Document:

Exhibit 10.2

 

MANAGEMENT AGREEMENT

 

Management Agreement, dated as of July 8, 2014
(the “Agreement”), among Great Ajax Corp., a Maryland corporation (“Ajax”), Great Ajax Operating
Partnership LP, a Delaware limited partnership (the “Operating Partnership” and together with Ajax and any current
or future subsidiaries of Ajax, the “Company”), and Thetis Asset Management LLC, a Delaware limited liability
company (the “Manager”).

 

Ajax is a recently formed corporation that intends
to qualify as a “real estate investment trust” (“REIT”) for U.S. federal income tax purposes beginning
with its taxable year ending December 31, 2014 and will elect to receive the tax benefits accorded by Sections 856 through 860
of the Internal Revenue Code of 1986, as amended (the “Code”).  Ajax is the sole member of Great Ajax
Operating LLC, a Delaware limited liability company that is the sole general partner of the Operating Partnership (the “General
Partner”).  Ajax, for itself, the General Partner, the Operating Partnership and any other current and future subsidiaries
of Ajax, desires to retain the Manager as the Company’s exclusive provider of management and other services on the terms
and conditions hereinafter set forth, and the Manager wishes to be retained to provide such services.

 

NOW, THEREFORE, in consideration of the premises
and for other good and valuable consideration, the parties agree as follows:

 

1.           Duties
of the Manager; Exclusivity.

 

(a)          Ajax,
for itself, the General Partner, the Operating Partnership and any other current and future subsidiaries of Ajax, employs the Manager
to provide management, corporate governance, administrative and other services to the Company pursuant to this Agreement, subject
to the supervision of the Board of Directors of Ajax (the “Ajax Board of Directors”). Such services will be
provided for the period and upon the terms herein set forth, in each case, in accordance with the investment objectives, policies
and restrictions determined by the Ajax Board of Directors and in accordance with all applicable federal, state and local laws,
rules and regulations.

 

(i)          Without
limiting the generality of the foregoing, the Manager shall for or on behalf of the Company, during the term and subject to the
provisions of this Agreement, (a) perform and administer all of the day-to-day operations of the Company; (b) determine investment
criteria based on the investment policies determined by, and in cooperation with, the Ajax Board of Directors; (c) source, analyze
and execute acquisitions of Real Estate Assets (as defined in Section 1(a)(ii)); (d) implement and execute securitization and financing
activities; (e) analyze and execute sales of the Company's assets and properties; (f) oversee all services provided by Gregory
Funding LLC (the “Servicer”) pursuant to the Servicing Agreement of even date herewith among the Servicer, Ajax
and the Operating Partnership (as amended or modified from time to time, the “Servicing Agreement”); (g) oversee
the Servicer's property management, lease management and renovation management services of the Company’s single family and
smaller multi-family and commercial mixed-use retail residential property and other real property; (h) perform asset management
and corporate governance duties; (i) perform such

 

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services as are set forth in Schedule I of this
Agreement; and (j) provide the Company with such other related services as the Company may, from time to time, reasonably require.

 

(ii)          In
the event that the Company determines to incur debt or other financing for the purpose of any investment in Real Estate Assets
(as defined below) or for other appropriate reasons, as determined by the Ajax Board of Directors, the Manager will use commercially
reasonable efforts to arrange for such financing on the Company’s behalf, subject to the oversight and approval of the Ajax
Board of Directors. If, in the Manager’s judgment, it is necessary or desirable for the Company to make, or for the Servicer,
acting on behalf of the Company to make, investments in Real Estate Assets through a special purpose vehicle, the Manager shall
have authority to create or arrange for the creation of such special purpose vehicle and to cause the Company or the Servicer,
on behalf of the Company, to make such investments in Real Estate Assets through such special purpose vehicle. For purposes of
this Agreement, the term “Real Estate Assets” shall include the following assets: (a) re-performing, sub-performing,
non-performing and, as appropriate, performing residential mortgage loans on single-family homes, smaller multi-family residential
properties, or mixed use retail/residential properties, (b) residential mortgage-backed securities resulting from securitizations
undertaken by Ajax or its affiliates, (c) single-family homes, smaller multi-family residential properties and smaller mixed use
retail/residential properties for sale or rent, (d) mortgage servicing rights, and (e) any other assets or investments as
may be directed by the Ajax Board of Directors.  

 

(iii)          In
addition to the services set forth in Section 1 hereof, including, without limitation, the services provided as set forth
on Schedule I, the parties shall have the right to enter into statements of work (“SOWs”) to set forth
the terms of any related or additional services to be performed hereunder. Any SOW shall be agreed to by each party thereto, shall
be in writing, and (a) shall contain: (i) the identity of each of the service provider and the service recipient; (ii) a description
of the services to be performed thereunder; (iii) the applicable performance standard for the provision of such service; (iv) the
amount, schedule and method of compensation for provision of such service; and (b) may contain (i) the service recipient’s
standard operating procedures for receipt of services similar to such service, including operations, compliance requirements and
related training schedules; (ii) information technology support requirements of the service recipient with respect to such service;
and (iii) training and support commitments with respect to such service. The terms and conditions of this Agreement shall apply
to any SOW.

 

(b)          The
Manager accepts such employment and agrees during the term hereof to use commercially reasonable efforts to render the services
described herein for the compensation provided herein.

 

(c)          During
the term of this Agreement, (i) the Manager shall be the exclusive provider of management services to the Company, and (ii)
none of Ajax, the Operating Partnership or any of their respective subsidiaries shall employ or contract with any other party to
receive the same or substantially similar services as set forth herein without the prior written consent of the Manager, which
may be withheld by the Manager in its sole discretion.

 

(d)          The
Manager shall for all purposes herein provided be deemed to be an independent contractor and, except as expressly provided or authorized
herein, shall have no

 

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authority to act for or represent Ajax, the Operating
Partnership or any of their respective subsidiaries in any way or otherwise be deemed an agent of Ajax, the Operating Partnership
or any of their respective subsidiaries.

 

(e)          The
Manager shall keep and preserve for the period required by the Company any books and records relevant to the provision of its management,
administrative and other services to the Company and shall specifically maintain all books and records with respect to the Company’s
portfolio transactions and shall render to the Company such periodic and special reports as the Company may reasonably request.
The Manager agrees that all records that it maintains for the Company are the property of the Company and will surrender promptly
to the Company any such records upon Ajax’s or the Operating Partnership’s request, provided that the Manager
may retain a copy of such records.

 

(f)          Unless
and until such time as the Ajax Board of Directors notifies the Manager that it has determined that it is no longer in the best
interest of Ajax to continue to qualify as a REIT and Ajax’s REIT election has been revoked, the Manager shall refrain from
any action that, in its commercially reasonable judgment made in good faith, would adversely and materially affect the qualification
of Ajax as a REIT. If the Manager is ordered to take any action by the Ajax Board of Directors, the Manager shall promptly notify
the Ajax Board of Directors if it is the Manager’s judgment that such action would adversely and materially affect such qualification.
Notwithstanding the foregoing, neither the Manager nor any of its affiliates shall be liable to the Company, the Board or the Company’s
stockholders, partners or members, for any act or omission by the Manager or any of its affiliates, except as provided in Section
10 hereof.  

 

(g)          Unless
and until such time as the Ajax Board of Directors notifies the Manager that it has determined that it is no longer in the best
interest of Ajax to continue to satisfy the requirements for exemption from registration under the Investment Company Act of 1940,
as amended, the Manager shall refrain from any action that, in its commercially reasonable judgment made in good faith, would adversely
and materially affect the ability of Ajax to continue to satisfy such exemption requirements. If the Manager is ordered to take
any action by the Ajax Board of Directors, the Manager shall promptly notify the Ajax Board of Directors if it is the Manager’s
judgment that such action would adversely and materially affect such exemption. Notwithstanding the foregoing, neither the Manager
nor any of its affiliates shall be liable to the Company, the Board or the Company’s stockholders, partners or members, for
any act or omission by the Manager or any of its affiliates, except as provided in Section 10 hereof.

