty rate) branch profits tax in the case of a non-U.S. shareholder that is a corporation.

<u>Ordinary Dividends</u> 

Subject to the previously noted assumptions, for non-U.S. shareholders other than (i) pension funds and certain other organizations that are exempt from taxation in a home jurisdiction that has a bilateral tax treaty with the United States providing for an exemption from U.S. withholding tax on dividends and provide us in a timely manner with a properly completed and valid IRS Form W-8BEN or IRS Form W-8BEN-E (or successor form) claiming an exemption from, or a reduced rate of, U.S. withholding tax under that tax treaty, (ii) foreign governments and their agencies and instrumentalities not engaged in commercial activities ("**Foreign Sovereigns**"), as defined in Section 892 of the Code and the applicable U.S. Treasury regulations, and eligible for exemption from U.S. withholding tax thereunder that provide us in a timely manner with a properly completed and valid IRS Form W-8EXP (or successor form) claiming an exemption from U.S. federal income tax under Section 892 of the Code, and (iii) non-U.S. shareholders that are engaged in a U.S. trade or business with respect to which our distributions constitute effectively connected income and provide us in a timely manner with a properly completed and valid IRS Form W-8ECI (or successor form), the portion of distributions received by non-U.S. shareholders that are: (a) payable out of our earnings and profits; and (b) neither attributable to gains from sales or exchanges of USRPIs that we have held directly or through pass-through subsidiaries (such gains, "**USRPI Capital Gains**") nor designated by us as capital gain dividends, will be subject to U.S. withholding tax at the rate of 30% (or lower applicable treaty rate). Under some treaties, however, lower rates generally applicable to dividends do not apply to dividends from REITs. Debt instruments representing interests held solely as a creditor are not USRPIs.

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While we intend not to distribute any EII from a securitization or any other financing arrangement, if we were to distribute EII to a non-U.S. shareholder, reduced treaty rates or exemptions would not be available to any EII distributed by us to the non-U.S. shareholder claiming such tax treaty benefits. Accordingly, tax would be withheld at a rate of 30% on any portion of a dividend that is paid to such a non-U.S. shareholder and is attributable to that shareholder's share of our EII. In addition, if EII is distributed to a Foreign Sovereign, we would be subject to corporate-level tax on such income, and, in that case, we may reduce distributions that would otherwise be made to such Foreign Sovereign by the amount of the tax so imposed.

<u>Non-Dividend Distributions</u> 

Distributions by us to a non-U.S. shareholder that are neither attributable to USRPI Capital Gains nor designated as capital gains dividends and are in excess of our current and accumulated earnings and profits will not be taxable to the extent that such distributions do not exceed the non-U.S. shareholder's adjusted basis in our shares. Instead, the excess portion of the distribution will reduce the non-U.S. shareholder's adjusted basis in our shares. Such distributions that are neither attributable to USRPI Capital Gains nor designated as capital gain dividends and are in excess of our current and accumulated earnings and profits and exceed the non-U.S. shareholder's adjusted basis in our shares will be treated as gain from the sale of our shares, the tax treatment of which is described below under "— *Dispositions of Our Common Shares*." Because we generally will not be able to determine at the time we make a distribution whether the distribution will exceed our current and accumulated earnings and profits, we normally will withhold tax on the entire amount of any distribution at the same rate as we would withhold on a dividend, as described above under "— *Ordinary Dividends*." We also are required to withhold at least 15% of any distribution to a non-U.S. shareholder in excess of our current and accumulated earnings and profits if our shares constitute USRPIs with respect to such non-U.S. shareholder, although we do not currently expect our shares to constitute USRPIs, as described below under "— *Dispositions of Our Common Shares.*" This withholding would apply even if a lower treaty rate otherwise applies or the non-U.S. shareholder is not liable for tax on the receipt of that distribution. However, a non-U.S. shareholder may seek a refund of these amounts from the IRS if the non-U.S. shareholder's U.S. federal tax liability with respect to the distribution is less than the amount withheld.

<u>Capital Gain Dividends</u> 

Capital gain dividends paid by us to a non-U.S. shareholder that are not attributable to USRPI Capital Gains generally will not be subject to U.S. federal income or withholding tax, unless either (i) the non-U.S. shareholder's investment in our shares is effectively connected with a U.S. trade or business conducted by such non-U.S. shareholder (in which case the non-U.S. shareholder generally will be subject to the same treatment as U.S. shareholders with respect to such capital gain dividends) or (ii) the non-U.S. shareholder is a non-resident alien individual who was present in the United States for 183 days or more during the taxable year and has a "tax home" in the United States (in which case the non-U.S. shareholder will be subject to a 30% tax on the individual's net capital gain for the year).

Under FIRPTA, distributions by us to a non-U.S. shareholder (including a Foreign Sovereign) that are attributable to USRPI Capital Gains will be considered effectively connected with a U.S. trade or business of the non-U.S. shareholder, without regard to whether the distribution is designated as a capital gain dividend. We do not expect to make distributions that are attributable to gain from the sale or exchange of USRPIs. In particular, if we were to acquire a USRPI in connection with a foreclosure or similar proceeding or for any other reason, we intend to do so through a TRS, which TRS generally would be required to pay U.S. federal (and applicable state and local) corporate income tax on any gain from the disposition. The TRS would then dispose of such USRPI through a taxable transaction, and the after-tax proceeds of such sale may then be distributed to us by the TRS, in a manner that is not intended to give rise to distributions that are considered effectively connected with a U.S. trade or business of a non-U.S. shareholder. If, notwithstanding the foregoing, however, we make distributions that are attributable to USRPI Capital Gains, the non-U.S. shareholder would be required to file a U.S. federal income tax return and pay U.S. federal income tax at graduated rates, in the same manner as U.S. shareholders are taxed with respect to such distributions, and we would be required to withhold tax at the highest rate of U.S. federal income tax applicable to the non-U.S. shareholder, based on the status of the non-U.S. shareholder, of any distributions to the non-U.S. shareholder that are attributable to USRPI Capital Gains. The amount withheld would be

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creditable against the non-U.S. shareholder's U.S. federal income tax liability. Distributions subject to FIRPTA also may be subject to a 30% branch profits tax if the non-U.S. shareholder is a corporation. A distribution is not attributable to USRPI Capital Gain if we held an interest in the underlying asset solely as a creditor.

A distribution by a REIT to a non-U.S. shareholder that is attributable to USRPI Capital Gains would not be subject to FIRPTA if the distribution is with respect to any class of our shares that are "regularly traded" on an established securities market located in the United States and the non-U.S. shareholder did not own more than 10% of such class of shares at any time during the one-year period ending on the date of such distribution. Instead, any such distribution would be treated as a distribution subject to the rules applicable to ordinary dividends discussed above under "— *Ordinary Dividends*." However, it is not anticipated that our shares will be "regularly traded" on an established securities market, and therefore, the exception described above is not expected to apply to non-U.S. shareholders.

<u>Distributions under Distribution Reinvestment Plan and other Distributions of our Common Shares</u> 

We may make taxable distributions of our shares to shareholders who participate in the distribution reinvestment plan. Additionally, in certain circumstances, we may make a taxable distribution of our shares as part of a distribution in which shareholders may elect to receive shares or (subject to a limit measured as a percentage of the total distribution) cash. In either case, such distributions generally will be subject to the same U.S. federal income tax consequences as distributions of cash, and non-U.S. shareholders may be subject to U.S. withholding tax and receive shares and cash net of such withholding tax. Non-U.S. shareholders are urged to consult with their tax advisors regarding the implication of withholding tax in connection with participating in the distribution reinvestment plan or the receipt of our shares as part of any other distribution.

<u>Dispositions of Our Common Shares</u> 

Unless our shares constitute a USRPI, a sale of our shares by a non-U.S. shareholder will not be subject to U.S. federal income taxation under FIRPTA. Our shares will be treated as USRPIs if 50% or more of our assets at any time during a prescribed testing period consist of interests in real property located within the United States, excluding, for this purpose, interests in loans and other assets that are interests held solely as a creditor. We do not currently expect our shares to constitute USRPIs under the foregoing test, although no assurance can be provided in this regard. Even if the foregoing test is met, however, our common shares nonetheless will not constitute USRPIs if we are a "domestically controlled" REIT. A domestically controlled REIT is a REIT, less than 50% of the value of which is owned directly or indirectly by non-U.S. persons at all times during a specified testing period (after applying certain presumptions regarding the ownership of our shares, as described in the Code). Under recently finalized U.S. Treasury regulations, for purposes of the determination of whether a REIT is a domestically controlled REIT, the ownership by non-U.S. persons is determined by looking through certain entities, including non-publicly traded partnerships, REITs, regulated investment companies, or domestic C corporations owned more than 50% directly or indirectly by foreign persons and by treating qualified foreign pension funds as non-U.S. persons for this purpose. If our shares are classified as USRPIs, we cannot predict whether we will be a domestically controlled REIT. We further do not expect our shares to be "regularly traded" on an established securities market for purposes of the FIRPTA exceptions that apply to a non-U.S. shareholder that did not, at any time during a specified testing period, own more than 10% of our shares.

If we are a domestically controlled REIT or our common shares otherwise are not USRPIs at any time during the prescribed testing period, the sale of our shares generally will not be subject to taxation under FIRPTA (except in the case of a repurchase to the extent the repurchase proceeds are attributable to our USRPI Capital Gains). As stated above, we do not currently expect our shares to constitute USRPIs, although no assurance can be provided in this regard. However, if we are not a "domestically controlled" REIT and our common shares constitute USRPIs at any time during the specified testing period, the non-U.S. shareholder would be required to file a U.S. federal income tax return and pay U.S. federal income tax at graduated rates, in the same manner as U.S. shareholders are taxed with respect to such gain, and the purchaser of our shares would be required to withhold 15% of the purchase price and remit such amount to the IRS.

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Even if we are and continue to be a domestically controlled REIT, a non-U.S. shareholder may be treated as having capital gain from the sale or exchange of a USRPI if the non-U.S. shareholder: (i) disposes of our shares within a 30-day period preceding the ex-dividend date of a distribution, any portion of which, but for the disposition, would have been treated as USRPI Capital Gains; and (ii) acquires, or enters into a contract or option to acquire, our shares within 61 days of the first day of the 30-day period described in (i).

Gain from the sale of our shares that would not otherwise be subject to taxation under FIRPTA will nonetheless be taxable in the United States to a non-U.S. shareholder in two cases: (i) if the non-U.S. shareholder's investment in our shares is effectively connected with a U.S. trade or business conducted by such non-U.S. shareholder, the non-U.S. shareholder will be subject to the same treatment as a U.S. shareholder with respect to such gain; or (ii) the non-U.S. shareholder is a nonresident alien individual who was present in the United States for 183 days or more during the taxable year and certain other requirements are met, in which case the non-U.S. shareholder will incur a 30% tax on his capital gains, which potentially may be offset by certain U.S.-source capital losses.

<u>Repurchase of our Common Shares</u> 

A repurchase of our shares that is treated as a sale or exchange of the repurchased shares for U.S. federal income tax purposes will be taxed in the same manner as described above in "— *Dispositions of Our Common Shares*." See "— *Taxation of Taxable U.S. Shareholders — Repurchase of our Common Shares*" for a discussion of when a repurchase will be treated as a sale or exchange for U.S. federal income tax purposes.

If a repurchase of our shares does not qualify for sale or exchange treatment under Section 302(b) of the Code, the amount of cash and the fair market value of the property received by the non-U.S. shareholder will be treated as a distribution from us under the rules described above. Because we may not be able to determine if a particular non-U.S. shareholder qualifies for sale or exchange treatment, we may withhold taxes equal to 30% of the gross amounts payable to a non-U.S. shareholder. The non-U.S. shareholder may be eligible to obtain a refund of all or a portion of any tax withheld if the repurchase qualified for sale or exchange treatment, provided that certain conditions are met. Non-U.S. shareholders are urged to consult their own tax advisers regarding the potential tax consequences to them of a repurchase of our shares. In addition, although guidance is sparse, the IRS could take the position that shareholders who do not participate in any repurchase that is treated as a dividend should be treated as receiving a constructive share distribution taxable as a dividend in the amount of the increased percentage ownership in us as a result of the repurchase, even though such shareholders did not actually receive cash or other property as a result of such repurchase, and any such constructive dividend could be subject to U.S. withholding tax.

During any period in which we believe that we are not a "publicly offered REIT" for U.S. federal income tax purposes, we may decline any repurchase request by a shareholder if we believe the repurchase (i) would not qualify for sale or exchange treatment under Section 302(b) of the Code or (ii) would otherwise negatively affect any other shareholders or negatively affect our status as a REIT. Under the share repurchase plan, each shareholder agrees to provide to us any information reasonably requested to enable us to determine whether a repurchase requested by the shareholder would qualify for sale or exchange treatment under Section 302(b) of the Code or would otherwise negatively affect any other shareholders or negatively affect our status as a REIT.

<u>Information Reporting and Backup Withholding</u> 

Generally, information reporting will apply to payments of distributions on, and of the proceeds from the disposition of, our shares, and backup withholding described above for a U.S. shareholder will apply, unless the payee certifies that it is not a U.S. person or otherwise establishes an exemption. Backup withholding is not an additional tax. Any amount withheld under these rules may be refunded or credited against your U.S. federal income tax liability, provided that you timely furnish the IRS with certain required information.

<u>HIRE Act</u> 

The HIRE Act (commonly referred to as FATCA) generally imposes a 30% withholding tax on dividends on our shares paid to (i) a foreign financial institution (as that term is defined in Section 1471(d)(4)

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of the Code) unless that foreign financial institution enters into an agreement with the U.S. Treasury Department to collect and disclose information regarding U.S. account holders of that foreign financial institution (including certain account holders that are foreign entities that have U.S. owners) and satisfies other requirements and (ii) specified other non-U.S. entities unless such an entity provides the payor with a certification identifying the direct and indirect U.S. owners of the entity and complies with other requirements. Under specified circumstances, a non-U.S. shareholder of our shares may be eligible for refunds or credits of those taxes. You are encouraged to consult with your own tax advisor regarding the possible implications of this legislation on your investment in our shares.

 *Taxation of Tax-Exempt Shareholders* 

Tax-exempt entities, including qualified employee pension and profit sharing trusts and individual retirement accounts, generally are exempt from U.S. federal income taxation. Such entities, however, may be subject to taxation on their unrelated business taxable income ("**UBTI**"). While some investments in real estate may generate UBTI, the IRS has ruled that dividend distributions from a REIT to a tax-exempt entity generally do not constitute UBTI. Based on that ruling, and provided that (i) a tax-exempt shareholder has not held our shares as "debt financed property" within the meaning of the Code (i.e., where the acquisition or holding of the property is financed through a borrowing by the tax-exempt shareholder) and (ii) our shares are not otherwise used in an unrelated trade or business, distributions that we make and income from the sale or redemption of our shares generally should not give rise to UBTI to a tax-exempt shareholder.

While we intend not to distribute any EII from a securitization or any other financing arrangement, if we were to distribute EII to a tax-exempt shareholder, that distribution would be subject to U.S. federal income tax as UBTI in the hands of a tax-exempt shareholder that is otherwise generally exempt from U.S. federal income tax but is subject to taxation on UBTI. If, however, EII is distributed to some categories of tax-exempt shareholders that are not subject to UBTI, we would be subject to corporate level tax on such income, and, in that case, we may reduce distributions that would otherwise be made to such shareholders by the amount of the tax so imposed.

Tax-exempt shareholders that are social clubs, voluntary employee benefit associations, supplemental unemployment benefit trusts, and qualified group legal services plans exempt from U.S. federal income taxation under Sections 501(c)(7), (c)(9) and (c)(17) of the Code are subject to different UBTI rules, which generally require such shareholders to characterize distributions that we make as UBTI.

In certain circumstances, a pension trust that owns more than 10% of our shares could be required to treat a percentage of the dividends as UBTI, if we are a "pension-held REIT." We will not be a pension-held REIT unless (i) we are required to "look through" one or more of our pension trust shareholders in order to satisfy the REIT closely held test and (ii) either (a) one pension trust owns more than 25% of the value of our shares, or (b) one or more pension trusts, each individually holding more than 10% of the value of our shares, collectively owns more than 50% of the value of our shares. Certain restrictions on ownership and transfer of our shares generally should prevent a tax-exempt entity from owning more than 10% of the value of our shares, and generally should prevent us from becoming a pension-held REIT, although no assurance can be provided in this regard, including in the event we issue one or more waivers from such ownership restrictions.

A tax-exempt U.S. shareholder that is subject to tax on its UBTI generally will be required to segregate its taxable income and loss for each unrelated trade or business activity for purposes of determining its UBTI. Certain tax-exempt U.S. shareholders that are private educational institutions will be subject to an excise tax on their net investment income.

 **Tax-exempt shareholders are urged to consult their tax advisors regarding the U.S. federal, state, local and foreign income and other tax consequences of owning our shares.** 

#### Other Tax Considerations
 *Legislative or Other Actions could Materially and Adversely Affect us and our Shareholders* 

The rules dealing with U.S. federal income taxation are constantly under review by persons involved in the legislative process and by the IRS and the U.S. Treasury Department. Changes to the tax laws, with or

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without retroactive application, could materially and adversely affect us and our shareholders. We cannot predict how changes in the tax laws might affect us or our shareholders. New legislation or U.S. Treasury regulations, administrative interpretations, or court decisions could significantly and negatively affect our ability to qualify as a REIT, the U.S. federal income tax consequences of such qualification, or the U.S. federal income tax consequences of our shareholders.

 *State, Local and Foreign Taxes* 

We and our subsidiaries and shareholders may be subject to state, local or foreign taxation in various jurisdictions, including those in which we or they transact business, own property or reside. We may own properties located in numerous jurisdictions and may be required to file tax returns in some or all of those jurisdictions. Our state, local or foreign tax treatment and that of our shareholders may not conform to the U.S. federal income tax treatment discussed above. We may pay foreign property taxes, and dispositions of foreign property or operations involving, or investments in, foreign property may give rise to foreign income or other tax liability in amounts that could be substantial. Any foreign taxes that we incur do not pass through to shareholders as a credit against their U.S. federal income tax liability. Prospective investors should consult their tax advisors regarding the application and effect of state, local and foreign income and other tax laws on an investment in our shares.

#### Certain ERISA Considerations
The following is a summary of certain considerations associated with an investment in us by any (i) "employee benefit plan" (within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended ("**ERISA**")) that is subject to Title I of ERISA, (ii) plan, individual retirement account ("**IRA**"), "Keogh" plan or other arrangement that is subject to Section 4975 of the Code, (iii) entity or account whose underlying assets are considered to include "plan assets" of any of the foregoing described in clauses (i) and (ii) (each of the foregoing described in clauses (i), (ii) and (iii) referred to herein as a "**Benefit Plan Investor**") or (iv) any other plan or account that is not subject to ERISA or Section 4975 of the Code but is subject to provisions under any other federal, state, local, non-U.S. or other laws or regulations that are substantially similar to Title I of ERISA or Section 4975 of the Code ("**Similar Laws**") (each of the foregoing described in (i) – (iv), a "**Plan**").

#### General Fiduciary Rules
ERISA and the Code impose certain duties on persons who are fiduciaries of a Benefit Plan Investor and prohibit certain transactions involving the assets of a Benefit Plan Investor and its fiduciaries or other interested parties. Under ERISA and the Code, any person who exercises any discretionary authority or control over the administration of a Benefit Plan Investor or the management or disposition of the assets of a Benefit Plan Investor, or who renders investment advice for a fee or other compensation to a Benefit Plan Investor, is generally considered to be a fiduciary of the Benefit Plan Investor.

In considering an investment in our shares of a portion of the assets of any Plan, a fiduciary should determine, particularly in light of the risks and limited liquidity inherent in an investment in our shares, whether the investment is in accordance with the documents and instruments governing the Plan and the applicable provisions of ERISA, the Code or any Similar Law relating to a fiduciary's duties to the Plan, including, without limitation, the prudence, diversification, delegation of control, conflicts of interest and prohibited transaction provisions of ERISA, the Code and any other applicable Similar Laws, the role that an investment in our shares has in the Plan's investment portfolio, taking into account the Plan's purposes, the risk of loss and the potential return in respect of such investment, the composition of the Plan's portfolio, the liquidity and current return of the total portfolio relative to the anticipated cash flow needs of the Plan and the projected return of the portfolio relative to the Plan's funding objectives.

#### Prohibited Transactions
ERISA and Section 4975 of the Code generally prohibit a fiduciary from causing a Benefit Plan Investor to engage in a broad range of transactions involving the assets of the Benefit Plan Investor and persons having a specified relationship to the Benefit Plan Investor ("**parties in interest**" under ERISA and "**disqualified persons**" under the Code) unless a statutory or administrative exemption applies. An excise tax may be

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imposed pursuant to Section 4975 of the Code on disqualified persons in respect of non-exempt prohibited transactions involving the assets of the Benefit Plan Investor. Generally speaking, parties in interest for purposes of ERISA would be disqualified persons under Section 4975 of the Code.

The acquisition of our shares with "plan assets" of a Benefit Plan Investor with respect to which we, the Sponsor, the Adviser, any dealer manager and their respective affiliates is considered a party in interest or a disqualified person could result in a prohibited transaction, unless the investment is acquired in accordance with an applicable statutory, regulatory or administrative exemption. The DOL has issued a number of prohibited transaction class exemptions ("**PTCEs**") that may apply to the acquisition of our shares. These class exemptions include PTCE 84-14 (for certain transactions effected by qualified professional asset managers), PTCE 90-1 (for certain transactions involving insurance company pooled separate accounts), PTCE 91-38 (for certain transactions involving bank collective investment funds), PTCE 95-60 (for certain transactions involving insurance company general accounts) and PTCE 96-23 (for certain transactions effected by in-house asset managers). In addition, ERISA Section 408(b)(17) and Section 4975(d)(20) of the Code provide relief from the prohibited transaction provisions of ERISA and Section 4975 of the Code for certain transactions, provided that neither the party in interest nor any of its affiliates (directly or indirectly) have or exercise any discretionary authority or control or render any investment advice with respect to the assets of the Benefit Plan Investor involved in the transaction, and provided further that, the Benefit Plan Investor receives no less, nor pays no more than adequate consideration in connection with the transaction. Each of the above-noted exemptions contains conditions and limitations on its application. Fiduciaries of Benefit Plan Investors considering acquiring our shares in reliance on these or any other exemption should carefully review the exemption in consultation with its legal advisors to assure it is applicable. There can be no assurance that all of the conditions of any such exemptions will be satisfied.

#### Plan Assets
The Plan Asset Regulations describe what constitutes the assets of a Benefit Plan Investor for purposes of various provisions of the fiduciary responsibility and prohibited transaction provisions of Title I of ERISA and Section 4975 of the Code when a Benefit Plan Investor makes an equity investment in an entity, such as an investment in our shares. If a Benefit Plan Investor invests in an equity interest of an entity that is neither a "publicly-offered security" (within the meaning of the Plan Asset Regulations) nor a security issued by an investment company registered under the Investment Company Act, the Benefit Plan Investor's assets include both the equity interest and an undivided interest in each of the entity's underlying assets, unless it is established that the entity is an "operating company" or that equity participation in the entity by Benefit Plan Investors is not "significant" (within the meaning of the Plan Asset Regulations).

Under the Plan Asset Regulations, equity participation in an entity by Benefit Plan Investors is "significant" on any date if, immediately after the most recent acquisition of any equity interest in the entity, 25% or more of the total value of any class of equity interests is held by Benefit Plan Investors. For purposes of this determination, the value of equity interests held by a person (other than a Benefit Plan Investor) who has discretionary authority or control with respect to the assets of the entity or that provides investment advice for a fee (direct or indirect) with respect to such assets (or any affiliate of such a person) is disregarded (any such person, a "**Controlling Person**"). For so long as our shares are not considered "publicly-offered securities" within the meaning of the Plan Asset Regulations, we intend to limit investments in our shares by Benefit Plan Investors to less than 25% of the total value of each class of equity interests, as determined in accordance with the Plan Asset Regulations.

Accordingly, the Adviser will have the power to take certain actions to avoid having our assets characterized as "plan assets," including, without limitation, placing restrictions on our share purchases, redemptions and participation in the distribution reinvestment plan, and requiring a shareholder to dispose of all or part of its shares.

If our assets of were deemed to be "plan assets" for purposes of ERISA or Section 4975 of the Code, this would result, among other things, in (i) the application of the prudence and other fiduciary responsibility standards of ERISA to investments made by us, and (ii) the possibility that certain transactions in which we might seek to engage could constitute "prohibited transactions" under ERISA and the Code. If a prohibited transaction occurs for which no exemption is available, the Adviser and/or any other "party in

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interest" or "disqualified person" that has engaged in the prohibited transaction could be required to (i) restore to the Benefit Plan Investor any profit realized on the transaction and (ii) reimburse the Benefit Plan Investor for any losses suffered by the Benefit Plan Investor as a result of the investment. In addition, each disqualified person (within the meaning of Section 4975 of the Code) involved could be subject to an excise tax equal to 15% of the amount involved in the prohibited transaction for each year the transaction continues and, unless the transaction is corrected within statutorily required periods, to an additional tax of 100% of the amount involved. Fiduciaries of a Benefit Plan Investor who decide to invest in our shares could, under certain circumstances, be liable for prohibited transactions or other violations as a result of their investment in our shares or as co-fiduciaries for actions taken by or on our behalf or the Adviser. With respect to an IRA that invests in our shares, the occurrence of a prohibited transaction could cause the IRA to lose its tax-exempt status.

#### Governmental Plans and Non-U.S. Plans
Certain Plans, such as governmental plans and non-U.S. plans, may not be subject to ERISA or Section 4975 of the Code, but may be subject to provisions of Similar Laws which may restrict the type of investments such a Plan may make or otherwise have an impact on such a Plan's ability to invest in our shares. Accordingly, each Plan, including governmental and foreign plans, considering an investment in our shares should consult with their counsel regarding their proposed investment in our shares.

#### Representations and Warranties
Each prospective investor in our shares will be required to represent in its subscription agreement (i) whether or not it is acting on behalf of a Benefit Plan Investor, a Plan subject to Similar Law or a Controlling Person and (ii) that its acquisition, holding and disposition of our shares will not result in or constitute a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code or a non-exempt violation of any applicable Similar Law.

Each prospective investor in our shares that is a Benefit Plan Investor will be deemed to have represented and warranted by its investment that (i) none of us, the Adviser, the Sponsor, any dealer manager or any of their affiliates (the "**Transaction Parties**") has provided any investment recommendation or investment advice to the Benefit Plan Investor, or any fiduciary or other person investing on behalf of the Benefit Plan Investor or who otherwise has discretion or control over the investment and management of "plan assets" ("**Plan Fiduciary**"), on which either the Benefit Plan Investor or Plan Fiduciary has relied in connection with the decision for an investment in our shares, (ii) the Transaction Parties are not otherwise acting as a "fiduciary," as that term is defined in Section 3(21) of ERISA or Section 4975(e)(3) of the Code, to the Benefit Plan Investor or Plan Fiduciary in connection with the Benefit Plan Investor's investment in our shares and (iii) the Plan Fiduciary is exercising its own independent judgment in evaluating the transaction.

 **The foregoing discussion is general in nature and is not intended to be all-inclusive. Each Plan Fiduciary should consult with its legal advisor concerning the considerations discussed above before making an investment in our shares. As indicated above, Similar Laws governing the investment and management of the assets of Plans that are not subject to ERISA or Section 4975 of the Code, such as governmental and non-U.S. plans, may contain fiduciary and prohibited transaction requirements similar to those under ERISA and Section 4975 of the Code. Accordingly, Plans, in consultation with their advisors, should consider the impact of their respective laws and regulations on an investment in our shares and the considerations discussed above, if applicable.** 

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#### ITEM 1A. RISK FACTORS
 *Investing in our shares involves a number of significant risks. The following information is a discussion of the material risk factors associated with an investment in our shares specifically, as well as those factors generally associated with an investment in a REIT with investment objectives, investment policies, capital structure or trading markets similar to ours. The risks below are not the only risks we face. Additional risks and uncertainties not presently known to us or not presently deemed material by us may also impair our operations and performance. If any of the risks discussed in this Registration Statement were to occur, our business, financial condition, results of operations, net income and prospects, and our ability to satisfy our debt obligations or make distributions to our shareholders at a particular rate, or at all, could be materially and adversely affected (which we refer to collectively as "materially and adversely affecting us" or having "a material adverse effect on us" and comparable phrases), and, as a result, the NAV of our common shares could decline significantly and you could lose all or part of your investment in our common shares.* 

#### Risks Related to Our Business and Operations

#### We have no operating history and there is no assurance that we will be able to successfully achieve our investment objectives.
We are a newly formed entity with no operating history and may not be able to achieve our investment objectives. As of the date of this Registration Statement, we have not originated or acquired any RTLs or other investments. We cannot assure you that the past experiences of the Sponsor, the Adviser or their affiliates will be sufficient to allow us to successfully achieve our investment objectives. As a result, an investment in our common shares may entail more risk than an investment in a REIT with a substantial operating history.

#### There are no assurances that our Private Offering will raise substantial capital, which may materially adversely affect our ability to achieve our investment objectives.
Our Private Offering is being made on a "best efforts" basis, meaning that the dealer manager, if any, and the participating broker-dealers are required only to use their best efforts to sell our shares and have no firm commitment or obligation to purchase any of our shares. As a result, the amount of net proceeds we raise in our Private Offering may be substantially less than the amount we would need to achieve a broader portfolio of investments. If we are unable to raise substantial funds in our Private Offering, we will make fewer investments, resulting in less breadth in terms of the type, number and size of investments that we make. In that case, the likelihood that any single asset's performance would adversely affect our profitability will increase. There is also a greater risk that you will lose money in your investment if we have less breadth in our portfolio. Further, we will have certain fixed operating expenses, including expenses of being a public reporting company, regardless of whether we are able to raise substantial funds. Our inability to raise substantial funds would increase our fixed operating expenses as a percentage of gross income, reducing our net income and limiting our ability to make distributions to shareholders.

#### We face risks associated with the deployment of our capital.
In light of the nature of our continuous Private Offering in relation to our investment strategy and the need to be able to deploy potentially large amounts of capital quickly to capitalize on potential investment opportunities, if we have difficulty identifying and purchasing suitable assets, including, without limitation, RTLs, on attractive terms, there could be a delay between the time we receive net proceeds from the sale of our common shares in our Private Offering or any other private offering and the time we invest the net proceeds. We may also from time to time hold cash pending deployment into investments or have less than our targeted leverage, which cash or shortfall in target leverage may at times be significant, particularly at times when we are receiving high amounts of offering net proceeds, and/or times when there are few attractive investment opportunities. Such cash may be held in an account for the benefit of our shareholders that may be invested in money market accounts or other similar temporary investments, each of which are subject to the management fees.

The business of identifying, structuring and completing attractive investments is highly competitive and involves a high degree of uncertainty. In the event we are unable to find suitable investments, such cash

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may be maintained for longer periods which would be dilutive to overall investment returns. For example, we will continue to pay the Adviser the management fee based on our NAV, which includes cash, money market accounts and other similar temporary investments. This could cause a substantial delay in the time it takes for a shareholder's investment to realize its full potential return and could adversely affect our ability to pay regular distributions of cash flow from operations to our shareholders. It is not anticipated that the temporary investment of such cash into money market accounts or other similar temporary investments pending deployment into investments will generate significant interest, and investors should understand that such low interest payments on the temporarily invested cash may adversely affect overall investment returns and dividend distribution yields. In the event we fail to timely invest the net proceeds from sales of our common shares or do not deploy sufficient capital to meet our targeted leverage, we may be materially and adversely affected.

 ***We are dependent on the Adviser and its affiliates and their key personnel who provide services to us through the Management Agreement, and we may not find a suitable replacement for the Adviser if the Management Agreement is terminated, or for these key personnel if they leave us or otherwise become unavailable to us.***

We have no employees and are completely reliant on the Adviser. Some of our officers are executive officers of the Adviser or its affiliates. The Adviser has significant discretion as to the implementation of our investment and operating policies and strategies. Accordingly, we believe that our success depends to a significant extent upon the efforts, experience, diligence, skill and network of business contacts of the officers and key personnel of the Adviser and its affiliates. The officers and key personnel of the Adviser and its affiliates evaluate, negotiate, originate and monitor our investments; therefore, our success depends on their continued service. The departure of any of the officers or key personnel of the Adviser or its affiliates could have a material adverse effect on us.

The Adviser is not obligated to dedicate any specific personnel (including investment personnel) exclusively to us. In addition, none of our officers or the officers of the Adviser or its affiliates are obligated to dedicate any specific portion of their time to our business. Our officers have significant responsibilities to Other Rithm Accounts and to the Adviser and other Rithm Affiliates, including the Sponsor, that are not specific to an Other Rithm Account. Although we believe these individuals will be able to allocate an adequate amount of their time to the management of our business, they may not always be able to devote significant time to the management of our business. Further, when there are turbulent conditions or distress in the real estate credit markets, the attention of the Adviser's personnel and our executive officers and the resources of the Sponsor will also be required by Rithm Affiliates, including the Sponsor, and Other Rithm Accounts. In such situations, we may not receive the level of support and assistance that we may receive if we were internally managed.

In addition, we offer no assurance that RCM GA Manager LLC will remain the Adviser or that we will continue to have access to the Adviser's or its affiliates' officers and key personnel. If the Management Agreement is terminated and no suitable replacement is found, we may not be able to execute our business plan.

Some of our counterparties and potential counterparties may be unwilling to enter into transactions and other arrangements with us unless RCM GA Manager LLC or another Rithm Affiliate is the Adviser. By way of example, financing counterparties may require, as a condition to providing financing, that a Rithm Affiliate is the Adviser. In addition, our counterparties and potential counterparties willingness to enter into transactions and other arrangements with us may be impacted by the performance of other transactions or arrangements between, or disputes with, Rithm Affiliates, including the Sponsor, or Other Rithm Accounts.

Finally, there is no guarantee (i) that the Adviser will succeed in implementing our investment objectives or strategy or in identifying investments that are in accordance with our investment philosophy or (ii) that historical trends of prior programs sponsored by the Adviser or the Sponsor will continue during the life of our operations.

See "— *Risks Related to our Relationship with the Adviser and the Management Agreement*."

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 ***The Adviser manages our portfolio pursuant to very broad investment guidelines and generally is not required to seek the approval of our Board for each investment, financing or asset allocation decision made by it, which may result in our making riskier investments and, in turn, may materially and adversely affect us.***

Our Board has approved very broad investment guidelines that delegate to the Adviser the authority to execute and implement our investment strategy on our behalf, so long as such investments are consistent with the investment guidelines and our Declaration of Trust. The Adviser will implement on our behalf the strategies and discretionary approaches it believes from time to time may be best suited to prevailing market conditions in furtherance of that purpose, subject to the limitations under our investment guidelines and our Declaration of Trust. There can be no assurance that the Adviser will be successful in implementing any particular strategy or discretionary approach to our investment activities. Our Board will review our investment guidelines and investment portfolio periodically. The prior approval of our Board or a committee of independent trustees will be required only as set forth in our Declaration of Trust (including for transactions with the Adviser and its affiliates) or for the acquisition or disposition of assets that are not in accordance with our investment guidelines. In addition, in conducting periodic reviews, our trustees will rely primarily on information provided to them by the Adviser. Furthermore, transactions entered into on our behalf by the Adviser may be costly, difficult or impossible to unwind when they are subsequently reviewed by our Board.

We expect to initially target a portfolio consisting of 65% to 75% of RTLs and 25% to 35% of NQM loans (in each case, on an equity basis). There can be no assurance that our initial portfolio will contain investments consistent with these allocation targets, and our investments and the characteristics of our portfolio may change over time due to market conditions or other factors. Accordingly, there can be no assurance that our future portfolio will not differ, potentially significantly, from our initial portfolio, which could result in our future portfolio having an allocation of assets that are potentially riskier than, or not as attractive as, the assets contained in our initial portfolio.

 ***Our Board may, from time to time, change our investment strategy, including our related operational policies, without providing advance notice to, or obtaining the consent of, our shareholders.***

Our Board may, from time to time, change our investment strategy, including our related operational policies with respect to investments, indebtedness, capitalization and distributions, at any time without providing advance notice to, or obtaining the consent of, our shareholders, which could result in us making investments that are different from, or that provide a lower yield compared to, the types of investments described in this Registration Statement and in our investment guidelines. We may also determine to pay down certain of our indebtedness and have indebtedness below our target leverage or we may borrow more to provide for additional liquidity causing us to exceed our target leverage. A change in our investment strategy may, among other things, increase our exposure to market fluctuations, default risk and interest rate risk, all of which could have a material adverse effect on us.

 ***There is no public trading market for our shares; therefore, your ability to dispose of your shares will likely be limited to repurchase by us. If you do sell your shares to us, you may receive less than the price you paid.***

There is no current public trading market for our shares, and we do not expect that such a market will ever develop in the future. Therefore, repurchase of shares by us will likely be the only way for you to dispose of your shares. An investment in us should be viewed as an illiquid investment. We expect to continue to repurchase shares at a price equal to the transaction price of the applicable class of shares being repurchased on the date of repurchase (which will generally be equal to our prior month's NAV per share of the applicable class of share), subject to the Early Repurchase Deduction, and not based on the price at which you initially purchased your shares. As a result, you may receive less than the price you paid for your shares when you sell them to us pursuant to our share repurchase plan. See "*Item 11. Description of Registrant's Securities to be Registered — Share Repurchase Plan — Early Repurchase Deduction*" for more information.

#### Our shares purchased in our Private Offering will be subject to certain transfer restrictions.
An investment in our shares in our Private Offering is suitable only for certain sophisticated investors who have no immediate need for liquidity in the investment. Our shares purchased in our Private Offering will be subject to certain transfer restrictions. In particular, our common shares offered thereby may not be transferred except as permitted under our Declaration of Trust. Additionally, our common shares have not

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been registered under the Securities Act, the securities laws of any U.S. state or the securities laws of any other jurisdiction and instead are being offered and sold in reliance on exemptions from the registration requirements of the Securities Act and state and other securities laws. Accordingly, other than pursuant to our share repurchase plan, shares purchased pursuant to our Private Offering may not be resold or transferred except (i) as permitted under the Declaration of Trust and (ii) as permitted under the Securities Act and applicable state and other securities laws pursuant to registration or an exemption therefrom. It is not contemplated that registration under the Securities Act or other securities laws will ever be effected with respect to our common shares sold pursuant to our Private Offering. Therefore, holders of our shares must be prepared to bear the risks of owning such shares for an extended period of time.

 ***Your ability to have your shares repurchased is limited. We may choose to repurchase fewer shares (or none at all) than have been requested to be repurchased, in our discretion at any time, and the amount of shares we may repurchase is subject to caps. Further, our Board may make exceptions to, modify or suspend our share repurchase plan if it deems such action to be in our best interest.***

We may choose to repurchase fewer shares than have been requested in any particular month to be repurchased under our share repurchase plan, or none at all, in our discretion at any time. We may repurchase fewer shares than have been requested to be repurchased due to limited readily available funds because of adverse market conditions beyond our control, the need to maintain liquidity for our operations or because we have determined that investing in investments is a better use of our capital than repurchasing our shares. In addition, the aggregate NAV of total repurchases of our common shares is limited to no more than 2% of our aggregate NAV per month (measured using the aggregate NAV as of the end of the immediately preceding month) and no more than 5% of our aggregate NAV per calendar quarter (measured using the aggregate NAV as of the end of the previous calendar quarter).

During any period in which we believe that we are not a "publicly offered REIT" for U.S. federal income tax purposes, we also may decline any repurchase request by a shareholder if we believe the repurchase (i) would not qualify for sale or exchange treatment under Section 302(b) of the Code or (ii) would otherwise negatively affect any other shareholders or negatively affect our status as a REIT.

Shares purchased by the Adviser or its affiliates or issued to such parties in lieu of cash in respect of our management fee, our performance fee or as other compensation or as reimbursements of expenses or to the Sponsor for any future commitments to us are not subject to these repurchase limitations.

Further, our Board may make exceptions to, modify, or suspend, our share repurchase plan if in its reasonable judgment it deems such action to be in our best interest. Once the share repurchase plan is suspended, our share repurchase plan requires that we consider the recommencement of the plan at least quarterly. Continued suspension of our share repurchase plan would only be permitted under the plan if our Board determines that the continued suspension of the share repurchase plan is in our best interest. Our Board must affirmatively authorize the recommencement of the plan before shareholder requests will be considered again. While our Board may suspend our share repurchase plan as described above, including for extended periods, our Board cannot fully terminate our share repurchase plan absent a liquidity event which results in our shareholders receiving cash or securities listed on a national securities exchange or where otherwise required by law. If we determine to repurchase some but not all of our shares submitted for repurchase during any month, shares submitted for repurchase at the end of the month will be repurchased on a pro rata basis after we have repurchased all common shares for which repurchase has been requested due to death or disability and other limited exceptions. All unsatisfied repurchase requests must be resubmitted after the start of the next month or upon the recommencement of the share repurchase plan, as applicable.

The vast majority of our assets cannot generally be readily liquidated without impacting our ability to realize full value upon their disposition. Therefore, we may not always have a sufficient amount of cash to immediately satisfy repurchase requests. In addition, it is uncertain as to when profits, if any, will be realized. Losses on unsuccessful investments could be realized before gains on successful investments are realized. Should repurchase requests, in our judgment, place an undue burden on our liquidity, adversely affect our operations or risk having an adverse impact on us as a whole, or should we otherwise determine that investing our liquid assets in investments rather than repurchasing our shares is in our best interests as a whole, then we may choose to repurchase fewer shares than have been requested to be repurchased, or none at all. As a result, your ability to have your shares repurchased by us may be limited and at times you may not be able

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 *to liquidate your investment. See "Item 11. Description of Registrant's Securities to be Registered — Share Repurchase Plan" for more information regarding our share repurchase plan.* 

#### Repurchases of common shares issued to the Sponsor, the Adviser, or their affiliates may receive priority over other repurchase requests.
The Adviser may elect to receive our common shares in lieu of cash in respect of management fees or performance fees or certain expense reimbursements. The amount of common shares issued to the Adviser may be significant, particularly during periods in which the value of our investment portfolio appreciates, resulting in higher performance fees. Shares purchased by the Sponsor, the Adviser or their affiliates or issued to such parties in lieu of cash in respect of our management fee, our performance fee or as other compensation or as reimbursements of expenses or to the Sponsor for any future commitments to us are not subject to our share repurchase plan (including the monthly and quarterly volume limitations and the Early Repurchase Deduction), and, therefore, any such repurchases may receive priority over other repurchase requests of our common shares subject to our share repurchase plan for any period.

#### Economic events that may cause our shareholders to request that we repurchase their shares may materially and adversely affect us.
Economic events affecting the U.S. economy, such as the general negative performance of the real estate sector, could cause our shareholders to seek to sell their shares to us pursuant to our share repurchase plan at a time when such events are adversely affecting the performance of our assets. Even if we decide to satisfy all resulting repurchase requests, our cash flow could be materially and adversely affected. In addition, if we determine to sell assets to satisfy repurchase requests, we may not be able to realize the return on such assets that we may have been able to achieve had we sold at a more favorable time, and we could be materially and adversely affected.

 ***The amount and source of distributions, if any, we may make to our shareholders is uncertain, and we may be unable to generate sufficient cash flows from our operations to make distributions to our shareholders at any time in the future.***

We have not established a minimum distribution payment level, and our ability to make distributions to our shareholders may be materially and adversely affected by a number of factors, including, but not limited to, the risk factors described in this Registration Statement. Because we currently have no investments, we may not generate sufficient income to make distributions to our shareholders. Our Board (or a committee of our Board) will make determinations regarding distributions based upon, among other factors, our financial performance (which in a large part will depend on our borrowers' ability to continue to pay principal and interest payments to us under the terms of our loans), debt service obligations, debt covenants, REIT qualification and tax requirements and capital expenditure requirements. Among the factors that could impair our ability to make distributions to our shareholders are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the limited size of our portfolio during the Ramp-Up Period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our inability to invest the net proceeds from sales of our common shares on a timely basis in income-producing investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our inability to realize attractive risk-adjusted returns on our investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • high levels of expenses or reduced revenues that reduce our cash flow or non-cash earnings; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • defaults in our investment portfolio or decreases in the value of our investments.

As a result, we may not be able to make distributions to our shareholders at any time in the future, and the level of any distributions, if any, we do make to our shareholders is unknown, may not increase or even be maintained over time, any of which could materially and adversely affect the value of your investment.

 ***We may fund any distributions from sources other than cash flow from operations, including, without limitation, the sale of or repayment under our assets, borrowings or offering proceeds, and we have no limits on the amounts we may pay from such sources.***

We may not generate sufficient cash flow from operations to fully fund distributions to shareholders, particularly during the Ramp-Up Period. Therefore, particularly during the Ramp-Up Period, we may fund

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distributions to our shareholders from sources other than cash flow from operations, including, without limitation, the sale of or repayment under our assets, borrowings or offering proceeds, and we have no limits on the amounts we may pay from such sources. The extent to which we fund distributions from sources other than cash flow from operations will depend on various factors, including, but not limited to, the level of participation in our distribution reinvestment plan, the extent to which the Adviser elects to receive its management fee or performance fee in our common shares (in lieu of cash), how quickly we invest the proceeds from our Private Offering and any future offering and the performance of our investments, including our real estate debt portfolio. Funding distributions from borrowings, offering net proceeds (including from sales of our common shares to the Adviser or its affiliates) and the sale of or repayments under our investments will result in us having less funds available to originate or acquire RTLs or other assets. As a result, the return you realize on your investment may be reduced. Doing so may also negatively impact our ability to generate cash flows. Likewise, funding distributions from the sale of additional common shares (or other securities convertible into our common shares) will dilute your interest in us on a percentage basis and may impact the value of your investment especially if we sell these securities at prices less than the price you paid for your common shares. We may be required to continue to fund distributions from a combination of some of these sources if our investments fail to perform, if expenses are greater than our revenues or due to numerous other factors. We cannot predict when, if ever, distribution payments sourced from borrowings and from offering net proceeds may occur, and an extended period of such payments would likely be unsustainable. We have not established a limit on the amount of our distributions that may be funded from any of these sources.

To the extent we borrow funds to pay distributions, we would incur borrowing costs (including interest) and these borrowings would require a future repayment. The use of these sources for distributions and the ultimate repayment of any liabilities incurred could adversely impact our ability to pay distributions in future periods, decrease our NAV, decrease the amount of cash we have available for operations and new investments and materially adversely impact the value of your investment.

We may also defer operating expenses or pay expenses (including management fees or performance fees payable to the Adviser) with our common shares to preserve cash flow for the payment of distributions. The ultimate repayment of these deferred expenses could materially and adversely affect us and reduce the future return on your investment. We may repurchase common shares from the Adviser shortly after issuing such common shares as compensation or reimbursement for certain expenses. The payment of expenses in our common shares will dilute your ownership interest in us. There is no guarantee any of our operating expenses will be deferred and the Adviser is under no obligation to receive fees or distributions in our common shares and may elect to receive such amounts in cash.

 ***Purchases and repurchases of our common shares will not be made based on the current NAV per share as of the date of the purchase or repurchase.***

Generally, our offering price per common share and the price at which we make repurchases of our common shares will be the NAV per share of the applicable class as of the last calendar day of the prior month, except that shares tendered for repurchase within the first 12 months of issuance will be subject to an Early Repurchase Deduction. The NAV per share, if calculated as of the date on which an investor makes its subscription request or repurchase request, may be significantly different than the transaction price an investor pays or the repurchase price it receives. Certain of our investments or liabilities may be subject to high levels of volatility from time to time and could change in value significantly between the end of the prior month as of which our NAV is determined and the date that an investor acquires or repurchases our common shares; however, the prior month's NAV per share will generally continue to be used as the transaction price per share and repurchase price per share. Given that we initially expect to invest primarily in RTLs, which have a shorter duration than certain other asset types, such changes in value could be more pronounced. In exceptional circumstances, we may, in our sole discretion, but are not obligated to, offer and repurchase common shares at a different price that we believe reflects the NAV per share of such shares more appropriately than the prior month's NAV per share, including by updating a previously available offering price, in cases where we believe there has been a material change (positive or negative) to our NAV per share since the end of the prior month and we believe an updated price is appropriate. In such exceptional cases, the transaction price and the repurchase price will not equal our NAV per share as of any time.

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 ***Valuations of our investments may reflect estimates of fair value and may not necessarily correspond to realizable value, which could adversely affect the value of your investment.***

The Adviser will oversee the calculation of our NAV. On a monthly basis, the Adviser, through its valuation committee for the valuation of our assets, will perform a valuation of our assets, generally with the assistance of the Independent Valuation Advisor. However, on at least a monthly basis, the Independent Valuation Advisor generally will value each of our loan and property assets (except in certain limited circumstances), and the Adviser will use these valuations for such assets in determining NAV. The Independent Valuation Advisor will also review and confirm the reasonableness of the Adviser's monthly valuations for assets not valued by the Independent Valuation Advisor that month. We will engage the fund administrator to utilize the Adviser's valuation of our assets for a particular month to calculate the monthly NAV per share for each class of shares. The Adviser will review the fund administrator's calculations. Our Board will periodically receive and review such information about the valuation of our assets and liabilities as it deems necessary to exercise its oversight responsibility.

The Adviser, with the assistance of the Independent Valuation Advisor, will calculate the fair value of our investments based on factors it considers relevant, such as the Independent Valuation Advisor's valuations, data obtained from the Adviser's experience in the market, the most recent values provided by third-party independent appraisers, pricing services or brokers, where applicable, and input from real estate brokerage firms and/or real estate debt consulting professionals. The Adviser may retain additional third-parties to assist with our valuations of certain investments. Because these fair value calculations will involve significant professional judgment in the application of both observable and unobservable attributes, the calculated fair value of assets may differ from their actual realizable value or future fair value. While we believe these NAV calculation methodologies are consistent with standard industry practices, there is no rule or regulation that requires we calculate NAV in a certain way. As a result, other REITs may use different methodologies or assumptions to determine NAV. In addition, NAV is not a measure used under GAAP and the valuations of and certain adjustments made to our assets and liabilities used in the determination of NAV will differ from GAAP. Shareholders should not consider NAV to be equivalent to shareholders' equity or any other GAAP measure.

Within the parameters of our valuation guidelines, the valuation methodologies used to value our investments will involve subjective judgments and projections and may not be accurate. Valuation methodologies will also involve assumptions and opinions about future events, which may or may not turn out to be correct. Ultimate realization of the value of an asset depends to a great extent on economic, market and other conditions beyond our control and the control of the Adviser and our Independent Valuation Advisor. Further, valuations do not necessarily represent the price at which an asset would sell, since market prices of assets can only be determined by negotiation between a willing buyer and seller. As such, the estimated fair value of an asset may not reflect the price at which the asset could be sold in the market, and the difference between the estimated fair value and the ultimate sales price could be material. In addition, accurate valuations are more difficult with respect to illiquid assets and/or during times of low transaction volume because there are fewer market transactions that can be considered in the context of the valuation analysis. However, there will be no retroactive adjustment in the valuation of such assets, the offering price of our common shares, the price we paid to repurchase our common shares or NAV-based fees we paid to the Adviser and the dealer manager, if applicable, to the extent such valuations prove to not accurately reflect the realizable value of our assets. Because the price an investor will pay for our common shares in our continuous Private Offering, and the price at which an investor's shares may be repurchased by us pursuant to our share repurchase plan are generally based on our prior month's NAV per share, an investor may pay more than realizable value or receive less than realizable value for its investment.

#### The NAV per share that we publish may not necessarily reflect changes in our NAV that are not immediately quantifiable.
From time to time, we may experience events with respect to our investments that may have a material impact on our NAV. For example, it may be difficult to reflect fully and accurately rapidly changing market conditions or material events that may impact the value of our investments or to obtain quickly complete information regarding such events. The NAV per share of each class of our common shares may not reflect such extraordinary events to the extent that their financial impact is not immediately quantifiable. As a

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result, the NAV per share of each class, as determined monthly, after the announcement of a material event may differ significantly from our actual NAV per share for such class until such time as the financial impact is quantified and our NAV is appropriately adjusted in a subsequent month and in accordance with our valuation guidelines. Depending on the circumstance, the resulting potential disparity in our NAV may be in favor or to the detriment of either shareholders who repurchase their shares, or shareholders who buy new shares, or existing shareholders, depending on whether our published NAV per share for such class is overstated or understated.

#### NAV calculations are not governed by governmental or independent securities, financial or accounting rules or standards.
The methods for calculating our NAV, including the components used in calculating our NAV, are not prescribed by rules of the SEC or any other regulatory agency. Further, there are no accounting rules or standards that prescribe which components should be used in calculating NAV, and our NAV is not audited by our independent registered public accounting firm. We calculate and publish NAV solely for purposes of establishing the price at which we sell and repurchase our common shares and to calculate certain fees and distributions payable to the Adviser, its affiliates and the dealer manager, if applicable, and you should not view our NAV as a measure of our historical or future financial condition or performance. The components and methodology used in calculating our NAV may differ from those used by other companies now or in the future.

In addition, calculations of our NAV, to the extent that they incorporate valuations of our assets and liabilities, are not prepared in accordance with GAAP. These valuations may differ from liquidation values that could be realized in the event that we were forced to sell assets.

Additionally, errors may occur in calculating our NAV, which could impact the price at which we sell and repurchase our common shares and the amount of the Adviser's management fee. The Adviser has implemented certain policies and procedures to address such errors in NAV calculations. If such errors were to occur, the Adviser, depending on the circumstances surrounding each error and the extent of any impact the error has on the price at which our common shares were sold or repurchased or on the amount of the Adviser's management fee, may determine in its sole discretion to take certain corrective actions in response to such errors, including, subject to the Adviser's policies and procedures, making adjustments to prior NAV calculations. You should carefully review the disclosure of our valuation policies and how NAV will be calculated under "*Item 9. Market Price of and Dividends on the Registrant's Common Equity and Related Stockholder Matters — Net Asset Value Calculation and Valuation Guidelines*."

#### Adverse economic conditions, including an economic slowdown or downturn, could have a material adverse effect on us.
Our business could be significantly affected by global and national economic and market conditions generally and by the local economic conditions where the properties securing our investments are concentrated. A return to a recessionary period, elevated inflation, adverse trends in employment levels, geopolitical instability or conflicts, trade or supply chain disruptions, economic or other sanctions or a sustained capital market correction could have an adverse effect on our business, including on the value of our investments and collateral securing our financing, if any, which can impact our liquidity. Any deterioration of the real estate market as a result of these conditions may cause us to experience losses related to our assets and to sell assets at a loss.

The length and severity of any economic slowdown or downturn cannot be predicted. As a result, we may see increases in bankruptcies and defaults may negatively impact our borrowers' ability to service their debt. The occurrence of any of the foregoing could have a material adverse effect on us.

#### Global economic, political and market conditions may materially and adversely affect us.
The current worldwide financial markets situation, as well as various social and political tensions in the United States and around the world (including wars and other forms of conflict, terrorist acts, security operations and catastrophic events such as fires, floods, earthquakes, tornadoes, hurricanes and global health epidemics) may contribute to increased market volatility, may have long-term effects on the United States

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and worldwide financial markets and may cause economic uncertainties or deterioration in the United States and worldwide. For example, conflicts, and resulting market volatility, could materially and adversely affect us and have in the past led, and could lead in the future, to the United States and other countries imposing sanctions or taking other restrictive actions. In addition, other government actions, including sanctions, export controls, tariffs (including recent tariffs imposed and threatened by the United States) and trade wars could have a material adverse effect on us and could cause the NAV of our common shares to decline. We will continue to monitor developments and seek to manage our investments in a manner consistent with achieving our investment objectives, but there can be no assurance that we will be successful in doing so.

In addition, the current regulatory environment in the United States and in other countries may be impacted by future legislative developments. The outcome of elections creates uncertainty with respect to legal, tax and regulatory regimes in which we and our investments, as well as the Adviser and its affiliates, will operate. Any significant changes in, among other things, economic policy (including with respect to interest rates and foreign trade (including tariffs)), the regulation of the investment management industry, tax law, immigration policy or government entitlement programs could have a material and adverse impact on us and our investments.

#### Uncertainty with respect to the financial stability of the United States could have a significant material adverse effect on us.
Our investment strategy depends on the real estate industry generally, which in turn depends on broad economic conditions in the United States and, to the extent our investments are secured by real estate located outside of the United States, elsewhere. Recently, concerns over global economic conditions, energy and commodity prices, geopolitical issues and military conflicts, inflation, Federal Reserve short term rate decisions, actual or perceived instability in the U.S. banking system, foreign exchange rates, the availability and cost of credit, the sovereign debt crisis, the U.S. mortgage market and a potentially weakening real estate market in the United States have contributed to increased economic uncertainty and diminished expectations for the global economy. These factors, combined with volatile prices of oil and the potential for declining business and consumer confidence, may precipitate an economic slowdown, as well as cause extreme volatility in security prices. Global economic and political headwinds, along with global market instability and the risk of maturing debt that may have difficulties being refinanced, may continue to cause periodic volatility in the real estate market for some time. Adverse conditions in the real estate industry negatively impact our returns by, among other factors, the tightening of the credit markets, decline in the value of underlying real estate assets, and continuing credit and liquidity concerns, among other potential risks.

#### Inflation risks may have an adverse impact on our returns.
Inflation in the United States has accelerated in the past and may continue to do so in the future. It remains uncertain whether substantial inflation in the United States will be sustained over an extended period of time or have a significant effect on the United States or other economies. Inflation and rapid fluctuations in inflation rates have had in the past, any may in the future have, negative effects on the economies and financial markets, which may in turn affect the markets in which we invest. For example, wages and prices of inputs increase during periods of inflation, which negatively impact returns on investments. Governmental efforts to curb inflation often have negative effects on the level of economic activity. Depending on the inflation assumptions relating to the cash flows anticipated from the assets underlying our investments, as well as the manner in which asset revenue is determined with respect to such asset, returns from assets may vary as a result of changes in the rate of inflation. There can be no assurance that inflation will not become a serious problem in the future and have an adverse impact on our returns.

Moreover, as inflation increases, the real value of our investments and distributions therefrom can decline. If we are unable to increase the revenue and profits of our investments at times of higher inflation, we may not be able to pay out higher distributions to shareholders to compensate for the relative decrease in the value of money, thereby affecting the expected return of investors.

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#### We are subject to risks investing outside of the United States, including business uncertainties, currency exchange risks and political, social and economic uncertainty.
We may invest a portion of our net assets in assets located, or secured by properties located, outside the United States. In addition to business uncertainties and currency exchange risks, such investments may be affected by political, social and economic uncertainty affecting a country or region. Many foreign markets are not as developed or as efficient as those in the United States, and as a result, liquidity may be reduced and price volatility may be higher. The legal and regulatory environment may also be different, particularly as to bankruptcy and reorganization. Financial accounting and auditing standards and practices may differ, and there may be less publicly available information in respect of such companies. For a company that keeps accounting records in local currency, inflation accounting rules in some countries require, for both tax and accounting purposes, that certain assets and liabilities be restated on the company's balance sheet in order to express items in terms of a currency of constant purchasing power. As a result, financial data may be materially affected by restatements for inflation and may not accurately reflect the real condition of real estate and companies. Accordingly, our ability to conduct due diligence in connection with an investment and to monitor the investment may be adversely affected by these factors.

We may be subject to additional risks which include possible adverse political and economic developments, possible seizure or nationalization of foreign deposits and possible adoption of governmental restrictions which might adversely affect payment to investors located outside the country of the obligor, whether from currency blockage or otherwise. Furthermore, some of the investments and/or the income they generate may be subject to taxes levied by governments which have the effect of increasing the cost of such investments and reducing the realized gain or increasing the realized loss on such investments at the time of sale. Income received by us from sources within some countries may be reduced by withholding and other taxes imposed by such countries. Any such taxes paid by us will reduce our net income or return from such investments and our ability to make distributions. While we may take these factors into consideration in making our investment decisions, no assurance can be given that we will be able to fully avoid these risks.

#### We depend on the Adviser to develop appropriate systems and procedures to control operational risk.
Operational risks arising from mistakes made in the confirmation or settlement of transactions, from transactions not being properly booked, evaluated or accounted for or other similar disruption in our operations may cause us to suffer financial losses, the disruption of our business, liability to third parties, regulatory intervention or damage to our reputation. We depend on the Adviser and its affiliates to develop the appropriate systems and procedures to control operational risk. We rely heavily on the Adviser's financial, accounting and other data processing systems. The ability of our systems to accommodate transactions could also constrain our ability to properly manage our portfolio. Generally, the Adviser will not be liable for losses incurred due to the occurrence of any such errors. The personnel of the Adviser are engaged in other business activities, which could distract them, divert their time and attention such that they could no longer dedicate a significant portion of their time to our businesses or otherwise slow our rate of investment. Any failure to manage our business and our future growth effectively could have a material adverse effect on us.

#### Our business and operations could suffer in the event of system failures or cybersecurity breaches.
Despite system redundancy, the implementation of security measures and the existence of a disaster recovery plan for our internal and hosted information technology systems, our systems are vulnerable to damages from any number of sources, including energy blackouts, natural disasters, terrorism, war, telecommunication failures and cybersecurity attacks, such as computer viruses, malware or unauthorized access. Any system failure or accident that causes interruptions in our operations could result in a material disruption to our business. Even the most well protected information, networks, systems and facilities remain potentially vulnerable because the techniques used in such attempted security breaches evolve and generally are not recognized until launched against a target, and in some cases are designed to not be detected and, in fact, may not be detected. We may also incur additional costs to remedy damages caused by such disruptions. Any compromise of our security could result in a violation of applicable privacy and other laws, unauthorized access to information of ours and others, significant legal and financial exposure, damage to our reputation among our borrowers, the tenants occupying the properties owned by our borrowers that

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secure our investments and our investors generally, and loss or misuse of the information and a loss of confidence in our security measures, any of which could harm our business.

Third parties with which the Adviser or its affiliates do business are also sources of cybersecurity or other technological risk. The Adviser and its affiliates outsource certain functions and these relationships allow for the storage and processing of the Adviser's and its affiliates' information, as well as client, counterparty, employee, and borrower information. While the Adviser and its affiliates engage in actions to reduce its exposure resulting from outsourcing, ongoing threats may result in unauthorized access, loss, exposure, destruction, or other cybersecurity incidents that adversely affects the Adviser's or its affiliates' data, resulting in increased costs and other consequences as described above.

#### We could be subject to misconduct and unauthorized conduct from third party providers, which could result in litigation or serious financial harm.
Misconduct by employees of the Adviser or its affiliates or by our third-party service providers could cause us significant losses. Employee misconduct may include binding us to transactions that present unacceptable risks and unauthorized activities or concealing unsuccessful activities (which, in either case, may result in unknown and unmanaged risks or losses). Losses could also result from actions by third-party service providers, including failing to record transactions or improperly performing custodial, administrative and other responsibilities. In addition, employees and third-party service providers may improperly use or disclose confidential information, which could result in litigation or serious financial harm, including limiting our business prospects. There can be no assurance that the measures that we, the Adviser and its affiliates expect to implement to prevent and detect employee misconduct and to select reliable third-party providers will be effective in all cases.

#### Failure to identify and exclude bad actors could disqualify us from relying on certain rules on which we rely.
We are offering common shares in our Private Offering, not registered under the Securities Act, or any other securities laws, including state securities or blue sky laws. Our common shares are offered in reliance upon the exemption from registration thereunder provided by Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D promulgated under the Securities Act. If certain persons and entities involved with the offering of our common shares, including any shareholder holding (20%) or more of a fund's outstanding voting equity securities, are or have been subject to certain criminal convictions, SEC disciplinary orders, court injunctions or similar adverse events (collectively, "bad act determinations"), then in certain instances we may be disqualified from relying upon Rule 506. There is no assurance that efforts to exercise reasonable care to identify and exclude bad actors from participating in the offering will be deemed to be sufficient to comply with these requirements. If we were disqualified from relying upon the exemption from registration provided in Rule 506, there may not be another exemption from registration available under the Securities Act and, consequently, we may not have an exemption from registration under any state securities or blue sky laws. If these exemptions from registration were unavailable, then we may be subject to, and incur significant costs related to, enforcement actions and rescission rights may be available to the shareholders, which if exercised, may require us to liquidate assets earlier and on less advantageous terms than were anticipated at underwriting and/or may cause us to have a more limited amount of capital available for investment, impairing our ability to assemble, manage, retain and harvest a complete and balanced portfolio.

#### Risks Related to Our Structure and Organization

#### Our shareholders generally have limited voting rights.
As permitted by Maryland law, our Declaration of Trust provides limited voting rights to our shareholders. Under our Declaration of Trust, subject to certain exceptions, shareholders generally are only entitled to vote at a duly held meeting at which a quorum is present on (i) amendments to our Declaration of Trust that would materially and adversely affect the contract rights of outstanding shares subject to certain exceptions provided in our Declaration of Trust, (ii) a merger, consolidation, conversion or transfer of all or substantially all of our assets on which shareholders are entitled to vote as provided in our Declaration of Trust (but excluding a Conversion Event (as defined below), an internal restructuring transaction (including

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the conversion of us into another type of legal entity), and any transaction that could be taken by a Maryland corporation without approval of its shareholders pursuant to the Maryland General Corporation Law), (iii) removal of a trustee for "cause" and the election of a successor trustee to the extent provided in our Declaration of Trust, (iv) in the event that there are no trustees, the election of trustees and (v) such other matters that our Board determines to submit to our shareholders for approval or ratification.

All other matters are subject to the discretion of our Board. Thus, except as set forth above or in any class or series of our shares and subject to the restrictions on transfer and ownership of our shares contained in our Declaration of Trust, holders of common shares do not have the right to vote on any matter.

Under our Declaration of Trust, our Board may determine, in its sole discretion and without any action by our shareholders, that we will (i) conduct a public offering as a non-listed REIT subject to the Statement of Policy Regarding Real Estate Investment Trusts published by the North American Securities Administrators Association on May 7, 2007, as amended from time to time, or (ii) undertake a listing of any or all of our common shares on a national securities exchange registered with the SEC under the Exchange Act or any other internationally recognized securities exchange determined by our Board. In connection with such determination and the conduct of such public offering or listing, as applicable, our Board may cause us to (i) merge with or into or convert into another entity, (ii) consolidate with one or more entities into a new entity, (iii) transfer all or substantially all of our assets to another entity or (iv) amend our Declaration of Trust and our bylaws (in each case, a "**Conversion Event**"), in each case without any action or approval by our shareholders.

 ***Our Declaration of Trust does not provide for the annual election of trustees by our shareholders and contains provisions that could make removal of our trustees difficult, which could make it difficult for our shareholders to effect changes to our management.***

Under the Maryland Statutory Trust Act (the "**MSTA**") and our Declaration of Trust, we are not required to, and do not anticipate, holding an annual meeting or any other regularly scheduled meeting of shareholders. Rather, we anticipate that meetings of shareholders will only be called as special meetings, if, as and when necessary. Our Declaration of Trust provides that shareholders are only entitled to elect trustees upon the removal of a trustee by shareholders or in the event there are no trustees. Any election by our shareholders or our Board to replace a removed trustee must comply with the terms of our Declaration of Trust and bylaws providing for, as applicable, the Adviser's exclusive right to designate one or more trustees to serve on our Board, including without limitation as a successor trustee to a removed trustee, and the qualifications applicable to an independent trustee. A trustee may be removed by our shareholders only for "cause" (as defined in our Declaration of Trust), and then only upon the affirmative vote of shareholders entitled to cast at least two-thirds of the votes entitled to be cast on such matter in accordance with our Declaration of Trust.

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These requirements make it more difficult to change our management by removing and replacing trustees and may prevent a change in our control. In addition, in the event that "cause" exists to remove a trustee but shareholders are unable to remove such trustee because of the inability to obtain the affirmative vote of shareholders entitled to cast two-thirds of the votes entitled to be cast on the matter, we could be materially and adversely affected.

 ***Our Declaration of Trust permits our Board to authorize us to issue preferred shares on terms that may be senior to the rights of the holders of our current common shares or discourage a third party from acquiring us.***

Our Board is permitted, subject to certain restrictions set forth in our Declaration of Trust, to authorize the issuance of preferred shares without shareholder approval. Further, our Board may classify or reclassify any unissued common shares or preferred shares from time to time into one or more classes or series by setting the preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications or terms or conditions of redemption of any new class or series of common shares or preferred shares. Thus, our Board could authorize us to issue preferred shares with terms and conditions that could be senior to the rights of the holders of our common shares or have the effect of delaying, deferring or preventing a change in control of us, including an extraordinary transaction such as a merger, tender offer or sale of all or substantially all of our assets, that might provide a premium price for holders of our common shares.

#### Your interest in us will be diluted if we issue additional shares.
Holders of our common shares will not have preemptive rights to any shares we issue in the future. Our Declaration of Trust will authorize us to issue (i) an unlimited number of common shares, including (a) unlimited common shares classified as Class S shares, (b) unlimited common shares classified as Class T shares, (c) unlimited common shares classified as Class D shares, (d) unlimited common shares classified as Class I shares, (e) unlimited common shares classified as Class J shares, (f) unlimited common shares classified as Class J-2 shares and (g) unlimited common shares classified as Class E shares and (ii) an unlimited number of shares classified as preferred shares.

Our Board may elect, at any time, to, among other things: (i) sell additional common shares (of existing classes or such classes as may be designated by our Board from time to time) in our Private Offering or any future offering; (ii) issue common shares upon the exercise of the options we may grant to our independent trustees or future employees; (iii) issue common shares to the Adviser or its affiliates in payment of an outstanding obligation to pay fees for services rendered to us or for the management fee or performance fee or expense reimbursements; or (iv) issue equity incentive compensation to certain employees of Affiliated Service Providers or to third parties as satisfaction of obligations under incentive compensation arrangements. To the extent we issue additional common shares in the future, a shareholder's percentage ownership interest in us will be diluted. Because of these and other reasons, our shareholders may experience substantial dilution in their percentage ownership of our common shares.

 ***Maryland law and our Declaration of Trust limit our rights and the rights of our shareholders to recover claims against Covered Persons (as defined below), which could reduce your and our recovery against them if they cause us to incur losses.***

Maryland law provides that a trustee will not have any liability as a trustee so long as he or she performs his or her duties in accordance with the applicable standard of conduct. In addition, our Declaration of Trust limits the personal liability of our trustees, our officers, the Sponsor, the Adviser and each equityholder, member, manager, director, officer, employee or agent of any trustee or our Board (each a "**Covered Person**") for monetary damages to the maximum extent permitted by Maryland law. Maryland law and our Declaration of Trust also provide that we shall indemnify each Covered Person, including any individual or entity who, while serving as the Covered Person and, at our request, serves or has served any other enterprise in any management or agency capacity, against any claim or liability to which the Covered Person may become subject by reason of such status, except for liability for the Covered Person's gross negligence or intentional misconduct. In addition, our Declaration of Trust provides that we shall, without requiring a preliminary determination of the ultimate entitlement to indemnification, pay or reimburse, in advance of final disposition of a proceeding, reasonable expenses incurred by a present or former Covered

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Person or shareholder made a party to or witness in a proceeding by reason of such status, provided that in the case of a Covered Person, we shall have received (i) a written affirmation by the Covered Person of the Covered Person's good faith belief that the Covered Person has met the applicable standard of conduct necessary for indemnification and (ii) a written undertaking by or on behalf of the Covered Person to repay the amount paid or reimbursed by us if it is ultimately determined that the applicable standard of conduct was not met. We are not required to indemnify or advance funds to any person entitled to indemnification under our Declaration of Trust (a) with respect to any action initiated or brought voluntarily by such indemnified person (and not by way of defense) unless (1) approved or authorized by our Board or (2) incurred to establish or enforce such person's right to indemnification under our Declaration of Trust, or (b) in connection with any claim with respect to which such person is found to be liable to us. As a result, you and we may have more limited rights against Covered Persons than might otherwise exist under common law, which could reduce your and our recovery from these persons if they act in a manner that causes us to incur losses.

 ***We will not be required to comply with certain reporting requirements, including those relating to auditor's attestation reports on the effectiveness of our system of internal control over financial reporting, accounting standards and disclosure about our executive compensation, that apply to other public companies.***

The JOBS Act contains provisions that, among other things, relax certain reporting requirements for emerging growth companies, including certain requirements relating to accounting standards and compensation disclosure. We are classified as an emerging growth company. For as long as we are an emerging growth company, which may be up to five full fiscal years, unlike other public companies, we will not be required to (1) provide an auditor's attestation report on the effectiveness of our system of internal control over financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act, (2) comply with any new or revised financial accounting standards applicable to public companies until such standards are also applicable to private companies under Section 102(b)(1) of the JOBS Act, (3) comply with the requirement in Public Company Accounting Oversight Board ("**PCAOB**") Auditing Standard 3101, The Auditor's Report on an Audit of Financial Statements When the Auditor Expresses an Unqualified Opinion, to communicate critical audit matters in the auditor's report, (4) comply with any new audit rules adopted by the PCAOB after April 5, 2012 unless the SEC determines otherwise, (5) provide certain disclosure regarding executive compensation required of larger public companies or (6) hold shareholder advisory votes on executive compensation.

Once we are no longer an emerging growth company, so long as our shares are not traded on a securities exchange, we will be deemed to be a "non-accelerated filer" under the Exchange Act, and as a non-accelerated filer, we will be exempt from compliance with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act. In addition, so long as we are externally managed by the Adviser and we do not directly compensate our executive officers, or reimburse the Adviser for salaries, bonuses, benefits and severance payments for persons who also serve as one of our executive officers, we do not have any executive compensation, making the exemptions listed in (5) and (6) above generally inapplicable.

We cannot predict if investors will find our shares less attractive because we choose to rely on any of the exemptions discussed above.

As noted above, under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards that have different effective dates for public and private companies until such time as those standards apply to private companies.

Additionally, deficiencies in the effectiveness and accuracy of information systems or internal controls that the Company maintains may result in a material loss. This risk arises from, inter alia, human error, system failures, inadequate procedures or internal management controls. Operational risk such as human error or system failures may lead to incorrect or inaccurate valuations of the investments and may impact the ability of the Adviser to make such calculations or valuations on relevant determination dates. Where there are deficiencies in the effectiveness and accuracy of information systems or system failures, this may lead to a delay in providing investors with required reporting information.

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#### Our shareholders' investment return may be reduced if we register as an investment company under the Investment Company Act.
 *We intend to conduct our operations so that neither we nor our subsidiaries are investment companies under the Investment Company Act. However, there can be no assurance that we and our subsidiaries will be able to successfully avoid operating as an investment company. See "Item 1. Business — Operating and Regulatory Structure — Investment Company Act Considerations."* 

A change in the value of any of our assets could negatively affect our ability to maintain our exemption from regulation under the Investment Company Act. To maintain compliance with the applicable exemption under the Investment Company Act, we may be unable to sell assets we would otherwise want to sell and may need to sell assets we would otherwise wish to retain. In addition, we may have to acquire additional assets that we might not otherwise have acquired or may have to forego opportunities to acquire assets that we would otherwise want to acquire and would be important to our investment strategy.

 ***Failure to obtain and maintain an exemption from being regulated as a commodity pool operator could subject us to additional regulation and compliance requirements that could materially and adversely affect us.***

Registration with the U.S. Commodity Futures Trading Commission (the "**CFTC**") as a "commodity pool operator" or any change in our operations necessary to maintain our ability to rely upon an applicable exemption from being regulated as a commodity pool operator could adversely affect our ability to implement our investment program, conduct our operations or achieve our objectives and subject us to certain additional costs, expenses and administrative burdens. Furthermore, any determination by us to cease or to limit investing in interests that may be treated as "commodity interests" to comply with the regulations of the CFTC may have a material adverse effect on our ability to implement our investment objectives and to hedge risks associated with our operations.

 ***Our bylaws designate the Circuit Court for Baltimore City, Maryland or, if such state court does not have jurisdiction, the U.S. District Court for the District of Maryland, Northern Division, as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by our shareholders, which could limit our shareholders' ability to bring a claim in a judicial forum that the shareholders believe is a more favorable judicial forum for disputes with us or our trustees, officers or other employees.***

 ***Our conflict of interest policy may not be successful in eliminating the influence of future conflicts of interest that may arise between us and our trustees, officers and employees.***

We have adopted a policy providing that any transaction in which our trustees, officers or employees have a material direct or indirect pecuniary interest in must be approved by a majority of our independent trustees. Other than this policy, however, we may not adopt additional formal procedures for the review and approval of conflict of interest transactions generally. As such, our policies and procedures may not be successful in eliminating the influence of conflicts of interest.

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#### The ownership limits that apply to REITs, as prescribed by the Code and by our Declaration of Trust, may restrict our business combination opportunities.
Our Declaration of Trust, with certain exceptions, authorizes our Board to take such actions as are necessary and desirable to preserve our qualification as a REIT. Unless our Board otherwise determines that an exemption may be granted, no person (including any entity or group) may own, directly or indirectly through application of constructive ownership rules, in excess of 9.8% in value or number of shares, whichever is more restrictive, of our outstanding common shares or 9.8% in value or number of shares, whichever is more restrictive, of our outstanding shares of all classes or series. These restrictions may have the effect of delaying, deferring or preventing a change in control of us, or an extraordinary transaction (such as a merger, tender offer or transfer of all or substantially all of our assets) that might provide a premium to the purchase price of our shares for our shareholders.

 ***If the Adviser or an affiliate thereof forms funds that invest with us in an Aggregator Entity, we may be subject to certain additional risks.***

The Adviser or an affiliate thereof may form funds that invest with us in an Aggregator Entity. This structure, in particular the existence of multiple entities (including us) that invest with us in an Aggregator Entity, could, under some circumstances, cause the Adviser to manage the Aggregator Entity's investment portfolio in ways that are less advantageous to us than if we pursued our investment activities independently. For example, investments might become available that are attractive to us but that the Aggregator Entity foregoes because they could cause a non-U.S. fund that invests in the Aggregator Entity to give rise to withholding taxes or other tax burdens specific to such fund. The Aggregator Entity also may forego making certain investments that we may otherwise have considered making, or do so through a TRS that is subject to U.S. federal (and applicable state and local) corporate income tax even though we may not otherwise have needed to use a TRS for such investments, to avoid causing a non-U.S. fund that invests in the Aggregator Entity to be engaged in a U.S. trade or business. Additionally, if the Aggregator Entity were engaged in a U.S. trade or business (e.g., from the direct sale of a USRPI rather than through a TRS), the Aggregator Entity would be required to withhold certain taxes on such non-U.S. fund's share of any income and gain considered to be effectively connected with the U.S. trade or business. If the Aggregator Entity were to fail so to withhold (e.g., because it took the position that its activities did not constitute conducting a U.S. trade or business, and the IRS prevailed in a challenge to that position), the Aggregator Entity could be liable for such withholding taxes and interest and penalties, which could be borne by us and reduce the amount of distributions that we make to our shareholders, including shareholders that did not hold shares in us at the time that the economic gains, if any, from such USRPI sale or other trade or business activity, were distributed.

Furthermore, withdrawals at the Aggregator Entity level, including by funds that invest in the Aggregator Entity (as well as by large investors in such funds), could reduce liquidity at the Aggregator Entity level and leave our shareholders more concentrated in securities held by the Aggregator Entity and/or could cause the Aggregator Entity to sell investments to meet withdrawals when it might not otherwise do so, which could accelerate the realization of taxable income and cause us to make taxable distributions to our shareholders earlier than we otherwise would have. In addition, if a fund withdraws from an Aggregator Entity, we may experience higher pro rata operating expenses, thereby producing lower returns. An Aggregator Entity portfolio may become less diverse due to a withdrawal by a fund, resulting in increased portfolio risk. An Aggregator Entity is a single entity, and creditors of the Aggregator Entity may enforce claims against all assets of the Aggregator Entity.

#### Risks Related to Our Investments Generally

#### Our loans and other investments expose us to risks associated with debt-oriented real estate investments generally.
Our debt and real estate securities generally will be directly or indirectly secured by a lien on real property. The occurrence of a default on a debt investment could result in our acquiring ownership of the property. We do not know whether the values of the properties ultimately securing our debt and loans underlying our securities will remain at the levels existing on the dates of origination of these loans and the dates of origination of the loans ultimately securing our securities, as applicable. In addition, our borrowers

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could fraudulently inflate the values of the underlying properties. If the values of the properties drop or are discovered to have been fraudulently inflated, the lower value of the security and reduction in borrower equity associated with such loans will increase our risk. In this manner, reduced real estate values could impact the values of our debt and security investments, making them subject to the risks typically associated with real estate ownership.

We may be materially and adversely affected by a number of risks generally incident to holding real estate debt, including, without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • natural disasters, such as hurricanes, earthquakes and floods, which we expect to increase in strength and frequency due to climate change;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • acts of war or terrorism, or criminal violence, including the consequences of terrorist attacks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • adverse changes in national and local economic and real estate conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • adverse changes in economic and market conditions related to pandemics and health crises;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • an oversupply of (or a reduction in demand for) space in the areas where particular properties securing our loans are located and the attractiveness of particular properties to prospective tenants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • changes in interest rates and availability of permanent mortgage funds that may render the sale of property difficult or unattractive;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • changes in governmental laws and regulations, fiscal policies and zoning ordinances and the related costs of compliance therewith and the potential for liability under applicable laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • costs of remediation and liabilities associated with environmental conditions affecting properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • reduced demand for office space, including as a result of changes in work habits, including remote or hybrid work schedules which allow work from remote locations other than the employer's office premises;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the potential for uninsured or underinsured property losses; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • periods of high interest rates and tight money supply.

The value of each property or project securing our loans is affected significantly by its ability to generate cash flow and net income, which in turn depends on the amount of rental, sale proceeds or other income that can be generated net of expenses required to be incurred with respect to the property. Many expenses associated with properties (such as operating expenses and capital expenses) cannot be reduced when there is a reduction in income from the properties.

These factors may have a material adverse effect on the ability of our borrowers to pay their loans and the ability of the borrowers on the underlying loans securing our securities to pay their loans, as well as on the value and the return that we can realize from assets we acquire and originate.

 ***Residential mortgage loans and other pools of residential mortgage loans that we may acquire are subject to delinquency, foreclosure and loss, which could result in losses to us.***

We may invest directly in residential mortgage loans and may purchase interests in other pools of residential mortgage loans. Residential mortgage loans are typically secured by single-family residential property and are subject to risks of delinquency and foreclosure and risks of loss. The ability of a borrower to repay a loan secured by a residential property is dependent upon the income or assets of the borrower. A number of factors, including a general economic downturn, natural disasters, environmental disasters, acts of terrorism, government shutdowns, social unrest and civil disturbances, may impair borrowers' abilities to repay their loans. In the event of any default under a mortgage loan we hold directly we will bear the risk of loss of principal to the extent of any deficiency between the value of the collateral (which, for many residential and other real estate properties, has already significantly declined and may decline further in the future) and the principal and accrued interest of the mortgage loan, which could have a material adverse effect on the return on our investments. In the event of the bankruptcy of a mortgage loan borrower, the mortgage loan to such borrower will be deemed to be secured only to the extent of the value of the underlying collateral at the time of bankruptcy (as determined by the bankruptcy court), and the lien securing the

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mortgage loan will be subject to the avoidance powers of the bankruptcy trustee or debtor-in-possession to the extent the lien is unenforceable under state law. Foreclosure of a mortgage loan can be an expensive and lengthy process which could have a substantial negative effect on us.

#### Our success depends on the availability of attractive investment opportunities.
Initially, we expect to target a portfolio consisting of 65% to 75% of RTLs (on an equity basis). Our RTLs may have terms ranging from 10 months to 10 years. As a result, a significant amount of our invested capital will be repaid at loan maturity each year. Our operating results are dependent upon our ability to identify, structure, consummate, leverage, manage and realize attractive returns on new loans and other investments. In general, the availability of attractive investment opportunities and, consequently, our operating results, will be affected by the level and volatility of interest rates, conditions in the financial markets, general economic conditions, the demand for investment opportunities in our target assets and the supply of capital for such investment opportunities. As a result, our asset allocation may change over time as we identify attractive investments. We cannot assure you that we will be successful in identifying and consummating attractive investments or that such investments, once made, will perform as anticipated. See "*— Risks Related to Our Business and Operations — Our Board may, from time to time, change our investment strategy, including our related operational policies, without providing advance notice to, or obtaining the consent of, our shareholders*."

We expect to initially target a portfolio consisting of 65% to 75% of RTLs and 25% to 35% of NQM loans (in each case, on an equity basis). There can be no assurance that our initial portfolio will contain investments consistent with these allocation targets, and our investments and the characteristics of our portfolio may change over time due to market conditions or other factors. Accordingly, there can be no assurance that our future portfolio will not differ, potentially significantly, from our initial portfolio, which could result in our future portfolio having an allocation of assets that are potentially riskier than, or not as attractive as, the assets contained in our initial portfolio.

 ***We operate in a highly competitive market for investment opportunities and competition may limit our ability to originate and/or acquire desirable investments in our target assets and could also affect the pricing of these assets.***

We operate in a highly competitive market for lending and investment opportunities. Our profitability depends, in large part, on our ability to originate and/or acquire our target assets at attractive prices. In originating or acquiring our target assets, we compete with a variety of institutional investors, including other REITs, commercial and investment banks, specialty finance companies, public and private funds, commercial finance and insurance companies and other financial institutions. Many of our competitors are substantially larger and have considerably greater financial, technical, marketing and other resources than we do. Several other REITs have recently raised significant amounts of capital, and may have investment objectives that overlap with ours, which may create additional competition for investment opportunities. Some competitors may have a lower cost of funds and access to funding sources that may not be available to us, such as funding from the U.S. government, if we are not eligible to participate in programs established by the U.S. government. Many of our competitors are not subject to the operating constraints associated with REIT tax compliance or maintenance of an exception from the definition of an investment company under the Investment Company Act. In addition, some of our competitors may have higher risk tolerances or different risk assessments, which could allow them to consider a wider variety of investments and establish more relationships than us. Furthermore, competition for originations of and investments in our target assets may lead to decreasing yields, which may further limit our ability to generate desired returns. We cannot assure you that the competitive pressures we face will not have a material adverse effect on our business, financial condition and results of operations. Also, as a result of this competition, desirable investments in our target assets may be limited in the future and we may not be able to take advantage of attractive investment opportunities from time to time, as we can provide no assurance that we will be able to identify and make investments that are consistent with our investment objectives.

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#### Real estate valuation is inherently subjective and uncertain.
The valuation of real estate and therefore the valuation of any underlying security relating to loans made by us is inherently subjective due to, among other factors, the individual nature of each property, its location, the expected future rental revenues from that particular property and the valuation methodology adopted. As a result, the valuations of the real estate assets against which we make loans are subject to a degree of uncertainty and are made on the basis of assumptions and methodologies that may not prove to be accurate, particularly in periods of volatility, low transaction flow or restricted debt availability in the commercial or residential real estate markets.

#### The valuation of our investments may not be certain or transparent as a result of the highly volatile environments we operate in.
Investing in highly volatile environments presents certain inherent risks, including reduced market liquidity, reduced price transparency and less certainty in core assumptions in respect of a particular investment or an investment strategy as a whole. While such investment environments provide the opportunity for significant returns, they also present significant risks, many of which cannot be predicted, managed or hedged against. If we fail to identify or adequately evaluate potential risks or changes, we may invest at a valuation that is not commensurate with the risk profile of a particular investment or where we would otherwise not invest were more accurate information available, resulting in reduced returns or a complete or partial loss of capital. There can be no assurance that we will accurately identify all potential considerations that may adversely affect the performance of any one or more of our investments or investment strategies.

#### If the Adviser overestimates the yields or incorrectly prices the risks of our investments, we may experience losses.
The Adviser values our potential investments based on yields and risks, taking into account estimated future losses and the underlying collateral, and the estimated impact of these losses on expected future cash flows and returns. The Adviser's loss estimates may not prove accurate, as actual results may vary from estimates. In the event that the Adviser underestimates the asset level losses relative to the price we pay for a particular investment, we may experience losses with respect to such investment.

#### Declining real estate valuations and impairment charges could materially and adversely affect our business, financial condition, results of operations and cash flows.
We continuously monitor events and changes in circumstances, including those resulting from an economic downturn that could indicate that the carrying value of the real estate and, subsequently, the related intangible assets that secure our investments may not be recoverable. Examples of such indicators may include a significant decrease in NAV, a significant adverse change in the extent or manner in which the property securing our investment is being used or in its physical condition, an accumulation of costs significantly in excess of the amount originally expected for the acquisition or development, or a history of operating or cash flow losses. Declining real estate valuations also impact borrowers' ability to service debt, which may impact our financial performance as lender.

#### Investment ratings that we may use are relative and subjective.
In general, the ratings of nationally recognized rating organizations represent the opinions of these agencies as to the credit quality of securities that they rate. These ratings may be used by us as initial criteria for the selection of investments. Such ratings, however, are relative and subjective; they are not absolute standards of quality and do not evaluate the market value risk of the securities. It is also possible that a rating agency might not change its rating of a particular issue on a timely basis to reflect subsequent events.

 ***Any credit ratings assigned to our investments will be subject to ongoing evaluations and revisions and we cannot assure you that those ratings will not be downgraded.***

Some of our investments may be rated by rating agencies. Any credit ratings on our investments are subject to ongoing evaluation by credit rating agencies, and we cannot assure you that any such ratings will not be downgraded or withdrawn by a rating agency in the future if, in its judgment, circumstances warrant.

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If rating agencies assign a lower-than-expected rating or reduce or withdraw, or indicate that they may reduce or withdraw, their ratings of our investments, the value and liquidity of those investments could significantly decline, which would adversely affect the value of our investment portfolio.

#### We may invest in undervalued loans and other instruments.
We may invest in undervalued loans and other instruments. The identification of investment opportunities in undervalued loans and other instruments is a difficult task, and there is no assurance that such opportunities will be successfully recognized or acquired. While investments in undervalued instruments offer the opportunity for above-average capital appreciation, these investments involve a high degree of financial risk and can result in substantial losses. Returns generated by our investments may not adequately compensate shareholders for the business and financial risks assumed.

We may incur substantial losses if we have purchased investments based on the belief that they were undervalued by their sellers, if they were not in fact undervalued at the time of purchase. In addition, we may be required to hold such investments for a substantial period of time before realizing their anticipated value, and there is no assurance that the value of the investment would not decline during such time. Moreover, during this period, a portion of our assets would be committed to those investments purchased, thus preventing us from investing in other opportunities. In addition, we may finance such purchases with borrowed funds and thus will have to pay interest on such funds during such waiting period.

 ***The due diligence process that the Adviser undertakes in regard to investment opportunities may not reveal all facts that may be relevant in connection with an investment and if the Adviser incorrectly evaluates the risks of our investments we may experience losses.***

Before making investments for us, the Adviser conducts due diligence that it deems reasonable and appropriate based on the facts and circumstances relevant to each potential investment. When conducting due diligence, the Adviser may be required to evaluate important and complex issues, including but not limited to those related to business, financial, tax, accounting, legal, and regulatory and macroeconomic trends. Outside consultants, legal advisors, accountants and investment banks may be involved in the due diligence process in varying degrees depending on the type of potential investment. The Adviser's loss estimates may not prove accurate, as actual results may vary from estimates. If the Adviser underestimates the asset-level losses relative to the price we pay for a particular investment, we may experience losses with respect to such investment.

Moreover, investment analyses and decisions by the Adviser may frequently be required to be undertaken on an expedited basis to take advantage of investment opportunities. In such cases, the information available to the Adviser at the time of making an investment decision may be limited, and they may not have access to detailed information regarding such investment. Further, some matters covered by the Adviser's diligence are continuously evolving and the Adviser may not accurately or fully anticipate such evolution. Therefore, it may be the case that the Adviser may not possess complete knowledge of all circumstances that may adversely affect such investment.

 ***We are subject to additional counterparty risks in connection with engaging in private transactions, which are typically not subject to credit evaluation and regulatory oversight.***

We will be subject to various counterparty risks. For example, we may effect a portion of our transactions in "over-the-counter" or "interdealer" markets or through private transactions. The participants in such markets and the counterparties in such private transactions are typically not subject to credit evaluation and regulatory oversight as are members of "exchange based" markets. This may expose us to the risk that a counterparty will not settle a transaction because of a credit or liquidity problem, thus causing us to suffer losses. In addition, in the case of a default, we could become subject to adverse market movements while replacement transactions are executed. Such "counterparty risk" is accentuated for contracts with longer maturities where events may intervene to prevent settlement, or where we have concentrated our transactions with a single or small group of counterparties. Furthermore, upon the bankruptcy, insolvency or liquidation of any counterparty, we may be deemed to be a general unsecured creditor of such counterparty and could suffer a total loss with respect to any positions and/or transactions with such counterparty. In the recent market conditions, counterparty risk has substantially increased and is more difficult to predict. In

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addition to heightened risks of bankruptcy, in this environment there is a greater risk that counterparties may have their assets frozen or seized as a result of government intervention or regulation. We are not restricted from dealing with any particular counterparty or from concentrating any or all of our transactions with a single counterparty. Our ability to transact business with any one or number of counterparties, the lack of any meaningful and independent evaluation of such counterparties' financial capabilities and the absence of a regulated market to facilitate settlement may increase the potential for losses and could materially and adversely affect us.

 ***The operating and financial risks of obligors and the underlying default risk across capital structures may adversely affect our results of operations and financial condition.***

Our securities investments involve credit or default risk, which is the risk that an obligor or borrower will be unable to make principal and interest payments on its outstanding debt when due. The risk of default and losses on real estate debt instruments will be affected by a number of factors, including global, regional and local economic conditions, interest rates, the real estate market in general, an obligor's equity and the financial circumstances of the obligor, as well as general economic conditions. Such default risk will be heightened to the extent we make relatively junior investments in an obligor's capital structure since such investments are structurally subordinate to more senior tranches in such obligor's capital structure, and our overall returns would be adversely affected to the extent one or more obligors is unable to meet its debt payment obligations when due. To the extent we hold an equity or "mezzanine" interest in any obligor that is unable to meet its debt payment obligations, such equity or mezzanine interest could become subordinated to the rights of such obligor's creditors in a bankruptcy. Furthermore, the financial performance of one or more obligors could deteriorate as a result of, among other things, adverse developments in their businesses, changes in the competitive environment or an economic downturn. As a result, underlying properties or obligors that we expected to be stable may operate, or expect to operate, at a loss or have significant fluctuations in ongoing operating results, may otherwise have a weak financial condition or be experiencing financial distress and subject our investments to additional risk of loss and default.

#### If we are unable to successfully integrate new assets or businesses and manage our growth, we could be materially and adversely affected.
We may significantly increase the size and/or change the mix of our portfolio of assets. We may be unable to successfully and efficiently integrate newly-acquired or originated assets into our existing portfolio or otherwise effectively manage our assets or our growth effectively. In addition, increases in our portfolio of assets and/or changes in the mix of our assets may place significant demands on the Adviser's administrative, operational, asset management, financial and other resources. Any failure to manage increases in size effectively could materially and adversely affect us.

 ***We may be unable to restructure loans in a manner that we believe maximizes value, particularly if we are one of multiple creditors in large capital structures.***

In the current environment, in order to maximize value, we may be more likely to extend and work out a loan, rather than pursue foreclosure. However, in situations where there are multiple creditors in large capital structures, it can be particularly difficult to assess the most likely course of action that a lender group or the borrower may take and it may also be difficult to achieve consensus among the lender group as to major decisions. Consequently, there could be a wide range of potential principal recovery outcomes, the timing of which can be unpredictable, based on the strategy pursued by a lender group and/or by a borrower. These multiple creditor situations tend to be associated with larger loans. If we are one of a group of lenders, we may be a lender on a subordinated basis, and may not independently control the decision making. Consequently, we may be unable to restructure a loan in a manner that we believe would maximize value.

#### We may be subject to risks associated with future advance obligations, such as declining real estate values and operating performance.
Our real estate debt portfolio may include loans that require us to advance future funds. Future funding obligations subject us to significant risks that the property may have declined in value, projects to be completed with the additional funds may have cost overruns and the borrower may be unable to generate

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enough cash flow, or sell or refinance the property, in order to repay our real estate loan due. We could determine that we need to fund more money than we originally anticipated in order to maximize the value of our investment even though there is no assurance that such determination would, in fact, be the best course of action.

#### Difficulty in redeploying the proceeds from repayments of our loans and investments may cause our financial performance and returns to investors to suffer.
As our loans and investments are repaid, we will have to redeploy the proceeds we receive into new loans and investments. It is possible that we will fail to identify reinvestment options that would provide returns or a risk profile that is comparable to the asset that was repaid. If we fail to redeploy the proceeds we receive from repayment of a loan in equivalent or better alternatives, we could be materially and adversely affected.

#### Prepayment rates may adversely affect the value of our investment portfolio.
We are subject to the risk that the obligor of a security or borrower under a loan may exercise its option to prepay principal earlier than scheduled, forcing us to reinvest the proceeds from such prepayment in lower yielding securities or loans, which may result in a decline in our return. Debt investments frequently have call features that allow the obligor to redeem the security at dates prior to its stated maturity at a specified price (typically greater than par) only if certain prescribed conditions are met. An obligor may choose to redeem a debt security if, for example, the obligor can refinance the debt at a lower cost due to declining interest rates or an improvement in the credit standing of the obligor. Any such prepayments of our securities or loans could materially and adversely affect us.

#### The limited liquidity in our investments may materially and adversely affect us.
The limited liquidity of our investment in real estate debt securities and other illiquid investments may make it difficult for us to sell such investments if the need or desire arises. Illiquidity could result from the absence of an established market for the investments, as well as legal, contractual or other restrictions on their resale by us. Dispositions of investments could be subject to contractual and other limitations on transfer or other restrictions that would interfere with subsequent sales of such investments or adversely affect the terms that could be obtained upon any disposition thereof. Many of the securities we purchase are not registered under the relevant securities laws, resulting in a prohibition against their transfer, sale, pledge or their disposition, except in a transaction that is exempt from the registration requirements of, or otherwise in accordance with, those laws. In addition, certain investments such as RTLs and other loans are also particularly illiquid investments due to their short life, their potential unsuitability for securitization and/or the greater difficulty of recovery in the event of a borrower default. In addition, certain of our investments may become less liquid after our investment as a result of periods of delinquencies or defaults or turbulent market conditions, including due to current market conditions and exacerbated market volatility, which may make it more difficult for us to dispose of such assets at advantageous times or in a timely manner. As a result, many of our current investments are, and our future investments will be, illiquid and if we are required to liquidate all or a portion of our portfolio quickly, we may realize significantly less than the value at which we have previously recorded our investments. Further, we may face other restrictions on our ability to liquidate an investment in a business entity to the extent that we or the Adviser or its affiliates has or could be attributed with material non-public information regarding such business entity.

In view of these limitations on liquidity, the return of capital and the realization of gains, if any, may only occur upon the partial or complete disposition of an investment. As a result, our ability to vary our portfolio in response to changes in economic and other conditions may be relatively limited, which could materially and adversely affect us.

#### Interest rate fluctuations could reduce our ability to generate income on our investments and may cause losses.
Changes in interest rates will affect our net interest income, which is the difference between the interest income we earn on our interest-earning investments and the interest expense we incur in financing these investments. Changes in the level of interest rates also may affect our ability to originate and acquire assets, the value of our assets and our ability to realize gains from the disposition of assets. Changes in interest

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rates may also affect borrower default rates. In a period of rising interest rates, our interest expense could increase, while the interest we earn on our fixed-rate debt investments would not change, adversely affecting our profitability. Our operating results depend in large part on differences between the income from our assets, net of credit losses, and our financing costs. We anticipate that for any period during which our assets are not match-funded, the income from such assets will respond more slowly to interest rate fluctuations than the cost of our borrowings. Consequently, changes in interest rates may significantly influence our net income. Interest rate fluctuations resulting in our interest expense exceeding interest income would result in operating losses for us.

#### We may be exposed to environmental liabilities with respect to properties underlying our investments.
In the course of our business, including to the extent we foreclose on properties with respect to which we have extended loans, we could be subject to environmental liabilities with respect to these properties. In such a circumstance, we may be held liable to a governmental entity or to third parties for property damage, personal injury, investigation, and clean-up costs incurred by these parties in connection with environmental contamination, or may be required to investigate or clean up hazardous or toxic substances, or chemical releases at a property. The costs associated with investigation or remediation activities could be substantial. Under various U.S. federal, state, local and foreign laws, these liabilities may be imposed without regard to whether the owner or operator knew of, or was responsible for, the release of such hazardous substances. In addition, the presence of hazardous substances may adversely affect an owner's ability to sell real estate or borrow using real estate as collateral. To the extent that an owner of an underlying property becomes liable for removal costs, the ability of the owner to make debt payments may be reduced, which in turn may materially adversely affect the value of the relevant mortgage-related assets held by us.

#### Our investments may be concentrated and are subject to risk of default.
While we seek to diversify our portfolio of investments, we are not required to observe specific diversification criteria, except as may be set forth in the investment guidelines adopted by our Board. Therefore, our investments in our target assets may at times be concentrated in certain property types that are subject to higher risk of foreclosure or secured by properties concentrated in a limited number of geographic locations. To the extent that our portfolio is concentrated in any one region or type of asset, downturns relating generally to such region or type of asset may result in defaults on a number of our investments within a short time period, which may materially and adversely affect us.

We expect to initially target a portfolio consisting of 65% to 75% of RTLs and 25% to 35% of NQM loans (in each case, on an equity basis). Accordingly, we expect our initial portfolio to be concentrated in these asset classes. Downturns, defaults or economic conditions negatively impacting these asset classes may materially and adversely affect us.

 ***We are subject to certain risks related to incurring contingent liabilities in connection with investments, including the assumption by us of default risk or other third-party risks.***

We may from time to time incur contingent liabilities in connection with an investment. For example, in order to procure financing in connection with our investment activities, we may enter into agreements pursuant to which we agree to assume responsibility for default risk or other risk presented by a third party, a warehouse financing vehicle or an investment vehicle. In addition, in connection with the disposition of an asset by us, we may be required to make certain representations about such asset, and may also be required to indemnify the purchasers of such asset with respect to certain matters, including the accuracy of such representations. Any such representations made by us may survive for a period of time subsequent to the disposition of an asset. We may incur numerous other types of contingent liabilities. There can be no assurance that we will adequately reserve for our contingent liabilities and that such liabilities will not have a material adverse effect on us.

#### We may be subject to liability or "equitable subordination" as a result of borrower lawsuits.
In recent years, a number of judicial decisions in the United States have upheld the right of borrowers to sue lending institutions on the basis of various evolving legal theories (collectively termed "lender liability"). Generally, lender liability is founded upon the premise that an institutional lender has violated a

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duty (whether implied or contractual) of good faith and fair dealing owed to the borrower or has assumed a degree of control over the borrower resulting in creation of a fiduciary duty owed to the borrower or its other creditors or shareholders. Because of the nature of certain of our investments, we could be subject to allegations of lender liability.

In addition, under common law principles that in some cases form the basis for lender liability claims, if a lending institution (i) intentionally takes an action that results in the undercapitalization of a borrower to the detriment of other creditors of such borrower, (ii) engages in other inequitable conduct to the detriment of such other creditors, (iii) engages in fraud with respect to, or makes misrepresentations to, such other creditors or (iv) uses its influence as a shareholder to dominate or control a borrower to the detriment of the other creditors of such borrower, a court may elect to subordinate the claim of the offending lending institution to the claims of the disadvantaged creditor or creditors, a remedy called "equitable subordination." Because of the nature of certain of our and our affiliates' investments, we or our subsidiaries could be subject to claims from creditors of an obligor that our investments issued by such obligor should be equitably subordinated. We may make investments in which it would not be the lead creditor. It is, accordingly, possible that lender liability or equitable subordination claims affecting our investment could arise without the direct involvement of us or our subsidiaries.

 ***Investments in real estate debt are subject to risks including various creditor risks and early redemption features which may materially adversely affect our results of operations and financial condition.***

The real estate debt in which we may invest may not be protected by financial covenants or limitations upon additional indebtedness, may be illiquid or have limited liquidity, and may not be rated by a credit rating agency. Real estate debt is also subject to other creditor risks, including (i) the possible invalidation of an investment transaction as a "fraudulent conveyance" under relevant creditors' rights laws, (ii) so-called lender liability claims by the obligor of the obligation and (iii) environmental liabilities that may arise with respect to collateral securing the obligations. Our investments may be subject to early redemption features, refinancing options, pre-payment options or similar provisions which, in each case, could result in the obligor repaying the principal on an obligation held by us earlier than expected, resulting in a lower return to us than anticipated or reinvesting in a new obligation at a lower return to us.

 ***Debt-oriented real estate investments face a number of general market-related risks that can affect the creditworthiness of borrowers, and modifications to certain loan structures and market terms make it more difficult to monitor and evaluate investments.***

We will invest in real estate-related debt investments. Any deterioration of real estate fundamentals generally, and in the United States in particular, could negatively impact our performance by making it more difficult for borrowers to satisfy their debt payment obligations, increasing the default risk applicable to borrowers, and/or making it relatively more difficult for us to generate attractive risk-adjusted returns. Changes in general economic conditions will affect the creditworthiness of borrowers and/or real estate collateral relating to our investments and may include economic and/or market fluctuations, changes in environmental and zoning laws, casualty or condemnation losses, regulatory limitations on rents, decreases in property values, changes in the appeal of properties to tenants, changes in supply and demand for competing properties in an area (as a result, for instance, of overbuilding), fluctuations in real estate fundamentals, the financial resources of tenants, changes in availability of debt financing which may render the sale or refinancing of properties difficult or impracticable, changes in building, environmental and other laws, energy and supply shortages, various uninsured or uninsurable risks, natural disasters, political events, trade barriers, currency exchange controls, changes in government regulations (such as rent control), changes in real property tax rates and operating expenses, changes in interest rates, changes in the availability of debt financing and/or mortgage funds which may render the sale or refinancing of properties difficult or impracticable, increased mortgage defaults, increases in borrowing rates, outbreaks of an infectious disease, epidemics/pandemics or other serious public health concerns, negative developments in the economy or political climate that depress travel activity (including restrictions on travel or quarantines imposed), environmental liabilities, contingent liabilities on disposition of assets, acts of God, terrorist attacks, war, demand and/or real estate values generally and other factors that are beyond the control of the Adviser. Such changes may develop rapidly and it may be difficult to determine the comprehensive impact of such changes on our investments, particularly for investments that may have inherently limited liquidity. These

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changes may also create significant volatility in the markets for our investments which could cause rapid and large fluctuations in the values of such investments. There can be no assurance that there will be a ready market for the resale of our debt investments because such investments may not be liquid. Illiquidity may result from the absence of an established market for the investments, as well as legal or contractual restrictions on their resale by us.

The Adviser cannot predict whether economic conditions generally, and the conditions for real estate debt investing in particular, will deteriorate in the future. Declines in the performance of the U.S. and global economies or in the real estate debt markets could have a material adverse effect on our investment activities. In addition, market conditions relating to real estate debt investments have evolved since the financial crisis, which has resulted in a modification to certain loan structures and market terms. For example, it has become increasingly difficult for real estate debt investors in certain circumstances to receive full transparency with respect to underlying investments because transactions are often effectuated on an indirect basis through pools or conduit vehicles rather than directly with the borrower. These and other similar changes in loan structures or market terms may make it more difficult for us to monitor and evaluate investments.

 ***Although obtaining collateral from counterparties is intended to help mitigate our potential exposure to a default by or the insolvency of a counterparty, such risks cannot be completely removed.***

Although obtaining collateral from counterparties and any collateral management system implemented is intended to help mitigate our potential exposure to a default by or the insolvency of a counterparty, such risks cannot be completely removed. The collateral provided may not be sufficient to meet the counterparty's obligations for a number of reasons. In addition, the value of the underlying real estate provided as collateral may not have a live quoted price.

There is no guarantee that the collateral will be correctly and accurately valued. To the extent that the collateral is not correctly valued, we may suffer a loss. Even if the collateral is correctly valued, the collateral may decrease in value between the time of default or insolvency of the counterparty and the time at which title to the collateral is obtained. The risk of a decrease in the value of collateral may be greater for illiquid assets (specifically real estate), due to the length of time it may take to obtain title to such assets, and such assets may comprise all or a significant portion of the collateral provided. While the collateral management process will be monitored by the Adviser, to the extent that the management process is not correctly adhered to and implemented we may suffer a loss in the event of default or insolvency of the counterparty.

#### We may face material risks around security arrangements.
The security arrangements under a loan in which we have invested may not have been properly created or perfected, or may be subject to other legal or regulatory restrictions. While we will invest in secured loans, the security arrangements in relation to such loans will be subject to such security having been correctly created and perfected and any applicable legal or regulatory requirements which may restrict the giving of security by a borrower under a loan, such as, for example, thin capitalization, over-indebtedness, financial assistance and corporate benefit requirements. If the loans in which we invest do not benefit from the expected security arrangements, this may affect the value of such investments.

 ***Investments outside the United States that are denominated in foreign currencies subject us to foreign currency risks and to the uncertainty of foreign laws and markets, which may adversely affect our distributions and our REIT status.***

Our investments outside the United States denominated in foreign currencies subject us to foreign currency risk due to potential fluctuations in exchange rates between foreign currencies and the U.S. dollar. As a result, changes in exchange rates of any such foreign currency to U.S. dollars may affect our income and distributions and may also affect the book value of our assets and the amount of shareholders' equity. In addition, these investments subject us to risks of multiple and conflicting tax laws and regulations, and other laws and regulations that may make foreclosure and the exercise of other remedies in the case of default more difficult or costly compared to U.S. assets, and political and economic instability abroad, any of which factors could adversely affect our receipt of returns on and distributions from these investments.

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Changes in foreign currency exchange rates used to value a REIT's foreign assets may be considered changes in the value of the REIT's assets. These changes may adversely affect our status as a REIT. Further, bank accounts in foreign currency which are not considered cash or cash equivalents may adversely affect our status as a REIT.

#### Solicitation of refinancings by Affiliated Service Providers could adversely affect the performance of the affected loans and, consequently, the returns available to our investors.
Affiliated Service Providers, including Genesis, Newrez or other affiliates or related parties of the Sponsor, will continue to engage in mortgage origination and related activities after the sale of loans to us. As a result, these parties may, directly or indirectly, solicit, encourage or facilitate the refinancing of one or more mortgage loans that have been sold to us. Any such solicitation or facilitation of refinancing could adversely affect the performance of the affected loans and, consequently, the returns available to our investors. Refinancings may result in early prepayments, which could reduce the yield on the loans, shorten the weighted average life of the portfolio and increase reinvestment risk if proceeds must be redeployed at lower prevailing interest rates.

We do not intend to include covenants restricting Affiliated Servicer Providers from soliciting such refinancings in the sale documentation for loans following the sale of such loans. In the event the sale documentation did include such covenants, enforcement of such covenants may be difficult in practice. It may be challenging to determine whether a refinancing resulted from prohibited solicitation or from general market conditions or borrower-initiated activity. Because the Affiliated Service Providers are related to the Sponsor and the Adviser, conflicts of interest may arise with respect to the monitoring or enforcement of such restrictions. The Adviser, which is affiliated with the seller of certain loans, may have limited incentive to assert claims or pursue remedies against such affiliates for any breach of non-solicitation provisions. In addition, Affiliated Service Providers may maintain ongoing relationships with borrowers through other lines of business, such as origination, servicing or marketing that could increase the likelihood of borrower contact leading to refinancing. Any such refinancing activity may increase prepayment rates above those assumed in our underwriting models and could materially and adversely affect the timing and amount of cash flows, as well as the overall returns to our investors.

#### Risks Related to Specific Investments

#### The RTLs in which we may invest may be subject to a greater risk of loss than conventional mortgage loans.
Our portfolio will include RTLs to borrowers who are typically seeking relatively short-term funds to be used in an acquisition or rehabilitation of a property or during the period before the property is fully occupied. The typical borrower in a RTL often has identified an undervalued asset that has been under-managed or is located in a recovering market. If the market in which the asset is located fails to improve according to the borrower's projections, or if the borrower fails to improve the quality of the asset's management or the value of the asset, the borrower may not receive a sufficient return on the asset to satisfy the RTL, and we bear the risk that we may not recover some or all of our investment.

In addition, borrowers usually use the proceeds of a conventional mortgage to repay a RTL. RTLs therefore are subject to the risk of a borrower's inability to obtain permanent financing to repay the RTL. In the event of any default under RTLs that may be held by us, we bear the risk of loss of principal and non-payment of interest and fees to the extent of any deficiency between the value of the mortgage collateral and the principal amount and unpaid interest of the RTL. To the extent we suffer such losses with respect to RTLs, it may materially and adversely affect us.

#### Risks of cost overruns and noncompletion of renovations of properties in transition may result in significant losses.
The renovation, refurbishment or expansion of a property by a RTL borrower involves risks of cost overruns and noncompletion. Estimates of the costs of improvements to bring an acquired property up to standards established for the market position intended for that property may prove inaccurate. Other risks may include rehabilitation costs exceeding original estimates, possibly making a project uneconomical, environmental risks, delays in legal and other approvals (e.g., for condominiums) and rehabilitation and

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subsequent leasing of the property not being completed on schedule. If such renovation is not completed in a timely manner, or if it costs more than expected, the RTL borrower may not be able to make payments on our investment on a timely basis or at all, which could result in significant losses.

#### We may face risks related to lower credit quality loans.
There are no restrictions on the credit quality of the loans in which we may invest, and certain loans in which we may invest may be highly speculative or have significant risk exposure to adverse conditions. While such loans offer a higher return potential than loans to more creditworthy obligors, they also involve greater volatility of price and greater risk of loss of income and principal. The market values of these loans may also be more sensitive to changes in economic conditions than loans to more creditworthy obligors.

#### We may be subject to risks associated with construction lending, such as declining real estate values, cost overruns and delays in completion.
Our debt portfolio may include loans, including RTLs, made to developers to construct prospective projects. The primary risks to us of construction loans are the potential for cost overruns, the developer's failing to meet a project delivery schedule and the inability of a developer to sell or refinance the project at completion in accordance with its business plan and repay our loan due to declining real estate values. These risks could cause us to have to fund more money than we originally anticipated in order to complete the project. We may also suffer losses on our debt investment if the developer is unable to sell the project or refinance our debt investment.

 ***We may invest in residential bridge "fix and flip" loans, which would expose us to the risk that the borrower of such loan may not be able to sell the property on attractive terms or at all once the property has been re-developed, which may materially and adversely affect us.***

We may invest in residential bridge "fix and flip" loans, which are particularly illiquid investments due to their short life and the greater difficulty of recoupment in the event of a borrower's default. As these loans provide borrowers with short-term capital typically in connection with the acquisition and re-development of a single-family or multi-family residence, with a view to the borrower selling the property, there is a risk that a borrower may not be able to sell the property on attractive terms or at all once the property has been re-developed. Moreover, the borrower may experience difficulty in completing the re-development of the property on schedule or at all, whether as a result of cost over-runs, construction-related delays, or other issues, which may result in delays selling the property or an inability to sell the property at all. Since the borrower would typically use the proceeds of the sale of the property to repay the bridge loan, if any of the foregoing events were to occur, the borrower may be unable to repay its loan on a timely basis or at all, which may materially and adversely affect us.

#### The NQM loans in which we may invest are subject to increased risks.
We may acquire residential loans sometimes referred to as "non-qualified mortgages" or "NQM loans" that will not have the benefit of enhanced legal protections otherwise available for "qualified mortgages" originated pursuant to more restrictive standards than solely determining a borrower's ability to repay, as further described below.

The NQM loans in which we invest are subject to increased risk of loss compared to other investments. A NQM loan is directly exposed to losses resulting from default. Therefore, the value of the underlying property, the creditworthiness and financial position of the borrower, and the priority and enforceability of the lien will significantly impact the value of any such NQM loan. In the event of a foreclosure, we may assume direct ownership of the underlying real estate. The liquidation proceeds upon the sale of such real estate may not be sufficient to recover our cost basis in the NQM loan, and any costs or delays involved in the foreclosure or liquidation process may increase losses. The value of NQM loans is also subject to property damage caused by hazards, such as earthquakes or environmental hazards, not covered by standard property insurance policies and to a reduction in a borrower's mortgage debt by a bankruptcy court. In addition, claims may be asserted against us because of our position as a mortgage holder or property owner, including assignee liability, environmental hazards and other liabilities. In some cases, these claims may lead to losses

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exceeding the purchase price of the related NQM loan or property. The occurrence of any of these risks could have a material adverse effect on us.

In addition, NQM loans have flexibility in underwriting guidelines and are subject to credit risk. The underwriting guidelines for NQM loans may be permissive as to the borrower's debt-to-income ratio, credit history, and/or income documentation. Loans that are underwritten pursuant to less stringent underwriting guidelines could experience substantially higher rates of delinquencies, defaults and foreclosures than those experienced by loans underwritten to more stringent underwriting guidelines. If our NQM loans are underwritten to more flexible guidelines which have increased risk and may cause higher delinquency, default, or foreclosure rates given economic stress, the performance of our investments in NQM loan portfolio could be correspondingly adversely affected, which could materially and adversely affect us.

 ***The residential loans, including NQM loans, that we may acquire, originate or invest in may subject us to legal, regulatory and other risks, which could adversely impact our business and financial results.***

We may acquire, originate or invest in NQM loans that will not have the benefit of enhanced legal protections otherwise available in connection with the origination of "qualified mortgage" loans, as further described below. The ownership of NQM loans could subject us to legal, regulatory, and other risks, including those arising under U.S. federal consumer protection laws and regulations designed to regulate residential mortgage loan underwriting and originators' lending processes, standards and disclosures to borrowers.

These laws and regulations include the CFPB's "Know Before You Owe" mortgage disclosure rule, the CFPB's TILA-RESPA Integrated Disclosure rule, the "ability-to-repay" rules ("**ATR Rules**") under the Truth-in-Lending Act and "qualified mortgage" regulations, in addition to various U.S. federal, state and local laws and regulations intended to discourage predatory lending practices by residential loan originators. Under U.S. federal consumer protection law, residential loan originators must assess and take into account the ability of a borrower to repay the loan, following procedures specified in the ATR Rules. The ATR Rules specify the characteristics of a "qualified mortgage" and provide two levels of presumption of compliance with the requirement to evaluate the borrower's ability to repay: (1) a safe harbor of compliance and (2) a rebuttable presumption of compliance for higher priced loans. The "safe harbor" under the ATR Rules applies to a covered transaction that meets the definition of "qualified mortgage" and is not a "higher-priced covered transaction." For any covered transaction that meets the definition of a "qualified mortgage" and is not a "higher-priced covered transaction," the creditor or assignee will be deemed to have complied with the ability-to-repay requirement and, accordingly, will be conclusively presumed to have made a good faith and reasonable determination of the consumer's reasonable ability to repay. Creditors or assignees will have the benefit of a rebuttable presumption of compliance with the applicable ATR Rules if the residential loan meets the definition of a qualified mortgage under the ATR Rules but exceeds certain defined price thresholds.

The definition of "qualified mortgage" in the ATR Rules has changed substantially over time, but, in general, the NQM loans that we may acquire may include, for example, loans with a debt-to-income ratios that exceed 43%, and in all cases do not have the benefit of either a safe harbor from liability under the ATR Rules or a rebuttable presumption of compliance with the ATR Rules. Application of the standards set forth in the ATR Rules is highly subjective and subject to interpretive uncertainties. As a result, a court may determine that a residential loan did not meet the standard or test even if the originator reasonably believed such standard or test had been satisfied. Failure of residential loan originators or servicers to comply with these laws and regulations could subject us, as an assignee or purchaser of these loans (or as an investor in securities backed by these loans), to monetary penalties assessed by the CFPB through its administrative enforcement authority and by mortgagors through a private right of action against lenders or as a defense to foreclosure, including by recoupment or setoff of finance charges and fees collected, and could result in rescission of the affected residential loans, which could adversely impact our business and financial results. Such risks may be higher in connection with the acquisition of NQM loans. Borrowers under NQM loans may be more likely to challenge the analysis conducted under the ATR Rules by lenders. Further, regardless of the age of the loan, borrowers may assert an originator's noncompliance with the ATR Rules for NQM loans as a defense to foreclosure or setoff to other collection activity. Even if a borrower does not succeed in the challenge, additional costs may be incurred in connection with challenging and

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defending such claims, which may be more costly in judicial foreclosure jurisdictions than in non-judicial foreclosure jurisdictions, and there may be more of a likelihood such claims are made because the borrower is already exposed to the judicial system to process the foreclosure.

#### We may be subject to risks associated with "scratch-and-dent" loans.
With respect to "scratch-and-dent" loans, (i) the underwriting guidelines of the related originator were not satisfied or (ii) there were certain document deficiencies associated with the original mortgage loans, which in each case, (a) prevented the sale of the mortgage loans by such third-party sellers to a GSE or other purchaser or (b) resulted in such mortgage loans being put back to the third-party sellers by the related GSE or purchaser. The specific defects associated with the mortgage loans include, but are not limited to, one or more of the following items:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • misrepresentations or miscalculations of income or borrower liabilities in connection with establishing compliance with the ATR Rules;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • incorrectly calculated mortgagor debt-to-income ratios which, when recalculated, exceeded underwriting guidelines;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • issues with property appraisals, including appraisal waivers that were not compliant with GSE criteria and LTV ratios that exceeded the related GSE's or other purchaser's guidelines;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • missing or incomplete mortgage loan documentation, including missing insurance documents, missing signatures or other general documentation issues;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • changes in a borrower's employment between the time of loan application and loan funding that was not disclosed to the related originator, the related GSE or other purchaser and which would have resulted in revised calculations of borrower debt-to-income ratio;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • early payment defaults;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • timing issues including Federal Housing Authority ("**FHA**") case expiration, loan terms that did not comply with an originator's guidelines, violations of FHA's 90 day flipping rule (which requires that a person selling a flipped home must own the home for more than 90 days before home buyers can purchase the property) and the age of a loan at the time of delivery to the purchaser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • loan seasoning that prevented sale to a GSE;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • property types that did not comply with a GSE's or purchaser's requirements, such as condominium-hotels or multi-unit properties or issues associated with property conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • misrepresentation by a borrower regarding employment or the occupancy status of the related mortgaged property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • missing or defective loan documentation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • other general underwriting issues, such as mortgage loans secured by mortgaged properties in a homeowner's association that was not permitted by the related GSE or other purchaser and underwriting that did not satisfy the requirements of the Veteran's Association, FHA or the United States Department of Agriculture.

As a result of the defects associated with the mortgage loans described above, it is possible that the mortgage loans may experience rates of delinquency, foreclosure and bankruptcy that are higher, and that may be substantially higher, than those experienced by mortgage loans without such defects.

#### We may be subject to risks associated with RPLs and NPLs.
Proceeds on NPLs generally rely on liquidation or sale of the related mortgaged property. Servicers of NPLs will generally evaluate the related mortgagors for modifications and other loss mitigation alternatives. Where the related mortgagor no longer lives in the mortgaged property or does not accept loss mitigation alternatives, servicers will generally foreclose upon or otherwise attempt to liquidate the loans, as market conditions permit. The cash flow realized on NPLs depends on the NPLs servicers' skill and diligence in servicing and ability to enter into sustainable modifications and manage the foreclosure or sale process.

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Substantial delays could be encountered in the liquidation of NPLs or servicers may be unable, in certain circumstances, to liquidate NPLs in an efficient manner. In addition, any foreclosures are subject to the risks described under "— *We may need to foreclose on certain of the loans we originate or acquire, which could result in losses that harm our results of operations and financial condition*" and "— *Operating and disposing of properties acquired through foreclosure subject us to additional risks that could harm our results of operations*."

While RPLs are in repayment status at the time of investment, mortgagors of RPLs have previously been delinquent in repaying their obligations thereunder. There can be no assurance that such loans will remain in repayment status, and may be at higher risk of delinquency. In the event of delinquency, the risks described above regarding NPLs would apply to such RPLs, which could result in reduced proceeds in connection with such loans. In addition, the market of potential purchasers of RPLs may be narrower than that for loans that never experienced delinquencies, leaving us with fewer disposition options for RPL investments.

In addition, see "— *Any distressed loans or investments we make, or loans and investments that later become distressed, may subject us to losses and other risks relating to bankruptcy proceedings*."

#### We may be subject to risks associated with MH loans.
Subject to maintaining our status as a REIT, we may invest in, or make loans in connection with, manufactured housing. The manufactured housing industry is generally subject to many of the same national and regional economic and demographic factors and risks that affect the housing industry generally, as are described herein. These factors, including shortage of consumer financing, public perception, consumer confidence, inflation, regional population and employment trends, availability and cost of alternative housing, weather conditions and general economic conditions, tend to impact manufactured homes to a greater degree than traditional residential homes. If we invest in the manufactured housing markets, its operating results, and consequently, the returns available to investors, from our manufactured housing investments may be adversely affected by: (i) competition from other available manufactured housing sites or available land for the placement of manufactured homes outside of established communities; (ii) alternative forms of housing (e.g., apartment buildings and site built single-family homes); and (iii) local real estate market conditions (e.g., the oversupply of manufactured housing sites and a reduction in demand for manufactured housing sites in an area).

#### We may be subject to risks associated with SRTs.
Subject to maintaining our status as a REIT, we may invest in SRTs. SRTs introduce risks to investors relating to the nature of the class of loans subject to such SRTs. For example, a SRT of consumer loan credit risk would exhibit the risks described below in "— *We may be subject to risks associated with consumer loans*." In addition to the risks of the loans underlying an SRT, as an investor in an SRT, we bear additional counterparty risk introduced by the original credit obligor that would not be present where we acquired the risk directly. A bankruptcy or other material adverse event regarding the SRT counterparty could negatively impact our investment, irrespective of the performance of the credit underlying such SRT.

#### We may be subject to risks associated with consumer loans.
Subject to maintaining our status as a REIT, we may invest in consumer loans. Federal and state consumer protection laws impose requirements and place restrictions on creditors and service providers in connection with solicitations and extensions of credit, the allowable interest rate and terms of credit, as well as servicing of and collections on consumer loans. Consumer loans that do not comply with consumer protection laws may result in penalties, regulatory scrutiny or subject collection efforts to defenses including that loans may be found not to be valid or enforceable under their terms against the borrowers.

Certain states place no statutory interest rate limitations on consumer loans issued by banks, while other states limit maximum allowable interest rates. If interest rates charged on consumer loans are in excess of any applicable jurisdiction's maximum allowable rate, (i) such loans could be deemed unenforceable, (ii) the principal and/or interest thereon could be reduced or extinguished and (iii) fees, damages and penalties may be enforced.

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Where a borrower dies while his or her loan remains outstanding, the borrower's estate may not contain sufficient assets to repay the loan, the executor or trustee may prioritize payments to other creditors ahead of applicable lender and payments, if any, may be delayed in connection with the probate of the estate. Borrowers on active military service receive protections limiting maximum interest rates applicable to their loans and staying proceedings to collect upon their loans, minimizing and/or delaying the receipt of proceeds on such loans.

#### We may be subject to risks related to investments in CLO Securities.
Subject to maintaining our status as a REIT, we may invest in pools and/or tranches of CLO products (including "equity" or residual tranches) and similarly structured securities. Consequently, holders of equity or other securities issued by these obligors must rely solely on distributions on its underlying assets or proceeds thereof for payment. CLOs may include, among others, domestic and foreign senior secured loans, senior unsecured loans and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans. The underlying assets of obligors of CLOs may include, without limitation, broadly-syndicated leverage loans, middle-market bank loans, collateralized debt obligation debt tranches, trust preferred securities, insurance surplus notes, asset-backed securities, mortgages, high-yield bonds, mezzanine debt, second-lien leverage loans, credit default swaps and emerging market debt and corporate bonds, which are subject to liquidity, market value, credit, interest rate, reinvestment and other risks, and may also include assets and/or properties that are owned, directly or indirectly, by Rithm and/or one or more Other Rithm Accounts.

Our investment strategy with respect to certain types of investments may be based, in part, upon the premise that certain investments (either held directly or through a CLO) that are otherwise performing may from time to time be available for purchase by us at "undervalued" prices. Purchasing interests at what may appear to be "undervalued" or "discounted" levels is no guarantee that these investments will generate attractive risk-adjusted returns to us or will not be subject to further reductions in value. No assurance can be given that investments can be acquired or realized at favorable prices or that the market for such interests will continue to approve since this depends, in part, upon events and factors outside of the control of the Adviser. Actual or perceived trends in real estate or debt markets do not guarantee, predict or forecast future events, which may differ significantly from those implied by such trends.

#### Investments in non-conforming and non-investment grade rated loans or securities involve increased risk of loss.
We may originate and/or acquire investments that do not conform to conventional loan standards applied by traditional lenders and either are not rated or rated as non-investment grade by the rating agencies. The non-investment grade credit ratings for these assets typically result from the overall leverage of the loans, the lack of a strong operating history for the properties underlying the loans, the borrowers' credit history, the properties' underlying cash flow or other factors. As a result, these investments have a higher risk of default and loss than investment grade rated assets. Any loss we incur may be significant and may reduce distributions to our shareholders and adversely affect the value of our common shares. There are no limits on the percentage of unrated or non-investment grade rated assets we may hold in our investment portfolio.

 ***Any distressed loans or investments we make, or loans and investments that later become distressed, may subject us to losses and other risks relating to bankruptcy proceedings.***

Our investment strategy may include making distressed investments from time to time (e.g., investments in defaulted, out-of-favor or distressed loans and debt securities) or may involve investments that become "non-performing" following our origination or acquisition thereof. Certain of our investments may, therefore, include specific securities of companies that typically are highly leveraged, with significant burdens on cash flow and, therefore, involve a high degree of risk of substantial or total losses on our investments and in certain circumstances, may become subject to certain additional potential liabilities that may exceed the value of our original investment therein. For example, under certain circumstances, a lender who has inappropriately exercised control over the management and policies of a debtor may have its claims subordinated or disallowed or may be found liable for damages suffered by parties as a result of such actions.

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During an economic downturn or recession, securities of financially troubled or operationally troubled obligors are more likely to go into default than securities of other obligors. Securities of financially troubled obligors and operationally troubled obligors are less liquid and more volatile than securities of companies not experiencing financial difficulties. The market prices of such securities are subject to erratic and abrupt market movements and the spread between bid and ask prices may be greater than normally expected. Investment in the securities of financially troubled obligors and operationally troubled obligors involves a high degree of credit and market risk.

In certain limited cases (e.g., in connection with a workout, restructuring and/or foreclosing proceedings involving one or more of our debt investments), the success of our investment strategy with respect thereto will depend, in part, on our ability to effectuate loan modifications and/or restructures and improve the operations of our borrower entities. The activity of identifying and implementing any such restructuring programs entails a high degree of uncertainty. There can be no assurance that we will be able to successfully identify and implement such restructuring programs. Further, such modifications and/or restructuring may entail, among other things, a substantial reduction in the interest rate and substantial write-offs of the principal of such loan, debt securities or other interests. However, even if a restructuring were successfully accomplished, a risk exists that, upon maturity of such real estate loan, debt securities or other interests replacement "takeout" financing will not be available.

These financial difficulties may never be overcome and may cause borrowers to become subject to bankruptcy or other similar administrative and operating proceedings. There is a possibility that we may incur substantial or total losses on our investments and in certain circumstances, become subject to certain additional potential liabilities that may exceed the value of our original investment therein. For example, under certain circumstances, a lender who has inappropriately exercised control over the management and policies of a debtor may have its claims subordinated or disallowed or may be found liable for damages suffered by parties as a result of such actions. In any reorganization or liquidation proceeding relating to our investments, we may lose our entire investment, may be required to accept cash or securities with a value less than our original investment and/or may be required to accept payment over an extended period of time. In addition, under certain circumstances, payments to us and distributions by us to the shareholders may be reclaimed if any such payment or distribution is later determined to have been a fraudulent conveyance, preferential payment or similar transaction under applicable bankruptcy and insolvency laws. Furthermore, bankruptcy laws and similar laws applicable to administrative proceedings may delay our ability to realize value on collateral for loan positions held by us or may adversely affect the priority of such loans through doctrines such as equitable subordination or may result in a restructure of the debt through principles such as the "cramdown" provisions of the bankruptcy laws.

 ***We may need to foreclose on certain of the loans we originate or acquire, which could result in losses that harm our results of operations and financial condition.***

We may find it necessary or desirable to foreclose on certain of the loans we originate or acquire, and the foreclosure process may be lengthy and expensive. If we foreclose on an asset, we may take title to the property securing that asset, and if we do not or cannot sell the property, we would then come to own and operate it as "real estate owned." Owning and operating real property involves risks that are different (and in many ways more significant) than the risks faced in owning an asset secured by that property. The costs associated with operating and redeveloping a property, including any operating shortfalls and significant capital expenditures, could materially and adversely affect our results of operations, financial conditions and liquidity. In addition, we may end up owning a property that we would not otherwise have decided to acquire directly at the price of our original investment or at all, and the liquidation proceeds upon sale of the underlying real estate may not be sufficient to recover our cost basis in the loan, resulting in a loss to us.

Whether or not we have participated in the negotiation of the terms of any such loans, we cannot assure you as to the adequacy of the protection of the terms of the applicable loan, including the validity or enforceability of the loan and the maintenance of the anticipated priority and perfection of the applicable security interests. Furthermore, claims may be asserted by lenders or borrowers that might interfere with enforcement of our rights. Borrowers may resist foreclosure actions by asserting numerous claims, counterclaims and defenses against us, including, without limitation, lender liability claims and defenses, even when the assertions may have no basis in fact, in an effort to prolong the foreclosure action and seek to

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force the lender into a modification of the loan or a favorable buy-out of the borrower's position in the loan. Foreclosure actions in some U.S. states can take several years or more to litigate and may also be time consuming and expensive to complete in other U.S. states and foreign jurisdictions in which we do business. At any time prior to or during the foreclosure proceedings, the borrower may file for bankruptcy, which would have the effect of staying the foreclosure actions and further delaying the foreclosure process, and could potentially result in a reduction or discharge of a borrower's debt. Foreclosure may create a negative public perception of the related property, resulting in a diminution of its value. Even if we are successful in foreclosing on a loan, the liquidation proceeds upon sale of the underlying real estate may not be sufficient to recover our cost basis in the loan, resulting in a loss to us. Furthermore, any costs or delays involved in the foreclosure of the loan or a liquidation of the underlying property will further reduce the net sale proceeds and, therefore, increase any such losses to us.

#### Operating and disposing of properties acquired through foreclosure subject us to additional risks that could harm our results of operations.
We may acquire real estate through foreclosure. If we do, we may be forced to operate such foreclosed properties for a substantial period of time, which can be a distraction for our management team and may require us to pay significant costs associated with such property. Owning and operating real property involves risks that are different (and in many ways more significant) than the risks faced in owning a loan secured by that property. The costs associated with operating and redeveloping the property, including any operating shortfalls and significant capital expenditures, could materially and adversely affect us. We may also be subject to environmental liabilities arising from such properties acquired in the foreclosure process. In addition, at such time that we elect to sell such property, the liquidation proceeds upon sale of the underlying real estate may not be sufficient to recover our cost basis, resulting in a loss to us. Furthermore, any costs or delays involved in the maintenance or liquidation of the underlying property will further reduce the net proceeds and, thus, increase the loss. Additionally, we intend to own and operate any foreclosure property through TRSs that would be subject to U.S. federal (and applicable state and local) corporate income tax on its earnings, which may reduce our cash flow and the amount available to distribute to our shareholders, which could materially and adversely affect us. See "*Item 1. Business — Certain U.S. Federal Income Tax Considerations — U.S. Federal Income Tax Considerations as a REIT — Effect of Subsidiary Entities — Taxable REIT Subsidiaries*" for a discussion of additional considerations regarding TRSs.

 ***Joint venture investments could be adversely affected by our lack of sole decision-making authority, our reliance on joint venture partners' financial condition and liquidity and disputes between us and our joint venture partners.***

Subject to maintaining our status as a REIT, we may make investments through joint ventures. Such joint venture investments may involve risks not otherwise present when we make investments without partners, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • we may not have exclusive control over the investment or the joint venture, which may prevent us from taking actions that are in our best interest and could create the potential risk of creating impasses on decisions, such as with respect to acquisitions or dispositions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • joint venture agreements often restrict the transfer of a partner's interest or may otherwise restrict our ability to sell the interest when we desire and/or on advantageous terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • joint venture agreements may contain buy-sell provisions pursuant to which one partner may initiate procedures requiring the other partner to choose between buying the other partner's interest or selling its interest to that partner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a partner may, at any time, have economic or business interests or goals that are, or that may become, inconsistent with our business interests or goals;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a partner may be in a position to take action contrary to our instructions, requests, policies or objectives, including our policy with respect to maintaining our qualification as a REIT and our exemption from registration under the Investment Company Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a partner may fail to fund its share of required capital contributions or may become bankrupt, which may mean that we and any other remaining partners generally would remain liable for the joint venture's liabilities;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • disputes between us and a partner may result in litigation or arbitration that could increase our expenses and prevent the Adviser and our officers and trustees from focusing their time and efforts on our business and could result in subjecting the investments owned by the joint venture to additional risk;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • we may, in certain circumstances, be liable for the actions of a partner, and the activities of a partner could adversely affect our ability to qualify as a REIT or maintain our exclusion from registration under the Investment Company Act, even though we do not control the joint venture; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • we may, in certain circumstances, be unable to obtain information from the joint venture to establish that we have satisfied periodic income and asset tests necessary to qualify as a REIT.

Any of the above may subject us to liabilities in excess of those contemplated and adversely affect the value of our joint venture investments.

#### Risks Related to Debt Financing

#### The amount of our debt may subject us to increased risk of loss and could materially adversely affect us.
We may incur a significant amount of debt through bank credit facilities (including term loans and revolving facilities), warehouse facilities and structured financing arrangements, public and private debt or bond issuances (including through securitizations), repurchase agreements and derivative instruments, in addition to transaction or asset specific funding arrangements. We may also issue additional debt securities to fund our growth. The percentage and forms of direct or indirect leverage we employ will vary depending on our available capital, our ability to obtain and access financing arrangements with lenders, the type of assets we are funding, whether the financing is recourse or non-recourse, debt restrictions contained in those financing arrangements and the lenders' and rating agencies' estimate of the stability of our investment portfolio's cash flow. While we intend to target between a 65% to 85% portfolio-wide asset-level leverage ratio, there is no limit on the amount we may borrow with respect to any individual investment or, subject to our Board's oversight, on a portfolio-wide basis.

If we are unable to refinance our debt on acceptable terms, or at all, we may be forced to dispose of one or more of our investments on disadvantageous terms, which may result in losses to us and may adversely affect cash available for distributions to our shareholders. In addition, if then prevailing interest rates or other factors at the time of refinancing result in higher interest rates upon refinancing, our interest expense would increase, which would materially and adversely affect us. We may also refinance our debt through equity financings, which may not be available on acceptable terms or at all and which could be dilutive to our shareholders.

Our substantial outstanding indebtedness, and the limitations imposed on us by our financing agreements, could have other significant adverse consequences, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • fluctuations in our net assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • we may be required to dedicate a substantial portion of our cash flow (including capital contributions) to paying principal and interest payments on our indebtedness, reducing the cash flow available to fund our business, to pay dividends (and investors may be allocated income in excess of cash available for distribution), including those necessary to maintain our REIT qualification, or to use for other purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • we may be unable to sell assets (including assets held by any investment vehicle) that are pledged to secure an indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • we may be unable to borrow additional funds as needed or on favorable terms, which could, among other things, adversely affect our ability to capitalize upon emerging acquisition opportunities or meet operational needs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • we may be unable to refinance our indebtedness at maturity or the refinancing terms may be less favorable than the terms of our original indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • we may violate restrictive covenants in our loan documents, which would entitle the lenders to require us to retain cash for reserves or to pay down loan balances, and we may be unable to hedge

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floating rate debt, counterparties may fail to honor their obligations under our hedge agreements and these agreements may not effectively hedge interest rate fluctuation risk;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • we may default on our obligations and the lenders or mortgagees may foreclose on our assets that secure their loans (and in such circumstances the recovery we receive may be significantly diminished as compared to our expected return of such investment); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • during the term of any indebtedness, our returns may be materially reduced by increased costs attributable to regulatory changes, including a possible gross-up for taxes.

If any one of these events were to occur, we could be materially and adversely affected. A foreclosure may also have substantial adverse tax consequences for us.

Although borrowings by us have the potential to enhance overall returns that exceed our cost of funds, they will further diminish returns (or increase losses on capital) to the extent overall returns are less than our cost of funds. As a result, the possibilities of profit and loss are increased. Borrowing money to acquire, originate or invest in assets provides us with the advantages of leverage, but exposes us to greater market risks and higher current expenses.

There can be no assurance that a leveraging strategy will be successful, and such strategy may subject us to increased risk of loss, which could result in the total loss of capital and could adversely affect our results of operations and financial condition.

#### We may not be able to earn returns on loans we make in excess of the interest we pay on our borrowings.
We try to generate financial returns by making and investing in loans and debt securities that generate returns in excess of our cost of capital. Our ability to execute this strategy depends on various conditions in the financing markets that are beyond our control, including liquidity, fluctuations in prevailing interest rates and credit spreads. Interest rate and credit spread fluctuations resulting in our interest and related expense exceeding interest and related income would result in operating losses for us. Changes in the level of interest rates and credit spreads also may affect our ability to make new loans or investments and may decrease the value of our existing loans and investments. Increases in interest rates and credit spreads may also negatively affect demand for loans and could result in higher borrower default rates. We may be unable to obtain additional financing on favorable terms or, with respect to our debt and other investments, on terms that match the maturities of the debt originated or other investments acquired, if we are able to obtain additional financing at all.

 ***For our borrowed money, the potential for gain or loss on amounts invested in us will be magnified and may increase the risk of investing in us.***

The use of leverage increases the volatility of investments by magnifying the potential for gain or loss on invested equity capital. If we use leverage to partially finance our investments, through borrowing from banks and other lenders, you will experience increased risks of investing in our common shares. If the value of our assets increases, leverage would cause the NAV attributable to each of the classes of our common shares to increase more sharply than it would have had we not leveraged. Conversely, if the value of our assets decreases, leverage would cause NAV to decline more sharply than it otherwise would have had we not leveraged. Similarly, any increase in our income in excess of interest payable on the borrowed funds would cause our net income to increase more than it would without the leverage, while any decrease in our income would cause net income to decline more sharply than it would have had we not borrowed. Such a decline could negatively affect our ability to make common share distribution payments. Leverage is generally considered a speculative investment technique. Our ability to execute our strategy using leverage depends on various conditions in the financing markets that are beyond our control, including liquidity and credit spreads. In addition, the decision to utilize leverage will increase our assets and, as a result, will increase the amount of advisory fees payable to the Adviser.

 ***We may use repurchase agreements to finance our investments, which may expose us to risks that could result in losses, including due to cross-defaults and cross-collateralization under warehouse repurchase and credit facilities.***

We may finance our acquisition and origination of mortgage loans and other portfolio assets under warehouse repurchase and credit facilities with various lenders. Such repurchase and credit facilities may be

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entered into by special purpose vehicles directly or indirectly owned and controlled by us. Although each transaction under our repurchase agreements has its own specific terms, such as identification of the assets subject to the transaction, sale price, repurchase price and rate, we remain exposed to the credit risk of each asset because we must purchase the asset from the applicable counterparty on a specified date. In addition, repurchase agreements involve the risk that the counterparty may liquidate the assets underlying the repurchase agreements following the occurrence of an event of default under the applicable repurchase agreement by us. Furthermore, the counterparty may require us to provide additional margin in the form of cash or other forms of collateral under the terms of the applicable repurchase agreement. In addition, the interest costs and other fees associated with repurchase agreement transactions may adversely affect our results of operations and financial condition, and, in some cases, we may be worse off than if we had not used such instruments.

We also expect to provide guaranties to the lenders under which we could be required to guarantee certain amounts of the balance outstanding from time to time under such repurchase and credit facilities by the special purpose vehicle sellers or borrowers. We expect to also be liable under such guaranties for customary "bad-boy" events. The repurchase and credit facilities could also include customary cross-default provisions pursuant to which the occurrence of an event of default under any such facility (including breach of a financial covenant applicable to us under a guaranty) will trigger an event of default under all of the repurchase and credit facilities and allow the lenders to accelerate payment of all obligations due under such facilities. In addition, all loans and assets subject to repurchase transactions or pledged under an individual repurchase or credit facility will be cross-collateralized as security for such facility. Thus, the poor performance or non-performance of an individual loan or asset included as collateral for a repurchase or credit facility could result in us losing our interests in all loans and assets in the collateral pool for such facility.

As of November 25, 2025, we are party to warehouse repurchase facilities with Churchill and Wells Fargo. The repurchase facility with Churchill has been established to finance RTLs. The repurchase facility with Wells Fargo has been established to finance RTLs and NQM loans. We provide a guaranty for certain "bad boy" events for each facility. The guaranty could become a full recourse guaranty in the event of certain insolvency related events in respect of us or any subsidiary party to such facility. The warehouse facilities are uncommitted and our counterparty may decline funding for any or no reason. In each facility, we are subject to certain financial maintenance covenants that require that we maintain a minimum amount of liquidity and a minimum net asset value. If we fail to satisfy any such financial maintenance covenant, an event of default will occur unless otherwise waived. The tenor of each facility is shorter than the term of the loans financed thereunder. Accordingly, there is a risk that we will be unable to refinance our facilities on desirable terms or at all.

 ***Our short-term borrowings often require us to provide additional collateral when the fair market value of our collateral decreases, and these calls for collateral could significantly impact our liquidity position.***

We expect to use short-term borrowing through repurchase agreements, credit facilities and other arrangements that put our assets and financial condition at risk. We may need to use such short-term borrowings for extended periods of time to the extent we are unable to access long-term financing. Repurchase agreements economically resemble short-term, variable-rate financing and usually require the maintenance of specific loan-to-collateral value ratios. If the market value of the assets subject to a repurchase agreement decline, we may be required to provide additional collateral or make cash payments to maintain the loan-to-collateral value ratio. If we are unable to provide such collateral or cash repayments, the lender may accelerate the loan and we may be required to liquidate the collateral. In a weakening economic environment, or in an environment of widening credit spreads, we would generally expect the value of the real estate debt or securities that serve as collateral for our short-term borrowings to decline, and in such a scenario, it is likely that the terms of our short-term borrowings would require us to provide additional collateral or to make partial repayment, which amounts could be substantial.

Further, such borrowings may require us to maintain a certain amount of cash reserves or to set aside unleveraged assets sufficient to maintain a specified liquidity position that would allow us to satisfy our collateral obligations. In addition, such short-term borrowing facilities may limit the length of time that any given asset may be used as eligible collateral, and these short-term borrowing arrangements may also be restricted to financing certain types of assets, such as first mortgage loans, which could impact our asset

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allocation. As a result, we may not be able to leverage our assets as fully as we would like, which could reduce our return on assets. In the event that we are unable to meet these collateral obligations, our financial condition could deteriorate rapidly.

 ***During periods of rising interest rates, our interest expense increases may outpace any increases in interest we earn on our assets, and the value of our assets may decrease.***

Our operating results will depend in large part on the income from our assets, reduced by financing costs. Income from our assets may respond more slowly to interest rate fluctuations than the cost of our borrowings. In a period of rising interest rates, our interest expense on floating-rate debt would increase, while any additional interest income we earn on our floating-rate investments may not compensate for such increase in interest expense. Consequently, changes in interest rates, particularly short-term interest rates, may significantly influence our net income. Increases in these rates will tend to decrease our net income and the market value of our assets. Similarly, in a period of declining interest rates, our interest income on floating-rate investments would generally decrease, and interest rate floors on our floating-rate investments may not align with the interest rate floors on our floating-rate debt to compensate for such a decrease in interest income. Interest rate fluctuations resulting in our interest expense exceeding the income from our assets would result in operating losses for us and may limit our ability to make distributions to our shareholders. In addition, if we need to repay existing borrowings during periods of rising interest rates, we could be required to liquidate one or more of our investments at times that may not permit realization of the maximum return on those investments, which would adversely affect our profitability.

#### Changes in interest rates may affect our cost of capital and net investment income.
Since we use debt to finance a portion of our investments, our net investment income depends, in part, upon the difference between the rate at which we borrow funds and the rate at which we invest those funds. As a result, we can offer no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income. In periods of rising interest rates when we have debt outstanding, our cost of funds will increase, which could reduce our net investment income. We expect that our long-term fixed-rate investments will be financed primarily with equity and long-term debt. We may use interest rate risk management techniques in an effort to limit our exposure to interest rate fluctuations. These techniques may include various interest rate hedging activities. These activities may limit our ability to participate in the benefits of lower interest rates with respect to the hedged portfolio. Adverse developments resulting from changes in interest rates or hedging transactions could have a material adverse effect on us.

A rise in the general level of interest rates can be expected to lead to higher interest rates applicable to our debt investments. Accordingly, an increase in interest rates would make it easier for us to meet or exceed the performance fee hurdle rate which is used for purposes of calculating the performance fees payable to the Adviser and may result in a substantial increase of the amount of such performance fees.

#### We may not be able to access financing sources on attractive terms which could adversely affect our ability to execute our business plan.
We require significant outside capital to fund and grow our business. Our business may be adversely affected by disruptions in the debt and equity capital markets and institutional lending market, including the lack of access to capital or prohibitively high costs of obtaining or replacing capital. A primary source of liquidity for companies in the real estate industry has been the debt and equity capital markets. Access to the capital markets and other sources of liquidity was severely disrupted during the relatively recent global credit crisis and, despite some recent improvements, the markets could suffer another severe downturn and another liquidity crisis could emerge. Based on the current conditions, we do not know whether any sources of capital, other than those currently utilized by us, will be available to us in the future on terms that are acceptable to us. If we cannot obtain sufficient debt and equity capital on acceptable terms, our business and our ability to operate could be severely impacted.

 ***Our access to external sources of capital is subject to factors outside of our control and could materially and adversely affect our growth prospects and our ability to take advantage of strategic opportunities, satisfy debt obligations and make distributions to our shareholders.***

In order to maintain our qualification as a REIT, we are generally required under the Code to annually distribute at least 90% of our REIT taxable income, determined without regard to the dividends paid

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deduction and excluding any net capital gain. In addition, we will be subject to U.S. federal corporate income tax to the extent that we distribute less than 100% of our REIT taxable income, including any net capital gains. Because of these distribution requirements, we may not be able to fund future capital needs, including acquisition financing, from operating cash flow due to differences in timing between the actual receipt of cash and inclusion of income for U.S. federal income tax purposes or the effect of nondeductible capital expenditures, the creation of reserves, certain restrictions on distributions under loan documents or required debt or amortization payments. Consequently, in order to meet the REIT distribution requirements and maintain our REIT status and to avoid the payment of income and excise taxes, we may need to borrow funds on a short-term basis in order to meet the REIT distribution requirements even if the then-prevailing market conditions are not favorable for these borrowings.

Therefore, we may need to rely on third-party sources to fund our capital needs. We may not be able to obtain financing on favorable terms or at all. In addition, any additional debt we incur will increase our leverage and debt service obligations. Our access to third-party sources of capital depends, in part, on:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • general market conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the market's perception of our growth potential;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our current debt levels;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our current and expected future earnings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our cash flow and dividends; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the NAV of our shares.

If we cannot obtain capital from third-party sources, we may not be able to acquire assets when strategic opportunities exist, meet the capital and operating needs of our existing assets or satisfy our debt service obligations.

To the extent that capital is not available to acquire additional assets, profits may not be realized or their realization may be delayed, which could result in an earnings stream that is less predictable than some of our competitors or a failure to meet our projected earnings and distributable cash flow levels in a particular reporting period. Such a failure to meet our projected earnings and distributable cash flow levels in a particular reporting period could have a material adverse effect on us.

Additionally, we may seek to borrow certain amounts from certain of our affiliates. However, our affiliates are under no obligation to lend any amounts to us and there can be no assurance that any of our affiliates will provide any such financings to us.

#### We may be affected by our inability to access or renew short-term financing credit facilities in connection with an anticipated portfolio-level financing.
In some cases, relatively short-term credit facilities may be used to finance the acquisition of assets until a sufficient quantity of assets is accumulated, at which time the assets are refinanced through portfolio-level financing, which may include a securitization. As a result, we are subject to the risk that we will not be able to acquire, during the period that the short-term facilities are available, a sufficient amount of eligible assets for the purposes of a portfolio-level financing. We also bear the risk that we will not be able to obtain such short-term credit facilities or may not be able to renew any short-term credit facilities after they expire should we find it necessary to obtain extensions for such short-term credit facilities to allow more time to seek and acquire the necessary eligible instruments for a long-term financing. Our inability to renew or extend these short-term credit facilities may require us to seek more costly financing for these assets or to lose the ability to utilize them in connection with a portfolio-level financing. We may provide guarantees in support of credit facilities used to acquire assets, and there can be no assurance that any recourse exercised under such guarantees will not have adverse consequences for us. The occurrence of the foregoing could have a material adverse effect on us.

 ***We may not successfully align the maturities of our liabilities with the maturities on our assets, which could harm our operating results and financial condition.***

Our general financing strategy is focused on the use of "match-funded" structures. This means that we seek to align the maturities of our liabilities with the maturities on our assets in order to manage the risks of

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being forced to refinance our liabilities prior to the maturities of our assets. In addition, we plan to match interest rates on our assets with like-kind borrowings, so fixed-rate investments are financed with fixed-rate borrowings and floating-rate assets are financed with floating-rate borrowings, directly or indirectly through the use of interest rate swaps, caps and other financial instruments or through a combination of these strategies. We may fail to appropriately employ match-funded structures on favorable terms, or at all. We may also determine not to pursue a fully match-funded strategy with respect to a portion of our financings for a variety of reasons. If we fail to appropriately employ match-funded strategies or determine not to pursue such a strategy, our exposure to interest rate volatility and exposure to matching liabilities prior to the maturity of the corresponding asset may increase substantially which could harm our operating results, liquidity and financial condition.

#### We may utilize non-recourse securitizations to finance our investments, which may expose us to risks that could result in losses.
We may utilize non-recourse securitizations of certain of our investments to generate cash for funding new investments and for other purposes. Such financing generally involves creating a special purpose vehicle, contributing a pool of our investments to the entity, and selling interests in the entity on a non-recourse basis to purchasers (whom we would expect to be willing to accept a lower interest rate to invest in investment-grade loan pools). We would expect to retain all or a portion of the equity and potentially other tranches in the securitized pool of portfolio investments. Prior to any such financings, we may use other financing facilities to finance the acquisition of investments until a sufficient quantity of investments had been accumulated, at which time we would refinance these facilities through a securitization, such as CLOs. The inability to consummate securitizations to finance our investments could require us to seek other forms of less attractive financing, which could adversely affect our performance and our ability to grow our business. Moreover, conditions in the capital markets, including volatility and disruption in the capital and credit markets, may not permit a securitization at any particular time or may make the issuance of any such securitization less attractive to us even when we do have sufficient eligible assets. We may also suffer losses if the value of the mortgage loans we acquire declines prior to securitization. In addition, we may suffer a loss due to the incurrence of transaction costs related to executing these transactions. To the extent that we incur a loss executing or participating in future securitizations for the reasons described above or for other reasons, it could materially and adversely impact our business and financial condition. The inability to securitize our portfolio may hurt our performance and our ability to grow our business.

#### Restrictive covenants relating to our operations may have adverse effects on us.
A credit facility lender may impose restrictions on us that would affect our ability to incur additional debt, originate loans, reduce liquidity below certain levels, make distributions to our shareholders and impact our flexibility to determine our operating policies and investment strategies. For example, our loan agreements may contain negative covenants that limit, among other things, our ability to distribute more than a certain amount of our net cash flow to our shareholders, dispose of or refinance loans and enter into transactions with affiliates. In addition, our loan agreements may contain negative covenants that limit leverage beyond certain amounts contrary to our leverage ratio goals. If we fail to meet or satisfy any of these covenants, we would be in default under such agreements, and a lender could elect to declare outstanding amounts due and payable, terminate its commitment, require the posting of additional collateral and/or enforce its interests against existing collateral.

 ***There are risks associated with entering into financing arrangements, such as warehouse repurchase facilities and credit facilities, and such arrangements may contain provisions that expose us to particular risk of loss.***

To the extent that we enter into future financing arrangements, such as warehouse repurchase facilities and credit facilities, to finance our acquisition and origination of real estate debt and residential loans and assets, we are and in the future will be subject to various risks. For example, debt service requirements may deplete cash flows and relatively small changes in the overall value of investments will have a magnified impact on us. If an investment were unable to generate sufficient cash flow to meet principal and interest payments on its indebtedness, the value of our investment in such investment would be significantly reduced or even eliminated. The amount of debt financing may restrict the amount of funds available for distribution to investors.

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In the event that we enter into additional warehouse repurchase facilities in the future, each transaction under such repurchase agreements will have its own specific terms, such as identification of the assets subject to the transaction, sale price, repurchase price and rate, but we remain exposed to the credit risk of each asset because we must purchase the asset from the applicable counterparty on a specified date. In addition, repurchase agreements involve the risk that the counterparty may liquidate the assets underlying the repurchase agreements following the occurrence of an event of default under the applicable repurchase agreement by us. Furthermore, the counterparty may require us to provide additional margin in the form of cash or other forms of collateral under the terms of the applicable repurchase agreement. In addition, the interest costs and other fees associated with repurchase agreement transactions may adversely affect our results of operations and financial condition, and, in some cases, we may be worse off than if we had not used such instruments.

In addition, all loans and assets subject to repurchase transactions or pledged under an individual repurchase or credit facility will be cross-collateralized as security for such facility. Thus, the poor performance or non-performance of an individual loan or asset included as collateral for a repurchase or credit facility could result in us losing our interests in all loans and assets in the collateral pool for such facility.

Furthermore, any cross-default provisions could magnify the effect of an individual default. If a cross-default provision were exercised, this could result in a substantial loss. Also, we may, in the future, enter into financing arrangements that contain financial covenants that could require us to maintain certain financial requirements. If we were to breach the financial covenants contained in any such financing arrangement, we might be required to repay such debt immediately in whole or in part, together with any attendant costs, and we might be forced to sell some of our assets to fund such costs. We might also be required to reduce or suspend distributions to our investors. Such financial covenants may also limit our ability to adopt the financial structure (e.g., by reducing levels of borrowing) which we would have adopted in the absence of such covenants.

To the extent we choose to use special purpose entities for individual transactions to reduce recourse risk, the bona fides of such entities may be subject to later challenge based on a number of theories, including veil piercing, substantive consolidation and other grounds. We may provide either direct or contingent guarantees in support of credit facilities used to acquire investments, fund expenses relating to investments and/or in connection with derivative transactions, and there can be no assurance that such guarantees will not have a material adverse effect on us.

We may provide guaranties to the lenders under which we expect to guarantee amounts of the balance outstanding from time to time under such repurchase and credit facilities by the special purpose vehicle sellers or borrowers, and we expect to be liable under such guaranties for customary "bad-boy" events.

As of November 25, 2025, we are party to warehouse repurchase facilities with Churchill and Wells Fargo. The repurchase facility with Churchill has been established to finance RTLs. The repurchase facility with Wells Fargo has been established to finance RTLs and NQM loans. We provide a guaranty for certain "bad boy" events for each facility. The guaranty could become a full recourse guaranty in the event of certain insolvency related events in respect of us or any subsidiary party to such facility. The warehouse facilities are uncommitted and our counterparty may decline funding for any or no reason. In each facility, we are subject to certain financial maintenance covenants that require that we maintain a minimum amount of liquidity and a minimum net asset value. If we fail to satisfy any such financial maintenance covenant, an event of default will occur unless otherwise waived. The tenor of each facility is shorter than the term of the loans financed thereunder. Accordingly, there is a risk that we will be unable to refinance our facilities on desirable terms or at all.

 ***We are subject to certain risks related to using secured leverage, including having such parties seeking recourse against our assets generally, and such recourse may not be limited to any particular investment or asset.***

To the extent that we determine to utilize leverage, one or more investments or our other assets may be pledged to secure the indebtedness. If we become subject to a liability, parties seeking to have the liability satisfied may have recourse to our assets generally and such recourse may not be limited to any particular investment or asset, such as the loan or property giving rise to the liability. To the extent we choose to use special purpose entities for individual transactions to reduce recourse risk, the bona fides of such entities

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may be subject to later challenge based on a number of theories, including veil piercing, substantive consolidation and other grounds. We may provide either direct or contingent guarantees in support of credit facilities used to acquire investments, fund expenses relating to investments and/or in connection with derivative transactions, and there can be no assurance that such guarantees will not have a material adverse effect on us.

#### If we enter into financing arrangements involving balloon payment obligations, it may adversely affect our ability to make distributions to our shareholders.
Some of our financing arrangements may require us to make a lump-sum or "balloon" payment at maturity. Our ability to make a balloon payment is uncertain and may depend upon our ability to obtain replacement financing or our ability to sell particular properties. At the time the balloon payment is due, we may or may not be able to refinance the balloon payment on terms as favorable as the original loan or sell the particular property at a price sufficient to make the balloon payment. Such a refinancing would be dependent upon interest rates and lenders' policies at the time of refinancing, economic conditions in general and the value of the underlying properties in particular. The effect of a refinancing or sale could affect the rate of return to shareholders and the projected time of disposition of our assets.

#### Seller financing increase risks associated with the use of leverage.
We may utilize seller financing (i.e., make investments that are financed, in whole or in part, by us borrowing from the sellers of the investments or their affiliates) and other one-off financing solutions on a case-by-case basis. Providers of seller financing may be motivated to sell a particular asset, and may be willing to provide a prospective purchaser of such asset with more favorable pricing and/or greater amounts of leverage than would otherwise be the case if such purchaser sought financing from unrelated, third-party providers of leverage. To the extent that we are able to obtain seller financing in connection with a particular investment, we may seek to employ more leverage than would otherwise be the case in the absence of such seller financing. The use of seller financing will increase risks associated with the use of leverage generally, including the risks associated with such investment, including, without limitation, the risk of loss of that investment and the exposure of such investment to adverse economic factors such as deteriorations in overall conditions in the economy, the real estate markets or in the condition of the particular obligor.

 ***If we draw on a line of credit or otherwise incur leverage to fund repurchases or for any other reason, our asset-level leverage ratio could increase beyond our target.***

We may seek to obtain a line of credit in an effort to provide for a ready source of liquidity for any business purpose, including to fund repurchases of our common shares in the event that repurchase requests exceed our operating cash flow and/or net proceeds from our continuous Private Offering. There can be no assurances that we will be able to obtain a line of credit on financially reasonable terms. In addition, we may not be able to obtain lines of credit of an appropriate size for our business. If we borrow under a line of credit to fund repurchases of our common shares, our financial leverage will increase and may exceed our target asset-level leverage ratio. Our leverage may remain at the higher level until we receive additional net proceeds from our continuous Private Offering or generate sufficient operating cash flow or proceeds from asset sales to repay outstanding indebtedness. In connection with a line of credit, distributions may be subordinated to payments required in connection with any indebtedness contemplated thereby. Increases in interest rates could increase the amount of our loan payments and adversely affect our ability to make distributions to our shareholders.

Interest we pay on our loan obligations will reduce cash available for distributions. We will likely obtain variable rate loans, and as a result, increases in interest rates could increase our interest costs, which could reduce our cash flows and our ability to make distributions to you. In addition, if we need to repay existing loans during periods of rising interest rates, we could be required to liquidate one or more of our investments at times that may not permit realization of the maximum return on such investments.

#### We may invest in derivatives, which involve numerous risks.
Subject to maintaining our status as a REIT and in connection with any financing arrangements we put in place, we may, from time to time, engage in a variety of hedging transactions that seek to mitigate

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effects of fluctuations in interest rates and their effects on our cash flows. These hedging transactions could take a variety of forms, including interest rate swaps, total return swaps, credit default swaps and indices thereon, short sales (typically related to treasuries), futures, options and similar financial instruments.

The ability to successfully use derivative investments depends on the ability of the Adviser. The skills needed to employ derivatives strategies are different from those needed to select portfolio investments and, in connection with such strategies, the Adviser must make predictions with respect to market conditions, liquidity, market values, interest rates or other applicable factors, which may be inaccurate. The use of derivative investments may require us to sell or purchase portfolio investments at inopportune times or for prices below or above the current market values, may limit the amount of appreciation we can realize on an investment or may cause us to hold a security that we might otherwise want to sell. We will also be subject to credit risk with respect to the counterparties to our derivatives contracts (whether a clearing corporation in the case of exchange-traded instruments or another third party in the case of over-the-counter instruments). In addition, the use of derivatives will be subject to additional unique risks associated with such instruments including a lack of sufficient asset correlation, heightened volatility in reference to interest rates or prices of reference instruments and duration/term mismatch, each of which may create additional risk of loss.

#### We may face risks associated with options, including losing our entire investment due to the volatility of the underlying security or currency.
As part of our hedging program, we may purchase and sell ("**write**") options on securities and currencies on national and international securities exchanges and in the domestic and international over-the-counter markets. The seller ("**writer**") of a put option which is covered (e.g., the writer has a short position in the underlying security or currency) assumes the risk of an increase in the market price of the underlying security or currency above the sales price (in establishing the short position) of the underlying security or currency, plus the premium received, and gives up the opportunity for gain on the underlying security or currency below the exercise price of the option. The buyer of a put option assumes the risk of losing its entire investment in the put option. The writer of a call option which is covered (e.g., the writer holds the underlying security or currency) assumes the risk of a decline in the market price of the underlying security or currency less the premium received, and gives up the opportunity for gain on the underlying security or currency above the exercise price of the option. The buyer of a call option assumes the risk of losing its entire investment in the call option.

Options on securities may be cash settled, settled by physical delivery or settled by entering into a closing purchase transaction. In entering into a closing purchase transaction, we may be subject to the risk

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of loss to the extent that the premium paid for entering into such closing purchase transaction exceeds the premium received when the option was written, which could have an adverse effect on our business, financial conditions, results of operations and cash flows.

#### We may face risks associated with our subscription-based credit facility.
As described elsewhere in this Registration Statement, we are permitted to enter into a subscription line with one or more lenders in order to finance our operations, including the acquisition, financing or refinancing of our investments. REIT-level borrowing subjects shareholders to certain risks and costs.

In addition, REIT-level borrowing will result in additional expenses that will be borne by shareholders. These expenses typically include interest on the amounts borrowed, an upfront fee for establishing a subscription line, and other one-time and recurring fees and/or expenses, including amendment fees as well as legal fees relating to the establishment, structuring and negotiation of the terms of the borrowing facility (and any amendments or renegotiation thereof), as well as expenses relating to maintaining, renegotiating, amending or terminating the facility.

Because a subscription line's interest rate is typically based in part on the creditworthiness of the shareholders and the terms of our Declaration of Trust, it may be higher than the interest rate a shareholder could obtain individually. To the extent a particular shareholder's cost of capital is lower than our cost of borrowing, REIT-level borrowing can negatively impact a shareholder's overall individual financial returns.

#### Risks Related to our Relationship with the Adviser and the Management Agreement
 ***We depend on the Adviser to select our investments and otherwise conduct our business, and any material adverse change in its financial condition or our relationship with the Adviser could have a material adverse effect on us.***

Our success is dependent upon our relationship with, and the performance of, the Adviser in the acquisition and management of our real estate portfolio and our corporate operations. See "— *Risks Related to Our Business and Operations — The Adviser manages our portfolio pursuant to very broad investment guidelines and generally is not required to seek the approval of our Board for each investment, financing or asset allocation decision made by it, which may result in our making riskier investments and, in turn, may materially and adversely affect us*." The Adviser may suffer or become distracted by adverse financial or operational problems in connection with its business and activities unrelated to us and over which we have no control. Should the Adviser fail to allocate sufficient resources to perform its responsibilities to us for any reason, we may be unable to achieve our investment objectives or to pay distributions to our shareholders.

#### The past performance of the Adviser's senior management is not a predictor of our future results.
Neither the track record of the senior management of the Adviser nor the performance of the Adviser will imply or predict (directly or indirectly) any level of our future performance. Our performance is dependent upon future events and is, therefore, inherently uncertain. Past performance cannot be relied upon to predict future events due to a variety of factors, including, without limitation, varying business strategies, different local and national economic circumstances, different supply and demand characteristics, varying degrees of competition and varying circumstances pertaining to the real estate capital markets.

#### The Adviser's inability to retain the services of key professionals could hurt our performance.
Our success depends to a significant degree upon the contributions of certain key professionals employed by the Adviser, each of whom would be difficult to replace. There is ever increasing competition among alternative asset firms, financial institutions, private equity firms, investment advisers, investment managers, real estate investment companies, REITs and other industry participants for hiring and retaining qualified investment professionals and there can be no assurance that such professionals will continue to be associated with us or the Adviser, particularly in light of our perpetual-life nature, or that replacements will perform well. Neither we nor the Adviser have employment agreements with these individuals and they may not remain associated with us. If any of these persons were to cease their association with us, our operating results could suffer. Our future success depends, in large part, upon the Adviser's ability to attract

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 *and retain highly skilled managerial, operational and marketing professionals. If the Adviser loses or is unable to obtain the services of highly skilled professionals, our ability to implement our investment strategies could be delayed or hindered. See "— Risks Related to Our Business and Operations — We are dependent on the Adviser and its affiliates and their key personnel who provide services to us through the Management Agreement, and we may not find a suitable replacement for the Adviser if the Management Agreement is terminated, or for these key personnel if they leave us or otherwise become unavailable to us."* 

 ***The time and resources that individuals associated with the Adviser devote to us may be diverted, and we may face additional competition due to, among other things, the fact that neither our Sponsor or Adviser nor each of their affiliates is prohibited from raising money for or managing another entity that makes the same types of investments that we target.***

Our Sponsor, the Adviser and each of their affiliates is not prohibited from raising money for and managing future investment entities, in addition to the Sponsor's clients, that make the same or similar types of investments as those we target. As a result, the time and resources that the Adviser devotes to us may be diverted, and during times of intense activity in other investment programs they may devote less time and resources to our business than is necessary or appropriate. In addition, we may compete with any such investment entity also managed by the Adviser or its affiliates for the same investors and investment opportunities. Furthermore, members of the Investment Committee are officers of the Sponsor and/or the Adviser and will devote a portion of their time to the operations of the Sponsor.

 ***The agreements entered into with the Adviser and its affiliates were not determined on an arm's-length basis and therefore may not be on the same terms we could achieve from a third party.***

The compensation paid to the Adviser and its affiliates for services they provide us was not determined on an arm's-length basis. All service agreements, contracts or arrangements between or among the Adviser, their affiliates and us were not negotiated at arm's-length. Such agreements include the Management Agreement and any property related corporate services and other agreements we may enter into with affiliates of the Adviser from time to time. Therefore, such agreements may not be on the same terms as we could achieve from a third party and there can be no assurance that such compensation reflects the market value of the services provided by the Adviser and its affiliates.

#### There are conflicts of interest in our relationships with the Adviser, which could result in outcomes that are not in our best interests.
We are subject to conflicts of interest arising out of our relationship with the Adviser. Pursuant to the Management Agreement, the Adviser is obligated to supply us with our management team. However, the Adviser is not obligated to dedicate any specific personnel (including investment personnel) exclusively to us, nor are Sponsor personnel provided to us by the Adviser obligated to dedicate any specific portion of their time to the management of our business. Additionally, the Adviser is an affiliate of our Sponsor.

We may acquire or sell assets in which our Sponsor or its affiliates may have an interest. Although such acquisitions or dispositions may present conflicts of interest, we nonetheless may pursue and consummate such transactions, subject to any requirements in our organizational documents, including any required approvals by our independent trustees. Additionally, we may engage in transactions directly with our Sponsor, the Adviser or their affiliates, subject to any requirements in our organizational documents. When we acquire an asset from our Sponsor or one of its affiliates, or sell an asset to our Sponsor or one of its affiliates, the purchase price we pay to our Sponsor or one of its affiliates or the purchase price paid to us by the Sponsor or one of its affiliates may be higher or lower, respectively, than the purchase price that would have been paid to or by us if the transaction were the result of arms' length negotiations with an unaffiliated third party. Our Sponsor will face conflicts of interest in determining this purchase price and there is no assurance that any conflict will be resolved in our favor.

Additionally, our Sponsor sponsors other investment funds and intends to sponsor additional investment funds in the future and the economic terms of such funds may be more advantageous to Sponsor than the economic terms received by the Adviser. As such, the Sponsor may be incentivized to prioritize the acquisition or disposition of any asset by such funds over us.

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The Sponsor also faces conflicts of interest with respect to our continuous Private Offering. As our NAV grows the Adviser's management fee will grow as well and there will also be the potential for a larger performance fee. This may incentivize the Adviser and the Sponsor to continue our Private Offering even at times when it is not otherwise beneficial to us.

See "*Item 7. Certain Relationships and Related Transactions, and Director Independence*."

 ***Our investment objectives and strategy may overlap with the objectives or strategy of the Sponsor and the Sponsor's affiliates, and the Sponsor and affiliates of the Sponsor may receive priority with respect to certain investments.***

As a general matter, it is not expected that all investment opportunities identified by the Adviser that are suitable for us will be made available to us. We expect that certain investments that would be suitable for us will be retained by the Sponsor or affiliates that originated such investments or will be sold to third parties and therefore will not be available for investment and will not be part of the Adviser's investment allocation protocols. The Sponsor has established, and the Sponsor and the Adviser will be permitted, in their sole discretion, in the future, to establish Other Rithm Accounts with investment objectives, mandates and policies that are the same or substantially similar to and/or overlap with, ours, in each case, without the consent of, or notice to, any shareholder. Consistent with the Adviser's allocation policy, from time to time, the Adviser will allocate investment opportunities that fall within our investment objectives (including RTLs) between us, the Sponsor, Rithm Affiliates and/or Other Rithm Accounts, and may allocate up to 100% of such an opportunity to Rithm Affiliates, including the Sponsor, and/or Other Rithm Accounts. In this regard, we are expected, from time to time, to invest on a side-by-side basis with Rithm Affiliates, including the Sponsor, and Other Rithm Accounts. In addition, from time to time, Rithm Affiliates, including the Sponsor, and Other Rithm Accounts, will receive an allocation in a pool of loans (including RTLs and NQM loans) which are not allocated to us. For instance, we expect that certain investment opportunities in RTLs and NQM loans will be allocated first to Sponsor securitizations and, thereafter, to us. In determining such allocations, the Adviser takes into account such factors as it deems appropriate, including, without limitation: investment program, objectives and focus; investment capacity; investment sourcing; target investment size and target returns; investment guidelines, restrictions and concentration limits; leverage considerations; available cash, including the timing of capital inflows and outflows and anticipated capital commitments; timing of investment closing; tax, regulatory, policy and procedural considerations (including internal policies and procedures); tolerance for volatility and risk as determined by the Adviser from time to time; desired concentration, exposure and diversification targets; liquidity needs; investment rights and other contractual obligations; the management of actual and potential conflicts of interest; performance considerations; domicile; and other factors that the Adviser believes are consistent with the fair and equitable treatment of us, the Sponsor, Rithm Affiliates and any Other Rithm Accounts over time. The Adviser may allocate investment opportunities among us, the Sponsor, Rithm Affiliates and any Other Rithm Accounts based on anticipated or projected investment characteristics based solely on its expectations at the time an investment is made. However, there can be no assurances that the characteristics of an investment will ultimately match the Adviser's expectations at the time such investment was made, and such investment may, as a result, prove to have (or have not) been suitable for us.

The Sponsor, Rithm Affiliates and Other Rithm Accounts are expected to have terms that differ from our terms and may participate in investments on different terms than us, at different levels of the capital structure and/or after the closing of our investments. Furthermore, Rithm Affiliates, including the Sponsor, and Other Rithm Accounts may from time to time be entitled to priority allocations of certain investment opportunities over us (or another Other Rithm Account). Accordingly, our participation in investments with Rithm Affiliates, including the Sponsor, and Other Rithm Accounts is expected to vary on an investment-by-investment basis and there may be investments within our investment objective made by the Sponsor or the Adviser, on behalf of such Rithm Affiliates, including the Sponsor, or Other Rithm Accounts, in which we do not participate or does not participate to the same extent as other investments.

The Sponsor and the Adviser may also give advice and recommend assets, instruments, loans, securities or other investments to Rithm Affiliates or Other Rithm Accounts that differ from the advice given to, or assets, instruments, loans, securities or other investments recommended or bought for, us, even though the investment objectives of us, such Rithm Affiliates and such Other Rithm Accounts may be the same or

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substantially similar. For example, we may elect to sell all or part of an investment in an asset while the Sponsor or a Rithm Affiliate or an Other Rithm Account continues to hold its investment in the same asset (or increases its exposure to it) (and vice versa).

The Sponsor and the Adviser may agree in the future to address, certain legal, tax, regulatory or other considerations applicable to their respective investors that will impact the allocation of investment opportunities among us, the Sponsor, Rithm Affiliates and Other Rithm Accounts and otherwise impact the time and terms of investment and divestment determinations with respect to us, the Sponsor, Rithm Affiliates and such Other Rithm Accounts.

Rithm Affiliates, including the Sponsor, engage, and in the future may engage, in a broad spectrum of activities, including direct investment activities and investment advisory activities, and have investment activities (including principal investments by the Sponsor or its affiliates for their own account) on behalf of both persons or entities to which they provide investment advice on a principal basis, that are independent from, and may from time to time conflict or compete with, our investment activities.

The Acquired Managers have established, and will be permitted in the future to establish Acquired Manager Accounts with investment objectives, mandates and policies that are substantially similar to and/or overlap with, ours, in each case, without the consent of, or notice to, any shareholder. As a result, the potential and actual conflicts of interest discussed in this section will also apply in respect of Acquired Managers and Acquired Manager Accounts, and such conflicts may be exacerbated in the future to the extent the operations of the Sponsor and Acquired Manager Account businesses are further integrated.

#### The recommendations given to us by the Adviser may differ from those rendered to the Sponsor's other clients.
Our Sponsor and its affiliates may give advice and recommend an investment to Other Rithm Accounts which may differ from advice given to, or investments recommended or bought for, us by the Adviser even though such other clients' investment objectives may be similar to ours, which could have a material adverse effect on us. It is anticipated that certain investments that would be suitable for us will be retained by the Sponsor or affiliates that originated such investments or will be sold to third parties and therefore will not be available for investment and will not be part of the Adviser's investment allocation protocols.

 ***Our Declaration of Trust contains a provision that expressly permits the Sponsor and its affiliates and our trustees and officers affiliated with the Sponsor to pursue transactions that may be competitive with, or complementary to, our business.***

Our Declaration of Trust provides that if the Sponsor, any of its affiliates or any of our trustees or officers who is also an officer, employee or agent of the Sponsor or any of its affiliates, acquires knowledge of a potential business opportunity, we renounce any potential interest or expectation in, or right to be offered or to participate in, such business opportunity. Accordingly, the Sponsor and its affiliates and our trustees and officers who is also an officer, employee or agent of the Sponsor or any of its affiliates may exploit any business opportunity or direct such opportunity to any person or entity other than us, including acquisition opportunities that may be competitive with, or complementary to, our business. As a result, those acquisition opportunities may not be available to us and could materially and adversely affect us.

 ***The Sponsor, Adviser and their respective affiliates may face conflicts of interest with respect to services performed for obligors to which we may have exposure in the case we are required to act as landlord due to foreclosures on the properties securing our investments.***

Our Sponsor, Adviser and their respective affiliates may provide a broad range of financial services to companies that may be tenants of the properties securing our investments, including providing arrangement, syndication, origination, structuring and other services to such companies, and will generally be paid fees for such services, in compliance with applicable law, by the companies. Any payment received by the Adviser or its affiliates for providing these services will not be shared with us and may be received before we realize a return on our investment. In addition, we may enter into sale leaseback transactions with companies to which Other Rithm Accounts provide financing or hold an interest. In the event of a restructuring, such Other Rithm Accounts may be a secured lender of the company and we would be an unsecured lender. Our Sponsor could, in certain circumstances, have an incentive not to pursue actions against a tenant that

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would be in our best interest. While our Sponsor will seek to resolve any such conflicts in a fair and equitable manner in accordance with its current policies and procedures with respect to conflicts resolution among the Other Rithm Accounts, such transactions are not required to be presented to our Board for approval (unless otherwise required by our Declaration of Trust or investment guidelines), and there can be no assurance that any conflicts will be resolved in our favor.

#### We pay management fees and expenses to the Adviser, which payments increase the risk that you will not earn a profit on your investment.
Pursuant to the Management Agreement, we pay significant fees to the Adviser. The management fee payable to the Adviser pursuant to the Management Agreement is payable regardless of the performance of our portfolio, which may reduce the Adviser's incentive to devote the time and effort increasing our total return. Additionally, the payment of the management fee may reduce our total return.

Because the management fee is based on our NAV, the Adviser may also be motivated to accelerate investments in order to increase NAV or, similarly, delay or curtail repurchases to maintain a higher NAV, and the Adviser and/or the dealer manager, if any, may also be incentivized to sell more of our common shares to increase aggregate NAV, which would, in each case, increase amounts payable to the Adviser, but may make it more difficult for us to efficiently deploy new capital. In addition, we are required to reimburse the Adviser or its affiliates for certain costs and expenses incurred by it and its affiliates on our behalf, except those specifically required to be borne by the Adviser under the Management Agreement. Accordingly, to the extent that the Adviser retains other parties to provide services to us, expenses allocable to us will increase.

 ***The Adviser and its affiliates, including our officers and some of our trustees, may face conflicts of interest caused by payment arrangements with us and our affiliates, which could result in increased risk-taking by us.***

Certain investment advisers and other indirect subsidiaries of our Sponsor will receive substantial fees from us in return for their services, including certain incentive fees (such as the performance fee) based on the amount of appreciation of our investments. These fees could influence the advice provided to us. Generally, the more equity we sell in offerings and the greater the risk assumed by us with respect to our investments, including through the use of leverage, the greater the potential for growth in our assets and profits, and, correlatively, the fees payable by us to the dealer manager, if any, and the Adviser. These payment arrangements could affect the Adviser's or its affiliates' judgment with respect to offerings of equity and investments made by us, which allow the Adviser or its affiliates to earn increased fees.

The performance fee may create an incentive for the Adviser to make riskier or more speculative investments on our behalf than it would otherwise make in the absence of such performance-based compensation.

 ***The Adviser's liability is limited under the Management Agreement, and we have agreed to indemnify the Adviser against certain liabilities. As a result, we could experience unfavorable operating results or incur losses for which the Adviser would not be liable.***

Pursuant to the Management Agreement, the Adviser will not assume any responsibility other than to render the services called for thereunder and will not be responsible for any action of our Board in following or declining to follow its directives. The Adviser maintains a contractual, as opposed to a fiduciary relationship, with us. Under the terms of the Management Agreement, the Adviser, its officers, members and personnel, any person controlling or controlled by the Adviser and any person providing sub-advisory services to the Adviser will not be liable to us, any subsidiary of ours, our trustees, our shareholders or any subsidiary's shareholders or partners for acts or omissions performed in accordance with and pursuant to the Management Agreement, except those resulting from acts or omissions by such persons constituting gross negligence, willful misconduct, bad faith or reckless disregard of the Adviser's duties under the Management Agreement.

In addition, we have agreed to indemnify the Adviser and its affiliates and each of their respective officers, managers, directors, partners and employees from and against any claims, liabilities, damages or losses arising in the performance of their duties under the Management Agreement, including reasonable attorneys' fees, to the extent such liability, claims, damages or losses and related expenses are not fully

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reimbursed by insurance, and to the fullest extent possible without such indemnification being inconsistent with the laws of the State of Maryland or our Declaration of Trust. As a result, we could experience unfavorable operating results or incur losses for which the Adviser would not be liable.

 ***Termination of the Management Agreement without cause could be difficult and costly and may cause us to be unable to execute our business plan, which could materially and adversely affect us.***

If we fail to renew the Management Agreement or the Management Agreement is terminated, the Adviser's obligation to provide us with our executive officers and personnel upon whom we rely for the operation of our business will end. As a result, the termination of the Management Agreement could materially and adversely affect us and may inhibit change of control transactions that may be in the interest of our non-Sponsor affiliated shareholders.

#### The termination or replacement of the Adviser could trigger a repayment event under the terms of any future indebtedness.
The termination or replacement of the Adviser may trigger repayment of outstanding amounts under any future indebtedness. If a repayment event occurs with respect to any such indebtedness, we may be materially and adversely affected.

#### If the Adviser ceases to be the Adviser pursuant to the Management Agreement, counterparties to our agreements may cease doing business with us.
If the Adviser ceases to be the Adviser, it could constitute an event of default or early termination event under financing and other agreements we may enter into in the future, upon which our counterparties may have the right to terminate their agreements with us. If the Adviser ceases to be the Adviser for any reason, including upon the non-renewal of the Management Agreement, we may be materially and adversely affected.

 ***We do not own the "Rithm" name, but we may use it as part of our corporate name pursuant to the Management Agreement. Use of the name by other parties or the termination of our trademark license agreement may harm our business.***

The Adviser has permitted us a fully paid-up, royalty-free, non-exclusive, non-transferable license to use the name "Rithm." Accordingly, we have a right to use this name for so long as the Adviser (or another affiliate of the license-holder of the Rithm name (the "**Licensor**")) serves as the Adviser (or another advisory entity) and the Adviser remains an affiliate of the Licensor. The Licensor and its affiliates, such as the Adviser, will retain the right to continue using the "Rithm" name. We will further be unable to preclude the Licensor from licensing or transferring the ownership of the "Rithm" name to third parties, some of whom may compete with us. Consequently, we will be unable to prevent any damage to goodwill that may occur as a result of the activities of the Licensor, the Adviser or others. We may also be required to, among other things, change our name. Any of these events could disrupt our recognition in the market place, damage any goodwill we may have generated and otherwise harm our business.

#### Risks Related to our REIT Status and Certain Other Tax Items

#### Legislative or other actions could materially and adversely affect us and our shareholders.
The rules dealing with U.S. federal income taxation are constantly under review by persons involved in the legislative process and by the IRS and the U.S. Treasury Department. Changes to the tax laws, with or without retroactive application, could materially and adversely affect us and our shareholders. We cannot predict how changes in the tax laws might affect us or our shareholders. New legislation, U.S. Treasury regulations, administrative interpretations, or court decisions could significantly and negatively affect our ability to qualify as a REIT, the U.S. federal income tax consequences of such qualification, or the U.S. federal income tax consequences of our shareholders.

 ***Our failure to qualify as a REIT would subject us to U.S. federal income tax and potentially increased state and local taxes, which would reduce the amount of our income available for distribution to our shareholders.***

We intend to elect and qualify as a REIT under the Code for U.S. federal income tax purposes, commencing with our taxable year ending December 31, 2025. As long as we meet the requirements under

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the Code for qualification and taxation as a REIT each year, we can deduct dividends paid to our shareholders when calculating our REIT taxable income. For us to qualify as a REIT, we must meet detailed technical requirements, including income, asset, distribution and share ownership tests, under several Code provisions that have not been extensively interpreted by judges or administrative officers. In addition, we do not control the determination of all factual matters and circumstances that affect our ability to qualify as a REIT. New legislation, U.S. Treasury regulations, administrative interpretations or court decisions might significantly change the U.S. federal income tax laws with respect to our qualification as a REIT or the U.S. federal income tax consequences of such qualification. We believe that we have been organized and operate in conformity with the requirements for qualification as a REIT under the Code. However, we cannot guarantee that we will qualify as a REIT in any given year because:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the rules governing REITs are highly complex;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • we do not control all factual circumstances and legal determinations by courts or regulatory bodies that affect REIT qualification; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our circumstances may change in the future.