 

2.           Devotion
of Time. Subject to Section 8 hereof:

 

(a)          The
Manager assumes no responsibility under this Agreement other than to render the services called for hereunder, either directly
or through its subsidiaries. The Manager shall perform the services required hereunder on Business Days (as defined in Section
21 below) during hours that constitute regular business hours for each of the Company and the Manager, unless otherwise agreed.
The Company shall not resell, subcontract, license, sublicense or otherwise transfer any of the services to any person whatsoever
or permit use of any of the services by any person other than by the Company directly in connection with the conduct of its business
in the ordinary course of its business.

 

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(b)          The
Manager and its affiliates will provide the Company with a management team, including a chief executive officer, a president, a
chief financial officer, and other appropriate senior executives, subject to the approval of the Ajax Board of Directors. The Manager
is not obligated to dedicate any of its personnel exclusively to the Company, nor is the Manager or its personnel obligated to
dedicate any specific portion of its or their time to the Company.

 

(c)          Managers,
partners, officers, employees, personnel and agents of the Manager or affiliates of the Manager may serve as directors, officers,
employees, personnel, agents, nominees or signatories for Ajax, the Operating Partnership or any of their respective subsidiaries,
to the extent permitted by their governing documents or by any resolutions duly adopted by the Ajax Board of Directors pursuant
to the governing documents of Ajax or the Operating Partnership, respectively. When executing documents or otherwise acting in
such capacities for Ajax, the Operating Partnership or any of their respective subsidiaries, such persons shall use their respective
titles in Ajax, the Operating Partnership or any of their respective subsidiaries.

 

(d)          The
Manager shall have the exclusive right to select, employ, pay, supervise, administer, direct and discharge any of its employees
who will perform services. The Manager shall be responsible for paying such employees’ compensation and benefits. With respect
to each service, the Manager shall use commercially reasonable efforts to have qualified individuals provide such service; provided,
however, that (i) the Manager shall not be obligated to have any individual participate in the provision of any service if
the Manager determines that such participation would adversely affect the Manager or its affiliates; and (ii) none of the Manager
or its affiliates shall be required to continue to employ any particular individual during the applicable service period.

 

3.           Representations,
Warranties and Covenants of the Company.  Ajax and the Operating Partnership, jointly and severally, represents,
warrants and covenants to the Manager as of the date of this Agreement:

 

(a)          Each
of Ajax and the Operating Partnership is duly organized, validly existing and in good standing under the laws of the state of its
formation and has full power, authority, and legal right to conduct its business as is presently conducted, and to execute, deliver,
and perform its obligations under this Agreement;

 

(b)          Each
of Ajax and the Operating Partnership is duly qualified to do business and is in good standing (or is exempt from such requirement)
in any state required in order to conduct business and has obtained all necessary licenses and approvals required under all applicable
federal, state or local laws, rules and regulations and any other applicable requirements of any government or agency or instrumentality
thereof, as such may be amended, modified or supplemented from time to time;

 

(c)          Each
of Ajax and the Operating Partnership has duly authorized by all necessary action on its part, the execution, delivery and performance
of this Agreement, has duly executed and delivered this Agreement, and this Agreement, assuming due authorization, execution and
delivery by the Manager, constitutes a legal, valid and binding obligation of each of Ajax and the

 

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Operating Partnership, enforceable against it
in accordance with its terms except as the enforceability thereof may be limited by bankruptcy, insolvency or reorganization or
similar laws affecting the enforcement of creditors' rights generally and by the availability of equitable remedies;

 

(d)          The
execution and delivery of this Agreement by each of Ajax and the Operating Partnership and their respective performance of and
compliance with the terms of this Agreement will not violate or conflict with either of their formation documents or constitute
a default under or result in a breach or acceleration of, any material contract, agreement or other instrument to which either
of them is a party or which may be applicable to either of them or their respective assets;

 

(e)          Neither
Ajax nor the Operating Partnership is in violation of, and the execution and delivery of this Agreement by Ajax and the Operating
Partnership and their respective performance and compliance with the terms of this Agreement will not constitute a violation with
respect to, any order or decree of any court or any order or regulation of any federal, state, municipal or governmental agency
having jurisdiction over either of them or their respective assets, which violation might have consequences that would materially
and adversely affect the condition (financial or otherwise) or the operation of the Company or its assets taken as a whole or could
be reasonably be expected to have consequences that would materially and adversely affect the performance of their respective obligations
and duties hereunder;

 

(f)          There
are no actions or proceedings against, or investigations of, either Ajax or the Operating Partnership before any court, administrative
or other tribunal (a) that might prohibit its entering into this Agreement or assert the invalidity of this Agreement, (b) seeking
to prevent the consummation of the transactions contemplated by this Agreement, (c) that might prohibit or materially and adversely
affect the performance by either Ajax or the Operating Partnership of its obligations under, or the validity or enforceability
of, this Agreement or (d) seeking any determination or ruling that would adversely affect the validity and enforceability of this
Agreement; and

 

(g)          No
consent, approval, authorization or order of any court or governmental agency or body is required for the execution, delivery and
performance by either Ajax or the Operating Partnership of, or compliance by either of them with, this Agreement or the consummation
of the transactions contemplated by this Agreement, except for such consents, approvals, authorizations or orders, if any, that
have been obtained prior to the date of this Agreement.

 

4.           Representations,
Warranties and Covenants of the Manager.  The Manager represents, warrants and covenants to the Company as of the
date of this Agreement:

 

(a)          The
Manager is duly organized, validly existing and in good standing under the laws of the state of its formation and has full power,
authority, and legal right to conduct its business as is presently conducted, and to execute, deliver, and perform its obligations
under this Agreement;

 

(b)          The
Manager is duly qualified to do business and is in good standing (or is exempt from such requirement) in any state required in
order to conduct business and has

 

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obtained all necessary licenses and approvals
required under all applicable federal, state or local laws, rules and regulations and any other applicable requirements of any
government or agency or instrumentality thereof, as such may be amended, modified or supplemented from time to time;

 

(c)          The
Manager has duly authorized by all necessary action on its part, the execution, delivery and performance of this Agreement, has
duly executed and delivered this Agreement, and this Agreement, assuming due authorization, execution and delivery by the Company,
constitutes a legal, valid and binding obligation of the Manager, enforceable against it in accordance with its terms except as
the enforceability thereof may be limited by bankruptcy, insolvency or reorganization or similar laws affecting the enforcement
of creditors' rights generally and by the availability of equitable remedies;

 

(d)          The
execution and delivery of this Agreement by the Manager and the performance of and compliance with the terms of this Agreement
will not violate or conflict with the Manager's formation documents or constitute a default under or result in a breach or acceleration
of, any material contract, agreement or other instrument to which the Manager is a party or which may be applicable to the Manager
or its assets;

 

(e)          The
Manager is not in violation of, and the execution and delivery of this Agreement by the Manager and its performance and compliance
with the terms of this Agreement will not constitute a violation with respect to, any order or decree of any court or any order
or regulation of any federal, state, municipal or governmental agency having jurisdiction over the Manager or its assets, which
violation might have consequences that would materially and adversely affect the condition (financial or otherwise) or the operation
of the Manager or its assets or could be reasonably be expected to have consequences that would materially and adversely affect
the performance of its obligations and duties hereunder;

 

(f)          There
are no actions or proceedings against, or investigations of, the Manager before any court, administrative or other tribunal (a)
that might prohibit its entering into this Agreement or assert the invalidity of this Agreement, (b) seeking to prevent the consummation
of the transactions contemplated by this Agreement, (c) that might prohibit or materially and adversely affect the performance
by the Manager of its obligations under, or the validity or enforceability of, this Agreement or (d) seeking any determination
or ruling that would adversely affect the validity and enforceability of this Agreement; and

 

(g)          No
consent, approval, authorization or order of any court or governmental agency or body is required for the execution, delivery and
performance by the Manager of, or compliance by the Manager with, this Agreement or the consummation of the transactions contemplated
by this Agreement, except for such consents, approvals, authorizations or orders, if any, that have been obtained prior to the
date of this Agreement.

 

5.           Compensation
of the Manager.

 

(a)          For
the services rendered under this Agreement, the Company shall pay a base management fee (the “Base Management Fee”),
as described in Section 5(b) below, and an incentive management fee (the “Incentive Fee”), as described
in Section 5(c) below, to the

 

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Manager. The Base Management Fee and the Incentive
Fee will be calculated and payable quarterly with respect to each calendar quarter (or part thereof that the management agreement
is in effect) in arrears.

 

(b)          The
Base Management Fee shall equal 1.5% of the Ajax consolidated stockholders’ equity per annum.  For purposes of
calculating the management fee, consolidated stockholders’ equity means:

 

the sum of the
net proceeds, after deducting underwriting discounts and commissions and offering expenses payable by the Company, from any issuances
of common stock or other equity securities issued by Ajax or the Operating Partnership (without double counting) since inception
(allocated on a pro rata daily basis for such issuances during the fiscal quarter of any such issuance), plus Ajax and the Operating
Partnership’s (without double counting) retained earnings calculated in accordance with accounting principles generally accepted
in the United States (“GAAP”) at the end of the most recently completed fiscal quarter (without taking into
account any non-cash equity compensation expense incurred in current or prior periods),

 

less (i) any
amount that Ajax or the Operating Partnership pays to repurchase its common stock or units since inception, (ii) any unrealized
gains and losses and other non-cash items that have affected consolidated stockholders’ equity as reported in Ajax’s
financial statements prepared in accordance with GAAP, and (iii) one-time events pursuant to changes in GAAP, and certain
non-cash items not otherwise described above, in each case after discussions between the Manager and the Ajax Independent Directors
and approval by a majority of the Ajax Independent Directors.

 

(i)          For
the purposes of this Agreement, Ajax Independent Directors shall mean the members of the Ajax Board of Directors who are not officers,
employees or beneficial owners (or officers or employees of beneficial owners), directly or indirectly, of more than 5% of the
equity interests in (i) the Manager, the Servicer or any other entity with which the Company has a material contractual relationship
or (ii) any person or entity directly or indirectly controlling, controlled by or under common control with the Manager, and who
are otherwise “independent” in accordance with Ajax’s organizational documents and the requirements of any securities
exchange on which the equity of Ajax may then be listed. As a result of the calculation of consolidated stockholders’ equity
set forth above, the Ajax stockholders’ equity, for purposes of calculating the Base Management Fee, could be greater or
less than the amount of stockholders’ equity shown on Ajax’s consolidated financial statements.  

 

(ii)          50%
of the Base Management Fee shall be paid in shares of the common stock of Ajax (the “Common Stock”), so long
as the ownership of such additional number of shares by the Manager would not violate the 9.8% stock ownership limit set forth
in Ajax’s

 

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Articles of Incorporation as then in effect, after
giving effect to any waiver from such limit that the Ajax Board of Directors may grant to the Manager in the future. The remainder
of the Base Management Fee will be payable in cash. The number of shares to be issued to the Manager will be equal to the dollar
amount of the portion of the quarterly installment of the Base Management Fee payable in shares divided by a value equal to the
higher of (x) book value per share as of the end of the quarter immediately preceding the valuation date or (y) the value of a
share of Common Stock determined as follows:

 

A.          if
the Common Stock is traded on a securities exchange, the value shall be deemed to be the average of the closing prices of the Common
Stock on such exchange on the five Business Days after the date on which the most recent regular quarterly dividend to holders
of the Common Stock is paid;

 

B.          if
the Common Stock is not traded on a securities exchange but is actively traded over-the-counter, the value shall be deemed to be
the average of the closing bids or sales prices, as applicable, on the five Business Days after the date on which the most recent
regular quarterly dividend to holders of the Common Stock is paid; and

 

C.          if
the Common Stock is neither traded on a securities exchange nor actively traded over-the-counter, the value shall be the fair market
value per share, as reasonably determined in good faith by the Board (including a majority of the Independent Directors) of the
Company.

 

If no dividend is paid in any quarter, the calculation under clauses
(A) and (B) above shall be made as of the 60th day following the end of the preceding quarter.

 

(iii)          The
Manager will compute each quarterly installment of the Base Management Fee within 30 days after the end of the calendar quarter
with respect to which such installment is payable and promptly deliver such calculation to the Ajax Board of Directors. The amount
of the installment shown in the calculation will be due and payable no later than the date which is five Business Days after the
date of delivery of such computation to the Ajax Board of Directors.  

 

(iv)          The
Manager shall not offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract
to sell, grant any option, right or warrant for the sale of, lend or otherwise dispose of or transfer, directly or indirectly,
any of the shares of Common Stock it receives in payment of the Base Management Fee for a three year period commencing on the date
of receipt of such shares and ending on the third anniversary of receipt thereof.

 

(c)The Manager will be entitled to the Incentive Fee, which
is payable quarterly in arrears in cash in an amount equal to one fourth of 20% of the dollar amount by which (i) the sum of (A)
the aggregate cash dividends, if any, declared out of the REIT taxable income of Ajax by the Ajax Board of Directors payable to
the holders of Ajax Common Stock and (B) the aggregate cash distributions, if any, declared out of the REIT taxable income of the
Operating Partnership (without duplication) by the Operating Partnership payable to holders of units of limited partnership of
the Operating Partnership (“OP Units”) (other than any OP Units held by Ajax as a limited partner) annualized (the
“Annualized Dividends and Distributions”) in respect of such calendar quarter exceeds (ii) the product of (1) the book
value per share of Ajax Common Stock as of the end of each such quarter multiplied by the number of shares of Ajax Common Stock
and OP Units (other than any OP Units held by Ajax as a limited partner) outstanding as of the end of such calendar quarter and
(2) 8%.  In the event the Company declares a special cash dividend out of REIT taxable income at the end of any calendar year
in order to satisfy its REIT distribution requirements in addition to its regular quarterly dividend for the fourth quarter of
such calendar year, such special dividend will be aggregated with the fourth quarter dividend declared with respect to the calendar
year to which such special dividend relates for purposes of calculating the Incentive fee for such quarter.

  

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Notwithstanding the foregoing, no Incentive Fee will be payable
to the Manager with respect to any calendar quarter unless the Company’s cumulative Core Earnings is greater than zero for
the most recently completed eight calendar quarters, or the number of completed calendar quarters since the date hereof, whichever
is less.

 

(i)“Core Earnings” is a non-GAAP financial measure
and is defined as net income (loss) as determined according to GAAP, excluding non-cash equity compensation expense and any unrealized
gains or losses from mark-to-market valuation changes (excluding other-than-temporary impairments, as defined by GAAP) that are
included in net income for the applicable period. The amount will be adjusted to exclude (i) one-time events pursuant to changes
in GAAP and (ii) non-cash items that in the judgment of the Company’s officers should not be included in Core Earnings, which
adjustments in clauses (i) and (ii) shall only be excluded after discussions between the Manager and the Ajax Independent Directors
and after approval by a majority of the Ajax Independent Directors. For purposes of calculating the Incentive Fee prior to the
completion of the eight calendar quarters following the date hereof, Core Earnings will be calculated on the basis of the number
of days that this Agreement has been in effect on an annualized basis. Book value per share of Ajax Common Stock shall be as set
forth in the consolidated financial statements of the Company prepared in accordance with GAAP.

 

(ii)The Manager will be entitled to the Incentive Fee only if the Ajax Board of Directors declares a dividend from REIT taxable
income, and the Incentive Fee will be payable at the same time that the dividend is payable to Ajax stockholders. The Manager will
not receive any Incentive Fee in respect of a dividend constituting a return of capital. Calculations of REIT taxable income and
return of capital for purposes of determining the Incentive Fee shall be made in accordance with Sections 856 through 860 of the
Code and the other sections of the Code and the regulations thereunder applicable to Ajax.