For any taxable year that we fail to qualify as a REIT, we would be subject to U.S. federal income tax at the regular corporate rate and would not be entitled to deduct dividends paid to our shareholders from our taxable income. In addition, we could possibly be subject to the corporate alternative minimum tax and the 1% excise tax on share repurchases (and certain economically similar transactions). Consequently, our net assets and distributions to our shareholders would be substantially reduced because of our increased tax liability. If we made distributions in anticipation of our qualification as a REIT, we might be required to borrow additional funds or to liquidate some of our investments in order to pay the applicable tax. If our qualification as a REIT terminates, we may not be able to elect to be treated as a REIT for four taxable years following the year during which we lost the qualification.

#### Even as a REIT, we may be required to pay certain taxes.
An entity that qualifies as a REIT under the Code generally will not be subject to U.S. federal income tax to the extent that it distributes its net income to its shareholders at least annually. A REIT may be subject to state and local tax in states and localities in which it does business or owns property. Additionally, we may be subject to certain U.S. federal, state and local taxes in certain circumstances, including, but not limited to, taxes on any undistributed income and prohibited transactions, taxes on income from activities conducted as a result of a foreclosure, franchise, property and transfer taxes, including mortgage recording taxes, and taxes as a result of failure to satisfy certain REIT qualification requirements. In addition, we may hold some of our assets through TRSs. Our TRSs and any other taxable corporations in which we own an interest are subject to U.S. federal, state and local corporate taxes (including potentially a 15% AMT on the AFSI of TRSs whose three-year average AFSI exceeds $1 billion). Payment of these taxes generally would reduce our cash flow and the amount available to distribute to our shareholders, which could materially and adversely affect us.

We intend that any property the sale or disposition of which could give rise to the 100% "prohibited transaction" tax (or any shared appreciation mortgage or similar debt instrument that could give rise to the 100% "prohibited transaction" tax) will be sold through a TRS. Because sales or other dispositions by a TRS are subject to tax at regular corporate income tax rates, these transactions could cause us to indirectly bear material amounts of corporate income tax, depending on the circumstances. Moreover, if we contribute to a TRS any asset the sale or disposition of which could otherwise give rise to the 100% "prohibited transaction" tax before it is sold, there can be no assurance that the IRS would not successfully assert that we, rather than the TRS, were the seller of such asset for U.S. federal income tax purposes, with the TRS acting as our agent. In such a case, the 100% "prohibited transaction" tax could apply to the sale or other disposition.

 ***REIT distribution requirements could adversely affect our ability to execute on our strategies and may require us to incur debt, sell assets or take other actions to make such distributions.***

In order to qualify and maintain our qualification as a REIT for U.S. federal income tax purposes, we must distribute to our shareholders, each calendar year, at least 90% of our REIT taxable income (including

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certain items of non-cash income), determined without regard to the deduction for dividends paid and excluding net capital gain. To the extent that we satisfy the 90% distribution requirement, but distribute less than 100% of our taxable income, we will be subject to U.S. federal corporate income tax on our undistributed income. In addition, we would incur a 4% nondeductible excise tax on the amount, if any, by which our distributions in any calendar year are less than a minimum amount specified under U.S. federal income tax law.

We intend to distribute our net income in a manner intended to satisfy the 90% distribution requirement and to avoid both corporate income tax and the 4% nondeductible excise tax. Our taxable income may substantially exceed our net income as determined by GAAP or differences in timing between the recognition of taxable income and the actual receipt of cash may occur, in which case we may have taxable income in excess of cash flow from our operating activities. In such event, we may generate less cash flow than taxable income in a particular year. In such circumstances, in order to satisfy the distribution requirement and to avoid U.S. federal corporate income tax and the 4% nondeductible excise tax in that year, we may be required to: (i) sell assets in adverse market conditions; (ii) borrow on unfavorable terms; (iii) distribute amounts that would otherwise be invested in our target assets consistent with our strategy, capital expenditures or repayment of debt; or (iv) make a taxable distribution of our shares as part of a distribution in which shareholders may elect to receive shares or (subject to a limit measured as a percentage of the total distribution) cash. Thus, in order to satisfy the distribution requirement or to avoid U.S. federal corporate income tax and the 4% nondeductible excise tax, we may be required to take actions that may not otherwise be advisable given existing market conditions which actions may hinder our ability to grow, which could materially and adversely affect us.

#### Ordinary dividends payable by REITs do not generally qualify for the reduced tax rates applicable to certain corporate dividends.
With limited exceptions, our dividends are not eligible for taxation at the preferential income tax rates (i.e., the current 20% maximum U.S. federal rate) applicable to qualified dividends received by U.S. shareholders that are individuals, trusts and estates from taxable C corporations. However, such non-corporate shareholders may deduct from their taxable income one-fifth of the Qualified REIT Dividends payable to them for purposes of determining their U.S. federal income tax (but not for purposes of the 3.8% Medicare tax). To qualify for this deduction, the shareholder receiving a Qualified REIT Dividend must hold the dividend-paying REIT shares for at least 46 days (taking into account certain special holding period rules) of the 91-day period beginning 45 days before our shares become ex-dividend and cannot be under an obligation to make related payments with respect to a position in substantially similar or related property. However, even if a U.S. shareholder qualifies for this deduction, the effective rate for such Qualified REIT Dividends still remains higher than rates for regular corporate dividends paid to non-corporate U.S. shareholders. The more favorable rates applicable to regular corporate dividends could cause non-corporate investors to perceive investments in REITs to be relatively less attractive as a U.S. federal income tax matter than investments in our shares of non-REIT corporations that pay dividends, which could materially and adversely affect the value of the share of REITs, including our shares.

#### Non-U.S. shareholders may be subject to U.S. federal income tax upon their receipt of certain distributions from us.
Under FIRPTA, distributions by us to a non-U.S. shareholder that are attributable to USRPI Capital Gains will be considered effectively connected with a U.S. trade or business of the non-U.S. shareholder, without regard to whether the distribution is designated as a capital gain dividend. We do not expect to make distributions that are attributable to gain from the sale or exchange of USRPIs. In particular, if we were to acquire a USRPI in connection with a foreclosure or similar proceeding or for any other reason, we intend to do so through a TRS, which TRS generally would be required to pay U.S. federal (and applicable state and local) corporate income tax on any gain from the disposition. The TRS would then dispose of such USRPI through a taxable transaction, and the after-tax proceeds of such sale may then be distributed to us by the TRS, in a manner that is not intended to give rise to distributions that are considered effectively connected with a U.S. trade or business of a non-U.S. shareholder. If, notwithstanding the forgoing, however, we make distributions that are attributable to USRPI Capital Gains, the non-U.S. shareholder would be required to file a U.S. federal income tax return and pay U.S. federal income tax at graduated rates, in the same

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 *manner as U.S. shareholders are taxed with respect to such distributions, we would be required to withhold tax at the highest rate of U.S. federal income tax applicable to the non-U.S. shareholder, based on the status of the non-U.S. shareholder, of any distributions to the non-U.S. shareholder that are attributable to USRPI Capital Gains. Distributions subject to FIRPTA also may be subject to a 30% branch profits tax if the non-U.S. shareholder that is a corporation. See "Item 1. Business — Certain U.S. Federal Income Tax Considerations — Taxation of Shareholders — Taxation of Non-U.S. Shareholders."* 

 ***If we acquire any USRPI in connection with a foreclosure or similar proceeding or for any other reason, we intend to do so indirectly through a TRS, to mitigate the risk of certain non-U.S. shareholders and, potentially, funds (if formed) that invest with us in an Aggregator Entity being subject to certain U.S. federal income tax liability and being required to file U.S. federal income tax returns, causing our return from such investments to be reduced by any U.S. federal, state and local corporate income taxes imposed on the TRS and the cost of operating the TRS.***

If we acquire a USRPI in connection with a foreclosure or similar proceeding or for any other reason, we intend to do so through a TRS to mitigate the risk of such non-U.S. shareholders receiving distributions attributable to USRPI Capital Gains which, among other negative tax consequences, generally would result in non-U.S. shareholders being subject to U.S. withholding taxes on distributions attributable to such USRPI Capital Gains, as well as being required to file a U.S. federal income tax return and pay U.S. federal income tax at graduated rates, in the same manner as U.S. shareholders are taxed with respect to such distributions. U.S. shareholders are not subject to FIRPTA and would generally prefer that we not use a TRS for such foreclosure property or other USRPI in order to avoid indirectly bearing the U.S. federal, state and local corporate income taxes imposed on the TRS, as well as the cost of operating the TRS. All shareholders would bear the taxes and operating costs imposed with respect to such TRS.

#### We may have phantom income from our acquisition and holding of subordinated debt instruments and "scratch-and-dent" loans and NPLs along with other debt instruments.
The tax accounting rules with respect to the timing and character of income and losses from our acquisition and holding of subordinated debt instruments and "scratch-and-dent" loans and NPLs, along with other debt instruments, may result in adverse tax consequences. We will be required to include in income accrued interest, OID and, potentially, market discount (each of which will be ordinary income), with respect to subordinated debt instruments, "scratch-and-dent" loans, NPLs or other debt instruments we hold, in accordance with the accrual method of accounting. We must include in income each year a portion of the OID that accrues over the life of the debt instrument, regardless of whether cash representing such income is received by us in the same taxable year. Income will be required to be accrued and reported, without giving effect to delays or reductions in distributions attributable to defaults or delinquencies on the debt instruments, except to the extent it can be established that such losses are uncollectible. Accordingly, we may incur a diminution in actual or projected cash flow in a given year as a result of an actual or anticipated default or delinquency, but may not be able to take a deduction for the corresponding loss until a subsequent tax year. While we generally may cease to accrue interest income if it reasonably appears that the interest will be uncollectible, the IRS may take the position that OID must continue to be accrued in spite of its uncollectibility until our investments in subordinated debt instruments, "scratch-and-dent" loans, NPLs or other debt instruments are disposed of in a taxable transaction or become worthless.

Due to each of these potential differences between income recognition or expense deduction and related cash receipts or disbursements, there is a significant risk that we may have substantial taxable income in excess of cash available for distribution. In that event, in order to satisfy the distribution requirement and to avoid U.S. federal corporate income tax and the 4% nondeductible excise tax in that year, we may be required to: (i) sell assets in adverse market conditions; (ii) borrow on unfavorable terms; (iii) distribute amounts that would otherwise be invested in our target assets consistent with our strategy, capital expenditures or repayment of debt; or (iv) make a taxable distribution of our shares as part of a distribution in which shareholders may elect to receive shares or (subject to a limit measured as a percentage of the total distribution) cash.

#### We are dependent on external sources of capital to finance our growth.
As with other REITs, but unlike corporations generally, our ability to finance our growth must largely be funded by external sources of capital because we generally have to distribute to our shareholders 90% of

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our REIT taxable income annually in order to qualify as a REIT and 100% of REIT taxable income in order to avoid U.S. federal corporate income tax and a 4% nondeductible excise tax. Our access to external capital depends upon a number of factors, including general market conditions, the market's perception of our growth potential, our current and potential future earnings, cash distributions and the NAV of our shares.

#### Complying with REIT requirements may cause us to forego otherwise attractive investment opportunities.
In order to qualify and maintain our qualification as a REIT for U.S. federal income tax purposes, we must on a continuing basis satisfy various tests on an annual and quarterly basis regarding the sources of our income, the nature and diversification of our assets, the amounts we distribute to our shareholders, and the ownership of our shares. To meet these tests, we may be required to forgo investments we might otherwise make. We may be required to make distributions to our shareholders at disadvantageous times or when we do not have funds readily available for distribution and may be unable to pursue investments that would be otherwise advantageous to us in order to satisfy the source of income or asset diversification requirements for qualifying as a REIT. Thus, compliance with the REIT requirements may hinder our investment performance and materially and adversely affect us.

#### Complying with REIT requirements may force us to liquidate otherwise profitable assets, which could materially and adversely affect us.
In order to qualify and maintain our qualification as a REIT for U.S. federal income tax purposes, we must ensure that at the end of each calendar quarter, at least 75% of the value of our assets consists of cash, cash items, government securities, and designated real estate assets, including certain mortgage loans and shares in other REITs. Subject to certain exceptions, our ownership of securities, other than government securities and securities that constitute real estate assets, generally cannot include more than 10% of the outstanding voting securities of any one issuer or more than 10% of the total value of the outstanding securities of any one issuer. In addition, in general, no more than 5% of the value of our assets, other than government securities and securities that constitute real estate assets, can consist of the securities of any one issuer, and no more than 20% (25% beginning in 2026) of the value of our total securities can be represented by securities of one or more TRSs. We generally do not intend to take actions we believe would cause us to fail to satisfy the asset tests described above. However, if we fail to comply with these requirements at the end of any calendar quarter after the first calendar quarter for which we qualified as a REIT, we must generally correct such failure within 30 days after the end of such calendar quarter to prevent us from losing our REIT qualification. As a result, we may be required to liquidate otherwise profitable assets prematurely, which could reduce the return on our assets, which could materially and adversely affect us.

 ***We may choose to make taxable distributions of our shares as part of a distribution in which shareholders may elect to receive shares or (subject to a limit measured as a percentage of the total distribution) cash, in which case our shareholders could be required to pay income taxes in excess of the cash dividends they receive.***

We may make taxable distributions of our shares as part of a distribution in which shareholders may elect to receive shares or (subject to a limit measured as a percentage of the total distribution) cash. U.S. shareholders receiving such a distribution will be required to include the full amount of the distribution in their taxable income to the extent of our current and accumulated earnings and profits for U.S. federal income tax purposes. As a result, a U.S. shareholder may be required to pay U.S. federal income taxes with respect to such dividends in excess of the cash dividends received, and the U.S. shareholder may be forced to use funds from other sources to pay its tax liability. If a U.S. shareholder sells or redeems our shares that it receives as a dividend in order to pay this tax, the sale proceeds may be less than the amount included in income with respect to the dividend, depending on the market price of our shares at the time of the sale or redemption. Furthermore, with respect to certain non-U.S. shareholders, we may be required to withhold U.S. federal income tax with respect to such dividends, including in respect of all or a portion of such dividend that is payable in shares.

#### If a shareholder participates in our distribution reinvestment program, it may have tax liability on distributions it receives in our shares.
We may make taxable distributions of our shares to shareholders who participate in the distribution reinvestment plan. U.S. shareholders receiving such a distribution will be required to include the full amount

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of the distribution in their taxable income to the extent of our current and accumulated earnings and profits for U.S. federal income tax purposes. As a result, the distributions may give rise to a liability for the payment of income tax without providing the U.S. shareholder with the immediate cash to pay the tax when it becomes due, and the U.S. shareholder may be forced to use funds from other sources to pay its tax liability on the reinvested dividends. If a U.S. shareholder sells or redeems our shares that it receives as a dividend in order to pay this tax, the sale proceeds may be less than the amount included in income with respect to the dividend, depending on the market price of our shares at the time of the sale or redemption. Furthermore, with respect to certain non-U.S. shareholders, we may be required to withhold U.S. federal income tax with respect to such dividends, including in respect of all or a portion of such dividend that is payable in shares.

 ***During any period that we believe we are not a "publicly offered REIT," we may choose not to repurchase shares that a particular shareholder has requested be repurchased if the redemption may not qualify for sale or exchange treatment for U.S. federal income tax purposes or would otherwise negatively affect any other shareholder or negatively affect our status as a REIT.***

 *During any period in which we believe that we are not a "publicly offered REIT," we may choose not to repurchase shares that a particular shareholder has requested be repurchased if the repurchase would not qualify for sale or exchange treatment for U.S. federal income tax purposes or would otherwise negatively affect any other shareholder or negatively affect our status as a REIT. Under the share repurchase plan, each shareholder agrees to provide to us any information reasonably requested to enable us to determine whether a repurchase requested by the shareholder would qualify for sale or exchange treatment for U.S. federal income tax purposes or would otherwise negatively affect any other shareholders or negatively affect our status as a REIT. See "Item 1. Business — Certain U.S. Federal Income Tax Considerations — Taxation of Shareholders — Taxation of Taxable U.S. Shareholders — Repurchase of our Common Shares" and "Item 1. Business — Certain U.S. Federal Income Tax Considerations — Taxation of Shareholders — Taxation of Non-U.S. Shareholders — Repurchase of our Common Shares" for a discussion of the tax consequences to U.S. shareholders and non-U.S. shareholders of a redemption of their shares by us.* 

#### Complying with REIT requirements may limit our ability to hedge effectively.
The REIT provisions of the Code limit the ability of a REIT to hedge its assets and liabilities. Except to the extent provided by U.S. Treasury regulations, any income from a hedging transaction will not constitute gross income for purposes of the 75% or 95% gross income test if we properly identify the transaction as specified in applicable U.S. Treasury regulations and we enter into such transaction (i) in the normal course of our business primarily to manage risk of interest rate or price changes or currency fluctuations with respect to borrowings made or to be made, or ordinary obligations incurred or to be incurred, to acquire or carry real estate assets, or (ii) primarily to manage risk of currency fluctuations with respect to any item of income or gain that would be qualifying income under the 75% or 95% gross income tests. In addition, income from certain new hedging transactions that counteract prior qualifying hedging transactions described in (i) and (ii) above may not constitute gross income for purposes of the 75% and 95% gross income tests if we properly identify the new hedging transaction as specified in applicable U.S. Treasury regulations. To the extent that we enter into other types of hedging transactions, the income from those transactions is likely to be treated as non-qualifying income for purposes of both of the 75% and 95% gross income tests. As a result of these rules, we may need to limit our use of otherwise advantageous hedging techniques or implement those hedges through a TRS. The use of a TRS could increase the cost of our hedging activities (because the TRS would be subject to tax on income or gain resulting from hedges entered into by it) or expose us to greater risks than we would otherwise incur.

#### Special ERISA considerations relating to Benefit Plan Investors.
We intend to conduct our affairs so that our assets should not be deemed to be "plan assets" of any Benefit Plan Investor for purposes of ERISA or Section 4975 of the Code. In this regard, until such time as our shares are considered "publicly-offered securities" (within the meaning of the Plan Asset Regulations), we intend to limit investment in each class of shares by Benefit Plan Investors to less than 25% of the total value of each class of equity interests (determined in accordance with the Plan Asset Regulations). Accordingly, the Adviser will have the power to take certain actions to avoid having our assets characterized

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as "plan assets," including, without limitation, placing restrictions on share purchases, redemptions and participation in the distribution reinvestment plan, and requiring a shareholder to dispose of all or part of its shares.

If, notwithstanding our intent, our assets were deemed to be "plan assets" for purposes of ERISA or Section 4975 of the Code, this would result, among other things, in (i) the application of the prudence and other fiduciary responsibility standards of ERISA to investments made by us, and (ii) the possibility that certain transactions in which we might seek to engage could constitute "prohibited transactions" under ERISA and the Code. If a prohibited transaction occurs for which no exemption is available, the Adviser and/or any other "party in interest" or "disqualified person" that has engaged in the prohibited transaction could be required to (i) restore to the Benefit Plan Investor any profit realized on the transaction and (ii) reimburse the Benefit Plan Investor for any losses suffered by the Benefit Plan Investor as a result of the investment. In addition, each disqualified person (within the meaning of Section 4975 of the Code) involved could be subject to an excise tax equal to 15% of the amount involved in the prohibited transaction for each year the transaction continues and, unless the transaction is corrected within statutorily required periods, to an additional tax of 100% of the amount involved. Fiduciaries of Benefit Plan Investors who decide to invest in us could, under certain circumstances, be liable for prohibited transactions or other violations as a result of their investment in us or as co-fiduciaries for actions taken by or on behalf of us or the Adviser. With respect to a Benefit Plan Investor that is an IRA that invests in us, the occurrence of a prohibited transaction could cause the IRA to lose its tax-exempt status.

The fiduciary of each prospective investor that is a Plan must independently determine that our shares are an appropriate investment, taking into account the fiduciary's obligations under ERISA, the Code and applicable Similar Laws, and the facts and circumstances of such investing Plan.

#### General Risk Factors

#### Insurance on loans and real estate-related securities collateral may not cover all losses.
There are certain types of losses, generally of a catastrophic nature, such as earthquakes, floods, wildfires, hurricanes, terrorism or acts of war, which may be uninsurable or not economically insurable. Inflation, changes in building codes and ordinances, environmental considerations and other factors also might result in insurance proceeds insufficient to repair or replace a property if it is damaged or destroyed. Under these circumstances, the insurance proceeds received with respect to a property relating to one of our investments might not be adequate to restore our economic position with respect to our investment. Any uninsured loss could result in the corresponding nonperformance of or loss on our investment related to such property.

 ***Various jurisdictional licensing requirements will cause us to incur expenses and our failure to be properly licensed may have a material adverse effect on us.***

We will be subject to the laws, rules and regulations of various federal, state, local and, if applicable, foreign government agencies regarding the origination, processing, underwriting, sale and servicing of mortgage loans. Non-bank companies are generally required to hold licenses in a number of U.S. states and foreign jurisdictions to conduct lending activities. These licensing statutes vary from jurisdiction to jurisdiction and prescribe or impose various recordkeeping requirements; restrictions on loan origination and servicing practices, including limits on interest rates, finance charges and the type, amount and manner of charging fees and prohibiting discrimination; disclosure requirements; requirements that licensees submit to periodic examination; surety bond and minimum specified net worth requirements; periodic financial reporting requirements; notification requirements for changes in principal officers, share ownership or corporate control; restrictions on advertising; and requirements that loan forms be submitted for review. Obtaining and maintaining licenses will cause us to incur expenses and failure to be properly licensed under such laws or otherwise may have a material adverse effect on us and our operations, including by foregoing otherwise advantageous investment opportunities. In addition, mortgage originators are subject to inspection by government agencies. A mortgage originator's failure to comply with these requirements could lead to, among other things, the loss of approved status, termination of contractual rights without compensation, demands for indemnification or mortgage loan repurchases, class action lawsuits and administrative enforcement actions.

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#### Political changes may affect the real estate-related securities markets.
The current regulatory environment in the United States may be impacted by future legislative developments. Any significant changes in, among other things, economic policy (including with respect to interest rates and foreign trade), the regulation of the investment management industry, tax law, regulation of the mortgage industry, immigration policy or government entitlement programs could have a material adverse impact on us and our investments.

#### Litigation outcomes may have an adverse impact on us.
In the ordinary course of our business, we may be subject to litigation from time to time. The outcome of such proceedings may materially adversely affect our value and may continue without resolution for long periods of time. Any litigation may consume substantial amount of time and attention, and that time and the devotion of these resources to litigation may, at times, be disproportionate to the amounts at stake in the litigation. The expense of defending claims against us and paying any amounts pursuant to settlements or judgments would be borne by us and would reduce net assets. Our Board will be indemnified by us in connection with such litigation, subject to certain conditions.

#### Compliance or failure to comply with regulatory requirements could result in substantial costs.
As a result of previous financial crises and highly-publicized financial scandals, the regulatory environment in which we, our Board, the Sponsor and the Adviser operate or are managed or the way in which they are structured is subject to heightened regulation. The Dodd-Frank Wall Street Reform and Consumer Protection Act ("**Dodd-Frank**") established new regulatory requirements intended to enhance the regulation of markets, market participants and financial instruments. It is also impossible to determine the scope and extent of the impact of any additional new laws, regulations or initiatives that may be proposed, or whether proposals will become law. Compliance with Dodd-Frank and other new laws or regulations could make compliance more difficult and expensive and affect the manner in which we, our Board, the Sponsor and the Adviser operate, are managed and/or are structured. Moreover, as calls for additional regulation have increased, there may be a related increase in regulatory investigations of the type of investment activities carried out by us, our Board and the Adviser. Such investigations may impose additional expenses on us, may require the attention of senior management and may result in fines if we are deemed to have violated any regulations.

Our businesses and the Adviser and its affiliates, as well as the financial services industry generally, are subject to extensive regulation, including periodic examinations, by governmental agencies and self-regulatory organizations or exchanges in the United States and other jurisdictions in which they operate relating to, among other things, antitrust law, anti-money laundering laws, anti-bribery laws, laws relating to foreign officials, privacy laws with respect to client information and the regulatory oversight of the trading and other investment activities of investment managers, including the Adviser. Each of the regulatory bodies with jurisdiction over us and the Adviser or its affiliates, has regulatory powers dealing with many aspects of financial services, including the authority to grant, and in specific circumstances to cancel, permissions to carry on particular activities. Any failure to comply with these rules and regulations could expose us or the Adviser to liability or other risks.

Furthermore, we and the Adviser rely on interpretive guidance from governmental agencies, including the SEC, with respect to certain positions and practices relevant to their businesses. No assurance can be given that the SEC staff will concur with ours or the Adviser's positions and practices or that the SEC staff will not, in the future, issue further guidance that may require us or the Adviser to change their positions and practices. To the extent the SEC staff publishes new or different guidance or changes current regulations with respect to these matters, we and the Adviser may be required to adjust their strategies or operations accordingly. Any failure to comply with these rules and regulations could expose us or the Adviser to liability or other risks.

Such oversight and regulation will likely cause us to incur additional expenses, divert the attention of the Adviser and its personnel and may result in fines if we are deemed to have violated any regulations. Regulation generally as well as regulation more specifically addressed to the alternative asset management industry, including tax laws and regulation, could increase the cost of identifying, structuring and completing

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loan transactions, the profitability of enterprises and the cost of operating us. Additional regulation could also increase the risk of third-party litigation. The transactional nature of our business exposes us and the Adviser and certain related parties generally to the risks of third-party litigation. Under our Declaration of Trust, we will generally, to the extent permitted by law, be responsible for indemnifying the Adviser and certain related parties for losses or obligations they may incur with respect to such litigation.

#### We may use our assets or return of investor's distributions to pay for existing exculpation and indemnification obligations.
Certain exculpation provisions contained in the agreements we have entered into may limit the rights of action otherwise available to us or our investors against certain person identified under such agreements absent such limitations. We are also responsible for indemnifying such indemnified persons for any losses incurred by them except to the extent such persons fail to meet the applicable standard of conduct set forth in such agreements. Liabilities arising from such indemnification obligations may be material. Any such indemnification obligations would be payable out of our assets and/or return of distributions previously made to investors.

 ***Actual or perceived threats associated with epidemics, pandemics or public health crises could have a material adverse effect on our results of operations and the businesses of the tenants occupying the properties securing our investments.***

Epidemics, pandemics, and other public health crises, such as the COVID-19 pandemic, could materially and adversely affect our ability to pay distributions, the tenants occupying the properties securing our investments and our results of operations and liquidity. While many of the direct impacts of the COVID-19 pandemic have eased, the longer-term macroeconomic effects continue to impact many industries.

The extent to which such epidemics, pandemics and other public health crises, such as the COVID-19 pandemic, may impact our investments and operations will depend on a variety of factors, including, among others, the duration of the pandemic, information that may emerge concerning severity, and the actions taken to contain the pandemic or treat the disease, particularly in the markets in which the properties securing our investments are located. As a result, the full impact of any pandemic on our business is highly uncertain and cannot be predicted with confidence. Nevertheless, any future epidemics, pandemics or public health crises could materially and adversely affect us, for the reasons discussed above.

#### Sustainability risks may have a greater impact on us than that assessed by the Adviser.
We may be affected by the impact of a number of sustainability factors, also referred to as ESG factors, on real estate assets securing or related to loans originated by us or other investments in which we invest. The reach of sustainability themes may be broad and this subsection is therefore not an exhaustive list of all risks related to ESG factors which could have a negative impact (whether or not material) on the value of an underlying or related real estate asset and therefore adversely impact our returns.

The real estate assets securing or related to our loans and investments may be negatively affected by the exposure to environmental conditions such as droughts, famines, floods, storms and other climate change and environmental-related events; although a number of these risks may be insurable, it is not guaranteed that the insurance coverage may in all cases be adequate and losses connected to these events may be material. In addition, the actions taken on the real estate assets securing or related to our loans to improve such real estate asset's sustainability profile, such as energy efficiency, clean energy production and consumption, waste reduction and water treatment typically impose significant short-term costs. Similarly, social initiatives and the adherence to high governance standards, for example in the areas of transparency, corporate governance, management of conflicts of interest and fair remuneration principles may require material investments and effort where economic returns may be uncertain. Any decrease in value or significant costs and investments affecting the assets securing or related to loans originated by us or in which we invest may result in a borrower's default or inability to pay amounts due on a loan, which would, in turn, adversely impact our returns.

Prospective investors should consider the adverse impacts that our investments may have on sustainability themes: the failure to support assets which provide a positive contribution to the sustainability

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factors or to support the generation of a negative impact may result in a number of negative fallouts ranging from reputational damages and, in some circumstances, fines and direct economic consequences from ESG related regulatory requirements that range from energy performance standards to mandatory disclosure.

We may also be negatively impacted (e.g., from a reputational point of view) if we do business with parties who fail to meet key ESG targets or make misleading statements with respect to ESG related objectives. In the event a counter-party of ours, or the real estate securing an investment of ours, uses manipulation or misinformation to bolster its ESG claims, we could be negatively impacted through no fault of our own.

Shareholders may differ in their views of whether or how ESG matters should be addressed and, as a result, we may invest in investments or manage our investments in a manner that does not reflect the beliefs and values of any particular investor. In considering investment opportunities and making ongoing decisions with respect to our investments, including decisions relating to follow-on investments, the Adviser may consider certain ESG factors. We may forego particular investments that do not meet certain ESG criteria or present material ESG risk that we may otherwise have made if we were seeking to make investments solely on the basis of financial returns. Further, it is possible that our investments are unable to obtain or realize the intended ESG outcomes.

Climate change and regulations intended to control its impact may affect the value of the real estate assets securing or related to loans we originated or in which we invest. We and the Adviser cannot predict the long-term impacts on real estate-related assets from climate change or related regulations. Laws enacted to mitigate climate change could increase energy costs, could make some buildings of property owners obsolete or cause such owners to make material investments in their properties to meet carbon or energy performance standards, which could materially and adversely affect the value of older properties underlying or relating to our investments. Climate change may also have indirect effects on property owners by increasing the cost of (or making unavailable) property insurance. Moreover, compliance with new laws or regulations related to climate change, including compliance with "green" building codes or tenant preferences for "green" buildings, may cause property owners to incur additional costs when renovating older properties. Any decrease in value or significant costs and investments affecting the assets securing or related to loans originated by us or in which we invest may result in a borrower's default or inability to pay amounts due on a loan, which would, in turn, adversely impact our returns. There can be no assurance that climate change will not have a material adverse effect on our assets, operations or business.

There can be no guarantee that the actual impact of the sustainability factors on our returns will not be materially greater than the impact assessed or expected by the Adviser.

#### Trade errors may result in losses.
On occasion, errors may occur with respect to trades executed on our behalf. Trade errors can result from a variety of situations, including, for example, when the wrong investment is purchased or sold, or when the wrong dollar amount of an instrument is purchased or sold (e.g., $100,000 instead of $1,000,000). Trade errors frequently result in losses but may, occasionally, result in gains. The Adviser will endeavor to detect trade errors prior to settlement and correct and/or mitigate them in an expeditious manner. To the extent an error is caused by a third party, such as a broker, the Adviser may seek to recover any losses associated with such error from such third party. The Adviser will determine whether any trade error has resulted from gross negligence on its part, and, unless it finds that to be the case, any losses will be borne by (and any gains will benefit) us. The Adviser will establish internal policies regarding the manner in which such determinations are to be made, but shareholders should be aware that, in making such determinations, the Adviser will have a conflict of interest. Generally, the Adviser will not be held accountable for trade errors that do not breach the standard of care set forth above.

 ***Our access to confidential information may restrict our ability to take action with respect to some investments, which, in turn, may negatively affect our results of operations.***

We, directly or through the Adviser, may obtain confidential information about the companies that become tenants of the properties securing our investments or be deemed to have such confidential

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information. The Adviser may come into possession of material non-public information through its members, officers, directors, employees, principals or affiliates. In addition, the Sponsor's clients may invest in entities that manage companies that are tenants of the properties securing our investments and, as a result, may obtain additional confidential information about such companies. The possession of such information may, to our detriment, limit the ability of us and the Adviser to buy or sell a security or otherwise to participate in an investment opportunity. In certain circumstances, employees of the Adviser or its affiliates may serve as board members or in other capacities for portfolio or potential portfolio companies, which could restrict our ability to trade in the securities of such companies. For example, if personnel of the Adviser or Sponsor come into possession of material non-public information with respect to our investments, such personnel will be restricted by the Adviser's and Sponsor's information-sharing policies and procedures or by law or contract from sharing such information with our management team, even where the disclosure of such information would be in our best interests or would otherwise influence decisions taken by the members of our management team with respect to that investment. This conflict and these procedures and practices may limit the freedom of the Adviser to enter into or exit from potentially profitable investments for us, which could have an adverse effect on our results of operations. Accordingly, there can be no assurance that we will be able to fully leverage the resources and industry expertise of the Adviser in the course of its duties. Additionally, there may be circumstances in which one or more individuals associated with the Adviser will be precluded from providing services to us because of certain confidential information available to those individuals or to other parts of the Adviser or the Sponsor.

#### We face risks relating to tariffs and trade wars.
The imposition of substantial tariffs by the United States on other countries, along with retaliatory measures by such other countries, has created a period of increased economic volatility. As of the date of this Registration Statement, the future of the trading relationships between the United States and such other countries is uncertain, and the failure of those countries to resolve their current disputes could have material adverse effects on the global economy. In addition, any future global economy downturns, introduction of significant trade barriers or bilateral trade frictions between the United States and its trading partners could adversely affect our financial performance.

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#### ITEM 2.

#### FINANCIAL INFORMATION

#### Management's Discussion and Analysis of Financial Condition and Results of Operations

#### Overview
We are a Maryland statutory trust formed on July 31, 2025. We are externally managed by the Adviser, an affiliate of the Sponsor. Our investment strategy is to invest primarily in North America in ABF opportunities. We intend to initially focus on RTLs and also invest across a range of other assets and investment types, including, but not limited to, investments in new origination loans, including NQM loans, scratch-and-dent loans, NPLs and RPLs, CES loans, MH loans, SRTs, consumer loans, equity and other securities, including CLO Securities and other collateralized products, and other opportunistic credit investments, in each case subject to compliance with the applicable REIT tax requirements and the applicable provisions of the Investment Company Act. Such investments may take the form of debt securities, warrants, options, other derivative instruments and other asset types, including equity-linked securities and, on an opportunistic basis, equity securities.

Our primary investment objectives are to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • provide shareholders current income in the form of regular, stable cash distributions to achieve an attractive distribution yield;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • preserve and protect invested capital, by focusing on high quality real assets with an emphasis on current cash-flow;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • aim to capture yield and/or capital appreciation while managing downside risk by acquiring assets where downside protection is the asset itself;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • mitigate downside risk through appropriate LTV ratios with meaningful borrower equity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • provide a diversified investment alternative for shareholders seeking to allocate a portion of their long-term investment portfolios to credit-focused real estate assets with lower volatility than listed public real estate companies.

We may not achieve our investment objectives. See "*Item 1A. Risk Factors*."

We are structured as a privately placed, non-listed, perpetual-life REIT, and therefore our securities are not listed on a national securities exchange and, as of the date of this Registration Statement, there is no plan to list our securities on a national securities exchange. We are organized as a holding company and conduct our business primarily through our subsidiaries. We intend to elect and qualify as a REIT under the Code for U.S. federal income tax purposes, commencing with the taxable year ending December 31, 2025. As such, we will generally not be subject to U.S. federal corporate income tax on that portion of our REIT taxable income that is distributed to shareholders if we distribute at least 90% of our REIT taxable income to our shareholders by prescribed dates and comply with various other requirements.

Our Board at all times has oversight responsibility for governance, financial controls, compliance and disclosure with respect to us. Pursuant to the Management Agreement, we have delegated to the Adviser the authority to source, evaluate and monitor our investment opportunities and make decisions related to the acquisition, management, financing and disposition of our assets, in accordance with our investment objectives, guidelines, policies and limitations, subject to oversight by our Board. However, the Adviser is at all times subject to supervision, direction and management through our Board and will have only such functions and authority as our Board delegates to it.

We are not aware of any material trends or uncertainties, favorable or unfavorable, other than national economic conditions affecting real estate generally, that may be reasonably anticipated to have a material impact on either capital resources or the revenues or income to be derived from investments in our target assets, other than those referred to in this Registration Statement and those discussed under "*Item 1A. Risk Factors.*"

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#### Basis of Presentation
Our financial statements are and will be prepared in accordance with GAAP, which requires the use of estimates, assumptions and the exercise of subjective judgment as to future uncertainties.

#### Revenues
As of November 25, 2025, we have not engaged in principal operations nor generated any revenues. Our entire activity since inception to November 25, 2025 was our Initial Capitalization and preparation for our proposed fundraising through our Private Offering. We were capitalized on September 12, 2025 through Rithm Investor's purchase from us of an aggregate of 100 common shares for an aggregate purchase of price of $2,000 and at a price per share equal to $20.00 (our "**Initial Capitalization**").

As of November 25, 2025, we have neither acquired nor entered into any arrangements to acquire any investments. However, the Adviser is in the process of identifying an initial portfolio consisting primarily of RTLs originated by Genesis and NQM loans. We expect that this portfolio would be financed at levels within our target asset-level leverage ratio range (see "*Item 1. Business — Leverage*" above), and any acquisitions would be subject to approval by our Board and/or the Independent Compliance Reviewer. No assurance can be given that any potential investments will close on anticipated terms or at all. Depending on market conditions, the Adviser may identify other or additional investments prior to the date of the initial closing of our Private Offering. The number and type of investments that we acquire will depend upon market conditions, the amount of proceeds we raise in our Private Offering, the amount of other financing available to us and other circumstances existing at the time we are acquiring such assets.

We will initially seek to achieve our investment objective primarily through investments in RTLs, including bridge, construction, renovation and rental hold loans made to professional real estate developers. We may also invest across a range of other assets and investment types, including, but not limited to: (i) NQM loans; (ii) scratch-and-dent loans; (iii) NPLs and RPLs; (iv) CES loans; (v) MH loans; (vi) SRTs; (vii) consumer loans; (viii) equity and other securities, including CLO Securities and other collateralized products; and (ix) other opportunistic credit investments, in each case subject to compliance with the applicable REIT tax requirements and the applicable provisions of the Investment Company Act. Our investment strategy includes a focus on assets in the real estate and financial services sectors that capture yield and appreciation while minimizing downside risk in order to deliver attractive risk-adjusted returns to investors. We intend to invest primarily in North America but may also invest in other geographic areas on an opportunistic basis, capitalizing on the Sponsor's platform, relationships and expertise across regions.

#### Expenses
 *Management Fee* 

 *For a discussion of the management fee payable to the Adviser, see "Item 1. Business — Management Agreement — Compensation of the Adviser — Management Fee."* 

 *Performance Fee* 

 *For a discussion of the performance fee payable to the Adviser, see "Item 1. Business — Management Agreement — Compensation of the Adviser — Performance Fee."* 

 *Servicing Fee* 

We will pay participating broker-dealers and/or a dealer manager, if any, Ongoing Servicing Fees or Distribution Fees for ongoing services rendered to shareholders by participating broker-dealers or broker-dealers servicing investors' accounts, payable monthly at the annual rates set forth below, based on the aggregate NAV of outstanding Class S shares, Class T shares, Class D shares, Class J shares and Class J-2 shares, respectively:

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| | | |
|:---|:---|:---|
| **Shares**  | **Annual <br> Ongoing <br> Servicing Fees\***  | **Annual <br> Distribution <br> Fees**  |
| Class S shares  | 0.85% |  |
| Class T shares  | 0.85% |  |
| Class D shares  | 0.25% |  |
| Class J shares  |  | Up to 0.625%  |
| Class J-2 shares  |  | Up to 0.625%  |

---

\*

In the event that we engage a dealer manager, we anticipate that a portion of such Ongoing Servicing Fees may be retained by such dealer manager. However, any fees resulting from any such engagement are generally not expected to exceed the maximum percentages for each class of common shares as set forth in the above table.

The Ongoing Servicing Fees or Distribution Fees are selling commissions paid over time.

The amount of the management fee paid by any class of shares to the Adviser for a given period will be reduced by the amount of any Distribution Fees with respect to such class for such period. Until we become a "publicly offered REIT" for U.S. federal income tax purposes and in order to meet the applicable REIT tax requirements, we intend to only issue Class J shares.

We will not pay an Ongoing Servicing Fee or Distribution Fee with respect to outstanding Class I shares or Class E shares.

The Ongoing Servicing Fees or Distribution Fees are paid monthly in arrears. We reallow (pay) (and, for Ongoing Servicing Fees, if we engage a dealer manager in the future, the dealer manager will reallow (pay)) all or a portion of the Ongoing Servicing Fees or Distribution Fees to certain participating broker-dealers for ongoing shareholder services performed by such broker-dealers. To the extent a broker-dealer is not eligible to receive such fees for failure to provide such services, we or the dealer manager, if any and as applicable, will retain or refrain from reallowing (paying) the same. Alternatively, the applicable shares may be converted to Class I shares if we and the dealer manager, if any, determine that such shares should be so converted. Because the Ongoing Servicing Fees or Distribution Fees are calculated based on our NAV for our Class S shares, Class T shares, Class D shares, Class J shares and Class J-2 shares, they will reduce the NAV or, alternatively, the distributions payable, with respect to our shares of each such class, including shares issued under our distribution reinvestment plan.

We will cease paying the Ongoing Servicing Fee or Distribution Fee on our Class S shares, Class T shares, Class D shares, Class J shares and Class J-2 shares on the earlier to occur of the following: (i) a listing of our common shares; or (ii) our merger or consolidation with or into another entity, or the sale or other disposition of all or substantially all of our assets (except for any such transaction taken in connection with an internal restructuring transaction (including our conversion into another type of legal entity)).

To the extent an agreement between us or the dealer manager, if any, and a participating broker-dealer limits the transaction or other fees, including upfront placement fees or brokerage commissions, and Ongoing Servicing Fees or Distribution Fees paid with respect to a shareholder, at the end of the month in which we or the dealer manager, if any, in conjunction with the transfer agent determines that the total Ongoing Servicing Fees or Distribution Fees paid with respect to our shares held in an applicable shareholder's account would exceed, in the aggregate, the applicable limit, we will cease paying the Ongoing Servicing Fees or Distribution Fees on our Class S shares, Class T shares, Class D shares, Class J shares and/or Class J-2 shares in such shareholder's account or convert or exchange such shares to Class I shares. In addition, we, the Adviser and the dealer manager, if any, may pay certain fees to participating broker-dealers that sponsor feeder vehicles primarily created to hold our shares.

Eligibility to receive the Ongoing Servicing Fee or Distribution Fee is conditioned on a broker-dealer providing the following ongoing services with respect to the Class S shares, Class T shares or Class D shares: responding to customer inquiries of a general nature regarding us; crediting distributions from us to customer accounts; arranging for bank wire transfer of funds to or from a customer's account; responding

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to customer inquiries and requests regarding shareholder reports, notices, proxies and proxy statements, and other documents of ours; forwarding the private placement memorandum relating to our Private Officer, tax notices and annual and quarterly reports to beneficial owners of our shares; assisting us in establishing and maintaining shareholder accounts and records; assisting customers in changing account options, account designations and account addresses, and providing such other similar services as we may reasonably request, to the extent an authorized service provider is permitted to do so under applicable statutes, rules, or regulations. The Ongoing Servicing Fees or Distribution Fees are ongoing fees that are not paid at the time of purchase.

 *Organizational and Offering Expenses* 

 *For a discussion of the organizational and offering expense reimbursements to the Adviser, see "Item 1. Business — Management Agreement — Compensation of the Adviser — Expense Reimbursement" and "Item 1. Business — Management Agreement — Operating Expense Reimbursement."* 

#### Financial Condition, Liquidity and Capital Resources
As of November 25, 2025, we are in our organizational period and have not yet commenced principal operations or generated any revenues. We expect that principal operations will commence in the beginning of our first fiscal quarter of 2025.

In order to facilitate the origination or acquisition of our initial investments, the Sponsor (or an affiliate) has agreed to purchase (in one or more purchases) the lesser of (i) 5% of our total NAV and (ii) $20 million of Class E shares at a price per share equal to the most recently determined NAV of Class E shares or, if a NAV has yet to be calculated, then at a price of $20.00 per Class E share. As of the date of this Registration Statement, the Sponsor (or an affiliate) has not purchased any Class E shares in connection with the Sponsor Investment. We expect to generate cash primarily from (i) the net proceeds of our continuous Private Offering, (ii) cash flows from our operations, (iii) existing borrowing facilities and any financing arrangements we may enter into in the future and (iv) any future offerings of our equity or debt securities.

Our primary uses of cash will be for (i) the acquisition of our target assets in accordance with our investment guidelines, (ii) the cost of operations (including the management fee and performance fee), (iii) debt service of any borrowings, (iv) periodic repurchases, including under our share repurchase plan (as described herein), and (v) cash distributions (if any) to the holders of our shares to the extent authorized by our Board and declared by us.

On November 24, 2025, the Company entered into a Master Repurchase Agreement (together with the related transaction documents, the "**RTL-C Repurchase Agreement**"), with Churchill, to finance RTLs and similar loans as more particularly described in the RTL-C Repurchase Agreement. The RTL-C Repurchase Agreement provides for up to $500 million of financing capacity (the "**RTL-C Facility**").

Advances under the RTL-C Repurchase Agreement accrue interest at a per annum rate based on Term SOFR plus a pricing spread (as defined in the RTL-C Repurchase Agreement). The maturity date of the RTL-C Facility is any date on which the Funding Period (as defined in the RTL-C Repurchase Agreement) has expired and no transactions are then outstanding or six months after the date on which the Funding Period has expired. Churchill may end the "Funding Period" on 180 days' notice.

In connection with the RTL-C Repurchase Agreement, the Company provided a Guaranty (the "**RTL-C Guaranty**"), under which the Company provides guarantees for losses for certain "bad acts." The RTL-C Guaranty may become full recourse to the Company upon the occurrence of certain events as described in the RTL-C Guaranty.

On November 24, 2025, the Company entered into a Master Repurchase Agreement (together with the related transaction documents, the "**TRS-W Repurchase Agreement**"), with Wells Fargo, to finance RTLs and NQM loans as more particularly described in the TRS-W Repurchase Agreement. The TRS-W Repurchase Agreement provides for up to $500 million of financing capacity (the "**TRS-W Facility**").

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Advances under the TRS-W Repurchase Agreement accrue interest at a per annum rate based on an index approximating the behavior of Term SOFR plus a pricing spread (as defined in the TRS-W Repurchase Agreement). The maturity date of the TRS-W Facility is November 24, 2028.

In connection with the TRS-W Repurchase Agreement, the Company provided a Guaranty (the "**TRS-W Guaranty**"), under which the Company provides guarantees for losses for certain "bad acts." The TRS-W Guaranty may become full recourse to the Company upon the occurrence of certain events as described in the TRS-W Guaranty.

The RTL-C Repurchase Agreement, TRS-W Repurchase Agreement, RTL-C Guaranty and TRS-W Guaranty contain representations, warranties, covenants, events of default and indemnities that are customary for agreements of their type.

#### Quantitative and Qualitative Disclosures about Market Risk
The primary components of our market risk will be related to interest rate risk, mortgage basis spread risk, prepayment risk, credit risk, real estate risk and inflation risk. We will seek to actively manage these and other risks and to acquire and hold assets at prices that we believe justify bearing those risks, and to maintain capital levels consistent with those risks.

 *Interest Rate Risk* 

We will be subject to interest rate risk in connection with the expected fixed income nature of our assets and the short-term, variable rate nature of our financing obligations. Our operating results will depend in large part on differences between the income earned on our assets and our cost of borrowing and hedging activities. The costs associated with our borrowings will be generally based on prevailing market interest rates. During a period of rising interest rates, our borrowing costs generally will increase while the yields earned on our existing portfolio of leveraged fixed-rate assets will largely remain static. This can result in a decline in our net interest spread. Changes in the level of interest rates can also affect the rate of loan prepayments and the value of our assets.

Interest rates are highly sensitive to many factors, including fiscal and monetary policies and domestic and international economic and political considerations, as well as other factors beyond our control. Subject to maintaining our qualification as a REIT, we may engage in a variety of interest rate management techniques to mitigate the influence of interest rate changes on our net interest income.

The principal instruments that we may use to hedge our interest rate risk are interest rate swaps, swaptions, U.S. Treasury securities and U.S. Treasury futures contracts. Our hedging techniques are highly complex and are partly based on assumed levels of prepayments of our assets. If prepayments are slower or faster than assumed, the maturity of our investments will also differ from our expectations, which could reduce the effectiveness of our hedging strategies and may cause losses on such transactions and adversely affect our cash flow.

 *Mortgage Basis Spread Risk* 

Mortgage basis measures the spread between the yield on current coupon mortgage-backed securities and benchmark rates including treasuries and swaps. The level of mortgage basis is driven by demand and supply of mortgage-backed instruments relative to other rate-sensitive assets. Changes in the mortgage basis have an impact on prepayment rates driven by the ability of borrowers underlying our portfolio to refinance. A lower mortgage basis would imply a lower mortgage rate which would increase prepayment speeds due to higher refinance activity and, therefore, would lower the fair value of our mortgage portfolio. The mortgage basis is also correlated with other spread products such as corporate credit.

 *Prepayment Risk* 

Prepayment risk is the risk of change, whether an increase or a decrease, in the rate at which principal is returned in respect of the loans we expect to own, including both through voluntary prepayments and through liquidations due to defaults and foreclosures. This rate of prepayment is affected by a variety of factors, including the prevailing level of interest rates as well as economic, demographic, tax, social, legal and

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other factors. Prepayment rates, besides being subject to interest rates and borrower behavior, are also substantially affected by government policy and regulation. Changes in prepayment rates will have varying effects on the different types of assets in our portfolio. We will attempt to take these effects into account. An increase in prepayments would lead to increased yield on our assets while also causing re-investment risk that we cannot find additional assets with the same interest and return levels. A decrease in prepayments would likely have the opposite effects.

 *Credit Risk* 

We will be subject to credit risk in connection with our assets. While we will engage in diligence on assets we will acquire, such due diligence may not reveal all of the risks associated with such assets and may not reveal other weaknesses in such assets, which could lead us to misprice acquisitions. Property values are subject to volatility and may be affected adversely by a number of factors, including, but not limited to, national, regional and local economic conditions (which may be adversely affected by industry slowdowns, public health crises and other factors), local real estate conditions (such as an oversupply of housing), changes or continued weakness in specific industry segments, construction quality, age and design, demographic factors and retroactive changes to building or similar codes.

There are many reasons borrowers will fail to pay including but not limited to, in the case of RTLs, the market in which the asset is located fails to improve according to the borrower's projections, if the borrower fails to improve the quality of the asset's management or the value of the asset or cost-overruns in rehabilitating the property. We will rely on the Adviser and its affiliates to mitigate our risk. Such mitigation efforts may include loan modifications and prompt foreclosure and property liquidation following a default. If a sufficient number of borrowers default, our results of operations will suffer, and we may not be able to pay our own financing costs.

 *Real Estate Risk* 

Residential property values are subject to volatility and may be affected adversely by a number of factors, including, but not limited to: national, regional and local economic conditions (which may be adversely affected by industry slowdowns, public health crises and other factors); local real estate conditions (such as an oversupply of housing and residential vacancies); construction quality, age and design; demographic factors; and retroactive changes to building or similar codes. Increases in interest rates will result in lower refinancing volume and home price increases will slow. Decreases in property values may cause us to suffer losses.

 *Inflation Risk* 

Inflation in the United States has accelerated in the past and may continue to do so in the future. It remains uncertain whether substantial inflation in the United States will be sustained over an extended period of time or have a significant effect on the United States or other economies. Inflation and rapid fluctuations in inflation rates have had in the past, any may in the future have, negative effects on the economies and financial markets, which may in turn affect the markets in which we will invest. For example, wages and prices of inputs increase during periods of inflation, which negatively impact returns on investments. Governmental efforts to curb inflation often have negative effects on the level of economic activity. Depending on the inflation assumptions relating to the cash flows anticipated from the assets underlying our future investments, as well as the manner in which asset revenue is determined with respect to such asset, returns from assets may vary as a result of changes in the rate of inflation. There can be no assurance that inflation will not become a serious problem in the future and have an adverse impact on our returns.

Moreover, as inflation increases, the real value of our investments and distributions therefrom can decline. If we are unable to increase the revenue and profits of our investments at times of higher inflation, we may not be able to pay out higher distributions to shareholders to compensate for the relative decrease in the value of money, thereby affecting the expected return of investors.

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#### ITEM 3.

#### PROPERTIES
Our principal office is located at 799 Broadway, New York, NY 10003. As part of the Management Agreement, the Adviser is responsible for providing office space and office services required in rendering services to us. We consider these facilities to be suitable and adequate for the management and operations of our business.

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#### ITEM 4.

#### SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
As of November 25, 2025, we have not engaged in principal operations. In the Initial Capitalization, we were capitalized on September 12, 2025 through Rithm Investor's purchase from us of an aggregate of 100 common shares for an aggregate purchase of price of $2,000 and at a price per share equal to $20.00. Rithm Investor currently holds all of the outstanding common shares issued by the Company, and, as of November 25, 2025, Rithm Investor was our only shareholder. The address for Rithm Investor is in care of our principal executive offices at 799 Broadway, New York, NY 10003.

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| | | |
|:---|:---|:---|
| **Name of Beneficial Owner**  | **Number of <br> Common Shares <br> Beneficially Owned**  | **Percent of <br> Common Shares <br> Beneficially Owned**  |
| **Trustees and Named Executive Officers** |  |  |
| Jayme Fagas  |  |  |
| Michael Nierenberg<sup>(1)</sup>  |  |  |
| Lori Okun  |  |  |
| Charles Sorrentino  |  |  |
| Matthew Whalen  |  |  |
| All current executive officers and trustees as a group (seven persons)  |  |  |
| **5% Shareholders** |  |  |
| Rithm Perpetual Life Residential Investor LLC<sup>(2)</sup>  | 100 | 100% |

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(1) Mr. Nierenberg is our sole named executive officer.

(2) Rithm Perpetual Life Residential Investor LLC is an indirect, wholly-owned subsidiary of Rithm Capital Corp. Investment and voting decisions regarding such shares are made by the board of directors of Rithm Capital Corp., a publicly traded company listed on the NYSE. Membership on the board of directors of Rithm Capital Corp. is subject to change from time to time. Each of the members of the board of directors of Rithm Capital Corp. disclaims beneficial ownership of such shares.

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#### ITEM 5.

#### DIRECTORS AND EXECUTIVE OFFICERS
We operate under the direction of our Board. We have retained the Adviser to manage the acquisition and dispositions of our investments, subject to our Board's supervision. We currently have a five-member board.

#### Trustees and Executive Officers
Information regarding our trustees and executive officers are set forth below:

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| | | | |
|:---|:---|:---|:---|
| **Name**  | **Age\***  | **Position with Us**  | **Position <br> Held Since**  |
| Michael Nierenberg  | 63  | Chief Executive Officer and Co-Chief Investment Officer, Trustee  | 2025 |
| Charles Sorrentino  | 51  | Co-Chief Investment Officer, Trustee | 2025 |
| Nicola Santoro, Jr.  | 57  | Chief Financial Officer and Chief Accounting Officer | 2025 |
| David Zeiden | 53  | Chief Legal Officer and Chief Compliance Officer | 2025 |
| Jayme Fagas | 64  | Independent Trustee | 2025 |
| Matthew Whalen | 60  | Independent Trustee | 2025 |
| Lori Okun | 59  | Independent Trustee | 2025 |

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\*

As of November 25, 2025.

#### Trustees
Our trustees have been divided into two groups — Independent Trustees and Non-Independent Trustees.

 *Non-Independent Trustee* 

***Michael Nierenberg, Chief Executive Officer and Co-Chief Investment Officer, Trustee***. Mr. Nierenberg has served as our Chief Executive Officer and Co-Chief Investment Officer and a trustee on our Board since September 2025. Mr. Nierenberg serves as Chief Executive Officer, Chairman of the Board and President of the Sponsor. Mr. Nierenberg has served as chairman of the board of directors of the Sponsor since May 2016. He has worked for the Sponsor since 2013, originally as a Managing Director at FIG LLC, the Sponsor's prior external manager. Mr. Nierenberg has also served as a member of the board of directors of Rithm Property Trust Inc. since June 2024 and currently serves as Rithm Property Trust Inc.'s Chief Executive Officer, a position he has held since his appointment in June 2024.

Additionally, beginning in January 2025, Mr. Nierenberg has served as the Chairman of the board and a director and, since November 2024, the Chief Executive Officer of Rithm Acquisition Corp., a special purpose acquisition company. From November 2013 until June 2022, Mr. Nierenberg served as a Managing Director at Fortress. From December 2020 until June 2022, Mr. Nierenberg also served as Chief Executive Officer and Chairman of the board of Fortress Capital Acquisition Corp., and, from January 2021 until June 2022, as a member of its audit and compensation committees.

Prior to becoming CEO of the Sponsor, Mr. Nierenberg served as Managing Director and Head of Global Mortgages and Securitized Products at Bank of America Merrill Lynch. Mr. Nierenberg joined Bank of America Merrill Lynch in November 2008 from J.P. Morgan where he was head of Global Securitized Products and a member of the management committee of the investment bank.

Prior to his tenure at J.P. Morgan, Mr. Nierenberg held a range of senior leadership positions during 14 years with Bear Stearns, including member of the Board of Directors, Head of Interest Rate and Foreign Exchange Trading Operations, Co-Head of Structured Products and Co-Head of Mortgage-Backed Securities Trading.

Mr. Nierenberg spent seven years at Lehman Brothers prior to joining Bear Stearns in Lehman Brothers' adjustable-rate mortgage business.

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We believe that Mr. Nierenberg's knowledge, skill, expertise and experience as described above qualify him as a trustee. Mr. Nierenberg is an Adviser Designee to our Board.

***Charles Sorrentino, Co-Chief Investment Officer, Trustee.*** Mr. Sorrentino has served as our Co-Chief Investment Officer since September 2025 and a trustee on our Board since November 2025. Mr. Sorrentino is a Managing Director at the Sponsor and has worked for the Sponsor since 2015, originally as a Managing Director in the Private Equity division of FIG LLC.

At the Sponsor, Mr. Sorrentino serves as Head of Investments and is responsible for managing all assets under management.

Mr. Sorrentino has over 20 years of experience in capital markets, including 14 years at Bank of America Merrill Lynch in various senior leadership roles, focusing on commercial mortgage, residential mortgage, and asset-backed securities syndicate and trading.

Prior to joining Bank of America Merrill Lynch, Mr. Sorrentino worked at Prudential Securities.

We believe that Mr. Sorrentino's knowledge, skill, expertise and experience as described above qualify him as a trustee. Mr. Sorrentino is an Adviser Designee to our Board.

 *Independent Trustees* 

***Jayme Fagas, Independent Trustee***. Ms. Fagas has served as a trustee on our Board since September 2025. From 2009 until her retirement in June 2024, Ms. Fagas held various positions at the London Stock Exchange Group, most recently as the Global Head of Pricing and Valuations from January 2014 until June 2024. In that role, Ms. Fagas led a business unit that provided daily independent pricing on numerous fixed income instruments. Prior to her time at the London Stock Exchange Group, Ms. Fagas held roles at First Boston Corporation, Nomura Securities, Kidder, Peabody & Co. and Bear Stearns where she focused on collateralized mortgage obligations trading.

We believe that Ms. Fagas' background in the mortgage sector and her years of experience qualify her to serve as a trustee.

***Matthew Whalen, Independent Trustee***. Mr. Whalen has served as a trustee on our Board since September 2025. Mr. Whalen has extensive experience in the residential mortgage space and in-depth knowledge of the related data and technology needs. Since June 2021, Mr. Whalen has founded MyPursuit, a financial empowerment application that seeks to automate the mortgage and rental application process. Prior to MyPursuit, from 2007 through June 2021, Mr. Whalen was the Co-Founding Partner, Investment Committee Co-Chair and Portfolio Manager at Galton Capital, an asset management and loan trading and financing business. Prior to Galton Capital, Mr. Whalen held various roles at Citibank, Chase Manhattan Mortgage Corporation, J.P. Morgan Securities and Merrill Lynch.

We believe that Mr. Whalen's experience in the residential mortgage sector qualifies him to serve as a trustee.

***Lori Okun, Independent Trustee.*** Ms. Okun has served as a trustee on our Board and as Chair of the audit committee of our Board (the "**Audit Committe**") since November 2025. From 1988 until her retirement in June 2025, Ms. Okun held various positions at Ernst & Young LLP, most recently as a Professional Practice Director from 2018 until June 2025. In this role, Ms. Okun supported the teams that provided audit and advisory services to financial institutions. Ms. Okun also served as a Partner at Ernst & Young LLP from 2001 until her retirement in June 2025. Ms. Okun has over 37 years of experience providing auditing and advisory services to financial institutions, which includes auditing public companies and assisting companies with complex financial transactions. Ms. Okun is also a certified public accountant.

We believe that Ms. Okun's extensive audit experience qualifies her to serve as a trustee.

#### Executive Officers
For information concerning the background of Michael Nierenberg and Charles Sorrentino, see "— *Trustees — Non-Independent Trustee*" above.

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***Nicola Santoro, Jr., Chief Financial Officer and Chief Accounting Officer***. Mr. Santoro has served as our Chief Financial Officer and Chief Accounting Officer since September 2025. Mr. Santoro is the Chief Financial Officer and Chief Accounting Officer of the Sponsor. He has worked for the Sponsor since 2015, originally as a Managing Director at FIG LLC.

Mr. Santoro was employed by FXCM, Inc. from 2012 through 2015, serving as its Chief Accounting Officer. At FXCM, Inc., Mr. Santoro was responsible for directing financial reporting, accounting, tax and financial planning activities.

Mr. Santoro spent the prior seven years at Financial Guaranty Insurance Company, serving as its principal financial officer. Mr. Santoro is a Certified Public Accountant.

***David Zeiden, Chief Legal Officer and Chief Compliance Officer***. Mr. Zeiden has served as our Chief Legal Officer and Chief Compliance Officer since September 2025. Mr. Zeiden was appointed Chief Legal Officer for the Sponsor on April 30, 2024. Mr. Zeiden previously served as Executive Managing Director, Chief Compliance Officer and Chief Regulatory Counsel for Sculptor, where he oversaw Sculptor's global compliance program.

Prior to serving as Sculptor's Chief Compliance Officer, Mr. Zeiden was General Counsel and Chief Operating Officer for Sculptor's Asia business.

Before joining Sculptor in 2007, Mr. Zeiden spent nearly a decade in private practice in the Corporate Departments at law firms Paul Weiss and Debevoise & Plimpton.

Our executive officers have certain legal duties to us under applicable Maryland law. In addition, although most of the services provided to us by the individuals who are executive officers are in their respective roles as executive officers of the Sponsor, they have certain responsibilities as our executive officers arising from our Declaration of Trust and our bylaws. These responsibilities include executing contracts and other instruments in our name and on our behalf and such other responsibilities as may be prescribed by our Board from time to time.

Our executive officers will act as our agents, execute contracts and other instruments in our name and on our behalf, and in general perform all responsibilities incident to their offices and such other responsibilities as may be prescribed by our Board from time to time. Our officers will devote such portion of their time to our affairs as is required for the performance of their responsibilities, but they are not required to devote all of their time to us.

#### Our Board
We operate under the direction of our Board. We have retained the Adviser to manage the acquisition and dispositions of our investments, subject to our Board's supervision.

We currently have a five-member board. Our Declaration of Trust provides that the number of trustees may be increased or decreased only by our Board pursuant to our bylaws. Our bylaws provide that the number of trustees may not be fewer than three nor more than fifteen, unless our Board amends our bylaws. Although our Declaration of Trust does not require a minimum number of independent trustees, our bylaws currently require that the majority of our Board consist of independent trustees. Our Board has determined that Lori Okun, Jayme Fagas and Matthew Whalen are independent trustees, giving us a majority independent Board. Under our Declaration of Trust, a trustee is independent if he, she or it (i) is not an officer or employee of ours, any subsidiary of ours, or of the Sponsor or its affiliates, (ii) has no material relationship with us, as determined by our Board, and (iii) otherwise satisfies the director independence tests provided for in the NYSE Listing Manual Rule 303A.02, as may be amended from time to time. We expect a majority of our Board to continue to consist of independent trustees, except for a period of up to 60 days after the death, removal or resignation or other vacancy of an independent trustee pending the election of a successor independent trustee.

For so long as the Sponsor or its affiliate acts as investment advisor or manager to us, the Adviser has the right to designate a number of trustees for election to our Board, which number will initially be two; provided that if the number of trustees constituting our Board is increased or decreased, the number of

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Each trustee will serve until his, her or (if the trustee is an entity) its resignation, removal, death, dissolution, termination of legal existence, adjudication of legal incompetence or the election and qualification of his, her or its successor. Although the number of trustees may be increased or decreased, a decrease may not shorten the term of any incumbent trustee. Any trustee may resign at any time or may be removed by the shareholders only for "cause," and then only upon the affirmative vote of shareholders entitled to cast at least two-thirds of the votes entitled to be cast on such matter. In addition, any trustee may be removed, at any time, but only for "cause" by written instrument, signed by a majority of the trustees. For this purpose, "cause" means, with respect to any particular trustee, conviction of a felony or a final judgment of a court of competent jurisdiction holding that such trustee caused demonstrable, material harm to us through bad faith or active and deliberate dishonesty. A vacancy on our Board for any reason other than removal for "cause" by the shareholders may be filled only by a vote of a majority of the remaining trustees. A vacancy on our Board resulting from removal by the shareholders for "cause" may be filled only by the shareholders. However, if the trustee so removed had been designated to serve on our Board by the Adviser, then the Adviser shall have the exclusive right to designate the successor trustee for election to our Board to replace the removed trustee. Any election by our shareholders or our Board to replace a removed trustee must comply with the terms or our Declaration of Trust and bylaws providing for, as applicable, the Adviser's exclusive right to designate one or more trustees to serve on our Board, including without limitation as a successor trustee to a removed trustee, and the qualifications applicable to an independent trustee.

Our Board will generally meet quarterly or more frequently if necessary. Our trustees are not required to devote all of their time to our business and are only required to devote the time to our business as their duties may require. Consequently, in the exercise of their duties as trustees, our trustees will rely heavily on the Adviser and on information provided by the Adviser. As part of our trustees' duties, our Board will supervise the relationship between us and the Adviser. Our Board is empowered to approve the payment of compensation to trustees for services rendered to us.

Our Board will adopt written policies on investments and borrowings, the general terms of which are set forth in this Registration Statement. Our Board may revise these policies or establish further written policies on investments and borrowings and will monitor our administrative procedures, investment operations and performance.

#### Committees of our Board
Our entire Board is responsible for supervising our business. However, pursuant to our bylaws, our Board may delegate some of its powers to one or more committees as deemed appropriate by our Board, provided that each committee consists of at least a majority of our independent trustees. Members of the committee discussed below have been appointed by our Board.

#### Audit Committee
The Audit Committee is composed of Lori Okun, Jayme Fagas and Matthew Whalen and operates pursuant to its charter, which was approved by our Board. The charter sets forth the responsibilities of the Audit Committee. The primary function of the Audit Committee is to serve as an independent and objective party to assist our Board in selecting, engaging and discharging our independent accountants, reviewing the plans, scope and results of the audit engagement with our independent accountants, approving professional services provided by our independent accountants (including compensation therefore), reviewing the independence of our independent accountants and reviewing the adequacy of our internal controls over financial reporting.

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Each of the members of the Audit Committee meets the independence standards and financial literacy requirements for service on an audit committee of a board of trustees pursuant to the Exchange Act and New York Stock Exchange rules applicable to audit committees and corporate governance. Lori Okun serves as Chair of the Audit Committee and qualifies as the "audit committee financial expert," as that term is defined under Item 407 of Regulation S-K, as promulgated under the Exchange Act. The SEC has determined that the audit committee financial expert designation does not impose on a person with that designation any duties, obligations or liability that are greater than the duties, obligations or liability imposed on such person as a member of the audit committee of our Board in the absence of such designation.

The Audit Committee adopted procedures for the processing of complaints relating to accounting, internal control and auditing matters. The Audit Committee will oversee the review and handling of any complaints submitted pursuant to the forgoing procedures and of any whistleblower complaints.

#### The Adviser
We are externally managed by the Adviser, an affiliate of the Sponsor. The Adviser is registered with the SEC as an investment adviser pursuant to the Advisers Act.

Under the terms of the Management Agreement, the Adviser is responsible for selecting and acquiring assets on our behalf, evaluating and monitoring our investments and providing day-to-day managerial services to us, subject to the overall supervision of our Board. We or the Adviser may retain other service providers in connection with our operations, including, without limitation, administration, legal and accounting support. The Adviser will seek to leverage the resources of the Sponsor to achieve our investment goals and objectives.

#### Investment Committee
All investment opportunities are generally approved by the Adviser's Investment Committee. The Investment Committee includes the individuals named below, as well as selected professionals from our investments team:

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| | |
|:---|:---|
| **Name**  | **Position at Sponsor and/or the Adviser**  |
| Michael Nierenberg | Chief Executive Officer, President & Chairman of the Board |
| Charles Sorrentino | Managing Director, Head of Investments |
| Varun Wadhawan | Managing Director, Corporate Strategy and Mergers and Acquisitions |
| Martin Migliara | Managing Director, Investments |
| Sanjeev Khanna | Managing Director, Capital Markets |
| Jerome Le Jamtel | Head of Risk |
| Satish Mansukhani | Managing Director, Investment Strategy |
| David Zeiden (Observer) | Chief Legal Officer |

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For information concerning the backgrounds of Messrs. Nierenberg, Sorrentino and Zeiden, see "— *Trustees and Executive Officers*" above. For information concerning the background of Varun Wadhawan, Martin Migliara, Sanjeev Khanna, Jerome Le Jamtel, Satish Mansukhani and Peter Smith, see below.

***Varun Wadhawan, Investment Committee Member.*** Mr. Wadhawan is a Managing Director at the Sponsor, where he leads Corporate Strategy and Mergers & Acquisitions and has been instrumental in driving the investment and acquisition of various operating businesses. Mr. Wadhawan has worked for the Sponsor since 2016, originally as a Managing Director in the Private Equity division of Fortress, the Sponsor's former external manager.

Prior to joining the Sponsor, Mr. Wadhawan spent ten years at Bank of America Merrill Lynch in the Financial Institutions Investment Banking Group where he executed numerous M&A and capital raising transactions. Prior to Bank of America Merrill Lynch, Mr. Wadhawan worked at American Express and KPMG.

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Mr. Wadhawan received an M.B.A. from Cornell University, is a member of the Institute of Chartered Accountants of India and holds the Chartered Financial Analyst designation.

***Martin Migliara, Investment Committee Member.*** Mr. Migliara is a Managing Director at the Sponsor and heads the firm's European office, based in London. He has been with the Sponsor since April 2023.

Prior to joining the Sponsor, Mr. Migliara served as a Managing Director at Bank of America Merrill Lynch in London from 2008 to December 2022, where he ran Global Asset-Based Securities origination and lending, including European Real Estate Structured Finance. He also served on the boards of Mortgages PLC and Wave Lending.

Mr. Migliara began his career at Bear Stearns in 1991 in the Financial Analytics and Structured Transactions ("**FAST**") Group, where he eventually led Whole Loan Structuring. In 1999, he moved to Bear Stearns International in London to head the FAST Group in Europe. While at Bear Stearns, Mr. Migliara served on the board of Rooftop Mortgages and helped in building Bearimmo, a French mortgage business.

Mr. Migliara holds a B.A. in Mathematics from Baruch College, City University of New York.

***Sanjeev Khanna, Investment Committee Member.*** Mr. Khanna is a Managing Director at the Sponsor, where he leads the Capital Markets function. He has been with the Sponsor since 2009. He has more than 30 years of experience in the mortgage and consumer finance industries, working with a broad range of participants including servicers of commercial and residential mortgage and consumer loans, asset managers, originators, rating agencies, trustees, accounting firms, lenders, and investors.

Mr. Khanna was previously a Managing Director in the Private Equity division of Fortress, the Sponsor's former external manager. He joined Fortress in 2009, prior to which Mr. Khanna spent over twenty years at Morgan Stanley, holding various leadership roles within the structured finance, fixed income, and capital markets groups.

Mr. Khanna holds a B.S. in Industrial Engineering from Columbia University.

***Jerome Le Jamtel, Investment Committee Member.*** Mr. Le Jamtel serves as the Head of Risk at the Sponsor. He has been with the Sponsor since 2023. Mr. Le Jamtel is responsible for all risk policies, monitoring and controls at the Sponsor and its operating companies, including Newrez, Genesis and GreenBarn, and works closely with the Capital Markets team to manage risk across the entire Rithm enterprise.

Prior to joining the Sponsor, Mr. Le Jamtel served for nine years as Chief Risk Officer, and Head of Risk, Legal, Compliance, and Regulatory Affairs for the Americas at Natixis. Mr. Le Jamtel was a member of the Executive Committee, including all key governance committees of the firm. Mr. Le Jamtel has over 34 years of experience in overseeing U.S. and international credit businesses, securitized products, structured finance, asset finance and a wide range of capital market products in Asia, Europe and the Americas.

Mr. Le Jamtel graduated from Ecole Superieure de Commerce de Paris and Ecole Centrale Paris. He is a FINRA Registered Principal with certifications including Series 7, 63, 79, and 24.

***Satish Mansukhani, Investment Committee Member.*** Mr. Mansukhani is a Managing Director leading Investment Strategy at the Sponsor. In this role, Mr. Mansukhani generates thought leadership across public markets, the economy, the Sponsor's products and offerings channeled towards developing the ABF sector.

Prior to joining the Sponsor in 2023, Mr. Mansukhani was a was a well-recognized and perennial award-winning Institutional Investor Global Fixed Income Research ranked analyst and strategist, known for advising asset managers and developing state-of-the-art methodologies and analytics to enable or refine their investment decision making.

Mr. Mansukhani holds an M.B.A. from the Texas McCombs School of Business and a Bachelor of Engineering from the University of Mumbai.

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#### Code of Business Conduct and Ethics
We adopted a Code of Business Conduct and Ethics that applies to all of our trustees, officers and employees (if any), and to all of the officers and employees (including temporary employees) of the Adviser, including our principal executive officer, principal accounting officer or controller, and any other individual designated by our Chief Legal Officer or our Chief Compliance Officer. Our Code of Business Conduct and Ethics, as it relates to those also covered by the Adviser's policies and procedures, operates in conjunction with, and in addition to, the Adviser's policies and procedures. Our Code of Business Conduct and Ethics is designed to comply with SEC regulations relating to codes of conduct and ethics.

#### Corporate Governance Guidelines
We adopted corporate governance guidelines to advance the functioning of our Board and the Audit Committee and to set forth the expectations of our Board as to how it and any committees should perform its and their respective functions.

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#### ITEM 6.

#### EXECUTIVE COMPENSATION

#### Compensation of Executive Officers
We are externally managed and have no employees. Our executive officers serve as officers of the Sponsor and are employees of the Sponsor or one or more of its affiliates and do not receive any cash compensation from us for serving as our executive officers. The Management Agreement does not require our executive officers to dedicate a specific amount of time to fulfilling the Adviser's obligations to us under the Management Agreement.

Our Adviser makes all decisions relating to the compensation of our executive officers based on factors it deems appropriate, and, except for the compensation of our chief financial officer and chief legal officer, is not able to segregate and identify any portion of the compensation that it awards to our executive officers as relating solely to service performed for us, because the services performed by our executive officers are not performed exclusively for us.

Furthermore, we do not have employment agreements with our executive officers, we do not provide pension or retirement benefits, perquisites or other personal benefits to our executive officers, our executive officers have not received any nonqualified deferred compensation and we do not have arrangements to make payments to our executive officers upon their termination or in the event of a change in control of us.

A description of the Management Agreement, and fees that we pay to the Adviser is found in "*Item 1. Business — Management Agreement*" above.

#### Compensation of Trustees
We intend to compensate each of our independent trustees with an annual retainer of $130,000, consisting of $65,000 paid in equal $16,250 quarterly installments in cash or vested Class E shares, or a combination thereof, at the election of the trustee, and $65,000 in the form of an annual grant of restricted Class E shares, which will generally be scheduled to vest one year from the date of grant, subject to the trustee's continued service. Additionally, the Chair of the Audit Committee will receive an additional annual cash retainer of $15,000, and the other members of the Audit Committee will receive an additional annual cash retainer of $10,000, in each case paid in equal quarterly installments in cash or vested Class E shares, or a combination thereof, at the election of the Audit Committee member. The initial Chair of the Audit Committee is Lori Okun. We do not intend to pay our trustees additional fees for attending board or committee meetings, but we intend to reimburse each of our trustees for reasonable out-of-pocket expenses incurred in attending board and committee meetings (including, but not limited to, airfare, hotel and food). Our trustees who are affiliated with the Adviser will not receive additional compensation for serving on our Board or committees thereof.

Our Board has adopted the Rithm Perpetual Life Residential Trust Independent Trustee Compensation Plan (the "**Trustee Plan**"), which will govern the payment of annual retainers and equity awards to our independent trustees. The Trustee Plan includes an initial share authorization of 500,000 Class E shares and provides for equity awards in the form of restricted stock awards. Our Board will serve as the administrator of the Trustee Plan.

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#### ITEM 7.

#### CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

#### Management Agreement
We have entered into the Management Agreement with the Adviser, pursuant to which we pay the management fee and performance fee. In addition, pursuant to the Management Agreement, we reimburse the Adviser for certain expenses as they occur. See "*Item 1. Business — Management Agreement*."

#### Indemnification Agreements with Trustees and Officers
We have entered into indemnification agreements with each of our trustees and executive officers. Pursuant to the terms of these indemnification agreements, we would indemnify and advance expenses and costs incurred by our trustees and executive officers in connection with any claims, suits or proceedings brought against such trustees and executive officers as a result of his or her service. However, our indemnification obligation is subject to the limitations set forth in the indemnification agreements and in our Declaration of Trust. We also maintain a directors and officers insurance policy. For more information, see "*Item 12. Indemnification of Directors and Officers*" below.

#### Initial Capitalization
In the Initial Capitalization, we were capitalized on September 12, 2025 through Rithm Investor's purchase from us of an aggregate of 100 common shares for an aggregate purchase of price of $2,000 and at a price per share equal to $20.00. These shares were issued and sold in reliance upon the available exemptions from registration requirements of Section 4(a)(2) of the Securities Act.

#### Sponsor Investment
In order to facilitate the origination or acquisition of our initial investments, the Sponsor (or an affiliate) has agreed to purchase (in one or more purchases) the lesser of (i) 5% of our total NAV and (ii) $20 million of Class E shares at a price per share equal to the most recently determined NAV of Class E shares or, if a NAV has yet to be calculated, then at a price of $20.00 per Class E share. As of the date of this Registration Statement, the Sponsor (or an affiliate) has not purchased any Class E shares in connection with the Sponsor Investment.

The Sponsor may, from time to time, request to have any Class E shares it receives in connection with the Sponsor Investment be repurchased by us at a price per share equal to the most recently determined NAV per Class E share as of the Repurchase Date (as defined below). Any such repurchase will not be subject to the Early Repurchase Deduction.

#### Flow Mortgage Loan Purchase and Sale Agreements
The Company is party to two Flow Mortgage Loan Purchase and Sale Agreements (each, a "**Flow MLPA**") with Rithm Loan Aggregation Trust (the "**Seller**"), a Rithm Affiliate. Under the Flow MLPAs, the Company or subsidiaries thereof may, from time to time, purchase, on a servicing-released basis, (i) RTLs and similar loan types and (ii) NQM loans and similar loan types that meet the eligibility criteria set forth in the applicable agreement. Each Flow MLPA contains customary terms governing periodic mortgage loan sales, including representations and warranties relating to the origination, underwriting, documentation and legal compliance of the related mortgage loans, as well as the Seller's repurchase for loans that fail to conform to the requirements of the applicable Flow MLPA. The Company's obligation to purchase any mortgage loan is subject to standard conditions precedent, including, among other matters, the delivery of specified loan documentation.

Because the Seller is an affiliate of the Adviser, the Company's transactions under the Flow MLPAs may give rise to actual or potential conflicts of interest, including with respect to pricing determinations, eligibility assessments and the enforcement of the Seller's obligations under the Flow MLPAs. The Company seeks to mitigate these conflicts through its compliance policies and procedures; however, there can be no assurance that such measures will be effective in all circumstances or that transactions with the Seller will be

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 *on terms as favorable as those that could be obtained from unaffiliated third parties. See "Risk Factors — Risks Related to our Relationship with the Adviser and the Management Agreement — There are conflicts of interest in our relationships with the Adviser, which could result in outcomes that are not in our best interests."* 

As of the date of this Registration Statement, no RTLs, NQM loans or other loan types have been purchased under the Flow MLPAs.

#### Potential Conflicts of Interest
The Adviser and its affiliates engage in investment activities that are independent from and may from time to time conflict with ours. The Adviser and its senior investment professionals manage a variety of other pools of capital. Rithm Affiliates, including the Sponsor, engage, and in the future may engage, in a broad spectrum of activities, including activities in which they may invest their own capital in a broad range of investments, including RTLs, and participate in investment advisory activities. In the future, instances may arise in which the interests of the Adviser or its affiliates conflict with our interests or the interests of our investors. In certain cases, the investment objectives and programs of such other Rithm Affiliates and their principal investments may be substantially similar to, or overlap with, our investment objectives and proposed investment program. Additionally, we and certain Rithm Affiliates, including the Sponsor, may from time to time invest in the same investments, including RTLs. Certain Rithm Affiliates also originate and sell loans that are expected to be purchased by us. From time to time, there will be an overlap in investments between us and certain Rithm Affiliates, including the Sponsor. We expect that certain investments that would be suitable for us will be retained by the Sponsor or affiliates that originated such investments or will be sold to third parties and therefore will not be available for investment and will not be part of the Adviser's investment allocation protocols. Investment decisions may be made by the same team of investment professionals for the same or different programs or accounts depending upon the investment strategy employed. The Adviser seeks to mitigate any conflicts to us in connection with the foregoing by allocating investment opportunities to clients (including us) and other Rithm Affiliates, including the Sponsor, in a fair and equitable manner and in accordance with the Adviser's allocation policy.

The Sponsor is a public company. As a result, the Sponsor and Adviser have incentives relating to the interests of the Sponsor's stockholders that could differ from, and conflict with, the interests of their clients and investors in pooled investment vehicles managed by the Adviser (including us), such as conflicts arising from the allocation of expenses, fee offsets and investment opportunities (including without limitation, opportunities to invest in certain assets which might otherwise be appropriate investments for clients of the Adviser). The Adviser will endeavor to resolve such conflicts in a manner deemed fair and equitable to the extent possible under the prevailing facts and circumstances.

#### Dealing with Conflicts of Interest
If any matter arises that the Adviser determines in its good faith judgment constitutes an actual conflict of interest, the Adviser may take such actions as it determines in good faith to be necessary or appropriate to ameliorate the conflict. These actions may include, by way of example and without limitation, (i) presenting a conflict of interest to the Adviser's Conflicts & Compliance Committee (the "**Conflicts Committee**"), (ii) presenting or disclosing a conflict of interest to our Board as may be expressly provided for in our Declaration of Trust or investment guidelines, (iii) presenting a conflict of interest to an Independent Compliance Reviewer as may be provided for in our Independent Compliance Reviewer Policy or investment guidelines, (iv) disclosing the conflict to our shareholders (including, without limitation, in reports or other communications), (v) validating the arms'-length nature of the transaction, (vi) implementing certain policies and procedures designed to ameliorate such conflict of interest or (vii) otherwise handling the conflict as determined appropriate by the Adviser in its discretion. The Conflicts Committee is chaired by the Adviser's Chief Legal Officer and its members primarily include other senior non-investment professionals of the Sponsor. The Conflicts Committee meets to review conflicts of interest among the Sponsor, the Sponsor's employees, us and Other Rithm Accounts. There can be no assurance that the Adviser will identify or resolve all conflicts of interest in a manner that is favorable to us as a whole or to any shareholder.

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activities relating to us and our shareholders and may limit the remedies available to our shareholders in respect of breaches of such duties.

#### Acquired Managers
In November 2023, the Sponsor completed its acquisition of Sculptor. Sculptor is a leading global alternative asset manager and provides asset management services and investment products across credit, real estate and multi-strategy platforms through commingled funds, separate accounts and other alternative investment vehicles. As of the date of this Registration Statement, the Sponsor and Sculptor operate their respective investment businesses largely independently, including pursuant to an information barrier, with each remaining under its current brand and led by separate management and investment teams.

Sculptor currently provides to the Sponsor and the Adviser certain back office support (e.g., compliance, fund operations and accounting support) pursuant to a shared services agreement, and the scope of such back office support may be expanded over time (e.g., to include information technology). In addition, there is (and in the future there is expected to be) overlap in investment strategies and investments pursued by the Sponsor, the Adviser, us and/or Other Rithm Accounts, on the one hand, and Sculptor and Sculptor Accounts, on the other hand. Sculptor will have no obligation to, and may not, share investment opportunities that may be suitable for us with the Sponsor or the Adviser, and none of us, the Sponsor or the Adviser will have rights with respect to any such opportunities.

In addition to conflicts relating to existing Sculptor Accounts, Sculptor will not be restricted from forming or establishing new Sculptor Accounts, such as additional funds or successor funds. Such Sculptor Accounts could also compete with, or otherwise conduct their affairs without regard as to whether or not they adversely impact, us, and will be permitted to make investments of the type that are suitable for us without our consent or the consent of the Sponsor or its affiliates. Including as discussed herein, new and existing Sculptor Accounts, on the one hand, and us and/or Other Rithm Accounts, on the other hand, may purchase or sell investments to one another, as well as jointly pursue one or more investments. It is also possible that a Sculptor Account may hold an interest in an obligor in which we also hold an interest, although in a different part of the capital structure. In such situations, we could be adversely affected by the activities of such Sculptor Account, including because Sculptor is expected to manage the interests of such Sculptor Account in a way that is different from (or agnostic to) our interests (e.g., by voting securities or exercising rights in a different manner and/or selling interests at different times than us, particularly as we may have a different investment period and/or harvest period vis-à-vis such Sculptor Account). Sculptor will not have any obligation or duty to act in our interests or the interests of any Other Rithm Account or to make available for our benefit or any Other Rithm Account any information related to a shared investment, or otherwise, which may only exacerbate potential or actual conflicts of interest.

This discussion does not by any means purport to be a complete list or explanation of all actual or potential conflicts that may arise as a result of the Sponsor's acquisition of Sculptor. Additional conflicts not yet known by the Sponsor or Sculptor may arise in the future, and such conflicts will not necessarily be resolved in our favor. Because of the extensive scope of both the Sponsor and Sculptor, and the complexities involved in combining certain aspects of existing businesses, the policies and procedures to identify and resolve such conflicts of interest will continue to be developed over time. No guarantee is made that any such policies and procedures will benefit us or ensure that conflicts of interest are resolved in a manner that is favorable to us or our shareholders.

In September 2025, the Sponsor entered into a definitive agreement to acquire Crestline, an alternative investment manager with approximately $17 billion assets under management, expanding the Sponsor's credit and alternatives capabilities. The deal adds exposure to Crestline's core businesses in direct lending, opportunistic credit, and fund liquidity solutions, and also brings in insurance and reinsurance investment capacities. The acquisition is expected to close in the fourth quarter of 2025, subject to regulatory approval and closing conditions. Following closing of the transaction, the conflicts of interest described in this section are generally expected to apply mutatis mutandis as between the Sponsor and us, on the one hand, and Crestline, on the other hand.

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#### Services Provided by Affiliates of the Sponsor
The Affiliated Service Providers may be retained to provide services to us or entities through which investments are held by us that would otherwise be performed for us or such entities by third parties. These services include sourcing, originating and servicing loans, brokerage services, valuation of investments and due diligence with respect to the foregoing, as well as property management (including asset management platforms and rental service platforms), property disposition, maintenance, lease renewals, collateral document remediation, construction management, real estate tax appeal services and similar property management services and other services of the type typically provided by third parties, as determined in good faith by the Adviser.

The Sponsor may also acquire or invest in additional service providers or entities to provide services that are similar or additional to the services described above or that may engage in transactions with the Sponsor, us and/or our investments. For the avoidance of doubt, any payments for such services or in connection with such transactions to non-affiliated entities in which the Sponsor owns an interest will not reduce the management fee or otherwise be shared with us. The provision of such services may cause conflicts of interest, including with respect to whether to engage such entities to provide such services and/or with respect to the consideration paid in connection therewith and the other terms and conditions of such services.

Any fees, compensation and costs payable to the Affiliated Service Providers in connection with services provided by such Affiliated Service Providers that (i) do not exceed market rates, as determined by the Adviser to be appropriate under the circumstances or (ii) are approved by a majority of our trustees, including a majority of our independent trustees, will not offset or otherwise reduce the management fee or otherwise be shared with us. Such fees and compensation payable to the Affiliated Service Providers may include servicer administration fees, loan delivery, loan sourcing, underwriting or origination fees, rate lock extension fees, fees for closings, title reports, closing and title insurance, valuations, due diligence or appraisals.

As contemplated above, the Adviser may need to make determinations of market rates (i.e., rates that fall within a range that the Adviser has determined is reflective of rates in the applicable market and certain similar markets, though not necessarily equal to or lower than the median rate of comparable firms, and, in certain circumstances, may be in the top of the range) based on its consideration of a number of factors, which are generally expected to include the experience of the Adviser and its affiliates, including the Sponsor, with non-Affiliated Service Providers as well as benchmarking data and other methodologies determined by the Adviser to be appropriate under the circumstances. In respect of benchmarking, while the Sponsor often obtains benchmarking data regarding the rates charged or quoted by third parties for services similar to those provided by affiliates of the Sponsor in the applicable market or certain similar markets, relevant comparisons may not be available for a number of reasons, including, without limitation, as a result of a lack of a substantial market of providers or users of such services or the confidential or bespoke nature of such services. In addition, benchmarking data is often based on general market and broad industry overviews, rather than determined on an asset-by-asset basis. As a result, benchmarking data may not take into account specific characteristics of individual assets then owned or to be acquired by us, or the particular characteristics of services provided. Further, it could be difficult to identify comparable third-party service providers that provide services of a similar scope and scale as the Affiliated Service Providers that are the subject of the benchmarking analysis. For these reasons, such comparisons may not result in precise market terms for comparable services. Expenses to obtain benchmarking data will be borne by us and will not offset the management fee. Finally, in certain circumstances, the Adviser can be expected to determine that third party benchmarking is unnecessary, either because the price for a particular good or service is mandated by law (e.g., title insurance in rate regulated states) or because the Adviser or an affiliate thereof has access to adequate market data to make the determination without reference to third party benchmarking. For example, in certain circumstances an Affiliated Service Provider could provide services to third parties, in which case, if the rates charged to such third parties are consistent with the rates charged to us, then a separate benchmarking analysis of such rates is not expected to be prepared.

Conflicts related to Affiliated Service Providers will not necessarily be resolved in our favor, and shareholders may not be entitled to receive notice or disclosure of the occurrence of these conflicts.

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#### Buying and Selling Loans and Assets
We are expected to purchase assets from or sell assets to Affiliated Service Providers, including the acquisition by us of pools of loans originated by Genesis, Newrez or other affiliates or related parties of the Sponsor. However, Affiliated Service Providers will have no obligation to sell such loans to us and may retain such loans or sell such loans to third parties. Any such transactions between us and Affiliated Service Providers will be conducted in accordance with, and subject to, the Sponsor's and the Adviser's legal and contractual obligations to us. These purchases and sales may cause conflicts of interest, including with respect to the consideration paid in connection therewith and the other terms and conditions of such transactions.

In connection with their origination activities, Affiliated Service Providers are expected to receive fees or other consideration prior to or after loans or other assets are transferred us by such Affiliated Service Providers. Such fees and other consideration could take the form of servicer administrative fees for our securitizations, loan delivery, loan sourcing, underwriting or origination fees, rate lock extension fees, fees for closings, title reports, closing and title insurance or appraisals. In addition, Affiliated Service Providers may be entitled to any interest and other payments earned from or received in connection with loans or other assets prior to their transfer to us. The price at which an Affiliated Service Provider transfers a loan or other asset to us is expected to reflect a spread over the price at which it originated the loan or asset or otherwise acquired such loan or asset. Such fees, payments, spread and other consideration shall not reduce the management fee or otherwise be shared with us.

With respect to acquisitions by us of pools of loans originated by Genesis, Newrez or another Affiliated Service Provider, a description of each pool to be acquired by us will be sent to our Board or, if applicable, an Independent Compliance Reviewer. If our Board has appointed an Independent Compliance Reviewer, the description of the pool of loans provided to such Independent Compliance Reviewer will generally be accompanied by specific information, including the market price of the loan pool or other information and an independent valuation, to allow such Independent Compliance Reviewer to determine the appropriate process has been adhered to and that the applicable transaction appears to be fair to our shareholders. Such Independent Compliance Reviewer will then confirm whether the terms of the proposed transactions appear reasonably fair and equitable and, if entered into, appear to be consistent with terms that would reasonably be expected in a comparable transaction between unrelated parties effected on an arms-length basis. If such Independent Compliance Reviewer approves a particular transaction, then the Sponsor, the Adviser and their respective affiliates will not have any liability to us or the shareholders for causing us to purchase loans or other assets in such transaction and for such other actions taken in good faith by them, including actions in pursuit of their own interests and irrespective of whether an Affiliated Service Provider received consideration in connection with such transaction that is not shared with us or the shareholders. The fees and expenses of any Independent Compliance Reviewer will be borne by us, and our Board may change the third party that serves as such Independent Compliance Reviewer. To the fullest extent permitted by applicable law, any Independent Compliance Reviewer shall not owe any fiduciary (or other similar) duty to, have any obligation to act in the interests of or have any other duty to, us, any shareholder or the shareholders as a group in connection with the activities of such Independent Compliance Reviewer, other than a duty to act in good faith.

The Sponsor, the Adviser or their affiliates may receive warrants or other equity securities in consideration for the performance of services to or for the benefit of parties that may originate loans or other investments acquired by us, and any warrants or other equity securities granted to such persons in consideration for such services (and not expressly in consideration for us acquiring loans or other investments) shall be retained by the Sponsor, the Adviser and their affiliates and shall not offset or otherwise reduce the management fee. Any warrants or other equity securities granted to us, the Adviser or affiliates thereof expressly in consideration for us acquiring loans or other investments shall typically be retained by us. To the extent that any such warrants or other equity securities are not retained by us, then the value of any such warrants or other equity securities shall be used 100% to offset the management fee. The Adviser has an incentive to cause us to buy originated loans and other investments from such parties.

#### Investing in Different Levels of the Capital Structure
We may hold an interest in an investment that is different (including with respect to relative seniority) than the interests held by the Sponsor or an Other Rithm Account. In these situations, conflicts of interest

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will arise. While the Adviser will seek to mitigate such conflicts, in these situations, the Adviser may be required to take action when it will have conflicting loyalties between its duties to us, the Sponsor and such Other Rithm Account, which may adversely impact us. In addition, conflicts may arise in determining the amount of an investment, if any, to be allocated among the potential investors and the respective terms thereof. There can be no assurance that the return on our investment will be equivalent to or better than the returns obtained by the Sponsor or any Other Rithm Account participating in the transaction. It is possible that in a bankruptcy, insolvency or similar proceeding, our interest may be subordinated or otherwise adversely affected by virtue of the involvement and actions of the Sponsor, an Other Rithm Account or the Sponsor's actions on behalf of such Other Rithm Account. The conflicts of interest described herein are also likely to apply to the extent that we hold an interest in an obligor that is different from the interests held by an Acquired Manager Account in such obligor.

#### Investments Alongside Other Rithm Accounts
We may co-invest, from time to time, with the Sponsor and/or one or more Other Rithm Accounts in investments that are suitable for us, the Sponsor and such Other Rithm Accounts, as described in "— *Allocation of Investment Opportunities*." Even if we, the Sponsor and such Other Rithm Accounts invest in the same securities, conflicts of interest may still arise. For example, it is possible that as a result of legal, tax, regulatory, accounting or other considerations, the terms of such investment (including with respect to price and timing) for us, the Sponsor and/or such Other Rithm Accounts may not be the same. Additionally, we and/or such Other Rithm Accounts may have different expected termination dates and/or investment objectives (including return profiles), and the Sponsor and the Adviser, as a result, may have conflicting goals with respect to the price and timing of disposition opportunities. Moreover, it is possible that in the event of a cross-guarantee or other similar arrangement between us, the Sponsor and/or an Other Rithm Account, a counterparty, lender or other unaffiliated participant in a transaction requires or desires facing only one fund entity or group of entities, which may result in (i) any of us, the Sponsor and/or such Other Rithm Account being solely liable with respect to such third party for such other fund's or vehicle's share of the applicable obligation and/or (ii) any of us, the Sponsor and/or such Other Rithm Account being jointly and severally liable for the full amount of the applicable obligation, which, in turn, may result in us, the Sponsor and/or such Other Rithm Account entering into a back-to-back or other similar reimbursement agreement. In such situations, it is not expected that any of us, the Sponsor and/or such Other Rithm Account would be compensated (or provide compensation to the other) for being primarily liable vis-à-vis such third-party counterparty. Furthermore, as a result of the incurrence of indebtedness on a joint and several or cross-collateralized basis, we may be required to contribute amounts in excess of our pro rata share, including additional capital to make up for any shortfall if such vehicles are unable to repay their pro rata share of such indebtedness.

#### Service Providers
Certain advisors and other service providers (including accountants, administrators, lenders, bankers, brokers, attorneys, consultants, custodians, investment or commercial banking firms and their respective affiliates) to us or obligors of our portfolio investments may also provide goods or services to or have business, personal, political, financial or other relationships with the Sponsor and its affiliates. Such advisors and service providers may be investors in us, the Sponsor and/or an Other Rithm Account, current or former portfolio companies, obligors or businesses of the Sponsor or an Other Rithm Account, sources of investment opportunities, co-investors, joint venture partners or counterparties therewith. These relationships may influence the Adviser in deciding whether to select or recommend such a service provider to perform services for us or an obligor (the cost of which will generally be borne directly or indirectly by us or such obligor, as applicable). In certain circumstances, advisors and service providers, or their affiliates, may charge different rates or have different arrangements for services provided to the Sponsor, Other Rithm Accounts or Rithm Affiliates as compared to services provided to us and obligors of our portfolio investments, which will result in more favorable rates or arrangements than those payable by us or obligors of our portfolio investments.

#### Transactions with Potential and Actual Investors and Co-Investors
Shareholders should note that the Sponsor, Other Rithm Accounts and their respective affiliates may from time to time engage in transactions with prospective and actual investors and co-investors that entail

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business benefits to such investors and the Sponsor and its affiliates. Such transactions may be entered into prior to or concurrently with a shareholder's investment in us. The nature of such transactions can be diverse, and may include benefits relating to us, the Sponsor, Other Rithm Accounts and their respective obligors, businesses or portfolio companies. Examples include the ability to co-invest alongside the Sponsor or Other Rithm Accounts, sales of companies to shareholders and recommendations to underwriters for allocations in initial public offerings, loans to co-investors (or joint venture partners) by the Sponsor or an Other Rithm Account, a broad range of commercial transactions in the ordinary course of business with such investors, obligors and portfolio companies and the purchase or disposition of interests to or from obligors or portfolio companies. Investing in us does not give investors access to any such transactions.

#### Co-Investments
From time to time, we expect to make investments with the expectation of offering a portion of our interests therein as a co-investment opportunity to shareholders and/or other third-party investors (including, for the avoidance of doubt, employees or consultants of the Sponsor and persons that have other relationships with the Sponsor). Co-investment opportunities may also be offered to entities managed by or affiliated with the Sponsor.

Investors may participate in co-investments either via a co-investment vehicle managed by the Sponsor or its affiliates (any such vehicle, a "**Rithm Co-Investment Vehicle**"), or as direct lenders to the relevant obligor. Any Rithm Co-Investment Vehicle may be established in connection with an investor's investment in us, as part of a co-investment program or otherwise, and may provide for such investor to make a capital commitment and/or review co-investments on an opt-in or opt-out basis on such terms as may be agreed between us, the Adviser and/or an affiliate, on the one hand, and such co-investor, on the other hand. The Adviser, in its capacity as the adviser of any Rithm Co-Investment Vehicle, may make capital commitments to any such Rithm Co-Investment Vehicle, including, without limitation, to the extent it determines that such a commitment is necessary and/or advisable in light of legal, tax, regulatory or other similar considerations. The use of Rithm Co-Investment Vehicles may have the impact of blending an investor's effective management fee rate (and/or performance fee rate) down.

Investments alongside co-investors will involve additional risks which may not otherwise be present, including the possibility that a co-investor may at any time have economic or business interests or goals that are not consistent with ours, may be in a position to take action contrary to our investment objectives or may default on its obligations. In addition, under certain circumstances, we may be liable for actions of our co-investors. While we intend to mitigate these risks contractually, there can be no assurance that we will be successful in doing so. Fees and expenses incurred in respect of any investment (and any transaction or other fee income earned in respect of any investment) will generally be allocated among us and any co-investors on the basis of capital committed by each to the relevant investment; provided that the Adviser shall in its sole discretion be authorized to structure any co-investment opportunity such that one or more of the co-investors do not bear any expenses in connection with any such unconsummated investment, in which case we will (i) bear all, or our disproportionate share, of the costs and expenses relating to any such unconsummated investment and (ii) be entitled to all, or our disproportionate share, of any break-up fees or other similar fees received in connection with any such unconsummated investment. Moreover, expenses related to the organization of a Rithm Co-Investment Vehicle formed to invest in a broken deal may be borne by us, and not the proposed co-investors thereof.

#### Aggregator Entity
The use of an Aggregator Entity may create a conflict of interest in that different tax considerations for funds that invest in the Aggregator Entity and us may cause or result in the Aggregator Entity structuring or disposing of an investment in a manner or at a time that is more advantageous (or disadvantageous) for tax purposes to one investor or to a fund or its investors as compared to us and our shareholders. Any funds that invest with us in an Aggregator Entity may receive different terms and conditions than those described herein.

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#### Allocation of Time, Services or Functions
None of the Sponsor, the Adviser or the Rithm Affiliates will be required to manage us as its sole and exclusive function. The Sponsor, the Adviser and the Rithm Affiliates may engage in or pursue, directly or indirectly, an interest in other business ventures of every kind, nature or description, independently or with others.

The officers, managers and employees of the Adviser also serve as officers, managers and employees of Other Rithm Accounts, the Sponsor and/or Rithm Affiliates. The Adviser has widespread and varied business interests and the officers, managers and employees of the Adviser may owe fiduciary duties to such Other Rithm Accounts and/or the Sponsor under applicable law. Conflicts of interest may arise in allocating management time, services or functions among the respective officers and employees of the Adviser and there will be no specific obligation to devote any particular portion of their time to our affairs. Such officers and employees may enter (and thus spend time and resources on) other businesses that the respective officer or employee deems non-conflicting with ours. The Adviser and its respective affiliates manage other investment entities, and are not prohibited from raising money for and managing future investment entities, including other Rithm Affiliates that make the same types of investments as those targeted by us.

The Sponsor's investment team and other employees of the Sponsor will continue to devote such time and attention to the Sponsor and its affiliates and present and future Other Rithm Accounts as may be required to discharge their duties. Conflicts of interest may arise in allocating the business time and attention of members of the Sponsor investment team among us, on the one hand, and the Sponsor, the Adviser and their respective affiliates, subsidiaries and any other present and future business activities and advisory relationships, on the other hand.

Personnel of the Sponsor, the Adviser and other affiliates (if any) that share in the fees and any performance-based compensation from us may also share in the fees and any performance-based compensation generated by the Sponsor, the Adviser, Rithm Affiliates and Other Rithm Accounts. Such personnel may have a greater financial interest in the performance of other entities than us. These factors may incentivize such personnel to devote greater time and resources to, and allocate additional investment opportunities to, such other entities instead of us.

#### Allocation of Investment Opportunities
As a general matter, it is not expected that all investment opportunities identified by the Adviser that are suitable for us will be made available to us. We expect that certain investments that would be suitable for us will be retained by the Sponsor or affiliates that originated such investments or will be sold to third parties and therefore will not be available for investment and will not be part of the Adviser's investment allocation protocols. The Sponsor has established, and the Sponsor and the Adviser will be permitted, in their sole discretion, in the future, to establish Other Rithm Accounts with investment objectives, mandates and policies that are the same or substantially similar to and/or overlap with, ours, in each case, without the consent of, or notice to, any shareholder. Consistent with the Adviser's allocation policy, from time to time, the Adviser will allocate investment opportunities that fall within our investment objectives (including RTLs) between us, the Sponsor, Rithm Affiliates and/or Other Rithm Accounts, and may allocate up to 100% of such an opportunity to Rithm Affiliates, including the Sponsor, and/or Other Rithm Accounts. In this regard, we are expected, from time to time, to invest on a side-by-side basis with Rithm Affiliates, including the Sponsor, and Other Rithm Accounts. In addition, from time to time, Rithm Affiliates, including the Sponsor, and Other Rithm Accounts, will receive an allocation in a pool of loans (including RTLs and NQM loans) which are not allocated to us. For instance, we expect that certain investment opportunities in RTLs and NQM loans will be allocated first to Sponsor securitizations and, thereafter, to us. In determining such allocations, the Adviser takes into account such factors as it deems appropriate, including, without limitation: investment program, objectives and focus; investment capacity; investment sourcing; target investment size and target returns; investment guidelines, restrictions and concentration limits; leverage considerations; available cash, including the timing of capital inflows and outflows and anticipated capital commitments; timing of investment closing; tax, regulatory, policy and procedural considerations (including internal policies and procedures); tolerance for volatility and risk as determined by the Adviser from time to time; desired concentration, exposure and diversification targets; liquidity needs; investment rights and other contractual obligations; the management of actual and potential conflicts of interest; performance

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considerations; domicile; and other factors that the Adviser believes are consistent with the fair and equitable treatment of us, the Sponsor, Rithm Affiliates and any Other Rithm Accounts over time. The Adviser may allocate investment opportunities among us, the Sponsor, Rithm Affiliates and any Other Rithm Accounts based on anticipated or projected investment characteristics based solely on its expectations at the time an investment is made. The Adviser has adopted policies and procedures designed to result in fair and equitable allocations of opportunities across client accounts over time. However, there can be no assurances that the characteristics of an investment will ultimately match the Adviser's expectations at the time such investment was made, and such investment may, as a result, prove to have (or have not) been suitable for us.

The Sponsor, Rithm Affiliates and Other Rithm Accounts are expected to have terms that differ from our terms and may participate in investments on different terms than us, at different levels of the capital structure and/or after the closing of our investments. Furthermore, Rithm Affiliates, including the Sponsor, and Other Rithm Accounts may from time to time be entitled to priority allocations of certain investment opportunities over us (or another Other Rithm Account). Accordingly, our participation in investments with Rithm Affiliates, including the Sponsor, and Other Rithm Accounts is expected to vary on an investment-by-investment basis and there may be investments within our investment objective made by the Sponsor or the Adviser, on behalf of such Rithm Affiliates, including the Sponsor, or Other Rithm Accounts, in which we do not participate or does not participate to the same extent as other investments.

The Sponsor and the Adviser may also give advice and recommend assets, instruments, loans, securities or other investments to Rithm Affiliates or Other Rithm Accounts that differ from the advice given to, or assets, instruments, loans, securities or other investments recommended or bought for, us, even though the investment objectives of us, such Rithm Affiliates and such Other Rithm Accounts may be the same or substantially similar. For example, we may elect to sell all or part of an investment in an asset while the Sponsor or a Rithm Affiliate or an Other Rithm Account continues to hold its investment in the same asset (or increases its exposure to it) (and vice versa).

The Sponsor and the Adviser may agree in the future to address, certain legal, tax, regulatory or other considerations applicable to their respective investors that will impact the allocation of investment opportunities among us, the Sponsor, Rithm Affiliates and Other Rithm Accounts and otherwise impact the time and terms of investment and divestment determinations with respect to us, the Sponsor, Rithm Affiliates and such Other Rithm Accounts.

Rithm Affiliates, including the Sponsor, engage, and in the future may engage, in a broad spectrum of activities, including direct investment activities and investment advisory activities, and have investment activities (including principal investments by the Sponsor or its affiliates for their own account) on behalf of both persons or entities to which they provide investment advice on a principal basis, that are independent from, and may from time to time conflict or compete with, our investment activities.

The Acquired Managers have established, and will be permitted in the future to establish, Acquired Manager Accounts with investment objectives, mandates and policies that are substantially similar to and/or overlap with, ours, in each case, without the consent of, or notice to, any shareholder. As a result, the potential and actual conflicts of interest discussed in this section will also apply in respect of Acquired Managers and Acquired Manager Accounts, and such conflicts may be exacerbated in the future to the extent the operations of the Sponsor and Acquired Manager Account businesses are further integrated.

#### Payment of the Adviser and Affiliates
The Adviser and its affiliates may receive substantial fees for services rendered to us and will also be entitled to reimbursement for out-of-pocket expenses incurred in connection with our business affairs. These fees are not the result of arm's-length negotiations. The Adviser believes that the significant investment by the Adviser and its affiliates in us operates to align, to some extent, the interests of the Adviser with the interests of shareholders, although the Adviser has or is permitted to have economic interests in such other investment funds and investments as well as receive management fees and incentive-based payments and carried interest relating to these interests. Such other investment funds and investments that the Adviser and/or its affiliates manage could compete with us or investments acquired by us. In addition, the Adviser may have an incentive to cause us to pay the foregoing fees to the Adviser to the detriment of other third-party

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creditors of ours. Any of the foregoing decisions may be detrimental to investors and may reduce the return on the investments made by investors. As the management fee does not correlate to the performance of our investments, the possibility exists that a significant management fee would be payable even if we experiences a net loss during a given year. As a result of the fact that the management fee is based on our NAV, there may be an incentive to deploy capital more quickly than otherwise advisable in the absence of such structure.

The Adviser will also be entitled to earn performance-based compensation from us, which may create an incentive for the Adviser to make more speculative investments on our behalf, and make different decisions regarding the use of leverage as well as the timing and manner of the realization of such investments than would be made if such performance-based compensation were not allocated to the Adviser. The performance-based compensation was set by the Adviser without negotiations with any third party.

#### Allocation of Fees and Expenses
From time to time, the Adviser will be required to decide whether costs and expenses are to be borne by us, the Sponsor, the Adviser or an Other Rithm Account, and/or how certain costs and expenses should be allocated among any of our investment vehicles, or between us, the Sponsor, the Adviser and an Other Rithm Account. In addition, there may be circumstances when the Adviser has considered a potential investment on our behalf, has determined not to make such investment and such investment is eventually made by the Sponsor and/or an Other Rithm Account. In these circumstances, the Sponsor and/or such Other Rithm Account may benefit from research conducted on our behalf and/or from costs borne by us in pursuing the potential portfolio investment, but may not be required to reimburse us for expenses incurred in connection with such investment. It is also possible that we may benefit from diligence conducted on behalf of the Sponsor and/or an Other Rithm Account and/or from costs borne by the Sponsor and/or such Other Rithm Account. The Sponsor and the Adviser will make judgments regarding appropriate expense allocation, notwithstanding their interests in the outcome, in accordance with the relevant governing documents and any applicable allocation policies. Conflicts of interest may arise in allocating any such fees and expenses between us, the Sponsor, the Adviser and Other Rithm Accounts, and may also be present to the extent we and/or the Adviser, on the one hand, and an Acquired Manager, on the other hand, are determining how to allocate any fees and expenses between us and/or an Acquired Manager Account.

The Sponsor, the Adviser and the Acquired Managers may perform operational, accounting, legal and compliance and information technology services internally, on our behalf. We may also engage third parties (e.g., fund administrators) and in such circumstances there may be overlap in the services provided by third parties and in-house personnel. Such third-party expenses will be charged to us. Given the different treatment of such expenses (depending on whether they were incurred in connection with in-house personnel or a third party), the Adviser and its affiliates may face conflicts of interest in determining whether to engage third parties in lieu of in-house personnel to provide services to us. The Adviser may in its sole discretion engage a third party to provide services to us, notwithstanding the fact that such services were previously provided at no cost by internal service providers, with the result that we bear the expense of such services.

#### Cross Trades
Certain transactions in which the Adviser causes an effective transfer of securities or other property or economic interests from the account of one or more clients to the account of one of more clients may present special fiduciary or regulatory considerations. Transactions that fall into this category include cross-trades (i.e., transactions in which the Adviser causes a security or other asset to be transferred from one client account to another, whether directly or through a broker-dealer or other financial intermediary). Such transactions are collectively referred to as "**Inter-Client Transactions**."

The Adviser may enter into such Inter-Client Transactions between clients where permitted by applicable law and in accordance with its Cross Trade and Inter-Client Transaction Policy (the "**Cross Trade Policy**"). The Adviser may permit certain Inter-Client Transactions in situations where:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the Adviser determines that the Inter-Client Transaction is in the best interests of both client accounts;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the Inter-Client Transaction is effected at a price and under circumstances that the Adviser has determined by reference to independent market indicators, or other factors, which the Adviser believes to constitute best execution for both client accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the Inter-Client Transaction is approved by the Chief Legal Officer of the Sponsor or the Conflicts Committee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the Inter-Client Transaction is permitted by applicable law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the Adviser receives no transaction-based compensation.

In general, the Adviser does not engage in "cross transactions" that require market execution. However, "inadvertent" cross transactions may occur when trades cross in the market. In these instances, the Adviser does not instruct the broker to directly move positions between client accounts and the broker-dealer establishes the price for the transaction such that they are not considered "Inter-Client Transactions" under the Cross Trade Policy.

#### Principal Transactions
Transactions by a client of the Adviser (or a Rithm Affiliate) in which the Adviser and its control persons' aggregate ownership exceeds a certain percentage to buy securities from (or sell securities to) another client may be considered principal transactions under Section 206(3) of the Advisers Act. These transactions create a conflict of interest because the Adviser and its control persons have an incentive to recommend/buy securities from (or sell securities to) clients based on their own financial interests, rather than solely in the interest of a client. We expect to that acquisitions of RTLs originated by Genesis and certain other assets from other Affiliated Service Providers will be considered principal transactions. See "— *Buying and Selling Loans and Assets*." The Chief Legal Officer of the Sponsor will review principal transactions for compliance with applicable law. In addition, principal transactions will be approved by a majority of our trustees, including a majority of our independent trustees, or an Independent Compliance Reviewer.

#### Other Considerations

#### No Independent Advice
The terms of the agreements and arrangements under which the Company is established and will be operated have been or will be established by the Adviser and are not the result of arm's-length negotiations or representations of shareholders by separate counsel. Potential investors should therefore seek their own legal, tax and financial advice before making an investment in the Company.

#### Certain Business Relationships
Certain of our current trustees and officers are directors, officers or employees of the Sponsor.

#### Trustee Independence
Under our Declaration of Trust, a trustee is independent if he, she or it (i) is not an officer or employee of ours, any subsidiary of ours, or of the Sponsor or its affiliates, (ii) has no material relationship with us, as determined by our Board, and (iii) otherwise satisfies the director independence tests provided for in the NYSE Listing Manual Rule 303A.02, as may be amended from time to time. We expect a majority of our Board to continue to consist of independent trustees, except for a period of up to 60 days after the death, removal or resignation or other vacancy of an independent trustee pending the election of a successor independent trustee. For information relating to our independent trustees, see "*Item 5. Directors and Executive Officers — Trustees and Executive Officers — Trustees — Independent Trustees*."

#### Promoters and Certain Control Persons
The Adviser may be deemed a promoter of the Company. We have entered into the Management Agreement with the Adviser. The Adviser, for its service to us, will be entitled to receive the management fee and the performance fee in addition to the reimbursement of certain expenses. In addition, under the

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Management Agreement, we will indemnify and hold harmless the Adviser and its affiliates, including their respective officers, managers, directors, partners and employees, from all liability, claims, damages or losses arising in the performance of their duties under the Management Agreement, and related expenses, including reasonable attorneys' fees, to the extent such liability, claims, damages or losses and related expenses are not fully reimbursed by insurance, and to the fullest extent possible without such indemnification being inconsistent with the laws of the State of Maryland or our Declaration of Trust. See "*Item 1. Business — Management Agreement*."

#### Smaller Reporting Company
See "*Item 2. Financial Information*" and "*Item 4. Security Ownership of Certain Beneficial Owners and Management*" for information about our ownership.

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#### ITEM 8.

#### LEGAL PROCEEDINGS
Neither we nor the Adviser is currently subject to any material legal proceedings, nor, to our knowledge, are any material legal proceedings threatened against us or the Adviser. From time to time, we or the Adviser may be a party to certain legal and regulatory proceedings in the ordinary course of business.

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#### ITEM 9.

#### MARKET PRICE OF AND DIVIDENDS ON THE REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

#### Market Information
Our common shares will be offered and sold in transactions exempt from registration under Section 4(a)(2) of the Securities Act and Regulation D. See "*Item 10. Recent Sales of Unregistered Securities*" for more information. There is no public market for our common shares currently, nor can we give any assurance that one will develop.

Because our common shares are being acquired by investors in one or more transactions "not involving a public offering," they are "restricted securities" and may be required to be held indefinitely. Our common shares may not be sold or transferred (i) except as permitted under our Declaration of Trust and (ii) unless the common shares are registered under applicable securities laws or specifically exempted from registration. Accordingly, an investor must be willing to bear the economic risk of investment in our common shares unless and until we accept their repurchase or transfer request. No sale, transfer, assignment, pledge or other disposition, whether voluntary or involuntary, of the shares may be made except by registration of the transfer on our books. Each transferee will be required to be bound by these restrictions and the other restrictions imposed on the shares and to execute such other instruments or certifications as are reasonably required by us.

#### Holders
As of November 25, 2025, there was one holder of record of our common shares.

#### Net Asset Value Calculation and Valuation Guidelines
Our NAV per share for each class of shares will be calculated by our fund administrator. Following the aggregation of the NAVs of our investments, the addition of any other assets (such as cash on hand) and the deduction of any other liabilities (in each case, as calculated by the Adviser), our fund administrator incorporates any class-specific adjustments to NAV, including additional issuances and repurchases of shares and accruals of class-specific management fees, performance fees and Ongoing Servicing Fees or Distribution Fees, in all cases as described below.

#### General
As described in more detail below, the Adviser, on our behalf, calculates our NAV in order to determine the offering price of our common shares in our Private Offering and for purposes of determining the repurchase price used in the share repurchase plan. Our Board, including a majority of our independent trustees, intends to adopt valuation guidelines that contain a comprehensive set of methodologies to be used by the Adviser and our Independent Valuation Advisor in connection with estimating the values of our assets and liabilities for purposes of our NAV calculation. These guidelines are designed to seek to produce a fair and accurate estimate of the price that would be received for our investments in an arm's-length transaction between a willing buyer and a willing seller in possession of all material information about our investments. Periodically, our Board, including a majority of our independent trustees, will review the appropriateness of our valuation procedures. From time to time, our Board, including a majority of our independent trustees, may adopt changes to the valuation guidelines if it (i) determines that such changes are likely to result in a more accurate reflection of NAV or a more efficient or less costly procedure for the determination of NAV without having a material adverse effect on the accuracy of such determination or (ii) otherwise reasonably believes a change is appropriate for the determination of NAV.

The calculation of NAV is intended to be a calculation of the fair value of our assets less our outstanding liabilities as described below and will likely differ from the book value of equity reflected in our financial statements. To calculate NAV for the purpose of establishing a purchase and repurchase price for our common shares, we expect the Adviser will utilize a model that calculates the values of our assets and liabilities in accordance with our valuation guidelines. The Adviser, with the assistance of the Independent Valuation Advisor, will calculate the fair value of our investments based on factors it considers relevant, such as the Independent Valuation Advisor's valuations, data obtained from the Adviser's experience in the market, the

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most recent values provided by third-party independent appraisers, pricing services or brokers, where applicable, and input from real estate brokerage firms and/or real estate debt consulting professionals. The Adviser may retain additional third-parties to assist with our valuations of certain investments. Because these fair value calculations will involve significant professional judgment in the application of both observable and unobservable attributes, the calculated fair value of assets may differ from their actual realizable value or future fair value. While we believe these NAV calculation methodologies are consistent with standard industry practices, there is no rule or regulation that requires we calculate NAV in a certain way. As a result, other REITs may use different methodologies or assumptions to determine NAV. In addition, NAV is not a measure used under GAAP and the valuations of and certain adjustments made to our assets and liabilities used in the determination of NAV will differ from GAAP. Shareholders should not consider NAV to be equivalent to shareholders' equity or any other GAAP measure.

#### Valuation Responsibilities
The Adviser, including through its valuation committee for the valuation of our assets, will oversee the calculation of our NAV. As described in more detail below, on a monthly basis, the Adviser, through its valuation committee, will perform a valuation of our assets, generally with the assistance of the Independent Valuation Advisor. However, on at least a monthly basis, the Independent Valuation Advisor generally will value each of our loan and property assets (except in certain limited circumstances), and the Adviser will use these valuations for such assets in determining NAV. The Independent Valuation Advisor will also review and confirm the reasonableness of the Adviser's monthly valuations for assets not valued by the Independent Valuation Advisor that month. We will engage the fund administrator to utilize the Adviser's valuation of our assets for a particular month to calculate the monthly NAV per share for each class of shares. The Adviser will review the fund administrator's calculations. Our Board will periodically receive and review such information about the valuation of our assets and liabilities as it deems necessary to exercise its oversight responsibility.

#### Our Independent Valuation Advisor
We have engaged Phoenix Analytic Services, Inc., a third-party valuation firm, approved by our Board, including a majority of our independent trustees, to serve as our Independent Valuation Advisor. The compensation paid to the Independent Valuation Advisor will not be based on the estimated values of our assets and liabilities or any confirmation thereof.

The Adviser, with the approval of our Board, including a majority of our independent trustees, may engage additional independent valuation advisors in the future as our portfolio grows and diversifies. While the Independent Valuation Advisor will assist the Adviser in the preparation of valuations each month and generally value our loan and property investments on a monthly basis, it is not responsible for, and does not calculate, our NAV. The Adviser is ultimately responsible for the determination of NAV.

The approved Independent Valuation Advisor and any successor may be replaced at any time, in accordance with agreed-upon notice requirements, by a majority vote of our Board, including a majority of our independent trustees. We will promptly disclose any changes to the identity or material changes to the role of the Independent Valuation Advisor to shareholders. The Independent Valuation Advisor will discharge its responsibilities in accordance with our valuation guidelines.

We will pay fees to the Independent Valuation Advisor in accordance with the valuation services agreement. We also will agree to indemnify the Independent Valuation Advisor against certain liabilities arising out of the engagement. The compensation paid to the Independent Valuation Advisor will not be based on the estimated values of our assets and liabilities or any confirmation thereof.

The initial Independent Valuation Advisor and its affiliates have provided and are expected to continue to provide valuation advisory services to the Adviser and its affiliates and have received, and are expected to continue to receive, fees in connection with such services. The initial and successor Independent Valuation Advisor and its affiliates will or are expected from time to time perform other investment professional services for the Adviser and its affiliates, or in transactions related to collateral that is a component of the subjects of the valuations being performed for us, or otherwise, so long as such other services do not adversely affect the independence of the Independent Valuation Advisor as certified in the applicable valuation report.

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#### Valuation of Investments
Newly originated or acquired investments will initially be valued at cost when acquired, which is expected to represent fair value at that time. For each month-end after the initial close, the fair value of such investment will be determined as described below, subject to any variation pursuant to our valuation guidelines.

 *RTLs and Other Residential Mortgage Loans* 

The fair market value of our RTLs and other residential mortgage loan investments will be determined by the Adviser on a monthly basis, generally with the assistance of the Independent Valuation Advisor, provided that the Independent Valuation Advisor generally will value each such asset at least monthly. Valuations of RTLs and other residential mortgage loan investments reflect changes in interest rates, credit performance, prepayment speeds and anticipated liquidation timing and proceeds, among others. The fair values are generally determined by discounting expected future cash flows using inputs such as default rates, prepayment speeds and discount rates, and may include adjustments based on consensus pricing (broker quotes) received by the Adviser.

 *Valuation of Real Estate Owned Properties* 

In the event we pursue ownership interest in the underlying collateral on a defaulted loan, then the asset will become real estate owned ("**REO**") property. REO properties will initially be valued at fair value (generally prepared by an independent appraiser) less closing costs, at the time of acquisition. Thereafter, following the first quarter after foreclosure, as of the end of each month, the fair market value of REO property will be determined by the Adviser, generally with the assistance of the Independent Valuation Advisor, provided that the Independent Valuation Advisor generally will value each such asset at least monthly. The Independent Valuation Advisor will review and confirm the reasonableness of the Adviser's monthly valuations, except for REO properties valued by the Independent Valuation Advisor for that particular month. Property valuations are generally estimated using a broker's price opinion discounted based on the Adviser's experience with actual liquidation values. Additionally, the REO properties may be valued by an independent appraiser periodically, as determined by the Adviser.

 *Valuation of Other Real Estate-Related Assets* 

Our investments in real estate-related assets will focus on public and private real estate-related debt securities. In general, real estate-related assets are valued by the Adviser according to the procedures specified below upon acquisition or issuance and then monthly, generally with the assistance of the Independent Valuation Advisor. Interim valuations of real estate-related assets that are valued monthly may be performed if the Adviser believes the value of the applicable asset may have changed materially since the most recent valuation. In addition, our Board may retain additional independent valuation firms to assist with the valuation of real estate-related assets.

 *Publicly Traded Real Estate-Related Assets* 

Publicly traded real-estate related assets that are not restricted as to salability or transferability will generally be valued by the Adviser monthly, generally with the assistance of the Independent Valuation Advisor, on the basis of publicly available market quotations or at fair value determined in accordance with GAAP. Market quotations may be obtained from third-party pricing service providers or broker-dealers. When reliable market quotations are available from multiple sources, the Adviser will use commercially reasonable efforts to use two or more quotations. The Adviser determines one as being more representative of fair value and does not use an average of the quotes, because the Adviser believes using an actual quote more closely represents a transactable price for the security than an average level. The pricing service providers providing quotations use either the income approach or the market approach, or a combination of the two, in arriving at their estimated valuations. Valuation providers using the market approach generally look at prices and other relevant information generated by market transactions involving identical or comparable assets. Valuation providers using the income approach create pricing models that generally incorporate such assumptions as discount rates, expected prepayment rates, expected default rates and expected loss severities. In addition to obtaining multiple quotations, when available, and reviewing the

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valuation methodologies of its valuation providers, the Adviser creates its own internal pricing models for certain securities and uses the outputs of these models as part of its process of evaluating the fair value estimates it receives from its valuation providers and where market quotations are not readily available (or are otherwise not reliable for a particular investment). These models incorporate the same types of assumptions as the models used by the valuation providers, but the assumptions are developed independently and in good faith by the Adviser.

The Adviser may adjust the value of public debt and equity real estate-related assets and derivatives that are restricted as to salability or transferability for a liquidity discount. In determining the amount of such discount, consideration is given to the nature and length of such restriction and the relative volatility of the market price of the security.

 *Private Real Estate-Related Assets* 

Investments in privately placed debt instruments and securities of real estate-related operating businesses (other than joint ventures), such as real estate development or management companies, will initially be valued by the Adviser at the acquisition price and thereafter, following the first quarter after origination or acquisition, will be revalued monthly at fair value, generally with the assistance of the Independent Valuation Advisor. Each month, the Independent Valuation Advisor will review and confirm the reasonableness of those valuations, except for such investments valued by the Independent Valuation Advisor for that particular month. The fair value of real-estate related operating businesses is generally determined by using valuation methodologies such as discounted cash flow and market comparable analysis. The valuation analysis is supplemented with a qualitative assessment of the businesses' operating metrics and industry outlook. In evaluating the fair value of our interests in certain commingled investment vehicles, values periodically assigned to such interests by the respective obligors or broker-dealers may be relied upon.

 *Valuation of Derivative Instruments* 

In the ordinary course of business, we may hedge interest rate and foreign currency exposure with derivative financial instruments. We report our derivative assets and liabilities at fair value based on price quotes from at least one independent pricing service. The pricing service values bilateral interest rate swaps and interest rate caps under the income approach using valuation models. The significant inputs in these models are readily available in public markets or can be derived from observable market transactions for substantially the full terms of the contracts. The pricing service values currency forward contracts under the market approach through the use of quoted market prices available in an active market.

 *Valuation of Liquid Non-Real Estate-Related Assets* 

Liquid non-real estate-related assets include credit rated government debt securities, cash and cash equivalents. Liquid non-real estate-related assets will be valued monthly by the Adviser, generally with the assistance of the Independent Valuation Advisor, based on market quotations or at fair value determined in accordance with GAAP.

 *Valuation of Securitized Credit Assets* 

The fair value of any collateralized financing assets and securitized liabilities will generally be measured using the more observable of the fair value of the securitized assets and liabilities using the valuation guidelines discussed above.

 *Other Assets* 

Certain assets (such as short-term receivables) will be valued at cost for the purposes of determining our monthly NAV due to their short-term nature.

#### Liabilities
The fair market value of any of our future liabilities, including debt facilities, will be determined by the Adviser on a monthly basis, which will be used in calculating our NAV. New debt obligations will initially be

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valued at par, which is expected to represent fair value at that time. Each month thereafter, the Independent Valuation Advisor will review and confirm the reasonableness of the valuations of each liability that will be used in calculating NAV.

The fair value of any financing liabilities will generally be measured using our valuation guidelines discussed above.

Each report prepared by the Independent Valuation Advisor is addressed to us. The Independent Valuation Advisor's reports are not addressed to the public and may not be relied upon by any other person to establish value of the facilities that will be used in calculating NAV.

We have delegated to the Adviser the responsibility for monitoring significant events that may materially affect the values of our investments and liabilities for determining whether the existing valuations should be re-evaluated prior to the next scheduled monthly valuation in light of such significant events.

In addition to our debt obligations, we expect that our liabilities will include the fees payable to the Adviser, and the dealer manager, accounts payable, accrued operating expenses, and other liabilities. Liabilities related to Ongoing Servicing Fees or Distribution Fees will be allocable to classes of our common shares subject to such fees, and will only be included in the NAV calculation for such class. Liabilities related to the management fee and performance fee will be allocable to classes of our common shares subject to such fees, and will only be included in the NAV calculation for those classes.

For purposes of calculating our NAV, neither (i) organization and offering expenses paid by the Adviser through the earlier of (a) the date that our aggregate NAV is at least $200 million and (b) the first anniversary of the date on which we first calculate NAV, nor (ii) operating costs and expenses paid by the Adviser, incurred by us during the period through the Operating Expense Commencement Date, are recognized as expenses or as a component of equity and reflected in our NAV until we reimburse the Adviser, as applicable, for these costs.

#### NAV and NAV Per Share Calculation
Our NAV per share is calculated for each of our share classes by our fund administrator, HedgeServ Corporation. Our Board, including a majority of our independent trustees, may replace our fund administrator with another party, including the Adviser, if it is deemed appropriate to do so. The Adviser is responsible for reviewing and confirming our NAV per share, and overseeing the process around the calculation of our NAV per share, in each case, as calculated by our fund administrator.

Each class of our common shares will have an undivided interest in our assets and liabilities, other than class-specific Ongoing Servicing Fees or Distribution Fees, the management fee and the performance fee. In accordance with the valuation guidelines, and based on the NAV determined by the Adviser, our fund administrator will calculate our NAV per share for each class as of the last calendar day of each month. Because Ongoing Servicing Fees or Distribution Fees, the management fee and the performance fee allocable to a specific class of shares will only be included in the NAV calculation for that class, the NAV per share for our classes of shares may differ.

The monthly NAV for each class of shares will be based on the NAVs of our investments, the addition of any other assets (such as cash on hand), and the deduction of any other liabilities (including accrued performance fees and the deduction of any Ongoing Servicing Fees or Distribution Fees specifically applicable to such class of shares). At the end of each month, before taking into consideration repurchases or class-specific expense accruals for that month, any change in our aggregate NAV (whether an increase or decrease) is allocated among each class of shares based on each class's relative percentage of the previous aggregate NAV plus issuances of shares that were effective on the first calendar day of such month. The NAV calculation is available generally within 15 calendar days after the end of the applicable month. Changes in monthly NAV may include, without limitation, accruals of our net portfolio income, interest expense, the management fee, the performance fee, distributions, unrealized/realized gains and losses on assets, any applicable organization and offering expenses and any expense reimbursements. Changes in monthly NAV may also include material non-recurring events occurring during the month. On an ongoing basis, the Adviser will adjust the accruals to reflect actual operating results and the outstanding receivable, payable and other account balances resulting from the accumulation of monthly accruals for which financial information is available.

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The operating costs and expenses and organizational and offering expenses which are advanced by the Adviser to be reimbursed by us will not be included in such calculations until reimbursed to the Adviser.

The Adviser will advance all our organization and offering expenses through the earlier of (i) the date that our aggregate NAV is at least $200 million and (ii) the first anniversary of the date on which we first calculate NAV, and the Adviser has agreed to advance certain of our operating costs and expenses through the Operating Expense Commencement Date. We will reimburse the Adviser for all such advanced costs and expenses ratably over the 60 months following the end of such advancements. For purposes of calculating our NAV, the organization and offering expenses and operating costs and expenses advanced by the Adviser will not be deducted as an expense until reimbursed by us (however such expenses may be amortized in order to mitigate these effects). After the end of such advancements, we will reimburse the Adviser for any organization and offering expenses and operating costs and expenses that they incur on behalf of us as and when incurred.

Following the aggregation of the NAVs of our investments, the addition of any other assets (such as cash on hand) and the deduction of any other liabilities (in each case, as calculated by the Adviser), our fund administrator incorporates any class-specific adjustments to NAV, including additional issuances and repurchases of shares and accruals of class-specific management fees, performance fees and Ongoing Servicing Fees or Distribution Fees. The declaration of distributions will reduce the NAV for each class of our shares in an amount equal to the accrual of our liability to pay any such distribution to our shareholders of record of each class. NAV per share for each class of shares is calculated by dividing such class's NAV at the end of each month by the number of shares outstanding for that class at the end of such month.

#### Relationship between NAV and Our Transaction Price
Purchases and repurchases of our common shares are not made based on the current NAV per share of our common shares at the time of purchase or repurchase. Generally, our transaction price will equal our prior month's NAV. The transaction price will be the price at which we repurchase shares (subject to a potential Early Repurchase Deduction) and the price at which we offer shares (subject to any applicable upfront selling commissions / origination fees, upfront dealer manager fees or other similar placement fees). Although the transaction price will generally be based on our prior month's NAV per share, such prior month's NAV may be significantly different from the current NAV per share of the applicable class of shares of beneficial interest as of the date on which an investor's purchase or repurchase occurs. Given that we initially expect to invest primarily in RTLs, which have a shorter duration than certain other asset types, such differences in NAV could be more pronounced.

In addition, we may offer shares at a price that we believe reflects the NAV per share of such shares more appropriately than the prior month's NAV per share (including by updating a previously available offering price) or suspend our offering and/or our share repurchase plan in cases where we believe there has been a material change (positive or negative) to our NAV per share since the end of the prior month. In cases where our transaction price is not based on the prior month's NAV per share, the offering price and repurchase price will not equal our NAV per share as of any time. The Adviser may determine whether a material change has occurred to our NAV per share since the end of the prior month and whether to set a transaction price that differs from the previous month's NAV per share, and in such cases, has discretion over what such transaction price will be.

#### Limits on the Calculation of Our NAV Per Share
The overarching principle of our valuation guidelines is to seek to produce reasonable estimated values for each of our investments (and other assets and liabilities) or the price that would be received for that investment in orderly transactions between market participants. However, the majority of our assets are expected to consist of RTLs and other real estate loan investments, and, as with any valuation protocol and as described above, the valuation of our investments (and other assets and liabilities) is based on a number of judgments, assumptions and opinions about future events that may or may not prove to be correct. The use of different judgments, assumptions or opinions would likely result in a different estimate of the value of our investments (and other assets and liabilities). Any resulting potential disparity in our NAV per share may be in favor or to the detriment of existing shareholders whose shares are repurchased, existing shareholders

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or new purchasers of our shares, as the case may be, depending on the circumstances at the time (for cases in which our transaction price is based on NAV).

Additionally, while the methodologies contained in our valuation guidelines are designed to operate reliably within a wide variety of circumstances, it is possible that in certain unanticipated situations or after the occurrence of certain extraordinary events (such as a significant disruption in relevant markets, a terrorist attack or an act of nature), the ability to calculate NAV may be impaired or delayed, including, circumstances where there is a delay in accessing or receiving information from vendors or other reporting agents upon which we may rely in determining the monthly value of our NAV. In these circumstances, a more accurate valuation of the NAV could be obtained by using different assumptions or methodologies. Accordingly, in special situations when, in the Adviser's reasonable judgment, the administration of the valuation guidelines would result in a valuation that does not represent a fair and accurate estimate of the value of our investment, alternative methodologies may be applied, provided that the Adviser must notify our Board at the next scheduled board meeting of any alternative methodologies utilized and their impact on the overall valuation of our investments. Notwithstanding the foregoing, our Board may suspend our continuous Private Offering and distribution reinvestment plan or our share repurchase plan if it determines that the calculation of NAV is materially incorrect or unreliable or there is a condition that restricts the valuation of a material portion of our assets.

We include no discounts to our NAV for the illiquid nature of our shares, including the limitations on shareholders' ability to sell shares under our share repurchase plan and our ability to suspend our share repurchase plan at any time. Our NAV generally does not consider exit costs that would likely be incurred if our assets and liabilities were liquidated or sold. While we may use market pricing concepts to value individual components of NAV, NAV per share is not derived from the market pricing information of open-end real estate debt funds listed on stock exchanges.

Our NAV per share does not represent the amount of our assets less our liabilities in accordance with GAAP.

We do not represent, warrant or guarantee that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a shareholder would be able to realize the NAV per share for the class of shares a shareholder owns if the shareholder attempts to sell its shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a shareholder would ultimately realize distributions per share equal to the NAV per share for the class of shares it owns upon liquidation of our assets and settlement of our liabilities or a sale of us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our common shares would trade at their NAV per share on a national securities exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a third party would offer the NAV per share for each class of shares in an arm's-length transaction to purchase all or substantially all of our shares; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the NAV per share would equate to a market price of an open-ended real estate debt fund.

#### Distribution Policy
We intend to declare monthly distributions as authorized by our Board and intend to pay such distributions to shareholders of record on a monthly basis commencing with the first full month after our first closing of our Private Offering. U.S. federal income tax law generally requires that a REIT distribute annually at least 90% of its REIT taxable income, determined without regard to the deduction for dividends paid and excluding net capital gains, and that it pay tax at the regular corporate rate to the extent that it annually distributes less than 100% of its REIT taxable income. As a result, in order to satisfy the requirements for us to qualify and maintain our qualification as a REIT for U.S. federal income tax purposes and generally not be subject to U.S. federal income and excise tax, we generally intend to make regular monthly distributions of our REIT taxable income to holders of our common shares out of assets legally available therefor. However, any distributions we make are at the discretion of our Board, considering factors such as our earnings, cash flow, capital needs, general financial condition, maintenance of our REIT qualification, and any requirements of Maryland law. As a result, our distribution rates and payment frequency may vary from time to time. See "*Item 11. Description of Registrant's Securities to be Registered — Distribution Policy*."

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#### ITEM 10.

#### RECENT SALES OF UNREGISTERED SECURITIES
In the Initial Capitalization, we were capitalized on September 12, 2025 through Rithm Investor's purchase from us of an aggregate of 100 common shares for an aggregate purchase of price of $2,000 and at a price per share equal to $20.00. These shares were issued and sold in reliance upon the available exemptions from registration requirements of Section 4(a)(2) of the Securities Act.

We are engaging in a continuous, unlimited private placement offering of our common shares to "accredited investors" (as defined in Rule 501(a) promulgated pursuant to the Securities Act) made pursuant to exemptions provided by Section 4(a)(2) of the Securities Act and applicable state securities laws. As of the date of the Registration Statement, there have been no purchases under our continuous Private Offering and the Rithm Investor is our only shareholder.

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#### ITEM 11.

#### DESCRIPTION OF REGISTRANT'S SECURITIES TO BE REGISTERED

#### Description of Shares of Beneficial Interest
We are a statutory trust formed under the laws of the State of Maryland. The rights of our shareholders are governed by Maryland law as well as our Certificate of Trust, Declaration of Trust, bylaws and certain policies adopted by our Board. The following is a summary of the material provisions concerning our shares of beneficial interest and you should refer to the MSTA and our Certificate of Trust, Declaration of Trust, bylaws and certain policies adopted by our Board for a full description. The following summary is qualified in its entirety by the more detailed information contained in our Certificate of Trust, Declaration of Trust, bylaws and certain policies adopted by our Board from time to time. Our Certificate of Trust, Declaration of Trust and bylaws are filed as an exhibit to this Registration Statement.

Under our Declaration of Trust, we will have the authority to issue (i) an unlimited number of common shares, including (a) unlimited common shares classified as Class S shares, (b) unlimited common shares classified as Class T shares, (c) unlimited common shares classified as Class D shares, (d) unlimited common shares classified as Class I shares, (e) unlimited common shares classified as Class J shares, (f) unlimited common shares classified as Class J-2 shares and (g) unlimited common shares classified as Class E shares and (ii) an unlimited number of shares classified as preferred shares.

#### Common Shares
Subject to the restrictions on ownership and transfer of our shares of beneficial interest set forth in our Declaration of Trust and except as may otherwise be specified in our Declaration of Trust, the holders of common shares are entitled to one vote per share on all matters voted on by shareholders. Subject to any preferential rights of any outstanding class or series of shares of beneficial interest and to the provisions in our Declaration of Trust regarding the restrictions on ownership and transfer of our shares of beneficial interest, the holders of common shares are entitled to such distributions as may be authorized from time to time by our Board and declared by us out of legally available funds and, upon liquidation, are entitled to receive all assets available for distribution to our shareholders. Upon issuance for full payment in accordance with the terms of our Private Offering, all common shares issued in our Private Offering will be fully paid and non-assessable. Holders of common shares will not have preemptive rights, which means that investors will not have an automatic option to purchase any new common shares that we issue.

Our Declaration of Trust also contains a provision permitting our Board, without any action by our shareholders, to classify or reclassify unissued common shares from time to time into one or more classes or series by setting or changing the preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends and other distributions, qualifications and terms or conditions of redemption of any new class or series of shares of beneficial interest.

We will generally not issue certificates for our common shares. Common shares will be held in "uncertificated" form, which will eliminate the physical handling and safekeeping responsibilities inherent in owning transferable share certificates and eliminate the need to return a duly executed share certificate to effect a transfer. Computershare Trust Company, N.A. will act as our registrar and as the transfer agent for our shares.

 *Class S Shares* 

Although no upfront selling commissions / origination fees, upfront dealer manager fees or other similar placement fees will be charged by us with respect to the Class S shares, if subscribers purchase Class S shares through certain financial intermediaries, those financial intermediaries may directly charge subscribers transaction or other fees, including upfront placement fees or brokerage commissions, in such amount as they may determine; provided that the financial intermediaries limit such charges to 3.5% of the transaction price for each Class S share. If we engage a dealer manager in the future, such dealer manager may also charge upfront dealer manager fees equal to an amount to be determined when we engage such dealer manager; provided, however, that any fees resulting from any such engagement are generally not expected to exceed the maximum percentages for Class S shares as set forth herein.

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We reallow (pay) participating broker-dealers and/or a dealer manager, if any, Ongoing Servicing Fees or Distribution Fees with respect to our outstanding Class S shares equal to 0.85% per annum of the aggregate NAV of our outstanding Class S shares, including any Class S shares acquired pursuant to our distribution reinvestment plan. The Ongoing Servicing Fees or Distribution Fees are paid monthly in arrears. If we engage a dealer manager in the future, the dealer manager will reallow (pay) all or a portion of such Ongoing Servicing Fees or Distribution Fees to certain participating broker-dealers for ongoing services performed by such broker-dealers and may retain a portion of such fees up to an amount to be determined when we engage such dealer manager; provided, however, that any fees resulting from any such engagement are generally not expected to exceed the maximum percentages for Class S shares as set forth herein. To the extent a broker-dealer is not eligible to receive such fees for failure to provide such services, we or the dealer manager, if any and as applicable, will retain or refrain from reallowing (paying) the same. Alternatively, the applicable shares may be converted to Class I shares if we and the dealer manager, if any, determine that such shares should be so converted.

Class S shares will be available through brokerage and transaction-based accounts.

No upfront selling commissions / origination fees, upfront dealer manager fees or other similar placement fees is payable in respect of any Class S shares acquired pursuant to our distribution reinvestment plan, but such shares will be charged the Ongoing Servicing Fee or Distribution Fee payable with respect to all our outstanding Class S shares.

In certain arrangements made between us or the dealer manager, if any, and financial intermediaries, a holder's Class S shares may be eligible to be converted into an equivalent NAV amount of the corresponding class of Class I shares at the time in which their total transaction or other fees, including upfront placement fees or brokerage commissions and Ongoing Servicing Fees or Distribution Fees, hit any agreed-upon amount. We, at the request of the dealer manager, if any, or any financial intermediary, also has the right to approve at its discretion the ability for a holder of Class S shares to convert into an equivalent NAV amount of Class I shares under certain circumstances.

 *Class T shares* 

Although no upfront selling commissions / origination fees, upfront dealer manager fees or other similar placement fees will be charged by us with respect to Class T shares, if subscribers purchase Class T shares through certain financial intermediaries, those financial intermediaries may directly charge subscribers transaction or other fees, including upfront selling commissions / origination fees of up to 3.0%, and upfront dealer manager fees (if any) of up to 0.5%, of the transaction price of each Class T share sold in the primary offering; provided that the participating financial intermediaries and dealer manager (if any) limit such charges to an aggregate of up to 3.5% of the transaction price for each Class T share. If we engage a dealer manager in the future, such dealer manager may also charge upfront dealer manager fees equal to an amount to be determined when we engage such dealer manager; provided, however, that any fees resulting from any such engagement are generally not expected to exceed the maximum percentages for Class T shares as set forth herein.

We reallow (pay) participating broker-dealers and/or a dealer manager, if any, Ongoing Servicing Fees or Distribution Fees with respect to our outstanding Class T shares equal to 0.85% per annum of the aggregate NAV of our outstanding Class T shares, including any Class T shares acquired pursuant to our distribution reinvestment plan. The Ongoing Servicing Fees or Distribution Fees are paid monthly in arrears. If we engage a dealer manager in the future, the dealer manager will reallow (pay) all or a portion of such Ongoing Servicing Fees or Distribution Fees to certain participating broker-dealers for ongoing services performed by such broker-dealers and may retain a portion of such fees up to an amount to be determined when we engage such dealer manager; provided, however, that any fees resulting from any such engagement are generally not expected to exceed the maximum percentages for Class T shares as set forth herein. To the extent a broker-dealer is not eligible to receive such fees for failure to provide such services, we or the dealer manager, if any and as applicable, will retain or refrain from reallowing (paying) the same. Alternatively, the applicable shares may be converted to Class I shares if we and the dealer manager, if any, determine that such shares should be so converted.

Class T shares will be available through brokerage and transaction-based accounts.

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No upfront selling commissions / origination fees, upfront dealer manager fees or other similar placement fees is payable in respect of any Class T shares acquired pursuant to our distribution reinvestment plan, but such shares will be charged the Ongoing Servicing Fee or Distribution Fee payable with respect to all our outstanding Class T shares.

In certain arrangements made between us or the dealer manager, if any, and financial intermediaries, a holder's Class T shares may be eligible to be converted into an equivalent NAV amount of the corresponding class of Class I shares at the time in which their total transaction or other fees, including upfront placement fees or brokerage commissions and Ongoing Servicing Fees or Distribution Fees, hit any agreed-upon amount. We, at the request of the dealer manager, if any, or any financial intermediary, may approve at its discretion the ability for a holder of Class T shares to convert into an equivalent NAV amount of Class I shares under certain circumstances.

 *Class D shares* 

Although no upfront selling commissions / origination fees, upfront dealer manager fees or other similar placement fees will be charged by us with respect to Class D shares, if subscribers purchase Class D shares through certain financial intermediaries, those financial intermediaries may directly charge subscribers transaction or other fees, including upfront placement fees or brokerage commissions, in such amount as they may determine; provided that the financial intermediaries limit such charges to 1.50% of the net offering price for each Class D share. If we engage a dealer manager in the future, such dealer manager may also charge upfront dealer manager fees equal to an amount to be determined when we engage such dealer manager; provided, however, that any fees resulting from any such engagement are generally not expected to exceed the maximum percentages for Class D shares as set forth herein.

We reallow (pay) participating broker-dealers and/or a dealer manager, if any, Ongoing Servicing Fees or Distribution Fees with respect to our outstanding Class D shares equal to 0.25% per annum of the aggregate NAV of all our outstanding Class D shares, including any Class D shares acquired pursuant to our distribution reinvestment plan. The Ongoing Servicing Fees or Distribution Fees are paid monthly in arrears. If we engage a dealer manager in the future, the dealer manager will reallow (pay) all or a portion of the Ongoing Servicing Fees or Distribution Fees to certain participating broker-dealers for ongoing shareholder services performed by such broker-dealers and may retain a portion of such fees up to an amount to be determined when we engage such dealer manager; provided, however, that any fees resulting from any such engagement are generally not expected to exceed the maximum percentages for Class D shares as set forth herein. To the extent a broker-dealer is not eligible to receive such fees for failure to provide such services, we or the dealer manager, if any and as applicable, will retain or refrain from reallowing (paying) the same. Alternatively, the applicable shares may be converted to Class I shares if we and the dealer manager, if any, determine that such shares should be so converted.

Class D shares will generally be available for purchase in our Private Offering only (i) through fee-based programs, also known as wrap accounts, that provide access to Class D shares, (ii) through participating broker-dealers that have alternative fee arrangements with their clients to provide access to Class D shares, (iii) through transaction/brokerage platforms at participating broker-dealers, (iv) through certain registered investment advisers, (v) through bank trust departments or any other organization or person authorized to act in a fiduciary capacity for its clients or (vi) by other categories of investors that we name in an amendment or supplement to the private placement memorandum relating to our Private Offering.

No upfront selling commissions / origination fees, upfront dealer manager fees or other similar placement fees is payable in respect of any Class D shares acquired pursuant to our distribution reinvestment plan, but such shares will be charged the Ongoing Servicing Fee or Distribution Fee payable with respect to all our outstanding Class D shares.

In certain arrangements made between us or the dealer manager, if any, and financial intermediaries, a holder's Class D shares may be eligible to be converted into an equivalent NAV amount of the corresponding class of Class I shares at the time in which their total transaction or other fees, including upfront placement fees or brokerage commissions and Ongoing Servicing Fees or Distribution Fees, hit any agreed-upon amount. We, at the request of the dealer manager, if any, or any financial intermediary, may also approve at

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its discretion the ability for a holder of Class D shares to convert into an equivalent NAV amount of Class I shares under certain circumstances.

 *Class I shares* 

No upfront selling commissions / origination fees, upfront dealer manager fees or other similar placement fees or Ongoing Servicing Fees or Distribution Fees are paid for sales of any Class I shares.

Class I shares will generally be available for purchase in our Private Offering only (i) through fee-based programs, also known as wrap accounts, that provide access to Class I shares, (ii) by endowments, foundations, pension funds and other institutional investors, (iii) through participating broker-dealers that have alternative fee arrangements with their clients to provide access to Class I shares, (iv) through certain registered investment advisers, (v) by certain investors as determined by the Adviser and/or our dealer manager, if any, in their discretion and (vi) by other categories of investors that we name in an amendment or supplement to the private placement memorandum relating to our Private Offering. We may also offer Class I shares to certain feeder vehicles primarily created to hold our Class I shares, which in turn offer interests in themselves to investors. Such feeder vehicles may have additional costs and expenses, which would be disclosed in connection with the offering of their interests.

 *Class J Shares and Class J-2 Shares* 

Although no upfront selling commissions / origination fees, upfront dealer manager fees or other similar placement fees will be charged by us with respect to Class J shares and Class J-2 shares, if subscribers purchase Class J shares or Class J-2 shares through certain financial intermediaries, those financial intermediaries may directly charge subscribers transaction or other fees, including upfront selling commissions / origination fees of up to 2.0% of the transaction price of each Class J share or Class J-2 share sold in the primary offering.

We reallow (pay) participating broker-dealers and/or a dealer manager, if any, Ongoing Servicing Fees or Distribution Fees with respect to our outstanding Class J shares and Class J-2 shares equal to 0.625% per annum of the aggregate NAV of our outstanding Class J shares or Class J-2 shares, including any Class J shares or Class J-2 shares acquired pursuant to our distribution reinvestment plan; provided that the Ongoing Servicing Fees or Distribution Fees with respect to the Class J shares and Class J-2 shares will in no event exceed 50% of the aggregate of the management fee payable to the Adviser and Ongoing Servicing Fees or Distribution Fees, in each case, attributable to the Class J shares or Class J-2 shares per annum. The Ongoing Servicing Fees or Distribution Fees are paid monthly in arrears. Class J shares and Class J-2 shares may be converted to Class I shares if we determine that such shares should be so converted.

For the avoidance of doubt, the amount of the management fee paid by the Class J shares or Class J-2 shares to the Adviser for a given period will be reduced by the amount of any Distribution Fees with respect to such class for such period. Until we become a "publicly offered REIT" for U.S. federal income tax purposes and in order to meet the applicable REIT tax requirements, we intend to only issue Class J shares.

Class J shares and Class J-2 shares will generally be available for purchases in our Private Offering only through a financial intermediary.

No upfront selling commissions / origination fees, upfront dealer manager fees or other similar placement fees is payable in respect of any Class J shares or Class J-2 shares acquired pursuant to our distribution reinvestment plan, but such shares will be charged the Ongoing Servicing Fee or Distribution Fee payable with respect to all our outstanding Class J shares and Class J-2 shares.

In certain arrangements made between us and financial intermediaries, a holder's Class J shares or Class J-2 shares may be eligible to be converted into an equivalent NAV amount of Class I shares at the time in which their total transaction or other fees, including upfront placement fees or brokerage commissions and Ongoing Servicing Fees or Distribution Fees, hit any agreed-upon amount. We, at the request of any financial intermediary, may approve at its discretion the ability for a holder of Class J shares or Class J-2 shares to convert into an equivalent NAV amount of Class I shares under certain circumstances.

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 *Class E Shares* 

No upfront selling commissions / origination fees, upfront dealer manager fees or other similar placement fees or Ongoing Servicing Fees or Distribution Fees are paid for sales of any Class E shares. The Class E shares are being offered to the Sponsor and its affiliates (including their employees), will be issued in the Sponsor Investment and may be issued in connection with the management fee, performance fee, reimbursement of expenses or as compensation to the Adviser, certain Sponsor key personnel and/or independent trustees. Under our Declaration of Trust, if the employment or other service relationship of any employee, officer, manager, trustee, agent or director of the Sponsor or its affiliates terminates (except for senior members of management who have moved to emeritus status), our Board may decide to convert any Class E shares held by such person into a number of shares of another class of shares with an equivalent NAV as of the date of conversion of the Class E shares.

 *Other Terms of Common Shares* 

Each Class S share, Class T share, Class D share, Class J share, Class J-2 share or Class E share held in a shareholder's account will automatically and without any action on the part of the holder thereof convert into a number of Class I shares (including any fractional shares) with an equivalent NAV as such share on the earliest of (i) a listing of our common shares or (ii) our merger or consolidation with or into another entity or the sale or other disposition of all or substantially all of our assets (except for any such transaction taken in connection with an internal restructuring transaction (including our conversion into another type of legal entity) or a Conversion Event).

#### Preferred Shares
Our Declaration of Trust will authorize our Board to designate and issue one or more classes or series of preferred shares without shareholder approval, and to establish the preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends and other distributions, qualifications and terms or conditions of redemption of each class or series of preferred shares so issued. Because our Board has the power to establish the preferences and rights of each class or series of preferred shares, it may afford the holders of any class or series of preferred share preferences, powers and rights senior to the rights of holders of common shares.

If we ever create and issue preferred shares with a distribution preference over our common shares, payment of any distribution preferences of outstanding preferred shares would reduce the amount of funds available for the payment of distributions on our common shares. Further, holders of preferred shares are normally entitled to receive a liquidation preference in the event we liquidate, dissolve or wind up before any payment is made to our common shareholders, likely reducing or possibly eliminating the amount common shareholders would otherwise receive upon such an occurrence. In addition, under certain circumstances, the issuance of preferred shares may render more difficult or tend to discourage a merger, offer or proxy contest, the assumption of control by a holder of a large block of our securities, or the removal of incumbent management. Our Board has no present plans to issue any preferred shares, but may do so at any time in the future without shareholder approval.

#### Meetings and Special Voting Requirements
Under the MSTA and our Declaration of Trust, we are not required to, and do not anticipate, holding an annual meeting or any other regularly scheduled meeting of shareholders. Rather, we anticipate that meetings of shareholders will only be called as special meetings, if, as and when necessary. Special meetings of shareholders may be called only upon the request of our Board, a majority of our independent trustees or our chief executive officer, president or chair of our Board. Special meetings of shareholders may also be called by our secretary, upon the written request of shareholders entitled to cast at least a majority of the votes entitled to be cast on such matter at the meeting, only for the purpose of removing one or more trustees for "cause" (as defined in our Declaration of Trust) and filling any resulting vacancy, provided such request contains the information required in our bylaws and the shareholders comply with the procedures contained in our bylaws. In the event there are no trustees, any shareholder may call a special meeting for the purpose of electing trustees.

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The presence either in person or by proxy of shareholders entitled to cast at least one-third of all the votes entitled to be cast on such matter at the meeting on any matter will constitute a quorum (unless our Board, when setting a meeting, determines that a greater percentage (but not more than a majority of all the votes entitled to be cast at such meeting on any matter) shall constitute a quorum for such meeting). Generally, the affirmative vote of a majority of all votes cast is necessary to take shareholder action, except as described in the next paragraph.

Under our Declaration of Trust, shareholders generally are entitled to vote at a duly held meeting at which a quorum is present on (i) those amendments to our Declaration of Trust on which shareholders are entitled to vote as provided in our Declaration of Trust, (ii) a merger, consolidation, conversion or transfer or other disposition of all or substantially all of our assets on which shareholders are entitled to vote as provided in our Declaration of Trust (but excluding a Conversion Event, an internal restructuring transaction (including the conversion of us into another type of legal entity) or any transaction that could be taken by a Maryland corporation without approval of its shareholders pursuant to the Maryland General Corporation Law), (iii) removal of a trustee for "cause" and the election of a successor trustee to the extent provided in our Declaration of Trust, (iv) in the event that there are no trustees, the election of trustees and (v) such other matters that our Board determines to submit to our shareholders for approval or ratification. The affirmative vote of a plurality of the total votes cast in the election of a trustee is generally required to elect any trustee, and the affirmative vote of a majority of the votes cast at a meeting of shareholders duly called and at which a quorum is present is generally sufficient to approve any other matter that may properly come before the shareholders at such meeting. However, under our Declaration of Trust, amendments to our Declaration of Trust and mergers, consolidations, conversions, or transfers of all or substantially all of our assets, in each case to the extent shareholder approval is required, must be approved by shareholders entitled to cast a majority of all of the votes entitled to be cast on the matter. In addition, shareholders have the power, without the concurrence of the trustees, to remove a trustee from our Board for "cause," and then only by the affirmative vote of two-thirds of the votes entitled to be cast on such matter. "Cause" is defined in our Declaration of Trust as conviction of a felony or a final judgment of a court of competent jurisdiction holding that such trustee caused demonstrable, material harm to us through bad faith or active and deliberate dishonesty. Any election by our shareholders or our Board to replace a removed trustee must comply with the terms or our Declaration of Trust and bylaws providing for, as applicable, the Adviser's exclusive right to designate one or more trustees to serve on our Board, including without limitation as a successor trustee to a removed trustee, and the qualifications applicable to an independent trustee.

Under our Declaration of Trust, our Board may determine, in its sole discretion and without any action by our shareholders, that we will (i) conduct a public offering as a non-listed REIT subject to the Statement of Policy Regarding Real Estate Investment Trusts published by the North American Securities Administrators Association on May 7, 2007, as amended from time to time, or (ii) undertake a listing of any or all of our common shares on a national securities exchange registered with the SEC under the Exchange Act or any other internationally recognized securities exchange determined by our Board. In connection with such determination and the conduct of such public offering or listing, as applicable, our Board may cause us to (i) merge with or into or convert into another entity, (ii) consolidate with one or more entities into a new entity, (iii) transfer all or substantially all of our assets to another entity or (iv) amend our Declaration of Trust and our bylaws, in each case without any action or approval by our shareholders.

Shareholders are not entitled to exercise any appraisal rights or of the rights of an objecting shareholder unless our Board determines that such rights apply, with respect to all or any classes or series of shares of beneficial interests, to one or more transactions occurring after the date of the determination in connection with which shareholders would otherwise be entitled to exercise such rights.

Pursuant to our Declaration of Trust, shareholders may, during usual business hours, inspect and copy our Declaration of Trust and bylaws and all amendments thereto, minutes of the proceedings of the shareholders, the annual statement of our affairs and any voting trust agreements on file at our principal office, if, and only if, approved by our Board.

#### Restrictions on Ownership and Transfer
Our Declaration of Trust contains restrictions on the number and value of our shares that a person (including any entity or group) may own. Unless our Board otherwise determines that an exemption may be

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granted, commencing with the first date that we intend to qualify as a REIT, no person (including any entity or group) may own, directly or indirectly through application of constructive ownership rules, in excess of 9.8% in value or number of shares, whichever is more restrictive, of our outstanding common shares or 9.8% in value or number of shares, whichever is more restrictive, of our outstanding shares of all classes or series.

Subject to certain limitations, our Board, in its sole discretion, may exempt a person prospectively or retroactively from, or modify, these limits, subject to such terms, conditions, representations and undertakings by such person as required by our Declaration of Trust and as our Board may determine. Prior to the granting of any exemption or creating or increasing these limits as applicable to any person, our Board may require a ruling from the IRS, or an opinion of counsel, in either case in form and substance satisfactory to our Board in its sole discretion, as it may deem necessary or advisable in order to determine or ensure our qualification as a REIT. Notwithstanding the receipt of any ruling or opinion, our Board may impose such conditions or restrictions as it deems appropriate in connection with granting any such exemption or exception to these limits.

Our Declaration of Trust further provides that no person may beneficially or constructively own our shares that would result in our being "closely held" under Section 856(h) of the Code or otherwise cause us to fail to qualify as a REIT, and that no person may transfer our shares if the transfer would result in our shares being beneficially owned by fewer than 100 persons (determined under the principles of Section 856(a)(5) of the Code). Our Declaration of Trust provides that any person who acquires or attempts or intends to acquire beneficial ownership or constructive ownership of our shares that will or may violate any of these restrictions, or who is the intended transferee of our shares that are transferred to the trust, as described below, is required to give us immediate written notice of such event or, in the case of such a proposed or attempted transaction, give at least 15 days prior written notice, and provide us with such other information as we may request to determine the effect of the transfer on our status as a REIT. The above restrictions will not apply if our Board determines that it is no longer in our best interests to continue to qualify as a REIT or that compliance with such restrictions is no longer required for us to qualify as a REIT.

Our Declaration of Trust further provides that any attempted transfer of our shares which, if effective, would result in any person beneficially owning or constructively owning our shares in violation of the above limitations (except for a transfer which results in shares being beneficially owned by fewer than 100 persons, in which case such transfer will be null and void and of no force and effect and the intended transferee shall acquire no rights in such shares) will cause the number of shares that would cause the violation, rounded up to the nearest whole share, to be automatically transferred to a trust for the exclusive benefit of one or more charitable beneficiaries designated by us and that the proposed transferee will not acquire any rights in such shares. The automatic transfer will be deemed to be effective as of the close of business on the business day, as defined in our Declaration of Trust, prior to the date of the transfer. Our shares held in the trust will be issued and outstanding shares. The proposed transferee will not benefit economically from ownership of any shares held in the trust, will have no rights to dividends or other distributions and no rights to vote or other rights attributable to our shares held in the trust. The trustee of the trust will have all voting rights and rights to dividends or other distributions with respect to shares held in the trust. These rights will be exercised for the exclusive benefit of the charitable beneficiaries. Any dividend or other distribution paid prior to our discovery that shares have been transferred to the trust will be paid by the recipient to the trustee upon demand. Any dividend or other distribution authorized but unpaid will be paid when due to the trustee. Any dividend or other distribution paid to the trustee will be held in trust for the charitable beneficiaries. Subject to Maryland law, the trustee will have the authority to rescind as void any vote cast by the proposed transferee prior to our discovery that our shares have been transferred to the trust and to recast the vote in accordance with the desires of the trustee acting for the benefit of the charitable beneficiaries. However, if we have already taken irreversible corporate action, then the trustee will not have the authority to rescind and recast the vote.

Within 20 days of receiving notice from us that our shares have been transferred to the trust, the trustee will sell our shares to a person designated by the trustee, whose ownership of our shares will not violate the above ownership limitations. Upon the sale, the interest of the charitable beneficiaries in our shares sold will terminate and the trustee will distribute the net proceeds of the sale to the proposed transferee

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and to the charitable beneficiaries as follows. The proposed transferee will receive the lesser of (i) the price paid by the proposed transferee for our shares or, if the event causing our shares to be held in the trust did not involve a purchase of such shares at market price, as defined in our Declaration of Trust, the market price of our shares on the day of the event causing our shares to be held in the trust and (ii) the price per share received by the trustee (net of any commissions and other expenses) from the sale or other disposition of our shares. The trustee will reduce the amount payable to the proposed transferee by the amount of dividends and other distributions which have been paid to the proposed transferee and are owed by the proposed transferee to the trustee. Any net sales proceeds in excess of the amount payable per share to the proposed transferee and any other amounts received by the trustee will be paid immediately to the charitable beneficiaries. If, prior to our discovery that our shares have been transferred to the trust, our shares are sold by the proposed transferee, then our shares shall be deemed to have been sold on behalf of the trust and, to the extent that the proposed transferee received an amount for our shares that exceeds the amount such proposed transferee was entitled to receive, the excess shall be paid to the trustee upon demand.

In addition, our shares held in the trust will be deemed to have been offered for sale to us, or our designee, at a price per share equal to the lesser of (i) the price per share in the transaction that resulted in the transfer to the trust, or, if the event that resulted in the transfer to the trust did not involve a purchase of such shares at market price, the market price of our shares on the day of the event causing our shares to be held in the trust and (ii) the market price on the date we, or our designee, accept the offer. We will have the right to accept the offer until the trustee has sold our shares. Upon such a sale to us, the interest of the charitable beneficiaries in our shares sold will terminate and the trustee will distribute the net proceeds of the sale to the proposed transferee and any other amounts held by the trustee with respect to such shares to the charitable beneficiary. The trustee will reduce the amount payable to the proposed transferee by the amount of dividends and other distributions which have been paid to the proposed transferee and are owed by the proposed transferee to the trustee.

If the transfer to the trust as described above is not automatically effective for any reason to prevent violation of the above limitations or our failing to qualify as a REIT, then our Declaration of Trust provides that the transfer of the number of shares that would otherwise cause any person to violate the above limitations will be null and void and the intended transferee shall acquire no rights in such shares.

All certificates, if any, representing our shares issued in the future will bear a legend referring to the restrictions described above. Instead of a legend, the certificate, if any, may state that we will furnish a full statement about certain restrictions on ownership and transferability of our shares to a shareholder upon request and without charge.

Every owner of more than <sup>1</sup>∕2 of 1% (or such other percentage, between <sup>1</sup>∕2 of 1% and 5%, as provided in the U.S. Treasury regulations or as otherwise required by our Board) of our shares, within 30 days after the end of each taxable year, is required to give us written notice, stating his or her name and address, the number of shares of each class and series of our shares which he or she beneficially owns and a description of the manner in which our shares are held; provided, that an owner of record who holds our shares as nominee for an actual owner (who is required to include in his or her gross income the dividends or other distributions received on such shares) must give written notice to us stating the name and address of such actual owner and the number of shares of such actual owner with respect to which the owner of record is the nominee. Each such owner shall promptly provide us in writing such additional information as we may request to determine the effect, if any, of its beneficial ownership on our status as a REIT and to ensure compliance with the ownership limits.

Any subsequent transferee to whom a shareholder transfers shares must also comply with Rule 502(d) of Regulation D promulgated under the Securities Act.

These restrictions on ownership and transfer could delay, defer or prevent a transaction or a change in control that might involve a premium price for our shares or that our common shareholders otherwise believe to be in their best interests.

#### Distribution Policy
We intend to declare monthly distributions as authorized by our Board and intend to pay such distributions to shareholders of record on a monthly basis commencing with the first full month after our

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first closing. U.S. federal income tax law generally requires that a REIT distribute annually at least 90% of its REIT taxable income, determined without regard to the deduction for dividends paid and excluding net capital gains, and that it pay tax at the regular corporate rate to the extent that it annually distributes less than 100% of its REIT taxable income. As a result, in order to satisfy the requirements for us to qualify and maintain our qualification as a REIT for U.S. federal income tax purposes and generally not be subject to U.S. federal income and excise tax, we generally intend to make regular monthly distributions of our REIT taxable income to holders of our common shares out of assets legally available therefor. However, any distributions we make are at the discretion of our Board, considering factors such as our earnings, cash flow, capital needs, general financial condition, maintenance of our REIT qualification, and any requirements of Maryland law. As a result, our distribution rates and payment frequency may vary from time to time. Additionally, in order to satisfy the requirements for us to qualify and maintain our qualification as a REIT for U.S. federal income tax purposes and generally not be subject to U.S. federal income and excise tax, in addition to shares issued pursuant to the distribution reinvestment plan, we may make a taxable distribution of our shares to our shareholders as part of a distribution in which shareholders may elect to receive shares or (subject to a limit measured as a percentage of the total distribution) cash.

Distributions will generally be made on all classes of our common shares at the same time. The per share amount of distributions on each class of our common shares may differ because of adjustment for class-specific items such as Ongoing Servicing Fees or Distribution Fees and, if we become a "publicly offered REIT" for U.S. federal income tax purposes, management fees and performance fees. We expect to use the "record share" method of determining the per share amount of distributions on our common shares, although our Board may choose any other method. The "record share" method is one of several distribution calculation methods for multiple-class funds recommended, but not required, by the American Institute of Certified Public Accountants. Under this method, the amount to be distributed on our common shares will be increased by the sum of all class-specific Ongoing Servicing Fees or Distribution Fees, and as applicable, any class-specific management fees and performance fees, for such period. Such amount will be divided by the number of our common shares outstanding on the record date. Such per share amount will be reduced for each class of common shares by the per share amount of any class-specific Ongoing Servicing Fees or Distribution Fees, and as applicable, any class-specific management fees and performance fees allocable to such class, if applicable.

Distributions are authorized at the discretion of our Board, in accordance with our earnings, cash flows and general financial condition. Our Board's discretion is directed, in substantial part, by its obligation to cause us to comply with REIT requirements (unless our Board determines that it is no longer in our best interests to continue to qualify as a REIT). Because we may receive income from interest and other sources at various times during our fiscal year and due to differences between the actual receipt of cash and the inclusion of items in income by us for U.S. federal income tax purposes, distributions may not reflect our income earned in that particular distribution period but may be made in anticipation of cash flows which we expect to receive during a later month and may be made in advance of actual receipt of funds in an attempt to make distributions relatively uniform or may be based on inclusion of items in income by us for U.S. federal income tax purposes which may deviate from actual receipt of cash. In such circumstances, in order for us to distribute to our shareholders each year at least 90% of our REIT taxable income, determined without regard to the deduction for dividends paid and excluding net capital gains, to qualify as a REIT and to avoid U.S. federal corporate income tax and the 4% excise tax in that year, we may be required to: (i) sell assets in adverse market conditions, (ii) borrow on unfavorable terms, (iii) distribute amounts that would otherwise be invested in target assets consistent with our strategy, capital expenditures or repayment of debt or (iv) make a taxable distribution of our common shares to our common shareholders as part of a distribution in which shareholders may elect to receive shares or (subject to a limit measured as a percentage of the total distribution) cash. We have not established any limit on the amount of proceeds from our Private Offering that may be used to fund distributions other than those limits imposed by our organizational documents and Maryland law. See "*Item 1. Business — Certain U.S. Federal Income Tax Considerations*" section of this Registration Statement for information concerning the U.S. federal income tax consequences of distributions paid by us.

Our Board may delegate to the Adviser or a committee of trustees the power to fix the amount and other terms of a distribution.

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#### Distribution Reinvestment Plan
 *We have adopted a distribution reinvestment plan whereby shareholders will have their cash distributions automatically reinvested in additional common shares unless they elect to receive their distributions in cash. Any cash distributions attributable to the class or classes of shares owned by participants in the distribution reinvestment plan will be immediately reinvested in our shares on behalf of the participants on the business day such distribution would have been paid to such shareholder. See "Item 1. Business — Certain U.S. Federal Income Tax Considerations — Taxation of Shareholders — Taxation of Taxable U.S. Shareholders — Distributions under Distribution Reinvestment Plan and other Distributions of our Common Shares" and "Item 1. Business — Certain U.S. Federal Income Tax Considerations — Taxation of Shareholders — Taxation of Non-U.S. Shareholders — Distributions under Distribution Reinvestment Plan and other Distributions of our Common Shares" for more information regarding the reinvestment of distributions a shareholder may receive from us.* 

The purchase price for shares purchased under our distribution reinvestment plan will be equal to the transaction price for such shares at the time the distribution is payable. Shareholders will not pay any applicable upfront selling commissions / origination fees, upfront dealer manager fees or other similar placement fees when purchasing shares under our distribution reinvestment plan. The Ongoing Servicing Fees or Distribution Fees with respect to our Class S shares, Class T shares, Class D shares, Class J shares and Class J-2 shares are calculated based on our NAV for those shares and may reduce the NAV or, alternatively, the distributions payable with respect to shares of such class, including shares issued in respect of distributions on such shares under the distribution reinvestment plan. In addition, any class specific management fees or performance fees may also reduce the NAV, or alternatively, the distributions payable with respect to shares of a class, including shares issued in respect of distributions on such shares under the distribution reinvestment plan. Shares acquired under the distribution reinvestment plan will entitle the participant to the same rights and be treated in the same manner as shares of that class purchased in our Private Offering.

Our Board, in its sole discretion, may elect to designate certain distributions as ineligible for reinvestment through our distribution reinvestment plan, without notice to participants, without suspending our distribution reinvestment plan and without affecting the future operation of our distribution reinvestment plan with respect to participants. If a distribution is designated as ineligible for reinvestment through our distribution reinvestment plan, the participant will receive such distribution in cash.

We reserve the right to amend any aspect of our distribution reinvestment plan without the consent of our shareholders; provided that notice of any material amendment is sent to participants at least ten business days prior to the effective date of that amendment. Unless our Board determines otherwise, after two years from the date of purchase of the first Class J shares, holders of Class J shares will not participate in our distribution reinvestment plan and will receive their distributions in cash. In addition, we may suspend or terminate the distribution reinvestment plan for any reason at any time upon ten business days' prior written notice to participants. A shareholder's participation in the plan will be terminated to the extent that a reinvestment of such shareholder's distributions in our shares would cause the percentage ownership or other limitations contained in our Declaration of Trust to be violated. Participants may terminate their participation in the distribution reinvestment plan with ten business days' prior written notice to us.

#### Account Statements
We will provide on a quarterly basis to each participant in the distribution reinvestment plan a statement of account describing, as to such participant, (i) the distributions reinvested during the quarter, (ii) the number of shares purchased during the quarter, (iii) the per share purchase price for such shares and (iv) the total number of shares purchased on behalf of the participant under the plan. On an annual basis, tax information with respect to income earned on shares under the plan for the calendar year will be provided to each applicable participant.

#### Share Repurchase Plan

#### General
While an investor should view its investment as long-term with limited liquidity, we have adopted a share repurchase plan, whereby on a monthly basis, shareholders may request that we repurchase all or any

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portion of their shares. We expect to begin the share repurchase plan in the first month of the first full calendar quarter after our first closing. Due to the illiquid nature of investments in our target assets, we may not have sufficient liquid resources to fund repurchase requests. In addition, we have established limitations on the amount of funds we may use for repurchases during any month. See "— *Repurchase Limitations*" below.

Investors may request that we repurchase our common shares through its investment professional or directly with our transfer agent. The procedures relating to the repurchase of our common shares are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Certain financial intermediaries require that their clients process repurchases through their financial intermediary, which may impact the time necessary to process such repurchase request, impose more restrictive deadlines than described under our share repurchase plan, impact the timing of a shareholder receiving repurchase proceeds and require different paperwork or process than described in our share repurchase plan. A shareholder should contact its financial intermediary first if it wants to request the repurchase of its shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Under our share repurchase plan, to the extent we choose to repurchase shares in any particular month we will only repurchase shares as of the opening of the applicable Repurchase Date, and an investor will not receive any distributions for such shares for the month in which its shares are repurchased. For an investor to have its shares repurchased, the investor's repurchase request and required documentation must be received in good order by 4:00 p.m. (Eastern time) on the second to last business day of the applicable month. Settlements of share repurchases will be made within three business days of the Repurchase Date using the NAV per share of the applicable class as of the last calendar day of the prior month. Repurchase requests received and processed by our transfer agent will be effected at a repurchase price equal to the transaction price on the applicable Repurchase Date (which will generally be equal to our prior month's NAV per share of the applicable class), subject to any Early Repurchase Deduction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • A shareholder may withdraw his or her repurchase request by completing a repurchase withdrawal form and sending the form by mail to the transfer agent, directly or through the shareholder's financial intermediary, or through the transfer agent's online portal (when implemented). Repurchase requests must be canceled before 4:00 p.m. (Eastern time) on the second to last business day of the applicable month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • If a repurchase request is received after 4:00 p.m. (Eastern time) on the second to last business day of the applicable month, the repurchase request will be executed, if at all, on the next month's Repurchase Date at the transaction price applicable to that month (subject to any Early Repurchase Deduction), unless such request is withdrawn prior to the repurchase. Repurchase requests received and processed by our transfer agent on a business day, but after the close of business on that day or on a day that is not a business day, will be deemed received on the next business day. All questions as to the form and validity (including time of receipt) of repurchase requests and notices of withdrawal will be determined by us, in our sole discretion, and such determination shall be final and binding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Repurchase requests may be made by mail or by contacting the shareholder's financial intermediary, both subject to certain conditions described in this Registration Statement. If making a repurchase request by contacting the shareholder's financial intermediary, the shareholder's financial intermediary may require it to provide certain documentation or information. If making a repurchase request by mail to the transfer agent, a shareholder must complete and sign a repurchase authorization form, which can be found in our share repurchase plan. Written requests should be sent to the transfer agent at the following address:

Rithm Perpetual Life Residential Trust

c/o Computershare, as Processing Agent

150 Royall Street, Suite V

Canton, MA 02021

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Overnight Address:

Rithm Perpetual Life Residential Trust

c/o Computershare, as Processing Agent

150 Royall Street, Suite V

Canton, MA 02021

Corporate investors and other non-individual entities must have an appropriate certification on file authorizing repurchases. A signature guarantee may be required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • For processed repurchases, repurchase proceeds are to be paid either via check or wire, based upon the instruction indicated at the time of the repurchase request. To the extent a shareholder requests payment via wire, the shareholder will provide the transfer agent with the appropriate wire instructions for the specific repurchase.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • A medallion signature guarantee will be required in certain circumstances. The medallion signature process protects shareholders by verifying the authenticity of a signature and limiting unauthorized fraudulent transactions. A medallion signature guarantee may be obtained from a domestic bank or trust company, broker-dealer, clearing agency, savings association or other financial institution which participates in a medallion program recognized by the Securities Transfer Association. The three recognized medallion programs are the Securities Transfer Agents Medallion Program, the Stock Exchanges Medallion Program and the New York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees from financial institutions that are not participating in any of these medallion programs will not be accepted. A notary public cannot provide signature guarantees. We reserve the right to amend, waive or discontinue this policy at any time and establish other criteria for verifying the authenticity of any repurchase or transaction request. We may require a medallion signature guarantee if, among other reasons: (i) the amount of the repurchase request is over $500,000; or (ii) our transfer agent cannot confirm the shareholder's identity or suspects fraudulent activity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • If a shareholder has made multiple purchases of our common shares, any repurchase request will be processed on a first in/first out basis unless otherwise requested in the repurchase request.

#### Minimum Account Repurchases
In the event that any shareholder fails to maintain the minimum balance of $500 of our common shares, we may repurchase all of our common shares held by that shareholder at the repurchase price in effect on the date we determine that the shareholder has failed to meet the minimum balance, less any Early Repurchase Deduction.

Minimum account repurchases will apply even in the event that the failure to meet the minimum balance is caused solely by a decline in our NAV. Minimum account repurchases are subject to the Early Repurchase Deduction.

#### Sources of Funds for Repurchases
Unless our Board determines otherwise, we may fund repurchases pursuant to our share repurchase plan from sources other than cash flow from operations, including, without limitation, borrowings, offering proceeds (including from sales of our common shares), the sale of our assets, and repayments of our real estate debt investments, and we have no limits on the amounts we may fund from such sources.

In an effort to have adequate cash available to support our share repurchase plan and to fund investments, we may reserve borrowing capacity under a line of credit. We could then elect to borrow against this line of credit in part to repurchase shares presented for repurchase during periods when we do not have sufficient proceeds from operating cash flows or the sale of shares in this continuous offering to fund all repurchase requests.

#### Repurchase Limitations
We may repurchase fewer common shares than have been requested in any particular month to be repurchased under our share repurchase plan, or none at all, in our discretion at any time. In addition, the

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aggregate NAV of total repurchases of our common shares is limited to no more than 2% of our aggregate NAV per month (measured using the aggregate NAV as of the end of the immediately preceding month) and no more than 5% of our aggregate NAV per calendar quarter (measured using the aggregate NAV as of the end of the previous calendar quarter). Shares purchased by the Adviser or its affiliates or issued to such parties in lieu of cash in respect of our management fee, our performance fee or as other compensation or as reimbursements of expenses or to the Sponsor for any future commitments to us are not subject to these repurchase limitations.

Subject to our right to decline any repurchase request by a shareholder, in the event that we determine to repurchase some but not all of our shares submitted for repurchase during any month, shares repurchased at the end of the month will be repurchased on a pro rata basis after we have repurchased all common shares for which repurchase has been requested due to death or disability and other limited exceptions. All unsatisfied repurchase requests must be resubmitted after the start of the next month or upon the recommencement of the share repurchase plan, as applicable.

In the unlikely case that the repurchase price for the applicable month is not made available by the tenth business day prior to the last business day of such month (or is changed after such date), then no repurchase requests will be accepted for such month and shareholders who wish to have their shares repurchased the following month must resubmit their repurchase requests.

Should repurchase requests, in our judgment, place an undue burden on our liquidity, adversely affect our operations or risk having an adverse impact on us as a whole, or should we otherwise determine that investing our liquid assets in investments rather than repurchasing our shares is in our best interests as a whole, then we may choose to repurchase fewer shares in than have been requested to be repurchased, or none at all. Further, our Board may make exceptions to, modify or suspend our share repurchase plan if it deems in its reasonable judgment such action to be in our best interest (including to make exceptions to the repurchase limitations or Early Repurchase Deduction, or repurchase fewer shares than such repurchase limitations). Material modifications to the share repurchase plan, including any amendment to the 2% monthly or 5% quarterly limitations on repurchases, and to suspensions of the share repurchase plan will be promptly disclosed to shareholders' investment professionals. In addition, we may determine to suspend the share repurchase plan due to regulatory changes, changes in law, if prudent to retain our status as a REIT, or if we become aware of undisclosed material information that we believe should be publicly disclosed before shares are repurchased. Once the share repurchase plan is suspended, our share repurchase plan requires that we consider the recommencement of the plan at least quarterly. Continued suspension of our share repurchase plan would only be permitted under the plan if our Board determines that the continued suspension of the share repurchase plan is in our best interest. Our Board must affirmatively authorize the recommencement of the plan before shareholder requests will be considered again. Our Board cannot terminate our share repurchase plan absent a liquidity event which results in our shareholders receiving cash or securities listed on a national securities exchange or where otherwise required by law.

During any period in which we believe that we are not a "publicly offered REIT" for U.S. federal income tax purposes, we may decline any repurchase request by a shareholder if we believe the repurchase (i) would not qualify for sale or exchange treatment under Section 302(b) of the Code or (ii) would otherwise negatively affect any other shareholder or negatively affect our status as a REIT. Our shareholders must agree to provide us with any information reasonably requested to enable us to determine whether a repurchase requested by such shareholder would qualify for sale or exchange treatment under Section 302(b) of the Code or would otherwise negatively affect any other shareholder or negatively affect our status as REIT.

Common shares held by the Adviser or its affiliates purchased from us or acquired as payment of the Adviser's management fee or performance fee or as reimbursements of expenses will not be subject to our share repurchase plan, including the repurchase limits and any Early Repurchase Deduction, and will not be subject to the calculation of NAV for purposes of our share repurchase plan's monthly or quarterly limits. Shareholders who are exchanging a class of our common shares for an equivalent aggregate NAV of another class of our common shares will not be subject to, and such exchange will not be treated as repurchases for the calculation of, the 2% monthly or 5% quarterly limitations on repurchases and will not be subject to the Early Repurchase Deduction.

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#### Early Repurchase Deduction
Certain investors may agree not to request we repurchase the shares they purchase until a certain date, but such investors will be able to transfer the shares to other third parties including other investors prior to such date, provided that such transfer complies with restrictions in our Declaration of Trust and limitations imposed under the U.S. securities laws. The repurchase price for repurchases will generally be based on the NAV per share of the applicable class as of the last calendar day of the prior month, except that shares tendered for repurchase within the first 12 months of issuance will be repurchased at the Early Repurchase Deduction. Any holding period is measured as of the closing date immediately preceding the prospective Repurchase Date. This Early Repurchase Deduction will also generally apply to minimum account repurchases. The Early Repurchase Deduction will not apply to common shares acquired through our distribution reinvestment plan.

The Early Repurchase Deduction will inure indirectly to the benefit of our remaining shareholders and is intended to offset the trading costs, market impact and other costs associated with short-term trading in our common shares. Subject to our ability to meet the REIT tax requirements, we may, from time to time, waive the Early Repurchase Deduction in the following circumstances (subject to the conditions described below):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • repurchases resulting from death or qualifying disability; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • in the event that a shareholder's shares are repurchased because the shareholder has failed to maintain the $500 minimum account balance.