 

6.           Reimbursement
of Expenses.

 

(a)          In
addition to the Base Management Fee and the Incentive Fee described in Section 5 above, the Company shall reimburse the
Manager on a monthly basis for the third party out-of-pocket costs of providing services under this Agreement; for purposes of
this Section 6, third parties do not include any employees of the Manager or the Servicer or any affiliate of the Manager
or the Servicer.  Without limiting the foregoing, the Company shall reimburse the Manager (to the extent incurred by
the Manager) and retain all responsibility for those third party costs and expenses relating to:

 

		(i)	the organization and corporate governance of Ajax, the Operating Partnership or any of the respective subsidiaries thereof;

 

		(ii)	the cost and expenses of any independent valuation firm calculating the net asset value of Ajax, the Operating Partnership
or any other respective subsidiaries thereof;

 

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		(iii)	fees and expenses payable to third parties, including agents, consultants or other advisors, in monitoring financial and legal
affairs for Ajax, the Operating Partnership or any of their respective subsidiaries thereof;

 

		(iv)	interest payable on debt, if any, incurred to finance investments in Real Estate Assets by Ajax, the Operating Partnership
or any of their respective subsidiaries;

 

		(v)	offerings of the equity or other securities of Ajax, the Operating Partnership or any of their respective subsidiaries;

 

		(vi)	management and incentive fees payable to third parties;

 

		(vii)	fees payable to third parties, including agents, consultants or other advisors, relating to, or associated with, evaluating
and making and monitoring investments in Real Estate Assets;

 

		(viii)	transfer agent and custodial fees;

 

		(ix)	federal, state and local registration fees;

 

		(x)	should the capital stock or other securities of Ajax, the Operating Partnership or any other respective subsidiaries thereof
be listed on any securities exchange, all costs of such registration and listing;

 

		(xi)	federal, state and local taxes of the Company;

 

		(xii)	independent directors’ fees and expenses;

 

		(xiii)	costs of preparing and filing reports or other documents required by the Securities and Exchange Commission or any other cost
of compliance with federal or state securities laws;

 

		(xiv)	costs of any reports, proxy statements or other notices to stockholders, if applicable, including printing costs;

 

		(xv)	the portion of the directors and officers/errors and omissions liability insurance, and any other insurance premiums allocable
to Ajax, the Operating Partnership or any other respective subsidiaries thereof;

 

		(xvi)	direct costs and expenses of administration, including printing, mailing, long distance telephone, copying, secretarial and
other staff, independent auditors and outside legal costs; and

 

		(xvii)	all other third party out-of-pocket expenses incurred by the Manager that are reasonably necessary to administer the business
of Ajax, the Operating Partnership or any subsidiary thereof under this Agreement.

 

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(b)          Notwithstanding
Section 6(a), if the Company requires services that do not fit within the ordinary course services described in this Agreement
(as an example but not as any limitation, if the Company is considering a non-ordinary course acquisition), the Company and the
Manager shall agree on the nature of the costs for which the Company shall be responsible.

 

(c)          Other
than as may be expressly agreed by the Company and the Manager, the Company will not be required to pay any portion of the rent,
telephone, utilities, office furniture, equipment, machinery and other office, internal and overhead expenses of the Manager and
its affiliates. In particular, the Manager is not entitled to be reimbursed for wages, salaries and benefits of its officers and
employees.

 

(d)          To
the extent the Manager incurs any expense in connection with the performance of its duties hereunder that (x) benefits the Company
and any other funds, entities or accounts that are managed by an Affiliate of the Manager and (y) is reimbursable by the Company
under this Agreement, such expense shall be allocated among the Company and such other funds, entities or accounts in a manner
determined in good faith by the Manager to reflect the relative benefits to the Company and such funds, entities or accounts resulting
from such expense, including, for example, in the case of most expenses, in proportion to the relative net asset values of the
entities that are benefited.

 

(e)          The
Manager may engage non-Affiliate third party contractors, for and on behalf, and at the sole cost and expense, of the Company to
provide professional services related to any of the services, or to provide any secretarial, administrative, telephone, e-mail
or other services necessary or ancillary to the services (collectively, the “Ancillary Services”), pursuant
to agreement(s) that provide for market rates and contain standard market terms; provided, that the terms of any such agreement
that requires the payment by the Company of fees or expenses that would cause the Company to materially exceed the Company’s
most recent annual budget approved by the Ajax Board of Directors shall require the prior approval of a majority of the Ajax Independent
Directors and, provided further, that without the prior approval of the Ajax Board of Directors, the Manager shall not be
permitted to outsource to a non-Affiliate its responsibility for the ultimate investment acquisition and disposition decisions
of the Company and compliance with investment guidelines approved by the Ajax Board of Directors (the “Investment Guidelines”)
and any risk parameters and other policies applicable to the provision of services to the Company by the Manager adopted by the
Ajax Board of Directors from time to time.  

 

(f)          The
Manager shall prepare a written statement of account in reasonable detail documenting the costs and expenses to be reimbursed by
the Company, and deliver the same to the Audit Committee of the Ajax Board of Directors no less frequently than on a quarterly
basis in connection with the review by the Audit Committee of the Company’s financial statements. Any costs and expense reimbursements
by the Company in accordance herewith shall be subject to adjustment at the end of each calendar year in connection with the annual
audit of the Company. In connection therewith, the Manager shall prepare and deliver to the Audit Committee of the Ajax Board of
Directors within 30 days after the conclusion of each such annual audit, a list of adjustments made as a result of, or in preparation
for, the audit. The Audit Committee of the Board of Directors shall determine, within 30 days after receipt of such list,

 

    	11

    	 

    

 

whether funds should be refunded by the Manager
to the Company or paid by the Company to the Manager, or if any accruals for the next fiscal year should be adjusted.

 

7.          Regulatory
Matters.  Each of Ajax and the Operating Partnership acknowledges that the Manager is not registered as an investment
adviser under the Investment Advisers Act of 1940, as amended (the “Advisers Act”), but that it could be required
to so register.  The Manager agrees that its activities will at all times be in compliance in all material respects with
all applicable federal, state and local laws governing its operations and investments.

 

8.          Other
Activities of the Manager.  The Manager may engage in any other business or render similar or different services
to others, including, without limitation, the direct or indirect sponsorship or management of other investment based accounts or
commingled pools of capital, however structured so long as its services to the Company are not impaired thereby; provided
that it may not engage in any such business or provide such services to any other entity that invests in the asset classes in which
the Company intends to invest so long as either the Company has on hand an average of $25 million in capital available for investment
over the previous two fiscal quarters or the Ajax Independent Directors determine that the Company has the ability to raise capital
at or above the most recent book value per share of Ajax Common Stock; provided, however, that the Manager may invest on
behalf of others in a particular investment or the same or similar asset classes if a majority of the Ajax Independent Directors
(i) determine, after reviewing a particular investment or asset class, that the Company should not make such investments; or (ii)
authorize the Manager to make such specific investment.  Notwithstanding the foregoing, nothing in this Agreement shall
limit or restrict the right of any manager, partner, officer or employee of the Manager to engage in any other business or to devote
his or her time and attention in part to any other business, whether of a similar or dissimilar nature, or to receive any fees
or compensation in connection therewith; provided that each such person shall not engage in any such business or devote
his or her time and attention to any other entity that invests in the asset classes in which the Company intends to invest so long
as either the Company has on hand an average of $25 million in capital available for investment over the previous two fiscal quarters
other than any transactions that may be in existence on the date hereof or the Ajax Independent Directors determine that the Company
has the ability to raise capital at or above the most recent book value per share of Ajax Common Stock.  It is understood
that directors, officers, employees, partners and shareholders of Ajax or the Operating Partnership are or may become interested
in the Manager and its affiliates, as directors, officers, employees, partners, shareholders, members, managers or otherwise, and
that the Manager and directors, officers, employees, partners, stockholders, members and managers of the Manager and its affiliates
are or may become similarly interested in Ajax or the Operating Partnership as shareholders, members or partners or otherwise.

 

9.          Responsibility
of Dual Directors, Officers and/or Employees.  If any person who is a manager, partner, officer or employee of the
Manager is or becomes a director, officer and/or employee of the Company and acts as such in any business of the Company, then
such manager, partner, officer and/or employee of the Manager shall be deemed to be acting in such capacity solely for the Company,
as applicable, and not as a manager, partner, officer or employee of the Manager or under the control or direction of the Manager,
even if paid by the Manager.

 

    	12

    	 

    

 

10.         Limitation
of Liability of the Manager; Indemnification.  The Manager and its officers, managers, partners, agents, employees,
controlling persons, members and any other person or entity affiliated with the Manager (collectively, the “Indemnified
Parties”) shall not be liable to Ajax, the Operating Partnership or any of their respective subsidiaries for any action
taken or omitted to be taken by the Manager in connection with the performance of any of its duties or obligations under this Agreement
or otherwise as the Manager of Ajax, the Operating Partnership or any of their respective subsidiaries with respect to the receipt
of compensation for services, and each of Ajax and the Operating Partnership shall indemnify, defend and protect the Indemnified
Parties and hold them harmless from and against all damages, liabilities, costs and expenses (including reasonable attorneys’
fees and amounts reasonably paid in settlement) (“Losses”) incurred by the Indemnified Parties in connection
with or by reason of any pending, threatened or completed action, suit, investigation or other proceeding (including an action
or suit by or in the right of the Operating Partnership, its members, or Ajax or its shareholders, or any of their respective subsidiaries
or their respective equity holders) arising out of or otherwise based upon the performance of any of the Manager’s duties
or obligations under this Agreement or otherwise as Manager of the Company; provided, that nothing contained herein shall
protect or be deemed to protect the Indemnified Parties against or entitle or be deemed to entitle the Indemnified Parties to indemnification
in respect of, any Losses incurred by the Indemnified Parties under circumstances that constitute fraud, willful misfeasance, bad
faith or gross negligence in the performance of the Manager’s duties and obligations under this Agreement or reckless disregard
of the Manager’s duties and obligations under this Agreement, as determined in a final nonappealable order of a court of
competent jurisdiction.

 

11.         No
Joint Venture.  Nothing in this Agreement shall be construed to make Ajax, the Operating Partnership and the Manager
partners or joint venturers or impose any liability as such on any of them.

 

12.         Term;
Termination.

 

(a)          This
Agreement shall be in effect until the 15th anniversary of the date first above written (the “Initial Term”)
and shall be automatically renewed for a successive one-year term each anniversary date thereafter (a “Renewal Term”)
unless terminated by a party in accordance with this Section 12 or 13.

 

(b)          Subject
to Section 13 below, neither the Company nor the Manager may terminate this Agreement without cause during the first
24 months of the Initial Term. Thereafter, subject to Section 13 below, the Company may either terminate this Agreement
without cause or, at the expiration of its term, elect not to renew this Agreement upon the determination of at least two-thirds
of the Ajax Independent Directors that (i) there has been unsatisfactory performance by the Manager that is materially detrimental
to the Company, or (ii) the compensation payable to the Manager under this Agreement is unreasonable; provided that the Company
shall not have the right to terminate this Agreement under clause (ii) if the Manager agrees to compensation that at least two-thirds
of the Ajax Independent Directors determine is reasonable pursuant to the procedure set forth below.

 

(i)          If
the Company elects to terminate this Agreement without cause or not to renew this Agreement at the expiration of the Initial Term
or any Renewal Term as set forth

 

    	13

    	 

    

 

above, the Company, shall deliver to the Manager
prior written notice (the “Termination Notice”) of its determination to terminate this Agreement without cause
or its intention not to renew this Agreement based upon the terms set forth in this Section 12(b) not less than 180 days
prior to the termination date or expiration of the then existing term, as applicable, which notice shall designate the date (the
“Effective Termination Date”), not less than 180 days from the date of the notice, on which the Manager shall
cease to provide services under this Agreement, and this Agreement shall terminate on such date; provided, however,
that in the event that such Termination Notice is given in connection with a determination that the compensation payable to the
Manager is unfair, the Manager shall have the right to renegotiate such compensation by delivering to Ajax, no fewer than 60 days
prior to the prospective Effective Termination Date, written notice (any such notice, a “Notice of Proposal to Negotiate”)
of its intention to renegotiate its compensation under this Agreement. Thereupon, the Company (represented by the Ajax Independent
Directors) and the Manager shall endeavor to negotiate in good faith the revised compensation payable to the Manager under this
Agreement. If the Manager and at least two-thirds of the Ajax Independent Directors agree to the terms of the revised compensation
to be payable to the Manager within 45 days following the receipt of the Notice of Proposal to Negotiate, the Termination Notice
shall be deemed of no force and effect and this Agreement shall continue in full force and effect on the terms stated in this Agreement,
except that the compensation payable to the Manager hereunder shall be the revised compensation then agreed upon by the parties
to this Agreement. Each of the parties agrees to execute and deliver an amendment to this Agreement setting forth such revised
compensation promptly upon reaching an agreement regarding same.

 

(ii)          In
the event that the Company and the Manager are unable to agree to the terms of the revised compensation to be payable to the Manager
during such 45-day period according to Section 12(b)(i) above, this Agreement shall terminate, such termination to be effective
on the date which is the later of (A) 10 days following the end of such 45-day period and (B) the Effective Termination
Date originally set forth in the Termination Notice.

 

(c)          In
recognition of the level of the upfront effort required by the Manager to structure and acquire the assets of the Company and the
ongoing commitment of resources by the Manager, in the event that this Agreement is terminated by the Company in accordance
with the provisions of Section 12(b) of this Agreement, the Company shall pay to the Manager, on the date on which
such termination is effective, a termination fee (the “Termination Fee”). The Termination Fee will be equal
to twice the combined Base Management Fees and Incentive Fees earned by the Manager during the 12-month period immediately preceding
the date of termination, calculated as of the end of the most recently completed fiscal quarter prior to the date of termination.
The obligation of the Company to pay the Termination Fee shall survive the termination of this Agreement.

 

(d)          Following
the first 24 months of the Initial Term, the Manager may terminate the Agreement without cause by providing written notice to Ajax
no later than 180 days prior to December 31 of any year during the Initial Term or Renewal Term, whereupon this Agreement shall
terminate effective on December 31 next following the delivery of such notice. The Company is not required to pay to the Manager
the Termination Fee if the Manager terminates this Agreement pursuant to this Section 12(d).

 

    	14

    	 

    

 

(e)          If
the Servicing Agreement is terminated for any reason, this Agreement shall automatically terminate on the same date as the Servicing
Agreement terminates, and if the Servicing Agreement is terminated for any reason other than for “cause” (as defined
therein), the Manager shall be paid the Termination Fee.

 

(f)          If
this Agreement is terminated pursuant to Section 12, such termination shall be without any further liability or obligation
of any party to the others, except with respect to the obligations provided in Sections 1(e), 12(b), 13(b),
13(c) and 14 of this Agreement. In addition, Sections 10 and 15 through 25 of this Agreement
shall survive termination of this Agreement.  Notwithstanding the foregoing, neither the Company nor the Manager may
terminate this Agreement pursuant to this Section 12 during the first 24 months of the Initial Term.