As set forth above, subject to our ability to meet the applicable REIT tax requirements, we may waive the Early Repurchase Deduction in respect of repurchase of shares resulting from the death or qualifying disability (as such term is defined in Section 72(m)(7) of the Code) of a shareholder who is a natural person, including shares held by such shareholder through a trust or an IRA or other retirement or profit-sharing plan, after (i) in the case of death, receiving written notice from the estate of the shareholder, the recipient of our shares through bequest or inheritance, or, in the case of a trust, the trustee of such trust, who shall have the sole ability to request repurchase on behalf of the trust or (ii) in the case of qualified disability, receiving written notice from such shareholder along with a physician's certification of disability as defined in Section 72(m)(7) of the Code; provided that the condition causing the qualifying disability was not pre-existing on the date that the shareholder became a shareholder. We must receive the written repurchase request within 12 months after the death of the shareholder or the initial determination of the shareholder's disability in order for the requesting party to rely on any of the special treatment described above that may be afforded in the event of the death or disability of a shareholder. In the case of death, such a written request must be accompanied by a certified copy of the official death certificate of the shareholder. If spouses are joint registered holders of shares, the request to have our shares repurchased may be made if either of the registered holders dies or acquires a qualified disability. If the shareholder is not a natural person, such as certain trusts or a partnership, corporation or other similar entity, the right to waiver of the Early Repurchase Deduction upon death or disability does not apply.

In addition, we may also offer Class I shares to certain feeder vehicles primarily created to hold our Class I shares, which in turn offer interests in themselves to investors. For such feeder vehicles and similar arrangements in certain markets, subject to our ability to meet the applicable REIT tax requirements, we may agree not to apply the Early Repurchase Deduction to the feeder vehicles or underlying investors, often because of administrative or systems limitations. Further, subject to our ability to meet the applicable REIT tax requirements, we will not apply the Early Repurchase Deduction on repurchases of our common shares submitted by discretionary model portfolio programs (and similar arrangements) as approved by us.

#### Items of Note
When an investor makes a request to have shares repurchased, the investor should note the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • if an investor is requesting that some but not all of its shares be repurchased, the investor should keep its balance above $500 to avoid minimum account repurchase, if applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • an investor will not receive interest on amounts represented by uncashed repurchase checks;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • under applicable anti-money laundering regulations and other federal regulations, repurchase requests may be suspended, restricted or canceled and the proceeds may be withheld; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • all common shares requested to be repurchased must be beneficially owned by the shareholder of record making the request or his or her estate, heir or beneficiary, or the party requesting the repurchase must be authorized to do so by the shareholder of record of our shares or his or her estate, heir or beneficiary, and such common shares must be fully transferable and not subject to any liens or encumbrances. In certain cases, we may ask the requesting party to provide evidence satisfactory to us that our shares requested for repurchase are not subject to any liens or encumbrances. If we determine that a lien exists against our shares, we will not be obligated to repurchase any shares subject to the lien.

IRS regulations require us to determine and disclose on Form 1099-B the adjusted cost basis for our shares sold or repurchased. We may utilize, in our discretion, the first-in-first-out method for determining the adjusted cost basis.

#### Frequent Trading and Other Policies
We may reject for any reason, or cancel as permitted or required by law, any purchase or repurchase orders for our common shares. For example, we may reject any purchase orders from market timers or investors that, in our opinion, may be disruptive to our operations. Frequent purchases, repurchases and sales of our shares can harm shareholders in. various ways, including reducing the returns to long-term shareholders by increasing our costs, disrupting portfolio management strategies and diluting the value of our shares of long-term shareholders.

In general, shareholders may request that we repurchase their shares once every 30 days. However, we prohibit frequent trading. We define frequent trading as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • any shareholder who requests that we repurchase common shares within 30 calendar days of the purchase of such common shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • transactions deemed harmful or excessive by us (including, but not limited to, patterns of purchases and repurchases), in our sole discretion; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • transactions initiated by investment professionals, among multiple shareholder accounts, that in the aggregate are deemed harmful or excessive.

The following are excluded when determining whether transactions are excessive:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • purchases and requests for repurchase of our shares in the amount of $2,500 or less;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • purchases or repurchases initiated by us; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • transactions subject to the trading policy of an intermediary that we deem materially similar to our policy.

At our discretion, upon the first violation of the policy in a calendar year, purchase and repurchase privileges may be suspended for 90 days. Upon a second violation in a calendar year, purchase and repurchase privileges may be suspended for 180 days. On the next business day following the end of the 90 or 180-day suspension, any transaction restrictions placed on a shareholder may be removed.

#### Tax Withholding
If any amount is required to be deducted or withheld from any payment to any shareholder pursuant to our share repurchase plan, as we determine, such amount shall reduce the amount otherwise distributable to such shareholder. The amount of any such withholding tax imposed with respect to any shareholder will be treated as distributed to such shareholder for all purposes of our share repurchase plan.

#### Mail and Telephone Instructions
We and our transfer agent will not be responsible for the authenticity of mail or phone instructions or losses, if any, resulting from unauthorized shareholder transactions if they reasonably believe that such

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instructions were genuine. Our transfer agent has established reasonable procedures to confirm that instructions are genuine including requiring the shareholder to provide certain specific identifying information on file and sending written confirmation to shareholders of record. Shareholders, or their designated custodian or fiduciary, should carefully review such correspondence to ensure that the instructions were properly acted upon. If any discrepancies are noted, the shareholder, or its agent, should contact his, her or its investment professional as well as our transfer agent in a timely manner, but in no event more than 60 days from receipt of such correspondence. Failure to notify such entities in a timely manner will relieve us, our transfer agent and the investment professional of any liability with respect to the discrepancy.

#### Certain Provisions of Maryland Law and Our Declaration of Trust and Bylaws
The following description of the terms of certain provisions of Maryland law and our Declaration of Trust and bylaws is only a summary. For a complete description, we refer you to the MSTA, our Declaration of Trust and our bylaws, each of which has been filed as an exhibit to this Registration Statement.

#### Number of Trustees; Vacancies on Our Board; Removal of Trustees

Any vacancy on our Board (other than vacancies resulting from shareholder removal of a trustee for "cause") may be filled only by a vote of a majority of the remaining trustees, even if the remaining trustees do not constitute a quorum (subject to the Adviser's right to designate Adviser Designees for election to our Board, as further set forth in our Declaration of Trust). Any trustee elected to fill a vacancy will serve until his, her or its resignation, removal, death, dissolution, termination of legal existence, adjudication of legal incompetence or the election and qualification of his, her or its successor. Vacancies resulting from shareholder removal of a trustee for "cause" may be filled only by the shareholders. However, if the trustee so removed had been designated to serve on our Board by the Adviser, then the Adviser shall have the exclusive right to designate the successor trustee for election to our Board to replace the removed trustee. Any election by our shareholders or our Board to replace a removed trustee must comply with the terms or our Declaration of Trust and bylaws providing for, as applicable, the Adviser's exclusive right to designate one or more trustees to serve on our Board, including without limitation as a successor trustee to a removed trustee, and the qualifications applicable to an independent trustee.

Any trustee may resign at any time. A trustee judged incompetent or for whom a guardian or conservator has been appointed shall be deemed to have resigned as of the date of such adjudication or appointment. In addition, a trustee may be removed only for "cause" (i) by our shareholders upon the affirmative vote of shareholders entitled to cast at least two-thirds of the votes entitled to be cast on such matter or (ii) by written instrument, signed by a majority of the trustees, specifying the date when such removal shall become effective. "**Cause**" is defined in our Declaration of Trust as conviction of a felony or a final judgment of a court of competent jurisdiction holding that such trustee caused demonstrable, material harm to us through bad faith or active and deliberate dishonesty.

#### Advance Notice of Trustee Nominations and Other Proposals
We are not required to hold an annual meeting of shareholders. With respect to special meetings of shareholders, only the business specified in our notice of the meeting may be brought before the meeting. Nominations of individuals for election to our Board at a special meeting may be made only (i) by or at the direction of our Board, (ii) by a shareholder that has requested that a special meeting be called for the purpose of removing one or more trustees for "cause" (as defined in our Declaration of Trust) and filling

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any resulting vacancy on our Board in compliance with our bylaws or (iii) provided that the special meeting has been called for the purpose of electing trustees, by any shareholder who is a shareholder of record at the record date set by our Board for the purpose of determining shareholders entitled to vote at the special meeting, at the time of giving the advance notice required by the bylaws and at the time of the special meeting (and any postponement or adjournment thereof), who is entitled to vote at the meeting in the election of each individual nominated and who has complied with the advance notice procedures of the bylaws.

#### Corporate Opportunities Waiver
Our Declaration of Trust provides that, to the maximum extent permitted from time to time by Maryland law, (i) none of our trustees and officers who is also an officer, employee or agent of the Sponsor or any of its affiliates is required to present, communicate or offer any business opportunity to us or any of our subsidiaries and (ii) any such person, on his or her own behalf or on behalf of the Sponsor or any of its affiliates, shall have the right to hold and exploit any business opportunities or to direct, recommend, offer, sell, assign or otherwise transfer such business opportunity to any person or entity other than us and our subsidiaries. In addition, our Declaration of Trust provides that we renounce, on our behalf and on behalf of our subsidiaries, our interest or expectancy in, or in being offered an opportunity to participate in, any such business opportunity to the maximum extent permitted from time to time by Maryland law.

#### Exclusive Forum

#### Amendment to Our Declaration of Trust and Bylaws
Except as provided by our Declaration of Trust or the terms of any classes or series of shares and as provided below, our Declaration of Trust may be amended by our Board, without any action by our shareholders. Amendments to our Declaration of Trust that our Board determines would, viewed as a whole, materially and adversely affect the contract rights of our outstanding shares, but excluding amendments of the type specified in (i) our Declaration of Trust as expressly not requiring any action or approval by our shareholders or (ii) Section 2-605 of the Maryland General Corporation Law (any and all of which shall not require approval of any shareholder), must be approved by our Board and shareholders entitled to cast a majority of the votes entitled to be cast on the matter.

Our Board has the exclusive power to adopt, alter or repeal any provision of our bylaws and to make new bylaws.

#### Effect of Certain Provisions of Maryland Law and of our Declaration of Trust and Bylaws
Certain provisions of Maryland law, our Declaration of Trust and bylaws could delay, defer or prevent a transaction or our change in control that might involve a premium price for shareholders or otherwise be in their best interest.

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#### ITEM 12.

#### INDEMNIFICATION OF DIRECTORS AND OFFICERS

#### Our Declaration of Trust
Our Declaration of Trust provides to the maximum extent permitted by Maryland law that we will indemnify each Covered Person, including any individual or entity who, while serving as the Covered Person and, at our request, serves or has served any other enterprise in any management or agency capacity, against any claim or liability to which the Covered Person may become subject by reason of such status, except for liability for the Covered Person's gross negligence or intentional misconduct. In addition, we will, without requiring a preliminary determination of the ultimate entitlement to indemnification, pay or reimburse, in advance of final disposition of a proceeding, reasonable expenses incurred by a present or former Covered Person or shareholder made a party to or witness in a proceeding by reason of such status, provided that in the case of a Covered Person, we will have received (i) a written affirmation by the Covered Person of the Covered Person's good faith belief that the Covered Person has met the applicable standard of conduct necessary for indemnification and (ii) a written undertaking by or on behalf of the Covered Person to repay the amount paid or reimbursed by us if it is ultimately determined that the applicable standard of conduct was not met. We are not required to indemnify or advance funds to any person entitled to indemnification under our Declaration of Trust (i) with respect to any action initiated or brought voluntarily by such indemnified person (and not by way of defense) unless (a) approved or authorized by our Board or (b) incurred to establish or enforce such person's right to indemnification under our Declaration of Trust or (ii) in connection with any claim with respect to which such person is found to be liable to us. As a result, you and we may have more limited rights against Covered Persons than might otherwise exist under common law, which could reduce your and our recovery from these persons if they act in a manner that causes us to incur losses.

We may, with the approval of our Board, provide or obligate ourselves to provide such indemnification or payment or reimbursement of expenses to any person that served any predecessor of ours as a Covered Person or any employee or agent of ours or any predecessor of ours. Except that no preliminary determination of the ultimate entitlement to indemnification will be required for the payment or reimbursement of expenses, any indemnification or payment or reimbursement of the expenses permitted by our Declaration of Trust will be furnished in accordance with the procedures provided for indemnification or advance or reimbursement of expenses, as the case may be, under Section 2-418(f) of the Maryland General Corporation Law (or any successor provision thereto) for directors of Maryland corporations.

#### Indemnification Agreements
We have entered into indemnification agreements with each of our trustees and executive officers. Pursuant to the terms of these indemnification agreements, we would indemnify and advance expenses and costs incurred by our trustees and executive officers in connection with any claims, suits or proceedings brought against such trustees and executive officers as a result of his or her service. However, our indemnification obligation is subject to the limitations set forth in the indemnification agreements and in our Declaration of Trust. We also maintain a directors and officers insurance policy.

#### Management Agreement
We will indemnify and hold harmless the Adviser and its affiliates, including their respective officers, managers, directors, partners and employees, from all liability, claims, damages or losses arising in the performance of their duties under the Management Agreement, and related expenses, including reasonable attorneys' fees, to the extent such liability, claims, damages or losses and related expenses are not fully reimbursed by insurance, and to the fullest extent possible without such indemnification being inconsistent with the laws of the State of Maryland or our Declaration of Trust.

The Adviser will indemnify us and hold us harmless from contract or other liability, claims, damages, taxes or losses and related expenses including attorneys' fees, to the extent that (i) such liability, claims, damages, taxes or losses and related expenses are not fully reimbursed by insurance and (ii) are incurred by reason of the Adviser's bad faith, fraud, willful misconduct, gross negligence or reckless disregard of its duties under the Management Agreement; provided, however, that the Adviser will not be held responsible for any action of our Board in following or declining to follow any advice or recommendation given by the Adviser.

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#### ITEM 13.

#### FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Set forth below is an index to our financial statement attached to this Registration Statement.

---

| | |
|:---|:---|
| [Index to Financial Statement](#fITFS)  | [F-1](#fITFS) |
| [Report of Independent Registered Public Accounting Firm](#fROIR)  | [F-2](#fROIR) |
| [Balance Sheet](#fBASH)  | [F-3](#fBASH) |
| [Notes to Financial Statement](#fNTFS1)  | [F-4](#fNTFS1) |

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#### ITEM 14.

#### CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.

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#### ITEM 15. FINANCIAL STATEMENTS AND EXHIBITS
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)

#### List separately all financial statements filed
The financial statement attached to this Registration Statement is listed under "*Item 13. Financial Statements and Supplementary Data*."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)

#### Exhibits

---

| | |
|:---|:---|
| 3.1\* | [Certificate of Trust of the Company, dated July 28, 2025](https://www.sec.gov/Archives/edgar/data/2081628/000110465925095649/tm2527160d2_ex3-1.htm)  |
| 3.2\*\* | [Amended and Restated Declaration of Trust of the Company, dated as of November 18, 2025](tm2527160d4_ex3-2.htm)  |
| 3.3\*\* | [Bylaws of the Company](tm2527160d4_ex3-3.htm)  |
| 4.1\*\* | [Distribution Reinvestment Plan of the Company](tm2527160d4_ex4-1.htm)  |
| 4.2\*\* | [Share Repurchase Plan of the Company](tm2527160d4_ex4-2.htm)  |
| 10.1\*\* | [Advisory Agreement between the Company and RCM GA Manager LLC, dated as of November 18, 2025](tm2527160d4_ex10-1.htm)  |
| 10.2\*\* | [Form of Indemnification Agreement by and between the Company and its trustees and executive officers](tm2527160d4_ex10-2.htm)  |
| 10.3\*\* | [Rithm Perpetual Life Residential Trust Independent Trustee Compensation Plan](tm2527160d4_ex10-3.htm)  |
| 10.4\*\* | [Form of Restricted Share Award Agreement](tm2527160d4_ex10-4.htm)  |
| 10.5\*\* | [Flow Mortgage Loan Purchase and Sale Agreement, by and between the Company and Rithm Loan Aggregation Trust, dated as of November 24, 2025](tm2527160d4_ex10-5.htm) |
| 10.6\*\* | [Flow Mortgage Loan Purchase and Sale Agreement, by and between the Company and Rithm Loan Aggregation Trust, dated as of November 24, 2025](tm2527160d4_ex10-6.htm) |
| 10.7\*\* | [Master Repurchase Agreement and Securities Contract, by and among Churchill MRA Funding I LLC, R-Home Pass Through Parent RTL-C LLC, the Company and R-Home REO RTL-C LLC, dated as of November 24, 2025](tm2527160d4_ex10-7.htm) |
| 10.8\*\* | [Master Repurchase Agreement and Securities Contract, by and among Wells Fargo Bank, National Association, R-Home Pass Through Parent W LLC, R-Home Pass-Through Parent TRS-W LLC, R-Home REO TRS-W LLC and the Company, dated as of November 24, 2025](tm2527160d4_ex10-8.htm) |
| 21.1\*\* | [Subsidiaries of the Company](tm2527160d4_ex21-1.htm)  |

---

\*

Previously filed.

\*\*

Filed herewith.

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#### INDEX TO FINANCIAL STATEMENT

---

| | |
|:---|:---|
| [Index to Financial Statement](#fITFS)  | [F-1](#fITFS) |
| [Report of Independent Registered Public Accounting Firm](#fROIR)  | [F-2](#fROIR) |
| [Balance Sheet](#fBASH)  | [F-3](#fBASH) |
| [Notes to Financial Statement](#fNTFS1)  | [F-4](#fNTFS1) |

---

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[**TABLE OF CONTENTS**](#TOC3)

#### Report of Independent Registered Public Accounting Firm
To the Shareholder and the Board of Trustees of Rithm Perpetual Life Residential Trust

#### Opinion on the Financial Statement
We have audited the accompanying balance sheet of Rithm Perpetual Life Residential Trust (the "Company") as of September 26, 2025, and the related notes (collectively referred to as the "financial statement"). In our opinion, the financial statement presents fairly, in all material respects, the financial position of the Company at September 26, 2025, in conformity with U.S. generally accepted accounting principles.

#### Basis for Opinion
This financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statement based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statement whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statement. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statement. We believe that our audit provides a reasonable basis for our opinion.

/s/ Ernst & Young LLP

We have served as the Company's auditor since 2025.

New York, NY

October 1, 2025

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#### RITHM PERPETUAL LIFE RESIDENTIAL TRUST

#### BALANCE SHEET AS OF SEPTEMBER 26, 2025

---

| | |
|:---|:---|
| **ASSETS** |  |
| Cash and cash equivalents  | $2000 |
| &nbsp;&nbsp;&nbsp; **Total assets**  | $2000 |
| **LIABILITIES AND EQUITY** |  |
| &nbsp;&nbsp;&nbsp; **Total liabilities**  | $— |
| Commitments and contingencies (Note 6)  |  |
| **Equity** |  |
| Common shares, $0.01 par value, 100 shares issued (Note 3)  | 1 |
| Additional paid-in capital  | 1999 |
| &nbsp;&nbsp;&nbsp; **Total equity**  | 2000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total liabilities and equity**  | $2000 |

---

See notes to financial statement.

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#### RITHM PERPETUAL LIFE RESIDENTIAL TRUST

#### NOTES TO FINANCIAL STATEMENT
1. ORGANIZATION

Rithm Perpetual Life Residential Trust (the "**Company**") was formed on July 31, 2025 as a Maryland statutory trust and intends to elect and qualify as a real estate investment trust ("**REIT**") under the Internal Revenue Code of 1986, as amended, for U.S. federal income tax purposes, commencing with the taxable year ending December 31, 2025. The Company's sponsor is Rithm Capital Corp. ("**Rithm**" or the "**Sponsor**"). RCM GA Manager LLC (the "**Adviser**"), an affiliate of Rithm, will serve as the external adviser to the Company pursuant to the advisory agreement between the Company and the Adviser (the "**Management Agreement**").

The Company's investment strategy is to invest primarily in North America in asset-based finance opportunities. The Company intends to initially focus on residential transitional loans and also invest across a range of other assets and investment types, including, but not limited to, investments in new origination loans, including non-qualified mortgage loans, scratch-and-dent loans, non-performing loans and reperforming loans, closed-end second loans, manufactured housing loans, synthetic and/or credit risk transfers, consumer loans, equity and other securities, including collateralized loan obligation securities and other collateralized products, and other opportunistic credit investments, in each case subject to compliance with the applicable REIT tax requirements and the applicable provisions of the U.S. Investment Company Act of 1940, as amended and the rules thereunder. Such investments may take the form of debt securities, warrants, options, other derivative instruments and other asset types, including equity-linked securities and, on an opportunistic basis, equity securities. No investments have been purchased or contracted to be purchased as of the balance sheet date.

The Company will be a "perpetual-life REIT," meaning the Company will be an investment vehicle of indefinite duration, whose common shares are intended to be sold periodically on a continuous basis at a price generally equal to the Company's prior period net asset value ("**NAV**") per share.

On September 12, 2025 (date of initial capitalization), Rithm Perpetual Life Residential Investor LLC, an affiliate of the Sponsor, invested an aggregate of $2,000 to capitalize the Company, for 100 common shares of beneficial interest, par value $0.01 per share, of the Company.

2. SIGNIFICANT ACCOUNTING POLICIES

The Company believes the following significant accounting policies, among others, affect its significant estimates and assumptions used in the preparation of the financial statement.

***Basis of Accounting*** — The accompanying financial statement has been prepared in accordance with accounting principles generally accepted in the United States of America ("**U.S. GAAP**"). Separate statements of operations, comprehensive income, shareholders' equity and cash flows have not been presented because the Company has not commenced operations.

***Use of Estimates*** — The preparation of the financial statement in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the balance sheet and the reported amounts of revenues. Actual results may differ materially from those estimates.

***Cash and Cash Equivalents —*** Cash and cash equivalents includes cash maintained in one or more custodian bank accounts. The Company may have bank balances in excess of federally insured amounts; however, the Company deposits its cash and cash equivalents with high credit-quality institutions to minimize credit risk exposure.

***Income Tax Information*** — The Company intends to make an election to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended, commencing with its taxable year ending December 31, 2025. A REIT is subject to several organizational and operational requirements including that it must distribute at least 90% of its REIT taxable income to its shareholders each year.

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#### RITHM PERPETUAL LIFE RESIDENTIAL TRUST

#### NOTES TO FINANCIAL STATEMENT
Even if the Company qualifies for taxation as a REIT, it may be subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed income.

***Organization and Offering Expenses —*** The Adviser will advance all of the Company's organization and offering expenses through the earlier of (i) the date that the Company's aggregate NAV is at least $200 million and (ii) the first anniversary of the date on which the Company first calculates NAV. The Company will reimburse the Adviser for all such advanced expenses ratably over the 60 months following the date on which the Adviser stops advancing organization and offering expenses per the prior sentence. Thereafter, the Company will reimburse the Adviser for any organization and offering expenses as and when incurred. The reimbursements may be paid, at the Adviser's election, in cash or Class E common shares of beneficial interest, or any combination thereof.

Organizational and offering expenses will include, without limitation, total underwriting and brokerage discounts and commissions, expenses for drafting, printing and amending the private placement memorandum relating to the Company's private offering or supplementing the memorandum, travel (including airfare consistent with the Adviser's travel policy, meals, lodging and entertainment), legal (whether in-house or outside counsel), tax professionals (whether in-house or outside tax professionals), salaries of employees while engaged in sales activity, mailing and distributing, telephone and other telecommunications, all advertising and marketing (including design and website expenses and the costs related to investor and broker-dealer sales meetings), capital raising, consulting, accounting, regulatory compliance, any administrative or other filings in connection with the Company's structuring, organization, negotiation, funding and start-up, including printing and document production costs, long distance telephone charges, postage and delivery charges and the preparation of, and negotiations with respect to, the Company's offering documents, investor presentations and other marketing materials, the Company's governing documents, subscription agreements, any side letters or similar agreements, agreements with broker-dealers and any other similar agreements, agreements with any depositary required to be appointed pursuant to applicable law, reasonable bona fide due diligence expenses and other out-of-pocket costs and expenses of participating broker-dealers supported by detailed and itemized invoices, expense reimbursements for actual costs incurred by employees of a dealer manager in the performance of wholesaling activities, costs in connection with preparing sales materials, design and website expenses, fees, expenses and charges of the transfer agent, registrars, trustees (including the Company's board of trustees), subscription processing, depositaries and experts, and fees to attend retail seminars sponsored by participating broker-dealers, expenses and taxes related to the filing, registration and qualification of the sale of the Company's shares under federal and state laws. There will be no cap on organizational or offering expenses.

As of September 26, 2025, the Adviser and its affiliates have incurred organization and offering expenses on the Company's behalf of approximately $2.0 million. These organization and offering expenses are not recorded in the accompanying balance sheet because such costs are not the Company's liability until the earlier of (i) the date that the Company's aggregate NAV is at least $200 million and (ii) the first anniversary of the date on which the Company first calculates NAV. When recorded by the Company, organizational expenses will be expensed as incurred, and offering expenses will be charged to shareholders' equity. Any amount due to the Adviser but not paid will be recognized as a liability on the balance sheet.

3. EQUITY

As of September 26, 2025, the Company is authorized to issue an unlimited number of common shares of beneficial interest, par value $0.01 per share. In connection with the initial closing of the Private Offering (as defined below), the Company expects to amend and restate its declaration of trust, which will authorize (i) an unlimited number of common shares of beneficial interest, par value $0.01 per share, including (a) unlimited common shares classified as Class S common shares of beneficial interest, par value $0.01 ("**Class S**"), (b) unlimited common shares classified as Class T common shares of beneficial interest, par value $0.01 ("**Class T**"), (c) unlimited common shares classified as Class D common shares of beneficial interest, par value $0.01 ("**Class D**"), (d) unlimited common shares classified as Class I common shares of beneficial interest, par value $0.01 ("**Class I**"), (e) unlimited common shares classified as Class J common

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#### RITHM PERPETUAL LIFE RESIDENTIAL TRUST

#### NOTES TO FINANCIAL STATEMENT
shares of beneficial interest, par value $0.01 ("**Class J**"), (f) unlimited common shares classified as Class J-2 common shares of beneficial interest, par value $0.01 ("**Class J-2**") and (g) unlimited common shares classified as Class E common shares of beneficial interest, par value $0.01 ("**Class E**"), and (ii) an unlimited number of shares classified as preferred shares. In September 2025, the Company commenced a continuous private offering of its common shares (the "**Private Offering**") pursuant to the exemption from registration provided by Section 4(a)(2) of the U.S. Securities Act of 1933, as amended, and Regulation D promulgated thereunder, and other exemptions of similar import in the laws of the states and other jurisdictions in which the offering is being made.

The share classes will have different upfront selling commissions, dealer manager fees and ongoing shareholder servicing fees, as well as different management and performance fees.

In order to facilitate the origination or acquisition of the Company's initial investments, the Sponsor (or an affiliate) has agreed to purchase (in one or more purchases) the lesser of (i) 5% of the Company's total NAV and (ii) $20 million of Class E shares at a price per share equal to the most recently determined NAV of Class E shares or, if a NAV has yet to be calculated, then at a price of $20.00 per Class E share (the "**Sponsor Investment**"). As of September 26, 2025, the Sponsor (or an affiliate) has not purchased any Class E shares in connection with the Sponsor Investment.

The initial per share purchase price for the Company's common shares will be $20.00 plus any applicable upfront selling commissions / origination fees, upfront dealer manager fees or other similar placement fees payable to broker-dealers, dealer managers or financial intermediaries. After a NAV per share has been calculated, each class of shares will be sold at the then-current transaction price for the applicable class, which will generally be the prior month's NAV per share for such class, plus any applicable upfront selling commissions / origination fees, upfront dealer manager fees or other similar placement fees.

4. RELATED PARTY TRANSACTIONS

***Upfront Selling Commissions and Dealer Manager Fees*** — The Company does not charge upfront selling commissions, origination fees, or dealer manager fees directly with respect to Class S, Class T, Class D, Class J or Class J-2 shares. However, financial intermediaries may charge subscribers transaction or placement fees, including upfront selling commissions, in amounts that vary by share class and intermediary, subject to maximum thresholds. Specifically, Class S and Class T shares may be subject to aggregate upfront fees of up to 3.5% of the transaction price, Class D shares up to 1.5% of the net offering price, and Class J and Class J-2 shares up to 2.0% of the transaction price. If a dealer manager is engaged, it may also charge upfront dealer manager fees, provided that total fees do not exceed the stated maximums per share class. No upfront selling commissions, dealer manager fees, or similar placement fees are paid with respect to purchases of Class I or Class E shares, or shares of any class acquired pursuant to the Company's distribution reinvestment plan.

***Shareholder Servicing Fees*** — The Company pays shareholder servicing fees over time for ongoing services rendered to shareholders by participating broker-dealers or financial intermediaries. These fees are calculated as a percentage of the aggregate NAV of outstanding shares and paid monthly in arrears. Class S and Class T shares are subject to shareholder servicing fees of 0.85% per annum, Class D shares are subject to 0.25% per annum, and Class J and Class J-2 shares are subject to distribution fees of up to 0.625% per annum, capped at 50% of the aggregate of the management and distribution fees attributable to such shares. Class I and Class E shares are not subject to shareholder servicing or distribution fees. Shares acquired through the distribution reinvestment plan are subject to the same ongoing fees as the original share class but are not subject to upfront fees. In certain arrangements, shares may convert into Class I shares if total fees reach agreed-upon thresholds or if broker-dealer eligibility lapses.

***Management Fee —*** Until the Company becomes a "publicly offered REIT" for U.S. federal income tax purposes, the Company will pay a management fee equal to 1.25% of NAV per annum (less any Distribution Fees (as defined below)), payable monthly in arrears. After the Company becomes a "publicly offered REIT" for U.S. federal income tax purposes:

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#### RITHM PERPETUAL LIFE RESIDENTIAL TRUST

#### NOTES TO FINANCIAL STATEMENT
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Class S shares, Class T shares, Class D shares, Class I shares, Class J shares and Class J-2 shares will pay a management fee equal to 1.25% of NAV per annum (less any Distribution Fees), payable monthly in arrears; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • The payment of a management fee to the Adviser for the Class E shareholders will be waived by the Adviser; provided that the Adviser may, in its discretion, reinstate management fees of any Class E shareholder who is no longer an employee, officer or director at the Sponsor or its affiliates.

For the avoidance of doubt, the amount of the management fee paid by any class of shares to the Adviser for a given period will be reduced by the amount of any Distribution Fees with respect to such class for such period. Until the Company becomes a "publicly offered REIT" for U.S. federal income tax purposes and in order to meet the applicable REIT tax requirements, the Company intends to only issue Class J shares.

Any management fee will be calculated and paid to the Adviser on a class-by-class basis, based on the NAV of each applicable class of the Company's shares. In calculating the Adviser's management fee, the Company will use its NAV before giving effect to accruals for the management fee, performance fee, ongoing servicing fees payable to a dealer manager, if any ("**Ongoing Servicing Fees**"), or distribution fees payable to a dealer manager, if any ("**Distribution Fees**"), or distributions payable on the Company's shares.

All or a portion of the management fee may be paid, at the Adviser's election, in cash or Class E shares. The Adviser may elect to receive Class E shares primarily for the Company's cash management purposes and alignment of interest, but may have its shares repurchased from time to time.

***Performance Fee*** — Pursuant to the terms of the Management Agreement, upon the effectiveness of this Registration Statement, the Adviser may be entitled to a performance fee, which is accrued monthly and payable quarterly (or part thereof that the Management Agreement is in effect) in arrears. The performance fee will be an amount, not less than zero, equal to 12.5% of Core Earnings (as defined below) for the immediately preceding quarter, subject to a hurdle rate, expressed as a rate of return on adjusted capital (as defined below), equal to 1.25% per quarter (the "**hurdle rate**"), or an annualized hurdle rate of 5.0%. As a result, the Adviser does not earn a performance fee for any quarter until Core Earnings for such quarter exceeds the hurdle rate of 1.25%.

Once Core Earnings in any quarter exceeds the hurdle rate, the Adviser shall be entitled to a "catch-up" fee equal to the amount of Core Earnings in excess of the hurdle rate, until Core Earnings for such quarter exceeds a percentage of adjusted capital equal to the hurdle rate divided by 0.875 (or 1 minus 0.125) for such quarter (i.e., approximately 1.429% quarterly, or 5.714% annually, of adjusted capital). Thereafter, the Adviser is entitled to receive 12.5% of Core Earnings.

The performance fee may be paid, at the Adviser's election, in cash or Class E shares, or any combination thereof. Upon the effectiveness of this Registration Statement, the payment of the performance fee to the Adviser for the holders of Class J shares and Class E shares will be waived by the Adviser.

For purposes of the performance fee, "adjusted capital" means cumulative net proceeds generated from sales of the Company's Class S shares, Class T shares, Class D shares, Class I shares and Class J-2 shares (including proceeds from the distribution reinvestment plan) reduced for distributions from non-liquidating dispositions of the Company's investments paid to the Company's Class S, Class T, Class D, Class I and Class J-2 shareholders and amounts paid to the Company's Class S, Class T, Class D, Class I and Class J-2 shareholders for share repurchases pursuant to the Company's share repurchase plan.

Because the performance fee is calculated based on Core Earnings, the Adviser may be entitled to a performance fee even if shareholders experience a decline in NAV per share in the relevant month.

For purposes of calculating the performance fee, "Core Earnings" means: the net income (loss) attributable to holders of the Company's Class S shares, Class T shares, Class D shares, Class I shares and Class J-2 shares, computed in accordance with U.S. GAAP, including realized gains (losses) not otherwise

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#### RITHM PERPETUAL LIFE RESIDENTIAL TRUST

#### NOTES TO FINANCIAL STATEMENT
included in U.S. GAAP net income (loss) and excluding (i) non-cash equity compensation expense, (ii) the performance fee, (iii) depreciation and amortization, (iv) any unrealized gains or losses or other non-cash items that are included in net income for the applicable reporting period, regardless of whether such items are included in other comprehensive income or loss, or in net income, (v) one-time events pursuant to changes in U.S. GAAP and (vi) certain non-cash adjustments and certain material non-cash income or expense items, in each case after discussions between the Adviser and the Company's independent trustees and approved by a majority of the Company's independent trustees.

***Operating Expense Reimbursement*** — The Company will pay directly or reimburse the Adviser or its affiliates for costs and expenses the Adviser or its affiliates incur in connection with the services it provides to the Company, including, but not limited to, (i) the actual cost of goods and services used by the Company and obtained from either an affiliate or a non-affiliated person, including fees paid to affiliated service providers, administrators, transfer agents, consultants, attorneys, accountants, tax advisors, technology providers and other services providers, and brokerage fees paid in connection with the origination, acquisition, purchase and sale of its investments, (ii) expenses of managing, operating and disposing of the Company's investments, whether payable to an affiliate or a non-affiliated person, (iii) expenses related to the personnel of the Adviser performing services for the Company other than those who provide investment advisory services to the Company, (iv) expenses relating to compliance-related matters and regulatory filings relating to the Company's activities and (v) administration fees and expenses, if any, payable under the Management Agreement (including payments based upon the Company's allocable portion of the Adviser's overhead in performing its obligations under the Management Agreement, including rent and the allocable portion of the cost (including total compensation) of the Company's chief financial officer and chief legal officer, and their respective staffs that assist with the activities covered by the Management Agreement).

***Acquisition Expense Reimbursemen***t — The Company will reimburse the Adviser for out-of-pocket expenses in connection with the selection, acquisition, origination, financing and management of investments, whether or not such investments are made. The reimbursements may be paid, at the Adviser's election, in cash or Class E shares, or any combination thereof.

***Fees or Reimbursements for Other Services*** — The Sponsor or its affiliated service providers may be retained to provide services to the Company or entities through which investments are held by the Company that would otherwise be performed for the Company or such entities by third parties. Any fees, compensation and costs payable to such affiliated service providers in connection with services provided by such affiliated service providers that (i) do not exceed market rates, as determined by the Adviser to be appropriate under the circumstances or (ii) are approved by a majority of the Company's trustees, including a majority of the Company's independent trustees, or an independent compliance reviewer will not offset or otherwise reduce the management fee or otherwise be shared with the Company.

5. ECONOMIC DEPENDENCY

The Company is dependent on the Adviser and its affiliates for certain services that are essential to it, including the sale of the Company's common shares, acquisition and disposition decisions and certain other responsibilities. In the event that the Adviser and/or its affiliates are unable or unwilling to provide such services, the Company would be required to find alternative service providers.

6. COMMITMENTS AND CONTINGENCIES

As of September 26, 2025, the Company is not subject to any material litigation nor is the Company aware of any material litigation threatened against it.

7. SUBSEQUENT EVENTS

The Company has evaluated the impact of all subsequent events through the date the financial statement was available for issuance and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statement.

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#### SIGNATURES
Pursuant to the requirements of Section 12 of the Securities Exchange Act of 1934, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized.

#### Rithm Perpetual Life Residential Trust
By:

/s/ Michael Nierenberg

Name: Michael Nierenberg

Title: Chief Executive Officer and Trustee

Date: November 25, 2025

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## Exhibit 3.2

**Exhibit 3.2**

**<u>Rithm Perpetual Life Residential Trust</u>**

**<u>AMENDED AND RESTATED DECLARATION OF TRUST</u>**

November 18, 2025

This AMENDED AND RESTATED DECLARATION OF TRUST is made effective as of the date set forth above by the Trustees of the Trust.

**ARTICLE I**

**FORMATION; CERTIFICATE OF TRUST**

The Trust is a statutory trust within the meaning of the Act. The Trust shall not be deemed to be a general partnership, limited partnership, joint venture, joint stock company or a corporation, but nothing herein shall preclude the Trust from being treated for tax purposes as a partnership, association, corporation or REIT or being disregarded for tax purposes as an entity separate from its owners under the Code. The sole initial Trustee formed the Trust by filing the Certificate. The Trust intends to elect to be treated as a REIT for federal, and applicable state and local, income tax purposes, and has the right to change such election at any time subject to any restrictions set forth in this Declaration of Trust. The governing instrument (as that term is defined in the Act) of the Trust shall be this Declaration of Trust, together with the Bylaws. In accordance with the initial Declaration of Trust, the Board has amended and restated the Declaration of Trust as provided herein.

**ARTICLE II**

**NAME**

The name of the Trust is "Rithm Perpetual Life Residential Trust". The Board may cause the Trust to use any other designation or name for the Trust.

**ARTICLE III**

**PURPOSES AND POWERS**

Section 3.1 <u>Purposes</u>. The purposes for which the Trust is formed are to engage in any lawful act or activity for which a statutory trust may be formed under the general laws of the State of Maryland as now or hereafter in force*,* including, without limitation or obligation, engaging in business as a REIT.

Section 3.2 <u>Powers</u>. The Trust shall have all of the powers granted to a statutory trust by the Act and all other powers that are not inconsistent with law and are appropriate to promote and attain the purposes of the Trust set forth in this Declaration of Trust.

**ARTICLE IV**

**RESIDENT AGENT; Principal Office**

The name and address of the resident agent of the Trust in the State of Maryland are as set forth in the Certificate. The address of the Trust's principal office in the State of Maryland is as set forth in the Certificate. The Board or any duly authorized agent of the Trust may change the Trust's resident agent or principal office from time to time. The Trust may have such offices or places of business within or outside the State of Maryland as the Board may from time to time determine.

**ARTICLE V**

**DEFINITIONS**

As used in this Declaration of Trust, the following terms shall have the following meanings:

"<u>Act</u>" means the Maryland Statutory Trust Act, as amended.

"<u>Actual Owner</u>" means a Person that is required to include in such Person's gross income the dividends or other distributions received on such Shares.

"<u>Adviser</u>" means RCM GA Manager LLC, a Delaware limited liability company, or another Affiliate of the Sponsor that acts as investment adviser or manager to the Trust as permitted by <u>Section 6.7(a)</u>.

"<u>Adviser Agreement</u>" shall mean any agreement between the Trust and the Adviser pursuant to which the Adviser will direct or perform the day-to-day business affairs of the Trust, including an advisory, management and/or administrative services agreement as permitted by <u>Section 6.7(a)</u>.

"<u>Adviser Designee</u>" has the meaning set forth in <u>Section 6.3</u>.

"<u>Affiliate</u>" means, with respect to any Person, (a) any Person directly or indirectly owning, controlling or holding, with the power to vote, 10% or more of the outstanding voting securities of such other Person; (b) any Person 10% or more of whose outstanding voting securities are directly or indirectly owned, controlled or held, with the power to vote, by such other Person; (c) any Person directly or indirectly controlling, controlled by or under common control with such other Person, including any partnership in which such Person is a general partner; (d) any executive officer, director, trustee or general partner of such other Person; and (e) any legal entity for which such Person acts as an executive officer, director, trustee or general partner.

"<u>Affiliated Person</u>" means any Trustee or officer of the Trust who is also an officer, employee or agent of the Sponsor or any of its Affiliates.

"<u>Aggregate Share Ownership Limit</u>" means 9.8% (in value or number of shares, whichever is more restrictive) of the aggregate of the outstanding Shares of all classes or series, or such other percentage determined by the Board in accordance with <u>Section 8.1.8</u>.

"<u>Beneficial Ownership</u>" means ownership of Shares by a Person, whether the interest in Shares is held directly or indirectly (including by a nominee), and shall include interests that would be treated as owned through the application of Section 544 of the Code, as modified by Sections 856(h)(1)(B) of the Code. The terms "Beneficial Owner," "Beneficially Owns," "Beneficially Own," "Beneficially Owning" and "Beneficially Owned" shall have the correlative meanings.

"<u>Benefit Plan Investor</u>" means (a) a Plan; (b) an entity whose underlying assets include (or are deemed to include for purposes of ERISA or Section 4975 of the Code) assets of a Plan by reason of such Plan's investment in such entity; or (c) any other entity whose assets otherwise constitute "plan assets" for purposes of ERISA or Section 4975 of the Code.

"<u>Board</u>" means the Board of Trustees of the Trust.

"<u>Business Day</u>" means any day, other than a Saturday or Sunday, that is neither a legal holiday nor a day on which banking institutions in New York are authorized or required by law, regulation or executive order to close.

"<u>Bylaws</u>" means the bylaws adopted in accordance herewith for the regulation and management of the affairs of the Trust, as amended, supplemented or restated from time to time.

"<u>Certificate</u>" means the Certificate of Trust filed with the State Department of Assessments and Taxation of Maryland, as amended, restated or corrected from time to time.

"<u>Charitable Beneficiary</u>" means one or more beneficiaries of the Charitable Trust as determined pursuant to <u>Section 8.2.7</u>; *provided*, that each such organization must be described in Section 501(c)(3) of the Code and contributions to each such organization must be eligible for deduction under each of Sections 170(b)(1)(A), 2055 and 2522 of the Code.

"<u>Charitable Trust</u>" means any trust provided for in <u>Section 8.2</u>.

"<u>Charitable Trustee</u>" means the Person that is not an Affiliate of the Trust or an Affiliate of any Prohibited Owner that is appointed by the Trust to serve as trustee of the Charitable Trust.

"<u>Class D Common Shares</u>" means Class D Common Shares of the Trust.

"<u>Class E Common Shares</u>" means Class E Common Shares of the Trust.

"<u>Class I Common Shares</u>" means Class I Common Shares of the Trust.

"<u>Class J Common Shares</u>" means Class J Common Shares of the Trust.

"<u>Class J-2 Common Shares</u>" means Class J-2 Common Shares of the Trust.

"<u>Class S Common Shares</u>" means Class S Common Shares of the Trust.

"<u>Class T Common Shares</u>" means Class T Common Shares of the Trust.

"<u>Code</u>" means the Internal Revenue Code of 1986, as amended.

"<u>Common Share Ownership Limit</u>" means 9.8% (in value or in number of Common Shares, whichever is more restrictive) of the aggregate of the outstanding Common Shares, or such other percentage determined by the Board in accordance with <u>Section 8.1.8</u>.

"<u>Common Shares</u>" means common shares of beneficial interest, $0.01 par value per Share, of the Trust.

"<u>Constructive Ownership</u>" means ownership of Shares by a Person, whether the interest in Shares is held directly or indirectly (including by a nominee), and shall include interests that would be treated as owned through the application of Section 318(a) of the Code, as modified by Section 856(d)(5) of the Code. The terms "Constructive Owner," "Constructively Owns," "Constructively Owning," and "Constructively Owned" shall have the correlative meanings.

"<u>Conversion Event</u>" has the meaning set forth in <u>Section 11.2</u>.

"<u>Covered Person</u>" means (a) each Trustee, (b) the Sponsor, (c) the Adviser, (d) each equityholder, member, manager, director, officer, employee or agent of any Trustee or the Board and (e) each officer of the Trust.

"<u>Declaration of Trust</u>" means this Declaration of Trust, as it may hereafter be amended, supplemented or restated from time to time.

"<u>Designated Funds</u>" has the meaning set forth in Section 7.6.

"<u>ERISA</u>" means the Employee Retirement Income Security Act of 1974, as amended.

"<u>Excepted Holder Limit</u>" means, provided that the affected Excepted Holder agrees to comply with the requirements established by the Board pursuant to <u>Section 8.1.7</u> and subject to adjustment pursuant to <u>Section 8.1.8</u>, the percentage limit established by the Board pursuant to <u>Section 8.1.7</u>.

"<u>Independent Trustee</u>" means a Trustee (a) who is not an officer or employee of the Trust, any subsidiary of the Trust, or the Sponsor or its Affiliates, (b) whom the Board affirmatively determines has no material relationship with the Trust and (c) who otherwise satisfies the director independence tests provided for in Section 303A.02 of the New York Stock Exchange Listed Company Manual, as may be amended from time to time.

"<u>Initial Date</u>" means the first date that the Trust is qualified as a REIT.

"<u>Listing</u>" shall mean the listing of any or all of the Common Shares on a securities exchange registered with the Securities and Exchange Commission under Section 6(a) of the Securities Exchange Act of 1934, as amended, or any other internationally recognized securities exchange determined by the Board.

"<u>Market Price</u>" on any date means, with respect to any class or series of outstanding Shares, the Closing Price for such Shares on such date. The "<u>Closing Price</u>" on any date shall mean the last sale price for such Shares, regular way, or, in case no such sale takes place on such day, the average of the closing bid and asked prices, regular way, for such Shares, in either case as reported on the principal consolidated transaction reporting system with respect to securities listed on the principal national securities exchange on which such Shares are listed or admitted to trading or, if such Shares are not listed or admitted to trading on any national securities exchange, the last quoted price, or, if not so quoted, the average of the high bid and low asked prices in the over-the-counter market, as reported by the principal automated quotation system that may then be in use or, if such Shares are not quoted by any such organization, the average of the closing bid and asked prices as furnished by a professional market maker making a market in such Shares selected by the Board or, in the event that no trading price is available for such Shares, the NAV of such Shares, as determined by the Board in accordance with the PPM.

"<u>MGCL</u>" means the Maryland General Corporation Law, as amended.

"<u>NAV</u>" means net asset value determined in accordance with the valuation guidelines that have been approved by the Board.

"<u>Organization and Offering Expenses</u>" means any and all costs and expenses incurred by the Trust in connection with the formation of the Trust and the marketing and distribution of Shares, including, without limitation, total underwriting and brokerage discounts and commissions, expenses for drafting, printing and amending the PPM or supplementing the PPM, travel (including airfare consistent with the Adviser's travel policy, meals, lodging and entertainment), legal (whether in-house or outside counsel), tax professionals (whether in-house or outside tax professionals), salaries of employees while engaged in sales activity, mailing and distributing, telephone and other telecommunications, all advertising and marketing (including design and website expenses and the costs related to investor and broker-dealer sales meetings), capital raising, consulting, accounting, regulatory compliance, any administrative or other filings in connection with the structuring, organization, negotiation, funding and start-up of the Trust, including printing and document production costs, long distance telephone charges, postage and delivery charges and the preparation of, and negotiations with respect to, the Trust's offering documents, investor presentations and other marketing materials, the Trust's governing documents, subscription agreements, any side letters or similar agreements, agreements with broker-dealers and any other similar agreements, agreements with any depositary required to be appointed pursuant to any applicable law, reasonable *bona fide* due diligence expenses and other out-of-pocket costs and expenses of participating broker-dealers supported by detailed and itemized invoices, expense reimbursements for actual costs incurred by employees of a dealer manager in the performance of wholesaling activities, costs in connection with preparing sales materials, design and website expenses, fees, expenses and charges of our escrow agent, transfer agent, registrars, trustees (including the Board), subscription processing, depositaries and experts, fees to attend retail seminars sponsored by participating broker-dealers, expenses and taxes related to the filing, registration and qualification of the sale of the Shares under federal and state laws.

"<u>Person</u>" means an individual, corporation, partnership, limited liability company, estate, trust (including a trust qualified under Sections 401(a) or 501(c)(17) of the Code), a portion of a trust permanently set aside for or to be used exclusively for the purposes described in Section 642(c) of the Code, association, private foundation within the meaning of Section 509(a) of the Code, joint stock company or other entity and also includes a group as that term is used for purposes of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended, and a group to which an Excepted Holder Limit applies.

"<u>Plan</u>" means, (a) a plan as defined in and subject to Section 4975(e) of the Code and/or (b) an employee benefit plan (as defined in Section 3(3) of ERISA) that is subject to the provisions of Title I of ERISA.

"<u>Plan Asset Regulations</u>" means 29 C.F.R. Section 2510.3-101 *et seq*. issued by the U.S. Department of Labor, as modified by Section 3(42) of ERISA.

"<u>Plan Assets</u>" mean "plan assets" as defined in the Plan Asset Regulations.

"<u>PPM</u>" means the Confidential Private Placement Memorandum of the Trust as of November 2025, as may be amended or supplemented from time to time.

"<u>Preferred Shares</u>" means preferred shares of beneficial interest of the Trust, $0.01 par value per Share.

"<u>Prohibited Owner</u>" means, with respect to any purported Transfer, any Person who, but for the provisions of <u>Article VIII</u>, would Beneficially Own or Constructively Own Shares in violation of <u>Article VIII</u>, and if appropriate in the context, shall also mean any Person who would have been the record owner of Shares that the Prohibited Owner would have so owned.

"<u>REIT</u>" means a real estate investment trust within the meaning of Sections 856-859 of the Code.

"<u>Restriction Termination Date</u>" means the first day after the Initial Date on which the Board determines that it is no longer in the best interests of the Trust to attempt to, or continue to, qualify as a REIT or that compliance with the restrictions and limitations on Beneficial Ownership, Constructive Ownership and Transfers of Shares set forth herein is no longer required for the Trust to qualify as a REIT.

"<u>Shareholder</u>" means an owner of record of Shares.

"<u>Shares</u>" means shares of beneficial interest of the Trust.

"<u>Sponsor</u>" means Rithm Capital Corp., a Delaware corporation.

"<u>Transfer</u>" means any issuance, sale, transfer, gift, assignment, devise or other disposition, as well as any other event that causes any Person to acquire, or change its level of, Beneficial Ownership or Constructive Ownership, or any agreement to take any such actions or cause any such events, of Shares or the right to vote (other than solely by revocable proxy) or receive dividends or other distributions on Shares, including (a) a change in the capital structure of the Trust, (b) a change in the relationship between two or more Persons that causes a change in ownership of Shares by application of Section 544 of the Code, as modified by Section 856(h) of the Code, (c) the granting or exercise of any option or warrant (or any acquisition or disposition of any option or warrant), pledge, security interest, or similar right to acquire Shares, (d) any acquisition or disposition of any securities or rights convertible into or exchangeable for Shares or any interest in Shares or any exercise of any such conversion or exchange right and (e) Transfers of interests in other entities that result in changes in Beneficial Ownership or Constructive Ownership of Shares; in each case, whether voluntary or involuntary, whether owned of record, Constructively Owned or Beneficially Owned and whether by operation of law or otherwise. The terms "Transfers," "Transferring" and "Transferred" shall have the correlative meanings.

"<u>Trust</u>" means Rithm Perpetual Life Residential Trust.

"<u>Trust Property</u>" means any and all property or other assets owned directly or indirectly by the Trust.

"<u>Trustees</u>" means the trustees of the Trust.

"<u>Upfront Sales Load</u>" means any upfront selling commission, dealer manager fee or other similar placement fees paid to the Trust's dealer manager or any other financial intermediary with respect to the Trust's Class S Common Shares, Class T Common Shares, Class D Common Shares , Class J Common Shares or Class J-2 Common Shares.

**ARTICLE VI**

**BOARD OF TRUSTEES**

Section 6.1 <u>General Powers</u>. Subject only to any limitations expressly set forth in the Act, the Certificate, this Declaration of Trust or the Bylaws, (a) the business and affairs of the Trust shall be managed exclusively by or under the direction of the Board, which shall be appointed and shall serve in accordance with this Declaration of Trust, (b) the Board shall have full, exclusive and absolute power, control and authority over the business and affairs of the Trust and Trust Property, and no Shareholder shall have any right to participate in or exercise control or management power over the business and affairs of the Trust, and (c) the Board shall have the exclusive power to take or authorize any action within the powers of the Trust under the Act, the Certificate, this Declaration of Trust and the Bylaws, including, without limitation, the power to authorize or approve any action that would otherwise require the approval of one or more Shareholders under the Act. This Declaration of Trust shall be construed with the presumption in favor of the grant of power and authority to the Board. The enumeration and definition of particular powers of the Board included in this Declaration of Trust or the Bylaws shall in no way be limited or restricted by reference to or inference from the terms of this or any other provision of this Declaration of Trust or the Bylaws or construed or deemed by inference or otherwise in any manner to exclude or limit the powers conferred upon the Board under the general laws of the State of Maryland or any other law. Any determination regarding any matter within the powers of the Board or any construction of the Certificate, this Declaration of Trust or the Bylaws (including any construction of the Certificate, this Declaration of Trust or the Bylaws regarding the scope of the powers of the Board) made by the Board shall be conclusive.

The Board, without any action by the Shareholders, shall have and may exercise, on behalf of the Trust, without limitation, the power to: (a) adopt, amend and repeal the Bylaws, which may contain any provisions not inconsistent with the Act, the Certificate or this Declaration of Trust; (b) elect or appoint officers or other agents of the Trust in the manner provided in the Bylaws; (c) solicit proxies from Shareholders; (d) authorize the issuance of Shares in one or more classes and series; authorize the declaration and payment of distributions; (e) cause the Trust to elect to qualify as a REIT and take such actions as may be necessary or appropriate to maintain such qualification; (f) cause the Trust to cease to qualify, or attempt to qualify, as a REIT; (g) determine that compliance with any restriction or limitation on ownership or Transfer of Shares set forth in <u>Article VIII</u> is no longer required for the Trust to qualify as a REIT; and (h) do any other act and authorize the Trust to do any other act or enter into any agreement or other document necessary or appropriate to exercise the powers or effectuate the purposes of the Trust.

Section 6.2 <u>Number and Qualifications</u>. As of the date of this Declaration of Trust, the number of Trustees shall be five, which number may thereafter be increased or decreased only by the Board pursuant to the Bylaws. No reduction in the number of Trustees shall cause the removal of any Trustee from office prior to the expiration of his, her or its term.

Section 6.4 <u>Resignation and Removal</u>. Any Trustee may resign by delivering his, her or its written notice of resignation to the Board, effective upon execution and delivery of such notice or upon any future date or time specified in the notice. A Trustee judged incompetent or for whom a guardian or conservator has been appointed shall be deemed to have resigned as of the date of such adjudication or appointment. Any Trustee or the entire Board, may be removed, at any time, but only for "cause" and then only by the affirmative vote of Shareholders entitled to cast at least two-thirds of the votes entitled to be cast on the matter as set forth in <u>Section 7.5</u>. In addition, any Trustee may be removed, at any time, but only for "cause" by written instrument, signed by a majority of the Trustees, specifying the date when such removal shall become effective. For the purpose of this paragraph, "cause" shall mean, with respect to any particular Trustee, conviction of a felony or a final judgment of a court of competent jurisdiction holding that such Trustee caused demonstrable, material harm to the Trust through bad faith or active and deliberate dishonesty.

Section 6.5 <u>Determinations by Board</u>. The determination as to any of the following matters by or pursuant to the direction of the Board and consistent with this Declaration of Trust, shall be final and conclusive and shall be binding upon the Trust and every Shareholder: the amount of the net income of the Trust for any period and the amount of assets at any time legally available for the payment of dividends, redemption of Shares or the payment of other distributions to the Shareholders; the amount of paid-in surplus, net assets, other surplus, annual or other cash flow, net profit, net assets in excess of capital, undivided profits or excess of profits over losses on sales of assets; the amount, purpose, time of creation, increase or decrease, alteration or cancellation of any reserves or charges and the propriety thereof (whether or not any obligation or liability for which such reserves or charges shall have been created shall have been paid or discharged); any interpretation or resolution of any ambiguity with respect to any provision of the Certificate or this Declaration of Trust (including any of the terms, preferences, conversion or other rights, voting powers or rights, restrictions, limitations as to dividends or other distributions, qualifications or terms or conditions of redemption of any class or series of Shares) or of the Bylaws; the fair value, or any sale, bid or asked price to be applied in determining the fair value, of any asset owned or held by the Trust or of any Shares; the number of outstanding Shares at any time or from time to time; the NAV of the Trust allocable to any class or series of Shares; any matter relating to the acquisition, holding or disposition of any assets by the Trust; any interpretation of the terms and conditions of one or more agreements with any person, corporation, association, company, trust, partnership (limited or general) or other entity; the compensation of Trustees, officers, employees or agents of the Trust; or any other matter relating to the business and affairs of the Trust or required or permitted by law, this Declaration of Trust or otherwise to be determined by the Board.

Section 6.6 <u>Legal Title</u>. Legal title to all of the Trust Property shall at all times be vested in the Trust as a separate legal entity. No Shareholder shall be deemed to have a severable ownership interest in any individual asset of the Trust, or any right of partition or possession thereof, but each Shareholder shall have, except as otherwise provided for herein, a proportionate, undivided beneficial interest in the Trust. The Trust, or at the determination of the Board, one or more of the Trustees or a nominee acting for and on behalf of the Trust, shall be deemed to hold legal title and beneficial ownership of any income earned on securities of the Trust issued by any business entities formed, organized, or existing under the laws of any jurisdiction, including the laws of any foreign country.

Section 6.7 <u>Service Contracts</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Advisory, Management and Administrative Services</u>. Subject to such requirements as may be set forth under federal and/or state law, in <u>Article IX</u> and in the Bylaws, the Board may, at any time and from time to time, contract for exclusive or non-exclusive advisory, management and/or administrative services for the Trust or for any class or series of Shares with any corporation, trust, association, or other person; and any such contract may contain such other terms as the Board may determine, including, without limitation, payment of fees and authority for the investment adviser to the Trust to supervise and direct the investment of all assets held, and to determine from time to time without prior consultation with the Board what investments shall be purchased, held, sold, or exchanged and what portion, if any, of the assets of the Trust shall be held uninvested and to make changes in the Trust's investments; and authority for the investment adviser or the administrator of the Trust to delegate certain or all of its duties under such contracts to qualified investment advisers and administrators, or such other activities as may specifically be delegated to such party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Underwriters</u>. The Board may retain underwriters and/or placement agents to sell Shares and other securities of the Trust. The Board may in its discretion from time to time authorize the Trust to enter into one or more contracts, providing for the sale of securities of the Trust, whereby the Trust may either agree to sell such securities to the other party to the contract or appoint such other party its sales or placement agent for such securities. In either case, the contract shall be on such terms and conditions as the Board may in its discretion determine that are not inconsistent with the provisions of this <u>Article VI</u> or the Bylaws; and such contract may also provide for the repurchase or sale of securities of the Trust by such other party as principal or as agent of the Trust and may provide that such other party may enter into selected dealer agreements with registered securities dealers and brokers and servicing and similar agreements with persons who are not registered securities dealers to further the purposes of the distribution or repurchase of the securities of the Trust. Every such contract shall comply with such requirements and restrictions as may be set forth under federal and/or state law or regulation and the Bylaws, and any such contract may contain such other terms as the Board may determine.

Section 6.8 <u>ERISA Matters</u>. Notwithstanding any other provision of this Declaration of Trust, the Board is authorized to take any action or refrain from taking any action which in its judgment is necessary or desirable to prevent (a) the Trust or any of its assets from being deemed to constitute Plan Assets of any Benefit Plan Investor or (b) the Trust from engaging in a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975(c) of the Code.

Section 6.9 <u>REIT Qualification</u>. If the Trust elects to qualify for U.S. federal income tax treatment as a REIT, the Board shall use its commercially reasonable efforts to take such actions as are necessary or appropriate to preserve the status of the Trust as a REIT; however, if the Board determines that it is no longer in the best interests of the Trust to attempt to, or continue to, qualify as a REIT, the Board may revoke or otherwise terminate the Trust's REIT election pursuant to Section 856(g) of the Code. The Board, in its sole and absolute discretion, also may (a) determine that compliance with any restriction or limitation on Share ownership and transfers set forth in <u>Article VIII</u> is no longer required for REIT qualification and (b) make any other determination or take any other action pursuant to <u>Article VIII</u>.

Section 6.10 <u>Tax on Disqualified Organizations</u>. To the extent that the Trust incurs any tax pursuant to Section 860E(e)(6) of the Code as a result of any "excess inclusion" income (within the meaning of Section 860E of the Code) of the Trust that is allocable to a Shareholder that is a "disqualified organization" (as defined in Section 860E(e)(5) of the Code), the Board may, in its sole discretion, cause the Trust to allocate such tax solely to the Shares held by such disqualified organization in the manner described in Treasury Regulation Section 1.860E-2(b)(4) by reducing from one or more distributions paid to such Shareholder the tax incurred by the Trust pursuant to Section 860E(e)(6) as a result of such Shareholder's ownership of Shares.

Section 6.11 <u>Consent for Certain Actions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Board, without any action by the Shareholders, shall have and may exercise, on behalf of the Trust, without limitation, the power to provide the requisite consent in connection with (i) approvals required under the Investment Advisers Act of 1940, as amended (the "<u>Investment Advisers Act</u>"), including any approvals required under Section 206(3) thereof or (ii) any consent to a transaction that would result in any "assignment" (within the meaning of the Investment Advisers Act) with respect to the Adviser, and such approval shall constitute consent of the Shareholders and the Trust for purposes of the Investment Advisers Act. Such consent of the Board may be provided by the vote of a majority of Trustees (including a majority of Independent Trustees) or, in the case of clause (i) in the prior sentence, by an independent reviewer who has been engaged by the Board to review and approve principal transactions under Section 206(3) of the Investment Advisers Act. Each Shareholder agrees that, with respect to any Board consent sought by the Adviser or the Sponsor relating to this Declaration of Trust or the arrangements contemplated hereby, such consent shall be binding upon the Trust and each Shareholder. Each Shareholder further agrees that any such consent alternatively may be granted by consent of the Board and Shareholders entitled to cast a majority of the votes entitled to be cast on the matter. Notwithstanding anything to the contrary in this Declaration of Trust, if (a) the Board waives any conflict of interest or duty of the Adviser or (b) the Adviser acts in a manner, or pursuant to the standards and procedures, consented to by the Board with respect to a conflict of interest, then, in each case, the Adviser and its Affiliates shall not be in breach of any such duty or this Declaration of Trust and shall not have any liability to the Trust or the Shareholders for such actions taken in good faith by them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For purposes of obtaining any required approval or consent under the Investment Advisers Act with respect to a transaction that would result in any "assignment" (within the meaning of the Investment Advisers Act) with respect to the Adviser or any other investment advisory affiliate of the Adviser, the Sponsor may request such approval or consent and require a response within a specified reasonable time period (which shall not be less than 45 days), and failure by a Shareholder to respond within such time period shall be deemed to constitute such Shareholder's approval or consent.

**ARTICLE VII**

**SHARES OF BENEFICIAL INTEREST**

Section 7.1 <u>Authorized Shares</u>. The beneficial interest in the Trust shall be divided into Shares. The Trust has authority to issue an unlimited number of Common Shares, an unlimited number of which are classified as Class S Common Shares, an unlimited number of which are classified as Class T Common Shares, an unlimited number of which are classified as Class D Common Shares, an unlimited number of which are classified as Class I Common Shares, an unlimited number of which are classified as Class J Common Shares, an unlimited number of which are classified as Class J-2 Common Shares and an unlimited number of which are classified as Class E Common Shares, and an unlimited number of Preferred Shares. Subject to the provisions of <u>Article VIII</u> and the terms of any class or series of Shares at the time outstanding, the Board may classify and reclassify any unissued Shares of any class or series, from time to time, into one or more classes or series of Shares, as provided in <u>Section 7.4</u>. If Shares of one class or series are classified or reclassified into Shares of another class or series pursuant to this <u>Article VII</u>, then, except to the extent that the Trust is authorized to issue an unlimited number of Shares of any such class or series, the number of authorized Shares of the former class or series shall be automatically decreased and the number of authorized Shares of the latter class or series shall be automatically increased, in each case by the number of Shares so classified or reclassified.

Section 7.2 <u>Authorization by Board of Share Issuance and other Securities</u>. The Board may authorize or cause the Trust to issue from time to time Shares of any class or series, whether now or hereafter authorized, or securities or rights convertible into Shares of any class or series, whether now or hereafter authorized, for such consideration, whether in cash, property, past or future services, obligation for future payment or otherwise, or without consideration (including in connection with a Share split or distribution of Shares), determined by the Board, subject to such restrictions or limitations, if any, as may be set forth in the Certificate or this Declaration of Trust. When Shares are issued by or at the direction of the Board upon receipt of the consideration therefor (or without consideration if so determined by the Board), such Shares shall be validly issued, fully-paid and nonassessable. The Board may authorize the issuance from time to time of other securities of the Trust for such consideration (whether in cash, property, past or future services, obligation for future payment or otherwise) as the Board may deem advisable in its sole discretion.

Section 7.3. <u>Common Shares</u>.

Section 7.3.1 <u>General</u>. Each Class S Common Share, Class T Common Share, Class D Common Share, Class I Common Share, Class J Common Share, Class J-2 Common Share and Class E Common Share shall have the same preferences, conversion and other rights, voting powers, restrictions, limitations as to dividends and other distributions, qualifications and terms and conditions of redemption, except as provided in the Certificate, this Declaration of Trust, the Bylaws or any multiple class plan or program adopted by the Trust from time to time.

Section 7.3.2 <u>Conversion of Common Shares</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At the Board's sole discretion, upon a determination by the Trust's dealer manager, transfer agent or other agent selected by the Board that the total Upfront Sales Loads and ongoing servicing fees paid with respect to such Shares in a Shareholder's account would exceed a limit agreed upon between such dealer manager, transfer agent or other agent, on the one hand, and an applicable participating broker-dealer, on the other hand, each applicable Class S Common Share, Class T Common Share, Class D Common Share, Class J Common Share and Class J-2 Common Share held in a Shareholder's account may automatically and without any action on the part of such Shareholder convert into a number of Class I Common Shares of any class with an equivalent NAV as of the date of conversion as such Class S Common Shares, Class T Common Shares, Class D Common Shares, Class J Common Shares or Class J-2 Common Shares. The Board shall have the power, in its sole discretion, to convert Class S Common Shares, Class T Common Shares, Class D Common Shares, Class J Common Shares or Class J-2 Common Shares into a number of Class I Common Shares with an equivalent NAV as of the date of such conversion, if the Board determines such Shares should be so converted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Class S Common Share, Class T Common Share, Class D Common Share, Class J Common Shares and Class J-2 Common Share held in a Shareholder's account will automatically and without any action on the part of such Shareholder convert into a number of the applicable Class I Common Shares (including any fractional Shares) with an equivalent NAV as of the date of conversion as such converting share on the earliest of (i) a Listing of Class I Common Shares or (ii) the Trust's merger or consolidation with or into another entity or the sale or other disposition of all or substantially all Trust Property, except, in the case of clause (ii), any such transaction taken in connection with an internal restructuring transaction (including the conversion of the Trust into another type of legal entity), and except in connection with a Conversion Event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon the termination of employment or service for any reason or no reason of any employee, officer, manager, trustee, agent or director of the Sponsor or its Affiliates that holds or has an eligible family member that holds Class E Common Shares, the Board shall, in its discretion, have the ability to determine that all or a portion of the Class E Common Shares held by such employee, officer, director or eligible family member should be converted into shares of a different class. If the Board determines that any Class E Common Shares should be so converted, then such Class E Common Shares shall automatically and without any action on the part of such employee, officer, manager, trustee, agent, director or eligible family member be converted into a number of shares of a class determined by the Board (including any fractional Shares) with an equivalent NAV as of the date of conversion as such Class E Common Shares. This <u>Section 7.3.2(c)</u> shall not apply to senior members of management who have moved to emeritus status.

Section 7.3.3 <u>Rights Upon Liquidation</u>. In the event of any voluntary or involuntary liquidation, dissolution or winding up, or any distribution of the assets of the Trust, the aggregate assets of the Trust available for distribution to holders of the Common Shares shall be determined in accordance with applicable law. Immediately before any liquidation, dissolution winding up, or any distribution of the assets of the Trust pursuant to a plan of liquidation, dissolution or winding up, each Class S Common Share, Class T Common Share, Class D Common Share, Class J Common Share, Class J-2 Common Share and Class E Common Share will automatically convert into a number of Class I Common Shares of any class (including any fractional shares) with an equivalent NAV as of the date of conversion as such converting share. Following such conversion, the aggregate assets of the Trust available for distribution to holders of the Common Shares, or the proceeds therefrom, shall be distributed to each holder of Class I Common Shares ratably with each other holder of Class I Common Shares, in such proportion as the number of outstanding Class I Common Shares held by such Shareholder bears to the total number of outstanding Class I Common Shares.

Section 7.4 <u>Classes and Series of Shares</u>. To classify or reclassify unissued Shares of any class or series, the Board shall, without any action by the Shareholders, amend or supplement this Declaration of Trust, including any exhibit or schedule thereto, to: (a) designate that class or series to distinguish it from all other classes or series of Shares; (b) specify the number of Shares to be included in the class or series (or that the number shall be unlimited); and (c) set, subject to the provisions of <u>Article VIII</u> and subject to the express terms of any class or series of Shares outstanding at the time, the preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications and terms and conditions of redemption for each class or series. Any of the terms of any class or series of Shares may be made dependent upon facts ascertainable outside this Declaration of Trust (including the occurrence of any event, including a determination or action by the Trust or any other person or body) and may vary among holders thereof, *provided* that the manner in which such facts or variations shall operate upon the terms of such class or series of Shares is clearly and expressly set forth in the amendment or supplement to this Declaration of Trust establishing such class or series of Shares.

Section 7.5 <u>Voting Rights</u>. Except as may otherwise be specified in the terms of any class or series of Shares or as provided herein, each Share shall entitle the holder thereof to one vote on each matter upon which holders of Shares are entitled to vote. Except to the extent that the Trust directly or indirectly owns Shares in a fiduciary capacity, neither the Trust nor any entity of which the Trust is entitled to exercise a majority of the outstanding voting power may vote on any matter, and Shares held by the Trust or any such entity shall not be counted in determining the total number of votes entitled to be cast on any matter or at any time. Subject to the terms of any class or series of Shares then outstanding limiting or expanding the voting rights of such Shares, Shareholders shall be entitled to vote only on the following matters:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the removal of a Trustee for "cause" and the election of a successor Trustee as provided in <u>Article VI</u>; *provided*, that if the Trustee so removed was designated by the Adviser pursuant to <u>Section 6.3</u>, then the Adviser shall have the exclusive right to designate the successor Trustee for election to the Board to replace the removed Trustee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the event that there are no Trustees, the election of Trustees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the amendment of this Declaration of Trust, to the extent provided in <u>Section 10.3</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the merger, consolidation or conversion of the Trust or the transfer of all or substantially all of its assets, to the extent provided in <u>Section 11.1</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) such other matters that the Board has submitted to the Shareholders for approval or ratification.

Except with respect to the foregoing matters, no action taken by the Shareholders shall in any way bind the Trust or the Board. Unless a different proportion is specified in the Certificate, this Declaration of Trust or the Bylaws (and notwithstanding any different proportion of votes that may be specified in the Act to approve any matter), the affirmative vote of a plurality of the total votes cast in the election of a Trustee shall be sufficient to elect any Trustee, and the affirmative vote of a majority of the votes cast at a meeting of Shareholders duly called and at which a quorum is present shall be sufficient to approve any other matter that may properly come before the Shareholders at such meeting. Subject to the provisions of any class or series of Shares hereafter authorized and then outstanding, on any matter submitted to a vote of Shareholders of the Trust, all Shares then entitled to vote shall, except as otherwise provided in this Declaration of Trust, be voted in the aggregate as a single class without regard to class or series of Shares, except that if the Board has determined that the matter affects only the interests of one or more series or classes of Shares, only Shareholders of such series or classes shall be entitled to vote thereon. There shall be no requirement to hold an annual meeting of the Shareholders in any year.

Section 7.6 <u>Dividends and Distributions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Board may from time to time authorize or cause the Trust to pay such dividends or other distributions to the Shareholders of any or all classes or series of Shares, in cash or other assets of the Trust or in securities of the Trust or from any other source as the Board shall determine, and the amount of such dividends or other distributions may vary between the classes or series of Shares. The Board shall endeavor to cause the Trust to declare and pay such dividends and other distributions as shall be necessary for the Trust to qualify under the Code as a REIT and to avoid the imposition of any U.S. federal income or excise tax; however, Shareholders shall have no right to any dividend or other distribution unless and until authorized by the Board and declared by the Trust. Before payment of any dividends or other distributions, there may be set aside out of any funds of the Trust available for dividends or other distributions such amounts as the Board may from time-to-time reserve for any Trust purpose, and the Board may modify or abolish any such reserve. Each dividend or other distribution pursuant to this <u>Section 7.6</u> to the Shareholders of a particular class or series of Shares shall be made ratably according to the number of Shares of such class or series held by each Shareholder on the applicable record date thereof, *provided* that no dividend or other distribution need be made on Shares purchased pursuant to orders received, or for which payment is made, after such time or times as the Trustees may determine. Shareholders shall have no right to any dividend or other distribution unless and until authorized by the Board and declared by the Trust, and then only at the time and in the amount and form authorized by the Board. Any action by the Board to cause the Trust to declare or pay any dividend or other distribution shall be conclusive evidence of the authorization by the Board of such distribution. The exercise of the powers and rights of the Board pursuant to this <u>Section 7.6</u> shall be subject to the terms of any class or series of Shares at the time outstanding. The receipt by any Person in whose name any Shares are registered on the records of the Trust or by his, her or its duly authorized agent shall be a sufficient discharge for all dividends or other distributions payable or deliverable in respect of such Shares and from all liability to see to the application thereof. Other than distributions pursuant to a program or programs by which the Trust voluntarily repurchases Shares from its Shareholders or as otherwise set forth in this Declaration of Trust, each Shareholder of a class or series of Shares shall be treated the same with respect to distributions as every other Shareholder of that class or series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) At all times that the Trust is not "publicly offered" within the meaning of Section 562(c)(2) of the Code (as determined by the Board), all of the Common Shares shall be entitled to receive a pro rata portion of any gross distribution in respect of any Common Shares, except that Upfront Sales Load and ongoing servicing fees payable to the Trust's dealer manager or any other financial intermediary related solely to a particular class shall be borne by that class and shall be appropriately reflected (in a manner determined by the Board) in the NAV, dividends, distribution and liquidation rights of the Shares of that class. Following the time that, and for so long as, the Trust is "publicly offered" within the meaning of Section 562(c)(2) of the Code (as determined by the Board), distributions shall be permitted in such other relative amounts as are permitted by this Declaration of Trust and authorized by the Board. The distributions to the Shareholders, including any differences in distributions between different classes or series, are intended to be made in a manner that does not cause any distribution by the Trust to be a "preferential dividend" within the meaning of Section 562(c)(1) of the Code (and, in furtherance of the foregoing, it is intended that, for so long as the Trust is not "publicly offered" within the meaning of Section 562(c)(2) of the Code, all distributions to the Common Shares shall be made pro rata in accordance with the number of Common Shares held except for differences due solely to Upfront Sales Load or ongoing servicing fees actually paid to the Trust's dealer manager or any other financial intermediary with respect to each class to the extent such differences would be permitted in accordance with the principles of Revenue Procedure 99-40), and this Declaration of Trust shall be interpreted in a manner consistent therewith. In the event that the Board determines that any amendment to this Declaration of Trust or other action to adjust the distribution rights set forth in this Declaration of Trust is required in order to ensure that distributions made by the Trust are not "preferential dividends" (including, if applicable, with respect to any Preferred Shares authorized and issued after the date hereof), the Board may make such amendment or take such other action without Shareholder approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding any other provision of this Declaration of Trust, the Board may withhold from any distributions to be made to any Shareholder any amounts which are required to be withheld by the Trust pursuant to any federal, state or local tax law (as determined by the Board). For purposes of this Declaration of Trust, any amount withheld from a distribution to a Shareholder shall be treated as if distributed to such Shareholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Whenever this Declaration of Trust requires a sum sufficient for the payment of distributions to be "set apart" or "set aside," such obligation may be satisfied, without limitation as to any other means to accomplish such purpose, by a direction by the Board (or any Person to whom the authority to make distributions is delegated by the Board) by resolution or otherwise that funds of the Trust shall be irrevocably "set apart" or "set aside" (or words of similar import) for the payment thereof (such funds, the "<u>Designated Funds</u>"). At such direction, the Designated Funds shall be (and shall in any event be deemed to be) segregated from the assets of the Trust and shall be used for the purpose of paying the distribution for which such funds have been set apart or set aside, if and when such distribution becomes payable in accordance with the terms of this Declaration of Trust.

Section 7.7 <u>Consent Dividends</u>. If the Board determines that consent dividends (within the meaning of Section 565 of the Code) with respect to a taxable year are necessary or appropriate to ensure or maintain the qualification of the Trust as a REIT for U.S. federal income tax purposes; to avoid the imposition of any U.S. federal income or excise tax; or for any other reason, the Board may require the holders of Common Shares and any other Persons to take any and all actions necessary or appropriate under the Code, any regulations promulgated thereunder, any court decision or any administrative interpretations of the U.S. Department of Treasury (including any U.S. Internal Revenue Service forms or other forms) for the Trust to declare consent dividends sufficient to maintain REIT qualification and avoid U.S. federal income or excise tax or otherwise with respect to each such taxable year.

Section 7.8 <u>General Nature of Shares</u>. All Shares shall be personal property entitling the Shareholder only to those rights provided in the Certificate, this Declaration of Trust and the Bylaws. The rights of all Shareholders and the terms of all Shares are subject to the provisions of the Certificate, this Declaration of Trust and the Bylaws. The Shareholders shall have no interest in the property of the Trust and shall have no right to compel any partition, division, dividend or distribution of the Trust or of the property of the Trust. The death of a Shareholder shall not terminate the Trust. The Trust is entitled to treat as Shareholders only those persons in whose names Shares are registered as holders of Shares on the beneficial interest ledger of the Trust. Notwithstanding any other provision in this Declaration of Trust, no determination shall be made by the Board nor shall any transaction be entered into by the Trust that would cause any Shares or other beneficial interest in the Trust not to constitute "transferable shares" or "transferable certificates of beneficial interest" under Section 856(a)(2) of the Code. Each Share, whether or not evidenced by a certificate, shall constitute a "security" within the meaning of, and governed by, (a) Article 8 of the Maryland Uniform Commercial Code (including Section 8-102(a)(l5) thereof) as in effect and as it may be amended or superseded from time to time, and (b) Article 8 of the Uniform Commercial Code of any other applicable jurisdiction that now or hereafter substantially includes the 1994 revisions to Article 8 thereof as adopted by the American Law Institute and the National Conference of Commissioners on Uniform State Laws and approved by the American Bar Association on February 14, 1995 or any successor uniform act or law in effect in the State of Maryland from time to time.

Section 7.9 <u>Fractional Shares</u>. The Trust may, without the consent or approval of any Shareholder, issue fractional Shares, eliminate a fraction of a Share by rounding up or down to a full Share, arrange for the disposition of a fraction of a Share by the person entitled to it, or pay cash for the fair value of a fraction of a Share.

Section 7.10 <u>Divisions and Combinations of Shares</u>. Subject to an express provision to the contrary in the terms of any class or series of Shares hereafter authorized, the Board shall have the power to divide or combine the outstanding Shares of any class or series of beneficial interest, without a vote of Shareholders. The Board may amend this Declaration of Trust, without any action by the Shareholders, to effect any such division or combination of outstanding Shares.

Section 7.11 <u>No Issuance of Share Certificates</u>. Unless otherwise provided by the Board, the Trust shall not issue share certificates. A Shareholder's investment shall be recorded on the books of the Trust. To transfer his, her or its Shares, a Shareholder shall submit an executed form to the Trust, which form shall be provided by the Trust upon request. Such transfer will also be recorded on the books of the Trust. Upon issuance or transfer of Shares, the Trust will provide the Shareholder with information concerning his, her or its rights with regard to such Shares, as required by this Declaration of Trust, the Bylaws or applicable law.

Section 7.12 <u>Repurchase of Shares</u>. The Board may establish, from time to time, a program or programs by which the Trust voluntarily offers to repurchase Shares from its Shareholders.

Section 7.13 <u>Distribution Reinvestment Plans</u>. The Board may establish, from time to time, a distribution reinvestment plan or plans.

Section 7.14 <u>Small Accounts</u>. The Board may establish, from time to time, one or more minimum account sizes for Shareholder accounts, which may differ within and among any classes or series of Shares, and may, subject to <u>Section 7.6(b)</u>, impose account fees on (which may be satisfied by involuntarily redeeming the requisite number of Shares in any such account in the amount of such fee), and/or require the involuntary redemption of Shares held in, those accounts the NAV of which for any reason falls below such established minimum account sizes, or may authorize the Trust to convert any such Shares in such account to Shares of another class or series, or take any other such action with respect to minimum account sizes as may be deemed necessary or appropriate by the Board, in each case upon such terms as shall be established by the Board.

**ARTICLE VIII**

**RESTRICTIONS ON OWNERSHIP AND TRANSFER OF SHARES**

Section 8.1 <u>Shares</u>.

Section 8.1.1. <u>Ownership Limitations</u>. During the period commencing on the Initial Date and prior to the Restriction Termination Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Basic Restrictions</u>. Except as provided in <u>Section 8.1.7</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) No Person, other than an Excepted Holder, shall Beneficially Own or Constructively Own Shares in excess of the Aggregate Share Ownership Limit, (B) no Person, other than an Excepted Holder, shall Beneficially Own or Constructively Own Common Shares in excess of the Common Share Ownership Limit and (C) no Excepted Holder shall Beneficially Own or Constructively Own Shares in excess of the Excepted Holder Limit applicable to such Excepted Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) No Person shall Beneficially Own or Constructively Own Shares to the extent that such Beneficial Ownership or Constructive Ownership of Shares would result in the Trust being "closely held" within the meaning of Section 856(h) of the Code (without regard to whether the ownership interest is held during the last half of a taxable year), or otherwise failing to qualify as a REIT (including, but not limited to, Beneficial Ownership or Constructive Ownership that would result in the Trust owning (actually or Constructively) an interest in a tenant that is described in Section 856(d)(2)(B) of the Code if the income derived by the Trust from such tenant would cause the Trust to fail to satisfy any of the gross income requirements of Section 856(c) of the Code).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any Transfer of Shares that, if effective, would result in Shares being beneficially owned by fewer than 100 Persons (determined under the principles of Section 856(a)(5) of the Code) shall be void *ab initio*, and the intended transferee shall acquire no rights in such Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Transfer in Trust</u>. If any Transfer of Shares occurs which, if effective, would result in any Person Beneficially Owning or Constructively Owning Shares in violation of <u>Section 8.1.1(a)(i)</u> or <u>(ii)</u>, then that number of Shares the Beneficial Ownership or Constructive Ownership of which otherwise would cause such Person to violate <u>Section 8.1.1(a)(i)</u> or <u>(ii)</u> (rounded up to the nearest whole Share) shall be automatically transferred to a Charitable Trust for the exclusive benefit of a Charitable Beneficiary, as described in <u>Section 8.2</u>, effective as of the close of business on the Business Day prior to the date of such Transfer, and such Person shall acquire no rights in such Shares. If the transfer to the Charitable Trust described in the previous sentence of this <u>Section 8.1.1(b)</u> would not be effective for any reason to prevent the violation of <u>Section 8.1.1(a)(i)</u> or (ii), or would not prevent the Trust from failing to qualify as a REIT, then the Transfer of that number of Shares that otherwise would cause any Person to violate <u>Section 8.1.1(a)(i)</u> or <u>(ii)</u> shall be void *ab initio,* and the intended transferee shall acquire no rights in such Shares.

To the extent that, upon a Transfer of Shares pursuant to this <u>Section 8.1.1(b)</u>, a violation of any provision of this <u>Article VIII</u> would nonetheless be continuing (for example where the ownership of Shares by a single Charitable Trust would violate the 100 shareholder requirement applicable to REITs), then Shares shall be transferred to that number of Charitable Trusts, each having a distinct Charitable Trustee and a Charitable Beneficiary or Charitable Beneficiaries that are distinct from those of each other Charitable Trust, such that there is no violation of any provision of this <u>Article VIII</u>.

Section 8.1.2. <u>Remedies for Breach</u>. If the Board or its designee (including any duly authorized committee of the Board) shall at any time determine that a Transfer or other event has taken place that results in a violation of <u>Section 8.1.1</u> or that a Person intends to acquire or has attempted to acquire Beneficial Ownership or Constructive Ownership of any Shares that would result in a violation of <u>Section 8.1.1</u> (whether or not such violation is intended), the Board or its designee shall take or cause to be taken such action as it deems necessary or advisable to refuse to give effect to or to prevent such Transfer or other event, including, without limitation, causing the Trust to redeem Shares, refusing to give effect to such Transfer on the books of the Trust or instituting proceedings to enjoin such Transfer or other event; *provided, however,* that any Transfers or attempted Transfers or other events in violation of <u>Section 8.1.1</u> shall automatically result in the transfer to the Charitable Trust described above, or, where applicable, such Transfer (or other event) shall be void *ab initio* as provided above irrespective of any action (or non-action) by the Board or its designee.

Section 8.1.3. <u>Notice of Restricted Transfer</u>. Any Person who acquires or attempts or intends to acquire Beneficial Ownership or Constructive Ownership of Shares that will or may violate <u>Section 8.1.1(a)</u>, or any Person who would have owned Shares that resulted in a transfer to the Charitable Trust pursuant to the provisions of <u>Section 8.1.1(b)</u>, shall immediately give written notice to the Trust of such event or, in the case of such a proposed or attempted transaction, give at least 15 days prior written notice, and shall provide to the Trust such other information as the Trust may request to determine the effect, if any, of such Transfer on the Trust's qualification as a REIT.

Section 8.1.4. <u>Owners Required To Provide Information</u>. From the Initial Date and prior to the Restriction Termination Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) every owner of more than ½ of 1% (or such other percentage, between ½ of 1% and 5%, as provided in the Treasury Regulations or as otherwise required by the Board) of the outstanding Shares, within 30 days after the end of each taxable year, shall give written notice to the Trust stating the name and address of such owner, the number of Shares Beneficially Owned and a description of the manner in which such Shares are held; *provided*, that a Shareholder of record who holds outstanding Shares as nominee for an Actual Owner, shall give written notice to the Trust stating the name and address of such Actual Owner and the number of Shares of such Actual Owner with respect to which the Shareholder of record is the nominee. Each such owner shall promptly provide to the Trust in writing such additional information as the Trust may request to determine the effect, if any, of such Beneficial Ownership on the Trust's qualification as a REIT and to ensure compliance with this <u>Article VIII</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) each Person who is a Beneficial Owner or Constructive Owner of Shares and each Person (including the Shareholder of record) who is holding Shares for a Beneficial Owner or Constructive Owner shall promptly provide to the Trust in writing such information as the Trust may request to determine the Trust's qualification as a REIT and to comply with requirements of any taxing authority or governmental authority or to determine such compliance.

Section 8.1.5 <u>Remedies Not Limited</u>. Subject to <u>Section 6.1</u>, nothing contained in this <u>Section 8.1</u> shall limit the authority of the Board to take such other action as it deems necessary or advisable to protect the Trust in preserving the Trust's qualification as a REIT.

Section 8.1.6 <u>Ambiguity</u>. In the case of an ambiguity in the application of any of the provisions of this <u>Section 8.1</u>, <u>Section 8.2</u> or any definition contained in <u>Article V</u>, the Board shall have the power to determine the application of the provisions of this <u>Section 8.1</u> or <u>Section 8.2</u> with respect to any situation based on the facts known to it. In the event Section 8.1 or <u>Section 8.2</u> requires an action by the Board and this Declaration of Trust fails to provide specific guidance with respect to such action, the Board shall have the power to determine the action to be taken so long as such action is not contrary to the provisions of <u>Section 8.1</u> or <u>Section 8.2</u>. Absent a decision to the contrary by the Board (which the Board makes in its sole and absolute discretion), if a Person would have (but for the remedies set forth in <u>Section 8.1.2</u>) acquired Beneficial Ownership or Constructive Ownership of Shares in violation of <u>Section 8.1.1</u>, such remedies (as applicable) shall apply first to the Shares which, but for such remedies, would have been Beneficially Owned or Constructively Owned (but not actually owned) by such Person, pro rata among the Persons who actually own such Shares based upon the relative number of Shares held by each such Person.

Section 8.1.7 <u>Exceptions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to <u>Section 8.1.1(a)(ii)</u>, the Board may exempt (prospectively or retroactively) a Person from the Aggregate Share Ownership Limit or the Common Share Ownership Limit, or both, and may establish or increase an Excepted Holder Limit for such Person if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Board obtains such representations and undertakings from such Person as the Board determines are reasonably necessary for the Board to ascertain that no individual's Beneficial Ownership or Constructive Ownership of such Shares will violate <u>Section 8.1.1(a)(ii)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Person does not and represents that it will not own, actually or Constructively, an interest in a tenant of the Trust (or a tenant of any entity owned or controlled by the Trust) that would cause the Trust to own, actually or Constructively, more than a 9.8% interest (as set forth in Section 856(d)(2)(B) of the Code) in such tenant and the Board obtains representations and undertakings from such Person as the Board determines are reasonably necessary to ascertain this fact (for this purpose, a tenant from whom the Trust (or an entity owned or controlled by the Trust) derives (and is expected to continue to derive) a sufficiently small amount of revenue such that, in the judgment of the Board, rent from such tenant would not adversely affect the Trust's ability to qualify as a REIT, shall not be treated as a tenant of the Trust); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) such Person agrees that any violation or attempted violation of such representations or undertakings (or other action which is contrary to the restrictions contained in <u>Sections 8.1.1</u> through <u>8.1.6</u>) will result in the automatic termination of the exemption granted to such Person pursuant to this <u>Section 8.1.7</u> and Shares being automatically transferred to a Charitable Trust in accordance with <u>Sections 8.1.1(b)</u> and <u>8.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Prior to granting any exception or creating or increasing an Excepted Holder Limit pursuant to <u>Section 8.1.7(a)</u>, the Board may require a ruling from the Internal Revenue Service, or an opinion of counsel, in either case in form and substance satisfactory to the Board in its sole discretion, as it may deem necessary or advisable to determine or ensure the Trust's qualification as a REIT. Notwithstanding the receipt of any ruling or opinion, the Board may impose such conditions or restrictions as it deems appropriate in connection with granting such exception.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject to <u>Section 8.1.1(a)(ii)</u>, an underwriter, placement agent or an initial purchaser which participates in a public offering or a private placement of Shares (or securities convertible into or exchangeable for Shares) may Beneficially Own or Constructively Own Shares (or securities convertible into or exchangeable for Shares) in excess of the Aggregate Share Ownership Limit or the Common Share Ownership Limit, or both such limits, but only to the extent necessary to facilitate such public offering or private placement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Board may only revoke an exemption previously granted to an Excepted Holder or reduce the Excepted Holder Limit for an Excepted Holder: (i) with the written consent of such Excepted Holder at any time, (ii) unless the terms and conditions of the agreements and undertakings entered into with such Excepted Holder in connection with the establishment of the Excepted Holder Limit for that Excepted Holder provide otherwise, at any time after the Excepted Holder no longer Beneficially Owns or Constructively Owns Shares in excess of the Aggregate Share Ownership Limit or the Common Share Ownership Limit or (iii) pursuant to the terms and conditions of the agreements and undertakings entered into with such Excepted Holder in connection with the establishment of the Excepted Holder Limit for that Excepted Holder. No Excepted Holder Limit shall be reduced to a percentage that is less than the Aggregate Share Ownership Limit.

Section 8.1.8 <u>Increase or Decrease in Aggregate Share Ownership Limit or the Common Share Ownership Limit</u>. The Board may from time to time increase or decrease the Aggregate Share Ownership Limit and/or the Common Share Ownership Limit for one or more Persons and increase or decrease the Aggregate Share Ownership Limit and/or the Common Share Ownership Limit for all other Persons. No decreased Aggregate Share Ownership Limit or Common Share Ownership Limit will be effective for any Person whose percentage of ownership of Shares is in excess of such decreased Aggregate Share Ownership Limit or Common Share Ownership Limit, as applicable, until such time as such Person's percentage of ownership of Shares equals or falls below the decreased Aggregate Share Ownership Limit or Common Share Ownership Limit, as applicable; *provided, however*, that any further acquisition of Shares by any such Person (other than a Person for whom an exemption has been granted pursuant to <u>Section 8.1.7(a)</u> or an Excepted Holder) in excess of the Shares owned by such person on the date the decreased Aggregate Share Ownership Limit or Common Share Ownership Limit became effective will be in violation of the Aggregate Share Ownership Limit or Common Share Ownership Limit. No increase of the Aggregate Share Ownership Limit or Common Share Ownership Limit may be approved if the new Aggregate Share Ownership Limit or Common Share Ownership Limit would allow five or fewer Persons to Beneficially Own, in the aggregate more than 49.9% in value of the outstanding Shares or otherwise cause the Trust to fail to qualify as a REIT. Prior to increasing or decreasing the Aggregate Share Ownership Limit or Common Share Ownership Limit pursuant to this <u>Section 8.1.8</u>, the Board may require such opinions of counsel, affidavits, undertakings or agreements, in form and substance satisfactory to the Board, as it may deem necessary or advisable to determine or ensure the Trust's qualification as a REIT.

Section 8.1.9 <u>Legend</u>. Each certificate or notice in lieu of any certificate, if any, for Shares shall bear a legend summarizing the restrictions on ownership and transfer contained herein. Instead of a legend, the certificate, if any, may state that the Trust will furnish a full statement about certain restrictions on ownership and transferability to a Shareholder on request and without charge.

Section 8.2. <u>Transfer of Shares in Trust</u>.

Section 8.2.1. <u>Ownership in Trust</u>. Upon any purported Transfer or other event described in <u>Section 8.1.1</u> that would result in a Transfer of Shares to a Charitable Trust, such Shares shall be deemed to have been transferred to the Charitable Trustee as trustee of a Charitable Trust for the exclusive benefit of one or more Charitable Beneficiaries. Such transfer to the Charitable Trustee shall be deemed to be effective as of the close of business on the Business Day prior to the purported Transfer or other event that results in the transfer to the Charitable Trust pursuant to <u>Section 8.1.1(b)</u>. The Charitable Trustee shall be appointed by the Trust and shall be a Person that is not an Affiliate of the Trust or an Affiliate of any Prohibited Owner. Each Charitable Beneficiary shall be designated by the Trust as provided in <u>Section 8.2.7</u>.

Section 8.2.2 <u>Status of Shares Held by the Charitable Trustee</u>. Shares held by the Charitable Trustee shall be issued and outstanding Shares. The Prohibited Owner shall have no rights in the Shares held by the Charitable Trustee. The Prohibited Owner shall not benefit economically from ownership of any Shares held in trust by the Charitable Trustee, shall have no rights to dividends or other distributions and shall not possess any rights to vote or other rights attributable to the Shares held in the Charitable Trust. The Prohibited Owner shall have no claim, cause of action, or any other recourse whatsoever against the purported transferor of such Shares.

Section 8.2.3. <u>Dividend and Voting Rights</u>. The Charitable Trustee shall have all voting rights and rights to dividends or other distributions with respect to Shares held in the Charitable Trust, which rights shall be exercised for the exclusive benefit of the Charitable Beneficiary. Any dividend or other distribution paid prior to the discovery by the Trust that Shares have been transferred to the Charitable Trustee shall be paid by the recipient of such dividend or other distribution to the Charitable Trustee upon demand and any dividend or other distribution authorized but unpaid shall be paid when due to the Charitable Trustee. Any dividend or other distribution so paid to the Charitable Trustee shall be held in trust for the Charitable Beneficiary. The Prohibited Owner shall have no voting rights with respect to Shares held in the Charitable Trust and, subject to Maryland law, effective as of the date that Shares have been transferred to the Charitable Trustee, the Charitable Trustee shall have the authority (at the Charitable Trustee's sole discretion) (a) to rescind as void any vote cast by a Prohibited Owner prior to the discovery by the Trust that Shares have been transferred to the Charitable Trustee and (b) to recast such vote in accordance with the desires of the Charitable Trustee acting for the benefit of the Charitable Beneficiary; *provided, however*, that if the Trust has already taken irreversible trust action, then the Charitable Trustee shall not have the authority to rescind and recast such vote. Notwithstanding the provisions of this <u>Article VIII</u>, until the Trust has received notification that Shares have been transferred into a Charitable Trust, the Trust shall be entitled to rely on its Share transfer and other Shareholder records for purposes of preparing lists of Shareholders entitled to vote at meetings, determining the validity and authority of proxies and otherwise conducting votes and determining the other rights of Shareholders.

Section 8.2.4. <u>Rights Upon Dissolution</u>. Upon any voluntary or involuntary liquidation, dissolution or winding up of the Trust, the Charitable Trustee shall be entitled to receive, ratably with each other Shareholder of the class or series of Shares that is held in the Charitable Trust, that portion of any related distribution to the holders of such class or series (determined based upon the ratio that the number of Shares of such class or series of Shares held by the Charitable Trustee bears to the total number of Shares of such class or series of Shares then outstanding). The Charitable Trustee shall distribute any amount received in respect of the Shares held in the Charitable Trust in any liquidation, dissolution or winding up of the Trust, to the Prohibited Owner and the Charitable Beneficiary as provided in this <u>Section 8.2.4</u>. The Prohibited Owner shall receive an amount equal to the lesser of (a) the price paid by the Prohibited Owner for the Shares held in the Charitable Trust or, if the event causing the Shares to be held in the Charitable Trust did not involve a purchase of such Shares (e.g., in the case of a gift, devise or other such transaction), the Market Price of the Shares on the day of the event causing the Shares to be held in the Charitable Trust and (b) the amount of any distribution made upon liquidation, dissolution or winding up that is received by the Charitable Trustee (net of any expenses). The Charitable Trustee shall reduce the amount payable to the Prohibited Owner by the amount of dividends and other distributions which have been paid to the Prohibited Owner and are owed by the Prohibited Owner to the Charitable Trustee pursuant to <u>Section 8.2.3</u>. Any net amounts in excess of the amount payable to the Prohibited Owner and any other amounts received by the Charitable Trustee with respect to such Shares shall be immediately paid to the Charitable Beneficiary.

Section 8.2.5. <u>Sale of Shares by Charitable Trustee</u>. Within 20 days of receiving notice from the Trust that Shares have been transferred to the Charitable Trust, the Charitable Trustee shall sell the Shares held in the Charitable Trust to a Person, designated by the Charitable Trustee, whose ownership of the Shares will not violate the ownership limitations set forth in <u>Section 8.1.1(a)</u>. Upon such sale, the interest of the Charitable Beneficiary in the Shares sold shall terminate and the Charitable Trustee shall distribute the net proceeds of the sale to the Prohibited Owner and to the Charitable Beneficiary as provided in this <u>Section 8.2.5</u>. The Prohibited Owner shall receive the lesser of (a) the price paid by the Prohibited Owner for the Shares or, if the event causing the Shares to be held in the Charitable Trust did not involve a purchase of such Shares at Market Price, the Market Price of the Shares on the day of the event causing the Shares to be held in the Charitable Trust and (b) the price per Share received by the Charitable Trustee (net of any commissions and other expenses) from the sale or other disposition of the Shares held in the Charitable Trust. The Charitable Trustee shall reduce the amount payable to the Prohibited Owner by the amount of dividends and other distributions which have been paid to the Prohibited Owner and are owed by the Prohibited Owner to the Charitable Trustee pursuant to <u>Section 8.2.3</u>. Any net sales proceeds in excess of the amount payable to the Prohibited Owner and any other amounts received by the Charitable Trustee with respect to such Shares shall be immediately paid to the Charitable Beneficiary. If, prior to the discovery by the Trust that Shares have been transferred to the Charitable Trustee, such Shares are sold by a Prohibited Owner, then (a) such Shares shall be deemed to have been sold on behalf of the Charitable Trust and (b) to the extent that the Prohibited Owner received an amount for such Shares that exceeds the amount that such Prohibited Owner was entitled to receive pursuant to this <u>Section 8.2.5</u>, such excess shall be paid to the Charitable Trustee upon demand for payment to the Charitable Beneficiary.

Section 8.2.6. <u>Purchase Right in Shares Transferred to the Charitable Trustee</u>. Shares transferred to the Charitable Trustee shall be deemed to have been offered for sale to the Trust, or its designee, at a price per Share equal to the lesser of (a) the price per Share in the transaction that resulted in such transfer to the Charitable Trust (or, if the event that resulted in the Transfer to the Charitable Trust did not involve a purchase of such Shares at Market Price, the Market Price of such Shares on the day of the event causing the Shares to be held in the Charitable Trust) and (b) the Market Price on the date the Trust, or its designee, accepts such offer. The Trust shall have the right to accept such offer until the Charitable Trustee has sold the Shares held in the Charitable Trust pursuant to <u>Section 8.2.5</u> to the extent consistent with the Trust's qualification as a REIT and taking into account at that time whether the Trust is "publicly offered" within the meaning of Section 562(c)(2) of the Code (as determined by the Board). Upon such a sale to the Trust, the interest of the Charitable Beneficiary in the Shares sold shall terminate and the Charitable Trustee shall distribute the net proceeds of the sale to the Prohibited Owner and to the Charitable Beneficiary as provided in this <u>Section 8.2.5</u>. The Charitable Trustee shall reduce the amount payable to the Prohibited Owner by the amount of dividends and other distributions which have been paid to the Prohibited Owner and are owed by the Prohibited Owner to the Charitable Trustee pursuant to <u>Section 8.2.3</u>. Any net sales proceeds in excess of the amount payable to the Prohibited Owner and any other amounts received by the Charitable Trustee with respect to such Shares shall be immediately paid to the Charitable Beneficiary.

Section 8.2.7 <u>Designation of Charitable Beneficiaries</u>. By written notice to the Charitable Trustee, the Trust shall designate one or more nonprofit organizations to be the Charitable Beneficiary of the interest in the Charitable Trust such that Shares held in the Charitable Trust would not violate the restrictions set forth in <u>Section 8.1.1(a)</u> in the hands of such Charitable Beneficiary. Neither the failure of the Trust to make such designation nor the failure of the Trust to appoint the Charitable Trustee before the automatic transfer provided for in <u>Section 8.1.1</u> shall make such transfer ineffective, *provided* that the Trust thereafter makes such designation and appointment.

Section 8.3 <u>Enforcement</u>. The Trust is authorized specifically to seek equitable relief, including injunctive relief, to enforce the provisions of this <u>Article VIII</u>.

Section 8.4 <u>Non-Waiver</u>. No delay or failure on the part of the Trust or the Board in exercising any right hereunder shall operate as a waiver of any right of the Trust or the Board, as the case may be, except to the extent specifically waived in writing.

Section 8.5 <u>Severability</u>. If any provision of this <u>Article VIII</u> or any application of any such provision is determined to be invalid by any federal or state court having jurisdiction over the issues, the validity of the remaining provisions shall not be affected and other applications of such provisions shall be affected only to the extent necessary to comply with the determination of such court.

**ARTICLE IX**

**LIABILITY OF SHAREHOLDERS, TRUSTEES, OFFICERS,<br> EMPLOYEES AND AGENTS AND TRANSACTIONS<br> BETWEEN SUCH PERSONS AND THE TRUST**

Section 9.1 <u>Limitation of Shareholder Liability</u>. No Shareholder shall be liable for any debt, claim, demand, judgment or obligation of any kind of, against or with respect to the Trust by reason of his, her or it being a Shareholder, nor shall any Shareholder be subject to any personal liability whatsoever, in tort, contract or otherwise, to any Person in connection with the property or affairs of the Trust.

Section 9.2 <u>Limitation of Trustee and Officer Liability</u>. To the maximum extent that Maryland law in effect from time to time permits limitation of the liability of trustees and officers of a statutory trust, no Covered Person shall be liable to the Trust or to any Shareholder for money damages. Neither the amendment nor repeal of this <u>Section 9.2</u>, nor the adoption or amendment of any other provision of this Declaration of Trust inconsistent with this <u>Section 9.2</u>, shall apply to or affect in any respect the applicability of the preceding sentence with respect to any act or failure to act that occurred prior to such amendment, repeal or adoption.

Section 9.3 <u>Indemnification</u>. To the maximum extent permitted by Maryland law in effect from time to time, the Trust shall indemnify any Covered Person (including among the foregoing, for all purposes of this <u>Article IX</u> and without limitation, any individual or entity who, while serving as the Covered Person and, at the request of the Trust, serves or has served any other enterprise in any management or agency capacity) against any claim or liability to which such Covered Person may become subject by reason of such status, except for liability for such Covered Person's gross negligence or intentional misconduct. In addition, the Trust shall, without requiring a preliminary determination of the ultimate entitlement to indemnification, pay or reimburse, in advance of final disposition of a proceeding, reasonable expenses incurred by a present or former Covered Person or Shareholder made a party to or witness in a proceeding by reason such status, *provided* that, in the case of a Covered Person, the Trust shall have received (a) a written affirmation by the Covered Person of the Covered Person's good faith belief that the Covered Person has met the applicable standard of conduct necessary for indemnification by the Trust pursuant to this <u>Section 9.3</u> and (b) a written undertaking by or on behalf of the Covered Person to repay the amount paid or reimbursed by the Trust if it shall ultimately be determined that the applicable standard of conduct was not met. Notwithstanding the foregoing, the Trust shall not be required to indemnify or advance funds to any Person entitled to indemnification hereunder (a) with respect to any action initiated or brought voluntarily by such indemnified Person (and not by way of defense) unless (i) approved or authorized by the Board or (ii) incurred to establish or enforce such Person's right to indemnification hereunder, or (b) in connection with any claim with respect to which such Person is found to be liable to the Trust.

The Trust may, with the approval of the Board, provide or obligate itself to provide such indemnification or payment or reimbursement of expenses to any Person that served a predecessor of the Trust as a Covered Person or any employee or agent of the Trust or any predecessor of the Trust.

Except that no preliminary determination of the ultimate entitlement to indemnification shall be required for the payment or reimbursement of expenses, any indemnification or payment or reimbursement of the expenses permitted by this Declaration of Trust shall be furnished in accordance with the procedures provided for indemnification or advance or reimbursement of expenses, as the case may be, under Section 2-418(f) of the MGCL (or any successor provision thereto) for directors of Maryland corporations.

Neither the amendment nor repeal of this <u>Article IX</u>, nor the adoption or amendment of any other provision of this Declaration of Trust inconsistent with this Article, shall apply to or affect in any respect the applicability of the preceding paragraph with respect to any act or failure to act which occurred prior to such amendment, repeal or adoption. The rights to indemnification and advance of expenses provided by this Declaration of Trust shall vest immediately upon a Person or entity becoming a Covered Person or the acquisition of Shares by a Shareholder.

Section 9.4 <u>Transactions between the Trust and its Trustees, Officers, Employees and Agents</u>. Subject to any express restrictions in the Certificate or this Declaration of Trust or adopted by the Board, the Trust may enter into any contract or transaction of any kind, including, without limitation, for the purchase or sale of property or for any type of services, including those in connection with the offer or sale of securities of the Trust, with any Person, including any Covered Person or employee or agent of the Trust or any Person Affiliated with a Covered Person or employee or agent of the Trust, whether or not any of them has a financial interest in such transaction. The procedures and presumptions set forth in Section 2-419 of the MGCL (or any successor provision thereto) shall be available for and apply to any contract or other transaction between the Trust and any Trustee or between the Trust and any other trust, corporation, firm or other entity in which a Trustee is a trustee or director or has a material financial interest.

Section 9.5 <u>Duties of Trustees, Officers and Agents</u>. Any Covered Person may have business interests and engage in business activities similar, in addition to or in competition with those of or relating to the Trust. Each Trustee shall have the duties set forth in Section 12-402(b) of the Act. No Trustee shall have any duties, including fiduciary duties under the common law of trusts, or be subject to any duties or other standard of conduct, other than as set forth in the preceding sentence. Any action or failure to act by the Trustee shall be presumed to be in accordance with the duties described in this <u>Section 9.5</u>, and any Person alleging the contrary shall bear the burden of proof that the action or failure to act was not consistent with such duties. Each Trustee or officer shall, in the performance of his, her or its duties with respect to the Trust, be entitled to rely on any information, opinion, report or statement, including any financial statement or other financial data, prepared or presented by an officer or employee of the Trust whom the Trustee or officer reasonably believes to be reliable and competent in the matters presented or by a lawyer, certified public accountant or other Person as to a matter which the Trustee or officer reasonably believes to be within the Person's professional or expert competence.

Section 9.6 <u>Corporate Opportunities</u>. If any Affiliated Person of the Trust or the Sponsor or any of its Affiliates acquires knowledge of a potential business opportunity, the Trust renounces, on its behalf and on behalf of its subsidiaries, any potential interest or expectation in, or right to be offered or to participate in, such business opportunity to the maximum extent permitted from time to time by Maryland law. Accordingly, to the maximum extent permitted from time to time by Maryland law (a) no Affiliated Person is required to present, communicate or offer any business opportunity to the Trust or any of its subsidiaries and (b) the Affiliated Person, on his, her or its own behalf or on behalf of the Sponsor or any of its Affiliates, shall have the right to hold and exploit any business opportunity, or to direct, recommend, offer, sell, assign or otherwise transfer such business opportunity to any person or entity other than the Trust and its subsidiaries.

The taking by an Affiliated Person for himself or herself, or the offering or other transfer to another person or entity, of any potential business opportunity whether pursuant to this Declaration of Trust or otherwise, shall not constitute or be construed and interpreted as an act or omission of gross negligence or intentional misconduct.

**ARTICLE X**

**AMENDMENT**

Section 10.1 <u>General</u>. The Trust reserves the right from time to time to make any amendment to the Certificate or this Declaration of Trust, including any amendment altering the terms or contract rights, as expressly set forth in this Declaration of Trust, of any outstanding Shares. The Certificate or this Declaration of Trust may be amended only as provided in this <u>Article X</u>. The merger or consolidation of the Trust with another Person, the conversion of the Trust, the dissolution of the Trust or any other transaction between the Trust and another Person in which the Trust does not survive as a separate entity shall not be considered an amendment to this Declaration of Trust for purposes of this <u>Article X</u>.

Section 10.2 <u>By Board</u>. Except as may otherwise be expressly provided in the Certificate or herein, the Certificate and this Declaration of Trust may be amended only by the Board, without any action or approval by the Shareholders. including, but not limited to, and without limiting the power and authority of the Board to amend the Certificate and this Declaration of Trust for any other reason, amendments for clarity, that cure any ambiguity, or cure, correct or supplement any defective provision contained in the Certificate or herein, or that add or change any other provisions with respect to matters or questions arising under the Certificate or this Declaration of Trust as the Board may deem necessary or desirable and that the Board determines does not materially and adversely affect the contract rights of outstanding Shares.

Section 10.3 <u>By Shareholders</u>. Amendments to this Declaration of Trust that the Board determines would, viewed as a whole, materially and adversely affect the contract rights of outstanding Shares, but excluding amendments of the type specified in (a) this Declaration of Trust as expressly not requiring any action or approval by the Shareholders or (b) Section 2-605 of the MGCL (any and all of which shall not require approval of any Shareholder), must be approved by the Board and Shareholders entitled to cast a majority of the votes entitled to be cast on the matter.

**ARTICLE XI**

**MERGER, CONSOLIDATION OR SALE OF TRUST PROPERTY; CONVERSION EVENT**

<u>Section 11.1</u>. The Trust may (a) merge with or into or convert into another entity, (b) consolidate with one or more other entities into a new entity or (c) transfer all or substantially all of its assets to another Person. Subject to the terms of any class or series of Shares at the time outstanding, any such action must be approved by the Board and, unless such action (a) could be taken by a Maryland corporation without the approval of its Shareholders pursuant to Subtitle 1 of Title 3 of the MGCL, (b) is taken in connection with an internal restructuring transaction (including the conversion of the Trust into another type of legal entity), as determined by the Board in its sole discretion, or (c) is in connection with a Conversion Event, as determined by the Board in its sole discretion, by Shareholders entitled to cast a majority of all of the votes entitled to be cast on the matter. Notwithstanding the foregoing, a transfer of all or substantially all of the Trust's assets to another Person in connection with a dissolution of the Trust as approved by the Board pursuant to <u>Section 12.2</u> shall not require the approval of the Shareholders.

<u>Section 11.2</u>. The Board may determine, in its sole discretion and without any action by the Shareholders, that the Trust will (a) conduct a public offering as a non-listed REIT subject to the Statement of Policy Regarding Real Estate Investment Trusts published by the North American Securities Administrators Association on May 7, 2007, as amended from time to time, or (b) undertake a Listing. In connection with such determination and the conduct of such public offering or Listing, as applicable, the Board may cause the Trust to (a) merge with or into or convert into another entity, (b) consolidate with one or more entities into a new entity, (c) transfer all or substantially all of its assets to another entity or (d) amend this Declaration of Trust and the Bylaws (in each case, a "<u>Conversion Event</u>"). Notwithstanding any other provision of this Declaration of Trust or the Certificate, the Board may take all actions that are required to effect a Conversion Event without any action by the Shareholders.

**Article XII**

**Duration of Trust**

Section 12.1 <u>Duration</u>. The Trust shall continue perpetually unless dissolved pursuant to <u>Section 12.2</u> or pursuant to any applicable provision of the Act. No Shareholder or other Person shall have any right to petition a court for judicial dissolution of the Trust.

Section 12.2 <u>Dissolution</u>. Subject to the terms of any class or series of Shares at the time outstanding, the Trust may be dissolved with the approval of the Board.

**Article XIII**

**ADVISER**

Section 13.1 <u>Appointment of Adviser</u>. The Board is responsible for setting the general policies of the Trust and for the general supervision of its business conducted by officers, agents, employees, advisors or independent contractors of the Trust. However, the Board is not required personally to conduct the business of the Trust, and it may (but need not) appoint, employ or contract with any Person (including a Person that is an Affiliate of any Trustee) as an Adviser and may grant or delegate such authority to the Adviser as the Board may, in its sole discretion, deem necessary or desirable. The term of retention of any Adviser shall be determined by a majority of the Board (including a majority of the Independent Trustees).

Section 13.2 <u>Supervision of Adviser</u>. The Board shall review and evaluate the qualifications of the Adviser before entering into, and shall evaluate the performance of the Adviser before renewing, any Adviser Agreements. The Board may exercise broad discretion in allowing the Adviser to administer and regulate the operations and investment activities of the Trust, to act as agent for the Trust, to execute documents on behalf of the Trust and to make executive decisions that conform to general policies and principles established by the Board. The Board shall monitor the Adviser to assure that the administrative procedures, operations and programs of the Trust are in the best interests of the Trust and are fulfilled. The Independent Trustees are responsible for reviewing the performance of the Adviser and approving the compensation paid to the Adviser and its Affiliates. The Independent Trustees may also consider all other factors that they deem relevant, and the findings of the Independent Trustees on each of the factors considered shall be recorded in the minutes of the Board. The Board shall determine whether any successor Adviser possesses sufficient qualifications to perform the advisory function for the Trust and whether the compensation provided for in its contract with the Trust is justified.

**ARTICLE XIV**

**MISCELLANEOUS**

Section 14.1 <u>Certificate of Trust</u>. In the event of any conflict between the provisions of the Certificate and this Declaration of Trust, the provisions of the Certificate shall control.

Section 14.2 <u>Inspection</u>. Any Shareholder shall be entitled to examine the Trust's books and records to the extent permitted by Section 12-305(a) (or any successor provision) of the Act, but only if, and to the extent, approved by the Board. In addition, in lieu of the corresponding provision of Section 12-305(b) (or any successor provision) of the Act, any Shareholder(s) who for at least six months has or have each owned of record Shares that entitle the holders thereof, in the aggregate, to cast at least 5% of the votes entitled to be cast on matters on which Shareholders of the Trust are generally allowed to vote, shall have the rights otherwise afforded under Section 12-305(b) (or any successor provision) of the Act.

Section 14.3. <u>Rights of Objecting Shareholders; Preemptive Rights; Derivative Claims</u>. Shareholders shall not be entitled to exercise any appraisal rights or rights analogous to those of an objecting Shareholder provided for under Title 3, Subtitle 2 of the MGCL (or any successor provision thereto). Except as may be provided by the Board in setting the terms of classified or reclassified Shares, or as may otherwise be provided by contract approved by the Board, no Shareholder shall, as such holder, have any preemptive right to purchase or subscribe for any additional Shares or any other security of the Trust which it may issue or sell. A Shareholder shall not be entitled to recover a judgment in favor of the Trust, assert any claim in the name of the Trust or bring any other action that is derivative in nature without the approval of the Board.

Section 14.4 <u>Organization and Offering Expenses</u>. The Trust may reimburse the Board, the Adviser, or the Sponsor for Organization and Offering Expenses incurred by the Board, the Adviser, or the Sponsor in connection with any offering of Shares, on an accountable or nonaccountable basis.

Section 14.5 <u>Governing Law</u>. The rights of all parties and the validity, construction and effect of every provision of this Declaration of Trust shall be subject to and construed according to the laws of the State of Maryland, without regard to conflicts of laws provisions thereof. The laws of the State of Maryland pertaining to trusts formed under the common law shall not apply to the Trust.

Section 14.6 <u>Bylaws</u>. The Board shall have the exclusive power, at any time, to adopt, amend, alter or repeal any provision of the Bylaws and to make new Bylaws. Except as they may directly contradict provisions of this Declaration of Trust, the Bylaws may implement and interpret this Declaration of Trust.

- Signature Page Follows -

IN WITNESS WHEREOF, this Declaration of Trust has been executed by the undersigned officer to be effective as of the date and year first above written.

---

| |
|:---|
| /s/ Nicola Santoro, Jr. |
| Name: Nicola Santoro, Jr. |
| Title: Chief Financial Officer and Chief Accounting Officer |

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## Exhibit 3.3

**Exhibit 3.3**

**<u>rithm perpetual life residential trust</u>**

**<u>BYLAWS</u>**

**ARTICLE I**

**OFFICES**

Section 1.1. <u>PRINCIPAL OFFICE</u>. The principal office of Rithm Perpetual Life Residential Trust (the "<u>Trust</u>") in the State of Maryland shall be located at such place as the Board of Trustees ("<u>Board</u>") may designate.

Section 2.1. <u>ADDITIONAL OFFICES</u>. The Trust may have additional offices, including a principal executive office, at such places as the Board may from time to time determine or the business of the Trust may require.

**ARTICLE II**

**MEETINGS OF SHAREHOLDERS**

Section 2.1. <u>PLACE</u>. All meetings of shareholders shall be held at the principal executive office of the Trust or at such other place, or solely by remote communication, as shall be set in accordance with these Bylaws and stated in the notice of the meeting.

Section 2.2. <u>ANNUAL MEETING</u>. There shall be no requirement to hold an annual meeting of the shareholders in any year.

Section 2.3. <u>SPECIAL MEETINGS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. Each of the chair of the Board, chief executive officer, president, the Board or a majority of the Independent Trustees (as defined in the Declaration of Trust of the Trust (as amended, restated, supplemented or otherwise modified from time to time, the "<u>Declaration of Trust</u>")) may call a special meeting of shareholders. Except as provided in subsection (b)(4) of this <u>Section 2.3</u>, a special meeting of shareholders shall be held on the date and at the time and place set by the chair of the Board, chief executive officer, president, Board or majority of Independent Trustees, whoever has called the meeting. Subject to subsection (b) of this <u>Section 2.3</u>, a special meeting of shareholders shall also be called by the secretary of the Trust, upon the written request of shareholders entitled to cast not less than a majority of all the votes entitled to be cast on such matter at such meeting (the "<u>Special Meeting Percentage</u>"), for the purposes of removing one or more Trustees for "cause" (each, as defined in the Declaration of Trust) and, subject to any Trustee qualifications required by the Declaration of Trust or these Bylaws, filling the resulting vacancy on the Board; <u>provided</u>, <u>however</u>, that if the Trustee so removed was designated by the Adviser (as defined in the Declaration of Trust), then the Adviser shall have the exclusive right to designate a successor Trustee for election to the Board. Shareholders may not request a special meeting for any other purpose or the consideration of any other matter. Notwithstanding the foregoing or subsection (b) of this <u>Section 2.3</u>, in the event there are no Trustees, any shareholder may call a special meeting for the purpose of electing Trustees to be held on the date and at the time and place set by any officer of the Trust (or, if there are no officers of the Trust, by the shareholder calling the meeting).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Shareholder-Requested Special Meetings</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Any shareholder of record seeking to have shareholders request a special meeting to act on any matter that may properly be considered at a meeting of shareholders shall, by sending written notice to the secretary (the "<u>Record Date Request Notice</u>") by registered mail, return receipt requested, request the Board to fix a record date to determine the shareholders entitled to request a special meeting (the "<u>Request Record Date</u>"). The Record Date Request Notice shall set forth the purpose of the meeting and the matters proposed to be acted on at it, shall be signed by one or more shareholders of record as of the date of signature (or their agents duly authorized in a writing accompanying the Record Date Request Notice), shall bear the date of signature of each such shareholder (or such agent) and shall set forth all information relating to each such shareholder, each individual or entity whom the shareholder proposes to nominate for election as a Trustee and each matter proposed to be acted on at the meeting that would be required to be disclosed in connection with the solicitation of proxies for the election of Trustees or the election of each such individual or entity, as applicable in an election contest (even if an election contest is not involved), or would otherwise be required in connection with such a solicitation, in each case pursuant to Regulation 14A (or any successor provision) under the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder (the "<u>Exchange Act</u>"). Upon receiving the Record Date Request Notice, the Board may fix a Request Record Date. The Request Record Date shall not precede and shall not be more than 10 days after the close of business on the date on which the resolution fixing the Request Record Date is adopted by the Board. If the Board, within 10 days after the date on which a valid Record Date Request Notice is received, fails to adopt a resolution fixing the Request Record Date, and fails to determine that the matter or matters proposed are not matters that may properly be considered at a meeting of shareholders under the terms of the Declaration of Trust and these bylaws, the Request Record Date shall be the close of business on the 10th day after the first date on which a Record Date Request Notice is received by the secretary. No such failure to determine shall be deemed an admission that the matter or matters may properly be considered at a meeting of shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) In order for any shareholder to request a special meeting to act on any matter that may properly be considered at a special meeting of shareholders, one or more written requests for a special meeting (collectively, the "<u>Special Meeting Request</u>") signed by shareholders of record (or their agents duly authorized in a writing accompanying the request) as of the Request Record Date entitled to cast not less than the Special Meeting Percentage shall be delivered to the secretary. In addition, the Special Meeting Request shall (A) set forth the purpose of the meeting and the matters proposed to be acted on at it (which shall be limited to the removal of one or more Trustees and, subject to the Adviser's exclusive right to designate a successor Trustee hereunder and under the Declaration of Trust, filling the resulting vacancy on the Board as set forth in the Record Date Request Notice received by the secretary or, if and as applicable, the election of trustees in accordance with and under the circumstances specified in the last sentence of <u>Section 2.3(a)</u> above), (B) bear the date of signature of each such shareholder (or such agent) signing the Special Meeting Request, (C) set forth (i) the name and address, as they appear in the Trust's books, of each shareholder signing such request (or on whose behalf the Special Meeting Request is signed), (ii) the class, series and number of all shares of beneficial interest of the Trust which are owned beneficially or of record by each such shareholder, and (iii) the nominee holder for, and number of, shares of beneficial interest of the Trust owned beneficially but not of record by such shareholder, (D) be sent to the secretary by registered mail, return receipt requested, and (E) be received by the secretary within 60 days after the Request Record Date. Any requesting shareholder (or agent duly authorized in a writing accompanying the revocation of the Special Meeting Request) may revoke his, her or its request for a special meeting at any time by written revocation delivered to the secretary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The secretary shall inform the requesting shareholders of the reasonably estimated cost of preparing and mailing or delivering the notice of the meeting (including the Trust's proxy materials). The secretary shall not be required to call a special meeting upon shareholder request and such meeting shall not be held unless, in addition to the documents and information required by paragraph (2) of this <u>Section 2.3(b)</u>, the secretary receives payment of such reasonably estimated cost prior to the preparation and mailing or delivery of such notice of the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) In the case of any special meeting called by the secretary upon the request of shareholders (a "<u>Shareholder-Requested Meeting</u>"), such meeting shall be held at such place, date and time as may be designated by the Board; <u>provided</u>, <u>however</u>, that the date of any Shareholder-Requested Meeting shall be not more than 90 days after the record date for such meeting (the "<u>Meeting Record Date</u>"); and <u>provided further</u> that if the Board fails to designate, within 10 days after the date that a valid Special Meeting Request is actually received by the secretary (the "<u>Delivery Date</u>"), a date and time for a Shareholder-Requested Meeting, then such meeting shall be held at 2:00 p.m., Eastern Time, on the 90<sup>th</sup> day after the Meeting Record Date or, if such 90<sup>th</sup> day is not a Business Day (as defined below), on the first preceding Business Day; and <u>provided further</u> that in the event that the Board fails to designate a place for a Shareholder-Requested Meeting within 10 days after the Delivery Date, then such meeting shall be held at the principal executive office of the Trust. In fixing a date for a Shareholder-Requested Meeting, the Board may consider such factors as it deems relevant, including, without limitation, the nature of the matters to be considered, the facts and circumstances surrounding any request for the meeting and any plan of the Board to call a special meeting. In the case of any Shareholder-Requested Meeting, if the Board fails to fix a Meeting Record Date that is a date within 30 days after the Delivery Date, then the close of business on the 30<sup>th</sup> day after the Delivery Date shall be the Meeting Record Date. The Board may revoke the notice for any Shareholder-Requested Meeting in the event that the requesting shareholders fail to comply with the provisions of paragraph (3) of this <u>Section 2.3(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) If written revocations of the Special Meeting Request have been delivered to the secretary and the result is that shareholders of record (or their agents duly authorized in writing), as of the Request Record Date, entitled to cast less than the Special Meeting Percentage have delivered, and not revoked, requests for a special meeting on the matter to the secretary: (A) if the notice of meeting has not already been delivered, the secretary shall refrain from delivering the notice of the meeting and send to all requesting shareholders who have not revoked such requests written notice of any revocation of a request for a special meeting on the matter, or (B) if the notice of meeting has been delivered and if the secretary first sends to all requesting shareholders who have not revoked requests for a special meeting on the matter written notice of any revocation of a request for the special meeting and written notice of the Trust's intention to revoke the notice of the meeting or for the chair of the meeting to adjourn the meeting without action on the matter, (A) the secretary may revoke the notice of the meeting at any time before 10 days before the commencement of the meeting or (B) the chair of the meeting may call the meeting to order and adjourn the meeting without acting on the matter. Any request for a special meeting received after a revocation by the secretary of a notice of a meeting shall be considered a request for a new special meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) The chair of the Board, chief executive officer, president or Board may appoint regionally or nationally recognized independent inspectors of elections to act as the agent of the Trust for the purpose of promptly performing a review of the validity of any purported Special Meeting Request received by the secretary. For the purpose of permitting the inspectors to perform such review, no such purported Special Meeting Request shall be deemed to have been received by the secretary until the earlier of (A) 5 Business Days after actual receipt by the secretary of such purported request and (B) such date as the independent inspectors certify to the Trust that the valid requests received by the secretary represent, as of the Request Record Date, shareholders of record entitled to cast not less than the Special Meeting Percentage. Nothing contained in this paragraph (6) shall in any way be construed to suggest or imply that the Trust or any shareholder shall not be entitled to contest the validity of any request, whether during or after such 5 Business Day period, or to take any other action (including, without limitation, the commencement, prosecution or defense of any litigation with respect thereto, and the seeking of injunctive relief in such litigation).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) For purposes of these Bylaws, "<u>Business Day</u>" shall mean any day other than a Saturday, a Sunday or a day on which banking institutions in the State of New York are authorized or obligated by law or executive order to close.

Section 2.4. <u>NOTICE</u>. Not less than 10 nor more than 90 days before each meeting of shareholders, the secretary shall give to each shareholder entitled to vote at such meeting, and to each shareholder not entitled to vote who is entitled to notice of the meeting, notice stating the time and place of the meeting and, in the case of a special meeting or as otherwise may be required by any statute, the purpose for which the meeting is called. Notice may be provided by mail, by presenting it to such shareholder personally, by leaving it at the shareholder's residence or usual place of business, by electronic transmission or by any other means permitted by Maryland law. If mailed, such notice shall be deemed to be given when deposited in the United States mail addressed to the shareholder at the shareholder's address as it appears on the records of the Trust, with postage thereon prepaid. If transmitted electronically, such notice shall be deemed to be given when transmitted to the shareholder by an electronic transmission to any address or number of the shareholder at which the shareholder receives electronic transmissions. The Trust may give a single notice to all shareholders who share an address, which single notice shall be effective as to any shareholder at such address, unless such shareholder objects to receiving such single notice or revokes a prior consent to receiving such single notice. Failure to give notice of any meeting to one or more shareholders, or any irregularity in such notice, shall not affect the validity of any meeting fixed in accordance with this <u>Article II</u> or the validity of any proceedings at any such meeting.

No business shall be transacted at a special meeting of shareholders except as specifically designated in the notice. The Trust may postpone or cancel a meeting of shareholders by making a Public Announcement (as defined below) of such postponement or cancellation prior to the meeting. Notice of the date, time and place to which the meeting is postponed shall be given not less than 10 days prior to such date and otherwise in the manner set forth in this <u>Section 2.4</u>. For purposes of these Bylaws, "<u>Public Announcement</u>" means (a) a press release reported by the Dow Jones News Service, Associated Press, Business Wire, PR Newswire or other widely circulated news or wire service, (b) a document publicly filed by the Trust with the Securities and Exchange Commission pursuant to the Exchange Act or (c) any other method (or combination of methods) of disclosure that is reasonably designed to provide broad, non-exclusionary distribution of the information to the shareholders.

Section 2.5. <u>ORGANIZATION AND CONDUCT</u>. Every meeting of shareholders shall be conducted by an individual appointed by the Board to be chair of the meeting or, in the absence of such appointment or appointed individual, by one of the following officers present at the meeting in the following order: the chair of the Board, the chief executive officer, the president, the chief operating officer, the vice presidents in their order of rank and, within each rank, in their order of seniority, the secretary or, in the absence of such officers, a chair chosen by the shareholders by the vote of a majority of the votes cast by shareholders present in person or by proxy. The secretary or, in the secretary's absence, an individual appointed by the Board or, in the absence of such appointment, an individual appointed by the chair of the meeting, shall act as secretary. In the event that the secretary presides at a meeting of shareholders, an individual appointed by the Board or the chair of the meeting shall record the minutes of the meeting. Even if present at the meeting, the individual holding the office named herein may delegate to another individual the power to act as chair or secretary of the meeting. The order of business and all other matters of procedure at any meeting of shareholders shall be determined by the chair of the meeting. The chair of the meeting may prescribe such rules, regulations and procedures and take such action as, in the discretion of the chair and without any action by the shareholders, are appropriate for the proper conduct of the meeting, including, without limitation: (a) restricting admission to the time set for the commencement of the meeting; (b) limiting attendance or participation at the meeting to shareholders of record of the Trust, their duly authorized proxies and such other individuals as the chair of the meeting may determine; (c) recognizing speakers at the meeting and determining when and for how long speakers and any individual speaker may address the meeting; (d) determining when and for how long the polls should be opened and when the polls should be closed and when announcement of the results shall be made; (e) maintaining order and security at the meeting; (f) removing any shareholder or any other individual who refuses to comply with meeting procedures, rules or guidelines as set forth by the chair of the meeting; (g) concluding a meeting or recessing or adjourning the meeting to a later date and time and at a place either (1) announced at the meeting or (2) provided at a future time through means announced at the meeting; and (h) complying with any state and local laws and regulations concerning safety and security. Without limiting the generality of the powers of the chair of the meeting pursuant to the foregoing provisions, the chair of the meeting may adjourn any meeting of shareholders for any reason deemed necessary by the chair of the meeting, including if (a) no quorum is present for the transaction of the business, (b) the Board or the chair of the meeting determines that adjournment is necessary or appropriate to enable the shareholders to consider fully information that the Board or the chair of the meeting determines has not been made sufficiently or timely available to shareholders or (c) the Board or the chair of the meeting determines that adjournment is otherwise in the best interests of the Trust. Unless otherwise determined by the chair of the meeting, meetings of shareholders shall not be required to be held in accordance with the rules of parliamentary procedure.

Section 2.6. <u>QUORUM</u>. At any meeting of shareholders, the presence in person or by proxy of shareholders entitled to cast at least one-third of all the votes entitled to be cast at such meeting on any matter shall constitute a quorum (unless the Board, when setting a meeting, determines that a greater percentage (but not more than a majority of all the votes entitled to be cast at such meeting on any matter) shall constitute a quorum for such meeting); but this <u>Section 2.6</u> shall not affect any requirement under the Declaration of Trust for the vote necessary for the approval of any matter. If such quorum is not established at any meeting of the shareholders, the chair of the meeting may adjourn the meeting *sine die* or from time to time to a date not more than 120 days after the original record date without notice other than announcement at the meeting. At such adjourned meeting at which a quorum shall be present, any business may be transacted which might have been transacted at the meeting as originally convened. The date, time and place of the meeting, as reconvened, shall be either (a) announced at the originally convened meeting or (b) provided at a future time through means announced at the originally convened meeting.

The shareholders present either in person or by proxy, at a meeting which has been duly called and at which a quorum has been established, may continue to transact business until adjournment, notwithstanding the withdrawal from the meeting of enough shareholders to leave fewer than would be required to establish a quorum.

Section 2.7. <u>VOTING</u>. A nominee for election by the shareholders as Trustee shall be elected as a Trustee only if such nominee receives the affirmative vote of a plurality of the total votes cast at a meeting of shareholders duly called and at which a quorum is present. The affirmative vote of a majority of the votes cast at a meeting of shareholders duly called and at which a quorum is present shall be sufficient to approve any other matter which may properly come before the meeting, unless more than a majority of the votes cast is required by the Declaration of Trust. Unless otherwise provided by the Declaration of Trust, each outstanding share of beneficial interest, regardless of class, shall be entitled to one vote on each matter submitted to a vote at a meeting of shareholders. Subject to the provisions of any class or series of shares hereafter authorized and then outstanding, on any matter submitted to a vote of shareholders of the Trust, all shares then entitled to vote shall, except as otherwise provided in the Declaration of Trust, be voted in the aggregate as a single class without regard to class or series of shares, except that if the Board has determined that the matter affects only the interests of one or more series or classes of shares, only shareholders of such series or classes shall be entitled to vote thereon. Voting on any question or in any election may be *viva voce* unless the chair of the meeting shall order that voting be by ballot or otherwise.

Section 2.8. <u>PROXIES</u>. A holder of record of shares of beneficial interest of the Trust may cast votes in person or by proxy executed by the shareholder or by the shareholder's duly authorized agent in any manner permitted by law. Such proxy or evidence of authorization of such proxy shall be filed with the secretary of the Trust before or at the meeting. No proxy shall be valid more than 11 months after its date, unless otherwise provided in the proxy.

Shares of beneficial interest of the Trust directly or indirectly owned by it shall not be voted at any meeting and shall not be counted in determining the total number of outstanding shares entitled to be voted at any given time, unless they are held by it in a fiduciary capacity, in which case they may be voted and shall be counted in determining the total number of outstanding shares at any given time.

The Board may adopt any procedure it deems appropriate by which a shareholder may certify in writing to the Trust that any shares of beneficial interest registered in the name of the shareholder are held for the account of a specified person other than the shareholder. The procedure shall set forth the class of shareholders who may make the certification, the purpose for which the certification may be made, the form of certification and the information to be contained in it; if the certification is with respect to a record date, the time after the record date within which the certification must be received by the Trust; and any other provisions with respect to the procedure which the Board considers necessary or desirable. On receipt by the Trust of such certification, the person specified in the certification shall be regarded as, for the purposes set forth in the certification, the shareholder of record of the specified shares of beneficial interest in place of the shareholder who makes the certification.

Section 2.10. <u>INSPECTORS</u>. The Board or the chair of the meeting may appoint, before or at the meeting, one or more inspectors for the meeting (or one or more entities that designate individuals as inspectors to act at the meeting) or any postponement or adjournment thereof and any successor to the inspector. Except as otherwise provided by the chair of the meeting, the inspectors, if any, shall (a) determine the number of shares of beneficial interest represented at the meeting in person or by proxy and the validity and effect of proxies, (b) receive and tabulate all votes, ballots or consents, (c) report such tabulation to the chair of the meeting, (d) hear and determine all challenges and questions arising in connection with the right to vote, and (e) do such acts as are proper to fairly conduct the election or vote. In the absence of such an appointment, the secretary may act as the inspector. Each such report shall be in writing and signed by the inspector or by a majority of them if there is more than one inspector acting at such meeting. If there is more than one inspector, the report of a majority shall be the report of the inspectors. The report of the inspector or inspectors on the number of shares represented at the meeting and the results of the voting shall be *prima facie* evidence thereof, but the decision or determination of the chair of the meeting in any such matter shall be final and binding on all shareholders.

Section 2.11. <u>REMOTE COMMUNICATION</u>. Notwithstanding anything to the contrary in these Bylaws, the Board or an authorized officer of the Trust may determine at any time, including, without limitation, after the calling of any meeting of shareholders, that any meeting of shareholders be held solely by means of remote communication or both at a physical location and by means of remote communication. Notwithstanding anything to the contrary in these Bylaws, if it is determined after notice of the meeting has been sent to shareholders that participation by shareholders in the meeting shall or may be conducted by means of remote communication, notice thereof may be provided at any time by press release or any other means of public communication not prohibited by law. Shareholders and proxy holders entitled to be present and to vote at the meeting that are not physically present at such a meeting but participate by means of remote communication shall be considered present in person for all purposes under these Bylaws and may vote at such a meeting. Subject to any guidelines or procedures that the Board may adopt, any meeting at which shareholders or proxy holders are permitted to participate by means of remote communication shall be conducted in accordance with the following, unless otherwise permitted by applicable law or regulation: (a) the Trust shall implement reasonable measures to verify that each person considered present and authorized to vote at the meeting by means of remote communication is a shareholder or proxy holder; (b) the Trust shall implement reasonable measures to provide the shareholders and proxy holders a reasonable opportunity to participate in the meeting and to vote on matters submitted to the shareholders, including an opportunity to read or hear the proceedings of the meeting substantially concurrently with the proceedings; and (c) in the event any shareholder or proxy holder votes or takes other action at the meeting by means of remote communication, a record of the vote or other action shall be maintained by the Trust.

Section 2.12. <u>SHAREHOLDERS' CONSENT IN LIEU OF MEETING</u>. Except as provided in the following sentence with respect to the election of Trustees, any action required or permitted to be taken at any meeting of shareholders by the Declaration of Trust or these Bylaws may be taken without a meeting (a) if a unanimous consent setting forth the action is given in writing or by electronic transmission by each shareholder entitled to vote on the matter and filed with the minutes of proceedings of the shareholders or (b) if the action is advised, and submitted to the shareholders for approval, by the Board and a consent in writing or by electronic transmission of shareholders entitled to cast not less than the minimum number of votes that would be necessary to authorize or take the action at a meeting of shareholders at which all shareholders entitled to vote were present and voted is delivered to the Trust in accordance with the Maryland Statutory Trust Act. If the election of Trustees is advised, and submitted to the shareholders for approval, by the Board or if there are no Trustees, the election of Trustees may be effected without a meeting if a consent in writing or by electronic transmission of shareholders entitled to cast a majority of the votes entitled to be cast generally in the election of Trustees is delivered to the Trust. The Trust shall give notice of any action taken by less than unanimous consent to each shareholder not later than 10 days after the effective time of such action.

Section 2.13. <u>ADVANCE NOTICE OF SHAREHOLDER NOMINEES FOR TRUSTEE AND OTHER SHAREHOLDER PROPOSALS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. Only such business shall be conducted at a special meeting of shareholders as shall have been brought before the meeting pursuant to the Trust's notice of meeting. Nominations of individuals or entities for election to the Board may be made at a special meeting of shareholders at which Trustees are to be elected only (1) by or at the direction of the Board, (2) by a shareholder that has requested that a special meeting be called for the purpose of removing one or more Trustees for "cause" and filling any resulting vacancy on the Board in compliance with <u>Section 2.3</u> or (3) provided that the special meeting has been called in accordance with <u>Section 2.3(a)</u> for the purpose of electing Trustees, by any shareholder of the Trust who is a shareholder of record at the record date set by the Board for the purpose of determining shareholders entitled to vote at the special meeting, at the time of giving of notice provided for in this <u>Section 2.13</u> and at the time of the special meeting (and any postponement or adjournment thereof), who is entitled to vote at the meeting in the election of each individual or entity so nominated and who has complied with the notice procedures set forth in this <u>Section 2.13</u>. In the event the Trust calls a special meeting of shareholders for the purpose of electing one or more individuals or entities to the Board, any shareholder may nominate one or more individuals or entities (as the case may be) for election as a Trustee as specified in the Trust's notice of meeting, if the shareholder's notice, containing the information required by paragraph (b) of this <u>Section 2.13</u> is delivered to the secretary at the principal executive office of the Trust not earlier than the 120th day prior to such special meeting and not later than 5:00 p.m., Eastern Time, on the later of the 90th day prior to such special meeting or the 10th day following the day on which Public Announcement is first made of the date of the special meeting and of the nominees proposed by the Board to be elected at such meeting. The postponement or adjournment of a special meeting (or Public Announcement thereof) shall not commence a new time period for the giving of a shareholder's notice as described above. Anything herein to the contrary notwithstanding, any right to nominate a Trustee for election by or at the direction of any shareholder(s) shall be <u>subject to, without limitation,</u> compliance with, as applicable (1) the Adviser's exclusive right to designate one or more Trustees to serve on the Board, including without limitation as a successor Trustee to a removed Trustee as referred to in the penultimate sentence of Section 2.3(a) hereof, in which case any such nominee(s) must also have been approved in writing by the Adviser, and (2) the qualifications applicable to an Independent Trustee under the Declaration of Trust and these Bylaws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Information Required</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) A shareholder's notice shall set forth as to each individual or entity whom the shareholder proposes to nominate for election as a Trustee (each, a "<u>Proposed Nominee</u>"), (A) all information relating to the Proposed Nominee that would be required to be disclosed in connection with the solicitation of proxies for the election of the Proposed Nominee as a Trustee in an election contest (even if an election contest is not involved), or would otherwise be required in connection with such solicitation, in each case pursuant to Regulation 14A (or any successor provision) under the Exchange Act and (B) if the proposed nominee is an entity, applicable information (as determined by the Board) relating to such entity's controlling parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) A shareholder's notice shall set forth as to the shareholder giving the notice and any Proposed Nominee (A) the class, series and number of all shares of beneficial interest or other securities of the Trust (collectively, the "<u>Company Securities</u>"), if any, which are owned (beneficially or of record) by such shareholder or Proposed Nominee, the date on which each such Company Security was acquired and the investment intent of such acquisition, and any short interest (including any opportunity to profit or share in any benefit from any decrease in the price of such shares or other security) in any Company Securities of any such person, and (B) the nominee holder for, and number of, any Company Securities owned beneficially but not of record by such shareholder or Proposed Nominee. A shareholder's notice shall also include the approval of the nominee by the Adviser when applicable.

Section 2.14. <u>PROPOSALS OF BUSINESS WHICH ARE NOT PROPER MATTERS FOR ACTION BY SHAREHOLDERS</u>. Notwithstanding anything in the Declaration of Trust or these Bylaws to the contrary, subject to applicable law, any shareholder proposal for business the subject matter or effect of which would be within the exclusive purview of the Board or would be reasonably likely, if considered by the shareholders or approved or implemented by the Trust, to result in an impairment of the limited liability status for the shareholders, shall be deemed not to be a matter upon which the shareholders are entitled to vote. The Board in its discretion shall be entitled to determine whether a shareholder proposal for business is not a matter upon which the shareholders are entitled to vote pursuant to this <u>Section 2.14</u>, and its decision shall be final and binding unless determined by a court of competent jurisdiction to have been made in bad faith.

**ARTICLE III**

**BOARD OF TRUSTEES**

Section 3.1. <u>GENERAL POWERS</u>. Except as otherwise provided in the Declaration of Trust, the business and affairs of the Trust shall be managed under the direction of the Board.

Section 3.2. <u>NUMBER, ELECTION AND TERM OF TRUSTEES</u>. The number of Trustees constituting the entire Board may be changed from time to time by a majority of the entire Board; <u>provided</u>, <u>however</u>, that the number of Trustees shall in no event be fewer than 3, nor more than 15. At all times, except for a period of up to 60 days after the death, removal, resignation, dissolution, termination of legal existence or adjudication of legal incompetence or other vacancy of an Independent Trustee pending the election of a successor Independent Trustee, a majority of the Board shall be Independent Trustees. Notwithstanding anything in these Bylaws or the Declaration of Trust to the contrary, for so long as the Sponsor (as defined in the Declaration of Trust) or its Affiliate (as defined in the Declaration of Trust) acts as investment advisor or manager to the Trust as permitted by Section 6.3 of the Declaration of Trust, the Adviser shall have the right to designate a number of Trustees for election to the Board, which number shall initially be two (each, an "<u>Adviser Designee</u>"); <u>provided</u>, that if the number of Trustees constituting the Board is increased or decreased pursuant to these Bylaws or the Declaration of Trust, the number of Adviser Designees shall be increased or decreased proportionately (but in no event shall the number of Adviser Designees (a) equal or exceed 50% of the total size of the Board or (b) be less than one). Trustees need not be shareholders in the Trust. Each Trustee shall serve until his, her or its resignation, removal, death, dissolution, termination of legal existence or adjudication of legal incompetence. A Trustee judged incompetent or for whom a guardian or conservator has been appointed shall be deemed to have resigned as of the date of such adjudication or appointment. A vacancy on the Board for any reason other than removal for "cause" by the shareholders may be filled only by a vote of a majority of the remaining Trustees. If a Trustee is removed by shareholders for "cause" as set forth in the Declaration of Trust or if there are no Trustees, the successors to the Trustees shall be elected by the shareholders. Notwithstanding the foregoing, if the Trustee so removed was designated by the Adviser pursuant to Section 6.3 of the Declaration of Trust, then the Adviser shall have the exclusive right to designate a successor Trustee for election to the Board. No reduction in the number of Trustees shall have the effect of removing any Trustee from office prior to the expiration of his or her term unless the Trustee is specifically removed pursuant to the Declaration of Trust at the time of the reduction.

Section 3.3. <u>RESIGNATION</u>. A Trustee may resign at any time by giving written notice of his or her resignation to the Board or the chair of the Board, the chief executive officer, the president or the secretary of the Trust. Any resignation shall take effect immediately upon its receipt or at such later time as specified in the resignation. Acceptance of a resignation shall not be necessary to make it effective unless the resignation states otherwise.

Section 3.4. <u>PLACE OF MEETINGS</u>. Meetings of the Board may be held at any place that the Board may from time to time determine or that is specified in the notice of the meeting, or by means of remote communication as set forth in <u>Section 3.12</u>, if so designated by the Board.

Section 3.5. <u>REGULAR MEETINGS</u>. The Board may establish regular meetings at any time in its sole discretion. Regular meetings of the Board may be held from time to time at such places and times as provided by the Board by resolution, without notice other than such resolution.

Section 3.6. <u>SPECIAL MEETINGS</u>. Special meetings of the Board may be called by or at the request of the chair of the Board, a majority of the Independent Trustees, the chief executive officer, the president or a majority of the Trustees then in office.

Section 3.7. <u>NOTICE OF SPECIAL MEETINGS</u>. Notice of each special meeting of the Board shall be given by the secretary as hereinafter provided. Each notice shall state the time and place of the meeting, or that the meeting is being held by means of remote communication, and shall be delivered to each Trustee, either personally or by telephone, video conference or other standard form of telecommunication or electronic transmission, at least 24 hours (or such shorter period consented to by a majority of the Trustees) before the time at which the meeting is to be held, or by first-class mail, postage prepaid, addressed to the Trustee at his residence or usual place of business, and mailed at least 3 days before the date on which the meeting is to be held.

Section 3.8. <u>QUORUM AND VOTING</u>. A majority of the Trustees then in office shall constitute a quorum for the transaction of business, <u>provided that</u>, if less than a majority of such Trustees is present at such meeting, a majority of the Trustees present may adjourn the meeting from time to time without further notice, and <u>provided further</u> that if, pursuant to applicable law, the Declaration of Trust or these Bylaws, the vote of a majority or other percentage of a specified group of Trustees is required for action, a quorum must also include a majority or such other percentage of such group. Except as otherwise expressly required by statute, the Declaration of Trust or these Bylaws, the action of a majority of the Trustees present at any meeting at which a quorum is present shall be the action of the Board. The Trustees present at a meeting which has been duly called and at which a quorum has been established may continue to transact business until adjournment, notwithstanding the withdrawal from the meeting of enough Trustees to leave fewer Trustees than required to establish a quorum. If enough Trustees have withdrawn from a meeting to leave fewer Trustees than required to establish a quorum, but the meeting is not adjourned, the action of a majority of that number of Trustees necessary to constitute a quorum at such meeting shall be the action of the Board, unless the concurrence of a greater proportion is required for such action by applicable law, the Declaration of Trust or these Bylaws.

Section 3.9. <u>CHAIR OF THE BOARD</u>. The Board may designate from among its members a chair of the Board, who shall not, solely by reason of such designation, be an officer of the Trust. The Board may designate the chair of the Board as an executive or non-executive chair. The chair of the Board shall perform such duties as may be assigned to him or her by these Bylaws or the Board.

Section 3.10. <u>ORGANIZATION</u>. The chair of the Board shall preside at each meeting of the Board. In the absence or inability of the chair of the Board to act, the chief executive officer (if a Trustee), the president (if a Trustee), or, in the chief executive officer's and president's absence or inability to act, another Trustee chosen by a majority of the Trustees present, shall act as chair of the meeting and preside at the meeting. The secretary (or, in the secretary's absence or inability to act, any person appointed by the chair) shall act as secretary of the meeting and keep the minutes of the meeting.

Section 3.11. <u>CONSENT OF TRUSTEES IN LIEU OF A MEETING</u>. Any action required or permitted to be taken at any meeting of the Board may be taken without a meeting if a majority of the members of the Board, as the case may be, consent thereto in writing or by electronic transmission, and the consent or consents, in paper or electronic form, are filed with the minutes of the proceedings of the Board.

Section 3.12. <u>REMOTE COMMUNICATION</u>. Meetings of the Board may be conducted by means of remote communication or both at a physical location and by means of remote communication. Members of the Board may participate remotely in any Board meeting via communications equipment by means of which all persons participating in the meeting can hear each other at the same time. Participation by such means shall constitute presence in person at the meeting.

Section 3.13. <u>COMPENSATION</u>. Each Trustee shall be entitled to receive compensation, if any, as may from time to time be fixed by the Board. Trustees may also be reimbursed by the Trust for all reasonable expenses incurred in traveling to and from the place of a Board or committee meeting.

Section 3.14. <u>RATIFICATION</u>. The Board or the shareholders may ratify any act or inaction (an "<u>Act</u>") by the Trust or its officers to the extent that the Board or the shareholders could have originally authorized the Act and, if so ratified, such Act shall have the same force and effect as if originally duly authorized, and such ratification shall be binding upon the Trust and its shareholders. Any Act questioned in any shareholders' derivative proceeding or any other proceeding on the ground of lack of authority, defective or irregular execution, adverse interest of a Trustee, officer or shareholder, non-disclosure, miscomputation, the application of improper principles or practices of accounting or otherwise, may be ratified, before or after judgment, by the Board or by the shareholders, and such ratification shall constitute a bar to any claim or execution of any judgment in respect of such questioned Act.

Section 3.15. <u>EMERGENCY PROVISIONS</u>. Notwithstanding any other provision in the Declaration of Trust or these Bylaws, this <u>Section 3.15</u> shall apply during the existence of any catastrophe, or other similar emergency condition, as a result of which a quorum of the Board under <u>Article III</u> of these Bylaws cannot readily be obtained (an "<u>Emergency</u>"). During an Emergency, unless otherwise provided by the Board: (a) a meeting of the Board or a committee thereof may be called by any Trustee or officer by any means feasible under the circumstances; (b) notice of any meeting of the Board or any committee thereof during such an Emergency may be given less than 24 hours prior to the meeting to as many Trustees and by such means as may be feasible at the time, including publication, television or radio; and (c) the number of Trustees necessary to constitute a quorum shall be one-third of the entire Board.

Section 3.16. <u>GOVERNANCE</u>. The Board may from time to time require all of its members (including any individual or entity nominated to serve as a Trustee) to agree in writing as to matters of corporate governance, business ethics and confidentiality while such persons serve as a Trustee, including a consent to the Trust's or the Board's use of a background check with the scope and depth consistent with that previously used by the Trust or Board, with such agreement to be on the terms and in a form determined satisfactory by the Board, as amended and supplemented from time to time in the discretion of the Board.

Section 3.17. <u>RELIANCE</u>. Each Trustee, officer, employee or agent of the Trust shall, in the performance of his, her or its duties with respect to the Trust, be entitled to rely on any information, opinion, report or statement, including any financial statement or other financial data, prepared or presented by an officer or employee of the Trust whom the Trustee, officer, employee or agent reasonably believes to be reliable and competent in the matters presented, by a lawyer, certified public accountant or other person, as to a matter which the Trustee, officer, employee or agent reasonably believes to be within the person's professional or expert competence, or, with respect to a Trustee, by a committee of the Board on which the Trustee does not serve, as to a matter within its designated authority, if the Trustee reasonably believes the committee to merit confidence.

Section 3.18. <u>CERTAIN RIGHTS OF TRUSTEES, OFFICERS, EMPLOYEES AND AGENTS</u>. A Trustee, officer, employee or agent shall have no responsibility to devote his, her or its full time to the affairs of the Trust. Any Trustee, officer, employee or agent, in his, her or its personal capacity or in a capacity as an affiliate, employee or agent of any other person, or otherwise, may have business interests and engage in business activities similar to, in addition to or in competition with those of or relating to the Trust.

Section 3.19. <u>INTERESTED TRUSTEE TRANSACTIONS</u>. The procedures and presumptions set forth in Section 2-419 of the Maryland General Corporation Law (the "<u>MGCL</u>") shall be available for and apply to any contract or other transaction between the Trust and any of its Trustees or between the Trust and any other trust, corporation, firm or other legal entity in which any of its Trustees is a trustee or director or has a material financial interest.

**ARTICLE IV**

**COMMITTEES**

Section 4.1. <u>Number; Tenure and Qualifications</u>. The Board shall appoint an Audit Committee composed of at least three Trustees, all of whom shall be Independent Trustees, to serve at the pleasure of the Board. The Board may also appoint other committees from time to time composed of one or more members, to serve at the pleasure of the Board; <u>provided</u>, <u>however</u>, that each committee shall be composed of a majority of Independent Trustees. The Board shall adopt a charter with respect to the Audit Committee which shall specify the purposes, the criteria for membership and the responsibility and duties and may specify other matters with respect to such committee. The Board may also adopt a charter with respect to other committees.

Section 4.2. <u>Powers</u>. The Board may delegate any of the powers of the Board to committees appointed under <u>Section 4.1</u> and composed solely of Trustees, except as prohibited by applicable law. If a charter has been adopted with respect to a committee composed solely of Trustees, the charter shall constitute a delegation by the Board of the powers of the Board necessary to carry out the purposes, responsibilities and duties of a committee provided in the charter or reasonably related to those purposes, responsibilities and duties, to the extent permitted by applicable law.

Section 4.3. <u>Meetings</u>. Notice of committee meetings shall be given in the same manner as notice for special meetings of the Board. Except as may be otherwise provided by the Board or the charter of any committee, a majority of the members of such committee shall constitute a quorum for the transaction of business, and the action of a majority of the members of such committee present at any committee meeting at which a quorum is present shall be the action of such committee. The Board or, if authorized by the Board in a committee charter or otherwise, the committee members may designate a chair of any committee, and the chair or, in the absence of a chair, a majority of any committee may fix the time and place of its meetings unless the Board shall otherwise provide. Each committee shall keep regular minutes of its meetings and provide those minutes to the Board when required. Except as limited from time to time prospectively by the Board, the members of a committee present at any meeting, whether or not they constitute a quorum, may appoint a Trustee to act in the place of an absent member.

Section 4.4. <u>remote communication</u>. Meetings of any committee may be conducted by means of remote communication or both at a physical location and by means of remote communication. Members of the committee may participate remotely in any committee meeting via communications equipment by means of which all persons participating in the meeting can hear each other at the same time. Participation by such means shall constitute presence in person at the meeting.

Section 4.5. <u>Action by Written Consent of Committees</u>. Any action required or permitted to be taken at any meeting of any committee may be taken without a meeting if a majority of the members of the committee consent thereto in writing or by electronic transmission, and the consent or consents, in paper or electronic form, are filed with the minutes of the proceedings of the committee.

Section 4.6. <u>Vacancies</u>. The Board shall have the power at any time to change the membership of any committee, to fill all vacancies on any committee or to dissolve any such committee.

**ARTICLE V**

**OFFICERS**

Section 5.1. <u>GENERAL PROVISIONS</u>. The Board may, from time to time, appoint and remove officers, employees and other agents of the Trust, to serve at the pleasure of the Board, with such powers and duties as the Board may determine. The officers of the Trust may include a chief executive officer, a president, a chief operating officer, a chief financial officer, a chief investment officer, one or more vice presidents, a treasurer, a secretary, and such other officers with such powers and duties as it shall deem necessary or desirable. The officers of the Trust, if any, shall be appointed by the Board, except that the chief executive officer or president may from time to time appoint one or more vice presidents or other subordinate officers and remove any officer so appointed. The duties of the officers of the Trust shall be as set forth in these Bylaws and as from time to time prescribed by the Board or, in the case of any officer other than the chief executive officer or president, the chief executive officer or president. Each officer shall serve until his or her successor is appointed and qualifies or until his or her death or his or her resignation or removal in the manner hereinafter provided. Any two or more offices except president and vice president may be held by the same person. Appointment of an officer or agent shall not of itself create contract rights between the Trust and such officer or agent. In the absence of any other appointment of such officers, solely for the purpose of executing and attesting any amendment to the Certificate (as defined in the Declaration of Trust) or any other document required by law to be executed and/or attested by one or more officers of the Trust, chair of the Board shall be the chief executive officer or, if no chief executive officer, the president of the Trust and any individual signing as such at the direction of the Board shall be the secretary of the Trust.

Section 5.2. <u>REMOVAL AND RESIGNATION</u>. Any officer or agent of the Trust may be removed, with or without cause, by the Board, and any subordinate officer or agent of the Trust may be removed, with or without cause, by the chief executive officer or the president of the Trust, but any such removal shall be without prejudice to the contract rights, if any, of the person so removed. Any officer of the Trust may resign at any time by delivering his or her resignation to the Board, or to the chief executive officer, president or secretary of the Trust, if one is then appointed. Any resignation shall take effect immediately upon its receipt or at such later time specified in the resignation. The acceptance of a resignation shall not be necessary to make it effective unless otherwise stated in the resignation. Such resignation shall be without prejudice to the contract rights, if any, of the Trust.

Section 5.3. <u>CHIEF EXECUTIVE OFFICER</u>. The Board may designate a chief executive officer. The chief executive officer shall have general responsibility for implementation of the policies of the Trust, as determined by the Board, and for the management of the business and affairs of the Trust. He or she may execute any deed, mortgage, bond, contract or other instrument, except in cases where the execution thereof shall be expressly delegated by the Board or by these Bylaws to some other officer or agent of the Trust or shall be required by law to be otherwise executed; and in general shall perform all responsibilities and duties incident to the office of chief executive officer and such other responsibilities and duties as may be prescribed by the Board from time to time.

Section 5.4. <u>CHIEF OPERATING OFFICER</u>. The Board may designate a chief operating officer. The chief operating officer shall have the responsibilities and duties as determined by the Board or the chief executive officer.

Section 5.5. <u>CHIEF FINANCIAL OFFICER</u>. The Board may designate a chief financial officer. The chief financial officer shall have the responsibilities and duties as determined by the Board or the chief executive officer.

Section 5.6. <u>CHIEF INVESTMENT OFFICER</u>. The Board may designate a chief investment officer. The chief investment officer shall have the responsibilities and duties as determined by the Board or the chief executive officer.

Section 5.7. <u>PRESIDENT</u>. In the absence of a chief executive officer, the president shall in general supervise and control all of the business and affairs of the Trust. In the absence of a designation of a chief operating officer by the Board, the president shall be the chief operating officer. He or she may execute any deed, mortgage, bond, contract or other instrument, except in cases where the execution thereof shall be expressly delegated by the Board or by these Bylaws to some other officer or agent of the Trust or shall be required by law to be otherwise executed; and in general shall perform all responsibilities and duties incident to the office of president and such other responsibilities and duties as may be prescribed by the Board from time to time.

Section 5.8. <u>VICE PRESIDENTS</u>. In the absence of the president or in the event of a vacancy in such office, the vice president (or in the event there be more than one vice president, the vice presidents in the order designated at the time of their election or, in the absence of any designation, then in the order of their election) shall perform the responsibilities and duties of the president and when so acting shall have all the powers of and be subject to all the restrictions upon the president; and shall perform such other responsibilities and duties as from time to time may be assigned to such vice president by the chief executive officer, the president or the Board. The Board may designate one or more vice presidents as executive vice president, senior vice president, or vice president for particular areas of responsibility.

Section 5.9. <u>SECRETARY</u>. The secretary shall (a) keep the minutes of the proceedings of the shareholders, the Board and committees of the Board, if any, in one or more books provided for that purpose; (b) see that all notices are duly given in accordance with the provisions of these Bylaws or as required by law; (c) be custodian of the trust records and of the seal of the Trust; (d) keep a register of the post office address of each shareholder which shall be furnished to the secretary by such shareholder; (e) have general charge of the share transfer books of the Trust; and (f) in general perform such other responsibilities and duties as from time to time may be assigned to him or her by the chief executive officer, the president or the Board.

Section 5.10. <u>TREASURER</u>. The treasurer shall have the custody of the funds and securities of the Trust, shall keep full and accurate accounts of receipts and disbursements in books belonging to the Trust, shall deposit all moneys and other valuable effects in the name and to the credit of the Trust in such depositories as may be designated by the Board and in general perform such other responsibilities and duties as from time to time may be assigned to him or her by the chief executive officer, the president or the Board. In the absence of a designation of a chief financial officer by the Board, the treasurer shall be the chief financial officer of the Trust.

The treasurer shall disburse the funds of the Trust as may be ordered by the Board, taking proper vouchers for such disbursements, and shall render to the chief executive officer or president and Board, at the regular meetings of the Board, if any, or whenever it may so require, an account of all his or her transactions as treasurer and of the financial condition of the Trust.

Section 5.11. <u>COMPENSATION</u>. The compensation of the officers shall be fixed from time to time by or under the authority of the Board, except that the chief executive officer or president may, from time to time, set the compensation for any vice president or other subordinate officer. No officer shall be prevented from receiving such compensation by reason of the fact that he or she is also a Trustee.

**ARTICLE VI**

**CONTRACTS, CHECKS AND DEPOSITS**

Section 6.1. <u>CONTRACTS</u>. The Board may authorize any Trustee, officer or agent of the Trust (including the Adviser or any affiliate of the Adviser or any officer of the Adviser or its affiliates) to enter into any contract or to execute and deliver any instrument in the name of and on behalf of the Trust and such authority may be general or confined to specific instances. Any agreement, loan, note, deed, mortgage, lease or other document shall be valid and binding upon the Trust when duly authorized or ratified by action of the Board and executed by an authorized person.

Section 6.2. <u>CHECKS AND DRAFTS</u>. All checks, drafts or other orders for the payment of money, notes or other evidences of indebtedness issued in the name of the Trust shall be signed by such officer or agent of the Trust or the Board in such manner as shall from time to time be determined by the Board.

Section 6.3. <u>DEPOSITS</u>. All funds of the Trust not otherwise employed shall be deposited or invested from time to time to the credit of the Trust as the Board, the chief executive officer, the president, the chief financial officer, or any other officer or agent of the Trust or the Board designated by the Board may determine.

**ARTICLE VII**

**SHARES**

Section 7.1. <u>CERTIFICATES</u>. Except as may be otherwise provided by the Board or any officer of the Trust, shareholders of the Trust are not entitled to certificates evidencing the shares of beneficial interest held by them. In the event that the Trust issues shares of beneficial interest evidenced by certificates, such certificates shall be in such form as prescribed by the Board or a duly authorized officer. There shall be no differences in the rights and obligations of shareholders based on whether or not their shares are evidenced by certificates.

Section 7.2. <u>TRANSFERS</u>. All transfers of shares shall be made on the books of the Trust, by the holder of the shares, in person or by his or her attorney, in such manner as the Board or any officer of the Trust may prescribe and, if such shares are certificated, upon surrender of certificates duly endorsed. The issuance of a new certificate upon the transfer of certificated shares is subject to the determination of the Board or an officer of the Trust that such shares shall no longer be evidenced by certificates.

The Trust shall be entitled to treat the holder of record of any share of beneficial interest as the holder in fact thereof and, accordingly, shall not be bound to recognize any equitable or other claim to or interest in such share or on the part of any other person, whether or not it shall have express or other notice thereof, except as otherwise expressly provided by the laws of the State of Maryland.

Notwithstanding the foregoing, transfers of shares of any class or series of beneficial interest will be subject in all respects to the Declaration of Trust and all of the terms and conditions contained therein.

Section 7.3. <u>REPLACEMENT CERTIFICATE</u>. The Board or any officer or agent of the Trust may direct a new certificate or certificates to be issued in place of any certificate or certificates theretofore issued by the Trust alleged to have been lost, destroyed, stolen or mutilated, upon the making of an affidavit of that fact by the person claiming the certificate to be lost, destroyed, stolen or mutilated; <u>provided</u>, <u>however</u>, if such shares have ceased to be certificated, no new certificate shall be issued unless requested in writing by such shareholder and the Board or an officer of the Trust has determined that such certificates may be issued. Unless otherwise determined by the Board or an officer or agent of the Trust, the owner of such lost, destroyed, stolen or mutilated certificate or certificates, or his or her legal representative, shall be required, as a condition precedent to the issuance of a new certificate or certificates, to give the Trust a bond in such sums as it may direct as indemnity against any claim that may be made against the Trust.

Section 7.4. <u>FIXING OF RECORD DATE</u>. The Board may set, in advance, a record date for the purpose of determining shareholders entitled to notice of or to vote at any meeting of shareholders or determining shareholders entitled to receive payment of any dividend or the allotment of any other rights, or in order to make a determination of shareholders for any other proper purpose. Such date, in any case, shall not be prior to the close of business on the day the record date is fixed and shall be not more than 90 days and, in the case of a meeting of shareholders, not less than 10 days, before the date on which the meeting or particular action requiring such determination of shareholders of record is to be held or taken.

When a record date for the determination of shareholders entitled to notice of and to vote at any meeting of shareholders has been set as provided in this <u>Section 7.4</u>, such record date shall continue to apply to the meeting if adjourned or postponed, except if the meeting is adjourned or postponed to a date more than 120 days after the record date originally fixed for the meeting, in which case a new record date for such meeting may be determined as set forth herein.

Section 7.5. <u>SHARE LEDGER</u>. The Trust shall maintain at its principal office or at the office of its counsel, accountants or transfer agent, an original or duplicate share ledger containing the name and address of each shareholder and the number of shares of each class or series held by such shareholder.

Section 7.6. <u>FRACTIONAL SHARES; ISSUANCE OF UNITS</u>. The Board may authorize the Trust to issue fractional shares or authorize the issuance of scrip, all on such terms and under such conditions as it may determine. Notwithstanding any other provision of the Declaration of Trust or these Bylaws, the Board may authorize the Trust to issue units consisting of different securities of the Trust. Any security issued in a unit shall have the same characteristics as any identical securities issued by the Trust, except that the Board may provide that for a specified period securities of the Trust issued in such unit may be transferred on the books of the Trust only in such unit.

**ARTICLE VIII**

**ACCOUNTING YEAR**

The Board shall have the power, from time to time, to fix the fiscal year of the Trust.

**ARTICLE IX**

**DISTRIBUTIONS**

Section 9.1. <u>AUTHORIZATION</u>. Dividends and other distributions upon the shares of beneficial interest of the Trust may be authorized by the Board, subject to the provisions of law and the Declaration of Trust. Dividends and other distributions may be paid in cash, property or shares of beneficial interest of the Trust, subject to the provisions of law and the Declaration of Trust.

Section 9.2. <u>CONTINGENCIES</u>. Before payment of any dividends or other distributions, there may be set aside out of any assets of the Trust available for dividends or other distributions such sum or sums as the Board may from time to time, in its sole and absolute discretion, think proper as a reserve fund for contingencies, for equalizing dividends, for repairing or maintaining any property of the Trust or for such other purpose as the Board shall determine, and the Board may modify or abolish any such reserve.

**ARTICLE X**

**SEAL**

Section 10.1. <u>SEAL</u>. The Board may authorize the adoption of a seal by the Trust. The seal, if any, shall contain the name of the Trust and the year of its formation and the words "Formed Maryland." The Board may authorize one or more duplicate seals and provide for the custody thereof.

Section 10.2. <u>AFFIXING SEAL</u>. Whenever the Trust is permitted or required to affix its seal to a document, it shall be sufficient to meet the requirements of any law, rule or regulation relating to a seal to place the word "(SEAL)" adjacent to the signature of the person authorized to execute the document on behalf of the Trust.

**ARTICLE XI**

**WAIVER OF NOTICE**

Whenever any notice is required to be given pursuant to the Declaration of Trust or these Bylaws or pursuant to applicable law, a waiver thereof in writing or by electronic transmission, given by the person or persons entitled to such notice, whether before or after the time stated therein, shall be deemed equivalent to the giving of such notice. Neither the business to be transacted at nor the purpose of any meeting need be set forth in the waiver of notice of such meeting, unless specifically required by statute. The attendance of any person at any meeting shall constitute a waiver of notice of such meeting, except where such person attends a meeting for the express purpose of objecting to the transaction of any business on the ground that the meeting has not been lawfully called or convened.

**ARTICLE XII**

**AMENDMENT OF BYLAWS**

The Board shall have the exclusive power, at any time, to adopt, amend, alter or repeal any provision of these Bylaws and to make new Bylaws.

**ARTICLE XIII**

**INVESTMENT POLICY**

Subject to the provisions of the Declaration of Trust, the Board may from time to time adopt, amend, revise or terminate any policy or policies with respect to investments by the Trust as it shall deem appropriate in its sole discretion.

**ARTICLE XIV**

**EXCLUSIVE FORUM FOR CERTAIN LITIGATION**

**ARTICLE XV**

**MISCELLANEOUS**

All references to the Declaration of Trust shall include all amendments, supplements and corrections thereto and any restatements thereof.

## Exhibit 4.1

**Exhibit 4.1**

 **DISTRIBUTION REINVESTMENT PLAN**

Effective November 18, 2025

This Distribution Reinvestment Plan (the "<u>Plan</u>") is adopted by Rithm Perpetual Life Residential Trust, a Maryland statutory trust (the "<u>Trust</u>"), with respect to cash distributions declared by its Board of Trustees (the "<u>Board</u>") on the Trust's common shares of beneficial interest, $0.01 par value per share ("<u>Common Shares</u>"), which are classified as Class S Common Shares, Class T Common Shares, Class D Common Shares, Class I Common Shares, Class J Common Shares, Class J-2 Common Shares and Class E Common Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Distribution Reinvestment.** As agent for the shareholders (the "<u>Shareholders</u>") of the Trust who elect to participate in the Plan or who are automatically enrolled pursuant to the terms of a subscription for Common Shares, the Trust will apply all dividends and other distributions declared and paid in respect of the Common Shares held by each participating Shareholder (each, a "<u>Participant</u>") and attributable to the class of Common Shares owned by such Participant (the "<u>Distributions</u>"), including Distributions paid with respect to any full or fractional Common Shares acquired under the Plan, to the purchase of additional Common Shares of the same class for such Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Effective Date.** The effective date of this Plan shall be November 18, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Procedure for Participation.** Any Shareholder may elect to become a Participant by completing and executing a subscription agreement for Common Shares (which may provide for automatic enrollment unless such Shareholder opts out), an enrollment form or any appropriate authorization form as may be available from the Trust, the Trust's transfer agent, any dealer manager for an offering of Common Shares or any soliciting dealer participating in the distribution of Common Shares for an offering. Participation in the Plan will begin with the next Distribution payable after acceptance of a Participant's subscription, enrollment or authorization. Common Shares will be purchased under the Plan on the date that Distributions are paid by the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Suitability.** Each Participant agrees that if such Participant fails to meet the then-current suitability requirements for making an investment in the Trust or cannot make the other representations or warranties as set forth in the Trust's most recent applicable memorandum or subscription agreement, enrollment form or other authorization form, such Participant will promptly so notify the Trust in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Purchase of Common Shares.** Participants will acquire Common Shares (including Common Shares purchased by the Trust for the Plan in a secondary market (if available) or on a stock exchange (if listed)) under the Plan at a price equal to the most recently disclosed transaction price per Common Share applicable to the class of Common Shares owned by the Participant on the record date of the Distribution, which will (prior to listing) generally be the prior month's net asset value per share for such class. No upfront selling commissions or dealer manager fees will be payable with respect to Common Shares purchased pursuant to the Plan, but Class S Common Shares, Class T Common Shares, Class D Common Shares, Class J Common Shares and Class J-2 Common Shares will be subject to ongoing servicing fees, if any. Participants in the Plan may purchase fractional Common Shares so that 100% of the Distributions will be used to acquire Common Shares. However, a Participant will not be able to acquire Common Shares under the Plan and such Participant's participation in the Plan will be terminated to the extent that a reinvestment of such Participant's Distributions in Common Shares would cause the percentage ownership or other limitations contained in the Trust's Declaration of Trust to be violated or to the extent that the Trust determines necessary for purposes of maintaining its status as a "real estate investment trust" for U.S. federal or other income tax purposes. Common Shares to be distributed by the Trust in connection with the Plan will be supplied from shares which may or may not be registered with the Securities and Exchange Commission (the "<u>SEC</u>"). Common Shares that are not registered with the SEC will be subject to transfer restrictions and cannot be sold unless they are subsequently registered under the U.S. Securities Act of 1933, as amended (the "<u>Securities Act</u>"), or an exemption from registration is available.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **Distributions Excluded from Plan.** Notwithstanding anything herein to the contrary, the Board, in its sole discretion, may elect to designate certain Distributions as ineligible for reinvestment through the Plan, without notice to Participants, without suspending this Plan and without affecting the future operation of the Plan with respect to Participants. In addition, unless the Board, in its sole discretion, determines otherwise, after two years from the date of purchase of the first Class J Common Shares, Distributions on Class J Common Shares will be ineligible for reinvestment through the Plan. If a Distribution is designated as ineligible for reinvestment through the Plan, the Participant will receive such Distribution in cash at the address on file with the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **Taxes.** THE REINVESTMENT OF DISTRIBUTIONS DOES NOT RELIEVE A PARTICIPANT OF ANY INCOME OR WITHHOLDING TAX LIABILITY THAT MAY BE PAYABLE ON THE DISTRIBUTIONS. Investors are urged to consult their own tax advisors regarding the tax consequences to them of PARTICIPATING IN THE PLAN.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **Common Share Certificates.** The ownership of Common Shares purchased through the Plan will be in book-entry form unless and until the Trust issues certificates for its outstanding Common Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **Reports.** On a quarterly basis, the Trust shall provide each Participant a statement of account describing, as to such Participant: (a) the Distributions reinvested during the quarter; (b) the number and class of Common Shares purchased pursuant to the Plan during the quarter; (c) the per share purchase price for such Common Shares; and (d) the total number of Common Shares purchased on behalf of the Participant under the Plan. On an annual basis, tax information with respect to income earned on Common Shares under the Plan for the calendar year will be provided to each applicable participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **Termination by Participant.** A Participant may terminate participation in the Plan at any time, without penalty, by delivering at least 10 business days' prior written notice (which may be electronic) to the Trust. This notice must be received by the Trust 10 business days prior to a Distribution payment date in order for a Participant's termination to be effective for such Distribution payment date. Any transfer of Common Shares by a Participant to a non-Participant will terminate participation in the Plan with respect to the transferred Common Shares. If a Participant requests that the Trust repurchase all or any portion of the Participant's Common Shares, the Participant's participation in the Plan with respect to the Participant's Common Shares for which repurchase was requested but that were not repurchased will be terminated. If a Participant terminates Plan participation, the Trust may, at its option, ensure that the terminating Participant's account will reflect the whole number of shares in such Participant's account and provide a check for the cash value of any fractional share in such account. Upon termination of Plan participation for any reason, future Distributions will be distributed to the Shareholder in cash or in such other manner as determined by the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **Amendment, Suspension or Termination by the Trust.** The terms and conditions of the Plan may be amended or supplemented by the Trust at any time; provided that the Plan cannot be amended to eliminate a Participant's right to terminate participation in the Plan and that notice of any material amendment must be provided to Participants at least 10 business days prior to the effective date of that amendment. The Trust may suspend or terminate the Plan for any reason upon 10 business days' written notice to the Participants. Any notice required by this Section 11 may be satisfied by the Trust disclosing to shareholders in a supplement to the applicable memorandum (or post-effective amendment if required by the Securities Act) or current or periodic report filed by the Trust with the SEC if the Trust has a class of securities registered under the U.S. Exchange Act of 1934, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. **Liability of the Trust.** The Trust shall not be liable for any act done in good faith, or for any good faith omission to act, including, without limitation, any claims or liability (a) arising out of failure to terminate a Participant's account upon such Participant's death prior to timely receipt of notice in writing of such death or (b) with respect to the time and the prices at which Common Shares are purchased or sold for a Participant's account.

## Exhibit 4.2

**Exhibit 4.2**

 **SHARE REPURCHASE PLAN (THIS "<u>PLAN</u>")**

Effective as of November 18, 2025

**Definitions**

"<u>Adviser</u>" shall mean RCM GA Manager LLC, a Delaware limited liability company.

"<u>Class D common shares</u>" shall mean the Trust's common shares of beneficial interest classified as Class D.

"<u>Class E common shares</u>" shall mean the Trust's common shares of beneficial interest classified as Class E.

"<u>Class I common shares</u>" shall mean the Trust's common shares of beneficial interest classified as Class I.

"<u>Class J common shares</u>" shall mean the Trust's common shares of beneficial interest classified as Class J.

"<u>Class J-2 common shares</u>" shall mean the Trust's common shares of beneficial interest classified as Class J-2.

"<u>Class S common shares</u>" shall mean the Trust's common shares of beneficial interest classified as Class S.

"<u>Class T common shares</u>" shall mean the Trust's common shares of beneficial interest classified as Class T.

"<u>Code</u>" shall mean the Internal Revenue Code of 1986, as amended.

"<u>common shares</u>" shall mean the Class S common shares, Class T common shares, Class D common shares, Class I common shares, Class J common shares, Class J-2 common shares and Class E common shares, individually and collectively, and as applicable.

"<u>NAV</u>" shall mean the net asset value of the Trust attributable to its Shareholders or the net asset value of a class of its shares, as the context requires, determined in accordance with the Trust's Net Asset Value Calculation and Valuation Guidelines as described in the Trust's Private Placement Memorandum, as may be amended and/or supplemented from time to time.

"<u>REIT</u>" means a real estate investment trust within the meaning of Sections 856-859 of the Code.

"<u>Shareholders</u>" shall mean the holders of Class S common shares, Class T common shares, Class D common shares, Class I common shares, Class J common shares, Class J-2 common shares and Class E common shares.

"<u>Transaction Price</u>" shall mean the repurchase price per share for each class of common shares, which shall be equal to the then-current offering price before applicable selling commissions and dealer manager fees.

"<u>Trust</u>" shall mean Rithm Perpetual Life Residential Trust, a Maryland statutory trust.

**Share Repurchase Plan**

Shareholders may request that the Trust repurchase the Trust's common shares through their investment professional or directly with the Trust's transfer agent. The procedures relating to the repurchase of the Trust's common shares are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Certain financial intermediaries require that
their clients process repurchases through their financial intermediary, which may impact the time necessary to process such repurchase
request, impose more restrictive deadlines than described under this Plan, impact the timing of a Shareholder receiving repurchase proceeds
and require different paperwork or process than described in this Plan. Shareholders should contact their financial intermediary first
if they want to request the repurchase of their common shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Under this Plan, to the extent the Trust chooses
to repurchase common shares in any particular month , the Trust will only repurchase common
shares as of the opening of the last calendar day of that month (each such date, a " <u>Repurchase Date</u> "), and the Shareholders
will not receive any distributions for such common shares for the month in which their common shares are repurchased. To have common shares
repurchased, a Shareholder's repurchase request and required documentation must be received in good order by 4:00 p.m. (Eastern
Time) on the second to last business day of the applicable month. Settlements of share repurchases will generally be made within three
business days of the Repurchase Date. Repurchase requests received and processed by the Trust's transfer agent will be effected
at a repurchase price equal to the Transaction Price on the applicable Repurchase Date (which will generally be equal to the Trust's
prior month's NAV per share of the applicable class of common stock), subject to any Early Repurchase Deduction (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· A Shareholder may withdraw his or her repurchase
request by completing a repurchase withdrawal form and sending the form by mail to the transfer agent, directly or through the Shareholder's
financial intermediary, or through the transfer agent's online portal (when implemented). Repurchase requests must be canceled before
4:00 p.m. (Eastern Time) on the second to last business day of the applicable month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· If a repurchase request is received after 4:00
p.m. (Eastern Time) on the second to last business day of the applicable month, the repurchase request will be executed, if at all,
on the next month's Repurchase Date at the Transaction Price applicable to that month (subject to any Early Repurchase Deduction),
unless such request is withdrawn prior to the repurchase. Repurchase requests received and processed by the Trust's transfer agent
on a business day, but after the close of business on that day or on a day that is not a business day, will be deemed received on the
next business day. All questions as to the form and validity (including time of receipt) of repurchase requests and notices of withdrawal
will be determined by the Trust, in its sole discretion, and such determination shall be final and binding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Repurchase requests may be made by mail or by
contacting a Shareholder's financial intermediary, both subject to certain conditions described in this Plan. If making a repurchase
request by contacting a Shareholder's financial intermediary, a Shareholder's financial intermediary may require a Shareholder
to provide certain documentation or information. If making a repurchase request by mail to the transfer agent, a Shareholder must complete
and sign a repurchase authorization form, which can be found at the end of this Plan. Written requests should be sent to the transfer
agent at the following address:

Rithm Perpetual Life Residential Trust

c/o Computershare, as Processing Agent

150 Royall Street, Suite V

Canton, MA 02021

Overnight Address:

Rithm Perpetual Life Residential Trust

c/o Computershare, as Processing Agent

150 Royall Street, Suite V

Canton, MA 02021

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Corporate investors and other non-individual
entities must have an appropriate certification on file authorizing repurchases. A signature guarantee may be required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· For processed repurchases, repurchase proceeds
are to be paid either via check or wire, based upon the instruction indicated at the time of the repurchase request. To the extent a shareholder
requests payment via wire, the shareholder will provide the transfer agent with the appropriate wire instructions for the specific repurchase.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· A medallion signature guarantee will be required
in certain circumstances. The medallion signature process protects Shareholders by verifying the authenticity of a signature and limiting
unauthorized fraudulent transactions. A medallion signature guarantee may be obtained from a domestic bank or trust company, broker-dealer,
clearing agency, savings association or other financial institution which participates in a medallion program recognized by the Securities
Transfer Association. The three recognized medallion programs are the Securities Transfer Agents Medallion Program, the Stock Exchanges
Medallion Program and the New York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees from financial institutions
that are not participating in any of these medallion programs will not be accepted. A notary public cannot provide signature guarantees.
The Trust reserves the right to amend, waive or discontinue this policy at any time and establish other criteria for verifying the authenticity
of any repurchase or transaction request. The Trust may require a medallion signature guarantee if, among other reasons: (1) the
amount of the repurchase request is over $500,000; or (2) the Trust's transfer agent cannot confirm your identity or suspects
fraudulent activity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· If a Shareholder has made multiple purchases
of the Trust's common shares, any repurchase request will be processed on a first in/first out basis unless otherwise requested
in the repurchase request.

***Minimum Account*** ***Repurchases***

In the event that any Shareholder fails to maintain the minimum balance of $500 of common shares, the Trust may repurchase all of the Trust's common shares held by that Shareholder at the repurchase price in effect on the date the Trust determines that the Shareholder has failed to meet the minimum balance, less any Early Repurchase Deduction.

Minimum account repurchases will apply even in the event that the failure to meet the minimum balance is caused solely by a decline in the Trust's NAV. Minimum account repurchases are subject to the Early Repurchase Deduction.

***Sources of*** ***Funds for Repurchases***

Unless the Trust's board of trustees determines otherwise, the Trust may fund repurchase requests from sources other than cash flow from operations, including, without limitation, borrowings, offering proceeds (including from sales of the Trust's common shares), the sale of the Trust's assets, and repayments of the Trust's real estate debt investments, and the Trust has no limits on the amounts the Trust may fund from such sources.

In an effort to have adequate cash available to support this Plan and to fund investments, the Trust may reserve borrowing capacity under a line of credit. The Trust could then elect to borrow against this line of credit in part to repurchase common shares presented for repurchase during periods when the Trust does not have sufficient proceeds from operating cash flows or the sale of shares to fund all repurchase requests.

***Repurchase***  ***Limitations***

The Trust may repurchase fewer common shares than have been requested in any particular month to be repurchased under this Plan, or none at all, in the Trust's discretion at any time. In addition, the aggregate NAV of total repurchases of the Trust's common shares is limited to no more than 2% of the Trust's aggregate NAV per month (measured using the aggregate NAV as of the end of the immediately preceding month) and no more than 5% of the Trust's aggregate NAV per calendar quarter (measured using the average aggregate NAV as of the end of the previous calendar quarter).

Subject to the Trust's right to decline any repurchase request by a Shareholder, in the event that the Trust determines to repurchase some but not all of the Trust's common shares submitted for repurchase by all Shareholders during any month, common shares repurchased at the end of the month will be repurchased on a pro rata basis based on the number of common shares requested to be repurchased in such month after the Trust has repurchased all common shares for which repurchase has been requested due to death or disability and other limited exceptions as determined by the Trust. All unsatisfied repurchase requests must be resubmitted after the start of the next month or quarter, or upon the recommencement of this Plan, as applicable.

In the unlikely case that the repurchase price for the applicable month is not made available by the tenth business day prior to the last business day of such month (or is changed after such date), then no repurchase requests will be accepted for such month and Shareholders who wish to have their shares repurchased the following month must resubmit their repurchase requests.