 

13.         Termination
for Cause.

 

(a)          Ajax
or the Operating Partnership may terminate this Agreement effective upon 30 days’ prior written notice of termination from
the Ajax Board of Directors to the Manager, without payment of any Termination Fee, if

 

(i)          the
Manager, its agents or its assignees materially breaches any provision of this Agreement and such breach shall continue for a period
of 30 days after written notice thereof specifying such breach and requesting that the same be remedied in such 30-day period (or
60 days after written notice of such breach if the Manager takes steps to cure such breach within 30 days of the written notice); 

 

(ii)          the
Manager commits fraud against the Company, misappropriates or embezzles funds of the Company, or acts, or fails to act, in a manner
constituting bad faith, willful misconduct, gross negligence or reckless disregard in the performance of its duties under this
Agreement; provided, however, that if any of the actions or omissions described in this clause (ii)
are caused by an employee, personnel and/or officer of the Manager or one of its affiliates and the Manager (or such affiliate)
takes all necessary and appropriate action against such person and cures the damage caused by such actions or omissions within
30 days of the Manager’s actual knowledge of its commission or omission, the Company shall not have the right to terminate
this Agreement pursuant to this Section 13(a)(ii);

 

(iii)          the
Manager is cited by a governmental authority for materially violating any law governing the performance of a service under this
Agreement, which violation cannot be or has not been cured by the 30th day from the Company’s delivery of written
notice of such citation to the Manager;

 

(iv)          there
is a dissolution of the Manager;

 

(v)           the
Manager commences a voluntary case or proceeding under any bankruptcy law, consents to the commencement of any bankruptcy or insolvency
case or proceeding against it, or files a petition or answer or consent seeking reorganization or relief against it, consents to
the entry of a decree or order for relief against it in an involuntary case or proceeding, consents to the filing of such petition
or to the appointment of or taking possession by a custodian of the Manager or for all or substantially all of its property, or
makes an

 

    	15

    	 

    

 

assignment for the benefit of creditors, or admits
in writing of its inability to pay its debts generally as they become due or takes any corporate action in furtherance of any such
action; or

 

(vi)          a
court of competent jurisdiction enters an order or decree under any bankruptcy law that is for relief against the Manager in an
involuntary case or proceeding, or adjudges the Manager bankrupt or insolvent, or approves as properly filed a petition seeking
reorganization, arrangement, adjustment or composition of or in respect of the Manager, or appoints a custodian of the Manager
or for all or substantially all of its property, or orders the winding up or liquidation of the Manager, and any such decree or
order for relief or any such other decree or order continues unstayed and in effect for a period of 120 consecutive days.

 

(b)          The
Manager may terminate this Agreement effective upon 60 days’ prior written notice of termination to Ajax in the event that
the Company shall default in the performance or observance of any material term, condition or covenant contained in this Agreement
and such default shall continue for a period of 30 days after written notice thereof specifying such default and requesting that
the same be remedied in such 30-day period (or 60 days after written notice of such breach if the Company takes steps to cure such
breach within 30 days of the written notice); provided that the Manager shall not have any right to terminate this Agreement pursuant
to this Section 13(b) to the extent that the default by the Company was a result of any act, or failure to act by the Manager
in a manner constituting bad faith, willful misconduct, gross negligence or reckless disregard in the performance of its duties
under this Agreement.  The Company is required to pay to the Manager the Termination Fee if the termination of this Agreement
is made pursuant to this Section 13(b).

 

(c)          The
Manager may terminate this Agreement in the event Ajax or the Operating Partnership becomes regulated as an “investment company”
under the Investment Company Act of 1940, as amended, with such termination deemed to have occurred immediately prior to such event.
The Company shall pay to the Manager the Termination Fee in the event that this Agreement is terminated pursuant to this Section 13(c);
provided that no Termination Fee will be payable in the event that the requirement that Ajax or the Operating Company be
regulated as an “investment company” resulted from the failure of the Manager to invest or operate the assets of the
Company in accordance with guidelines approved by the Board of Directors of Ajax.

 

14.         Action
Upon Termination.  From and after the effective date of termination of this Agreement, pursuant to Sections 12
or 13 of this Agreement, the Manager shall not be entitled to compensation for further services under this Agreement, but
shall be paid all compensation accruing to the date of termination and any applicable Termination Fee.  Upon any termination
of this Agreement for any reason, unless Ajax otherwise requests, the Manager shall use reasonable efforts to cooperate with the
Company or any persons or entity designated by the Ajax Board of Directors to succeed the Manager as the manager of the Company
(a “Successor Manager”) to accomplish an orderly transfer of the operation and management of the Company and
its investment activities to such Successor Manager.  For a period of 30 days after the effective date of any termination
of this Agreement, the Manager shall be available, through its officers, during normal business hours and not to exceed a total
of 15 hours during any week within such 30 day period, to answer questions from and consult with the Company or designated representatives
of any Successor Manager with respect to the Company’s business, operations and investment activities during the period prior
to the termination (“Post-

 

    	16

    	 

    

 

Termination Transition Assistance”).  The
Manager shall receive payment of a cash fee for any time spent providing Post-Termination Transition Assistance in an amount equal
to $500 per hour.

 

15.         Confidentiality.  The
Manager shall keep confidential any and all non-public information, written or oral, obtained by it in connection with the services
rendered hereunder and shall not disclose Confidential Information, in whole or in part, to any person other than to its representatives
who need to know such Confidential Information for the purpose of rendering services hereunder, except that the Manager may disclose
Confidential Information: (i) to the Company, its subsidiaries and affiliates; (ii) in accordance with the Servicing Agreement;
(iii) with the prior written consent of the Ajax Board of Directors; (iv) to legal counsel, accountants and other professional
advisors; (v) to appraisers, creditors, financing sources, trading counterparties, other counterparties, third-party service providers
to the Company, and others (in each case, both those actually doing business with the Company and those with whom the Company seeks
to do business) in the ordinary course of the Company’s business; (vi) to governmental officials having jurisdiction over
the Company; (vii) in connection with any governmental or regulatory filings of the Company or disclosure or presentations to Company
investors; or (viii) as required by law or legal process to which the Manager or any person to whom disclosure is permitted hereunder
is a party. If, failing the entry of a protective order or the receipt of a waiver hereunder, the Manager is, in the opinion of
counsel, required to disclose Confidential Information, the Manager may disclose without liability hereunder only that portion
of such information that its counsel advises is legally required; provided, that the Manager agrees to exercise its commercially
reasonable efforts to obtain reliable assurance that confidential treatment will be accorded such information. Notwithstanding
anything herein to the contrary, each of the following shall be deemed to be excluded from provisions hereof any Confidential Information
that (i) is available to the public from a source other than the Manager not resulting from the Manager’s violation of this
Section 15, (ii) is released in writing by the Company to the public or to persons who are not under similar obligation
of confidentiality to the Company or (iii) is obtained by the Manager from a third-party without breach by such third-party of
an obligation of confidence with respect to the Confidential Information disclosed. The Manager agrees to inform each of its officers,
employees and agents of the non-public nature of the Confidential Information and to direct such persons to treat such Confidential
Information in accordance with the terms hereof. The provisions of this Section 15 shall survive the expiration or earlier
termination of this Agreement for a period of one year.

 

16.         Taxes.  Each
party hereto shall be responsible for the cost of any sales, use, privilege and other transfer or similar taxes imposed upon that
party as a result of the transactions contemplated hereby. Any amounts payable under this Agreement are exclusive of any goods
and services taxes, value added taxes, sales taxes or similar taxes (“Sales Taxes”) now or hereinafter imposed
on the performance or delivery of services, and an amount equal to such taxes so chargeable shall, subject to receipt of a valid
receipt or invoice as required below in this Section 15, be paid by the Company to the Manager in addition to the amounts
otherwise payable under this Agreement. In each case where an amount in respect of Sales Tax is payable by the Company in respect
of a service provided by the Manager, the Manager shall furnish in a timely manner a valid Sales Tax receipt or invoice to the
Company in the form and manner required by applicable law to allow the Company to recover such tax to the extent allowable under
such law. Additionally, if the Manager is required to pay “gross-up” on withholding taxes

 

    	17

    	 

    

 

with respect to provision of the services, such
taxes shall be billed separately as provided above and shall be owing and payable by the Company. Any applicable property taxes
resulting from provision of the services shall be payable by the party owing or leasing the asset subject to such tax.

 

17.         Public
Announcements.  No party shall make, or cause to be made, any press release or public announcement or otherwise communicate
with any news media in respect of this Agreement or the transactions contemplated by this Agreement without the prior written consent
of the other parties unless otherwise required by law, in which case the party making the press release, public announcement or
communication shall, to the extent reasonably practicable and permitted by law, give the other parties reasonable opportunity to
review and comment thereon.

 

18.         Intellectual
Property. All intellectual property of the Manager used by the Manager in performing its obligations under this Agreement shall
remain the property of the Manager. All intellectual property of the Company shall remain the property of the Company.

 

19.         Assignment.  This
Agreement shall inure to the benefit of and be binding upon the parties and their respective successors and permitted assigns.
No party may assign either this Agreement or any of its rights, interests or obligations hereunder without the prior written approval
of the other parties; provided, however, that a party may assign this Agreement without the consent of the other parties to any
third party that acquires, directly or indirectly by any means, including by merger or consolidation, all or substantially all
the consolidated assets of such party. Any purported assignment in violation of this Section 19 shall be void and shall
constitute a material breach of this Agreement.

 

20.         Notices.  Any
notice under this Agreement shall be given in writing, addressed and delivered or mailed, postage prepaid, to the other parties
at their principal offices.

 

21.         Business
Day.  For the purposes of this Agreement, “Business Day” means any day other than (i) a Saturday
or a Sunday, or (ii) a day on which the New York Stock Exchange or Board of Governors of the Federal Reserve is closed.

 

22.         Force
Majeure.  Neither party hereto shall be in default of this Agreement by reason of its delay in the performance of,
or failure to perform, any of its obligations hereunder if such delay or failure is caused by strikes, acts of God, acts of the
public enemy, acts of terrorism, riots or other events that arise from circumstances beyond the reasonable control of that party.
During the pendency of such intervening event, each of the parties hereto shall take all reasonable steps to fulfill its obligations
hereunder by other means and, in any event, shall upon termination of such intervening event, promptly resume its obligations under
this Agreement.

 

23.         Waivers.  No
term or provision of this Agreement may be amended, waived or modified unless such waiver or modification is in writing and signed
by the party against whom such amendment, waiver or modification is sought to be enforced.

 

24.         Amendments.
Subject to Section 23, this Agreement may be amended by mutual written consent of the parties.

 

    	18

    	 

    

 

25.         Entire
Agreement; Governing Law; Jury Trial Waiver. This Agreement contains the entire agreement of the parties and supersedes all
prior agreements, understandings and arrangements with respect to the subject matter hereof. The agreement shall be construed in
accordance with the laws of the state of New York without regard to any conflicts of law provisions (except for Section 5-1401
of the New York General Obligations Law) and the obligations, rights and remedies of the parties hereunder shall be determined
in accordance with the laws of the state of New York, except to the extent preempted by federal law. The parties agree that the
appropriate courts in the city and county of New York, New York shall have exclusive jurisdiction for any litigation relating to
this Agreement or the rights and obligations of the parties hereunder. Each of the parties to this Agreement waives all right to
trial by jury in any action, proceeding or counterclaim (whether based upon contract, tort or otherwise) related to or arising
out of this Agreement.

 

26.         Counterparts.  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.

 

[Signature Page Follows]

 

    	19

    	 

    

 

IN WITNESS WHEREOF, the parties have caused
this Agreement to be executed as of the date first written above by their duly authorized representatives.

 

	 	GREAT AJAX CORP.

 

	 	By:	/s/ Lawrence Mendelsohn
	 	Name:	Lawrence Mendelsohn
	 	Title:	Chief Executive Officer

 

	 	GREAT AJAX OPERATING PARTNERSHIP,
	 	LP

 

	 	By:	Great Ajax Operating LLC, general partner
	 	 	 
	 	By:	Great Ajax Corp., managing member

 

	 	By:	/s/ Lawrence Mendelsohn	 
	 	Name:	Lawrence Mendelsohn
	 	Title:	Chief Executive Officer

 

	 	THETIS ASSET MANAGEMENT LLC

 

	 	By:	/s/ Lawrence Mendelsohn	 
	 	Larry Mendelsohn, Manager

 

[SIGNATURE PAGE TO MANAGEMENT AGREEMENT]

 

    	20

    	 

    

 

Exhibit 10.2

 

Schedule
I

 

SERVICES

 

	
        FINANCE AND ACCOUNTING

        Services Provided:

        ·     Corporate
        Accounting

        ·     Accounting
        Services and Reporting

        ·     Accounts
        Payables

        ·     Accounts
        Receivables

        ·     Corporate
        Secretary Support

        ·     Financial
        Reporting

        ·     Payroll
        Services

        ·     Tax

        ·     Treasury
        

         

        HUMAN RESOURCES

        Services Provided:

        ·     Benefits
        Administration

        ·     Employee
        and Contractor On-boarding

        ·     Employee
        Engagement

        ·     HR
        Administration

        ·     HR
        Strategy and Consulting

        ·     HRIS
        Administration and Reporting

        ·     Performance
        Management Platforms

        ·     Personnel
        Files

        ·     Recruiting

        ·     Salary
        Administration

        ·     Training
        and Compliance Support

         

        LEGAL

        Services Provided:

        ·     Contract
        Review Services

        ·     Corporate
        Governance Services

        ·     Intellectual
        Property Maintenance Services

        ·     License
        Maintenance Services

        ·     Litigation
        Management

        ·     Regulatory
        Compliance Services

         

        INVESTMENT COMPANY EXEMPTION

        Services Provided:

        ·     Maintaining
        compliance with exclusion and exemption from regulation as an investment company under the Investment Company Act of 1940, as amended,
        applicable to Ajax, the Operating Partnership and each of their consolidated subsidiaries

        	 	
        RISK MANAGEMENT

        Services Provided When and if Needed:

        ·     Internal
        Audit

        ·     SOX
        Compliance and SAS 70

        ·     Business
        Continuity and Disaster Recovery Planning

        ·     Information
        Security

        ·     Loan
        Quality

        ·     Quality
        Assurance

        ·     Risk
        Management

         

         

        CORPORATE SERVICES

        Services Provided:

        ·     Facilities
        Management

        ·     Mailroom
        Support

        ·     Physical
        Security

        ·     Travel
        Services

         

        VENDOR MANAGEMENT

        OPERATIONS

        Services Provided:

        ·     Contract
        Negotiation

        ·     Vendor
        Compliance

        ·     Vendor
        Management Services

        ·     Insurance
        Risk Management

         

        OTHER OPERATIONS SUPPORT

        ·     Capital
        Markets

        ·     Modeling

        ·     Quantitative
        Analytics

        ·     General
        Business Consulting

         

        REIT QUALIFICATION

        Services Provided:

        ·     Evaluating
        and recommending to the Ajax Board of Directors hedging strategies and engaging in hedging activities on Ajax’s behalf, consistent
        with Ajax’s qualification as a REIT

        ·     Counseling
Ajax regarding the maintenance of Ajax’s qualification as a REIT and monitoring compliance with the various REIT qualification
tests and other rules set out in the Code and Treasury Regulations thereunder and using commercially reasonable efforts

 

    	1

    	 

    

 

	
        to cause Ajax to qualify for taxation
        as a REIT

        ·     Causing
        Ajax to retain qualified accountants and legal counsel, as applicable, to assist in developing appropriate accounting procedures
        and systems, internal controls and other compliance procedures and testing systems with respect to financial reporting obligations
        and compliance with the provisions of the Code applicable to REITs and, if applicable, taxable REIT subsidiaries, and to conduct
        quarterly compliance reviews with respect thereto

        ·     Assisting
        Ajax in taking all necessary action to enable Ajax to make required tax filings and reports, including soliciting information from
        stockholders to the extent required by the provisions of the Code applicable to REITs

         

        OTHER OPERATIONS SUPPORT

        ·     Capital
        Markets

        ·     Modeling

        ·     Quantitative
        Analytics

        ·     General
Business ConsultingExhibit 10.3

 

 

SERVICING
AGREEMENT

 

among

 

Gregory Funding LLC,

as “Servicer”

 

and

 

Great Ajax Corp., Great Ajax Operating Partnership
L.P. and Little Ajax II LLC

collectively as “Owner”

 

Dated as of July 8, 2014

 