Should repurchase requests, in the Trust's judgment, place an undue burden on the Trust's liquidity, adversely affect the Trust's operations or risk having an adverse impact on the Trust as a whole, or should the Trust otherwise determine that investing the Trust's liquid assets in investments rather than repurchasing the Trust's common shares is in the best interests of the Trust as a whole, the Trust may choose to repurchase fewer common shares than have been requested to be repurchased, or none at all. Further, the Trust's board of trustees may make exceptions to, modify or suspend this Plan if in its reasonable judgment it deems such action to be in the Trust's best interest (including to make exceptions to the repurchase limitations or Early Repurchase Deduction, or repurchase fewer shares than such repurchase limitations). Material modifications to this Plan, including any amendment to the 2% monthly or 5% quarterly limitations on repurchases and to suspensions of this Plan, will be promptly disclosed to Shareholders' investment professionals. In addition, the Trust may determine to suspend this Plan due to regulatory changes, changes in law, if prudent to retain the Trust's status as a REIT, or if the Trust becomes aware of undisclosed material information that the Trust believes should be publicly disclosed before common shares are repurchased. Once this Plan is suspended, the Trust must consider the recommencement of this Plan at least quarterly. Continued suspension of this Plan is only permitted if the Trust's board of trustees determines that the continued suspension of this Plan is in the Trust's best interest. The Trust's board of trustees must affirmatively authorize the recommencement of this Plan before Shareholder requests will be considered again. While the Trust's board of trustees may suspend this Plan as described above, including for extended periods, the Trust's board of trustees cannot fully terminate this Plan absent a liquidity event which results in the Trust's Shareholders receiving cash or securities listed on a national securities exchange or where otherwise required by law.

The Trust may decline any repurchase request by a Shareholder if the Trust believes the repurchase (1) would not qualify for sale or exchange treatment under Section 302(b) of the Code or (2) would otherwise negatively affect any other Shareholder or negatively affect the Trust's status as a REIT. The Shareholder agrees to provide to the Trust any information reasonably requested by the Trust to enable it to determine whether a repurchase requested by the Shareholder would qualify for sale or exchange treatment under Section 302(b) of the Code or would otherwise negatively affect any other Shareholder or negatively affect the Trust's status as REIT.

Common shares held by the Adviser or its affiliates purchased from the Trust or acquired as payment of the Adviser's management fee or performance fee or as reimbursements of expenses will not be subject to this Plan, including the repurchase limits and any Early Repurchase Deduction, and will not be subject to the calculation of NAV for purposes of this Plan's monthly or quarterly limits. Shareholders who are exchanging a class of the Trust's common shares for an equivalent aggregate NAV of another class of the Trust's common shares will not be subject to, and such exchange will not be treated as repurchases for the calculation of, the 2% monthly or 5% quarterly limitation on repurchases and will not be subject to the Early Repurchase Deduction.

***Early Repurchase Deduction***

The repurchase price for repurchases will generally be based on the NAV per share of the applicable class as of the last calendar day of the prior month, except that shares tendered for repurchase within the first 12 months of issuance will be repurchased at 95% of the Transaction Price (the "<u>Early Repurchase Deduction</u>"). The holding period is measured as of the closing date immediately preceding the prospective Repurchase Date. This Early Repurchase Deduction will also generally apply to minimum account repurchases. The Early Repurchase Deduction will not apply to common shares acquired through the Trust's distribution reinvestment plan.

The Early Repurchase Deduction will inure indirectly to the benefit of the Trust's remaining Shareholders and is intended to offset the trading costs, market impact and other costs associated with short-term trading in the Trust's common shares. Subject to the Trust's ability to meet the applicable REIT tax requirements, the Trust may, from time to time, waive the Early Repurchase Deduction in the following circumstances (subject to the conditions described below):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· repurchases resulting from death or qualifying
disability; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· in the event that a Shareholder's common
shares are repurchased because the Shareholder has failed to maintain the $500 minimum account balance.

As set forth above, subject to the Trust's ability to meet the applicable REIT tax requirements, the Trust may waive the Early Repurchase Deduction in respect of repurchase of common shares resulting from the death or qualifying disability (as such term is defined in Section 72(m)(7) of the Code) of a Shareholder who is a natural person, including common shares held by such Shareholder through a trust or an individual retirement account or other retirement or profit-sharing plan, after (1) in the case of death, receiving written notice from the estate of the Shareholder, the recipient of the Trust's common shares through bequest or inheritance, or, in the case of a trust, the trustee of such trust, who shall have the sole ability to request repurchase on behalf of the trust, or (2) in the case of qualified disability, receiving written notice from such Shareholder along with a physician's certification of disability as defined in Section 72(m)(7) of the Code, provided that the condition causing the qualifying disability was not pre-existing on the date that the Shareholder became a Shareholder. The Trust must receive the written repurchase request within 12 months after the death of the Shareholder or the initial determination of the Shareholder's disability in order for the requesting party to rely on any of the special treatment described above that may be afforded in the event of the death or disability of a Shareholder. In the case of death, such a written request must be accompanied by a certified copy of the official death certificate of the Shareholder. If spouses are joint registered holders of common shares, the request to have the Trust's common shares repurchased may be made if either of the registered holders dies or acquires a qualified disability. If the Shareholder is not a natural person, such as certain trusts or a partnership, corporation or other similar entity, the right to waiver of the Early Repurchase Deduction upon death or disability does not apply.

In addition, the Trust may also offer Class I Shares to certain feeder vehicles primarily created to hold the Trust's Class I Shares, which in turn offer interests in themselves to investors. For such feeder vehicles and similar arrangements in certain markets, subject to the Trust's ability to meet the applicable REIT tax requirements, the Trust may agree not to apply the Early Repurchase Deduction to the feeder vehicles or underlying investors, often because of administrative or systems limitations.

Further, subject to the Trust's ability to meet the applicable REIT tax requirements, the Trust may not apply the Early Repurchase Deduction on repurchases of the Trust's common shares submitted by discretionary model portfolio programs (and similar arrangements) as approved by the Trust.

***Items of Note***

When Shareholders make a request to have common shares repurchased, Shareholders should note the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· if Shareholders are requesting that some but
not all of their common shares be repurchased, Shareholders should keep their balance above $500 to avoid minimum account repurchase,
if applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Shareholders will not receive interest on amounts
represented by uncashed repurchase checks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· under applicable anti-money laundering regulations
and other federal regulations, repurchase requests may be suspended, restricted or canceled and the proceeds may be withheld; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· all common shares requested to be repurchased
must be beneficially owned by the Shareholder of record making the request or his or her estate, heir or beneficiary, or the party requesting
the repurchase must be authorized to do so by the Shareholder of record of the Trust's common shares or his or her estate, heir
or beneficiary, and such common shares must be fully transferable and not subject to any liens or encumbrances. In certain cases, the
Trust may ask the requesting party to provide evidence satisfactory to the Trust that the Trust's common shares requested for repurchase
are not subject to any liens or encumbrances. If the Trust determines that a lien exists against the Trust's common shares, the
Trust will not be obligated to repurchase any common shares subject to the lien.

U.S. Internal Revenue Service regulations require the Trust to determine and disclose on Form 1099-B the adjusted cost basis for the Trust's common shares sold or repurchased. The Trust may, in its discretion, utilize the first-in-first-out method for determining the adjusted cost basis.

**Frequent Trading and Other Policies**

The Trust may reject for any reason, or cancel as permitted or required by law, any purchase or repurchase orders for the Trust's common shares. For example, the Trust may reject any purchase orders from market timers or investors that, in the Trust's opinion, may be disruptive to the Trust's operations. Frequent purchases, repurchases and sales of the Trust's common shares can harm Shareholders in various ways, including reducing the returns to long-term Shareholders by increasing the Trust's costs, disrupting portfolio management strategies and diluting the value of the Trust's common shares of long-term Shareholders.

In general, Shareholders may request that the Trust repurchase their common shares once every 30 days. However, the Trust prohibits frequent trading. The Trust defines frequent trading as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· any Shareholder who requests that the Trust repurchase
common shares within 30 calendar days of the purchase of such common shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· transactions deemed harmful or excessive by the
Trust (including, but not limited to, patterns of purchases and repurchases), in the Trust's sole discretion; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· transactions initiated by investment professionals,
among multiple Shareholder accounts, that in the aggregate are deemed harmful or excessive.

The following are excluded when determining whether transactions are excessive:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· purchases and requests for repurchase of the
Trust's common shares in the amount of $2,500 or less;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· purchases or repurchases initiated by the Trust;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· transactions subject to the trading policy of
an intermediary that the Trust deem materially similar to the Trust's policy.

At the Trust's discretion, upon the first violation of the policy in a calendar year, purchase and repurchase privileges may be suspended for 90 days. Upon a second violation in a calendar year, purchase and repurchase privileges may be suspended for 180 days. On the next business day following the end of the 90- or 180-day suspension, any transaction restrictions placed on a Shareholder may be removed.

**Tax Withholding**

If any amount is required to be deducted or withheld from any payment to any Shareholder pursuant to this Plan, as determined by the Trust, such amount shall reduce the amount otherwise distributable to such Shareholder. The amount of any such withholding tax imposed with respect to any Shareholder shall be treated as distributed to such Shareholder for all purposes of this Plan.

**Mail and Telephone Instructions**

The Trust and its transfer agent will not be responsible for the authenticity of mail or phone instructions or losses, if any, resulting from unauthorized Shareholder transactions if they reasonably believe that such instructions were genuine. The Trust's transfer agent has established reasonable procedures to confirm that instructions are genuine including requiring the Shareholder to provide certain specific identifying information on file and sending written confirmation to Shareholders of record. Shareholders, or their designated custodian or fiduciary, should carefully review such correspondence to ensure that the instructions were properly acted upon. If any discrepancies are noted, the Shareholder, or its agent, should contact his, her or its investment professional as well as the Trust's transfer agent in a timely manner, but in no event more than 60 days from receipt of such correspondence. Failure to notify such entities in a timely manner will relieve the Trust, its transfer agent and the investment professional of any liability with respect to the discrepancy.

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| ![](tm2527160d4_ex4-2img001.jpg) | **REPURCHASE AUTHORIZATION**<br> **<u>FOR Rithm Perpetual Life Residential Trust</u>** |

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Use this form to request repurchase of your shares in Rithm Perpetual Life Residential Trust ("<u>Trust</u>"). Please complete all sections below. Capitalized terms not defined herein shall have the meaning ascribed to them in the Share Repurchase Plan (the "Plan") of the Trust.

**1. REPURCHASE FROM THE FOLLOWING ACCOUNT**

&nbsp;&nbsp;Name(s) on the Account:

Account Number: <u>Social Security Number/TIN:</u>

Financial Advisor Name: <u>Financial Advisor Phone Number:</u>

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|:---|:---|
| **2. REPURCHASE AMOUNT** *(Check one, required)*<br> ◻ All Shares<br> ◻ Number of Shares ___________________________________<br> ◻ Dollar Amount $____________________________________ | **3. REPURCHASE TYPE** *(Check one, required)*<br> ◻ Normal<br> ◻ Death<br> ◻ Disability |

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*Additional documentation is required if repurchasing due to death or disability. Contact Investor Relations for detailed instructions at (212) 850-7770.*

**4. REPURCHASE QUESTION** *(Select only one)*

Indicate which of the following accurately describes the repurchase of your common shares pursuant to this repurchase request (taking into account the attribution rules under Section 318(a) of the Internal Revenue Code of 1986, as amended, as reflected in **Exhibit A**):

◻ The repurchase is in complete redemption of all of the common shares of the Trust owned by you

◻ Each of the following is satisfied: (i) your percentage ownership of the outstanding voting shares in the Trust is reduced immediately after the repurchase to less than 80% of your percentage interest in such shares immediately before the repurchase; (ii) your percentage ownership of the outstanding common shares (whether voting or nonvoting) in the Trust is reduced immediately after the repurchase to less than 80% of your percentage interest in such shares immediately before the repurchase; and (iii) you own, immediately after the repurchase, less than 50% of the total combined voting power of all classes of shares of the Trust entitled to vote

◻ None of the above

**5. PAYMENT INSTRUCTIONS** *(Select only one)*

Indicate how you wish to receive your repurchase payment below. If an option is not selected, a check will be sent to your address of record. Repurchase proceeds for qualified accounts, including individual retirement accounts and other custodial accounts, and certain broker-controlled accounts as required by your broker/dealer of record, will automatically be issued to the custodian or broker/dealer of record, as applicable. ***All custodial held and broker-controlled accounts must include the custodian and/or broker/dealer signature.***

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|:---|:---|
| **◻** | **Cash/Check Mailed to Address of Record** |

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| | |
|:---|:---|
| **◻** | **Cash/Check Mailed to Third Party/Custodian *(Signature Guarantee required)*** |

---

---

| | |
|:---|:---|
| **◻** | **I authorize the Trust or its agent to deposit my distribution into my checking or savings account. In the event that the Trust deposits funds erroneously into my account, they are authorized to debit my account for an amount not to exceed the amount of the erroneous deposit.** |

---

<u>Name / Entity Name / Financial Institution:</u> <u>Mailing Address:</u>

<u>City: </u> <u>State:</u> <u>Zip Code:</u> <u>Account Number:</u>

---

| | |
|:---|:---|
| **◻** | **Cash/Direct Deposit Attach a <u>pre-printed voided check.</u> *(Non-Custodian Investors Only)*** |

---

**I authorize the Trust or its agent to deposit my distribution into my checking or savings account. In the event that the Trust deposits funds erroneously into my account, they are authorized to debit my account for an amount not to exceed the amount of the erroneous deposit.**

<u>Financial Institution Name:</u> <u>Mailing Address:</u> <u>City: </u> <u>State:</u>

<u>Your Bank's ABA Routing Number:</u> <u>Your Bank Account Number:</u>

**PLEASE ATTACH A PRE-PRINTED VOIDED CHECK**

**6. SHARE REPURCHASE PLAN CONSIDERATIONS *(Select only one)***

Our share repurchase plan contains limitations on the number of shares that can be repurchased under the plan during any month and calendar quarter. In addition to these limitations, we cannot guarantee that we will have sufficient funds to accommodate all repurchase requests made in any applicable repurchase period, and we may elect to repurchase fewer shares than have been requested in any particular month, or none at all. If the number of shares subject to repurchase requests exceeds the then applicable limitations, or if we otherwise do not make all requested repurchases, subject to the Trust's right to decline any repurchase request by a shareholder, each shareholder's request will be reduced on a pro rata basis. For purposes of calculating the monthly and quarterly limits, the repurchase price will be deemed to be the price before any early repurchase deduction. If repurchase requests are reduced on a pro rata basis, you may elect (at the time of your repurchase request) to either withdraw your entire request for repurchase or have your request honored on a pro-rata basis. If you wish to have the remainder of your initial request repurchased, you must resubmit a new repurchase request for the remaining amount. **Please select one of the following options below. If an option is not selected, your repurchase request will be processed on a pro-rata basis, if needed.**

◻ Process my repurchase request on a pro-rata basis.

---

| | |
|:---|:---|
| ◻ | Withdraw (do not process) my entire repurchase request if amount will be reduced on a pro-rata basis. |

---

**7. AUTHORIZATION AND SIGNATURE**

**IMPORTANT: Signature Guarantee may be required if any of the following applies:**

· Amount to be repurchased is $500,000 or more.

· The repurchase is to be sent to an address other
than the designated bank or brokerage account on file for at least 30 days or sent to an address other than your address of record for
the past 30 days.

· Our transfer agent cannot confirm your identity
or suspects fraudulent activity.

· If name has changed from the name in the account
registration, we must have a one-and-the-same name signature guarantee. A one-and-the-same signature guarantee must state " is one-and-the-same as " and you must sign your old and new name.

· The repurchase proceeds are deposited directly
according to banking instructions provided on this form. *(Non-Custodial Investors Only)* 

<u>Investor Name (Please Print): </u> <u>Signature:</u> <u>Date:</u>

<u>Co-Investor Name (Please Print): </u> <u>Signature:</u> <u>Date:</u>

---

| | |
|:---|:---|
| **Signature Guarantee**<br> *(Affix Medallion or Signature Guarantee Stamp*<br> *Below)* | **Custodian and/or Broker/Dealer Authorization**<br> *(if applicable)* |
| **Signature Guarantee**<br> *(Affix Medallion or Signature Guarantee Stamp*<br> *Below)* | Signature of Authorized Person |

---

\* Please refer to our Plan, which can be obtained by contacting your financial representative. The repurchase price will be available to your financial representative. There are various limitations on your ability to request that we repurchase your shares, including, subject to certain exceptions, an early repurchase deduction. The total amount of aggregate repurchases of shares of our common shares will be limited to no more than 2% of the Trust's aggregate net asset value ("<u>NAV</u>") per month (measured using the aggregate NAV as of the end of the immediately preceding month) and 5% of the Trust's aggregate NAV per calendar quarter (measured using the aggregate NAV as of the end of the previous calendar quarter). Our board of trustees may make exceptions to, modify or suspend our share repurchase plan if in its reasonable judgment it deems such action to be in our best interest (including to make exceptions to the repurchase limitations or early repurchase deduction, or repurchase fewer common shares than such repurchase limitations). Material modifications to our share repurchase plan, including any amendment to the 2% monthly or 5% quarterly limitation on repurchases and to suspensions of our share repurchase plan, will be promptly disclosed to shareholders' investment professionals. Repurchase of shares, when requested, will generally be made monthly; provided however, that the board of trustees may determine from time to time to adjust the timing of repurchases. All requests for repurchases must be received in good order by 4:00 p.m. (Eastern Time) on the second to last business day of the applicable month. A shareholder may withdraw his or her repurchase request by completing a repurchase withdrawal form and sending the form to the transfer agent, directly or through the shareholder's financial intermediary. Repurchase requests must be canceled before 4:00 p.m. (Eastern Time) on the last business day of the applicable month. We cannot guarantee that we will have sufficient funds to accommodate all repurchase requests made in any applicable repurchase period, and we may elect to repurchase fewer shares than have been requested in any particular month, or none at all. All questions as to the form and validity (including time of receipt) of repurchase requests and notices of withdrawal will be determined by us, in our sole discretion, and such determination shall be final and binding.

**Mail to:** Rithm Perpetual Life Residential Trust

c/o Computershare, as Processing Agent

150 Royall Street, Suite V

Canton, MA 02021

**Overnight Delivery:** Rithm Perpetual Life Residential Trust

c/o Computershare, as Processing Agent

150 Royall Street, Suite V

Canton, MA 02021

**Investor Relations:** Rithm Perpetual Life Residential Trust

c/o Computershare, as Processing Agent

150 Royall Street, Suite V

Canton, MA 02021

**Exhibit A**

**Section 318(a) General Rule**

**318(a)(1) Members Of Family**

**318(a)(1)(A) In General** — An individual shall be considered as owning the stock owned, directly or indirectly, by or for—

**318(a)(1)(A)(i)** — his spouse (other than a spouse who is legally separated from the individual under a decree of divorce or separate maintenance), and

**318(a)(1)(A)(ii)** — his children, grandchildren, and parents.

**318(a)(1)(B) Effect Of Adoption** — For purposes of subparagraph (A)(ii), a legally adopted child of an individual shall be treated as a child of such individual by blood.

**318(a)(2) Attribution From Partnerships, Estates, Trusts, And Corporations**

**318(a)(2)(A) From Partnerships And Estates** — Stock owned, directly or indirectly, by or for a partnership or estate shall be considered as owned proportionately by its partners or beneficiaries.

**318(a)(2)(B) From Trusts**

**318(a)(2)(B)(i)** — Stock owned, directly or indirectly, by or for a trust (other than an employees' trust described in Section <u>401(a)</u> which is exempt from tax under Section <u>501(a))</u> shall be considered as owned by its beneficiaries in proportion to the actuarial interest of such beneficiaries in such trust.

**318(a)(2)(B)(ii)** — Stock owned, directly or indirectly, by or for any portion of a trust of which a person is considered the owner under subpart E of part I of subchapter J (relating to grantors and others treated as substantial owners) shall be considered as owned by such person.

**318(a)(2)(C) From Corporations** — If 50 percent or more in value of the stock in a corporation is owned, directly or indirectly, by or for any person, such person shall be considered as owning the stock owned, directly or indirectly, by or for such corporation, in that proportion which the value of the stock which such person so owns bears to the value of all the stock in such corporation.

**318(a)(3) Attribution To Partnerships, Estates, Trusts, And Corporations**

**318(a)(3)(A) To Partnerships And Estates** — Stock owned, directly or indirectly, by or for a partner or a beneficiary of an estate shall be considered as owned by the partnership or estate.

**318(a)(3)(B) To Trusts**

**318(a)(3)(B)(i)** — Stock owned, directly or indirectly, by or for a beneficiary of a trust (other than an employees' trust described in Section <u>401(a)</u> which is exempt from tax under Section <u>501(a))</u> shall be considered as owned by the trust, unless such beneficiary's interest in the trust is a remote contingent interest. For purposes of this clause, a contingent interest of a beneficiary in a trust shall be considered remote if, under the maximum exercise of discretion by the trustee in favor of such beneficiary, the value of such interest, computed actuarially, is 5 percent or less of the value of the trust property.

**318(a)(3)(B)(ii)** — Stock owned, directly or indirectly, by or for a person who is considered the owner of any portion of a trust under subpart E of part I of subchapter J (relating to grantors and others treated as substantial owners) shall be considered as owned by the trust.

**318(a)(3)(C) To Corporations** — If 50 percent or more in value of the stock in a corporation is owned, directly or indirectly, by or for any person, such corporation shall be considered as owning the stock owned, directly or indirectly, by or for such person.

**318(a)(4) Options** — If any person has an option to acquire stock, such stock shall be considered as owned by such person. For purposes of this paragraph, an option to acquire such an option, and each one of a series of such options, shall be considered as an option to acquire such stock.

**318(a)(5) Operating Rules**

**318(a)(5)(A) In General** — Except as provided in subparagraphs <u>(B)</u> and <u>(C)</u>, stock constructively owned by a person by reason of the application of paragraph <u>(1)</u>, <u>(2)</u>, <u>(3)</u>, or <u>(4)</u>, shall, for purposes of applying paragraphs <u>(1)</u>, <u>(2)</u>, <u>(3)</u>, and <u>(4)</u>, be considered as actually owned by such person.

**318(a)(5)(B) Members Of Family** — Stock constructively owned by an individual by reason of the application of paragraph <u>(1)</u> shall not be considered as owned by him for purposes of again applying paragraph <u>(1)</u> in order to make another the constructive owner of such stock.

**318(a)(5)(C) Partnerships, Estates, Trusts, And Corporations** — Stock constructively owned by a partnership, estate, trust, or corporation by reason of the application of paragraph <u>(3)</u> shall not be considered as owned by it for purposes of applying paragraph <u>(2)</u> in order to make another the constructive owner of such stock.

**318(a)(5)(D) Option Rule In Lieu Of Family Rule** — For purposes of this paragraph, if stock may be considered as owned by an individual under paragraph <u>(1)</u> or <u>(4)</u>, it shall be considered as owned by him under paragraph <u>(4)</u>.

**318(a)(5)(E) S Corporation Treated As Partnership** — For purposes of this subsection—

**318(a)(5)(E)(i)** — an S corporation shall be treated as a partnership, and

**318(a)(5)(E)(ii)** — any shareholder of the S corporation shall be treated as a partner of such partnership. The preceding sentence shall not apply for purposes of determining whether stock in the S corporation is constructively owned by any person.

## Exhibit 10.1

**Exhibit 10.1**

**ADVISORY AGREEMENT**

**BETWEEN**

**RITHM PERPETUAL LIFE RESIDENTIAL TRUST**

**AND**

**RCM GA MANAGER LLC**

**TABLE OF CONTENTS**

Page

1. **Definitions** 1

2. **Appointment** 4

3. **Duties of the Adviser** 5

4. **Authority of Adviser** 7

5. **Bank Accounts** 8

6. **Records; Access** 8

7. **Limitations on Activities** 9

8. **Other Activities of the Adviser** 9

9. **Relationship with Trustees and Officers** 11

10. **Compensation** 11

11. **Expenses** 13

12. **Other Services** 17

13. **No Joint Venture** 17

14. **Term** 17

15. **Termination by the Parties** 17

16. **Assignment to an Affiliate** 17

17. **Payments to and Duties of Adviser Upon Termination** 17

18. **Indemnification by the Trust** 18

19. **Indemnification by Adviser** 18

20. **Non-Solicitation** 18

21. **Miscellaneous** 19

i

**<u>ADVISORY AGREEMENT</u>**

**THIS ADVISORY AGREEMENT** (this "<u>Agreement</u>"), dated as of November 18, 2025 (the "<u>Effective Date</u>"), is by and between Rithm Perpetual Life Residential Trust, a Maryland statutory trust (the "<u>Trust</u>"), and RCM GA Manager LLC, a Delaware limited liability company (the "<u>Adviser</u>"). Capitalized terms used herein shall have the meanings ascribed to them in Section 1 below.

**W I T N E S S E T H**

**WHEREAS**, the Trust intends to qualify as a REIT, and to invest its funds in investments permitted by the terms of Sections 856 through 860 of the Code;

**WHEREAS**, the Trust desires to avail itself of the knowledge, experience, sources of information, advice, assistance and certain facilities available to the Adviser and to have the Adviser undertake the duties and responsibilities hereinafter set forth, on behalf of, and subject to the supervision of, the board of trustees of the Trust (the "<u>Board</u>"), all as provided herein; and

**WHEREAS**, the Adviser is willing to undertake to render such services, subject to the supervision of the Board, on the terms and conditions hereinafter set forth.

**NOW, THEREFORE**, in consideration of the foregoing and of the mutual covenants and agreements contained herein, the parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Definitions**. As used in this Agreement, the following terms have the definitions hereinafter indicated:

"<u>Acquisition Expenses</u>" shall mean any and all expenses incurred by the Trust, the Adviser or any of their respective Affiliates either in connection with the selection, evaluation, structuring, acquisition, origination, financing and development of any investments, whether or not acquired, including, without limitation, legal fees and expenses, travel and communications expenses, costs of appraisals, accounting fees and expenses and title insurance premiums and the costs of performing due diligence, as well as expenses of other transactions relating to the investments, including repayments, maturities and workouts.

"<u>Adjusted Capital</u>" shall mean cumulative net proceeds generated from sales of Class S Common Shares, Class T Common Shares, Class D Common Shares, Class I Common Shares and Class J-2 Common Shares (including proceeds from the distribution reinvestment plan) reduced for Distributions from non-liquidating dispositions of its investments paid to Class S, Class T, Class D, Class I and Class J-2 Shareholders and amounts paid to Class S, Class T, Class D, Class I and Class J-2 Shareholders for share repurchases pursuant to the Trust's share repurchase plan.

"<u>Adviser</u>" shall have the meaning set forth in the preamble of this Agreement.

"<u>Adviser Designee</u>" shall have the meaning set forth in Section 9.

"<u>Adviser Expenses</u>" shall have the meaning set forth in Section 11(a).

"<u>Affiliate</u>" shall have the meaning set forth in the Declaration of Trust.

"<u>Agreement</u>" shall have the meaning set forth in the preamble of this Agreement.

"<u>Board</u>" shall have the meaning set forth in the Recitals.

"<u>Bylaws</u>" shall mean the bylaws of the Trust, as amended from time to time.

"<u>CEA</u>" shall mean the U.S. Commodities Exchange Act, as amended.

"<u>Change of Control</u>" shall mean any event (including, without limitation, issue, transfer or other disposition of shares of the Trust, merger, share exchange or consolidation) after which any "person" (as that term is used in Sections 13(d) and 14(d) of the Exchange Act) is or becomes the "beneficial owner" (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Trust representing greater than 50% or more of the combined voting power of Trust's then outstanding securities, respectively; provided that a Change of Control shall not be deemed to occur as a result of any widely distributed offering of the Shares.

"<u>Class D Common Shares</u>" shall have the meaning set forth in the Declaration of Trust.

"<u>Class E Common Shares</u>" shall have the meaning set forth in the Declaration of Trust.

"<u>Class I Common Shares</u>" shall have the meaning set forth in the Declaration of Trust.

"<u>Class J Common Shares</u>" shall have the meaning set forth in the Declaration of Trust.

"<u>Class J-2 Common Shares</u>" shall have the meaning set forth in the Declaration of Trust.

"<u>Class S Common Shares</u>" shall have the meaning set forth in the Declaration of Trust.

"<u>Class T Common Shares</u>" shall have the meaning set forth in the Declaration of Trust.

"<u>Code</u>" shall mean the Internal Revenue Code of 1986, as amended.

"<u>Common Shares</u>" shall have the meaning set forth in the Declaration of Trust.

"<u>Core Earnings</u>" shall mean, for the applicable performance measurement period, the net income (loss) attributable to Shareholders of Class S Common Shares, Class T Common Shares, Class D Common Shares, Class I Common Shares and Class J-2 Common Shares, computed in accordance with GAAP, including realized gains (losses) not otherwise included in GAAP net income (loss) and excluding (i) non-cash equity compensation expense, (ii) the Performance Fee, (iii) depreciation and amortization, (iv) any unrealized gains or losses or other non-cash items that are included in net income for the applicable reporting period, regardless of whether such items are included in other comprehensive income or loss, or in net income, (v) one-time events pursuant to changes in GAAP and (vi) certain non-cash adjustments and certain material non-cash income or expense items, in each case after discussions between the Adviser and the Independent Trustees and approved by a majority of our Independent Trustees. The Adviser shall calculate Core Earnings (after consultation with and approval by our Independent Trustees with respect to the exclusion of certain non-cash items and adjustments). However, the Adviser shall be ultimately and solely responsible for determining Core Earnings.

"<u>Declaration of Trust</u>" shall mean the Amended and Restated Declaration of Trust of the Trust, dated as of November 18, 2025, as it may be amended, supplemented or restated from time to time.

"<u>Distribution Fees</u>" shall mean any distribution fees with respect to Class J Common Shares and Class J-2 Common Shares payable to a third-party pursuant to a placement agreement or similar agreement among such third-party, the Trust and the Adviser.

"<u>Distributions</u>" shall mean any distributions, pursuant to Section 7.6 of the Declaration of Trust, by the Trust to owners of Common Shares, including distributions that may constitute a return of capital for federal income tax purposes.

"<u>Effective Date</u>" shall have the meaning set forth in the preamble of this Agreement.

"<u>Exchange Act</u>" shall mean the U.S. Securities Exchange Act of 1934, as amended.

"<u>Hurdle Rate</u>" shall have the meaning set forth in Section 10(b).

"<u>GAAP</u>" shall mean generally accepted accounting principles as in effect in the United States of America from time to time.

"<u>Independent Compliance Reviewer</u>" shall mean an independent reviewer who has been approved by the Board to review and approve principal transactions under Section 206(3) of the Investment Advisers Act of 1940, as amended.

"<u>Independent Trustee</u>" shall have the meaning set forth in the Declaration of Trust.

"<u>Investment Company Act</u>" shall mean the U.S. Investment Company Act of 1940, as amended.

"<u>Investment Guidelines</u>" shall mean the investment guidelines adopted by the Board, as amended from time to time, pursuant to which the Adviser has discretion to acquire and dispose of investments for the Trust without the prior approval of the Board.

"<u>Management Fee</u>" shall have the meaning set forth in Section 10(a).

"<u>NAV</u>" shall have the meaning set forth in the Declaration of Trust.

"<u>Organization and Offering Expenses</u>" shall have the meaning set forth in the Declaration of Trust.

"<u>Other Rithm Accounts</u>" shall mean collectively, investors, third parties or other businesses, investment vehicles, accounts, arrangements or clients that are sponsored, managed and/or advised by Rithm Capital or its affiliates, including the Adviser.

"<u>Performance Fee</u>" shall have the meaning set forth in Section 10(b).

"<u>Person</u>" shall mean an individual, corporation, business trust, estate, trust, partnership, joint venture, limited liability company or other legal entity.

"<u>Publicly Offered REIT</u>" shall be as defined in Section 562(c)(2) of the Code.

"<u>PPM</u>" shall have the meaning set forth in the Declaration of Trust.

"<u>REIT</u>" shall have the meaning set forth in the Declaration of Trust.

"<u>Rithm affiliate</u>" shall mean all affiliates, partners, members, shareholders, officers, directors, trustees and employees of Rithm Capital.

"<u>Rithm Capital</u>" shall mean, collectively, Rithm Capital Corp., a Delaware corporation, and any Affiliate thereof.

"<u>SEC</u>" shall mean the U.S. Securities and Exchange Commission.

"<u>Securities Act</u>" shall mean the U.S. Securities Act of 1933, as amended.

"<u>Shares</u>" shall have the meaning set forth in the Declaration of Trust.

"<u>Shareholder Servicing Fee</u>" shall mean the ongoing servicing fee as described in the PPM.

"<u>Shareholder</u>" shall have the meaning set forth in the Declaration of Trust.

"<u>Termination Date</u>" shall mean the date of termination of this Agreement or expiration of this Agreement in the event this Agreement is not renewed for an additional term.

"<u>Trustees</u>" shall have the meaning set forth in the Declaration of Trust.

"<u>Trust</u>" shall have the meaning set forth in the preamble of this Agreement.

"<u>Upfront Sales Load</u>" shall have the meaning set forth in the Declaration of Trust.

"<u>Valuation Guidelines</u>" shall mean the valuation guidelines of the Trust as have been adopted by the Board, as amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Appointment**. The Trust hereby appoints the Adviser to serve as its investment adviser on the terms and conditions set forth in this Agreement, and the Adviser hereby accepts such appointment. Except as otherwise provided in this Agreement, the Adviser hereby agrees to use its commercially reasonable efforts to perform the duties set forth herein; provided that the Trust reimburses the Adviser for costs and expenses in accordance with Section 11.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Duties of the Adviser**. Subject to the oversight of the Board and the terms and conditions of this Agreement and the Investment Guidelines and consistent with the provisions of the Trust's most recent PPM, the Declaration of Trust and Bylaws, the Adviser will have plenary authority with respect to the management of the business and affairs of the Trust and will be responsible for implementing the investment strategy of the Trust. The Adviser will use commercially reasonable efforts to perform (or cause to be performed through one or more of its Affiliates or third parties) such services and activities relating to the selection of investments and the rendering of investment advice to the Trust as may be appropriate or otherwise mutually agreed from time to time, which may include, without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) serving as an advisor to the Trust with respect to the establishment and periodic review of the Investment Guidelines for the Trust's investments, financing activities and operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) sourcing, evaluating and monitoring the Trust's investment opportunities and executing the acquisition, origination, management, financing and disposition of the Trust's assets, in accordance with the Investment Guidelines and the Trust's investment policies, strategies, objectives and limitations, subject to oversight by the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) with respect to prospective acquisitions, originations, purchases, sales, exchanges or other dispositions of investments, conducting negotiations on the Trust's behalf with borrowers, sellers, purchasers and other counterparties and, if applicable, their respective agents, advisors and representatives, and determining the structure and terms of such transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) providing the Trust with portfolio management and other related services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) serving as the Trust's advisor with respect to decisions regarding any of the Trust's financings, hedging activities or borrowing, including (i) assisting the Trust in developing criteria for financing that is specifically tailored to the Trust's investment objectives, (ii) advising the Trust with respect to obtaining appropriate financing for the investments (which, in accordance with applicable law and the terms and conditions of this Agreement and the Declaration of Trust and Bylaws, as applicable, may include financing by the Adviser or its Affiliates) and (iii) negotiating and entering into, on the Trust's behalf, financing arrangements (including one or more credit facilities), repurchase agreements, interest rate or currency swap agreements, hedging arrangements, foreign exchange transactions, derivative transactions, and other agreements and instruments required or appropriate in connection with the Trust's activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) engaging and supervising, on the Trust's behalf and at the Trust's expense, independent contractors, advisors, consultants, attorneys, accountants, administrators, auditors, appraisers, independent valuation agents, Independent Compliance Reviewers, escrow agents and other service providers (which may include Affiliates of the Adviser) that provide various services with respect to the Trust, including, without limitation, accounting, investment banking, securities brokerage, mortgage brokerage, valuation services, credit analysis, risk management services, asset management services, loan servicing, other financial, legal or accounting services, due diligence services, underwriting review services, and all other services (including custody and transfer agent and registrar services) as may be required by Trust's activities or investments (or potential investments);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) communicating on the Trust's behalf with the holders of any of the Trust's equity or debt securities, as required to satisfy the reporting and other requirements of any governmental bodies or agencies or trading markets and to maintain effective relations with such holders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) advising the Trust in connection with policy decisions to be made by the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) providing the daily management of the Trust, including performing and supervising the various administrative functions reasonably necessary for the management of the Trust;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) engaging one or more sub-advisors with respect to the management of the Trust, including, where appropriate, Affiliates of the Adviser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) engaging Affiliates or third parties to act as loan servicers with respect to loans held directly or indirectly by the Trust;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) evaluating hedging strategies and engaging in hedging activities on the Trust's behalf, consistent with the Trust's qualification as a REIT and with the Investment Guidelines;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) investing and reinvesting any moneys and securities of the Trust (including investing in short-term investments pending investment in other investments, payment of fees, costs and expenses, or payments of dividends or other Distributions to the Shareholders) and advising the Trust as to its capital structure and capital raising;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) determining valuations for the assets and liabilities of the Trust and calculating the NAV in accordance with the Valuation Guidelines and, in connection therewith, obtaining valuation reports and/or appraisals performed by third-party appraisal firms, as needed, or conducting fair valuation determinations concerning the value of the Trust's assets and liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) providing input in connection with the appraisals of the Trust's investments, as needed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) monitoring the Trust's investments for events that may be expected to have a material impact on the most recent estimated values;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) monitoring each appraiser's or valuation service provider's valuation process to ensure that it complies with the Valuation Guidelines;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) delivering to, or maintaining on behalf of, the Trust copies of valuation reports or appraisals obtained in connection with its investments, if any;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) in the event that the Trust is a commodity pool under the CEA, acting as the Trust's commodity pool operator for the period and on the terms and conditions set forth in this Agreement, including, for the avoidance of doubt, the authority to make any filings, submissions or registrations (including for exemptive or "no action" relief) to the extent required or desirable under the CEA (and the Trust hereby appoints the Adviser to act in such capacity and the Adviser accepts such appointment and agrees to be responsible for such services);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) placing, or arranging for the placement of, orders of investments pursuant to the Adviser's investment determinations for the Trust either directly with the issuer or with a broker or dealer (including any Affiliated broker or dealer);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) making, from time to time, or at any time reasonably requested by the Board, reports to the Board of its performance of services to the Trust under this Agreement, including reports with respect to potential conflicts of interest involving the Adviser or any of its Affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) advising the Trust regarding the Trust's ability to elect REIT status and, thereafter, maintaining the Trust's qualification as a REIT, as well as monitoring compliance with the various REIT qualification tests and other rules set out in the Code and the regulations promulgated thereunder by the U.S. Treasury Department;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) taking all necessary actions to enable the Trust and any subsidiaries thereof to make required tax filings and reports, including soliciting Shareholders for required information to the extent necessary under the Code or regulations promulgated by the U.S. Treasury Department;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) assisting the Trust in maintaining the registration of the Shares under federal and state securities laws, as applicable, with respect to any offering and complying with all federal, state and local regulatory requirements applicable to the Trust with respect to any offering and the Trust's business activities (including the Sarbanes-Oxley Act of 2002, as amended), including, with respect to any offering, preparing or causing to be prepared all supplements to the PPM and financial statements and all reports and documents, if any, required under the Securities Act or the Exchange Act; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) performing such other services from time to time in connection with the management of the Trust's investment activities as the Board shall reasonably request and/or the Adviser shall deem appropriate under the particular circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Authority of Adviser**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Pursuant to the terms of this Agreement (including the restrictions included in this Section 4 and in Section 7), and subject to the continuing and exclusive authority of the Board over the management of the Trust, the Board (by virtue of its approval of this Agreement and authorization of the execution hereof by the officers of the Trust) hereby delegates to the Adviser the authority to take, or cause to be taken, any and all actions and to execute and deliver any and all agreements, certificates, assignments, instruments or other documents and to do any and all things that, in the judgment of the Adviser, may be necessary or advisable in connection with the Adviser's duties described in Section 3, including the making of any investment that fits within the Investment Guidelines and objectives, policies and limitations of the Trust and within the discretionary limits and authority as granted to the Adviser from time to time by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the foregoing, any investment that does not fit within the Investment Guidelines will require the prior approval of the Board or any duly authorized committee of the Board, as the case may be. Except as otherwise set forth herein, in the Investment Guidelines or in the Declaration of Trust, any investment that fits within the Investment Guidelines may be made by the Adviser on the Trust's behalf without the prior approval of the Board or any duly authorized committee of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The prior approval of a majority of the Trustees (including a majority of the Independent Trustees) not otherwise interested in the transaction or, if applicable, an Independent Compliance Reviewer will be required for each transaction to which the Adviser or its Affiliates is a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Board will review the Investment Guidelines periodically, in its discretion, and may, at any time upon the giving of notice to the Adviser, amend the Investment Guidelines; provided, however, that such modification or revocation shall be effective upon receipt by the Adviser or such later date as is specified by the Board and included in the notice provided to the Adviser, and such modification or revocation shall not be applicable to investment transactions to which the Adviser has committed the Trust prior to the date of receipt by the Adviser of such notification, or if later, the effective date of such modification or revocation specified by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Adviser may retain, for and on behalf, and at the sole cost and expense, of the Trust, such services as the Adviser deems necessary or advisable in connection with the management and operations of the Trust, which may include Affiliates of the Adviser or unaffiliated third parties; provided, that any such services may only be provided by Affiliates to the extent such services (i) do not exceed market rates, as determined by the Adviser to be appropriate under the circumstances or (ii) are approved by a majority of the Trustees (including a majority of the Independent Trustees) not otherwise interested in such transactions. In performing its duties under Section 3, the Adviser shall be entitled to rely reasonably on qualified experts and professionals (including, without limitation, accountants, legal counsel and other professional service providers) hired by the Adviser at the Trust's sole cost and expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Bank Accounts**. The Adviser may establish and maintain one or more bank accounts in the name of the Trust and any subsidiary thereof and may collect and deposit into any such account or accounts, and disburse from any such account or accounts, any money on behalf of the Trust, consistent with the Adviser's authority under this Agreement; provided that no funds shall be commingled with the funds of the Adviser; and the Adviser shall from time to time render, upon request by the Board, its audit committee or the auditors of the Trust, appropriate accountings of such collections and payments to the Board, its audit committee and the auditors of the Trust, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **Records; Access**. The Adviser shall maintain, or shall cause to be maintained, appropriate records of its activities hereunder and make such records, or shall cause such records to be made, available for inspection by the Board and by counsel, auditors and authorized agents of the Trust, at any time or from time to time during normal business hours. The Adviser shall at all reasonable times have access to the books and records of the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **Limitations on Activities**. The Adviser shall refrain from any action that, in its sole judgment made in good faith, (a) is not in compliance with the Investment Guidelines, (b) would adversely and materially affect the qualification of the Trust as a REIT under the Code or the status of the Trust as an entity excluded from investment company status under the Investment Company Act, or (c) would materially violate any law, rule or regulation of any governmental body or agency having jurisdiction over the Trust or of any exchange on which the securities of the Trust may be listed or that would otherwise not be permitted by the Declaration of Trust or Bylaws. If the Adviser is ordered to take any action by the Board, the Adviser shall notify the Board if it is the Adviser's reasonable judgment that such action would adversely and materially affect such status or violate any such law, rule or regulation or the Declaration of Trust or Bylaws. Notwithstanding the foregoing, neither the Adviser nor any of its Affiliates shall be liable to the Trust, the Board, or the Shareholders for any act or omission by the Adviser or any of its Affiliates, except as provided in Section 19 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **Other Activities of the Adviser**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Nothing in this Agreement shall (i) prevent the Adviser, Rithm Capital or any Rithm affiliate from engaging in other businesses or from rendering services of any kind to any other Person or entity, whether or not the investment objectives or policies of any such other Person or entity are similar to those of the Trust, including, without limitation, the sponsoring, closing, advising and/or managing of any Other Rithm Accounts, (ii) in any way bind or restrict the Adviser, Rithm Capital or any Rithm affiliate from buying, selling or trading any securities or commodities for their own accounts or for the account of others for whom the Adviser, Rithm Capital or any Rithm affiliate may be acting, or (iii) prevent the Adviser, Rithm Capital or any Rithm affiliate from receiving fees or other compensation or profits from such activities described in this Section 8(a) which shall be for the sole benefit of the Adviser (and/or Rithm Capital or one or more Rithm affiliates). While information and recommendations supplied to the Trust shall, in the Adviser's reasonable and good faith judgment, be appropriate under the circumstances and in light of the investment objectives and policies of the Trust, such information and recommendations may be different in certain material respects from the information and recommendations supplied by the Adviser or any Affiliate of the Adviser to others (including, for greater certainty, the Other Rithm Accounts and their investors, as described more fully in Section 8(b)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Adviser and the Trust acknowledge and agree that, notwithstanding anything to the contrary contained herein, (i) the Adviser and its Affiliates sponsor, advise and/or manage Other Rithm Accounts and may in the future sponsor, advise and/or manage additional Other Rithm Accounts and (ii) with respect to Other Rithm Accounts, including Rithm affiliates and Rithm Capital, with investment objectives or guidelines that overlap with the Trust, the Adviser and its Affiliates will allocate investment opportunities between the Trust, Rithm Capital, Rithm affiliates and such Other Rithm Accounts in accordance with the Adviser's prevailing policies and procedures on a basis that the Adviser and its Affiliates determine to be reasonable in their sole discretion, and there may be circumstances where investments that are consistent with the Investment Guidelines may be shared with or allocated to one or more Other Rithm Accounts (in lieu of the Trust) in accordance with the Adviser's prevailing policies and procedures. In particular, the Trust and the Board acknowledge that: (i) not all investment opportunities identified by the Adviser that are suitable for the Trust will be made available to the Trust; (ii) certain investments that would be suitable for the Trust will be retained by Rithm Capital or its Affiliates that originated such investments or will be sold to third parties and therefore will not be available for investment and will not be part of the Adviser's investment allocation protocols; (iii) consistent with the Adviser's allocation policy, the Adviser may allocate investment opportunities that fall within the Trust's investment objectives between the Trust, Rithm Capital, its Affiliates and/or Other Rithm Accounts, and may allocate up to 100% of such an opportunity to its Affiliates, including Rithm Capital, and/or Other Rithm Accounts; and (iv) the Adviser's Affiliates, including Rithm Capital, and Other Rithm Accounts, may receive an allocation in a pool of loans that are not allocated to the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In connection with the services of the Adviser hereunder, the Trust and the Board acknowledge and agree that (i) as part of Rithm Capital's regular businesses, personnel of Rithm Capital and the Adviser and their Affiliates may from time-to-time work on other projects and matters (including with respect to Rithm Capital and one or more Other Rithm Accounts), and that conflicts may arise with respect to the allocation of personnel between the Trust, on the one hand, and Rithm Capital and /or one or more Other Rithm Accounts and/or the Adviser and such other Affiliates, (ii) unless prohibited by the Declaration of Trust, Rithm Capital and Other Rithm Accounts may invest, from time to time, in investments in which the Trust also invests (including at a different level of an issuer's capital structure (e.g., an investment by an Other Rithm Client in a mezzanine debt interest with respect to the same issuer to whom the Trust has made a mortgage loan)) and while the Adviser will seek to resolve any such conflicts in a fair and reasonable manner in accordance with its prevailing policies and procedures with respect to conflicts resolution among Other Rithm Accounts generally, such transactions are not required to be presented to the Board or any committee thereof for approval (unless otherwise required by the Declaration of Trust or the Investment Guidelines), and there can be no assurance that any conflicts will be resolved in the Trust's favor, (iii) the Trust will from time to time pay fees to the Adviser and its Affiliates, including portfolio entities of Other Rithm Accounts, for providing various services described in the PPM (including loan servicing provided by Affiliates of the Adviser), which fees will be in addition to the compensation paid to the Adviser pursuant to Section 10 hereof, (iv) the Adviser and its Affiliates may from time to time receive fees from portfolio entities or other issuers for providing Services, including with respect to Other Rithm Accounts and related portfolio entities, and while such fees may give rise to conflicts of interest, the Trust will not receive the benefit of any such fees, and (v) the terms and conditions of the governing agreements of such Other Rithm Accounts (including with respect to the economic, reporting, and other rights afforded to investors in such Other Rithm Accounts) are materially different from the terms and conditions applicable to the Trust and the Shareholders, and neither the Trust nor the Shareholders (in such capacity) shall have the right to receive the benefit of any such different terms applicable to investors in such Other Rithm Accounts as a result of an investment in the Trust or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Adviser is not permitted to consummate on the Trust's behalf any transaction that involves (i) the sale of any investment to or (ii) the acquisition of any investment from Rithm Capital, any Other Rithm Account or any of their Affiliates unless such transaction is approved by (x) an independent Compliance Reviewer, if applicable, or (y) a majority of the Trustees, including a majority of the Independent Trustees, not otherwise interested in such transaction. The Adviser will seek to resolve any conflicts of interest in a fair and reasonable manner in accordance with its prevailing policies and procedures with respect to conflicts resolution among Rithm Capital and/or Other Rithm Accounts generally, but only those transactions expressly requiring prior approval pursuant to this Section 8(d) shall be required to be presented for approval to the Independent Trustees or any committee thereof (unless otherwise required by the Declaration of Trust or the Investment Guidelines).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) For the avoidance of doubt, it is understood that neither the Trust nor the Board has the authority to determine the salary, bonus or any other compensation paid by the Adviser to any director, officer, member, partner, employee, or shareholder of the Adviser or its Affiliates, including any person who is also a Trustee, officer or employee of the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **Compensation**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Trust will pay the Adviser a management fee (the "<u>Management Fee</u>") equal to (i) prior to becoming a Publicly Offered REIT, 1.250% of NAV for all of the Trust's outstanding Shares and (ii) after becoming a Publicly Offered REIT, (A) 1.250% of NAV for the Class S Common Shares, Class T Common Shares, Class D Common Shares and Class I Common Shares, and (B) 1.250% of NAV for Class J Common Shares and Class J-2 Common Shares, in each case, per annum and payable monthly in arrears, before giving effect to any accruals for the Management Fee, the Shareholder Servicing Fee, the Distribution Fee, the Performance Fee or any Distributions; provided, however, that the amount of the Management Fee paid to the Adviser by the Trust with respect to Class J Common Shares and Class J-2 Common Shares for any period shall be reduced by any Distribution Fees payable with respect to such shares for such period. The Adviser shall receive the Management Fee as compensation for services rendered hereunder. For the avoidance of doubt, after the Trust becomes a Publicly Offered REIT, no Management Fee shall be paid on Class E Common Shares. Any Management Fee shall be calculated and paid to the Adviser on a class-by-class basis, based on the NAV of each applicable class of Common Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Commencing once the Trust becomes a Publicly Offered REIT, the Trust shall pay the Adviser a performance fee (the "<u>Performance Fee</u>"), which is accrued monthly and payable quarterly (or part thereof that this Agreement is in effect) in arrears. The Performance Fee shall be in an amount, not less than zero, equal to (i) 12.5% of Core Earnings for the immediately preceding quarter (each such period, a "<u>Performance Measurement Period</u>"), subject to a hurdle rate, expressed as a rate of return on average Adjusted Capital, equal to 1.25% per quarter (the "<u>Hurdle Rate</u>"), or an annualized hurdle rate equal to 5.0%. As a result, the Adviser does not earn a Performance Fee for any calendar quarter until Core Earnings for the applicable Performance Measurement Period exceeds the Hurdle Rate.

Once Core Earnings in a Performance Measurement Periods exceeds the Hurdle Rate, the Adviser shall be entitled to a "catch-up" fee equal to the amount of Core Earnings in excess of the Hurdle Rate, until Core Earnings for the applicable Performance Measurement Period exceeds a percentage of average Adjusted Capital equal to the Hurdle Rate divided by 0.875 (or 1 minus 0.125) for the applicable Performance Measurement Period. Thereafter, the Adviser shall be entitled to receive 12.5% of Core Earnings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Management Fee and Performance Fee may be paid, at the Adviser's election subject to the ownership restrictions in the Declaration of Trust, in cash or cash equivalent aggregate NAV amounts of Class E Common Shares, or any combination thereof. If the Adviser elects to receive any portion of its Management Fee or Performance Fee in Class E Common Shares, the Adviser or any subsequent transferee thereof may elect, subject to the Trust's ability to meet the applicable REIT requirements, to have the Trust repurchase such Class E Common Shares from the Adviser or any subsequent transferee at a later date at a repurchase price per Class E Common Share equal to the then NAV per Class E Common Share. Class E Common Shares obtained by the Adviser will not be, to the extent consistent with the Trust's ability to meet the applicable REIT requirements, subject to the Trust's share repurchase plan, including the repurchase limits or any early repurchase deduction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event this Agreement is terminated or its term expires without renewal, the Adviser will be entitled to receive each of its prorated Management Fee and Performance Fee through the date of termination. Such pro ration shall take into account the number of days of any partial calendar month or calendar year for which this Agreement was in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In the event the Trust commences a liquidation of its investments during any calendar year, the Trust will pay the Adviser the Management Fee and the Performance Fee from the proceeds of the liquidation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **Expenses**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to Sections 4(e) and 11(b), the Adviser shall be responsible for the expenses related to any and all personnel of the Adviser who provide investment advisory services to the Trust pursuant to this Agreement (including, without limitation, each of the officers of the Trust and any Trustees who are also directors, officers or employees of the Adviser or any of its Affiliates), including, without limitation, salaries, bonus and other wages, payroll taxes and the cost of employee benefit plans of such personnel, and costs of insurance with respect to such personnel ("<u>Adviser Expenses</u>"); provided, however, that the Trust shall reimburse the Adviser for the Trust's allocable portion of the total compensation, benefits and related expenses (including travel expenses) paid by the Adviser (or its Affiliates) to (i) the personnel of the Adviser or its Affiliates serving as the Trust's chief financial officer and chief legal officer (based on the percentage of time such individuals devote, on the Adviser's estimated basis, to the business affairs of the Trust and/or in acting on behalf of the Trust) and (ii) other corporate finance, tax, accounting, middle office, internal audit, legal, risk management, operations, compliance and other non-investment personnel of the Adviser or its Affiliates who spend all or a portion of their time managing the Trust's affairs (based on the percentage of time such individuals devote, on the Adviser's estimated basis, to the business affairs of the Trust and/or in acting on behalf of the Trust).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In addition to the compensation paid to the Adviser pursuant to Section 10 hereof, the Trust shall pay all of its costs and expenses directly or reimburse the Adviser or its Affiliates for costs and expenses of the Adviser and its Affiliates incurred on behalf of the Trust other than Adviser Expenses. Without limiting the generality of the foregoing, it is specifically agreed that the following costs and expenses of the Trust are not Adviser Expenses and shall be paid or reimbursed by the Trust and shall not be paid or borne by the Adviser or Affiliates of the Adviser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Organization and Offering Expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Acquisition Expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) fees, costs and expenses in connection with the issuance and transaction costs incident to the trading, origination, acquisition, settling, disposition and financing of the Trust's investments (whether or not consummated), including brokerage commissions, hedging costs, prime brokerage fees, custodial expenses, clearing and settlement charges, forfeited deposits, and other investment costs fees and expenses actually incurred in connection with the pursuit, making, holding, originating, acquiring, settling, monitoring or disposing of actual or potential investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) fees payable to third parties, including agents, consultants or other advisers, relating to, or associated with, evaluating and making investments, and fees payable to rating agencies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the actual cost of goods and services used by the Trust and obtained from either Affiliates of the Adviser or Persons not Affiliated with the Adviser, including fees paid to administrators, Independent Compliance Reviewers, consultants, attorneys, accountants, tax advisors, technology providers and other service providers, and brokerage fees paid in connection with the origination, acquisition, purchase and/or sale of investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) all fees, costs and expenses of legal, tax, accounting, consulting, auditing (including internal audit), finance, administrative, operations, treasury, investment banking, capital market, transfer agency, escrow agency, custody, prime brokerage, asset management, data or technology services and other non-investment advisory services rendered to the Trust by the Adviser or its Affiliates in compliance with Section 4(e) including, without limitation, salaries, bonus and other wages, payroll taxes and the cost of employee benefit plans and insurance with respect to all personnel of the Adviser other than those who provide investment advisory services to the Trust as described above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) expenses of acquiring, originating, managing and disposing the Trust's investments, whether payable to an Affiliate of the Adviser or a non-Affiliated Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) the compensation and expenses of the Trustees, including costs associated with events and trainings of the Trustees (including travel) (excluding those Trustees who are directors, officers or employees of the Adviser), and the cost of liability insurance to indemnify the Trustees and officers (including the portion of such insurance costs incurred by the Adviser and allocable to the Trust) and expenses incurred in connection with preparation of materials for meetings of the Board and its committees as well as subsequent compensation and expenses incurred in relation to such meetings of the Board and its committees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) interest, fees and expenses arising out of borrowings made by the Trust, including, but not limited to, costs associated with the establishment and maintenance of any of the Trust's credit facilities, other financing arrangements, or other indebtedness of the Trust (including commitment fees, accounting fees, legal fees, closing and other similar costs) or any of the Trust's securities offerings, whether or not any facilities, financing arrangements or indebtedness are implemented or such securities are offered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) expenses connected with communications to holders of the Trust's securities or securities of any subsidiary of the Trust and other bookkeeping and clerical work necessary in maintaining relations with holders of such securities and in complying with the continuous reporting and other requirements of governmental bodies or agencies, including, without limitation, all costs of the Sarbanes-Oxley Act of 2002, as amended, compliance and costs associated with preparation and filing of filings, reports or other documents with the SEC (or other regulatory bodies), if necessary, and other reporting and compliance costs (as applicable), including registration fees, the costs payable by the Trust to any transfer agent and registrar, expenses in connection with the listing and/or trading of the Trust's securities on any exchange, the fees payable by the Trust to any such exchange in connection with its listing, costs of preparing, printing and mailing the Trust's annual report to the Shareholders and proxy materials, if any, with respect to any meeting of the Shareholders and any other reports or related statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) the Trust's allocable share of costs associated with technology-related expenses, including without limitation, any computer software or hardware, electronic equipment or purchased information technology services from third-party vendors or Affiliates of the Adviser, technology service providers and related software/hardware utilized in connection with the Trust's investment and operational activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) the Trust's allocable share of expenses incurred by managers, officers, personnel and agents of the Adviser for travel on the Trust's behalf and other out-of-pocket expenses incurred by them in connection with the election, origination, acquisition, financing, refinancing, sale or other disposition of an investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) expenses relating to compliance-related matters and regulatory filings relating to the Trust's activities (including, without limitation, expenses relating to the preparation and filing of Form PF, Form ADV, reports to be filed with the U.S. Commodity Futures Trading Commission, reports, disclosures, and/or other regulatory filings of the Adviser and its Affiliates relating to the Trust's activities (including the Trust's pro rata share of the costs of the Adviser and its Affiliates of regulatory expenses that relate to the Trust and Other Rithm Accounts));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) the costs of any litigation involving the Trust or its assets and the amount of any judgments or settlements paid in connection therewith, trustees and officers liability or other insurance and indemnification or extraordinary expense or liability relating to the affairs of the Trust;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) all taxes and statutory, regulatory or license fees or other governmental charges of the Trust or any subsidiary thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi) all insurance costs incurred in connection with the operation of the Trust's business (including the portion of such insurance costs incurred by the Adviser and allocable to the Trust);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii) expenses incurred in connection with maintaining the status of the Trust as a REIT or the payments of interest, dividends or other Distributions in cash or any other form authorized or caused to be made by the Board to or on account of holders of the Trust's securities, including, without limitation, in connection with any distribution reinvestment plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xviii) any judgment or settlement of pending or threatened proceedings (whether civil, criminal or otherwise) against the Trust, or against any Trustee or officer of the Trust or in his or her capacity as such for which the Trust is required to indemnify such Trustee or officer by any court or governmental agency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xix) expenses incurred in connection with the formation, organization, continuation, liquidation and/or restructuring of any corporation, partnership, joint venture or other entity through which the Trust's investments are made or in which any such entity invests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) expenses incurred in connection with winding up and liquidating the Trust; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxi) expenses incurred related to industry association memberships or attending industry conferences on behalf of the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Adviser may, at its option, elect not to seek reimbursement for certain expenses during a given period, which determination shall not be deemed to construe a waiver of reimbursement for similar expenses in future periods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any reimbursement payments owed by the Trust to the Adviser may be paid, at the Adviser's election, in cash or Class E Common Shares, or any combination thereof, and may be offset by the Adviser against amounts due to the Trust from the Adviser. Cost and expense reimbursement to the Adviser shall be subject to adjustment at the end of each calendar year in connection with the annual audit of the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding the foregoing, the Adviser shall pay for all Organization and Offering Expenses (other than Upfront Sales Loads, Shareholder Servicing Fees and Distribution Fees) incurred through the earlier of (i) the date that the Trust's aggregate NAV is at least $200 million and (ii) the first anniversary of the date on which the Trust first calculates NAV. All Organization and Offering Expenses (other than Upfront Sales Loads, Shareholder Servicing Fees and Distribution Fees) paid by the Adviser pursuant to this Section 11 shall be reimbursed by the Trust to the Adviser in 60 equal monthly installments following the date on which the Adviser stops advancing Organization and Offering Expenses per the prior sentence; provided that, in the event the Trust commences a liquidation, all such Organization and Offering Expenses shall become due and payable and shall be reimbursed by the Trust to the Adviser in connection with, and prior to the completion of, such liquidation. Thereafter, the Trust will reimburse the Adviser for any Organization and Offering Expenses as and when incurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Notwithstanding the foregoing, the Adviser may pay for certain of the costs and expenses of the Trust contemplated by Section 11(b) above (excluding Organization and Offering Expenses) incurred through the earlier of (i) the date that the Trust's aggregate NAV is at least $200 million and (ii) the first anniversary the date on which the Trust first calculates NAV. All such expenses (excluding Organization and Offering Expenses) paid by the Adviser pursuant to this Section 11(f) shall be reimbursed by the Trust to the Adviser in 60 equal monthly installments following the date on which the Adviser stops advancing such costs and expenses per the prior sentence; provided that, in the event the Trust commences a liquidation, all such costs and expenses shall become due and payable and shall be reimbursed by the Trust to the Adviser in connection with, and prior to the completion of, such liquidation. Thereafter, the Trust will reimburse the Adviser, as applicable, for certain of the costs and expenses of the Trust contemplated by Section 11(b) above (excluding Organization and Offering Expenses) as and when incurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. **Other Services**. Should the Board request that the Adviser or any director, manager, officer or employee thereof render services for the Trust other than set forth in Section 3, such services shall be separately compensated at such rates and in such amounts as are agreed by the Adviser and the Independent Trustees, subject to the limitations contained in the Declaration of Trust, and shall not be deemed to be services pursuant to the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. **No Joint Venture**. The Trust, on the one hand, and the Adviser, on the other, are not partners or joint venturers with each other, and nothing in this Agreement shall be construed to make them such partners or joint venturers or impose any liability as such on either of them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. **Term**. This Agreement shall continue in effect, unless terminated in accordance with the terms hereof, for a period of two years from the Effective Date and shall be deemed renewed automatically each year for an additional one-year period, unless terminated in accordance with the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. **Termination by the Parties**. This Agreement may be terminated upon 60 days' advance written notice without penalty by approval of a majority of the Board (including a majority of the Independent Trustees); or upon 60 days' advance written notice by the Adviser. The provisions of Sections 16 through 21 shall survive termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. **Assignment to an Affiliate**. Except as set forth herein, the Adviser shall not assign, sell or otherwise dispose of all or any part of its right, title and interest in and to this Agreement to any Persons other than an Affiliate without the approval of a majority of the Trustees (including a majority of the Independent Trustees). Notwithstanding the foregoing, the Adviser may assign any rights to receive fees or other payments under this Agreement to any Person without obtaining the consent of the Board. This Agreement shall not be assigned by the Trust without the approval of the Adviser, except in the case of an assignment by the Trust to a corporation or other organization which is a successor to all of the assets, rights and obligations of the Trust, in which case such successor organization shall be bound hereunder and by the terms of said assignment in the same manner as the Trust is bound by this Agreement. This Agreement shall be binding on successors to the Trust resulting from a Change of Control or sale of all or substantially all the assets of the Trust and shall likewise be binding on any successor to the Adviser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. **Payments to and Duties of Adviser Upon Termination**. After the Termination Date, the Adviser shall not be entitled to compensation for further services hereunder and shall not be entitled to a termination fee, except it shall be entitled to receive from the Trust, within 30 days after the effective date of such termination, all unpaid reimbursements of expenses and all earned but unpaid fees payable to the Adviser prior to termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Adviser shall promptly upon termination:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) pay over to the Trust all money collected and held for the account of the Trust pursuant to this Agreement, after deducting any accrued compensation and reimbursement for its expenses to which it is then entitled;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) deliver to the Board a full accounting, including a statement showing all payments collected by it and a statement of all money held by it, covering the period following the date of the last accounting furnished to the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) deliver to the Board all assets, including all investments, and documents of the Trust then in the custody of the Adviser; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) cooperate with, and take all reasonable actions requested by, the Trust and Board in making an orderly transition of the advisory function.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. **Indemnification by the Trust**. The Trust shall indemnify and hold harmless the Adviser and its Affiliates, including their respective officers, managers, directors, partners and employees, from all liability, claims, damages or losses arising in the performance of their duties hereunder, and related expenses, including reasonable attorneys' fees, to the extent such liability, claims, damages or losses and related expenses are not fully reimbursed by insurance, and to the fullest extent possible without such indemnification being inconsistent with the laws of the State of Maryland or the Declaration of Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. **Indemnification by Adviser**. The Adviser shall indemnify and hold harmless the Trust from contract or other liability, claims, damages, taxes or losses and related expenses including attorneys' fees, to the extent that (i) such liability, claims, damages, taxes or losses and related expenses are not fully reimbursed by insurance and (ii) are incurred by reason of the Adviser's bad faith, fraud, willful misconduct, gross negligence or reckless disregard of its duties under this Agreement; provided, however, that the Adviser shall not be held responsible for any action or inaction of the Board in following or declining to follow any advice or recommendation given by the Adviser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. **Non-Solicitation**. During the term of this Agreement and for two (2) years after the Termination Date, the Trust shall not, without the consent of the Adviser, employ or otherwise retain any employee of the Adviser or any of its Affiliates or any person who has been employed by the Adviser or any of its Affiliates at any time within the two (2) year period immediately preceding the date on which such person commences employment with or is otherwise retained by the Trust. The Trust acknowledges and agrees that, in addition to any damages, the Adviser may be entitled to equitable relief for any violation of this Section 20 by the Trust, including, without limitation, injunctive relief.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. **Miscellaneous**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **<u>Notices</u>**. Any notice, report or other communication required or permitted to be given hereunder shall be in writing unless some other method of giving such notice, report or other communication is required by the Declaration of Trust or the Bylaws or accepted by the party to whom it is given, and shall be given by being delivered by hand, by courier or overnight carrier, by registered or certified mail, by electronic mail or posted on a password protected website maintained by the Adviser and for which the Trust has received access instructions by electronic mail, when posted, using the contact information set forth herein:

---

| | |
|:---|:---|
| The Trust: | Rithm Perpetual Life Residential Trust<br> 799 Broadway, 8th Floor<br> New York, NY 10003<br> Attention: Legal Department<br> Email: legalnotices@rithmcap.com |
| with required copies to: | Sidley Austin LLP<br> 787 Seventh Avenue<br> New York, NY 10019<br> Attention: Jason A. Friedhoff<br> Email: jfriedhoff@sidley.com |
| The Adviser: | RCM GA Manager LLC <br> 799 Broadway, 8th Floor<br> New York, NY 10003<br> Attention: Legal Department<br> Email: legalnotices@rithmcap.com |
| with required copies to: | Sidley Austin LLP<br> 787 Seventh Avenue<br> New York, NY 10019<br> Attention: Jason A. Friedhoff<br> Email: jfriedhoff@sidley.com |

---

Any party may at any time give notice in writing to the other parties of a change in its address for the purposes of this Section 21(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **<u>Modification</u>**. This Agreement shall not be changed, modified, terminated, or discharged, in whole or in part, except by an instrument in writing signed by the parties hereto, or their respective successors or assignees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **<u>Severability</u>**. The provisions of this Agreement are independent of and severable from each other, and no provision shall be affected or rendered invalid or unenforceable by virtue of the fact that for any reason any other provision or provisions may be invalid or unenforceable in whole or in part.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **<u>Governing Law; Exclusive Jurisdiction; Jury Trial</u>**. The provisions of this Agreement shall be construed and interpreted in accordance with the laws of the State of New York. The parties hereby irrevocably submit to the exclusive jurisdiction of the courts of the State of New York and the Federal courts of the United States of America located in Borough of Manhattan, New York for purposes of any suit, action or other proceeding arising from this Agreement, and hereby waive, and agree not to assert, as a defense in any action, suit or proceeding for the interpretation or enforcement hereof or thereof, that it is not subject thereto or that such action, suit or proceeding may not be brought or is not maintainable in such courts or that the venue thereof may not be appropriate or that this Agreement or any such document may not be enforced in or by such courts. Each of the parties hereby consent to and grant any such court jurisdiction over the person of such parties and over the subject matter of any such dispute. EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **<u>Entire Agreement</u>**. This Agreement contains the entire agreement and understanding among the parties hereto with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof. The express terms hereof control and supersede any course of performance or usage of the trade inconsistent with any of the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **<u>Indulgences, No Waivers</u>**. Neither the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **<u>Gender; Number</u>**. Words used herein regardless of the number and gender specifically used, shall be deemed and construed to include any other number, singular or plural, and any other gender, masculine, feminine or neuter, as the context requires.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **<u>Headings</u>**. The titles and headings of Sections and Subsections contained in this Agreement are for convenience only, and they neither form a part of this Agreement nor are they to be used in the construction or interpretation hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **<u>Execution in Counterparts</u>**. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original as against any party whose signature appears thereon, and all of which shall together constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including any electronic signature covered by the U.S. federal ESIGN Act of 2000, Uniform Electronic Transactions Act, the Electronic Signatures and Records Act or other applicable law (e.g., www.docusign.com)), or other transmission method. This Agreement shall become binding when one or more counterparts hereof, individually or taken together, shall bear the signatures of all of the parties reflected hereon as the signatories.

[*Signature Page Follows*]

**IN WITNESS WHEREOF**, the parties hereto have executed this Agreement as of the date and year first above written.

---

| | |
|:---|:---|
| **RITHM PERPETUAL LIFE RESIDENTIAL TRUST** | **RITHM PERPETUAL LIFE RESIDENTIAL TRUST** |
| By: | /s/ Nicola Santoro, Jr. |
| Name: Nicola Santoro, Jr. | Name: Nicola Santoro, Jr. |
| Title: Chief Financial Officer and Chief Accounting Officer | Title: Chief Financial Officer and Chief Accounting Officer |
| **RCM GA MANAGER LLC** | **RCM GA MANAGER LLC** |
| By: | /s/ David Zeiden |
| Name: David Zeiden | Name: David Zeiden |
| Title: Chief Legal Officer | Title: Chief Legal Officer |

---

[*Signature page to the Advisory Agreement*]

## Exhibit 10.2

**Exhibit 10.2**

**<u>Rithm Perpetual Life Residential Trust</u>**

**<u>INDEMNIFICATION AGREEMENT</u>**

THIS INDEMNIFICATION AGREEMENT (this "Agreement") is made and entered into as of the _____ day of _________, 2025, by and between Rithm Perpetual Life Residential Trust, a Maryland statutory trust (the "Trust"), and ____________________ ("Indemnitee").

WHEREAS, at the request of the Trust, Indemnitee will serve or currently serves as **[a trustee] [and] [an officer]** of the Trust and may, therefore, be subjected to claims, suits or proceedings arising as a result of such service;

WHEREAS, as an inducement to Indemnitee to serve or continue to serve in such capacity, the Trust has agreed to indemnify Indemnitee and to advance expenses and costs incurred by Indemnitee in connection with any such claims, suits or proceedings, to the maximum extent permitted by law;

WHEREAS, the Trust's Amended and Restated Declaration of Trust, as amended from time to time (the "Declaration of Trust"), require the Trust to indemnify and pay or reimburse reasonable expenses to its trustees and officers to the maximum extent permitted by Maryland law as in effect from time to time; and

WHEREAS, the parties to this Agreement desire to set forth their agreement regarding indemnification and advance of expenses and to supersede any prior agreement to which the Trust and Indemnitee are parties regarding the same; provided that this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the Declaration of Trust or bylaws of the Trust, any agreement entered into after the date hereof or a resolution of the shareholders entitled to vote generally in the election of trustees or of the Trust's board of trustees (the "Board of Trustees"), or otherwise;

NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the Trust and Indemnitee do hereby covenant and agree as follows:

Section 1. <u>Definitions</u>. For purposes of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "Change in Control" means a change in control of the Trust occurring after the Effective Date of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item on any similar schedule or form) promulgated under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), whether or not the Trust is then subject to such reporting requirement; provided, however, that, without limitation, such a Change in Control shall be deemed to have occurred if, after the Effective Date (i) any "person" (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) is or becomes the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Trust representing 50% or more of the combined voting power of all of the Trust's then-outstanding securities entitled to vote generally in the election of trustees without the prior approval of at least two-thirds of the members of the Board of Trustees in office immediately prior to such person's attaining such percentage interest; (ii) the Trust is a party to a merger, consolidation, sale of assets, plan of liquidation or other reorganization not approved by at least two-thirds of the members of the Board of Trustees then in office, as a consequence of which members of the Board of Trustees in office immediately prior to such transaction or event constitute less than a majority of the Board of Trustees thereafter; or (iii) at any time, a majority of the members of the Board of Trustees are not individuals (A) who were trustees as of the Effective Date or (B) whose election by the Board of Trustees or nomination for election by the Trust's shareholders was approved by the affirmative vote of at least two-thirds of the trustees then in office who were trustees as of the Effective Date or whose election or nomination for election was previously so approved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "Trust Status" means the status of a person as a present or former trustee, officer, employee or agent of the Trust or as a trustee, director, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic real estate investment trust, corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise that such person is or was serving in such capacity at the request of the Trust. As a clarification and without limiting the circumstances in which Indemnitee may be serving at the request of the Trust, service by Indemnitee shall be deemed to be at the request of the Trust: (i) if Indemnitee serves or served as a trustee, director, officer, partner, manager, managing member, fiduciary, employee or agent of any real estate investment trust, corporation, partnership, limited liability company, joint venture, trust or other enterprise (1) of which a majority of the voting power or equity interest is or was owned directly or indirectly by the Trust or (2) the management of which is controlled directly or indirectly by the Trust and (ii) if, as a result of Indemnitee's service to the Trust or any of its affiliated entities, Indemnitee is subject to duties to, or required to perform services for, an employee benefit plan or its participants or beneficiaries, including as a deemed fiduciary thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "Disinterested Trustee" means a trustee of the Trust who is not and was not a party to the Proceeding in respect of which indemnification and/or advance of Expenses is sought by Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "Effective Date" means the date set forth in the first paragraph of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "Expenses" means any and all reasonable and out-of-pocket attorneys' fees and costs, retainers, court costs, arbitration and mediation costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, federal, state, local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement, ERISA excise taxes and penalties and any other disbursements or expenses incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in or otherwise participating in a Proceeding. Expenses shall also include Expenses incurred in connection with any appeal resulting from any Proceeding, including, without limitation, the premium for, security for and other costs relating to any cost bond, supersedes bond or other appeal bond or its equivalent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "Independent Counsel" means a law firm, or a partner (or, if applicable, member) of a such a law firm, that is experienced in matters of corporation and statutory trust law and neither presently is, nor in the past five years has been, retained to represent: (i) the Trust or Indemnitee in any matter material to either such party (other than with respect to matters concerning Indemnitee under this Agreement or of other indemnitees under similar indemnification agreements), or (ii) any other party to or participant or witness in the Proceeding giving rise to a claim for indemnification or advance of Expenses hereunder. Notwithstanding the foregoing, the term "Independent Counsel" shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Trust or Indemnitee in an action to determine Indemnitee's rights under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "Proceeding" means any threatened, pending or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing, claim, demand or discovery request or any other actual, threatened or completed proceeding, whether brought by or in the right of the Trust or otherwise and whether of a civil (including intentional or unintentional tort claims), criminal, administrative or investigative (formal or informal) nature, including any appeal therefrom, except one pending or completed on or before the Effective Date, unless otherwise specifically agreed in writing by the Trust and Indemnitee. If Indemnitee reasonably believes that a given situation may lead to or culminate in the institution of a Proceeding, such situation shall also be considered a Proceeding.

Section 2. <u>Services by Indemnitee</u>. Indemnitee serves or will serve in the capacity or capacities set forth in the first WHEREAS clause above. However, this Agreement shall not impose any independent obligation on Indemnitee or the Trust to continue Indemnitee's service to the Trust. This Agreement shall not be deemed an employment contract between the Trust (or any other entity) and Indemnitee.

Section 3. <u>General</u>. The Trust shall indemnify, and advance Expenses to, Indemnitee (a) as provided in this Agreement and (b) otherwise to the maximum extent permitted by Maryland law in effect on the Effective Date and as amended from time to time; provided, however, that no change in Maryland law shall have the effect of reducing the benefits available to Indemnitee hereunder based on Maryland law as in effect on the Effective Date. Subject to the limitations in Section 5 of this Agreement, the rights of Indemnitee provided in this Section 3 shall include, without limitation, the rights set forth in the other sections of this Agreement and any additional indemnification permitted by the Maryland General Corporation Law (the "MGCL"), including, without limitation, Section 2-418 of the MGCL, as applicable to a Maryland statutory trust by virtue of Section 12-403(b) of the Maryland Statutory Trust Act (the "MSTA").

Section 4. <u>Standard for Indemnification</u>. Subject to the limitations in Section 5 of this Agreement, if, by reason of Indemnitee's Trust Status, Indemnitee is, or is threatened to be, made a party to any Proceeding, the Trust shall indemnify Indemnitee against all judgments, penalties, fines and amounts paid in settlement and, subject to Section 6 and delivery by Indemnitee of the written affirmation and acknowledgement required under Section 7 or as may be required under Section 8 of this Agreement, all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection with any such Proceeding unless it is established that the act or omission of Indemnitee giving rise to the Proceeding was the result of gross negligence, fraud or intentional misconduct.

Section 5. <u>Certain Limits on Indemnification and Advance of Expenses</u>. Notwithstanding any other provision of this Agreement, Indemnitee shall not be entitled to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) indemnification hereunder if the Proceeding was one by or in the right of the Trust and Indemnitee is adjudged, in a final adjudication of the Proceeding not subject to further appeal, to be liable to the Trust; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) indemnification or advance of Expenses hereunder if the Proceeding was brought by Indemnitee, unless: (i) the Proceeding was brought to enforce indemnification under this Agreement, and then only to the extent in accordance with and as authorized by Section 11 of this Agreement, or (ii) the Board of Trustees or an agreement approved by the Board of Trustees to which the Trust is a party expressly provide otherwise.

Section 6. <u>Indemnification for Expenses of an Indemnitee Who is Wholly or Partially Successful</u>. Notwithstanding any other provision of this Agreement, and without limiting any such provision, to the extent that Indemnitee was or is, by reason of Indemnitee's Trust Status, made a party to (or otherwise becomes a participant in) any Proceeding and is successful, on the merits or otherwise, in the defense of such Proceeding, the Trust shall indemnify Indemnitee for all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection therewith. If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Trust shall indemnify Indemnitee under this Section 6 for all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection with each such claim for which they were meritorious, issue or matter, allocated on a reasonable and proportionate basis. For purposes of this Section 6 and, without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

Section 7. <u>Advance of Expenses for Indemnitee</u>. If, by reason of Indemnitee's Trust Status, Indemnitee is, or is threatened to be, made a party to any Proceeding, the Trust shall, without requiring a preliminary determination of Indemnitee's ultimate entitlement to indemnification hereunder, advance all reasonable Expenses incurred by or on behalf of Indemnitee in connection with such Proceeding. The Trust shall make such advance of incurred Expenses within ten days after the receipt by the Trust of a statement or statements requesting such advance from time to time, whether prior to or after final disposition of such Proceeding, which advance may be in the form of, in the reasonable discretion of Indemnitee (but without duplication), (a) payment of such Expenses directly to third parties on behalf of Indemnitee, (b) advance of funds to Indemnitee in an amount sufficient to pay such Expenses or (c) reimbursement to Indemnitee for Indemnitee's payment of such Expenses. Such statement or statements shall reasonably evidence the Expenses incurred by Indemnitee and shall include or be preceded or accompanied by a written affirmation by Indemnitee and a written undertaking by or on behalf of Indemnitee, in substantially the form attached hereto as <u>Exhibit A</u> or in such form as may be required under applicable law as in effect at the time of the execution thereof. To the extent that Expenses advanced to Indemnitee do not relate to a specific claim, issue or matter in the Proceeding, such Expenses shall be allocated on a reasonable and proportionate basis. The undertaking required by this Section 7 shall be an unlimited general obligation by or on behalf of Indemnitee and shall be accepted without reference to Indemnitee's financial ability to repay such advanced Expenses and without any requirement to post security therefor.

Section 8. <u>Indemnification and Advance of Expenses as a Witness or Other Participant</u>. Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is or may be, by reason of Indemnitee's Trust Status, made a witness or otherwise asked to participate in any Proceeding, whether instituted by the Trust or any other person, and to which Indemnitee is not a party, Indemnitee shall be advanced and indemnified against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection therewith within ten days after the receipt by the Trust of a statement or statements requesting any such advance or indemnification from time to time, whether prior to or after final disposition of such Proceeding. Such statement or statements shall reasonably evidence the Expenses incurred by Indemnitee. In connection with any such advance of Expenses, the Trust may require Indemnitee to provide an undertaking and affirmation substantially in the form attached hereto as <u>Exhibit A</u> or in such form as may be required under applicable law as in effect at the time of execution thereof.

Section 9. <u>Procedure for Determination of Entitlement to Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To obtain indemnification under this Agreement, Indemnitee shall submit to the Trust a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary or appropriate to determine whether and to what extent Indemnitee is entitled to indemnification. Indemnitee may submit one or more such requests from time to time and at such time(s) as Indemnitee deems appropriate in Indemnitee's sole discretion. The officer of the Trust receiving any such request from Indemnitee shall, promptly upon receipt of such a request for indemnification, advise the Board of Trustees in writing that Indemnitee has requested indemnification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon written request by Indemnitee for indemnification pursuant to Section 9(a) above, a determination, if required by applicable law, with respect to Indemnitee's entitlement thereto shall promptly be made in the specific case: (i) if a Change in Control has occurred, by Independent Counsel, in a written opinion to the Board of Trustees, a copy of which shall be delivered to Indemnitee, which Independent Counsel shall be selected by Indemnitee and approved by the Board of Trustees in accordance with Section 2-418(e)(2)(ii) of the MGCL, which approval shall not be unreasonably withheld; or (ii) if a Change in Control has not occurred, (A) by a majority vote of the Disinterested Trustees or by the majority vote of a group of Disinterested Trustees designated by the Disinterested Trustees to make the determination, (B) if Independent Counsel has been selected by the Board of Trustees in accordance with Section 2-418(e)(2)(ii) of the MGCL and approved by Indemnitee, which approval shall not be unreasonably withheld or delayed, by Independent Counsel, in a written opinion to the Board of Trustees, a copy of which shall be delivered to Indemnitee or (C) if so directed by the Board of Trustees, by the shareholders of the Trust, other than trustees or officers who are parties to the Proceeding. If it is so determined that Indemnitee is entitled to indemnification, the Trust shall make payment for the Expenses to Indemnitee within ten days after such determination. Indemnitee shall cooperate with the person, persons or entity making such determination with respect to Indemnitee's entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary or appropriate to such determination in the discretion of the Board of Trustees or Independent Counsel if retained pursuant to clause (ii)(B) of this Section 9(b). Any Expenses incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Trust (irrespective of the determination as to Indemnitee's entitlement to indemnification) and the Trust shall indemnify and hold Indemnitee harmless therefrom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Trust shall pay the reasonable and documented fees and expenses of Independent Counsel retained pursuant to clause (ii)(B) of Section 9(b), if one is appointed.

Section 10. <u>Presumptions and Effect of Certain Proceedings</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In making any determination with respect to entitlement to indemnification hereunder, the person or persons (including any court having jurisdiction over the matter) making such determination shall presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 9(a) of this Agreement, and the Trust shall have the burden of overcoming that presumption in connection with the making of any determination contrary to that presumption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, upon a plea of *nolo contendere* or its equivalent, or entry of an order of probation prior to judgment, does not create a presumption that Indemnitee did not meet the requisite standard of conduct described herein for indemnification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The knowledge and/or actions, or failure to act, of any other trustee, officer, employee or agent of the Trust or any other trustee, director, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic real estate investment trust, corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise shall not be imputed to Indemnitee for purposes of determining any other right to indemnification under this Agreement.

Section 11. <u>Remedies of Indemnitee</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If (i) a determination is made pursuant to Section 9(b) of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advance of Expenses is not timely made pursuant to Sections 7 or 8 of this Agreement, (iii) no determination of entitlement to indemnification shall have been made pursuant to Section 9(b) of this Agreement within 60 days after receipt by the Trust of the request for indemnification, (iv) payment of indemnification is not made pursuant to Sections 6 or 8 of this Agreement within ten days after receipt by the Trust of a written request therefor, or (v) payment of indemnification pursuant to any other section of this Agreement or the Declaration of Trust or bylaws of the Trust is not made within ten days after a determination has been made that Indemnitee is entitled to indemnification, Indemnitee shall be entitled, at Indemnitee's option, to an adjudication in an appropriate court located in the State of Maryland having subject matter jurisdiction thereof and in which venue is proper of Indemnitee's entitlement to indemnification or advance of Expenses. Indemnitee shall commence a proceeding seeking an adjudication within 180 days following the date on which Indemnitee first has the right to commence such proceeding pursuant to this Section 11(a); provided, however, that the foregoing clause shall not apply to a proceeding brought by Indemnitee to enforce Indemnitee's rights under Section 6 of this Agreement. The Trust shall not oppose Indemnitee's right to seek any such adjudication.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In any judicial proceeding commenced pursuant to this Section 11, Indemnitee shall be presumed to be entitled to indemnification or assuming that Indemnitee shall have delivered the affirmation and undertaking required under Section 7 hereof or Section 8 hereof, as applicable advance of Expenses, as the case may be, under this Agreement and the Trust shall have the burden of proving that Indemnitee is not entitled to indemnification or advance of Expenses, as the case may be. If Indemnitee commences a judicial proceeding pursuant to this Section 11, Indemnitee shall not be required to reimburse the Trust for any advances made by the Trust pursuant to Section 7 of this Agreement until a final determination is made with respect to Indemnitee's entitlement to indemnification (as to which all rights of appeal have been exhausted or lapsed). The Trust shall, to the fullest extent not prohibited by law, be precluded from asserting in any judicial proceeding commenced pursuant to this Section 11 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or before any such arbitrator that the Trust is bound by all of the provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If a determination shall have been made pursuant to Section 9(b) of this Agreement that Indemnitee is entitled to indemnification, the Trust shall be bound by such determination in any judicial proceeding commenced pursuant to this Section 11, absent a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee's statement not materially misleading, in connection with the request for indemnification that was not disclosed in connection with the determination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event that Indemnitee is successful in seeking, pursuant to this Section 11, a judicial adjudication of Indemnitee's rights under, or to recover damages for breach of, this Agreement, Indemnitee shall be entitled to recover from the Trust, and shall be indemnified by the Trust for, any and all Expenses actually and reasonably incurred by Indemnitee in such judicial adjudication. If it shall be determined in such judicial adjudication that Indemnitee is entitled to receive part but not all of the indemnification or advance of Expenses sought, the Expenses incurred by Indemnitee in connection with such judicial adjudication shall be appropriately prorated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Interest shall be paid by the Trust to Indemnitee at the maximum rate allowed to be charged for judgments under the Courts and Judicial Proceedings Article of the Annotated Code of Maryland for amounts which the Trust pays or is obligated to pay for the period (i) commencing with either the tenth day after the date on which the Trust was requested to advance Expenses in accordance with Sections 7 or 8 of this Agreement or the 60<sup>th</sup> day after the date on which the Trust was requested to make the determination of entitlement to indemnification under Section 9(b) of this Agreement, as applicable, and (ii) ending on the date such payment is made to Indemnitee by the Trust.

Section 12. <u>Defense of the Underlying Proceeding</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Indemnitee shall notify the Trust promptly in writing upon being served with any summons, citation, subpoena, complaint, indictment, request or other document relating to any Proceeding which may result in the right to indemnification or the advance of Expenses hereunder and shall include with such notice a description of the nature of the Proceeding and a summary of the facts underlying the Proceeding. The failure to give any such notice shall not disqualify Indemnitee from the right, or otherwise affect in any manner any right of Indemnitee, to indemnification or the advance of Expenses under this Agreement unless the Trust's ability to defend in such Proceeding or to obtain proceeds under any insurance policy is materially and adversely prejudiced thereby, and then only to the extent the Trust is thereby actually so prejudiced.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to the provisions of the last sentence of this Section 12(b) and of Section 12(c) below, the Trust shall have the right to defend Indemnitee in any Proceeding which may give rise to indemnification hereunder; provided, however, that the Trust shall notify Indemnitee of any such decision to defend within 15 days following receipt of notice of any such Proceeding under Section 12(a) above. The Trust shall not, without the prior written consent of Indemnitee, which shall not be unreasonably withheld or delayed, consent to the entry of any judgment against Indemnitee or enter into any settlement or compromise with respect to Indemnitee which (i) includes an admission of fault of Indemnitee, (ii) does not include, as an unconditional term thereof, the full release of Indemnitee from all liability in respect of such Proceeding, which release shall be in form and substance reasonably satisfactory to Indemnitee, or (iii) would impose any Expense, judgment, fine, penalty or limitation on Indemnitee. This Section 12(b) shall not apply to a Proceeding brought by Indemnitee under Section 11 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding the provisions of Section 12(b) above, if in a Proceeding to which Indemnitee is a party by reason of Indemnitee's Trust Status, (i) Indemnitee reasonably concludes, based upon an opinion of counsel approved by the Trust, which approval shall not be unreasonably withheld or delayed, that Indemnitee may have separate defenses or counterclaims to assert with respect to any issue which may not be consistent with other defendants in such Proceeding, (ii) Indemnitee reasonably concludes, based upon an opinion of counsel approved by the Trust, which approval shall not be unreasonably withheld or delayed, that an actual or apparent conflict of interest or potential conflict of interest exists between Indemnitee and the Trust, or (iii) if the Trust fails to assume the defense of such Proceeding in a timely manner, Indemnitee shall be entitled to be represented by separate legal counsel of Indemnitee's choice, subject to the prior approval of the Trust, which approval shall not be unreasonably withheld or delayed, at the expense of the Trust. In addition, if the Trust fails to comply with any of its obligations under this Agreement or in the event that the Trust or any other person takes any action to declare this Agreement void or unenforceable, or institutes any Proceeding to deny or to recover from Indemnitee the benefits intended to be provided to Indemnitee hereunder, Indemnitee shall have the right to retain counsel of Indemnitee's choice, subject to the prior approval of the Trust, which approval shall not be unreasonably withheld or delayed, at the expense of the Trust (subject to Section 11(d) of this Agreement), to represent Indemnitee in connection with any such matter.

Section 13. <u>Non-Exclusivity; Survival of Rights; Subrogation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The rights of indemnification and advance of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the Declaration of Trust or bylaws of the Trust, any agreement or a resolution of the shareholders entitled to vote generally in the election of trustees or of the Board of Trustees, or otherwise. Unless consented to in writing by Indemnitee, no amendment, alteration or repeal of the Declaration of Trust or bylaws of the Trust, this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in Indemnitee's Trust Status prior to such amendment, alteration or repeal, regardless of whether a claim with respect to such action or inaction is raised prior or subsequent to such amendment, alteration or repeal. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right or remedy shall be cumulative and in addition to every other right or remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion of any right or remedy hereunder, or otherwise, shall not prohibit the concurrent assertion or employment of any other right or remedy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Trust hereby acknowledges that Indemnitee may have certain rights to indemnification, advancement of expenses and/or insurance provided by Rithm Capital Corp., a Delaware corporation, and certain of its affiliates (collectively, the "Rithm Indemnitors"). The Trust hereby agrees (i) that, as between the Trust and the Rithm Indemnitors, the Trust is the indemnitor of first resort (*i.e.,* its obligations to Indemnitee are primary and any obligation of the Rithm Indemnitors to advance Expenses or to provide indemnification for the same Expenses or liabilities incurred by Indemnitee are secondary), (ii) that the Trust shall be required to advance the full amount of expenses incurred by Indemnitee and shall be liable for the full amount of all Expenses, judgments, penalties, fines and amounts paid in settlement to the extent legally permitted and as required by the terms of this Agreement and the Declaration of Trust or bylaws of the Trust (or any other agreement between the Trust and Indemnitee), without regard to any rights Indemnitee may have against the Rithm Indemnitors, and, (iii) that the Trust irrevocably waives, relinquishes and releases the Rithm Indemnitors from any and all claims against the Rithm Indemnitors for contribution, subrogation or any other recovery of any kind in respect thereof. The Trust further agrees that no advancement or payment by the Rithm Indemnitors on behalf of Indemnitee with respect to any claim for which Indemnitee has sought indemnification from the Trust shall affect the foregoing and the Rithm Indemnitors shall have a right of contribution and/or be subrogated to the extent of such advancement or payment to all of the rights of recovery of Indemnitee against the Trust. The Trust and Indemnitee agree that the Rithm Indemnitors are express third party beneficiaries of the terms of this Section 13.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event of any payment under this Agreement, the Trust shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Trust to bring suit to enforce such rights.

Section 14. <u>Insurance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Trust will use its reasonable best efforts to acquire trustees and officers liability insurance, on terms and conditions deemed appropriate by the Board of Trustees, with the advice of counsel, covering Indemnitee or any claim made against Indemnitee by reason of Indemnitee's Trust Status and covering the Trust for any indemnification or advance of Expenses made by the Trust to Indemnitee for any claims made against Indemnitee by reason of Indemnitee's Trust Status. In the event of a Change in Control, the Trust shall maintain in force any and all trustees and officers liability insurance policies that were maintained by the Trust immediately prior to the Change in Control for a period of six years with the insurance carrier or carriers and through the insurance broker in place at the time of the Change in Control; provided, however, (i) if the carriers will not offer the same policy and an expiring policy needs to be replaced, a policy substantially comparable in scope and amount shall be obtained and (ii) if any replacement insurance carrier is necessary to obtain a policy substantially comparable in scope and amount, such insurance carrier shall have an AM Best rating that is the same or better than the AM Best rating of the existing insurance carrier; provided, further, however, in no event shall the Trust be required to expend in the aggregate in excess of 250% of the annual premium or premiums paid by the Trust for trustees and officers liability insurance in effect on the date of the Change in Control. In the event that 250% of the annual premium paid by the Trust for such existing trustees and officers liability insurance is insufficient for such coverage, the Trust shall spend up to that amount to purchase such lesser coverage as may be obtained with such amount. Notwithstanding anything contained herein to the contrary, the Trust is the primary indemnitor, and any indemnification or advancement obligation of any other person is secondary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without in any way limiting any other obligation under this Agreement, the Trust shall indemnify Indemnitee for any payment by Indemnitee which would otherwise be indemnifiable hereunder arising out of the amount of any deductible or retention and the amount of any excess of the aggregate of all judgments, penalties, fines, settlements and Expenses incurred by Indemnitee in connection with a Proceeding over the coverage of any insurance referred to in Section 14(a). The purchase, establishment and maintenance of any such insurance shall not in any way limit or affect the rights or obligations of the Trust or Indemnitee under this Agreement except as expressly provided herein, and the execution and delivery of this Agreement by the Trust and Indemnitee shall not in any way limit or affect the rights or obligations of the Trust under any such insurance policies. If, at the time the Trust receives notice from any source of a Proceeding to which Indemnitee is a party or a participant (as a witness or otherwise) the Trust has trustee and officer liability insurance in effect, the Trust shall give prompt notice of such Proceeding to the insurers in accordance with the procedures set forth in the respective policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Indemnitee shall cooperate with the Trust or any insurance carrier of the Trust with respect to any Proceeding.

Section 15. <u>Coordination of Payments</u>. The Trust shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable or payable or reimbursable as Expenses hereunder if and to the extent that Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise.

Section 16. <u>Contribution</u>. If the indemnification provided in this Agreement is unavailable in whole or in part and may not be paid to Indemnitee for any reason, other than for failure to satisfy the standard of conduct set forth in Section 4 or due to the provisions of Section 5, then, with respect to any Proceeding in which the Trust is jointly liable with Indemnitee (or would be if joined in such Proceeding), to the fullest extent permissible under applicable law, the Trust, in lieu of indemnifying and holding harmless Indemnitee, shall pay, in the first instance, the entire amount incurred by Indemnitee, whether for Expenses, judgments, penalties, and/or amounts paid or to be paid in settlement, in connection with any Proceeding without requiring Indemnitee to contribute to such payment, and the Trust hereby waives and relinquishes any right of contribution it may have at any time against Indemnitee.

Section 17. <u>Reports to Shareholders</u>. To the extent required by the MGCL and the MSTA, the Trust shall report in writing to its shareholders the payment of any amounts for indemnification of, or advance of Expenses to, Indemnitee under this Agreement arising out of a Proceeding by or in the right of the Trust with the notice of the meeting of shareholders of the Trust next following the date of the payment of any such indemnification or advance of Expenses or prior to such meeting.

Section 18. <u>Duration of Agreement; Binding Effect</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement shall continue until and terminate on the later of (i) the date that Indemnitee shall have ceased to serve as a trustee, officer, employee or agent of the Trust or as a trustee, director, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic real estate investment trust, corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise that such person is or was serving in such capacity at the request of the Trust and (ii) the date that Indemnitee is no longer subject to any actual or possible Proceeding (including any rights of appeal thereto and any Proceeding commenced by Indemnitee pursuant to Section 11 of this Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The indemnification and advance of Expenses provided by, or granted pursuant to, this Agreement shall be binding upon and be enforceable by the parties hereto and their respective successors and assigns (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Trust), shall continue as to an Indemnitee who has ceased to be a trustee, officer, employee or agent of the Trust or a trustee, director, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic real estate investment trust, partnership, corporation, limited liability company, joint venture, trust, employee benefit plan or other enterprise that such person is or was serving in such capacity at the request of the Trust, and shall inure to the benefit of Indemnitee and Indemnitee's spouse, assigns, heirs, devisees, executors and administrators and other legal representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Trust shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all, substantially all or a substantial part, of the business and/or assets of the Trust, by written agreement in form and substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent (to the maximum extent permitted by law) that the Trust would be required to perform if no such succession had taken place.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Trust and Indemnitee agree that a monetary remedy for breach of this Agreement, at some later date, may be inadequate, impracticable and difficult to ascertain, and further agree that such breach may cause Indemnitee irreparable harm. Accordingly, the parties hereto agree that Indemnitee may enforce this Agreement by seeking injunctive relief and/or specific performance hereof, without any necessity of showing actual damage or irreparable harm and that by seeking injunctive relief and/or specific performance, Indemnitee shall not be precluded from seeking or obtaining any other relief to which Indemnitee may be entitled. Indemnitee shall further be entitled to such specific performance and injunctive relief, including temporary restraining orders, preliminary injunctions and permanent injunctions, without the necessity of posting bonds or other undertakings in connection therewith. The Trust acknowledges that, in the absence of a waiver, a bond or undertaking may be required of Indemnitee by a court, and the Trust hereby waives any such requirement of such a bond or undertaking.

Section 19. <u>Severability</u>. If any provision or provisions of this Agreement shall be held to be invalid, void, illegal or otherwise unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including, without limitation, each portion of any Section, paragraph or sentence of this Agreement containing any such provision held to be invalid, void, illegal or otherwise unenforceable that is not itself invalid, void, illegal or otherwise unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by law; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section, paragraph or sentence of this Agreement containing any such provision held to be invalid, void, illegal or otherwise unenforceable, that is not itself invalid, void, illegal or otherwise unenforceable) shall be construed so as to give effect to the intent manifested thereby.

Section 20. <u>Counterparts</u>. This Agreement may be executed in one or more counterparts, (delivery of which may be by facsimile, or via e-mail as a portable document format (.pdf) or other electronic format), each of which will be deemed to be an original, and it will not be necessary in making proof of this Agreement or the terms of this Agreement to produce or account for more than one such counterpart. One such counterpart signed by the party against whom enforceability is sought shall be sufficient to evidence the existence of this Agreement.

Section 21. <u>Headings</u>. The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.

Section 22. <u>Modification and Waiver</u>. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor, unless otherwise expressly stated, shall such waiver constitute a continuing waiver.

Section 23. <u>Notices</u>. All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if (i) delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed, on the day of such delivery, or (ii) mailed by certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If to Indemnitee, to the address set forth on the signature page hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If to the Trust, to:

Rithm Perpetual Life Residential Trust

799 Broadway, 8th Floor

New York, NY 10003<br> Attention: Rithm Legal

Email: Group_RithmLegal@rithmcap.com

with a copy (which shall not constitute notice) to:

Sidley Austin LLP<br> 787 Seventh Avenue<br> New York, NY 10019<br> Attention: Jason A. Friedhoff

Email: jfriedhoff@sidley.com

or to such other address as may have been furnished in writing to Indemnitee by the Trust or to the Trust by Indemnitee, as the case may be. A copy of each notice shall also be sent to the email address set forth herein.

Section 24. <u>Governing Law</u>. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Maryland, without regard to its conflicts of laws rules.

[SIGNATURE PAGE FOLLOWS]

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

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|:---|
| COMPANY: |
| RITHM PERPETUAL LIFE RESIDENTIAL TRUST |
| By: |
| Name: |
| Title: |
| INDEMNITEE: |
| By: |
| Name: |
| Address: |
| Email: |

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**EXHIBIT A**

AFFIRMATION AND UNDERTAKING TO REPAY EXPENSES ADVANCED

To: The Board of Trustees of Rithm Perpetual Life Residential Trust

Re: Affirmation and Undertaking

Ladies and Gentlemen:

This Affirmation and Undertaking is being provided pursuant to that certain Indemnification Agreement dated the _____ day of ______________, 20__, by and between Rithm Perpetual Life Residential Trust, a Maryland statutory trust (the "Trust"), and the undersigned Indemnitee (the "Indemnification Agreement"), pursuant to which I am entitled to advance of Expenses in connection with **[Description of Proceeding]** (the "Proceeding").

Terms used herein and not otherwise defined shall have the meanings specified in the Indemnification Agreement.

I am subject to the Proceeding by reason of my Trust Status or by reason of alleged actions or omissions by me in such capacity. I hereby affirm my good faith belief that at all times, insofar as I was involved as [a trustee] [and] [an officer] of the Trust, no act or omission of mine giving rise to the Proceeding was the result of gross negligence or intentional misconduct.

In consideration of the advance by the Trust for Expenses incurred by me in connection with the Proceeding (the "Advanced Expenses"), I hereby agree that if, in connection with the Proceeding, it is established that an act or omission of mine giving rise to the Proceeding was the result of gross negligence or intentional misconduct , then I shall promptly reimburse the portion of the Advanced Expenses relating to the claims, issues or matters in the Proceeding as to which the foregoing findings have been established.

IN WITNESS WHEREOF, I have executed this Affirmation and Undertaking on this ___ day of ____________________, 20____.

Name:

## Exhibit 10.3

**Exhibit 10.3**

**RITHM PERPETUAL LIFE RESIDENTIAL TRUST**

**INDEPENDENT TRUSTEE COMPENSATION PLAN**

**Effective November 18, 2025**

1. **Purpose**. Rithm Perpetual Life Residential Trust, a Maryland statutory trust (the " <u>Company</u> "), established
this Independent Trustee Compensation Plan (the " <u>Plan</u> ") to attract and retain highly qualified individuals to serve
on the Company's Board of Trustees by providing them with competitive compensation, consisting in part of an equity interest in
the Company. This Plan allows Independent Trustees to receive a significant portion of their remuneration in Company share awards, providing
them with a personal financial stake in the success of the Company and the value of its shares in order to align their interests with
those of the Company's general shareholders. The terms of this Plan apply to all of the Company's active Independent Trustees.

2. **Definitions**. The following terms shall be defined for purposes of the Plan as set forth below:

"<u>Award</u>" means a grant of Restricted Shares or fully vested Shares to a Participant pursuant to Section 5(b).

"<u>Annual Retainer</u>" means the regular annual retainer payable by the Company to a Participant for service as a trustee, in accordance with Section 3.

"<u>Award Agreement</u>" means a written or electronic agreement entered into by the Company and a Participant setting forth the terms and conditions applicable to Equity Retainer Payment pursuant to this Plan (which may include or require the execution and delivery by the Participant of a stock power or similar instrument in favor of the Company to facilitate the terms of the Award).

"<u>Beneficial Owner</u>" shall have the meaning given such term in Rule 13d-3 of the General Rules and Regulations under the Exchange Act.

"<u>Board</u>" means the Board of Trustees of the Company.

"<u>Cash Retainer Payment</u>" refers to that portion of the Annual Retainer to be paid to a Participant in cash, in accordance with Section 4 (including fully vested Shares received in lieu of cash for the Cash Retainer Payment pursuant to an election in accordance with Section 3(a)).

"<u>Change in Control</u>," with respect to an Award, means and includes the occurrence of any one of the following events (but shall specifically exclude an Offering):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) during any consecutive 12-month period, individuals who, at the beginning of such period, constitute the Board (the "Incumbent
Trustees") cease for any reason to constitute at least a majority of such Board, provided that any person becoming a trustee after
the beginning of such 12-month period and whose election or nomination for election was approved by a vote of at least a majority of the
Incumbent Trustees then on the Board shall be an Incumbent Trustee; or;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Person becomes a Beneficial Owner, directly or indirectly, of either (i) 50% or more of the then-outstanding Common Shares
or (ii) securities of the Company representing 50% or more of the combined voting power of the Company's then outstanding securities
eligible to vote for the election of trustees (the "Voting Securities"); provided, however, that for purposes of this subsection
(b), the following acquisitions of Common Shares or Voting Securities shall not constitute a Change in Control: (w) an acquisition
directly from the Company, (x) an acquisition by the Company or a Subsidiary, (y) an acquisition by any employee benefit plan
(or related trust) sponsored or maintained by the Company or any Subsidiary, or (z) an acquisition pursuant to a Non-Qualifying Transaction
(as defined in subsection (c) below); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the consummation of a reorganization, merger, consolidation, statutory share exchange or similar form of corporate transaction involving
the Company or a Subsidiary (a "Reorganization"), or the sale or other disposition of all or substantially all of the Company's
assets (a "Sale") or the acquisition of assets or stock of another corporation or other entity (an "Acquisition"),
unless immediately following such Reorganization, Sale or Acquisition: (i) all or substantially all of the individuals and entities
who were the Beneficial Owners, respectively, of the outstanding Common Shares and outstanding Voting Securities immediately prior to
such Reorganization, Sale or Acquisition beneficially own, directly or indirectly, more than 50% of, respectively, the then-outstanding
Common Shares and the combined voting power of the then-outstanding Voting Securities entitled to vote generally in the election of directors/trustees,
as the case may be, of the entity resulting from such Reorganization, Sale or Acquisition (including, without limitation, an entity which
as a result of such transaction owns the Company or all or substantially all of the Company's assets or shares either directly or
through one or more subsidiaries, the "Surviving Entity") in substantially the same proportions as their ownership, immediately
prior to such Reorganization, Sale or Acquisition, of then-outstanding Common Shares and then-outstanding Voting Securities, as the case
may be, and (ii) no Person (other than (x) the Company or any Subsidiary, (y) the Surviving Entity or its ultimate parent
entity, or (z) any employee benefit plan (or related trust) sponsored or maintained by any of the foregoing) is the Beneficial Owner,
directly or indirectly, of 50% or more of the total common shares or 50% or more of the total voting power of the outstanding voting securities
eligible to elect directors or trustees of the Surviving Entity, and (iii) at least a majority of the members of the board of directors
or trustees of the Surviving Entity were Incumbent Trustees at the time of the Board's approval of the execution of the initial
agreement providing for such Reorganization, Sale or Acquisition (any Reorganization, Sale or Acquisition which satisfies all of the criteria
specified in (i), (ii) and (iii) above shall be deemed to be a "Non-Qualifying Transaction").

"<u>Code</u>" means the Internal Revenue Code of 1986, as it may be amended from time to time. Any reference to a section of the Code shall be deemed to include a reference to any regulations promulgated thereunder.

"<u>Common Shares</u>" means the common shares of beneficial interest, par value $0.01 per share, of the Company.

"<u>Company</u>" means Rithm Perpetual Life Residential Trust.

"<u>Declaration of Trust</u>" means the Declaration of Trust of the Company, as it may be amended or restated from time to time.

"<u>Disability</u>" means the Participant's inability to perform the duties as an Independent Trustee for at least 90 consecutive days as a result of the Participant's incapacity due to physical or mental illness.

"<u>Effective Date</u>" has the meaning set forth in Section 10.

"<u>Equity Retainer Payments</u>" means that portion of the Annual Retainer paid in the form of one or more Awards, in accordance with Section 5 and excluding fully vested Shares granted in lieu of the cash portion of a Participant's Annual Retainer pursuant to an election under Section 3(a).

"<u>Exchange Act</u>" means the Securities Exchange Act of 1934, as amended.

"<u>Fair Market Value</u>," with respect to an Equity Retainer Payment, means, as of any date, the value of a Share as determined below. If Shares are listed on any established stock exchange or a national market system, the Fair Market Value shall be the closing price of a Share (or if no sales were reported, the closing price on the date immediately preceding such date) as quoted on such exchange or system on the day of determination, as reported in *The Wall Street Journal* or such other source as the Board deems reliable. In the absence of an established market for the Shares, the Fair Market Value shall be the most recently determined net asset value per share of the Company's Class E Common Shares as of the applicable Grant Date or such other method determined by the Board, in the good faith exercise of its discretion, to be appropriate.

"<u>Grant Date</u>" means, with respect to an Award granted pursuant to Section 5(b), the first date on which all necessary trust action has been taken to approve the grant of the Award as provided in the Plan, or such later date as is determined and specified as part of that authorization process.

"<u>Independent Trustee</u>" shall have the meaning set forth in the Declaration of Trust.

"<u>Offering</u>" means a public or private offering of any class or series of the Company's equity securities pursuant to a registration statement filed by the Company under the Securities Act or exemption therefrom.

"<u>Participant</u>" means, as of the Effective Date and thereafter for so long as the Plan remains in effect, an individual who serves on the Board as an Independent Trustee. An individual who ceases to serve on the Board, or no longer qualifies as an Independent Trustee, ceases to be a Participant under this Plan.

"<u>Person</u>" means any individual, entity or group, within the meaning of Section 3(a)(9) of the Exchange Act and as used in Section 13(d)(3) or 14(d)(2) of the Exchange Act.

"<u>Plan</u>" means this Independent Trustee Compensation Plan, as it may be amended or restated from time to time.

"<u>Restricted Shares</u>" means Shares granted to a Participant under Section 5 that are subject to the restrictions and terms of the Plan and the applicable Award Agreement.

"<u>Section 409A</u>" means section 409A of the Code and the regulations promulgated thereunder, as may be amended from time to time, or any successor rule.

"<u>Securities Act</u>" means the Securities Act of 1933, as amended.

"<u>Share</u>" means a Class E Common Share.

"<u>Subsidiary</u>" means any corporation, limited liability company, partnership or other entity of which a majority of the outstanding voting stock or voting power is beneficially owned directly or indirectly by the Company.

"<u>Supplemental Retainer Amount</u>" means the additional Supplemental Retainer Amounts, as set forth in <u>Appendix A</u>, as amended from time to time (including fully vested Shares received in lieu of cash for the Supplemental Retainer Amount pursuant to an election in accordance with Section 3(a)).

3. **Annual Retainer**. Each Participant is eligible to receive an Annual Retainer for his or her period of service on the Board in
a total annualized amount consisting of a "Basic Retainer Amount" (as set forth in <u>Appendix A</u>, as amended from time
to time) *plus*, depending upon the Participant's position on the Board or a committee of the Board, a "Supplemental
Retainer Amount." Fifty percent (50%) of the Basic Retainer Amount is payable in the form of an Equity Retainer Payment consisting
of a grant of Restricted Shares, in accordance with Section 5, and fifty percent (50%) of the Basic Retainer Amount is payable in
the form of a Cash Retainer Payment, and 100% of the Supplemental Retainer Amount (if applicable) is payable in cash or, at the option
of the Participant pursuant to an election in accordance with Section 3(a), fully vested Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Form of Payment Election.** A Participant may elect, on a prospective basis, to waive his or her right to receive all or
a portion of the Annual Retainer or Supplemental Retainer Amount otherwise payable in cash and receive, in lieu thereof and at the same
time the cash fees were to be paid to such Participant, an award of fully vested Shares in accordance with the provisions of Section 5;
provided, that such election is received five (5) days prior to the scheduled payment date; provided, further, that any such Shares
will be distributed to the Participant in accordance with the provisions of Section 4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Cash and Equity Retainer Payments**. Cash Retainer Payments and the Supplemental Retainer Amounts will be made pursuant to Section 4
and Equity Retainer Payments will be made pursuant to Section 5. For partial years of service as a Participant, the Board will apply
the terms of the Plan on a pro rata basis to the extent reasonably practicable, in its discretion. All Equity Retainer Payments will be
issued under, and subject to the terms and limitations of, the Plan pursuant to a grant hereunder and an Award Agreement whose terms are
consistent with the terms of this Plan.

4. **Cash Retainer Payment and Supplemental Retainer Amounts**. The Cash Retainer Payment and Supplemental Retainer Amounts will be
paid to a Participant in equal quarterly amounts, in arrears, on the last business day of each calendar quarter in which the Participant
performed services for the Company, with the number of Shares received, if any, determined based on the Fair Market Value of a Share as
of the last business day of such calendar quarter. A Cash Retainer Payment or Supplemental Retainer Amount that relates to any period
in which the Participant does not perform services for the entire period will be reduced proportionately.

5. **Equity Retainer Payments** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Shares Available for Issuance.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **Maximum Number of Shares Available**. Subject to adjustment as provided in this Section 5, the maximum number of Shares
that will be available for issuance under the Plan will be 500,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) **Accounting for Awards**. Shares that are issued under the Plan or that are subject to outstanding Awards will be applied to reduce
the maximum number of Shares remaining available for issuance under the Plan; provided, however, that Shares forfeited under an Award
(or Shares issued pursuant to or underlying an Award that has expired or terminated for any reason without lapse of risk of forfeiture
in favor of, or transfer of the underlying Shares to, the Participant) will automatically again become available for issuance under the
Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) **Adjustments to Awards**. In the event of any equity restructuring (within the meaning of Financial Accounting Standards Board
Accounting Standards Codification Topic 718, Compensation—Stock Compensation, or any successor or replacement accounting standard)
that causes the per share value of the Common Shares to change, such as a share dividend, share split, spinoff, rights offering or recapitalization
through an extraordinary cash dividend, the number and class of securities available under this Plan and the terms of each outstanding
Award (including the number and class of securities subject thereto) shall be appropriately adjusted by the Board. In the event of any
other change in corporate capitalization, including a merger, consolidation, reorganization, or partial or complete liquidation of the
Company, such equitable adjustments described in the foregoing sentence may be made as determined to be appropriate and equitable by the
Board to prevent dilution or enlargement of rights of Participants. In either case, the decision of the Board regarding any such adjustment
shall be final, binding and conclusive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Equity Retainer Payments**. On the Grant Date in each year during the term of the Plan, the Company will grant to each active
Participant an Equity Retainer Payment Award under the Plan in respect of fifty percent (50%) of the Participant's Annual Retainer
for the year. The Company will grant an interim Award to an individual who becomes a Participant during a year, on a pro rata basis, calculated
based on the period from the date the Participant becomes eligible under the Plan through the expected next Grant Date (which is assumed
to be 365 days following the prior Grant Date), unless the Board decides to provide such new Participant with an alternative form of compensation
of substantially equivalent value (as determined by the Board). The number of Restricted Shares (including fractional Restricted Shares)
underlying the Equity Retainer Payment Award will be calculated by dividing the dollar amount equal to fifty percent (50%) of the Participant's
Annual Retainer by the Fair Market Value of a Share on the Grant Date. The Equity Retainer Payment Award will be granted pursuant to the
terms of the Plan and an Award Agreement between the Participant and the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Vesting of Awards**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **Vesting**. Except as otherwise provided in an applicable Award Agreement, the Restricted Shares granted pursuant to Section 5(b) will
vest on the first anniversary of the Grant Date if the recipient remains a Participant under the Plan through such date. Shares granted
in lieu of cash pursuant to a Participant's election under Section 3(a) shall be fully vested as of the Grant Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) **Accelerated Vesting**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) If the recipient ceases to be a Participant under this Plan before the scheduled vesting date due to the recipient's death or
Disability, then the unvested portion of the recipient's Award shall immediately vest on the date the recipient ceases to be a Participant
under this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Without limiting the authority of the Board under Section 5(a)(iii), if a Change in Control occurs while the recipient is a Participant
and before the scheduled vesting date of the Award, then, if approved by the Board in its sole discretion either in an applicable Award
Agreement at the time of grant or at any time after the grant of an Award (including upon the Change in Control), the unvested portion
(if any) of all outstanding Awards shall immediately vest and become nonforfeitable. All other Awards will terminate and be forfeited
upon the Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) **Forfeiture**. Except as otherwise determined by the Board, an individual who ceases to be a Participant under this Plan shall
automatically forfeit all Restricted Shares granted pursuant to Section 5(b) that remain unvested at such time (subject to any
accelerated vesting under Section 5(c)(ii) or an applicable Award Agreement), and such forfeited shares shall automatically
be re-conveyed to the Company. Any rights or interest of such former Participants in such forfeited Restricted Shares shall be automatically
cancelled and terminated, without any consideration, and be of no further force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) **Clawback/Recovery**. Restricted Shares granted pursuant to Section 5(b) (and any compensation paid or Shares issued
under this Plan) will be subject to recoupment in accordance with any clawback policy that the Company may be required to adopt or as
is otherwise required by the Dodd-Frank Wall Street Reform and Consumer Protection Act or other applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Shareholder Rights**. Except as provided in Sections 5(e), 5(f) and 5(h), or in an applicable Award Agreement, a Participant
will have full voting and dividend rights as a shareholder with respect to the Restricted Shares granted pursuant to Section 5(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Dividends and Distributions**. Unless the Board determines otherwise in its sole discretion (either in an applicable Award Agreement
evidencing the Award at the time of grant or at any time after the grant of the Award), any extraordinary dividends or distributions (other
than regular cash dividends) paid with respect to unvested Restricted Shares will be subject to the same restrictions as the Restricted
Shares to which such dividends or distributions relate. The Board will determine in its sole discretion whether any interest will be paid
on such dividends or distributions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Enforcement of Restrictions**. To enforce the restrictions referred to herein and in any applicable Award Agreement, the Board
may place a legend on the share certificates (if any) referring to such restrictions and may require the Participant, until the restrictions
have lapsed, to keep the share certificates, together with duly endorsed stock powers, in the custody of the Company or its transfer agent,
or to maintain evidence of share ownership, together with duly endorsed stock powers, in a uncertificated book-entry stock account with
the Company's transfer agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Settlement of Awards**. If and when the Restricted Shares granted pursuant to Section 5(b) vest in accordance with
Section 5(c), the Company will render the Shares free of continued time-based restriction by, at the discretion of the Company, (i) delivering
to the Participant evidence of the removal of any time-based restricted legends on the book entry Shares credited to the account of the
Participant, or (ii) delivering such Shares to the Participant in certificate form, with any time-based restricted legends removed,
and the Company shall destroy any stock powers received with respect to such Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **Restrictions on Transfer.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Except pursuant to testamentary will or the laws of descent and distribution, as otherwise expressly permitted by Section 5(h)(ii),
as otherwise provided in any applicable Award Agreement or as otherwise approved by the Board, no right or interest of any Participant
in Restricted Shares prior to vesting of such Restricted Shares will be assignable or transferable, or subjected to any lien, during the
lifetime of the Participant, either voluntarily or involuntarily, directly or indirectly, by operation of law or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) A Participant will be entitled to designate a beneficiary to receive Restricted Shares upon such Participant's death, and in
the event of such Participant's death, settlement of any Restricted Shares will be made to such beneficiary. If a deceased Participant
has failed to designate a beneficiary, or if a beneficiary designated by the Participant fails to survive the Participant, settlement
of any Restricted Shares will be made to the Participant's estate. If a deceased Participant has designated a beneficiary and such
beneficiary survives the Participant but dies before complete settlement of his or her Awards, then such settlement will be made to the
estate of the beneficiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **Securities Laws and Other Restrictions**. Notwithstanding any other provision of the Plan or any Award Agreement, but without
limiting transfer restrictions otherwise imposed on an Award or Shares, a Participant may not sell, assign, transfer or otherwise dispose
of Shares issued pursuant to Awards granted under the Plan, unless (i) there is in effect with respect to such Shares a registration
statement under the Securities Act and any applicable securities laws of a state or foreign jurisdiction or an exemption from such registration
under the Securities Act and applicable state or foreign securities laws, and (ii) there has been obtained any other consent, approval
or permit from any other regulatory body which the Board, in its sole discretion, deems necessary or advisable. The Company may condition
such issuance, sale, or transfer upon the receipt of any representations or agreements from the parties involved, and the placement of
any legends on certificates representing Shares, as may be deemed necessary or advisable by the Company in order to comply with such securities
laws or other restrictions.

6. **Expense Reimbursement**. Subject to the terms of any applicable reimbursement policy established by the Company, the Company
will reimburse Participants for reasonable out-of-pocket expenses they incur while serving as an Independent Trustee to attend meetings
or other Company functions in connection with their service on the Board. To the extent such reimbursements are subject to Section 409A,
(a) the amount of expenses eligible for reimbursement during any one calendar year shall not affect the amount of expenses eligible
for reimbursement in any other calendar year; (b) reimbursements will be made no later than December 31 of the year following
the year in which the expense is incurred; and (c) no right to reimbursement hereunder shall be subject to liquidation or exchange
for another benefit.

7. **Meeting Fees**. Unless otherwise determined by the Board, Participants will not be entitled to any additional remuneration in
the form of fees for attending a meeting of the Board or a committee of the Board.

8. **Administration of the Plan**. The Board shall have full authority to administer the Plan and to interpret and construe the Plan
in accordance with its terms. The Board is authorized to adopt such rules, regulations, forms and guidelines for administering the Plan,
and delegate such Plan administrative responsibilities, in each case, as it deems necessary or appropriate. Without limiting the foregoing,
all Participant elections under the Plan must be submitted in such form and are subject to such procedures as may be authorized by the
Board, from time to time, which procedures and forms may incorporate limitations, restrictions, and conditions the Board deems to be necessary
or appropriate. All actions of the Board shall be final, conclusive and binding upon all persons to the fullest extent permitted under
applicable law. The Board may rely upon any information furnished by the Company, its accountants and other advisors in its administration
of the Plan. Subject to applicable law and the Company's governing documents, no individual serving on the Board will have personal
liability by reason of any actions or omissions made in good faith and in furtherance of the Board's administration of the Plan.

9. **Amendment and Termination**. The Board may at any time amend, suspend or discontinue the Plan at any time; provided that (a) no
such amendment, suspension or termination shall impair the right of a Participant with respect to earned and vested benefits under the
Plan without his or her written consent, and (b) to the extent that approval by the Company's shareholders is required for
any modification, no such modification shall be effective without such approval. Nothing in this Section serves to restrict or impair
the Board's ability at any time to exercise its discretionary authority in the administration of the Plan.

10. **Effective Date and Term of Plan**. The Effective Date of the Plan is November 18, 2025 (the date as of which this Plan is
adopted by the Board), and the Plan shall continue in effect until terminated or replaced by the Board.

11. **Miscellaneous Provisions**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Transferability**. No right under the Plan may be sold, pledged, assigned, hypothecated, transferred or disposed of in any manner
other than by will or by the laws of descent or distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **No Right to Continued Service**. Nothing contained in the Plan confers to any Participant any right to continue a service relationship
with the Company or its affiliates or interferes in any way with the right of the Company or its affiliates at any time to terminate such
service relationship in accordance with applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Section 409A**. It is intended that this Plan and all payments made hereunder will be exempt from Section 409A, and
the Plan shall be administered accordingly, and interpreted and construed on a basis consistent with such intent. For purposes of Section 409A,
each payment to a trustee under the Plan shall be considered a separate payment. To the extent that any provision of the Plan or payment
arrangement hereunder is not exempt from, and would fail to comply with the applicable requirements of, Section 409A, the Board may,
in its sole discretion and without requiring any Participant's consent, make such modifications to the extent it determines necessary
or advisable to comply with the requirements of Section 409A; provided that the Company shall in no event be obligated to pay any
interest, compensation, or penalties in respect of any such modifications. Nothing in this Section shall be construed as a guarantee
of any particular tax effect for the payments made hereunder, and the Company does not guarantee that any compensation provided under
this Plan will be exempt from or satisfy the provisions of Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Governing Law**. The Plan and the rights of all persons under the Plan shall be construed and administered in accordance with
the laws of Maryland without regard to its conflict of law principles.

**Appendix A. Annual Retainer Schedule**

Each Participant's total Annual Retainer for one year of service on the Board is determined as the sum of the Basic Retainer Amount plus, if applicable, the Supplemental Retainer Amount, where the Basic Retainer Amount is $130,000 (or such higher amount as approved by the Board) and the Supplemental Retainer Amount depends upon the position on the Board/Committees of the Board as set forth in the following table:

---

| | |
|:---|:---|
| **Position** | **Supplemental Retainer Amount** |
| Audit Committee Chair | $15000 |
| Audit Committee Member | $10000 |

---

## Exhibit 10.4

**Exhibit 10.4**

**RESTRICTED SHARE AWARD**

**RITHM PERPETUAL LIFE RESIDENTIAL TRUST<br> INDEPENDENT TRUSTEE COMPENSATION PLAN**

**NOTICE OF GRANT**

You have been granted an award (the "***Award***") by Rithm Perpetual Life Residential Trust (the "***Company***"), pursuant and subject to the terms and conditions of the Company's Independent Trustee Compensation Plan (the "***Plan***"), the terms and conditions set forth below and in the attached Restricted Share Award Agreement (the "***Award Agreement***"). Capitalized terms used in this Notice of Grant and the Award Agreement, unless otherwise defined, shall have the meanings set forth in the Plan.

---

| | |
|:---|:---|
| **Participant:** | |
| **Grant Date:** | |
| **Award:** | **[initial Award]/[Equity Retainer Payment]** |
| **Total Fair Market Value of Award on Grant Date:** | **$[65,000]** |
| **Total Number of Restricted Shares:** | **[insert number by dividing the Fair Market Value of the Award on the Grant Date by the Fair Market Value of a Share on the Grant Date]** |
| **Vesting Start Date:** | **[Grant Date]/[insert date if other than the Grant Date]** |
| **Vesting:** | The Award shall vest on the one-year anniversary of the Grant Date, subject to accelerated vesting in accordance with Section 5(c)(ii) of the Plan. |

---

You and the Company agree that the Award is governed by this Notice of Grant and by the provisions of the Plan and the Award Agreement, all of which are attached to and made a part of this document. You acknowledge receipt of copies of the Plan and the Award Agreement, represent that you have read and are familiar with their provisions and accept the Award subject to all of their terms and conditions.

---

| | |
|:---|:---|
| **RITHM PERPETUAL LIFE RESIDENTIAL TRUST** | **PARTICIPANT** |
| By: |  |
|  | Signature |
| Its: |  |
|  | Date: |

---

Address   <br> Address <br>

ATTACHMENTS: Independent Trustee Compensation Plan, Restricted Share Award Agreement, Assignment Separate from Certificate

**RITHM PERPETUAL LIFE RESIDENTIAL TRUST<br> INDEPENDENT TRUSTEE COMPENSATION PLAN**

**RESTRICTED SHARE AWARD AGREEMENT**

Pursuant to this Restricted Share Award Agreement (this "***Award Agreement***"), and subject to the terms and conditions herein and in the Rithm Perpetual Life Residential Trust Independent Trustee Compensation Plan (the "***Plan***"), which Plan is incorporated by reference into this Award Agreement, Rithm Perpetual Life Residential Trust (the "***Company***") grants to the Participant identified in the Notice of Grant attached hereto (which Notice of Grant forms part of this Award Agreement), a restricted share award (the "***Award***") under the Plan, conditioned on the Participant's acknowledgment of receipt and acceptance in accordance with Section 13 hereof. Participant's failure to execute the acknowledgement of receipt and acceptance shall render the Award and this Award Agreement null and void and of no force and effect. Capitalized terms used in this Award Agreement or the Notice of Grant, unless otherwise defined, shall have the meanings set forth in the Plan.

1. **Grant of Restricted Shares**. Subject to the terms and conditions of this Award Agreement and the Plan, the Company grants to
the Participant the number of Restricted Shares set forth in the Notice of Grant. As a condition to the issuance of the Restricted Shares,
the Participant will execute and deliver the Notice of Grant to the Company, accompanied by an Assignment Separate from Certificate duly
endorsed (with date and number of shares <u>blank</u>) in the form provided by the Company.

2. **Vesting**. The Award is subject to the vesting terms set forth in the Notice of Grant, except as may otherwise be provided in
this Award Agreement or in the Plan.

3. **Forfeiture**. The Award is subject to the forfeiture terms set forth in Section 5(c)(iii) of the Plan.

4. **Change in Control**. In the event of a Change in Control, the Award shall be subject to the provisions of Section 5(c)(ii)(B) of
the Plan.

5. **Transfer of Shares**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The transfer of Shares pursuant to this Award shall be effectuated by an appropriate entry on the books of the Company or the issuance
of certificates representing such shares (bearing such legends as the Board deems necessary or desirable), as determined by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything herein to the contrary, no transfer of Shares shall become effective nor share certificates issued until
the Company determines that such transfer, issuance, and delivery is in compliance with all applicable, laws, regulations of governmental
authority, and the requirements of any securities exchange on which Shares may be traded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Board may, as a condition to the issuance of Shares, require the Participant to make covenants and representations and/or enter
into agreements with the Company to reflect the Participant's rights and obligations as a shareholder of the Company and any limitations
and restrictions on such Shares.

6. **Section 83(b) Election**. The Participant is hereby advised to consult with the Participant's own personal tax,
financial, and/or legal advisors regarding the tax consequences of this Award. The Participant understands that the Participant may elect
to file an election under Section 83(b) of the Code (an "  ***Section 83(b) Election***") with the
Internal Revenue Service and the Company within thirty (30) days after the Grant Date. A Section 83(b) Election form with instructions
is provided for this purpose as <u>Appendix A</u> hereto. The Company does not make any recommendations with respect to the decision to
make a Section 83(b) Election. It is solely the responsibility of the Participant, and not the Company, to decide whether to
make a Section 83(b) Election in connection with this Award Agreement and, if so, to do so in a timely manner.

7. **No Assignment or Transfer**. The Award granted hereunder may not be sold, pledged, assigned, hypothecated, transferred, or disposed
of in any manner other than by will or by the laws of descent or distribution. No transfer by will or the laws of descent and distribution
shall be effective to bind the Company unless the Board shall have been furnished with (i) written notice thereof along with such
evidence as the Board may deem necessary to establish the validity of the transfer and (ii) an agreement by the transferee to comply
with all the terms and conditions of the Award that are or would have been applicable to the Participant and to be bound by the acknowledgements
made by the Participant in connection with the grant.

8. **Participant Representations**. By accepting the Award, the Participant represents and acknowledges the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Participant has received a copy of the Plan, has reviewed the Plan and this Award Agreement in their entirety, and has had an
opportunity to obtain the advice of independent counsel prior to accepting the Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Participant has had the opportunity to consult with a tax advisor concerning the tax consequences of accepting the Award, and
understands that the Company makes no representation regarding the tax treatment as to any aspect of the Award, including the grant, vesting
and settlement of the Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Participant consents to the collection, use, and transfer, in electronic or other form, of the Participant's personal data
by the Company, the Board, and any third party retained to administer the Plan for the exclusive purpose of administering the Award and
Participant's participation in the Plan. The Participant agrees to promptly notify the Board of any changes in the Participant's
name, address, or contact information during the entire period of Plan participation.

9. **Plan**. This Award Agreement is subject to the provisions of the Plan (including, without limitation, Section 5(a)(iii) and
Section 5(c)) and shall be interpreted in accordance therewith. In the event that the provisions of this Award Agreement and the
Plan conflict, the Plan shall control.

10. **Administration; Interpretation**. In accordance with the Plan and this Award Agreement, the Board shall have full discretionary
authority to administer the Award, including discretionary authority to interpret and construe any and all provisions relating to the
Award. Decisions of the Board shall be final, binding, and conclusive on all parties.

11. **Successors**. The terms of this Award Agreement shall be binding upon and inure to the benefit of the heirs of the Participant
or distributees of the Participant's estate and any successor to the Company.

12. **Governing Law; Severability**. This Award Agreement shall be construed and administered in accordance with the laws of the State
of Maryland without regard to its conflict of law principles. Any determination by a court of competent jurisdiction or relevant governmental
authority that any provision or part of a provision in this Award Agreement is unlawful or invalid shall not serve to invalidate any portion
of this Award Agreement not found to be unlawful or invalid, and any provision or part of a provision found to be unlawful or invalid
shall be construed in a manner that will give effect to the terms of such provision or part of a provision to the fullest extent possible
while remaining lawful and valid.

13. **Acknowledgment of Receipt and Acceptance**. By signing below (or execution by other means approved by the Board, including by
electronic signature), the undersigned acknowledges receipt and acceptance of the Award, agrees to the representations made in Section 8,
and indicates his or her intention to be bound by this Award Agreement and the terms of the Plan.

---

| |
|:---|
| **Participant's acknowledgment of receipt and acceptance:** |
| [Participant name] |
| Date: |
| **Rithm Perpetual Life Residential Trust** |
| By: [name and title of company representative] |

---

**Appendix A. Section 83(b) Election Form and Instructions.**

**<u>IMPORTANT FEDERAL TAX INFORMATION</u>**

**INSTRUCTIONS REGARDING SECTION 83(b) ELECTIONS**

1. **The Section 83(b) Election is <u>irrevocable</u>. The Section 83(b) Election is a voluntary election that is available to you. It is your decision whether to file a Section 83(b) Election.** 

2. **If you choose to make a Section 83(b) Election, the Section 83(b) Election Form must be filed with the Internal Revenue Service within 30 days of the Grant Date; no exceptions to this deadline are made. You should send the election to the Internal Revenue Service center located at the address to which you send your federal income tax return (IRS form 1040) based on your place of residence. <u>The election should be sent via certified mail with return receipt requested or a delivery service that provides proof of delivery</u>.** 

3. **You must deliver a copy of the Section 83(b) Election Form to the Corporate Secretary or other designated officer of the Company as soon as practicable after you receive proof that the original was received by the Internal Revenue Service. Even though a copy of your Section 83(b) Election Form is to be delivered to the Company, you remain solely responsible for properly filing the original with the Internal Revenue Service.** 

4. **If you make a Section 83(b) Election and later forfeit the Shares, you will not be entitled to a refund of the taxes paid with respect to the gross income you recognized under the Section 83(b) Election.** 

5.  **<u>You must consult your personal tax advisor before making a Section 83(b) Election</u>. You may not rely on this information, the Company, or any of the Company's officers, trustees, or employees for tax or legal advice regarding the Award or the Section 83(b) Election. The election form attached to these instructions is intended as a sample only. It must be tailored to your circumstances and may not be relied upon without consultation with a personal tax advisor.** 

**SECTION 83(b) ELECTION FORM**

***Election Pursuant to Section 83(b) of the Internal Revenue Code to<br> Include Property in Gross Income in Year of Transfer***

The undersigned hereby makes an election pursuant to Section 83(b) of the Internal Revenue Code with respect to the property described below and supplies the following information in accordance with the regulations promulgated thereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The name, address, and taxpayer identification number of the undersigned are:

___ - ___ - ______

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The property with respect to which the election is made is _____________ Class E Common Shares of Rithm Perpetual Life Residential Trust, a Maryland statutory trust (the "<u>Company</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The date on which the property was transferred was ___________, 20___, the date on which the taxpayer received the property pursuant to a grant of restricted shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The taxable year to which this election relates is calendar year 20___.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The property is subject to restrictions in that the property is not transferable and is subject to a substantial risk of forfeiture until the taxpayer vests in the property in accordance with the terms of an award agreement between the Company and taxpayer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The fair market value at the time of transfer (determined without regard to any restrictions other than restrictions which by their terms will never lapse) of the property with respect to which this election is being made is $_________ per share; with a cumulative fair market value of $___________.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. The taxpayer did not pay any amount for the property transferred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. A copy of this statement was furnished to the Corporate Secretary or other designated officer of the Company. The taxpayer rendered the services to Rithm Perpetual Life Residential Trust in connection with the transfer of the property with respect to which this election is being made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. This election is made to the same effect, and with the same limitations, for purposes of any applicable state statute corresponding to Section 83(b) of the Internal Revenue Code.

*The undersigned understands that the foregoing election may not be revoked except with the consent of the Commissioner of Internal Revenue.*

Signed:   <br>Date:  

ASSIGNMENT SEPARATE FROM CERTIFICATE

FOR VALUE RECEIVED the undersigned does hereby sell, assign and transfer unto ______________________________________________________________________ (_________________) Class E Common Shares of Rithm Perpetual Life Residential Trust, a Maryland statutory trust, standing in the undersigned's name on the books of said trust herewith and does hereby irrevocably constitute and appoint _____________________________ Attorney to transfer the said shares on the books of said trust with full power of substitution in the premises.

---

| | |
|:---|:---|
| Dated: |  |
| | Signature |
| | Print Name |

---

## Exhibit 10.5

**Exhibit 10.5** 

**EXECUTION VERSION**

FLOW moRtgage loan purchase and sale agreement

between

RITHM LOAN AGGREGATION TRUST

as Seller,

and

RITHM PERPETUAL LIFE RESIDENTIAL TRUST

as Purchaser

Dated as of November 24, 2025

Residential Mortgage Loans

---

| | |
|:---|:---|
| **TABLE OF CONTENTS** | **TABLE OF CONTENTS** |
|  | Page |
| SECTION 1. DEFINITIONS | 1 |
| SECTION 2. PURCHASE AND CONVEYANCE | 7 |
| SECTION 3. MORTGAGE LOAN SCHEDULE | 7 |
| SECTION 4. PURCHASE PRICE | 7 |
| SECTION 5. EXAMINATION OF MORTGAGE FILES | 8 |
| SECTION 6. DELIVERY OF MORTGAGE LOAN DOCUMENTS. | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsection 6.01. Possession of Mortgage Files | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsection 6.02. Books and Records | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsection 6.03. Delivery of Mortgage Loan Documents | 8 |
| SECTION 7. SELLER'S REPRESENTATIONS, WARRANTIES AND COVENANTS; REMEDIES FOR BREACH. | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsection 7.01. Seller's Representations and Warranties Regarding Individual Mortgage Loans | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsection 7.02. Seller's Representations and Covenants | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsection 7.03. Repurchase. | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsection 7.04. Repurchase of Mortgage Loans With Early Payment Default | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsection 7.05. Purchase Price Protection | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsection 7.06. Further Assurances | 11 |
| SECTION 8. CLOSING. | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsection 8.01. Closing Conditions | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsection 8.02. Closing Documents | 12 |
| SECTION 9. COSTS | 12 |
| SECTION 10. SERVICING | 12 |
| SECTION 11. NOTICES | 13 |
| SECTION 12. SEVERABILITY CLAUSE | 13 |
| SECTION 13. NO PARTNERSHIP | 13 |
| SECTION 14. COUNTERPARTS | 13 |
| SECTION 15. GOVERNING LAW; CHOICE OF FORUM; WAIVER OF JURY TRIAL | 13 |
| SECTION 16. INTENTION OF THE PARTIES | 14 |
| SECTION 17. WAIVERS; AMENDMENTS | 14 |
| SECTION 18. EXHIBITS; ETC | 14 |

---

---

| | |
|:---|:---|
| SECTION 19. GENERAL INTERPRETIVE PRINCIPLES | 14.0 |
| SECTION 20. CONFIDENTIALITY; PROTECTION OF CONSUMER INFORMATION. | 14.0 |
| SECTION 21. ENTIRE AGREEMENT | 15.0 |
| SECTION 22. FURTHER AGREEMENTS | 15.0 |
| SECTION 23. SUCCESSORS AND ASSIGNS; SURVIVAL | 15.0 |
| SECTION 24. [RESERVED] | 15.0 |
| SECTION 25. COOPERATION OF THE SELLER WITH A RECONSTITUTION. | 15.0 |
| SECTION 26. ADDITIONAL PURCHASERS. | 15.0 |

---

---

| | |
|:---|:---|
| APPENDICES AND EXHIBITS | APPENDICES AND EXHIBITS |
| APPENDIX A | REPRESENTATIONS AND WARRANTIES REGARDING MORTGAGE LOANS |
| APPENDIX B | FORM OF ACCESSION AGREEMENT |
| APPENDIX C | MORTGAGE LOAN SCHEDULE FIELDS |
| EXHIBIT 1 | FORM OF POWER OF ATTORNEY |

---

FLOW Mortgage Loan Purchase and Sale Agreement

THIS FLOW MORTGAGE LOAN PURCHASE AND SALE AGREEMENT, dated as of November 24, 2025, is hereby executed by and between Rithm Perpetual Life Residential Trust, a Maryland statutory trust, as purchaser (the "<u>Purchaser</u>"), and Rithm Loan Aggregation Trust, a Delaware statutory trust, as seller (the "<u>Seller</u>").

WITNESSETH:

WHEREAS, the Seller intends to sell from time to time to the Purchaser, and the Purchaser intends to purchase from time to time from the Seller, certain residential mortgage loans as described herein; and

WHEREAS, the Mortgage Loans will be sold by the Seller and purchased by the Purchaser individually or as pools or groups of whole loans on the various Closing Dates as provided herein; and

WHEREAS, each of the Mortgage Loans will be secured by a mortgage, deed of trust or other security instrument creating a lien on the related Mortgaged Property; and

WHEREAS, the Purchaser and the Seller wish to prescribe the manner of the purchase, sale, conveyance and control of the Mortgage Loans;

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

Section 1. <u>Definitions</u>. For purposes of this Agreement, the following capitalized terms shall have the respective meanings set forth below.

<u>AAA</u>: The American Arbitration Association.

<u>Additional Draw Amounts</u>: With respect to any Mortgage Loan, the additional principal amount advanced to the related Mortgagor from time to time pursuant to the terms of the related Mortgage Note.

<u>Adjustable Rate Mortgage Loan</u>: A Mortgage Loan purchased pursuant to this Agreement which provides for the adjustment of the Mortgage Interest Rate payable in respect thereto.

<u>Adjustment Date</u>: As to each Adjustable Rate Mortgage Loan, the date on which the Mortgage Interest Rate is adjusted in accordance with the terms of the related Mortgage Note and Mortgage.

<u>Agreement</u>: This Flow Mortgage Loan Purchase and Sale Agreement including all exhibits, schedules, annexes, addenda, appendices, attachments, amendments and supplements hereto.

<u>Anti-Money Laundering Laws</u>: As defined in Subsection 7.02(h).

<u>Applicable Requirements</u>: With respect to the Mortgage Loans, as applicable and as of the time of reference, (a) the terms of the applicable Mortgage, Mortgage Note and any other Mortgage Loan Document; (b) applicable law applicable to the applicable Mortgage, Mortgage Note and any other Mortgage Loan Document; and (c) all contractual obligations relating to the Mortgage Loans including the Underwriting Guidelines and those contractual obligations contained in any applicable Servicing Agreement or in any agreement relating to the Mortgage Loans with any insurer or in the Mortgage File.

<u>Arbitration</u>: Arbitration in accordance with the then governing Commercial Arbitration Rules of the AAA and administered by the AAA, which shall be conducted in New York, New York or other place mutually acceptable to the parties to the arbitration.

<u>Arbitrator</u>: A person who is not affiliated with the Seller or the Purchaser, who is a member of the AAA and who is an attorney with consumer finance experience.

<u>Assignment of Mortgage</u>: An individual assignment of the Mortgage, notice of transfer or equivalent instrument in recordable form, sufficient under the laws of the jurisdiction in which the related Mortgaged Property is located to reflect the sale of the Mortgage to the Purchaser and give record notice of the sale of the Mortgage to the Purchaser.

<u>Business Day</u>: Any day other than (a) a Saturday or a Sunday, or (b) a legal holiday in the State of New York or the State of Minnesota, or (c) a day on which banks in the State of New York or the State of Minnesota are authorized or obligated by law or executive order to be closed.

<u>CFPB</u>: The Consumer Financial Protection Bureau or any successor thereto.

<u>Closing Date</u>: The date or dates, set forth in the related Purchase Advice, on which the Purchaser will purchase and the Seller will sell the Mortgage Loans identified therein and the related Mortgage Loan Packages.

<u>Code</u>: The Internal Revenue Code of 1986, as amended, or any successor statute thereto.

<u>Commission</u>: The U.S. Securities and Exchange Commission.

<u>Condemnation Proceeds</u>: All awards, compensation and settlements in respect of a taking (whether permanent or temporary) of all or part of a Mortgaged Property by exercise of the power of condemnation or the right of eminent domain, to the extent not required to be released to the related Mortgagor in accordance with the terms of the related Mortgage Loan Documents.

<u>Consumer Information</u>: Any personally identifiable information in any form (written, electronic or otherwise) relating to a Mortgagor, including, but not limited to: a Mortgagor's name, address, telephone number, Mortgage Loan number, Mortgage Loan payment history, delinquency status, insurance carrier, tax amount or payment information; the fact that a Mortgagor has a relationship with the Seller or the Originator of the related Mortgage Loan; and any other non-public personally identifiable information that is supplied to the Purchaser by or on behalf of the Seller.

<u>Cut-off Date</u>: As set forth in the related Purchase Advice.

<u>Defective Document</u>: As defined in Subsection 7.03(a).

<u>Delinquent</u>: Any Mortgage Loan with respect to which the Monthly Payment due on a Due Date for such Mortgage Loan is not made by the close of business on the Business Day preceding the next Due Date for such Mortgage Loan.

<u>Due Date</u>: The day of the month on which the Monthly Payment is due on a Mortgage Loan, exclusive of any days of grace as specified in the related Mortgage Note.

<u>EPD Period</u>: As defined in Subsection 7.04.

<u>Executive Order</u>: As defined in Subsection 7.02(h).

<u>Fannie Mae</u>: The entity formally known as the Federal National Mortgage Association (FNMA) or any successor thereto.

<u>Fannie Mae Guides</u>: The Fannie Mae Single Family Selling Guide and the Fannie Mae Single Family Servicing Guide and all amendments or additions thereto in effect on and after the related Closing Date.

<u>Freddie Mac</u>: The entity formally known as the Federal Home Loan Mortgage Corporation (FHLMC) or any successor thereto.

<u>Freddie Mac Guides</u>: The Freddie Mac Single-Family Seller/Servicer Guide and all amendments or additions thereto in effect on and after the related Closing Date.

<u>Full Prepayment</u>: Any payment of the entire principal balance of a Mortgage Loan which is received in advance of its scheduled Due Date and is not accompanied by an amount of interest representing scheduled interest due on any date or dates in any month or months subsequent to the month of prepayment.

<u>Initial Rate Cap</u>: With respect to each Adjustable Rate Mortgage Loan and the initial Adjustment Date therefor, a number of percentage points per annum that is set forth in the related Mortgage Loan Schedule and in the related Mortgage Note, which is the maximum amount by which the Mortgage Interest Rate of such Adjustable Rate Mortgage Loan may increase or decrease from the Mortgage Interest Rate in effect immediately prior to such Adjustment Date.

<u>Insurance Proceeds</u>: With respect to each Mortgage Loan, the proceeds of insurance policies insuring such Mortgage Loan or the related Mortgaged Property.

<u>Lifetime Rate Cap</u>: As to each Adjustable Rate Mortgage Loan, the maximum Mortgage Interest Rate which shall be as permitted in accordance with the provisions of the related Mortgage Note.

<u>Liquidation Proceeds</u>: The proceeds received in connection with the liquidation of a defaulted Mortgage Loan, whether through the sale or assignment of such Mortgage Loan, trustee's sale, foreclosure sale or otherwise, other than amounts received following the acquisition of REO Property, Insurance Proceeds and Condemnation Proceeds.

<u>MERS</u>: Collectively, MERSCORP, Inc. and Mortgage Electronic Registration Systems, Inc., and their respective successors and assigns.

<u>MERS Mortgage Loan</u>: A Mortgage Loan for MERS has been designated as the mortgagee of record for such Mortgage Loan as nominee for the related owner.

<u>MERS System</u>: The system of recording transfers of mortgages electronically maintained by MERS.

<u>Minimum Interest Rate</u>: With respect to each Adjustable Rate Mortgage Loan, a rate that is set forth on the related Mortgage Loan Schedule and in the related Mortgage Note and is the minimum interest rate to which the Mortgage Interest Rate on such Mortgage Loan may be decreased.

<u>Monthly Payment</u>: The scheduled monthly payment on a Mortgage Loan due on any Due Date allocable to principal and/or interest on such Mortgage Loan pursuant to the terms of the related Mortgage Note.

<u>Mortgage</u>: The mortgage, deed of trust or other instrument securing a Mortgage Note which creates a first lien on an unsubordinated estate in fee simple in real property securing the Mortgage Note; except that with respect to real property located in jurisdictions in which the use of leasehold estates for residential properties is a widely-accepted practice, the mortgage, deed of trust or other instrument securing the Mortgage Note may secure and create a first lien upon a leasehold estate of the Mortgagor.

<u>Mortgage File</u>: With respect to each Mortgage Loan, all documents required under Applicable Requirements involved in the underwriting (including documented compensating factors pertaining to exceptions to the Applicable Requirements), origination, and servicing of such Mortgage Loan, including the documents specified in the Underwriting Guidelines, and any additional documents required to be added to the Mortgage File pursuant to this Agreement.

<u>Mortgage Interest Rate</u>: With respect to each Mortgage Loan, the annual rate at which interest accrues on such Mortgage Loan from time to time in accordance with the provisions of the related Mortgage Note, including the limitations on such interest rate imposed by the Initial Rate Cap, the Periodic Rate Cap, the Minimum Interest Rate and the Lifetime Rate Cap, if any.

<u>Mortgage Loan</u>: Each individual mortgage loan that is the subject of this Agreement, each mortgage loan originally sold and subject to this Agreement being identified on the related Mortgage Loan Schedule, which Mortgage Loan includes without limitation the Mortgage File, the Monthly Payments, Principal Prepayments, Liquidation Proceeds, Condemnation Proceeds, Insurance Proceeds, REO Disposition Proceeds, any escrow accounts related to such Mortgage Loan and all other rights, benefits, proceeds and obligations arising from or in connection with such Mortgage Loan, provided that the term "Mortgage Loan" shall not include any mortgage loan that has been repurchased by the Seller pursuant to this Agreement after giving effect to such repurchase.

<u>Mortgage Loan Documents</u>: With respect to any Mortgage Loan, the documents specified in the Underwriting Guidelines, as may be amended from time to time by the Purchaser and provided by (or on behalf of) the Purchaser to the Seller.

<u>Mortgage Loan Package</u>: The individual, pool, or group of whole Mortgage Loans purchased on a Closing Date, as described in the Mortgage Loan Schedule annexed to the related Purchase Advice.

<u>Mortgage Loan Schedule</u>: The schedule of Mortgage Loans for an applicable Purchase Advice prepared for each Closing Date setting forth the information with respect to each Mortgage Loan in the format required by the Purchaser, and delivered by (or on behalf of) the Purchaser to the Seller, which schedule shall be annexed to such Purchase Advice or, if acceptable to the Purchaser in its sole discretion, otherwise associated with such Purchase Advice in a manner specified by the Purchaser in writing. The Mortgage Loan Schedule will include, among other information fields, the information fields set forth on <u>Appendix C</u> hereto.

<u>Mortgage Note</u>: The original executed note or other evidence of the indebtedness of a Mortgagor secured by a Mortgage.

<u>Mortgaged Property</u>: The Mortgagor's real property securing repayment of a related Mortgage Note, consisting of a fee simple or leasehold interest in a single parcel of real property improved by one of the following: (a) a detached one-family dwelling, (b) a detached two- to four-family dwelling, (c) a one-family dwelling unit in a condominium project, (d) a one-family dwelling in a planned unit development, (e) mixed use properties provided that at least 75% of such property by square foot and by value is used for residential units, (f) a manufactured home or (g) shares in a co-operative.

<u>Mortgagee</u>: The mortgagee or beneficiary named in the Mortgage and the successors and assigns of such mortgagee or beneficiary.

<u>Mortgagor</u>: The obligor on a Mortgage Note.

<u>Officer's Certificate</u>: A certificate signed by the Seller's Chairman of the Board, the Vice Chairman of the Board, a President, a Vice President or other Person acceptable to the Purchaser.

<u>Originator</u>: With respect to any Mortgage Loan, each Person or Persons, which may include the Seller, that (a) took the Mortgagor's loan application, (b) processed the Mortgagor's loan application or (c) closed and/or funded such Mortgage Loan.

<u>Partial Prepayment</u>: Any payment of principal on a Mortgage Loan, other than a Full Prepayment, which is received in advance of its scheduled Due Date and is not accompanied by an amount of interest representing scheduled interest due on any date or dates in any month or months subsequent to the month of prepayment.

<u>Periodic Rate Cap</u>: As to each Adjustable Rate Mortgage Loan, the maximum increase or decrease in the Mortgage Interest Rate, on any Adjustment Date after the initial Adjustment Date as provided in the related Mortgage Note, if applicable.

<u>Person</u>: An individual, corporation, partnership, joint venture, association, joint-stock company, limited liability company, trust, unincorporated organization or government or any agency or political subdivision thereof.

<u>Prepayment Charge</u>: With respect to each Mortgage Loan, the fee payable by the Mortgagor if the Mortgagor prepays such Mortgage Loan as provided in the related Mortgage Note, Mortgage or other Mortgage Loan Document.

<u>Primary Mortgage Insurance Policy</u>: A policy of primary mortgage guaranty insurance.

<u>Principal Prepayment</u>: Any Full Prepayment or Partial Prepayment or other recovery of principal on a Mortgage Loan (including any Prepayment Charge) which is received in advance of its scheduled Due Date, and which is not accompanied by an amount of interest representing scheduled interest due on any date or dates in any month or months subsequent to the month of prepayment.

<u>Purchase Advice</u>: With respect to each Mortgage Loan Package, the Purchase Advice, substantially in the form attached hereto as Exhibit 2, providing for the sale by the Seller and the purchase by the Purchaser of such Mortgage Loan Package on the related Closing Date.

<u>Purchase Price</u>: The price paid on the related Closing Date by (or on behalf of) the Purchaser to the Seller pursuant to this Agreement in exchange for the Mortgage Loans included in the related Mortgage Loan Package, as calculated pursuant to <u>Section 4</u> and the related Purchase Advice.

<u>Purchase Price Percentage</u>: For each Mortgage Loan included in a Mortgage Loan Package, the percentage of par set forth in the related Purchase Advice that is used to calculate the Purchase Price of each such Mortgage Loan included in such Mortgage Loan Package.

<u>Purchaser</u>: The Person listed as such in the initial paragraph of this Agreement, together with its successors and assigns as permitted under the terms of this Agreement and each additional Purchaser joined to this agreement pursuant to Section 26.

<u>Qualified Insurer</u>: An insurance company duly qualified as such under the laws of the state in which the Mortgaged Property is located, duly authorized and licensed in such state to transact the applicable insurance business and to write the insurance provided by the insurance policy issued by it, and approved as an insurer by Fannie Mae or Freddie Mac or the Purchaser.

<u>Reconstitution</u>: As defined in Section 25(a).

<u>Reconstitution Agreement</u>: The agreement or agreements provided by (or on behalf of) the Purchaser and entered into by the Seller and the Purchaser and certain third parties on the Reconstitution Date or Reconstitution Dates with respect to any or all of the Mortgage Loans conveyed hereunder, in connection with a Whole Loan Transfer or a Securitization Transaction, as provided in <u>Section 25</u>.

<u>Reconstitution Date</u>: As defined in Section 25(a).

<u>REO Disposition</u>: The final sale by the Purchaser of an REO Property.

<u>REO Disposition Proceeds</u>: All amounts received with respect to an REO Disposition.

<u>REO Property</u>: A Mortgaged Property acquired by or on behalf of the Purchaser through foreclosure or deed in lieu of foreclosure.

<u>Repurchase Price</u>: With respect to any Mortgage Loan, a price equal to the sum of (a) the product of (i) the unpaid principal balance of such Mortgage Loan as of the related date of repurchase, and (ii) the related Purchase Price Percentage applicable to such Mortgage Loan, <u>plus</u> (b) interest on such unpaid principal balance at the related Mortgage Interest Rate from the last date through which interest was last paid and distributed to the Purchaser to the last day of the month in which such repurchase occurs, <u>plus</u> (c) reasonable and customary third party expenses incurred in connection with the transfer of the Mortgage Loan being repurchased, <u>plus</u> (d) any costs and expenses incurred by the Purchaser in enforcing the related repurchase obligation, including without limitation reasonable attorney's fees, <u>plus</u> (e) the amount of any related unreimbursed advances made by the Purchaser or its servicer, <u>minus</u> (f) any amounts received in respect of such repurchased Mortgage Loan and being held in the custodial account for future distribution in connection with such Mortgage Loan, <u>plus</u> (g) any other amounts relating to liabilities, penalties or expenses set forth in <u>Subsection 7.03(a)</u>.

<u>Securities Act</u>: The Securities Act of 1933, as amended.

<u>Securitization Transaction</u>: Any transaction involving either (a) a sale or other transfer of some or all of the Mortgage Loans directly or indirectly by the Purchaser to an issuing entity in connection with an issuance of publicly offered or privately placed, rated or unrated mortgage-backed securities or (b) an issuance of publicly offered or privately placed, rated or unrated securities, the payments on which are determined primarily by reference to one or more portfolios of residential mortgage loans consisting, in whole or in part, of some or all of the Mortgage Loans.

<u>Seller</u>: Rithm Loan Aggregation Trust, a Delaware statutory trust, or its successor in interest or any successor to the Seller under this Agreement appointed as herein provided.

<u>Servicer</u>: NewRez LLC (the "Servicer") or any successor.

<u>Servicing Agreement</u>: The servicing agreement between Rithm Perpetual Life Residential Trust and the Servicer, dated as of November 24, 2025, under which the Servicer services the Mortgage Loans or otherwise performs services with respect to the Mortgage Loans.

<u>Servicing File</u>: With respect to each Mortgage Loan, the documents pertaining thereto, including the related Mortgage Loan Documents and the documents included in the Mortgage File.

<u>Stated Principal Balance</u>: As to each Mortgage Loan as to any date of determination, (a) the principal balance of such Mortgage Loan as of the first day of the month for which such calculation is being made after giving effect to the principal portion of any Monthly Payments due on or before such date, whether or not received, as well as any Principal Prepayments received before such date, minus, without duplication, (b) all amounts received after the related Closing Date and distributed prior to the date of such determination to the Purchaser with respect to such Mortgage Loan representing payments or recoveries of principal, or advances in lieu thereof.

<u>Underwriting Guidelines</u>: With respect to any Mortgage Loan, the Purchaser's written underwriting and sales guidelines in effect as of the origination date of such Mortgage Loan, and delivered by (or on behalf of) the Purchaser to the Seller, as may be revised and modified, from time to time by the Purchaser.

<u>Whole Loan Transfer</u>: Any sale or transfer by the Purchaser of some or all of the Mortgage Loans, other than a Securitization Transaction.

Section 2. <u>Purchase and Conveyance</u>. The Seller, in exchange for the payment of the applicable Purchase Price by the Purchaser on the related Closing Date, receipt of which is hereby acknowledged, hereby sells, transfers, assigns, sets over and conveys to the Purchaser, without recourse, but subject to the terms of this Agreement, all of its right, title and interest in and to the Mortgage Loans, including the related Mortgage Note and Mortgages, in a Mortgage Loan Package having a Stated Principal Balance in an amount as set forth in the related Purchase Advice, or in such other amount as agreed by the Purchaser and the Seller, together with the related Mortgage Files and all rights and obligations arising under the documents contained therein.

With respect to each Mortgage Loan, the Purchaser shall own and be entitled to (a) all Monthly Payments due after the related Cut-off Date, (b) all other recoveries of principal collected after the related Cut-off Date (provided, however, that the principal portion of all Monthly Payments due on or before the related Cut-off Date and collected by the Seller (individually and as interim servicer) after the related Cut-off Date shall belong to the Seller), and (c) all payments of interest on such Mortgage Loan. The Stated Principal Balance of each Mortgage Loan as of the related Cut-off Date is determined after application of payments of principal due on or before the related Cut-off Date whether or not collected, together with any unscheduled Full Prepayments and Partial Prepayments collected prior to the related Cut-off Date; provided, however, that Monthly Payments for a Due Date beyond the Cut-off Date shall not be applied to reduce the principal balance. Such Monthly Payments shall be the property of the Purchaser.

Section 3. <u>Mortgage Loan Schedule</u>. The Seller shall deliver, or cause to be delivered, the Mortgage Loan Schedule to the Purchaser at least two (2) Business Days prior to the related Closing Date (or such shorter period acceptable to the Purchaser).

Section 4. <u>Purchase Price; Funding of Draws</u>.

Subsection 4.01. <u>Purchase Price</u>. The Purchase Price for the Mortgage Loans being acquired on a Closing Date shall be equal to the sum of (a) the product of (i) the Purchase Price Percentage stated in the related Purchase Advice (subject to adjustment as provided therein) and (ii) the Stated Principal Balance of the Mortgage Loans listed on the related Mortgage Loan Schedule, plus (b) an amount equal to the aggregate of the accrued interest on the Stated Principal Balance of each of the related Mortgage Loans from the related Cut-off Date through the day immediately prior to the related Closing Date. If so provided in the related Purchase Advice, portions of the Mortgage Loans shall be priced separately. The Purchase Price shall be paid on the related Closing Date by wire transfer of immediately available funds to the account designated by the Seller in the related Purchase Advice or such other writing from the Seller as may be agreed to by the Seller and the Purchaser.

Subsection 4.02. <u>Funding of Draws</u>. On and after the related Closing Date, the Purchaser shall assume all obligations in respect of Additional Draw Amounts.

Section 5. <u>Examination of Mortgage Files</u>. If requested by the Purchaser, the Seller shall, at the written direction of the Purchaser or its designee, deliver, or cause to be delivered, to the Purchaser (or its designee in escrow or under a bailee letter), for examination and retention, with respect to each Mortgage Loan to be purchased on the related Closing Date, the related Mortgage File in a format as agreed to by the Purchaser and the Seller. Such examination may be made by the Purchaser or its designee at any reasonable time before or after the related Closing Date. The Purchaser may, at its option and without notice to the Seller, purchase all or part of the Mortgage Loan Package without conducting any partial or complete examination. The fact that the Purchaser has conducted or has determined not to conduct any partial or complete examination of the Mortgage Files shall not affect the Purchaser's (or any of its successors' and assigns') right to demand repurchase or other relief or remedy provided for in this Agreement.

Section 6. <u>Delivery of Mortgage Loan Documents</u>.

Subsection 6.01. <u>Possession of Mortgage Files</u>. Originals or copies of all documents, including the documents included in the Mortgage File and comprising the Mortgage File, other than the Mortgage Loan Documents, shall be delivered to the Purchaser or its designee on or prior to the related Closing Date. Originals of the contents of each Mortgage File not delivered to the Purchaser or the custodian appointed by the Purchaser are and shall be held in trust by the Seller for the benefit of the Purchaser as the owner thereof and shall be available for review by the Purchaser upon request.

The Seller's possession of any portion of each such Mortgage File is at the will of the Purchaser for the sole purpose of facilitating the servicing of the Mortgage Loans pursuant to this Agreement, and such retention and possession by the Seller shall be in a custodial capacity only. The ownership of the Mortgage Notes, Mortgages, the other Mortgage Loan Documents and the contents of the related Mortgage Files is vested in the Purchaser and the ownership of all records and documents with respect to the related Mortgage Loans prepared by or which come into the possession of the Seller shall immediately vest in the Purchaser and shall be retained and maintained by the Seller or the Servicer, as applicable, at the will of the Purchaser in such custodial capacity only. The copies of the Mortgage File retained by the Seller with respect to each Mortgage Loan pursuant to this Agreement shall be appropriately identified in the Seller's computer system to reflect clearly the ownership of such Mortgage Loan by the Purchaser. The Seller shall release from its custody the contents of any Mortgage File retained by it only in accordance with this Agreement, except when such release is required in connection with a repurchase of the related Mortgage Loan pursuant to <u>Subsection 7.03</u> or if required under applicable law or court order.

Subsection 6.02. <u>Books and Records</u>. The sale of each Mortgage Loan will be reflected on the Seller's balance sheet and other financial statements as a sale of assets by the Seller. The Seller shall maintain a complete set of books and records for the Mortgage Loans sold by it which shall be appropriately identified in the Seller's computer system to clearly reflect the ownership of the Mortgage Loans by the Purchaser.

Subsection 6.03. <u>Delivery of Mortgage Loan Documents</u>. If requested by the Purchaser, the Seller shall deliver and release, or cause to be delivered and released, to the Purchaser or the custodian appointed by the Purchaser the Mortgage Loan Documents for mortgage loans that may be purchased hereunder no later than three (3) Business Days prior to the related Closing Date or, upon the request of the Purchaser, earlier, if necessary or desirable to facilitate a review. If delivery of all Mortgage Loan Documents, including the Mortgage Loan Documents that require recordation or certified proof of recordation, with respect to any Mortgage Loan is not completed within two hundred seventy (270) days after the related Closing Date, then, at the Purchaser's option, the Seller shall repurchase such Mortgage Loan in accordance with the procedures set forth in Subsection 7.03.

If the Purchaser, the Seller or one of their respective designees discovers any defect with respect to any document constituting part of a Mortgage File, then (a) the discovering party shall, or shall cause its designee to, give written specification of such defect to the other party and (b) the Seller shall cure or repurchase the related Mortgage Loan in accordance with the procedures set forth in <u>Subsection 7.03</u>. Any review by the Purchaser or its designee of the Mortgage Files shall in no way alter or reduce the Seller's obligations hereunder.

To the extent that any such Mortgage Loan Documents have been delivered for recording and have not yet been returned to the Seller by the applicable recording office, the Seller shall, promptly following receipt by it of such Mortgage Loan Documents from the applicable recording office, deliver such documents to the Purchaser or its designee; provided, however, that the original recorded document or a clerk-certified copy thereof shall be delivered to the Purchaser no later than ninety (90) days following the related Closing Date, subject to the following paragraph.

In the event that such original or copy of any document submitted for recordation to the appropriate public recording office is not so delivered to the Purchaser or its designee within ninety (90) days following the related Closing Date, and in the event that the Seller does not cure such failure within sixty (60) days after receipt of written notification of such failure from the Purchaser, the related Mortgage Loan shall, upon the request of the Purchaser, be repurchased by the Seller at the Repurchase Price. The foregoing repurchase obligation shall not apply in the event the Seller cannot deliver such original or clerk-certified copy of any document submitted for recordation to the appropriate public recording office within the specified period due to a delay caused by the recording office in the applicable jurisdiction; provided that the Seller shall instead deliver a recording receipt of such recording office or, if such recording receipt is not available, an officer's certificate of a servicing officer of the Seller, confirming that such document has been accepted for recording and that the Seller shall immediately deliver such document upon receipt; and, provided further, that if the Seller cannot deliver such original or clerk-certified copy of any document submitted for recordation to the appropriate public recording office within the specified time for any reason within twelve (12) months after receipt of written notification of such failure from the Purchaser, the Seller shall immediately repurchase the related Mortgage Loan at the Repurchase Price.

To the extent received by it, the Seller shall promptly forward to the Purchaser, or its designee, original documents evidencing an assumption, modification, consolidation or extension of any Mortgage Loan entered into in accordance with this Agreement.

Section 7.<u>Seller's Representations, Warranties and Covenants; Remedies for Breach</u>.

Subsection 7.01. <u>Seller's Representations and Warranties Regarding Individual Mortgage Loans</u>. The Seller hereby represents and warrants to the Purchaser that, as to each Mortgage Loan, as of the related Closing Date or such other date specified herein, the representations and warranties specified in Appendix A are true and correct. The Purchaser acknowledges and agrees that, except as expressly provided in Appendix A, the Seller has not and does not additionally represent, warrant or covenant the nature, accuracy, completeness, enforceability or validity of any of loan documents, Mortgage Files, or any information or documents made available to the Purchaser or its counsel, accountants or advisors in connection with the Mortgage Loans and, all documentation, information, analysis and/or correspondence, if any, which is or may be sold, transferred, assigned and conveyed to the Purchaser with respect to any and all Mortgage Loans is sold, transferred, assigned and conveyed to the Purchaser on an "AS IS, WHERE IS" basis, WITH ALL FAULTS.

Subsection 7.02. <u>Seller's Representations and Covenants</u>. The Seller hereby represents, warrants and covenants to the Purchaser that, as of the related Closing Date (or such other date as is specified below):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Seller is a statutory trust under the laws of the State of Delaware. The Seller has the power and authority to execute and deliver this Agreement and the Seller has the power to perform in accordance herewith; the execution, delivery and performance of this Agreement (including all instruments of transfer to be delivered pursuant to this Agreement) by it and the consummation of the transactions contemplated hereby have been duly and validly authorized.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Agreement, assuming due authorization, execution and delivery by the Purchaser, evidences the legal, valid, binding and enforceable obligation of it, subject to applicable law except as enforceability may be limited by (i) bankruptcy, insolvency, liquidation, receivership, moratorium, reorganization or other similar laws affecting the enforcement of the rights of creditors or (ii) general principles of equity, whether enforcement is sought in a proceeding in equity or at law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No consent, approval, authorization or order is required for the transactions contemplated by this Agreement from any court, governmental agency or body, or federal or state regulatory authority having jurisdiction over it or, if required, such consent, approval, authorization or order has been or will, prior to the related Closing Date, be obtained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The consummation of the transactions contemplated by this Agreement will not result in the breach of any term or provision of its organizational documents or result in the breach of any term or provision of; or conflict with or constitute a default under or result in the acceleration of any obligation under, any material agreement, indenture or loan or credit agreement or other instrument to which it or its property is subject, or result in the violation of any law, rule, regulation, order, judgment or decree to which it or its property is subject.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) It is solvent and the sale of the Mortgage Loans will not cause it to become insolvent. The sale of the Mortgage Loans is not undertaken with the intent to hinder, delay or defraud any of its creditors.

Subsection 7.03. <u>Repurchase</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) It is understood and agreed that the representations and warranties set forth in <u>Appendix A</u> and <u>Subsection 7.02</u> shall survive the sale of the Mortgage Loans and delivery of the Mortgage File to the Purchaser, or its designee, and shall inure to the benefit of the Purchaser, notwithstanding any restrictive or qualified endorsement on any Mortgage Note or Assignment of Mortgage or the examination or review, or lack of examination or review, of any Mortgage Loan Document. Upon discovery by the Seller or the Purchaser of (i) a breach of any of the representations and warranties set forth in <u>Appendix A</u> with respect to any Mortgage Loan which breach materially and adversely affects the value of such Mortgage Loan or the interest of the Purchaser in such Mortgage Loan or (ii) any defective or missing document required to be included in a Mortgage File ("<u>Defective Document</u>") as described in <u>Subsection 6.03</u>, the party discovering such breach or Defective Document shall give prompt written notice to the other. With respect to the representations and warranties contained in <u>Appendix A</u> that are made to the Seller's knowledge or to the best of Seller's knowledge, if it is discovered by either the Seller or the Purchaser that the substance of such representation and warranty is inaccurate and such inaccuracy materially and adversely affects the value of the related Mortgage Loan or the interest of the Purchaser in the related Mortgage Loan, the Purchaser shall be entitled to all the remedies to which it would be entitled for a breach of representation or warranty, including the repurchase requirements contained herein, notwithstanding Seller's lack of knowledge with respect to the inaccuracy at the time the representation or warranty was made. The Seller hereby covenants and agrees that if any such Defective Document or breach is not corrected or cured within such sixty (60) day period, or if the Seller is required to repurchase any Mortgage Loan pursuant to any other provision herein, the Seller shall repurchase such Mortgage Loan at the Repurchase Price. Any repurchase pursuant to this <u>Subsection 7.03(a)</u> shall be accomplished by wire transfer of immediately available funds of the amount of the Repurchase Price to an account designated by the Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any claim or cause of action against the Seller relating to or arising out of the breach of any of the representations and warranties made in <u>Appendix A</u> or <u>Subsection 7.02</u> shall accrue as to any Mortgage Loan upon (i) notice thereof by the Purchaser to the Seller, (ii) failure by the Seller to cure such breach or repurchase such Mortgage Loan as specified above, and (iii) demand upon the Seller by the Purchaser for compliance with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The parties agree that the resolution of any controversy or claim arising out of or relating to an obligation or alleged obligation of the Seller to repurchase a Mortgage Loan or make any other payment required under this <u>Subsection 7.03</u> due to a breach of a representation or warranty set forth in <u>Appendix A</u> or <u>Subsection 7.02</u> shall be by Arbitration. The parties shall comply with the Arbitration procedures provided in writing by the Purchaser. The finding of the Arbitrator shall be final and binding upon the parties. Judgment upon any arbitration award rendered may be entered and enforced in any court of competent jurisdiction. The costs of the Arbitrator shall be shared equally between both parties. Each party, however, shall bear their own attorney's fees, costs and expenses in connection with the Arbitration.

Subsection 7.04. <u>Repurchase of Mortgage Loans With Early Payment Default</u>. If any of the first three (3) Monthly Payments due after the related Closing Date (the "EPD Period") for a Mortgage Loan becomes Delinquent (or is delinquent pursuant to the related Purchase Advice), then the Seller, at the Purchaser's option, shall promptly repurchase the related Mortgage Loan from the Purchaser in accordance with the procedures set forth in Subsection 7.03 hereof except that there will be no cure period or opportunity to cure.

Subsection 7.05. <u>Purchase Price Protection</u>. With respect to any Mortgage Loan that is paid in full on or prior to the last day of the third (3rd) full month following the related Closing Date (or such other date set forth in the related Purchase Advice), the Seller shall, promptly upon demand therefor by Purchaser, reimburse the Purchaser the full amount of the premium paid by the Purchaser above par on the Mortgage Loan. Notwithstanding anything to the contrary set forth in this Agreement, any amounts payable pursuant to this Subsection 7.05 with respect to a Mortgage Loan shall be offset by any Prepayment Charges collected with respect to such Mortgage Loan during the three (3) month period.

Subsection 7.06. <u>Further Assurances</u>. Seller shall, upon request of Purchaser, promptly execute and deliver to Purchaser all such other and further documents and instruments of transfer, conveyance and assignment, and shall take such other action Purchaser may require to more effectively transfer, convey, assign to and vest in Purchaser and to put Purchaser in possession of the property to be transferred, conveyed, assigned and delivered hereunder and otherwise to carry out more effectively the intent of the provisions under this Agreement.

Section 8. <u>Closing</u>.

Subsection 8.01. <u>Closing Conditions</u>. The closing for the purchase and sale of each Mortgage Loan Package shall take place on the respective Closing Date. The closing shall be either by telephone, confirmed by letter or wire as the parties hereto shall agree, or conducted in person, at such place as the parties hereto shall agree. The closing for each Mortgage Loan Package shall be subject to the satisfaction of each of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Seller shall have delivered to the Purchaser the related Mortgage Loan Schedule and an electronic data file containing information on a loan-level basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) unless otherwise agreed by the Purchaser, the Purchaser shall have received from the custodian an initial certification or trust receipt, as applicable, with respect to its receipt of the Mortgage Loan Documents for the related Mortgage Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Purchaser shall have received fully executed copies of the related Purchase Advice and, if applicable, a funding memorandum setting forth the Purchase Price(s) for the Mortgage Loan Package, in each case duly executed on behalf of the Seller;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) to the extent requested by the Purchaser, the Purchaser shall have received such number of executed powers of attorney as requested by the Purchaser, in the form provided by the Purchaser to the Seller; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all other terms and conditions of this Agreement and the related Purchase Advice to be satisfied by the Seller shall have been performed.

Upon satisfaction of the foregoing conditions, the Purchaser shall pay to the Seller on such Closing Date the Purchase Price for the related Mortgage Loan Package pursuant to <u>Section 4</u>.

Subsection 8.02. <u>Closing Documents</u>. Prior to the initial Closing Date, the Seller shall submit to the Purchaser one fully executed original of the following documents:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Purchaser shall have received ten (10) executed powers of attorney in substantially in the form of <u>Exhibit 1</u> attached hereto (or such other form that is acceptable to the Purchaser).

Section 9. <u>Costs</u>. The Seller shall pay any commissions due to its salespeople and each party shall pay their own attorney's fees, costs and expenses. The Purchaser shall pay the actual, out-of-pocket cost of recording the Assignments of Mortgage. The Seller shall pay the cost of the transfers of any Mortgage Loans on MERS, with respect to non-MERS Mortgage Loans, the cost for the preparation of the Assignments of Mortgages and allonges, and the cost of delivering the Mortgage Loan Documents to the Purchaser or its designee for each related Closing Date.

Section 10. <u>Servicing</u>. As of the related Closing Date, the Mortgage Loans will be serviced by the Servicer pursuant to the Servicing Agreement.

Section 11. <u>Notices</u>. All demands, notices and communications hereunder shall be in writing and shall be deemed to have been duly given if personally delivered, sent via electronic transmission (without a notice of transmission failure), transmitted by a recognized private courier service or mailed by registered mail, postage prepaid, addressed as follows, unless such address is changed by written notice hereunder:

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| | | |
|:---|:---|:---|
| (a) | if to the Purchaser: | Rithm Perpetual Life Residential Trust |
|  |  | c/o RCM GA Manager LLC |
|  |  | 799 Broadway, 8th Floor |
|  |  | New York, New York 10003 |
|  |  | Email: Group_RithmLegal@rithmcap.com] |
| (b) | if to the Seller: | Rithm Loan Aggregation Trust |
|  |  | c/o NRZ MBN Issuer Holdings LLC |
|  |  | 799 Broadway, 8th Floor |
|  |  | New York, New York 10003 |
|  |  | Email: Group_RithmLegal@rithmcap.com] |

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Section 12. <u>Severability Clause</u>. Any provision in this Agreement that is held to be void, inoperative, unenforceable or invalid as to any party or in any jurisdiction shall, as to that party or jurisdiction, be void, inoperative, unenforceable or invalid without affecting the remaining provisions or the operation, enforceability or validity of that provision as to any other party or in any other jurisdiction, and to this end the provisions of this Agreement are declared to be severable. If as a result of any provision being held to be void, inoperative, unenforceable or invalid any party is deprived any party of the economic benefit intended to be conferred by this Agreement, the parties shall negotiate, in good-faith, to develop a structure the economic effect of which is nearly as possible the same as the economic effect of this Agreement without regard to such provision being held to be void, inoperative, unenforceable or invalid.

Section 13. <u>No Partnership</u>. Nothing herein contained shall be deemed or construed to create a co-partnership or joint venture between the parties hereto and the services of the Seller hereunder shall be rendered as an independent contractor and not as agent for the Purchaser.

Section 14. <u>Counterparts</u>. This Agreement may be executed simultaneously in any number of counterparts. Each counterpart shall be deemed to be an original, and all such counterparts shall constitute one and the same instrument. The parties intend that faxed signatures and electronically imaged signatures such as .pdf files shall constitute original signatures for the purposes of validity, enforceability and admissibility, and are binding on all parties. Any document accepted, executed or agreed to in conformity with such eCommerce Laws, by one or more parties, will be binding on all parties the same as if it were physically executed.

Section 15. <u>Governing Law; Choice of Forum; Waiver of Jury Trial</u>. EXCEPT TO THE EXTENT PREEMPTED BY FEDERAL LAW, THE AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE CONFLICTS OF LAWS PROVISIONS OF NEW YORK (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW) OR ANY OTHER JURISDICTION. EACH PARTY HERETO KNOWINGLY, INTENTIONALLY AND IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR IN ANY WAY RELATED TO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY. Except as to those matters which this Agreement provides shall be submitted to Arbitration, with respect to any claim or action arising hereunder, the parties (a) irrevocably submit to the nonexclusive jurisdiction of the courts of the State of New York and the United States District Court located in the Borough of Manhattan in the City of New York, New York and (b) irrevocably waive any objection which such party may have at any time to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement brought in any such court, and irrevocably waive any claim that any such suit action or proceeding brought in any such court has been brought in an inconvenient forum.

Section 16. <u>Intention of the Parties</u>. It is the intention of the parties that the Purchaser is purchasing, and the Seller is selling, the Mortgage Loans and not a debt instrument of the Seller or another security. Accordingly, the parties hereto each intend to treat, and will treat unless otherwise required by law, the transaction for federal (and applicable state and local) income tax purposes as a sale by the Seller, and a purchase by the Purchaser, of the Mortgage Loans. The Purchaser shall have the right to review the Mortgage Loans and the related Mortgage Files to determine the characteristics of the Mortgage Loans which shall affect the federal (and any applicable state and local) income tax consequences of owning the Mortgage Loans and the Seller shall cooperate with all reasonable requests made by the Purchaser in the course of such review.

It is not the intention of the parties that such conveyances be deemed a grant of a security interest in the Mortgage Loans transferred hereunder. However, in the event that, notwithstanding the intent of the parties, such assets are held to be the property of the Seller or if for any other reason this Agreement is held or deemed to create a security interest in either such assets, then (a) this Agreement shall be a security agreement within the meaning of the Uniform Commercial Code of the State of New York and (b) the conveyances provided for in this Agreement shall be deemed to be a grant by the Seller to the Purchaser of, and the Seller hereby grants to the Purchaser a security interest in all of the assets transferred hereunder, whether now owned or hereafter acquired.

Section 17. <u>Waivers; Amendments</u>. No term or provision of this Agreement may be waived or modified unless such waiver or modification is in writing and signed by the party against whom such waiver or modification is sought to be enforced. This Agreement may be amended from time to time by written agreement executed and delivered by the Seller and the Purchaser.

Section 18. <u>Exhibits; Etc</u>. The exhibits, schedules, annexes, addenda, appendices and attachments to this Agreement are hereby incorporated and made a part hereof and are an integral part of this Agreement.

Section 19. <u>General Interpretive Principles</u>. For purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires: (a) the terms defined in this Agreement have the meanings assigned to them in this Agreement and include the plural as well as the singular, and the use of any gender herein shall be deemed to include the other gender; (b) accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting principles; (c) references herein to "Articles," "Sections," "Subsections," "Paragraphs" and other subdivisions without reference to a document are to designated Articles, Sections, Subsections, Paragraphs and other subdivisions of this Agreement; (d) the headings of the various articles, sections, subsections and paragraphs of this Agreement and the table of contents are for convenience of reference only and shall not modify, define, expand or limit any of the terms or provisions hereof; (e) reference to a Subsection without further reference to a Section is a reference to such Subsection as contained in the same Section in which the reference appears, and this rule shall also apply to Paragraphs and other subdivisions; (f) the words "herein," "hereof," "hereunder," and other words of similar import refer to this Agreement as a whole and not to any particular provision; and (g) the term "include" or "including" shall mean without limitation by reason of enumeration.

Section 20. <u>Confidentiality; Protection of Consumer Information</u>. The Purchaser and the Seller shall employ proper procedures and standards designed to maintain the confidential nature of the terms of this Agreement, each Purchase Advice and the Purchase Price paid by the Purchaser except to the extent (a) the disclosure of which is reasonably believed by such party to be required in connection with regulatory requirements or other legal requirements relating to its affairs; (b) disclosed to any one or more of such party's employees, officers, directors, agents, attorneys or accountants who would have access to the contents of this Agreement or any Purchase Advice and such data and information in the normal course of the performance of such person's duties for such party, to the extent such party has procedures in effect to inform such person of the confidential nature thereof; (c) that is disclosed in a prospectus, prospectus supplement or private placement memorandum relating to a Securitization Transaction of the Mortgage Loans by the Purchaser (or an affiliate assignee thereof) or to any person in connection with the resale or proposed resale of all or a portion of the Mortgage Loans by such party in accordance with the terms of this Agreement; and (d) that is reasonably believed by such party to be necessary for the enforcement of such party's rights under this Agreement or any Purchase Advice. Each party agrees that it (a) shall comply with any applicable laws regarding the privacy and security of Consumer Information, including the Gramm-Leach-Bliley Act, Title V, Subtitle A, 15 U.S.C. § 6801 et seq., and (b) shall, to the extent not prohibited by applicable law, rule, policy or court order, promptly notify the other party upon actual knowledge of any actual or suspected breach of the confidentiality of Consumer Information.

Section 21. <u>Entire Agreement</u>. This Agreement constitutes the entire agreement and understanding relating to the subject matter hereof between the parties hereto and any prior oral or written agreements between them shall be deemed to have merged herewith.

Section 22. <u>Further Agreements</u>. The Seller shall, upon request of the Purchaser, promptly execute and deliver to the Purchaser all other and further documents and instruments of transfer, conveyance and assignment, and shall take such other action the Purchaser may require to more effectively transfer, convey, assign to and vest in the Purchaser and to put the Purchaser in possession of the property to be transferred, conveyed, assigned and delivered hereunder and otherwise to carry out more effectively the intent of the provisions under this Agreement. The Seller shall, upon request of the Purchaser, promptly deliver to the Purchaser a copy of such records or information requested by the Purchaser.

Section 23. <u>Successors and Assigns; Survival</u>. This Agreement shall bind and inure to the benefit of and be enforceable by the initial Purchaser and the Seller, and the respective successors and assigns of the Purchaser and the Seller. The initial Purchaser and any subsequent purchasers may assign this Agreement to any Person to whom any Mortgage Loan is transferred pursuant to a sale or financing without the consent of the Seller, subject to successful completion of any applicable know-your-customer procedures. Upon any such assignment, the Person to whom such assignment is made shall succeed to all rights and obligations of the Purchaser under this Agreement to the extent of the related Mortgage Loan or Mortgage Loans and this Agreement, to the extent of the related Mortgage Loan or Mortgage Loans, shall be deemed to be a separate and distinct agreement between the Seller and such purchaser, and a separate and distinct agreement between the Seller and each other purchaser to the extent of the other related Mortgage Loan or Mortgage Loans. The Seller shall not assign, delegate or otherwise transfer this Agreement or its rights or obligations hereunder without the prior written consent of the Purchaser. Any purported assignment, delegation or other transfer by the Seller in violation of the foregoing shall be null and void.

The obligations of the Seller under <u>Subsections 7.03, 7.04</u> and <u>7.05</u> shall survive the expiration or termination of this Agreement as well as any resignation by the Seller or termination of the Seller as interim servicer pursuant to the terms of this Agreement.

Section 24. <u>[Reserved]</u>.

Section 25. Cooperation of the Seller with a Reconstitution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Seller and the Purchaser agree that with respect to some or all of the Mortgage Loans, after the related Closing Date, on one or more dates (each a "Reconstitution Date") at the Purchaser's sole option, the Purchaser may effect a sale (each, a "Reconstitution") of some or all of the Mortgage Loans then subject to this Agreement, without recourse, to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) one or more Whole Loan Transfers; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) one or more Securitization Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event the Purchaser desires to pursue a Reconstitution, (x) the Seller shall cooperate with the Purchaser in providing such information and documents for review and analysis by the Purchaser and other necessary Persons, as the Purchaser may reasonably request to effectuate such Reconstitution, provided, however, the reasonable out-of-pocket costs of producing any extraordinary reports, information or documentation shall be at the sole expense of the Purchaser and (y) the Purchaser and the Seller shall negotiate in good faith any necessary Reconstitution Agreements, among the Purchaser, the Seller and any other Person party to the reconstitution as may reasonably be required in connection with such Reconstitution, which Reconstitution Agreements shall be in form and substance acceptable to the Seller, the Purchaser and such other necessary Persons party to the Reconstitution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All Mortgage Loans not sold or transferred pursuant to a Reconstitution shall remain subject to this Agreement and with respect thereto this Agreement shall remain in full force and effect.

Section 26. <u>Additional Purchasers</u>.

Any affiliate of the Purchaser (including, without limitation, a trustee on behalf of a trust in respect of which such affiliate is the related depositor) shall become a party to this Agreement upon delivery to the Seller of an executed accession agreement in the form of Appendix B hereto. The Seller shall promptly upon receipt countersign such accession agreement to confirm its effectiveness. All references to the Purchaser herein shall refer to the applicable Purchaser of the relevant Mortgage Loans.

[SIGNATURES ON FOLLOWING PAGE]

**IN WITNESS WHEREOF**, the Seller and the Purchaser have caused their names to be signed to this Flow Mortgage Loan Purchase and Sale Agreement by their respective signatories duly authorized as of the date first above written.

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| | |
|:---|:---|
| **<u>SELLER</u>:** | **<u>SELLER</u>:** |
| **RITHM LOAN AGGREGATION TRUST** | **RITHM LOAN AGGREGATION TRUST** |
| By: NRZ MBN Issuer Holdings LLC, its Administrator | By: NRZ MBN Issuer Holdings LLC, its Administrator |
| By: | /s/ Nicola Santoro, Jr. |
| Name: | Nicola Santoro, Jr. |
| Title: | Chief Financial Officer |
| **<u>PURCHASER</u>:** | **<u>PURCHASER</u>:** |
| **RITHM PERPETUAL LIFE RESIDENTIAL TRUST** | **RITHM PERPETUAL LIFE RESIDENTIAL TRUST** |
| By: | /s/ Nicola Santoro, Jr. |
| Name: | Nicola Santoro, Jr. |
| Title: | Chief Financial Officer and Chief Accounting Officer |

---

**APPENDIX A**

**REPRESENTATIONS AND WARRANTIES REGARDING MORTGAGE LOANS**

The Seller hereby represents and warrants to the Purchaser that, as to each Mortgage Loan, as of the related Closing Date or such other date specified herein:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) <u>Property Valuation</u>: Each Mortgage File with a written appraisal, as indicated on the Mortgage Loan Schedule, contains a written appraisal prepared by an appraiser licensed or certified by the appropriate governmental body (or bodies) in the jurisdiction in which the Mortgaged Property is located and in accordance with the requirements of Title XI of the Financial Institutions Reform Recovery and Enforcement Act of 1989. The appraisal was written in form and substance to customary Fannie Mae or Freddie Mac standards for Mortgage Loans of the same type as the Mortgage Loans and USPAP standards and satisfies applicable legal and regulatory requirements. The appraisal was made and signed prior to the final approval of the Mortgage Loan application. The person performing any property valuation (including an appraiser) received no benefit from, and such person's compensation or flow of business from the related Originator was not affected by, the approval or disapproval of the Mortgage Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) <u>Income/Employment/Assets</u>: With respect to each Mortgage Loan for which the document type on the Mortgage Loan Schedule indicates documented income, employment and/or assets, the applicable originator verified the mortgagor's income, employment and/or assets in accordance with its written underwriting guidelines. With respect to each Mortgage Loan other than a Mortgage Loan for which the mortgagor documented his or her income by providing Form W-2 or tax returns, the applicable originator employed a process designed to verify the income with third-party documentation (including bank statements).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) <u>Occupancy</u>: The related Originator has given due consideration to factors, including but not limited to, other real estate owned by the mortgagor, commuting distance to work, appraiser comments and notes, the location of the property and any difference between the mailing address active in the servicing system and the subject property address to evaluate whether the occupancy status of the Mortgaged Property as represented by the mortgagor is reasonable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) <u>Source of Loan Payments</u>. With respect to each Mortgage Loan, no portion of the loan proceeds has been escrowed for the purpose of making monthly payments on behalf of the mortgagor and no payments due and payable under the terms of the Mortgage Note, except for seller or builder concessions or amounts paid or escrowed for payment by the mortgagor's employer, have been paid by any person (other than a guarantor) who was involved in or benefited from the sale of the Mortgaged Property or the origination, refinancing, sale or servicing of the Mortgage Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) <u>Data</u>: The information on the Mortgage Loan Schedule correctly and accurately reflects the information contained in the Seller's records (including, without limitation, the Mortgage Loan file) in all material respects. In addition, the information contained under each of the headings in the Mortgage Loan Schedule (e.g. mortgagor's income, employment and occupancy, among others) is true and correct in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) <u>Underwriting; Collection Practices; Escrow Payments</u>: Each Mortgage Loan was either underwritten in substantial conformance to the applicable underwriting guidelines in effect at the time of origination taking into account the compensating factors set forth in such underwriting guidelines as of the Closing Date, without regard to any underwriter discretion or, if not underwritten in substantial conformance to the applicable underwriting guidelines, has reasonable and documented compensating factors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) <u>Origination and Servicing Regulatory Compliance</u>: Other than with respect to the TRID rule, compliance with which is covered by representation and warranty (34) below, the origination, servicing, and collections practices used with respect to each Mortgage Loan have been in accordance with applicable laws and requirements, whether such servicing was done by the Seller, its affiliates, or any third party or any subservicer or servicing agent of any of the foregoing; provided, however, that the Seller will only be deemed to be in breach of this representation in the event that the noncompliance resulted in foreclosure or ultimate realization on the Mortgage Note being precluded or where, upon foreclosure, specific costs could be attributed to noncompliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) <u>No Prior Liens</u>: Immediately prior to the sale of the Mortgage Loans to the Purchaser, the Seller was the sole owner and holder of the Mortgage Loan free and clear of any and all liens (other than any senior lien indicated on the Mortgage Loan Schedule), pledges, charges or security interests of any nature, and the Seller had good and marketable title and full right and authority to sell and assign the Mortgage Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) <u>Enforceability and Priority of Lien</u>: The Mortgage is a valid, subsisting and enforceable first lien on the property therein described, and, except as noted in the Mortgage Loan Schedule, the Mortgaged Property is free and clear of all encumbrances and liens having priority over the lien of the Mortgage, except for: the lien of current real property taxes and assessments not yet due and payable; covenants, conditions and restrictions, rights of way, easements and other matters of public record as of the date of recording of such Mortgage acceptable to mortgage lending institutions in the area in which the Mortgaged Property is located or specifically referred to in the appraisal performed in connection with the origination of the related Mortgage Loan; liens created pursuant to any federal, state or local law, regulation or ordinance affording liens for the costs of cleanup of hazardous substances or hazardous wastes or for other environmental protection purposes; and such other matters to which like properties are commonly subject that do not individually or in aggregate materially interfere with the benefits of the security intended to be provided by the Mortgage; and any security agreement, chattel mortgage or equivalent document related to and delivered with any Mortgage establishes in the Seller a valid and subsisting first lien on the property described therein, and the Seller has full right to sell and assign the same to the Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) <u>Taxes Paid</u>: All taxes, governmental assessments, insurance premiums and water, sewer and municipal charges that previously became due and payable have been paid or an escrow of funds has been established, to the extent permitted by law, in an amount sufficient to pay for any such item that remains unpaid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) <u>No Damage/Condemnation</u>: The Mortgaged Property is undamaged by water, fire, earthquake or earth movement, hurricane, windstorm, flood, tornado or similar casualty to affect adversely the value of the Mortgaged Property as security for the Mortgage Loan or the use for which the premises was intended or would render the property uninhabitable. Additionally, there is no proceeding (pending or threatened) for the total or partial condemnation of the Mortgaged Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) <u>Fee Simple or Leasehold Estate / No Encroachments / Compliance With Zoning</u>: Except for Mortgage Loans secured by co-op shares and Mortgage Loans secured by residential long-term leases, the Mortgaged Property consists of a fee-simple estate in real property; all the improvements included for the purpose of determining the appraised value of the Mortgaged Property lie wholly within the boundaries and building restriction lines of such property and no improvements on adjoining properties encroach on the Mortgaged Property (unless insured against under the related title insurance policy); and the Mortgaged Property and all improvements thereon comply with all requirements of any applicable zoning and subdivision laws and ordinances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13) <u>Legally Occupied</u>: As of the related Closing Date, all inspections, licenses and certificates required to be made or issued with respect to all occupied portions of the Mortgaged Property and the use and occupancy of the same, including but not limited to certificates of occupancy and fire underwriting certificates, have been made or obtained from the appropriate authorities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14) <u>Mortgage Loan Legal and Binding</u>: The Mortgage Note, the related Mortgage and other agreements executed in connection therewith are genuine, and each is the legal, valid and binding obligation of the maker thereof, enforceable in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of creditors' rights generally and by general equity principles (regardless of whether such enforcement is considered in a proceeding in equity or at law). Additionally, all parties to the Mortgage Note and the Mortgage had legal capacity to execute the Mortgage Note and the Mortgage, and each Mortgage Note and Mortgage has been duly and properly executed by the mortgagor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15) <u>Proceeds Fully Disbursed / Recording Fees Paid</u>: The proceeds of the Mortgage Loan have been fully disbursed, there is no requirement for future advances thereunder, and any and all requirements as to completion of any on-site or off-site improvements and as to disbursements of any escrow funds have been complied with (except for escrow funds for exterior items, which could not be completed due to weather, and escrow funds for the completion of swimming pools). Additionally, all costs, fees and expenses incurred in making, closing or recording the Mortgage Loan have been paid, except recording fees with respect to mortgages not recorded as of the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16) <u>Existence of Title Insurance</u>: The Mortgage Loan (except any Mortgage Loan secured by a Mortgaged Property located in any jurisdiction for which an opinion of counsel of the type customarily rendered in such jurisdiction in lieu of title insurance is instead received and any Mortgage Loan secured by co-op shares) is covered by an American Land Title Association mortgagee title insurance policy or other generally acceptable form of policy or insurance acceptable to Fannie Mae or Freddie Mac, issued by a title insurer acceptable to Fannie Mae or Freddie Mac insuring the related Originator or its successors and assigns as to the first priority lien of the Mortgage in the original principal amount of the Mortgage Loan and subject only to the following: (a) the lien of current real property taxes and assessments not yet due and payable; (b) covenants, conditions and restrictions, rights of way, easements and other matters of public record as of the date of recording of such Mortgage acceptable to mortgage lending institutions in the area in which the Mortgaged Property is located or specifically referred to in the appraisal performed in connection with the origination of the related Mortgage Loan; (c) liens created pursuant to any federal, state or local law, regulation or ordinance affording liens for the costs of cleanup of hazardous substances or hazardous wastes or for other environmental protection purposes and (d) such other matters to which like properties are commonly subject that do not individually, or in the aggregate, materially interfere with the benefits of the security intended to be provided by the Mortgage. Immediately prior to the transfer of the Mortgage Loan to the Purchaser, the Seller was the sole insured of such mortgagee title insurance policy, the assignments to the Purchaser by the Seller of the Seller's interest in such mortgagee title insurance policy does not require any consent of or notification to the insurer that has not been obtained or made, such mortgagee title insurance policy is in full force and effect and will be in full force and effect and inure to the benefit of the Purchaser, no claims have been made under such mortgagee title insurance policy and no prior holder of the related mortgage, including the Seller, has done, by act or omission, anything that would impair the coverage of such mortgagee title insurance policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17) <u>Hazard Insurance</u>: The Mortgaged Property securing each Mortgage Loan is insured by an insurer acceptable to Fannie Mae or Freddie Mac against loss by fire and such hazards as covered under a standard extended coverage endorsement in an amount not less than the lesser of 100% of the insurable value of the Mortgaged Property or the outstanding principal balance of the Mortgage Loan. If the Mortgaged Property is a condominium unit, it is included under the coverage afforded by a blanket policy for the project. If, upon origination of the Mortgage Loan, the improvements on the Mortgaged Property were in an area identified in the Federal Register by the Federal Emergency Management Agency as having special flood hazards, a flood insurance policy meeting the requirements of the current guidelines of the Federal Insurance Administration is in effect with a generally acceptable insurance carrier in an amount representing coverage not less than the least of the outstanding principal balance of the Mortgage Loan, the full insurable value of the Mortgaged Property, or the maximum amount of insurance that was available under the National Flood Insurance Act of 1968, as amended. Additionally, each Mortgage obligates the mortgagor thereunder to maintain all such insurance at the mortgagor's cost and expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(18) <u>No Default</u>: Unless otherwise indicated on the Mortgage Loan Schedule, other than any Monthly Payment due for the month in which the Closing Date occurs and which is less than 30 days past due, there is no monetary default, breach, violation or event of acceleration existing under the Mortgage or the related Mortgage Note and no event which, with the passage of time or with notice and the expiration of any grace or cure period, would constitute a default, breach, violation or event permitting acceleration; and neither the Seller nor any prior owner has waived any default, breach, violation or event permitting acceleration. No foreclosure action is currently threatened or has been commenced with respect to any Mortgaged Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(19) <u>No Rescission</u>: No Mortgage Note or Mortgage is subject to any right of rescission, set-off, counterclaim or defense. None of the terms will render the Mortgage Note or Mortgage unenforceable or subject it to any right of rescission, set-off, counterclaim or defense. No such right of rescission, set-off, counterclaim or defense has been asserted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(20) <u>Enforceable Right of Foreclosure</u>: Each Mortgage contains customary and enforceable provisions such as to render the rights and remedies of the holder thereof adequate for the realization against the Mortgaged Property of the benefits of the security, including realization by judicial foreclosure (subject to any limitation arising from any bankruptcy, insolvency or other law for the relief of debtors), and there is no homestead or other exemption available to the mortgagor that would interfere with such right of foreclosure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(21) <u>Mortgage Loan Qualifies for REMIC</u>: The Mortgage Loan is a "qualified mortgage" within the meaning of Section 860G(a)(3)(A) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(22) <u>Doing Business</u>: With respect to each Mortgage Loan, all parties that have had any interest in such Mortgage Loan, whether as mortgagee, assignee, pledgee or otherwise, are (or, during the period in which they held and disposed of such interest, were) in compliance with any and all applicable licensing requirements of the laws of the state wherein the related Mortgaged Property is located, except to the extent that failure to be so licensed would not give rise to any claim against the Seller; provided, however, that the Seller will only be deemed to be in breach of this representation in the event that the noncompliance resulted in foreclosure or ultimate realization on the Mortgage Note being precluded or where, upon foreclosure, specific costs could be attributed to noncompliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(23) <u>Fraud</u>: No fraud or material error, material omission, material misrepresentation, gross negligence or similar occurrence with respect to a Mortgage Loan has taken place on the part of any originator, any correspondent or mortgage broker involved in the origination of such Mortgage Loan, the mortgagor or any appraiser, builder, developer or any other party involved in the origination or sale of the Mortgage Loan or in the application of any insurance in relation to such Mortgage Loan, that would impair in any way the rights of the Purchaser in the Mortgage Loan or Mortgaged Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(24) <u>Recordable</u>: As to any Mortgage Loan which is not a MERS Mortgage Loan, the Assignment of Mortgage is in recordable form and is acceptable for recording under the laws of the jurisdiction in which the Mortgaged Property is located.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(25) <u>Acceleration of Payments</u>: Subject to exceptions required by applicable law, the mortgage contains the customary and enforceable provisions of the related Originator at the time of origination for the acceleration of the payment of the unpaid principal amount of the Mortgage Loan if the related Mortgaged Property is sold without the prior consent of the mortgagee thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(26) <u>Complete Mortgage Files</u>: The instruments and documents with respect to each Mortgage Loan required to be delivered to the Purchaser or its designee on the related Closing Date have been delivered to the Purchaser or its designee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(27) <u>No Modification</u>: Unless otherwise indicated on the Mortgage Loan Schedule, neither the Seller nor any prior holder of the Mortgage or the related Mortgage Note has modified the Mortgage or the related Mortgage Note in any material respect, satisfied, canceled or subordinated the Mortgage in whole or in part, released the Mortgaged Property in whole or in part from the lien of the Mortgage or executed any instrument of release, cancellation, modification or satisfaction, except in each case as reflected in an agreement included in the loan file.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(28) <u>Mortgaged Property is 1-4 Family</u>: Each Mortgaged Property is located in the U.S. or a territory of the U.S. and consists of a one- to four-unit residential property, which may include, but is not limited to, a single-family dwelling, townhouse, condominium unit or unit in a planned unit development or, in the case of Mortgage Loans secured by co-op shares, leases or occupancy agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(29) <u>Loans Current / Prior Delinquencies</u>: Unless otherwise indicated on the Mortgage Loan Schedule, all payments required to be made up to the Due Date immediately preceding the Cut-off Date under the terms of the related Mortgage Note have been made, and no Mortgage Loan had been delinquent more than 60 days in the twelve (12) months preceding the Cut-off Date, unless disclosed on the Mortgage Loan Schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(30) <u>Mortgagor</u>: With respect to each Mortgage Loan, unless otherwise indicated on the Mortgage Loan Schedule, each Mortgagor is a natural person or other acceptable forms (e.g. land trust or limited liability company), and at the time of origination, the mortgagor was legally entitled to reside in or enter the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(31) <u>Ability to Repay</u>: To the extent that any Mortgage Loan is subject to the requirements of 12 C.F.R. § 1026.43(c), the Originator of such Mortgage Loan made a reasonable and good faith determination that the mortgagor would have a reasonable ability to repay the Mortgage Loan according to its terms, in accordance with 12 C.F.R § 1026.43(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(32) <u>Mortgage Insurance</u>: In each case in which a Primary Mortgage Insurance Policy is required pursuant to the applicable underwriting guidelines, the Mortgage Loan has mortgage insurance consistent with the terms of the Fannie Mae Guides and is insured as to payment defaults by a Primary Mortgage Insurance Policy issued by a Qualified Insurer. All provisions of such Primary Mortgage Insurance Policy have been and are being complied with, such policy is in full force and effect and all premiums due thereunder have been paid. No action, inaction or event has occurred and no state of facts exists as of the Closing Date that has, or will result in the exclusion from, denial of, or defense to coverage. Any Mortgage Loan subject to a Primary Mortgage Insurance Policy obligates the mortgagor thereunder to maintain the Primary Mortgage Insurance Policy and to pay all premiums and charges in connection therewith. To the extent a Mortgage Loan is insured under a lender paid mortgage insurance policy, the Mortgage Interest Rate for the Mortgage Loan as set forth on the related Mortgage Loan Schedule is net of any such premium.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(33) <u>Servicing</u>: To the best of Seller's knowledge, the Mortgage Loans have been serviced in all respects, including collection practices, in accordance with all applicable requirements; provided, however, that the Seller will only be deemed to be in breach of this representation in the event that the noncompliance resulted in foreclosure or ultimate realization on the Mortgage Note being precluded or where, upon foreclosure, specific costs could be attributed to noncompliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(34) <u>TRID Compliance</u>: With respect to each Mortgage Loan for which an application was taken on or after October 3, 2015, either: (i) the Mortgage Loan was originated in compliance with the CFPB's Truth-in-Lending Act and Real Estate Settlement Procedures Act Integrated Disclosure Rule, 78 Fed. Reg. 79730 (Dec. 31, 2013), as amended from time to time, and as implemented in Regulation Z (12 C.F.R. Part 1026) or any successor implementing regulation, as in effect on the date that the creditor or mortgage broker received the application for any Mortgage Loan (such rule, "<u>TRID</u>"); (ii) any TRID compliance exception with respect to each Mortgage Loan will not result in civil liability or has been cured in a manner which negates the associated civil liability; or (iii) such Mortgage Loan is not subject to TRID.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(35) <u>No Violation of Environmental Laws</u>: As of the related Closing Date, each Mortgaged Property complied in all material respects with all environmental laws, rules, and regulations that were applicable to such Mortgaged Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(36) <u>Regulatory Compliance</u>: No Mortgage Loan is a "high-cost" loan, "covered" loan or any other similarly designated loan as defined under any applicable predatory and abusive lending laws; provided, that, for the avoidance of doubt, no representation or warranty is made as to whether a Mortgage Loan constitutes a highly-priced mortgage loan, as permitted by specific state or federal laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(37) <u>MERS Mortgage Loans</u>: With respect to each Mortgage Loan for which the Seller has designated Mortgage Electronic Registration Systems, Inc. ("<u>MERS</u>") the related Assignment of Mortgage to MERS has been duly and properly recorded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(38) <u>Leaseholds</u>: To the extent the Mortgage Loan is secured by a leasehold interest: (i) the mortgagor is the owner of a valid and subsisting interest as tenant under the lease and is not in default thereunder, (ii) the lease is in full force and effect, and is unmodified, (iii) all rents and other charges have been paid when due, (iv) the lessor under the lease is not in default, (v) the execution, delivery, and performance of the mortgage do not require the consent (other than the consents that have been obtained and are in full force and effect) under, and will not violate or cause a default under, the terms of the lease, (vi) the lease is assignable or transferable, (vii) the term of such lease does not terminate earlier than five years after the maturity date of the Mortgage Note, (viii) the lease does not provide for termination of the lease in the event of the mortgagor's default without written notice to the mortgagee and a reasonable opportunity to cure the default, (ix) the lease permits the mortgaging of the related Mortgaged Property, and (x) the lease protects the mortgagee's interests in the event of a property condemnation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(39) <u>Insurance Not Impaired</u>: With respect to any insurance policy, including, but not limited to, hazard or title insurance, covering a Mortgage Loan and the related Mortgaged Property, neither the Seller nor any originator has engaged in, and the mortgagor has not engaged in, any act or omission that would impair the coverage of any such policy, the benefits of the endorsement or the validity and binding effect of either, including without limitation, no unlawful fee, commission, kickback or other unlawful compensation or value of any kind as has been or will be received, retained or realized by any attorney, firm, or other person or entity, and no such unlawful items have been received, retained or realized by the Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(40) <u>Deed of Trust</u>: In the event the mortgage constitutes a deed of trust, a trustee, duly qualified under applicable law to serve as such, has been properly designated and currently serves and is named in the mortgage, and no fees or expenses are or will become payable by the seller to the trustee under the deed of trust, except in connection with a trustee's sale after default by the mortgage.

APPENDIX B

FORM OF ACCESSION AGREEMENT

ACCESSION AGREEMENT (this "<u>Accession Agreement</u>"), dated as of [____________], 202_ to that certain Mortgage Loan Purchase Agreement, dated as of November 24, 2025 (such agreement, including any schedules, exhibits or attachments thereto and any amendments thereto and any successor agreement that may be entered into by the parties thereto in substitution therefor, hereinafter the "<u>Agreement</u>"), by and between Rithm Perpetual Life Residential Trust (the "<u>Purchaser</u>") and Rithm Loan Aggregation Trust (the "<u>Seller</u>"). Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Agreement.

SECTION 1. By execution of this Accession Agreement, [____________] (the "<u>Additional Purchaser</u>") hereby becomes a party to the Agreement, shall be deemed to be a "Purchaser" thereunder with respect to the Mortgage Loans owned by the Additional Purchasers pursuant to Section 26 of the Agreement and agrees to be bound by all of the terms and provisions of the Agreement.

SECTION 2. Any references contained in the Agreement to "Purchaser" shall be deemed to refer to the Additional Purchaser and any references contained therein to "Mortgage Loan" and "Mortgaged Property" shall be deemed to refer only to the Mortgage Loans owned by the Additional Purchaser and any related Mortgaged Properties.

SECTION 3. This Accession Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of New York, without regard to the conflict of laws rules thereof other than Section 5-1401 of the New York General Obligations Law.

IN WITNESS WHEREOF, the undersigned has duly executed this Accession Agreement as of the date first above written.

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| |
|:---|
| [ADDITIONAL PURCHASER] |
| By: |
| Name: |
| Title: |
| ACKNOWLEDGED AND AGREED: |

---

---

| |
|:---|
| **RITHM LOAN AGGREGATION TRUST** |
| By: NRZ MBN Issuer Holdings LLC, its Administrator |
| By: |
| Name: |
| Title: |

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APPENDIX C

MORTGAGE LOAN SCHEDULE FIELDS

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| | |
|:---|:---|
| **<u>Field Names</u>** | **<u>Field Names</u>** |
| &nbsp;&nbsp;&nbsp;1. | Mortgage Loan Number |
| &nbsp;&nbsp;&nbsp;2. | Stated Principal Balance as of the Cut-off Date |
| &nbsp;&nbsp;&nbsp;3. | principal balance at origination |
| &nbsp;&nbsp;&nbsp;4. | Mortgage Interest Rate as of the Cut-off Date |
| &nbsp;&nbsp;&nbsp;5. | Monthly Payment as of the Cut-off Date s |
| &nbsp;&nbsp;&nbsp;6. | original term to maturity |
| &nbsp;&nbsp;&nbsp;7. | remaining term to maturity as of the Cut-off Date |
| &nbsp;&nbsp;&nbsp;8. | whether such Mortgage Loan is a balloon loan as of the Cut-off Date |
| &nbsp;&nbsp;&nbsp;9. | interest-only term |
| &nbsp;&nbsp;&nbsp;10. | origination date |
| &nbsp;&nbsp;&nbsp;11. | first payment date |
| &nbsp;&nbsp;&nbsp;12. | next Due Date |
| &nbsp;&nbsp;&nbsp;13. | maturity date |
| &nbsp;&nbsp;&nbsp;14. | original loan-to-value ratio |
| &nbsp;&nbsp;&nbsp;15. | original appraised value |
| &nbsp;&nbsp;&nbsp;16. | sales price, if any |
| &nbsp;&nbsp;&nbsp;17. | lien position of the Mortgage Loan |
| &nbsp;&nbsp;&nbsp;18. | purpose of the Mortgage Loan |
| &nbsp;&nbsp;&nbsp;19. | street address, unit, city, state and zip code of the related Mortgaged Property |
| &nbsp;&nbsp;&nbsp;20. | Mortgaged Property type |
| &nbsp;&nbsp;&nbsp;21. | credit score at origination and the updated credit score |
| &nbsp;&nbsp;&nbsp;22. | date of the credit score |
| &nbsp;&nbsp;&nbsp;23. | occupancy status of the Mortgaged Property (e.g., primary, investor, secondary) |
| &nbsp;&nbsp;&nbsp;24. | delinquency status |
| &nbsp;&nbsp;&nbsp;25. | an indication of whether the related borrower is subject to bankruptcy proceedings |
| &nbsp;&nbsp;&nbsp;26. | most recent 12-month payment history of the Mortgage Loan (using MBA methodologies) |
| &nbsp;&nbsp;&nbsp;27. | home data index value and the date the home data index value was obtained |
| &nbsp;&nbsp;&nbsp;28. | broker's price opinion value and the date the broker's price opinion was obtained |
| &nbsp;&nbsp;&nbsp;29. | Updated Loan-to-Value Ratio |
| &nbsp;&nbsp;&nbsp;30. | an indication of whether such Mortgage Loan was previously modified and, if applicable, the date of such modification |
| &nbsp;&nbsp;&nbsp;31. | Servicer of the Mortgage Loan |
| &nbsp;&nbsp;&nbsp;32. | Custodian of the Mortgage Loan |
| &nbsp;&nbsp;&nbsp;33. | amount of any deferred principal balance |
| &nbsp;&nbsp;&nbsp;34. | an indication of whether such Mortgage Loan includes stepped Mortgage Interest Rates and the dates on which such Mortgage Interest Rates step up |
| &nbsp;&nbsp;&nbsp;35. | the number of times such Mortgage Loan was 30-59, 60-89, 90-119 and 120 days delinquent during the 12 months preceding the Cut-off Date |

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**<u>EXHIBIT 1</u>**

FORM OF POWER OF ATTORNEY

[DATED]

Document drafted by and

RECORDING REQUESTED BY:

**[Entity]**

**[Address]**

**[City, State, Zip Code]**

<br> SPACE ABOVE THIS LINE FOR RECORDER'S USE

**LIMITED POWER OF ATTORNEY** 

**Rithm Loan Aggregation Trust** **("Trust")** hereby constitutes and appoints **NewRez LLC,** having an office at 75 Beattie Place, Suite 300, Greenville, South Carolina 29601 ("Servicer"), and in its name, aforesaid Attorney-In-Fact, by and through any officer appointed by the Board of Directors of Servicer, to execute and acknowledge in writing or by facsimile stamp all documents customarily and reasonably necessary and appropriate for the tasks described in the attached Appendix A; provided however, that (a) Servicer represents and warrants that all actions taken pursuant to this Limited Power of Attorney are consistent with its duties and obligations as a servicer for the Trust, and (b) all actions taken by Servicer pursuant to this Limited Power of Attorney must be in accordance with Federal, State and local laws and procedures, as applicable. This Limited Power of Attorney is being issued in connection with Servicer's responsibilities to service certain mortgage loans (the "Loans") held by the Trust. These Loans are comprised of Mortgages, Deeds of Trust, Deeds to Secure Debt and other forms of security instruments (collectively the "Security Instruments") encumbering any and all real and personal property delineated therein (the "Property") and the Notes secured thereby.

**Witness** my hand and seal this ____ day of _________, 20__.

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| | |
|:---|:---|
| **NO CORPORATE SEAL** | **RITHM LOAN AGGREGATION TRUST** |
|  | By: NRZ MBN Issuer Holdings LLC, its Administrator |
|  | By: |
| Witness: |  |
| Witness: |  |
| **CORPORATE ACKNOWLEDGMENT** |  |
| **STATE OF ________________** |  |
| **COUNTY OF** **________________** |  |

---

On this ____ day of __________, 20__, before me personally appeared _______________________________, [__] of [__], as Administrator, proved to me through satisfactory evidence of identification, which was a ________________ [insert state name] driver's license, to be the party/parties executing the foregoing instrument, and acknowledged to me that he/she/they executed the instrument voluntarily for its stated purpose as [__] of [__], as Administrator, as the voluntary act of said entity and that such individual(s) made such appearance before the undersigned in the County of [__], State of [__].

WITNESS my hand and official seal.

Signature: _____________________

Name: [ ]

Notary Public

My commission expires: [ ]

**APPENDIX A**

1. Demand,
 sue for, recover, collect and receive each and every sum of money, debt, account and interest
 (which now is, or hereafter shall become due and payable) belonging to or claimed by the
 Trust, and to use or take any lawful means for recovery or preservation of the Trust's
 interest by legal process or otherwise, including but not limited to the substitution of
 trustee serving under a Deed of Trust, the preparation and issuance of statements of breach,
 proofs of claim, notices of default, and/or notices of sale, accepting deeds in lieu of foreclosure,
 evicting (to the extent allowed by federal, state or local laws), foreclosing on the properties
 under the Security Instruments by judicial or non-judicial foreclosure, filing or responding
 to actions or claims for temporary restraining orders, injunctions, appointments of receiver,
 suits for waste, third-party lien related matters, (including but not limited to mechanics
 liens, HOA/COA/Co-op liens), property forfeitures, seizures, tax sales, eminent domain and
 condemnation actions, probate proceedings, partition actions, easements, property line adjustments,
 lender title claims or quiet title actions, code violation notices or actions, fraud claims
 and any and all other tort, contractual or administrative actions and verifications in support
 thereof Servicer deems necessary or advisable in any bankruptcy action, state or federal
 suit or any other action.

2. Execute
 and/or file such documents and take such other action as is proper and necessary to defend
 the Trust in litigation and to resolve any litigation where the Servicer has an obligation
 to defend the Trust, including but not limited to dismissal, termination, cancellation, rescission
 and settlement.

3. Transact
 business of any kind regarding the Loans, as the Trust's act and deed, to contract
 for, purchase, receive and take possession and evidence of title in and to the Property and/or
 to secure payment of a promissory note or performance of any obligation or agreement relating
 thereto.

4. Execute,
 complete, indorse or file bonds, notes, mortgages, deeds of trust and other contracts, agreements
 and instruments regarding the borrowers and/or the Property, including but not limited to
 the execution of estoppel certificates, financing statements, continuation statements, releases,
 satisfactions, reconveyances, assignments, loan modification agreements, payment plans, waivers,
 consents, amendments, forbearance agreements, loan assumption agreements, subordination agreements,
 property adjustment agreements, management agreements, listing agreements, the filing of
 lender and/or title policy claims against title insurers, purchase and sale agreements, short
 sale transactions and other instruments pertaining to mortgages or deeds of trust, and execution
 of deeds and associated instruments, if any, conveying the Property, in the interest of the
 Trust.

5. Indorse
 on behalf of the undersigned all checks, drafts and/or other negotiable instruments made
 payable to the undersigned.

6. Execute
 any document or perform any act in connection with the administration of any PMI policy or
 LPMI policy, hazard or other insurance claim relative to the Loans or related Property.

7. Execute
 any document or perform any act described in items (3), (4), and (5) in connection with
 the termination of the Trust as necessary to transfer ownership of the affected Loans to
 the entity (or its designee or assignee) possessing the right to obtain ownership of the
 Loans.

8. Subordinate
 the lien of a mortgage, deed of trust, or deed or other security instrument to secure debt
 (i) for the purpose of refinancing Loans, where applicable, or (ii) to an easement
 in favor of a public utility company or a government agency or unit with powers of eminent
 domain, including but not limited to the execution of partial satisfactions and releases
 and partial reconveyances reasonably required for such purpose, and the execution or requests
 to the trustees to accomplish the same.

9. Convey
 the Property to the mortgage insurer, or close the title to the Property to be acquired as
 real estate owned, or convey title to real estate owned property ("REO Property").

10. Execute
 and deliver any documentation with respect to the sale, maintenance, preservation, renovation,
 repair, demolition or other disposition, of REO Property acquired through a foreclosure or
 deed-in-lieu of foreclosure, including, without limitation: permits, remediation plans or
 agreements, certifications, compliance certificates, health and safety certifications, listing
 agreements; purchase and sale agreements; grant / limited or special warranty / quit claim
 deeds or any other deed, but not general warranty deeds, causing the transfer of title of
 the property to a party contracted to purchase same; escrow instructions; and any and all
 documents necessary to effect the transfer of REO Property.

11. Servicer
 has the power to execute additional limited powers of attorney and delegate the authority
 given to it by the Trust, under the applicable servicing agreements for the Trust.

12. To
 execute, record, file and/or deliver any and all documents of any kind for the purpose of
 fulfilling any servicing duties, including but not limited to those listed in subparagraphs
 (1) through (11).

Trust also grants unto Servicer the full power and authority to correct minor ambiguities and errors in documents necessary to effect or undertake any of the items or powers set forth in items (1) to (12), above.

**<u>EXHIBIT 2</u>**

**FORM OF PURCHASE ADVICE**

This Purchase Advice (this "Purchase Advice"), dated as of [__], 202[_] (the "<u>Closing Date</u>"), is between Rithm Loan Aggregation Trust, a Delaware statutory trust ("<u>Seller</u>") and [__] ("<u>Purchaser</u>") under that certain Flow Mortgage Loan Purchase and Sale Agreement dated as of November 24, 2025 (as supplemented by each Accession Agreement thereto and as further amended, supplemented or otherwise modified from time to time, the "<u>Purchase Agreement</u>"). The Seller does hereby sell, transfer, assign, set over and convey to the Purchaser, on a servicing-released basis, and subject to the terms of this Purchase Advice and the Purchase Agreement, all right, title and interest of the Seller in and to the Mortgage Loans listed on the Mortgage Loan Schedule attached hereto as **Exhibit A**, together with the related Mortgage Files and all rights and obligations arising under the documents contained therein. Capitalized terms used herein and not otherwise defined shall have the meanings set forth in the Purchase Agreement.

1. Defined Terms. As used in this Purchase Advice,
 the following defined terms shall have meanings set forth below.

&nbsp;&nbsp;&nbsp;&nbsp;(a) Closing Date: [__], 202[__].

&nbsp;&nbsp;&nbsp;&nbsp;(b) Cut-off Date: [__], 202[__].

&nbsp;&nbsp;&nbsp;&nbsp;(c) Purchase Price: [With respect to each
 Mortgage Loan, as set forth in Exhibit A hereto.]

&nbsp;&nbsp;&nbsp;&nbsp;(d) Purchase Price Percentage: [As set forth
 in Exhibit A hereto.]

&nbsp;&nbsp;&nbsp;&nbsp;(e) Stated
 Principal Balance [With respect to each Mortgage Loan, as set
 forth in Exhibit A hereto.]

&nbsp;&nbsp;&nbsp;&nbsp;(g) Additional Closing Conditions/Obligations:
 [__]

&nbsp;&nbsp;&nbsp;&nbsp;(h) Seller Account: [__]

&nbsp;&nbsp;&nbsp;&nbsp;(i) Mortgage Loan Schedule: [The Microsoft Excel file labeled [__] delivered by representatives of the Seller to representatives of the Purchaser
on the Closing Date.]

This Purchase Advice may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which counterparts, taken together, shall constitute but one and the same instrument. Any signature page to this Purchase Advice containing a manual signature may be delivered by facsimile transmission or other electronic communication device capable of transmitting or creating a printable written record, and when so delivered shall have the effect of delivery of an original manually signed signature page.

IN WITNESS WHEREOF, the parties have executed this Purchase Advice by their duly authorized officers as of the Closing Date.

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| |
|:---|
| Rithm Loan Aggregation Trust |
| By: NRZ MBN Issuer Holdings LLC, as Administrator |
| By: |
| Name: |
| Title: |
| [PURCHASER] |
| By: |
| Name: |
| Title: |

---

**EXHIBIT A**

**Mortgage Loan Schedule**

## Exhibit 10.6

**Exhibit 10.6**

**EXECUTION VERSION**

FLOW moRtgage loan purchase and sale agreement

between

RITHM LOAN AGGREGATION TRUST

as Seller,

and

RITHM PERPETUAL LIFE RESIDENTIAL TRUST

as Purchaser

Dated as of November 24, 2025

Residential Mortgage Loans

**TABLE OF CONTENTS**

Page

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| | | |
|:---|:---|:---|
| SECTION 1. | DEFINITIONS | 1 |
| SECTION 2. | PURCHASE AND CONVEYANCE | 7 |
| SECTION 3. | MORTGAGE LOAN SCHEDULE | 8 |
| SECTION 4. | PURCHASE PRICE | 8 |
| SECTION 5. | EXAMINATION OF MORTGAGE FILES | 8 |
| SECTION 6. | DELIVERY OF MORTGAGE LOAN DOCUMENTS. | 8 |

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsection 6.01. | Possession of Mortgage Files | 8.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsection 6.02. | Books and Records | 9.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsection 6.03. | Delivery of Mortgage Loan Documents | 9.0 |

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SECTION 7. SELLER'S REPRESENTATIONS, WARRANTIES AND COVENANTS; REMEDIES FOR BREACH. 10

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsection 7.01. | Seller's Representations and Warranties Regarding Individual Mortgage Loans | 10.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsection 7.02. | Seller's Representations and Covenants | 10.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsection 7.03. | Repurchase. | 11.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsection 7.04. | Repurchase of Mortgage Loans With Early Payment Default | 12.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsection 7.05. | Purchase Price Protection | 12.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsection 7.06. | Further Assurances | 12.0 |

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SECTION 8. CLOSING. 12

Subsection 8.01. Closing Conditions 12 <br>Subsection 8.02. Closing Documents 13

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| | | |
|:---|:---|:---|
| Section 9. | COSTS | 13.0 |
| Section 10. | SERVICING | 13.0 |
| Section 11. | NOTICES | 13.0 |
| Section 12. | SEVERABILITY CLAUSE | 13.0 |
| Section 13. | NO PARTNERSHIP | 13.0 |
| SECTION 14. | COUNTERPARTS | 14.0 |
| SECTION 15. | GOVERNING LAW; CHOICE OF FORUM; WAIVER OF JURY TRIAL | 14.0 |
| SECTION 16. | INTENTION OF THE PARTIES | 14.0 |
| SECTION 17. | WAIVERS; AMENDMENTS | 15.0 |
| SECTION 18. | EXHIBITS; ETC | 15.0 |
| SECTION 19. | GENERAL INTERPRETIVE PRINCIPLES | 15.0 |
| SECTION 20. | CONFIDENTIALITY; PROTECTION OF CONSUMER INFORMATION | 15.0 |

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| | | |
|:---|:---|:---|
| SECTION 21. | ENTIRE AGREEMENT | 15.0 |
| SECTION 22. | FURTHER AGREEMENTS | 15.0 |
| SECTION 23. | SUCCESSORS AND ASSIGNS; SURVIVAL | 16.0 |
| SECTION 24. | [RESERVED] | 16.0 |
| SECTION 25. | COOPERATION OF THE SELLER WITH A RECONSTITUTION. | 16.0 |
| SECTION 26. | ADDITIONAL PURCHASERS. | 16.0 |

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APPENDICES AND EXHIBITS

---

| | |
|:---|:---|
| APPENDIX A | REPRESENTATIONS AND WARRANTIES REGARDING MORTGAGE LOANS |
| APPENDIX B | FORM OF ACCESSION AGREEMENT |
| APPENDIX C | MORTGAGE LOAN SCHEDULE FIELDS |

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EXHIBIT 1 FORM OF POWER OF ATTORNEY <br>EXHIBIT 2 FORM OF PURCHASE ADVICE

FLOW Mortgage Loan Purchase and Sale Agreement

THIS FLOW MORTGAGE LOAN PURCHASE AND SALE AGREEMENT, dated as of November 24, 2025, is hereby executed by and between Rithm Perpetual Life Residential Trust, a Maryland statutory trust, as purchaser (the "<u>Purchaser</u>") and Rithm Loan Aggregation Trust, a Delaware statutory trust, as seller (the "<u>Seller</u>").

WITNESSETH:

WHEREAS, the Seller intends to sell from time to time to the Purchaser, and the Purchaser intends to purchase from time to time from the Seller, certain residential mortgage loans as described herein; and

WHEREAS, the Mortgage Loans will be sold by the Seller and purchased by the Purchaser individually or as pools or groups of whole loans on the various Closing Dates as provided herein; and

WHEREAS, each of the Mortgage Loans will be secured by a mortgage, deed of trust or other security instrument creating a lien on the related Mortgaged Property; and

WHEREAS, the Purchaser and the Seller wish to prescribe the manner of the purchase, sale, conveyance and control of the Mortgage Loans;

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

Section 1. <u>Definitions</u>. For purposes of this Agreement, the following capitalized terms shall have the respective meanings set forth below.

<u>AAA</u>: The American Arbitration Association.

<u>Accepted Servicing Practices</u>: With respect to each Mortgage Loan, those mortgage servicing practices which comply with applicable law, the terms of the related Mortgage Note and Mortgage and are in accordance with accepted mortgage servicing practices customary for prudent mortgage lending institutions which service mortgage loans of the same type as such Mortgage Loan in the jurisdiction where the related Mortgaged Property is located.

<u>Additional Draw Amounts</u>: With respect to any Mortgage Loan, the additional principal amount advanced to the related Mortgagor from time to time pursuant to the terms of the related Mortgage Note.

<u>Advance</u>: With respect to a Mortgage Loan, an advance of funds to the related Mortgagor to be used in the rehabilitation of the related Mortgaged Property pursuant to the terms of such Mortgage Loan.

<u>Adjustable Rate Mortgage Loan</u>: A Mortgage Loan purchased pursuant to this Agreement which provides for the adjustment of the Mortgage Interest Rate payable in respect thereto.

<u>Adjustment Date</u>: As to each Adjustable Rate Mortgage Loan, the date on which the Mortgage Interest Rate is adjusted in accordance with the terms of the related Mortgage Note and Mortgage.

<u>Agreement</u>: This Flow Mortgage Loan Purchase and Sale Agreement including all exhibits, schedules, annexes, addenda, appendices, attachments, amendments and supplements hereto.

<u>Anti-Money Laundering Laws</u>: As defined in Subsection 7.02(h).

<u>Applicable Requirements</u>: With respect to the Mortgage Loans, as applicable and as of the time of reference, (a) the terms of the applicable Mortgage, Mortgage Note and any other Mortgage Loan Document; (b) applicable law applicable to the applicable Mortgage, Mortgage Note and any other Mortgage Loan Document; and (c) all contractual obligations relating to the Mortgage Loans including the Underwriting Guidelines and those contractual obligations contained in any applicable Servicing Agreement or in any agreement relating to the Mortgage Loans with any insurer or in the Mortgage File.

<u>Arbitration</u>: Arbitration in accordance with the then governing Commercial Arbitration Rules of the AAA and administered by the AAA, which shall be conducted in New York, New York or other place mutually acceptable to the parties to the arbitration.

<u>Arbitrator</u>: A person who is not affiliated with the Seller or the Purchaser, who is a member of the AAA and who is an attorney with consumer finance experience.

<u>Assignment of Mortgage</u>: An individual assignment of the Mortgage, notice of transfer or equivalent instrument in recordable form, sufficient under the laws of the jurisdiction in which the related Mortgaged Property is located to reflect the sale of the Mortgage to the Purchaser and give record notice of the sale of the Mortgage to the Purchaser.

<u>Business Day</u>: Any day other than (a) a Saturday or a Sunday, or (b) a legal holiday in the State of New York or the State of Minnesota, or (c) a day on which banks in the State of New York or the State of Minnesota are authorized or obligated by law or executive order to be closed.

<u>CFPB</u>: The Consumer Financial Protection Bureau or any successor thereto.

<u>Closing Date</u>: The date or dates, set forth in the related Purchase Advice, on which the Purchaser will purchase and the Seller will sell the Mortgage Loans identified therein and the related Mortgage Loan Packages.

<u>Code</u>: The Internal Revenue Code of 1986, as amended, or any successor statute thereto.

<u>Commission</u>: The U.S. Securities and Exchange Commission.

<u>Condemnation Proceeds</u>: All awards, compensation and settlements in respect of a taking (whether permanent or temporary) of all or part of a Mortgaged Property by exercise of the power of condemnation or the right of eminent domain, to the extent not required to be released to the related Mortgagor in accordance with the terms of the related Mortgage Loan Documents.

<u>Consumer Information</u>: Any personally identifiable information in any form (written, electronic or otherwise) relating to a Mortgagor, including, but not limited to: a Mortgagor's name, address, telephone number, Mortgage Loan number, Mortgage Loan payment history, delinquency status, insurance carrier, tax amount or payment information; the fact that a Mortgagor has a relationship with the Seller or the Originator of the related Mortgage Loan; and any other non-public personally identifiable information that is supplied to the Purchaser by or on behalf of the Seller.

<u>Cut-off Date</u>: As set forth in the related Purchase Advice.

<u>Defective Document</u>: As defined in Subsection 7.03(a).

<u>Delinquent</u>: Any Mortgage Loan with respect to which the Monthly Payment due on a Due Date for such Mortgage Loan is not made by the close of business on the Business Day preceding the next Due Date for such Mortgage Loan.

<u>Due Date</u>: The day of the month on which the Monthly Payment is due on a Mortgage Loan, exclusive of any days of grace as specified in the related Mortgage Note.

<u>EPD Period</u>: As defined in Subsection 7.04.

<u>Evaluation/Appraisal</u>: An evaluation or an appraisal made, in either case, by an Evaluation/Appraisal Vendor which, in either case, satisfies the requirements of Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, as amended, and the regulations promulgated thereunder, all as in effect on the origination date of the Mortgage Loan.

<u>Evaluation/Appraisal Vendor</u>: The author of the evaluation or appraisal constituting an Evaluation/Appraisal.

<u>Executive Order</u>: As defined in Subsection 7.02(h).

<u>Fannie Mae</u>: The entity formally known as the Federal National Mortgage Association (FNMA) or any successor thereto.

<u>Fannie Mae Guides</u>: The Fannie Mae Single Family Selling Guide and the Fannie Mae Single Family Servicing Guide and all amendments or additions thereto in effect on and after the related Closing Date.

<u>Freddie Mac</u>: The entity formally known as the Federal Home Loan Mortgage Corporation (FHLMC) or any successor thereto.

<u>Freddie Mac Guides</u>: The Freddie Mac Single-Family Seller/Servicer Guide and all amendments or additions thereto in effect on and after the related Closing Date.

<u>Full Prepayment</u>: Any payment of the entire principal balance of a Mortgage Loan which is received in advance of its scheduled Due Date and is not accompanied by an amount of interest representing scheduled interest due on any date or dates in any month or months subsequent to the month of prepayment.

<u>Initial Rate Cap</u>: With respect to each Adjustable Rate Mortgage Loan and the initial Adjustment Date therefor, a number of percentage points per annum that is set forth in the related Mortgage Loan Schedule and in the related Mortgage Note, which is the maximum amount by which the Mortgage Interest Rate of such Adjustable Rate Mortgage Loan may increase or decrease from the Mortgage Interest Rate in effect immediately prior to such Adjustment Date.

<u>Insurance Proceeds</u>: With respect to each Mortgage Loan, the proceeds of insurance policies insuring such Mortgage Loan or the related Mortgaged Property.

<u>Lifetime Rate Cap</u>: As to each Adjustable Rate Mortgage Loan, the maximum Mortgage Interest Rate which shall be as permitted in accordance with the provisions of the related Mortgage Note.

<u>Liquidation Proceeds</u>: The proceeds received in connection with the liquidation of a defaulted Mortgage Loan, whether through the sale or assignment of such Mortgage Loan, trustee's sale, foreclosure sale or otherwise, other than amounts received following the acquisition of REO Property, Insurance Proceeds and Condemnation Proceeds.

<u>MERS</u>: Collectively, MERSCORP, Inc. and Mortgage Electronic Registration Systems, Inc., and their respective successors and assigns.

<u>MERS Mortgage Loan</u>: A Mortgage Loan for MERS has been designated as the mortgagee of record for such Mortgage Loan as nominee for the related owner.

<u>MERS System</u>: The system of recording transfers of mortgages electronically maintained by MERS.

<u>Minimum Interest Rate</u>: With respect to each Adjustable Rate Mortgage Loan, a rate that is set forth on the related Mortgage Loan Schedule and in the related Mortgage Note and is the minimum interest rate to which the Mortgage Interest Rate on such Mortgage Loan may be decreased.

<u>Monthly Payment</u>: The scheduled monthly payment on a Mortgage Loan due on any Due Date allocable to principal and/or interest on such Mortgage Loan pursuant to the terms of the related Mortgage Note.

<u>Mortgage</u>: The mortgage, deed of trust or other instrument securing a Mortgage Note which creates a first lien on an unsubordinated estate in fee simple in real property securing the Mortgage Note; except that with respect to real property located in jurisdictions in which the use of leasehold estates for residential properties is a widely-accepted practice, the mortgage, deed of trust or other instrument securing the Mortgage Note may secure and create a first lien upon a leasehold estate of the Mortgagor.

<u>Mortgage File</u>: With respect to each Mortgage Loan, all documents required under Applicable Requirements involved in the underwriting (including documented compensating factors pertaining to exceptions to the Applicable Requirements), origination, and servicing of such Mortgage Loan, including the documents specified in the Underwriting Guidelines, and any additional documents required to be added to the Mortgage File pursuant to this Agreement.

<u>Mortgage Interest Rate</u>: With respect to each Mortgage Loan, the annual rate at which interest accrues on such Mortgage Loan from time to time in accordance with the provisions of the related Mortgage Note, including the limitations on such interest rate imposed by the Initial Rate Cap, the Periodic Rate Cap, the Minimum Interest Rate and the Lifetime Rate Cap, if any.

<u>Mortgage Loan</u>: Each individual mortgage loan that is the subject of this Agreement, each mortgage loan originally sold and subject to this Agreement being identified on the related Mortgage Loan Schedule, which Mortgage Loan includes without limitation the Mortgage File, the Monthly Payments, Principal Prepayments, Liquidation Proceeds, Condemnation Proceeds, Insurance Proceeds, REO Disposition Proceeds, any escrow accounts related to such Mortgage Loan and all other rights, benefits, proceeds and obligations arising from or in connection with such Mortgage Loan, provided that the term "Mortgage Loan" shall not include any mortgage loan that has been repurchased by the Seller pursuant to this Agreement after giving effect to such repurchase.

<u>Mortgage Loan Documents</u>: With respect to any Mortgage Loan, the documents specified in the Underwriting Guidelines, as may be amended from time to time by the Purchaser and provided by (or on behalf of) the Purchaser to the Seller.

<u>Mortgage Loan Package</u>: The individual, pool, or group of whole Mortgage Loans purchased on a Closing Date, as described in the Mortgage Loan Schedule annexed to the related Purchase Advice.

<u>Mortgage Loan Schedule</u>: The schedule of Mortgage Loans for an applicable Purchase Advice prepared for each Closing Date setting forth the information with respect to each Mortgage Loan in the format required by the Purchaser, and delivered by (or on behalf of) the Purchaser to the Seller, which schedule shall be annexed to such Purchase Advice or, if acceptable to the Purchaser in its sole discretion, otherwise associated with such Purchase Advice in a manner specified by the Purchaser in writing. The Mortgage Loan Schedule will include, among other information fields, the information fields set forth on <u>Appendix C</u> hereto.

<u>Mortgage Note</u>: The original executed note or other evidence of the indebtedness of a Mortgagor secured by a Mortgage.

<u>Mortgaged Property</u>: The Mortgagor's real property securing repayment of a related Mortgage Note, consisting of a fee simple or leasehold interest in a single parcel of real property improved by one of the following: (a) a detached one-family dwelling, (b) a detached two- to four-family dwelling, (c) a one-family dwelling unit in a condominium project, (d) a one-family dwelling in a planned unit development, (e) mixed use properties provided that at least 75% of such property by square foot and by value is used for residential units, (f) a manufactured home or (g) shares in a co-operative.

<u>Mortgagee</u>: The mortgagee or beneficiary named in the Mortgage and the successors and assigns of such mortgagee or beneficiary.

<u>Mortgagor</u>: The obligor on a Mortgage Note.

<u>Officer's Certificate</u>: A certificate signed by the Seller's Chairman of the Board, the Vice Chairman of the Board, a President, a Vice President or other Person acceptable to the Purchaser.

<u>Originator</u>: With respect to any Mortgage Loan, each Person or Persons, which may include the Seller, that (a) took the Mortgagor's loan application, (b) processed the Mortgagor's loan application or (c) closed and/or funded such Mortgage Loan.

<u>Partial Prepayment</u>: Any payment of principal on a Mortgage Loan, other than a Full Prepayment, which is received in advance of its scheduled Due Date and is not accompanied by an amount of interest representing scheduled interest due on any date or dates in any month or months subsequent to the month of prepayment.

<u>Periodic Rate Cap</u>: As to each Adjustable Rate Mortgage Loan, the maximum increase or decrease in the Mortgage Interest Rate, on any Adjustment Date after the initial Adjustment Date as provided in the related Mortgage Note, if applicable.

<u>Person</u>: An individual, corporation, partnership, joint venture, association, joint-stock company, limited liability company, trust, unincorporated organization or government or any agency or political subdivision thereof.

<u>Prepayment Charge</u>: With respect to each Mortgage Loan, the fee payable by the Mortgagor if the Mortgagor prepays such Mortgage Loan as provided in the related Mortgage Note, Mortgage or other Mortgage Loan Document.

<u>Primary Mortgage Insurance Policy</u>: A policy of primary mortgage guaranty insurance.

<u>Principal Prepayment</u>: Any Full Prepayment or Partial Prepayment or other recovery of principal on a Mortgage Loan (including any Prepayment Charge) which is received in advance of its scheduled Due Date, and which is not accompanied by an amount of interest representing scheduled interest due on any date or dates in any month or months subsequent to the month of prepayment.

<u>Purchase Advice</u>: With respect to each Mortgage Loan Package, the Purchase Advice, substantially in the form attached hereto as Exhibit 2, providing for the sale by the Seller and the purchase by the Purchaser of such Mortgage Loan Package on the related Closing Date.

<u>Purchase Price</u>: The price paid on the related Closing Date by (or on behalf of) the Purchaser to the Seller pursuant to this Agreement in exchange for the Mortgage Loans included in the related Mortgage Loan Package, as calculated pursuant to <u>Section 4</u> and the related Purchase Advice.

<u>Purchase Price Percentage</u>: For each Mortgage Loan included in a Mortgage Loan Package, the percentage of par set forth in the related Purchase Advice that is used to calculate the Purchase Price of each such Mortgage Loan included in such Mortgage Loan Package.

<u>Purchaser</u>: The Person listed as such in the initial paragraph of this Agreement, together with its successors and assigns as permitted under the terms of this Agreement and each additional Purchaser joined to this agreement pursuant to Section 26.

<u>Qualified Insurer</u>: An insurance company duly qualified as such under the laws of the state in which the Mortgaged Property is located, duly authorized and licensed in such state to transact the applicable insurance business and to write the insurance provided by the insurance policy issued by it, and approved as an insurer by Fannie Mae or Freddie Mac or the Purchaser.

<u>Reconstitution</u>: As defined in Section 25(a).

<u>Reconstitution Agreement</u>: The agreement or agreements provided by (or on behalf of) the Purchaser and entered into by the Seller and the Purchaser and certain third parties on the Reconstitution Date or Reconstitution Dates with respect to any or all of the Mortgage Loans conveyed hereunder, in connection with a Whole Loan Transfer or a Securitization Transaction, as provided in <u>Section 25</u>.

<u>Reconstitution Date</u>: As defined in Section 25(a).

<u>REO Disposition</u>: The final sale by the Purchaser of an REO Property.

<u>REO Disposition Proceeds</u>: All amounts received with respect to an REO Disposition.

<u>REO Property</u>: A Mortgaged Property acquired by or on behalf of the Purchaser through foreclosure or deed in lieu of foreclosure.

<u>Repurchase Price</u>: With respect to any Mortgage Loan, a price equal to the sum of (a) the product of (i) the unpaid principal balance of such Mortgage Loan as of the related date of repurchase, and (ii) the related Purchase Price Percentage applicable to such Mortgage Loan, <u>plus</u> (b) interest on such unpaid principal balance at the related Mortgage Interest Rate from the last date through which interest was last paid and distributed to the Purchaser to the last day of the month in which such repurchase occurs, <u>plus</u> (c) reasonable and customary third party expenses incurred in connection with the transfer of the Mortgage Loan being repurchased, <u>plus</u> (d) any costs and expenses incurred by the Purchaser in enforcing the related repurchase obligation, including without limitation reasonable attorney's fees, <u>plus</u> (e) the amount of any related unreimbursed advances made by the Purchaser or its servicer, <u>minus</u> (f) any amounts received in respect of such repurchased Mortgage Loan and being held in the custodial account for future distribution in connection with such Mortgage Loan, <u>plus</u> (g) any other amounts relating to liabilities, penalties or expenses set forth in <u>Subsection 7.03(a)</u>.

<u>Securities Act</u>: The Securities Act of 1933, as amended.

<u>Securitization Transaction</u>: Any transaction involving either (a) a sale or other transfer of some or all of the Mortgage Loans directly or indirectly by the Purchaser to an issuing entity in connection with an issuance of publicly offered or privately placed, rated or unrated mortgage- backed securities or (b) an issuance of publicly offered or privately placed, rated or unrated securities, the payments on which are determined primarily by reference to one or more portfolios of residential mortgage loans consisting, in whole or in part, of some or all of the Mortgage Loans.

<u>Seller</u>: Rithm Loan Aggregation Trust, a Delaware statutory trust, or its successor in interest or any successor to the Seller under this Agreement appointed as herein provided.

<u>Servicer</u>: Genesis Capital LLC (the "Servicer") or any successor.

<u>Servicing Agreement</u>: The servicing agreement between Rithm Perpetual Life Residential Trust and the Servicer, dated as of November 24, 2025, under which the Servicer services the Mortgage Loans or otherwise performs services with respect to the Mortgage Loans.

<u>Servicing File</u>: With respect to each Mortgage Loan, the documents pertaining thereto, including the related Mortgage Loan Documents and the documents included in the Mortgage File.

<u>Stated Principal Balance</u>: As to each Mortgage Loan as to any date of determination, (a) the principal balance of such Mortgage Loan as of the first day of the month for which such calculation is being made after giving effect to the principal portion of any Monthly Payments due on or before such date, whether or not received, as well as any Principal Prepayments received before such date, minus, without duplication, (b) all amounts received after the related Closing Date and distributed prior to the date of such determination to the Purchaser with respect to such Mortgage Loan representing payments or recoveries of principal, or advances in lieu thereof.

<u>Underwriting Guidelines</u>: With respect to any Mortgage Loan, the Purchaser's written underwriting and sales guidelines in effect as of the origination date of such Mortgage Loan, and delivered by (or on behalf of) the Purchaser to the Seller, as may be revised and modified, from time to time by the Purchaser.

<u>Whole Loan Transfer</u>: Any sale or transfer by the Purchaser of some or all of the Mortgage Loans, other than a Securitization Transaction.

Section 2. <u>Purchase and Conveyance</u>. The Seller, in exchange for the payment of the applicable Purchase Price by the Purchaser on the related Closing Date, receipt of which is hereby acknowledged, hereby sells, transfers, assigns, sets over and conveys to the Purchaser, without recourse, but subject to the terms of this Agreement, all of its right, title and interest in and to the Mortgage Loans, including the related Mortgage Note and Mortgages, in a Mortgage Loan Package having a Stated Principal Balance in an amount as set forth in the related Purchase Advice, or in such other amount as agreed by the Purchaser and the Seller, together with the related Mortgage Files and all rights and obligations arising under the documents contained therein.

With respect to each Mortgage Loan, the Purchaser shall own and be entitled to (a) all Monthly Payments due after the related Cut-off Date, (b) all other recoveries of principal collected after the related Cut-off Date (provided, however, that the principal portion of all Monthly Payments due on or before the related Cut-off Date and collected by the Seller (individually and as interim servicer) after the related Cut-off Date shall belong to the Seller), and (c) all payments of interest on such Mortgage Loan. The Stated Principal Balance of each Mortgage Loan as of the related Cut-off Date is determined after application of payments of principal due on or before the related Cut-off Date whether or not collected, together with any unscheduled Full Prepayments and Partial Prepayments collected prior to the related Cut-off Date; provided, however, that Monthly Payments for a Due Date beyond the Cut-off Date shall not be applied to reduce the principal balance. Such Monthly Payments shall be the property of the Purchaser.

Section 3. <u>Mortgage Loan Schedule</u>. The Seller shall deliver, or cause to be delivered, the Mortgage Loan Schedule to the Purchaser at least two (2) Business Days prior to the related Closing Date (or such shorter period acceptable to the Purchaser).

Section 4. <u>Purchase Price; Funding of Draws</u>.

Subsection 4.01. <u>Purchase Price</u>. The Purchase Price for the Mortgage Loans being acquired on a Closing Date shall be equal to the sum of (a) the product of (i) the Purchase Price Percentage stated in the related Purchase Advice (subject to adjustment as provided therein) and (ii) the Stated Principal Balance of the Mortgage Loans listed on the related Mortgage Loan Schedule, plus (b) an amount equal to the aggregate of the accrued interest on the Stated Principal Balance of each of the related Mortgage Loans from the related Cut-off Date through the day immediately prior to the related Closing Date. If so provided in the related Purchase Advice, portions of the Mortgage Loans shall be priced separately. The Purchase Price shall be paid on the related Closing Date by wire transfer of immediately available funds to the account designated by the Seller in the related Purchase Advice or such other writing from the Seller as may be agreed to by the Seller and the Purchaser.

Subsection 4.02. <u>Funding of Draws</u>. On and after the related Closing Date, the Purchaser shall assume all obligations in respect of Additional Draw Amounts.

Section 5. <u>Examination of Mortgage Files</u>. If requested by the Purchaser, the Seller shall, at the written direction of the Purchaser or its designee, deliver, or cause to be delivered, to the Purchaser (or its designee in escrow or under a bailee letter), for examination and retention, with respect to each Mortgage Loan to be purchased on the related Closing Date, the related Mortgage File in a format as agreed to by the Purchaser and the Seller. Such examination may be made by the Purchaser or its designee at any reasonable time before or after the related Closing Date. The Purchaser may, at its option and without notice to the Seller, purchase all or part of the Mortgage Loan Package without conducting any partial or complete examination. The fact that the Purchaser has conducted or has determined not to conduct any partial or complete examination of the Mortgage Files shall not affect the Purchaser's (or any of its successors' and assigns') right to demand repurchase or other relief or remedy provided for in this Agreement.

Section 6. <u>Delivery of Mortgage Loan Documents</u>.

Subsection 6.01. <u>Possession of Mortgage Files</u>. Originals or copies of all documents, including the documents included in the Mortgage File and comprising the Mortgage File, other than the Mortgage Loan Documents, shall be delivered to the Purchaser or its designee on or prior to the related Closing Date. Originals of the contents of each Mortgage File not delivered to the Purchaser or the custodian appointed by the Purchaser are and shall be held in trust by the Seller for the benefit of the Purchaser as the owner thereof and shall be available for review by the Purchaser upon request.

The Seller's possession of any portion of each such Mortgage File is at the will of the Purchaser for the sole purpose of facilitating the servicing of the Mortgage Loans pursuant to this Agreement, and such retention and possession by the Seller shall be in a custodial capacity only. The ownership of the Mortgage Notes, Mortgages, the other Mortgage Loan Documents and the contents of the related Mortgage Files is vested in the Purchaser and the ownership of all records and documents with respect to the related Mortgage Loans prepared by or which come into the possession of the Seller shall immediately vest in the Purchaser and shall be retained and maintained by the Seller or the Servicer, as applicable, at the will of the Purchaser in such custodial capacity only. The copies of the Mortgage File retained by the Seller with respect to each Mortgage Loan pursuant to this Agreement shall be appropriately identified in the Seller's computer system to reflect clearly the ownership of such Mortgage Loan by the Purchaser. The Seller shall release from its custody the contents of any Mortgage File retained by it only in accordance with this Agreement, except when such release is required in connection with a repurchase of the related Mortgage Loan pursuant to <u>Subsection 7.03</u> or if required under applicable law or court order.

Subsection 6.02. <u>Books and Records</u>. The sale of each Mortgage Loan will be reflected on the Seller's balance sheet and other financial statements as a sale of assets by the Seller. The Seller shall maintain a complete set of books and records for the Mortgage Loans sold by it which shall be appropriately identified in the Seller's computer system to clearly reflect the ownership of the Mortgage Loans by the Purchaser.

Subsection 6.03. <u>Delivery of Mortgage Loan Documents</u>. If requested by the Purchaser, the Seller shall deliver and release, or cause to be delivered and released, to the Purchaser or the custodian appointed by the Purchaser the Mortgage Loan Documents for mortgage loans that may be purchased hereunder no later than three (3) Business Days prior to the related Closing Date or, upon the request of the Purchaser, earlier, if necessary or desirable to facilitate a review. If delivery of all Mortgage Loan Documents, including the Mortgage Loan Documents that require recordation or certified proof of recordation, with respect to any Mortgage Loan is not completed within two hundred seventy (270) days after the related Closing Date, then, at the Purchaser's option, the Seller shall repurchase such Mortgage Loan in accordance with the procedures set forth in Subsection 7.03.

If the Purchaser, the Seller or one of their respective designees discovers any defect with respect to any document constituting part of a Mortgage File, then (a) the discovering party shall, or shall cause its designee to, give written specification of such defect to the other party and (b) the Seller shall cure or repurchase the related Mortgage Loan in accordance with the procedures set forth in <u>Subsection 7.03</u>. Any review by the Purchaser or its designee of the Mortgage Files shall in no way alter or reduce the Seller's obligations hereunder.

To the extent that any such Mortgage Loan Documents have been delivered for recording and have not yet been returned to the Seller by the applicable recording office, the Seller shall, promptly following receipt by it of such Mortgage Loan Documents from the applicable recording office, deliver such documents to the Purchaser or its designee; provided, however, that the original recorded document or a clerk-certified copy thereof shall be delivered to the Purchaser no later than ninety (90) days following the related Closing Date, subject to the following paragraph.

In the event that such original or copy of any document submitted for recordation to the appropriate public recording office is not so delivered to the Purchaser or its designee within ninety (90) days following the related Closing Date, and in the event that the Seller does not cure such failure within sixty (60) days after receipt of written notification of such failure from the Purchaser, the related Mortgage Loan shall, upon the request of the Purchaser, be repurchased by the Seller at the Repurchase Price. The foregoing repurchase obligation shall not apply in the event the Seller cannot deliver such original or clerk-certified copy of any document submitted for recordation to the appropriate public recording office within the specified period due to a delay caused by the recording office in the applicable jurisdiction; provided that the Seller shall instead deliver a recording receipt of such recording office or, if such recording receipt is not available, an officer's certificate of a servicing officer of the Seller, confirming that such document has been accepted for recording and that the Seller shall immediately deliver such document upon receipt; and, provided further, that if the Seller cannot deliver such original or clerk-certified copy of any document submitted for recordation to the appropriate public recording office within the specified time for any reason within twelve (12) months after receipt of written notification of such failure from the Purchaser, the Seller shall immediately repurchase the related Mortgage Loan at the Repurchase Price.

To the extent received by it, the Seller shall promptly forward to the Purchaser, or its designee, original documents evidencing an assumption, modification, consolidation or extension of any Mortgage Loan entered into in accordance with this Agreement.

Section 7. <u>Seller's Representations, Warranties and Covenants; Remedies for Breach</u>.

Subsection 7.01. <u>Seller's Representations and Warranties Regarding Individual Mortgage Loans</u>. The Seller hereby represents and warrants to the Purchaser that, as to each Mortgage Loan, as of the related Closing Date or such other date specified herein, the representations and warranties specified in Appendix A are true and correct. The Purchaser acknowledges and agrees that, except as expressly provided in Appendix A, the Seller has not and does not additionally represent, warrant or covenant the nature, accuracy, completeness, enforceability or validity of any of loan documents, Mortgage Files, or any information or documents made available to the Purchaser or its counsel, accountants or advisors in connection with the Mortgage Loans and, all documentation, information, analysis and/or correspondence, if any, which is or may be sold, transferred, assigned and conveyed to the Purchaser with respect to any and all Mortgage Loans is sold, transferred, assigned and conveyed to the Purchaser on an "AS IS, WHERE IS" basis, WITH ALL FAULTS.

Subsection 7.02. <u>Seller's Representations and Covenants</u>. The Seller hereby represents, warrants and covenants to the Purchaser that, as of the related Closing Date (or such other date as is specified below):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Seller is a statutory trust under the laws of the State of Delaware. The Seller has the power and authority to execute and deliver this Agreement and the Seller has the power to perform in accordance herewith; the execution, delivery and performance of this Agreement (including all instruments of transfer to be delivered pursuant to this Agreement) by it and the consummation of the transactions contemplated hereby have been duly and validly authorized.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Agreement, assuming due authorization, execution and delivery by the Purchaser, evidences the legal, valid, binding and enforceable obligation of it, subject to applicable law except as enforceability may be limited by (i) bankruptcy, insolvency, liquidation, receivership, moratorium, reorganization or other similar laws affecting the enforcement of the rights of creditors or (ii) general principles of equity, whether enforcement is sought in a proceeding in equity or at law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No consent, approval, authorization or order is required for the transactions contemplated by this Agreement from any court, governmental agency or body, or federal or state regulatory authority having jurisdiction over it or, if required, such consent, approval, authorization or order has been or will, prior to the related Closing Date, be obtained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The consummation of the transactions contemplated by this Agreement will not result in the breach of any term or provision of its organizational documents or result in the breach of any term or provision of; or conflict with or constitute a default under or result in the acceleration of any obligation under, any material agreement, indenture or loan or credit agreement or other instrument to which it or its property is subject, or result in the violation of any law, rule, regulation, order, judgment or decree to which it or its property is subject.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) It is solvent and the sale of the Mortgage Loans will not cause it to become insolvent. The sale of the Mortgage Loans is not undertaken with the intent to hinder, delay or defraud any of its creditors.

Subsection 7.03. <u>Repurchase</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) It is understood and agreed that the representations and warranties set forth in <u>Appendix A</u> and <u>Subsection 7.02</u> shall survive the sale of the Mortgage Loans and delivery of the Mortgage File to the Purchaser, or its designee, and shall inure to the benefit of the Purchaser, notwithstanding any restrictive or qualified endorsement on any Mortgage Note or Assignment of Mortgage or the examination or review, or lack of examination or review, of any Mortgage Loan Document. Upon discovery by the Seller or the Purchaser of (i) a breach of any of the representations and warranties set forth in <u>Appendix A</u> with respect to any Mortgage Loan which breach materially and adversely affects the value of such Mortgage Loan or the interest of the Purchaser in such Mortgage Loan or (ii) any defective or missing document required to be included in a Mortgage File ("Defective Document") as described in <u>Subsection 6.03</u>, the party discovering such breach or Defective Document shall give prompt written notice to the other. With respect to the representations and warranties contained in <u>Appendix A</u> that are made to the Seller's knowledge or to the best of Seller's knowledge, if it is discovered by either the Seller or the Purchaser that the substance of such representation and warranty is inaccurate and such inaccuracy materially and adversely affects the value of the related Mortgage Loan or the interest of the Purchaser in the related Mortgage Loan, the Purchaser shall be entitled to all the remedies to which it would be entitled for a breach of representation or warranty, including the repurchase requirements contained herein, notwithstanding Seller's lack of knowledge with respect to the inaccuracy at the time the representation or warranty was made. The Seller hereby covenants and agrees that if any such Defective Document or breach is not corrected or cured within such sixty (60) day period, or if the Seller is required to repurchase any Mortgage Loan pursuant to any other provision herein, the Seller shall repurchase such Mortgage Loan at the Repurchase Price. Any repurchase pursuant to this <u>Subsection 7.03(a)</u> shall be accomplished by wire transfer of immediately available funds of the amount of the Repurchase Price to an account designated by the Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any claim or cause of action against the Seller relating to or arising out of the breach of any of the representations and warranties made in <u>Appendix A</u> or <u>Subsection 7.02</u> shall accrue as to any Mortgage Loan upon (i) notice thereof by the Purchaser to the Seller, (ii) failure by the Seller to cure such breach or repurchase such Mortgage Loan as specified above, and (iii) demand upon the Seller by the Purchaser for compliance with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The parties agree that the resolution of any controversy or claim arising out of or relating to an obligation or alleged obligation of the Seller to repurchase a Mortgage Loan or make any other payment required under this <u>Subsection 7.03</u> due to a breach of a representation or warranty set forth in <u>Appendix A</u> or <u>Subsection 7.02</u> shall be by Arbitration. The parties shall comply with the Arbitration procedures provided in writing by the Purchaser. The finding of the Arbitrator shall be final and binding upon the parties. Judgment upon any arbitration award rendered may be entered and enforced in any court of competent jurisdiction. The costs of the Arbitrator shall be shared equally between both parties. Each party, however, shall bear their own attorney's fees, costs and expenses in connection with the Arbitration.

Subsection 7.04. <u>Repurchase of Mortgage Loans With Early Payment Default</u>. If any of the first three (3) Monthly Payments due after the related Closing Date (the "EPD Period") for a Mortgage Loan becomes Delinquent (or is delinquent pursuant to the related Purchase Advice), then the Seller, at the Purchaser's option, shall promptly repurchase the related Mortgage Loan from the Purchaser in accordance with the procedures set forth in Subsection 7.03 hereof except that there will be no cure period or opportunity to cure.

Subsection 7.05. <u>Purchase Price Protection</u>. With respect to any Mortgage Loan that is paid in full on or prior to the last day of the third (3rd) full month following the related Closing Date (or such other date set forth in the related Purchase Advice), the Seller shall, promptly upon demand therefor by Purchaser, reimburse the Purchaser the full amount of the premium paid by the Purchaser above par on the Mortgage Loan. Notwithstanding anything to the contrary set forth in this Agreement, any amounts payable pursuant to this Subsection 7.05 with respect to a Mortgage Loan shall be offset by any Prepayment Charges collected with respect to such Mortgage Loan during the three (3) month period.

Subsection 7.06. <u>Further Assurances</u>. Seller shall, upon request of Purchaser, promptly execute and deliver to Purchaser all such other and further documents and instruments of transfer, conveyance and assignment, and shall take such other action Purchaser may require to more effectively transfer, convey, assign to and vest in Purchaser and to put Purchaser in possession of the property to be transferred, conveyed, assigned and delivered hereunder and otherwise to carry out more effectively the intent of the provisions under this Agreement.

Section 8. <u>Closing</u>.

Subsection 8.01. <u>Closing Conditions</u>. The closing for the purchase and sale of each Mortgage Loan Package shall take place on the respective Closing Date. The closing shall be either by telephone, confirmed by letter or wire as the parties hereto shall agree, or conducted in person, at such place as the parties hereto shall agree. The closing for each Mortgage Loan Package shall be subject to the satisfaction of each of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Seller shall have delivered to the Purchaser the related Mortgage Loan Schedule and an electronic data file containing information on a loan-level basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) unless otherwise agreed by the Purchaser, the Purchaser shall have received from the custodian an initial certification or trust receipt, as applicable, with respect to its receipt of the Mortgage Loan Documents for the related Mortgage Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Purchaser shall have received fully executed copies of the related Purchase Advice and, if applicable, a funding memorandum setting forth the Purchase Price(s) for the Mortgage Loan Package, in each case duly executed on behalf of the Seller;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) to the extent requested by the Purchaser, the Purchaser shall have received such number of executed powers of attorney as requested by the Purchaser, in the form provided by the Purchaser to the Seller; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all other terms and conditions of this Agreement and the related Purchase Advice to be satisfied by the Seller shall have been performed.

Upon satisfaction of the foregoing conditions, the Purchaser shall pay to the Seller on such Closing Date the Purchase Price for the related Mortgage Loan Package pursuant to <u>Section 4</u>.

Subsection 8.02. <u>Closing Documents</u>. Prior to the initial Closing Date, the Seller shall submit to the Purchaser one fully executed original of the following documents:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Purchaser shall have received ten (10) executed powers of attorney in substantially in the form of <u>Exhibit 1</u> attached hereto (or such other form that is acceptable to the Purchaser).

Section 9. <u>Costs</u>. The Seller shall pay any commissions due to its salespeople and each party shall pay their own attorney's fees, costs and expenses. The Purchaser shall pay the actual, out-of-pocket cost of recording the Assignments of Mortgage. The Seller shall pay the cost of the transfers of any Mortgage Loans on MERS, with respect to non-MERS Mortgage Loans, the cost for the preparation of the Assignments of Mortgages and allonges, and the cost of delivering the Mortgage Loan Documents to the Purchaser or its designee for each related Closing Date.

Section 10. <u>Servicing</u>. As of the related Closing Date, the Mortgage Loans will be serviced by the Servicer pursuant to the Servicing Agreement.

Section 11. <u>Notices</u>. All demands, notices and communications hereunder shall be in writing and shall be deemed to have been duly given if personally delivered, sent via electronic transmission (without a notice of transmission failure), transmitted by a recognized private courier service or mailed by registered mail, postage prepaid, addressed as follows, unless such address is changed by written notice hereunder:

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) | if to the Purchaser: | Rithm Perpetual Life Residential Trust |
|  |  | c/o RCM GA Manager LLC |
|  |  | 799 Broadway, 8th Floor |
|  |  | New York, New York 10003 |
|  |  | Email: Group_RithmLegal@rithmcap.com] |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) | if to the Seller: | Rithm Loan Aggregation Trust |
|  |  | c/o NRZ MBN Issuer Holdings LLC |
|  |  | 799 Broadway, 8th Floor |
|  |  | New York, New York 10003 |
|  |  | Email: Group_RithmLegal@rithmcap.com] |

---

Section 12. <u>Severability Clause</u>. Any provision in this Agreement that is held to be void, inoperative, unenforceable or invalid as to any party or in any jurisdiction shall, as to that party or jurisdiction, be void, inoperative, unenforceable or invalid without affecting the remaining provisions or the operation, enforceability or validity of that provision as to any other party or in any other jurisdiction, and to this end the provisions of this Agreement are declared to be severable. If as a result of any provision being held to be void, inoperative, unenforceable or invalid any party is deprived any party of the economic benefit intended to be conferred by this Agreement, the parties shall negotiate, in good-faith, to develop a structure the economic effect of which is nearly as possible the same as the economic effect of this Agreement without regard to such provision being held to be void, inoperative, unenforceable or invalid.

Section 13. <u>No Partnership</u>. Nothing herein contained shall be deemed or construed to create a co-partnership or joint venture between the parties hereto and the services of the Seller hereunder shall be rendered as an independent contractor and not as agent for the Purchaser.

Section 14. <u>Counterparts</u>. This Agreement may be executed simultaneously in any number of counterparts. Each counterpart shall be deemed to be an original, and all such counterparts shall constitute one and the same instrument. The parties intend that faxed signatures and electronically imaged signatures such as .pdf files shall constitute original signatures for the purposes of validity, enforceability and admissibility, and are binding on all parties. Any document accepted, executed or agreed to in conformity with such eCommerce Laws, by one or more parties, will be binding on all parties the same as if it were physically executed.

Section 15. <u>Governing Law; Choice of Forum; Waiver of Jury Trial</u>. EXCEPT TO THE EXTENT PREEMPTED BY FEDERAL LAW, THE AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE CONFLICTS OF LAWS PROVISIONS OF NEW YORK (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW) OR ANY OTHER JURISDICTION. EACH PARTY HERETO KNOWINGLY, INTENTIONALLY AND IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR IN ANY WAY RELATED TO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY. Except as to those matters which this Agreement provides shall be submitted to Arbitration, with respect to any claim or action arising hereunder, the parties (a) irrevocably submit to the nonexclusive jurisdiction of the courts of the State of New York and the United States District Court located in the Borough of Manhattan in the City of New York, New York and (b) irrevocably waive any objection which such party may have at any time to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement brought in any such court, and irrevocably waive any claim that any such suit action or proceeding brought in any such court has been brought in an inconvenient forum.

Section 16. <u>Intention of the Parties</u>. It is the intention of the parties that the Purchaser is purchasing, and the Seller is selling, the Mortgage Loans and not a debt instrument of the Seller or another security. Accordingly, the parties hereto each intend to treat, and will treat unless otherwise required by law, the transaction for federal (and applicable state and local) income tax purposes as a sale by the Seller, and a purchase by the Purchaser, of the Mortgage Loans. The Purchaser shall have the right to review the Mortgage Loans and the related Mortgage Files to determine the characteristics of the Mortgage Loans which shall affect the federal (and any applicable state and local) income tax consequences of owning the Mortgage Loans and the Seller shall cooperate with all reasonable requests made by the Purchaser in the course of such review.

It is not the intention of the parties that such conveyances be deemed a grant of a security interest in the Mortgage Loans transferred hereunder. However, in the event that, notwithstanding the intent of the parties, such assets are held to be the property of the Seller or if for any other reason this Agreement is held or deemed to create a security interest in either such assets, then (a) this Agreement shall be a security agreement within the meaning of the Uniform Commercial Code of the State of New York and (b) the conveyances provided for in this Agreement shall be deemed to be a grant by the Seller to the Purchaser of, and the Seller hereby grants to the Purchaser a security interest in all of the assets transferred hereunder, whether now owned or hereafter acquired.

Section 17. <u>Waivers; Amendments</u>. No term or provision of this Agreement may be waived or modified unless such waiver or modification is in writing and signed by the party against whom such waiver or modification is sought to be enforced. This Agreement may be amended from time to time by written agreement executed and delivered by the Seller and the Purchaser.

Section 18. <u>Exhibits; Etc</u>. The exhibits, schedules, annexes, addenda, appendices and attachments to this Agreement are hereby incorporated and made a part hereof and are an integral part of this Agreement.

Section 19. <u>General Interpretive Principles</u>. For purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires: (a) the terms defined in this Agreement have the meanings assigned to them in this Agreement and include the plural as well as the singular, and the use of any gender herein shall be deemed to include the other gender; (b) accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting principles; (c) references herein to "Articles," "Sections," "Subsections," "Paragraphs" and other subdivisions without reference to a document are to designated Articles, Sections, Subsections, Paragraphs and other subdivisions of this Agreement; (d) the headings of the various articles, sections, subsections and paragraphs of this Agreement and the table of contents are for convenience of reference only and shall not modify, define, expand or limit any of the terms or provisions hereof; (e) reference to a Subsection without further reference to a Section is a reference to such Subsection as contained in the same Section in which the reference appears, and this rule shall also apply to Paragraphs and other subdivisions; (f) the words "herein," "hereof," "hereunder," and other words of similar import refer to this Agreement as a whole and not to any particular provision; and (g) the term "include" or "including" shall mean without limitation by reason of enumeration.

Section 20. <u>Confidentiality; Protection of Consumer Information</u>. The Purchaser and the Seller shall employ proper procedures and standards designed to maintain the confidential nature of the terms of this Agreement, each Purchase Advice and the Purchase Price paid by the Purchaser except to the extent (a) the disclosure of which is reasonably believed by such party to be required in connection with regulatory requirements or other legal requirements relating to its affairs; (b) disclosed to any one or more of such party's employees, officers, directors, agents, attorneys or accountants who would have access to the contents of this Agreement or any Purchase Advice and such data and information in the normal course of the performance of such person's duties for such party, to the extent such party has procedures in effect to inform such person of the confidential nature thereof; (c) that is disclosed in a prospectus, prospectus supplement or private placement memorandum relating to a Securitization Transaction of the Mortgage Loans by the Purchaser (or an affiliate assignee thereof) or to any person in connection with the resale or proposed resale of all or a portion of the Mortgage Loans by such party in accordance with the terms of this Agreement; and (d) that is reasonably believed by such party to be necessary for the enforcement of such party's rights under this Agreement or any Purchase Advice. Each party agrees that it (a) shall comply with any applicable laws regarding the privacy and security of Consumer Information, including the Gramm-Leach-Bliley Act, Title V, Subtitle A, 15 U.S.C. § 6801 et seq., and (b) shall, to the extent not prohibited by applicable law, rule, policy or court order, promptly notify the other party upon actual knowledge of any actual or suspected breach of the confidentiality of Consumer Information.

Section 21. <u>Entire Agreement</u>. This Agreement constitutes the entire agreement and understanding relating to the subject matter hereof between the parties hereto and any prior oral or written agreements between them shall be deemed to have merged herewith.

Section 22. <u>Further Agreements</u>. The Seller shall, upon request of the Purchaser, promptly execute and deliver to the Purchaser all other and further documents and instruments of transfer, conveyance and assignment, and shall take such other action the Purchaser may require to more effectively transfer, convey, assign to and vest in the Purchaser and to put the Purchaser in possession of the property to be transferred, conveyed, assigned and delivered hereunder and otherwise to carry out more effectively the intent of the provisions under this Agreement. The Seller shall, upon request of the Purchaser, promptly deliver to the Purchaser a copy of such records or information requested by the Purchaser.

Section 23. <u>Successors and Assigns; Survival</u>. This Agreement shall bind and inure to the benefit of and be enforceable by the initial Purchaser and the Seller, and the respective successors and assigns of the Purchaser and the Seller. The initial Purchaser and any subsequent purchasers may assign this Agreement to any Person to whom any Mortgage Loan is transferred pursuant to a sale or financing without the consent of the Seller, subject to successful completion of any applicable know-your-customer procedures. Upon any such assignment, the Person to whom such assignment is made shall succeed to all rights and obligations of the Purchaser under this Agreement to the extent of the related Mortgage Loan or Mortgage Loans and this Agreement, to the extent of the related Mortgage Loan or Mortgage Loans, shall be deemed to be a separate and distinct agreement between the Seller and such purchaser, and a separate and distinct agreement between the Seller and each other purchaser to the extent of the other related Mortgage Loan or Mortgage Loans. The Seller shall not assign, delegate or otherwise transfer this Agreement or its rights or obligations hereunder without the prior written consent of the Purchaser. Any purported assignment, delegation or other transfer by the Seller in violation of the foregoing shall be null and void.

The obligations of the Seller under <u>Subsections 7.03, 7.04</u> and <u>7.05</u> shall survive the expiration or termination of this Agreement as well as any resignation by the Seller or termination of the Seller as interim servicer pursuant to the terms of this Agreement.

Section 24. <u>[Reserved]</u>.

Section 25. Cooperation of the Seller with a Reconstitution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Seller and the Purchaser agree that with respect to some or all of the Mortgage Loans, after the related Closing Date, on one or more dates (each a "Reconstitution Date") at the Purchaser's sole option, the Purchaser may effect a sale (each, a "Reconstitution") of some or all of the Mortgage Loans then subject to this Agreement, without recourse, to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) one or more Whole Loan Transfers; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) one or more Securitization Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event the Purchaser desires to pursue a Reconstitution, (x) the Seller shall cooperate with the Purchaser in providing such information and documents for review and analysis by the Purchaser and other necessary Persons, as the Purchaser may reasonably request to effectuate such Reconstitution, provided, however, the reasonable out-of-pocket costs of producing any extraordinary reports, information or documentation shall be at the sole expense of the Purchaser and (y) the Purchaser and the Seller shall negotiate in good faith any necessary Reconstitution Agreements, among the Purchaser, the Seller and any other Person party to the reconstitution as may reasonably be required in connection with such Reconstitution, which Reconstitution Agreements shall be in form and substance acceptable to the Seller, the Purchaser and such other necessary Persons party to the Reconstitution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All Mortgage Loans not sold or transferred pursuant to a Reconstitution shall remain subject to this Agreement and with respect thereto this Agreement shall remain in full force and effect.

Section 26. <u>Additional Purchasers</u>.

Any affiliate of the Purchaser (including, without limitation, a trustee on behalf of a trust in respect of which such affiliate is the related depositor) shall become a party to this Agreement upon delivery to the Seller of an executed accession agreement in the form of Appendix B hereto. The Seller shall promptly upon receipt countersign such accession agreement to confirm its effectiveness. All references to the Purchaser herein shall refer to the applicable Purchaser of the relevant Mortgage Loans.

[SIGNATURES ON FOLLOWING PAGE]

**IN WITNESS WHEREOF**, the Seller and the Purchaser have caused their names to be signed to this Flow Mortgage Loan Purchase and Sale Agreement by their respective signatories duly authorized as of the date first above written.

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| | |
|:---|:---|
| **<u>SELLER</u>:** | **<u>SELLER</u>:** |
| **RITHM LOAN AGGREGATION TRUST** | **RITHM LOAN AGGREGATION TRUST** |
| By: NRZ MBN Issuer Holdings LLC, its Administrator | By: NRZ MBN Issuer Holdings LLC, its Administrator |
| By: | /s/ Nicola Santoro, Jr. |
| Name: | Nicola Santoro, Jr. |
| Title: | Chief Financial Officer |
| **<u>PURCHASER</u>:** | **<u>PURCHASER</u>:** |
| **RITHM PERPETUAL LIFE RESIDENTIAL TRUST** | **RITHM PERPETUAL LIFE RESIDENTIAL TRUST** |
| By: | /s/ Nicola Santoro, Jr. |
| Name: | Nicola Santoro, Jr. |
| Title: | Chief Financial Officer and Chief Accounting Officer |

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**APPENDIX A**

**REPRESENTATIONS AND WARRANTIES REGARDING MORTGAGE LOANS**

The Seller hereby represents and warrants to the Purchaser that, as to each Mortgage Loan, as of the related Closing Date or such other date specified herein:

1. <u>Payments Current</u>. All payments required to be made up to the Closing Date for the Mortgage Loan
under the terms of the Mortgage Note and each other related Mortgage Loan Document have been made and credited. As of the Closing Date,
no payment required under the Mortgage Loan is delinquent and no payment under the Mortgage Loan has been delinquent at any time since
the related origination date of the Mortgage Loan by more than forty-five (45) days. The first monthly payment shall be made, or shall
have been made, with respect to the Mortgage Loan on its Due Date or within forty-five (45) days thereof, all in accordance with the terms
of the related Mortgage Note.

2. <u>No Outstanding Charges</u>. Except for Permitted Exceptions, all taxes, governmental assessments, insurance
premiums, water, sewer and municipal charges, leasehold payments or ground rents, in each case, which may become a lien on the related
Mortgaged Property, which previously became due and owing have been paid, or an escrow of funds has been established in an amount sufficient
to pay for every such item which remains unpaid and which has been assessed but is not yet delinquent; provided, however, property taxes
which have not become more than 1 year delinquent shall be considered a Permitted Exception. Seller has not advanced funds, or induced,
solicited or knowingly received any advance of funds by a party other than the Mortgagor, directly or indirectly, for the payment of any
principal or interest amount required under the Mortgage Loan.

3. <u>Original Terms Unmodified</u>. The terms of the Mortgage Note, Mortgage and each other related Mortgage
Loan Document have not been impaired, waived, altered or modified in any respect, from the related origination date, except by a written
instrument that has been recorded, if necessary to protect the interests of Purchaser, and delivered to the Purchaser or its designee
and the terms of which are reflected in the Mortgage Loan Schedule. The substance of any such waiver, alteration or modification has been
approved by the title insurer, to the extent required by the terms of the Mortgage Note, Mortgage or any other related Mortgage Loan Document,
and its terms are reflected on the Mortgage Loan Schedule. No Mortgagor in respect of the Mortgage Loan has been released, in whole or
in part, except in connection with an assumption agreement approved by the title insurer, to the extent required by such policy, and which
assumption agreement is part of the Mortgage Loan Documents delivered to Purchaser or its designee and the terms of which are reflected
in the Mortgage Loan Schedule. The related Mortgage, Mortgage Note and each other related Mortgage Loan Document contain the entire agreement
of the parties and all of the obligations of the Seller under the related Mortgage Loan.

4. <u>No Defenses</u>. The Mortgage Loan is not subject to any right of rescission, set-off, counterclaim
or defense, including, without limitation, the defense of usury, and the operation of any of the terms of the Mortgage Note, the Mortgage
or any other related Mortgage Loan Document, or the exercise of any right thereunder, will not render either the Mortgage Note, the Mortgage
or any other related Mortgage Loan Document unenforceable, in whole or in part and no such right of rescission, set-off, counterclaim
or defense has been asserted in writing with respect thereto, and no Mortgagor in respect of the Mortgage Loan was a debtor in any state
or Federal bankruptcy or insolvency proceeding on the related origination date of the Mortgage Loan. The Seller has no knowledge and has
not received any notice that any Mortgagor in respect of the Mortgage Loan is presently a debtor in any state or federal bankruptcy or
insolvency proceeding.

5. <u>Hazard Insurance</u>. The Mortgaged Property is insured by a fire and extended perils insurance policy,
issued by a Qualified Insurer, and such other hazards as are customary in the area where the Mortgaged Property is located, and to the
extent required by each Seller as of the related origination date consistent with the Underwriting Guidelines, against other risks insured
against by Persons operating like properties in the locality of the Mortgaged Property, in an amount not less than the lesser of (i) one
hundred percent (100%) of the replacement cost of all improvements to the Mortgaged Property or (ii) the outstanding principal balance
of the Mortgage Loan. If any portion of the Mortgaged Property (other than a Mortgaged Property located in the State of California) is
in an area identified by any federal governmental authority as having special flood hazards, and flood insurance is available, a flood
insurance policy meeting the current guidelines of the Federal Emergency Management Agency is in effect with a generally acceptable insurance
carrier, in an amount representing coverage not less than the least of (1) the outstanding principal balance of the Mortgage Loan,
(2) the full insurable value of the Mortgaged Property, and (3) the maximum amount of insurance available under the National
Flood Insurance Act of 1968, as amended by the Flood Disaster Protection Act of 1974. All such insurance policies (collectively, the " <u>hazard insurance policy</u> ") contain a standard mortgagee clause naming the applicable Seller, its successors and assigns (including,
without limitation, subsequent owners of the Mortgage Loan), as mortgagee, and, to the extent such agreement is commercially available
from the related insurer, may not be reduced, terminated or canceled without 30 days' prior written notice to the mortgagee. No
such notice has been received by the Seller. All premiums on such insurance policy have been paid or the grace period for any payment
default has not lapsed. The related Mortgage obligates the Mortgagor to maintain all such insurance and, at such Mortgagor's failure
to do so, authorizes the mortgagee to maintain such insurance at the Mortgagor's cost and expense and to seek reimbursement therefor
from such Mortgagor. Where required by state law or regulation, the Mortgagor has been given an opportunity to choose the carrier of the
required hazard insurance, provided the policy is not a "master" or "blanket" hazard insurance policy covering
a condominium, or any hazard insurance policy covering the common facilities of a planned unit development. To the Seller's knowledge,
the hazard insurance policy is the valid and binding obligation of the insurer and is in full force and effect. The Seller has not engaged
in, and has no knowledge of the Mortgagor having engaged in, any act or omission that would impair the coverage of any such policy, the
benefits of the endorsement provided for herein, or the validity and binding effect of either including, without limitation, no unlawful
fee, commission, kickback or other unlawful compensation or value of any kind has been or will be received, retained or realized by any
attorney, firm or other Person, and no such unlawful items have been received, retained or realized by the Seller.

6. <u>Compliance with Applicable Laws</u>. (i) Any and all requirements of any federal, state or local
law and licensing agreements including, without limitation, usury or unfair and deceptive acts and practices laws applicable to the Mortgage
Loan have been complied with in all material respects and (ii) the consummation of the transactions contemplated hereby will not
involve the violation by the Seller of any such laws or regulations.

7. <u>No Satisfaction of Mortgage</u>. The Mortgage has not been satisfied, canceled, subordinated or rescinded,
in whole or in part, and the Mortgaged Property has not been released from the lien of the Mortgage except in accordance with the terms
of the Mortgage and related agreements or Seller's underwriting policies, in whole or in part, nor has any instrument been executed
that would effect any such release, cancellation, subordination or rescission. The Seller has not waived the performance by the Mortgagor
of any action, if the Mortgagor's failure to perform such action would cause the Mortgage Loan to be in default, nor has any Seller
waived any default resulting from any action or inaction by the Mortgagor.

8. <u>Location and Type of Mortgaged Property</u>. The Mortgaged Property consists of a single parcel (or
adjacent parcels consisting of the entire applicable real property) of real property with a Mortgage Loan. No portion of the related Mortgaged
Property shall be used (i) as the Mortgagor's primary residence or in any other manner that would cause the Mortgaged Property
to be considered an owner-occupied Mortgaged Property or (ii) for any other personal or household purposes by Mortgagor.

9. <u>Valid First Lien</u>. The Mortgage is a valid, subsisting, enforceable and perfected first priority
lien and first priority security interest on the real property included in the Mortgaged Property, including all buildings on the Mortgaged
Property and all installations and mechanical, electrical, plumbing, heating and air conditioning systems located in or annexed to such
buildings, and all additions, alterations and replacements made at any time with respect to the foregoing, subject only to Permitted Exceptions.
Any security agreement, chattel mortgage or equivalent document related to and delivered in connection with the Mortgage Loan establishes
and creates a valid, subsisting and enforceable first lien and first priority security interest on the property described therein (subject
to Permitted Exceptions) and the Seller has full right to pledge and assign the same to Purchaser. Except as otherwise disclosed to Purchaser
in writing, the Mortgaged Property was not, as of the related origination date of the Mortgage Loan and to the Seller's knowledge,
subject to a mortgage, deed of trust, deed to secure debt or other security instrument creating a lien subordinate to the lien of the
Mortgage, subject only to Permitted Exceptions.

10. <u>Validity of Mortgage Documents</u>. The Mortgage Note and the Mortgage and any other agreement executed
and delivered by a Mortgagor or guarantor, if applicable, in connection with a Mortgage Loan are genuine, and each is the legal, valid
and binding obligation of the maker thereof enforceable in accordance with its terms. All parties to the Mortgage Note, the Mortgage and
any other such related agreement had legal capacity to enter into the Mortgage Loan and to execute and deliver the Mortgage Note, the
Mortgage and any such agreement, and the Mortgage Note, the Mortgage and any other such related agreement have been duly and properly
executed by such related parties. No fraud, error, omission, misrepresentation, negligence or similar occurrence with respect to a Mortgage
Loan has taken place on the part of any Seller or, to the knowledge of each Seller, any other Person, including, without limitation, the
Mortgagor, any appraiser, any builder or developer, or any other party involved in the origination of the Mortgage Loan. To the Seller's
knowledge, except as disclosed to Purchaser in writing, all tax identifications and property descriptions are legally sufficient; and
tax segregation, where required, has been completed.

11. <u>Full Disbursement of Proceeds</u>. Except with respect to any Mortgagor escrows, holdbacks or future
funding obligations which are established pursuant to the terms of the related Mortgage Loan or with respect to any construction loan
and that conform in all material respects to the applicable requirements of the Underwriting Guidelines, there is no further requirement
for future advances under the Mortgage Loan and any and all requirements as to disbursements of any escrow or holdback funds therefor
have been complied with. All costs, fees and expenses incurred in making or closing the Mortgage Loan and the recording of the Mortgage
were paid. The Mortgagor is not entitled to any refund of any amounts paid or due under the Mortgage Note, Mortgage or any other related
Mortgage Loan Document.

12. <u>Ownership</u>. The Seller has full right to sell the Mortgage Loan to Purchaser free and clear of any
encumbrance, equity, participation interest, lien, pledge, charge, claim or security interest, and has full right and authority subject
to no interest or participation of, or agreement with, any other party, to sell each Mortgage Loan pursuant to this Agreement and following
the sale of each Mortgage Loan, Purchaser will own such Mortgage Loan free and clear of any encumbrance, equity, participation interest,
lien, pledge, charge, claim or security interest, except (i) any such security interest created pursuant to the terms of this Agreement
and (ii) any Permitted Exceptions.

13. <u>Doing Business</u>. The Seller is (i) in compliance in all material respects with any and all
applicable licensing requirements of the laws of the state wherein the Mortgaged Property is located, and (ii) to the extent required
under the laws of such state, either (A) organized under the laws of such state, (B) qualified to do business in such state,
(C) a federal savings and loan association, a savings bank or a national bank having a principal office in such state, (D) not
doing business in such state or (E) the failure to qualify to do business in such state could not reasonably be expected to adversely
affect any holder's interests in such Mortgage Loan.

14. <u>Title Insurance</u>. The Mortgage Loan is covered by either (i) an irrevocable title commitment,
or an attorney's opinion of title and abstract of title, each of which must be in form and substance acceptable to prudent mortgage
lending institutions making mortgage loans in the area wherein the Mortgaged Property is located or (ii) an American Land Title Association
lender's title insurance policy or other generally acceptable form of policy or insurance acceptable to Purchaser and each such
title insurance policy is issued by a title insurer acceptable to Purchaser and qualified to do business in the jurisdiction where the
Mortgaged Property is located, insuring each Seller, its successors and assigns, as to the first priority lien of the Mortgage, as applicable,
in the original principal amount of the Mortgage Loan, subject only to the Permitted Exceptions. Where required by state law or regulation,
the Mortgagor has been given the opportunity to choose the carrier of the required mortgage title insurance. Additionally, such lender's
title insurance policy (or commitment pending receipt of final policy) affirmatively insures ingress and egress and against encroachments
by or upon the Mortgaged Property or any interest therein. The title policy (or commitment pending receipt of final policy) does not contain
any special exceptions (other than the standard exclusions) for zoning and uses and has been marked to delete the standard survey exception
or to replace the standard survey exception with a specific survey reading. Each Seller, its successors and assigns, are the sole insureds
of such lender's title insurance policy, and such lender's title insurance policy is valid and remains in full force and effect
and will be in force and effect upon the consummation of the transactions contemplated by this Agreement. No claims have been made under
such lender's title insurance policy, and no prior holder or servicer of the related Mortgage, including each Seller, has done,
by act or omission, anything that would impair the coverage of such lender's title insurance policy, including without limitation,
no unlawful fee, commission, kickback or other unlawful compensation or value of any kind has been or will be received, retained or realized
by any attorney, firm or other Person, and no such unlawful items have been received, retained or realized by each Seller.

15. <u>No Defaults</u>. (i) There is no default, breach, violation or event of acceleration existing
under the Mortgage, the Mortgage Note or any other related Mortgage Loan Document (in each case, other than any default, breach, violation
or event of acceleration arising because of (A) a payment default (other than a maturity default that has not been cured within thirty
(30) days), or (B) a default, breach, violation or event of acceleration under the Mortgage, the Mortgage Note or any other related
Mortgage Loan Document with respect to a mortgage loan that is cross-defaulted with such Mortgage Loan (other than with respect to a default,
breach, violation or event of acceleration that has resulted in the actual acceleration of the maturity of the Mortgage, the Mortgage
Note or any other related Mortgage Loan Document with respect to such cross-defaulted mortgage loan)), and (ii) no event has occurred
that, with the passage of time or with notice and the expiration of any grace or cure period, would constitute a default, breach, violation
or event of acceleration (in each case, other than any default, breach, violation or event of acceleration arising because of (A) a
payment default (other than a maturity default that has not been cured within thirty (30) days), or (B) a default, breach, violation
or event of acceleration under the Mortgage, the Mortgage Note or any other related Mortgage Loan Document with respect to a mortgage
loan that is cross-defaulted with such Mortgage Loan (other than with respect to a default, breach, violation or event of acceleration
that has resulted in the actual acceleration of the maturity of the Mortgage, the Mortgage Note or any other related Mortgage Loan Document
with respect to such cross-defaulted mortgage loan)). Except as otherwise disclosed to Purchaser in writing, Seller has not waived any
default, breach, violation or event of acceleration under the Mortgage Note or any other related Mortgage Loan Document.

16. <u>No Mechanics' Liens</u>. Except for Permitted Exceptions, there are no mechanics' or similar
liens or claims that have been filed for work, labor or material affecting the Mortgaged Property that are or may be liens prior to, or
equal or coordinate with, the lien of the Mortgage.

17. <u>Location of Improvements; No Encroachments</u>. All improvements considered in determining the BPO
value of the Mortgaged Property lie wholly within the boundaries and building restriction lines of the Mortgaged Property, and no improvements
on adjoining properties encroach upon the Mortgaged Property. No improvement located on or being part of the Mortgaged Property is in
violation of any applicable zoning and building law, ordinance or regulation.

18. <u>Payment Terms</u>. Principal, to the extent applicable under the related Mortgage Loan, and interest
payments on the Mortgage Loan commenced no more than sixty (60) days after funds were disbursed in connection with the Mortgage Loan.
Interest on the Mortgage Note is payable on the first day of each month, with interest calculated and payable in advance or arrears, as
applicable. Principal on the Mortgage Note is payable on the earlier of the maturity date of such Mortgage Note and the date on which
the indebtedness thereunder becomes immediately due and payable thereunder. The Due Date of the first payment under the Mortgage Note
is no more than sixty (60) days from the date of the Mortgage Note. The related Mortgagor may request advances up to the maximum amount
permitted to be advanced by Seller to a Mortgagor under the terms of the related Mortgage Loan Documents. Each Mortgage Loan will mature
within thirty-six (36) months from the related origination date. The Mortgage Note does not permit negative amortization.

19. <u>Customary Provisions</u>. The Mortgage Note and the related Mortgage Loan each has a stated maturity.
The Mortgage contains customary and enforceable provisions such as to render the rights and remedies of the holder thereof adequate for
the realization against the Mortgaged Property of the benefits of the security provided thereby, including, (i) in the case of a
Mortgage designated as a deed of trust, by trustee's sale, and (ii) otherwise by judicial foreclosure, in each case subject
to applicable law. Upon default by a Mortgagor on a Mortgage Loan and foreclosure on, or trustee's sale of, the Mortgaged Property
pursuant to the proper procedures and subject to applicable law, the holder of the Mortgage Loan will be able to deliver good and marketable
title to the Mortgaged Property. There is no homestead or other exemption available to a Mortgagor that would interfere with the right
to sell the Mortgaged Property at a trustee's sale or the right to foreclose the Mortgage.

20. <u>Occupancy of the Mortgaged Property</u>. Seller has not received notice of any violation or failure
to conform with any such law, ordinance, regulation, standard, license or certificate. The Mortgagor (as opposed to renters and/or lessees)
does not intend to occupy the Mortgaged Property for more than fourteen (14) calendar days during any one (1) calendar year. In connection
with the origination of the Mortgage Loan, the related Mortgagor represented to each Seller, as applicable, that such Mortgaged Property
is non-owner occupied.

21. <u>No Additional Collateral</u>. The Mortgage Note is not and has not been secured by any collateral except
the lien of the corresponding Mortgage and the security interest of any applicable security agreement and chattel mortgage referred to
in clause (i) above or other collateral specified in the related Mortgage Loan Documents.

22. <u>Deeds of Trust</u>. In the event the Mortgage constitutes a deed of trust, a trustee, authorized and
duly qualified under applicable law to serve as such, has been properly designated and currently so serves and is named in the Mortgage,
and no fees or expenses are or will become payable by the Purchaser or its designee to the trustee under the deed of trust, except in
connection with a trustee's sale after default by the Mortgagor.

23. <u>Transfer of Mortgage Loans</u>. The assignment of mortgage is in recordable form and is acceptable
for recording under the laws of the jurisdiction in which the Mortgaged Property is located.

24. <u>Due-On-Sale</u>. The Mortgage contains a provision for the acceleration of the payment of the unpaid
principal balance of the Mortgage Loan in the event the Mortgaged Property is sold or transferred without the prior written consent of
the mortgagee thereunder.

25. <u>Consolidation of Future Advances</u>. Any future advances made to the Mortgagor prior to the Closing
Date have been consolidated with the outstanding principal amount secured by the Mortgage and the secured principal amount, as consolidated,
bears a single interest rate and single repayment term.

26. <u>Mortgaged Property Undamaged</u>. To the Seller's knowledge, other than structural damage being
repaired in connection with the rehabilitation of the Mortgaged Property, the related Mortgaged Property is free from material structural
damage. To the Seller's knowledge, there is no proceeding pending for the total or partial condemnation of such Mortgaged Property.

27. <u>Collection Practices; Escrow Deposits</u>. The origination and collection practices used by the related
originator, each servicer of the Mortgage Loan and Seller with respect to the Mortgage Loan have been in all respects in compliance with
Accepted Servicing Practices, applicable laws and regulations, and have been in all respects legal and proper. With respect to escrow
deposits and escrow payments, if any, all such payments are in the possession of, or under the control of, Sellers or Servicer on Sellers'
behalf. All escrow payments, if any, have been collected in full compliance with state and federal law. No escrow deposits or escrow payments
or other charges or payments due Seller have been capitalized under the Mortgage, the Mortgage Note or any related Mortgage Loan Document.
Any interest required to be paid pursuant to state, federal and local law has been properly paid and credited.

28. <u>Servicemembers Civil Relief Act</u>. The Mortgagor has not notified the Seller, and the Seller has
no knowledge, of any relief requested or allowed to the Mortgagor under the Servicemembers Civil Relief Act of 2003.

29. <u>Evaluation/Appraisal</u>. The Mortgage Loan Documents respect to such Mortgage Loan contain an appraisal
of the related Mortgaged Property made and signed by an Evaluation/Appraisal Vendor (a) who, at the time of such Evaluation/Appraisal,
met the requirements of the Seller's Evaluation/Appraisal policy (unless manifestly inappropriate to the Mortgage Loan) and (b) who
satisfied (and which Evaluation/Appraisal was conducted in accordance with) all applicable federal and state laws and regulations in effect
at the time of such Evaluation/Appraisal and procedures. To Seller's knowledge, such Evaluation/Appraisal Vendor was licensed in
the state where the Mortgaged Property is located, had no interest, direct or indirect, in such Mortgaged Property or in any loan made
on the security thereof, and such Evaluation/Appraisal Vendor's compensation was not affected by the approval or disapproval of
such Mortgage Loan. The Mortgage Loan Documents with respect to such Mortgage Loan contain either an appraisal or an evaluation (if the
original principal balance of the related Mortgage Loan is less than the threshold pursuant to which the Originator would require an appraisal)
of the related Mortgaged Property, in each case in form and substance satisfactory to Purchaser and that satisfies the requirements of
Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, as amended, and the regulations promulgated thereunder,
all as in effect on the related origination date of the Mortgage Loan.

30. <u>Disclosure Materials</u>. The Mortgagor has received all disclosure materials required by applicable
law in connection with the origination of such Mortgage Loan.

31. <u>No Equity Participation</u>. No document relating to the Mortgage Loan provides for any contingent
or additional interest in the form of participation in the cash flow of the Mortgaged Property or a sharing in the appreciation of the
value of the Mortgaged Property. The indebtedness evidenced by the Mortgage Note is not convertible to an ownership interest in the Mortgaged
Property or the Mortgagor and Sellers have not financed and do not own, directly or indirectly, any equity of any form in the Mortgaged
Property or the Mortgagor.

32. <u>Proceeds of Mortgage Loan</u>. The proceeds of the Mortgage Loan have not been and shall not be used
to satisfy, in whole or in part, any debt owed or owing by the Mortgagor to any Seller or any affiliate or correspondent of such Seller,
except in connection with a refinanced Mortgage Loan.

33. <u>No Exception</u>. The Seller has not noted any material exceptions on a Mortgage Loan Schedule with
respect to the Mortgage Loan that would materially adversely affect the Mortgage Loan or Purchaser's interest in the Mortgage Loan.

34. <u>Mortgage Submitted for Recordation</u>. The Mortgage either has been or will promptly be submitted
for recordation in the appropriate governmental recording office of the jurisdiction where the Mortgaged Property is located.

35. <u>Documents Genuine</u>. Such Mortgage Loan and all accompanying documents in the Mortgage Loan Documents
are complete and authentic and all signatures thereon are genuine.

36. <u>Bona Fide Loan</u>. Such Mortgage Loan arose from a bona fide loan, complying with all applicable State
and Federal laws and regulations, to persons having legal capacity to contract and is not subject to any defense, set-off or counterclaim.

37. <u>Description</u>. The documents relating to each Mortgage Loan conform in all material respects to the
description thereof as set forth on the related Mortgage Loan Schedule delivered to the Purchaser or its designee.

38. <u>Located in U.S.</u> No collateral (including, without limitation, the related Mortgaged Property and
the dwellings thereon and otherwise) relating to a Mortgage Loan is located in any jurisdiction other than in one of the forty-eight (48)
contiguous states of the United States of America or the District of Columbia.

39. <u>Underwriting Guidelines</u>. Each Mortgage Loan was originated in accordance with the Underwriting
Guidelines in all material respects.

40. <u>Predatory Lending Regulations; High Cost Loans</u>. None of the Mortgage Loans are classified a "high
cost" loan under the Home Ownership and Equity Protection Act of 1994, as amended, or a "high cost," "threshold,"
 "covered," "abusive," "high risk" or "predatory" loan under any other applicable state,
federal or local law (or a similarly classified loan using different terminology under a law, regulation or ordinance imposing heightened
regulatory scrutiny or additional legal liability for residential mortgage loans having high interest rates, points and/or fees).

41. <u>Single Original Mortgage Note</u>. There is only one originally executed Mortgage Note not stamped
as a duplicate with respect to such Mortgage Loan.

42. <u>Environmental Matters</u>. To Seller's knowledge, the Mortgaged Property is free from any and
all toxic or hazardous substances in violation of any local, state or federal environmental law, and there exists no violation of any
local, state or federal environmental law, rule or regulation. To Seller's knowledge, there is no pending action or proceeding
directly involving any Mortgaged Property in which compliance with any environmental law, rule or regulation is alleged to have been
violated.

43. <u>Insurance</u>. Seller has caused or will cause to be performed any and all acts required to preserve
the rights and remedies of Purchaser in any insurance policies applicable to the Mortgage Loans including, without limitation, any necessary
notifications of insurers, assignments of policies or interests therein, and establishments of coinsured, joint loss payee and mortgagee
rights in favor of Purchaser.

44. <u>Endorsements</u>. Each Mortgage Note has been (or will be as of the Closing Date) endorsed by a duly
authorized officer of the Seller for its own account and not as a fiduciary, trustee, trustor or beneficiary under a trust agreement.

45. <u>Accuracy of Information</u>. All information in respect of such Mortgage Loan set forth on the Mortgage
Loan Schedule is accurate in all material respects as of the Closing Date.

46. <u>Patriot Act</u>. The applicable originator has complied with all applicable anti-money laundering laws
and regulations, including, without limitation, the Patriot Act. No Mortgage Loan is subject to nullification pursuant to Executive Order
13224 (the " <u>Executive Order</u> ") or the regulations promulgated by OFAC (the " <u>OFAC Regulations</u> ")
or in violation of the Executive Order or the OFAC Regulations, and no Mortgagor is subject to the provisions of such Executive Order
or the OFAC Regulations or listed as a "blocked person" for purposes of the OFAC Regulations.

47. <u>Cross-Collateralization</u>. Either (a) such Mortgage Loan is not
cross-collateralized with any other mortgage loan, other than a mortgage loan that is a Mortgage Loan that is the subject of this
Agreement , or (b) such Mortgage Loan is cross-collateralized with another mortgage loan that is not
a Mortgage Loan that is the subject of this Agreement , and (1) the mortgage loan that is cross-collateralized
with such Mortgage Loan is not in default, breach, violation or event of acceleration under the Mortgage, the Mortgage Note or any other
related Mortgage Loan Document which default, breach, violation or event of acceleration has resulted in the actual acceleration of the
maturity of the Mortgage, the Mortgage Note or any other related Mortgage Loan Document with respect to such cross-collateralized mortgage
loan or (2) an intercreditor arrangement in respect of such Mortgage Loan acceptable to the Purchaser has been entered into by each
mortgagee or other beneficial owner of each mortgage loan that is cross-collateralized with such Mortgage Loan.

APPENDIX B

FORM OF ACCESSION AGREEMENT

ACCESSION AGREEMENT (this "<u>Accession Agreement</u>"), dated as of [____________], 202_ to that certain Mortgage Loan Purchase Agreement, dated as of November 24, 2025 (such agreement, including any schedules, exhibits or attachments thereto and any amendments thereto and any successor agreement that may be entered into by the parties thereto in substitution therefor, hereinafter the "<u>Agreement</u>"), by and between Rithm Perpetual Life Residential Trust (the "<u>Purchaser</u>") and Rithm Loan Aggregation Trust (the "<u>Seller</u>"). Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Agreement.

SECTION 1. By execution of this Accession Agreement, [____________] (the "<u>Additional Purchaser</u>") hereby becomes a party to the Agreement, shall be deemed to be a "Purchaser" thereunder with respect to the Mortgage Loans owned by the Additional Purchasers pursuant to Section 26 of the Agreement and agrees to be bound by all of the terms and provisions of the Agreement.

SECTION 2. Any references contained in the Agreement to "Purchaser" shall be deemed to refer to the Additional Purchaser and any references contained therein to "Mortgage Loan" and "Mortgaged Property" shall be deemed to refer only to the Mortgage Loans owned by the Additional Purchaser and any related Mortgaged Properties.

SECTION 3. This Accession Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of New York, without regard to the conflict of laws rules thereof other than Section 5-1401 of the New York General Obligations Law.

IN WITNESS WHEREOF, the undersigned has duly executed this Accession Agreement as of the date first above written.

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| |
|:---|
| [ADDITIONAL PURCHASER] |
| By: |
| Name: |
| Title: |
| ACKNOWLEDGED AND AGREED: |

---

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| | |
|:---|:---|
| **RITHM LOAN AGGREGATION TRUST** | **RITHM LOAN AGGREGATION TRUST** |
| By: | NRZ MBN Issuer Holdings LLC, its Administrator |
| By: |  |
| Name: |  |
| Title: | Title: |

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APPENDIX C

MORTGAGE LOAN SCHEDULE FIELDS

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| | |
|:---|:---|
| **<u>Field Names</u>** | **<u>Field Names</u>** |
| &nbsp;&nbsp;&nbsp;1. | Mortgage Loan Number |
| &nbsp;&nbsp;&nbsp;2. | Stated Principal Balance as of the Cut-off Date |
| &nbsp;&nbsp;&nbsp;3. | principal balance at origination |
| &nbsp;&nbsp;&nbsp;4. | Mortgage Interest Rate as of the Cut-off Date |
| &nbsp;&nbsp;&nbsp;5. | Monthly Payment as of the Cut-off Date |
| &nbsp;&nbsp;&nbsp;6. | original term to maturity |
| &nbsp;&nbsp;&nbsp;7. | remaining term to maturity as of the Cut-off Date |
| &nbsp;&nbsp;&nbsp;8. | whether such Mortgage Loan is a balloon loan as of the Cut-off Date |
| &nbsp;&nbsp;&nbsp;9. | interest-only term |
| &nbsp;&nbsp;&nbsp;10. | origination date |
| &nbsp;&nbsp;&nbsp;11. | first payment date |
| &nbsp;&nbsp;&nbsp;12. | next Due Date |
| &nbsp;&nbsp;&nbsp;13. | maturity date |
| &nbsp;&nbsp;&nbsp;14. | original loan-to-value ratio |
| &nbsp;&nbsp;&nbsp;15. | original appraised value |
| &nbsp;&nbsp;&nbsp;16. | sales price, if any |
| &nbsp;&nbsp;&nbsp;17. | lien position of the Mortgage Loan |
| &nbsp;&nbsp;&nbsp;18. | purpose of the Mortgage Loan |
| &nbsp;&nbsp;&nbsp;19. | street address, unit, city, state and zip code of the related Mortgaged Property |
| &nbsp;&nbsp;&nbsp;20. | Mortgaged Property type |
| &nbsp;&nbsp;&nbsp;21. | credit score at origination and the updated credit score |
| &nbsp;&nbsp;&nbsp;22. | date of the credit score |
| &nbsp;&nbsp;&nbsp;23. | occupancy status of the Mortgaged Property (e.g., primary, investor, secondary) |
| &nbsp;&nbsp;&nbsp;24. | delinquency status |
| &nbsp;&nbsp;&nbsp;25. | an indication of whether the related borrower is subject to bankruptcy proceedings |
| &nbsp;&nbsp;&nbsp;26. | most recent 12-month payment history of the Mortgage Loan (using MBA methodologies) |
| &nbsp;&nbsp;&nbsp;27. | home data index value and the date the home data index value was obtained |
| &nbsp;&nbsp;&nbsp;28. | broker's price opinion value and the date the broker's price opinion was obtained |
| &nbsp;&nbsp;&nbsp;29. | Updated Loan-to-Value Ratio |
| &nbsp;&nbsp;&nbsp;30. | an indication of whether such Mortgage Loan was previously modified and, if applicable, the date of such modification |
| &nbsp;&nbsp;&nbsp;31. | Servicer of the Mortgage Loan |
| &nbsp;&nbsp;&nbsp;32. | Custodian of the Mortgage Loan |
| &nbsp;&nbsp;&nbsp;33. | amount of any deferred principal balance |
| &nbsp;&nbsp;&nbsp;34. | an indication of whether such Mortgage Loan includes stepped Mortgage Interest Rates and the dates on which such Mortgage Interest Rates step up |
| &nbsp;&nbsp;&nbsp;35. | the number of times such Mortgage Loan was 30-59, 60-89, 90-119 and 120 days delinquent during the 12 months preceding the Cut-off Date |

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**<u>EXHIBIT 1</u>**

FORM OF POWER OF ATTORNEY

[DATED]

Document drafted by and

RECORDING REQUESTED BY:

**[Entity]** 

**[Address]**

**[City, State, Zip Code]**

SPACE ABOVE THIS LINE FOR RECORDER'S USE

**LIMITED POWER OF ATTORNEY**

**Rithm Loan Aggregation Trust ("Trust")** hereby constitutes and appoints **Genesis Capital LLC,** having an office at 15303 Ventura Blvd, Suite 700, Sherman Oaks, CA 91403 ("Servicer"), and in its name, aforesaid Attorney-In-Fact, by and through any officer appointed by the Board of Directors of Servicer, to execute and acknowledge in writing or by facsimile stamp all documents customarily and reasonably necessary and appropriate for the tasks described in the attached Appendix A; provided however, that (a) Servicer represents and warrants that all actions taken pursuant to this Limited Power of Attorney are consistent with its duties and obligations as a servicer for the Trust, and (b) all actions taken by Servicer pursuant to this Limited Power of Attorney must be in accordance with Federal, State and local laws and procedures, as applicable. This Limited Power of Attorney is being issued in connection with Servicer's responsibilities to service certain mortgage loans (the "Loans") held by the Trust. These Loans are comprised of Mortgages, Deeds of Trust, Deeds to Secure Debt and other forms of security instruments (collectively the "Security Instruments") encumbering any and all real and personal property delineated therein (the "Property") and the Notes secured thereby.

**Witness** my hand and seal this ____ day of _________, 20__.

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| | |
|:---|:---|
| **NO CORPORATE SEAL** | **RITHM LOAN AGGREGATION TRUST** |
|  | By: [__], its Administrator |
|  | By: |
| Witness: |  |
| Witness: |  |
| **CORPORATE ACKNOWLEDGMENT** |  |
| **STATE OF ________________** |  |
| **COUNTY OF** **________________** |  |

---

On this ____ day of __________, 20__, before me personally appeared _______________________________, [_____] of [__], as Administrator, proved to me through satisfactory evidence of identification, which was a ________________ [insert state name] driver's license, to be the party/parties executing the foregoing instrument, and acknowledged to me that he/she/they executed the instrument voluntarily for its stated purpose as [__] of [__], as Administrator, as the voluntary act of said entity and that such individual(s) made such appearance before the undersigned in the County of [__], State of [__].

WITNESS my hand and official seal.

Signature: _____________________

Name: [ ]

Notary Public

My commission expires: [ ]

**APPENDIX A**

1. Demand, sue for, recover, collect and receive each and every sum of money, debt, account and interest
(which now is, or hereafter shall become due and payable) belonging to or claimed by the Trust, and to use or take any lawful means for
recovery or preservation of the Trust's interest by legal process or otherwise, including but not limited to the substitution of
trustee serving under a Deed of Trust, the preparation and issuance of statements of breach, proofs of claim, notices of default, and/or
notices of sale, accepting deeds in lieu of foreclosure, evicting (to the extent allowed by federal, state or local laws), foreclosing
on the properties under the Security Instruments by judicial or non-judicial foreclosure, filing or responding to actions or claims for
temporary restraining orders, injunctions, appointments of receiver, suits for waste, third-party lien related matters, (including but
not limited to mechanics liens, HOA/COA/Co-op liens), property forfeitures, seizures, tax sales, eminent domain and condemnation actions,
probate proceedings, partition actions, easements, property line adjustments, lender title claims or quiet title actions, code violation
notices or actions, fraud claims and any and all other tort, contractual or administrative actions and verifications in support thereof
Servicer deems necessary or advisable in any bankruptcy action, state or federal suit or any other action.

2. Execute and/or file such documents and take such other action as is proper and necessary to defend the
Trust in litigation and to resolve any litigation where the Servicer has an obligation to defend the Trust, including but not limited
to dismissal, termination, cancellation, rescission and settlement.

3. Transact business of any kind regarding the Loans, as the Trust's act and deed, to contract for,
purchase, receive and take possession and evidence of title in and to the Property and/or to secure payment of a promissory note or performance
of any obligation or agreement relating thereto.

4. Execute, complete, indorse or file bonds, notes, mortgages, deeds of trust and other contracts, agreements
and instruments regarding the borrowers and/or the Property, including but not limited to the execution of estoppel certificates, financing
statements, continuation statements, releases, satisfactions, reconveyances, assignments, loan modification agreements, payment plans,
waivers, consents, amendments, forbearance agreements, loan assumption agreements, subordination agreements, property adjustment agreements,
management agreements, listing agreements, the filing of lender and/or title policy claims against title insurers, purchase and sale agreements,
short sale transactions and other instruments pertaining to mortgages or deeds of trust, and execution of deeds and associated instruments,
if any, conveying the Property, in the interest of the Trust.

5. Indorse on behalf of the undersigned all checks, drafts and/or other negotiable instruments made payable
to the undersigned.

6. Execute any document or perform any act in connection with the administration of any PMI policy or LPMI
policy, hazard or other insurance claim relative to the Loans or related Property.

7. Execute any document or perform any act described in items (3), (4), and (5) in connection with the
termination of the Trust as necessary to transfer ownership of the affected Loans to the entity (or its designee or assignee) possessing
the right to obtain ownership of the Loans.

8. Subordinate the lien of a mortgage, deed of trust, or deed or other security instrument to secure debt
(i) for the purpose of refinancing Loans, where applicable, or (ii) to an easement in favor of a public utility company or a
government agency or unit with powers of eminent domain, including but not limited to the execution of partial satisfactions and releases
and partial reconveyances reasonably required for such purpose, and the execution or requests to the trustees to accomplish the same.

9. Convey the Property to the mortgage insurer, or close the title to the Property to be acquired as real
estate owned, or convey title to real estate owned property ("REO Property").

10. Execute and deliver any documentation with respect to the sale, maintenance, preservation, renovation,
repair, demolition or other disposition, of REO Property acquired through a foreclosure or deed-in-lieu of foreclosure, including, without
limitation: permits, remediation plans or agreements, certifications, compliance certificates, health and safety certifications, listing
agreements; purchase and sale agreements; grant / limited or special warranty / quit claim deeds or any other deed, but not general warranty
deeds, causing the transfer of title of the property to a party contracted to purchase same; escrow instructions; and any and all documents
necessary to effect the transfer of REO Property.

11. Servicer has the power to execute additional limited powers of attorney and delegate the authority given
to it by the Trust under the applicable servicing agreements for the Trust.

12. To execute, record, file and/or deliver any and all documents of any kind for the purpose of fulfilling
any servicing duties, including but not limited to those listed in subparagraphs (1) through (11).

Trust also grants unto Servicer the full power and authority to correct minor ambiguities and errors in documents necessary to effect or undertake any of the items or powers set forth in items (1) to (12), above.

**<u>EXHIBIT 2</u>**

**FORM OF PURCHASE ADVICE**

This Purchase Advice (this "Purchase Advice"), dated as of [__], 202[_] (the "<u>Closing Date</u>"), is between Rithm Loan Aggregation Trust, a Delaware statutory trust ("<u>Seller</u>") and [__] ("<u>Purchaser</u>") under that certain Flow Mortgage Loan Purchase and Sale Agreement dated as of November 24, 2025 (as supplemented by each Accession Agreement thereto and as further amended, supplemented or otherwise modified from time to time, the "<u>Purchase Agreement</u>"). The Seller does hereby sell, transfer, assign, set over and convey to the Purchaser, on a servicing-released basis, and subject to the terms of this Purchase Advice and the Purchase Agreement, all right, title and interest of the Seller in and to the Mortgage Loans listed on the Mortgage Loan Schedule attached hereto as **Exhibit A**, together with the related Mortgage Files and all rights and obligations arising under the documents contained therein. Capitalized terms used herein and not otherwise defined shall have the meanings set forth in the Purchase Agreement.

1. Defined Terms. As used in this Purchase Advice, the following defined terms shall have meanings set forth
below.

&nbsp;&nbsp;&nbsp;&nbsp;(a) Closing Date: [__], 202[__].

&nbsp;&nbsp;&nbsp;&nbsp;(b) Cut-off Date: [__], 202[__].

&nbsp;&nbsp;&nbsp;&nbsp;(c) Purchase Price: [With respect to each Mortgage Loan, as set forth in Exhibit A hereto.]

&nbsp;&nbsp;&nbsp;&nbsp;(d) Purchase Price Percentage: [As set forth in Exhibit A hereto.]

&nbsp;&nbsp;&nbsp;&nbsp;(e) Stated Principal Balance [With respect to each Mortgage Loan, as set forth
in Exhibit A hereto.]

&nbsp;&nbsp;&nbsp;&nbsp;(g) Additional Closing Conditions/Obligations: [__]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Seller Account: [__]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Mortgage Loan Schedule: [The Microsoft Excel file labeled [__] delivered by representatives of the Seller to representatives of the Purchaser on the Closing Date.]

This Purchase Advice may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which counterparts, taken together, shall constitute but one and the same instrument. Any signature page to this Purchase Advice containing a manual signature may be delivered by facsimile transmission or other electronic communication device capable of transmitting or creating a printable written record, and when so delivered shall have the effect of delivery of an original manually signed signature page.

IN WITNESS WHEREOF, the parties have executed this Purchase Advice by their duly authorized officers as of the Closing Date.

---

| |
|:---|
| Rithm Loan Aggregation Trust |
| By: NRZ MBN Issuer Holdings LLC, as Administrator |
| By: |
| Name: |
| Title: |
| [PURCHASER] |
| By: |
| Name: |
| Title: |

---

*Signature Page to*

*Purchase Advice*

**EXHIBIT A**

**Mortgage Loan Schedule**

## Exhibit 10.7

**Exhibit 10.7**

EXECTION VERSION

**MASTER REPURCHASE AGREEMENT AND SECURITIES CONTRACT**

among

**CHURCHILL MRA FUNDING I LLC**,<br> as Buyer,

**R-HOME PASS THROUGH PARENT RTL-C LLC**,<br> as Seller,

**Rithm Perpetual Life Residential Trust**,<br> as Guarantor,

and

**R-HOME REO RTL-C LLC**,

And each Additional REO Subsidiary joined hereto from time to time, as REO Subsidiary

Dated as of November 24, 2025

**Table of Contents**

**Page**

1. Applicability 1

2. Definitions 2

3. Program; Initiation of Transactions 28

4. Repurchase 30

5. Price Differential 32

6. Margin Maintenance 33

7. Income Payments 35

8. Payment and Transfer 37

9. Conditions Precedent 37

10. Program; Costs; Taxes 41

11. Servicing 45

12. Representations and Warranties 46

13. Covenants 54

14. Events of Default 61

15. Remedies and Procedural Requirements Upon Default 63

16. Reports 65

17. Financings and Repurchase Transactions 67

18. Single Agreement 67

19. Notices and Other Communications 68

20. Entire Agreement; Severability 68

21. Non-Assignability 68

22. Set-off 70

23. Binding Effect; Governing Law; Jurisdiction 71

24. No Express or Implied Waivers; Amendments and Modifications, Etc. 72

25. Intent 72

26. Power of Attorney 73

27. Buyer May Act Through Affiliates 73

28. Indemnification; Obligations 74

29. Counterparts 74

30. Confidentiality 75

31. Periodic Due Diligence Review 76

32. Authorizations 76

33. Documents Mutually Drafted 76

34. Security Interest 77

35. Further Assurances 78

36. Reserved 78

37. Conflicts 78

38. Effect of Benchmark Transition Event 78

39. REO Conversion 79

-i-

---

| | |
|:---|:---|
| <u>SCHEDULES</u> |  |
| Schedule 1-A | Representations and Warranties with Respect to Underlying Assets |
| Schedule 1-B | Representations and Warranties with Respect to Underlying Assets that Are Permitted REO Assets |
| Schedule 2 | Authorized Representatives |
| <u>EXHIBITS</u> |  |
| Exhibit A | Officer's Compliance Certificate |
| Exhibit B | Form of Power of Attorney |
| Exhibit C | Approved Originators |
| Exhibit D | Approved BPO Providers |

---

THIS MASTER REPURCHASE AGREEMENT AND SECURITIES CONTRACT, dated as of November 24, 2025, is made by and among R-HOME PASS THROUGH PARENT RTL-C LLC, a Delaware limited liability company ("<u>Seller</u>"), R-HOME REO RTL-C LLC, a Delaware limited liability company ("<u>Initial REO Subsidiary</u>"), each other Person that may be subsequently added as a party to this agreement under an REO Joinder Agreement (each, an "<u>Additional REO Subsidiary</u>" and together with Initial REO Subsidiary, each, "<u>REO Subsidiary</u>," and collectively, "<u>REO Subsidiaries</u>"), CHURCHILL MRA FUNDING I LLC, a Delaware limited liability company (collectively, together with its successors and assignees hereunder, "<u>Buyer</u>"), and RITHM PERPETUAL LIFE RESIDENTIAL TRUST, a Maryland statutory trust ("<u>Guarantor</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Applicability</u>

From time to time the parties hereto may enter into transactions in which each Seller agrees to sell to Buyer all right, title and interest (including, without limitation, the Servicing Rights (as hereinafter defined)) in and to the Purchased Assets (as hereinafter defined), which, except in the case of Purchased Assets consisting of Permitted REO Assets, shall be backed by Underlying Mortgage Loans owned by the Trustee on behalf of the Trust and all right, title and interest (including the Servicing Rights (as hereinafter defined), with respect to servicing-released Underlying Assets) in and to the Underlying Assets in exchange for the transfer of funds by Buyer to such Seller, with a simultaneous agreement by Buyer to transfer to Seller such Purchased Assets at a date certain, in exchange for the transfer of funds by Seller to Buyer. Each such transaction shall be referred to herein as a "<u>Transaction</u>" and, unless otherwise agreed in writing, shall be governed by this Agreement. The Trustee on behalf of the Trust owns the legal title to the Underlying Mortgage Loans. The Trust Interests are issued pursuant to the Trust Agreement to the Seller. The Trust Interests represent beneficial interests in the assets in the trust estate of the Trust. All of the Trust Interests shall be evidenced by the Trust Certificate. On the initial Purchase Date, Buyer will purchase the Trust Certificate from Seller in connection with the Transaction on such date. After the initial Purchase Date, as part of separate Transactions, Seller may request and Buyer may fund, subject to the terms and conditions of this Agreement, an increase in the Purchase Price in connection with a Future Advance Purchase (as defined herein) or based upon the contribution of additional Underlying Mortgage Loans to the Trustee on behalf of the Trust. Such additional Underlying Mortgage Loans will be part of the trust estate of the Trust. Each such Future Advance Purchase or transaction involving the transfer or allocation of additional Underlying Mortgage Loans to the Trustee on behalf of the Trust shall be deemed a <u>Transaction</u> and, unless otherwise agreed in writing, shall be governed by this Agreement. All sales of the Purchased Assets (including, without limitation, all deemed Transactions with respect to Underlying Assets) from Seller to Buyer will be on a servicing-released basis.

In addition, (i) Guarantor shall provide the Guaranty (as hereinafter defined) guarantying certain obligations of Seller and (ii) the Trustee on behalf of the Trust has pledged its interests in the Underlying Mortgage Loans and related collateral to the Buyer pursuant to the terms set forth in the Pledge Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Definitions</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Whenever used in this Agreement, the following words and phrases, unless the context otherwise requires, shall have the following meanings:

"<u>Accepted Servicing Practices</u>" means, with respect to any Underlying Asset, those mortgage servicing practices of prudent mortgage lending institutions which service mortgage loans or REO properties of the same or similar type as such Underlying Asset in the jurisdiction where the related Mortgaged Property (or REO Property, as applicable) is located, and in all material respects in compliance with any applicable Requirements of Law and in a manner at least equal in quality to the servicing that such Person provides to mortgage loans that it (a) owns in its portfolio, (b) otherwise services for its Affiliates, or (c) otherwise services for third parties, whichever standard of <u>clauses (a)</u>, <u>(b)</u> and <u>(c)</u> is greatest, as applicable, with a view to maximizing the net present value of such Underlying Asset and any recovery thereon, exercising its reasonable business judgment at the time taking into account the existing facts and circumstances known to such Person at such time.

"<u>Accession Agreement</u>" means the Accession Agreement (as defined in the Mortgage Loan Purchase Agreement) entered into by the Trustee on behalf of the Trust.

"<u>Act of Insolvency</u>" means, with respect to any Person, (a) the filing of a petition, commencing, or authorizing the commencement of any case or proceeding, or the voluntary joining of any case or proceeding under any bankruptcy, insolvency, reorganization, liquidation, dissolution or similar law relating to the protection of creditors, or suffering any such petition or proceeding to be commenced by another which is consented to, not timely contested or results in entry of an order for relief; (b) the seeking of the appointment of a receiver, trustee, custodian or similar official for such Person or any substantial part of the property of such Person; (c) the appointment of a receiver, conservator, or manager for such Person by any Governmental Authority having the jurisdiction to do so; (d) the making or offering by such Person of a composition with its creditors or a general assignment for the benefit of creditors; (e) the admission by such Person in a legal proceeding of its inability to pay its debts or discharge its obligations as they become due or mature; or (f) that any Governmental Authority or agency or any Person, agency or entity acting or purporting to act under Governmental Authority shall have taken any action to condemn, seize or appropriate, or to assume custody or control of, all or any substantial part of the property of such Person or to curtail its authority in the conduct of the business of such Person.

"<u>Additional Covenants and Conditions</u>" means any additional covenant set forth in Section 9 of the Guaranty.

"<u>Additional REO Subsidiary</u>" has the meaning set forth in the preamble of this Agreement.

"<u>Advance Fee</u>" has the meaning set forth in the Pricing Side Letter for such term.

"<u>Adviser</u>" means RCM GA Manager LLC, a Delaware limited liability company.

"<u>Affiliate</u>" means, with respect to any Person, any "affiliate" of such Person as such term is defined in the Bankruptcy Code; <u>provided</u> that anything herein to the contrary notwithstanding, the sole Affiliates of Guarantor and Seller shall be Guarantor and its wholly-owned subsidiaries.

"<u>After Rehabilitation Value</u>" means, with respect to each Underlying Asset, the lesser of (a) the expected value of a Mortgaged Property (or REO Property, as applicable) upon the completion of any construction, renovation or other rehabilitation as set forth in a Broker Price Opinion Value or Evaluation/Appraisal Value, as applicable, or (b) the internally produced valuation with respect to a Mortgaged Property (or REO Property, as applicable) as determined in accordance with the related Underwriting Guidelines, in each case, as provided by Seller.

"<u>Aggregate Purchase Price</u>" means, as of any date of determination, the aggregate outstanding Purchase Price of all Purchased Assets subject to a Transaction.

"<u>Agreement</u>" means, collectively, this Master Repurchase Agreement and Securities Contract, and each Schedule and Exhibit hereto, as such agreement may be amended, restated, supplemented or otherwise modified from time to time.

"<u>Allocated Repurchase Price</u>" means, with respect to any individual Underlying Mortgage Loan, the portion of the Repurchase Price of the related Purchased Asset allocated by Buyer in its discretion to such Underlying Mortgage Loan.

"<u>Alternative Rate</u>" has the meaning set forth in the Pricing Side Letter for such term.

"<u>Alternative Rate Transaction</u>" means, with respect to any Pricing Period (or other applicable period), any Transaction with respect to which the Pricing Rate for such Pricing Period (or other applicable period) is determined with reference to the Alternative Rate.

"<u>Ancillary Income</u>" means with respect to any Underlying Asset at any time until repurchased by Seller, any fees, transfer fees, make whole fees, late fees, premiums, yield maintenance charges, penalties and all other fees or charges of any kind with respect to such Underlying Asset (in each case, for the avoidance of doubt, excluding interest and Principal Payments thereon).

"<u>Ancillary Income Account</u>" means the account established in connection with the transactions contemplated hereby at Bank, by and in the name of Buyer, into which all Income consisting of Ancillary Income shall be deposited.

"<u>Anti-Corruption Laws</u>" means the U.S. Foreign Corrupt Practices Act, as amended, the UK Bribery Act of 2010, as amended, and any other law applicable to a Seller Party or any of its Affiliates that prohibits the bribery of foreign officials to gain a business advantage.

"<u>Anti-Money Laundering Laws</u>" means applicable laws or regulations in any jurisdiction in which a Seller Party is located or doing business that relate to money laundering, any predicate crime to money laundering or any financial record keeping and reporting requirements related thereto.

"<u>Applicable Margin</u>" has the meaning set forth in the Pricing Side Letter for such term.

"<u>Approved BPO Provider</u>" means each licensed real estate agent, salesperson, broker or appraiser listed on <u>Exhibit D</u> hereto or any other BPO provider approved by Buyer in its reasonable discretion.

"<u>Approved Originator</u>" means (i) Seller and (ii) each of the originators listed on <u>Exhibit C</u> attached hereto, which schedule may be updated from time to time by Seller upon written consent of Buyer in its sole discretion.

"<u>As-Is Value</u>" means, (i) with respect to each Underlying Asset that was purchased within 12 months of the Purchase Date, an amount equal to the lesser of (a) an Evaluation/Appraisal Value or the Broker Price Opinion Value, as applicable, of the related Mortgaged Property (or REO Property, as applicable) and (b) the purchase price of the Mortgaged Property (or REO Property, as applicable), and (ii) with respect to each Underlying Asset that was purchased more than 12 months from the Purchase Date, an amount equal to the Evaluation/Appraisal Value or the Broker Price Opinion Value, as applicable, of the related Mortgaged Property (or REO Property, as applicable).

"<u>Asset Margin Base</u>" has the meaning set forth in the Pricing Side Letter for such term.

"<u>Asset Tape</u>" means a data file comprised of origination and servicing information related to each Underlying Asset, including, without limitation, specific information reasonably requested by Buyer, in a format acceptable to Buyer.

"<u>Assignment of Mortgage</u>" means an assignment of the Mortgage, notice of transfer or equivalent instrument in recordable form, sufficient under the laws of the jurisdiction wherein the related Mortgaged Property is located to reflect the sale and transfer of the Mortgage.

"<u>Bank</u>" means U.S. Bank National Association and its successors and assigns.

"<u>Bankruptcy Code</u>" means Title 11 of the United States Code, as amended from time to time.

"<u>Benchmark</u>" means, (i) initially, Term SOFR; (ii) if a replacement of the Benchmark has occurred pursuant to <u>Section 38(a)</u> hereof, then "Benchmark" means the Alternative Rate; or (iii) if a Benchmark Transition Event and the Benchmark Replacement Date with respect thereto have occurred with respect to the Term SOFR Reference Rate or the then-current Benchmark, then "Benchmark" means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to <u>Section 38(b)</u>. Any reference to "Benchmark" shall include, as applicable, the published component used in the calculation thereof.

"<u>Benchmark Replacement</u>" means, for any Benchmark Transition Event, the sum of: (a) the alternate rate of interest that has been selected by Buyer as the replacement for the then-current Benchmark giving due consideration to (i) any selection or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a benchmark rate as a replacement to the then-current Benchmark for Dollar-denominated floating rate credit facilities secured by interests in commercial real estate and/or commercial mortgage loans, or securitization, institutional warehouse or repurchase financing backed in whole or in part by interests in such assets, at such time and (b) the Benchmark Replacement Adjustment.

If at any time the Benchmark Replacement as determined pursuant to this definition would be less than the Floor, the Benchmark Replacement will be deemed to be the Floor for the purposes of this Agreement.

"<u>Benchmark Replacement Adjustment</u>" means the first alternative set forth in the order below that can be determined by Buyer as of the Benchmark Replacement Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the spread adjustment, or method for calculating or determining such spread adjustment (which may be a positive or negative value or zero), that has been selected, endorsed or recommended by the Relevant Governmental Body for the applicable Unadjusted Benchmark Replacement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the alternative spread adjustment selected by Buyer, giving due consideration to any industry-accepted spread adjustment, or method for calculating or determining such spread adjustment (which may be a positive or negative value or zero), for the replacement of the then-current Benchmark with the applicable Unadjusted Benchmark Replacement for U.S. dollar denominated secured financing or securitization transactions relating to the relevant asset class, as applicable at such time.

"<u>Benchmark Replacement Conforming Changes</u>" means, with respect to either the use or administration of Term SOFR or any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of "Business Day," the definition of "Pricing Period," timing and frequency of determining rates and making payments of Price Differential, prepayment provisions and other administrative matters) that Buyer decides may be appropriate to reflect the adoption and implementation of such rate and to permit the administration thereof by Buyer in a manner substantially consistent with market practice (or, if Buyer decides that adoption of any portion of such market practice is not administratively feasible or if Buyer determines that no market practice for the administration of the rate exists, in such other manner of administration as Buyer decides is reasonably necessary in connection with the administration of this Agreement and the other Program Agreements).

"<u>Benchmark Replacement Date</u>" means the earlier to occur of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) in the case of <u>clause (a)</u> of the definition of "Benchmark Transition Event," the later of (a) the date of the public statement or publication of information referenced therein and (b) the date on which the administrator of such Benchmark (or the published component used in the calculation thereof) permanently or indefinitely ceases to provide such Benchmark (or such component thereof); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) in the case of <u>clause (b)</u> of the definition of "Benchmark Transition Event," the date of the public statement or publication of information referenced therein.

For the avoidance of doubt, if the event giving rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference Time in respect of any determination, the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time for such determination.

"<u>Benchmark Transition Event</u>" means, with respect to any then-current Benchmark, the occurrence of a public statement or publication of information by or on behalf of the administrator of the then-current Benchmark, the regulatory supervisor for the administrator of such Benchmark, the Board of Governors of the Federal Reserve System, the Federal Reserve Bank of New York, an insolvency official with jurisdiction over the administrator for such Benchmark, a resolution authority with jurisdiction over the administrator for such Benchmark or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark, announcing or stating that (a) such administrator has ceased or will cease on a specified date to provide of such Benchmark, permanently or indefinitely; <u>provided</u>, that at the time of such statement or publication, there is no successor administrator that will continue to provide such Benchmark or (b) such Benchmark is or will no longer be representative of the underlying market and economic reality that such Benchmark is intended to measure and that representativeness will not be restored.

"<u>Bridge Loan</u>" means a Mortgage Loan that conforms to the Seller's Bridge Loan Underwriting Guidelines as in effect as of the related Origination Date for such Mortgage Loan.

"<u>Broker Price Opinion</u>" means a written report, received from (i) a licensed real estate agent or other home valuation expert, in either case, acceptable to Buyer in its reasonable discretion or (ii) an Approved BPO Provider, providing such Person's opinion of the value of a Mortgaged Property (or REO Property, as applicable).

"<u>Broker Price Opinion Value</u>" means, with respect to each Underlying Asset, an amount equal to the lesser of (a) the value set forth in a Broker Price Opinion as the then-current value of the related Mortgaged Property (or REO Property, as applicable), or (b) the internally produced valuation with respect to a Mortgaged Property (or REO Property, as applicable) as determined in accordance with the related Underwriting Guidelines, in each case, as provided by Seller.

"<u>Business Day</u>" means any day other than (a) a Saturday or a Sunday, (b) a day on which banks in the States of New York or North Carolina are authorized or obligated by law or executive order to be closed, (c) any day on which the New York Stock Exchange, the Federal Reserve Bank of New York, the Custodian or the Bank is authorized or obligated by law or executive order to be closed, or (d) if the term "Business Day" is used in connection with the determination of SOFR, a day dealings in Dollar deposits are not carried on by the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate).

"<u>Buyer</u>" has the meaning specified in the preamble of this Agreement.

"<u>Capital Lease Obligations</u>" means, with respect to any Person, all obligations of such Person to pay rent or other amounts under a lease of property to the extent and in the amount that such obligations are required to be classified and accounted for as a capital lease on a balance sheet of such Person.

"<u>Capital Stock</u>" means any and all shares, interests, participations or other equivalents (however designated) of capital stock of a corporation, any and all equivalent equity ownership interests in a Person which is not a corporation, including, without limitation, any and all member or other equivalent interests (certificated or uncertificated) in any limited liability company, any and all partnership or other equivalent interests in any partnership or limited partnership, and any and all warrants or options to purchase any of the foregoing.

"<u>Change in Control</u>" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Guarantor shall cease to own, directly or indirectly, 100% of the outstanding Capital Stock of Seller;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Seller enters into any transaction or series of transactions to adopt, file, effect or consummate a Division, or otherwise permits any such Division to be adopted, filed, effected or consummated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the sale, transfer, or other disposition of all or substantially all of Seller's assets (excluding any such action taken in connection with any securitization, mortgage servicing rights sale or whole loan transaction);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) the consummation of a merger or consolidation of Seller with or into another entity or any other corporate reorganization (other than any Affiliate), if more than 49% of the combined voting power of the continuing or surviving entity's stock outstanding immediately after such merger, consolidation or such other reorganization is owned by Persons who were not stockholders of Seller immediately prior to such merger, consolidation or other reorganization (other than any Affiliate);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) (i) Adviser (or an Affiliate thereof that is an investment adviser registered with the Securities and Exchange Commission) shall cease to be the investment adviser of Guarantor, or (ii) Rithm Capital Corp. shall cease to own and control, directly or indirectly, 100% of the outstanding Capital Stock of the Adviser (or any successor investment adviser permitted in accordance with clause (i) above, as applicable); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) Seller shall cease to own or control, directly or indirectly, 100% of the outstanding Capital Stock of each REO Subsidiary.

"<u>Code</u>" means the Internal Revenue Code of 1986, as amended from time to time.

"<u>Collateral Documents</u>" means the documents in the Mortgage File delivered to the Custodian.

"<u>Collection Account</u>" means collectively, the Principal Collection Account, the Interest Collection Account and the Ancillary Income Account.

"<u>Combined Loan-to-Value Ratio</u>" or "<u>CLTV</u>" means, with respect to any Underlying Asset (other than a Permitted REO Asset), the ratio of (i)(a) the original outstanding principal amount of the Underlying Asset (excluding the portion of such Underlying Asset attributable to construction, rehabilitation or renovation costs and expenses), <u>plus</u> (b) the unpaid principal balance of any subordinate loans secured by the Mortgaged Property, to (ii) the As-Is Value of the related Mortgaged Property.

"<u>Concentration Sublimit</u>" has the meaning set forth in the Pricing Side Letter for such term.

"<u>Construction Escrow Mortgage Loan</u>" means an Underlying Asset other than a Permitted Delinquent Asset with respect to which certain future advances, escrows or holdbacks are made in connection with the origination of the related Mortgage Loan and are advanced in increments as certain benchmarks of rehabilitation, renovation or construction work by the related Mortgagor of the related Mortgaged Property securing such Underlying Asset are completed in accordance with the terms of the Loan Documents (to the extent that the terms of the Loan Documents provide for such future advances, escrows or holdbacks).

"<u>Custodial Agreement</u>" means that certain Custodial Agreement, dated as of the Effective Date, among Buyer, Seller and Custodian, as the same may be amended, restated, supplemented or otherwise modified from time to time.

"<u>Custodian</u>" means U.S. Bank National Association, in its capacity as custodian, and its successors and permitted assigns.

"<u>Default</u>" means any event that, with the giving of notice, the passage of time, or both, would constitute an Event of Default.

"<u>Deposit Account Control Agreement</u>" means a deposit account control agreement, among Buyer, Seller and the applicable depository bank, as the same may be amended, restated, supplemented or otherwise modified from time to time, which shall provide for Buyer's control of any Reserve Account as of the date of execution.

"<u>Division</u>" means the division of a limited liability company into two or more limited liability companies pursuant to and in accordance with Section 18-217 of Chapter 18 of the Delaware Limited Liability Company Act, 6 Del. C. §§ 18-101 et seq., as amended.

"<u>Dollars</u>" and "<u>$</u>" means dollars in lawful currency of the United States of America.

"<u>Due Date</u>" means the day of the month on which the Monthly Payment is due on a Mortgage Loan, exclusive of any days of grace.

"<u>Early Repurchase Date</u>" has the meaning specified in <u>Section 4(b)</u> hereof.

"<u>Effective Date</u>" means November 24, 2025.

"<u>Eligible Mortgaged Property</u>" means a Mortgaged Property or REO Property that consists of a (a) one-to-four family property (including, without limitation, single family homes, attached townhomes and condominium units), (b) multi-family property, (c) mixed-use property for which more than 75% of the square footage is designated for residential purposes, (d) Entitled Land, or (e) manufactured homes.

"<u>Eligible Mortgagor</u>" has the meaning set forth in the Pricing Side Letter for such term.

"<u>Eligible Trust Interest</u>" shall mean a Trust Interest (i) as to which the representations and warranties in <u>Section 12(a)(20)</u>, <u>Section 12(a)(26)</u> and <u>Section 12(a)(27)</u> are true and correct, (ii) that represents the beneficial and economic interests in Eligible Underlying Assets, (iii) that is wholly and directly owned by Seller, (iv) that is evidenced by the Trust Certificate, (v) that is approved by Buyer in its discretion, (vi) as to which the Trust Agreement expressly permits Buyer, as holder of the Trust Certificate, to exercise, in accordance with the terms of the Trust Agreement, the Unwind Rights without any further action or approval by any Seller Party or the Trustee, and (vi) that satisfies such other eligibility criteria as may be set forth in the Program Agreements or otherwise mutually agreed to by Buyer and Seller.

"<u>Eligible Underlying Asset</u>" means an Underlying Asset that satisfies each of the following criteria, as determined by Buyer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the representations and warranties in <u>Schedule 1-A</u> and <u>1-B</u> are true and correct with respect to such Underlying Asset;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) unless such Underlying Asset is a Permitted REO Asset, legal title to such Underlying Asset is held by the Trustee on behalf of the Trust, and such Underlying Asset supports Trust Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) unless such Underlying Asset is a Permitted REO Asset, the Trustee on behalf of the Trust owns such Underlying Asset free and clear of any encumbrance, equity, Lien, charge, claim or security interest, other than Permitted Encumbrances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the related reserve accounts, holdback accounts and other cash accounts (if any) with respect to an Underlying Asset and either (a) if the accounts are the property of Seller or the Trustee on behalf of the Trust, are subject to an account control agreement in favor of Buyer, or (b) if the accounts are the property of the Mortgagor, are subject to a Lien and an account control agreement in favor of Seller, and Seller's interests in which are sold to Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) if such Underlying Asset is cross-collateralized or cross-defaulted with any other Mortgage Loan, either (a) such other Underlying Asset shall be an Eligible Underlying Asset that is sold or designated to be sold to Buyer under a Transaction or (b) such other Underlying Asset is subject to the Genesis Intercreditor Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) if such Underlying Asset is a Future Advance Underlying Mortgage Loan, all conditions precedent to such Underlying Asset under the related Loan Documents have been satisfied or waived as of the applicable Purchase Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) unless such Underlying Asset is a Permitted REO Asset, the Mortgagor relating to such Underlying Asset is an Eligible Mortgagor, and the Mortgaged Property relating to such Underlying Asset is an Eligible Mortgaged Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) such Underlying Asset is not an Ineligible Asset; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) with respect to any Underlying Asset that is a Permitted REO Asset, Seller owns such Underlying Asset free and clear of any encumbrance, equity, Lien, charge, claim or security interest.

"<u>Enforcement Action</u>" means, with respect to any Underlying Asset, the foreclosure by or on behalf of Seller or the Trustee on behalf of the Trust on the related Mortgage Loan or the acceptance of a deed in lieu of foreclosure or similar action by or on behalf of any Seller or the Trustee on behalf of the Trust, with respect to such Mortgage Loan and/or the related Mortgagor.

"<u>Entitled Land</u>" means land (a) zoned and otherwise suitable for the development of Eligible Mortgaged Properties, and (b) with respect to which approval and entitlement from required Governmental Authorities of a tentative map and a preliminary development plan has been obtained.

"<u>ERISA</u>" means the Employee Retirement Income Security Act of 1974, as amended.

"<u>Errors and Omissions Insurance Policy</u>" means an errors and omissions insurance policy to be maintained by or on behalf of Seller pursuant to <u>Section 13(e)</u>.

"<u>Escrow Payments</u>" means, with respect to any Mortgage Loan, the amounts, if any, constituting ground rents, taxes, assessments, water rates, sewer rents, municipal charges, mortgage insurance premiums, fire and hazard insurance premiums, condominium charges, and any other payments required to be escrowed by the Mortgagor with the mortgagee pursuant to the Mortgage or any other Loan Document.

"<u>Evaluation/Appraisal</u>" means an evaluation or an appraisal made, in either case, by an Evaluation/Appraisal Vendor which, in either case, satisfies the requirements of Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, as amended, and the regulations promulgated thereunder, all as in effect on the Origination Date of the Mortgage Loan.

"<u>Evaluation/Appraisal Value</u>" means, with respect to each Underlying Asset, an amount equal to the lesser of (a) the "as-is" value set forth in an Evaluation/Appraisal in connection with the origination of the related Mortgage Loan as the value of the related Mortgaged Property (or REO Property, as applicable), or (b) the internally produced valuation with respect to a Mortgaged Property (or REO Property, as applicable) as determined in accordance with the related Underwriting Guidelines, in each case, as provided by Seller.

"<u>Evaluation/Appraisal Vendor</u>" means the author of the evaluation or appraisal constituting an Evaluation/Appraisal.

"<u>Event of Default</u>" has the meaning specified in <u>Section 14</u> hereof.

"<u>Excess Funds</u>" has the meaning specified in <u>Section 7(h)</u> hereof.

"<u>Excluded Taxes</u>" means any of the following taxes imposed on or with respect to Buyer or other recipient of any payment hereunder or required to be withheld or deducted from a payment to Buyer or such other recipient: (a) taxes based on (or measured by) net income (however denominated) or net profits, franchise taxes and branch profits taxes that are imposed on Buyer or other recipient of any payment hereunder as a result of (i) being organized under the laws of, or having its principal office or its applicable lending office located in the jurisdiction imposing such tax (or any political subdivision thereof), or (ii) a present or former connection between Buyer or other recipient and the jurisdiction of the Governmental Authority imposing such tax or any political subdivision or taxing authority thereof (other than connections arising solely from Buyer or other recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced under this Agreement or any Program Agreement, or sold or assigned an interest in any Purchased Asset or Underlying Asset); (b) any tax imposed on Buyer or other recipient of a payment hereunder that is attributable to Buyer's or other recipient's failure to comply with relevant requirements set forth in <u>Section 10(g)</u> hereof; (c) any U.S. federal withholding tax that is imposed on amounts payable to or for the account of Buyer or other recipient of a payment hereunder pursuant to a law in effect on the date such person becomes a party to or under this Agreement, or such person changes its lending office, except in each case to the extent that amounts with respect to taxes were payable either to such Person's assignor immediately before such person became a party hereto or to such person immediately before it changed its lending office; and (d) any withholding taxes imposed under FATCA.

"<u>Facility Monthly Payment</u>" means an amount due from Seller to Buyer on each Remittance Date equal to the accrued and unpaid Price Differential with respect to all Purchased Assets (and related Underlying Assets) then subject to Transactions and other amounts owed by Seller to Buyer (including, without limitation, any unpaid or outstanding Fees), as specified in <u>Section 7(b)</u>.

"<u>FATCA</u>" means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), together in each case with any current or future regulations, guidance or official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Code and any U.S. or non-U.S. law, agreement, fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental Authorities entered into in connection with the implementation of the foregoing.

"<u>Fees</u>" means all Advance Fees and/or Permitted Delinquent Asset Advance Fees payable in accordance with the Program Agreements.

"<u>Fidelity Bond</u>" means a fidelity bond to be maintained by or on behalf of Seller pursuant to <u>Section 13(e)</u>.

"<u>Floor</u>" has the meaning set forth in the Pricing Side Letter for such term.

"<u>Funding Period</u>" means the period during which Buyer may enter into Transactions in accordance with the terms and conditions of this Agreement, which period shall commence on the Effective Date and end on the date that is one hundred and eighty (180) days following written notice from Buyer to Seller in accordance with <u>Section 4(e)</u>.

"<u>Future Advance Purchase</u>" shall have the meaning specified in <u>Section 3(f)</u> of this Agreement.

"<u>Future Advance Underlying Mortgage Loan</u>" means any Underlying Asset with respect to which there exists a continuing ability on the part of the holder of such Underlying Asset, pursuant to the terms and conditions of the Loan Documents, to provide additional funding to the Mortgagor.

"<u>GAAP</u>" means generally accepted accounting principles in effect from time to time in the United States of America and applied on a consistent basis.

"<u>Genesis Intercreditor Agreement</u>" means the Intercreditor Agreement, dated as of March 30, 2023, among Genesis Capital, LLC, Goldman Sachs Bank USA, the Buyer, Forethought Life Insurance Company and the other "Interest Holders" from time to time parties thereto, as may be further amended, restated, supplemented or otherwise modified from time to time.

"<u>Governing Documents</u>" means, with respect to any Person, its articles or certificate of incorporation or formation, by-laws, memorandum and articles of association, partnership, limited liability company, operating or trust agreement and/or other organizational, charter or governing documents, together with any amendments, restatement or supplements thereto.

"<u>Governmental Authority</u>" means, with respect to any Person, (a) any (i) nation or government, (ii) state or local or other political subdivision thereof, (iii) central bank or similar monetary or regulatory authority, (iv) person, agency, authority, instrumentality, court, regulatory body, central bank or other body or entity exercising executive, legislative, judicial, taxing, quasi–judicial, quasi–legislative, regulatory or administrative functions or powers of or pertaining to government, or (v) court or arbitrator having jurisdiction over such Person, its Affiliates (other than with respect to Seller) or its assets or properties, (b) any stock exchange on which shares of stock of such Person are listed or admitted for trading, (c) any accounting board or authority that is responsible for the establishment or interpretation of national or international accounting principles, and (d) any supra-national body such as the European Union or the European Central Bank.

"<u>Granting Party</u>" means each Seller and each REO Subsidiary, or all of the foregoing, as the context requires.

"<u>Guarantee</u>" means, as to any Person, any obligation of such Person directly or indirectly guaranteeing any Indebtedness of any other Person or in any manner providing for the payment of any Indebtedness of any other Person or otherwise protecting the holder of such Indebtedness against loss (whether by virtue of partnership arrangements, by agreement to keep-well, to purchase assets, goods, securities or services, or to take-or-pay or otherwise); <u>provided</u>, that the term "<u>Guarantee</u>" shall not include (i) endorsements for collection or deposit in the ordinary course of business, or (ii) obligations to make servicing advances for delinquent taxes and insurance or other obligations in respect of a Mortgaged Property (or REO Property, as applicable), to the extent required by Buyer. The amount of any Guarantee of a Person shall be deemed to be an amount equal to the stated or determinable amount of the primary obligation in respect of which such Guarantee is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by such Person in good faith. The terms "<u>Guarantee</u>" and "<u>Guaranteed</u>" used as verbs shall have correlative meanings.

"<u>Guarantor</u>" has the meaning set forth in the preamble of this Agreement.

"<u>Guaranty</u>" means the limited guaranty of Guarantor, dated as of the Effective Date, as the same may be amended, restated, supplemented or otherwise modified from time to time, pursuant to which Guarantor guarantees the obligations of Seller hereunder to the extent and in the circumstances set forth therein.

"<u>High Cost Mortgage Loan"</u> means a Mortgage Loan classified as (a) a "high cost" loan under the Home Ownership and Equity Protection Act of 1994, as amended, or (b) a "high cost," "threshold," "covered," "abusive," "high risk" or "predatory" loan under any other applicable state, federal or local law (or a similarly classified loan using different terminology under a law, regulation or ordinance imposing heightened regulatory scrutiny or additional legal liability for residential mortgage loans having high interest rates, points and/or fees).

"<u>Income</u>" means with respect to any Underlying Asset at any time until repurchased by Seller, any principal received thereon or in respect thereof and all interest, fees, proceeds, dividends or other distributions thereon, all Liquidation Proceeds, all other income, receipts, payments, collections, prepayments, recoveries, proceeds (including insurance and condemnation proceeds) and other payments or amounts of any kind paid, received, collected, recovered or distributed on, in connection with or in respect of the related Mortgaged Properties (or REO Properties, as applicable), including all proceeds received upon the securitization, liquidation, foreclosure, short sale or other disposition of any such Mortgaged Properties (or REO Properties, as applicable), transfer fees, make whole fees, late fees and all other fees or charges of any kind or nature, premiums, yield maintenance charges, penalties, default interest, gains, receipts, allocations, rents, interests, profits, payments in kind, returns or repayment of contributions, insurance payments, judgments, settlements and proceeds, and all other "proceeds" as defined in Section 9-102(a)(64) of the UCC, including all collections or distributions thereon or other income or receipts therefrom or in respect thereof, but excluding (x) any servicing fees and any other fees and reimbursements owed to a third-party Servicer pursuant to the terms of the related Servicing Agreement, or (y) any other third party fees, expenses, costs or reimbursements due with respect to such Underlying Asset.

"<u>Indebtedness</u>" means, for any Person: (a) obligations created, issued or incurred by such Person for borrowed money (whether by loan, the issuance and sale of debt securities or the sale of Property to another Person subject to an understanding or agreement, contingent or otherwise, to repurchase such Property from such Person); (b) obligations of such Person to pay the deferred purchase or acquisition price of Property or services, other than trade accounts payable (other than for borrowed money) arising, and accrued expenses incurred, in the ordinary course of business, so long as such trade accounts payable are payable within ninety (90) days of the date the respective goods are delivered or the respective services are rendered; (c) Indebtedness of others secured by a Lien on the Property of such Person, whether or not the respective Indebtedness so secured has been assumed by such Person; (d) obligations (contingent or otherwise) of such Person in respect of letters of credit or similar instruments issued or accepted by banks and other financial institutions for the account of such Person; (e) Capital Lease Obligations of such Person; (f) obligations of such Person under repurchase agreements, sale/buy-back agreements or like arrangements; (g) Indebtedness of others Guaranteed by such Person; (h) all obligations of such Person incurred in connection with the acquisition or carrying of fixed assets by such Person; and (i) Indebtedness of general partnerships of which such Person is a general partner; <u>provided</u>, <u>however</u>, that "Indebtedness" shall not include Non-Recourse Debt.

"<u>Indemnified Taxes</u>" or "<u>Indemnified Tax</u>" means (a) taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of the Seller Parties hereunder or under any Program Agreement and (b) to the extent not otherwise described in the foregoing clause (a), Other Taxes.

"<u>Ineligible Asset</u>" has the meaning set forth in the Pricing Side Letter for such term.

"<u>Interest Collection Account</u>" means the account established in connection with the transactions contemplated hereby at Bank, by and in the name of Buyer, into which all Income, other than Income consisting of Principal Payments or Ancillary Income, shall be deposited.

"<u>Initial REO Subsidiary</u>" has the meaning specified in the preamble of this Agreement.

"<u>Interest Reserve Account</u>" means an account established in connection with the transactions contemplated hereby at Bank, by and in the name of Buyer, into which all Interest Reserve Amounts shall be deposited. Buyer may, in its sole discretion, establish the Interest Reserve Account as either (a) a sub-account of a Collection Account, or (b) a separate reserve amount maintained in a Collection Account that is segregated therefrom by accounting.

"<u>Interest Reserve Amount</u>" means, with respect to each Pricing Period, an amount equal to the product of (a) three (3) times (b) the expected Price Differential to be accrued with respect to such Pricing Period, as determined by Buyer in its discretion.

"<u>Interest Reserve Trigger Event</u>" has the meaning set forth in the Pricing Side Letter for such term.

"<u>Lien</u>" means any mortgage, lien, pledge, charge, security interest or similar encumbrance.

"<u>Liquidation Proceeds</u>" means all amounts paid in respect of any disposition of a Mortgaged Property, whether by sale, securitization, liquidation, assignment or otherwise, net of reasonable direct costs and expenses incurred by Seller in connection with such disposition, which costs and expenses shall be documented and provided to Buyer upon the reasonable request of Buyer.

"<u>Loan Agreement</u>" means each loan agreement entered into between Seller (as the initial lender thereunder or by way of assignment from the applicable originator) and a Mortgagor from time to time, as the same may be amended, restated, supplemented or otherwise modified from time to time.

"<u>Loan Amount</u>" means the maximum amount permitted to be advanced by Seller to a Mortgagor under the terms of the related Loan Agreement.

"<u>Loan Documents</u>" means, with respect to an Underlying Asset, the related Loan Agreement and each other "loan document" (or other similar term) as such term is defined in such Loan Agreement (or any other document entered into by the related Mortgagor or any sponsor thereof in connection with such Loan Agreement), all of which shall be included in the related Mortgage File to be delivered to the Custodian pursuant to the terms of the Custodial Agreement, the forms of which have been reviewed and approved by Buyer on or prior to the related Purchase Date.

"<u>Loan to Cost Ratio</u>" or "<u>LTC</u>" means, with respect to any Underlying Asset (other than a Permitted REO Asset), the ratio of (a) the maximum Mortgage Note amount as reflected in the related Mortgage Note to (b) an amount equal to the sum of (i) the acquisition price for the related Mortgaged Property and (ii) the aggregate amount of all actual, verified and projected construction, rehabilitation, renovation or soft (i.e., interest reserve) costs actually or expected to be incurred with respect to the related Mortgaged Property utilized in connection with the origination of such Mortgage Loan; <u>provided</u>, <u>however</u>, any actual construction, rehabilitation, renovation or soft (i.e., interest reserve) costs incurred with respect to a Mortgaged Property shall be subject to verification by Buyer in its sole discretion.

"<u>Loan to Value Ratio</u>" or "<u>LTV</u>" means with respect to any first lien Mortgage Loan, the ratio of the original outstanding principal amount of such Mortgage Loan (excluding the portion of such Mortgage Loan attributable to construction, rehabilitation or renovation costs and expenses) to the As-Is Value.

"<u>Mandatory Early Repurchase</u>" has the meaning specified in <u>Section 4(f)</u> hereof.

"<u>Mandatory Early Repurchase Date</u>" has the meaning specified in <u>Section 4(f)</u> hereof.

"<u>Margin Base</u>" means, as of any date of determination, the aggregate Asset Margin Base of all Underlying Assets subject to Transactions.

"<u>Margin Call</u>" has the meaning specified in <u>Section 6(a)</u> hereof.

"<u>Margin Deficit</u>" has the meaning specified in <u>Section 6(a)</u> hereof.

"<u>Material Adverse Effect</u>" means a material adverse effect on or material adverse change in or to (a) the property, assets, business, operations, financial condition, prospects or credit quality of a Seller Party and its subsidiaries taken as a whole, (b) the ability of a Seller Party to pay and perform its respective obligations under the Program Agreements to which it is a party, (c) the validity, legality, binding effect or enforceability of any Program Agreement, Record, Purchased Asset, Underlying Asset or security interest granted hereunder or thereunder, (d) the rights and remedies of Buyer or any Indemnified Party under any Program Agreement, the Purchased Assets or the Underlying Assets, or (e) the perfection or priority of any Lien granted under any Program Agreement.

"<u>Maximum Aggregate Purchase Price</u>" has the meaning set forth in the Pricing Side Letter for such term.

"<u>Monthly Payment</u>" means the scheduled monthly payment of interest on a Mortgage Loan.

"<u>Mortgage</u>" means each mortgage, assignment of rents, security agreement and fixture filing, deed of trust, deed to secure debt, or similar instrument creating and evidencing a Lien on real property and other property and rights incidental thereto.

"<u>Mortgage File</u>" means, with respect to any Underlying Asset, all documents, instruments or agreements relating to such Underlying Asset including, without limitation, (i) the related Loan Documents, (ii) all other documents, instruments or agreements required by the Underwriting Guidelines or applicable Requirements of Law to be executed and/or delivered by or to the Mortgagor on the Origination Date of such Mortgage Loan, (iii) any documents, instruments, reports (including any title reports or commitments), verifications, confirmations, statements, appraisals, applications, surveys, tax returns, certifications, analyses or other records delivered to the applicable Approved Originator by the related Mortgagor or prepared by the applicable Approved Originator or an agent thereof in connection with the evaluation and underwriting of Mortgagor or the related Mortgaged Property (or REO Property, as applicable) or the evaluation and appraisal of the Mortgaged Property (or REO Property, as applicable), and (iv) with respect to any Permitted REO Asset, the related REO Deed in favor of the REO Subsidiary and the REO Subsidiary Certificate.

"<u>Mortgage Interest Rate</u>" means the rate of interest borne on a Mortgage Loan in accordance with the terms of the related Mortgage Note.

"<u>Mortgage Loan</u>" means a fixed or adjustable-rate mortgage loan which is evidenced by a Mortgage Note where each advance thereunder is secured by a Mortgage on the related Mortgaged Property or Properties. No other type of Mortgage Loan shall be contributed to a Trust Interest that is purchased by Buyer hereunder.

"<u>Mortgage Loan Purchase Agreement</u>" shall mean the Flow Mortgage Loan Purchase and Sale Agreement dated as of the date hereof, between the Guarantor and Rithm Loan Aggregation Trust, a Delaware statutory trust.

"<u>Mortgage Loan Schedule</u>" means with respect to any Transaction as of any date, a mortgage loan schedule in the form of a computer tape or other electronic medium generated by Seller and delivered to Buyer, which provides information relating to the Underlying Assets in a format acceptable to Buyer.

"<u>Mortgage Note</u>" means the original executed promissory note or other evidence of the indebtedness of a Mortgagor with respect to a Mortgage Loan on a form reasonably acceptable to Buyer, which Mortgage Note is secured by a Mortgage on the related Mortgaged Property or Properties.

"<u>Mortgaged Property</u>" means each real property securing repayment of the debt evidenced by a Mortgage Note.

"<u>Mortgaged Property Release</u>" means the release of one or more Mortgaged Properties from the related Mortgage collateralizing an Underlying Asset.

"<u>Mortgagor</u>" means the obligor or obligors on a Mortgage Note, including any Person who has assumed or guaranteed the obligations of the obligor thereunder.

"<u>Negative Amortization</u>" means the portion of interest accrued at the Mortgage Interest Rate in any month that exceeds the Monthly Payment on the related Mortgage Loan for such month and, pursuant to the terms of the Mortgage Note, is added to the principal balance of the Mortgage Loan.

"<u>Non-Recourse Debt</u>" means, with respect to any Person, Indebtedness under a collateralized loan obligation transaction or other similar securitization transaction payable solely from the assets pledged to secure such transaction and with respect to which no purchaser or creditor under such transaction has direct or indirect recourse to such Person (except for customary exceptions for fraud, misapplication of funds, environmental indemnities, Acts of Insolvency, non-approved transfers or other customary non-recourse carveout events) if such assets are inadequate or unavailable to pay off such transaction, and such Person effectively has no obligation to directly or indirectly pay any such deficiency.

"<u>Obligations</u>" means (a) all of Seller's indebtedness, obligations to pay the Repurchase Price on the Repurchase Date, the Price Differential on each Remittance Date, and other obligations and liabilities, to Buyer, its Affiliates, any depository bank, the Trustee, the Bank or the Custodian arising under, or in connection with, the Program Agreements, whether now existing or hereafter arising; (b) any and all sums paid by Buyer or on behalf of Buyer in order to preserve any Purchased Asset, Underlying Asset or its interest therein; (c) in the event of any proceeding for the collection or enforcement of any of Seller's indebtedness, obligations or liabilities referred to in <u>clause (a)</u>, the reasonable expenses of retaking, holding, collecting, preparing for sale, selling or otherwise disposing of or realizing on any Purchased Asset, Underlying Asset, or of any exercise by Buyer of its rights under the Program Agreements, including, without limitation, attorneys' fees and disbursements and court costs; and (d) all of Seller's indemnity obligations to Buyer, any depository bank and/or the Custodian or all three pursuant to the Program Agreements.

"<u>OFAC</u>" means The Office of Foreign Assets Control of the U.S. Department of the Treasury.

"<u>Officer's Compliance Certificate</u>" means a certificate of a corporate officer of Guarantor in the form of <u>Exhibit A</u> hereto.

"<u>Origination Date</u>" means the date on which the Mortgage Note and Loan Documents with respect to a Mortgage Loan were executed and delivered.

"<u>Other Taxes</u>" means any and all present or future stamp, court or documentary, intangible, recording, filing or similar taxes or any excise, sales, goods and services or transfer taxes, charges or similar levies arising from any payment made hereunder or from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Program Agreement, except any such taxes with respect to any Buyer or other recipient of any payment hereunder imposed as a result of a present or former connection between such Buyer or other recipient and the jurisdiction of the Governmental Authority imposing such tax or any political subdivision or taxing authority thereof (other than connections arising from Buyer or other recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced under this Agreement or any Program Agreement, or sold or assigned an interest in any Purchased Asset or Underlying Asset).

"<u>Patriot Act</u>" means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001.

"<u>Permitted Delinquent Asset</u>" means a Permitted Delinquent Loan or a Permitted REO Asset.

"<u>Permitted Delinquent Asset Advance Fee</u>" has the meaning set forth in the Pricing Side Letter for such term.

"<u>Permitted Delinquent Asset Conversion Date</u>" means the date on which a Mortgage Loan first becomes subject to a Transaction as a Permitted Delinquent Asset.

"<u>Permitted Delinquent Loan</u>" means an Underlying Asset approved by Buyer in its sole discretion with respect to which the related Mortgagor is more than sixty (60) days delinquent in the payment of any applicable scheduled Monthly Payment.

"<u>Permitted Delinquent Taxes</u>" means delinquent real property taxes (a) that are not yet delinquent by more than thirty (30) days, and (b) for which no proceedings have been commenced to foreclose the related Lien.

"<u>Permitted Encumbrances</u>" means (a) with respect to a Mortgaged Property (or REO Property, as applicable), the Lien of taxes and assessments not yet delinquent or that are being contested in good faith by appropriate proceedings; (b) with respect to a Mortgaged Property (or REO Property, as applicable), covenants, conditions and restrictions, rights of way, easements and other matters of the public record as of the date of recording acceptable to prudent mortgage lending institutions generally and specifically referred to in the lender's title insurance policy delivered to the originator of the Mortgage Loan; (c) with respect to a Mortgaged Property (or REO Property, as applicable), other matters to which like properties are commonly subject that do not materially and adversely interfere with the benefits of the security intended to be provided by the Mortgage, if any, or the use, enjoyment, value or marketability of such Mortgaged Property (or REO Property, as applicable); (d) with respect to a Mortgaged Property (or REO Property, as applicable), Permitted Delinquent Taxes, (e) Liens of any depositary institution of any account subject to a Deposit Account Control Agreement arising under such Deposit Account Control Agreement or under applicable law, and (f) any Liens in favor of the Buyer.

"<u>Permitted Modification</u>" means any amendment or waiver of, or modification or supplement to, a Mortgage Note or the related Loan Documents governing a Mortgage Loan (a) executed or effected on or after the Purchase Date for such Mortgage Loan associated with the day-to-day administration of the Mortgage Loan, the correction of clerical errors, the extension of maturity date up to one hundred twenty (120) days, the waiver of default interest or late fees, and modification of notice address, or (b) as otherwise approved by Buyer in its sole discretion.

"<u>Permitted REO Asset</u>" means, with respect to any Underlying Asset for which a Realization Event has been completed in accordance with <u>Section 39</u> hereof, the REO Subsidiary Certificate with respect to the REO Subsidiary that holds legal title to the related REO Property.

"<u>Person</u>" means an individual, partnership, corporation (including a business trust or statutory trust), limited liability company, joint stock company, trust, unincorporated association, joint venture or other entity, or a government or any political subdivision or agency thereof.

"<u>Pledge Agreement</u>" means that certain Guaranty and Pledge Agreement, dated as of the date hereof, entered into by the Trustee on behalf of the Trust in favor of Buyer, as may be amended, restated, supplemented or otherwise modified from time to time.

"<u>Pledged Assets</u>" shall have the meaning set forth in the Pledge Agreement.

"<u>Post Default Rate</u>" has the meaning set forth in the Pricing Side Letter for such term.

"<u>Power of Attorney</u>" means each Power of Attorney dated as of the Effective Date executed by the Seller or Trustee on behalf of the Trust in favor of the Buyer in the form attached hereto as <u>Exhibit B</u>.

"<u>Price Differential</u>" means for any Pricing Period or portion thereof and (a) for any Transaction outstanding, the sum of the products, for each day during such Pricing Period or portion thereof, of (i) 1/360th of the applicable Pricing Rate in effect for the Purchased Asset (and related Underlying Assets) subject to such Transaction during such Pricing Period, times (ii) the outstanding Purchase Price for such Purchased Asset (and related Underlying Assets) subject to such Transaction, or (b) for all Transactions outstanding, the sum of the amounts calculated in accordance with the preceding <u>clause (a)</u> for all Transactions.

"<u>Pricing Period</u>" means (a) in the case of the first Remittance Date, the period beginning on and including the initial Purchase Date through (and including) the last day of the immediately preceding calendar month, and (b) in the case of any subsequent Remittance Date, the period beginning on and including the first day of the immediately preceding calendar month through (and including) the last day of the immediately preceding calendar month.

"<u>Pricing Rate</u>" means, for any Pricing Period, a rate per annum equal to the sum of (a) the greater of (i) the Floor and (ii) the Benchmark, <u>plus</u> (b) the Applicable Margin; <u>provided</u>, <u>however</u>, upon the occurrence and during the continuance of an Event of Default, the Pricing Rate shall be the Post Default Rate.

"<u>Pricing Rate Reset Date</u>" means, with respect to any Transaction, (a) in the case of the first Pricing Period, the Purchase Date for such Transaction, and (b) in the case of any subsequent Pricing Period, the first day of each succeeding calendar quarter (i.e., January 1, April 1, July 1 and October 1).

"<u>Pricing Side Letter</u>" means that certain Pricing Side Letter, dated as of the Effective Date, between Buyer and Seller, as the same may, from time to time thereafter, be amended, restated, supplemented or otherwise modified.

"<u>Principal Collection Account</u>" means the account established in connection with the transactions contemplated hereby at Bank, by and in the name of Buyer, into which all Income consisting of Principal Payments shall be deposited.

"<u>Principal Payment</u>" means with respect to any Underlying Asset at any time until repurchased by Seller, any principal received thereon or in respect thereof and all Liquidation Proceeds, receipts, recoveries, proceeds (including insurance and condemnation proceeds) or other payments or amounts of any kind paid, received, collected, recovered or distributed on, in connection with or in respect of the related Mortgaged Properties (or REO Properties, as applicable).

"<u>Program Agreements</u>" means, collectively, this Agreement, each Servicing Agreement, each Servicer Notice and Agreement, the Custodial Agreement, the Pricing Side Letter, the Guaranty, the Pledge Agreement, the Residual Pledge Agreement, the Trust Agreement, the Mortgage Loan Purchase Agreement, the Accession Agreement, any Deposit Account Control Agreement, any Transaction Request, each Power of Attorney and any other agreement entered into in connection herewith between Buyer and Seller and/or its Affiliates.

"<u>Property</u>" means any right or interest in or to property of any kind whatsoever, whether real, personal or mixed and whether tangible or intangible.

"<u>Purchase Date</u>" means, with respect to (i) the initial Transaction, the date on which Purchased Assets are transferred by Seller to Buyer or its designee, and (ii) for each subsequent Transaction, the date on which (a) additional Underlying Mortgage Loans or Future Advance Purchases are allocated to a Purchased Asset and made subject to a Transaction hereunder or (b) any Permitted REO Assets become subject to a Transaction hereunder.

"<u>Purchase Price</u>" means, (i) with respect to each Purchased Asset, the amount paid by Buyer to Seller for such Purchased Asset (in the case of Underlying Mortgage Loans, calculated with respect to each Underlying Mortgage Loan allocated to such Purchased Asset) in connection with the related Transaction, which amount shall be set forth in the related Transaction Request and (ii) with respect to all of the Purchased Assets, the sum of the Purchase Prices for all Purchased Assets (in the case of Underlying Mortgage Loans, calculated with respect to each Underlying Mortgage Loan allocated to each such Purchased Asset) and subject to Transactions. As used herein, the "outstanding" Purchase Price means the Purchase Price, as may be (a) reduced by payments received by Buyer pursuant to the terms hereof, including pursuant to <u>Sections 4</u>, <u>6</u> and <u>7</u>, or (b) increased pursuant to the terms of <u>Section 3(d)</u>. The Purchase Price shall increase by any Future Advance Purchase pursuant to <u>Section 3(f)</u>.

"<u>Purchase Price Increase</u>" means an increase in the Purchase Price for the Purchased Asset relating to (i) a Future Advance Purchase or (ii) Buyer's agreement, in its sole and absolute discretion, to transfer additional Purchase Price to Seller in connection with the contribution of additional Underlying Mortgage Loans and/or Future Advance Underlying Mortgage Loans to the Trustee on behalf of the Trust. The Future Advance Purchase and/or contribution of Underlying Assets and Future Advance Underlying Mortgage Loans to the Trust and corresponding increase in value of the Trust Interests shall be used to determine a Purchase Price Increase with respect to such Trust Interests pursuant to the definition of Purchase Price and such Purchase Price Increase shall be added to the Purchase Price with respect to such Trust Interests, as applicable, for purposes of determining the outstanding Purchase Price hereunder.

"<u>Purchased Assets</u>" means (i) the Trust Certificate (representing the Trust Interests (representing the beneficial interest in the Underlying Mortgage Loans)) and (ii) the Permitted REO Assets that, in each case, are sold by Seller to Buyer in a Transaction, as listed on the related Mortgage Loan Schedule attached to the related Transaction Request, including the related Mortgage Files which the Custodian has been instructed to hold pursuant to the Custodial Agreement.

"<u>Qualified Insurer</u>" means an insurance company duly authorized and licensed where required by law to transact insurance business.

"<u>Realization Event</u>" has the meaning specified in <u>Section 39</u> hereof.

"<u>Records</u>" means all instruments, agreements and other books, records, and reports and data generated by other media for the storage of information maintained by Seller, Servicer or any other person or entity with respect to Underlying Assets. Records shall include the Mortgage Notes, any Mortgages and the Mortgage Files related to the Underlying Asset, the credit files related to the Underlying Asset and any other instruments necessary to document or service a Mortgage Loan.

"<u>Reference Time</u>" means, with respect to any setting of the then-current Benchmark, (1) if such Benchmark is Term SOFR, the time set forth in the definition of Term SOFR, and (2) if such Benchmark is not Term SOFR, the time determined by Buyer in accordance with the Benchmark Replacement Conforming Changes.

"<u>Refurbishment Loan Amounts</u>" means, with respect to any Construction Escrow Mortgage Loan, any future advances, escrows or holdbacks made in connection with the origination of the related Underlying Mortgage Loan and advanced in increments as certain benchmarks of construction, renovation or rehabilitation work by the related Mortgagor of the related Mortgaged Property securing such Underlying Mortgage Loan are completed in accordance with the terms of the Loan Documents (to the extent that the terms of the Loan Documents provide for such future advances, escrows or holdbacks).

"<u>Related Credit Enhancement</u>" has the meaning specified in <u>Section 34</u> hereof.

"<u>Related Parties</u>" means, with respect to any Person, such Person's Affiliates and the partners, directors, officers, employees, agents, trustees, administrators, managers, advisors and representatives of such Person and of such Person's Affiliates.

"<u>Relevant Governmental Body</u>" means the Board of Governors of the Federal Reserve System or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Board of Governors of the Federal Reserve System or the Federal Reserve Bank of New York or any successor thereto.

"<u>Remittance Date</u>" has the meaning set forth in the Pricing Side Letter for such term.

"<u>Remittance Report</u>" means a report containing servicing payment information, with respect to the Underlying Assets serviced by Seller or any Servicer for the immediately prior month or months (or any portion thereof), as applicable, including, without limitation, those fields acceptable to Buyer, on a loan-by-loan basis and in the aggregate.

"<u>REO Deed</u>" means the legal document or instrument required by the law of the jurisdiction in which the REO Property is located evidencing the fee interest in the REO Property.

"<u>REO Joinder Agreement</u>" means a joinder agreement pursuant to which an additional REO Subsidiary becomes party to this Agreement and the Pricing Side Letter in form and substance acceptable to Buyer in all respects.

"<u>REO Property</u>" means any Mortgaged Property with respect to which a Realization Event has been completed.

"<u>REO Subsidiary</u>" and "<u>REO Subsidiaries</u>" have the meaning specified in the preamble of this Agreement and shall include on a joint and several basis each other Person that becomes a party hereto as an Additional REO Subsidiary pursuant to an REO Joinder Agreement.

"<u>REO Subsidiary Certificate</u>" means, with respect to any REO Subsidiary, a certificate evidencing 100% of the REO Subsidiary Interests in such REO Subsidiary.

"<u>REO Subsidiary Interests</u>" means, with respect to any REO Subsidiary, any and all of the Capital Stock in such REO Subsidiary, including, without limitation, (i) all its rights to participate in the operation or management of such REO Subsidiary; (ii) all its rights to properties, assets, interests and distributions under the related Governing Documents in respect of such shares of limited liability company interest, (iii) all accounts receivable arising out of the related Governing Documents; (iv) all general intangibles arising out of the related Governing Documents; and (v) to the extent not otherwise included, all proceeds of any and all of the foregoing (including within proceeds, whether or not otherwise included therein, any and all contractual rights of the applicable Seller under any revenue sharing or similar agreement to receive all or any portion of the revenues or profits of such REO Subsidiary).

"<u>Reporting Date</u>" has the meaning set forth in the Pricing Side Letter for such term.

"<u>Repurchase Assets</u>" has the meaning set forth in <u>Section 34</u>.

"<u>Repurchase Date</u>" means the date occurring (either with respect to the Purchased Asset and all Underlying Assets, or solely with respect to the applicable Underlying Asset(s), as applicable) on the earliest of (a) the Termination Date, (b) the date determined by application of <u>Section 15</u>, (c) any Mandatory Early Repurchase Date relating to the contributory value of the applicable Underlying Asset to the Asset Margin Base being reduced to zero, (d) the date on which such Trust Interest is not an Eligible Trust Interest or such Underlying Asset is not an Eligible Underlying Asset, (e) the date determined pursuant to <u>Section 4</u> hereof, (f) with respect to any Permitted Delinquent Asset, the date that is two (2) years after the Permitted Delinquent Asset Conversion Date or (g) any other date on which Seller repurchases a Purchased Asset or Underlying Asset pursuant to the terms of this Agreement.

"<u>Repurchase Price</u>" means the price at which Seller is to repurchase the Purchased Assets or obtain the release of Underlying Assets subject to a Transaction from Buyer, on the Repurchase Date or at any other time specified in this Agreement, which will be determined in each case as the sum of the outstanding Purchase Price for such Purchased Asset or Underlying Assets, as applicable, and the accrued but unpaid Price Differential as of the date of such determination and any fees and expenses charged by Buyer and payable by Seller as set forth in the Pricing Side Letter (including any custodial fees) with respect to such Purchased Assets or Underlying Assets, less, without duplication and for clarity, any principal payments received by Buyer with respect to such Underlying Asset, including pursuant to <u>Section 7</u> and any Margin Deficit amounts paid by Seller pursuant to <u>Section 6</u>.

"<u>Requirements of Law</u>" means, with respect to any Person or property or assets of such Person and as of any date, all of the following applicable thereto as of such date: each Governing Document and all existing and future laws, statutes, rules, regulations, treaties, codes, ordinances, permits, certificates, orders and licenses of and interpretations by any Governmental Authority (including environmental laws, ERISA, Anti-Corruption Laws, Anti-Money Laundering Laws, Sanctions, regulations of the Board of Governors of the Federal Reserve System, and laws, rules and regulations relating to usury, licensing, truth in lending, fair credit billing, fair credit reporting, equal credit opportunity, fair debt collection practices and privacy), judgments, decrees, injunctions, writs, awards or orders of any court, arbitrator or other Governmental Authority.

"<u>Reserve Account</u>" means, with respect to an Underlying Asset, each account, if any, established at the related depository bank, by and in the name of a Seller or the Servicer, into which any interest, funded future advance, escrow (other than escrows for taxes and insurance) or other holdback amounts with respect to the applicable Underlying Assets shall be deposited.

"<u>Residual Pledge Agreement</u>" means that certain Residual Pledge Agreement, dated as of the date hereof, entered into by Rithm Loan Aggregation Trust, in favor of Buyer, as may be amended, restated, supplemented or otherwise modified from time to time in accordance with its terms.

"<u>Responsible Officer</u>" means as to any Person, (a) the manager, president, chief executive officer or, with respect to financial matters, the chief financial officer of such Person; and (b) such other officers or other representative of such Person as may be selected by Seller with notice to Buyer in writing.

"<u>Sale Proceeds</u>" means, with respect to the sale of a Mortgaged Property (or REO Property, as applicable) or an Underlying Asset, the net amounts paid in respect of the disposition of such Mortgaged Property (or REO Property, as applicable) or Underlying Asset after payment of customary and reasonable costs of such sale, which amounts shall be remitted directly to the applicable Collection Account.

"<u>Sanction</u>" or "<u>Sanctions</u>" means, individually and collectively, any and all economic or financial sanctions, trade embargoes and anti-terrorism laws imposed, administered or enforced from time to time by: (a) the United States of America, including those administered by OFAC, the U.S. State Department, the U.S. Department of Commerce, or through any existing or future Executive Order; (b) the United Nations Security Council; (c) the European Union; (d) the United Kingdom; or (e) any other Governmental Authority with jurisdiction over Seller Party or any of their Affiliates.

"<u>Sanctioned Target</u>" means any Person, group, sector, territory, or country that is the target of any Sanctions, including without limitation, any legal entity that is deemed to be the target of any Sanctions based upon the direct or indirect ownership or control of such entity by any other Sanctioned Target(s).

"<u>Seller</u>" has the meaning specified in the preamble of this Agreement.

"<u>Seller Party</u>" means each of Seller, each REO Subsidiary, if applicable, and Guarantor, or all of the foregoing, as the context requires.

"<u>Seller's Operating Account</u>" means, for Seller, the operating account identified in the Pricing Side Letter and established in the name of Seller into which Buyer will remit the Purchase Price in accordance with <u>Sections 3(d) and (e)</u>.

"<u>Servicer</u>" has the meaning set forth in the Pricing Side Letter for such term.

"<u>Servicer Notice and Agreement</u>" means each servicer notice or letter agreement, executed by Buyer, Seller and REO Subsidiary, as applicable, and a Servicer, in form and substance acceptable to Buyer in all respects.

"<u>Servicing Agreement</u>" means any asset management agreement, servicing agreement or sub-servicing agreement entered into by Guarantor or its Affiliate and a Servicer with respect to Underlying Assets.

"<u>Servicing Rights</u>" means, with respect to the Underlying Assets, all right, title and interest in and to any and all of the following: (a) rights to service and collect and make all decisions with respect to the Underlying Assets and any REO properties, (b) amounts received by any Person for servicing the Underlying Assets and REO properties, (c) late fees, penalties or similar payments with respect to the Underlying Assets and REO properties, (d) agreements and documents creating or evidencing any such rights to service, documents, files and records relating to the servicing of the Underlying Assets and REO properties, and rights of Seller or any other Person thereunder, (e) escrow, reserve and similar amounts with respect to the Underlying Assets and REO properties, if any, (f) rights to appoint, designate and retain any other servicers, sub-servicers, special servicers, agents, custodians, trustees and liquidators with respect to the Underlying Assets and REO properties, and (g) accounts and other rights to payment related to the Underlying Assets and REO properties.

"<u>SOFR</u>" means a rate per annum equal to the secured overnight financing rate for such Business Day published by the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate) on the website of the Federal Reserve Bank of New York, currently at http://www.newyorkfed.org (or any successor source for the secured overnight financing rate identified as such by the administrator of the secured overnight financing rate from time to time).

"<u>Special Purpose Entity</u>" means a Person, other than an individual, which is formed or organized solely for the purpose of holding, directly or indirectly, an ownership interest in one or more Trust Interests or Underlying Assets, does not engage in any business unrelated to the Underlying Assets, does not have any assets other than as otherwise expressly permitted by this Agreement or the other Program Agreements, has its own separate books and records and will not commingle its funds in each case which are separate and apart from the books and records of any other Person, and is subject to all of the limitations on the powers set forth in the Governing Documents of such Person as in effect on the date hereof, and holds itself out as a Person separate and apart from any other Person and otherwise complies with all of the covenants set forth in <u>Section 13(cc)</u> hereof in all material respects, in each case, except as prohibited by Requirements of Law.

"<u>Term SOFR</u>" means, with respect to any Transaction for any day, the Term SOFR Reference Rate for a tenor of three (3) months, as such rate is published by the Term SOFR Administrator for such day at 6:00 a.m. (New York City time); <u>provided</u>, <u>however</u>, if as of 5:00 p.m. (New York City time) on the applicable Pricing Rate Reset Date, the Term SOFR Reference Rate for the foregoing tenor has not been published by the Term SOFR Administrator and a Benchmark Replacement Date with respect to the Term SOFR Reference Rate has not occurred, then Term SOFR will be the Term SOFR Reference Rate for such tenor as published by the Term SOFR Administrator on the first preceding Business Day for which such Term SOFR Reference Rate for such tenor was published by the Term SOFR Administrator.

"<u>Term SOFR Administrator</u>" means CME Group Benchmark Administration Limited (CBA) (or a successor administrator of the Term SOFR Reference Rate selected by Buyer in its sole discretion).

"<u>Term SOFR Reference Rate</u>" means the forward-looking term rate based on SOFR.

"<u>Term SOFR Transaction</u>" means any Transaction with respect to which the Pricing Rate is determined with reference to Term SOFR.

"<u>Termination Date</u>" means the earliest to occur of (a) the date that Buyer has declared an Event of Default pursuant to <u>Section 15(a)</u> hereof (or a date on which an Event of Default as described in <u>Section 14(d)</u> has occurred), (b) any date on which the Funding Period has expired and no Transactions are then outstanding and (c) six (6) months after the date on which the Funding Period has expired.

"<u>Transaction</u>" has the meaning specified in <u>Section 1</u> hereof.

"<u>Transaction Request</u>" means a request from Seller to Buyer, in a form acceptable to Buyer in its sole discretion, to enter into a Transaction or to request Excess Funds.

"<u>Transfer Documents</u>" means, with respect to any Trust Interests, all applicable documents necessary to transfer all of Seller's right, title and interest in such Trust Interests to Buyer in accordance with the terms of this Agreement and the Trust Agreement.

"<u>Trust</u>" means R-Home Pass-Through Trust RTL-C, a New York common law trust.

"<u>Trust Agreement</u>" means that certain Pass-Through Trust Agreement, dated as of the date hereof, by and among Trustee, Seller and Guarantor, as the same may be amended, supplemented or otherwise modified from time to time.

"<u>Trust Certificate</u>" shall mean the original trust certificate that is executed and delivered pursuant to the Trust Agreement evidencing 100% of the beneficial interests in the Trust.

"<u>Trust Interests</u>" shall mean any and all beneficial interests in the Trust, including, without limitation, the beneficial interests in the Underlying Mortgage Loans and all rights to participate in the operation or management of the Trust and all rights to properties, assets, trust interests and distributions pursuant to the terms of the Trust Agreement in respect of such trust interests. "Trust Interests" also include all accounts receivable and general intangibles arising out of the Trust Agreement, and, to the extent not otherwise included, all proceeds of any and all of the foregoing (including within proceeds, whether or not otherwise included therein, any and all contractual rights of in, to and under any revenue sharing or similar agreement to receive all or any portion of the revenues or profits of the Trust).

"<u>Trust Receipt</u>" means any trust receipt or certification and related exception report issued by the Custodian pursuant to the Custodial Agreement.

"<u>Trustee</u>" means U.S. Bank Trust Company, National Association not in its individual capacity, but solely as trustee in respect of the Trust, and its permitted successors and assigns.

"<u>Unadjusted Benchmark Replacement</u>" means the applicable Benchmark Replacement excluding the Benchmark Replacement Adjustment with respect thereto.

"<u>Underlying Asset</u>" means any Underlying Mortgage Loan and/or any Permitted REO Asset that is subject to a Transaction.

"<u>Underlying Mortgage Loan</u>" means a Mortgage Loan, the legal title to which is held by the Trustee on behalf of the Trust and which Mortgage Loan (x) is listed on the related Mortgage Loan Schedule and (y) includes the related Mortgage Files for which the Custodian has been instructed to hold pursuant to the Custodial Agreement.

"<u>Underwriting Guidelines</u>" means the standards, procedures and guidelines of Seller for originating or acquiring Mortgage Loans, or Seller approved originator guidelines, in either case, as set forth in the written policies and procedures of Seller or the related Approved Originators, that were previously provided to Buyer and such other guidelines as are identified and approved in writing by Buyer, which approval will not be unreasonably withheld, conditioned or delayed. Seller shall provide updated Seller guidelines and/or Approved Originator guidelines to Buyer and Buyer shall approve (acting reasonably) such updated guidelines prior to entering into Transactions under such updated guidelines.

"<u>Uniform Commercial Code</u>" means the Uniform Commercial Code as in effect on the date hereof in the State of New York or the Uniform Commercial Code as in effect in the applicable jurisdiction.

"<u>United States Person</u>" means any Person that is a "United States person" as defined in Section 7701(a)(30) of the Code.

"<u>Unwind Rights</u>" means, with respect to the Trust, Buyer's right after the occurrence of an Event of Default to (i) unilaterally dissolve, wind up, liquidate, call or otherwise terminate the Trust and (ii) acquire or liquidate, transfer or otherwise dispose of (either directly or by instructing the Trustee pursuant to the terms of the Trust Agreement) the related Underlying Mortgage Loans (or the interests of the Trustee on behalf of the Trust in such Underlying Mortgage Loans), in each case, without any further action or approval by any Seller Party or the Trustee.

"U.S. Tax Compliance Certificate" has the meaning specified in <u>Section 10(g)(ii)(b)</u> hereof.

"<u>Utilization Threshold Trigger Event</u>" has the meaning set forth in the Pricing Side Letter for such term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Headings are for convenience only and do not affect interpretation. The singular includes the plural and conversely. Where a word or phrase is defined, its other grammatical forms have a corresponding meaning. A reference to a Section, Subsection, Paragraph, Subparagraph, Clause, Annex, Schedule or Exhibit is, unless otherwise specified, a reference to a Section, Subsection, Paragraph, Subparagraph or Clause of, or Annex, Schedule or Exhibit to, this Agreement, all of which are hereby incorporated herein by this reference and made a part hereof. The word "any" is not limiting and means "any and all" unless the context clearly requires or the language provides otherwise. In the computation of periods of time from a specified date to a later specified date, the word "from" means "from and including," the words "to" and "until" each mean "to but excluding," and the word "through" means "to and including." The words "will" and "shall" have the same meaning and effect. A reference to day or days without further qualification means calendar days. Unless the context otherwise clearly requires, all accounting terms not expressly defined herein shall be construed in accordance with GAAP, and all accounting determinations, financial computations and financial statements required hereunder shall be made in accordance with GAAP, without duplication of amounts, and on a consolidated basis with all subsidiaries. If at any time any change in GAAP would affect the computation of any covenant (including the computation of any financial covenant) set forth in this Agreement or any other Program Agreement, Seller and Buyer shall negotiate in good faith to amend such covenant to preserve the original intent in light of such change; <u>provided</u>, that, until so amended, (i) such covenant shall continue to be computed in accordance with the application of GAAP prior to such change and (ii) Seller shall provide to Buyer a written reconciliation in form and substance satisfactory to Buyer, between calculations of such covenant made before and after giving effect to such change in GAAP. Any definition of or reference to any agreement (including any Program Agreement), instrument or other document shall be construed as referring to such agreement, instrument or other document as amended, supplemented, modified and/or restated from time to time (subject to any restrictions on such amendments, supplements or modifications set forth herein or in any other Program Agreement) and shall include all exhibits, schedules, annexes and other attachments thereto. Any reference to any law shall include all statutory and regulatory provisions consolidating, amending, replacing or interpreting such law and any reference to any law or regulation shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Program; Initiation of Transactions</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) From time to time during the Funding Period, in the sole discretion of Buyer, Buyer may enter into Transactions with Seller and subsequent increases (including Future Advance Purchases) (and corresponding decreases, as applicable) in the Purchase Price thereof in connection with subsequent Transactions relating (i) to the contribution of additional Underlying Mortgage Loans into the Trust or (ii) Buyer's purchase from the Seller of Purchased Assets consisting of Permitted REO Assets. ***This Agreement is not a commitment by Buyer to enter into Transactions with Seller but rather sets forth the procedures to be used in connection with periodic requests for Buyer to enter into Transactions with Seller. Seller hereby acknowledges that (i) Buyer is under no obligation to agree to enter into, or to enter into, any Transaction pursuant to this Agreement and (ii) with respect to any Underlying Asset for which less than the full principal amount has been funded by Seller as of the Purchase Date therefor, Buyer's agreement to enter into a Transaction with respect to such Underlying Asset on such Purchase Date shall in no way obligate Buyer to make any additional advance with respect thereto unless Buyer agrees, in its sole and absolute discretion, to make such additional advance in accordance with this Agreement***. All Underlying Assets proposed to be sold by Seller to Buyer or contributed to the Trustee on behalf of the Trust shall exceed or meet the Underwriting Guidelines and shall be serviced by Servicer on behalf of Buyer or Trustee on behalf of the Trust for the benefit of Buyer, as applicable. No Transaction shall be entered into if (i) any Margin Deficit, Default or Event of Default exists or would exist as a result of such Transaction; (ii) the Repurchase Date for the Purchased Assets or Underlying Assets subject to such Transaction would be later than the Termination Date; or (iii) after giving effect to such Transaction, the Aggregate Purchase Price then outstanding would exceed the Maximum Aggregate Purchase Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With respect to each Transaction, the Seller shall provide notice of a proposed sale and comply with the procedures set forth in this Agreement. ***Following receipt of such request, Buyer may enter into such requested Transaction or may notify Seller of its intention not to enter into such Transaction for any reason.*** Seller may request a Transaction hereunder on any Business Day during the Funding Period by delivering to Buyer a Transaction Request, which Transaction Request must be received by Buyer prior to 10:00 a.m. (New York City time) at least two (2) Business Days prior to the requested Purchase Date (or such later time as agreed to by the Buyer); <u>provided</u>, that such proposed Purchase Date shall be no earlier than two (2) Business Days after the Origination Date of the related Mortgage Loan. Upon receipt of a Transaction Request, Buyer may, upon satisfaction of all applicable conditions precedent set forth in <u>Section 9</u> hereof and provided that no Default or Event of Default shall have occurred and be continuing, enter into such Transaction with Seller on the requested Purchase Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event that Seller requires the return of any Collateral Documents, upon its execution of a release pursuant to the terms of the Custodial Agreement, Buyer may authorize the Custodian to deliver any Collateral Documents to Seller for correction pursuant to the terms of the Custodial Agreement. The Seller shall be fully liable for any failure or delay in the return or handling of any documents delivered to Seller in accordance with the terms of such release.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Upon the satisfaction of the applicable conditions precedent set forth in <u>Section 9</u> hereof, all of the Seller's right, title and interest in the Purchased Assets shall pass to Buyer, subject to the terms of this Agreement, on the Purchase Date, upon the transfer of the Purchase Price to such Seller. The Purchased Assets shall be sold by the applicable Seller to Buyer on a servicing-released basis. Upon transfer of the Purchased Assets to Buyer as set forth in this Section and until termination of any related Transactions as set forth in <u>Section 4</u> or <u>15</u> of this Agreement, ownership of each Purchased Asset, including each document in the related Mortgage File and Records, is vested in Buyer subject to the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In connection with the release of any Refurbishment Loan Amount, Buyer may, in its sole discretion, agree to increase the Purchase Price with respect to the Purchased Asset relating to such Underlying Asset upon receipt of the related evidence required under <u>Section 9(c)</u> and satisfaction of the applicable conditions precedent in <u>Section 9(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Subject to <u>Section 6</u> of this Agreement, at any time prior to the Repurchase Date, in the event a future advance is to be made pursuant to the Loan Documents with respect to a Future Advance Underlying Mortgage Loan, Seller may submit to Buyer a request, in the form of a Transaction Request, that Buyer transfer cash to Seller in an amount not to exceed the applicable Asset Margin Base, multiplied by the amount of such future advance (a "<u>Future Advance Purchase</u>"), which Future Advance Purchase shall increase the outstanding Purchase Price for the Eligible Trust Interest relating to such Future Advance Underlying Mortgage Loan. Buyer may, in its sole discretion, transfer cash to Seller as provided in this <u>Section 3(f)</u> (and in accordance with the wire instructions provided by Seller in such request) on the date requested by Seller, which date shall be no earlier than two (2) Business Days including the Business Day on which Buyer reasonably determines that the conditions precedent to Buyer's determination to make any Future Advance Purchase as set forth in this <u>Section 3(f)</u> have been satisfied (or, in Buyer's sole discretion, waived). Each Future Advance Purchase shall be deemed uncommitted in accordance with the terms specified in <u>Section 3(a)</u>. It shall be a condition to Buyer's determination to make any Future Advance Purchase that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no Margin Deficit, Default or Event of Default has occurred and is continuing or will result from the funding of such Future Advance Purchase;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no circumstance shall exist or event have occurred resulting in a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the funding of the Future Advance Purchase will not cause the aggregate outstanding Purchase Price of all Purchased Assets to exceed the Maximum Aggregate Purchase Price;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Future Advance Purchase will not cause the Purchase Price of the Eligible Trust Interest relating to the applicable Future Advance Underlying Mortgage Loan to exceed any relevant Concentration Sublimit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Seller shall have demonstrated to Buyer's reasonable satisfaction that all conditions to the future advance under the Loan Documents have been satisfied or waived;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) previously or simultaneously with Buyer's funding of the Future Advance Purchase, Seller shall have funded or caused to be funded to the Mortgagor (or to an escrow agent or as otherwise directed by the Mortgagor) the amount of such Future Advance Purchase in respect of such Future Advance Underlying Mortgage Loan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) if Seller shall have established and fully funded a holdback account for each such Future Advance Underlying Mortgage Loan with all amounts necessary to fund the maximum borrowings under such loan, such holdback account shall be transferred to the Trustee on behalf of the Trust and if the loan permits future advances, all rights relating to such future advances shall be transferred to the Trustee on behalf of the Trust as they are made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Repurchase</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Seller shall repurchase the related Purchased Assets and/or related Underlying Assets (or portions thereof relating to individual Mortgaged Properties) from Buyer on each related Repurchase Date at the related Repurchase Price (or allocable portion thereof in connection with a Mortgaged Property Release). Such obligation to repurchase exists without regard to any prior or intervening liquidation or foreclosure with respect to any Underlying Asset (but liquidation or foreclosure proceeds received by Buyer shall be applied to reduce the Repurchase Price (or allocable portion thereof in connection with a Mortgaged Property Release) for such Underlying Asset on each related Repurchase Date with any excess remitted to Seller unless a Default or Event of Default has occurred). Seller is obligated to repurchase and take physical possession of the Purchased Assets (and the related Underlying Assets) from Buyer or its designee (including the Custodian) at Seller's expense on the related Repurchase Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Seller may terminate any Transaction or portion thereof with respect to any or all Purchased Asset or individual Underlying Assets or Mortgaged Properties related thereto and repurchase such Purchased Assets (or portions thereof) and the related Underlying Assets on any date prior to the Repurchase Date (an "<u>Early Repurchase Date</u>"); <u>provided</u>, that;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Seller notifies Buyer at least two (2) Business Days before the proposed Early Repurchase Date identifying the Underlying Asset(s) (or portions thereof) to be repurchased and Seller's calculation of the Repurchase Price (or Allocated Repurchase Price, as applicable) thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) contemporaneously with such termination, Seller pays to Buyer via the applicable Collection Account (A) if such repurchase occurs prior to the occurrence of a Utilization Threshold Trigger Event, the related Repurchase Price (or Allocated Repurchase Price, as applicable), in full, or (B) if such repurchase occurs following the occurrence of a Utilization Threshold Trigger Event, the greater of (x) the related Repurchase Price (or Allocated Repurchase Price, as applicable) and (y) 100% of the Sale Proceeds with respect to such Underlying Asset (or portions thereof) or related Mortgaged Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) unless Seller is repurchasing all Purchased Assets in full, Seller delivers a certificate from a Responsible Officer of Seller in form and substance satisfactory to Buyer certifying that no Margin Deficit, Default or Event of Default exists or would exist as a result of such repurchase;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) [reserved];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Seller thereafter complies with <u>Section 4(c)</u> hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) in the case of a Mortgaged Property Release or the release of any individual REO Property, (x) either (1) except with respect to the release of an individual REO Property, Buyer shall have consented in writing to the release of such Mortgaged Property from the Underlying Asset or (2) such Mortgaged Property Release or release of such individual REO Property is required or permitted by the related Loan Documents, and (y) the related Underlying Asset is, after giving effect to the release of the repurchased Mortgaged Property or Mortgaged Properties (or individual REO Property, as applicable), in compliance with the applicable representations and warranties set forth on <u>Schedule 1-A</u> or <u>1-B</u> hereto, as applicable; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) in connection with a Mortgaged Property Release or the release of such individual REO Property, Seller thereafter delivers to Buyer or the Custodian a copy of the updated Mortgage or partial release of Mortgage or REO Deed, as applicable, that will be delivered to the recording office for such Underlying Asset reflecting the removal of the released Mortgaged Property, and thereafter, a copy of the recorded Mortgage or partial release promptly upon receipt thereof from the applicable recording office.

Such early terminations and repurchases shall be limited to three (3) occurrences in any calendar week (excluding any Mandatory Early Repurchases or repurchase required pursuant to <u>Section 15</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) With respect to payments in full by the related Mortgagor of an Underlying Asset, Seller shall promptly (and in any event within one (1) Business Day) provide Buyer with a copy of a report from Servicer indicating that such Underlying Asset has been paid in full, and promptly remit to the applicable Collection Account the positive difference (if any) of the Repurchase Price due with respect to the Purchased Asset related to such Underlying Asset over the prepayment amount remitted to the applicable Collection Account pursuant to <u>Section 7(d)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Upon Buyer receiving (i) prior the occurrence and continuation of an Event of Default, the related Repurchase Price or Allocated Repurchase Price, as applicable, or (ii) upon the occurrence and continuation of an Event of Default, the greater of (A) all Obligations allocable to the related Underlying Asset(s) and (B) all proceeds received with respect to the satisfaction, sale or other disposition of the related Underlying Asset (if applicable), in connection with the repurchase of a Purchased Asset (or the release of Underlying Assets allocable to such Purchased Asset), Buyer agrees to release any interest (including its ownership interest and any security interest) hereunder in such Purchased Asset and/or Underlying Assets, as applicable. Upon repurchase of all Purchased Assets and the payment in full of all of unpaid Obligations (other than unmatured indemnification Obligations), Seller may elect to terminate this Agreement without prepayment premium, fee or penalty, and Buyer shall deliver to Seller termination statements and other documents necessary or appropriate to evidence the termination of any Liens securing payment of the Obligations, all at the expense of Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Buyer may, in its sole and absolute discretion, initiate the termination of the Funding Period by delivering six (6) months' prior written notice of the termination of the Funding Period to Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Upon written notice from Buyer to Seller that the Asset Margin Base with respect to any Underlying Asset has been reduced to zero, Seller shall repurchase such Underlying Asset in accordance with the timing set forth in <u>Section 6(b)</u> hereof (such repurchase, a "<u>Mandatory Early Repurchase</u>" and the date of such repurchase, a "<u>Mandatory Early Repurchase Date</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Price Differential</u>

Notwithstanding that Buyer and Seller intend that the Transactions hereunder be a sale to Buyer of the Purchased Assets, Seller shall pay to Buyer the accrued and unpaid value of the Price Differential for the preceding Pricing Periods on each Remittance Date. The Pricing Rate shall be reset on each Pricing Rate Reset Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Margin Maintenance</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Mortgaged Property Valuation</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) On or prior to the Purchase Date relating to any Underlying Asset, Seller shall provide Buyer with (i) other than in the case of any Construction Escrow Mortgage Loan, either (A) an interior "as-is" Broker Price Opinion or (B) an Evaluation/Appraisal with respect to the related Mortgaged Property and (ii) the As-Is Value, After Rehabilitation Value, and "as-is" land value for each Underlying Asset, dated no more than six (6) months prior to the related Purchase Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) With respect to each Underlying Asset that has been subject to a Transaction for more than three hundred sixty (360) days (or, with respect to each Underlying Asset that is a Permitted Delinquent Asset, more than six (6) months) from its Purchase Date (or since Seller's last delivery of a new interior Broker Price Opinion or Evaluation/Appraisals pursuant to this clause (2)), Seller shall provide Buyer with (i) either (A) an interior "as-is" Broker Price Opinion or (B) an Evaluation/Appraisal with respect to the related Mortgaged Property and (ii) the As-Is Value, After Rehabilitation Value, and "as-is" land value for each Underlying Asset, in each case, dated no more than six (6) months prior to such delivery date, to be conducted by a vendor approved by Buyer and at Seller's expense, whereupon the related Broker Price Opinion Value or Evaluation/Appraisal Value shall be evaluated by Buyer in Buyer's commercially reasonable discretion to determine the Asset Margin Base of such Underlying Asset; <u>provided</u>, <u>however</u>, to the extent Seller and Buyer disagree as to the valuation of an Underlying Asset, the determination of the Asset Margin Base with respect to such Underlying Asset shall be mutually agreed upon by Seller and Buyer.

If on any date (i) the Aggregate Purchase Price of all Purchased Assets is greater than the Margin Base of all Underlying Assets subject to Transactions (such difference, a "<u>Margin Deficit</u>") by an amount in excess of $250,000 and (ii) either (A) such Margin Deficit exceeds five percent (5%) of the Aggregate Purchase Price of all Purchased Assets subject to Transactions under this Agreement, (B) such Margin Deficit remains in excess of $250,000 for a period of ninety (90) days, (C) clause (b) of the Concentration Sublimit (as set forth in the Pricing Side Letter) is then being exceeded, or (D) in connection with the conversion of any individual Underlying Asset from a delinquent Underlying Mortgage Loan to a Permitted Delinquent Asset hereunder, the outstanding Purchase Price allocated to such Underlying Asset exceeds (or will exceed, after giving effect to such conversion) the Asset Margin Base (calculated with respect such individual Underlying Asset) for such Underlying Asset, then Buyer may in its sole discretion, by notice to Seller, require Seller to transfer to Buyer cash, or, if no Event of Default has occurred and is continuing, at Seller's option with Buyer's consent, which may be withheld in Buyer's sole discretion, require Seller to contribute to the Trustee on behalf of the Trust additional Underlying Assets the characteristics of which meet all applicable Buyer eligibility requirements then-applicable to Underlying Assets, in accordance with the timing set forth in <u>Section 6(b)</u>, so that the cash and Margin Base of all Underlying Assets will thereupon equal or exceed the Aggregate Purchase Price thereof (such requirement upon such notice, a "<u>Margin Call</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notice delivered pursuant to <u>Section 6(a)</u> may be given by any written or electronic means. Any such notice given on or before 10:00 a.m. (New York City time) on a Business Day shall be met, and the related Margin Call satisfied, no later than 5:00 p.m. (New York City time) on the immediately succeeding Business Day; any such notice given after 10:00 a.m. (New York City time) on a Business Day shall be met, and the related Margin Call satisfied, no later than 5:00 p.m. (New York City time) on the second (2<sup>nd</sup>) Business Day after the Business Day on which such notice is received; <u>provided</u> that if the amount of such Margin Call exceeds the total cash then available to Seller and Guarantor, then Seller shall notify Buyer of the same and (i) no later than 5:00 p.m. (New York City time) on the first (1<sup>st</sup>) Business Day after the Business Day on which such notice of Margin Call is received, Seller and Guarantor shall each transfer to Buyer all of its respective available cash, to be applied by Buyer in reduction of the related Margin Deficit, (ii) no later than 5:00 p.m. (New York City time) on the second (2<sup>nd</sup>) Business Day after the Business Day on which such notice of Margin Call is received, Guarantor shall (x) make capital calls under its organizational documents in an amount equal to or greater than the remaining Margin Deficit and (y) provide Buyer with copies of all notices and requests delivered with respect thereto and (iii) no later than 5:00 p.m. (New York City time) on the twelfth (12<sup>th</sup>) Business Day after the Business Day on which such notice of Margin Call is received, Seller shall transfer additional cash to Buyer in an amount sufficient to satisfy the remaining Margin Deficit, provided that the failure of any investor to honor a capital call made by Guarantor shall not excuse Seller from its obligation to satisfy the related Margin Call in accordance with this Agreement or relieve Guarantor from any of its obligations under the Guaranty, as applicable, and such obligations shall remain absolute notwithstanding any such failure. The failure of Buyer, on any one or more occasions, to exercise its rights hereunder, shall not change or alter the terms and conditions to which this Agreement is subject or limit the right of Buyer to do so at a later date. Seller and Buyer each agree that a failure or delay by Buyer to exercise its rights hereunder shall not limit or waive Buyer's rights under this Agreement or otherwise existing by law or in any way create additional rights for Seller. Any late payments related to Seller's failure to pay a Margin Deficit shall accrue interest at the Post Default Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event a Margin Deficit exists, Buyer shall retain any funds received by it to which Seller would otherwise have been entitled hereunder and shall be applied by Buyer to satisfy such Margin Deficit prior to any remittances to Seller pursuant to <u>Section 7(b)</u>. Notwithstanding the foregoing, Buyer retains the right, in its sole discretion, to make a Margin Call in accordance with the provisions of this <u>Section 6</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event Seller makes a payment hereunder to satisfy a Margin Deficit with respect to a particular Underlying Asset allocable to a Purchased Asset pursuant to this <u>Section 6</u>, Buyer shall apply such amounts to the Repurchase Price for such Underlying Asset and such amount shall reduce the Price Differential calculated with respect to such Underlying Asset. In the event Seller makes a payment hereunder to satisfy a Margin Deficit with respect to all Underlying Assets pursuant to this <u>Section 6</u>, Buyer shall apply such amounts to the Repurchase Price for all Underlying Assets (*pro rata* based on the outstanding principal balances thereof) and such amounts shall reduce the Price Differential calculated with respect to all Underlying Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Income Payments</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If Income is paid in respect of any Underlying Asset during the term of a Transaction, such Income shall be the property of Buyer, subject to the terms hereof, and shall be deposited in the Principal Collection Account or Interest Collection Account, as applicable, by either Seller or Servicer in accordance with <u>Section 7(d)</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Amounts deposited in the Collection Accounts, the Interest Reserve Account or otherwise relating to the Underlying Assets, including those payments contemplated in <u>Sections 6</u> and <u>7(a)</u> above, shall be applied on each Remittance Date as follows; <u>provided</u>, that amounts on deposit in the Interest Reserve Account shall not be available for application pursuant to clauses <u>First</u>, <u>Fifth</u>, <u>Eighth</u> or, other than in the case of a remittance of funds in the Interest Reserve Account to Seller in accordance with <u>Section 7(g)</u>, clause <u>Ninth</u> below:

<u>First</u>, to the Servicer, payment of any fees related to the servicing of the Underlying Assets under the Servicing Agreement;

<u>Second</u>, to each of the Custodian, the Trustee, the Bank and any applicable depository bank, *pro rata*, on account of any accrued and unpaid indemnities, fees and expenses incurred in connection with the applicable Program Agreements (but in no event shall the fees paid to Trustee pursuant to this clause Second in any calendar year exceed the Trustee Fee (as defined in the Trust Agreement, which shall initially be $15,000 per year) as may be modified by the Trustee and the Trust Depositor, with the consent of Buyer);

<u>Third</u>, to Buyer for the payment of the outstanding Price Differential with respect to all Purchased Assets then due and owing by Seller under this Agreement;

<u>Fourth</u>, to Buyer for the payment of related costs and expenses and any other amounts then due and owing under this Agreement (including, without limitation, any unpaid or outstanding Fees), including reasonable fees and expenses of Buyer's agents and counsel, and all expenses, liabilities and advances made or incurred by or on behalf of Buyer in connection therewith;

<u>Fifth</u>, to Buyer to reduce the outstanding Purchase Price for all Purchased Assets by an amount sufficient to eliminate any outstanding Margin Deficit and Seller's obligation to satisfy such Margin Deficit (without limiting Seller's obligation to satisfy such Margin Deficit in a timely manner as required by <u>Section 6</u> to the extent not otherwise satisfied);

<u>Sixth</u>, upon the occurrence and continuance of an Interest Reserve Trigger Event, an amount sufficient to fund the Interest Reserve Account up to the Interest Reserve Amount (to the extent not previously funded pursuant to <u>Section 7(g)</u> hereof);

<u>Seventh</u>, upon the occurrence and continuation of an Event of Default, a Utilization Threshold Trigger Event or the end of the Funding Period, to Buyer to reduce the outstanding Purchase Price for all Purchased Assets;

<u>Eighth</u>, without duplication of payments made under clauses <u>Third</u> or <u>Fourth</u> above, to Buyer for the payment of any other amounts then due and owing by a Seller Party to Buyer under any other instrument or agreement, in accordance with <u>Section 22</u>; and

<u>Ninth</u>, to Seller, any remainder, by remittance to Seller's Operating Account (as instructed by the Seller).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event (i) an Event of Default has occurred and is continuing, or (ii) the Funding Period has ended, Buyer shall distribute to Seller its share of Income received with respect to each Underlying Asset only after all Obligations under this Agreement and the other Program Agreements and any other amounts then due and owing to Buyer or any of its Affiliates under any arrangement between Seller and Buyer or any of Buyer's Affiliates have been paid in full.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Seller shall cause Servicer to deposit any Income into the applicable Collection Account within two (2) Business Days of Servicer's receipt and identification thereof; <u>provided</u> that for the purposes of this <u>Section 7(d)</u> receipt of any such payment shall be deemed to have occurred only upon the dates on which the relevant funds clear the applicable account of Servicer and are available to transfer to Buyer. No amounts deposited into a Collection Account, any Interest Reserve Account or any Reserve Account shall be removed by Sellers or Servicer, except as otherwise set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding anything to the contrary set forth herein, to the extent that any Income is not deposited in the applicable Collection Account as required pursuant to the foregoing <u>clause (d)</u>, upon actual knowledge of Seller or notice by Buyer to Seller of such failure, Seller shall within one (1) Business Day remit (or cause to be remitted) to the applicable Collection Account any such Income received by Servicer or Seller on the Underlying Assets in accordance with the foregoing <u>clause (d)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) On or prior to each Remittance Date, Buyer will provide notice to Seller if there are insufficient proceeds after application of the priority of payments to pay the applicable Facility Monthly Payment. To the extent that there are insufficient proceeds in the Collection Accounts to satisfy the Facility Monthly Payment, Seller shall pay Buyer any amounts in respect of the Facility Monthly Payment (or any shortfall) on each Remittance Date within one (1) Business Day of receipt of such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Upon the occurrence and continuance of an Interest Reserve Trigger Event, Seller shall deposit or cause to be deposited into the Interest Reserve Account an amount sufficient to fund the Interest Reserve Account up to the Interest Reserve Amount within three (3) Business Days' of receipt of notice from Buyer regarding the occurrence of an Interest Reserve Trigger Event; <u>provided</u> that if, as of any subsequent Remittance Date, (i) no Event of Default has occurred and is continuing, (ii) no Margin Deficit then exists, and (iii) the Interest Coverage Ratio equals or exceeds 1.2:1.0 for three (3) consecutive Pricing Periods, then, upon Seller's request, Buyer shall instruct Bank to remit all funds on deposit in the Interest Reserve Account to Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Prior to the termination of the Funding Period and provided no Default or Event of Default is continuing, to the extent that there are sufficient proceeds in the Collection Accounts as of any date of determination to satisfy the expected Facility Monthly Payment on the immediately succeeding Remittance Date (as determined by Buyer in its sole discretion), Seller may from time to time request that any such proceeds in excess of such expected Facility Monthly Payment (such funds, the "<u>Excess Funds</u>") be released to Seller by submitting to Buyer a Transaction Request requesting such Excess Funds and Buyer may release the Excess Funds to Seller upon such request. Seller may request only one (1) such release of Excess Funds per week with at least three (3) Business Days' advance notice to Buyer. Each requested amount of Excess Funds to be released pursuant to this <u>Section 7(h)</u> must be greater than or equal to $100,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Payment and Transfer</u>

Unless otherwise mutually agreed in writing, all transfers of funds to be made by Seller hereunder shall be made in Dollars, in immediately available funds, without deduction, set-off or counterclaim, to Buyer at the applicable Collection Account, the Interest Reserve Account or such other account as Buyer shall specify to Seller in writing. Each Reserve Account, if any, shall be subject to a Deposit Account Control Agreement. Seller acknowledges and agrees that each Collection Account, the Interest Reserve Account and each Reserve Account are subject to the sole dominion, control and discretion of Buyer (including, without limitation, "control" within the meaning of Section 9-104(a) of the Uniform Commercial Code), its authorized agents or designees, including the Bank and any other deposit bank at which each Collection Account, the Interest Reserve Account and each Reserve Account are maintained, subject to the terms hereof and the related Deposit Account Control Agreement, as applicable. Seller and Buyer acknowledge and agree that each Collection Account, the Interest Reserve Account and each Reserve Account constitute, and shall be treated as, a "deposit account" within the meaning of Section 9-102(a)(29) of the Uniform Commercial Code. Seller acknowledges that it has no rights of withdrawal from the Collection Accounts. All Purchased Assets (and all Underlying Assets allocated to the Trust Interests) shall be evidenced by a Trust Receipt. Any Repurchase Price received by Buyer in the Collection Accounts after 2:00 p.m. (New York City time) shall be deemed received on the next succeeding Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Conditions Precedent</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Initial Transaction</u>. As conditions precedent to the initial Transaction, Buyer shall have received on or before the day of such initial Transaction the following, in form and substance satisfactory to Buyer and duly executed by the Seller Parties and each other party thereto (as applicable)(except in each case to the extent that such conditions precedent are waived by Buyer in writing):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) <u>Program Agreements</u>. The Program Agreements duly executed and delivered by the parties thereto and being in full force and effect, free of any modification, breach or waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) <u>Security Interest</u>. Evidence that all other actions necessary or, in the opinion of Buyer, desirable to perfect and protect (a) Buyer's interest in the Purchased Assets and the other Repurchase Assets have been taken, including, without limitation, duly authorized and filed Uniform Commercial Code financing statements on Form UCC-1 and (b) the pledge by the Trustee on behalf of the Trust to the Buyer, subject to the terms of the Pledge Agreement, of all of the Trustee on behalf of the Trust's right, title and interest in and to the Underlying Mortgage Loans, the Repurchase Assets and all proceeds thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) <u>Governing Documents</u>. A certificate of an officer of each Seller Party attaching certified copies of such party's Governing Documents and company resolutions approving the Program Agreements to which it is a party and transactions thereunder (either specifically or by general resolution) and all documents evidencing other necessary company action or governmental approvals as may be required in connection with the Program Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) <u>Good Standing Certificate</u>. A certified copy of a good standing certificate from the jurisdiction of organization of each Seller Party, each dated as of no earlier than the date that is ten (10) days prior to the Effective Date with respect to the initial Transaction hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) <u>Incumbency Certificate</u>. An incumbency certificate of an authorized representative of each Seller Party and Trustee, certifying the names, true signatures and titles of the representatives duly authorized to request transactions hereunder and to execute the Program Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) <u>Underwriting Guidelines</u>. A true, correct and complete copy of the Underwriting Guidelines certified by a Responsible Officer of Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) <u>Legal Opinions</u>. Seller shall provide such opinions from counsel to each Seller Party and Trustee as Buyer may require in its discretion, including with respect to corporate authority, enforceability, non-contravention with applicable law, perfection of security interests, the Investment Company Act of 1940, as amended, true sale matters and the applicability of Bankruptcy Code safe harbors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) <u>Fees</u>. Payment of any fees due to Buyer with respect to each Transaction hereunder including, without limitation, any Fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) <u>Collection Account</u>. Evidence that each Collection Account has been established.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) <u>Anti-Corruption Laws, Anti-Money Laundering Laws, Etc.</u> Buyer has completed to its satisfaction such due diligence (including, Buyer's "Know Your Customer", Anti-Corruption Laws, Sanctions and Anti-Money Laundering Laws diligence) and modeling as Buyer may require**.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) <u>Due Diligence Review</u>. Buyer shall have completed, to its satisfaction, its due diligence review of each Seller Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) <u>Assignment</u>. True and correct copies of the Mortgage Loan Purchase Agreement and Accession Agreement, together with any applicable assignment agreements, if any, with respect to the applicable Mortgage Loan(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13) <u>[Reserved]</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14) <u>Trust Certificate</u>. Seller shall have delivered to the Buyer the original Trust Certificate registered in the name of the Buyer, together with all related Transfer Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>All Transactions</u>. Buyer's willingness to enter into each Transaction (including without limitation the initial Transaction and any Transaction in respect of a Purchase Price Increase) pursuant to this Agreement is subject to the following conditions precedent (except in each case to the extent that such conditions precedent are waived by Buyer in writing):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) <u>Due Diligence Review</u>. Without limiting the generality of <u>Section 31</u> hereof, Buyer shall have completed, to its satisfaction, its due diligence review of the Purchased Assets and Underlying Assets and each Seller Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) <u>Required Documents</u>. The Mortgage File shall have been delivered to the Custodian. Additionally, Buyer shall have determined that the related Loan Documents are reasonably acceptable to Buyer in its discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) <u>Transaction Documents</u>. Buyer or its designee shall have received the following, in form and substance satisfactory to Buyer and (if applicable) duly executed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A Transaction Request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The related Mortgage Loan Schedule and Trust Receipt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any other document required to be delivered by Buyer in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Such certificates, opinions of counsel or other documents as Buyer may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) <u>No Default, Event of Default or Margin Deficit</u>. Immediately before such Transaction and after giving effect thereto and to the intended use of the proceeds thereof, no Default, Event of Default or Margin Deficit exists (unless the related Transaction cures the same).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) <u>Requirements of Law</u>. Buyer shall not have determined that the introduction of or a change in any Requirements of Law or in the interpretation or administration of any Requirements of Law applicable to Buyer has made it unlawful, and no Governmental Authority shall have asserted that it is unlawful, for Buyer to enter into the Transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) <u>Representations and Warranties</u>. Both immediately prior to the related Transaction and also after giving effect thereto and to the intended use of the proceeds thereof, the representations and warranties (excluding the representations and warranties set forth on <u>Schedule 1-A</u> or <u>1-B</u>, which shall relate only to the specific Underlying Assets relating a Transaction) made by Seller in each Program Agreement shall be true, correct and complete on and as of such Purchase Date in all material respects with the same force and effect as if made on and as of such date (or, if any such representation or warranty is expressly stated to have been made as of a specific date, as of such specific date).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) <u>Fees</u>. Payment of any fees due to Buyer hereunder with respect to such Transaction, including, without limitation, any Fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) <u>No Material Adverse Effect</u>. There shall not have occurred a material adverse change in the financial condition of Buyer that causes, or would be likely to cause, a material adverse effect on the ability of Buyer to fund its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) <u>Evaluation/Appraisal; Broker Price Opinion</u>. Buyer shall have received a Broker Price Opinion or an Evaluation/Appraisal to the extent required with respect to each related Mortgaged Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) <u>Instruction Letters</u>. Seller shall have delivered a duly executed Servicer Notice and Agreement with respect to each Servicer related to the Underlying Assets subject to such Transaction, except as waived by Buyer in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) A<u>nti-Corruption Laws and Anti-Money Laundering Laws</u>. Buyer shall have received documentation in form and substance satisfactory to Buyer evidencing that each Seller Party complies with applicable Anti-Corruption Laws and Anti-Money Laundering Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) <u>Assignment</u>. To the extent not already provided pursuant to <u>Section 9(a)(12)</u>, true and correct copies of the Mortgage Loan Purchase Agreement and Accession Agreement, together with any applicable assignment agreements, if any, with respect to the applicable Mortgage Loan(s) and/or Permitted REO Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13) <u>Funding Period</u>. The Funding Period shall not have terminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14) <u>Maximum Aggregate Purchase Price</u>. The Aggregate Purchase Price of all Transactions does not exceed the Maximum Aggregate Purchase Price after giving effect to such Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15) <u>Reserve Account; Deposit Account Control Agreement</u>. To the extent any Underlying Asset is subject to a Reserve Account, Buyer shall have received a Deposit Account Control Agreement with respect to such Reserve Account and evidence that such Reserve Account has been established.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16) <u>Ineligible Asset</u>. The proposed Underlying Asset shall not be an Ineligible Asset, unless otherwise approved by Buyer in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17) <u>Trust Certificate</u>. To the extent not already provided pursuant to <u>Section 9(a)(14)</u>, Seller shall have delivered to the Buyer the original Trust Certificate registered in the name of the Buyer, together with all related Transfer Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(18) <u>Fidelity Bond</u>. Seller shall have delivered evidence that Buyer has been added as an additional loss payee to Seller's Fidelity Bond and Errors and Omissions Insurance Policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(19) <u>Permitted REO Assets</u>. With respect to each Underlying Asset that is a Permitted REO Asset, (i) to the extent the related REO Subsidiary is not already a party to this Agreement and the Pricing Side Letter, an executed REO Joinder Agreement, (ii) an original REO Deed executed in favor of the REO Subsidiary, (iii) an original REO Deed executed in blank by the related REO Subsidiary, and (iv) an original assignment of the related REO Subsidiary Certificate executed in blank by the Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Withdrawals with Respect to Construction Escrow Mortgage Loans</u>. Buyer shall review each advance by Seller of any Refurbishment Loan Amount, and in connection with such advance, Buyer may, pursuant to <u>Section 3(e)</u>, agree to increase the Purchase Price with respect to the Purchased Asset related to such Underlying Asset subject to receipt by Buyer, in its sole discretion, of sufficient evidence from Seller (unless waived in writing by Buyer) (i) of the related Mortgagor's right to receive such funds pursuant to the terms of the related Loan Documents which evidence may include, but is not limited to, (A) plans and specifications, budgets and construction and engineering contracts, (B) a completed payment voucher form or equivalent draw request form from the related Mortgagor, (C) an inspection form from a third party vendor reasonably acceptable to Buyer along with photographs of the work that has been completed, (D) copies of supporting documentation from contractors, subcontractors and vendors, (E) any lien waivers, if applicable, (F) line item waivers and/or change orders (with applicable approvals), if applicable, and (G) a disbursement spreadsheet or equivalent that includes the remaining amount of the Refurbishment Loan Amount to complete the project, and (ii) that (A) no changes, in any material respect, to the construction as initially contemplated were made without proper authorization, (B) construction completed was contemplated in initial construction project plans, in all material respects, unless otherwise approved by Buyer, (C) sufficient construction has been completed to warrant the advance and (D) timing of construction is consistent with initial projections, in all material respects, and no impediments, in any material respect, exist to the timely completion of the construction project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Program; Costs; Taxes</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Seller shall reimburse Buyer for any reasonable documented out-of-pocket costs, including third-party due diligence costs and reasonable attorneys' fees, incurred by Buyer in determining the acceptability to Buyer of any Mortgage Loans. Seller shall also pay, or reimburse Buyer if Buyer shall pay any termination fee and any other fee, cost and expense that may be due to Servicer in connection with the related Servicing Agreement or the Servicer Notice and Agreement. Seller shall pay the reasonable documented out-of-pocket fees and expenses of Buyer's counsel in connection with the Program Agreements. Further, Seller shall pay, or reimburse the Custodian for, any shipping costs incurred by Custodian upon delivery of an invoice following the delivery by Custodian of certain Mortgage Files relating to the Underlying Assets. Reasonable legal fees and expenses for any subsequent amendments, modifications, supplements, waivers or consents to or in respect of this Agreement or related documents shall be borne by Seller. Seller shall pay ongoing custodial and bank fees and expenses and any other ongoing fees and expenses under any other Program Agreement. Seller shall pay to Buyer, within ten (10) Business Days of receipt of an invoice therefor, any and all fees and expenses owed under such invoice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If, due to the introduction of, any change in, or the compliance by Buyer with the interpretation of any law, regulation or any guideline or request from any central bank or other Governmental Authority (whether or not having the force of law), there shall be an increase in the cost (excluding Excluded Taxes) to Buyer in engaging in the present or any future Transactions in an amount that Buyer deems to be material, then Seller agrees to pay to Buyer, from time to time, within thirty (30) days after written demand by Buyer (with a copy to the Custodian) the actual cost of additional amounts as specified by Buyer to compensate Buyer for such increased costs; <u>provided</u> that the Seller shall not be required to compensate Buyer pursuant to this Section for any increased costs incurred or reductions suffered more than nine months prior to the date that Buyer notifies Seller of such change giving rise to such increased costs or reductions, and of Buyer's intention to claim compensation therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) With respect to any Transaction, Buyer may conclusively rely upon, and shall incur no liability to Seller in acting upon, any request or other communication that Buyer reasonably believes to have been given or made by a person authorized to enter into a Transaction on Seller's behalf, whether or not such person is listed on the certificate delivered pursuant to <u>Section 9(a)(5)</u> hereof. In each such case, Seller hereby waives the right to dispute the terms of the request or other communication given or made by or on behalf of Seller to Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding the assignment of the Loan Documents with respect to each Underlying Asset to Buyer, Seller agrees and covenants with Buyer to enforce diligently Seller's rights and remedies set forth in the Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Any payment made by any Seller Party to Buyer shall be free and clear of, and without deduction or withholding for, any taxes; <u>provided</u>, <u>however</u>, that if such payer shall be required by law to deduct or withhold any taxes from any sums payable to Buyer, then such payer shall (i) make such deductions or withholdings and pay such amounts to the relevant authority in accordance with applicable law, (ii) to the extent that the withheld or deducted tax is an Indemnified Tax or Other Tax, pay to Buyer the sum that would have been payable had such deduction or withholding not been made, and (iii) on the following Remittance Date, to the extent that the withheld or deducted tax is an Indemnified Tax or Other Tax, pay to Buyer all additional amounts to preserve the after-tax yield Buyer would have received if such Indemnified Tax or Other Tax had not been imposed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Each party to this Agreement acknowledges that, notwithstanding anything in the Program Agreements to the contrary, it is its intent for purposes of United States federal, state and local income and franchise taxes to treat the Transactions as indebtedness of Seller (or any person from whom Seller is disregarded for U.S. federal income tax purposes) that is secured by the Purchased Assets and that the Purchased Assets are owned by Seller in the absence of an uncured Event of Default and the exercise of foreclosure remedies on the Purchased Assets by Buyer. All parties to this Agreement agree to such treatment and agree to take no action inconsistent with this treatment, unless required by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) (i) If Buyer is entitled to an exemption from or reduction of withholding tax with respect to payments made under the Program Agreements, Buyer shall deliver to Seller, at the time or times reasonably requested by Seller, such properly completed and executed documentation reasonably requested by Seller as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, Buyer, if reasonably requested by Seller, shall deliver such other documentation prescribed by applicable law or reasonably requested by Seller as will enable Seller to determine whether or not Buyer is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in <u>Section 10(g)(ii)(a)</u>, <u>(b)</u> and <u>(d)</u>) shall not be required if in Buyer's reasonable judgment such completion, execution or submission would be illegal, would subject Buyer to any unreimbursed cost or expense or would otherwise prejudice the legal or commercial position of Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Without limiting the generality of the foregoing,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if Buyer is a United States Person, it shall deliver to Seller on or prior to the date on which Buyer becomes a party to this Agreement (and from time to time thereafter upon the reasonable request of Seller), executed originals of U.S. Internal Revenue Service ("<u>IRS</u>") Form W-9 (or any successor form) certifying that Buyer is exempt from U.S. federal backup withholding tax;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if Buyer is not a United States Person, it shall, to the extent it is legally entitled to do so, deliver to Seller (in such number of copies as shall be requested by such Seller) on or prior to the date on which Buyer becomes a party under this Agreement (and from time to time thereafter when previously delivered certification expires or becomes obsolete, or otherwise upon the reasonable request of Seller), whichever of the following is applicable: (i) in the case of a Buyer that is claiming the benefits of an income tax treaty to which the United States is a party, (x) with respect to payments characterized as interest for U.S. tax purposes under any Program Agreement, executed originals of IRS Form W-8BEN or IRS Form W-8BEN-E (or any successor form) establishing an exemption from, or reduction of, U.S. federal withholding tax pursuant to the "interest" article of such tax treaty and (y) with respect to any other applicable payments under any Program Agreement, IRS Form W-8BEN or IRS Form W-8BEN-E (or any successor form) establishing an exemption from, or reduction of, U.S. federal withholding tax pursuant to the "business profits" or "other income" article of such tax treaty; (ii) executed originals of IRS Form W-8ECI (or any successor form); (iii) in the case of a Buyer claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate to the effect that such Buyer is not a "bank" within the meaning of Section 881(c)(3)(A) of the Code, a "10 percent shareholder" of Seller within the meaning of Section 881(c)(3)(B) of the Code, or a "controlled foreign corporation" described in Section 881(c)(3)(C) of the Code (a "<u>U.S. Tax Compliance Certificate</u>") and (y) executed originals of IRS Form W-8BEN or IRS Form W-8BEN-E; or (iv) to the extent a Buyer is not the beneficial owner, executed originals of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN, IRS Form W-8BEN-E, a U.S. Tax Compliance Certificate, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; <u>provided</u> that if Buyer is a partnership and one or more direct or indirect partners of such Buyer are claiming the portfolio interest exemption, such Buyer may provide a U.S. Tax Compliance Certificate on behalf of each such direct and indirect partner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if Buyer is not a United States Person, it shall, to the extent it is legally entitled to do so, deliver to Seller (in such number of copies as shall be reasonably requested by Seller) on or prior to the date on which Buyer becomes a party to this Agreement (and from time to time thereafter upon the reasonable request of Seller), executed originals of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S. federal withholding tax, duly completed, together with such supplementary documentation as may be prescribed by applicable law to permit Seller to determine the withholding or deduction required to be made; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if a payment made to Buyer under any Program Agreement would be subject to U.S. federal withholding tax imposed by FATCA if Buyer were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or Section 1472(b) of the Code, as applicable), Buyer shall deliver to Seller at the time or times prescribed by law and at such time or times reasonably requested by Seller such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by Seller as may be necessary for Seller to comply with its obligations under FATCA and to determine that Buyer has complied with Buyer's obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this <u>clause (d)</u>, "FATCA" shall include any amendments made to FATCA after the date of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Buyer agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify Seller in writing of its legal inability to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Each party's obligations under <u>Section 10(e)</u> through <u>(g)</u> shall survive any assignment of rights by Buyer, the termination of this Agreement and the repayment, satisfaction or discharge of all obligations under any Program Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Servicing</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Seller, on Buyer's behalf, shall require each Servicer to service the Underlying Assets consistent with the degree of skill and care that such Servicer customarily uses with respect to similar Mortgage Loans owned or managed by it and in accordance with Accepted Servicing Practices. Seller shall cause each Servicer to (i) comply in all material respects with all applicable Federal, State and local laws and regulations, (ii) maintain all state and federal licenses necessary for Servicer to perform its servicing responsibilities and (iii) not impair the rights of Buyer in any Underlying Assets or any payment thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to the applicable Servicer Notice and Agreement, Seller shall cause each Servicer to hold or cause to be held any Escrow Payments collected by such Servicer with respect to any Underlying Assets in trust accounts and shall apply the same for the purposes for which such Escrow Payments were collected. Subject to the applicable Servicer Notice and Agreement, Seller shall cause each Servicer to segregate all Income received by Servicer with respect to the Underlying Assets and hold such Income in trust for the sole and exclusive benefit of Buyer and properly reflect Buyer's interest in such Income in Servicer's books and records.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Seller shall cause each Servicer to comply with the requirements set forth in <u>Section 7(d)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Seller shall cause each Servicer to, prior to the first Purchase Date with respect to any Underlying Asset serviced by such Servicer, promptly provide to Buyer a servicer notice in the form of a Servicer Notice and Agreement addressed to and agreed to by Servicer of the related Underlying Assets, advising such Servicer of such matters as Buyer may reasonably request, including, without limitation, recognition by Servicer of Buyer's interest in such Underlying Assets and Servicer's agreement that upon receipt of notice of an Event of Default from Buyer, a default by Servicer under the Servicing Agreement or a failure of Servicer to comply with the terms of the Servicer Notice and Agreement, it will follow the instructions of Buyer with respect to the Underlying Assets and any related Income with respect thereto and provide such information as Buyer may request from time to time, including a reporting tape with respect to such Underlying Assets; <u>provided</u>, that, prior to receipt of such notice of an Event of Default from Buyer or a default by Servicer under the Servicing Agreement or a failure of Servicer to comply with the terms of the Servicer Notice and Agreement, Servicer may follow the directions and instructions of Seller with respect to Servicer's duties and obligations under the Servicing Agreement. Upon notice thereof to Servicer from Buyer, the Servicing Agreement and the Servicer Notice and Agreement shall together constitute a separate and distinct servicing agreement for the Underlying Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Buyer shall have the right, in accordance with the applicable Servicer Notice and Agreement, to terminate a Servicer's right to service the Underlying Assets under the related Servicing Agreement without payment of any penalty or termination fee. If Buyer desires to exercise such right of termination, Buyer shall provide Seller with notice thereof and Seller shall immediately terminate such Servicer's right to service such Underlying Assets in accordance with the terms of the related Servicing Agreement; <u>provided</u>, that, prior to the date of termination of the related Servicer by Seller (i) a replacement servicer acceptable to Buyer in its sole discretion is selected, (ii) a new servicing agreement with such replacement servicer is entered into and (iii) such replacement servicer enters into a Servicer Notice and Agreement acceptable to Buyer in Buyer's sole discretion. Seller, Buyer and each Servicer shall cooperate in transferring the servicing and all Records of such Underlying Assets to a successor servicer selected by Buyer or Seller (as applicable) in accordance with this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If Seller should discover that, for any reason whatsoever, a Servicer has failed to perform fully any of its obligations under the related Servicing Agreement with respect to the Underlying Assets, Seller shall promptly notify Buyer and promptly remedy any non-compliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Seller's rights and obligations to have the Underlying Assets serviced by the related Servicer shall terminate on the 20<sup>th</sup> calendar day of each month (and if such day is not a Business Day, the next succeeding Business Day), unless otherwise directed in writing from Buyer to Seller prior to such date. For the avoidance of doubt, this <u>Section 11(g)</u> shall no longer apply to any Underlying Asset that is repurchased in full by Seller in accordance with the provisions of this Agreement and therefore is no longer subject to a Transaction. Upon termination, Seller shall within sixty (60) days (or such longer period as may be agreed to by the Buyer) cause the related Servicer to transfer servicing to the designee specified by Buyer, including, without limitation, delivery of all servicing files to the designee of Buyer. The related Servicer's delivery of servicing files shall be in accordance with Accepted Servicing Practices. Seller and the related Servicer shall have no right to select a subservicer or successor servicer. After the servicing terminates and until the servicing transfer date is established with the designee of Buyer, Seller shall cause the related Servicer to service the Underlying Assets in accordance with the terms of this Agreement and for the benefit of Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Representations and Warranties</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Seller (and REO Subsidiary, as applicable) represents and warrants to Buyer as of the date hereof and at all times that any Underlying Asset is subject to a Transaction hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) <u>Due Organization and Qualification</u>. Each Seller Party is duly organized, validly existing and in good standing under the laws of the State of its organization. Each Seller Party is duly qualified to do business, is in good standing and has obtained all necessary licenses, permits, charters, registrations and approvals necessary for the conduct of its business as currently conducted and the performance of its obligations under the Program Agreements except where any failure to obtain such a license, permit, charter, registration or approval would not cause or be likely to cause a Material Adverse Effect or impair Buyer's rights with respect to any Purchased Asset or the enforceability of any Underlying Asset.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) <u>Power and Authority</u>. Each Seller Party has all necessary power and authority to conduct its business as currently conducted, to execute, deliver and perform its obligations under the Program Agreements, any electronic transmissions contemplated hereunder, and to consummate the Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) <u>Due Authorization</u>. The execution, delivery and performance by each Seller Party of the Program Agreements, including any electronic transmissions by each Seller Party contemplated hereunder, have been duly authorized by all necessary action and do not require any additional approvals or consents or other action by or any notice to or filing with any Person other than any that have heretofore been obtained, given or made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) <u>Non-contravention</u>. None of the execution and delivery of the Program Agreements or any electronic transmissions contemplated hereunder, by any Seller Party or the consummation of the Transactions and transactions thereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) conflicts with, breaches or violates any provision of the Governing Documents or material agreements of any Seller Party or any law, rule, regulation, order, writ, judgment, injunction, decree, determination or award currently in effect having applicability to any Seller Party or its properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) constitutes a material default by any Seller Party under any loan or repurchase agreement, mortgage, indenture or other agreement or instrument to which any Seller Party is a party or by which it or any of its properties is or may be bound or affected; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) results in or requires the creation of any Lien upon or in respect of any of the assets of any Seller Party except the Lien relating to the Program Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) <u>Legal Proceeding</u>. There is no action, proceeding or investigation by or before any court, governmental or administrative agency or arbitrator affecting any of the Purchased Assets, the Underlying Assets or any Seller Party or any of its Affiliates, pending or threatened in writing, which, is expected to be adversely determined and, if decided adversely, would have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) <u>Valid and Binding Obligations</u>. Each of the Program Agreements and any electronic transmissions contemplated hereunder, in each case, to which each Seller Party is a party, when executed and delivered by such Seller Party, will constitute the legal, valid and binding obligations of such Seller Party, enforceable against such Seller Party, in accordance with their respective terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors' rights generally and general equitable principles (regardless of whether enforcement is sought in a proceeding in equity or at law).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) <u>Financial Statements</u>. The financial statements of each Seller Party furnished to Buyer (i) are, as of the dates and for the periods referred to therein, complete and correct in all material respects and do not omit any material fact as of the date(s) thereof, (ii) present fairly the financial condition and results of operations of Seller as of the dates and for the periods indicated and (iii) have been prepared in accordance with GAAP consistently applied, except as noted therein (subject as to interim statements to normal year-end adjustments and absence of notes). Since the date of the most recent financial statements, there has been no event or circumstance that would be likely to cause a Material Adverse Effect with respect to the Seller Parties. Except as disclosed in such financial statements, no Seller Party is subject to any contingent liabilities or commitments that, individually or in the aggregate, would reasonably be expected to cause a Material Adverse Effect with respect to Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) <u>Accuracy of Information</u>. The information, reports, certificates, documents, financial statements, operating statements, forecasts, books, records, files, exhibits and schedules furnished by or on behalf of a Seller Party to Buyer in connection with the Program Agreements and the Transactions, when taken as a whole, do not contain any untrue statement of material fact or omit to state any material fact necessary to make the statements herein or therein, in light of the circumstances under which they were made, not misleading. All written information furnished after the Effective Date by or on behalf of a Seller Party to Buyer in connection with the Program Agreements and the Transactions will be true, correct and complete in all material respects, on the date as of which such information is stated or certified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) <u>No Consents</u>. No order, consent, license, approval or authorization from, or registration, filing or declaration with, any Governmental Authority, or any consent, approval, waiver or notification of any creditor, lessor or other non-governmental Person, is required in connection with the execution, delivery and performance or consummation by each Seller Party of this Agreement or any other Program Agreement, other than any that have heretofore been obtained, given or made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) <u>Compliance With Law, Etc.</u> Each Seller Party has complied in all respects with all Requirements of Law, except where any failure to do so would not reasonably be likely to cause a Material Adverse Effect. No Seller Party or Affiliate of a Seller Party (i) is in violation in any material respect of any Sanctions or (ii) is a Sanctioned Target. The proceeds of any Transaction have not been and will not be used, directly or indirectly, to fund any operations in, finance any investment or activity in or make any payment to a Sanctioned Target or otherwise in violation of Sanctions, Anti-Corruption Laws or Anti-Money Laundering Laws. The operations of each Seller Party are, and have been, conducted at all times in compliance in all material respects with all applicable Anti-Money Laundering Laws and Anti-Corruption Laws. No litigation, regulatory or administrative proceedings of or before any court, tribunal or agency with respect to any Anti-Money Laundering Laws or Anti-Corruption Laws have been started or (to the best of its knowledge and belief) threatened against each Seller Party or, to the knowledge of a Seller Party, any Affiliates of a Seller Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) <u>Solvency; Fraudulent Conveyance</u>. Each Seller Party is solvent and will not be rendered insolvent by the Transaction and, after giving effect to such Transaction, each Seller Party will not be left with an unreasonably small amount of capital with which to engage in its business. Each Seller Party is generally able to pay, and is paying, its debts as they come due. No Seller Party is contemplating the commencement of insolvency, bankruptcy, liquidation or consolidation proceedings or the appointment of a receiver, liquidator, conservator, trustee or similar official in respect of such Seller Party or any of its assets. The amount of consideration being received by Seller upon the sale of a Purchased Asset to Buyer constitutes reasonably equivalent value and fair consideration for such Purchased Asset. Seller is not transferring any Purchased Asset with any intent to hinder, delay or defraud any of its creditors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) <u>Investment Company Act Compliance</u>. No Seller Party is required to register as an "investment company" under, or is a company "controlled" by an "investment company" within the meaning of, the Investment Company Act of 1940, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13) <u>Taxes</u>. Each Seller Party has filed all required federal income tax returns and all other material tax returns, domestic and foreign, required to be filed by it and has paid all income, franchise and other material taxes (including mortgage recording taxes), assessments, fees, and other governmental charges payable by it, or with respect to any of its properties or assets, that have become due, except (i) for those taxes that are being contested in good faith by appropriate proceedings diligently conducted and for which appropriate reserves have been established in accordance with GAAP or (ii) where any failure to do so would not reasonably be likely to cause a Material Adverse Effect. Each Seller Party has paid, or has provided adequate reserves for the payment of, all such taxes for all prior fiscal years and for the current fiscal year to date, except where any failure to do so would not reasonably be likely to cause a Material Adverse Effect. There is no material action, suit, proceeding, investigation, audit or claim relating to any such taxes now pending or, to the knowledge of a Seller Party, threatened by any Governmental Authority which is not being contested in good faith as provided above other than those that would not reasonably be expected to have a Material Adverse Effect. No Seller Party has entered into any agreement or waiver or been requested to enter into any agreement or waiver extending any statute of limitations relating to the payment or collection of taxes, or is aware of any circumstances that would cause the taxable years or other taxable periods of a Seller Party not to be subject to the normally applicable statute of limitations. No tax liens have been filed against any assets of a Seller Party. No Seller Party intends to treat any Transaction as being a "reportable transaction" as defined in United States Treasury Regulation Section 1.6011–4. If Seller determines to take any action inconsistent with such intention, it will promptly notify Buyer, in which case Buyer may treat each Transaction as subject to United States Treasury Regulation Section 301.6112–1 and will maintain the lists and other records required thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14) <u>Additional Representations</u>. With respect to each Underlying Asset, Seller (and REO Subsidiary, as applicable) hereby makes all of the applicable representations and warranties set forth in <u>Schedule 1-A</u> or <u>1-B</u> hereto, as applicable, as of the related Purchase Date and continuously while such Underlying Asset is subject to a Transaction. Further, as of each Purchase Date, Seller (and REO Subsidiary, as applicable) shall be deemed to have represented and warranted in like manner that Seller (and such REO Subsidiary) have no knowledge that any such representation or warranty may have ceased to be true in a material respect as of such date, except as otherwise stated in a Transaction Request, any such exception to identify the applicable representation or warranty and specify in reasonable detail the related knowledge of Seller (or REO Subsidiary). In the event it is discovered that the circumstances with respect to any Underlying Asset are not accurately reflected in any of the applicable representations and warranties made by Seller (or REO Subsidiary) set forth in <u>Schedule 1-A</u> or <u>1-B</u> hereto, as applicable, notwithstanding the actual knowledge or lack of knowledge of Seller or REO Subsidiary, and notwithstanding that such representation and warranty is made subject to Seller's or REO Subsidiary's knowledge, then such representation and warranty shall be deemed to be breached.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15) <u>No Broker</u>. No Seller Party has dealt with any broker, investment banker, agent, or other person, except for Buyer, who may be entitled to any commission or compensation in connection with the sale of the Purchased Assets or the Underlying Assets pursuant to this Agreement; <u>provided</u>, that if a Seller Party has dealt with any broker, investment banker, agent, or other Person, except for Buyer, who may be entitled to any commission or compensation in connection with the sale of the Purchased Assets or the Underlying Assets pursuant to this Agreement, such commission or compensation shall have been paid in full by such Seller Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16) <u>ERISA</u>. No Seller Party maintains or contributes to and is not subject to any obligation or liability with respect to any plan of a type described in Section 3(3) of ERISA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17) <u>True Sale</u>. Each Approved Originator received reasonably equivalent value in consideration for the transfer of such Underlying Assets. No such transfer was made for or on account of an antecedent debt owed by such Approved Originator. No such transfer is or may be voidable or subject to avoidance under the Bankruptcy Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(18) <u>Other Approvals</u>. Each Approved Originator is licensed or qualified, as required pursuant to any Requirements of Law, as a mortgage lender in the state in which the related Mortgaged Property (or REO Property, as applicable) is located, and Servicer has the facilities, procedures and experienced personnel necessary to service the Mortgage Loans in accordance with Accepted Servicing Practices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(19) <u>Other Credit Facilities and Debts.</u> No Seller Party is an obligor under any other Indebtedness (including without limitation, other credit facilities) secured by a Purchased Asset or Underlying Asset.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(20) <u>Purchased Assets</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Seller has not assigned, pledged, or otherwise conveyed or encumbered any Purchased Assets or interests in related Underlying Assets to any Person other than Buyer following the transfer of the related Underlying Assets to Buyer or to Trustee on behalf of the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Trustee on behalf of the Trust has not assigned, pledged, or otherwise conveyed or encumbered any Underlying Mortgage Loans to any Person other than Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) Immediately prior to the sale of a Purchased Assets to Buyer, Seller was the sole owner of such Purchased Assets and the related interests in the related Underlying Assets and had good and marketable title thereto, free and clear of all Liens, in each case except for Liens to be released simultaneously with the sale to Buyer hereunder and Permitted Encumbrances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) Trustee on behalf of the Trust is the sole owner of the legal title to the Underlying Mortgage Loans and had good and marketable title thereto, free and clear of all Liens, in each case except for Liens to be released simultaneously with the pledge to Buyer under the Pledge Agreement and Permitted Encumbrances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) The provisions of this Agreement are effective to either constitute a sale of the Purchased Assets to Buyer or to create in favor of Buyer a valid security interest in all right, title and interest of Seller in, to and under any Repurchase Assets owned by Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) The provisions of the Pledge Agreement are effective to create in favor of Buyer a valid security interest in all right, title and interest of Trustee on behalf of the Trust in to and under any Underlying Mortgage Loan related to the Repurchase Assets owned by Trustee on behalf of the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(21) [<u>Reserved</u>]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(22) <u>Regulatory Action</u>. No Seller Party is currently under any investigation and no investigation by any federal, state or local government agency is threatened in writing that is reasonably likely to be adversely determined and, if adversely determined, could be reasonably likely to have a Material Adverse Effect. No Seller Party has been the subject of any government investigation that has resulted in the voluntary or involuntary suspension of a license, a cease and desist order, or such other action as could have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(23) [<u>Reserved</u>]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(24) <u>No Default, Event of Default or Material Adverse Effect</u>. No Default or Event of Default exists. Seller (and REO Subsidiary, as applicable) believes that it is and will be able to pay and perform each agreement, duty, obligation and covenant contained in the Program Agreements to which it is a party, and that it is not subject to any agreement, obligation, restriction or Requirements of Law that would unduly burden its ability to do so or could reasonably be expected to have a Material Adverse Effect. Neither Seller nor any REO Subsidiary has any knowledge of any actual development, event or other fact that is expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(25) <u>Mortgage Loan Schedule</u>. Each Mortgage Loan Schedule is true, complete and correct in all material respects; <u>provided</u>, that, each of the Custodian and Buyer must be provided with prior written notice of any changes thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(26) <u>Trust Interests</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Each Trust Interest complies in all material respects with, or is exempt from, all applicable requirements of federal, state or local law relating to such Trust Interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) No fraudulent acts were committed by any Seller Party or any of their respective Affiliates in connection with the issuance of such Trust Interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) Other than the Program Agreements, Seller is not a party to any document, instrument or agreement, and there is no document, that by its terms modifies or affects the rights and obligations of any holder of such Trust Interests and Seller has not consented to any material change or waiver to any term or provision of any such document, instrument or agreement and no such change or waiver exists.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) Seller has full right, power and authority to sell and assign such Trust Interests, and such Trust Interests have not been cancelled, satisfied or rescinded in whole or part nor has any instrument been executed that would effect a cancellation, satisfaction or rescission thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) Other than consents and approvals obtained as of the related Purchase Date or those already granted in the Program Agreements governing such Trust Interests, no consent or approval by any Person is required in connection with Seller's sale and/or Buyer's acquisition of such Trust Interests, for Buyer's exercise of any rights or remedies in respect of such Trust Interests or for Buyer's sale, pledge or other disposition of such Trust Interests. No third party holds any "right of first refusal", "right of first negotiation", "right of first offer", purchase option, or other similar rights of any kind, and no other impediment exists to any such transfer or exercise of rights or remedies with respect to such Trust Interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) No consent, approval, authorization or order of, or registration or filing with, or notice to, any court or governmental agency or body having jurisdiction or regulatory authority over Seller is required for any transfer or assignment by the holder of such Trust Interests to the Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H) Seller has delivered to Buyer the original certificate of such Trust Interests in Buyer's name.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) The Trust Interests are duly and validly issued and the ownership of each Trust Interest is reflected in the register maintained pursuant to the terms of the Trust Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(J) Seller has not received written notice of any outstanding liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind for which the holder of such Trust Interests is or may become obligated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(K) It is the intent of the Seller that the Trust Certificate is a "certificated security" in "registered form" within the respective meanings of such terms as set forth in Article 8 of the UCC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(L) It is the intent of the parties hereto that the Trust Certificate shall constitute a "security" within the meaning of Article 8 of the UCC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(M) The Trust Interests evidenced by the Trust Certificate constitute all the issued and outstanding Trust Interests in the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(N) The Trust Interests have not been credited to a "securities account" (within the meaning of Section 8-501(a) of the UCC).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(27) <u>Voting Rights</u>. No Trust Interest, other than the Trust Interests evidenced by the Purchased Assets, has any voting rights with respect to the Trust.

The representations and warranties set forth in this Agreement shall survive transfer of the Purchased Assets to Buyer and shall continue for so long as any Underlying Assets are subject to a Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Covenants</u>

Seller (and REO Subsidiary, as applicable) covenants with Buyer that at all times prior to the Termination Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Litigation</u>. Each Seller Party shall promptly, and in any event within ten (10) days after service of process on any of the following, give to Buyer notice of all litigation, actions, suits, arbitrations, investigations (including, without limitation, any of the foregoing that are threatened (in writing or otherwise) or pending) or other legal or arbitrable proceedings affecting a Seller Party or any of their respective Property before any Governmental Authority (i) that questions or challenges the validity or enforceability of any of the Program Agreements or any action to be taken in connection with the transactions contemplated hereby, or (ii) that is reasonably likely to be adversely determined and, if adversely determined, could be reasonably likely to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Prohibition of Fundamental Changes</u>. No Seller Party shall enter into any transaction of merger or consolidation or amalgamation, that would result in a Change in Control, or liquidate, wind up or dissolve itself (or suffer any liquidation, winding up or dissolution). Seller shall not sell all or substantially all of its assets. Seller shall not effect a Division into two or more domestic limited liability companies pursuant to and in accordance with Section 18-217 of Delaware Limited Liability Company Act, 6 Del. C. §§ 18-101 et seq., as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Notification</u>. Each Seller Party will notify Buyer (i) at least monthly on or before each Reporting Date of any repurchase requests or demands, insurance denials and indemnification requests it received or is likely to receive from its secondary market investors, and (ii) immediately of any suspension notices or termination notices it received or is likely to receive from its secondary market investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Servicer; Asset Tape</u>. Upon the occurrence of any of the following (i) the occurrence and continuation of an Event of Default, (ii) the tenth (10th) Business Day of each month, or (iii) upon Buyer's request, Seller shall provide, or cause Servicer to provide, to Buyer, in an electronic format mutually acceptable to Buyer and Seller, an Asset Tape by no later than the Reporting Date. Seller shall not cause the Underlying Assets to be serviced by any servicer other than Servicer, unless otherwise directed by Buyer in writing in accordance with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Maintenance of Fidelity Bond and Errors and Omissions Insurance</u>. Seller shall continue to maintain or cause to be maintained for Seller and its Affiliates (or such Affiliates shall cause to be maintained), with responsible companies, at its or their, as applicable, own expense, a blanket Fidelity Bond and an Errors and Omissions Insurance Policy, with broad coverage on all officers, employees or other persons ("<u>Seller Employees</u>") acting in any capacity requiring such persons to handle funds, money, documents or papers relating to the Underlying Assets, with respect to any claims made in connection with all or any portion of the Underlying Assets. Any such Fidelity Bond and Errors and Omissions Insurance Policy shall be in the standard form of mortgage banker's blanket bond and shall protect and insure Seller and REO Subsidiary against losses, including forgery, theft, embezzlement, fraud, errors and omissions and negligent acts of Seller Employees. Such Fidelity Bond and Errors and Omissions Insurance Policy also shall protect and insure Seller against losses in connection with the release or satisfaction of an Underlying Asset without having obtained payment in full of the indebtedness secured thereby. No provision of this Section requiring such Fidelity Bond and Errors and Omissions Insurance Policy shall diminish or relieve Seller from its duties and obligations as set forth in this Agreement. The minimum coverage under any such Fidelity Bond and Errors and Omissions Insurance Policy shall be at least equal to the amount maintained by management of Seller to be customary for similarly situated companies. Upon the request of Buyer, Seller shall cause to be delivered to Buyer a certificate of insurance for such Fidelity Bond and Errors and Omissions Insurance Policy and a statement from the surety and the insurer that such Fidelity Bond and Errors and Omissions Insurance Policy shall, to the extent commercially available, in no event be terminated or materially modified without thirty (30) days' prior written notice to Buyer. Seller shall ensure that Buyer is added as an additional loss payee under each of the Fidelity Bond and Errors and Omissions Insurance Policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>No Adverse Claims</u>. Seller warrants and will defend, and shall cause Servicer to defend, the right, title and interest of Buyer in and to all Purchased Assets and the related Underlying Assets against all adverse claims and demands other than Permitted Encumbrances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Assignment</u>. Except as permitted herein, no Seller Party or Servicer shall sell, assign, transfer or otherwise dispose of, or grant any option with respect to, or pledge, hypothecate or grant a Lien in or on or otherwise encumber (except pursuant to the Program Agreements), any of the Purchased Assets, Underlying Assets or any interest therein other than Permitted Encumbrances; <u>provided</u>, that, this Section shall not prevent any transfer of Underlying Assets in accordance with the Program Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Security Interest</u>. Each Seller Party shall do all things necessary to preserve the Purchased Assets and the related Underlying Assets so that they remain subject to a first priority perfected security interest hereunder, subject only to Permitted Encumbrances. Without limiting the foregoing, each Seller Party will comply with all rules, regulations and other laws of any Governmental Authority and will cause the Purchased Assets and the related Underlying Assets to comply with all applicable rules, regulations and other laws. No Seller Party will allow any default for which such Seller Party is responsible to occur under any Purchased Assets or the related Underlying Assets or any Program Agreement, and each Seller Party shall fully perform or cause to be performed when due all of its obligations under the Purchased Assets, the related Underlying Assets and any Program Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Records</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Seller (or REO Subsidiary, as applicable) shall collect and maintain or cause to be collected and maintained all Records relating to the Underlying Assets in accordance with industry custom and practice for assets similar to the Underlying Asset, and all such Records shall be solely in possession of Seller (or REO Subsidiary, as applicable) or the Custodian or Servicer, as applicable, unless Buyer otherwise approves. Except as otherwise permitted by this Agreement or the Custodial Agreement, Seller (or REO Subsidiary, as applicable) shall not take any action to direct any such papers, records or files that are an original or an only copy to leave the Custodian's possession, except for individual items removed in connection with servicing a specific Underlying Asset, in which event Seller (or REO Subsidiary, as applicable) will obtain or cause to be obtained a receipt from a duly authorized individual of Custodian for any such paper, record or file. Seller (or REO Subsidiary, as applicable) or Servicer will maintain all such Records not in the possession of the Custodian in good and complete condition in accordance with industry practices for assets similar to the Underlying Assets and preserve them against loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) For so long as Buyer has a Lien in or on any Purchased Asset, Seller (or REO Subsidiary, as applicable) will hold or cause to be held all related Records in trust for Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Upon reasonable advance notice from the Custodian or Buyer, Seller (or REO Subsidiary) shall (x) make any and all such Records available to Custodian or Buyer to examine any such Records, either by its own officers or employees, or by agents or contractors, or both, and make copies of all or any portion thereof, and (y) permit Buyer or its authorized agents to discuss the affairs, finances and accounts of Seller (or REO Subsidiary, as applicable) with a Responsible Officer of the Seller Parties and to discuss the affairs, finances and accounts of Seller (or REO Subsidiary, as applicable) with its independent certified public accountants; <u>provided</u>, that no reasonable advance notice shall be required if a Default or an Event of Default has occurred and is continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Books</u>. Each Seller Party shall keep or cause to be kept in reasonable detail books and records of account of its assets and business and shall clearly reflect therein the transfer of the Purchased Assets and the Underlying Assets to Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Approvals</u>. Each Seller Party shall maintain all licenses, permits or other approvals necessary for such Seller Party to conduct its business and to perform its obligations under the Program Agreements, and each Seller Party shall conduct its business in strict accordance with Requirements of Law except where any failure to do so would not reasonably be likely to cause a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Material Change in Business</u>. Seller shall not make any material adverse change in the nature of its business as carried on at the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Underwriting Guidelines</u>. In the event Seller makes or approves any amendment or modification to the Underwriting Guidelines that are applicable to the Transactions, Seller shall promptly deliver to Buyer a complete copy of the amended or modified Underwriting Guidelines. Mortgage Loans originated under such revised Underwriting Guidelines shall not be eligible for Transactions under this Agreement unless such Underwriting Guidelines are approved in writing by Buyer; <u>provided</u>, that notwithstanding the foregoing, amendments or modifications to the Underwriting Guidelines applicable to the Transactions that are ministerial in nature shall not require the approval of Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Distributions</u>. If an Event of Default has occurred and is continuing or the payment of a distribution would cause, or would be likely to cause, the violation of a financial covenant set forth in any Program Agreement, Seller and REO Subsidiary shall not make any distributions with respect to any equity interests of Seller or REO Subsidiary, whether now or hereafter outstanding, or make any other distribution in respect thereof, either directly or indirectly, whether in cash or property or in obligations of Seller or REO Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Applicable Law</u>. Each Seller Party shall comply with the requirements of all Requirements of Law and orders of any Governmental Authority, except where any failure to do so would not be reasonably likely to cause a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Existence</u>. Each Seller Party shall preserve and maintain its legal existence and all of its material rights, privileges, licenses and franchises, except where any failure to do so would not reasonably be likely to cause a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Chief Executive Office; Jurisdiction of Organization</u>. Neither Seller nor REO Subsidiary shall move its chief executive office from the address referred to in the Pricing Side Letter or change its jurisdiction of organization from the jurisdiction referred to in <u>Section 12(a)(1)</u> unless it shall have provided Buyer ten (10) days' prior written notice of such change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Transactions with Affiliates</u>. No Seller Party will not enter into any transaction, including, without limitation, any purchase, sale, lease or exchange of property or the rendering of any service, with any Affiliate unless such transaction is not prohibited by the Program Agreements and is (i) in the ordinary course of such Seller Party's business, (ii) consistent with its past practices or (iii) on commercially reasonable terms similar to those available to unaffiliated parties in an arm's-length transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>True, Correct and Complete Information</u>. All information, reports, exhibits, schedules, financial statements (including, without limitation, any schedules thereto) or certificates prepared by a Seller Party, any of its Affiliates or any of its officers furnished to Buyer hereunder and during Buyer's diligence of such Seller Party is and will be true, correct and complete and do not omit to disclose any material facts necessary to make the statements herein or therein, in light of the circumstances in which they are made, not misleading. All required financial statements, information and reports delivered by a Seller Party to Buyer pursuant to this Agreement shall be prepared in accordance with GAAP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>Loan Amount</u>. If a Mortgagor requests an increase in the related Loan Amount under any Underlying Asset, Seller shall, in its sole discretion, either accept or reject the Mortgagor's request and notify Buyer in writing of Seller's decision. If the request for a Loan Amount increase is accepted by Seller, the increase will be effected by Seller through modification of the Underlying Asset with the Mortgagor. Seller shall deliver to Buyer an updated Mortgage Loan Schedule reflecting the modification to the Underlying Asset and shall deliver any modified Collateral Documents to the Custodian. Notwithstanding anything to the contrary herein, in no event shall Buyer have any obligation to directly fund any subsequent advances directly to a Mortgagor with respect to any Underlying Asset, which obligations shall be retained by Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>Material Amendments to Loan Agreement and other Loan Documents</u>. Without the prior written consent of Buyer, Seller shall not amend or modify the terms of any Loan Agreement, Mortgage Note or any other related Loan Document related to any Underlying Asset, other than Permitted Modifications. Unless an Event of Default is continuing, Seller is hereby authorized by Buyer to make Permitted Modifications with respect to the Underlying Assets in Seller's reasonable business discretion; <u>provided</u>, that, Seller shall promptly provide Buyer with copies of any such amendments, modifications or waivers with respect to any Underlying Assets and any related documents required under the Custodial Agreement or reasonably requested by Buyer. With respect to any Underlying Asset that is a Permitted REO Asset, the applicable Seller and/or the related REO Subsidiary shall not take any material action with respect to such Permitted REO Asset or the REO Property other than in accordance with the business plan approved by Buyer, or amend or modify such business plan, without the prior written consent of Buyer in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Anti-Corruption Laws and Anti-Money Laundering Laws</u>. The proceeds of any Transaction shall not be used, directly or indirectly, for any purpose that would breach any applicable Anti-Corruption Laws, Anti-Money Laundering Laws or Sanctions. Each Seller Party shall (i) conduct its business in compliance with applicable Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions and (ii) maintain policies and procedures designed to promote and achieve compliance with applicable Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions. The repurchase (in whole or in part) of any Purchased Asset or any other payment due to Buyer under this Agreement or any other Program Agreement shall not be funded, directly or indirectly, with proceeds derived from a transaction that would be prohibited by Anti-Corruption Laws, Anti-Money Laundering Laws or Sanctions, or in any manner that would cause a Seller Party, or to the knowledge of Seller, any Affiliate of a Seller Party to be in breach of any Anti-Corruption Laws, Anti-Money Laundering Laws or Sanctions. With respect to any Underlying Assets that were originated by a Seller Party, such Seller Party shall conduct the customer identification and customer due diligence required in connection with the origination of each Underlying Asset for purposes of complying with all Anti-Money Laundering Laws and will maintain sufficient information to identify each such customer for purposes of such Anti-Money Laundering Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) <u>Compliance with Sanctions</u>. The proceeds of any Transaction hereunder will not, directly or indirectly, be used to lend, contribute, or otherwise be made available: (i) to fund any activities or business of or with a Sanctioned Target, or (ii) be used in any manner that would be prohibited by Sanctions or would otherwise cause Buyer to be in breach of any Sanctions. A Seller Party shall notify Buyer in writing not more than three (3) Business Days after becoming aware of any breach of <u>Section 13(v)</u> or this <u>Section 13(w)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) <u>Delivery of Financial Statements and Other Information</u>. Seller shall deliver or cause to be delivered the following information to Buyer, below within the time periods specified below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) within forty-five (45) days after the end of each calendar quarter (other than the fourth fiscal quarter of each calendar year), (i) the unaudited balance sheets of the Seller Parties as at the end of such period and the related unaudited consolidated statements of income and retained earnings and of cash flows for the Seller Parties, if applicable, for such period and the portion of the fiscal year through the end of such period, accompanied by a certificate of a Responsible Officer of Guarantor, which certificate shall state that said financial statements fairly present in all material respects the financial condition and results of operations of the Seller Parties, if applicable, in accordance with GAAP, consistently applied, as at the end of, and for, such period (subject to normal year-end adjustments), and (ii) an Officer's Compliance Certificate; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) within ninety (90) calendar days after the end of each calendar year, the balance sheets and the related statements of income for the Seller Parties as at the end of such fiscal year, with such balance sheets and statements of income being audited if required by Buyer but in any event prepared by a certified public accountant in accordance with GAAP, consistently applied, setting forth in each case in comparative form the figures for the previous year, accompanied by an opinion thereon of independent certified public accountants of recognized national standing, which opinion shall have no "going concern" qualification and shall state that said financial statements fairly present the financial condition and results of operations of the Seller Parties, if applicable, as at the end of, and for, such fiscal year in accordance with GAAP, consistently applied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Any financial statements required to be delivered hereunder shall be deemed to be delivered to the Buyer if such financial statements are available on www.sec.gov (or any applicable replacement website).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) <u>Assignments of Mortgage</u>. At the request of Buyer, Seller shall use commercially reasonable efforts to obtain a corrected Assignment of Mortgage for any Underlying Asset if Buyer determines in its discretion that the related Assignment of Mortgage (i) is not in recordable form, (ii) may not be acceptable for recording under the laws of the jurisdiction in which the related Mortgaged Property is located, or (iii) may not be sufficient under the laws of the jurisdiction wherein the related Mortgaged Property is located to reflect the sale of the Underlying Asset to Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) <u>Reserved</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) <u>Taxes</u>. Seller shall timely file all federal tax returns and all other material tax returns that are required to be filed by it and shall timely pay and discharge all income and other material taxes, assessments and other governmental charges or levies imposed on it or on its income or profits or on any of its property prior to the date on which penalties attach thereto, except for any such tax, assessment, charge or levy the payment of which is being contested in good faith and by proper proceedings and against which appropriate reserves are being maintained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) <u>Investment Company Act</u>. Each Seller Party shall provide prompt notice to Buyer if any Seller Party is required to register as an "investment company" under the Investment Company Act of 1940, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) <u>Special Purpose Entity</u>. Unless otherwise consented to by Buyer in writing, Seller and each REO Subsidiary shall be a Special Purpose Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) <u>Trust Interests</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Seller shall deliver to Buyer the original Trust Certificate re-registered in the name of Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Seller shall not take any action which results in the Trust Certificate being dealt or traded on securities exchanges or securities markets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Seller shall not issue any new classes under the Trust Agreement or the existing Trust Certificate that is subject to a Transaction hereunder without Buyer's prior written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) <u>Increase in Loan Amount</u>. If a Mortgagor requests an increase in the related Loan Amount under any Underlying Asset, the Seller shall, in accordance with the terms of the Trust Agreement, either accept or reject the Mortgagor's request in accordance with the Underwriting and Loan Acquisition Guidelines and the Seller shall notify Buyer in writing of such decision. If the request for a Loan Amount increase is accepted by the Seller, the increase will be effected through modification of the Underlying Asset with the Mortgagor. Seller shall deliver to Buyer an updated Mortgage Loan Schedule reflecting the modification to the Underlying Asset and shall deliver any modified Loan Documents to Custodian. Notwithstanding anything to the contrary herein, in no event shall Buyer have any obligation to fund any advances made to a Mortgagor with respect to any Underlying Asset, which obligations shall be retained by the Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) <u>Trust Agreement</u>. Seller shall not permit the Trust Agreement to be amended, restated or modified without Buyer's prior written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) <u>Voting Rights</u>. Buyer, in its capacity as registered holder of the Trust Certificate hereby grants to Seller a revocable license to exercise all voting and direction rights inuring to the "Holder" (as defined in the Trust Agreement) under the Trust Agreement; <u>provided</u>, <u>however</u>, that no vote shall be cast or direction right exercised or other action taken which would impair the Trust Certificate, the related Trust Interests, the Trust or the Underlying Assets or Buyer's rights thereto or which would be inconsistent with or result in a violation of any provision of this Agreement or any other Program Agreement. For the sake of clarity, the license granted by Buyer pursuant to the prior sentence is revocable by Buyer solely upon the occurrence and continuance of an Event of Default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Events of Default</u>

Each of the following shall constitute an "<u>Event of Default</u>" hereunder, each of which shall be and constitute a separate and independent event or act of default:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Payment Failure</u>. Failure of Seller to (i) make any payment of Price Differential or Repurchase Price or any other sum that has become due on a Repurchase Date or otherwise when due, whether by acceleration or otherwise, under the terms of this Agreement and such failure continues for one (1) Business Day after the sooner to occur of Seller's actual knowledge of such breach or written notice from Buyer to Seller, (ii) cure any Margin Deficit when due pursuant to <u>Section 6</u>, or (iii) make any payment of any other sum that has become due under the terms of this Agreement and such failure continues for three (3) Business Days after the sooner to occur of Seller's actual knowledge of such breach or written notice from Buyer to Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Cross Default</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) (i) a Seller Party shall be in default beyond applicable notice or cure periods under any Indebtedness, in the aggregate, in excess of $50,000,000, which default results in the actual acceleration of the maturity of such Indebtedness by any other party to or beneficiary with respect to such Indebtedness; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) a Seller Party shall have defaulted under, or failed to perform as required under, or shall otherwise breach the terms of any instrument, agreement or contract between such Seller Party, on the one hand, and Buyer or any of Buyer's Affiliates on the other hand, beyond any applicable grace and/or cure period governing any such instrument, agreement or contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Assignment</u>. Any assignment or attempted assignment by a Seller Party of this Agreement or any rights hereunder without first obtaining the specific written consent of Buyer, or the granting by a Seller Party of any Lien (other than Permitted Encumbrances) on any Purchased Asset or Underlying Asset to any Person other than Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Insolvency</u>. An Act of Insolvency shall have occurred with respect to a Seller Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) [<u>Reserved</u>].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Breach of Financial Representation, Covenant or Obligation. A breach by a Seller Party of any of the representations, warranties, covenants or obligations set forth in <u>Sections 7(d)</u>, <u>7(e)</u>, <u>12(a)(6)</u>, <u>12(a)(10)</u>, <u>12(a)(11)</u>, <u>12(a)(20)</u>, <u>12(a)(26)</u>, <u>12(a)(27)</u>, <u>13(b)</u>, <u>13(n)</u>, <u>13(r)</u>, <u>13(x)</u> or <u>13(ff)</u> of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Breach of Non-Financial Representation, Covenant or Obligation</u>. A breach by a Seller Party of any other representation, warranty, covenant or any other obligation set forth in this Agreement or any Program Agreement to which it is a party (and not otherwise specified in <u>Section 14(f)</u> above) or any other failure to perform under this Agreement or any Program Agreement to which it is a party susceptible to cure, if such breach is not cured within thirty (30) days after the sooner to occur of such Seller Party's actual knowledge of such breach or written notice from Buyer to such Seller Party (other than the representations and warranties set forth in <u>Schedule 1-A</u> or <u>1-B</u>, which shall be considered solely for the purpose of determining the Asset Margin Base, the existence of a Margin Deficit and the obligation to repurchase the applicable Purchased Asset or Underlying Asset, and the breach thereof shall not constitute (or be deemed to constitute) an Event of Default, unless (i) such party shall have made any such representations and warranties with knowledge that they were materially false or misleading at the time made, or (ii) any such representations and warranties have been determined by Buyer in its sole discretion to be materially false or misleading on a regular basis, then such breach shall constitute an immediate Event of Default and Seller shall have no cure right hereunder).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Change in Control</u>. The occurrence of a Change in Control without the prior written consent of Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Failure to Transfer</u>. Seller fails to transfer the Purchased Assets to Buyer, or fails to transfer one or more Mortgage Loans subject to a Transaction to the Trustee on behalf of the Trust, on or prior to the applicable Purchase Date (provided Buyer has tendered the related Purchase Price).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Judgment</u>. A final judgment or judgments for the payment of money in an amount greater than $50,000,000 that is not insured against is entered against such Seller Party by one or more Governmental Authorities and the same is not satisfied, discharged (or provision has not been made for such discharge) or bonded, or a stay of execution thereof has not been procured, within sixty (60) days from the date of entry thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Government Action</u>. Any Governmental Authority takes any action to (i) condemn, seize or appropriate, or assume custody or control of, all or any substantial part of the property of a Seller Party, (ii) displace the management of a Seller Party or curtail its authority in the conduct of the business of such Seller Party, (iii) terminate the activities of a Seller Party as contemplated by the Program Agreements, or (iv) remove, limit or restrict the approval of a Seller Party of the foregoing as an issuer, buyer or seller of securities, and in each case such action is not discontinued or stayed within thirty (30) days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Inability to Perform</u>. A Responsible Officer of a Seller Party shall admit such Seller Party's inability to, or its intention not to, perform any material obligation under any applicable Program Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Security Interest</u>. Buyer ceases for any reason to have a valid and perfected first priority security interest, subject only to Permitted Encumbrances, in the Purchased Assets or other Repurchase Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Financial Covenants.</u> The Guarantor shall, at any time from and after the initial Purchase Date with respect to the initial Transaction under this Agreement, fail to satisfy any of the financial covenants set forth in Section 9 of the Guaranty as of any applicable testing date therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Remedies and Procedural Requirements Upon Default</u>

In the event an Event of Default is continuing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Buyer may, at its option, declare an Event of Default to have occurred hereunder (which option shall be deemed to have occurred automatically upon the occurrence of the Event of Default set forth in <u>Section 14(d)</u>) and, upon the exercise or deemed exercise of such option, the Repurchase Date for each Transaction hereunder shall, if it has not already occurred, be deemed immediately to occur (except that, in the event that the Purchase Date for any Transaction has not yet occurred as of the date of such exercise or deemed exercise, such Transaction shall be deemed immediately canceled). Buyer shall (except upon the occurrence of an Act of Insolvency) give written notice to each Seller Party of the exercise of such option as promptly as practicable. (For purposes of this provision, notice provided by electronic mail in accordance with <u>Section 19</u> shall constitute written notice.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If Buyer exercises or is deemed to have exercised the option referred to in <u>paragraph (a)</u> of this Section, (i) Seller's obligations in such Transactions to repurchase any or all Purchased Assets, at the Repurchase Price therefor on the Repurchase Date determined in accordance with <u>paragraph (a)</u> of this Section, shall thereupon become immediately due and payable, (ii) all Income paid after such exercise or deemed exercise shall be retained by Buyer, or, to the extent not yet transferred to the applicable Collection Account, remitted to Buyer, and, in any case, may be applied, in Buyer's sole discretion, to the aggregate unpaid Repurchase Prices for all outstanding Transactions and any other amounts owing by Seller hereunder, and (iii) Seller shall immediately comply with the further instructions of Buyer with respect to holding or delivering any of the Mortgage Files relating to any Underlying Assets subject to such Transactions then in Seller's possession or control. In addition, Buyer shall have the right to satisfy any Obligations with funds remaining in the Collection Accounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Buyer also shall have the right to obtain physical possession, and to commence an action to obtain physical possession, of all Records and files of Seller and each REO Subsidiary relating to the Purchased Assets and the Underlying Assets and all documents relating to the Underlying Assets (including, without limitation, any legal, credit or servicing files with respect to the Underlying Assets) and the Underlying Assets that are then or may thereafter come in to the possession of Seller, REO Subsidiary or any third party acting for Seller or the REO Subsidiary. Buyer shall be entitled to specific performance of all agreements of Seller or each REO Subsidiary contained in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Buyer shall have the right to direct Servicer, as servicer of any Underlying Assets, to remit all collections thereon to Buyer to the extent that Servicer is not currently remitting to Buyer, and if any such payments are received by Seller or REO Subsidiary, such Seller or REO Subsidiary shall not commingle the amounts received with other funds of Seller or REO Subsidiary and shall promptly pay them over to Buyer. Buyer shall also have the right to terminate Servicer, as servicer of any or all Underlying Assets, with or without cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In addition, Buyer shall have the right to immediately sell the Purchased Assets and the Underlying Assets (including, without limitation, the Servicing Rights) and liquidate all the Purchased Assets and Underlying Assets. Such disposition of Purchased Assets and/or Underlying Assets may be, at Buyer's option, on either a servicing-released or a servicing-retained basis. Buyer shall not be required to give any warranties as to the Purchased Assets or the Underlying Assets with respect to any such disposition thereof. Buyer may specifically disclaim or modify any warranties of title or the like relating to the Purchased Assets or the Underlying Assets. The foregoing procedure for disposition of the Purchased Assets and/or Underlying Assets and liquidation thereof shall not be considered to adversely affect the commercial reasonableness of any sale thereof. Seller agrees that it would be commercially reasonable for Buyer to dispose of the Purchased Assets, the Underlying Assets or any portion thereof by using Internet sites that provide for the auction of assets similar to the Purchased Assets or Underlying Assets, as applicable, or that match buyers and sellers of assets similar to the Purchased Assets or Underlying Assets. Buyer shall be entitled to place the Underlying Assets in a pool for issuance of mortgage-backed securities at the then-prevailing price for such securities and to sell such securities for the then-prevailing price in the open market. Buyer shall also be entitled to sell any or all of such Purchased Assets and/or Underlying Asset individually for the then-prevailing price. Buyer shall also be entitled, in its sole discretion to elect, in lieu of selling all or a portion of such Purchased Assets and/or Underlying Assets, to give Seller credit for such Purchased Assets and/or Underlying Assets in an amount equal to the then-current market value of the Purchased Assets (as determined by Buyer (or an Affiliate thereof) in its sole discretion using methodology consistent with Buyer's determination with respect to similar portfolios) against the aggregate unpaid Repurchase Price and any other amounts owing by Seller hereunder. Seller hereby expressly acknowledges and agrees that Buyer's market value pricing pursuant to this <u>Section 15(e)</u> is a "generally recognized source" as that phrase is used in Section 559 of the Bankruptcy Code. For the avoidance of doubt, the sale and liquidation of Underlying Assets pursuant to this <u>Section 15(e)</u>, including Seller's credit in lieu of sale, shall be valued as of the date of any such sale, liquidation or Seller's credit and not on the date of an Event of Default or any other date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Upon the occurrence of an Event of Default, Buyer may apply any proceeds from the liquidation of the Purchased Assets and/or related Underlying Assets to the Repurchase Prices hereunder and all other Obligations in the manner Buyer deems appropriate in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Seller shall be liable to Buyer for (i) the amount of all reasonable legal or other expenses (including, without limitation, all costs and expenses of Buyer in connection with the enforcement of this Agreement or any other agreement evidencing a Transaction, whether in action, suit or litigation or bankruptcy, insolvency or other similar proceeding affecting creditors' rights generally, further including, without limitation, the reasonable fees and expenses of counsel (including the cost of counsel of Buyer)) incurred in connection with or as a result of an Event of Default, (ii) damages in an amount equal to the cost (including any fee, expense and commission) of entering into replacement transactions and entering into or terminating hedge transactions in connection with or as a result of an Event of Default, and (iii) any other loss, damage, cost or expense directly arising or resulting from the occurrence of an Event of Default in respect of a Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Seller shall be liable to Buyer for the Repurchase Price related to a Transaction, and, to the extent permitted by applicable law, Seller shall be liable to Buyer for interest on any amounts owing by Seller hereunder, from the date Seller becomes liable for such amounts hereunder until such amounts are (i) paid in full by Seller or (ii) satisfied in full by the exercise of Buyer's rights hereunder. Interest on any sum payable by Seller under this paragraph shall be at a rate equal to the Post Default Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Buyer shall have, in addition to its rights hereunder, any rights otherwise available to it under any other agreement or applicable law, including, without limitation, any equitable remedies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Buyer may exercise one or more of the remedies available to Buyer immediately upon the occurrence of an Event of Default and, except to the extent provided in <u>paragraph (a)</u> of this Section, at any time thereafter without notice to Seller. All rights and remedies arising under this Agreement are cumulative and not exclusive of any other right or remedy that Buyer may have or to which Buyer may be entitled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Buyer may enforce its rights and remedies hereunder without prior judicial process or hearing, and each of Seller and REO Subsidiary hereby expressly waives any defenses Seller and/or REO Subsidiary might otherwise have to require Buyer to enforce its rights by judicial process. Each of Seller and REO Subsidiary also waives any defense (other than a defense of payment or performance) Seller and/or REO Subsidiary might otherwise have arising from the use of nonjudicial process, enforcement and sale of all or any portion of the Purchased Assets and/or the related Underlying Assets, or from any other election of remedies. Each of Seller and REO Subsidiary recognizes that nonjudicial remedies are consistent with the usages of the trade, are responsive to commercial necessity and are the result of a bargain at arm's length.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Exercise the Unwind Rights pursuant to the terms of the Program Agreements and the Trust Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Reports</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Notices</u>. Each Seller Party shall furnish to Buyer (w) immediately upon receipt, copies of any material and adverse notices (including, without limitation, notices of defaults, breaches, potential defaults or potential breaches), (x) immediately upon distribution to a Seller Party's lender, any material financial information not otherwise required to be provided by a Seller Party hereunder but is given to a Seller Party's lender, (y) immediately, notice of the occurrence of any Event of Default hereunder or default or breach by a Seller Party of any obligation under any Program Agreement or any material contract or agreement of a Seller Party or the occurrence of any event or circumstance that such party reasonably expects has resulted in, or will, with the passage of time, result in, a Material Adverse Effect or an Event of Default, and (z) the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) from time to time such other information regarding the financial condition, operations, or business of a Seller Party as Buyer may reasonably request;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) as soon as reasonably possible, notice of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any material change in the insurance coverage required of a Seller Party or any other Person pursuant to any Program Agreement, with a copy of evidence of same attached;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) any claim, dispute, litigation, investigation, proceeding or suspension between (y) any Seller Party and (z) any Governmental Authority, or (ii) any claim, dispute, litigation, investigation, proceeding or suspension between (y) any of a Seller Party and (z) any other Person; <u>provided</u>, <u>that</u>, in each case, such claim, dispute, litigation, investigation, proceeding or suspension individually or in the aggregate is reasonably likely to cause a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any material change in accounting policies or financial reporting practices of a Seller Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) with respect to any Underlying Asset, promptly upon actual knowledge of a Responsible Officer of Seller, that the value of such Underlying Asset has been materially and adversely affected for any reason;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any issues raised upon examination of a Seller Party's facilities by any Governmental Authority, which issues could reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any breach of a representation or warranty set forth in <u>Schedule 1-A</u> or <u>1-B</u> hereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any other event, circumstance or condition that has resulted, or would reasonably be expected to result, in a Material Adverse Effect with respect to a Seller Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Mortgage Loan Reports</u>. Each of Seller and each REO Subsidiary will furnish to Buyer monthly electronic Underlying Asset performance data, including, without limitation, delinquency reports, and any other periodic reports, servicing reports, data feeds or other information related to the servicing of the Underlying Assets received by Seller from the Servicer. In addition to the foregoing, with respect to each Underlying Asset that is a Permitted Delinquent Asset, Sellers and REO Subsidiary shall furnish to Buyer monthly electronic performance data for such Underlying Assets, including, without limitation, (i) the number of days delinquent, (ii) the delinquency category (*e.g.*, active loss mitigation, foreclosure, REO, etc.), (iii) the existence of any bankruptcy flag and the status of any related bankruptcy or similar proceeding (if applicable), (iv) the status of any pending foreclosure or similar proceeding (if applicable), (v) the number of days that have elapsed since the commencement of an Enforcement Action (if applicable), (vi) the number of days that have elapsed since the completion of a Realization Event (if applicable), (vii) the exit plan and (viii) any other reports, documentation or other information reasonably requested by Buyer with respect to such Underlying Asset, the related Mortgagor and/or the related Mortgaged Property (or REO Property, as applicable).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Asset Tape</u>. Seller shall cause Servicer to provide an Asset Tape to Buyer or the Custodian in accordance with <u>Section 13(d)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Status/Valuation of Mortgaged Properties (and REO Properties)</u>. The Seller shall provide to Buyer monthly electronic valuations of each Mortgaged Property and REO Property underlying an Underlying Asset and an update on the "for sale" status of such Mortgaged Property (or REO Property, as applicable), each in a format mutually acceptable to Buyer and Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Remittance Report</u>. Each Seller Party shall cause Servicer to provide a Remittance Report to Buyer, in an electronic format acceptable to Buyer (i) on each Reporting Date if there are collections on the Underlying Assets, and (ii) within one (1) Business Day of any of the following (A) the occurrence and continuation of an Event of Default, (B) any payment in full, or (C) the request of Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Regulatory Action</u>. Each Seller Party shall promptly provide Buyer with written notice of any investigation, commenced or threatened, by any federal, state or local government agency that such Seller Party is not prohibited from providing notice thereof to Buyer and to the extent such investigation could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Other</u>. Each Seller Party shall deliver to Buyer any other reports or information reasonably requested by Buyer or as otherwise required pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Financings and Repurchase Transactions</u>

Buyer may, in its sole election, engage in repurchase transactions with the Purchased Assets or otherwise pledge, hypothecate, assign, transfer or otherwise convey the Purchased Assets with a counterparty of Buyer's choice. Upon receipt of the Repurchase Price and all fees and expenses related to any Underlying Asset, Buyer is obliged to transfer Underlying Assets to Seller pursuant to <u>Section 4</u> hereof and credit or pay Income to, or apply Income to the obligations of, Seller pursuant to <u>Section 7</u> hereof; <u>provided</u>, that in each instance an Event of Default is not continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Single Agreement</u>

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Notices and Other Communications</u>

Any and all notices (with the exception of Transaction Requests), statements, demands or other communications hereunder may be given by a party to the other by United States Postal Service, electronic mail or facsimile to Seller's or Buyer's address specified in the Pricing Side Letter or so sent to such party at any other place specified in a notice of change of address hereafter received by the other. Notice provided by electronic mail or facsimile shall be deemed to be given upon transmission; <u>provided</u>, that, an electronic notice of non-transmission is not received.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Entire Agreement; Severability</u>

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Non-Assignability</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Buyer may, at any time, sell participations in all or any portion of Buyer's rights and/or obligations under this Agreement and the Program Agreements, (i) without notice to or consent of a Seller Party, (x) to any Affiliate of Buyer (including any Person managed or otherwise subject to an investment management agreement with Buyer or any Affiliate of Buyer) or (y) after the occurrence and during the continuance of an Event of Default, to any Person (other than a natural person or a Seller Party or any Affiliate of a Seller Party) (a "<u>Participant</u>"), and (ii) upon five (5) Business Days' written notice to and written consent of Seller, to any Participant; <u>provided</u>, that (i) Buyer's obligations under the Program Agreements shall remain unchanged, (ii) Buyer shall remain solely responsible to each Seller Party for the performance of such obligations, and (iii) each Seller Party shall continue to deal solely and directly with Buyer in connection with Buyer's rights and obligations under the Program Agreements. Buyer shall, acting solely for this purpose as a non-fiduciary agent of each Seller Party, maintain a register of Participants in accordance with Section 5f.103-1(c) of the United States Treasury Regulations (the "<u>Participant Register</u>") on which it enters the name and address of each Participant and the percentage or portion of each Participant's interest in the Purchased Assets or other obligations under the Program Agreements; <u>provided</u>, that Buyer shall not have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant's interest in any commitments, loans, letters of credit or its other obligations under any Program Agreement) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103 1(c) of the United States Treasury Regulations. No Participant shall have any right to approve any amendment, waiver or consent with respect to any Program Agreement, except to the extent that the Repurchase Price or Price Differential of any Purchased Asset would be reduced or the Repurchase Date of any Purchased Asset or Underlying Asset would be postponed. Each Participant shall be entitled to the benefits of <u>Section 10</u> to the same extent as if it had acquired its interest by assignment pursuant to <u>Section 21(b)</u> (subject to the requirements and limitations therein, including the requirements under <u>Section 10(g)</u> (it being understood that the documentation required under <u>Section 10(g)</u> shall be delivered to the participating Buyer)), but shall not be entitled to receive any greater payment thereunder than Buyer would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with Seller's prior written consent. To the extent permitted by Requirements of Law, each Participant shall be entitled to the benefits of <u>Sections 15(k)</u>, <u>22</u> and <u>28</u> to the same extent as if it had acquired its interest by assignment pursuant to <u>Section 21(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Program Agreements are not assignable by any Seller Party. Buyer may, at any time, assign all or a portion of its rights and obligations under this Agreement and the Program Agreements (i) without notice to or consent of a Seller Party, (x) to any Affiliate of Buyer (including any Person managed or otherwise subject to an investment management agreement with Buyer or any Affiliate of Buyer) or (y) after the occurrence and during the continuance of an Event of Default, to any Person (other than a natural person or a Seller Party or any Affiliate of a Seller Party) (an "<u>Assignee</u>"), and (ii) upon five (5) Business Days' written notice to and written consent of Seller, to any Assignee; <u>provided</u>, that Buyer shall maintain, as agent of Seller, for review by the Seller Parties upon written request, a register of assignees in accordance with Section 5f.103-1(c) of the United States Treasury Regulations (the "<u>Assignment Register</u>" and, together with the Participant Register, the "<u>Registers</u>") and a copy of an executed assignment and acceptance by Buyer and assignee ("<u>Assignment and Acceptance</u>"), specifying the percentage or portion of such rights and obligations assigned. Upon such assignment, (a) such assignee shall be a party hereto and to each Program Agreement to the extent of the percentage or portion set forth in the Assignment and Acceptance, and shall succeed to and assume the applicable rights and obligations of Buyer hereunder, and (b) so long as such assignee has succeeded to and assumed the applicable rights and obligations of Buyer hereunder, Buyer shall be released from its obligations hereunder and under the Program Agreements to the extent of the percentage or portion set forth in the Assignment and Acceptance. Other than in the case of a 100% assignment of Buyer's rights and obligations under this Agreement and the other Program Agreements, each Seller Party shall continue to take directions solely from Buyer. Buyer may distribute to any prospective assignee any document or other information delivered to Buyer by a Seller Party, provided such prospective assignee agrees in writing to be bound by the confidentiality and non-circumvention provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The entries in each Register shall be conclusive absent manifest error, and Buyer shall treat each Person whose name is recorded in a Register as the owner of such participation or assignment interest, as applicable, for all purposes of the Program Agreements notwithstanding any notice to the contrary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. <u>Set-off</u>

In addition to any rights now or hereafter granted under the Program Agreements, Requirements of Law or otherwise, Seller hereby grants to Buyer and each Indemnified Party, to secure repayment of the Obligations, a right of set-off upon any and all of the following: monies, securities, collateral or other property of Seller and any proceeds from the foregoing, now or hereafter held or received by Buyer, any Affiliate of Buyer or any Indemnified Party, for the account of Seller, whether for safekeeping, custody, pledge, transmission, collection or otherwise, and also upon any and all deposits (general, specified, special, time, demand, provisional or final) and credits, claims or Indebtedness of Seller at any time existing, and any obligation owed by Buyer or any Affiliate of Buyer to Seller and to set–off against any Obligations or Indebtedness owed by the Seller and any Indebtedness owed by Buyer or any Affiliate of Buyer to Seller, in each case whether direct or indirect, absolute or contingent, matured or unmatured, whether or not arising under the Program Agreements and irrespective of the currency, place of payment or booking office of the amount or obligation and in each case at any time held or owing by Buyer, any Affiliate of Buyer or any Indemnified Party to or for the credit of Seller, without prejudice to Buyer's right to recover any deficiency. Each of Buyer, each Affiliate of Buyer and each Indemnified Party is hereby authorized upon any amount becoming due and payable by Seller to Buyer or any Indemnified Party under the Program Agreements, the Obligations or otherwise or upon the occurrence of an Event of Default, without notice to Seller, any such notice being expressly waived by Seller to the extent permitted by any Requirements of Law, to set–off, appropriate, apply and enforce such right of set–off against any and all items hereinabove referred to against any amounts owing to Buyer or any Indemnified Party by Seller under the Program Agreements and the Obligations, irrespective of whether Buyer, any Affiliate of Buyer or any Indemnified Party shall have made any demand under the Program Agreements and regardless of any other collateral securing such amounts, and in all cases without waiver or prejudice of Buyer's rights to recover a deficiency. Seller shall be deemed directly indebted to Buyer and the other Indemnified Parties in the full amount of all amounts owing to Buyer and the other Indemnified Party by Seller under the Program Agreements and the Obligations, and Buyer and the other Indemnified Party shall be entitled to exercise the rights of set–off provided for above. ANY AND ALL RIGHTS TO REQUIRE BUYER OR OTHER INDEMNIFIED PARTY TO EXERCISE THEIR RIGHTS OR REMEDIES WITH RESPECT TO THE PURCHASED ASSETS OR THE UNDERLYING ASSETS OR OTHER INDEMNIFIED PARTIES UNDER THE PROGRAM AGREEMENTS, PRIOR TO EXERCISING THE FOREGOING RIGHT OF SET–OFF, ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED BY Seller.

Buyer or any Indemnified Party shall promptly notify Seller after any such set–off and application made by Buyer or such Indemnified Party; <u>provided</u>, that, the failure to give such notice shall not affect the validity of such set–off and application. If an amount or obligation is unascertained, Buyer may in good faith estimate that obligation and set-off in respect of the estimate, subject to the relevant party accounting to the other party when the amount or obligation is ascertained. Nothing in this <u>Section 22</u> shall be effective to create a charge or other security interest. This <u>Section 22</u> shall be without prejudice and in addition to any right of set-off, combination of accounts, Lien or other rights to which any party is at any time otherwise entitled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. <u>Binding Effect; Governing Law; Jurisdiction</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement shall be binding and inure to the benefit of the parties hereto and their respective successors and permitted assigns. Each party acknowledges that the obligations of such party hereunder or otherwise are not the subject of any guaranty by, or recourse to, any direct or indirect parent or other Affiliate of such party (other than under the Guaranty). THIS AGREEMENT AND ANY CLAIM, CONTROVERSY, DISPUTE or cause of action (whether in contract, tort or otherwise) based upon, ARISING UNDER OR RELATED TO OR IN CONNECTION WITH THIS AGREEMENT, the transactions contemplated by this agreement, THE RELATIONSHIP OF THE PARTIES HERETO, AND/OR THE INTERPRETATION AND ENFORCEMENT OF THE RIGHTS AND DUTIES OF THE PARTIES HERETO SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAW OF THE STATE OF NEW YORK, including the statutes of limitations and other procedural laws thereof, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW, which shall apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) each PARTY HERETO HEREBY WAIVES TRIAL BY JURY. each Seller Party HEREBY IRREVOCABLY CONSENTS TO THE EXCLUSIVE JURISDICTION OF ANY COURT OF THE STATE OF NEW YORK, OR IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, ARISING OUT OF OR RELATING TO THE PROGRAM AGREEMENTS IN ANY ACTION OR PROCEEDING. each PARTY HERETO HEREBY SUBMITS TO, AND WAIVES ANY OBJECTION IT MAY HAVE TO, EXCLUSIVE PERSONAL JURISDICTION AND VENUE IN THE COURTS OF THE STATE OF NEW YORK AND THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, WITH RESPECT TO ANY DISPUTES ARISING OUT OF OR RELATING TO THE PROGRAM AGREEMENTS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) each Party HERETO HEREBY WAIVES ANY RIGHT TO CLAIM OR RECOVER IN ANY LITIGATION WHATSOEVER INVOLVING ANY INDEMNIFIED PARTY, ANY SPECIAL, EXEMPLARY, PUNITIVE, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY KIND OR NATURE WHATSOEVER OR ANY DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES, WHETHER SUCH WAIVED DAMAGES ARE BASED ON STATUTE, CONTRACT, TORT, COMMON LAW OR ANY OTHER LEGAL THEORY, WHETHER THE LIKELIHOOD OF SUCH DAMAGES WAS KNOWN AND REGARDLESS OF THE FORM OF THE CLAIM OF ACTION. NO INDEMNIFIED PARTY SHALL BE LIABLE FOR ANY DAMAGES ARISING FROM THE USE BY UNINTENDED RECIPIENTS OF ANY INFORMATION OR OTHER MATERIALS DISTRIBUTED BY IT THROUGH TELECOMMUNICATIONS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) each PARTY HERETO ACKNOWLEDGES THAT THE WAIVERS IN THIS <u>SECTION 23</u> ARE A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT SUCH PARTY HAS ALREADY RELIED ON SUCH WAIVERS IN ENTERING INTO THE PROGRAM AGREEMENTS, AND THAT SUCH PARTY WILL CONTINUE TO RELY ON SUCH WAIVERS IN THEIR RELATED FUTURE DEALINGS UNDER THE PROGRAM AGREEMENTS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) THE PROVISIONS OF THIS <u>SECTION 23</u> SHALL SURVIVE TERMINATION OF THE PROGRAM AGREEMENTS AND THE PAYMENT IN FULL OF THE OBLIGATIONS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. <u>No Express or Implied Waivers; Amendments and Modifications, Etc.</u>

No express or implied waiver of any Event of Default by Buyer shall constitute a waiver of any other Event of Default and no exercise of any remedy hereunder by any party shall constitute a waiver of its right to exercise any other remedy hereunder. No amendment, restatement, modification or waiver of any provision of this Agreement and no consent by any party to a departure herefrom shall be effective unless and until such shall be in writing and duly executed by each of the parties hereto. Without limitation of any of the foregoing, the failure to give a notice pursuant to <u>Section 6(b)</u>, <u>Section 16</u> or otherwise, will not constitute a waiver of any right to do so at a later date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. <u>Intent</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Seller Party and Buyer intend and recognize, to the fullest extent permitted under the Bankruptcy Code, that (i) each Transaction is a "securities contract" as that term is defined in Section 741(7)(A)(i) of the Bankruptcy Code, and a "master netting agreement" as that term is defined in Section 101(38A)(A) of the Bankruptcy Code (except insofar as the type of Purchased Assets subject to such Transaction or the term of such Transaction would render such definition inapplicable), (ii) the pledge of the Related Credit Enhancement in <u>Section 34</u> hereof is intended to constitute a "security agreement or arrangement or other credit enhancement" that is "related to" this Agreement and the Transactions hereunder within the meaning of Sections 101(38A)(A), 101(47)(A)(v) and 741(7)(A)(xi) of the Bankruptcy Code and (iii) each of the Guaranty and Pledge Agreement constitutes "a security agreement or other arrangement or other credit enhancement" that is "related to" the Agreement and Transactions hereunder within the meaning of Sections 101(38A)(A) and 741(7)(A)(xi) of the Bankruptcy Code. Each party hereto further agrees that it shall not challenge, and hereby waives to the fullest extent available under applicable law its right to challenge, the characterization of this Agreement or any Transaction hereunder as a "master netting agreement," "repurchase agreement" and/or "securities contract" within the meaning of the Bankruptcy Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Seller Party and Buyer intend and acknowledge that (i)(1) for so long as Buyer is a "financial institution," "financial participant" or another entity listed in Sections 555, 559, 561, 362(b)(6), 362(b)(7) or 362(b)(27) of the Bankruptcy Code, Buyer shall be entitled to, without limitation, the liquidation, termination, acceleration, netting, set-off, and non-avoidability rights afforded to parties such as Buyer to "securities contracts" pursuant to Sections 555, 362(b)(6) and 546(e) of the Bankruptcy Code and "master netting agreements" pursuant to Sections 561, 362(b)(27) and 546(j) of the Bankruptcy Code, and (2) Buyer's right to liquidate the Purchased Assets and other Repurchase Assets delivered to it in connection with the Transactions hereunder or to accelerate or terminate this Agreement or otherwise exercise any other remedies pursuant to Section 15 hereof is a contractual right to liquidate, accelerate or terminate such Transaction as described in Bankruptcy Code Sections 555, 559 and 561; (ii) Buyer's right to set-off claims and appropriate and apply any and all deposits of money or property or any other indebtedness at any time held or owing by Buyer to or for the credit of the account of any Affiliate against and on account of the obligations and liabilities of Seller pursuant to Section 22 hereof is a contractual right as described in Bankruptcy Codes Section 553 and 561; and (iii) any payments or transfers of property made with respect to this Agreement or any Transaction shall be considered a "margin payment" or "settlement payment" as such terms are defined in Bankruptcy Code Sections 741(5) and 741(8).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Seller Party and Buyer agree that this Agreement is intended to create mutuality of obligations among the parties, and as such, this Agreement constitutes a contract which (i) is between all of the parties and (ii) places each party in the same right and capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. <u>Power of Attorney</u>

Each of Seller and REO Subsidiary authorizes Buyer to file such financing statement or statements relating to the Purchased Assets and the related Underlying Assets without each Seller's signature thereon as Buyer, at its option, may deem appropriate. Each of Seller and REO Subsidiary hereby appoints Buyer as Seller's agent and attorney-in-fact to execute any such financing statement or statements in Seller's name and to perform all other acts Buyer deems appropriate to perfect and continue its ownership interest in and/or the security interest granted hereby, if applicable, and to protect, preserve and realize upon the Purchased Assets and the related Underlying Assets, including, but not limited to, the right to endorse notes, complete blanks in documents, transfer servicing, providing "good-bye" letters to the Mortgagor, and sign assignments on behalf of Seller and REO Subsidiary as its agent and attorney-in-fact. This agency and power of attorney is coupled with an interest and is irrevocable without Buyer's consent, and each of Seller and REO Subsidiary shall at Buyer's request immediately execute all powers of attorney in favor of Buyer in the form attached hereto as <u>Exhibit B</u>. In addition, each of Seller and REO Subsidiary shall direct that, pursuant to its execution and delivery of such a power of attorney, certain personnel of Buyer may take certain actions on behalf of Seller and/or REO Subsidiary following the occurrence and during the continuance of an Event of Default, with such direction to survive until all obligations of Seller hereunder are satisfied. Seller shall pay the filing costs for any financing statement or statements prepared pursuant to this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27. <u>Buyer May Act Through Affiliates</u>

Buyer may, from time to time, designate one or more Affiliates for the purpose of performing any action hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28. <u>Indemnification; Obligations</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Seller agrees to hold Buyer and each of its respective Affiliates and their officers, directors, employees, agents, attorneys and advisors (each, an "Indemnified Party") harmless from and indemnify each Indemnified Party (and will reimburse each Indemnified Party as the same is incurred) against all liabilities, losses, damages, judgments, costs and expenses (including, without limitation, reasonable fees and expenses of counsel) of any kind which may be imposed on, incurred by, or asserted against any Indemnified Party relating to or arising out of this Agreement, any Transaction Request, any Program Agreement or any transaction contemplated hereby or thereby resulting from anything other than (i) any Indemnified Party's bad faith, gross negligence or willful misconduct, or (ii) a material breach by any Indemnified Party of its express obligations under any Program Agreement. Seller shall reimburse each Indemnified Party for all reasonable documented out-of-pocket expenses in connection with the enforcement of this Agreement and the exercise of any right or remedy provided for herein, any Transaction Request and any Program Agreement, including, without limitation, the reasonable fees and disbursements of counsel. Seller's agreements in this Section shall survive the payment in full of the Repurchase Price and the expiration or termination of this Agreement. Seller hereby acknowledges that its obligations hereunder are not limited to recoveries each Indemnified Party may have with respect to the Purchased Assets or the Underlying Assets. Each party agrees not to assert any claim against any other party, any of its Affiliates or any Indemnified Party on any theory of liability, for special, indirect, consequential or punitive damages arising out of or otherwise relating to the facility established hereunder, the actual or proposed use of the proceeds of the Transactions, this Agreement or any of the transactions contemplated thereby. THE INDEMNITY IN THIS SECTION EXPRESSLY APPLIES, WITHOUT LIMITATION, TO THE NEGLIGENCE (BUT NOT GROSS NEGLIGENCE OR WILLFUL MISCONDUCT) OF THE INDEMNIFIED PARTIES. Section 28 shall not apply with respect to taxes other than any taxes that represent losses, claims, damages, etc. arising from any non-tax claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without limiting the provisions of <u>paragraph (a)</u> of this Section, if Seller fails to pay when due any costs, expenses or other amounts payable by it under this Agreement, including, without limitation, fees and expenses of counsel and indemnities, such amount may be paid on behalf of Seller by Buyer, in its sole discretion. Seller shall reimburse Buyer for any such costs, including without limitation, per diem interest at the Post Default Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29. <u>Counterparts</u>

This Agreement shall be valid, binding, and enforceable against a party when executed and delivered by an authorized individual on behalf of such party by means of (i) an original manual signature, (ii) a scanned or photocopied manual signature or (iii) any other electronic signature permitted by the federal Electronic Signatures in Global and National Commerce Act, state enactments of the Uniform Electronic Transactions Act, and/or any other relevant electronic signatures law, including any relevant provisions of the Uniform Commercial Code in effect in any applicable jurisdiction (collectively, the "<u>Signature Law</u>"), in each case to the extent applicable. Each scanned or photocopied manual signature or other electronic signature shall for all purposes have the same validity, legal effect and admissibility in evidence as an original manual signature. Each party hereto shall be entitled to conclusively rely upon, and shall have no liability with respect to, any scanned or photocopied manual signature or other electronic signature of any other party and shall have no duty to investigate, confirm or otherwise verify the validity or authenticity thereof. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but such counterparts shall, together, constitute one and the same instrument. For the avoidance of doubt, original manual signatures shall be used for execution or indorsement of writings when required under the Uniform Commercial Code or other Signature Law due to the character or intended character of the writings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30. <u>Confidentiality</u>

Each party hereto hereby acknowledges and agrees that all written or computer-readable information provided by one party to any other regarding the terms set forth in any of the Program Agreements or the Transactions contemplated thereby, including, but not limited to, the name of, or identifying information with respect to any party hereto, any pricing terms, LTV or other nonpublic business or financial information (including, without limitation, any sub-limits, financial covenants, financial statements and performance data), the existence of this Agreement and the Transactions with the Buyer and the Seller Parties (the "<u>Confidential Information</u>") shall be kept confidential and shall not be divulged to any party without the prior written consent of Buyer and each Seller Party except to the extent that (i) it is necessary to disclose to its Affiliates or investors and their respective legal counsel, accountants, auditors, or taxing authorities, (ii) it is requested or required by governmental agencies, regulatory bodies or other legal, governmental or regulatory process, in which case such Seller Party or Buyer, as applicable, shall provide prior written notice to each other party unless legally prohibited from doing so, (iii) any of the Confidential Information is in the public domain other than due to a breach of this covenant, (iv) an Event of Default has occurred and is continuing and Buyer or a Seller Party determines such information to be necessary or desirable to disclose in connection with the marketing and sales of the Purchased Assets or the Underlying Assets or otherwise to enforce or exercise Buyer's or Seller's rights hereunder or (v) Buyer and, to the extent that notice to or the consent of Seller is required pursuant to <u>Section 21</u>, Seller agrees that such information is necessary or desirable to disclose in connection with any transaction or potential transaction or any assignment, participation, potential assignment, potential participation or rehypothecation in accordance with <u>Section 21</u> hereof, so long as such disclosure is subject to an agreement containing provisions substantially the same as (or no less restrictive than) those of this Section. Each party hereto shall be responsible for any breach of the terms of this <u>Section 30</u> by any Person that it discloses Confidential Information to pursuant to <u>clause (i)</u> above. No party hereto shall, without the written consent of each other party, make any communication, press release, public announcement or statement in any way connected to the existence or terms of this Agreement or the other Program Agreements or the Transactions contemplated hereby or thereby, except where such communication or announcement is required by law or regulation, in which event the Seller or Buyer, as applicable, will consult with Buyer or the Seller, as applicable, and cooperate with respect to the wording of any such announcement. Notwithstanding the foregoing or anything to the contrary contained herein or in any other Program Agreement, the parties hereto may disclose to any and all Persons, without limitation of any kind, the federal, state and local tax treatment or tax structure of the Transactions, any fact relevant to understanding the federal, state and local tax treatment or tax structure of the Transactions, and all materials of any kind (including opinions or other tax analyses) relating to such federal, state and local tax treatment and that may be relevant to understanding such tax treatment or tax structure; <u>provided</u> that, such Seller Party or Buyer may not disclose the name of or identifying information with respect to Buyer or any pricing terms (including, without limitation, the Pricing Rate and Purchase Price) or other nonpublic business or financial information (including any sublimits and financial covenants) that is unrelated to the federal, state and local tax treatment of the Transactions and is not relevant to understanding the federal, state and local tax treatment of the Transactions, without the prior written consent of the Seller Parties and Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31. <u>Periodic Due Diligence Review</u>

Each Seller Party acknowledges that Buyer has the right to perform continuing due diligence reviews with respect to such Seller Party, the Purchased Assets and the Underlying Assets, for purposes of verifying compliance with the representations, warranties and specifications made hereunder, or otherwise, and each Seller Party agrees that upon reasonable (but no fewer than three (3) Business Days') prior notice, unless an Event of Default shall have occurred, in which case no notice to Seller Parties is required, Buyer or its authorized representatives will be permitted during normal business hours to examine, inspect, and make copies and extracts of, the Mortgage Files and any and all documents, records, agreements, instruments or information relating to the Purchased Assets or the Underlying Assets in the possession or under the control of a Seller Party and/or the Custodian. Each Seller Party also shall make available to Buyer a knowledgeable financial or accounting officer for the purpose of answering questions respecting the Mortgage. Without limiting the generality of the foregoing, each Seller Party acknowledges that Buyer may enter into Transactions with respect to the Purchased Assets and the related Underlying Assets from Seller based solely upon the information provided by Seller to Buyer in the Mortgage Loan Schedule and the representations, warranties and covenants contained herein, and that Buyer, at its option, has the right at any time to conduct a partial or complete due diligence review on some or all of the Purchased Assets and Underlying Assets subject to a Transaction, including, without limitation, ordering Broker Price Opinions, new credit reports and new Evaluation/Appraisals on the related Mortgaged Properties and REO Properties and otherwise re-generating the information used to originate such Underlying Asset, which such information may be used by Buyer to calculate the Asset Margin Base. Buyer may underwrite such Underlying Assets itself or engage a mutually agreed upon third party underwriter to perform such underwriting. Each Seller Party agrees to cooperate with Buyer and any third party underwriter in connection with such underwriting, including, but not limited to, providing Buyer and any third party underwriter with access to any and all documents, records, agreements, instruments or information relating to such Underlying Assets therein in the possession, or under the control, of such Seller Party. Each Seller Party also further agrees that Seller Parties shall pay all reasonable out-of-pocket costs and expenses incurred by Buyer in connection with Buyer's activities pursuant to this <u>Section 31</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32. <u>Authorizations</u>

Any of the persons whose signatures and titles appear on <u>Schedule 2</u> hereto are authorized, acting singly, to act for Seller, Guarantor or Buyer, as the case may be, under this Agreement and the other Program Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33. <u>Documents Mutually Drafted</u>

Each Seller Party and Buyer agree that this Agreement and each other Program Agreement prepared in connection with the Transactions set forth herein have been mutually negotiated by each party, and consequently such documents shall not be construed against either party as the drafter thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34. <u>Security Interest</u>

Although the parties intend that, except as provided in <u>Section 10(f)</u>, all Transactions hereunder be sales and purchases and not loans, each Granting Party hereby pledges to Buyer as security for performance by Seller of Seller's obligations and hereby grants, assigns and pledges to Buyer a fully perfected first priority security interest in all of each Granting Party's right, title and interest in and to the Purchased Assets, the Records, and all related Servicing Rights with respect to the Underlying Assets, the Program Agreements, any Property relating to the Underlying Assets, all insurance policies and insurance proceeds relating to any Underlying Asset or the related Mortgaged Property, including, but not limited to, any payments or proceeds under any related primary insurance covering the related Mortgaged Property for an Underlying Asset, hazard insurance covering the related Mortgaged Property for an Underlying Asset, Income, each Collection Account, the Interest Reserve Account and each Reserve Account and all amounts and property from time to time on deposit therein and all replacements, substitutions or distributions on or proceeds, payments and profits of, and records and files relating to such accounts (including any interest of any Granting Party in escrow accounts) and any other contract rights, instruments, accounts, payments, rights to payment (including payments of interest or finance charges), general intangibles and other assets relating to the Underlying Assets (including, without limitation, any other accounts) or any interest in the Underlying Assets, including all rights to receive from any third party or take delivery of any Records or other documents which constitute part of a Mortgage File, and any proceeds and distributions with respect to any of the foregoing and any other property, rights, title or interests as are specified on a Transaction Request and/or Trust Receipt, in all instances, whether now owned or hereafter acquired, now existing or hereafter created (collectively, the "<u>Primary Repurchase Assets</u>" together with the Pledged Assets, the "<u>Repurchase Assets</u>").

Each Granting Party agrees to execute, deliver and/or file such documents and perform such acts as may be reasonably necessary to fully perfect Buyer's security interest created hereby.

In addition, pursuant to the Pledge Agreement, the Trustee on behalf of the Trust shall grant to Buyer a security interest in and to, and pledge all of its rights, title and interest under, the Pledged Assets as additional support for the Obligations hereunder, and Rithm Loan Aggregation Trust shall grant to Buyer a security interest in and to, and pledge of all of its rights, title and interest under the Residual Pledged Collateral (as defined in the Residual Pledge Agreement), which additional security agreements shall be considered "a security agreement or other arrangement or other credit enhancement" that is "related to" the Agreement and Transactions hereunder within the meaning of Bankruptcy Code Sections 101(38A)(A) and 741(7)(A)(x) (together with the Primary Repurchase Assets, the "<u>Related Credit Enhancement</u>").

Furthermore, each Granting Party hereby authorizes Buyer to file financing statements relating to the Purchased Assets and the Underlying Assets, as Buyer may deem appropriate. Each Granting Party also hereby irrevocably authorizes Buyer and its counsel to file UCC financing statements with respect to such Granting Party in form and substance satisfactory to Buyer, describing the collateral as "All assets of Granting Party, whether now owned or existing or hereafter acquired or arising and wheresoever located, and all proceeds and products thereof" or words to that effect, notwithstanding that such description may be broader than the collateral granted hereby. Seller shall pay the filing costs for any financing statement or statements prepared pursuant to this Section. Seller shall pay the filing costs for any financing statement or statements prepared pursuant to this <u>Section 34</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Trust Interests as Securities</u>. The parties (i) acknowledge and agree that each of the Trust Interests each shall constitute and remain "securities" as defined in Article 8 of the UCC and (ii) covenant and agree that such Trust Interests are not and will not be dealt in or traded on securities exchanges or securities markets. Seller shall, at its sole cost and expense, take all steps as may be necessary in connection with the indorsement, transfer, delivery and pledge of all Trust Interests that are Purchased Assets to Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Additional Interests</u>. If, as a result of ownership of the Trust Interests, Seller shall become entitled to receive or shall receive any certificate evidencing any such Trust Interest or other equity interest, any option rights, whether in addition to, in substitution for, as a conversion of, or in exchange for such Trust Interests, or otherwise in respect thereof, Seller shall accept the same as the Buyer's agent, hold the same in trust for the Buyer and deliver the same forthwith to the Buyer in the exact form received, duly indorsed by Seller to the Buyer, if required, together with an undated transfer power, if required, covering such certificate duly executed in blank, to be held by the Buyer subject to the terms hereof as additional security for the Obligations. If following the occurrence and during the continuation of an Event of Default any sums of money or property so paid or distributed in respect of such Trust Interests shall be received by Seller, Seller shall, until such money or property is paid or delivered to the Buyer, hold such money or property in trust for the Buyer segregated from other funds of Seller as additional security for the Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35. <u>Further Assurances</u>

Each Seller Party shall, promptly upon Buyer's request, deliver documentation that Buyer deems reasonably necessary or desirable to evidence compliance with all applicable "know your customer" due diligence checks in form and substance satisfactory to Buyer. The parties shall execute, acknowledge, and deliver such instruments, and take such acts, as reasonably necessary to effectuate the transactions contemplated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36. <u>Reserved</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37. <u>Conflicts</u>

In the event of any conflict between the terms of this Agreement and any other Program Agreement, the documents shall control in the following order of priority: first, the terms of the Pricing Side Letter shall prevail, then the terms of this Agreement shall prevail, and then the terms of the other Program Agreements shall prevail. To the extent there is a conflict between the terms of the Guaranty and this Agreement, the terms of the Guaranty shall control the obligations of the Guarantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38. <u>Effect of Benchmark Transition Event</u>

Notwithstanding anything to the contrary herein or in any other Program Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Alternative Rate; Term SOFR Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) If Buyer determines in its sole discretion (which determination shall be conclusive and binding upon Seller absent manifest error) that, by reason of circumstances affecting the relevant market, adequate and reasonable means do not exist for ascertaining Term SOFR (other than as contemplated by a Benchmark Transition Event), Buyer shall give telecopy or telephonic notice thereof to Seller as soon as practicable thereafter. If such notice is given, the Benchmark with respect to all outstanding Transactions until such notice has been withdrawn by Buyer, shall be a per annum rate equal to the Alternative Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Notwithstanding any other provision herein, if, after the date of the Effective Date, the adoption of or any change in any Requirements of Law or in the interpretation or application thereof shall make it unlawful for Buyer to effect Term SOFR Transactions as contemplated by the Program Agreements (other than due to a Benchmark Transition Event), (x) the commitment of Buyer hereunder to enter into new Term SOFR Transactions and to continue Term SOFR Transactions as such shall forthwith be canceled, and (y) the Term SOFR Transactions then outstanding shall be converted automatically to Alternative Rate Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Benchmark Replacement</u>. Notwithstanding anything to the contrary herein or in any other Program Agreement, if (i) a Benchmark Transition Event and (ii) a Benchmark Replacement Date with respect thereto have occurred prior to the Reference Time in connection with any setting of the then-current Benchmark, then such Benchmark Replacement will replace the then-current Benchmark for all purposes under this Agreement and under any other Program Agreement in respect of such Benchmark setting and subsequent Benchmark settings without requiring any amendment to, or requiring any further action by or consent of any other party to, this Agreement or any other Program Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Benchmark Replacement Conforming Changes</u>. In connection with the implementation and administration of Term SOFR or a Benchmark Replacement, Buyer will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Program Agreement, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Program Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Notices; Standards for Decisions and Determinations</u>. Buyer will promptly notify Seller of (i) the implementation of any Benchmark Replacement and (ii) the effectiveness of any Benchmark Replacement Conforming Changes. Any determination, decision or election that may be made by Buyer pursuant to this <u>Section 38</u>, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action, will be conclusive and binding absent manifest error and may be made in its sole discretion and without consent from any other party hereto, except, in each case, as expressly required pursuant to this <u>Section 38</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39. <u>REO Conversion</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Seller shall notify Buyer no less than ten (10) Business Days prior to commencing any Enforcement Action with respect to a Permitted Delinquent Loan and, subject to satisfaction of each of the terms and conditions set forth below, Seller shall be permitted to complete such Enforcement Action with respect to such Permitted Delinquent Loan (a "<u>Realization Event</u>") and substitute the Permitted REO Asset in place of the Permitted Delinquent Loan as part of the collateral for the applicable Transaction and related Obligations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) No Default or Event of Default shall have occurred and be continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) (i) Any related mezzanine loan and/or any senior, *pari passu,* subordinate or other interest in the related Mortgage Loan shall have been extinguished, collapsed or otherwise terminated and the related REO Subsidiary shall have acquired undivided legal title to the related REO Property in fee simple, free and clear of any and all Liens, pledges, encumbrances, charges, security interests or any other ownership interests of any nature encumbering such REO Property; and (ii) one hundred percent (100%) of the REO Subsidiary Interests in such REO Subsidiary shall have been assigned to Buyer in blank by Seller pursuant to the applicable Assignment Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Buyer or its designee (including Custodian and/or a bailee approved by Buyer in its sole discretion) shall have received (i) to the extent the related REO Subsidiary is not already a party to this Agreement and the Pricing Side Letter, (x) an executed REO Joinder Agreement, and (y) the original REO Subsidiary Certificate, (iii) the original REO Deed conveying legal title to the related REO Property to the REO Subsidiary, (iv) the original Assignment Documents with respect to the Permitted REO Asset, and (v) the originals or copies of all other documentation reasonably requested by Buyer in connection with the Realization Event, the transfer of the related Permitted REO Asset and/or the related Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Buyer shall have received an incumbency certificate from an authorized representative of the REO Subsidiary, together with all applicable attachments, certifying that attached thereto are (i) a true, correct and complete certificate of formation, including all amendments thereto, of REO Subsidiary, certified as of a recent date by the secretary of state of the state of its formation; (ii) a true, correct and complete limited liability company agreement, including all amendments thereto, of REO Subsidiary, and (iii) a true, correct and complete copy of resolutions duly adopted by the board of directors (or equivalent governing body) of the REO Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Buyer shall have received opinions of outside counsel to Seller Parties acceptable to Buyer in its sole discretion (including, but not limited to, those relating to corporate matters with respect to the REO Subsidiary, grant and perfection of the security interest in the REO Subsidiary Interests and any necessary updates to the Bankruptcy Code safe harbor opinion).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) The REO Property shall be (i) insured by an ALTA owner's title insurance policy, or its equivalent as adopted in the applicable jurisdiction, insuring REO Subsidiary together with its successors and assigns, subject only to the title exceptions included in the lender's title insurance policy delivered in connection with the origination of the related Purchased Asset; and (ii) managed by a property manager approved by Buyer in its sole discretion pursuant to a property management agreement acceptable to Buyer in its sole discretion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Each of the representations and warranties in the applicable section of <u>Schedule 1-A</u> or <u>1-B</u> shall be true and correct with respect to the Permitted REO Asset (except as set forth in a list of requested exceptions approved by Buyer in its sole and absolute discretion for such Permitted REO Asset).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Buyer and Seller shall enter into a new or an amended and restated Transaction Request with respect to the related Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Seller shall promptly pay, or reimburse Buyer for, any reasonable out-of-pocket costs, including third-party due diligence costs and reasonable and documented fees and expenses of Buyer's outside counsel, incurred by Buyer in connection with the Realization Event, the transfer of the related Permitted REO Asset and/or the related Transaction.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

IN WITNESS WHEREOF, each party hereto have caused their names to be signed hereto by their respective signatories thereunto duly authorized as of the date first above written.

---

| | |
|:---|:---|
| **CHURCHILL MRA FUNDING I LLC**, as Buyer | **CHURCHILL MRA FUNDING I LLC**, as Buyer |
| By: | /s/ Michael Shaffer |
| Name: | Michael Shaffer |
| Title: | Authorized Signatory |
| **R-HOME PASS THROUGH PARENT RTL-C LLC**, as Seller | **R-HOME PASS THROUGH PARENT RTL-C LLC**, as Seller |
| By: | /s/ Nicola Santoro, Jr. |
| Name: | Nicola Santoro, Jr. |
| Title: | Chief Financial Officer and Treasurer |
| **R-HOME REO RTL-C LLC**, as an REO Subsidiary | **R-HOME REO RTL-C LLC**, as an REO Subsidiary |
| By: | /s/ Nicola Santoro, Jr. |
| Name: | Nicola Santoro, Jr. |
| Title: | Chief Financial Officer and Treasurer |
| **Rithm Perpetual Life Residential Trust**, as Guarantor | **Rithm Perpetual Life Residential Trust**, as Guarantor |
| By: | /s/ Nicola Santoro, Jr. |
| Name: | Nicola Santoro, Jr. |
| Title: | Chief Financial Officer and Chief Accounting Officer |

---

*[end of signatures]*

*[Genesis – Master Repurchase Agreement and Securities Contract]*

**SCHEDULE 1-A**

**REPRESENTATIONS AND WARRANTIES WITH RESPECT TO UNDERLYING MORTGAGE LOANS**

At all times an Underlying Mortgage Loan is subject to a Transaction, Seller hereby represents and warrants to Buyer that, with respect to such Underlying Mortgage Loan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Payments Current</u>. Except with respect to a Permitted Delinquent Asset, all payments required to be made up to the related Purchase Date for the Mortgage Loan under the terms of the Mortgage Note and each other related Loan Document have been made and credited. Except with respect to a Permitted Delinquent Asset, as of the Purchase Date, no payment required under the Mortgage Loan is delinquent and no payment under the Mortgage Loan been delinquent at any time since the Origination Date of the Mortgage Loan by more than forty-five (45) days. Except with respect to a Permitted Delinquent Asset, the first Monthly Payment shall be made, or shall have been made, with respect to the Mortgage Loan on its Due Date or within forty-five (45) days thereof, all in accordance with the terms of the related Mortgage Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>No Outstanding Charges</u>. Except for Permitted Encumbrances, all taxes, governmental assessments, insurance premiums, water, sewer and municipal charges, leasehold payments or ground rents, in each case, which may become a Lien on the related Mortgaged Property, which previously became due and owing have been paid, or an escrow of funds has been established in an amount sufficient to pay for every such item which remains unpaid and which has been assessed but is not yet delinquent; <u>provided</u>, <u>however</u>, property taxes which have not become more than 1 year delinquent shall be considered a Permitted Encumbrance. Seller has not advanced funds, or induced, solicited or knowingly received any advance of funds by a party other than the Mortgagor, directly or indirectly, for the payment of any principal or interest amount required under the Mortgage Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Original Terms Unmodified</u>. The terms of the Mortgage Note, Mortgage and each other related Loan Document have not been impaired, waived, altered or modified in any respect, from the Origination Date, except by a written instrument that has been recorded, if necessary to protect the interests of Buyer, and delivered to the Custodian and the terms of which are reflected in the Mortgage Loan Schedule. The substance of any such waiver, alteration or modification has been approved by the title insurer, to the extent required by the terms of the Mortgage Note, Mortgage or any other related Loan Document, and its terms are reflected on the Mortgage Loan Schedule. No Mortgagor in respect of the Mortgage Loan has been released, in whole or in part, except in connection with an assumption agreement approved by the title insurer, to the extent required by such policy, and which assumption agreement is part of the Mortgage File delivered to the Custodian and the terms of which are reflected in the Mortgage Loan Schedule. The related Mortgage, Mortgage Note and each other related Loan Document contain the entire agreement of the parties and all of the obligations of Seller under the related Underlying Mortgage Loan.

Sch. 1-1

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No Defenses</u>. The Mortgage Loan is not subject to any right of rescission, set-off, counterclaim or defense, including, without limitation, the defense of usury, and the operation of any of the terms of the Mortgage Note, the Mortgage or any other related Loan Document, or the exercise of any right thereunder, will not render either the Mortgage Note, the Mortgage or any other related Loan Document unenforceable, in whole or in part and no such right of rescission, set-off, counterclaim or defense has been asserted in writing with respect thereto, and no Mortgagor in respect of the Mortgage Loan was a debtor in any state or Federal bankruptcy or insolvency proceeding on the Origination Date of the Mortgage Loan. Seller has no knowledge and has not received any notice that any Mortgagor in respect of the Mortgage Loan is presently a debtor in any state or federal bankruptcy or insolvency proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Hazard Insurance</u>. The Mortgaged Property is insured by a fire and extended perils insurance policy, issued by a Qualified Insurer, and such other hazards as are customary in the area where the Mortgaged Property is located, and to the extent required by Seller as of the related Origination Date consistent with the Underwriting Guidelines, against other risks insured against by Persons operating like properties in the locality of the Mortgaged Property, in an amount not less than the lesser of (i) one hundred percent (100%) of the replacement cost of all improvements to the Mortgaged Property or (ii) the outstanding principal balance of the Underlying Mortgage Loan. If any portion of the Mortgaged Property (other than a Mortgaged Property located in the State of California) is in an area identified by any federal Governmental Authority as having special flood hazards, and flood insurance is available, a flood insurance policy meeting the current guidelines of the Federal Emergency Management Agency is in effect with a generally acceptable insurance carrier, in an amount representing coverage not less than the least of (1) the outstanding principal balance of the Mortgage Loan, (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount of insurance available under the National Flood Insurance Act of 1968, as amended by the Flood Disaster Protection Act of 1974. All such insurance policies (collectively, the "<u>hazard insurance policy</u>") contain a standard mortgagee clause naming Seller, its successors and assigns (including, without limitation, subsequent owners of the Mortgage Loan), as mortgagee, and, to the extent such agreement is commercially available from the related insurer, may not be reduced, terminated or canceled without 30 days' prior written notice to the mortgagee. No such notice has been received by Seller. All premiums on such insurance policy have been paid or the grace period for any payment default has not lapsed. The related Mortgage obligates the Mortgagor to maintain all such insurance and, at such Mortgagor's failure to do so, authorizes the mortgagee to maintain such insurance at the Mortgagor's cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or regulation, the Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, <u>provided</u> the policy is not a "master" or "blanket" hazard insurance policy covering a condominium, or any hazard insurance policy covering the common facilities of a planned unit development. To Seller's knowledge, the hazard insurance policy is the valid and binding obligation of the insurer and is in full force and effect. Seller has not engaged in, and has no knowledge of the Mortgagor having engaged in, any act or omission that would impair the coverage of any such policy, the benefits of the endorsement provided for herein, or the validity and binding effect of either including, without limitation, no unlawful fee, commission, kickback or other unlawful compensation or value of any kind has been or will be received, retained or realized by any attorney, firm or other Person, and no such unlawful items have been received, retained or realized by Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Compliance with Applicable Laws</u>. (i) Any and all requirements of any federal, state or local law and licensing agreements including, without limitation, usury or unfair and deceptive acts and practices laws applicable to the Mortgage Loan have been complied with in all material respects and (ii) the consummation of the transactions contemplated hereby will not involve the violation by Seller of any such laws or regulations.

Sch. 1-2

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>No Satisfaction of Mortgage</u>. The Mortgage has not been satisfied, canceled, subordinated or rescinded, in whole or in part, and the Mortgaged Property has not been released from the lien of the Mortgage except in accordance with the terms of the Mortgage and related agreements or Seller's underwriting policies, in whole or in part, nor has any instrument been executed that would effect any such release, cancellation, subordination or rescission. Seller has not waived the performance by the Mortgagor of any action, if the Mortgagor's failure to perform such action would cause the Mortgage Loan to be in default, nor has Seller waived any default resulting from any action or inaction by the Mortgagor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Location and Type of Mortgaged Property</u>. The Mortgaged Property consists of a single parcel (or adjacent parcels consisting of the entire applicable real property) of real property with an Eligible Mortgaged Property or Entitled Land. While the Mortgage Loan is subject to a Transaction, no portion of the related Mortgaged Property shall be used (i) as the Mortgagor's primary residence or in any other manner that would cause the Mortgaged Property to be considered an owner-occupied Mortgaged Property or (ii) for any other personal or household purposes by Mortgagor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Valid First Lien</u>. The Mortgage is a valid, subsisting, enforceable and perfected first priority lien and first priority security interest on the real property included in the Mortgaged Property, including all buildings on the Mortgaged Property and all installations and mechanical, electrical, plumbing, heating and air conditioning systems located in or annexed to such buildings, and all additions, alterations and replacements made at any time with respect to the foregoing, subject only to Permitted Encumbrances. Any security agreement, chattel mortgage or equivalent document related to and delivered in connection with the Mortgage Loan establishes and creates a valid, subsisting and enforceable first lien and first priority security interest on the property described therein (subject to Permitted Encumbrances) and Seller has full right to pledge and assign the same to Buyer. Except as otherwise disclosed to Buyer in writing, the Mortgaged Property was not, as of the Origination Date of the Mortgage Loan and to Seller's knowledge, subject to a mortgage, deed of trust, deed to secure debt or other security instrument creating a lien subordinate to the lien of the Mortgage, subject only to Permitted Encumbrances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Validity of Mortgage Documents</u>. The Mortgage Note and the Mortgage and any other agreement executed and delivered by a Mortgagor or guarantor, if applicable, in connection with a Mortgage Loan are genuine, and each is the legal, valid and binding obligation of the maker thereof enforceable in accordance with its terms. All parties to the Mortgage Note, the Mortgage and any other such related agreement had legal capacity to enter into the Mortgage Loan and to execute and deliver the Mortgage Note, the Mortgage and any such agreement, and the Mortgage Note, the Mortgage and any other such related agreement have been duly and properly executed by such related parties. No fraud, error, omission, misrepresentation, negligence or similar occurrence with respect to a Mortgage Loan has taken place on the part of Seller or, to the knowledge of Seller, any other Person, including, without limitation, the Mortgagor, any appraiser, any builder or developer, or any other party involved in the origination of the Mortgage Loan. To Seller's knowledge, except as disclosed to Buyer in writing, all tax identifications and property descriptions are legally sufficient; and tax segregation, where required, has been completed.

Sch. 1-3

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Full Disbursement of Proceeds</u>. Except with respect to any Mortgagor escrows, holdbacks or future funding obligations which are established pursuant to the terms of the related Mortgage Loan or with respect to any construction loan and that conform in all material respects to the applicable requirements of the Underwriting Guidelines, there is no further requirement for future advances under the Mortgage Loan and any and all requirements as to disbursements of any escrow or holdback funds therefor have been complied with. All costs, fees and expenses incurred in making or closing the Mortgage Loan and the recording of the Mortgage were paid. The Mortgagor is not entitled to any refund of any amounts paid or due under the Mortgage Note, Mortgage or any other related Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Ownership</u>. Seller has full right to sell the Purchased Assets and the related Underlying Mortgage Loans to Buyer free and clear of any encumbrance, equity, participation interest, lien, pledge, charge, claim or security interest, and has full right and authority subject to no interest or participation of, or agreement with, any other party, to sell each Mortgage Loan pursuant to this Agreement and following the sale of each Mortgage Loan, Buyer will own such Mortgage Loan free and clear of any encumbrance, equity, participation interest, lien, pledge, charge, claim or security interest, except (i) any such security interest created pursuant to the terms of this Agreement and (ii) any Permitted Encumbrances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Doing Business</u>. Seller is the originator of such Mortgage Loan. The Seller is (i) in compliance in all material respects with any and all applicable licensing requirements of the laws of the state wherein the Mortgaged Property is located, and (ii) to the extent required under the laws of such state, either (A) organized under the laws of such state, (B) qualified to do business in such state, (C) a federal savings and loan association, a savings bank or a national bank having a principal office in such state, (D) not doing business in such state or (E) the failure to qualify to do business in such state could not reasonably be expected to adversely affect any holder's interests in such Mortgage Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Title Insurance</u>. The Mortgage Loan is covered by either (i) an irrevocable title commitment, or an attorney's opinion of title and abstract of title, each of which must be in form and substance acceptable to prudent mortgage lending institutions making mortgage loans in the area wherein the Mortgaged Property is located or (ii) an ALTA lender's title insurance policy or other generally acceptable form of policy or insurance acceptable to Buyer and each such title insurance policy is issued by a title insurer acceptable to Buyer and qualified to do business in the jurisdiction where the Mortgaged Property is located, insuring Seller, its successors and assigns, as to the first priority lien of the Mortgage, as applicable, in the original principal amount of the Mortgage Loan, subject only to the Permitted Encumbrances. Where required by state law or regulation, the Mortgagor has been given the opportunity to choose the carrier of the required mortgage title insurance. Additionally, such lender's title insurance policy (or commitment pending receipt of final policy) affirmatively insures ingress and egress and against encroachments by or upon the Mortgaged Property or any interest therein. The title policy (or commitment pending receipt of final policy) does not contain any special exceptions (other than the standard exclusions) for zoning and uses and has been marked to delete the standard survey exception or to replace the standard survey exception with a specific survey reading. Seller, its successors and assigns, are the sole insureds of such lender's title insurance policy, and such lender's title insurance policy is valid and remains in full force and effect and will be in force and effect upon the consummation of the transactions contemplated by this Agreement. No claims have been made under such lender's title insurance policy, and no prior holder or servicer of the related Mortgage, including Seller, has done, by act or omission, anything that would impair the coverage of such lender's title insurance policy, including without limitation, no unlawful fee, commission, kickback or other unlawful compensation or value of any kind has been or will be received, retained or realized by any attorney, firm or other Person, and no such unlawful items have been received, retained or realized by Seller.

Sch. 1-4

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>No Defaults</u>. Except with respect to a Permitted Delinquent Asset, (i) there is no default, breach, violation or event of acceleration existing under the Mortgage, the Mortgage Note or any other related Loan Document (in each case, other than any default, breach, violation or event of acceleration arising because of (A) a payment default (other than a maturity default that has not been cured within thirty (30) days), or (B) a default, breach, violation or event of acceleration under the Mortgage, the Mortgage Note or any other related Loan Document with respect to a mortgage loan that is cross-defaulted with such Mortgage Loan (other than with respect to a default, breach, violation or event of acceleration that has resulted in the actual acceleration of the maturity of the Mortgage, the Mortgage Note or any other related Loan Document with respect to such cross-defaulted mortgage loan)), and (ii) no event has occurred that, with the passage of time or with notice and the expiration of any grace or cure period, would constitute a default, breach, violation or event of acceleration (in each case, other than any default, breach, violation or event of acceleration arising because of (A) a payment default (other than a maturity default that has not been cured within thirty (30) days), or (B) a default, breach, violation or event of acceleration under the Mortgage, the Mortgage Note or any other related Loan Document with respect to a mortgage loan that is cross-defaulted with such Mortgage Loan (other than with respect to a default, breach, violation or event of acceleration that has resulted in the actual acceleration of the maturity of the Mortgage, the Mortgage Note or any other related Loan Document with respect to such cross-defaulted mortgage loan)). Except as otherwise disclosed to Buyer in writing, Seller has not waived any default, breach, violation or event of acceleration under the Mortgage Note or any other related Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>No Mechanics' Liens</u>. Except for Permitted Encumbrances, there are no mechanics' or similar liens or claims that have been filed for work, labor or material affecting the Mortgaged Property that are or may be liens prior to, or equal or coordinate with, the lien of the Mortgage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Location of Improvements; No Encroachments</u>. All improvements considered in determining the Evaluation/Appraisal Value or Broker Price Opinion Value, as applicable, of the Mortgaged Property lie wholly within the boundaries and building restriction lines of the Mortgaged Property, and no improvements on adjoining properties encroach upon the Mortgaged Property. No improvement located on or being part of the Mortgaged Property is in violation of any applicable zoning and building law, ordinance or regulation.

Sch. 1-5

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Payment Terms</u>. Principal, to the extent applicable under the related Mortgage Loan, and interest payments on the Mortgage Loan commenced no more than sixty (60) days after funds were disbursed in connection with the Mortgage Loan. Interest on the Mortgage Note is payable on the first day of each month, with interest calculated and payable in advance or arrears, as applicable. Principal on the Mortgage Note is payable on the earlier of the maturity date of such Mortgage Note and the date on which the indebtedness thereunder becomes immediately due and payable thereunder. The Due Date of the first payment under the Mortgage Note is no more than sixty (60) days from the date of the Mortgage Note. The related Mortgagor may request advances up to the Loan Amount as set forth in the related Loan Documents. Each Underlying Mortgage Loan will mature within thirty-six (36) months from the related Origination Date (before giving effect to any Permitted Modifications). The Mortgage Note does not permit Negative Amortization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Customary Provisions</u>. The Mortgage Note and the related Loan Agreement each has a stated maturity. The Mortgage contains customary and enforceable provisions such as to render the rights and remedies of the holder thereof adequate for the realization against the Mortgaged Property of the benefits of the security provided thereby, including, (i) in the case of a Mortgage designated as a deed of trust, by trustee's sale, and (ii) otherwise by judicial foreclosure, in each case subject to applicable law. Upon default by a Mortgagor on a Mortgage Loan and foreclosure on, or trustee's sale of, the Mortgaged Property pursuant to the proper procedures and subject to applicable law, the holder of the Mortgage Loan will be able to deliver good and marketable title to the Mortgaged Property. There is no homestead or other exemption available to a Mortgagor that would interfere with the right to sell the Mortgaged Property at a trustee's sale or the right to foreclose the Mortgage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>Occupancy of the Mortgaged Property</u>. Seller has not received notice of any violation or failure to conform with any such law, ordinance, regulation, standard, license or certificate. The Mortgagor (as opposed to renters and/or lessees) does not intend to occupy the Mortgaged Property for more than fourteen (14) calendar days during any one (1) calendar year. In connection with the origination of the Mortgage Loan, the related Mortgagor represented to Seller that such Mortgaged Property is non-owner occupied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>No Additional Collateral</u>. The Mortgage Note is not and has not been secured by any collateral except the lien of the corresponding Mortgage and the security interest of any applicable security agreement and chattel mortgage referred to in clause (i) above or other collateral specified in the related Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Deeds of Trust</u>. In the event the Mortgage constitutes a deed of trust, a trustee, authorized and duly qualified under applicable law to serve as such, has been properly designated and currently so serves and is named in the Mortgage, and no fees or expenses are or will become payable by the Custodian or Buyer to the trustee under the deed of trust, except in connection with a trustee's sale after default by the Mortgagor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) <u>Transfer of Underlying Mortgage Loans</u>. The Assignment of Mortgage is in recordable form and is acceptable for recording under the laws of the jurisdiction in which the Mortgaged Property is located.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) <u>Due-On-Sale</u>. The Mortgage contains a provision for the acceleration of the payment of the unpaid principal balance of the Underlying Mortgage Loan in the event the Mortgaged Property is sold or transferred without the prior written consent of the mortgagee thereunder.

Sch. 1-6

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) [<u>Reserved</u>].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) <u>Consolidation of Future Advances</u>. Any future advances made to the Mortgagor prior to the Purchase Date have been consolidated with the outstanding principal amount secured by the Mortgage and the secured principal amount, as consolidated, bears a single interest rate and single repayment term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) <u>Mortgaged Property Undamaged</u>. To Seller's knowledge, other than structural damage being repaired in connection with the rehabilitation of the Mortgaged Property, the related Mortgaged Property is free from material structural damage. To Seller's knowledge, there is no proceeding pending for the total or partial condemnation of such Mortgaged Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) <u>Collection Practices; Escrow Deposits</u>. The origination and collection practices used by the related Approved Originator, each servicer of the Mortgage Loan and Seller with respect to the Mortgage Loan have been in all respects in compliance with Accepted Servicing Practices, applicable laws and regulations, and have been in all respects legal and proper. With respect to escrow deposits and Escrow Payments, if any, all such payments are in the possession of, or under the control of, Seller or Servicer on Seller's behalf. All Escrow Payments, if any, have been collected in full compliance with state and federal law. No escrow deposits or Escrow Payments or other charges or payments due Seller have been capitalized under the Mortgage, the Mortgage Note or any related Loan Document. Any interest required to be paid pursuant to state, federal and local law has been properly paid and credited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) <u>Servicemembers Civil Relief Act</u>. The Mortgagor has not notified Seller, and Seller does not have knowledge, of any relief requested or allowed to the Mortgagor under the Servicemembers Civil Relief Act of 2003.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) <u>Evaluation/Appraisal</u>. The Mortgage File with respect to such Underlying Mortgage Loan contains an Evaluation/Appraisal of the related Mortgaged Property made and signed by an Evaluation/Appraisal Vendor (a) who, at the time of such Evaluation/Appraisal, met the requirements of the Seller's Evaluation/Appraisal policy (unless manifestly inappropriate to the Underlying Mortgage Loan) and (b) who satisfied (and which Evaluation/Appraisal was conducted in accordance with) all applicable federal and state laws and regulations in effect at the time of such Evaluation/Appraisal and procedures. To Seller's knowledge, such Evaluation/Appraisal Vendor was licensed in the state where the Mortgaged Property is located, had no interest, direct or indirect, in such Mortgaged Property or in any loan made on the security thereof, and such Evaluation/Appraisal Vendor's compensation was not affected by the approval or disapproval of such Underlying Mortgage Loan. The Evaluation/Appraisal with respect to such Underlying Mortgage Loan was made within the three hundred sixty (360) day period prior to the Purchase Date of such Underlying Mortgage Loan. The Mortgage File with respect to such Underlying Mortgage Loan contains either an appraisal or an evaluation (if the original principal balance of the related Underlying Mortgage Loan is less than $250,000) of the related Mortgaged Property, in each case in form and substance satisfactory to Buyer and that satisfies the requirements of Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, as amended, and the regulations promulgated thereunder, all as in effect on the Origination Date of the Underlying Mortgage Loan.

Sch. 1-7

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) <u>Disclosure Materials</u>. The Mortgagor has received all disclosure materials required by applicable law in connection with the origination of such Mortgage Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) <u>No Equity Participation</u>. No document relating to the Mortgage Loan provides for any contingent or additional interest in the form of participation in the cash flow of the Mortgaged Property or a sharing in the appreciation of the value of the Mortgaged Property. The indebtedness evidenced by the Mortgage Note is not convertible to an ownership interest in the Mortgaged Property or the Mortgagor and Seller have not financed and do not own, directly or indirectly, any equity of any form in the Mortgaged Property or the Mortgagor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) <u>Proceeds of Mortgage Loan</u>. The proceeds of the Mortgage Loan have not been and shall not be used to satisfy, in whole or in part, any debt owed or owing by the Mortgagor to Seller or any Affiliate or correspondent of Seller, except in connection with a refinanced Mortgage Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) <u>No Exception</u>. The Custodian has not noted any material exceptions on a Mortgage Loan Schedule with respect to the Mortgage Loan that would materially adversely affect the Mortgage Loan or Buyer's interest in the Mortgage Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Mortgage Submitted for Recordation</u>. The Mortgage either has been or will promptly be submitted for recordation in the appropriate governmental recording office of the jurisdiction where the Mortgaged Property is located.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) <u>Documents Genuine</u>. Such Underlying Mortgage Loan and all accompanying Collateral Documents (including without limitation the related Loan Documents) are complete and authentic and all signatures thereon are genuine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) <u>Bona Fide Loan</u>. Such Underlying Mortgage Loan arose from a bona fide loan, complying with all applicable State and Federal laws and regulations, to persons having legal capacity to contract and is not subject to any defense, set-off or counterclaim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) <u>Description</u>. The documents relating to each Underlying Mortgage Loan conform in all material respects to the description thereof as set forth on the related Mortgage Loan Schedule delivered to the Custodian and Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) <u>Located in U.S.</u> No collateral (including, without limitation, the related Mortgaged Property and the dwellings thereon and otherwise) relating to an Underlying Mortgage Loan is located in any jurisdiction other than in one of the forty-eight (48) contiguous states of the United States of America or the District of Columbia.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) <u>Underwriting Guidelines</u>. Each Underlying Mortgage Loan was originated in accordance with the Underwriting Guidelines in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) <u>Predatory Lending Regulations; High Cost Loans</u>. None of the Mortgage Loans are classified as High Cost Mortgage Loans.

Sch. 1-8

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp) [<u>Reserved</u>].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qq) [<u>Reserved</u>].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(rr) <u>LTV; CLTV; LTC</u>. The LTV or CLTV, as applicable, of any Bridge Loan at origination was not more than 95%, except as otherwise approved by Buyer in writing. Solely with respect to any Underlying Mortgage Loan that is not a Bridge Loan, if the related Mortgaged Property was acquired within six (6) months prior to the related Origination Date, the LTC of such Underlying Mortgage Loan at origination was not more than 95%, except as otherwise approved by Buyer in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ss) <u>Single Original Mortgage Note</u>. There is only one originally executed Mortgage Note not stamped as a duplicate with respect to such Mortgage Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(tt) <u>Environmental Matters</u>. To Seller's knowledge, the Mortgaged Property is free from any and all toxic or hazardous substances in violation of any local, state or federal environmental law, and there exists no violation of any local, state or federal environmental law, rule or regulation. To Seller's knowledge, there is no pending action or proceeding directly involving any Mortgaged Property in which compliance with any environmental law, rule or regulation is alleged to have been violated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(uu) <u>Insurance</u>. Seller has caused or will cause to be performed any and all acts required to preserve the rights and remedies of Buyer in any insurance policies applicable to the Mortgage Loans including, without limitation, any necessary notifications of insurers, assignments of policies or interests therein, and establishments of coinsured, joint loss payee and mortgagee rights in favor of Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vv) [<u>Reserved</u>].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ww) <u>Endorsements</u>. Each Mortgage Note has been (or will be as of the related Purchase Date) endorsed by a duly authorized officer of Seller for its own account and not as a fiduciary, trustee, trustor or beneficiary under a trust agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) <u>Accuracy of Information</u>. All information in respect of such Mortgage Loan set forth on the Mortgage Loan Schedule is accurate in all material respects as of the related Purchase Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(yy) [<u>Reserved</u>].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(zz) <u>Patriot Act</u>. The applicable Approved Originator has complied with all applicable anti-money laundering laws and regulations, including, without limitation, the Patriot Act. No Mortgage Loan is subject to nullification pursuant to Executive Order 13224 (the "<u>Executive Order</u>") or the regulations promulgated by OFAC (the "<u>OFAC Regulations</u>") or in violation of the Executive Order or the OFAC Regulations, and no Mortgagor is subject to the provisions of such Executive Order or the OFAC Regulations or listed as a "blocked person" for purposes of the OFAC Regulations.

Sch. 1-9

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aaa) <u>Cross-Collateralization</u>. Either (a) such Mortgage Loan is not cross-collateralized with any other mortgage loan, other than a Mortgage Loan that is an Underlying Mortgage Loan, or (b) such Mortgage Loan is cross-collateralized with another mortgage loan that is not an Underlying Mortgage Loan and (1) the mortgage loan that is cross-collateralized with such Underlying Mortgage Loan is not in default, breach, violation or event of acceleration under the Mortgage, the Mortgage Note or any other related Loan Document which default, breach, violation or event of acceleration has resulted in the actual acceleration of the maturity of the Mortgage, the Mortgage Note or any other related Loan Document with respect to such cross-collateralized mortgage loan or (2) an intercreditor arrangement in respect of such Mortgage Loan acceptable to the Buyer has been entered into by each mortgagee or other beneficial owner of each mortgage loan that is cross-collateralized with such Underlying Mortgage Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bbb) <u>Advances of Refurbishment Loan Amounts</u>. Seller has made all required advances of Refurbishment Loan Amounts with respect to an Underlying Mortgage Loan in accordance with any applicable timeframes required by the Loan Documents for making such advance of Refurbishment Loan Amounts to the related Mortgagor in the applicable Loan Documents.

Sch. 1-10

**SCHEDULE 1-B**

**REPRESENTATIONS AND WARRANTIES WITH RESPECT TO UNDERLYING ASSETS THAT ARE PERMITTED REO ASSETS**

At all times a Permitted REO Asset is subject to a Transaction involving Seller, Seller and the related REO Subsidiary hereby represents and warrants to Buyer that, with respect to such Permitted REO Asset:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Ownership</u>. The REO Subsidiary Interests constitute all the issued and outstanding beneficial interests of all classes of the related REO Subsidiary and such REO Subsidiary Interests are certificated in the form of the REO Subsidiary Certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Compliance with Law</u>. The REO Subsidiary Interests comply in all respects with, or are exempt from, all applicable Requirements of Law relating to the REO Subsidiary Interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Good Title</u>. Immediately prior to the sale, transfer and assignment to Buyer thereof, Seller had good title to, and was the sole owner and holder of, the REO Subsidiary Interests, and Seller is transferring the REO Subsidiary Interests free and clear of any and all Liens, pledges, encumbrances, charges, security interests or any other ownership interests of any nature encumbering the REO Subsidiary Interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No Fraud</u>. No fraudulent acts were committed by Seller or any of their respective Affiliates in connection with the issuance of the REO Subsidiary Interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>No Defaults</u>. No (i) monetary default, breach or violation exists with respect to any agreement or other document governing or pertaining to the REO Subsidiary Interests, or (ii) event which, with the passage of time or with notice and the expiration of any grace or cure period, would constitute a default, breach or violation of the REO Subsidiary Interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>No Modifications</u>. Except for any Program Agreement, Seller is not a party to any document, instrument or agreement, and there is no document, that by its terms modifies or affects the rights and obligations of any holder of the REO Subsidiary Interests, and Seller has not consented to any material change or waiver to any term or provision of any such document, instrument or agreement and no such change or waiver exists.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Power and Authority</u>. Seller has full right, power and authority to sell and assign the REO Subsidiary Interests, and the REO Subsidiary Interests have not been cancelled, satisfied or rescinded in whole or part nor has any instrument been executed that would effect a cancellation, satisfaction or rescission thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Consents and Approvals</u>. Other than consents and approvals obtained as of the related Purchase Date or those already granted in the documents governing the REO Subsidiary Interests, no consent or approval by any Person is required in connection with Seller's sale and/or Buyer's acquisition of the REO Subsidiary Interests, for Buyer's exercise of any rights or remedies in respect of the REO Subsidiary Interests or for Buyer's sale, pledge or other disposition of the REO Subsidiary Interests. No third party holds any "right of first refusal", "right of first negotiation", "right of first offer", purchase option, or other similar rights of any kind, and no other impediment exists to any such transfer or exercise of rights or remedies with respect to the REO Subsidiary Interests.

Sch. 1-1

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>No Governmental Approvals</u>. No consent, approval, authorization or order of, or registration or filing with, or notice to, any Governmental Authority having jurisdiction over Seller is required for any transfer or assignment by the holder of the REO Subsidiary Interests to Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Original Certificates</u>. Seller has delivered to Buyer the original REO Subsidiary Certificate, or other similar indicia of ownership of the REO Subsidiary Interests, however denominated, re-registered in Buyer's name or in blank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Duly and Validly Issued</u>. The REO Subsidiary Certificate has been duly and validly issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>No Notices</u>. Seller has not received written notice of any outstanding liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind for which the holder of the REO Subsidiary Interests is or may become obligated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>REO Subsidiary Interests as Securities</u>. The REO Subsidiary Interests (a) constitute "securities" (within the meaning of Section 8-103(c) of the UCC), (b) are not dealt in or traded on securities exchanges or in securities markets, (c) do not constitute investment company securities (within the meaning of Section 8-103(b) of the UCC) and (d) are not credited to a "securities account" (within the meaning of Section 8-501(a) of the UCC).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>No Distributions</u>. Except as contemplated or permitted by the Program Agreements, there are (x) no outstanding rights, options, warrants or agreements for a purchase, sale or issuance, in connection with the REO Subsidiary Interests, (y) no agreements on the part of Seller to issue, sell or distribute the REO Subsidiary Interests, and (z) no obligations on the part of Seller (contingent or otherwise) to purchase, repurchase, redeem or otherwise acquire any securities or any interest therein or to pay any dividend or make any distribution in respect of the REO Subsidiary Interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Conveyance; First Priority Lien</u>. Upon delivery to Buyer of the REO Subsidiary Certificate (and assuming the continuing possession by Buyer of such REO Subsidiary Certificate in accordance with the applicable Requirements of Law), duly indorsed to Buyer or in blank, and the filing of a financing statement covering the REO Subsidiary Interests in the State of Delaware and naming the Seller as debtor and Buyer as secured party, the Lien granted by Seller to Buyer hereunder in its right, title and interest to the REO Subsidiary Interests, will constitute a valid, perfected, first priority Lien on the REO Subsidiary Interests in favor of Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>No Waiver</u>. Seller has not waived or agreed to any waiver under, or agreed to any amendment or other modification of the operating agreement of any REO Subsidiary, except as agreed to by Buyer in writing.

Sch. 1-2

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Status of REO Subsidiary</u>. Since the date of its organization, other than as permitted pursuant to the Program Agreements, no REO Subsidiary has been engaged in any business or activity or owned any assets other than the assets made subject to Transactions hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>No Outstanding Charges</u>. Except for Permitted Encumbrances, all taxes, governmental assessments, insurance premiums, water, sewer and municipal charges, leasehold payments or ground rents, in each case, that may become a Lien on the related REO Property, or previously became due and owing, have been paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Hazard Insurance</u>. The REO Property is insured by a fire and extended perils insurance policy, issued by a Qualified Insurer, and such other hazards as are customary in the area where the REO Property is located in an amount not less than one hundred percent (100%) of the replacement cost of all improvements to the REO Property. If any portion of the REO Property is in an area identified by any federal Governmental Authority as having special flood hazards, and flood insurance is available, a flood insurance policy meeting the current guidelines of the Federal Emergency Management Agency is in effect with a generally acceptable insurance carrier, in an amount representing coverage not less than the lesser of (1) the full insurable value of the REO Property and (2) the maximum amount of insurance available under the National Flood Insurance Act of 1968, as amended by the Flood Disaster Protection Act of 1974. All premiums on such insurance policy have been paid. The hazard insurance policy is the valid and binding obligation of the insurer and is in full force and effect. No REO Subsidiary has engaged in any act or omission that would impair the coverage of any such policy, the benefits of the endorsement provided for herein, or the validity and binding effect of either including, without limitation, no unlawful fee, commission, kickback or other unlawful compensation or value of any kind has been or will be received, retained or realized by any attorney, firm or other Person, and no such unlawful items have been received, retained or realized by Sellers or any REO Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>Compliance with Applicable Laws</u>. (i) Any and all requirements of any federal, state or local law applicable to the REO Property have been complied with and (ii) the consummation of the transactions contemplated hereby will not involve the violation by Sellers or any REO Subsidiary of any such laws or regulations, and Sellers and REO Subsidiary shall maintain or shall cause its agent to maintain in its possession, available for the inspection of Buyer, and shall deliver to Buyer, upon demand, evidence of compliance with all such requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>Location and Type of Mortgaged Property</u>. The REO Property consists of a single parcel (or adjacent parcels consisting of the entire applicable real property) of real property with an Eligible Mortgaged Property or Entitled Land. While the Permitted REO Asset is subject to a Transaction, no portion of the related REO Property shall be used (i) in any manner that would cause the REO Property to be considered an owner-occupied REO Property or (ii) for any other personal or household purposes by REO Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Ownership</u>. Each REO Subsidiary has full right to sell the REO Property to Buyer free and clear of any Lien, and has full right and authority subject to no interest or participation of, or agreement with, any other party, to sell the REO Property.

Sch. 1-3

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) <u>Title Insurance</u>. The REO Property is covered by either (i) an irrevocable title commitment, or an attorney's opinion of title and abstract of title, each of which must be in form and substance acceptable to prudent institutions operating properties in the area wherein the REO Property is located or (ii) an ALTA owner's title insurance policy or other generally acceptable form of policy or insurance acceptable to Buyer and each such title insurance policy is issued by a title insurer acceptable to Buyer and qualified to do business in the jurisdiction where the REO Property is located, insuring the related REO Subsidiary, its successors and assigns, as to the title to such REO Property, subject only to the Permitted Encumbrances. Additionally, such owner's title insurance policy (or commitment pending receipt of final policy) affirmatively insures ingress and egress and against encroachments by or upon the REO Property or any interest therein. The title policy (or commitment pending receipt of final policy) does not contain any special exceptions (other than the standard exclusions) for zoning and uses and has been marked to delete the standard survey exception or to replace the standard survey exception with a specific survey reading. The related REO Subsidiary, its successors and assigns, is the sole insureds of such owner's title insurance policy, and such owner's title insurance policy is valid and remains in full force and effect and will be in force and effect upon the consummation of the transactions contemplated by this Agreement. No claims have been made under such owner's title insurance policy, and no prior holder of the related REO Property, including the related REO Subsidiary, has done, by act or omission, anything that would impair the coverage of such owner's title insurance policy, including without limitation, no unlawful fee, commission, kickback or other unlawful compensation or value of any kind has been or will be received, retained or realized by any attorney, firm or other Person, and no such unlawful items have been received, retained or realized by Sellers or such REO Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) <u>No Mechanics' Liens</u>. Except for Permitted Encumbrances, there are no mechanics' or similar liens or claims that have been filed for work, labor or material affecting the REO Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) <u>Location of Improvements; No Encroachments</u>. All improvements considered in determining the Evaluation/Appraisal Value or Broker Price Opinion Value, as applicable, of the REO Property lie wholly within the boundaries and building restriction lines of the REO Property, and no improvements on adjoining properties encroach upon the REO Property. No improvement located on or being part of the REO Property is in violation of any applicable zoning and building law, ordinance or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) <u>Occupancy of the REO Property</u>. All inspections, licenses, and certificates required to be made or issued with respect to all occupied portions of the REO Property and, with respect to the use and occupancy of the same, including but not limited to certificates of occupancy and fire underwriting certificates, are, or will be, obtained from the appropriate authorities at the time required in the jurisdiction in which such REO Property is located. No Seller or REO Subsidiary has received notification from any Governmental Authority that the REO Property is in material non-compliance with such laws or regulations, is being used, operated or occupied unlawfully or has failed to have or obtain such inspection, licenses or certificates, as the case may be. No Seller or REO Subsidiary has received notice of any violation or failure to conform with any such law, ordinance, regulation, standard, license or certificate, in each case other than such violations or failures to conform that are intended to be remedied as part of the renovation/rehabilitation/construction of the REO Property.

Sch. 1-4

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) <u>Transfer of REO Property</u>. The REO Deed in blank is in recordable form and is acceptable for recording under the laws of the jurisdiction in which the REO Property is located.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) <u>REO Property Undamaged</u>. Other than structural damage being repaired in connection with the rehabilitation of the REO Property, the related REO Property is free from material structural damage. There is no proceeding pending for the total or partial condemnation of such REO Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) <u>Evaluation/Appraisal</u>. The Purchased Asset File with respect to such Purchased Asset contains an Evaluation/Appraisal of the related REO Property made and signed by an Evaluation/Appraisal Vendor (a) who, at the time of such Evaluation/Appraisal, met the requirements of Sellers' or the related REO Subsidiary's Evaluation/Appraisal policy (unless manifestly inappropriate to the Purchased Asset) and (b) who satisfied (and which Evaluation/Appraisal was conducted in accordance with) all applicable federal and state laws and regulations in effect at the time of such Evaluation/Appraisal and procedures. To Sellers' and the related REO Subsidiary's knowledge, such Evaluation/Appraisal Vendor was licensed in the state where the REO Property is located, had no interest, direct or indirect, in such REO Property or in any loan made on the security thereof, and such Evaluation/Appraisal Vendor's compensation was not affected by the approval or disapproval of such Purchased Asset. The Evaluation/Appraisal with respect to such Purchased Asset was made within the six (6) month period prior to the Realization Event with respect to such Purchased Asset. The Purchased Asset File with respect to such Purchased Asset contains either an appraisal of the related REO Property, in each case in form and substance satisfactory to Buyer and that satisfies the requirements of Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, as amended, and the regulations promulgated thereunder, all as in effect on the Origination Date of the related Mortgage Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) <u>No Equity Participation</u>. No document relating to the REO Property or REO Subsidiary Interest provides for any contingent or additional interest in the form of participation in the cash flow of the REO Property or a sharing in the appreciation of the value of the REO Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) <u>REO Deed Submitted for Recordation</u>. The REO Deed in favor of the REO Subsidiary either has been or will promptly be submitted for recordation in the appropriate governmental recording office of the jurisdiction where the REO Property is located.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) <u>Documents Genuine</u>. The REO Deed in favor of the REO Subsidiary and all accompanying documents are complete and authentic and all signatures thereon are genuine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) <u>Located in U.S.</u> No collateral (including, without limitation, the related REO Property and the dwellings thereon and otherwise) relating to the Purchased Asset is located in any jurisdiction other than in one of the forty-eight (48) contiguous states of the United States of America or the District of Columbia.

Sch. 1-5

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) <u>No Adverse Selection</u>. The related REO Property was not intentionally selected by Sellers or the related REO Subsidiary in a manner intended to adversely affect the interest of Buyer. No Seller or REO Subsidiary used selection procedures that identified such REO Property as being less desirable or valuable than other comparable REO Property owned or operated by any Seller, any REO Subsidiary or their respective Affiliates and is representative of the portfolio of REO Properties owned by such Seller, REO Subsidiary or their respective Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Environmental Matters</u>. To Sellers' and the related REO Subsidiary's knowledge, the REO Property is free from any and all toxic or hazardous substances in violation of any local, state or federal environmental law, and there exists no violation of any local, state or federal environmental law, rule or regulation. To Sellers' and the related REO Subsidiary's knowledge, there is no pending action or proceeding directly involving any REO Property in which compliance with any environmental law, rule or regulation is alleged to have been violated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) <u>Insurance</u>. Each Seller and REO Subsidiary has caused or will cause to be performed any and all acts required to preserve the rights and remedies of Buyer in any insurance policies applicable to the Purchased Asset including, without limitation, any necessary notifications of insurers, assignments of policies or interests therein, and establishments of coinsured, joint loss payee and mortgagee rights in favor of Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) <u>Flood Certification</u>. Sellers or the related REO Subsidiary shall have obtained a life of loan, transferable flood certification contract for each REO Property and has assigned all such contracts to Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) <u>Accuracy of Information</u>. All information provided to Buyer by Sellers or the related REO Subsidiary and prepared by Sellers or the related REO Subsidiary with respect to the Purchased Asset is accurate in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) <u>Patriot Act</u>. Sellers and the applicable REO Subsidiary has complied with all applicable anti-money laundering laws and regulations, including, without limitation, the Patriot Act. No REO Property or REO Subsidiary Interest is subject to nullification pursuant to Executive Order 13224 (the "<u>Executive Order</u>") or the regulations promulgated by OFAC (the "<u>OFAC Regulations</u>") or in violation of the Executive Order or the OFAC Regulations, and no REO Subsidiary is subject to the provisions of such Executive Order or the OFAC Regulations or listed as a "blocked person" for purposes of the OFAC Regulations.

Sch. 1-6

**SCHEDULE 2**

**AUTHORIZED REPRESENTATIVES**

Sch. 2-1

**EXHIBIT A**

FORM OF OFFICER'S COMPLIANCE CERTIFICATE

[______] [_____], 20[__]

Churchill MRA Funding I LLC<br> 1415 Vantage Park Drive, Suite 240<br> Charlotte, NC 28203<br> Attention: Derrick Land<br> Email: dl@churchillre.com

---

| | |
|:---|:---|
| Re: | Master Repurchase Agreement and Securities Contract, dated as of November 24, 2025 (as amended, restated, supplemented or otherwise modified from time to time, the "<u>Agreement</u>"), by and among Churchill MRA Funding I LLC, as buyer ("<u>Buyer</u>"), R-Home Pass Through Parent RTL-C LLC, as seller ("<u>Seller</u>"), R-Home REO RTL-C LLC ("<u>Initial REO Subsidiary</u>"), each other Person that may be subsequently added as a party to the Agreement under an REO Joinder Agreement (each, an "<u>Additional REO Subsidiary</u>" and together with Initial REO Subsidiary, each, "<u>REO Subsidiary</u>," and collectively, "<u>REO Subsidiaries</u>") and RITHM PERPETUAL LIFE RESIDENTIAL TRUST, as guarantor ("<u>Guarantor</u>") |

---

This Officer's Compliance Certificate is furnished pursuant to the above Agreement. Unless otherwise defined herein, capitalized terms used in this Officer's Compliance Certificate have the respective meanings ascribed thereto in the Agreement.

THE UNDERSIGNED HEREBY CERTIFIES THAT:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I am a duly elected Responsible Officer of Guarantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. All of the financial statements, calculations and other information set forth in this Officer's Compliance Certificate, including in any exhibit or other attachment hereto, are true, complete and correct as of the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. I have reviewed the terms of the Agreement and I have made, or have caused to be made under my supervision, a detailed review of the transactions and financial condition of the Guarantor during the accounting period covered by the financial statements attached hereto (or most recently delivered to Buyer if none are attached).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The examinations described in <u>Paragraph 3</u> above did not disclose, and I have no knowledge of, the existence of any condition or event that constitutes a Default or an Event of Default during or at the end of the accounting period covered by the attached financial statements or as of the date of this Officer's Compliance Certificate (including after giving effect to any pending Transactions requested to be entered into), except as set forth below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Attached as <u>Exhibit 1</u> hereto are the financial statements referred to in <u>Section 13(x)</u> of the Agreement, which financial statements, to the best of my knowledge after due inquiry, fairly and accurately present in all material respects, the consolidated financial condition and operations of the Guarantor and the consolidated results of its operations as of the date or with respect to the period therein specified, determined in accordance with GAAP.

Exh. A-2

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Attached as <u>Exhibit 2</u> hereto are the calculations demonstrating compliance with the financial covenants set forth in the Additional Covenants and Conditions, each for the immediately preceding fiscal quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. To my knowledge, each of Seller, REO Subsidiary and Guarantor has, during the period since the delivery of the immediately preceding Officer's Compliance Certificate, observed or performed all of its covenants and other agreements in all material respects, and satisfied in all material respects every condition, contained in the Agreement and the other Program Agreements to be observed, performed or satisfied by it, and I have no knowledge of the occurrence during such period, or present existence, of any condition or event that constitutes a Default or an Event of Default (including after giving effect to any pending Transactions requested to be entered into), except as set forth below

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Described below are the exceptions, if any, to the above paragraph, setting forth in detail the nature of the condition or event, the period during which it has existed and the action that Seller, REO Subsidiary, Guarantor or any Affiliate has taken, is taking, or proposes to take with respect to such condition or event:

The foregoing certifications, together with the financial statements, updates, reports, materials, calculations and other information set forth in any exhibit or other attachment hereto, or otherwise covered by this Officer's Compliance Certificate, are made and delivered as of [____], 20[__].

  <br> Name: <br> Title:

<u>Exhibit 1</u>: Financial Statements

<u>Exhibit 2</u>: Financial Covenant Compliance Calculations

Exh. A-3

**EXHIBIT B-1**

**[*Form of Power of Attorney for Seller*]**

Exh. B-1

**EXHIBIT B-2**

**[*Form of Power of Attorney for Trustee*]**

Exh. B-1

**EXHIBIT B-3**

**[*Form of Power of Attorney for REO Subsidiary*]**

Exh. B-1

**EXHIBIT C**

**APPROVED ORIGINATORS**

Genesis Capital, LLC

Exh. C-1

**Exhibit D**

**APPROVED BPO PROVIDERS**

1. ClearCapital.com, Inc.

2. Pro Teck Services Ltd.

3. Radian Real Estate Management LLC f/k/a Green River Capital, LLC

4. Cushman & Wakefield Debenham Tie Leung Limited

5. Marcus & Millichap Real Estate Investment Services, Inc. (L.A. Apartment Advisors)

Exh. D-1

## Exhibit 10.8

**Exhibit 10.8**

**EXECUTION VERSION**

**MASTER REPURCHASE AGREEMENT AND SECURITIES CONTRACT**

**Dated as of November 24, 2025**

**among**

**R-HOME PASS THROUGH PARENT W LLC, as a Seller, R-HOME PASS-THROUGH PARENT TRS-W LLC, as a Seller, R-Home REO TRS-W LLC, as an REO Subsidiary, Rithm PERPETUAL LIFE RESIDENTIAL TRUST, as Guarantor, and**

**WELLS FARGO BANK, NATIONAL ASSOCIATION, as Buyer**

**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
| Article 1 APPLICABILITY | Article 1 APPLICABILITY | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 1.01 | Applicability | 1 |
| Article 2 DEFINITIONS AND INTERPRETATION | Article 2 DEFINITIONS AND INTERPRETATION | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 2.01 | Definitions | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 2.02 | Rules of Interpretation | 38 |
| Article 3 THE TRANSACTIONS | Article 3 THE TRANSACTIONS | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.01 | Procedures | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.02 | Transfer of Purchased Assets; Servicing Rights | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.03 | Transfers of Underlying Assets to the REO Subsidiary | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.04 | Maximum Aggregate Purchase Price | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.05 | Early Repurchase Date; Mandatory Repurchases | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.06 | Repurchase | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.07 | Payment of Price Differential and Fees | 46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.08 | Payment, Transfer and Custody | 46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.09 | Repurchase Obligations Absolute | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.10 | Term SOFR Conforming Changes | 47 |
| Article 4 RESERVED | Article 4 RESERVED | 48 |
| Article 5 APPLICATION OF INCOME | Article 5 APPLICATION OF INCOME | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 5.01 | Accounts | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 5.02 | Reserved | 49 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 5.03 | Before an Event of Default | 49 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 5.04 | After Event of Default | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 5.05 | Sellers to Remain Liable | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 5.06 | Update of the Purchase Price | 50 |
| Article 6 CONDITIONS PRECEDENT | Article 6 CONDITIONS PRECEDENT | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 6.01 | Conditions Precedent to Effective Date | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 6.02 | Conditions Precedent to All Transactions | 52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 6.03 | Servicing Agreement | 53 |
| Article 7 REPRESENTATIONS AND WARRANTIES OF EACH SELLER | Article 7 REPRESENTATIONS AND WARRANTIES OF EACH SELLER | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 7.01 | Sellers and Guarantor | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 7.02 | Repurchase Documents | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 7.03 | Solvency | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 7.04 | Taxes | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 7.05 | Financial Condition | 55 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 7.06 | True and Complete Disclosure | 55 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 7.07 | Compliance with Laws | 55 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 7.08 | Compliance with ERISA | 56 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 7.09 | No Event of Default | 56 |

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i

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 7.10 | Transfer and Security Interest | 56.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 7.11 | Trust Certificates; Capital Stock | 57.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 7.12 | Separateness | 58.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 7.13 | Jurisdiction of Organization | 58.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 7.14 | Structural Agreements | 58.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 7.15 | Underlying Trusts; REO Subsidiaries | 58.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 7.16 | No Adverse Selection | 58.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 7.17 | Servicing Rights | 58.0 |
| Article 8 COVENANTS OF SELLERS AND GUARANTOR | Article 8 COVENANTS OF SELLERS AND GUARANTOR | 59.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 8.01 | Existence; Governing Documents; Conduct of Business | 59.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 8.02 | Compliance with Laws, Contractual Obligations and Repurchase Documents | 59.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 8.03 | Structural Changes | 60.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 8.04 | Protection of Buyer's Interest in Purchased Assets | 60.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 8.05 | Actions of Seller Relating to Distributions, Indebtedness, Guarantee Obligations, Contractual Obligations, Investments and Liens | 61.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 8.06 | Maintenance of Property and Insurance | 61.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 8.07 | Financial Covenants | 61.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 8.08 | Delivery of Income | 61.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 8.09 | Delivery of Information | 62.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 8.10 | Delivery of Notices | 63.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 8.11 | Records | 64.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 8.12 | No Pledge | 64.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 8.13 | Maximum Aggregate Purchase Price | 65.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 8.14 | Reserved | 65.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 8.15 | Trust Interests; Capital Stock | 65.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 8.16 | Structural Agreements | 65.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 8.17 | No Division | 65.0 |
| Article 9 SINGLE-PURPOSE ENTITY | Article 9 SINGLE-PURPOSE ENTITY | 66.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 9.01 | Covenants Applicable to Seller and REO Subsidiary | 66.0 |
| Article 10 EVENTS OF DEFAULT AND REMEDIES | Article 10 EVENTS OF DEFAULT AND REMEDIES | 66.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 10.01 | Events of Default | 66.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 10.02 | Remedies of Buyer as Owner of the Purchased Assets | 69.0 |
| Article 11 SECURITY INTEREST | Article 11 SECURITY INTEREST | 72.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 11.01 | Grant | 72.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 11.02 | Effect of Grant | 73.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 11.03 | Sellers to Remain Liable | 73.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 11.04 | Rights with Respect to Trust Certificates and Capital Stock | 73.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 11.05 | Waiver of Certain Laws | 73.0 |
| Article 12 INCREASED COSTS; CAPITAL ADEQUACY | Article 12 INCREASED COSTS; CAPITAL ADEQUACY | 74.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 12.01 | Benchmark Replacement Setting | 74.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 12.02 | Illegality; Inability to Determine Rates | 74.0 |

---

ii

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 12.03 | Breakfunding | 75.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 12.04 | Increased Costs | 75.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 12.05 | Capital Adequacy | 76.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 12.06 | Withholding Taxes | 76.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 12.07 | Payment and Survival of Obligations | 79.0 |
| Article 13 INDEMNITY AND EXPENSES | Article 13 INDEMNITY AND EXPENSES | 79.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 13.01 | Indemnity | 79.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 13.02 | Expenses | 80.0 |
| Article 14 INTENT | Article 14 INTENT | 81.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 14.01 | Intent | 81.0 |
| Article 15 DISCLOSURE RELATING TO CERTAIN FEDERAL PROTECTIONS | Article 15 DISCLOSURE RELATING TO CERTAIN FEDERAL PROTECTIONS | 82.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 15.01 | Disclosure | 82.0 |
| Article 16 NO RELIANCE | Article 16 NO RELIANCE | 82.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 16.01 | No Reliance | 82.0 |
| Article 17 SERVICING | Article 17 SERVICING | 83.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 17.01 | Servicing | 83.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 17.02 | Fees and Expenses of Servicer | 85.0 |
| Article 18 MISCELLANEOUS | Article 18 MISCELLANEOUS | 85.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 18.01 | GOVERNING LAW | 85.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 18.02 | SUBMISSION TO JURISDICTION; SERVICE OF PROCESS | 85.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 18.03 | IMPORTANT WAIVERS | 86.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 18.04 | Integration | 87.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 18.05 | Single Agreement | 87.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 18.06 | Use of Employee Plan Assets | 87.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 18.07 | Survival and Benefit of Sellers' Agreements | 88.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 18.08 | Assignments and Participations | 88.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 18.09 | Ownership and Hypothecation of Purchased Assets | 89.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 18.10 | Confidentiality | 90.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 18.11 | No Implied Waivers | 90.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 18.12 | Notices and Other Communications | 90.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 18.13 | Counterparts; Electronic Transmission | 91.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 18.14 | No Personal Liability | 91.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 18.15 | Protection of Buyer's Interests in the Purchased Assets; Further Assurances | 91.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 18.16 | Default Rate | 93.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 18.17 | Termination | 93.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 18.18 | Set-off | 93.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 18.19 | Power of Attorney | 94.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 18.20 | Sellers' Waiver of Setoff | 94.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 18.21 | Periodic Due Diligence Review | 95.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 18.22 | Time of the Essence | 95.0 |

---

iii

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 18.23 | Joint and Several Repurchase Obligations | 95 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 18.24 | Patriot Act Notice | 96 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 18.25 | Successors and Assigns | 96 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 18.26 | Recognition of U.S. Special Resolution Regimes | 97 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 18.27 | Limitation of Trustee Liability | 97 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 18.28 | Rates | 98 |

---

---

| | |
|:---|:---|
| **<u>SCHEDULES</u>** |  |
| Schedule 1-A | Representations and Warranties with Respect to Underlying Mortgage Loans |
| Schedule 1-B | Representations and Warranties with Respect to REO Property |
| Schedule 1-C | Representations and Warranties with Respect to Trust Certificates |
| Schedule 1-D | Representations and Warranties with Respect to Capital Stock |
| Schedule 2 | Notice Addresses and Wire Instructions |
| Schedule 3 | Schedule of Exceptions to any Representations and Warranties |
| **<u>EXHIBITS</u>** |  |
| EXHIBIT A | [Reserved] |
| EXHIBIT B | Form of Servicer Letter Agreement |
| EXHIBIT C | Form of Closing Certificate |
| EXHIBIT D | Form of Compliance Certificate |
| EXHIBIT E | Form of Confirmation |
| EXHIBIT F | Form of Mortgage Loan Schedule |
| EXHIBIT G | Form of REO Property Schedule |
| EXHIBIT H | Form of Transaction Request |
| EXHIBIT I | Form of Sellers' Power of Attorney |
| EXHIBIT J | Form of Assignment and Acceptance |

---

iv

THIS MASTER REPURCHASE AGREEMENT AND SECURITIES CONTRACT, dated as of November 24, 2025 (this "<u>Agreement</u>"), is made by and among R-HOME PASS THROUGH PARENT W LLC, a Delaware limited liability company (the "<u>W Seller</u>"), as a seller, R-HOME PASS-THROUGH PARENT TRS-W LLC, a Delaware limited liability company (the "<u>TRS-W Seller</u>"), as a seller, and each other entity that may be subsequently added as a party to this Agreement in the capacity of Seller (together with W Seller and TRS-W Seller, individually, each a "<u>Seller</u>" and collectively the "<u>Sellers</u>"), R-HOME REO TRS-W LLC, a Delaware limited liability company (the "<u>Initial REO Subsidiary</u>"), as an REO subsidiary, and each other entity that may be subsequently added as a party to this Agreement in the capacity of REO Subsidiary (together with Initial REO Subsidiary, individually, each an "<u>REO Subsidiary</u>" and collectively the "<u>REO Subsidiaries</u>"), RITHM PERPETUAL LIFE RESIDENTIAL TRUST, a Maryland statutory trust (the "<u>Guarantor</u>"), as guarantor and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association (as more specifically defined below, "<u>Buyer</u>"). Sellers, REO Subsidiaries, Guarantor and Buyer (each a "<u>Party</u>" and collectively, the "<u>Parties</u>") hereby agree as follows:

**Article 1<br> APPLICABILITY**

Section 1.01 <u>Applicability</u>. Subject to the terms and conditions of the Repurchase Documents, from time to time during the Revolving Period and at the request of any Seller, the Parties may enter into transactions in which such Seller agrees to sell, transfer and assign to Buyer certain Assets and all related rights in and interests related to such Assets on a servicing released basis, against the transfer of funds by Buyer representing the Purchase Price for such Assets, with a simultaneous agreement by Buyer to transfer to such Seller and such Seller to repurchase such Assets in a repurchase transaction at a date not later than the Facility Termination Date, against the transfer of funds by such Seller representing the Repurchase Price for such Assets.

**Article 2<br> DEFINITIONS AND INTERPRETATION**

Section 2.01 <u>Definitions</u>.

"<u>180+ Delinquent Loan</u>": Any Underlying Mortgage Loan with respect to which any required monthly payment is one hundred and eighty (180) or more days delinquent based on the methodology used by the Mortgage Bankers Association, which, for the avoidance of doubt, shall include any day in which such Underlying Mortgage Loan is subject to any plan of forbearance or deferral.

"<u>20+ Family Property</u>": A multifamily residential property consisting of at least twenty (20) but no more than one hundred (100) separate residential units. A 20+ Family Property shall not include properties that secure Ground-Up Construction Mortgage Loans intended for the purpose of "build-to rent" or single-family homes for sale.

"<u>30+ Delinquent Loan</u>": Any Underlying Mortgage Loan with respect to which any required monthly payment is thirty (30) or more days delinquent based on the methodology used by the Mortgage Bankers Association, which, for the avoidance of doubt, shall include any day in which such Underlying Mortgage Loan is subject to any plan of forbearance or deferral.

"<u>60+ Delinquent Loan</u>": Any Underlying Mortgage Loan with respect to which any required monthly payment is sixty (60) or more days delinquent based on the methodology used by the Mortgage Bankers Association, which, for the avoidance of doubt, shall include any day in which such Underlying Mortgage Loan is subject to any plan of forbearance or deferral.

"<u>90+ Delinquent Loan</u>": Any Underlying Mortgage Loan with respect to which any required monthly payment is ninety (90) or more days delinquent based on the methodology used by the Mortgage Bankers Association, which, for the avoidance of doubt, shall include any day in which such Underlying Mortgage Loan is subject to any plan of forbearance or deferral.

"<u>Accelerated Repurchase Date</u>": Defined in <u>Section 10.02</u>.

"<u>Accepted Servicing Practices</u>": With respect to any Underlying Asset, those mortgage servicing practices of prudent financial or mortgage lending institutions which service assets of the same type as such Underlying Assets in the jurisdiction where the related Mortgaged Property is located.

"<u>Account</u>": Individually and collectively, the Waterfall Account, the Servicing Account and the Construction Holdback Account.

"<u>Account Bank</u>": Wells Fargo Bank, National Association or any other bank approved by Buyer.

"<u>Account Control Agreement</u>": Each Account Control Agreement, entered into by either Seller, an Account Bank and Buyer, with respect to one or more of the Accounts, as such may be amended, supplemented or otherwise modified from time to time.

"<u>Actual Knowledge</u>": With respect to any Person, the actual knowledge of such Person without further inquiry or investigation; provided, that for the avoidance of doubt, such actual knowledge shall include the knowledge of such Person and each of its employees, officers, directors and agents.

"<u>Addendum</u>": That certain Addendum hereto entered into as of the Effective Date, among the Buyer, the Sellers and the Guarantor, as may be amended, supplemented, modified or restated from time to time.

"<u>Additional Draw Amounts</u>": With respect to any Additional Draw Unfunded Loan, the additional principal amount advanced to the related Mortgagor by the Servicer from time to time pursuant to the terms of the related Mortgage Note.

"<u>Additional Draw Unfunded Loan</u>": With respect to each Mortgage Loan, other than a Construction Holdback Mortgage Loan, one that provides for Additional Draw Amounts.

"<u>Advance</u>": The meaning assigned thereto in the related Loan Agreement, or if not so defined, means each loan or advance made by the originator, Servicer, Seller, a Trustee on behalf of the related CLT, or a DST, to a Mortgagor thereunder.

"<u>Affiliate</u>": With respect to any Person, any other Person directly or indirectly Controlling, Controlled by, or under common Control with, such Person; provided that anything herein to the contrary notwithstanding, the sole Affiliates of Guarantor, Sellers and their respective Subsidiaries (including, for the avoidance of doubt, each Trust and each REO Subsidiary) shall be the Guarantor and its Subsidiaries.

"<u>Agency</u>": Fannie Mae, Freddie Mac or Ginnie Mae, as applicable.

"<u>Aggregate Purchase Price</u>": As of any date of determination, the aggregate outstanding Purchase Price of all Purchased Assets subject to a Transaction.

"<u>Agreement</u>": This Master Repurchase Agreement and Securities Contract, dated as of the Effective Date, by and among Sellers and Buyer, as the same may be amended, supplemented, or modified from time to time, and which shall include all Schedules and Exhibits thereto.

"<u>Allocated Purchase Price</u>": With respect to an Underlying Asset and the related Purchase Date for such Underlying Asset, the product of the Market Value of such Underlying Asset on the Purchase Date times the Applicable Percentage, and thereafter, such Allocated Purchase Price as decreased by the amount, without duplication, of any cash or Income received by Buyer and applied to reduce the Allocated Purchase Price attributable to such Underlying Asset under <u>Section 3.01(h)</u>, and if not solely attributable to any specific Underlying Asset, to be applied by Buyer in its discretion to all Underlying Assets.

"<u>ALTA</u>": The American Land Title Association.

"<u>Alternative Documentation Loan</u>": A Mortgage Loan, excluding a Bank Statement Mortgage Loan, for which the Mortgagor provided a form 1099, written verification of employment form 1005, certified profit & loss statement, or other documentation in lieu of bank statements or a full documentation review to document such Mortgagor's income and eligibility in connection with the origination of such Mortgage Loan.

"<u>Alternative Rate</u>": A per annum rate based on an index approximating the behavior of Term SOFR, as determined by Buyer in substantially the same manner that Buyer determines such rate in transactions with similarly situated counterparties and similar assets.

"<u>Anniversary Year</u>": The one-year period beginning on the Effective Date and ending on the first anniversary thereof, and each subsequent one-year period beginning on the day after the end of the preceding Anniversary Year and ending on next succeeding anniversary of the Effective Date.

"<u>Anti-Corruption Laws</u>": The U.S. Foreign Corrupt Practices Act, the UK Bribery Act, the Canadian Corruption of Foreign Public Officials Act, if applicable, or any other law applicable to Seller or any of its Parents or Subsidiaries that prohibits the bribery of foreign officials to gain a business advantage.

"<u>Anti-Money Laundering Laws</u>": Applicable laws or regulations in any jurisdiction in which Seller is located or doing business that relate to money laundering, any predicate crime to money laundering or any financial record keeping and reporting requirements related thereto.

"<u>Applicable Percentage</u>": The meaning set forth in the Addendum, which definition is incorporated by reference herein.

"<u>Asset</u>": Collectively, (i) with respect to the Underlying Trusts, the Trust Certificates, together with the beneficial interests in the related Underlying Assets and (ii) with respect to each REO Subsidiary, the Capital Stock representing all of the Equity Interests in such REO Subsidiary.

"<u>Asset Documents</u>": With respect to any (i) Mortgage Loan, as applicable, those documents identified in the definition of "Mortgage File" in the Custodial Agreement executed in connection with, evidencing or governing such Mortgage Loan and the related Mortgaged Property and which are required to be delivered to Custodian under the Custodial Agreement, and (ii) REO Property, those documents which are required to be delivered to the Custodian under the Custodial Agreement.

"<u>Asset Tape</u>": A computer tape or other electronic medium generated by a Seller, and delivered to Buyer and Custodian, which provides information (including the information set forth on <u>Exhibit F</u> attached hereto) for the Underlying Assets, in a format acceptable to Buyer.

"<u>Assignment Agreement</u>": Each Assignment Agreement pursuant to which Assets are transferred to a Trustee on behalf of a CLT, a DST, or an REO Subsidiary, including any REO Subsidiary Assignment Agreement, in each case, as amended, supplemented or otherwise modified from time to time.

"<u>Assignment of Leases and Rents</u>": An assignment of leases and rents for each Mortgaged Property located within the same county or parish, dated as of the Effective Date or the related Purchase Date, executed and delivered by the Transferor, constituting an assignment of the lease or the leases, as applicable, and the proceeds thereof, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. The Assignment of Leases and Rents may be included as part of the Mortgage for such Mortgaged Property or Mortgaged Properties.

"<u>Bankruptcy Code</u>": Title 11 of the United States Code, as amended.

"<u>Bank Statement Mortgage Loan</u>": A Mortgage Loan for which the Mortgagor provided bank statements to document such Mortgagor's income and eligibility in connection with the origination of such Mortgage Loan.

"<u>Benchmark</u>": Initially, the Term SOFR Reference Rate with a one-month tenor; provided that if a Benchmark Transition Event has occurred with respect to the Term SOFR Reference Rate or the then-current Benchmark, then "Benchmark" means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to <u>Section 12.01</u>.

"<u>Benchmark Replacement</u>": With respect to any Benchmark Transition Event, the sum of: (a) the alternate benchmark rate that has been selected by Buyer giving due consideration to (i) any selection or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a benchmark rate as a replacement to the then-current Benchmark for Dollar-denominated syndicated or bilateral credit facilities and (b) the related Benchmark Replacement Adjustment; <u>provided</u> that, if such Benchmark Replacement as so determined would be less than the Floor, such Benchmark Replacement will be deemed to be the Floor for the purposes of this Agreement and the other Repurchase Documents.

"<u>Benchmark Replacement Adjustment</u>": With respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by Buyer giving due consideration to (a) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body or (b) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for Dollar-denominated syndicated or bilateral credit facilities.

"<u>Benchmark Replacement Date</u>": The earlier to occur of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in the case of clause (a) or (b) of the definition of "Benchmark Transition Event," the later of (i) the date of the public statement or publication of information referenced therein and (ii) the date on which the administrator of such Benchmark (or the published component used in the calculation thereof) permanently or indefinitely ceases to provide such Benchmark (or such component thereof); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the case of clause (c) of the definition of "Benchmark Transition Event," the first date on which such Benchmark (or the published component used in the calculation thereof) has been determined and announced by the regulatory supervisor for the administrator of such Benchmark (or such component thereof) to be non-representative; provided that such non-representativeness will be determined by reference to the most recent statement or publication referenced in such clause (c) and even if such Benchmark (or such component thereof) continues to be provided on such date.

"<u>Benchmark Transition Event</u>": The occurrence of one or more of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that such administrator has ceased or will cease to provide such Benchmark (or such component thereof), permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide such Benchmark (or such component thereof);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof), the Board of Governors of the Federal Reserve System, the Federal Reserve Bank of New York, an insolvency official with jurisdiction over the administrator for such Benchmark (or such component), a resolution authority with jurisdiction over the administrator for such Benchmark (or such component) or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark (or such component), which states that the administrator of such Benchmark (or such component) has ceased or will cease to provide such Benchmark (or such component thereof) permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide such Benchmark (or such component thereof); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that such Benchmark (or such component thereof) is not, or as of a specified future date will not be, representative.

"<u>Benchmark Transition Start Date</u>": In the case of a Benchmark Transition Event, the earlier of (a) the applicable Benchmark Replacement Date and (b) if such Benchmark Transition Event is a public statement or publication of information of a prospective event, the 90th day prior to the expected date of such event as of such public statement or publication of information (or if the expected date of such prospective event is fewer than 90 days after such statement or publication, the date of such statement or publication).

"<u>Benchmark Unavailability Period</u>": The period (if any) (x) beginning at the time that a Benchmark Replacement Date has occurred if, at such time, no Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Repurchase Document in accordance with <u>Section 12.01</u> and (y) ending at the time that a Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Repurchase Document in accordance with <u>Section 12.01</u>.

"<u>BHC Act Affiliate</u>": The meaning assigned to the term "affiliate" in, and interpreted in accordance with, 12 U.S.C. § 1841(k).

"<u>BPO</u>": An opinion of the BPO Value of a Mortgaged Property or REO Property.

"<u>BPO Value</u>": The stated dollar value, based on "as-is" condition, contained in a BPO regarding the fair market value of a Mortgaged Property, REO Property or parcel of real property and given by a licensed real estate agent or broker (such agent or broker being independent from any Seller, Guarantor, Servicer or Interim Servicer and acceptable to Buyer) which generally shall include three (3) comparable sales and three (3) comparable listings.

"<u>Business Day</u>": Any day other than (a) a Saturday or a Sunday, (b) a day on which banks in the States of New York, California or North Carolina are authorized or obligated by law or executive order to be closed or (c) any day on which the New York Stock Exchange, the Federal Reserve Bank of New York or the Custodian is authorized or obligated by law or executive order to be closed.

"<u>Buyer</u>": Wells Fargo Bank, National Association, in its capacity as Buyer under this Agreement and the other Repurchase Documents.

"<u>Capital Lease Obligations</u>": With respect to any Person, all obligations of such Person to pay rent or other amounts under a lease of (or other agreement conveying the right to use) property to the extent such obligations are required to be classified and accounted for as a capital lease on a balance sheet of such Person under GAAP, and, for purposes of this Agreement, the amount of such obligations shall be the capitalized amount thereof, determined in accordance with GAAP.

"<u>Capital Stock</u>": Each stock or membership interest certificate evidencing 100% of the Equity Interests in the related REO Subsidiary.

"<u>Cash Equivalents</u>": (a) securities with maturities of ninety (90) days or less from the date of acquisition issued or fully guaranteed or insured by the United States Government or any agency thereof, (b) certificates of deposit and eurodollar time deposits with maturities of ninety (90) days or less from the date of acquisition and overnight bank deposits of Buyer or of any commercial bank having capital and surplus in excess of $500,000,000, (c) repurchase obligations of Buyer or of any commercial bank satisfying the requirements of clause (b) of this definition, having a term of not more than seven (7) days with respect to securities issued or fully guaranteed or insured by the United States Government, (d) commercial paper of a domestic issuer rated at least A 1 or the equivalent thereof by S&P or P 1 or the equivalent thereof by Moody's and in either case maturing within ninety (90) days after the day of acquisition, (e) securities with maturities of ninety (90) days or less from the date of acquisition issued or fully guaranteed by any state, commonwealth or territory of the United States, by any political subdivision or taxing authority of any such state, commonwealth or territory or by any foreign government, the securities of which state, commonwealth, territory, political subdivision, taxing authority or foreign government (as the case may be) are rated at least A by S&P or A by Moody's, (f) securities with maturities of ninety (90) days or less from the date of acquisition backed by standby letters of credit issued by Buyer or any commercial bank satisfying the requirements of <u>clause (b)</u> of this definition or (g) shares of money market mutual or similar funds which invest exclusively in assets satisfying the requirements of <u>clauses (a)</u> through <u>(f)</u> of this definition.

"<u>Change of Control</u>": The occurrence of either of the following events: (a) with respect to any Seller, Guarantor shall cease to own and control, of record and beneficially, directly or indirectly 100% of the Equity Interests of such Seller, or (b) RCM GA Manager LLC or an Affiliate thereof ceases to be the investment adviser of Guarantor.

"<u>Closing Certificate</u>": A true and correct certificate in the form of <u>Exhibit C</u>, executed by a Responsible Officer of Seller.

"<u>CLT</u>": An Underlying Trust that is established as a New York common law trust.

"<u>Code</u>": The Internal Revenue Code of 1986, and the regulations promulgated and rulings issued thereunder, in each case as amended, modified or replaced from time to time.

"<u>Compliance Certificate</u>": A true and correct certificate in the form of <u>Exhibit D</u>, executed by a Responsible Officer of each Seller.

"<u>Confirmation</u>": A purchase confirmation in the form of <u>Exhibit E</u>, duly completed, executed and delivered by a Seller and Buyer in accordance with <u>Section 3.01</u>.

"<u>Conforming Changes</u>": With respect to either the use or administration of Term SOFR or the use, administration, adoption or implementation of any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of "Business Day," the definition of "U.S. Government Securities Business Day," the definition of "Pricing Period" or any similar or analogous definition (or the addition of a concept of "interest period"), timing and frequency of determining rates and making payments of Price Differential, timing of Transaction Requests or prepayment notices, the applicability and length of lookback periods, the applicability of <u>Section 12.03</u> and other technical, administrative or operational matters) that Buyer decides may be appropriate to reflect the adoption and implementation of any such rate or to permit the use and administration thereof by Buyer in a manner substantially consistent with market practice (or, if Buyer decides that adoption of any portion of such market practice is not administratively feasible or if Buyer determines that no market practice for the administration of any such rate exists, in such other manner of administration as Buyer decides is reasonably necessary in connection with the administration of this Agreement and the other Repurchase Documents).

"<u>Construction Holdback Account</u>": The account maintained by the Servicer pursuant to its applicable Servicing Agreement; <u>provided</u>, that such account shall not be opened until a Seller enters into Dutch Loans.

"<u>Construction Holdback Amount</u>": With respect to each Construction Holdback Mortgage Loan, the related amount that has been deposited in the Construction Holdback Account, has not been disbursed to the related Mortgagor and that may only be used in the construction or rehabilitation of the related Mortgaged Property in accordance with the terms of the related Mortgage Loan Documents.

"<u>Construction Holdback Mortgage Loan</u>": Each Mortgage Loan for which a Construction Holdback Amount is indicated on the related Mortgage Loan Schedule for which repair plans to complete the rehabilitation of such Mortgaged Property has been submitted by the related Mortgagor to the Seller together with the related loan application for such Mortgage Loan (and is included in the related Credit File) and have been approved in writing by a Trustee on behalf of the related CLT, or by a DST.

"<u>Construction Mortgage Loan</u>": An RTL Loan (i) that is identified as a "Construction Mortgage Loan" on the related Mortgage Loan Schedule and (ii) in respect of which one or more underlying Mortgaged Properties are Rehab Properties.

"<u>Contractual Obligation</u>": With respect to any Person, any provision of any securities issued by such Person or any indenture, mortgage, deed of trust, deed to secure debt, contract, undertaking, agreement, instrument or other document to which such Person is a party or by which it or any of its property or assets are bound or are subject.

"<u>Control</u>": With respect to any Person, the direct or indirect possession of the power to direct or cause the direction of the management or policies of such Person, whether through the ability to exercise voting power, by contract or otherwise. "Controlling," "Controlled" and "under common Control" have correlative meanings.

"<u>Corporate Advances</u>": Servicing Advances made in connection with the foreclosure or servicing of an Underlying Mortgage Loan, Corporate Advances excluding P&I Advances and Escrow Advances.

"<u>Credit File</u>": With respect to each Mortgage Loan, all documents directly involved in and/or used to make decisions with respect to the origination, underwriting (including documented compensating factors pertaining to exceptions) and servicing of the Mortgage Loan, including but not limited to the documents specified in the related Purchase Agreement, and any additional documents required to be added to the Credit File pursuant to such related Purchase Agreement and as required by the Underwriting Guidelines.

"<u>CTC Custodial Agreement</u>": The meaning set forth in the definition of "Custodial Agreement".

"<u>Custodial Agreement</u>": As applicable, each of (i) the Custodial Agreement (the "<u>DBNTC Custodial Agreement</u>"), dated as of the Effective Date, among Buyer, Sellers, Trustee W on behalf of Trust W, Trustee TRS-W on behalf of Trust TRS-W and Deutsche Bank National Trust Company as Custodian, as the same may be amended, modified or supplemented from time to time, (ii) the Custodial Agreement (the "<u>U.S. Bank Custodial Agreement</u>"), dated as of the Effective Date, among Buyer, Sellers, Trustee W on behalf of Trust W, Trustee TRS-W on behalf of Trust TRS-W and U.S. Bank National Association as Custodian, as the same may be amended, modified or supplemented from time to time, (iii) the Custodial Agreement, (the "<u>CTC Custodial Agreement</u>"), dated on or after the Effective Date, among Buyer, Sellers, Trustee W on behalf of Trust W, Trustee TRS-W on behalf of Trust TRS-W and Computershare Trust Company, National Association, as Custodian, as the same may be amended, modified or supplemented from time to time, and (iv) any other custodial agreement acceptable to Buyer in its sole discretion. Each reference to "<u>Custodial Agreement</u>" in this Agreement shall be deemed to reference the applicable Custodial Agreement or all Custodial Agreements, as the context requires.

"<u>Custodian</u>": As applicable, each of (i) Deutsche Bank National Trust Company with respect to the DBNTC Custodial Agreement, (ii) U.S. Bank National Association with respect to the U.S. Bank Custodial Agreement, (iii) Computershare Trust Company, National Association with respect to the CTC Custodial Agreement, and (iv) any other custodian acceptable to Buyer in its sole discretion. Each reference to "<u>Custodian</u>" in this Agreement shall be deemed to reference the applicable Custodian or all Custodians, as the context requires.

"<u>DBNTC Custodial Agreement</u>": The meaning set forth in the definition of "Custodial Agreement".

"<u>Default</u>": Any event that, with the giving of notice or the lapse of time, or both, would become an Event of Default.

"<u>Default Rate</u>": The meaning set forth in the Addendum, which definition is incorporated by reference herein.

"<u>Default Right</u>": The meaning assigned to that term in, and interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.

"<u>Depositor</u>": (i) Seller, in its capacity as depositor under a Trust Agreement, or its respective permitted successors and assigns and (ii) Seller, in its capacity as transferor under an assignment agreement pursuant to which REO Properties are transferred to REO Subsidiary, or its permitted successors and assigns.

"<u>Distribution Date</u>": The twenty-fifth (25th) day of each month, or if such date is not a Business Day, the next succeeding Business Day.

"<u>Dollars</u>" and "<u>$</u>": Lawful money of the United States of America.

"<u>DSCR</u>": With respect to a DSCR Loan, the ratio of (i) the aggregate net cash flow with respect to the related Mortgaged Properties during the immediately preceding month to (ii) the aggregate principal and interest due and owing on such DSCR Loan during such period.

"<u>DSCR Loan</u>": An Underlying Mortgage Loan originated for a business purpose, that has been underwritten based on the related Mortgaged Property's cash flow rather than the underlying Mortgagor's income, secured by one or more non-owner occupied Mortgaged Properties, and where the primary purpose of each such Mortgaged Property is to serve as a rental investment property.

"<u>DST</u>": An Underlying Trust that is established as a Delaware statutory trust.

"<u>DTI</u>": With respect to a Mortgage Loan, the debt-to-income ratio of the related Mortgagor.

"<u>Due Date</u>": The day of the month on which the monthly payment is due on a Mortgage Loan, exclusive of any days of grace.

"<u>Dutch Loan</u>": A Construction Holdback Mortgage Loan, for which the amount of interest due and payable from the Mortgagor is calculated in reference to the related Maximum Loan Balance of such Construction Holdback Mortgage Loan as set forth in the related Mortgage Note.

"<u>Early Repurchase Date</u>": Defined in <u>Section 3.05</u>.

"<u>Effective Date</u>": The meaning set forth in the Addendum, which definition is incorporated by reference herein.

"<u>Electronic Tracking Agreement</u>": The Electronic Tracking Agreement to be entered into among Buyer, Shellpoint, MERS and MERSCORP, Inc., to the extent applicable, as the same may be amended, modified or supplemented from time to time.

"<u>Eligible Asset</u>": An Eligible Trust Certificate or Eligible Capital Stock.

"<u>Eligible Assignee</u>": Any of the following Persons designated by Buyer for purposes of Section 18.08(c): (a) an Affiliate of Buyer that is a "U.S. person" within the meaning of Section 7701(a)(30) of the Code or a non-U.S. person that is entitled to a complete exemption from U.S. federal withholding tax on the receipt of interest payments under a double taxation treaty (and sufficiently documents such exemption and (that is not an "employee benefit plan" (as defined in Section 3(3) of ERISA)) that is subject to Title I of ERISA, a "plan" as defined by and subject to Section 4975 of the Code, or an entity deemed to hold "plan assets" of either of the foregoing, that would cause any Seller or Guarantor to incur any prohibited transaction excise tax penalties under Section 4975 of the Code), and (b) any other Person to which the Sellers have consented; provided, that such consent of Sellers shall not be unreasonably withheld, delayed or conditioned, and shall not be required at any time when a Default or Event of Default exists. Such Person shall provide to Sellers such duly executed IRS forms as Seller reasonably requests.

"<u>Eligible Capital Stock</u>": Capital Stock as to which each of the representations and warranties in <u>Schedule 1-D</u> applicable to Capital Stock are true and correct in all material respects.

"<u>Eligible Mortgage Loan</u>": Any Underlying Mortgage Loan for which bare legal title to such Underlying Mortgage Loan is wholly owned by a Trustee on behalf of the related CLT, or by a DST, as to which (a) each of the representations and warranties in <u>Schedule 1-A</u> are true and correct in all material respects, (b) that contains all required Asset Documents without exceptions unless otherwise waived by Buyer or permitted below and (c) that satisfies each of the following eligibility requirements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) at the time it was made, such Underlying Mortgage Loan complied in all material respects with all applicable local, state and federal laws, including all predatory lending laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Underlying Mortgage Loan is secured by a first priority mortgage or deed of trust on real property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Mortgaged Property is located in the jurisdiction identified in the related Mortgage Loan Schedule and consists of a single parcel of real property with a detached single family residence erected thereon, or a two- to four-family dwelling, or an individual condominium unit in a low-rise or high-rise condominium project, or an individual unit in a planned unit development or a de minimis planned unit development, a Manufactured Home, shares in a co-operative, a Multi-Family Property or a Mixed-Use Property

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) such Underlying Mortgage Loan is not a "Section 32" loan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the information set forth in the related Mortgage Loan Schedule is true and correct in all material respects as of the date or dates respecting which the information is furnished;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) such Underlying Mortgage Loan has been approved in Buyer's discretion as an Eligible Mortgage Loan by Buyer on the related Purchase Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) there are no future funding obligations on the part of the related Seller or Buyer or any other Person with respect to such Underlying Mortgage Loan that is a Non-QM Loan or a Rental Hold Loan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) the Mortgaged Property with respect to such Underlying Mortgage Loan located in the United States, and the Underlying Obligors are domiciled in the United States and are not Sanctioned Targets, and all obligations thereunder and under the Asset Documents are denominated and payable in Dollars;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) such Underlying Mortgage Loan is an Eligible Non-QM Loan, Eligible Rental Hold Loan or Eligible RTL Loan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) such Underlying Mortgage Loan satisfies all of the Additional Eligible Mortgage Loan Criteria as defined in the Addendum;

<u>provided</u>, <u>that</u> notwithstanding the failure of an Underlying Mortgage Loan to conform to the requirements of this definition, Buyer may, subject to such terms, conditions and requirements and Applicable Percentage adjustments as Buyer may require, designate in writing any such non-conforming Underlying Mortgage Loan as an Eligible Mortgage Loan, which designation (1) may include a temporary or permanent waiver of one or more Eligible Mortgage Loan requirements, and (2) shall not be deemed a waiver of the requirement that all other Underlying Mortgage Loans must be Eligible Mortgage Loans (including any Mortgage Loans that are similar or identical to the Underlying Mortgage Loan subject to the waiver). For the avoidance of doubt, any fact or circumstance that would result in the failure of a Mortgage Loan to conform to the requirements of this definition may be waived in writing by Buyer (which writing may be incorporated into the related Confirmation) at any time in Buyer's discretion, and following such written waiver by Buyer, such fact or circumstance (to the extent such fact or circumstance does not materially change) shall not be relevant to determining whether such Mortgage Loan is an Eligible Mortgage Loan.

"<u>Eligible Non-QM Loan</u>": The meaning specified in the Addendum.

"<u>Eligible Property (Rental Hold)</u>": The meaning specified in the Addendum.

"<u>Eligible Rental Hold Loan</u>": The meaning specified in the Addendum.

"<u>Eligible REO Property</u>": Any REO Property for which title to such REO Property is wholly beneficially owned by either a Trustee on behalf of a CLT, a DST or the REO Subsidiary with respect to which a Seller has sold all of the Capital Stock of such REO Subsidiary to Buyer and (a) as to which each of the representations and warranties in <u>Schedule 1-B</u> are true and correct in all material respects, (b) as to which the related deed or other title document is titled in the name of such REO Subsidiary or such deed is in the process of being recorded, and the recordation status of such REO Property is included in the related REO Property Summary, and (c) which satisfies the following eligibility requirements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the information set forth in the related REO Property Schedule is true and correct in all material respects as of the date or dates respecting which the information is furnished;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such REO Property has either (i) been approved as an Eligible REO Property by Buyer on the related Purchase Date, or (ii) was acquired with regard to an Eligible Mortgage Loan that is converted to an REO Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) no lease agreements with any tenant with respect to the REO Property have been entered into or renewed after the related foreclosure date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) such REO Property is located in the United States and all obligations thereunder and under the related REO Property Schedule are denominated and payable in Dollars;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) legal title to such Underlying REO Property is in the name of the REO Subsidiary, a Trustee for the related CLT or a DST; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) such REO Property satisfies each of the Additional Eligible REO Property Criteria as defined in the Addendum;

<u>provided</u>, <u>that</u> notwithstanding the failure of an REO Property to conform to the requirements of this definition, Buyer may, subject to such terms, conditions and requirements and Applicable Percentage adjustments as Buyer may require, designate in writing any such non-conforming REO Property as an Eligible REO Property, which designation (1) may include a temporary or permanent waiver of one or more Eligible REO Property requirements, and (2) shall not be deemed a waiver of the requirement that all other REO Property must be Eligible REO Property (including any REO Property that is similar or identical to the REO Property subject to the waiver). For the avoidance of doubt, any fact or circumstance that would result in the failure of an REO Property to conform to the requirements of this definition may be waived in writing by Buyer (which writing may be incorporated into the related Confirmation) at any time in Buyer's discretion, and following such written waiver by Buyer, such fact or circumstance (to the extent such fact or circumstance does not materially change) shall not be relevant to determining whether such REO Property is an Eligible REO Property.

"<u>Eligible RTL Loan</u>": The meaning set forth in the Addendum.

"<u>Eligible Trust Certificate</u>": Each Trust Certificate as to which (a) each of the representations and warranties in <u>Schedule 1-C</u> are true and correct in all material respects with respect to such Trust Certificate, and (b) the Trust Agreement related to such Trust Certificate expressly permits Buyer to unilaterally unwind the related Underlying Trust and access the related Underlying Assets without any further action or approval of the applicable Seller or any other Person following the occurrence of an Event of Default; provided, that notwithstanding the failure of a Trust Certificate to conform to the requirements of this definition, Buyer may, subject to such terms, conditions and requirements and Applicable Percentage adjustments as Buyer may require, designate in writing any such non-conforming Trust Certificate as an Eligible Trust Certificate, which designation (1) may include a temporary or permanent waiver of one or more Eligible Trust Certificate requirements, and (2) shall not be deemed a waiver of the requirement that all other Trust Certificates must be Eligible Trust Certificates (including any Trust Certificates that are similar or identical to the Trust Certificates subject to the waiver).

"<u>Entitled Land</u>": Land (a) zoned and otherwise suitable for the development of Mortgaged Properties, and (b) with respect to which approval and entitlement from required Governmental Authorities of a tentative map and a preliminary development plan has been obtained; <u>provided</u> that, once horizontal construction commences on such development, such Entitled Land shall be reclassified as a Ground-Up Construction Mortgage Loan.

"<u>Environmental Laws</u>": Any federal, state, foreign or local statute, law, rule, regulation, ordinance, code, guideline, written policy and rule of common law now or hereafter in effect, and any judicial or administrative interpretation thereof, including any judicial or administrative order, consent decree or judgment, relating to the environment, employee health and safety or hazardous materials, including CERCLA, RCRA, the Federal Water Pollution Control Act, the Toxic Substances Control Act, the Clean Air Act, the Safe Drinking Water Act, the Oil Pollution Act of 1990, the Emergency Planning and the Community Right-to-Know Act of 1986, the Hazardous Material Transportation Act, the Occupational Safety and Health Act, and any state and local or foreign counterparts or equivalents.

"<u>Equity Interests</u>": With respect to any Person, (a) any share, interest, participation and other equivalent (however denominated) of capital stock of (or other ownership, equity or profit interests in) such Person, (b) any warrant, option or other right for the purchase or other acquisition from such Person of any of the foregoing, (c) any security convertible into or exchangeable for any of the foregoing, and (d) any other ownership or profit interest in such Person (including partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such share, warrant, option, right or other interest is authorized or otherwise existing on any date.

"<u>ERISA</u>": The Employee Retirement Income Security Act of 1974, as amended.

"<u>ERISA Affiliate</u>": Any entity, whether or not incorporated, that is a member of any group of organizations described in Section 414(b), (c), (m) or (o) of the Code of which Seller or Guarantor is a member.

"<u>Escrow Advances</u>": Servicing Advances made in connection with the Escrow Payments.

"<u>Escrow Payments</u>": With respect to any Mortgage Loan, the amounts constituting ground rents, taxes, assessments, water rates, sewer rents, municipal charges, mortgage insurance premiums, fire and hazard insurance premiums, condominium charges, and any other payments required to be escrowed by the Mortgagor with the Mortgagee pursuant to the Mortgage or any other document.

"<u>Evaluation/Appraisal</u>": An evaluation or an appraisal made, in either case, by an Evaluation/Appraisal Vendor which, in either case, satisfies the requirements of Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, as amended, and the regulations promulgated thereunder, all as in effect on the origination date of the Mortgage Loan.

"<u>Evaluation/Appraisal Vendor</u>": The author of the evaluation or appraisal constituting an Evaluation/Appraisal.

"<u>Event of Default</u>": Defined in <u>Section 10.01</u>.

"<u>Excluded Taxes</u>": Any of the following Taxes imposed on or with respect to Buyer or any other Indemnified Person or required to be withheld or deducted from a payment to Buyer or such other Indemnified Person: (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of Buyer or any other recipient of the payment being organized under the laws of, or having its principal office or its applicable lending office or the office from which it books any Transaction located in the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) imposed as a result of a present or former connection between Buyer or any other recipient of the payment and the jurisdiction imposing such Tax; (b) any Tax imposed on Buyer or other recipient of a payment hereunder that is attributable to such Buyer's or other recipient's failure to comply with relevant requirements set forth in <u>Section 12.06(d)</u>; (c) any withholding Tax that is imposed on amounts payable to Buyer or other recipient of a payment hereunder pursuant to a law in effect on the date such person becomes a party to or under this Agreement or such person changes its lending office or the office from which it books any Transaction, except (i) to the extent that, pursuant to <u>Section 12.06</u>, amounts with respect to such Taxes were payable to such person's assignor immediately before such person becomes a party to or under this Agreement or payable to such person before such person changed its lending office, or (ii) such assignment or change of lending office occurs at the request of Seller; and (d) any withholding Taxes imposed under FATCA.

"<u>Facility Termination Date</u>": The meaning set forth in the Addendum, which definition is incorporated by reference herein.

"<u>Fannie Mae</u>": The Federal National Mortgage Association, or any successor thereto.

"<u>FATCA</u>": Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Code and any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental Authorities entered into in connection with the implementation of the foregoing.

"<u>FCI</u>": FCI Lender Services, Inc.

"<u>FICO Score</u>": The credit score of the Mortgagor provided by Fair, Isaac & Company, Inc.

"<u>Floor</u>": The meaning set forth in the Addendum, which definition is incorporated by reference herein.

"<u>Foreign National Mortgage Loan</u>": A Mortgage Loan where the related Mortgagor is a foreign national, and not a citizen of the United States.

"<u>Freddie Mac</u>": The Federal Home Loan Mortgage Corporation, or any successor thereto.

"<u>Future Advance Loan</u>" Any Underlying Mortgage Loan that is a RTL Loan with respect to which there exists a continuing ability on the part of the holder of such Underlying Mortgage Loan, pursuant to the terms and conditions of the Mortgage Loan Documents, to provide additional funding to the Mortgagor.

"<u>Future Advance Purchase</u>": The meaning specified in <u>Section 3.11</u> of this Agreement.

"<u>GAAP</u>": Generally accepted accounting principles as in effect from time to time in the United States, consistently applied.

"<u>Genesis</u>": Genesis Capital, LLC.

"<u>Genesis Intercreditor Agreement</u>": The Intercreditor Agreement, dated as of March 30, 2023, among Genesis, Goldman Sachs Bank USA, Churchill MRA Funding I LLC, Forethought Life Insurance Company and the other "Interest Holders" from time to time parties thereto, as modified by that certain Joinder Agreement, dated as of March 24, 2025, by the Buyer, as Interest Holder, and as may be further amended, restated, supplemented or otherwise modified from time to time.

"<u>Ginnie Mae</u>": The Government National Mortgage Association and any successor thereto.

"<u>Governing Documents</u>": With respect to any Person, its articles or certificate of incorporation or formation, by-laws, partnership, limited liability company, memorandum and articles of association, operating or trust agreement and/or other organizational, charter or governing documents.

"<u>Governmental Authority</u>": Any (a) nation or government, (b) state or local or other political subdivision thereof, or (c) entity exercising executive, legislative, judicial or regulatory functions over any Relevant Party.

"<u>Ground-Up Construction Mortgage Loan</u>": Any Underlying Mortgage Loan secured at the time of purchase solely by Entitled Land or any loan which contains a budget to demolish all improvements completely, in either case and is intended to be used for the building of a qualified property type upon project completion per the Underwriting Guidelines; <u>provided</u> that, once the ground-up project is in "under roof" condition, in Seller's reasonable discretion and as supported by the related documentation, such Underlying Mortgage Loan shall be reclassified as a RTL Loan; <u>provided</u> further that, a Ground-Up Construction Mortgage Loan may, in Buyer's sole discretion, be re-designated as a Construction Mortgage Loan once the original Holdback Amount is 80% drawn.

"<u>Guarantee Agreement</u>": The Guaranty Agreement, dated as of the Effective Date, made by Guarantor in favor of Buyer, as amended, supplemented or otherwise modified from time to time.

"<u>Guarantee Default</u>": Has the meaning assigned thereto in the Guarantee Agreement.

"<u>Guarantee Obligation</u>": With respect to any Person (the "guaranteeing person"), any obligation of (a) the guaranteeing person or (b) another Person (including any bank under any letter of credit) to induce the creation of the obligations for which the guaranteeing person has issued a reimbursement, counterindemnity or similar obligation, in either case guaranteeing or in effect guaranteeing any Indebtedness, leases, dividends, Contractual Obligation or other obligations or indebtedness (the "primary obligations") of any other third Person (the "primary obligor") in any manner, whether directly or indirectly, including any obligation of the guaranteeing person, whether or not contingent, (i) to purchase any such primary obligation or any property constituting direct or indirect security therefor, (ii) to advance or supply funds (1) for the purchase or payment of any such primary obligation, or (2) to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, (iii) to purchase property, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such primary obligation, or (iv) otherwise to assure or hold harmless the owner of any such primary obligation against loss in respect thereof; provided, that the term Guarantee Obligation shall not include endorsements of instruments for deposit or collection in the ordinary course of business. The amount of any Guarantee Obligation of any guaranteeing person shall be deemed to be the maximum stated amount of the primary obligation relating to such Guarantee Obligation (or, if less, the maximum stated liability set forth in the instrument embodying such Guarantee Obligation); provided, that in the absence of any such stated amount or stated liability, the amount of such Guarantee Obligation shall be such guaranteeing person's maximum anticipated liability in respect thereof as reasonably determined by such Person.

"<u>Guarantor</u>": Rithm Perpetual Life Residential Trust, together with its permitted successors and assigns.

"<u>Holdback Amount</u>": With respect to any Future Advance Loan, the aggregate future funding amounts that are prefunded and reserved for the related Mortgagor to improve and rehabilitate the related Mortgaged Property in accordance with the related Mortgage Loan Documents.

"<u>Income</u>": With respect to any Purchased Asset and all related Underlying Assets, all principal and income or dividends or distributions received with respect to such Purchased Asset or Underlying Asset (net of any amounts permitted to be retained by the Servicer pursuant to the Servicing Agreement), including any sale or liquidation premiums, Liquidation Proceeds, insurance proceeds, net rental income, interest, dividends or other distributions payable thereon or any fees or payments of any kind received by the related Servicer.

"<u>Indebtedness</u>": With respect to any Person (a) obligations created, issued or incurred by such Person for borrowed money (whether by loan, the issuance and sale of debt securities or the sale of property subject to an understanding or agreement, contingent or otherwise, to repurchase such property); (b) obligations of such Person to pay the deferred purchase or acquisition price of property or services, other than trade accounts payable (other than for borrowed money) arising, and accrued expenses incurred, in the ordinary course of business so long as such trade accounts payable are payable within 90 days of the date the respective goods are delivered or the respective services are rendered; (c) indebtedness of others secured by a Lien on the property of such Person, whether or not the respective indebtedness so secured has been assumed by such Person; (d) obligations (contingent or otherwise) of such Person in respect of letters of credit or similar instruments issued or accepted by banks and other financial institutions for the account of such Person; (e) Capital Lease Obligations of such Person; (f) obligations of such Person under repurchase agreements or like arrangements; (g) indebtedness of others guaranteed by such Person; (h) all obligations of such Person incurred in connection with the acquisition or carrying of fixed assets by such Person; (i) indebtedness of general partnerships of which such Person is a general partner; and (j) any other indebtedness of such Person by a note, bond, debenture or similar instrument; provided, however, that "<u>Indebtedness</u>" shall exclude in each case such Person's Non-Recourse Indebtedness.

"<u>Indemnified Amount</u>": Defined in <u>Section 13.01</u>.

"<u>Indemnified Person</u>": Defined in <u>Section 13.01</u>.

"<u>Indemnified Taxes</u>": Taxes other than Excluded Taxes and Other Taxes imposed on or with respect to any payment made by or on account of any obligation of any Seller under the Repurchase Documents.

"<u>Initial Principal Balance</u>": With respect to each Dutch Loan, the sum of the Unpaid Principal Balance advanced to or on behalf of the Mortgagor on the Purchase Date plus the related Construction Holdback Amount for such Dutch Loan. With respect to each Non-Dutch Loan, the Unpaid Principal Balance advanced to or on behalf of the Mortgagor on the Purchase Date (which, for the avoidance of doubt, shall not include any Additional Draw Amounts which have not yet been funded as of such Purchase Date).

"<u>Insolvency Event</u>": With respect to any Person, (a) the filing of a decree or order for relief by a court having jurisdiction in the premises with respect to such Person or any substantial part of its assets or property in an involuntary case under any applicable Insolvency Law now or hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official for such Person or for any substantial part of its assets or property, or ordering the winding-up or liquidation of such Person's affairs, and such decree or order shall remain unstayed and in effect for a period of thirty (30) days, (b) the commencement by such Person of a voluntary case under any applicable Insolvency Law now or hereafter in effect, (c) the consent by such Person to the entry of an order for relief in an involuntary case under any Insolvency Law, (d) the consent by such Person to the appointment of or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official for such Person or for any substantial part of its assets or property, (e) the making by such Person of any general assignment for the benefit of creditors, (f) the admission in a legal proceeding of the inability of such Person to pay its debts generally as they become due, (g) the failure by such Person generally to pay its debts as they become due, or (h) the taking of action by such Person in furtherance of any of the foregoing.

"<u>Insolvency Laws</u>": The Bankruptcy Code and all other applicable liquidation, conservatorship, bankruptcy, moratorium, rearrangement, receivership, insolvency, reorganization, suspension of payments and similar debtor relief laws from time to time in effect affecting the rights of creditors generally.

"<u>Insolvency Proceeding</u>": Any case, action or proceeding before any court or other Governmental Authority relating to any Insolvency Event.

"<u>Interest Payments</u>": With respect to any Underlying Asset, all payments of interest, including default interest, received from time to time.

"<u>Interim Servicer</u>": With respect to any Underlying Asset, any interim servicer servicing such Underlying Asset for an interim period together with its permitted successors and assigns; provided, that the interim servicing period for which such Interim Servicer shall service such Purchased Asset shall terminate on the earlier of (i) the transfer of servicing of such Underlying Asset to Servicer and (ii) sixty (60) days following such Underlying Asset becoming subject to a Transaction, or such longer period approved in writing by Buyer in its discretion if a servicer other than Servicer is interim servicing or sub-servicing such Underlying Asset.

"<u>Internal Control Event</u>": Fraud that involves management or other employees who have a significant role in, the internal controls of any Seller, any Trust, or Guarantor over financial reporting.

"<u>Investment</u>": With respect to any Person, any acquisition or investment (whether or not of a controlling interest) by such Person, whether by means of (a) the purchase or other acquisition of any Equity Interest in another Person, (b) a loan, advance or extension of credit to, capital contribution to, guaranty or credit enhancement of Indebtedness of, or purchase or other acquisition of any Indebtedness of, another Person, including any partnership or joint venture interest in such other Person, or (c) the purchase or other acquisition (in one transaction or a series of transactions) of assets of another Person that constitute the business or a division or operating unit of another Person. Any binding commitment or option to make an Investment in any other Person shall constitute an Investment. Except as expressly provided otherwise, for purposes of determining compliance with any covenant contained in this Agreement, the amount of any Investment shall be the amount actually invested, without adjustment for subsequent increases or decreases in the value of such Investment.

"<u>Investment Company Act</u>": The Investment Company Act of 1940, as amended, restated or modified from time to time, including all rules and regulations promulgated thereunder.

"<u>Knowledge</u>": With respect to any Person, means collectively (i) the Actual Knowledge of such Person, (ii) notice of any fact, event, condition or circumstance that would cause a reasonably prudent Person to conduct an inquiry that would give such Person Actual Knowledge, whether or not such Person actually undertook such an inquiry, and (iii) all knowledge that is imputed to a Person under any statute, rule, regulation, ordinance, or official decree or order.

"<u>Lien</u>": Any mortgage, statutory or other lien, pledge, charge, right, claim, adverse claim, attachment, levy, hypothecation, assignment, deposit arrangement, security interest, UCC financing statement or encumbrance of any kind on or otherwise relating to any Person's assets or properties in favor of any other Person or any preference, priority or other security agreement or preferential arrangement of any kind.

"<u>Liquidated Asset</u>": (i) A Mortgage Loan that has been sold or refinanced or was subject to a short sale or with respect to which the Mortgaged Property has been sold or (ii) an REO Property that has been sold.

"<u>Liquidation Proceeds</u>": With respect to any Underlying Asset that becomes a Liquidated Asset, all proceeds and other amounts received on account of the liquidation or other disposition of such Underlying Asset, including all cash amounts received by the applicable Trustee on behalf of the related CLT, a DST, or the Servicer, as applicable, in connection with: (i) the liquidation of Mortgaged Property related to an Underlying Asset or other collateral constituting security for such Underlying Asset, through trustee's sale, foreclosure sale, disposition or otherwise (other than any portion thereof required to be released to the related Mortgagor), and (ii) the realization upon any deficiency judgment obtained against a Mortgagor, if applicable.

"<u>Liquidity</u>": With respect to any Person, the sum of (i) its unrestricted cash, plus (ii) its unrestricted Cash Equivalents, plus (iii) the aggregate amount of unused capacity available to such Person (taking into account applicable haircuts) under financing facilities for which such Person has unencumbered eligible collateral to pledge thereunder, plus (iv) net equity value of whole pool agency securities.

"<u>Loan Agreement</u>": With respect to any Single-Property Rental Hold Loan or a Multi-Property Rental Hold Loan, the related loan agreement entered into between the originator of such Mortgage Loan (or any successor mortgagee) and the related Mortgagor, in each case, as the same may be amended, supplemented or otherwise modified from time to time.

"<u>Loan Documents</u>": With respect to any Underlying Mortgage Loan, the related Loan Agreement and each other "Loan Document" (or other similar term) as such term is defined in such Loan Agreement (or any other document entered into by the related Mortgagor or any sponsor thereof in connection with such Loan Agreement), all of which shall be included in the related Asset Documents to be delivered to Custodian pursuant to the terms of the applicable Custodial Agreement.

"<u>Low-FICO RTL Loan</u>": The meaning set forth in the Addendum.

"<u>Low-FICO Single-Property Rental Hold Loan</u>": The meaning set forth in the Addendum.

"<u>LTC</u>": The meaning set forth in the Addendum.

"<u>LTV</u>": With respect to any Mortgage Loan, the ratio of the outstanding principal amount of such Mortgage Loan as of the Purchase Date to the BPO of the Mortgaged Property.

"<u>Manufactured Home</u>": Any dwelling unit built on a permanent chassis and attached to a permanent foundation system.

"<u>Market Disruption Event</u>": Any event or events that, in the determination of Buyer, results in (a) a significant deterioration of a "repo market" or related "lending market" for purchasing (subject to repurchase) or financing debt obligations secured by Mortgage Loans or REO Property from the status of such markets on the Effective Date, (b) Buyer's not being able to finance Mortgage Loans or REO Property through the "repo market" or "lending market" with traditional counterparties at rates that would have been reasonable prior to the occurrence of such event or events, (c) Buyer not being able to sell securities backed by Purchased Assets at prices that would have been reasonable prior to the occurrence of such event or events, or (d) the imposition of a foreclosure moratorium or regulatory changes, the effect of which would be to materially impair Buyer's ability to realize on the Purchased Assets.

"<u>Market Value</u>": As of any date, (x) for any Purchased Asset, the aggregate value of the related Underlying Assets, and (y) for any Underlying Asset, the value of such Underlying Asset as of the related Purchase Date, in each case including the related Servicing Rights and outstanding Servicing Advances, at which such Underlying Asset could be sold in its entirety to a single third-party purchaser, as determined by Buyer, taking into account the fact that the Purchased Asset or Underlying Asset may be sold under circumstances in which a Seller is in default under this Agreement. Buyer's determination of Market Value shall be conclusive upon the parties, absent manifest error on the part of Buyer; provided, that Buyer agrees to determine the Market Value of any Purchased Asset or Underlying Asset in a manner similar to other similarly situated sellers. Each Seller acknowledges that Buyer's determination of Market Value is for the limited purpose of determining the value of Purchased Assets and Underlying Assets that are subject to Transactions hereunder without the ability to perform customary purchaser's due diligence and is not necessarily equivalent to a determination of the fair market value of the Purchased Assets or Underlying Assets achieved by obtaining competing bids in an orderly market in which the originator or servicer is not in default under a revolving debt facility and the bidders have adequate opportunity to perform customary asset and servicing due diligence. Notwithstanding anything else in this definition, the Market Value shall be deemed to be zero with respect to each Purchased Asset and Underlying Asset (or, in the case of <u>clause (e)</u> of this definition, solely with respect to the portion of such Underlying Asset that exceeds the applicable Sub-Limit) with respect to which:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the requirements of the definition of Eligible Mortgage Loan, Eligible Property (Rental Hold) or Eligible REO Property are not satisfied, as determined by Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the related Seller fails to repurchase such Purchased Asset by the Repurchase Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all Asset Documents have not been delivered to Custodian within the time periods required by this Agreement and the Custodial Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any material Asset Document has been released from the possession of Custodian under the Custodial Agreement to the related Seller or Servicer for more than twenty (20) days (unless Custodian has received an attorney bailee letter with respect thereto);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Underlying Asset exceeds the applicable Sub-Limit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the related Seller or Servicer fails to deliver any reports required hereunder where such failure materially adversely affects Buyer's ability to determine Market Value of such Purchased Asset or Underlying Asset; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) (i) there is a material exception in the trust receipt or bailee letter that has not been expressly waived by Buyer, or (ii) Buyer has not received a trust receipt or bailee letter.

"<u>Material Adverse Effect</u>": The occurrence of any of the following events: (a) a material adverse change in, or a material adverse effect upon, the property, assets, business, operations or financial condition of any Relevant Party as a whole, (b) a material impairment of the ability of any Seller and Guarantor to perform under any Repurchase Agreement or to avoid any Event of Default or (c) a material adverse effect upon the validity, legality, binding effect or enforceability of any Repurchase Document with respect to any Relevant Party or security interest granted hereunder or thereunder against any Relevant Party.

"<u>Materials of Environmental Concern</u>": Any hazardous, toxic or harmful substances, materials, wastes, pollutants or contaminants defined as such in or regulated under any Environmental Law.

"<u>Maximum Aggregate Purchase Price</u>": The meaning set forth in the Addendum, which definition is incorporated by reference herein.

"<u>Maximum Loan Balance</u>": With respect to each Dutch Loan, the Initial Principal Balance which is permitted to be borrowed by the related Mortgagor pursuant to the related Mortgage Loan Documents. With respect to each Non-Dutch Loan, the sum of the Initial Principal Balance and the sum of all Additional Draw Amounts which is permitted to be borrowed by the related Mortgagor pursuant to the related Mortgage Loan Documents (which includes both funded and unfunded amounts).

"<u>MERS</u>": Mortgage Electronic Registration Systems, Inc.

"<u>MERS Loan</u>": Any Mortgage Loan as to which the related Mortgage or assignment of mortgage has been recorded in the name of MERS, as agent for the holder from time to time of the Mortgage Note, and which is identified as a MERS Loan on the related Mortgage Loan Schedule.

"<u>Mixed-Use Property</u>": A building that is partially (greater than 50% by square feet) intended for residential use (multifamily or condo) and partially (the remainder) for commercial use.

"<u>Moody's</u>": Moody's Investors Service, Inc. or, if Moody's Investors Service, Inc. is no longer issuing ratings, another nationally recognized rating agency reasonably acceptable to Buyer.

"<u>Mortgage</u>": Any mortgage, deed of trust, assignment of rents, security agreement and fixture filing, or other instruments creating and evidencing a lien on real property and other property and rights incidental thereto.

"<u>Mortgage Interest Rate</u>": The rate of interest borne on a Mortgage Loan from time to time in accordance with the terms of the related Mortgage Note.

"<u>Mortgage Loan</u>": Any fixed rate or adjustable rate and closed-end home equity one-to-four-family residential mortgage loan, closed end line of credit that is current (including modified loans), delinquent, and/or in the process of foreclosure, and secured by a first Lien Mortgage, which the Custodian has been instructed to hold for Buyer pursuant to the Custodial Agreement, and which Mortgage Loan includes, without limitation, (i) a Mortgage Note, the related Mortgage and all other Asset Documents and (ii) all right, title and interest of a Trustee on behalf of the related CLT or a DST, as applicable, in and to the Mortgaged Property covered by such Mortgage.

"<u>Mortgage Loan Schedule</u>": With respect to any Transaction as of any date, a mortgage loan schedule in the form of either (a) <u>Exhibit F</u> attached hereto or (b) the Asset Tape (including the information set forth on <u>Exhibit F</u> attached hereto) relating to the Mortgage Loans.

"<u>Mortgage Note</u>": The original executed promissory note or other evidence of the indebtedness of a Mortgagor with respect to a Mortgage Loan.

"<u>Mortgaged Property</u>": The real property (including all improvements, buildings, fixtures, building equipment and personal property thereon and all additions, alterations and replacements made at any time with respect to the foregoing) and all other collateral securing repayment of, or converted into REO Property in satisfaction of, the indebtedness evidenced by a Mortgage Note.

"<u>Mortgagee</u>": The record holder of a Mortgage Note secured by a Mortgage.

"<u>Mortgagor</u>": The obligor on a Mortgage Note, including any Person who has assumed or guaranteed the obligations of the obligor thereunder or, with respect to any Rental Hold Loan, the related principal/sponsor(s).

"<u>Multiemployer Plan</u>": A multiemployer plan as defined in Section 4001(a)(3) of ERISA as to which any Seller, Guarantor or any ERISA Affiliate has made during the preceding five years, or is required to make contributions or has any liability.

"<u>Multi-Family Property</u>": The meaning set forth in the Addendum.

"<u>Multi-Property Rental Hold Loan</u>": A Mortgage Loan as to which the related Mortgaged Property is used for residential rental purposes that (i) is evidenced by a Loan Agreement and a Mortgage Note, the forms of which have been approved by Buyer, (ii) is secured by Mortgages on two or more non-owner-occupied one- to four-family residential properties, condominiums, units in a planned unit development or a de minimis planned unit development, townhouses, Multi-Family Properties or Mixed-Use Properties, and (iii) was made to the related Mortgagor for investment purposes.

"<u>Negative Amortization</u>": The portion of interest accrued at the Mortgage Interest Rate in any month that exceeds the monthly payment on the related Mortgage Loan for such month and, pursuant to the terms of the Mortgage Note, is added to the principal balance of the Mortgage Loan.

"<u>Net Asset Value</u>": The meaning set forth in the Addendum.

"<u>No Ratio Loan</u>": A Mortgage Loan that has not been underwritten based on the related Mortgaged Property's cash flow or the underlying Mortgagor's income.

"<u>Non-Dutch Loan</u>": An Additional Draw Unfunded Loan (which shall include a Ground-Up Construction Mortgage Loan) for which, as of any date of determination, the amount of interest due and payable from the Mortgagor is calculated in reference to the related Unpaid Principal Balance of the Mortgage Loan (which, for the avoidance of doubt, shall only include any Additional Draw Amount when funded and disbursed to the Mortgagor).

"<u>Non-QM Loan</u>": A Mortgage Loan (a) for which the related loan application was made on or after January 10, 2014, and (b) does not meet the criteria specified in <u>clause (b)</u> of the definition of "QM Loan".

"<u>Non-Recourse Indebtedness</u>": With respect to any Person and any date, indebtedness of such Person as of such date for borrowed money in respect of which recourse for payment (except for customary exceptions for fraud, misapplication of funds, environmental indemnities, Insolvency Events, non-approved transfers or other events) is contractually limited to specific assets of such Person encumbered by a Lien securing such Indebtedness.

"<u>Other Taxes</u>": Any and all present or future stamp, court or documentary intangible, recording filing or similar Taxes that arise from any payment made hereunder or from the execution, delivery or enforcement of, or otherwise with respect to, any Repurchase Document, except any such Taxes that are imposed on an assignment by a jurisdiction with respect to which Buyer has a present or former connection unrelated to Buyer's participation in this transaction (other than an assignment made at the request of the applicable Seller).

"<u>P&I Advances</u>": Servicing Advances made in connection with delinquent principal and Interest Payments on an Underlying Mortgage Loan.

"<u>Parent</u>": R-Home Aggregator LLC.

"<u>Participant</u>": Defined in <u>Section 18.08(b)</u>.

"<u>Participant Register</u>": Defined in Section <u>18.08</u>.

"<u>Party</u>": Defined in the preamble.

"<u>Patriot Act</u>": The Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, as amended, modified or replaced from time to time.

"<u>PBGC</u>": The Pension Benefit Guaranty Corporation.

"<u>Permitted Liens</u>": Any of the following as to which no enforcement, collection, execution, levy or foreclosure proceeding has been commenced: (a) Liens for state, municipal, local or other local Taxes not yet due and payable, (b) Liens imposed by Requirements of Law, such as materialmen's, mechanics', carriers', workmen's, repairmen's and similar Liens, arising in the ordinary course of business securing obligations that are not overdue for more than thirty (30) days, and (c) Liens granted pursuant to or by the Repurchase Documents.

"<u>Person</u>": An individual, corporation, limited liability company, business trust, partnership, trust, unincorporated organization, joint stock company, sole proprietorship, joint venture, Governmental Authority or any other form of entity.

"<u>Plan</u>": An employee benefit plan as defined in Section 3(3) of ERISA, subject to Title IV of ERISA (other than a Multiemployer Plan) in respect of which any Seller, Servicer, Guarantor or any ERISA Affiliate thereof has any liability or, if such plan were terminated at such time, would under Section 4069 of ERISA be deemed to be, an "employer" as defined in Section 3(5) of ERISA.

"<u>Pledge Agreement</u>": That certain (i) Guaranty and Pledge Agreement, dated as of the Effective Date, entered into by Trustee W on behalf of Trust W, in favor of Buyer, and (ii) Guaranty and Pledge Agreement, dated as of the Effective Date, entered into by Trustee TRS-W on behalf of Trust TRS-W, in favor of Buyer, each in form and substance acceptable to Buyer, as may be amended, restated, supplemented or otherwise modified from time to time.

"<u>Pledged Assets</u>": The meaning set forth in the Pledge Agreement.

"<u>PMI Policy</u>": A policy of primary mortgage guaranty insurance issued by a Qualified Insurer.

"<u>Price Differential</u>": For any Pricing Period or portion thereof and (a) for any Transaction outstanding, the sum of the products, for each day during such Pricing Period or portion thereof, of (i) 1/360th of the Pricing Rate in effect for each Purchased Asset subject to such Transaction during such Pricing Period, times (ii) the Purchase Price for such Purchased Asset, or (b) for all Transactions outstanding, the sum of the amounts calculated in accordance with the preceding clause (a) for all Transactions.

"<u>Price Differential Required Amount</u>": The meaning set forth in the Addendum, which definition is incorporated by reference herein.

"<u>Pricing Margin</u>": The meaning set forth in the Addendum, which definition is incorporated by reference herein.

"<u>Pricing Period</u>": For any Purchased Asset, (a) in the case of the first Remittance Date following the first Purchase Date, the period commencing on such Purchase Date and ending on but excluding the Remittance Date occurring in the month following such Purchase Date, and (b) in the case of any subsequent Remittance Date, the one-month period commencing on and including the prior Remittance Date and ending on but excluding such Remittance Date; provided, that no Pricing Period for a Purchased Asset shall end after the Repurchase Date for such Purchased Asset.

"<u>Pricing Rate</u>": For any Pricing Period, Term SOFR for such Pricing Period plus the applicable Pricing Margin, which shall be subject to adjustment and/or conversion as provided in <u>Sections 12.01</u> and <u>12.02</u>; provided, that while an Event of Default exists, the Pricing Rate shall be the Default Rate.

"<u>Pricing Rate Reset Date</u>": (a) In the case of the first Pricing Period for any Purchased Asset other than a Future Advance Purchase, the Purchase Date for such Purchased Asset, and (b) in the case of any subsequent Pricing Period, two (2) U.S. Government Securities Business Days prior to the date on which such Pricing Period begins or on any other date as determined by Buyer and communicated to Sellers. The failure to communicate shall not impair the Buyer's decision to reset the Pricing Rate on any date.

"<u>Principal Payments</u>": For any Underlying Asset, all payments and prepayments of principal received from time to time, including insurance and condemnation proceeds and recoveries from liquidation or foreclosure.

"<u>Purchase Agreement</u>": Any purchase agreement between a Depositor and any Transferor pursuant to which such Depositor purchased or acquired a Mortgage Loan or REO Property which is subsequently included as an Underlying Asset hereunder. If a Transferor under a Purchase Agreement is an Affiliate of a Seller, such Purchase Agreement shall contain a grant of a security interest in favor of such Seller and authorize the filing of UCC financing statements against the Transferor with respect to such Mortgage Loan or REO Property.

"<u>Purchase Date</u>": As applicable, (i) for any Purchased Asset, the date on which such Purchased Asset is transferred by the related Seller to Buyer, (ii) the date on which Buyer funds a Purchase Price Increase with respect to additional Underlying Assets in accordance with this Agreement or (iii) any date on which there is a RTL Purchase Price Increase in connection with an Underlying Mortgage Loan that is a RTL Loan in accordance with the terms of this Agreement.

"<u>Purchase Price</u>": For any Purchased Asset,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) as of the Purchase Date for such Purchased Asset, that is a:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Non-QM Loan, the result of (x) the Market Value of such Underlying Asset as of such date <u>multiplied by</u> (y) the Applicable Percentage for such Underlying Asset;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Rental Hold Loan, the result of (x) the lesser of (A) the Market Value of such Underlying Asset and (B) the unpaid principal balance of such Underlying Asset, in each case, as of such date, <u>multiplied by</u> (y) the Applicable Percentage for each such Underlying Asset;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) RTL Loan, the result of (x) the unpaid principal balance of such Underlying Asset as of such date <u>multiplied by</u> (y) the Applicable Percentage for such Underlying Asset; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) as of any other date, the amount described in the preceding <u>clause (a)</u>, (i) reduced by (A) [reserved], (B) any Principal Payments or Income remitted to the Waterfall Account and which were applied to the Purchase Price of such Purchased Asset by Buyer pursuant to clause eighth of <u>Section 5.03(a)</u>, and (C) any payments made by Sellers in reduction of the outstanding Purchase Price, in each case before or as of such determination date with respect to such Purchased Asset, (ii) increased by the amount of any Purchase Price Increase transferred by Buyer to Sellers with respect to additional Underlying Assets related to such Purchased Asset in accordance with <u>Section 3.01</u> and (iii) increased resulting from any Future Advance Purchase pursuant to <u>Section 3.11</u>.

"<u>Purchase Price Decrease</u>": A decrease in the Purchase Price for any Purchased Asset equal to the amount of the Allocated Purchase Price of any Underlying Assets in connection with the release of such Underlying Assets from Transactions hereunder as a result of the sale or conveyance of such Underlying Assets by a Trustee on behalf of the related CLT, or a DST, as applicable, to a party other than Buyer or another trustee on behalf a CLT or a DST.

"<u>Purchase Price Decrease Date</u>": The date upon which Buyer and any Seller effectuate a Purchase Price Decrease.

"<u>Purchase Price Increase</u>": An increase in the Purchase Price for any Purchased Asset equal to the amount of the Allocated Purchase Price of Underlying Assets transferred by Buyer to the related Seller in connection with the acquisition of additional Underlying Assets by REO Subsidiary or a Trustee on behalf of the related CLT, or a DST, as applicable, as requested by such Seller pursuant to <u>Section 3.01</u> hereof.

"<u>Purchased Assets</u>": (a) For any Transaction, each Trust Certificate or Capital Stock sold by the related Seller to Buyer in such Transaction and not subsequently repurchased by such Seller, (b) for the Transactions in general, all Trust Certificates and Capital Stock sold by any Seller to Buyer and not subsequently repurchased by the related Seller and the Underlying Assets and (c) all of such Seller's right, title and interest in and to (i) all Records, (ii) mortgage guaranties and insurance (issued by Governmental Authorities or otherwise) and claims, payments and proceeds thereunder, including but not limited to, any payments or proceeds under any related PMI Policy and hazard insurance, (iii) insurance policies, certificates of insurance and claims, payments and proceeds thereunder, (iv) the principal balance of any such Mortgage Loans, not just the amount advanced, (v) amounts and property from time to time on deposit in the Waterfall Account and the Waterfall Account itself, (vi) collection, escrow, reserve, collateral or lock-box accounts and all amounts and property from time to time on deposit therein, to the extent of such Seller's or the holder's interest therein, (vii) all Income and rights to receive Income and all Escrow Payments and rights to receive Escrow Payments, (viii) rights of such Seller under any letter of credit, guarantee, warranty, indemnity or other credit support or enhancement, (ix) all rights to receive from any third party or to take delivery of any Records or other documents which constitute a part of the Asset Documents or Servicing File, (x) Servicing Rights and (xi) all related contracts, collateral and supporting obligations of any kind; <u>provided</u>, that (A) Purchased Assets shall not include any obligations of the related Seller or any Retained Interests, (B) Purchased Assets shall not include any Holdback Amounts or Construction Holdback Amounts and (C) for purposes of the grant of security interest by the related Seller to Buyer and the other provisions of <u>Article 11</u>, Purchased Assets shall include all of the following: general intangibles, accounts, chattel paper, deposit accounts, securities accounts, instruments, securities, financial assets, uncertificated securities, security entitlements and investment property (as such terms are defined in the UCC) and replacements, substitutions, conversions, distributions or proceeds relating to or constituting any of the items described in the preceding <u>clauses (i)</u> through <u>(xi)</u>.

"<u>QM Loan</u>": A Mortgage Loan for which (a) the related loan application was made on or after January 10, 2014, and (b) such Mortgage Loan (i) is a "qualified mortgage" within the meaning of Section 1026.43(e)(2) of 12 C.F.R. Part 1026 ("<u>Regulation Z</u>") without reference to Section 1026.43(e)(4), (5), (6) or (f) of Regulation Z, (ii) complies with the total points and fees limitations for a qualified mortgage set forth in Section 1026.43(e)(3) of Regulation Z (including the inflation adjustments provided for in Section 1026.43(e)(3)(ii) of Regulation Z), (iii) only includes a prepayment penalty permitted by Section 1026.43(g) of Regulation Z, (iv) does not provide for a balloon payment or have a term exceeding 30 years and (v) satisfies the "consider" and "verify" underwriting requirements set forth in Section 1026.43(e)(2)(v).

"<u>Qualified Insurer</u>": An insurance company duly authorized and licensed where required by law to transact insurance business and approved as an insurer by Fannie Mae or Freddie Mac.

"<u>Ramp-Up Period</u>": Any of the following periods (i) the period commencing on the initial Purchase Date and ending on the earlier of (x) one hundred eighty (180) days following the initial Purchase Date and (y) the last calendar day of the Pricing Period in which the Aggregate Purchase Price first equals one hundred million dollars ($100,000,000) and (ii) the period commencing on the date of the closing of any Securitization Transaction and ending on the date that is thirty (30) days after such date.

"<u>Records</u>": All instruments, agreements and other books, records, and reports and data generated by other media for the storage of information maintained by Sellers or any other Person with respect to a Purchased Asset or related Underlying Assets. Records shall include the Mortgage Notes, Mortgages and other Asset Documents, the Servicing Files, any servicing records, the credit files related to each Underlying Asset and any other instruments necessary to document, service or manage such Underlying Asset.

"<u>Register</u>": Defined in <u>Section 18.08</u>.

"<u>Rehab Property</u>": A Mortgaged Property related to a Construction Mortgage Loan, which is subject to renovation or other construction.

"<u>REIT</u>": A Person satisfying the conditions and limitations set forth in Section 856(b) and 856(c) of the Code which are necessary to qualify such Person as a "real estate investment trust," as defined in Section 856(a) of the Code.

"<u>Related Credit Enhancement</u>": Defined in <u>Section 11.01(d)</u>.

"<u>Release</u>": Any generation, treatment, use, storage, transportation, manufacture, refinement, handling, production, removal, remediation, disposal, presence or migration of Materials of Environmental Concern on, about, under or within all or any portion of any property or Mortgaged Property.

"<u>Relevant Governmental Body</u>": The Board of Governors of the Federal Reserve System or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Board of Governors of the Federal Reserve System or the Federal Reserve Bank of New York, or any successor thereto.

"<u>Relevant Party</u>": Any Seller Party or Guarantor, or all of them, as the context shall require.

"<u>Remedial Work</u>": Any investigation, inspection, site monitoring, containment, clean-up, removal, response, corrective action, mitigation, restoration or other remedial work of any kind or nature because of, or in connection with, the current or future presence, suspected presence, Release or threatened Release in or about the air, soil, ground water, surface water or soil vapor at, on, about, under or within all or any portion of any property or Mortgaged Property of any Materials of Environmental Concern, including any action to comply with any applicable Environmental Laws or directives of any Governmental Authority with regard to any Environmental Laws.

"<u>Remittance Date</u>": The Business Day that is two Business Days prior to each Distribution Date, or such other day as is mutually agreed to by Sellers and Buyer.

"<u>Rental Hold Loan</u>": A (i) Multi-Property Rental Hold Loan and/or (ii) a Single-Property Rental Hold Loan, as the context may require.

"<u>REO Aging</u>": With respect to any REO Property, the number of days elapsed following the related Purchase Date on which such REO Property became subject to a Transaction.

"<u>REO Deed</u>": With respect to each Underlying REO Property acquired by an REO Subsidiary, the instrument or document required by the law of the jurisdiction in which the Underlying REO Property is located to convey fee title.

"<u>REO Property</u>": Any Mortgaged Property for which a foreclosure sale, acquisition by deed in lieu of foreclosure or other comparable conversion has occurred.

"<u>REO Property Schedule</u>": With respect to any Transaction as of any date, a hard copy or electronic schedule in the form of either (a) <u>Exhibit G</u> attached hereto or (b) the Asset Tape (including the information set forth on <u>Exhibit G</u> attached hereto) relating to the Underlying REO Property.

"<u>REO Property Summary</u>": A written summary with respect to each Underlying REO Property, which shall include: (i) the date such property became an REO Property and (ii) the status of the REO Property as of the report date.

"<u>REO Subsidiary</u>": (i) R-Home REO TRS-W LLC, a Delaware limited liability company and (ii) each other wholly-owned subsidiary of a Seller which owns Underlying REO Property, all of the Capital Stock of which has been sold to Buyer pursuant to a Transaction.

"<u>REO Subsidiary Assignment Agreement</u>": An Assignment and Assumption Agreement between a Seller and an REO Subsidiary pursuant to which REO Subsidiary has acquired and shall acquire REO Property.

"<u>Reportable Event</u>": Any event set forth in Section 4043(c) of ERISA, other than an event as to which the 30-day notice period is waived.

"<u>Representation Breach</u>": Any representation, warranty, certification, statement or affirmation made or deemed made by any Relevant Party in any Repurchase Document (including those contained in <u>Schedules 1-A</u>, <u>1-B</u>, <u>1-C</u> and <u>1-D</u>, but excluding any Representation Exceptions) or in any certificate, notice, report or other document delivered pursuant to any Repurchase Document proves to be incorrect, false or misleading in any material respect when made or deemed made, without regard to any Knowledge or lack of Knowledge thereof by such Person and without regard to any qualification, representation or warranty relating to such Knowledge or lack of Knowledge.

"<u>Representation Exceptions</u>": A written list prepared by any Seller specifying, in reasonable detail, the representations and warranties (or portions thereof) set forth in this Agreement (including in <u>Schedules 1-A</u>, <u>1-B</u>, <u>1-C</u> and <u>1-D</u>) which are not satisfied with respect to an Underlying Asset or Purchased Asset, which list may be attached to the related Confirmation.

"<u>Repurchase Date</u>": As defined in the Addendum.

"<u>Repurchase Documents</u>": Collectively, this Agreement, the Custodial Agreement, the Addendum, the Guarantee Agreement, the Pledge Agreement, each Residual Pledge Agreement, all Confirmations, each Servicing Agreement, each Servicer Letter Agreement in respect of any Underlying Asset, each Trust Agreement with respect to each Underlying Trust, each Seller's Power of Attorney, the Electronic Tracking Agreement, each Account Control Agreement, each Servicer Account Control Agreement, the Genesis Intercreditor Agreement, all UCC financing statements, amendments and continuation statements filed pursuant to any other Repurchase Document, and all additional documents, certificates, agreements or instruments, the execution of which is required, necessary or incidental to or desirable for performing or carrying out any other Repurchase Document.

"<u>Repurchase Obligations</u>": All due and unpaid obligations of Sellers to pay the Repurchase Price on the Repurchase Date and all other obligations and liabilities of Sellers to Buyer arising under or in connection with the Repurchase Documents, whether now existing or hereafter arising, and all interest and fees related to the Repurchase Documents and that accrue after the commencement by or against any Seller, Guarantor or any Affiliate of Seller or Guarantor of any Insolvency Proceeding naming such Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding.

"<u>Repurchase Price</u>": For any Purchased Asset as of any date, an amount equal to the sum of (a) the outstanding Purchase Price as of such date, (b) the accrued and unpaid Price Differential for such Purchased Asset as of such date, and (c) any accrued and unpaid fees, and expenses and indemnity amounts and any other amounts owed by Sellers, Guarantor or Affiliates thereof to Buyer under this Agreement, any Repurchase Document or otherwise with respect to such Purchased Asset.

"<u>Requirements of Law</u>": With respect to any Person or property or assets of such Person and as of any date, all of the following applicable thereto as of such date: all Governing Documents and existing and future laws, statutes, rules, regulations, treaties, codes, ordinances, permits, certificates, orders and licenses of and interpretations by any Governmental Authority (including Environmental Laws, ERISA, Anti-Corruption Laws, Anti-Money Laundering Laws, Sanctions, regulations of the Board of Governors of the Federal Reserve System, and laws, rules and regulations relating to usury, licensing, truth in lending, fair credit billing, fair credit reporting, equal credit opportunity, fair debt collection practices and privacy), judgments, decrees, injunctions, writs, awards or orders of any court, arbitrator or other Governmental Authority.

"<u>Residual Pledge Agreement</u>": That certain Pledge Agreement, dated as of the Effective Date, made by Rithm Loan Aggregation Trust, in favor of Buyer, as the same may be amended, supplemented or otherwise modified from time to time.

"<u>Responsible Officer</u>": With respect to any Person, the chief executive officer, the chief financial officer, the chief accounting officer, the treasurer or the chief operating officer of such Person or such other officer designated as an authorized signatory in such Person's Governing Documents.

"<u>Retained Interest</u>": (a) With respect to any Purchased Asset and the related Underlying Assets, (i) all duties, obligations and liabilities of the related Seller thereunder, including payment and indemnity obligations, (ii) all obligations of agents, trustees, servicers, administrators or other Persons under the documentation evidencing such Purchased Asset and Underlying Assets, and (iii) if any portion of the Indebtedness related to such Purchased Asset or related Underlying Assets is owned by another lender or is being retained by such Seller, the interests, rights and obligations under such documentation to the extent they relate to such portion, and (b) with respect to any Purchased Asset or Underlying Asset with an unfunded commitment on the part of such Seller, all obligations to provide additional funding, contributions, payments or credits.

"<u>Revolving Period</u>": The period beginning on the Effective Date and ending on the earlier to occur of (i) the Facility Termination Date or (ii) the date on which an Event of Default occurs hereunder.

"<u>RTL Loan</u>": A Mortgage Loan (i) which is evidenced by a Loan Agreement and Mortgage Note, (ii) each Advance under which is secured by a Mortgage on one or more non-owner occupied Mixed-Use Property, Multi-Family Property or other Mortgaged Property, (iii) which is made to the related Mortgagor for investment purpose, (iv) which is revolving or non-revolving and (v) which is originated for the purpose of acquiring rental properties or renovating properties for sale.

"<u>RTL Purchase Price Increase</u>": An increase in the Purchase Price for a RTL Loan, resulting from an additional Advance that is made by Seller to the related Mortgagor under such Underlying Mortgage Loan to fund construction draws that results in a Future Advance Purchase.

"<u>S&P</u>": S&P Global Ratings, a division of S&P Global Inc. or, if S&P Global Ratings is no longer issuing ratings, another nationally recognized rating agency reasonably acceptable to Buyer.

"<u>Sanction</u>" or "<u>Sanctions</u>": Individually and collectively, any and all economic or financial sanctions, trade embargoes and anti-terrorism laws imposed, administered or enforced from time to time by: (a) the United States of America, including those administered by the U.S. Treasury Department's Office of Foreign Assets Control (OFAC), the U.S. State Department, the U.S. Department of Commerce, or through any existing or future Executive Order; (b) the United Nations Security Council; (c) the European Union; (d) the United Kingdom; or (e) any other governmental authorities with jurisdiction over a Seller or Guarantor or any of their Affiliates.

"<u>Sanctioned Target</u>": Any Person, group, sector, territory, or country that is the target of any Sanctions, including without limitation, any legal entity that is deemed to be the target of any Sanctions based upon the direct or indirect ownership or control of such entity by any other Sanctioned Target(s).

"<u>Securitization Transaction</u>": The issuance of securities backed directly or indirectly by residential mortgage loans in a transaction sponsored by a Person that is the Guarantor or a wholly-owned Subsidiary of Guarantor.

"<u>Seller</u>" and "<u>Sellers</u>": Defined in the preamble of this Agreement.

"<u>Seller Party</u>": Any Seller, any REO Subsidiary, any Trustee on behalf of a CLT, any DST, or any of them, as the context shall require.

"<u>Seller's Power of Attorney</u>": Defined in <u>Section 18.19</u>.

"<u>Servicer</u>": Each of Genesis, FCI and Shellpoint, acting through one or more of its Affiliates, together with its permitted successors and assigns, and any other servicer mutually agreed to by Buyer and Sellers in writing; <u>provided</u> that, for the avoidance of doubt, "<u>Servicer</u>" shall not include any Interim Servicer.

"<u>Servicer Account Control Agreement</u>": Each account control agreement entered into with respect to each Servicing Account.

"<u>Servicer Letter Agreement</u>": Each side letter agreement or servicer notice to be entered into among Buyer, Sellers, each Trustee on behalf of the related Trust, REO Subsidiary and a Servicer, in the form attached hereto as <u>Exhibit B</u> hereof or such other form that is acceptable to Buyer.

"<u>Servicer Remittance Date</u>": As defined in each Servicing Agreement.

"<u>Servicer Termination Event</u>": With respect to any Servicer, the occurrence of any of the following: (i) any event of default under the Servicing Agreement (however so defined); (ii) any material breach by such Servicer of the Servicer Letter Agreement; (iii) an Insolvency Event with respect to the Servicer; or (iv) an Event of Default.

"<u>Servicing Account</u>": An account established by the Servicer subject to an Account Control Agreement.

"<u>Servicing Advances</u>": Any advances (including existing P&I Advances, Escrow Advances, and Corporate Advances and all future Corporate Advances and Escrow Advances) by the Servicer, which advances shall be owned by the owner of the Eligible Asset, and to the extent advanced by Servicer shall be reimbursed by the owner of the Eligible Asset pursuant to the terms of the related Servicing Agreement. For the avoidance of doubt, the rights of the applicable Servicer to reimbursement are a contractual right derived solely from the related Servicing Agreement.

"<u>Servicing Agreement</u>": (i) That certain Reconstituted Servicing Agreement, dated as of November 24, 2025, by and among the Buyer, Guarantor, Sellers, Trustee W on behalf of Trust W, Trustee TRS-W on behalf of Trust W, the REO Subsidiaries and Shellpoint, as servicer, as the same may be amended from time to time, (ii) that certain Reconstituted Servicing Agreement, dated on or about November 24, 2025, by and among the Buyer, Guarantor, Sellers, Trustee W on behalf of Trust W, Trustee TRS-W on behalf of Trust TRS-W, the REO Subsidiaries and Genesis, as servicer, as the same may be amended from time to time, (iii) that certain Servicing Agreement, dated as of December 20, 2021, between Genesis, as owner, and FCI, as servicer, as the same may be amended from time to time and (iv) any other servicing agreement with a Servicer in form and substance reasonably acceptable to Buyer, as the same may be amended from time to time.

"<u>Servicing File</u>": With respect to any Underlying Asset, the file retained and maintained by the related Seller or the related Servicer including the originals or copies of all Asset Documents and other documents and agreements relating to such Underlying Asset, including to the extent applicable all servicing agreements, files, documents, records, data bases, Asset Tapes, insurance policies and certificates, appraisals, other closing documentation, payment history and other records relating to or evidencing the servicing of such Underlying Asset, which file shall be held by the related Seller and/or related Servicer for and on behalf of Buyer.

"<u>Servicing Rights</u>": All right, title and interest of any Relevant Party or any Affiliate thereof in and to any and all of the following: (a) rights to service and collect and make all decisions with respect to the Underlying Assets, (b) amounts received by the Sellers or any other Person for servicing the Underlying Assets, (c) late fees, penalties or similar payments with respect to the Underlying Assets, (d) agreements and documents creating or evidencing any such rights to service, documents, files and records relating to the servicing of the Underlying Assets, and rights of Sellers or any other Person thereunder, (e) escrow, reserve and similar amounts with respect to the Underlying Assets, (f) rights to appoint, designate and retain any other servicers, sub-servicers, special servicers, agents, custodians, trustees and liquidators with respect to the Underlying Assets, and (g) accounts and other rights to payment related to the Underlying Assets.

"<u>Shellpoint</u>": NewRez LLC.

"<u>Single-Property Rental Hold Loan</u>": A Mortgage Loan where the related Mortgaged Property is used for residential rental purposes, and which (i) is evidenced by a Loan Agreement and a Mortgage Note, the forms of which have been approved by Buyer in writing, (ii) secured by a Mortgage on a single non-owner- occupied one- to four-family residential property, condominium, unit in a planned unit development or a de minimis planned unit development, townhouse, Multi-Family Property or Mixed-Use Property, and (iii) made to the related Mortgagor for investment purposes.

"<u>SOFR</u>": With respect to any Business Day, a rate equal to the secured overnight financing rate as administered by the SOFR Administrator.

"<u>SOFR Administrator</u>": The Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate).

"<u>Solvent</u>": With respect to any Person at any time, having a state of affairs such that all of the following conditions are met at such time: (a) the fair value of the assets and property of such Person is greater than the amount of such Person's liabilities (including disputed, contingent and unliquidated liabilities) as such value is established and liabilities evaluated for purposes of Section 101(32) of the Bankruptcy Code, (b) the present fair salable value of the assets and property of such Person in an orderly liquidation of such Person is not less than the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and matured, (c) such Person is able to realize upon its assets and property and pay its debts and other liabilities (including disputed, contingent and unliquidated liabilities) as they mature in the normal course of business, (d) such Person does not intend to, and does not believe that it will, incur debts or liabilities beyond such Person's ability to pay as such debts and liabilities mature, and (e) such Person is not engaged in a business or a transaction, and is not about to engage in a business or a transaction, for which such Person's assets and property would constitute unreasonably small capital.

"<u>Structural Agreement</u>": Each of each Assignment Agreement, each Trust Agreement, each Servicing Agreement, and each other agreement entered into by any Relevant Party, in each case, to the extent related to or otherwise affecting (x) the creation, organization, governance or administration of any REO Subsidiary or any Underlying Trust, (y) the acquisition, management, liquidation or disposition of any Underlying Asset or Purchased Asset, or (z) the structure of or nature of the facility being provided to Seller hereunder and the rights of Buyer hereunder. For the avoidance of doubt, Asset Documents are not Structural Agreements.

"<u>Sub-Limit</u>": As defined in the Addendum.

"<u>Subsidiary</u>": With respect to any Person, any corporation, partnership, limited liability company or other entity of which at least a majority of the securities or other ownership interests having by the terms thereof ordinary voting power to elect a majority of the board of directors or other persons performing similar functions of such corporation, partnership or other entity (irrespective of whether or not at the time securities or other ownership interests of any other class or classes of such corporation, partnership or other entity shall have or might have voting power by reason of the happening of any contingency) is at the time directly or indirectly owned or controlled by such Person or one or more Subsidiaries of such Person or by such Person and one or more Subsidiaries of such Person.

"<u>Taxes</u>": Any present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges, imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

"<u>Term SOFR</u>": For any Pricing Period, the Term SOFR Reference Rate for a one-month tenor on the Pricing Rate Reset Date, as such rate is published by the Term SOFR Administrator; provided, however, that if as of 5:00 p.m. (New York City time) on any Pricing Rate Reset Date, the Term SOFR Reference Rate for a one month tenor has not been published by the Term SOFR Administrator and a Benchmark Replacement Date with respect to the Term SOFR Reference Rate has not occurred, then Term SOFR will be the Term SOFR Reference Rate for a one month tenor as published by the Term SOFR Administrator on the first preceding U.S. Government Securities Business Day for which such Term SOFR Reference Rate for a one month tenor was published by the Term SOFR Administrator so long as such first preceding U.S. Government Securities Business Day is not more than three (3) U.S. Government Securities Business Days prior to such Pricing Rate Reset Date; provided, that if Term SOFR determined as provided above shall ever be less than the Floor, then Term SOFR shall be deemed to be the Floor.

"<u>Term SOFR Administrator</u>": CME Group Benchmark Administration Limited (CBA) (or a successor administrator of the Term SOFR Reference Rate selected by Buyer in its reasonable discretion).

"<u>Term SOFR Reference Rate</u>": The forward-looking term rate based on SOFR.

"<u>Termination Date</u>": The later to occur of (i) the Facility Termination Date, or (ii) the date on which all Repurchase Obligations have been irrevocably satisfied in full.

"<u>Top State</u>": The state in which the highest concentration (by aggregate Purchase Price) of Mortgaged Properties, in the aggregate, related to the Purchased Assets is located.

"<u>Transaction</u>": With respect to any Purchased Asset, (i) the sale and transfer of such Purchased Asset from the related Seller to Buyer pursuant to the Repurchase Documents against the transfer of funds from Buyer to such Seller representing the Purchase Price or any additional Purchase Price for such Purchased Asset, or (ii) the funding by Buyer to the related Seller of any Purchase Price Increase in connection with the acquisition of Eligible Mortgage Loans by a Trustee on behalf of the related CLT or by a DST, as applicable, or Eligible REO Property by the REO Subsidiary.

"<u>Transaction Request</u>": Defined in <u>Section 3.01(a)</u>.

"<u>Transferor</u>": The seller of a Mortgage Loan or REO Property under a Purchase Agreement.

"<u>Trust Agreements</u>": (i) The Trust W Trust Agreement, (ii) the Trust TRS-W Trust Agreement (iii) the trust agreement of any additional CLT the trustee of which, acting on behalf of such CLT, becomes a party to the applicable Repurchase Documents from time to time after the Effective Date upon Buyer's prior written consent, and (iv) the trust agreement of any DST which becomes a party to the applicable Repurchase Documents from time to time after the Effective Date upon Buyer's prior written consent.

"<u>Trust Certificate</u>": Each beneficial interest certificate issued under the related Trust Agreement representing 100% of the Trust Interests in the related Underlying Trust.

"<u>Trust Interests</u>": Any and all of the beneficial interests, including units of trust interest designated as "securities" (as defined in Section 8-102 of the Uniform Commercial Code), in an Underlying Trust, including all its rights to participate in the operation or management of such Underlying Trust and all of the related Trustee's rights to properties, assets, trust interests and distributions on behalf of such Underlying Trust under the related Trust Agreement in respect of such trust interests. "<u>Trust Interests</u>" also include (i) all accounts receivable arising out of the related Trust Agreement; (ii) all general intangibles arising out of the related Trust Agreement; and (iii) to the extent not otherwise included, all proceeds of any and all of the foregoing (including with respect to proceeds, whether or not otherwise included therein, any and all contractual rights of, in, to and under any revenue sharing or similar agreement to receive all or any portion of the revenues or profits of the related Underlying Trust).

"<u>Trust TRS-W</u>": R-Home Pass-Through Trust TRS-W, a New York common law trust.

"<u>Trust TRS-W Trust Agreement</u>": That certain Pass-Through Trust Agreement, dated as of the Effective Date, among Guarantor, TRS-W Seller and Trustee W, as the same may be amended, supplemented or otherwise modified from time to time.

"<u>Trust W</u>": R-Home Pass-Through Trust W, a New York common law trust.

"<u>Trust W Trust Agreement</u>": That certain Pass-Through Trust Agreement, dated as of the Effective Date, among Guarantor, W Seller and Trustee W, as the same may be amended, supplemented or otherwise modified from time to time.

"<u>Trustee TRS-W</u>": U.S. Bank Trust Company, National Association, not in its individual capacity but solely as trustee of Trust TRS-W.

"<u>Trustee W</u>": U.S. Bank Trust Company, National Association, not in its individual capacity but solely as trustee of Trust W.

"<u>Trustees</u>": Collectively, Trustee W and Trustee TRS-W and any successor trustee thereof and any other trustee under a Trust Agreement which is (a) a national bank and (b) not an Affiliate of any Seller, Servicer or Guarantor.

"<u>U.S. Bank Custodial Agreement</u>": The meaning set forth in the definition of "Custodial Agreement".

"<u>U.S. Tax Compliance Certificate</u>": Defined in <u>Section 12.06</u>.

"<u>UCC</u>": The Uniform Commercial Code as in effect in the State of New York; provided, that, if, by reason of Requirements of Law, the perfection or priority of the security interest in any Purchased Asset is governed by the Uniform Commercial Code as in effect in a jurisdiction other than New York, "UCC" shall mean the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to such perfection or priority.

"<u>Unadjusted Benchmark Replacement</u>": The applicable Benchmark Replacement excluding the related Benchmark Replacement Adjustment.

"<u>Underlying Assets</u>": Collectively, Underlying Mortgage Loans and Underlying REO Property.

"<u>Underlying Mortgage Loans</u>": Any Mortgage Loan (i) as to which the bare legal title is owned or acquired by a Trustee on behalf of the related CLT or by a DST, as applicable, (ii) as to which 100% of the economic and beneficial interests in such Mortgage Loan is evidenced by the applicable Trust Certificate, and (iii) that is used to calculate the Purchase Price for the related Transaction on the related Purchase Date.

"<u>Underlying Obligor</u>": Individually and collectively, as the context may require, the Mortgagor and other obligor or obligors under a Mortgage Loan, including (i) any Person that has not signed the related Mortgage Note but owns an interest in the related Mortgaged Property, which interest has been encumbered to secure such Mortgage Loan, and (ii) any other Person who has assumed or guaranteed the obligations of such Mortgagor under the Asset Documents relating to a Mortgage Loan.

"<u>Underlying REO Property</u>": Any REO Property underlying a Purchased Asset.

"<u>Underlying Trust</u>": A New York common law trust or Delaware statutory trust, as applicable, 100% of the Trust Interests in which is represented by a Trust Certificate issued to and owned by a Seller, and sold to Buyer in a Transaction, which, as of the Effective Date, includes (i) Trust W, (ii) Trust TRS-W, (iii) any additional CLT the trustee of which, acting on behalf of such CLT, becomes a party to the applicable Repurchase Documents from time to time after the Effective Date upon Buyer's prior written consent, and (iv) any additional DST which becomes a party to the applicable Repurchase Documents from time to time after the Effective Date upon Buyer's prior written consent.

"<u>Underwriting Guidelines</u>": The standards, procedures and guidelines of Guarantor for underwriting and acquiring Mortgage Loans, which are set forth in the written policies and procedures of such Guarantor, which have previously been provided and such other guidelines as are identified and approved in writing by Buyer.

"<u>Underwriting Package</u>": All of the following with respect to each Purchased Asset, to the extent applicable and available (redacted to protect confidential information, as applicable):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all Asset Documents required to be delivered to Custodian under Section 3 of the U.S. Bank Custodial Agreement and Section 2 of the DBNTC Custodial Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all Mortgage Loan Schedules and REO Property Schedules; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all documents, instruments and agreements received in respect of the closing of the acquisition transaction under the Purchase Agreement, including, to the extent received (i) an appraisal, (ii) third-party reports and agreed-upon procedures, letters and reports (whether drafts or final forms), site inspection reports, and other due diligence materials prepared by or on behalf of or delivered to Seller, (iii) such further documents or information as Buyer may request, (iv) any and all agreements, documents, reports, or other information received or obtained in connection with the origination or acquisition of each Underlying Asset, and (v) any other material documents or reports concerning each Underlying Asset prepared or executed by any Relevant Party.

"<u>Unpaid Principal Balance</u>": As of any date of determination with respect to any (i) Dutch Loan, the Initial Principal Balance minus any principal payments received and applied on or prior to such date of determination to reduce such Initial Principal Balance and (ii) Non-Dutch Loan, the Initial Principal Balance plus any Additional Draw Amounts released to the Mortgagor as of such determination pursuant to the Servicing Agreement and the related Mortgage Loan Documents, minus any principal payments received and applied on or prior to such date of determination to reduce such principal balance.

"<u>U.S. Government Securities Business Day</u>": Any day except for (a) a Saturday, (b) a Sunday or (c) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities.

"<u>U.S. Special Resolution Regime</u>": Each of (i) the Federal Deposit Insurance Act and the regulations promulgated thereunder and (ii) Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations promulgated thereunder.

"<u>Waterfall Account</u>": The separate trust account established by Buyer and maintained pursuant to this Agreement for the benefit of Buyer, into which all Income on or in respect of the Purchased Assets and Underlying assets shall be deposited by an Interim Servicer or Servicer, as applicable. The Waterfall Account shall be established at the Account Bank with the account number to be provided by Buyer after the Effective Date.

Section 2.02 <u>Rules of Interpretation</u>. Headings are for convenience only and do not affect interpretation. The following rules of this <u>Section 2.02</u> apply unless the context requires otherwise. The singular includes the plural and conversely. A gender includes all genders. Where a word or phrase is defined, its other grammatical forms have a corresponding meaning. A reference to an Article, Section, Subsection, Paragraph, Subparagraph, Clause, Annex, Schedule, Appendix, Attachment, Rider or Exhibit is, unless otherwise specified, a reference to an Article, Section, Subsection, Paragraph, Subparagraph or Clause of, or Annex, Schedule, Appendix, Attachment, Rider or Exhibit to, this Agreement, all of which are hereby incorporated herein by this reference and made a part hereof. A reference to a party to this Agreement or another agreement or document includes the party's permitted successors, substitutes or assigns. A reference to an agreement or document is to the agreement or document as amended, modified, novated, supplemented or replaced, except to the extent prohibited by any Repurchase Document. A reference to legislation or to a provision of legislation includes a modification, codification, replacement, amendment or reenactment of it, a legislative provision substituted for it and a rule, regulation or statutory instrument issued under it. A reference to writing includes a facsimile or electronic transmission and any means of reproducing words in a tangible and permanently visible form. A reference to conduct includes an omission, statement or undertaking, whether or not in writing. A Default or Event of Default exists until it has been cured or waived in writing by Buyer. The words "hereof," "herein," "hereunder" and similar words refer to this Agreement as a whole and not to any particular provision of this Agreement, unless the context clearly requires or the language provides otherwise. The word "including" is not limiting and means "including without limitation." The word "any" is not limiting and means "any and all" unless the context clearly requires or the language provides otherwise. In the computation of periods of time from a specified date to a later specified date, the word "from" means "from and including," the words "to" and "until" each mean "to but excluding," and the word "through" means "to and including." The words "will" and "shall" have the same meaning and effect. A reference to day or days without further qualification means calendar days. A reference to any time means New York time. This Agreement may use several different limitations, tests or measurements to regulate the same or similar matters. All such limitations, tests and measurements are cumulative and shall each be performed in accordance with their respective terms. Unless the context otherwise clearly requires, all accounting terms not expressly defined herein shall be construed in accordance with GAAP, and all accounting determinations, financial computations and financial statements required hereunder shall be made in accordance with GAAP, without duplication of amounts, and on a consolidated basis with all Subsidiaries. All terms used in Articles 8 and 9 of the UCC, and used but not specifically defined herein, are used herein as defined in such Articles 8 and 9. A reference to "fiscal year" and "fiscal quarter" means the fiscal periods of the applicable Person referenced therein. A reference to an agreement includes a security interest, guarantee, agreement or legally enforceable arrangement whether or not in writing. A reference to a document includes an agreement (as so defined) in writing or a certificate, notice, instrument or document, or any information recorded in computer disk form. Whenever a Person is required to provide any document to Buyer under the Repurchase Documents, the relevant document shall be provided in writing, in printed or electronic form, unless Buyer requests otherwise. At the request of Buyer, the document shall be provided in computer disk form or both printed and computer disk form. The Repurchase Documents are the result of negotiations between the Parties, have been reviewed by counsel to Buyer and counsel to Sellers, and are the product of both Parties. No rule of construction shall apply to disadvantage one Party on the ground that such Party proposed or was involved in the preparation of any particular provision of the Repurchase Documents or the Repurchase Documents themselves. Except where otherwise expressly stated, Buyer may give or withhold, or give conditionally, approvals and consents, and may form opinions and make determinations, in its sole and absolute discretion subject in all cases to the implied covenant of good faith and fair dealing. Reference in any Repurchase Document to Buyer's discretion, shall mean, unless otherwise expressly stated herein or therein, Buyer's sole and absolute discretion, and the exercise of such discretion shall be final and conclusive. In addition, whenever Buyer has a decision or right of determination, opinion or request, exercises any right given to it to agree, disagree, accept, consent, grant waivers, take action or no action or to approve or disapprove (or any similar language or terms), or any arrangement or term is to be satisfactory or acceptable to or approved by Buyer (or any similar language or terms), the decision of Buyer with respect thereto shall be in the sole and absolute discretion of Buyer, and such decision shall be final and conclusive.

**Article 3<br> THE TRANSACTIONS**

Section 3.01 <u>Procedures</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) From time to time during the Revolving Period, but not more frequently than twice per month, any Seller may request Buyer to enter into a proposed Transaction to purchase Eligible Assets or fund a Purchase Price Increase in respect of one or more Purchased Assets by sending Buyer a notice substantially in the form of <u>Exhibit H</u> ("<u>Transaction Request</u>"), at least five (5) Business Days prior to the proposed Purchase Date, (i) describing the Transaction and each proposed Eligible Asset and related Underlying Assets to be purchased by Buyer, or in connection with a Purchase Price Increase, the related Underlying Assets proposed to be conveyed to the related Trustee on behalf of the related CLT or to the related DST, as applicable, and other security therefor in reasonable detail, (ii) transmitting a complete Underwriting Package for each proposed Eligible Asset and related Underlying Assets, and (iii) specifying which (if any) of the representations and warranties of such Seller set forth in this Agreement (including those contained in <u>Schedules 1-A</u>, <u>1-B</u>, <u>1-C</u> and <u>1-D</u>) such Seller will be unable to make with respect to such Underlying Assets or Purchased Assets. The related Seller shall promptly deliver to Buyer any supplemental materials requested at any time by Buyer. Buyer shall conduct such review of the Underwriting Package and each such Eligible Asset and Underlying Asset as Buyer determines appropriate. Buyer shall determine whether or not it is willing to purchase any or all of the proposed Eligible Assets or fund a Purchase Price Increase in respect of additional Underlying Assets pursuant to the terms and conditions hereunder. This Agreement is not a commitment by Buyer to enter into Transactions with the Sellers or to fund Purchase Price Increases but rather sets forth the procedures to be used in connection with periodic requests for Buyer to enter into Transactions with Seller and to fund Purchase Price Increases. Sellers hereby acknowledge that Buyer is under no obligation to agree to enter into, or to enter into, any Transaction pursuant to this Agreement; <u>provided</u> that each Transaction shall be committed once funded. It is expressly agreed and acknowledged that Buyer is entering into the Transactions on the basis of all such representations and warranties and on the completeness and accuracy of the information contained in the applicable Underwriting Package, and any incompleteness or inaccuracies in the related Underwriting Package will only be acceptable to Buyer if disclosed in writing to Buyer by the related Seller in advance of the related Purchase Date, and then only if Buyer opts to purchase the related Eligible Asset or fund a Purchase Price Increase in respect of additional Underlying Assets notwithstanding such incompleteness and inaccuracies. In the event of a Representation Breach regarding any representations and warranties set forth in <u>Schedule 1-A</u>, <u>1-B</u>, <u>1-C</u> or <u>1-D</u> related to any Underlying Asset or Purchased Asset, or any Underlying Asset is no longer an Eligible Mortgage Loan or Eligible REO Property, as applicable, the Market Value of such Underlying Asset or Purchased Asset may be reduced to zero at Buyer's sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Buyer shall give the related Seller notice of the date when Buyer has received a complete Underwriting Package and supplemental materials. Buyer shall endeavor to communicate in writing to the related Seller a preliminary non-binding determination of whether or not it is willing to purchase any or all of such Eligible Assets or fund any Purchase Price Increase within four (4) Business Days after such date, and if its preliminary determination is favorable, by what date Buyer expects to communicate to such Seller a final non-binding indication of its determination. If Buyer has not communicated in writing, its final non-binding indication to the related Seller by such date, Buyer shall automatically and without further action be deemed to have determined not to purchase any such Eligible Asset or fund such Purchase Price Increase.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If Buyer communicates to the related Seller a final non-binding determination that it is willing to purchase any or all of such Eligible Assets or fund any Purchase Price Increase, such Seller shall deliver to Buyer an executed preliminary Confirmation for such Transaction, describing each such Eligible Asset and Underlying Asset and the proposed Purchase Date, Market Value (as provided by Buyer), Applicable Percentage, Purchase Price and such other terms and conditions as Buyer may require and agreed to by such Seller. If Buyer requires changes to the preliminary Confirmation, the related Seller shall make such changes and re-execute the preliminary Confirmation. If Buyer determines to enter into the Transaction on the terms described in the preliminary Confirmation, Buyer shall promptly execute and return the same to the related Seller, which shall thereupon become effective as the Confirmation of the Transaction. Buyer's approval of the purchase of an Eligible Asset or funding of a Purchase Price Increase on such terms and conditions consistent herewith shall be evidenced only by its execution and delivery of the related Confirmation. For the avoidance of doubt, Buyer shall not (i) be bound by any preliminary or final non-binding determination referred to above, or (ii) be obligated to purchase an Eligible Assets or fund any Purchase Price Increase notwithstanding a Confirmation executed by the Parties unless and until all applicable conditions precedent in Article 6 have been satisfied or waived by Buyer. For the avoidance of doubt, once (A) Buyer has executed a Confirmation and delivered the Confirmation to the related Seller, (B) Buyer has funded the Transaction, (C) the related Seller has fully funded its portion of the Purchase Price, to the extent applicable, and (D) the Purchased Asset, Underlying Assets and related Asset Documents have been delivered in accordance with the provisions of this Agreement and the Custodial Agreement, then such Confirmation shall evidence (i) Buyer's approval of the Purchased Assets and related Underlying Assets on the related Purchase Date and each Underlying Asset shall remain an Eligible Mortgage Loan or Eligible REO Property unless and until Buyer determines that such Underlying Asset does not satisfy the requirements of an Eligible Mortgage Loan (other than <u>clause (c)(vi)</u> of the definition of Eligible Mortgage Loan) or an Eligible REO Property (other than <u>clause (c)(ii)</u> of the definition of Eligible REO Property) and (ii) Buyer's written agreement to be bound by the provisions of such Confirmation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each Confirmation, together with this Agreement, shall be conclusive evidence of the terms of the Transaction covered thereby, and shall be construed to be cumulative to the extent possible. If terms in a Confirmation are inconsistent with terms in this Agreement with respect to a particular Transaction, the Confirmation shall prevail. Whenever the Applicable Percentage or any other term of a Transaction (other than the Pricing Rate, Market Value and outstanding Purchase Price) with respect to a Purchased Asset or an Underlying Asset is revised or adjusted in accordance with this Agreement, an amended and restated Confirmation reflecting such revision or adjustment and that is otherwise acceptable to the Parties shall be prepared by the related Seller and executed by the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The fact that Buyer has conducted or has failed to conduct any partial or complete examination or any other due diligence review of any Purchased Asset or Underlying Asset shall in no way affect any rights Buyer may have under the Repurchase Documents or otherwise with respect to any representations or warranties or other rights or remedies thereunder or otherwise, including the right to determine at any time that such Purchased Asset is not an Eligible Asset or such Underlying Asset is not an Eligible Mortgage Loan or Eligible REO Property, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) No Transaction shall be entered into if (i) any Default or Event of Default exists or would exist as a result of such Transaction, (ii) the Repurchase Date for the Purchased Assets subject to such Transaction would be later than the Facility Termination Date, or (iii) after giving effect to such Transaction, the Aggregate Purchase Price then outstanding would exceed the Maximum Aggregate Purchase Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Each Trust Certificate purchased by Buyer hereunder shall, as of any date, (i) represent 100% of the then current Trust Interests in the related Underlying Trust and (ii) for all intents and purposes hereunder, represent Buyer's indirect ownership (other than for tax purposes) of 100% of all the related Underlying Assets. All Capital Stock of an REO Subsidiary purchased by Buyer hereunder shall, as of any date, (i) represent 100% of the Equity Interests of such REO Subsidiary and (ii) for all intents and purposes hereunder, represent Buyer's indirect beneficial ownership of 100% of all the related Underlying Assets. For the sake of clarity, the Purchase Price for any Purchased Asset as of any Purchase Date shall be calculated with respect to the related Underlying Assets that are then owned by a Trustee on behalf of the related CLT, a DST or an REO Subsidiary, as applicable, as of such Purchase Date. Similarly, the calculation of Market Value, Price Differential, Repurchase Price or any other valuations of all or a portion of the Purchased Assets shall be with respect to the related Underlying Assets, the beneficial ownership interests in which are then allocated to a Trustee on behalf of the related CLT, a DST or an REO Subsidiary as the context may require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) A Seller may, at any time by sending a Transaction Request (which shall designate the Underlying Asset to be released from a Transaction hereunder) to Buyer at least one (1) Business Day prior to the requested Purchase Price Decrease Date, request a Purchase Price Decrease and obtain the release of the related Underlying Asset. Such Seller shall remit or cause to be remitted to Buyer the Allocated Purchase Price in connection with such Purchase Price Decrease in accordance with Buyer's wire instructions not later than 3:00 p.m. on the Purchase Price Decrease Date. Buyer shall apply such Allocated Purchase Price to reduce the Aggregate Purchase Price. In addition, Buyer shall be deemed to have simultaneously released its security interest in such Underlying Asset, shall permit the related Seller to remove such Underlying Asset from an Underlying Trust or REO Subsidiary, and shall authorize the Custodian to release to such Seller the Asset Documents for such Underlying Asset and, to the extent any UCC financing statement filed against such Seller specifically identifies such Underlying Asset, Buyer shall promptly deliver an amendment thereto or termination thereof evidencing the release of such Underlying Asset from Buyer's security interest therein. Notwithstanding any provision to the contrary contained elsewhere in any Repurchase Document, at any time during the existence of an uncured Default or Event of Default, the related Seller may not effect a Purchase Price Decrease with respect to any Underlying Asset without Buyer's written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) On each Purchase Date, (i) the related Seller shall, with respect to Eligible Assets that will be delivered or held in definitive, certificated form, deliver to Buyer the original of the relevant certificate with respect to the related Eligible Assets registered in the name of Buyer, and (ii) with respect to Eligible Assets that will be delivered or held in uncertificated form and the ownership of which is registered on books maintained by the issuer thereof or its transfer agent, such Seller shall cause the registration of such security or other item of investment property in the name of Buyer and, at the request of Buyer, shall take such other and further steps, and shall execute and deliver such documents or instruments necessary in the opinion of Buyer, to effect and perfect a legally valid delivery of the relevant interest granted therein to Buyer hereunder; <u>provided that</u> any security interest in the Related Credit Enhancement shall be perfected only to the extent a security interest therein can be perfected by the filing of a UCC financing statement or by possession, as applicable. Unless otherwise instructed by Buyer, any delivery of a security or other item of investment property in definitive, certificated form shall be made to Buyer in accordance with Buyer's instructions. Any delivery of a Purchased Asset in accordance with this subsection, or any other method acceptable to Buyer, shall be effected in a manner sufficient to cause Buyer to be the "entitlement holder" (as defined in Section 8-102(a)(7) of the UCC) with respect to the Purchased Assets and, if the Transaction is recharacterized as a secured financing, to have a perfected first priority security interest therein. No Purchased Assets, whether certificated or uncertificated, shall (i) remain in the possession of the related Seller, or (ii) remain in the name of the related Seller or any of its respective agents, or in any account in the name of such Seller or any of its respective agents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Buyer shall be entitled to exercise any and all voting and corporate rights with respect to the Purchased Assets, including without limitation the right to direct any Trustee, relating to any Purchased Asset. Notwithstanding the foregoing clause, Buyer hereby grants the related Seller a revocable license to (i) direct any Trustee relating to any Purchased Asset, and (ii) vote on any matter, subject however to the terms and conditions of this Agreement, and (iii) with respect to any Capital Stock, to cause the related REO Subsidiary to direct the related Servicer under the related Servicing Agreement; <u>provided</u>, <u>however</u>, that no vote shall be cast or right exercised or other action taken that would, as determined by Buyer, impair, reduce the value of or otherwise adversely affect the Purchased Assets or that would be inconsistent with or result in any violation of any provision of this Agreement or any other Repurchase Document or the Guarantee Agreement; provided, further, that such license shall be automatically revoked upon the occurrence and continuance of any Default or Event of Default hereunder. Without the prior consent of Buyer, the related Seller shall not (i) vote to enable, or take any other action to permit any related Underlying Trust or REO Subsidiary to issue any equity interests of any nature or to issue any other equity interests convertible into or granting the right to purchase or exchange for any equity interests of such Underlying Trust or REO Subsidiary, or (ii) sell, assign, transfer, exchange or otherwise dispose of, or grant any option with respect to, a Trust Certificate or Capital Stock, or (iii) create, incur or permit to exist any Lien or option in favor of, or any claim of any Person with respect to, Trust Certificates or Capital Stock or any interest therein, except for the Lien provided for by this Agreement, or (iv) enter into any agreement (other than this Agreement) or undertaking restricting the right or ability of such Seller to sell, pledge, assign or transfer any Trust Certificate or Capital Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Each Seller hereby agrees to pay all reasonable costs and expenses incurred by any party (including reasonable and documented out-of-pocket attorney's fees and expenses) in connection with any registration of a Purchased Asset in the name of Buyer and any ultimate re-registration of a Purchased Asset in the name of such Seller, if applicable.

Section 3.02 <u>Transfer of Purchased Assets; Servicing Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On the Purchase Date for each Purchased Asset or Underlying Asset, and subject to the satisfaction of all applicable conditions precedent in Article 6, (a) ownership of and title to such Purchased Asset shall be transferred to and vest in Buyer or its designee (other than for tax purposes) against the simultaneous transfer of the Purchase Price to the account of the related Seller specified in <u>Schedule 2</u> (or if not specified therein, in the related Confirmation or as directed by Seller), and (b) the related Seller hereby sells, transfers, conveys and assigns to Buyer on a servicing-released basis all of such Seller's right, title and interest (but no Retained Interests) in and to the related Purchased Assets (other than for tax purposes), together with all Servicing Rights in respect of related Underlying Assets. Subject to this Agreement, during the Revolving Period, the related Seller may sell to Buyer, repurchase from Buyer and re-sell Eligible Assets to Buyer, but may not substitute other Eligible Assets for Purchased Assets. Subject to the Servicing Agreements, Buyer has the right to designate the servicer and sub-servicer of the Underlying Assets in accordance with the terms of this Agreement; the Servicing Rights and other servicing provisions under this Agreement are not severable from or to be separated from the Underlying Assets under this Agreement and, such Servicing Rights and other servicing provisions of this Agreement constitute (a) "related terms" under this Agreement within the meaning of Section 101(47)(A)(i) of the Bankruptcy Code and/or (b) a security agreement or other arrangement or other credit enhancement related to the Repurchase Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon the transfer of any Purchased Asset to Buyer as set forth herein and until termination of any related Transactions as set forth herein, ownership of the Trust Interests or Capital Stock, as applicable, related to such Purchased Asset and held by the related Seller shall be vested in Buyer (other than for tax purposes); provided that Buyer shall only be deemed to have all rights of such Seller (and none of the obligations of such Seller) thereunder. It is a condition precedent of each Transaction that the Trust Certificate or Capital Stock, as applicable, for each Underlying Trust and REO Subsidiary be re-registered in Buyer's name. It is the intent of the parties that the transfers of the Trust Certificates and Capital Stock to Buyer provided for hereby shall be deemed to be "assignments" of the Trust Interests and Capital Stock and that such assignment be governed by and treated accordingly as such under the terms of the related Trust Agreements and REO Subsidiary Governing Documents.

Section 3.03 <u>Transfers of Underlying Assets to the REO Subsidiary</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) From time to time, the related Seller will direct the Trustee for the related Underlying Trust to transfer an Underlying Mortgage Loan or an Underlying REO Property from the Trustee on behalf of the related CLT or from a DST, as applicable to an REO Subsidiary, which transfer will be effected by an Assignment Agreement. Seller shall furnish a copy of each such Assignment Agreement to Buyer within five (5) Business Days of any such transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the extent that an Underlying Mortgage Loan or an Underlying REO Property related to a Purchased Asset is transferred to an REO Subsidiary in accordance with clause (a) above, a Purchase Price Increase in respect of the related Capital Stock shall be deemed to occur automatically at such time as the applicable Seller delivers the Assignment Agreement to the related Trustee transferring and assigning such Underlying Mortgage Loan or Underlying REO Property by such Trustee on behalf of the related CLT or by a DST, as applicable, to such REO Subsidiary. Each such Purchase Price Increase shall be offset against the Purchase Price for the Purchased Asset related to such Underlying Mortgage Loan or Underlying REO Property, which shall be deemed reduced by the Purchase Price Increase for such Underlying Mortgage Loan or Underlying REO Property; provided, however, a Transaction Request or Confirmation shall not be required for any such deemed Purchase Price Increase to occur. The related REO Subsidiary shall cause each Underlying REO Property to be beneficially owned in fee simple by an REO Subsidiary, the related REO Deed, when issued, to be executed in the name of such REO Subsidiary or a nominee thereof. Each such REO Deed shall be duly executed, be in recordable form in accordance with applicable law and, shall have be recorded in or delivered for recordation to the recordation office of the jurisdiction in which the Underlying REO Property is located. To the extent that the file-stamped REO Deed is in the possession or control of the REO Subsidiary, upon request from Buyer, Sellers shall cause a copy of such file-stamped REO Deed to be delivered to Buyer. Buyer acknowledges and agrees that there shall be no deadline by which the related recordation office shall be required to deliver a file-stamped REO Deed to the applicable REO Subsidiary, and that Seller shall have no obligation to cause such REO Subsidiary to deliver such copy of the file-stamped REO Deed to Buyer, upon Buyer's request, until such time as it is received by such REO Subsidiary. Each copy of an REO Deed delivered to Buyer or its designee as part of the Asset Documents (including intervening deeds) shall be a true, correct and complete copy of the original REO Deed, and if recorded in the name of such REO Subsidiary or a nominee thereof, the original REO Deed shall be in recordable form, acceptable in all respects for recording under the laws of the jurisdiction in which the Underlying REO Property is located and shall have been delivered for recordation to the appropriate recording office. Each title commitment, "date-down" or trustee's sale guarantee delivered to Buyer or its designee as part of the Asset Documents shall be a true, correct and complete copy of the original document. For the avoidance of doubt, receipt by Buyer of an REO Deed or a certified copy thereof shall not be a condition precedent to the funding of a Purchase Price Increase.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All costs and expenses in connection with the preparation, execution, delivery and filing or recording of any REO Deed, and any filing, transfer or recording tax or other charges with respect thereto shall be borne by Sellers and the related REO Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Upon transfer of an Underlying REO Property to an REO Subsidiary, Seller shall be deemed to make the representations and warranties hereto with respect to such Underlying REO Property as set forth on <u>Schedule 1-B</u> attached hereto.

Section 3.04 <u>Maximum Aggregate Purchase Price</u>. The Aggregate Purchase Price for all Purchased Assets as of any date shall not exceed the Maximum Aggregate Purchase Price. If the Aggregate Purchase Price exceeds the Maximum Aggregate Purchase Price, Sellers shall promptly pay to Buyer an amount necessary to reduce the Aggregate Purchase Price to an amount equal to or less than the Maximum Aggregate Purchase Price.

Section 3.05 <u>Early Repurchase Date; Mandatory Repurchases</u>. Any Seller may terminate any Transaction with respect to any or all Purchased Assets or Underlying Assets and repurchase such Purchased Assets or Underlying Assets on any date prior to the Repurchase Date (an "<u>Early Repurchase Date</u>"); <u>provided</u>, that (a) such Seller irrevocably notifies Buyer at least five (5) Business Days before the proposed Early Repurchase Date identifying the Purchased Asset(s) or Underlying Asset(s) to be repurchased and the Repurchase Price thereof, (b) such Seller delivers a certificate from a Responsible Officer of such Seller in form and substance satisfactory to Buyer certifying that no Default or Event of Default exists or would exist as a result of such repurchase, (c) if the Early Repurchase Date is not a Remittance Date, such Seller pays to Buyer any amount due under <u>Section 12.03</u>, and (d) such Seller thereafter complies with <u>Section 3.06</u>.

In addition to other rights and remedies of Buyer under any Repurchase Document, each Seller shall promptly repurchase (i) any Purchased Asset that no longer qualifies as an Eligible Asset and any Underlying Asset that no longer qualifies as an Eligible Mortgage Loan or Eligible REO Property, in each case as determined by Buyer, and (ii) any Purchased Asset or Underlying Asset the Market Value of which is determined by Buyer to be zero.

Section 3.06 <u>Repurchase</u>. On the Repurchase Date for each Purchased Asset, the related Seller shall transfer to Buyer the Repurchase Price for such Purchased Asset as of the Repurchase Date, and, so long as no Default or Event of Default has occurred and is continuing, Buyer shall transfer to such Seller such Purchased Asset, whereupon the Transaction with respect to such Purchased Asset or Underlying Asset shall terminate. So long as no Default or Event of Default has occurred and is continuing, Buyer shall be deemed to have simultaneously released its security interest in such Purchased Asset and the related Underlying Assets, shall authorize Custodian to release to the related Seller the related Asset Documents and, to the extent any UCC financing statement filed against such Seller specifically identifies such Purchased Asset or Underlying Assets, upon such Seller's request Buyer shall deliver an amendment thereto or termination thereof evidencing the release of such Purchased Asset and Underlying Assets from Buyer's security interest therein. Any such transfer or release shall be without recourse to Buyer and without representation or warranty by Buyer, except that Buyer shall represent to the related Seller, to the extent that good title was transferred and assigned by such Seller to Buyer hereunder on the related Purchase Date, that Buyer is the sole owner of such Purchased Asset, free and clear of any other interests or Liens caused by Buyer's actions. Any Income with respect to such Purchased Asset received by Buyer or Account Bank after payment of the Repurchase Price therefor shall be remitted to the related Seller. Notwithstanding the foregoing, on or before the Facility Termination Date, Sellers shall repurchase all Purchased Assets by paying to Buyer the outstanding Repurchase Price therefor and all other outstanding Repurchase Obligations.

Section 3.07 <u>Payment of Price Differential and Fees</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding that Buyer and Sellers intend that the Transactions hereunder be sales to Buyer of the Purchased Assets for all but U.S. federal and relevant state and local income and franchise tax purposes, Sellers shall pay to Buyer the accrued value of the Price Differential for each Purchased Asset on each Distribution Date. Buyer shall give Sellers notice of the Price Differential and any fees and other amounts due under the Repurchase Documents on or prior to each Remittance Date; provided, that Buyer's failure to deliver such notice shall not affect Sellers' obligation to pay such amounts. If the Price Differential includes any estimated Price Differential, Buyer shall recalculate such Price Differential after the Distribution Date and, if necessary, make adjustments to the Price Differential amount due on the following Distribution Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If Sellers fail to pay all or part of the Price Differential by 5:00 p.m. (New York City time) on the related Distribution Date, with respect to any Purchased Asset, Sellers shall be obligated to pay to Buyer (in addition to, and together with, the amount of such Price Differential) interest on the unpaid Repurchase Price at a rate per annum equal to the Pricing Rate until the Price Differential is received in full by Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Sellers shall pay to Buyer all fees and other amounts as and when due as set forth in this Agreement and the Addendum, which shall be due, earned and payable in full (without reduction, set-off or refund in the event of any early termination of this Agreement) by Sellers on the Effective Date.

Section 3.08 <u>Payment, Transfer and Custody</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless otherwise expressly provided herein, all amounts required to be paid or deposited by Sellers, Guarantor or any other Person under the Repurchase Documents shall be paid or deposited in accordance with the terms hereof no later than 5:00 p.m. (New York City time) on the day when due, in immediately available Dollars and without deduction, setoff or counterclaim, and if not received before such time shall be deemed to be received on the next Business Day. Whenever any payment under the Repurchase Documents shall be stated to be due on a day other than a Business Day, such payment shall be made on the next following Business Day, and such extension of time shall in such case be included in the computation of such payment. Sellers shall, to the extent permitted by Requirements of Law, pay to Buyer interest in connection with any amounts not paid when due under the Repurchase Documents, which interest shall be calculated at a rate equal to the Default Rate, until all such amounts are received in full by Buyer. Amounts payable to Buyer and not otherwise required to be deposited into the Waterfall Account shall be deposited into an account of Buyer. Sellers shall have no rights in, rights of withdrawal from, or rights to give notices or instructions regarding Buyer's account or the Waterfall Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any Asset Documents not delivered to Buyer or Custodian are and shall be held in trust by the related Seller or its agent for the benefit of Buyer as the beneficial owner thereof. The related Seller or its agent shall maintain a copy of the Asset Documents and the originals of the Asset Documents not delivered to Buyer or Custodian. The possession of Asset Documents by the related Seller or its agent is in a custodial capacity only at the will of Buyer for the sole purpose of assisting the related Servicer with its duties under the related Servicing Agreement. Each Asset Document retained or held by the related Seller or its agent shall be segregated on the related Seller's books and records from the other assets of such Seller or its agent, and the books and records of such Seller or its agent shall be marked to reflect clearly the sale of the related Purchased Asset, including the Underlying Assets, to Buyer on a servicing-released basis. The related Seller or its related agent shall release its custody of the Asset Documents only in accordance with written instructions from Buyer, unless such release required as incidental to the servicing of the Underlying Assets by the related Servicer is in connection with a repurchase of any Purchased Asset or the release of an Underlying Asset from a Transaction hereunder by such Seller in accordance with this Agreement and the Custodial Agreement.

Section 3.09 <u>Repurchase Obligations Absolute</u>. All amounts payable by the Sellers under the Repurchase Documents shall be paid without notice, demand, counterclaim, setoff, deduction or defense (as to any Person and for any reason whatsoever) and without abatement, suspension, deferment, diminution or reduction (as to any Person and for any reason whatsoever), and the Repurchase Obligations shall not be released, discharged or otherwise affected, except as expressly provided herein, by reason of: (a) any damage to, destruction of, taking of, restriction or prevention of the use of, interference with the use of, title defect in, encumbrance on or eviction from, any Underlying Asset or related Mortgaged Property, (b) any Insolvency Proceeding relating to any Seller or any Underlying Obligor, or any action taken with respect to any Repurchase Document or Asset Document by any trustee or receiver of any Seller or any Underlying Obligor or by any court in any such proceeding, (c) any claim that any Seller has or might have against Buyer under any Repurchase Document or otherwise, (d) any default or failure on the part of Buyer to perform or comply with any Repurchase Document or other agreement with any Seller, (e) the invalidity or unenforceability of any Purchased Asset or Underlying Asset, Repurchase Document or Asset Document, or (f) any other occurrence whatsoever, whether or not similar to any of the foregoing, and whether or not Seller has notice or Knowledge of any of the foregoing. The Repurchase Obligations shall be full recourse to the Sellers and the Sellers shall be jointly and severally liable for all of the Repurchase Obligations, regardless of whether such amounts relate to any individual Seller. This <u>Section 3.09</u> shall survive the termination of the Repurchase Documents and the payment in full of the Repurchase Obligations.

Section 3.10 <u>Term SOFR Conforming Changes</u>. In connection with the use or administration of Term SOFR, Buyer will have the right to make Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Repurchase Document, any amendments implementing such Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Repurchase Document. Buyer will promptly notify Sellers of the effectiveness of any Conforming Changes in connection with the use or administration of Term SOFR.

Section 3.11 <u>Future Advance Purchases</u>. From time to time during the term of this Agreement, in the event that a future advance is to be made by the Seller pursuant to the Mortgage Loan Documents with respect to a Future Advance Loan, Seller may submit to Buyer a request that Buyer transfer cash to Seller in an amount not to exceed the Applicable Percentage, multiplied by the amount of such future advance (a "<u>Future Advance Purchase</u>"), which Future Advance Purchase shall increase the outstanding Purchase Price for such Future Advance Loan. In connection with funding such Future Advance Purchase, Buyer may, in its sole discretion, subject to satisfaction of the below conditions, transfer cash to Seller as provided in this <u>Section 3.11</u> (and in accordance with the wire instructions provided by Seller in such request) on the date requested by Seller, which date shall be no earlier than two (2) Business Days following the Business Day on which the following conditions precedent have been satisfied (or, in Buyer's sole discretion, waived). It shall be a condition to any such Future Advance Purchase that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the related Underlying Asset is an Eligible Mortgage Loan as of such date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no Default or Event of Default has occurred and is continuing or will result from the funding of such Future Advance Purchase;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) no circumstance shall exist or event have occurred resulting in a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the funding of the Future Advance Purchase will not cause the aggregate outstanding Purchase Price for all Underlying Mortgage Loans to exceed the Maximum Aggregate Purchase Price;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Future Advance Purchase will not cause the Purchase Price of the applicable Future Advance Loan to exceed any relevant Sublimit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Buyer shall have received, in its reasonable discretion, sufficient evidence from Seller (unless waived in writing by Buyer) of (i) of the related Mortgagor's right to receive such funds pursuant to the terms of the related Mortgage Loan Documents which evidence may include, but is not limited to, (1) inspection form along with photographs of the work that has been completed, and (2) an estimated "cost to complete" schedule with respect to the project completion, and (ii) that sufficient construction has been completed to warrant the future advance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the Seller shall have demonstrated to Buyer's reasonable satisfaction that all conditions to the future advance under the applicable Mortgage Loan Documents have been satisfied or waived; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) prior to or simultaneously with Buyer's funding of the Future Advance Purchase, the Seller shall have funded or caused to be funded to the Mortgagor (or to an escrow agent or as otherwise directed by the Mortgagor) the amount of such Future Advance Purchase in respect of such Future Advance Loan.

**Article 4<br> RESERVED**

**Article 5<br> APPLICATION OF INCOME**

Section 5.01 <u>Accounts</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Reserved</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Servicing Accounts</u>. Each Servicing Account shall be established and maintained by the related Servicer. Each Servicer shall remit all amounts on deposit in its Servicing Account in respect of the Underlying Assets to the Waterfall Account on a monthly basis on the Servicer Remittance Date, in accordance with the related Servicer Letter Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Waterfall Account</u>. The Waterfall Account shall be established at the Account Bank. Buyer shall have sole dominion and control (including "control" within the meaning of Section 9-104(a) of the UCC) over the Waterfall Account. Neither Sellers nor any Person claiming through or under Sellers shall have any claim to or interest in the Waterfall Account. All Income received by Sellers, any Servicer, any Trustee on behalf of the related CLT, any DST, Buyer or Account Bank in respect of the Purchased Assets and Underlying Assets shall be deposited by such Person into the Waterfall Account in accordance with the related Servicer Letter Agreement and shall be property of Buyer and applied to and remitted by Account Bank in accordance with this <u>Article 5</u>.

Section 5.02 <u>Reserved</u>.

Section 5.03 <u>Before an Event of Default</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On each Distribution Date, if no Event of Default exists, Buyer shall direct Account Bank to apply all Income on deposit in the Waterfall Account as of the immediately preceding Remittance Date in the following order of priority:

*<u>first</u>*, to pay to each Trustee, any fees, expenses and indemnities, in each case, then due and owing with respect to the Underlying Assets and pursuant to the express terms of the applicable Trust Agreement, to the extent such amounts are unpaid pursuant to the applicable Trust Agreement; provided that Buyer shall have received an itemized invoice for such amounts; provided, further that the aggregate expenses and indemnities payable pursuant to this <u>clause first</u> in respect of the Trustees, collectively, shall not exceed $500,000.00 for any Anniversary Year (the "<u>Expense/Indemnity Cap</u>");

*<u>second</u>*, to the Servicer for fees and reimbursement of advances then due and owing with respect to the Underlying Assets made pursuant to and in accordance with the Servicing Agreement to the extent not already retained by the Servicer;

*<u>third</u>*, to pay to Buyer amounts equal to all default interest, late fees, fees, expenses and Indemnified Amounts then due and payable from any Seller to Buyer under the Repurchase Documents;

*<u>fourth</u>*, to deposit any amounts necessary to maintain the Price Differential Required Amount;

*<u>fifth</u>*, to pay to Buyer amounts equal to the Price Differential accrued with respect to all Purchased Assets as of such Distribution Date;

*<u>sixth</u>*, to pay to Buyer amounts equal to any Repurchase Price due and payable to Buyer;

*<u>seventh</u>*; to pay any expenses and indemnity amounts due and owing to any Trustee under any Trust Agreement still outstanding due to the application of the Expense/Indemnity Cap; and

*<u>eighth</u>*, any remaining amounts to the related Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On the Facility Termination Date, all Income net of those proceeds used to pay the Price Differential, shall be paid to Buyer to reduce the Aggregate Purchase Price to zero and any remainder shall be remitted to Sellers.

Section 5.04 <u>After Event of Default</u>. If an Event of Default exists, all Income with respect to the Purchased Assets in respect of Underlying Assets shall be deposited into the Waterfall Account. All Income deposited into the Waterfall Account in respect of the Purchased Assets and Underlying Assets shall be applied by Account Bank, on the Business Day next following the Business Day on which each amount of Income is so deposited, in the following order of priority:

*<u>first</u>*, to pay to Buyer an amount equal to the Price Differential accrued with respect to all Purchased Assets as of such date;

*<u>second</u>*, to pay to Buyer an amount equal to all default interest, late fees, fees, expenses and Indemnified Amounts then due and payable from any Seller and other applicable Persons to Buyer under the Repurchase Documents;

*<u>third</u>*, to pay to Buyer an amount equal to the Aggregate Purchase Price (to be applied in such order and in such amounts as determined by Buyer, until such Aggregate Purchase Price has been reduced to zero);

*<u>fourth</u>*, to pay to Buyer all other Repurchase Obligations due to Buyer;

*<u>fifth</u>*; to pay any fees, expenses and indemnity amounts (without regard to the Expense/Indemnity Cap) due and owing to any Trustee under any Trust Agreement; and

*<u>sixth</u>*, to pay any remaining amounts to the related Seller.

Section 5.05 <u>Sellers to Remain Liable</u>. If the amounts remitted to Buyer as provided in <u>Sections 5.03</u> and <u>5.04</u> are insufficient to pay all amounts due and payable from Sellers to Buyer under this Agreement or any Repurchase Document on a Remittance Date, a Repurchase Date, upon the occurrence of an Event of Default or otherwise, Sellers shall nevertheless remain jointly and severally liable for and shall pay to Buyer when due all such amounts.

Section 5.06 <u>Update of the Purchase Price</u>. Buyer shall provide an update of the outstanding Allocated Purchase Price for each Underlying Asset upon request by any Seller, which request may be made no more frequently than once each calendar month.

**Article 6<br> CONDITIONS PRECEDENT**

Section 6.01 <u>Conditions Precedent to Effective Date</u>. Buyer shall not be obligated to enter into any Transaction for the purchase of any Eligible Asset or funding of any Purchase Price Increase until the following conditions have been satisfied, or waived by Buyer, on and as of the Effective Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Buyer has received the following documents, each dated the Effective Date or as of the Effective Date unless otherwise specified: (i) each Repurchase Document duly executed and delivered by the parties thereto, (ii) an official good standing certificate dated a recent date with respect to each Relevant Party, (iii) certificates of the secretary or an assistant secretary of each Relevant Party and Trustees together with copies of the Governing Documents and applicable resolutions and the incumbencies and signatures of officers of the Relevant Parties and Trustees executing the Repurchase Documents to which it is a party, evidencing the respective authority of the Relevant Parties and Trustees with respect to the execution, delivery and performance thereof, (iv) a Closing Certificate, (v) an executed Seller's Power of Attorney in the form of <u>Exhibit I</u> for each Seller and REO Subsidiary and an executed Trustee on behalf of the related CLT's Power of Attorney in the form of Exhibit A attached to the Pledge Agreement for each Trustee, (vi) such opinions from counsel to Sellers, each Servicer, Guarantor and Trustee as Buyer may require, including with respect to (A) corporate matters, (B) enforceability, (C) non-contravention, no consents or approvals required other than those that have been obtained, (D) perfected security interests in the Purchased Assets, the Accounts and any other collateral pledged pursuant to the Repurchase Documents; <u>provided that</u> any security interest in the Related Credit Enhancement shall be perfected only to the extent a security interest therein can be perfected by the filing of a UCC financing statement or by possession, as applicable, (E) Investment Company Act matters (including Volcker Rule compliance), and (F) the applicability of Bankruptcy Code and "securities contract" and "master netting agreement" safe harbors to this Agreement and the Guarantee Agreement, and (vii) all other documents, certificates, information, financial statements, reports, approvals and opinions of counsel as it may reasonably require;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) UCC financing statements have been filed against each Seller, each Trustee on behalf of the related CLT, each DST and the REO Subsidiary in all filing offices required by Buyer, (ii) Buyer has received such searches of UCC filings, tax liens, judgments, pending litigation, bankruptcy and other matters relating to each Seller, each Servicer, each Trustee, each DST, each REO Subsidiary and Guarantor and the Purchased Assets and Underlying Assets as Buyer may require, and (iii) the results of such searches are reasonably satisfactory to Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Buyer has received payment from Sellers of all fees and expenses then payable under the Addendum and the other Repurchase Documents, as contemplated by <u>Section 13.02</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Buyer has received the original Trust Certificate for each Underlying Trust, and all Capital Stock for each REO Subsidiary, each issued or re-registered in the name of Buyer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Buyer has completed to its satisfaction such due diligence (including, Buyer's "Know Your Customer", Anti-Corruption Laws, Sanctions and Anti-Money Laundering Laws diligence) and modeling as it may require in its discretion.

Section 6.02 <u>Conditions Precedent to All Transactions</u>. Buyer shall not be obligated to enter into any Transaction for the purchase of any Eligible Asset or funding of any Purchase Price Increase, or be obligated to take, fulfill or perform any other action hereunder, until the following additional conditions have been satisfied or waived by Buyer, with respect to each Eligible Asset and Underlying Asset on and as of the Purchase Date therefor:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Buyer has received the following documents: (i) a Transaction Request, (ii) an Underwriting Package, (iii) a Confirmation, (iv) copies of the related Servicing Agreements, to the extent not already provided, (v) all related Servicer Letter Agreements to the extent not already provided, and shall have received and consented to all amendments, supplements and modifications thereto, (vi) each trust receipt and any other items required to be delivered under the Custodial Agreement, (vii) the relevant Assignment Agreement duly executed by all parties thereto, and (viii) all other documents, certificates, information, financial statements, reports, approvals and opinions of counsel as Buyer may reasonably require all in form and substance reasonably satisfactory to Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) immediately before such Transaction and after giving effect thereto and to the intended use thereof, no Representation Breach with respect to the Eligible Assets or related Underlying Assets proposed to be sold, Default, Event of Default, Material Adverse Effect or Market Disruption Event exists;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Buyer has completed its due diligence review of the Underwriting Package, Asset Documents and such other documents, records and information as Buyer deems appropriate with respect to each Underlying Asset, and the results of such reviews are satisfactory to Buyer, which determination may include, without limitation, ordering BPOs on a representative sample of Underlying Assets as determined by Buyer and its credit review of the data. Sellers shall pay all reasonable out-of-pocket costs and expenses incurred by Buyer in connection with Buyer's activities pursuant to this <u>Section 6.02(c)</u>. Sellers shall deliver BPOs in addition to the representative sample upon the request of Buyer, provided that these additional BPOs shall be at Buyer's sole expense. Sellers shall provide Buyer with a BPO schedule for all Underlying Assets upon written request from Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Buyer has (i) determined that such Trust Certificate and Capital Stock is each an Eligible Asset and each Underlying Asset is an Eligible Mortgage Loan or Eligible REO Property, and (ii) executed the Confirmation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Aggregate Purchase Price of all Transactions does not exceed the Maximum Aggregate Purchase Price after giving effect to such Transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) such Purchase Date occurs on or after the Effective Date but prior to the expiration of the Revolving Period and the Repurchase Date specified in the Confirmation is not later than the Facility Termination Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Sellers and Custodian have satisfied all requirements and conditions and have performed all covenants, duties, obligations and agreements contained in the Repurchase Documents to be performed by such Person on or before such Purchase Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) to the extent any Mortgage Loan is purchased by a Trustee on behalf of the applicable CLT or by a DST from any Affiliate of any Seller Party or Guarantor, Sellers shall deliver or cause to have delivered (i) an agreement providing for "back-up" security interest executed by such Affiliate in form and substance acceptable to Buyer, (ii) a power of attorney from such Affiliate in form attached to such agreement and (iii) evidence that such Affiliate has taken all steps as may be necessary in connection with the transfer of such Pledged Assets to the Trustee on behalf of the applicable CLT or to the applicable DST;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Buyer has completed to its satisfaction such due diligence (including, Buyer's "Know Your Customer", Anti-Corruption Laws, Sanctions and Anti-Money Laundering Laws diligence) and modeling as Buyer may require; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) evidence that each Servicing Account has been established by Sellers or Servicer, and the fully executed Servicer Account Control Agreement with respect to each Servicing Account, if applicable, shall have been received by Buyer.

Section 6.03 <u>Servicing Agreement</u>. The obligation of Buyer to enter into any Transaction pursuant to this Agreement whereby Shellpoint, FCI or Genesis is acting as Servicer or subservicer with respect to any Mortgage Loans is subject to the following further conditions precedent, both immediately prior to any Transaction and also after giving effect thereto and to the intended use thereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Servicing Agreement</u>. Buyer shall have received (i) a copy of and approved the terms of each Servicing Agreement applicable to the related Eligible Mortgage Loans and Eligible REO Properties to be serviced by Shellpoint, FCI or Genesis, as applicable, as such agreement may be amended, supplemented or otherwise modified from time to time and approved by Buyer and (ii) a Servicer Letter Agreement in the form attached hereto as <u>Exhibit B</u>, executed by such Servicer, as applicable.

**Article 7<br> REPRESENTATIONS AND WARRANTIES OF EACH SELLER**

Each Seller (unless otherwise specified herein) and the Guarantor, as applicable, represents and warrants, on and as of the date of this Agreement, each Purchase Date, and at all times when any Repurchase Document or Transaction is in full force and effect, except as otherwise set forth herein or in <u>Schedule 3</u>, as follows:

Section 7.01 <u>Sellers and Guarantor</u>. Each of the Sellers and the Guarantor have been duly organized and validly exists in good standing under the laws of the States of Delaware and Maryland, as applicable. REO Subsidiary has been duly formed as a Delaware limited liability company in good standing under the laws of the State of Delaware. Each Underlying Trust has been duly formed as a New York common law trust or a Delaware statutory trust. Each Seller Party (a) has all requisite power, authority, legal right, licenses and franchises, (b) is duly qualified to do business in all jurisdictions necessary, and (c) has been duly authorized by all necessary action, to (w) own, lease and operate its properties and assets, (x) conduct its business as presently conducted, (y) execute, deliver and perform its obligations under the Repurchase Documents to which it is a party, and (z) acquire, own, sell, assign, pledge and repurchase the Purchased Assets. Such Seller's exact legal name is set forth in the preamble and signature pages of this Agreement. Each of such Seller and REO Subsidiary is located (within the meaning of Article 9 of the UCC) in the state of Delaware. Such Seller has not changed its name or location within the past twelve (12) months. Such Seller's organizational identification number and its tax identification number are set forth on Annex 1. Such Seller is a direct or indirect wholly-owned Subsidiary of Guarantor. The fiscal year of such Seller is the calendar year.

Section 7.02 <u>Repurchase Documents</u>. Each Repurchase Document to which such Seller Party or Guarantor is a party has been duly executed and delivered by such Seller Party and Guarantor and constitutes the legal, valid and binding obligation of such Seller Party and Guarantor enforceable against each of them in accordance with its terms, except as such enforceability may be limited by Insolvency Laws and general principles of equity. The execution, delivery and performance by such Seller Party and Guarantor of each Repurchase Document to which it is a party do not and will not (a) conflict with, result in a breach of, or constitute (with or without notice or lapse of time or both) a default under, any (i) Governing Document, Indebtedness, Guarantee Obligation or Contractual Obligation applicable to such Seller or any of its properties or assets, (ii) Requirements of Law, or (iii) approval, consent, judgment, decree, order or demand of any Governmental Authority, or (b) result in the creation of any Lien (other than Permitted Liens) on any of the properties or assets of such Seller Party. All approvals, authorizations, consents, orders, filings, notices or other actions of any Person or Governmental Authority required for the execution, delivery and performance by such Seller Party and Guarantor of the Repurchase Documents to which it is a party and the sale of and grant of a security interest in each Purchased Asset to Buyer, have been obtained, effected, waived or given and are in full force and effect. The execution, delivery and performance of the Repurchase Documents do not require compliance by such Seller or any Underlying Trust with any "bulk sales" or similar law. As of each Purchase Date, there is no litigation, proceeding or investigation pending or, to the Knowledge of such Seller or Guarantor threatened, against such Seller, an Underlying Trust, REO Subsidiary, Guarantor or any Affiliate of such Seller or Guarantor before any Governmental Authority (a) asserting the invalidity of any Repurchase Document, (b) seeking to prevent the consummation of any Transaction, or (c) seeking any determination or ruling that could reasonably be expected to have a Material Adverse Effect.

Section 7.03 <u>Solvency</u>. No Seller nor any Affiliate of any Seller nor any other Relevant Party is or has ever been the subject of an Insolvency Proceeding. Seller Parties and Guarantor are Solvent and the Transactions do not and will not render any Seller Party or Guarantor not Solvent. Neither Sellers nor Guarantor is entering into the Repurchase Documents or any Transaction with the intent to hinder, delay or defraud any creditor of any Seller, Guarantor or any Affiliate of any Seller or Guarantor. Each Seller has received or will receive reasonably equivalent value for the Repurchase Documents and each Transaction. Each Seller has adequate capital for the normal obligations reasonably foreseeable in a business of its size and character and in light of its contemplated business operations as of such Purchase Date. Each Seller is generally able to pay, and as of the date hereof is paying, its debts as they come due.

Section 7.04 <u>Taxes</u>. Each Seller and its Subsidiaries has filed all required federal income tax returns and all other material tax returns, domestic and foreign, required to be filed by them, or with respect to any of their properties or assets (taking into account extensions) and have paid all material Taxes (including mortgage recording Taxes and all income or franchise Taxes) due and payable by them, except (i) for any such Taxes that are being contested in good faith by appropriate proceedings diligently conducted and for which appropriate reserves have been established in accordance with GAAP or (ii) to the extent that the failure to do so could not reasonably be expected to have a Material Adverse Effect.

Section 7.05 <u>Financial Condition</u>. Guarantor has heretofore furnished to Buyer or made publicly available a copy of its most recently publicly filed financial statements as of the most recent filing date (the "<u>Statement Date</u>"). From the Statement Date through the Effective Date, there has been no material adverse change in the consolidated business, operations or financial condition of Guarantor and its consolidated Subsidiaries taken as a whole from that set forth in said financial statements nor is Guarantor aware of any state of facts which (with notice or the lapse of time) would result in any such material adverse change.

Section 7.06 <u>True and Complete Disclosure</u>. As of the date of delivery to Buyer, the information, reports, certificates, documents, financial statements, operating statements, forecasts, books, records, files, exhibits and schedules furnished by or on behalf of any Seller, any Underlying Trust, REO Subsidiary or Guarantor by a Relevant Party to Buyer in connection with the Repurchase Documents and the Transactions (excluding any representation and warranty set forth on <u>Schedule 1-A</u>, <u>1-B</u>, <u>1-C</u> and <u>1-D</u> and any information set forth in the Mortgage Loan Schedule or REO Property Schedule), when taken as a whole, do not contain any untrue statement of material fact or omit to state any material fact necessary to make the statements herein or therein, in light of the circumstances under which they were made, not misleading.

Section 7.07 <u>Compliance with Laws</u>. Each Seller, Guarantor, REO Subsidiary and Underlying Trust (or the Trustee for any CLT) has complied in all material respects with all Requirements of Laws. None of Sellers, Guarantor nor any Subsidiaries or Parents of Sellers or Guarantor, nor to the knowledge of Sellers or Guarantor, any Affiliates of Sellers or Guarantor (i) is in violation of any Sanctions or (ii) is a Sanctioned Target. The proceeds of any Transaction have not been and will not be used, directly or indirectly, to fund any operations in, finance any investments or activities in or make any payments to a Sanctioned Target (except to the extent licensed by OFAC or other applicable sanctioning authority) or otherwise in violation of Sanctions, Anti-Corruption Laws or Anti-Money Laundering Laws. The operations of each of Sellers and Guarantor are, and have been, conducted at all times in compliance with all applicable Anti-Money Laundering Laws and Anti-Corruption Laws. No litigation, regulatory or administrative proceedings of or before any court, tribunal or agency with respect to any Anti-Money Laundering Laws or Anti-Corruption Laws have been started or (to the best of its knowledge and belief) threatened against each of Sellers and Guarantor or to the knowledge of Sellers or Guarantor any Affiliates of Sellers or Guarantor. None of Sellers, Guarantor, any Subsidiaries or Parents of Sellers or Guarantor nor to the knowledge of Sellers or Guarantor, any Affiliates of Sellers or Guarantor (a) is a Sanctioned Target, (b) is controlled by or is acting on behalf of a Sanctioned Target, or (c) to the best knowledge of Sellers or Guarantor after due inquiry, is under investigation for an alleged breach of Sanctions by a governmental authority that enforces Sanctions. No properties presently or previously owned or leased by any Seller, any Affiliate of any Seller or their respective predecessors contain or previously contained any Materials of Environmental Concern that constitute or constituted a violation of Environmental Laws or reasonably could be expected to give rise to liability of Seller or Guarantor thereunder. No Seller has Knowledge of any violation, alleged violation, non-compliance, liability or potential liability of any Seller under any Environmental Law. Materials of Environmental Concern have not been released, transported, generated, treated, stored or disposed of in violation of Environmental Laws or in a manner that reasonably could be expected to give rise to liability of Seller or Guarantor thereunder.

Section 7.08 <u>Compliance with ERISA</u>. With respect to any Plan, during the immediately preceding five (5) year period, (a) neither a Reportable Event nor any failure to meet the minimum funding standards of section 302 of ERISA or section 412 of the Code has occurred, (b) each Plan has complied in all material respects with the applicable provisions of the Code and ERISA, (c) no termination of a Plan has occurred resulting in any liability that has remained underfunded, and (d) no Lien in favor of the PBGC or a Plan has arisen. No Plan is "at risk" within the meaning of Section 303(i) of ERISA or Section 430(i) of the Code. No Seller or any Affiliate of any Seller is currently subject to any liability for a complete or partial withdrawal from a Multiemployer Plan. None of the assets of any Seller or any Guarantor are deemed to be plan assets within the meaning of 29 C.F.R. Section 2510.3-101, as modified by Section 3(42) of ERISA.

Section 7.09 <u>No Event of Default</u>. No Event of Default exists. No event of default (however defined) exists under any Indebtedness, Guarantee Obligations or Contractual Obligations of any Seller Party (excluding the Repurchase Documents) or Guarantor with an outstanding amount of at least $15,000,000 which event of default has resulted in the actual acceleration or the maturity of the related obligations of such Seller Party or Guarantor, as applicable. Each Seller Party and Guarantor believes that it is and will be able to pay and perform each agreement, duty, obligation and covenant contained in the Repurchase Documents and Asset Documents to which it is a party, and that it is not subject to any agreement, obligation, restriction or Requirements of Law which would unduly burden its ability to do so or could reasonably be expected to have a Material Adverse Effect. Neither Guarantor nor any Seller has any Knowledge of any actual or prospective development, event or other fact that could reasonably be expected to have a Material Adverse Effect. To the best of the Knowledge of Seller or Guarantor, no Internal Control Event has occurred. Sellers have delivered to Buyer all underlying servicing agreements (or provided Buyer with access to a service, internet website or other system where Buyer can successfully access such agreements) with respect to the Underlying Assets, and to Sellers' Knowledge no material default or event of default (however defined) exists thereunder.

Section 7.10 <u>Transfer and Security Interest</u>. The Repurchase Documents constitute a valid and effective transfer to Buyer (other than for tax purposes) of all right, title and interest of such Seller in, to and under all Purchased Assets (together with all Servicing Rights related to the Underlying Assets), free and clear of any Liens (other than Permitted Liens). With respect to the protective security interest granted by such Seller in <u>Section 11.01</u>, upon the delivery of the Confirmations, delivery to Buyer of the Trust Certificates and Capital Stock, the execution and delivery of the Custodial Agreement and the filing of the UCC financing statements as provided herein, such security interest shall be a valid first priority perfected security interest to the extent such security interest can be perfected by possession, filing or control under the UCC, subject only to Permitted Liens. The Purchased Assets constitute the following, as defined in the UCC: a general intangible, instrument, investment property, security, deposit account, financial asset, uncertificated security, securities account, or security entitlement, and Sellers intend that they be governed by Article 8 of the UCC. Such Seller has not sold, assigned, pledged, granted a security interest in, encumbered or otherwise conveyed any of the Purchased Assets to any Person other than pursuant to the Repurchase Documents. Such Seller has not authorized the filing of and is not aware of any authorized UCC financing statements filed against such Seller as debtor that include the Purchased Assets, other than any financing statement that has been terminated or filed pursuant to this Agreement. The Trustee on behalf of the applicable CLT, or the applicable DST, as applicable, is the sole owner of the legal title to the related Mortgage Loans and had good and marketable title thereto, free and clear of all Liens, in each case except for Liens to be released simultaneously with the pledge to Buyer under the Pledge Agreement. The provisions of the Pledge Agreement are effective to create in favor of Buyer a valid security interest in all right, title and interest of the Trustee on behalf of the applicable CLT, or of the applicable DST, as applicable, in, to and under any Mortgage Loan related to the Purchased Assets owned by the Trustee on behalf of the applicable CLT, or by the applicable DST, as applicable.

Section 7.11 <u>Trust Certificates; Capital Stock</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As of the related Purchase Date, and with respect to (i) an Underlying Trust, the Trust Certificates issued and outstanding and delivered to Buyer pursuant to <u>Section 6.01(d)</u> or <u>Section 6.02(d)</u>, as applicable, constitute all the issued and outstanding Trust Interests of such Underlying Trust and (ii) an REO Subsidiary, the Capital Stock constitutes 100% of the Equity Interests in such REO Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As of the related Purchase Date, and with respect to (i) an Underlying Trust, each Trust Certificate has been duly and validly issued in compliance with applicable law and the related Trust Agreement and (ii) an REO Subsidiary, all Capital Stock has been duly and validly issued in compliance with applicable law and the related Governing Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Immediately prior to the re-registration thereof in the name of Buyer pursuant to this Agreement, Seller is the record and beneficial owner of, and has good title to, each Trust Certificate and Capital Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Trust Certificates and Capital Stock are certificated securities in registered form.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) As of the related Purchase Date, each Underlying Trust or REO Subsidiary related to each Purchased Asset (i) is not required to register under the Investment Company Act based upon the exception provided by Section (3)(c)(5)(C) of the Investment Company Act (although other exemptions or exclusions may be applicable) and (ii) is not a "covered fund" within the meaning of the final regulations issued December 10, 2013, implementing Section 619 of the Dodd-Frank Walls Street Reform and Consumer Protection Act of 2010, commonly known as the "Volcker Rule."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) It is the intent of the parties hereto that the Capital Stock and Trust Certificates each constitute a "security" as that term is defined in the UCC and that the Capital Stock and each Trust Certificate be governed by Article 8 of the UCC.

Section 7.12 <u>Separateness</u>. Each Seller and REO Subsidiary is in compliance with the requirements of Article 9.

Section 7.13 <u>Jurisdiction of Organization</u>. Such Seller's jurisdiction of organization is Delaware. Such Seller shall provide Buyer with thirty (30) days advance notice of any change in such Seller's jurisdiction. Such Seller does not have a trade name. During the preceding five (5) years, such Seller has not been known by or done business under any other name, corporate or fictitious, and has not filed or had filed against it any bankruptcy receivership or similar petitions nor has it made any assignments for the benefit of creditors.

Section 7.14 <u>Structural Agreements</u>. Each of the Structural Agreements is genuine, in full force and effect, and no defaults or events of default of any Relevant Party exist thereunder. Each such Structural Agreement is the legal, valid, and binding obligation of the Relevant Parties that are parties thereto, enforceable against such Relevant Parties in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors' rights generally and general equitable principles. The enforceability of each Structural Agreement has not been contested by any party thereto. There is no default, breach, violation or event of acceleration of any Relevant Party existing under any Structural Agreement and no event has occurred which, with the passage of time or giving of notice or both and the expiration of any grace or cure period, would constitute a default, breach, violation or event of acceleration of any Seller Party thereunder, except, in each case, that would not be reasonably likely to result in a Material Adverse Effect.

Section 7.15 <u>Underlying Trusts; REO Subsidiaries</u>. Each Trust Certificate and Capital Stock issued by an Underlying Trust or REO Subsidiary, as applicable, shall be issued and sold only to Buyer until such time as such Trust Certificate or Capital Stock is repurchased on the related Repurchase Date.

Section 7.16 <u>No Adverse Selection</u>. No procedures believed by such Seller to be adverse to Buyer were utilized by such Seller or the related Servicer in identifying or selecting the proposed Purchased Assets or Underlying Assets for sale to Buyer.

Section 7.17 <u>Servicing Rights</u>. All Servicing Rights with respect to the Underlying Assets have been sold and transferred to the applicable Trustee on behalf of the related CLT, or to the applicable DST, as applicable, for the benefit of Buyer, and neither the related Seller nor any Affiliate of such Seller has any Retained Interest therein except as may be provided in the Repurchase Documents.

**Article 8<br> COVENANTS OF SELLERS AND GUARANTOR**

From the date hereof until the Repurchase Obligations are paid in full and the Repurchase Documents are terminated, each Seller (unless otherwise specified herein) and the Guarantor, as applicable, shall perform and observe the following covenants, which shall be given independent effect (so that if a particular action or condition is prohibited by any covenant, the fact that it would be permitted by an exception to or be otherwise within the limitations of another covenant shall not avoid the occurrence of a Default or an Event of Default if such action is taken or condition exists):

Section 8.01 <u>Existence; Governing Documents; Conduct of Business</u>. Each Seller Party and Guarantor shall (a) preserve and maintain its legal existence, (b) qualify and remain qualified in good standing in each jurisdiction where the failure to be so qualified would have a Material Adverse Effect, and (c) comply with its Governing Documents. Such Seller shall not permit any Trustee on behalf of any CLT, or any DST to modify or amend the Governing Documents of such Underlying Trust in a manner that would reasonably be expected to have (i) a Material Adverse Effect or (ii) an adverse effect on the furtherance of the purposes of this facility. Such Seller shall not permit any Trustee on behalf of any CLT, or any DST to terminate the Governing Documents of such Underlying Trust for so long as any Repurchase Obligations remain outstanding. Such Seller shall not (a) change its name, organizational number, tax identification number, fiscal year, method of accounting, identity, structure or jurisdiction of organization (or have more than one such jurisdiction), or (b) move (except to the extent permitted pursuant to the Custodial Agreement), or consent to Custodian moving, the Asset Documents from the location thereof on the Effective Date, unless in each case such Seller has given at least thirty (30) days prior notice to Buyer and has taken all actions required under the UCC to continue the first priority perfected security interest of Buyer in the Purchased Assets. Such Seller shall enter into each Transaction as principal, unless Buyer agrees before a Transaction that such Seller may enter into such Transaction as agent for a principal and under terms and conditions disclosed to Buyer.

Section 8.02 <u>Compliance with Laws, Contractual Obligations and Repurchase Documents</u>. Such Seller, the Guarantor, each REO Subsidiary and each Underlying Trust (or the related Trustee on behalf of the applicable CLT) shall comply in all material respects with all Requirements of Laws, including those relating to any Purchased Asset and Underlying Asset. No part of the proceeds of any Transaction shall be used for any purpose that violates Regulation T, U or X of the Board of Governors of the Federal Reserve System. Such Seller shall maintain the Custodial Agreement in full force and effect. The proceeds of any Transaction shall not be used, directly or indirectly, for any purpose which would breach any applicable Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions. Sellers and Guarantor shall maintain policies and procedures designed to promote and achieve compliance with applicable Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions. The repurchase of any Purchased Asset or any other payment due to Buyer under this Agreement or any other Repurchase Document shall not be funded, directly or indirectly, with proceeds derived from a transaction that would be prohibited by applicable Anti-Corruption Laws, Anti-Money Laundering Laws or Sanctions, or in any manner that would cause a Seller or Guarantor, or to the knowledge of a Seller or Guarantor, any Affiliates of Sellers or Guarantor to be in breach of any applicable Anti-Corruption Laws, Anti-Money Laundering Laws or Sanctions. The proceeds of any Transaction hereunder will not, directly or indirectly, be used to lend, contribute, or otherwise made available: (i) to fund any activities or business of or with a Sanctioned Target (except to the extent licensed by OFAC or other applicable sanctioning authority), or (ii) be used in any manner that would be prohibited by Sanctions or would otherwise cause Buyer to be in breach of any Sanctions. To the extent legally permissible, Sellers or Guarantor shall notify the Buyer in writing not more than five (5) Business Days after becoming aware of any breach of <u>Section 7.07</u> or this <u>Section 8.02</u>.

Section 8.03 <u>Structural Changes</u>. No Seller Party shall enter into any transaction of merger or consolidation or amalgamation, or liquidate, wind up or dissolve itself (or suffer any liquidation, winding up or dissolution) or sell all or substantially all of its assets (other than pursuant to a securitization transaction or other ordinary course third party sale of mortgage loans or as contemplated hereunder); provided that any Seller may merge or consolidate with (a) any wholly owned subsidiary of Guarantor, or (b) any other Person if such Seller is the surviving corporation, with, in the case of this <u>clause (b)</u>, the prior written consent of Buyer (not to be unreasonably withheld, conditioned or delayed).

Section 8.04 <u>Protection of Buyer's Interest in Purchased Assets</u>. With respect to each Purchased Asset, such Seller shall take all action necessary or required by the Repurchase Documents, Asset Documents or Requirements of Law, or requested by Buyer, to perfect, protect and more fully evidence the security interests granted in the Repurchase Documents and Buyer's ownership of and first priority perfected security interest in such Purchased Assets, Underlying Assets and related Asset Documents, including executing or causing to be executed (a) such other instruments or notices as may be necessary or appropriate and filing and maintaining effective UCC financing statements, continuation statements and assignments and amendments thereto, and (b) all documents necessary to both collaterally and absolutely and unconditionally assign all rights (but none of the obligations) of such Seller under each Purchase Agreement, in each case as additional collateral security for the payment and performance of each of the Repurchase Obligations, to the extent permitted under each Purchase Agreement. Such Seller shall comply with all requirements of the Custodial Agreement with respect to each Underlying Asset, including the delivery to Custodian of all required Asset Documents. Such Seller and each REO Subsidiary and Underlying Trust (or Trustee on behalf of such Underlying Trust for any Underlying Trust that is a CLT) shall (a) not assign, sell, transfer, pledge, hypothecate, grant, create, incur, assume or suffer or permit to exist any security interest in or Lien (other than Permitted Liens) on any Purchased Asset or Underlying Asset to or in favor of any Person other than Buyer, (b) defend such Purchased Assets and Underlying Assets against, and take such action as is necessary to remove, any such Lien, and (c) defend the right, title and interest of Buyer in and to all Purchased Assets and Underlying Assets against the claims and demands of all Persons whomsoever. Notwithstanding the foregoing, if such Seller or any REO Subsidiary, any Trustee on behalf of the related CLT or any DST, as applicable, grants a Lien on any Purchased Asset in violation of this <u>Section 8.04</u> or any other Repurchase Document, such Person shall be deemed to have simultaneously granted an equal and ratable Lien on such Purchased Asset in favor of Buyer to the extent such Lien has not already been granted to Buyer; provided, that such equal and ratable Lien shall not cure any resulting Event of Default. Such Seller shall not materially amend, modify, waive or terminate any provision of any Purchase Agreement, Servicing Agreement or Servicer Letter Agreement, nor consent to any amendment, modification, waiver or termination of any Trust Agreement, without the prior written consent of Buyer. Such Seller shall not, or permit Servicer to, extend, amend, waive, terminate, rescind, cancel, release or otherwise modify the material terms of or any collateral, guaranty or indemnity for, or exercise any material right or remedy of a holder (including all lending, corporate and voting rights, remedies, consents, approvals and waivers) of, any Underlying Asset or Asset Document except in accordance with the Servicing Agreement. Such Seller shall mark its computer records and tapes to evidence the interests granted to Buyer hereunder. Such Seller shall not take any action to cause any Purchased Asset or Underlying Asset that is not evidenced by an instrument or chattel paper (as defined in the UCC) to be so evidenced. If a Purchased Asset or Underlying Asset becomes evidenced by an instrument or chattel paper, the same shall be promptly delivered to Buyer or Custodian at the direction of Buyer, as applicable, together with endorsements required by Buyer.

Section 8.05 <u>Actions of Seller Relating to Distributions, Indebtedness, Guarantee Obligations, Contractual Obligations, Investments and Liens</u>. Upon the occurrence of an Event of Default, such Seller shall not declare or make any payment or dividend on account of, or set apart assets for, a sinking or similar fund for the purchase, redemption, defeasance, retirement or other acquisition of any Equity Interest of such Seller, whether now or hereafter outstanding, or make any other distribution in respect thereof, either directly or indirectly, whether in cash or property or in obligations of such Seller.

Section 8.06 <u>Maintenance of Property and Insurance</u>. Such Seller shall (a) keep all property useful and necessary in its business in good working order and condition, (b) maintain insurance on all its properties in accordance with customary and prudent practices of companies engaged in the same or a similar business, and (c) furnish to Buyer upon request information and certificates with respect to such insurance.

Section 8.07 <u>Financial Covenants</u>. Guarantor shall comply at all times with the financial covenants set forth in the Addendum.

It is understood that the sole remedy for the failure of the Guarantor to comply with any of the covenants set forth in this <u>Section 8.07</u> is the occurrence of an Event of Default (as opposed to a claim for breach of contract).

Section 8.08 <u>Delivery of Income</u>. Such Seller shall, and pursuant to each Servicer Letter Agreement shall cause the related Servicer or Interim Servicer and all other applicable Persons to, deposit all Income for the related Pricing Period in respect of the Underlying Assets into the Waterfall Account, as applicable, in accordance with <u>Section 5.01</u> hereof. Such Seller and each Servicer (a) shall comply with and enforce the related Servicer Letter Agreement and (b) shall not amend, modify, waive, terminate or revoke such Servicer Letter Agreement without Buyer's consent. In connection with each principal payment or prepayment under an Underlying Asset, such Seller shall provide or cause to be provided to Buyer and Custodian sufficient detail to enable Buyer and Custodian to identify the Underlying Asset to which such payment applies. If such Seller receives any rights, whether in addition to, in substitution of, as a conversion of, or in exchange for any Underlying Assets, or otherwise in respect thereof, such Seller shall accept the same as Buyer's agent, hold the same in trust for Buyer and promptly deliver the same to Buyer or its designee in the exact form received, together with duly executed instruments of transfer, stock powers or assignment in blank and such other documentation as Buyer shall reasonably request. If any Income is received by any Seller, Guarantor or any Affiliate thereof, such Seller shall pay or deliver or cause to be paid or delivered such Income to Buyer or Custodian on behalf of Buyer within two (2) Business Days after receipt, and, until so paid or delivered, hold such Income in trust for Buyer, segregated from other funds of such Seller.

Section 8.09 <u>Delivery of Information</u>. Solely to the extent not publicly available, such Seller shall deliver (or cause each Servicer to deliver, as applicable) the following to Buyer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) within ninety (90) days after the end of each fiscal year of Guarantor, a Compliance Certificate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) within ten (10) Business Days after the end of each month, a properly completed monthly servicing report, substantially in a form mutually agreeable to Buyer and Sellers, with respect to each Underlying Asset;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) on each Purchase Date, the Transaction Request identifying the related Purchased Assets and Underlying Assets, as provided in <u>Section 3.01(a)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) within ten (10) Business Days after the end of each month, an REO Property Summary and an updated report setting forth each REO Property subject to a Transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) within five (5) days after any material amendment, modification or supplement has been entered into with respect to any Servicing Agreement, a fully executed copy thereof, certified by the related Seller to be true, correct and complete;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) promptly after the discovery thereof by any Seller, Guarantor or any Affiliate of Seller or Guarantor, any other material agreements, correspondence, documents or other information not included in an Underwriting Package which is relevant to the Repurchase Documents or to any Seller's ability to perform its obligations thereunder or relevant to the Purchased Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) promptly following availability, and in any event within thirty (30) days of receipt, (x) copies of relevant portions of any final written Agency (if any) and Governmental Authority and investor audits, examinations, evaluations, monitoring reviews and reports of its operations (including those prepared on a contract basis) which provide for or relate to (i) material corrective action required, (ii) material sanctions proposed, imposed or required, including without limitation notices of defaults, notices of termination of approved status, notices of imposition of supervisory agreements or interim servicing agreements, and notices of probation, suspension, or non-renewal, or (iii) "report cards," "grades" or other classifications of the quality of any Seller's operations and (y) any other material issues raised upon examination of any Seller or its facilities by any Governmental Authority; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) a periodic foreclosure and short sale report identifying (a) all Underlying Assets in foreclosure, (b) the estimated foreclosure sale date and (c) contact information for the foreclosure attorney engaged by a Servicer for any foreclosure or short sale;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) within ten (10) Business Days after the end of each month, a remittance report containing servicing and collection information on an asset by asset and aggregate basis with respect to the Underlying Assets related to the Purchased Assets serviced by a Servicer during the prior calendar month; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) promptly following Buyer's written request, such other information regarding the financial condition, operations or business of Guarantor as Buyer may reasonably request in writing.

Section 8.10 <u>Delivery of Notices</u>. Such Seller shall promptly notify Buyer of the occurrence of any of the following of which such Seller has Knowledge, together with a certificate of a Responsible Officer of such Seller setting forth details of such occurrence and any action such Seller has taken or proposes to take with respect thereto:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a Representation Breach;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) an Internal Control Event or other event or circumstance that could reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the existence of any Default or Event of Default under any Repurchase Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the occurrence of a material breach or other material default under any Structural Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the resignation or termination of any Servicer under the Servicing Agreements with respect to any Underlying Asset;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the establishment of a rating by any rating agency applicable to such Seller, any Servicer, Guarantor or any Affiliate of thereof and any downgrade in or withdrawal of such rating once established;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) except as would not reasonably be expected to result in material liability to Seller, Guarantor or any ERISA Affiliate, (1) any Reportable Event or failure to meet the minimum funding standard of Section 412 of the Code or Sections 302 or 303 of ERISA, including the failure to make on or before its due date a required installment under Section 430(j) of the Code or Section 303(j) of ERISA, or any request for a waiver under Section 412(c) of the Code for any Plan; a notice of intent to terminate any Plan or any action taken by such Seller, Guarantor or an ERISA Affiliate to terminate any Plan or the institution by PBGC of proceedings under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Plan, or the receipt by Seller, Guarantor or any ERISA Affiliate of a notice from a Multiemployer Plan that such action has been taken by PBGC with respect to such Multiemployer Plan; the complete or partial withdrawal from a Multiemployer Plan by such Seller, Guarantor or any ERISA Affiliate that results in liability under Section 4201 or 4204 of ERISA (including the obligation to satisfy secondary liability as a result of a purchaser default) or the receipt by such Seller, Guarantor or any ERISA Affiliate of notice from a Multiemployer Plan that it is in insolvency pursuant to Section 4245 of ERISA or that it intends to terminate or has terminated under Section 4041A of ERISA or the institution of a proceeding by a fiduciary of any Multiemployer Plan against such Seller, Guarantor or any ERISA Affiliate to enforce Section 515 of ERISA, which proceeding is not dismissed within 30 days; and the adoption of an amendment to any Plan that, pursuant to Section 401(a)(29) of the Code, would result in the loss of tax-exempt status of the trust of which such Plan is a part;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the commencement of, settlement of or material judgment in any litigation, action, suit, arbitration, investigation or other legal or arbitrable proceedings before any Governmental Authority that (i) affects such Seller, Guarantor or any Affiliate thereof, any Underlying Asset or Mortgaged Property (excluding routine foreclosure or bankruptcy actions relating to such Mortgaged Property) (ii) questions or challenges the validity or enforceability of any Repurchase Document, Transaction, Purchased Asset or Asset Document, or (iii) individually or in the aggregate, if adversely determined, could reasonably be likely to have a Material Adverse Effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) promptly upon Knowledge thereof, notice of any change in Guarantor's status as a REIT.

Section 8.11 <u>Records</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Such Seller shall (and shall cause each other Seller Party to) collect and maintain or cause to be collected and maintained all Records in accordance with industry custom and practice for assets similar to the Underlying Assets and all such Records constituting Asset Documents shall be in Custodian's possession except as otherwise provided under the Custodial Agreement. Such Seller will not allow any such papers, records or files that are an original or an only copy and part of the Asset Documents to leave Custodian's possession, except in accordance with the terms of the Custodial Agreement. Such Seller shall or shall cause Servicer to maintain all such Records not in the possession of Custodian in good and complete condition in accordance with industry practices for assets similar to the Underlying Assets and preserve them against loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For so long as Buyer has an interest in or lien on any Purchased Asset, such Seller will hold or cause to be held all related Records in trust for Buyer. Such Seller shall notify, or cause to be notified, every other party holding any such Records of the interests and liens in favor of Buyer granted hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon reasonable advance notice from Buyer, such Seller shall (x) make any and all such Records available to Buyer to examine any such Records, either by its own officers or employees, or by agents or contractors, or both, and make copies of all or any portion thereof, and (y) permit Buyer or its authorized agents to discuss the affairs, finances and accounts of such Seller with its respective chief operating officer and chief financial officer and to discuss the affairs, finances and accounts of such Seller with its respective independent certified public accountants. Sellers shall reimburse Buyer for the reasonable and documented out-of-pocket costs and expenses associated with no more than one (1) such visit per calendar year provided that such reimbursement will be unlimited after an Event of Default. The costs and expenses of any additional visits shall be borne by Buyer and not by any Seller unless there is an Event of Default.

Section 8.12 <u>No Pledge</u>. Such Seller shall not pledge, transfer or convey any security interest in any Waterfall Account to any Person without the express written consent of Buyer.

Section 8.13 <u>Maximum Aggregate Purchase Price</u>. If at any time, the Aggregate Purchase Price exceeds the Maximum Aggregate Purchase Price, Sellers shall, at Buyer's request, repurchase Purchased Assets, or obtain the release of Underlying Assets pursuant to a Purchase Price Decrease, and remit to Buyer the Repurchase Price or Allocated Purchase Price with respect to each such Purchased Asset or Underlying Asset, as applicable, such that the Aggregate Purchase Price following such repurchase shall be less than or equal to the Maximum Aggregate Purchase Price, by 5:00 p.m. (New York City time) on the Business Day following Buyer's request if made before 11:00 a.m. (New York City time) on a Business Day, or if such request is made after 11:00 a.m. (New York City time) on a Business Day, by no later than 5:00 p.m. (New York City time) on the second Business Day following such request.

Section 8.14 <u>Reserved</u>.

Section 8.15 <u>Trust Interests; Capital Stock</u>. No Seller Party shall take any action to issue, or enable the issuance of, any Equity Interests in any Underlying Trust or any REO Subsidiary of any nature (other than the Trust Certificates and Capital Stock), including any rights that are convertible into Equity Interests. If a Seller shall become entitled to receive or shall receive any certificate evidencing any option rights or any other Equity Interest in any Underlying Trust or REO Subsidiary, whether in addition to, in substitution for, as a conversion of, or in exchange for the related Trust Interests or Capital Stock, or otherwise in respect thereof, Seller shall assign and deliver the same forthwith to Buyer in the exact form received, duly endorsed by Seller, together with an undated transfer power, if required, covering such certificate duly executed in blank. Any sums paid upon or in respect of any Trust Interest or Capital Stock upon the liquidation or dissolution of the related Underlying Trust or REO Subsidiary shall be paid over to Buyer and applied to the payment of the outstanding Repurchase Price. Seller shall, at its sole cost and expense, take all such other steps as may be necessary in connection with the preservation of Buyer's rights in and interests to the Trust Certificates and the Capital Stock.

Section 8.16 <u>Structural Agreements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as permitted under a Structural Agreement, such Seller shall not permit (i) the assignment or subcontracting of any Person's rights or obligations under any Structural Agreement, or (ii) the amendment or modification of, the waiver of any event of default under, or the termination of any Structural Agreement, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) no Relevant Party shall waive (or direct the waiver of) the performance by any party to any Structural Agreement of any action, nor has any such Person waived (or has directed the waiver of) any default resulting from any action or inaction by any party, in each case, unless (i) Buyer has agreed to such action in writing or (ii) such action would not reasonably be expected to have (A) a Material Adverse Effect or (B) a material adverse effect on (x) any Underlying Trust, Purchased Asset or Underlying Mortgage Loan, (y) Buyer's rights under this Agreement or the other Repurchase Documents, or (z) the furtherance of the purposes under any Repurchase Document; provided that no Structural Agreement to which Buyer is a party shall be amended or modified for any reason without Buyer's prior written consent thereto.

Section 8.17 <u>No Division</u>. No Seller or REO Subsidiary shall effect a "Division" into two or more domestic limited liability companies pursuant to and in accordance with Section 18-217 of Delaware Limited Liability Company Act, 6 Del. C. §§ 18-101 et seq., as amended.

**Article 9<br> SINGLE-PURPOSE ENTITY**

Section 9.01 <u>Covenants Applicable to Seller and REO Subsidiary</u>. Except as expressly contemplated by this Agreement, each Seller and each REO Subsidiary shall, and each Seller shall ensure that each REO Subsidiary shall (a) own no assets, and shall not engage in any business, other than the assets and transactions specifically contemplated by this Agreement and any other Repurchase Document, (b) not incur any Indebtedness or other obligation, secured or unsecured, direct or indirect, absolute or contingent (including guaranteeing any obligation), other than (i) with respect to the Asset Documents and the Retained Interests and (ii) as otherwise permitted under this Agreement, (c) not make any loans or advances to any Affiliate or third party and shall not acquire obligations or securities of its Affiliates, in each case other than in connection with the acquisition by any Seller or REO Subsidiary of Mortgage Loans and REO Property to be included as Underlying Assets under the Repurchase Documents, (d) pay its debts and liabilities only from its own assets, (e) comply with the provisions of its Governing Documents, (f) do all things necessary to observe organizational formalities and to preserve its existence, and shall not amend, modify, waive provisions of or otherwise change its Governing Documents, (g) maintain all of its books, records, financial statements and bank accounts separate from those of its Affiliates (except that such financial statements may be consolidated to the extent consolidation is required under GAAP or as a matter of Requirements of Law); <u>provided</u>, <u>that</u> to the extent required by GAAP, the financial statements shall disclose the separateness of Seller or REO Subsidiary from such Affiliate and indicate that the assets and credit of Seller or REO Subsidiary are not available to satisfy the debts and other obligations of such Affiliate or any other Person, (h) be, and at all times shall hold itself out to the public as, a legal entity separate and distinct from any other entity (including any Affiliate), shall correct any known misunderstanding regarding its status as a separate entity, shall conduct business in its own name, and shall not identify itself or any of its Affiliates as a division of the other, (i) maintain adequate capital for the normal obligations reasonably foreseeable in a business of its size and character and in light of its contemplated business operations and shall remain Solvent, (j) not commingle its funds or other assets with those of any Affiliate or any other Person and shall maintain its properties and assets in such a manner that it would not be costly or difficult to identify, segregate or ascertain its properties and assets from those of others, (k) maintain its properties, assets and accounts separate from those of any Affiliate or any other Person, (l) not hold itself out to be responsible for the debts or obligations of any other Person, (m) allocate fairly and reasonably any overhead for shared office space and for services performed by an employee of an Affiliate and (n) not pledge its assets to secure the obligations of any other Person.

**Article 10<br> EVENTS OF DEFAULT AND REMEDIES**

Section 10.01 <u>Events of Default</u>. Each of the following events shall be an "<u>Event of Default</u>":

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any Seller fails to make a payment of (i) Repurchase Price (other than Price Differential) when due, whether by acceleration or otherwise, (ii) Price Differential within two (2) Business Days of when due, or (iii) any other amount within two (2) Business Days of when due, in each case under the Repurchase Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) Guarantor fails to perform any of the financial covenants set forth in <u>Section 8.07</u>, or (ii) any Relevant Party fails to observe or perform in any material respect any other covenant or Repurchase Obligation of such Seller under the Repurchase Documents and (except in the case of a failure to perform or observe the Repurchase Obligations of a Seller under <u>Section 8.04</u> and <u>18.08(a)</u>) such failure continues unremedied for ten (10) Business Days after the earlier of receipt of notice thereof from Buyer or the discovery of such failure by such Seller;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any Representation Breach (other than a Representation Breach regarding any representations and warranties set forth on <u>Schedule 1-A</u>, <u>1-B</u>, <u>1-C</u> or <u>1-D</u> and any information set forth in the Mortgage Loan Schedule or REO Property Schedule, breach of which shall be considered solely for the purpose of determining the Market Value of the Underlying Assets, unless (i) the related Seller shall have made any such representations and warranties with Knowledge that they were materially false or misleading at the time made, or (ii) Buyer determines that any such representations and warranties continue to be regularly made on a materially false or misleading basis), exists and continues unremedied for five (5) Business Days after the earlier of receipt of notice thereof from Buyer or the discovery of such failure by the related Seller;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any Seller Party or Guarantor defaults beyond any applicable grace period in paying any amount or performing any obligation under any Indebtedness, Guarantee Obligation or Contractual Obligation with an outstanding amount of at least $15,000,000, and such default results in the actual acceleration of the maturity of the related obligations of such Seller Party or Guarantor, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any Seller, Guarantor or any Affiliate thereof defaults beyond any applicable grace period in paying any amount due to Buyer or any Affiliate of Buyer under any other financing, hedging, security or other agreement (other than under this Agreement) between such Seller, Guarantor or any Affiliate thereof and Buyer or any Affiliate of Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) an Insolvency Event occurs with respect to any Relevant Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) a Change of Control occurs without Buyer's prior written consent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) a final judgment or judgments for the payment of money in excess of $2,000,000 with respect to any Seller, REO Subsidiary or any Underlying Trust (excluding any judgment relating to any Underlying Asset), or $15,000,000 with respect to Guarantor in the aggregate is entered against any Seller or Guarantor by one or more Governmental Authorities and the same is not satisfied, discharged (or provision has not been made for such discharge) or bonded, or a stay of execution thereof has not been procured, within sixty (60) days from the date of entry thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a Governmental Authority takes any action to (i) condemn, seize or appropriate, or assume custody or control of, all or any substantial part of the property of any Relevant Party, (ii) displace the management of any Relevant Party or curtail its authority in the conduct of its business or the administration of any Underlying Trust, (iii) terminate the activities of any Relevant Party as contemplated by the Repurchase Documents, or (iv) remove, limit or restrict the approval of any Seller, REO Subsidiary, any Trustee on behalf of the related CLT or any DST of the foregoing as an issuer, buyer or seller of securities, and in each case such action is not discontinued or stayed within sixty (60) days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any Relevant Party admits that it is not Solvent or is not able or not willing to perform any of its Repurchase Obligations, Contractual Obligations or Guarantee Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) any provision of the Repurchase Documents, any right or remedy of Buyer or obligation, covenant, agreement or duty of any Relevant Party thereunder, or any Lien, security interest or control granted under or in connection with the Repurchase Documents, Purchased Assets or Underlying Assets terminates, is declared null and void, ceases to be valid and effective, ceases to be the legal, valid, binding and enforceable obligation of any Relevant Party or any other Person, or the validity, effectiveness, binding nature or enforceability thereof is contested, challenged, denied or repudiated by any Relevant Party or any Affiliate, in each case directly, indirectly, in whole or in part;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Buyer ceases for any reason to have (i) a valid and perfected first priority security interest in a material portion of the Purchased Assets or Pledged Assets, or any Account, or (ii) a valid and perfected first priority security interest in a material portion of the Related Credit Enhancement to the extent a security interest therein can be perfected by the filing of a UCC financing statement or by possession, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) any Relevant Party is required to register as an "investment company" (as defined in the Investment Company Act) or the arrangements contemplated by the Repurchase Documents shall require registration of any Relevant Party as an "investment company";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) any Seller, REO Subsidiary, any Underlying Trust (or Trustee on behalf of such Underlying Trust, for any Underlying Trust that is a CLT) or any Servicer fails to deposit to the Waterfall Account all Income and other amounts as required by <u>Section 5.01</u> and other provisions of this Agreement, and such failure continues unremedied for two (2) Business Days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) Guarantor's audited annual financial statements or the notes thereto or other opinions or conclusions stated therein are qualified or limited by reference to the status of Guarantor as a "going concern" or a reference of similar import, other than a qualification or limitation expressly related to Buyer's rights in the Purchased Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) this Agreement is recharacterized by a court of competent jurisdiction as a secured loan or similar financing (other than for tax purposes);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) (i) any Person shall engage in any non-exempt "prohibited transaction" (as defined in Section 406 of ERISA or Section 4975 of the Code) involving any Plan, (ii) a determination that a Plan is "at risk" (within the meaning of Section 303 (of ERISA)) or any Lien in favor of the PBGC or a Plan shall arise on the assets of Seller, Guarantor or any ERISA Affiliate, (iii) a Reportable Event shall occur with respect to, or proceedings shall commence to have a trustee appointed, or a trustee shall be appointed, to administer or to terminate, any Plan, which Reportable Event or commencement of proceedings or appointment of a trustee is, in the reasonable opinion of Buyer, likely to result in the termination of such Plan for purposes of Title IV of ERISA, (iv) any Plan shall terminate for purposes of Title IV of ERISA, (v) any Seller, Guarantor or any ERISA Affiliate shall, or in the reasonable opinion of Buyer is likely to, incur any liability in connection with a withdrawal from, or the insolvency or reorganization of, a Multiemployer Plan, (vi) any Seller, Guarantor or any ERISA Affiliate shall file an application for a minimum funding waiver under Section 302 of ERISA or Section 412 of the Code with respect to any Plan, (vii) any obligation for post-retirement medical costs (other than as required by COBRA) exists, or (viii) any other event or condition shall occur or exist with respect to a Plan; and in each case in clauses (i) through (viii) above, such event or condition, together with all other such events or conditions, if any, could reasonably be expected to have a Material Adverse Effect; or (ix) the assets of any Seller or any Guarantor are treated as "plan assets" under 29 C.F.R. Section 2510.3-101 as modified by Section 3(42) of ERISA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) any amendment, modification, waiver or termination of any provision of any Purchase Agreement, any Servicing Agreement, any Servicer Letter Agreement or any Trust Agreement that is materially adverse to Buyer or that would be reasonably likely to have a material adverse effect on any Purchased Asset or Underlying Asset is made without the prior written consent of Buyer, which consent shall not be unreasonably withheld or delayed; provided, that Buyer shall be deemed to have consented to any such material amendment, modification, waiver or termination if Buyer was provided at least ten (10) Business Days' prior written notice thereof and failed to provide a response during such time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) there shall have occurred a Guarantee Default under the Guarantee Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) any material failure of any Servicer to service the Underlying Assets in accordance with the Servicing Agreement and the Servicer Letter Agreement, that is continuing and the servicing with respect thereto shall not have been transferred to a successor Servicer acceptable to Buyer within the applicable time period set forth in <u>Section 17.01(f);</u> or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) a default shall have occurred and be continuing under any of the Structural Agreements that would reasonably be expected to have (i) a Material Adverse Effect or (ii) a material adverse effect on (x) any Purchased Asset or Underlying Asset, (y) Buyer's rights under this Agreement or the other Repurchase Documents, or (z) the furtherance of the purposes under any Repurchase Documents.

Section 10.02 <u>Remedies of Buyer as Owner of the Purchased Assets</u>. If an Event of Default exists, at the option of Buyer, exercised by notice to Sellers (which option shall be deemed to be exercised, even if no notice is given, automatically and immediately upon the occurrence of an Event of Default under <u>Section 10.01(f)</u>, <u>(i)</u> or <u>(j)</u>), the Repurchase Date for all Purchased Assets shall be deemed automatically and immediately to occur (the date on which such option is exercised or deemed to be exercised, the "<u>Accelerated Repurchase Date</u>"). If Buyer exercises or is deemed to have exercised the foregoing option:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All Repurchase Obligations shall become immediately due and payable on and as of the Accelerated Repurchase Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All amounts in the Waterfall Account and all Income paid after the Accelerated Repurchase Date shall be retained by Buyer and applied in accordance with Article 5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Buyer may complete any assignments, allonges, endorsements, powers or other documents or instruments executed in blank and otherwise obtain physical possession of all Records and all other instruments, certificates and documents then held by Custodian under the Custodial Agreement. Buyer may obtain physical possession of all Servicing Files and other files and records of Seller and Servicer. Sellers shall deliver to Buyer such assignments and other documents with respect thereto as Buyer shall request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Buyer may immediately, at any time and from time to time, exercise either of the following remedies with respect to any or all of the Purchased Assets: (i) sell such Purchased Assets, direct the related Trustee in writing to sell the related Underlying Assets, or terminate any Underlying Trust and sell the related Underlying Assets, on a servicing-released basis and/or without providing any representations and warranties on an "as-is where is" basis, in a recognized market and by means of a public or private sale at such price or prices as Buyer accepts, and apply the net proceeds thereof in accordance with Article 5, or (ii) retain such Purchased Assets, or terminate any Underlying Trust and retain the related Underlying Assets, and give Sellers credit against the Repurchase Price for such Purchased Asset or Underlying Asset (or if the amount of such credit exceeds the Repurchase Price allocable to such Purchased Assets and/or Underlying Assets, to credit against Repurchase Obligations due and any other amounts then owing to Buyer by any other Person pursuant to any Repurchase Document, in such order and in such amounts as determined by Buyer), in an amount equal to the Market Value of such Purchased Assets and/or Underlying Assets. Until such time as Buyer exercises either such remedy with respect to a Purchased Asset, Buyer may hold such Purchased Asset for its own account and retain all Income with respect thereto until the Repurchase Obligations have been paid in full. Buyer shall not be required to give any warranties as to the Purchased Assets or Underlying Assets with respect to any such disposition thereof. Buyer may specifically disclaim or modify any warranties of title or the like relating to the Purchased Assets and Underlying Assets. The foregoing procedure for disposition and liquidation of the Purchased Assets and/or Underlying Assets shall not be considered to adversely affect the commercial reasonableness of any sale thereof. Each Seller agrees that it would not be commercially unreasonable for Buyer to dispose of the Purchased Assets and/or Underlying Assets or any portion thereof by using Internet sites that provide for the auction of assets similar to the Purchased Assets and/or Underlying Assets, or that have the reasonable capability of doing so, or that match buyers and sellers of assets. For the avoidance of doubt, the Parties agree that Buyer shall be entitled to place the Underlying Assets in a pool for issuance of mortgage backed securities at the then prevailing price for such securities and to sell such securities for such prevailing price in the open market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Parties agree that the Purchased Assets and Underlying Assets are of such a nature that they may decline rapidly in value, and may not have a ready or liquid market. Accordingly, Buyer shall not be required to sell more than one Purchased Asset or direct the related Trustee to sell more than one Underlying Asset on a particular Business Day, to the same purchaser or in the same manner. Buyer may determine whether, when and in what manner a Purchased Asset or Underlying Asset shall be sold, it being agreed that both a good faith public and a good faith private sale shall be deemed to be commercially reasonable. Buyer shall not be required to give notice to any Seller or any other Person prior to exercising any remedy in respect of an Event of Default. If no prior notice is given, Buyer shall give notice to the related Seller of the remedies exercised by Buyer promptly thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Buyer shall have the right to direct the related Servicer to remit all collections thereon to Buyer (subject to the payment of amounts under <u>Sections 5.03</u> and <u>5.04</u> herein) and if any such payments are received by any Seller, Guarantor or Servicer, such Seller shall not and shall not permit Guarantor or such Servicer to commingle the amounts received with other funds of such Seller, Guarantor or such Servicer and shall promptly pay them over to Buyer. Buyer shall also have the right to terminate any Servicer with or without cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Upon the occurrence of one or more Events of Default, Buyer may apply any proceeds from the liquidation of the Purchased Assets and/or Underlying Assets to the Repurchase Prices hereunder and all other Repurchase Obligations in the manner Buyer deems appropriate until the Repurchase Obligations have been paid in full, and any remaining proceeds shall be paid to the related Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Each of the Sellers shall be jointly and severally liable to Buyer for (i) any amount by which the Repurchase Obligations due to Buyer exceed the aggregate of the net proceeds and credits referred to in the preceding clause (d), (ii) the amount of all actual out-of-pocket expenses, including reasonable legal fees and expenses, actually incurred by Buyer in connection with or as a consequence of an Event of Default, (iii) any costs and losses payable under <u>Section 12.03</u>, and (iv) any other actual loss, damage, cost or expense resulting from the occurrence of an Event of Default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Buyer shall be entitled to an injunction, an order of specific performance or other equitable relief to compel the Relevant Parties to fulfill any of its obligations as set forth in the Repurchase Documents, including this <u>Article 10</u>, if any Relevant Party fails or refuses to perform its obligations as set forth herein or therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Each Seller hereby appoints Buyer as attorney-in-fact of such Seller for purposes of carrying out the Repurchase Documents, including executing, endorsing and recording any instruments or documents and taking any other actions that Buyer deems necessary or advisable to accomplish such purposes, which appointment is coupled with an interest and is irrevocable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Buyer may, without prior notice to Sellers, exercise any or all of its set-off rights including those set forth in <u>Section 8</u>. This <u>Section 10.02(k)</u> shall be without prejudice and in addition to any right of set-off, combination of accounts, Lien or other rights to which any Party is at any time otherwise entitled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) All rights and remedies of Buyer under the Repurchase Documents, including those set forth in <u>Section 18.18</u>, are cumulative and not exclusive of any other rights or remedies that Buyer may have and may be exercised at any time when an Event of Default exists. Such rights and remedies may be enforced without prior judicial process or hearing. Each Seller agrees that nonjudicial remedies are consistent with the usages of the trade, are responsive to commercial necessity and are the result of a bargain at arm's-length. Each Seller hereby expressly waives any defenses such Seller might have to require Buyer to enforce its rights by judicial process or otherwise arising from the use of nonjudicial process, disposition of any or all of the Purchased Assets and/or Underlying Assets, or any other election of remedies.

**Article 11<br> SECURITY INTEREST**

Section 11.01 <u>Grant</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For all but U.S. federal and relevant state and local income and franchise tax purposes, Buyer and Sellers intend that all Transactions shall be sales to Buyer of the Purchased Assets and not loans from Buyer to Sellers secured by the Purchased Assets. However, to preserve and protect Buyer's rights with respect to the Purchased Assets and under the Repurchase Documents in the event that any Governmental Authority recharacterizes the Transactions as other than sales, and as security for Sellers' performance of the Repurchase Obligations, each Seller hereby grants, assigns and pledges to Buyer a fully perfected first priority security interest in all of its rights, title and interest in, to and under the Purchased Assets (which for this purpose shall be deemed to include the items described in the proviso in the definition thereof), and the transfers of the Purchased Assets to Buyer shall be deemed to constitute and confirm such grant, to secure the payment and performance of the Repurchase Obligations (including the obligation of such Seller to pay the Repurchase Price, or if the Transactions are recharacterized as loans, to repay such loans for the Repurchase Price).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Seller acknowledges and agrees that its rights with respect to the Purchased Assets (including without limitation, any security interest such Seller may have in the Purchased Assets and any other collateral granted by such Seller to Buyer pursuant to any other agreement) are and shall continue to be at all times junior and subordinate to the rights of Buyer hereunder. Each Seller further acknowledges that it has no rights to the Underlying Assets or Servicing Rights related to the Underlying Assets, except in its capacity as owner of the beneficial interest in the Underlying Trusts and REO Subsidiaries, subject to the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The REO LLC Subsidiary hereby grants, assigns and pledges to Buyer a security interest in all of its rights, title and interest in, to and under the Underlying REO Properties, all related Income and all proceeds thereof, as additional support for the Repurchase Obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Without limiting the generality of the foregoing and in order to further secure the Repurchase Obligations hereunder, in the event a Seller is deemed to retain any interest in any Underlying Asset or any residual Servicing Rights, such Seller grants, assigns and pledges to Buyer a first priority security interest in and Lien upon all of its rights, title and interest in and to the related Underlying Assets and Servicing Rights. In addition, each Seller shall and shall cause each Servicer to grant, assign and pledge to Buyer a first priority security interest in and to all servicing records and rights to receive servicing records or other documents which constitute a part of the Servicing File with respect to each of the Underlying Assets, and all Income related to the Underlying Assets received by such Seller or such Servicer and all rights to receive such Income, and all products, proceeds and distributions relating to or constituting any or all of the foregoing (collectively, and together with the pledge of Underlying Assets and Servicing Rights in the immediately preceding sentence, the pledge of the Pledged Assets pursuant to the Pledge Agreement, the pledge of the Pledged Assets (as defined in the Residual Pledge Agreements) pursuant to each Residual Pledge Agreement, and the pledge by the REO Subsidiary pursuant to <u>Section 11.01(c)</u>, the "<u>Related Credit Enhancement</u>"). The Related Credit Enhancement is hereby pledged as further security for Sellers' Repurchase Obligations to Buyer hereunder.

Section 11.02 <u>Effect of Grant</u>. If any circumstance described in <u>Section 11.01</u> occurs, (a) this Agreement shall also be deemed to be a security agreement as defined in the UCC, (b) Buyer shall have all of the rights and remedies provided to a secured party by Requirements of Law (including the rights and remedies of a secured party under the UCC and the right to set off any mutual debt and claim) and under any other agreement between Buyer and Seller, (c) without limiting the generality of the foregoing, Buyer shall be entitled to set off the proceeds of the liquidation of the Purchased Assets against all of the Repurchase Obligations, without prejudice to Buyer's right to recover any deficiency, (d) the possession by Buyer or any of its agents, including Custodian, of the Records, the Purchased Assets and such other items of property as constitute instruments, money, negotiable documents, securities or chattel paper shall be deemed to be possession by the secured party for purposes of perfecting such security interest under the UCC and Requirements of Law, and (e) notifications to Persons (other than Buyer) holding such property, and acknowledgments, receipts or confirmations from Persons (other than Buyer) holding such property, shall be deemed notifications to, or acknowledgments, receipts or confirmations from, securities intermediaries, bailees or agents (as applicable) of the secured party for the purpose of perfecting such security interest under the UCC and Requirements of Law. The security interest of Buyer granted herein shall be, and each Seller hereby represents and warrants to Buyer that it is, a first priority perfected security interest. For the avoidance of doubt, (i) each Purchased Asset secures the Repurchase Obligations of the related Seller with respect to all other Transactions and all other Purchased Assets, including any Purchased Assets that are junior in priority to the Purchased Asset in question, and (ii) if an Event of Default exists, no Purchased Asset relating to a Purchased Asset will be released from Buyer's Lien or transferred to any Seller until the Repurchase Obligations are indefeasibly paid in full. Notwithstanding the foregoing, the Repurchase Obligations shall be full recourse to each Seller.

Section 11.03 <u>Sellers to Remain Liable</u>. Buyer and Sellers agree that the grant of a security interest under this Article 11 shall not constitute or result in the creation or assumption by Buyer of any Retained Interest or other obligation of any Seller or any other Person in connection with any Purchased Asset, whether or not Buyer exercises any right with respect thereto. Each Seller shall remain liable under the Purchased Assets to perform all of such Seller's duties and obligations thereunder to the same extent as if the Repurchase Documents had not been executed.

Section 11.04 <u>Rights with Respect to Trust Certificates and Capital Stock</u>. If any Seller shall become entitled to receive or shall receive any certificate evidencing any option rights or any other equity interest in a Trust Certificate or Capital Stock, whether in addition to, in substitution for, as a conversion of, or in exchange for the related Trust Certificate or Capital Stock or otherwise in respect thereof, such Seller shall assign and deliver the same forthwith to Buyer in the exact form received, duly indorsed by such Seller, together with an undated transfer power, if required, covering such certificate duly executed in blank. Any sums paid upon or in respect of a Trust Certificate or Capital Stock upon the liquidation or dissolution of the related Underlying Trust or REO Subsidiary shall be paid over to Buyer and applied to the payment of the outstanding Repurchase Price.

Section 11.05 <u>Waiver of Certain Laws</u>. Each Seller agrees, to the extent permitted by Requirements of Law, that neither it nor anyone claiming through or under it will set up, claim or seek to take advantage of any appraisement, valuation, stay, extension or redemption law now or hereafter in force in any locality where any Purchased Assets may be situated in order to prevent, hinder or delay the enforcement or foreclosure of this Agreement, or the absolute sale of any of the Purchased Assets, or the final and absolute putting into possession thereof, immediately after such sale, of the purchasers thereof, and Seller, for itself and all who may at any time claim through or under it, hereby waives, to the full extent that it may be lawful so to do, the benefit of all such laws and any and all right to have any of the properties or assets constituting the Purchased Assets marshaled upon any such sale, and agrees that Buyer or any court having jurisdiction to foreclose the security interests granted in this Agreement may sell the Purchased Assets as an entirety or in such parcels as Buyer or such court may determine.

**Article 12<br> INCREASED COSTS; CAPITAL ADEQUACY**

Section 12.01 <u>Benchmark Replacement Setting</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Benchmark Replacement</u>. Notwithstanding anything to the contrary herein or in any other Repurchase Document, upon the occurrence of a Benchmark Transition Event, Buyer may amend this Agreement and the other Repurchase Documents to replace the then-current Benchmark with a Benchmark Replacement. Any such amendment with respect to a Benchmark Transition Event will become effective at 5:00 p.m. on the fifth (5th) Business Day after Buyer has provided such amendment to Sellers. No replacement of a Benchmark with a Benchmark Replacement pursuant to this <u>Section 12.01(a)</u> will occur prior to the applicable Benchmark Transition Start Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Benchmark Replacement Conforming Changes</u>. In connection with the use, administration, adoption or implementation of a Benchmark Replacement, Buyer will have the right to make Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Repurchase Document, any amendments implementing such Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Repurchase Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Notices; Standards for Decisions and Determinations</u>. Buyer will promptly notify Sellers of (i) the implementation of any Benchmark Replacement and (ii) the effectiveness of any Conforming Changes in connection with the use, administration, adoption or implementation of a Benchmark Replacement. Any determination, decision or election that may be made by Buyer pursuant to this <u>Section 12.01</u>, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action or any selection, will be conclusive and binding absent manifest error and may be made in Buyer's sole discretion and without consent from any other party to this Agreement or any other Repurchase Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Benchmark Unavailability Period</u>. Upon any Seller's receipt of notice of the commencement of a Benchmark Unavailability Period, (i) such Seller may revoke any request for a proposed Transaction to be entered into during any Benchmark Unavailability Period and (ii) the Pricing Rate shall be converted automatically to the Alternative Rate on the last day of the then current Pricing Period until the end of the Benchmark Unavailability Period.

Section 12.02 <u>Illegality; Inability to Determine Rates</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Illegality</u>. If the adoption of or any change in any Requirements of Law or in the interpretation or application thereof after the date hereof shall make it unlawful for Buyer to effect or continue Transactions as contemplated by the Repurchase Documents, (i) any commitment of Buyer hereunder to enter into new Transactions and Future Advance Purchases shall be terminated, (ii) the Pricing Rate shall be converted automatically to the Alternative Rate on the last day of the then current Pricing Period or within such earlier period as may be required by Requirements of Law, and (iii) if required by such adoption or change, the Facility Termination Date shall be deemed to have occurred. Upon any such conversion, Sellers shall pay any additional amounts required pursuant to <u>Section 12.03</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Inability to Determine Rates</u>. Subject to <u>Section 12.01</u>, if, on or prior to the first day of any Pricing Period, Buyer determines (which determination shall be conclusive and binding absent manifest error) that reasonable and adequate means do not exist for the ascertaining Term SOFR, Buyer will promptly so notice Sellers. Upon any Seller's receipt of notice thereof, (A) such Seller may revoke any request for a proposed Transaction to be entered into and (B) the Pricing Rate shall be converted automatically to the Alternative Rate on the last day of the then current Pricing Period until Buyer revokes such notice.

Section 12.03 <u>Breakfunding</u>. Sellers shall jointly and severally indemnify Buyer and hold Buyer harmless from any loss, cost or expense (including reasonable and documented out-of-pocket legal fees and expenses) which Buyer may sustain or incur arising from (a) the failure by any Seller to terminate any Transaction after such Seller has given a notice of termination pursuant to <u>Section 3.05</u> except for any termination pursuant to <u>Section 12.02</u> hereof, (b) any payment to Buyer on account of the outstanding Repurchase Price, including a payment made pursuant to <u>Section 3.05</u> but excluding a payment made pursuant to <u>Section 5.03</u>, on any day other than a Distribution Date (based on the assumption that Buyer funded its commitment with respect to the Transaction in the SOFR market and using any reasonable attribution or averaging methods that Buyer deems appropriate and practical), (c) any failure by any Seller to sell Eligible Assets to Buyer after such Seller has notified Buyer of a proposed Transaction and Buyer has agreed to purchase such Eligible Assets in accordance with this Agreement, or (d) any conversion of the Pricing Rate to the Alternative Rate or the Benchmark Replacement on a day that is not the last day of the then current Pricing Period.

Section 12.04 <u>Increased Costs</u>. If the adoption of or any change in any Requirements of Law or in the interpretation or application thereof by any Governmental Authority or compliance by Buyer with any request or directive (whether or not having the force of law) from any central bank or other Governmental Authority having jurisdiction over Buyer made after the date of this Agreement (a) shall subject Buyer to any Taxes with respect to the Repurchase Documents, any Purchased Asset or any Transaction (except for: (i) Indemnified Taxes and Other Taxes, which shall be governed by <u>Section 12.06</u>, (ii) Excluded Taxes and (iii) any changes in the rate of tax on Buyer's overall net income), (b) shall impose, modify or hold applicable any reserve (including pursuant to regulations issued from time to time by the Board of Governors of the Federal Reserve System for determining the maximum reserve requirement (including any emergency, special, supplemental or other marginal reserve requirement) with respect to eurocurrency funding (currently referred to as "Eurocurrency liabilities" in Regulation D of the Board of Governors of the Federal Reserve System, as amended and in effect from time to time)), special deposit, compulsory loan or similar requirement (other than Taxes) against assets held by, deposits or other liabilities in or for the account of, advances, loans or other extensions of credit by, or any other acquisition of funds by, any office of Buyer, or (c) shall impose on Buyer any other condition (other than Taxes); and the result of any of the preceding clauses (a), (b) and (c) is to increase the cost to Buyer, by an amount that Buyer deems to be material, of entering into, continuing or maintaining Transactions, or to reduce any amount receivable under the Repurchase Documents in respect thereof, then, in any such case, Sellers shall pay to Buyer such additional amount or amounts as reasonably necessary to fully compensate Buyer for such increased cost or reduced amount receivable. In determining any additional amounts due under this <u>Section 12.04</u>, Buyer shall treat Sellers in the same manner it treats other similarly situated sellers in facilities with substantially similar collateral. Buyer will provide Sellers with no less than thirty (30) days prior notice of the implementation of any change or event pursuant to which additional amounts are due or will become due under this <u>Section 12.04</u> and Sellers shall have the right to terminate this Agreement without any breakage fees or other costs to Sellers in the event that Buyer requests additional amounts with respect to the implementation of any change or event pursuant to this <u>Section 12.04</u>.

Section 12.05 <u>Capital Adequacy</u>. If Buyer determines that the adoption of or any change in any Requirements of Law regarding capital adequacy or in the interpretation or application thereof or compliance by Buyer or any corporation Controlling Buyer with any request or directive regarding capital adequacy (whether or not having the force of law) from any Governmental Authority made after the date of this Agreement has or shall have the effect of reducing the rate of return on Buyer's or such corporation's capital as a consequence of its obligations hereunder to a level below that which Buyer or such corporation could have achieved but for such adoption, change or compliance (taking into consideration Buyer's or such corporation's policies with respect to capital adequacy) by an amount deemed by Buyer to be material, then, in any such case, Sellers shall pay to Buyer such additional amount or amounts as reasonably necessary to fully compensate Buyer for such reduction. In determining any additional amounts due under this <u>Section 12.05</u>, Buyer shall treat Sellers in the same manner it treats other similarly situated sellers in facilities with substantially similar collateral. Buyer will provide Sellers with no less than thirty (30) days prior notice of the implementation of any change or event pursuant to which additional amounts are due or will become due under this <u>Section 12.05</u> and Sellers shall have the right to terminate this Agreement without any breakage fees or other costs to Sellers in the event that Buyer implements any change or event pursuant to this <u>Section 12.05</u>.

Section 12.06 <u>Withholding Taxes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All payments made by any Seller to Buyer or any assignee of Buyer under the Repurchase Documents shall be made free and clear of and without deduction or withholding for any Taxes, except as required by law. If any Taxes are required by law (as determined in such Seller's good faith discretion) to be deducted or withheld from any amounts payable to Buyer or any assignee of Buyer, then such Seller shall (i) make such deduction or withholding, (ii) pay the amount so deducted or withheld to the appropriate Governmental Authority not later than the date when due and (iii) to the extent the withheld or deducted Tax is an Indemnified Tax, pay to Buyer or any assignee of Buyer such additional amounts as may be necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section) the applicable party receives an amount equal to the sum it would have received had no such deduction or withholding been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In addition, each Seller agrees to pay to the relevant Governmental Authority in accordance with applicable law any Other Taxes that arise from any payment made hereunder or from the execution, delivery or registration of, or otherwise with respect to, this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Sellers agree to jointly and severally indemnify Buyer or any assignee of Buyer, within 10 days after demand therefor, for the full amount of Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under <u>Section 12.06(a)</u>) payable or paid by such Buyer or any assignee of Buyer or required to be withheld or deducted from a payment to such Buyer or any assignee of Buyer and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Seller by Buyer or any assignee of Buyer shall be conclusive absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Buyer and any assignee of Buyer shall deliver to Sellers and Guarantor:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in the case of a Buyer or any assignee of Buyer which is a "United States person" as defined in section 7701(a)(30) of the Code, a properly completed and executed Internal Revenue Service ("<u>IRS</u>") Form W-9 certifying that it is not subject to backup withholding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the case of a Buyer or any assignee of Buyer which is not a "United States person" as defined in Code section 7701(a)(30): (A) a properly completed and executed IRS Form W-8BEN-E or W-8ECI, as appropriate, evidencing entitlement to a zero percent or reduced rate of U.S. federal income tax withholding on any payments made hereunder; (B) in the case of such non-U.S. Person claiming exemption from the withholding of U.S. federal income tax under Code sections 871(h) or 881(c) with respect to payments of "portfolio interest," a duly executed certificate to the effect that such non-United States person is not (x) a "bank" described in Code section 881(c)(3)(A), (y) a "10 percent shareholder" of any Seller, Guarantor of affiliate thereof, within the meaning of Code section 881(c)(3)(B), or (z) a "controlled foreign corporation" described in Code section 881(c)(3)(C) (a "U.S. Tax Compliance Certificate"); (C) to the extent such non-"United States person" is not the beneficial owner of the rights and obligations represented by this Agreement, executed copies of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN, IRS Form W-8-BEN-E, a U.S. Tax Compliance Certificate, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; provided that if such non-"United States Person" is a partnership and one or more direct or indirect partners of such non-"United States person" are claiming the portfolio interest exemption, such non-"United States person" may provide a U.S. Tax Compliance Certificate on behalf of each such direct and indirect partner; and (D) executed copies of any other form or supplementary documentation prescribed by law as a basis for claiming exemption from or a reduction in United States federal withholding tax together with such supplementary documentation as may be prescribed by law to permit Sellers or Guarantor to determine the withholding or deduction required to be made; provided, that such other form or supplementary documentation shall not be required if the delivery of such form of documentation would subject Buyer or the assignee of Buyer to any material unreimbursed expenses or would materially prejudice the legal or commercial position or would materially adversely affect such Buyer or such assignee of Buyer, as reasonably determined by Buyer or such assignee of Buyer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if a payment made to Buyer or an assignee of Buyer under this Agreement would be subject to U.S. federal withholding tax imposed by FATCA if such Buyer or assignee were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Buyer or assignee shall deliver to the related Seller or Guarantor at the time or times prescribed by law and at such time or times reasonably requested by such Seller such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by such Seller as may be necessary for such Seller to comply with its obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this <u>Section 12.06(d)</u>, "FATCA" shall include any amendments made to FATCA after the date of this Agreement.

The applicable IRS forms referred to above shall be delivered by Buyer on or before the Effective Date, and by each assignee of Buyer on or prior to the date of the assignment, to the extent permissible under applicable law at such respective times. Buyer agrees that if any form or certification previously delivered becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify Seller in writing of its legal inability to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If any party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this <u>Section 12.06</u> (including by the payment of additional amounts pursuant to <u>Section 12.06(a)</u>), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this Section with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this paragraph (e) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this paragraph (e), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this paragraph (e) the payment of which would place the indemnified party in a less favorable net after-tax position than the indemnified party would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Without prejudice to the survival of any other agreement of any Seller or Buyer hereunder, the agreements and obligations of each Seller and Buyer contained in this <u>Section 12.06</u> shall survive the termination of the Repurchase Documents, the repayment in full of the Repurchase Obligations or the assignment of any of the Parties' rights hereunder. Nothing contained in this <u>Section 12.06</u> shall require Buyer to make available any of its tax returns or other information that it deems to be confidential or proprietary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Promptly after any Seller pays any Taxes referred to in this <u>Section 12.06</u>, such Seller will send Buyer appropriate evidence of such payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Each party to this Agreement acknowledges that it is its intent for purposes of U.S. federal and relevant state and local income taxes to treat each Transaction as an indebtedness secured by the Purchased Assets, and the Purchased Assets as owned by any Seller (or any person from whom Seller is disregarded for U.S. federal income tax purposes), in the absence of an uncured Event of Default by such Seller and the exercise of foreclosure remedies on the Purchased Assets by Buyer. Buyer and Sellers agree that they will treat and report for all such purposes the Transactions entered into hereunder as described in the preceding sentence, unless otherwise required by a change in law or a final determination by any taxing authority. Buyer shall not assign its rights or create participations or similar ownership interests in the Purchased Assets in a manner that could cause any Seller or any portion of any Seller to be a "taxable mortgage pool" for U.S. federal income tax purposes.

Section 12.07 <u>Payment and Survival of Obligations</u>. Buyer may at any time send any Seller a notice showing the calculation of any amounts payable pursuant to this <u>Article 12</u>, and the related Seller shall pay such amounts to Buyer within ten (10) Business Days after Seller receives such notices absent manifest error. Subject to the limitations and obligations of a Participant in <u>Section 18.08</u>, the obligations of Sellers under this <u>Article 12</u> shall apply to Eligible Assignees and Participants and survive the termination of the Repurchase Documents and the indefeasible payment in full of the Repurchase Obligations.

**Article 13<br> INDEMNITY AND EXPENSES**

Section 13.01 <u>Indemnity</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Seller shall release, defend, indemnify and hold harmless Buyer, Affiliates of Buyer and its and their respective officers, directors, shareholders, partners, members, owners, employees, agents, attorneys, Affiliates and advisors (each an "<u>Indemnified Person</u>" and collectively the "<u>Indemnified Persons</u>"), on a net after-Tax basis, from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, fees, costs, expenses (including reasonable and documented out-of-pocket legal fees and expenses), penalties or fines of any kind that may be imposed on, incurred by or asserted against such Indemnified Person (collectively, the "<u>Indemnified Amounts</u>") in any way relating to, arising out of or resulting from or in connection with (i) the Repurchase Documents, the Records, the Purchased Assets, the Underlying Assets, any Underlying Trust, any REO Subsidiary or assets held or owned therein, the Transactions, any Mortgaged Property or related property, or any action taken or omitted to be taken by any Indemnified Person in connection with or under any of the foregoing, or any transaction contemplated hereby or thereby, or any amendment, supplement or modification of, or any waiver or consent under or in respect of any Repurchase Document, any Structural Agreement, any Transaction, any Purchased Asset or Records, (ii) any claims, actions or damages by an Underlying Obligor or lessee with respect to an Underlying Asset, (iii) any violation or alleged violation of, non-compliance with or liability under any Requirements of Law, (iv) ownership of, Liens on, security interests in or the exercise of rights or remedies under any of the items referred to in the preceding clause (i), (v) any accident, injury to or death of any person or loss of or damage to property occurring in, on or about any Mortgaged Property or on the adjoining sidewalks, curbs, parking areas, streets or ways, (vi) any use, nonuse or condition in, on or about, or possession, alteration, repair, operation, maintenance or management of, any Mortgaged Property or on the adjoining sidewalks, curbs, parking areas, streets or ways, (vii) any failure by any Seller to perform or comply with any Repurchase Document, Asset Document or Purchased Asset, (viii) any claim by brokers, finders or similar Persons claiming to be entitled to a commission in connection with any lease or other transaction involving any Repurchase Document, Underlying Asset or Mortgaged Property, (ix) any Lien or claim arising on or against any Underlying Asset or related Mortgaged Property under any Requirements of Law or any liability asserted against Buyer or any Indemnified Person with respect thereto, (x) (1) a past, present or future violation or alleged violation of any Environmental Laws in connection with any property or Mortgaged Property by any Person or other source, whether related or unrelated to Seller or any Underlying Obligor, (2) any presence of any Materials of Environmental Concern in, on, within, above, under, near, affecting or emanating from any Mortgaged Property, (3) the failure to timely perform any Remedial Work, (4) any past, present or future activity by any Person or other source, whether related or unrelated to any Seller or any Underlying Obligor in connection with any actual, proposed or threatened use, treatment, storage, holding, existence, disposition or other release, generation, production, manufacturing, processing, refining, control, management, abatement, removal, handling, transfer or transportation to or from any Mortgaged Property of any Materials of Environmental Concern at any time located in, under, on, above or affecting any Mortgaged Property, (5) any past, present or future actual Release (whether intentional or unintentional, direct or indirect, foreseeable or unforeseeable) to, from, on, within, in, under, near or affecting any Mortgaged Property by any Person or other source, whether related or unrelated to any Seller or any Underlying Obligor, (6) the imposition, recording or filing or the threatened imposition, recording or filing of any Lien on any Mortgaged Property with regard to, or as a result of, any Materials of Environmental Concern or pursuant to any Environmental Law, or (7) any misrepresentation or failure to perform any obligations pursuant to any Repurchase Document or Asset Document relating to environmental matters in any way, or (xi) any Seller's conduct, activities, actions and/or inactions in connection with, relating to or arising out of any of the foregoing clauses of this <u>Section 13.01</u>, that, in each case, results from anything whatsoever other than any Indemnified Person's gross negligence or intentional misconduct, as determined by a court of competent jurisdiction. In any suit, proceeding or action brought by an Indemnified Person in connection with any Purchased Asset or Underlying Asset for any sum owing thereunder, or to enforce any provisions of any Underlying Asset, Sellers shall defend, indemnify and hold such Indemnified Person harmless from and against all expense, loss or damage suffered by reason of any defense, setoff, counterclaim, recoupment or reduction of liability whatsoever of the account debtor or Underlying Obligor arising out of a breach by any Seller of any obligation thereunder or arising out of any other agreement, indebtedness or liability at any time owing to or in favor of such account debtor or Underlying Obligor from such Seller. In the case of an investigation, litigation or other proceeding to which the indemnity in this <u>Section 13.01</u> applies, such indemnity shall be effective whether or not such investigation, litigation or proceeding is brought by any Seller, an Indemnified Person or any other Person or any Indemnified Person is otherwise a party thereto and whether or not any Transaction is entered into. This <u>Section 13.01</u> shall not apply with respect to Taxes, unless such Taxes represent losses, claims, damages, etc. arising from any non-Tax claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If for any reason the indemnification provided in this <u>Section 13.01</u> is unavailable to the Indemnified Person or is insufficient to hold an Indemnified Person harmless, even though such Indemnified Person is entitled to indemnification under the express terms thereof, then Sellers shall contribute to the amount paid or payable by such Indemnified Person as a result of such loss, claim, damage or liability in such proportion as is appropriate to reflect the relative benefits received by such Indemnified Person on the one hand and Sellers on the other hand, the relative fault of such Indemnified Person, and any other relevant equitable considerations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) An Indemnified Person may at any time send Sellers a notice showing the calculation of Indemnified Amounts, and Sellers shall pay such Indemnified Amounts to such Indemnified Person within ten (10) Business Days after Sellers receive such notices. The obligations of Sellers under this <u>Section 13.01</u> shall apply to Eligible Assignees and Participants and survive the termination of the Repurchase Documents and the repayment in full of the Repurchase Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No Indemnified Person shall settle any claim that is subject to indemnification hereunder without Sellers' prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed, and which consent shall not be required if Sellers are not performing in compliance with the other provisions of this <u>Section 13.01</u>.

Section 13.02 <u>Expenses</u>. Sellers shall promptly on demand pay to or as directed by Buyer all third-party out-of-pocket costs and expenses (including reasonable and documented out-of-pocket legal, accounting and advisory fees and expenses) incurred by Buyer in connection with (a) the enforcement of the Repurchase Documents or the payment or performance by any Seller of any Repurchase Obligations, and (b) any actual or attempted sale, exchange, enforcement, collection, compromise or settlement relating to the Purchased Assets and/or Underlying Assets. Each of the Parties to this Agreement is responsible for its own costs and expenses in connection with the execution and delivery of this Agreement and any other Repurchase Document; <u>provided</u>, that the costs and expenses of the Trustees shall be borne by the related Trust or the related depositor pursuant to the terms of the related Trust Agreement.

**Article 14<br> INTENT**

Section 14.01 <u>Intent</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Parties intend (i) for this Agreement and each Transaction hereunder to qualify for the safe harbor treatment provided by the Bankruptcy Code and for Buyer to be entitled to all of the rights, benefits and protections afforded to Persons under the Bankruptcy Code with respect to a "securities contract" as defined in Section 741(7) of the Bankruptcy Code and a "master netting agreement" as defined in Section 101(38A) of the Bankruptcy Code, and that payments under this Agreement are deemed "margin payments" or "settlement payments," as defined in Section 101 of the Bankruptcy Code, (ii) for the grant of a security interest set forth in Article 11 to also be a "securities contract" as defined in Section 741(7)(A)(xi) of the Bankruptcy Code, a "master netting agreement" as defined in Section 101(38A) of the Bankruptcy Code, (iii) each of the Guarantee Agreement, the Pledge Agreement and the Residual Pledge Agreements constitutes "a security agreement or other arrangement or other credit enhancement" that is "related to" the Agreement and Transactions hereunder within the meaning of Sections 101(47)(A)(v) and 741(7)(A)(xi) of the Bankruptcy Code, and (iv) that Buyer (for so long as Buyer is a "financial institution," "financial participant" or other entity listed in Section 555, 559, 561, 362(b)(6), 362(b)(7) or 362(b)(27) of the Bankruptcy Code) shall be entitled to the "safe harbor" benefits and protections afforded under the Bankruptcy Code with respect to a "securities contract" and a "master netting agreement" including (x) the rights, set forth in Article 10 and in Section 555, 559 and 561 of the Bankruptcy Code, to liquidate the Purchased Assets and/or Underlying Assets and terminate this Agreement, (y) the right to offset or net out as set forth in Article 10 and Section 18.18 and in Sections 362(b)(6), 362(b)(7) or 362(b)(27) of the Bankruptcy Code, and (z) the non-avoidability of transfers made in connection with this Agreement as set forth in Sections 546(e), 546(f) and 546(j) of the Bankruptcy Code. Each party hereby agrees that it shall not challenge the characterization of any Transaction under this Agreement or this Agreement as a "master netting agreement" and/or "securities contract" within the meaning of the Bankruptcy Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Seller intends and affirms that: (1) the Buyer is (for so long as the Buyer is a "financial institution," "financial participant" or other entity listed in Sections 555, 559, 561, 362(b)(6), 362(b)(7) or 362(b)(27) of the Bankruptcy Code) entitled to, without limitation, the liquidation, termination, acceleration, set-off, and non-avoidability rights afforded to parties, such as the Buyer, who are parties to a "securities contract" pursuant to Sections 555, 362(b)(6) and 546(e) of the Bankruptcy Code; and a "master netting agreement" pursuant to Section 561, 362(b)(27) and 546(j) of the Bankruptcy Code; and (2) the Buyer's right to liquidate the Purchased Assets delivered to it in connection with the Transactions hereunder or to accelerate or terminate this Agreement or otherwise exercise any other remedies pursuant to Articles 10 and 11 and as otherwise provided in the Repurchase Documents is a contractual right to liquidate, accelerate or terminate such Transaction as described in Sections 555, 559 and 561 of the Bankruptcy Code. The parties also recognize, intend and agree that this Agreement is an agreement to provide financial accommodations and is not subject to assumption pursuant to Section 365(a) of the Bankruptcy Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each party agrees that this Agreement and each Transaction hereunder is intended to create mutuality of obligations among the parties, and as such, the Agreement and each Transaction constitutes a contract which (i) is between all of the parties and (ii) places each party in the same right and capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Parties acknowledge and agree that if a Party is an "insured depository institution," as such term is defined in the Federal Deposit Insurance Act, as amended ("<u>FDIA</u>"), then each Transaction hereunder is a "qualified financial contract," as that term is defined in FDIA and any rules, orders or policy statements thereunder (except insofar as the type of assets subject to such Transaction would render such definition inapplicable).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Parties acknowledge and agree that this Agreement constitutes a "netting contract" as defined in and subject to Title IV of the Federal Deposit Insurance Corporation Improvement Act of 1991 ("<u>FDICIA</u>") and each payment entitlement and payment obligation under any Transaction shall constitute a "covered contractual payment entitlement" or "covered contractual payment obligation," respectively, as defined in and subject to FDICIA (except insofar as one or both of the parties is not a "financial institution" as that term is defined in FDICIA).

**Article 15<br> DISCLOSURE RELATING TO CERTAIN FEDERAL PROTECTIONS**

Section 15.01 <u>Disclosure</u>. The Parties acknowledge that they have been advised and understand that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in the case of Transactions in which one of the Parties is a broker or dealer registered with the Securities and Exchange Commission under Section 14 of the Securities Exchange Act of 1934, the Securities Investor Protection Corporation has taken the position that the provisions of the Securities Investor Protection Act of 1970 do not protect the other Party with respect to any Transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the case of Transactions in which one of the Parties is a government securities broker or a government securities dealer registered with the Securities and Exchange Commission under Section 14C of the Securities Exchange Act of 1934, the Securities Investor Protection Act of 1970 will not provide protection to the other Party with respect to any Transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in the case of Transactions in which one of the Parties is a financial institution, funds held by the financial institution pursuant to a Transaction are not a deposit and therefore are not insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund, as applicable; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) in the case of Transactions in which one of the Parties is an "insured depository institution" as that term is defined in Section 1813(c)(2) of Title 12 of the United States Code, funds held by the financial institution pursuant to a Transaction are not a deposit and therefore are not insured by the Federal Deposit Insurance Corporation, the Savings Association Insurance Fund or the Bank Insurance Fund, as applicable.

**Article 16<br> NO RELIANCE**

Section 16.01 <u>No Reliance</u>. Each Party acknowledges, represents and warrants to the other Party that, in connection with the negotiation of, entering into, and performance under, the Repurchase Documents and each Transaction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it is not relying (for purposes of making any investment decision or otherwise) on any advice, counsel or representations (whether written or oral) of the other Party, other than the representations expressly set forth in the Repurchase Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it has consulted with its own legal, regulatory, tax, business, investment, financial and accounting advisors to the extent that it has deemed necessary, and it has made its own investment, hedging and trading decisions (including decisions regarding the suitability of any Transaction) based on its own judgment and on any advice from such advisors as it has deemed necessary and not on any view expressed by the other Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) it is a sophisticated and informed Person that has a full understanding of all the terms, conditions and risks (economic and otherwise) of the Repurchase Documents and each Transaction and is capable of assuming and willing to assume (financially and otherwise) those risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) it is entering into the Repurchase Documents and each Transaction for the purposes of managing its borrowings or investments or hedging its underlying assets or liabilities and not for purposes of speculation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) it is not acting as a fiduciary or financial, investment or commodity trading advisor for the other Party and has not given the other Party (directly or indirectly through any other Person) any assurance, guaranty or representation whatsoever as to the merits (either legal, regulatory, tax, business, investment, financial accounting or otherwise) of the Repurchase Documents or any Transaction; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) no partnership or joint venture exists or will exist as a result of the Transactions or entering into and performing the Repurchase Documents.

**Article 17<br> SERVICING**

This Article 17 shall apply to all Underlying Assets to the extent that the servicing thereof is within the direct or indirect control of any Seller or an Affiliate of any Seller.

Section 17.01 <u>Servicing</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) During the period any Underlying Assets are subject to a Transaction hereunder, each Seller agrees that (i) each Trustee on behalf of a CLT, each DST or each REO Subsidiary, as applicable, is the owner of the related Servicing Rights and all Servicing Files, for the exclusive benefit of the holder of the related Trust Certificate or Capital Stock, and (ii) the related Servicer shall service such Underlying Assets for the exclusive benefit of Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Seller shall contract with the Servicer to service the Underlying Assets consistent with the degree of skill and care that such Seller customarily requires with respect to similar Underlying Assets owned or managed by it and in accordance with the Servicing Agreement, which contract shall be collaterally assigned to Buyer to the extent it relates to the Underlying Assets. Each Servicer shall also (i) comply with all applicable Federal, State and local laws and regulations, (ii) maintain all state and federal licenses necessary for it to perform its servicing responsibilities hereunder and (iii) not impair the rights of Buyer in any Underlying Assets or any payment thereunder. The servicing of any Underlying Assets with the then-existing Servicer may be terminated in accordance with <u>Section 17.01(f)</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Seller shall cause the related Servicer to service the Mortgage Loans and manage the REO Properties in accordance with the Servicing Agreement and consistent with the degree of skill and care that Sellers customarily require with respect to similar Mortgage Loans owned or managed by it and in accordance with Accepted Servicing Practices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) At least one (1) Business Day prior to each Remittance Date, each Seller shall cause the Servicer to deposit all Income and Escrow Payments received and identified by the Servicer on the related Underlying Assets into the applicable Waterfall Account in accordance with <u>Section 5.01</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) As a condition precedent to Buyer funding any Transactions hereunder and following the termination of any Servicer pursuant to the terms hereof and upon the appointment of any successor Servicer, the Sellers shall provide promptly to Buyer a Servicer Letter Agreement addressed to and executed by such Servicer, advising such Servicer of such matters as Buyer may reasonably request, including the Servicer's agreement that upon receipt of notice of an Event of Default from Buyer, it will follow the instructions of Buyer with respect to the Underlying Assets and any related Income and Escrow Payments with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Upon prior written notice following the occurrence and during the continuance of an Event of Default or Servicer Termination Event, Buyer shall have the right to terminate the Servicer's right to service the Underlying Assets without payment of any termination fee, in accordance with the terms of the related Servicer Letter Agreement. Upon receipt of such notice or upon resignation of Servicer each Seller and each Servicer shall cooperate in transferring the servicing of the Underlying Assets to a successor servicer appointed by Buyer or its designee, at no cost or expense to Buyer, it being agreed that the Sellers will pay any fees and expenses required to terminate the then-current Servicing Agreement and transfer servicing. Upon the occurrence and during the continuance of an Event of Default, Buyer shall have the right to appoint such successor in its sole and absolute discretion. Provided no Event of Default has occurred and is continuing, upon a Servicer Termination Event, the Sellers shall have the right to identify and appoint a successor Servicer provided that (i) Sellers identify such successor within thirty (30) days of the related event which successor is another servicer approved by Buyer (in its sole discretion) and (ii) Sellers cause such appointed servicer to accept a servicing transfer within ninety (90) days of identification of such successor servicer. If Sellers do not satisfy clauses (i) or (ii) of the proceeding sentence, Buyer shall have the right to appoint such successor in its sole discretion. If any Seller should discover that, for any reason whatsoever, such Seller or any entity responsible to such Seller for managing or servicing any Underlying Assets has failed to perform its obligations under the related Repurchase Documents or any of the obligations of such entities with respect to the Underlying Assets in any material respect, such Seller shall promptly notify Buyer in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Upon the termination of any Servicer's rights to service the Underlying Assets, Sellers shall cause such Servicer to deliver all Servicing Files and the physical and contractual servicing to the designee of Buyer within thirty (30) days of such termination, unless otherwise directed in writing by Buyer. Such delivery of the Servicing Files by such Servicer shall be in accordance with customary and prudent mortgage banking standards for the delivery of servicing for assets similar to the Underlying Assets and such transfer shall include the transfer of the gross amount of all escrows held for the related mortgagors (without reduction for unreimbursed advances or "negative escrows").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Buyer shall have the right to appoint a third party to perform due diligence with respect to any Servicer at any time. Sellers shall permit Buyer to inspect upon reasonable prior written notice at a mutually convenient time, any Servicer's servicing facilities, as the case may be, for the purpose of satisfying Buyer that such Servicer has the ability to service the Underlying Assets as provided in this Agreement; provided that Sellers shall be responsible for the reasonable and documented out-of-pocket costs and expenses associated with no more than one (1) on-site visit per calendar year unless an Event of Default has occurred in which case such reimbursement shall be unlimited. In addition, at any time that any Servicer is not an Affiliate of any Seller, each Seller shall use its best efforts to enable Buyer to inspect the servicing facilities of such Servicer and to cause such Servicer to cooperate with Buyer and/or its designees in connection with any due diligence performed by Buyer and/or such designees in accordance with this <u>Section 17.01(h)</u>, provided that Sellers shall be responsible for the reasonable and documented out-of-pocket costs and expenses associated with no more than one (1) on-site visit per calendar year unless an Event of Default has occurred in which case such reimbursement shall be unlimited. Each Seller and Buyer further agree that all reasonable out-of-pocket costs and expenses incurred by Buyer in connection with any due diligence or inspection performed pursuant to this <u>Section 17.01(h)</u> shall be paid by Sellers, subject to the cap set forth in <u>Section 6.02(c)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No Underlying Asset may be interim serviced by an Interim Servicer for a period greater than sixty (60) days following such Underlying Asset becoming subject to a Transaction.

Section 17.02 <u>Fees and Expenses of Servicer</u>. All fees and expenses of any Servicer shall be borne solely by Sellers.

**Article 18<br> MISCELLANEOUS**

Section 18.01 <u>GOVERNING LAW</u>. THIS AGREEMENT AND ANY CLAIM, DISPUTE OR CONTROVERSY ARISING UNDER OR RELATED TO THIS AGREEMENT OR ANY OF THE OTHER REPURCHASE DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO CONFLICTS OF LAWS PRINCIPLES THEREOF OTHER THAN SECTION 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW, WHICH SHALL GOVERN.

Section 18.02 <u>SUBMISSION TO JURISDICTION; SERVICE OF PROCESS</u>. EACH PARTY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN THE BOROUGH OF MANHATTAN AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THE REPURCHASE DOCUMENTS, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH PARTY IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH PARTY AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR THE OTHER REPURCHASE DOCUMENTS SHALL AFFECT ANY RIGHT THAT BUYER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THE REPURCHASE DOCUMENTS AGAINST ANY SELLER OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION. EACH SELLER IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY REQUIREMENTS OF LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THE REPURCHASE DOCUMENTS IN ANY COURT REFERRED TO ABOVE, AND THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT. EACH PARTY IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 18.12. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

Section 18.03 <u>IMPORTANT WAIVERS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) TO THE EXTENT PERMITTED BY REQUIREMENTS OF LAW, EACH PARTY HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE BETWEEN THEM, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, ARISING OUT OF, CONNECTED WITH OR RELATED TO THE REPURCHASE DOCUMENTS, THE PURCHASED ASSETS, THE TRANSACTIONS, ANY DEALINGS OR COURSE OF CONDUCT BETWEEN THEM, OR ANY STATEMENTS (WRITTEN OR ORAL) OR OTHER ACTIONS OF EITHER PARTY. NO PARTY WILL SEEK TO CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED. INSTEAD, ANY SUCH DISPUTE RESOLVED IN COURT WILL BE RESOLVED IN A BENCH TRIAL WITHOUT A JURY.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) TO THE EXTENT PERMITTED BY REQUIREMENTS OF LAW, EACH PARTY HEREBY WAIVES ANY RIGHT TO CLAIM OR RECOVER IN ANY LITIGATION WHATSOEVER WHETHER OR NOT INVOLVING ANY INDEMNIFIED PERSON, ANY SPECIAL, EXEMPLARY, PUNITIVE, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY KIND OR NATURE WHATSOEVER OR ANY DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES, WHETHER SUCH WAIVED DAMAGES ARE BASED ON STATUTE, CONTRACT, TORT, COMMON LAW OR ANY OTHER LEGAL THEORY, WHETHER THE LIKELIHOOD OF SUCH DAMAGES WAS KNOWN AND REGARDLESS OF THE FORM OF THE CLAIM OF ACTION. NO PARTY SHALL BE LIABLE FOR ANY DAMAGES ARISING FROM THE USE BY UNINTENDED RECIPIENTS OF ANY INFORMATION OR OTHER MATERIALS DISTRIBUTED BY IT THROUGH TELECOMMUNICATIONS, ELECTRONIC OR OTHER INFORMATION TRANSMISSION SYSTEMS IN CONNECTION WITH ANY REPURCHASE DOCUMENT OR THE TRANSACTIONS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) EACH PARTY CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF BUYER OR AN INDEMNIFIED PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT ANY OTHER PARTY OR AN INDEMNIFIED PERSON WOULD NOT SEEK TO ENFORCE ANY OF THE WAIVERS IN THIS SECTION 18.03 IN THE EVENT OF LITIGATION OR OTHER CIRCUMSTANCES. THE SCOPE OF SUCH WAIVERS IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THE REPURCHASE DOCUMENTS, REGARDLESS OF THEIR LEGAL THEORY.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) EACH PARTY ACKNOWLEDGES THAT THE WAIVERS IN THIS SECTION 18.03 ARE A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT SUCH PARTY HAS ALREADY RELIED ON SUCH WAIVERS IN ENTERING INTO THE REPURCHASE DOCUMENTS, AND THAT SUCH PARTY WILL CONTINUE TO RELY ON SUCH WAIVERS IN THEIR RELATED FUTURE DEALINGS UNDER THE REPURCHASE DOCUMENTS. EACH PARTY FURTHER REPRESENTS AND WARRANTS THAT IT HAS REVIEWED SUCH WAIVERS WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL AND OTHER RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) THE WAIVERS IN THIS SECTION 18.03 ARE IRREVOCABLE, MEANING THAT THEY MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND SHALL APPLY TO ANY AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO ANY OF THE REPURCHASE DOCUMENTS. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) THE PROVISIONS OF THIS SECTION 18.03 SHALL SURVIVE TERMINATION OF THE REPURCHASE DOCUMENTS AND THE INDEFEASIBLE PAYMENT IN FULL OF THE REPURCHASE OBLIGATIONS.

Section 18.04 <u>Integration</u>. The Repurchase Documents supersede and integrate all previous negotiations, contracts, agreements and understandings (whether written or oral) between the Parties, relating to a sale and repurchase of Purchased Assets and the other matters addressed by the Repurchase Documents, and contain the entire final agreement of the Parties relating to the subject matter thereof.

Section 18.05 <u>Single Agreement</u>. Each Seller agrees that (a) each Transaction is in consideration of and in reliance on the fact that all Transactions constitute a single business and contractual relationship, and that each Transaction has been entered into in consideration of the other Transactions, (b) a default by it in the payment or performance of any its obligations under a Transaction shall constitute a default by it with respect to all Transactions, (c) Buyer may set off claims and apply properties and assets held by or on behalf of Buyer with respect to any Transaction against the Repurchase Obligations owing to Buyer with respect to other Transactions, and (d) payments, deliveries and other transfers made by or on behalf of any Seller with respect to any Transaction shall be deemed to have been made in consideration of payments, deliveries and other transfers with respect to all Transactions, and the obligations of any Seller to make any such payments, deliveries and other transfers may be applied against each other and netted.

Section 18.06 <u>Use of Employee Plan Assets</u>. Each Party covenants that it will not use "plan assets" within the meaning of 29 C.F.R. Section 2510.3-101, as modified by Section 3(42) of ERISA in any Transaction.

Section 18.07 <u>Survival and Benefit of Sellers' Agreements</u>. The Repurchase Documents and all Transactions shall be binding on and shall inure to the benefit of the Parties and their successors and permitted assigns. All of Sellers' representations, warranties, agreements and indemnities in the Repurchase Documents shall survive the termination of the Repurchase Documents and the payment in full of the Repurchase Obligations, and shall apply to and benefit all Indemnified Persons, Buyer and its successors and assigns, Eligible Assignees and Participants. No other Person shall be entitled to any benefit, right, power, remedy or claim under the Repurchase Documents.

Section 18.08 <u>Assignments and Participations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No Seller shall sell, assign or transfer any of its rights or the Repurchase Obligations or delegate its duties under this Agreement or any other Repurchase Document without the prior written consent of Buyer, and any attempt by any Seller to do so without such consent shall be null and void.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Buyer may at any time, without the consent of or notice to any Seller or Guarantor, sell participations to any Person (other than a natural person or any Seller, Guarantor or any Affiliate of Seller or Guarantor) (a "<u>Participant</u>") in all or any portion of Buyer's rights and/or obligations under the Repurchase Documents; provided, that (i) Buyer's obligations under the Repurchase Documents shall remain unchanged, (ii) Buyer shall remain solely responsible to Sellers for the performance of such obligations, and (iii) Sellers shall continue to deal solely and directly with Buyer in connection with Buyer's rights and obligations under the Repurchase Documents. No Participant shall have any right to approve any amendment, waiver or consent with respect to any Repurchase Document, except to the extent that the Repurchase Price or Price Differential of any Purchased Asset would be reduced or the Repurchase Date of any Purchased Asset would be postponed. Each Participant shall be entitled to the benefits of Article 12 (it being understood that the documentation required under Section 12.06(d) shall be delivered to the participating Buyer) to the same extent as if it had acquired its interest by assignment pursuant to <u>Section 18.08(c)</u>, but shall not be entitled to receive any greater payment thereunder than Buyer would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with Sellers' prior written consent. To the extent permitted by Requirements of Law, each Participant shall be entitled to the benefits of <u>Sections 10.02(j)</u> and <u>18.18</u> to the same extent as if it had acquired its interest by assignment pursuant to <u>Section 18.08(c)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Buyer may at any time, without consent of any Seller or Guarantor but upon notice to Sellers, sell and assign to any Eligible Assignee all or any portion of all of the rights and obligations or duties of Buyer under the Repurchase Documents. Each such assignment shall be made pursuant to an Assignment and Acceptance substantially in the form of <u>Exhibit J</u> (an "<u>Assignment and Acceptance</u>"). From and after the effective date of such Assignment and Acceptance, (i) such Eligible Assignee shall be a Party and, to the extent provided therein, have the rights and obligations of Buyer under the Repurchase Documents with respect to the percentage and amount of the Repurchase Price allocated to it, (ii) Buyer shall, to the extent provided therein, be released from such obligations (and, in the case of an Assignment and Acceptance covering all or the remaining portion of Buyer's rights and obligations under the Repurchase Documents, Buyer shall cease to be a Party), (iii) the obligations of Buyer shall be deemed to be so reduced, and (iv) Buyer will give prompt written notice thereof (including identification of the Eligible Assignee and the amount of Repurchase Price allocated to it) to each Party (but Buyer shall not have any liability for any failure to timely provide such notice). Any sale or assignment by Buyer of rights or obligations under the Repurchase Documents that does not comply with this <u>Section 18.08(c)</u> shall be treated for purposes of the Repurchase Documents as a sale by such Buyer of a participation in such rights and obligations in accordance with <u>Section 18.08(b)</u>; provided, that no assignee shall be entitled to receive any greater payment thereunder than Buyer would have been entitled to receive had the assignment not occurred, unless the assignment is made with Sellers' prior written consent. The Buyer shall maintain at one of its offices a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the applicable assignees hereunder and the amount of each such assignee's interest in the Purchased Assets (the "<u>Register</u>"). Notwithstanding anything to the contrary herein, the entries in the Register shall be conclusive absent manifest error, and Seller and Buyer shall treat each person whose name is recorded in the Register pursuant to the terms hereof as a Buyer hereunder for all purposes of this Agreement. The Register shall be available for inspection by the Seller upon reasonable prior notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Sellers shall cooperate reasonably with Buyer in connection with any such sale and assignment of participations or assignments and shall enter into such restatements of, and amendments, supplements and other modifications to, the Repurchase Documents to give effect to any such sale or assignment; provided, that none of the foregoing shall change any economic or other material term of the Repurchase Documents in a manner adverse to Sellers without the consent of Sellers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Buyer shall have the right to partially or completely syndicate and or all of its rights under the Agreement and the other Repurchase Documents to any Eligible Assignee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If Buyer sells a participation with respect to its rights under this Agreement or under any other Repurchase Document with respect to the Purchased Assets, Buyer, acting for this purposes as a non-fiduciary agent of Seller, shall maintain a record of ownership (the "<u>Participant Register</u>") identifying the name and address of each participant and the amount of each such participant's interest in the Purchased Assets; provided that Buyer and any such other participant shall not have any obligation to disclose all or any portion of the Participant Register (including the identity of any participant or any information related to a participant's interest in any Repurchase Document) to any Person except to the extent necessary to establish that such interests are in registered form under Section 5f.103-1(c) of the Treasury Regulations. Notwithstanding anything to the contrary herein, the entries in the Participant Register shall be conclusive absent manifest error and Buyer shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.

Section 18.09 <u>Ownership and Hypothecation of Purchased Assets</u>. Title to all Purchased Assets shall pass to and vest in Buyer on the applicable Purchase Dates. Subject to the terms of the Repurchase Documents, Buyer or its designee shall have free and unrestricted use of all Purchased Assets and be entitled to exercise all rights, privileges and options relating to the Purchased Assets as the owner thereof, including rights of subscription, conversion, exchange, substitution, voting, consent and approval, and to direct any servicer or trustee. Subject to the applicable Seller's prior written consent, Buyer or its designee may engage in repurchase transactions with the Purchased Assets or otherwise sell, pledge, repledge, transfer, hypothecate, or rehypothecate the Purchased Assets, all on terms that Buyer may determine; provided, that no such transaction shall affect the obligations of Buyer to transfer the Purchased Assets to the applicable Seller on the applicable Repurchase Dates free and clear of any pledge, Lien, security interest, encumbrance, charge or other adverse claim. In the event Buyer engages in a repurchase transaction with any of the Purchased Assets or otherwise pledges or hypothecates any of the Purchased Assets, Buyer shall have the right to assign to Buyer's counterparty any of the applicable representations or warranties herein and the remedies for breach thereof, as they relate to the Purchased Assets that are subject to such repurchase transaction.

Section 18.10 <u>Confidentiality</u>. All information regarding the terms set forth in any of the Repurchase Documents or the Transactions shall be kept confidential and shall not be disclosed by either Party to any Person except (a) to the Affiliates of such Party or its or their respective directors, officers, employees, agents, advisors and other representatives who are informed of the confidential nature of such information and instructed to keep it confidential, (b) to the extent requested by any regulatory authority or required by Requirements of Law, (c) to the extent required to be included in the financial statements of either Party or an Affiliate thereof, (d) to the extent required to exercise any rights or remedies under the Repurchase Documents, Purchased Assets or Underlying Assets, (e) to the extent required to consummate and administer a Transaction, (f) to any actual or prospective Participant or Eligible Assignee which agrees to comply with this <u>Section 18.10</u>; provided, that no such disclosure made with respect to any Repurchase Document shall include a copy of such Repurchase Document to the extent that a summary would suffice, but if it is necessary for a copy of any Repurchase Document to be disclosed, all pricing and other economic terms set forth therein shall be redacted before disclosure to the extent permitted by applicable law.

Section 18.11 <u>No Implied Waivers</u>. No failure on the part of Buyer to exercise, or delay in exercising, any right or remedy under the Repurchase Documents shall operate as a waiver thereof; nor shall any single or partial exercise of any right or remedy thereunder preclude any further exercise thereof or the exercise of any other right. The rights and remedies in the Repurchase Documents are cumulative and not exclusive of any rights and remedies provided by law. Application of the Default Rate after an Event of Default shall not be deemed to constitute a waiver of any Event of Default or Buyer's rights and remedies with respect thereto, or a consent to any extension of time for the payment or performance of any obligation with respect to which the Default Rate is applied. Except as otherwise expressly provided in the Repurchase Documents, no amendment, waiver or other modification of any provision of the Repurchase Documents shall be effective without the signed agreement of Sellers and Buyer. Any waiver or consent under the Repurchase Documents shall be effective only if it is in writing and only in the specific instance and for the specific purpose for which given.

Section 18.12 <u>Notices and Other Communications</u>. Unless otherwise provided in this Agreement, all notices, consents, approvals, requests and other communications required or permitted to be given to a Party hereunder shall be in writing and sent prepaid by hand delivery, by certified or registered mail, by expedited commercial or postal delivery service, or by facsimile or email, to the address for such Party specified in Schedule 2 or such other address as such Party shall specify from time to time in a notice to the other Party. Any of the foregoing communications shall be effective when delivered or upon the first attempted delivery on a Business Day. A Party receiving a notice that does not comply with the technical requirements of this <u>Section 18.12</u> may elect to waive any deficiencies and treat the notice as having been properly given. Anything in this Agreement or any Repurchase Document to the contrary notwithstanding, any financial statements required to be delivered by or on behalf of any Seller, Guarantor, any Underlying Trust or REO Subsidiary under this Agreement or any Repurchase Document shall not be required to be delivered to the extent that such financial statements have been made publicly available by or on behalf of such Seller, Guarantor, Underlying Trust or REO Subsidiary.

Section 18.13 <u>Counterparts; Electronic Transmission</u>. This Agreement and any other Repurchase Document may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument. The parties agree that this Agreement, any documents to be delivered pursuant to this Agreement, any other Repurchase Document and any notices hereunder may be transmitted between them by email and/or facsimile. The parties intend that faxed signatures and electronically imaged signatures such as .pdf files shall constitute original signatures and are binding on all parties.

Section 18.14 <u>No Personal Liability</u>. No administrator, incorporator, Affiliate, owner, member, partner, stockholder, officer, director, employee, agent or attorney of Buyer, any Indemnified Person, any Seller or Guarantor, as such, shall be subject to any recourse or personal liability under or with respect to any obligation of Buyer, any Seller or Guarantor under the Repurchase Documents, whether by the enforcement of any assessment, by any legal or equitable proceeding, by virtue of any statute or otherwise; it being expressly agreed that the obligations of Buyer, each Seller and Guarantor under the Repurchase Documents are solely their respective corporate, limited liability company or partnership obligations, as applicable, and that any such recourse or personal liability is hereby expressly waived. This <u>Section 18.14</u> shall survive the termination of the Repurchase Documents and the repayment in full of the Repurchase Obligations.

Section 18.15 <u>Protection of Buyer's Interests in the Purchased Assets; Further Assurances</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Seller shall cause the Repurchase Documents and/or all financing statements and continuation statements and any other necessary documents covering the right, title and interest of Buyer to the Purchased Assets to be promptly recorded, registered and filed, and at all times to be kept recorded, registered and filed, all in such manner and in such places as may be required by law fully to preserve and protect such right, title and interest. Each Seller shall deliver to Buyer file-stamped copies of, or filing receipts for, any document recorded, registered or filed as provided above, as soon as available following such recording, registration or filing. Each Seller shall execute any and all documents reasonably required to fulfill the intent of this <u>Section 18.15</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Seller will promptly at its expense execute and deliver such instruments and documents and take such other actions as Buyer may reasonably request from time to time in order to perfect, protect, evidence, exercise and enforce Buyer's rights and remedies under and with respect to the Repurchase Documents, the Transactions and the Purchased Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If any Seller fails to perform any of its Repurchase Obligations, Buyer may (but shall not be required to) perform or cause to be performed such Repurchase Obligation, and the costs and expenses incurred by Buyer in connection therewith shall be payable by such Seller. Without limiting the generality of the foregoing, each Seller authorizes Buyer, at the option of Buyer and the expense of such Seller, at any time and from time to time, to take all actions and pay all amounts that Buyer deems necessary or appropriate to protect, enforce, preserve, insure, service, administer, manage, perform, maintain, safeguard, collect or realize on the Purchased Assets and Buyer's Liens and interests therein or thereon and to give effect to the intent of the Repurchase Documents. No Default or Event of Default shall be cured by the payment or performance of any Repurchase Obligation by Buyer on behalf of any Seller. Buyer may make any such payment in accordance with any bill, statement or estimate procured from the appropriate public office or holder of the claim to be discharged without inquiry into the accuracy of such bill, statement or estimate or into the validity of any tax assessment, sale, forfeiture, tax Lien, title or claim except to the extent such payment is being contested in good faith by the related Seller in appropriate proceedings and against which adequate reserves are being maintained in accordance with GAAP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Without limiting the generality of the foregoing, for so long as any Repurchase Obligation remains outstanding, each Seller will, no earlier than six (6) or later than three (3) months before the fifth (5th) anniversary of the date of filing of each UCC financing statement filed in connection with to any Repurchase Document or any Transaction, deliver and file or cause to be filed an appropriate continuation statement with respect to such financing statement; provided that Buyer may elect to file such continuation statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Except as provided in the Repurchase Documents, the sole duty of Buyer, Custodian or any other designee or agent of Buyer with respect to the Purchased Assets and Underlying Assets shall be to use reasonable care in the custody, use, operation and preservation of the Purchased Assets and Underlying Assets in its possession or control. Buyer shall incur no liability to any Seller or any other Person for any act of Governmental Authority, act of God or other destruction in whole or in part or negligence or wrongful act of custodians or agents selected by Buyer with reasonable care, or Buyer's failure to provide adequate protection or insurance for the Purchased Assets or Underlying Assets. Buyer shall have no obligation to take any action to preserve any rights of any Seller in any Purchased Asset or Underlying Assets against prior parties, and each Seller hereby agrees to take such action. Buyer shall have no obligation to realize upon any Purchased Asset or Underlying Asset except through proper application of any distributions with respect to the Purchased Assets and Underlying Assets made directly to Buyer or its agent(s). So long as Buyer, Custodian or any other designee or agent of Buyer shall act in good faith in their handling of the Purchased Assets and Underlying Assets, each Seller waives or is deemed to have waived the defense of impairment of the Purchased Assets or Underlying Assets by Buyer, Custodian or such designee or agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) At Buyer's election, and at any time during the term of this Agreement, after delivery by Buyer to the applicable Seller of prior written notice, Buyer may record any or all of the assignment documents (at Buyer's sole cost and expense) as further evidence of Buyer's ownership interest in the related Purchased Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Sellers and Guarantor shall, promptly upon Buyer's request, deliver documentation in form and substance satisfactory to Buyer which Buyer deems necessary or desirable to evidence compliance with all applicable "Know Your Customer" due diligence checks.

Section 18.16 <u>Default Rate</u>. To the extent permitted by Requirements of Law, Sellers shall pay interest at the Default Rate on the amount of all Repurchase Obligations not paid when due under the Repurchase Documents until such Repurchase Obligations are paid or satisfied in full.

Section 18.17 <u>Termination</u>. This Agreement shall remain in effect until the Termination Date. However, no such termination shall affect Sellers' outstanding obligations to Buyer at the time of such termination, nor shall it affect the survivability of any provisions in this Agreement that, by their express terms, are intended to survive the termination of this Agreement or any of the other Repurchase Documents and the repayment in full of the Repurchase Obligations.

Section 18.18 <u>Set-off</u>. In addition to any rights now or hereafter granted under the Repurchase Documents, Requirements of Law or otherwise, Sellers, each on behalf of itself, hereby grants to Buyer and each Indemnified Person, to secure repayment of the Repurchase Obligations, a right of set-off upon any and all of the following: (i) monies, securities, collateral or other property of each Seller and any proceeds from the foregoing, now or hereafter held or received by Buyer, any Affiliate of Buyer or any Indemnified Person, for the account of each Seller, whether for safekeeping, custody, pledge, transmission, collection or otherwise, (ii) any and all deposits (general, specified, special, time, demand, provisional or final) and credits, claims or Indebtedness of any Seller at any time existing, (iii) any obligation owed by Buyer or any Affiliate of Buyer to any Seller and (iv) any Repurchase Obligations or Indebtedness owed by any Seller and any Indebtedness owed by Buyer or any Affiliate of Buyer to any Seller, in each case whether direct or indirect, absolute or contingent, matured or unmatured, whether or not arising under the Repurchase Documents and irrespective of the currency, place of payment or booking office of the amount or obligation and in each case at any time held or owing by Buyer, any Affiliate of Buyer or any Indemnified Person to or for the credit of any Seller, without prejudice to Buyer's right to recover any deficiency. Each of Buyer, each Affiliate of Buyer and each Indemnified Person is hereby authorized upon any amount becoming due and payable by any Seller to Buyer or any Indemnified Person under the Repurchase Documents, the Repurchase Obligations or otherwise or upon the occurrence and continuance of an Event of Default, without notice to Sellers, any such notice being expressly waived by Sellers to the extent permitted by any Requirements of Law, to set-off, appropriate, apply and enforce such right of set-off against any and all items hereinabove referred to against any amounts owing to Buyer or any Indemnified Person by any Seller under the Repurchase Documents and the Repurchase Obligations, irrespective of whether Buyer, any Affiliate of Buyer or any Indemnified Person shall have made any demand under the Repurchase Documents and regardless of any other collateral securing such amounts, and in all cases without waiver or prejudice of Buyer's rights to recover any deficiency. Each Seller shall be deemed directly indebted to Buyer and the other Indemnified Persons in the full amount of all amounts owing to Buyer and the other Indemnified Persons by any Seller under the Repurchase Documents and the Repurchase Obligations, and Buyer and the other Indemnified Persons shall be entitled to exercise the rights of set-off provided for above. ANY AND ALL RIGHTS TO REQUIRE BUYER OR OTHER INDEMNIFIED PERSONS TO EXERCISE THEIR RIGHTS OR REMEDIES WITH RESPECT TO THE PURCHASED ASSETS OR UNDERLYING ASSETS OR OTHER INDEMNIFIED PERSONS UNDER THE REPURCHASE DOCUMENTS, PRIOR TO EXERCISING THE FOREGOING RIGHT OF SET-OFF, ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED BY EACH SELLER.

Buyer or any Indemnified Person shall promptly notify the applicable Seller after any such set-off and application made by Buyer or such Indemnified Person; provided that the failure to give such notice shall not affect the validity of such set-off and application. If an amount or obligation is unascertained, Buyer may in good faith estimate that obligation and set-off in respect of the estimate, subject to the relevant Party accounting to the other Party when the amount or obligation is ascertained. Nothing in this <u>Section 18.18</u> shall be effective to create a charge or other security interest. This <u>Section 18.18</u> shall be without prejudice and in addition to any right of set-off, combination of accounts, Lien or other rights to which any Party is at any time otherwise entitled.

Section 18.19 <u>Power of Attorney</u>. Each Seller, each REO Subsidiary, each Trustee on behalf of the related CLT, and each DST hereby authorizes Buyer to file such financing statement or statements relating to the Purchased Assets as Buyer, at its option, may deem appropriate and each Seller and REO Subsidiary also hereby authorizes Buyer to file any such financing statement describing the collateral covered thereby as "all assets of the Debtor whether now owned or hereafter acquired or arising and wheresoever located, including all accessions thereto and products and proceeds thereof" or words to that effect. Each Seller, each REO Subsidiary, each Trustee on behalf of the related CLT, and each DST hereby appoints Buyer as such Person's agent and attorney in fact to execute any such financing statement or statements in such Person's name and to perform all other acts which Buyer deems appropriate to perfect and continue its ownership interest in and/or the security interest granted hereby, if applicable, and to protect, preserve and realize upon the Purchased Assets, in accordance with the terms of this Agreement including, but not limited to, the right to endorse notes, complete blanks in documents, transfer servicing (including, but not limited, to sending "good-bye letters" on behalf of such Person and the applicable Servicer to any Mortgagor with respect to Underlying Assets which are Mortgage Loans), and sign assignments on behalf of such Person as its agent and attorney in fact. This agency and power of attorney is coupled with an interest and is irrevocable without Buyer's consent. Notwithstanding the foregoing, the power of attorney hereby granted may be exercised only during the occurrence and continuance of any Event of Default hereunder. Sellers shall pay the filing costs for any financing statement or statements prepared pursuant to this <u>Section 18.19</u>. In addition, each Seller shall execute and deliver to Buyer a power of attorney in the form set forth in <u>Exhibit I</u> attached hereto ("<u>Seller's Power of Attorney</u>").

Section 18.20 <u>Sellers' Waiver of Setoff</u>. Each Seller hereby waives any right of setoff it may have or to which it may be or become entitled under the Repurchase Documents or otherwise against Buyer, any Affiliate of Buyer, any Indemnified Person or their respective assets or properties.

Section 18.21 <u>Periodic Due Diligence Review</u>. Buyer may perform continuing due diligence reviews with respect to the Purchased Assets, Underlying Assets, any Seller and Affiliates of any Seller, including ordering new third party reports, for purposes of, among other things, verifying compliance with the representations, warranties, ordering BPOs at any time during the term of this Agreement, covenants, agreements, duties, obligations and specifications made under the Repurchase Documents or otherwise. As often as commercially reasonable in Buyer's judgment and upon reasonable (but no less than ten (10) Business Days') prior notice to Sellers, unless a Default or Event of Default exists, in which case no notice is required, Buyer or its representatives may during normal business hours to inspect any properties and examine, inspect and make copies of the books and records of any Seller and Affiliates of any Seller, and the Records and the Servicing Files. Each Seller shall make available to Buyer one or more knowledgeable financial or accounting officers and representatives of the independent certified public accountants of such Seller for the purpose of answering questions of Buyer concerning any of the foregoing. Each Seller shall make commercially reasonable efforts to cause Servicer to cooperate with Buyer by permitting Buyer to conduct reasonable due diligence reviews of the related Servicing Files.

Buyer may purchase Purchased Assets from any Seller or fund a Purchase Price Increase based solely on the information provided by such Seller to Buyer in the Underwriting Package and the representations, warranties, duties, obligations and covenants contained herein, and Buyer may at any time conduct a partial or complete due diligence review on some or all of the Purchased Assets or Underlying Assets, including ordering new credit reports and new appraisals on related Mortgaged Properties and otherwise regenerating the information used to originate and underwrite such Purchased Assets or Underlying Assets. Buyer may underwrite such Purchased Assets or Underlying Assets itself or engage a mutually acceptable third-party underwriter to do so. Sellers shall be responsible for all of the reasonable and documented out-of-pocket due diligence costs and expenses incurred by Buyer, provided that, anything herein to the contrary notwithstanding, Sellers shall be responsible for the reasonable and documented out-of-pocket costs and expenses associated with no more than one (1) on-site diligence visit per calendar year unless an Event of Default has occurred in which case such reimbursement shall be unlimited.

Section 18.22 <u>Time of the Essence</u>. Time is of the essence with respect to all obligations, duties, covenants, agreements, notices or actions or inactions of the parties under the Repurchase Documents.

Section 18.23 <u>Joint and Several Repurchase Obligations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At all times when there is more than one Seller under this Agreement, each Seller hereby acknowledges and agrees that (i) Sellers shall be jointly and severally liable to Buyer to the maximum extent permitted by Requirements of Law for all Repurchase Obligations, (ii) the liability of Sellers (A) shall be absolute and unconditional and shall remain in full force and effect (or be reinstated) until all Repurchase Obligations shall have been paid in full and the expiration of any applicable preference or similar period pursuant to any Insolvency Law, or at law or in equity, without any claim having been made before the expiration of such period asserting an interest in all or any part of any payment(s) received by Buyer, and (B) until such payment has been made, shall not be discharged, affected, modified or impaired on the occurrence from time to time of any event, including any of the following, whether or not with notice to or the consent of Seller, (1) the waiver, compromise, settlement, release, termination or amendment (including any extension or postponement of the time for payment or performance or renewal or refinancing) of any of the Repurchase Obligations, (2) the failure to give notice to any Seller of the occurrence of an Event of Default, (3) the release, substitution or exchange by Buyer of any Purchased Asset (whether with or without consideration) or the acceptance by Buyer of any additional collateral or the availability or claimed availability of any other collateral or source of repayment or any nonperfection or other impairment of collateral, (4) the release of any Person primarily or secondarily liable for all or any part of the Repurchase Obligations, whether by Buyer or in connection with any Insolvency Proceeding affecting Seller or any other Person who, or any of whose property, shall at the time in question be obligated in respect of the Repurchase Obligations or any part thereof, or (5) to the extent permitted by Requirements of Law, any other event, occurrence, action or circumstance that would, in the absence of this <u>Section 18.23</u>, result in the release or discharge of any or all Sellers from the performance or observance of any Repurchase Obligation, (iii) Buyer shall not be required first to initiate any suit or to exhaust its remedies against Seller or any other Person to become liable, or against any of the Purchased Assets, in order to enforce the Repurchase Documents and each Seller expressly agrees that, notwithstanding the occurrence of any of the foregoing, such Seller shall be and remain directly and primarily liable for all sums due under any of the Repurchase Documents, (iv) when making any demand hereunder against any Seller, Buyer may, but shall be under no obligation to, make a similar demand on any other Seller, and any failure by Buyer to make any such demand or to collect any payments from any other Seller, or any release of any such other Seller shall not relieve such Seller in respect of which a demand or collection is not made or such Seller is not so released of their obligations or liabilities hereunder, and shall not impair or affect the rights and remedies, express or implied, or as a matter of law, of Buyer against such Seller, and (v) on disposition by Buyer of any property encumbered by any Purchased Assets, Sellers shall be and shall remain jointly and severally liable for any deficiency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the extent that any Seller (the "<u>paying Seller</u>") pays more than its proportionate share of any payment made hereunder, the paying Seller shall be entitled to seek and receive contribution from and against any other Seller that has not paid its proportionate share; provided, that the provisions of this Section 18.23 shall not limit the duties, covenants, agreements, obligations and liabilities of any Seller to Buyer, and, notwithstanding any payment or payments made by the paying Seller hereunder or any setoff or application of funds of the paying Seller by Buyer, the paying Seller shall not be entitled to be subrogated to any of the rights of Buyer against any other Seller or any collateral security or guarantee or right of setoff held by Buyer, nor shall the paying Seller seek or be entitled to seek any contribution or reimbursement from any other Seller in respect of payments made by the paying Seller hereunder, until all Repurchase Obligations are paid in full. If any amount shall be paid to the paying Seller on account of such subrogation rights at any time when all such amounts shall not have been paid in full, such amount shall be held by the paying Seller in trust for Buyer, segregated from other funds of the paying Seller, and shall, forthwith upon receipt by the paying Seller, be turned over to Buyer in the exact form received by the paying Seller (duly indorsed by the paying Seller to Buyer, if required), to be applied against the Repurchase Obligations, whether matured or unmatured, in such order as Buyer may determine.

Section 18.24 <u>Patriot Act Notice</u>. Buyer hereby notifies Sellers that Buyer is required by the Patriot Act to obtain, verify and record information that identifies each Seller.

Section 18.25 <u>Successors and Assigns</u>. Subject to the foregoing, the Repurchase Documents and any Transactions shall be binding upon and shall inure to the benefit of the Parties and their successors and permitted assigns.

Section 18.26 <u>Recognition of U.S. Special Resolution Regimes</u>. Subject to the foregoing, the Repurchase Documents and any Transactions shall be binding upon and shall inure to the benefit of the Parties and their successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event that Buyer becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer from Buyer of this Agreement and/or the Repurchase Documents, and any interest and obligation in or under this Agreement and/or the Repurchase Documents, will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if this Agreement and/or the Repurchase Documents, and any such interest and obligation, were governed by the laws of the United States or a state of the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that Buyer or a BHC Act Affiliate of Buyer becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under this Agreement and/or the Repurchase Documents that may be exercised against Buyer are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if this Agreement and/or the Repurchase Documents were governed by the laws of the United States or a state of the United States.

Section 18.27 <u>Limitation of Trustee Liability</u>.

It is expressly understood and agreed by the parties to this Agreement that (a) this Agreement is executed and delivered by U.S. Bank Trust Company, National Association, in its capacity as Trustee W of Trust W and Trustee TRS-W of Trust TRS-W and not individually or personally but solely in its capacity as Trustee W and Trustee TRS-W, and in the exercise of the powers and authority conferred upon and vested in U.S. Bank Trust Company, National Association as Trustee W under the Trust W Trust Agreement and Trustee TRS-W under the Trust TRS-W Trust Agreement, (b) each of the representations, undertakings and agreements herein made by Trustee W and Trustee TRS-W under this Agreement is made and intended not as the personal representation, undertaking of agreement of U.S. Bank Trust Company, National Association, but is made and intended for the purpose of binding only Trust W and Trust TRS-W, (c) in accordance with the following paragraph, nothing herein contained shall be construed as creating any liability on the part of U.S. Bank Trust Company, National Association, individually or personally, to perform any covenant or obligation under this Agreement (other than those obligations expressly undertaken by or required by U.S. Bank Trust Company, National Association, as Trustee W of Trust W and Trustee TRS-W of Trust TRS-W), either expressed or implied, contained herein, all such liability, if any, being expressly waived by the parties hereto and by any Person claiming by, through or under the parties hereto and (d) under no circumstances shall U.S. Bank Trust Company, National Association be personally liable for the payment of any indebtedness or expenses of Trust W or Trust TRS-W or be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by Trustee W or Trustee TRS-W (pursuant to direction to Trustee W under the Trust W Trust Agreement or Trustee TRS-W under the Trust TRS-W Trust Agreement) under this Agreement and any other agreement related hereto.

The parties hereto acknowledge and agree that Trustee W and Trustee TRS-W shall not have any obligation to take any action or perform any obligations hereunder unless and until Trustee W or Trustee TRS-W has received written direction by the applicable party under the applicable Trust Agreement. Notwithstanding any provision in this Agreement, with respect to any obligation of Trustee W or Trustee TRS-W, the parties understand and agree that in the absence of such direction, such Trustee will not take any action or direct another party to take action, despite any time restriction set forth in this Agreement.

Section 18.28 <u>Rates</u>. Buyer does not warrant or accept any responsibility for, and shall not have any liability with respect to, (a) the continuation of, administration of, submission of, calculation of or any other matter related to the Term SOFR Reference Rate or Term SOFR, or any component definition thereof or rates referred to in the definition thereof, or with respect to any alternative, successor or replacement rate thereto (including any Benchmark Replacement), including whether the composition or characteristics of any such alternative, successor or replacement rate (including any Benchmark Replacement), as it may or may not be adjusted pursuant to <u>Section 12.01</u>, will be similar to, or produce the same value or economic equivalence of, or have the same volume or liquidity as, the Term SOFR Reference Rate, Term SOFR or any other Benchmark prior to its discontinuance or unavailability, or (b) the effect, implementation or composition of any Conforming Changes. Buyer and its affiliates or other related entities may engage in transactions that affect the calculation of the Term SOFR Reference Rate, Term SOFR, any alternative, successor or replacement rate (including any Benchmark Replacement) or any relevant adjustments thereto and such transactions may be adverse to a Seller. Buyer may select information sources or services in its reasonable discretion to ascertain the Term SOFR Reference Rate or Term SOFR, or any other Benchmark, any component definition thereof or rates referred to in the definition thereof, in each case pursuant to the terms of this Agreement, and shall have no liability to any Seller or any other person or entity for damages of any kind, including direct or indirect, special, punitive, incidental or consequential damages, costs, losses or expenses (whether in tort, contract or otherwise and whether at law or in equity), for any error or calculation of any such rate (or component thereof) provided by any such information source or service.

[ONE OR MORE UNNUMBERED SIGNATURE PAGES FOLLOW]

IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed as of the date first above written.

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| | |
|:---|:---|
| **<u>SELLERS:</u>** | **<u>SELLERS:</u>** |
| **R-Home Pass Through Parent W LLC** | **R-Home Pass Through Parent W LLC** |
| By: | /s/ Nicola Santoro, Jr. |
| Name: Nicola Santoro, Jr. | Name: Nicola Santoro, Jr. |
| Title: Chief Financial Officer and Treasurer | Title: Chief Financial Officer and Treasurer |
| **R-Home Pass-Through Parent TRS-W LLC** | **R-Home Pass-Through Parent TRS-W LLC** |
| By: | /s/ Nicola Santoro, Jr. |
| Name: Nicola Santoro, Jr. | Name: Nicola Santoro, Jr. |
| Title: Chief Financial Officer and Treasurer | Title: Chief Financial Officer and Treasurer |

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Signature Page to Master Repurchase Agreement and Securities Contract (Wells/Rithm Perpetual Fund)

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| | |
|:---|:---|
| **<u>REO SUBSIDIARY:</u>** | **<u>REO SUBSIDIARY:</u>** |
| **R-Home REO TRS-W LLC** | **R-Home REO TRS-W LLC** |
| By: | /s/ Nicola Santoro, Jr. |
| Name: Nicola Santoro, Jr. | Name: Nicola Santoro, Jr. |
| Title: Chief Financial Officer and Treasurer | Title: Chief Financial Officer and Treasurer |

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Signature Page to Master Repurchase Agreement and Securities Contract (Wells/Rithm Perpetual Fund)

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| | |
|:---|:---|
| **<u>BUYER:</u>** | **<u>BUYER:</u>** |
| **WELLS FARGO BANK, NATIONAL ASSOCIATION** | **WELLS FARGO BANK, NATIONAL ASSOCIATION** |
| By: | /s/ Kevin Graves |
| Name: Kevin Graves | Name: Kevin Graves |
| Title: Executive Director | Title: Executive Director |

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Signature Page to Master Repurchase Agreement and Securities Contract (Wells/Rithm Perpetual Fund)

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| | |
|:---|:---|
| **<u>GUARANTOR:</u>** | **<u>GUARANTOR:</u>** |
| **Rithm Perpetual Life Residential Trust** | **Rithm Perpetual Life Residential Trust** |
| By: | /s/ Nicola Santoro, Jr. |
| Name: Nicola Santoro, Jr. | Name: Nicola Santoro, Jr. |
| Title: Chief Financial Officer and Chief Accounting Officer | Title: Chief Financial Officer and Chief Accounting Officer |

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Signature Page to Master Repurchase Agreement and Securities Contract (Wells/Rithm Perpetual Fund)

**Acknowledged and Agreed with respect to Section 5.03(a):**

**U.S. Bank Trust Company, National Association**,

not in its individual capacity but solely as Trustee W of Trust W

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| | |
|:---|:---|
| By: | /s/ William Semsch |
| Name: William Semsch | Name: William Semsch |
| Title: Vice President | Title: Vice President |

---

**U.S. Bank Trust Company, National Association**,

not in its individual capacity but solely as Trustee TRS-W of Trust TRS-W

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| | |
|:---|:---|
| By: | /s/ William Semsch |
| Name: William Semsch | Name: William Semsch |
| Title: Vice President | Title: Vice President |

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Signature Page to Master Repurchase Agreement and Securities Contract (Wells/Rithm Perpetual Fund)

**SCHEDULE 1-A**

**REPRESENTATIONS AND WARRANTIES WITH RESPECT TO<br> UNDERLYING MORTGAGE LOANS**

**I.** **Representations and Warranties with respect to Underlying Mortgage Loans that are Non-QM Loans** 

At all times an Underlying Mortgage Loan that is a Non-QM Loan is subject to a Transaction, each Relevant Party hereby represents and warrants to the Buyer that, with respect to each Underlying Mortgage Loan:

1. <u>Property Valuation</u>. Each Underlying
 Mortgage Loan with a written appraisal, as indicated on the Mortgage Loan Schedule, contains
 a written appraisal prepared by an appraiser licensed or certified by the appropriate governmental
 body (or bodies) in the jurisdiction in which the Mortgaged Property is located and in accordance
 with the requirements of Title XI of the Financial Institutions Reform Recovery and Enforcement
 Act of 1989. The appraisal was written in form and substance to customary Fannie Mae or Freddie
 Mac standards for Mortgage Loans of the same type as the Underlying Mortgage Loans and Uniform
 Standards of Professional Appraisal Practice standards and satisfies applicable legal and
 regulatory requirements. The appraisal was made and signed prior to the final approval of
 the Underlying Mortgage Loan application. The person performing any property valuation (including
 an appraiser) received no benefit from, and such person's compensation or flow of business
 from the related originator was not affected by, the approval or disapproval of the Underlying
 Mortgage Loan.

2. <u>Income/Employment/Assets</u>. With respect
 to each Underlying Mortgage Loan for which the document type on the Mortgage Loan Schedule
 indicates documented income, employment and/or assets, the applicable originator verified
 the mortgagor's income, employment and/or assets in accordance with its written Underwriting
 Guidelines. With respect to each Underlying Mortgage Loan other than an Underlying Mortgage
 Loan for which the mortgagor documented his or her income by providing Form W-2 or tax
 returns, the applicable originator employed a process designed to verify the income with
 third-party documentation (including bank statements).

3. <u>Occupancy</u>. The related originator has
 given due consideration to factors, including but not limited to, other real estate owned
 by the mortgagor, commuting distance to work, appraiser comments and notes, the location
 of the property and any difference between the mailing address active in the servicing system
 and the subject property address to evaluate whether the occupancy status of the Mortgaged
 Property as represented by the mortgagor is reasonable.

4. <u>Source of Loan Payments</u>. With respect
 to each Underlying Mortgage Loan, no portion of the loan proceeds has been escrowed for the
 purpose of making monthly payments on behalf of the mortgagor and no payments due and payable
 under the terms of the Mortgage Note, except for seller or builder concessions or amounts
 paid or escrowed for payment by the mortgagor's employer, have been paid by any person
 (other than a guarantor) who was involved in or benefited from the sale of the Mortgaged
 Property or the origination, refinancing, sale or servicing of the Underlying Mortgage Loan.

Schedule 1-A

5. <u>Data</u>. The information on the Mortgage
 Loan Schedule correctly and accurately reflects the information contained in the Sellers'
 records (including, without limitation, the Mortgage Loan file) in all material respects.
 In addition, the information contained under each of the headings in the Mortgage Loan Schedule
 (e.g. mortgagor's income, employment and occupancy, among others) is true and correct
 in all material respects.

6. <u>Underwriting; Collection Practices; Escrow Payments</u>. Each Underlying Mortgage Loan was either underwritten in substantial conformance
 to the applicable Underwriting Guidelines in effect at the time of origination taking into
 account the compensating factors set forth in such Underwriting Guidelines as of the related
 Purchase Date, without regard to any underwriter discretion or, if not underwritten in substantial
 conformance to the applicable Underwriting Guidelines, has reasonable and documented compensating
 factors.

7. <u>Origination and Servicing Regulatory Compliance</u>.
 Other than with respect to the TRID rule, compliance with which is covered by representation
 and warranty (34) below, the origination, servicing, and collections practices used with
 respect to each Underlying Mortgage Loan have been in accordance with applicable laws and
 requirements, whether such servicing was done by the Sellers, its affiliates, or any third
 party or any subservicer or servicing agent of any of the foregoing; provided, however, that
 the Sellers will only be deemed to be in breach of this representation in the event that
 the noncompliance resulted in foreclosure or ultimate realization on the Mortgage Note being
 precluded or where, upon foreclosure, specific costs could be attributed to noncompliance.

8. <u>No Prior Liens</u>. Immediately prior to
 the transfer and assignment of the Underlying Mortgage Loans to an Underlying Trust (or the
 Trustee on behalf of the related Underlying Trust, for an Underlying Trust that is a CLT),
 the applicable Seller was the sole owner and holder of the Underlying Mortgage Loan free
 and clear of any and all liens (other than any senior lien indicated on the Mortgage Loan
 Schedule), pledges, charges or security interests of any nature, and such Seller had good
 and marketable title and full right and authority to sell and assign the Underlying Mortgage
 Loan.

9. <u>Enforceability and Priority of Lien</u>.
 The Mortgage is a valid, subsisting and enforceable first lien on the property therein described,
 and, except as noted in the Mortgage Loan Schedule, the Mortgaged Property is free and clear
 of all encumbrances and liens having priority over the lien of the Mortgage, except for:
 the lien of current real property taxes and assessments not yet due and payable; covenants,
 conditions and restrictions, rights of way, easements and other matters of public record
 as of the date of recording of such Mortgage acceptable to mortgage lending institutions
 in the area in which the Mortgaged Property is located or specifically referred to in the
 appraisal performed in connection with the origination of the related Underlying Mortgage
 Loan; liens created pursuant to any federal, state or local law, regulation or ordinance
 affording liens for the costs of cleanup of hazardous substances or hazardous wastes or for
 other environmental protection purposes; and such other matters to which like properties
 are commonly subject that do not individually or in aggregate materially interfere with the
 benefits of the security intended to be provided by the Mortgage; and any security agreement,
 chattel mortgage or equivalent document related to and delivered to the related Custodian
 with any Mortgage establishes in the applicable Seller a valid and subsisting first lien
 on the property described therein, and such Seller has full right to sell and assign the
 same to the Buyer.

Schedule 1-A

10. <u>Taxes Paid</u>. All taxes, governmental
 assessments, insurance premiums and water, sewer and municipal charges that previously became
 due and payable have been paid or an escrow of funds has been established, to the extent
 permitted by law, in an amount sufficient to pay for any such item that remains unpaid.

11. <u>No Damage/Condemnation</u>. The Mortgaged
 Property is undamaged by water, fire, earthquake or earth movement, hurricane, windstorm,
 flood, tornado or similar casualty to affect adversely the value of the Mortgaged Property
 as security for the Underlying Mortgage Loan or the use for which the premises was intended
 or would render the property uninhabitable. Additionally, there is no proceeding (pending
 or threatened) for the total or partial condemnation of the Mortgaged Property.

12. <u>Fee Simple Estate; No Encroachments; Compliance with Zoning</u>. Except for Underlying Mortgage Loans secured by co-op shares and Underlying
 Mortgage Loans secured by residential long-term leases, the Mortgaged Property consists of
 a fee-simple estate in real property; all the improvements included for the purpose of determining
 the appraised value of the Mortgaged Property lie wholly within the boundaries and building
 restriction lines of such property and no improvements on adjoining properties encroach on
 the Mortgaged Property (unless insured against under the related title insurance policy);
 and the Mortgaged Property and all improvements thereon comply with all requirements of any
 applicable zoning and subdivision laws and ordinances.

13. <u>Legally Occupied</u>. All inspections,
 licenses and certificates required to be made or issued with respect to all occupied portions
 of the Mortgaged Property and the use and occupancy of the same, including but not limited
 to certificates of occupancy and fire underwriting certificates, have been made or obtained
 from the appropriate authorities.

14. <u>Mortgage Loan Legal and Binding</u>. The
 Mortgage Note, the related Mortgage and other agreements executed in connection therewith
 are genuine, and each is the legal, valid and binding obligation of the maker thereof, enforceable
 in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency,
 reorganization or other similar laws affecting the enforcement of creditors' rights
 generally and by general equity principles (regardless of whether such enforcement is considered
 in a proceeding in equity or at law). Additionally, all parties to the Mortgage Note and
 the Mortgage had legal capacity to execute the Mortgage Note and the Mortgage, and each Mortgage
 Note and Mortgage has been duly and properly executed by the mortgagor.

Schedule 1-A

15. <u>Proceeds Fully Disbursed; Recording Fees Paid</u>. The proceeds of the Underlying Mortgage Loan have been fully disbursed, there is
 no requirement for future advances thereunder, and any and all requirements as to completion
 of any on-site or off-site improvements and as to disbursements of any escrow funds have
 been complied with (except for escrow funds for exterior items, which could not be completed
 due to weather, and escrow funds for the completion of swimming pools). Additionally, all
 costs, fees and expenses incurred in making, closing or recording the Underlying Mortgage
 Loan have been paid, except recording fees with respect to mortgages not recorded as of the
 related Purchase Date.

16. <u>Existence of Title Insurance</u>. The Underlying
 Mortgage Loan (except any Underlying Mortgage Loan secured by a Mortgaged Property located
 in any jurisdiction for which an opinion of counsel of the type customarily rendered in such
 jurisdiction in lieu of title insurance is instead received and any Underlying Mortgage Loan
 secured by co-op shares) is covered by an ALTA mortgagee title insurance policy or other
 generally acceptable form of policy or insurance acceptable to Fannie Mae or Freddie Mac,
 issued by a title insurer acceptable to Fannie Mae or Freddie Mac insuring the related originator
 or its successors and assigns as to the first priority lien of the Mortgage in the original
 principal amount of the Underlying Mortgage Loan and subject only to the following: (a) the
 lien of current real property taxes and assessments not yet due and payable; (b) covenants,
 conditions and restrictions, rights of way, easements and other matters of public record
 as of the date of recording of such Mortgage acceptable to mortgage lending institutions
 in the area in which the Mortgaged Property is located or specifically referred to in the
 appraisal performed in connection with the origination of the related Underlying Mortgage
 Loan; (c) liens created pursuant to any federal, state or local law, regulation or ordinance
 affording liens for the costs of cleanup of hazardous substances or hazardous wastes or for
 other environmental protection purposes and (d) such other matters to which like properties
 are commonly subject that do not individually, or in the aggregate, materially interfere
 with the benefits of the security intended to be provided by the Mortgage. The transfer of
 an interest in any mortgagee title insurance policy to an Underlying Trust (or the related
 Trustee on behalf of the related Underlying Trust, for an Underlying Trust that is a CLT)
 does not require any consent of or notification to the insurer that has not been obtained
 or made, such mortgagee title insurance policy is in full force and effect and will be in
 full force and effect and inure to the benefit of the Buyer, no claims have been made under
 such mortgagee title insurance policy and no prior holder of the related mortgage, including
 each Seller, has done, by act or omission, anything that would impair the coverage of such
 mortgagee title insurance policy.

Schedule 1-A

17. <u>Hazard Insurance</u>. The Mortgaged Property
 securing each Underlying Mortgage Loan is insured by an insurer acceptable to Fannie Mae
 or Freddie Mac against loss by fire and such hazards as covered under a standard extended
 coverage endorsement in an amount not less than the lesser of 100% of the insurable value
 of the Mortgaged Property or the outstanding principal balance of the Underlying Mortgage
 Loan. If the Mortgaged Property is a condominium unit, it is included under the coverage
 afforded by a blanket policy for the project. If, upon origination of the Underlying Mortgage
 Loan, the improvements on the Mortgaged Property were in an area identified in the Federal
 Register by the Federal Emergency Management Agency as having special flood hazards, a flood
 insurance policy meeting the requirements of the current guidelines of the Federal Insurance
 Administration is in effect with a generally acceptable insurance carrier in an amount representing
 coverage not less than the least of the outstanding principal balance of the Underlying Mortgage
 Loan, the full insurable value of the Mortgaged Property, or the maximum amount of insurance
 that was available under the National Flood Insurance Act of 1968, as amended. Additionally,
 each Mortgage obligates the mortgagor thereunder to maintain all such insurance at the mortgagor's
 cost and expense.

18. <u>No Default</u>. Unless otherwise indicated
 on the Mortgage Loan Schedule, other than with respect to 30+ Delinquent Loans, 60+ Delinquent
 Loans and 90+ Delinquent Loans or any monthly payment due for the month in which the related
 Purchase Date occurs and which is less than 30 days past due, as of the related Purchase
 Date, there is no monetary default, breach, violation or event of acceleration existing under
 the Mortgage or the related Mortgage Note and no event which, with the passage of time or
 with notice and the expiration of any grace or cure period, would constitute a default, breach,
 violation or event permitting acceleration; and neither the Sellers nor any prior owner has
 waived any default, breach, violation or event permitting acceleration. As of the related
 Purchase Date, no foreclosure action is currently threatened or has been commenced with respect
 to any Mortgaged Property.

19. <u>No Rescission</u>. No Mortgage Note or
 Mortgage is subject to any right of rescission, set-off, counterclaim or defense. None of
 the terms will render the Mortgage Note or Mortgage unenforceable or subject it to any right
 of rescission, set-off, counterclaim or defense. No such right of rescission, set-off, counterclaim
 or defense has been asserted.

20. <u>Enforceable Right of Foreclosure</u>. Each
 Mortgage contains customary and enforceable provisions such as to render the rights and remedies
 of the holder thereof adequate for the realization against the Mortgaged Property of the
 benefits of the security, including realization by judicial foreclosure (subject to any limitation
 arising from any bankruptcy, insolvency or other law for the relief of debtors), and there
 is no homestead or other exemption available to the mortgagor that would interfere with such
 right of foreclosure.

21. <u>Mortgage Loan Qualifies for REMIC</u>.
 The Underlying Mortgage Loan is a "qualified mortgage" within the meaning of
 Section 860G(a)(3) of the Code of 1986, as amended.

22. <u>Doing Business</u>. With respect to each
 Underlying Mortgage Loan, all parties that have had any interest in such Underlying Mortgage
 Loan, whether as mortgagee, assignee, pledgee or otherwise, are (or, during the period in
 which they held and disposed of such interest, were) in compliance with any and all applicable
 licensing requirements of the laws of the state wherein the related Mortgaged Property is
 located, except to the extent that failure to be so licensed would not give rise to any claim
 against the Sellers; provided, however, that the Sellers will only be deemed to be in breach
 of this representation in the event that the noncompliance resulted in foreclosure or ultimate
 realization on the Mortgage Note being precluded or where, upon foreclosure, specific costs
 could be attributed to noncompliance.

Schedule 1-A

23. <u>Fraud</u>. No fraud or material error,
 material omission, material misrepresentation, gross negligence or similar occurrence with
 respect to an Underlying Mortgage Loan has taken place on the part of any originator, any
 correspondent or mortgage broker involved in the origination of such Underlying Mortgage
 Loan, the mortgagor or any appraiser, builder, developer or any other party involved in the
 origination or sale of the Underlying Mortgage Loan or in the application of any insurance
 in relation to such Underlying Mortgage Loan, that would impair in any way the rights of
 the related Underlying Trust or related Trustee on behalf of the related Underlying Trust
 in the Underlying Mortgage Loan or Mortgaged Property.

24. <u>Recordable</u>. As to any Underlying Mortgage
 Loan which is not a MERS Loan, the assignment of mortgage is in recordable form and is acceptable
 for recording under the laws of the jurisdiction in which the Mortgaged Property is located.

25. <u>Acceleration of Payments</u>. Subject to
 exceptions required by applicable law, the mortgage contains the customary and enforceable
 provisions of the related originator at the time of origination for the acceleration of the
 payment of the unpaid principal amount of the Underlying Mortgage Loan if the related Mortgaged
 Property is sold without the prior consent of the mortgagee thereunder.

26. <u>Complete Mortgage Files</u>. The instruments
 and documents with respect to each Underlying Mortgage Loan required to be delivered to the
 related Custodian pursuant to the related Custodial Agreement on or prior to the related
 Purchase Date have been delivered to the related Custodian.

27. <u>No Modifications</u>. Unless otherwise
 indicated on the Mortgage Loan Schedule, none of the Sellers nor any prior holder of the
 Mortgage or the related Mortgage Note has modified the Mortgage or the related Mortgage Note
 in any material respect, satisfied, canceled or subordinated the Mortgage in whole or in
 part, released the Mortgaged Property in whole or in part from the lien of the Mortgage or
 executed any instrument of release, cancellation, modification or satisfaction, except in
 each case as reflected in an agreement included in the loan file.

28. <u>Mortgaged Property is 1-4 Family</u>. Each
 Mortgaged Property is located in the U.S. or a territory of the U.S. and consists of a one-
 to four-unit residential property, which may include, but is not limited to, a single-family
 dwelling, townhouse, condominium unit or unit in a planned unit development or, in the case
 of Underlying Mortgage Loans secured by co-op shares, leases or occupancy agreements.

Schedule 1-A

29. <u>Loans Current; Prior Delinquencies</u>.
 Unless otherwise indicated on the Mortgage Loan Schedule, all payments required to be made
 up to the Due Date under the terms of the related Mortgage Note have been made, and other
 than with respect to 30+ Delinquent Loans, 60+ Delinquent Loans and 90+ Delinquent Loans
 no Underlying Mortgage Loan had been delinquent, unless disclosed on the Mortgage Loan Schedule.

30. <u>Mortgagor</u>. With respect to each Underlying
 Mortgage Loan, unless otherwise indicated on the Mortgage Loan Schedule, each Mortgagor is
 a natural person or other acceptable forms (e.g. land trust or limited liability company),
 and at the time of origination, the mortgagor was legally entitled to reside in or enter
 the United States.

31. <u>Ability to Repay</u>. To the extent that
 any Underlying Mortgage Loan is subject to the requirements of 12 C.F.R. § 1026.43(c),
 the originator of such Underlying Mortgage Loan made a reasonable and good faith determination
 that the mortgagor would have a reasonable ability to repay the Underlying Mortgage Loan
 according to its terms, in accordance with 12 C.F.R § 1026.43(c).

32. <u>Mortgage Insurance</u>. In each case in
 which a PMI Policy is required pursuant to the applicable Underwriting Guidelines, the Mortgage
 Loan has mortgage insurance consistent with the terms of the Fannie Mae Guides and is insured
 as to payment defaults by a PMI Policy. All provisions of such PMI Policy have been and are
 being complied with, such policy is in full force and effect and all premiums due thereunder
 have been paid. No action, inaction or event has occurred and no state of facts exists as
 of the related Purchase Date that has, or will result in the exclusion from, denial of, or
 defense to coverage. Any Underlying Mortgage Loan subject to a PMI Policy obligates the mortgagor
 thereunder to maintain the PMI Policy and to pay all premiums and charges in connection therewith.
 To the extent an Underlying Mortgage Loan is insured under a lender paid mortgage insurance
 policy, the Mortgage Interest Rate for the Underlying Mortgage Loan as set forth on the related
 Mortgage Loan Schedule is net of any such premium.

33. <u>Servicing</u>. To the best of Sellers'
 knowledge, the Underlying Mortgage Loans have been serviced in all respects, including collection
 practices, in accordance with all applicable requirements; provided, however, that the Sellers
 will only be deemed to be in breach of this representation in the event that the noncompliance
 resulted in foreclosure or ultimate realization on the Mortgage Note being precluded or where,
 upon foreclosure, specific costs could be attributed to noncompliance.

34. <u>TRID Compliance</u>. With respect to each
 Underlying Mortgage Loan for which an application was taken on or after October 3, 2015,
 either: (i) the Underlying Mortgage Loan was originated in compliance with the CFPB's
 Truth-in-Lending Act and Real Estate Settlement Procedures Act Integrated Disclosure Rule,
 78 Fed. Reg. 79730 (Dec. 31, 2013), as amended from time to time, and as implemented
 in Regulation Z (12 C.F.R. Part 1026) or any successor implementing regulation, as in
 effect on the date that the creditor or mortgage broker received the application for any
 Underlying Mortgage Loan (such rule, " <u>TRID</u> "); (ii) any TRID compliance
 exception with respect to each Underlying Mortgage Loan will not result in civil liability
 or has been cured in a manner which negates the associated civil liability; or (iii) such
 Underlying Mortgage Loan is not subject to TRID.

Schedule 1-A

35. <u>No Violation of Environmental Laws</u>.
 As of the related Purchase Date, each Mortgaged Property complied in all material respects
 with all environmental laws, rules, and regulations that were applicable to such Mortgaged
 Property.

36. <u>Regulatory Compliance</u>. No Underlying
 Mortgage Loan is a "high-cost" loan, "covered" loan or any other
 similarly designated loan as defined under any applicable predatory and abusive lending laws;
 provided, that, for the avoidance of doubt, no representation or warranty is made as to whether
 an Underlying Mortgage Loan constitutes a highly-priced mortgage loan, as permitted by specific
 state or federal laws.

37. <u>MERS Loans</u>. With respect to each Underlying
 Mortgage Loan for which the Sellers have designated MERS the related assignment of Mortgage
 to MERS has been duly and properly recorded.

38. <u>Leaseholds</u>. To the extent the Underlying
 Mortgage Loan is secured by a leasehold interest: (i) the mortgagor is the owner of
 a valid and subsisting interest as tenant under the lease and is not in default thereunder,
 (ii) the lease is in full force and effect, and is unmodified, (iii) all rents
 and other charges have been paid when due, (iv) the lessor under the lease is not in
 default, (v) the execution, delivery, and performance of the mortgage do not require
 the consent (other than the consents that have been obtained and are in full force and effect)
 under, and will not violate or cause a default under, the terms of the lease, (vi) the
 lease is assignable or transferable, (vii) the term of such lease does not terminate
 earlier than five years after the maturity date of the Mortgage Note, (viii) the lease
 does not provide for termination of the lease in the event of the mortgagor's default
 without written notice to the mortgagee and a reasonable opportunity to cure the default,
 (ix) the lease permits the mortgaging of the related Mortgaged Property, and (x) the
 lease protects the mortgagee's interests in the event of a property condemnation.

39. <u>Insurance Not Impaired</u>. With respect
 to any insurance policy, including, but not limited to, hazard or title insurance, covering
 an Underlying Mortgage Loan and the related Mortgaged Property, neither any Seller nor any
 originator has engaged in, and the mortgagor has not engaged in, any act or omission that
 would impair the coverage of any such policy, the benefits of the endorsement or the validity
 and binding effect of either, including without limitation, no unlawful fee, commission,
 kickback or other unlawful compensation or value of any kind as has been or will be received,
 retained or realized by any attorney, firm, or other person or entity, and no such unlawful
 items have been received, retained or realized by such Seller.

Schedule 1-A

40. <u>Deed of Trust</u>. In the event the mortgage
 constitutes a deed of trust, a trustee, duly qualified under applicable law to serve as such,
 has been properly designated and currently serves and is named in the mortgage, and no fees
 or expenses are or will become payable by the seller to the trustee under the deed of trust,
 except in connection with a trustee's sale after default by the mortgage.

**II.** **Representations and Warranties with respect to Underlying Mortgage Loans that are Rental Hold Loans and RTL Loans** 

At all times an Underlying Mortgage Loan that is a Rental Hold Loan or an RTL Loan is subject to a Transaction, each Relevant Party hereby represents and warrants to the Buyer that, with respect to each Underlying Mortgage Loan:

1. <u>Payments Current</u>. All payments required to be made up to the related Purchase Date for the Mortgage
 Loan under the terms of the Mortgage Note and each other related Loan Document have been
 made and credited. As of the Purchase Date, no payment required under the Mortgage Loan is
 delinquent and no payment under the Mortgage Loan been delinquent at any time since the related
 origination date of the Mortgage Loan by more than forty-five (45) days. The first monthly
 payment shall be made, or shall have been made, with respect to the Mortgage Loan on its
 Due Date or within forty-five (45) days thereof, all in accordance with the terms of the
 related Mortgage Note.

2. <u>No Outstanding Charges</u>. Except for Permitted Liens, all taxes, governmental assessments,
 insurance premiums, water, sewer and municipal charges, leasehold payments or ground rents,
 in each case, which may become a Lien on the related Mortgaged Property, which previously
 became due and owing have been paid, or an escrow of funds has been established in an amount
 sufficient to pay for every such item which remains unpaid and which has been assessed but
 is not yet delinquent; provided, however, property taxes which have not become more than
 1 year delinquent shall be considered a Permitted Lien. Sellers have not advanced funds,
 or induced, solicited or knowingly received any advance of funds by a party other than the
 Mortgagor, directly or indirectly, for the payment of any principal or interest amount required
 under the Mortgage Loan.

3. <u>Original Terms Unmodified</u>. The terms of the Mortgage Note, Mortgage and each other related Loan
 Document have not been impaired, waived, altered or modified in any respect, from the related
 origination date, except by a written instrument that has been recorded, if necessary to
 protect the interests of Buyer, and delivered to the Custodian and the terms of which are
 reflected in the Mortgage Loan Schedule. The substance of any such waiver, alteration or
 modification has been approved by the title insurer, to the extent required by the terms
 of the Mortgage Note, Mortgage or any other related Loan Document, and its terms are reflected
 on the Mortgage Loan Schedule. No Mortgagor in respect of the Mortgage Loan has been released,
 in whole or in part, except in connection with an assumption agreement approved by the title
 insurer, to the extent required by such policy, and which assumption agreement is part of
 the Asset Documents delivered to the Custodian and the terms of which are reflected in the
 Mortgage Loan Schedule. The related Mortgage, Mortgage Note and each other related Loan Document
 contain the entire agreement of the parties and all of the obligations of each Seller under
 the related Underlying Mortgage Loan.

Schedule 1-A

4. <u>No Defenses</u>. The Mortgage Loan is not subject to any right of rescission, set-off, counterclaim
 or defense, including, without limitation, the defense of usury, and the operation of any
 of the terms of the Mortgage Note, the Mortgage or any other related Loan Document, or the
 exercise of any right thereunder, will not render either the Mortgage Note, the Mortgage
 or any other related Loan Document unenforceable, in whole or in part and no such right of
 rescission, set-off, counterclaim or defense has been asserted in writing with respect thereto,
 and no Mortgagor in respect of the Mortgage Loan was a debtor in any state or Federal bankruptcy
 or insolvency proceeding on the related origination date of the Mortgage Loan. Each Seller
 has no knowledge and has not received any notice that any Mortgagor in respect of the Mortgage
 Loan is presently a debtor in any state or federal bankruptcy or insolvency proceeding.

5. <u>Hazard Insurance</u>. The Mortgaged Property is insured by a fire and extended perils insurance
 policy, issued by a Qualified Insurer, and such other hazards as are customary in the area
 where the Mortgaged Property is located, and to the extent required by each Seller as of
 the related origination date consistent with the Underwriting Guidelines, against other risks
 insured against by Persons operating like properties in the locality of the Mortgaged Property,
 in an amount not less than the lesser of (i) one hundred percent (100%) of the replacement
 cost of all improvements to the Mortgaged Property or (ii) the outstanding principal
 balance of the Underlying Mortgage Loan. If any portion of the Mortgaged Property (other
 than a Mortgaged Property located in the State of California) is in an area identified by
 any federal Governmental Authority as having special flood hazards, and flood insurance is
 available, a flood insurance policy meeting the current guidelines of the Federal Emergency
 Management Agency is in effect with a generally acceptable insurance carrier, in an amount
 representing coverage not less than the least of (1) the outstanding principal balance
 of the Mortgage Loan, (2) the full insurable value of the Mortgaged Property, and (3) the
 maximum amount of insurance available under the National Flood Insurance Act of 1968, as
 amended by the Flood Disaster Protection Act of 1974. All such insurance policies (collectively,
 the " <u>hazard insurance policy</u> ") contain a standard mortgagee clause naming
 the applicable Seller, its successors and assigns (including, without limitation, subsequent
 owners of the Mortgage Loan), as mortgagee, and, to the extent such agreement is commercially
 available from the related insurer, may not be reduced, terminated or canceled without 30
 days' prior written notice to the mortgagee. No such notice has been received by such
 Seller. All premiums on such insurance policy have been paid or the grace period for any
 payment default has not lapsed. The related Mortgage obligates the Mortgagor to maintain
 all such insurance and, at such Mortgagor's failure to do so, authorizes the mortgagee
 to maintain such insurance at the Mortgagor's cost and expense and to seek reimbursement
 therefor from such Mortgagor. Where required by state law or regulation, the Mortgagor has
 been given an opportunity to choose the carrier of the required hazard insurance, provided
 the policy is not a "master" or "blanket" hazard insurance policy
 covering a condominium, or any hazard insurance policy covering the common facilities of
 a planned unit development. To each Seller's knowledge, the hazard insurance policy
 is the valid and binding obligation of the insurer and is in full force and effect. Each
 Seller has not engaged in, and has no knowledge of the Mortgagor having engaged in, any act
 or omission that would impair the coverage of any such policy, the benefits of the endorsement
 provided for herein, or the validity and binding effect of either including, without limitation,
 no unlawful fee, commission, kickback or other unlawful compensation or value of any kind
 has been or will be received, retained or realized by any attorney, firm or other Person,
 and no such unlawful items have been received, retained or realized by any Seller.

Schedule 1-A

6. <u>Compliance with Applicable Laws</u>. (i) Any and all requirements of any federal, state or local
 law and licensing agreements including, without limitation, usury or unfair and deceptive
 acts and practices laws applicable to the Mortgage Loan have been complied with in all material
 respects and (ii) the consummation of the transactions contemplated hereby will not
 involve the violation by any Seller of any such laws or regulations.

7. <u>No Satisfaction of Mortgage</u>. The Mortgage has not been satisfied, canceled, subordinated
 or rescinded, in whole or in part, and the Mortgaged Property has not been released from
 the lien of the Mortgage except in accordance with the terms of the Mortgage and related
 agreements or Seller's underwriting policies, in whole or in part, nor has any instrument
 been executed that would effect any such release, cancellation, subordination or rescission.
 Each Seller has not waived the performance by the Mortgagor of any action, if the Mortgagor's
 failure to perform such action would cause the Mortgage Loan to be in default, nor has any
 Seller waived any default resulting from any action or inaction by the Mortgagor.

8. <u>Location and Type of Mortgaged Property</u>. The Mortgaged Property consists of a single parcel (or
 adjacent parcels consisting of the entire applicable real property) of real property with
 an Eligible Mortgage Loan. While the Mortgage Loan is subject to a Transaction, no portion
 of the related Mortgaged Property shall be used (i) as the Mortgagor's primary
 residence or in any other manner that would cause the Mortgaged Property to be considered
 an owner-occupied Mortgaged Property or (ii) for any other personal or household purposes
 by Mortgagor.

9. <u>Valid First Lien</u>. The Mortgage is a valid, subsisting, enforceable and perfected first priority
 lien and first priority security interest on the real property included in the Mortgaged
 Property, including all buildings on the Mortgaged Property and all installations and mechanical,
 electrical, plumbing, heating and air conditioning systems located in or annexed to such
 buildings, and all additions, alterations and replacements made at any time with respect
 to the foregoing, subject only to Permitted Liens. Any security agreement, chattel mortgage
 or equivalent document related to and delivered in connection with the Mortgage Loan establishes
 and creates a valid, subsisting and enforceable first lien and first priority security interest
 on the property described therein (subject to Permitted Liens) and each Seller has full right
 to pledge and assign the same to Buyer. Except as otherwise disclosed to Buyer in writing,
 the Mortgaged Property was not, as of the related origination date of the Mortgage Loan and
 to any Seller's knowledge, subject to a mortgage, deed of trust, deed to secure debt
 or other security instrument creating a lien subordinate to the lien of the Mortgage, subject
 only to Permitted Liens.

Schedule 1-A

10. <u>Validity of Mortgage Documents</u>. The Mortgage Note and the Mortgage and any other agreement executed
 and delivered by a Mortgagor or guarantor, if applicable, in connection with a Mortgage Loan
 are genuine, and each is the legal, valid and binding obligation of the maker thereof enforceable
 in accordance with its terms. All parties to the Mortgage Note, the Mortgage and any other
 such related agreement had legal capacity to enter into the Mortgage Loan and to execute
 and deliver the Mortgage Note, the Mortgage and any such agreement, and the Mortgage Note,
 the Mortgage and any other such related agreement have been duly and properly executed by
 such related parties. No fraud, error, omission, misrepresentation, negligence or similar
 occurrence with respect to a Mortgage Loan has taken place on the part of any Seller or,
 to the knowledge of each Seller, any other Person, including, without limitation, the Mortgagor,
 any appraiser, any builder or developer, or any other party involved in the origination of
 the Mortgage Loan. To each Seller's knowledge, except as disclosed to Buyer in writing,
 all tax identifications and property descriptions are legally sufficient; and tax segregation,
 where required, has been completed.

11. <u>Full Disbursement of Proceeds</u>. Except with respect to any Mortgagor escrows, holdbacks or
 future funding obligations, including Construction Holdback Amounts and other Holdback Amounts
 which are established pursuant to the terms of the related Mortgage Loan or with respect
 to any construction loan and that conform in all material respects to the applicable requirements
 of the Underwriting Guidelines, there is no further requirement for future advances under
 the Mortgage Loan and any and all requirements as to disbursements of any escrow or holdback
 funds therefor have been complied with. All costs, fees and expenses incurred in making or
 closing the Mortgage Loan and the recording of the Mortgage were paid. The Mortgagor is not
 entitled to any refund of any amounts paid or due under the Mortgage Note, Mortgage or any
 other related Loan Document.

12. <u>Ownership</u>.
 Each Seller has full right to sell the Mortgage Loan to Buyer free and clear of any encumbrance,
 equity, participation interest, lien, pledge, charge, claim or security interest, and has
 full right and authority subject to no interest or participation of, or agreement with, any
 other party, to sell each Mortgage Loan pursuant to this Agreement and following the sale
 of each Mortgage Loan, Buyer will own such Mortgage Loan free and clear of any encumbrance,
 equity, participation interest, lien, pledge, charge, claim or security interest, except
 (i) any such security interest created pursuant to the terms of this Agreement and (ii) any
 Permitted Liens.

13. <u>Doing Business</u>. The Seller is (i) in compliance in all material respects with any and
 all applicable licensing requirements of the laws of the state wherein the Mortgaged Property
 is located, and (ii) to the extent required under the laws of such state, either (A) organized
 under the laws of such state, (B) qualified to do business in such state, (C) a
 federal savings and loan association, a savings bank or a national bank having a principal
 office in such state, (D) not doing business in such state or (E) the failure to
 qualify to do business in such state could not reasonably be expected to adversely affect
 any holder's interests in such Mortgage Loan.

Schedule 1-A

14. <u>Title Insurance</u>. The Mortgage Loan is covered by either (i) an irrevocable title commitment,
 or an attorney's opinion of title and abstract of title, each of which must be in form
 and substance acceptable to prudent mortgage lending institutions making mortgage loans in
 the area wherein the Mortgaged Property is located or (ii) an ALTA lender's title
 insurance policy or other generally acceptable form of policy or insurance acceptable to
 Buyer and each such title insurance policy is issued by a title insurer acceptable to Buyer
 and qualified to do business in the jurisdiction where the Mortgaged Property is located,
 insuring each Seller, its successors and assigns, as to the first priority lien of the Mortgage,
 as applicable, in the original principal amount of the Mortgage Loan, subject only to the
 Permitted Liens. Where required by state law or regulation, the Mortgagor has been given
 the opportunity to choose the carrier of the required mortgage title insurance. Additionally,
 such lender's title insurance policy (or commitment pending receipt of final policy)
 affirmatively insures ingress and egress and against encroachments by or upon the Mortgaged
 Property or any interest therein. The title policy (or commitment pending receipt of final
 policy) does not contain any special exceptions (other than the standard exclusions) for
 zoning and uses and has been marked to delete the standard survey exception or to replace
 the standard survey exception with a specific survey reading. Each Seller, its successors
 and assigns, are the sole insureds of such lender's title insurance policy, and such
 lender's title insurance policy is valid and remains in full force and effect and will
 be in force and effect upon the consummation of the transactions contemplated by this Agreement.
 No claims have been made under such lender's title insurance policy, and no prior holder
 or servicer of the related Mortgage, including each Seller, has done, by act or omission,
 anything that would impair the coverage of such lender's title insurance policy, including
 without limitation, no unlawful fee, commission, kickback or other unlawful compensation
 or value of any kind has been or will be received, retained or realized by any attorney,
 firm or other Person, and no such unlawful items have been received, retained or realized
 by each Seller.

15. <u>No Defaults</u>. (i) There is no default, breach, violation or event of acceleration existing
 under the Mortgage, the Mortgage Note or any other related Loan Document (in each case, other
 than any default, breach, violation or event of acceleration arising because of (A) a
 payment default (other than a maturity default that has not been cured within thirty (30)
 days), or (B) a default, breach, violation or event of acceleration under the Mortgage,
 the Mortgage Note or any other related Loan Document with respect to a mortgage loan that
 is cross-defaulted with such Mortgage Loan (other than with respect to a default, breach,
 violation or event of acceleration that has resulted in the actual acceleration of the maturity
 of the Mortgage, the Mortgage Note or any other related Loan Document with respect to such
 cross-defaulted mortgage loan)), and (ii) no event has occurred that, with the passage
 of time or with notice and the expiration of any grace or cure period, would constitute a
 default, breach, violation or event of acceleration (in each case, other than any default,
 breach, violation or event of acceleration arising because of (A) a payment default
 (other than a maturity default that has not been cured within thirty (30) days), or (B) a
 default, breach, violation or event of acceleration under the Mortgage, the Mortgage Note
 or any other related Loan Document with respect to a mortgage loan that is cross-defaulted
 with such Mortgage Loan (other than with respect to a default, breach, violation or event
 of acceleration that has resulted in the actual acceleration of the maturity of the Mortgage,
 the Mortgage Note or any other related Loan Document with respect to such cross-defaulted
 mortgage loan)). Except as otherwise disclosed to Buyer in writing, Seller has not waived
 any default, breach, violation or event of acceleration under the Mortgage Note or any other
 related Loan Document.

Schedule 1-A

16. <u>No Mechanics' Liens</u>. Except for Permitted Liens, there are no mechanics' or
 similar liens or claims that have been filed for work, labor or material affecting the Mortgaged
 Property that are or may be liens prior to, or equal or coordinate with, the lien of the
 Mortgage.

17. <u>Location of Improvements; No Encroachments</u>. All improvements considered in determining the BPO
 Value of the Mortgaged Property lie wholly within the boundaries and building restriction
 lines of the Mortgaged Property, and no improvements on adjoining properties encroach upon
 the Mortgaged Property. No improvement located on or being part of the Mortgaged Property
 is in violation of any applicable zoning and building law, ordinance or regulation.

18. <u>Payment Terms</u>. Principal, to the extent applicable under the related Mortgage Loan, and interest
 payments on the Mortgage Loan commenced no more than sixty (60) days after funds were disbursed
 in connection with the Mortgage Loan. Interest on the Mortgage Note is payable on the first
 day of each month, with interest calculated and payable in advance or arrears, as applicable.
 Principal on the Mortgage Note is payable on the earlier of the maturity date of such Mortgage
 Note and the date on which the indebtedness thereunder becomes immediately due and payable
 thereunder. The Due Date of the first payment under the Mortgage Note is no more than sixty
 (60) days from the date of the Mortgage Note. The related Mortgagor may request advances
 up to the maximum amount permitted to be advanced by Seller to a Mortgagor under the terms
 of the related Loan Documents. Each Underlying Mortgage Loan will mature within thirty-six
 (36) months from the related origination date. The Mortgage Note does not permit Negative
 Amortization.

19. <u>Customary Provisions</u>. The Mortgage Note and the related Loan Agreement each has a stated maturity.
 The Mortgage contains customary and enforceable provisions such as to render the rights and
 remedies of the holder thereof adequate for the realization against the Mortgaged Property
 of the benefits of the security provided thereby, including, (i) in the case of a Mortgage
 designated as a deed of trust, by trustee's sale, and (ii) otherwise by judicial
 foreclosure, in each case subject to applicable law. Upon default by a Mortgagor on a Mortgage
 Loan and foreclosure on, or trustee's sale of, the Mortgaged Property pursuant to the
 proper procedures and subject to applicable law, the holder of the Mortgage Loan will be
 able to deliver good and marketable title to the Mortgaged Property. There is no homestead
 or other exemption available to a Mortgagor that would interfere with the right to sell the
 Mortgaged Property at a trustee's sale or the right to foreclose the Mortgage.

20. <u>Occupancy of the Mortgaged Property</u>. Sellers have not received notice of any violation or failure
 to conform with any such law, ordinance, regulation, standard, license or certificate. The
 Mortgagor (as opposed to renters and/or lessees) does not intend to occupy the Mortgaged
 Property for more than fourteen (14) calendar days during any one (1) calendar year.
 In connection with the origination of the Mortgage Loan, the related Mortgagor represented
 to each Seller, as applicable, that such Mortgaged Property is non-owner occupied.

Schedule 1-A

21. <u>No Additional Collateral</u>. The Mortgage Note is not and has not been secured by any collateral
 except the lien of the corresponding Mortgage and the security interest of any applicable
 security agreement and chattel mortgage referred to in clause (i) above or other collateral
 specified in the related Loan Documents.

22. <u>Deeds of Trust</u>. In the event the Mortgage constitutes a deed of trust, a trustee, authorized
 and duly qualified under applicable law to serve as such, has been properly designated and
 currently so serves and is named in the Mortgage, and no fees or expenses are or will become
 payable by the Custodian or Buyer to the trustee under the deed of trust, except in connection
 with a trustee's sale after default by the Mortgagor.

23. <u>Transfer of Mortgage Loans</u>. The Assignment Agreement is in recordable form and is acceptable for
 recording under the laws of the jurisdiction in which the Mortgaged Property is located.

24. <u>Due-On-Sale</u>.
 The Mortgage contains a provision for the acceleration of the payment of the unpaid principal
 balance of the Mortgage Loan in the event the Mortgaged Property is sold or transferred without
 the prior written consent of the mortgagee thereunder.

25. <u>Consolidation of Future Advances</u>. Any future advances made to the Mortgagor prior to the Purchase Date
 have been consolidated with the outstanding principal amount secured by the Mortgage and
 the secured principal amount, as consolidated, bears a single interest rate and single repayment
 term.

26. <u>Mortgaged Property Undamaged</u>. To each Seller's knowledge, other than structural damage being
 repaired in connection with the rehabilitation of the Mortgaged Property, the related Mortgaged
 Property is free from material structural damage. To each Seller's knowledge, there
 is no proceeding pending for the total or partial condemnation of such Mortgaged Property.

27. <u>Collection Practices; Escrow Deposits</u>. The origination and collection practices used by the related
 originator, each servicer of the Mortgage Loan and Sellers with respect to the Mortgage Loan
 have been in all respects in compliance with Accepted Servicing Practices, applicable laws
 and regulations, and have been in all respects legal and proper. With respect to escrow deposits
 and Escrow Payments, if any, all such payments are in the possession of, or under the control
 of, Sellers or Servicer on Sellers' behalf. All Escrow Payments, if any, have been
 collected in full compliance with state and federal law. No escrow deposits or Escrow Payments
 or other charges or payments due Seller have been capitalized under the Mortgage, the Mortgage
 Note or any related Loan Document. Any interest required to be paid pursuant to state, federal
 and local law has been properly paid and credited.

28. <u>Servicemembers Civil Relief Act</u>. The Mortgagor has not notified any Seller, and no Seller has knowledge,
 of any relief requested or allowed to the Mortgagor under the Servicemembers Civil Relief
 Act of 2003.

Schedule 1-A

29. <u>Evaluation/Appraisal</u>.
 The Asset Documents respect to such Underlying Mortgage Loan contain an appraisal of the
 related Mortgaged Property made and signed by an Evaluation/Appraisal Vendor (a) who,
 at the time of such Evaluation/Appraisal, met the requirements of the Seller's Evaluation/Appraisal
 policy (unless manifestly inappropriate to the Underlying Mortgage Loan) and (b) who
 satisfied (and which Evaluation/Appraisal was conducted in accordance with) all applicable
 federal and state laws and regulations in effect at the time of such Evaluation/Appraisal
 and procedures. To each Seller's knowledge, such Evaluation/Appraisal Vendor was licensed
 in the state where the Mortgaged Property is located, had no interest, direct or indirect,
 in such Mortgaged Property or in any loan made on the security thereof, and such Evaluation/Appraisal
 Vendor's compensation was not affected by the approval or disapproval of such Underlying
 Mortgage Loan. The Evaluation/Appraisal with respect to such Underlying Mortgage Loan was
 made within the three hundred sixty (360) day period prior to the Purchase Date of such Underlying
 Mortgage Loan. The Asset Documents with respect to such Underlying Mortgage Loan contain
 either an appraisal or an evaluation (if the original principal balance of the related Underlying
 Mortgage Loan is less than $250,000) of the related Mortgaged Property, in each case in form
 and substance satisfactory to Buyer and that satisfies the requirements of Title XI of the
 Financial Institutions Reform, Recovery, and Enforcement Act of 1989, as amended, and the
 regulations promulgated thereunder, all as in effect on the related origination date of the
 Underlying Mortgage Loan.

30. <u>Disclosure Materials</u>. The Mortgagor has received all disclosure materials required by applicable
 law in connection with the origination of such Mortgage Loan.

31. <u>No Equity Participation</u>. No document relating to the Mortgage Loan provides for any contingent
 or additional interest in the form of participation in the cash flow of the Mortgaged Property
 or a sharing in the appreciation of the value of the Mortgaged Property. The indebtedness
 evidenced by the Mortgage Note is not convertible to an ownership interest in the Mortgaged
 Property or the Mortgagor and Sellers have not financed and do not own, directly or indirectly,
 any equity of any form in the Mortgaged Property or the Mortgagor.

32. <u>Proceeds of Mortgage Loan</u>. The proceeds of the Mortgage Loan have not been and shall not be used
 to satisfy, in whole or in part, any debt owed or owing by the Mortgagor to any Seller or
 any Affiliate or correspondent of such Seller, except in connection with a refinanced Mortgage
 Loan.

33. <u>No Exception</u>. The Custodian has not noted any material exceptions on a Mortgage Loan Schedule
 with respect to the Mortgage Loan that would materially adversely affect the Mortgage Loan
 or Buyer's interest in the Mortgage Loan.

34. <u>Mortgage Submitted for Recordation</u>. The Mortgage either has been or will promptly be submitted
 for recordation in the appropriate governmental recording office of the jurisdiction where
 the Mortgaged Property is located.

Schedule 1-A

35. <u>Documents Genuine</u>. Such Underlying Mortgage Loan and all accompanying documents in the Asset Documents
 (including without limitation the related Loan Documents) are complete and authentic and
 all signatures thereon are genuine.

36. <u>Bona Fide Loan</u>. Such Underlying Mortgage Loan arose from a bona fide loan, complying with
 all applicable State and Federal laws and regulations, to persons having legal capacity to
 contract and is not subject to any defense, set-off or counterclaim.

37. <u>Description</u>.
 The documents relating to each Underlying Mortgage Loan conform in all material respects
 to the description thereof as set forth on the related Mortgage Loan Schedule delivered to
 the Custodian and Buyer.

38. <u>Located in U.S.</u> No collateral (including, without limitation, the related Mortgaged Property
 and the dwellings thereon and otherwise) relating to an Underlying Mortgage Loan is located
 in any jurisdiction other than in one of the forty-eight (48) contiguous states of the United
 States of America or the District of Columbia.

39. <u>Underwriting Guidelines</u>. Each Underlying Mortgage Loan was originated in accordance with the Underwriting
 Guidelines in all material respects.

40. <u>Predatory Lending Regulations; High Cost Loans</u>. None of the Mortgage Loans are classified a "high
 cost" loan under the Home Ownership and Equity Protection Act of 1994, as amended,
 or a "high cost," "threshold," "covered," "abusive,"
 "high risk" or "predatory" loan under any other applicable state,
 federal or local law (or a similarly classified loan using different terminology under a
 law, regulation or ordinance imposing heightened regulatory scrutiny or additional legal
 liability for residential mortgage loans having high interest rates, points and/or fees).

41. <u>Single Original Mortgage Note</u>. There is only one originally executed Mortgage Note not stamped
 as a duplicate with respect to such Mortgage Loan.

42. <u>Environmental Matters</u>. To each Seller's knowledge, the Mortgaged Property is free from any and
 all toxic or hazardous substances in violation of any local, state or federal environmental
 law, and there exists no violation of any local, state or federal environmental law, rule or
 regulation. To Seller's knowledge, there is no pending action or proceeding directly
 involving any Mortgaged Property in which compliance with any environmental law, rule or
 regulation is alleged to have been violated.

43. <u>Insurance</u>.
 Sellers have caused or will cause to be performed any and all acts required to preserve the
 rights and remedies of Buyer in any insurance policies applicable to the Mortgage Loans including,
 without limitation, any necessary notifications of insurers, assignments of policies or interests
 therein, and establishments of coinsured, joint loss payee and mortgagee rights in favor
 of Buyer.

44. <u>Endorsements</u>.
 Each Mortgage Note has been (or will be as of the related Purchase Date) endorsed by a duly
 authorized officer of each Seller for its own account and not as a fiduciary, trustee, trustor
 or beneficiary under a trust agreement.

Schedule 1-A

45. <u>Accuracy of Information</u>. All information in respect of such Mortgage Loan set forth on the Mortgage
 Loan Schedule is accurate in all material respects as of the related Purchase Date.

46. <u>Patriot Act</u>. The applicable originator has complied with all applicable anti-money laundering
 laws and regulations, including, without limitation, the Patriot Act. No Mortgage Loan is
 subject to nullification pursuant to Executive Order 13224 (the " <u>Executive Order</u> ") or the regulations promulgated by OFAC (the " <u>OFAC Regulations</u> ")
 or in violation of the Executive Order or the OFAC Regulations, and no Mortgagor is subject
 to the provisions of such Executive Order or the OFAC Regulations or listed as a "blocked
 person" for purposes of the OFAC Regulations.

47. <u>Cross-Collateralization</u>.
 Either (a) such Mortgage Loan is not cross-collateralized with any other mortgage loan,
 other than a Mortgage Loan that is an Underlying Mortgage Loan, or (b) such Mortgage
 Loan is cross-collateralized with another mortgage loan that is not an Underlying Mortgage
 Loan and (1) the mortgage loan that is cross-collateralized with such Underlying Mortgage
 Loan is not in default, breach, violation or event of acceleration under the Mortgage, the
 Mortgage Note or any other related Loan Document which default, breach, violation or event
 of acceleration has resulted in the actual acceleration of the maturity of the Mortgage,
 the Mortgage Note or any other related Loan Document with respect to such cross-collateralized
 mortgage loan, or (2) either such Mortgage Loan is subject to (a) the Genesis Intercreditor
 Agreement or (b) is subject to an intercreditor arrangement in respect of such Mortgage
 Loan acceptable to the Buyer has been entered into by each mortgagee or other beneficial
 owner of each mortgage loan that is cross-collateralized with such Underlying Mortgage Loan.

48. <u>Assignment of Leases and Rents</u>. If such Mortgage Loan is an RTL Loan, there exists as part of the
 related Mortgage File an Assignment of Leases and Rents (either as a separate instrument
 or incorporated into the related Mortgage). Subject to the Permitted Liens and any title
 exceptions set forth in the related title policy (each such exception, a " <u>Title Exception</u> "), each related Assignment of Leases and Rents creates a valid first-priority
 collateral assignment of, or a valid first-priority lien or security interest in, rents and
 certain rights under the related lease or leases, subject only to a license granted to the
 related Mortgagor to exercise certain rights and to perform certain obligations of the lessor
 under such lease or leases, including the right to operate the related leased property, except
 (i) as such enforcement may be limited by (a) bankruptcy, insolvency, fraudulent
 transfer, reorganization, moratorium or other similar laws affecting the enforcement of creditors'
 rights generally and (b) general principles of equity (regardless of whether such enforcement
 is considered in a proceeding in equity or at law) and (ii) that certain provisions
 in such Loan Documents (including, without limitation, provisions requiring the payment of
 default interest, late fees or prepayment/yield maintenance fees, charges and/or premiums)
 are, or may be, further limited or rendered unenforceable by or under applicable law, but
 (subject to the limitations set forth in <u>clause (i)</u> above) such limitations or
 unenforceability will not render such Loan Documents invalid as a whole or materially interfere
 with the mortgagee's realization of the principal benefits and/or security provided
 thereby. The related Mortgage or related Assignment of Leases and Rents, subject to applicable
 law, provides that, upon an event of default under the Mortgage Loan, a receiver is permitted
 to be appointed for the collection of rents or for the related mortgagee to enter into possession
 to collect the rents or for rents to be paid directly to the mortgagee.

Schedule 1-A

49. <u>Junior Liens</u>. If such Mortgage Loan is an RTL Loan, to Seller Parties' knowledge, there
 are no subordinate mortgages or junior liens securing the payment of money encumbering the
 related Mortgaged Property (other than Permitted Liens, the Title Exceptions and/or subordinate
 mortgages or junior liens subject to a customary intercreditor agreement and subordination
 agreement).

50. <u>UCC Filings</u>. If such Mortgage Loan is an RTL Loan, to the extent the Loan Documents require
 a pledge of the Capital Stock in the Mortgagor, the applicable Seller Party has filed and/or
 recorded or caused to be filed and/or recorded (or, if not filed and/or recorded, have been
 submitted in proper form for filing and/or recording), UCC financing statements in the appropriate
 public filing and/or recording offices necessary at the time of the origination of the Mortgage
 Loan to perfect a valid security interest in any collateral for such Mortgage Loan to the
 extent perfection may be effected pursuant to applicable law by recording or filing, as the
 case may be.

51. <u>Recourse Obligations</u>. If such Mortgage Loan is an RTL Loan, the Loan Documents for each Mortgage
 Loan provide that such Mortgage Loan is either (x) full recourse against the related
 Mortgagor or (y) non-recourse to the related parties thereto except that (a) the
 related Mortgagor and at least one individual or entity shall be fully liable for actual
 losses, liabilities, costs and damages arising from certain acts of the related Mortgagor
 and/or its principals specified in the related Loan Documents, which acts generally include
 the following: (i) acts of fraud or intentional material misrepresentation, (ii) misapplication
 or misappropriation of rents, insurance proceeds or condemnation awards, (iii) intentional
 material physical waste of any related Mortgaged Property, and (iv) any breach of the
 environmental covenants contained in the related Loan Documents, and (b) the Mortgage
 Loan shall become full recourse to the related Mortgagor and at least one individual or entity,
 if the related Mortgagor files a voluntary petition under federal or state bankruptcy or
 insolvency law.

Schedule 1-A

**SCHEDULE 1-B**

**REPRESENTATIONS AND WARRANTIES WITH RESPECT TO<br> REO PROPERTY**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) <u>Assets as Described</u>. The information set forth in the REO Property Summary with respect to such REO Property is complete, true and correct in all material respects as of the date or dates on which the information is furnished as specified therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) <u>Ownership</u>. An REO Subsidiary, a Trustee on behalf of the related CLT or a DST, as applicable, is the sole owner and it is the holder of the REO Property and has good and marketable title thereto, except with respect to any right of redemption to which such title may be subject as identified on the related REO Property Schedule. The REO Property is free and clear of any Lien or encumbrance other than (A) Liens for real estate taxes not yet due and payable, (B) covenants, conditions and restrictions, rights of way, easements and other matters of public record as of the date of recording of the related security instrument, such exceptions appearing of record being acceptable to mortgage lending institutions generally, (C) homeowner association or other similar Liens not extinguished pursuant to the foreclosure under applicable state law (which related fees shall be paid within a reasonable time following such foreclosure), and (D) other matters to which like properties are commonly subject which do not, individually or in the aggregate, materially interfere with the use, enjoyment or marketability of the REO Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) <u>Hazard Insurance</u>. All buildings or other customarily insured improvements upon the REO Property are insured by an insurer against loss by fire, hazards of extended coverage and such other hazards in an amount not less than 100% of the replacement cost of the improvements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) <u>Taxes, Assessments and Other Charges</u>. All required taxes, homeowner or similar association fees, charges, and assessments, governmental assessments, insurance premiums, water, sewer and municipal charges, leasehold payments or ground rents which previously became due and owing have been paid or will be paid prior to becoming a lien on the related REO Property; except for any such charges for which Sellers and/or Servicer have, after due consideration, made a determination not to pay for, in accordance with their current practice and which have been disclosed in writing to Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) <u>Condemnation</u>. To the best of the related Seller's Knowledge, there is no current or threatened condemnation proceeding with respect to the REO Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) <u>Environmental</u>. To the best of the related Seller's Knowledge, the REO Property is free, in all material respects, from any and all toxic or hazardous substances, other than those commonly used for homeowner repair and maintenance and/or household purposes, and to the best of Seller's Knowledge, there exists no pending action or proceeding directly involving the REO Property in which material compliance with any environmental law, rule or regulation is at issue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) <u>No Violation of Law</u>. None of the related Seller, the related Servicer, the related Underlying Trust or the related REO Subsidiary has received any written notice that there exists a violation that would have a material adverse effect on the value of the REO Property or Buyer's interest therein or of any local, state or federal environmental law, rule or regulation with respect to the REO Property. There has been no violation of any law or regulation or breach of any contractual obligation contained in any agreement included in the Asset Documents, by the related Seller, the related Underlying Trust (or the related Trustee on its behalf) or the related REO Subsidiary, in connection with the management of the REO Property in each case which is material and adverse to the Buyer.

Schedule 1-B

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) <u>Compliance</u>. All parties which have had any interest in the REO Property following the most recent foreclosure, whether as owner, assignee, pledgee or otherwise, are (or, during the period in which they held and disposed of such interest, were) (1) in compliance with any and all applicable licensing requirements of the laws of the state wherein the REO Property is located, and (2) organized under the laws of such state, or (3) qualified to do business in such state, or (4) federal savings and loan associations or national banks having principal offices in such state, or (5) not doing business in such state except, in each case, where any such failure is not material and adverse to Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) <u>REO Property Undamaged</u>. Except as disclosed in an REO Property Summary, each of the related Seller, the related Servicer, the related Underlying Trust (or the related Trustee on its behalf) and the related REO Subsidiary has no Actual Knowledge of any REO Property that is damaged by waste, fire, earthquake or earth movement, windstorm, flood, tornado, vandalism, natural disaster or other similar casualty which could have a material and adverse effect on the value of such REO Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) <u>Eviction Proceedings</u>. To the best of the related Seller's Knowledge, any eviction proceeding relating to an REO Property that has been commenced has been commenced in accordance with applicable law and such eviction proceeding will not have a material and adverse effect on the value of such REO Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) <u>No Cooperatives</u>. Unless otherwise noted in the related REO Property Schedule, the REO Property is not a cooperative, except to the extent the purchase of same has been approved in writing by Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) <u>Servicing</u>. The REO Property has been and is currently being managed and maintained by the related Servicer and, to the best of the related Seller's Knowledge, any other prior property manager in compliance with all material laws and regulations and customary practices employed by managers of similar REO Property in accordance with the related Servicing Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13) <u>No Litigation</u>. Other than any customary claim or counterclaim arising out of any foreclosure or collection proceeding relating to any REO Property, there is no litigation, proceeding or governmental investigation pending, or any order, injunction or decree outstanding, existing or relating to Seller or the related REO Subsidiary or any of their Subsidiaries with respect to the REO Property that would materially and adversely affect the value of the REO Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14) <u>No Mechanics' Liens</u>. To the related Seller's Actual Knowledge, there are no valid and enforceable mechanics' or similar liens or claims which have been filed for work, labor or material affecting the REO Property, which are or may become liens against the REO Property and would be reasonably likely to have a material adverse effect on the value of the REO Property.

Schedule 1-B

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15) <u>No Non-Terminable Leases; No New Leases</u>. Except as expressly acknowledged by the Buyer in writing, there are no existing lease agreements with any tenant with respect to the REO Property which (i) are not terminable upon the expiration of any notice period required by applicable law and would have a material adverse effect on the value of the REO Property or Buyer's interest therein; or (ii) were entered into after the related foreclosure date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16) <u>Management and Other Contracts</u>. To the knowledge of the related Seller and the related Servicer, there are no material management, service, supply, security, maintenance or other similar contracts or agreements with respect to any REO Property which are not terminable at will and if not terminated would have a material adverse effect on the value of the REO Property or Buyer's interest therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17) <u>No Holdover Occupants</u>. Other than with respect to an REO Property as to which the redemption period has not yet expired or the eviction process has not yet been completed, to the Knowledge of the related Seller, no holdover borrower has any right to occupy or is currently occupying any REO Property.

Schedule 1-B

**SCHEDULE 1-C**

**REPRESENTATIONS AND WARRANTIES WITH RESPECT TO<br> TRUST CERTIFICATES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The related Seller has good and marketable title to, is the sole owner and holder of, such Trust Certificate, and has full right, power and authority to sell and assign such Trust Certificate. Other than consents and approvals obtained as of the related Purchase Date or those already granted in the documents governing such Trust Certificate, no consent or approval by any Person is required in connection with Buyer's acquisition of such Trust Certificate, for Buyer's exercise of any rights or remedies in respect of such Trust Certificate or for Buyer's sale or other disposition of such Trust Certificate. No third party holds any "right of first refusal", "right of first negotiation", "right of first offer", purchase option, or other similar rights of any kind, and no other impediment exists to any such transfer or exercise of rights or remedies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) With respect to each Trust Certificate, Seller has delivered to Buyer such certificated security registered in the name of Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Each Trust Certificate constitutes 100% of the economic and beneficial ownership interest in the Purchased Assets allocated to the related Underlying Trust (or the related Trustee on its behalf) pursuant to the Trust Agreement, and such Trust Certificate has not been cancelled, satisfied or rescinded in whole or part nor has any instrument been executed that would effect a cancellation, satisfaction or rescission thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Upon consummation of the purchase contemplated to occur in respect of such Trust Certificate on the Purchase Date therefor, Seller will have validly and effectively conveyed to Buyer all legal and beneficial interest in and to such Trust Certificate free and clear of any and all liens, pledges, encumbrances, charges, security interests or any other ownership interests of any nature encumbering such Trust Certificate, other than the security interests and Liens created in favor of Buyer pursuant to the Repurchase Documents or by or through Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Each Trust Certificate has been duly and validly issued in compliance with the related Trust Agreement, and as of the date of its issuance such Trust Certificate complied in all material respects with, or was exempt from, all requirements of federal, state or local law relating to the issuance thereof including, without limitation, any registration requirements of the Securities Act of 1933, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) There is no document that by its terms modifies or affects the rights and obligations of the holder of such Trust Certificate, or the terms of the related Trust Agreement or any other agreement relating to the Trust Certificate and, since issuance, there has been no material change or waiver to any term or provision of any such document, instrument or agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) With respect to the Trust Agreement, there exists no (i) monetary default, breach or violation, (ii) material non-monetary default, breach or violation, or (iii) event which, with the passage of time or with notice and the expiration of any grace or cure period, would constitute a default, breach, violation or event of acceleration under such Trust Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) No consent, approval, authorization or order of, or registration or filing with, or notice to, any court or governmental agency or body having jurisdiction or regulatory authority over Seller is required for any transfer or assignment of such Trust Certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) Seller has not received written notice of any outstanding liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind for which the holder of such Trust Certificate is or may become obligated.

Schedule 1-C

**SCHEDULE 1-D**

**REPRESENTATIONS AND WARRANTIES WITH RESPECT TO<br> CAPITAL STOCK**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The related Seller has good and marketable title to, is the sole owner and holder of, such Capital Stock, and has full right, power and authority to sell and assign such Capital Stock. Other than consents and approvals obtained as of the related Purchase Date or those already granted in the documents governing such Capital Stock, no consent or approval by any Person is required in connection with Buyer's acquisition of such Capital Stock, for Buyer's exercise of any rights or remedies in respect of such Capital Stock or for Buyer's sale or other disposition of such Capital Stock. No third party holds any "right of first refusal", "right of first negotiation", "right of first offer", purchase option, or other similar rights of any kind, and no other impediment exists to any such transfer or exercise of rights or remedies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) With respect to each Capital Stock, Seller has delivered to Buyer such certificated security registered in the name of Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Each Capital Stock constitutes 100% of the economic and beneficial ownership interest in the Purchased Assets allocated to the related Underlying Trust (or the related Trustee on its behalf) pursuant to the Governing Documents of the related REO Subsidiary, and such Capital Stock has not been cancelled, satisfied or rescinded in whole or part nor has any instrument been executed that would effect a cancellation, satisfaction or rescission thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Upon consummation of the purchase contemplated to occur in respect of such Capital Stock on the Purchase Date therefor, Seller will have validly and effectively conveyed to Buyer all legal and beneficial interest in and to such Capital Stock free and clear of any and all liens, pledges, encumbrances, charges, security interests or any other ownership interests of any nature encumbering such Capital Stock, other than the security interests and Liens created in favor of Buyer pursuant to the Repurchase Documents or by or through Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Each Capital Stock has been duly and validly issued in compliance with the Governing Documents of the related REO Subsidiary, and as of the date of its issuance such Capital Stock complied in all material respects with, or was exempt from, all requirements of federal, state or local law relating to the issuance thereof including, without limitation, any registration requirements of the Securities Act of 1933, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) There is no document that by its terms modifies or affects the rights and obligations of the holder of such Capital Stock, or the terms of the Governing Documents of the related REO Subsidiary or any other agreement relating to the Capital Stock and, since issuance, there has been no material change or waiver to any term or provision of any such document, instrument or agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) With respect to the Governing Documents of the related REO Subsidiary, there exists no (i) monetary default, breach or violation, (ii) material non-monetary default, breach or violation, or (iii) event which, with the passage of time or with notice and the expiration of any grace or cure period, would constitute a default, breach, violation or event of acceleration under such Governing Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) No consent, approval, authorization or order of, or registration or filing with, or notice to, any court or governmental agency or body having jurisdiction or regulatory authority over Seller is required for any transfer or assignment of such Capital Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) Seller has not received written notice of any outstanding liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind for which the holder of such Capital Stock is or may become obligated.

Schedule 1-D

**SCHEDULE 2**

**NOTICE ADDRESSES AND WIRE INSTRUCTIONS**

Schedule 2

**SCHEDULE 3**

**SCHEDULE OF EXCEPTIONS TO ANY REPRESENTATIONS AND WARRANTIES**

None.

Schedule 3

**EXHIBIT A**

**[RESERVED]**

Exhibit A

**EXHIBIT B**

**FORM OF SERVICER LETTER AGREEMENT**

Exhibit B

**EXHIBIT C**

**FORM OF CLOSING CERTIFICATE**

SELLER'S OFFICER'S CERTIFICATE

**[SELLER]**

November 24, 2025

I, [___], hereby certify that I am the duly elected Secretary of [R-Home Pass Through Parent W LLC][ R-Home Pass-Through Parent TRS-W LLC], a Delaware limited liability company (the "<u>Company</u>"), and further certify, on behalf of the Company as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Attached hereto as Exhibit A is a true and correct copy of the Certificate of Formation of the Company as is in full force and effect on the date hereof. Attached hereto as Exhibit B is a true and correct copy of the limited liability company agreement of the Company as is in full force and effect on the date hereof. Attached hereto as <u>Exhibit C</u> is a Certificate of Good Standing of the Company, issued by the Secretary of State of the State of Delaware dated [DATE]. No event has occurred since the date of such good standing certificate which has affected the good standing of the Company under the laws of the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Each person who, as an officer or attorney-in-fact of the Company, signed (a) the Master Repurchase Agreement and Securities Contract, dated as of the date hereof (as amended, the "<u>Repurchase Agreement</u>"), by and among Wells Fargo Bank, National Association, as buyer ("<u>Buyer</u>"), the Company, [R-Home Pass Through Parent W LLC][ R-Home Pass-Through Parent TRS-W LLC], R-Home REO TRS-W LLC, as REO subsidiary, and Rithm Perpetual Life Residential Trust, as guarantor ("<u>Guarantor</u>"); (b) the Addendum, dated as of the date hereof (the "<u>Addendum</u>"), executed by the Company, the Guarantor and Buyer; and (c) any other document delivered prior hereto or on the date hereof in connection with the transactions contemplated in the Repurchase Agreement was, at the respective times of such signing and delivery, and is as of the date hereof, duly elected or appointed, qualified and acting as such officer or attorney-in-fact, and the signatures of such persons appearing on such documents are their genuine signatures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Exhibit D</u> attached hereto sets forth the names, titles, and specimen signatures of individuals who are duly elected, qualified and acting officers of the Company as of the date hereof, each of whom is authorized to execute and deliver on behalf of the Company, the Repurchase Agreement, the Addendum and the other Repurchase Documents and any other agreements, documents, certificates or writings in connection therewith which are required of the Company to effect or evidence the Repurchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Attached hereto as <u>Exhibit E</u> is a true and correct copy of the written consent of the sole member and managing member of the Company as of [DATE] (the "<u>Written Consent</u>") with respect to the authorization and approval of the transactions contemplated in the Repurchase Agreement; the resolutions contained in the Written Consent have not been amended, modified, annulled or revoked and are in full force and effect on the date hereof.

All capitalized terms used herein and not otherwise defined shall have the meaning assigned to them in the Repurchase Agreement.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

Exhibit C

IN WITNESS WHEREOF, I have hereunto signed my name and affixed the seal of the Company as of the date first written above.

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| | | |
|:---|:---|:---|
| [Seal] | [R-HOME PASS THROUGH PARENT W LLC][ R-HOME PASS-THROUGH PARENT TRS-W LLC] | [R-HOME PASS THROUGH PARENT W LLC][ R-HOME PASS-THROUGH PARENT TRS-W LLC] |
|  | By: |  |
|  |  | Name: |
|  |  | Title: |

---

Exhibit C

**EXHIBIT D**

**FORM OF COMPLIANCE CERTIFICATE**

Exhibit D

**EXHIBIT E**

**FORM OF CONFIRMATION**

Exhibit E

**Exhibit F**

**Form of Mortgage Loan Schedule**

Exhibit F

**EXHIBIT G**

**FORM OF REO PROPERTY SCHEDULE**

Exhibit G

**EXHIBIT H**

**FORM OF TRANSACTION REQUEST**

Exhibit H

**EXHIBIT I**

**FORM OF SELLER'S POWER OF ATTORNEY**

Exhibit I

**EXHIBIT J**

**FORM OF ASSIGNMENT AND ACCEPTANCE**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Reference is made to the Master Repurchase Agreement and Securities Contract, dated as of November 24, 2025 (as amended, restated, supplemented or otherwise modified and in effect from time to time, the "<u>Agreement</u>"), by and among R-Home Pass Through Parent W LLC ("<u>W Seller</u>"), R-Home Pass-Through Parent TRS-W LLC ("<u>TRS-W Seller</u>") and each other entity that may be subsequently added as a party to the Repurchase Agreement in the capacity of Seller (together with W Seller and TRS-W Seller, individually, each a "<u>Seller</u>" and collectively the "<u>Sellers</u>"), R-Home REO TRS-W LLC ("<u>Initial REO Subsidiary</u>"), and each other entity that may be subsequently added as a party to the Repurchase Agreement in the capacity of REO Subsidiary (together with Initial REO Subsidiary, individually, each an "<u>REO Subsidiary</u>" and collectively the "<u>REO Subsidiaries</u>"), Rithm Perpetual Life Residential Trust, as guarantor, and Wells Fargo Bank, National Association (the "<u>Buyer</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) _______________ ("<u>Assignor</u>") and _______________ ("<u>Assignee</u>") hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Assignor hereby sells and assigns and delegates, without recourse except as to the representations and warranties made by it herein, to Assignee, and Assignee hereby purchases and assumes from Assignor, an interest in and to Assignor's rights and obligations under the Agreement as of the Effective Date (as hereinafter defined) equal to the percentage interest specified on <u>Schedule I</u> hereto of all outstanding rights and obligations under the Repurchase Agreement (collectively, the "<u>Assigned Interest</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Assignor:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) hereby represents and warrants that its name set forth on <u>Schedule I</u> hereto is its legal name, that it is the legal and beneficial owner of the Assigned Interest and that such Assigned Interest is free and clear of any adverse claim;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) other than as provided herein, makes no representation or warranty and assumes no responsibility with respect to any statements, warranties or representations made in or in connection with the Agreement or any of the other Repurchase Documents, or the execution, legality, validity, enforceability, genuineness, sufficiency or value of, or the perfection or priority of any lien or security interest created or purported to be created under or in connection with, the Repurchase Agreement or any of the other Repurchase Documents, or any other instrument or document furnished pursuant thereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) makes no representation or warranty and assumes no responsibility with respect to the financial condition of Seller or the performance or observance by the Seller of any of its Repurchase Obligations.

Exhibit J

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Assignee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) confirms that it has received a copy of the Agreement, the other Repurchase Documents and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment and Acceptance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) agrees that it will, independently and without reliance upon the Buyer, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Repurchase Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) represents and warrants that its name set forth on Schedule I hereto is its legal name;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) agrees that, from and after the Effective Date, it will be bound by the provisions of the Agreement and the other Repurchase Documents and, to the extent of the Assigned Interest, it will perform in accordance with their terms all of the obligations that by the terms of the Repurchase Agreement are required to be performed by it as a Buyer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The effective date for this Assignment and Acceptance (the "<u>Effective Date</u>") shall be the date specified on <u>Schedule I</u> hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) As of the Effective Date, (a) Assignee shall be a party to the Agreement and, to the extent of the Assigned Interest, shall have the rights and obligations of Buyer thereunder and (b) Assignor shall, to the extent that any rights and obligations under the Agreement have been assigned and delegated by it pursuant to this Assignment and Acceptance, relinquish its rights (other than provisions of the Agreement and the other Repurchase Documents that are specified under the terms thereof to survive the payment in full of the Repurchase Obligations) and be released from its obligations under the Agreement (and, if this Assignment and Acceptance covers all or the remaining rights and obligations of such Assignor under the Agreement, such Assignor shall cease to be a party thereto).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) As of the Effective Date [check one]:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Assignee is an Eligible Assignee; no consent of Seller is necessary. _____

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A Default or Event of Default exists; no consent of Seller is necessary. _____

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No Default or Event of Default exists; Assignee is not an Eligible Assignee; Seller has consented to this Assignment and Acceptance as contemplated under the Agreement. ______

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Assignor and Assignee shall make all appropriate adjustments in payments under the Agreement for periods prior to the Effective Date directly between themselves.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) This Assignment and Acceptance shall be governed by, and construed and interpreted in accordance with, the laws of the State of New York.

Exhibit J

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) This Assignment and Acceptance shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns. This Assignment and Acceptance may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of Schedule I hereto in Portable Document Format (PDF) or by telecopier or facsimile transmission shall be effective as delivery of an originally executed counterpart of this Assignment and Acceptance.

**IN WITNESS WHEREOF**, each of Assignor and Assignee have caused <u>Schedule I</u> hereto to be executed by their respective officers thereunto duly authorized, as of the date specified thereon.

Exhibit J

<u>Schedule I</u>

to

ASSIGNMENT AND ACCEPTANCE

Assignor:

Assignee:

Effective Date: __________ __, 20__

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| | |
|:---|:---|
| &nbsp;&nbsp;Assigned Purchase Price | &nbsp;&nbsp;$|
| &nbsp;&nbsp;Aggregate Purchase Price | &nbsp;&nbsp;$|
| &nbsp;&nbsp;Assigned Buyer Percentage | &nbsp;&nbsp; % |
| &nbsp;&nbsp;Outstanding Aggregate Purchase Amount | &nbsp;&nbsp;$|
| &nbsp;&nbsp;Outstanding Buyer Purchase Amount | &nbsp;&nbsp;$|

---

<u>Assignor</u>:

---

| | |
|:---|:---|
| __________________________, as Assignor<br> *[Type or print legal name of Assignor]* | __________________________, as Assignor<br> *[Type or print legal name of Assignor]* |
| By: |  |
|  | Name: |
|  | Title: |
|  | Dated: __________ __, 20__ |

---

Exhibit J

<u>Assignee</u>:

---

| | |
|:---|:---|
| __________________________, as Assignor<br> *[Type or print legal name of Assignor]* | __________________________, as Assignor<br> *[Type or print legal name of Assignor]* |
| By: |  |
|  | Name: |
|  | Title: |
|  | Dated: __________ __, 20__ |
|  | Address for Notices: |

---

Exhibit J

## Exhibit 21.1

**Exhibit 21.1**

**Rithm Perpetual Life Residential Trust**

**List of Subsidiaries**

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Subsidiary** | &nbsp;&nbsp;**Jurisdiction of Formation** |
| &nbsp;&nbsp;R-Home Aggregator LLC | &nbsp;&nbsp;Delaware |
| &nbsp;&nbsp;R-Home Pass-Through Parent TRS-W LLC | &nbsp;&nbsp;Delaware |
| &nbsp;&nbsp;R-Home REO TRS-W LLC | &nbsp;&nbsp;Delaware |
| &nbsp;&nbsp;R-Home Pass-Through Trust TRS-W | &nbsp;&nbsp;New York |
| &nbsp;&nbsp;R-Home Pass Through Parent W LLC | &nbsp;&nbsp;Delaware |
| &nbsp;&nbsp;R-Home Pass-Through Trust W | &nbsp;&nbsp;New York |
| &nbsp;&nbsp;R-Home Pass Through Parent RTL-C LLC | &nbsp;&nbsp;Delaware |
| &nbsp;&nbsp;R-Home REO RTL-C LLC | &nbsp;&nbsp;Delaware |
| &nbsp;&nbsp;R-Home Pass-Through Trust RTL-C | &nbsp;&nbsp;New York |

---