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	ARTICLE I. DEFINITIONS	1
	 	 	 
	ARTICLE II. ENGAGEMENT OF the SERVICER TO PERFORM SERVICING RESPONSIBILITIES	9
	 	 	 
	ARTICLE III. SERVICING OF THE mortgage loans	10
	 	 	 
	SECTION 3.01.	Servicing of the Mortgage Loans	10
	SECTION 3.02.	Collection of Mortgage Loan Payments and Rents	12
	SECTION 3.03.	Realization Upon Defaulted Mortgage Loans	13
	SECTION 3.04.	Establishment of Collection Account; Deposit in Collection Account	15
	SECTION 3.05.	Permitted Withdrawals From the Collection Account	16
	SECTION 3.06.	Permitted Withdrawals From Escrow Account	17
	SECTION 3.07.	Deposits in Escrow Account	17
	SECTION 3.08.	Payment of Taxes, Insurance and Other Charges; Collections Thereunder	18
	SECTION 3.09.	Transfer of Accounts	19
	SECTION 3.10.	Maintenance of Hazard Insurance	19
	SECTION 3.11.	Maintenance of Mortgage Impairment Insurance Policy	20
	SECTION 3.12.	Fidelity Bond, Errors and Omissions Insurance	20
	SECTION 3.13.	Title, Management and Disposition of REO Property	21
	SECTION 3.14.	Remittances	22
	SECTION 3.15.	Remittance Reports	22
	SECTION 3.16.	Statements to the Owner	22
	SECTION 3.17.	Compliance with the Homes Act	23
	SECTION 3.18.	Annual Statement as to Compliance	23
	SECTION 3.19.	Assumption Agreements	23
	SECTION 3.20.	Satisfaction of Mortgages and Release of Mortgage Files	24
	SECTION 3.21.	Servicing Compensation	25
	SECTION 3.22.	Notification of Adjustments	25
	SECTION 3.23.	Independent Public Accountants' Servicing Report	26
	SECTION 3.24.	Access to Certain Documentation	26
	SECTION 3.25.	Reports and Returns to be Filed by the Servicer	26
	SECTION 3.26.	Servicing Agreements Between the Servicers and Sub-Servicers	26
	SECTION 3.27.	Successor Servicers	27
	SECTION 3.28.	No Contractual Relationship Between Sub-Servicers and the Owner	27
	SECTION 3.29.	Advance Facility	28

 

    	 

    	 

    

 

	ARTICLE IV. REPRESENTATIONS, WARRANTIES AND COVENANTS; REMEDIES FOR BREACH	30
	 	 	 
	SECTION 4.01.	Representations and Warranties Respecting the Servicer	30
	SECTION 4.02.	Representations and Warranties Respecting the Owner	32
	SECTION 4.03.	Remedies for Breach of Representations and Warranties	33
	 	 	 
	ARTICLE V. THE SERVICER	34
	 	 	 
	SECTION 5.01.	Indemnification by the Servicer and the Owner	34
	SECTION 5.02.	Merger or Consolidation of Servicer	35
	SECTION 5.03.	Limitation on Liability of the Servicer and Others	36
	SECTION 5.04.	Resignation of the Servicer	36
	 	 	 
	ARTICLE
VI. TERMINATION	37
	 	 	 
	SECTION 6.01.	Termination for Cause	37
	SECTION 6.02.	Waiver of Defaults	38
	SECTION 6.03.	Termination Without Cause	38
	 	 	 
	ARTICLE VII. MISCELLANEOUS PROVISIONS	39
	 	 	 
	SECTION 7.01.	Successor to the Servicer	39
	SECTION 7.02.	Authorizations; Notices	39
	SECTION 7.03.	Severability Clause	40
	SECTION 7.04.	Counterparts	40
	SECTION 7.05.	GOVERNING LAW	41
	SECTION 7.06.	Successors and Assigns	41
	SECTION 7.07.	Waivers	41
	SECTION 7.08.	Exhibits	41
	SECTION 7.09.	General Interpretive Principles	41
	SECTION 7.10.	Reproduction of Documents	42
	SECTION 7.11.	Further Agreements	42
	SECTION 7.12.	Amendment	42
	SECTION 7.13.	Entire Agreement	42
	SECTION 7.14.	Limitation of Damages	42
	 	 	 
	EXHIBITS	 	 
	 	 	 
	EXHIBIT A	MORTGAGE LOAN SCHEDULE	 
	EXHIBIT B	FORM OF REQUEST FOR RELEASE	 
	EXHIBIT C	FORM OF SECTION 404 NOTICE	 
	EXHIBIT D	FORM OF BAILEE AGREEMENT	 

 

    	-ii-

    	 

    

  

SERVICING AGREEMENT

 

This is a SERVICING AGREEMENT
(the "Agreement"), dated as of July 8, 2014, by and among (i) Gregory Funding LLC (the "Servicer")
and (ii) Great Ajax Corp, a Maryland corporation, and its affiliates Great Ajax Operating Partnership L.P, a Delaware limited partnership,
Little Ajax II LLC, a Delaware limited liability company and any affiliate of such entity that becomes a party to this Agreement
by executing a Joinder Supplement (collectively, the “Owner”).

 

W I T N E
S S E T H :

 

WHEREAS, the Owner acquired
or will acquire the Mortgage Loans, including the related servicing rights, pursuant to one or more Purchase Agreements;

 

WHEREAS, in the case of each
Mortgage Loan, an Interim Servicer may have previously contracted to service the Mortgage Loans through the applicable Transfer
Date, and the Owner desires that the Servicer service the Mortgage Loans beginning on the applicable Transfer Date pursuant to
this Agreement and the Servicer has agreed to do so; and

 

WHEREAS, the Owner and the
Servicer wish to agree upon the manner of the servicing and administration of the Mortgage Loans on and after the Transfer Date;

 

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 parties hereto agree as follows:

 

ARTICLE
I.

 

DEFINITIONS

 

Accepted Servicing Practices:
  With respect to any Mortgage Loan, procedures and practices (including collection procedures and practices) that (i) comply with
Applicable Law, (ii) the Servicer customarily employs and exercises in servicing and administering mortgage loans for its own account,
and (iii) are in accordance with (a) the terms of the related Mortgage Note and Mortgage, and (b) the accepted mortgage servicing
and administration practices of prudent mortgage lending and servicing institutions that service mortgage loans of the same type
as the Mortgage Loans in the jurisdiction where the related Mortgaged Property is located.

 

Adjustable-Rate Mortgage
Loan:   A Mortgage Loan which provides for the adjustment of the Mortgage Interest Rate payable in respect thereto.

 

Adjustment Date:   As
to each Adjustable-Rate Mortgage Loan, each date set forth in the related Mortgage Note on which an adjustment to the Mortgage
Interest Rate on such Mortgage Loan becomes effective.

 

Advance Facility:
  As defined in Section 3.29(a) hereof.

 

    	 

    	 

    

 

Advance Facility Notice:
  As defined in Section 3.29(a) hereof.

 

Advance Facility Trustee:
  As defined in Section 3.29(a) hereof.

 

Advancing Person:
  As defined in Section 3.29(a) hereof.

 

Agreement:   As defined
in the introductory paragraph.

 

Applicable Law:   All
applicable federal, state or local laws, rules and regulations and any other applicable requirements of any government or agency
or instrumentality thereof, including, but not limited to, the Consumer Financial Protection Bureau, as such may be amended, modified
or supplemented from time to time.

 

Applicable Servicing Period:
  With respect to a Mortgage Loan or an REO Property, the period beginning on the related Transfer Date and ending on the earlier
of (i) the date that servicing of such Mortgage Loan or REO Property terminates hereunder or (ii) the date that this Agreement
is terminated in accordance with its terms.

 

Assignment of Mortgage:
  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 transfer of the Mortgage to the party indicated therein
or if the related Mortgage has been recorded in the name of MERS or its designee, such actions as are necessary to cause the Owner
or its designee to be shown as the owner of the related Mortgage on the records of MERS for purposes of the system of recording
transfers of beneficial ownership of mortgages maintained by MERS.

 

Bailee:   As defined
in Section 3.20 hereof.

 

Bailee Agreement:
  As defined in Section 3.20 hereof.

 

Business Day:   Any
day other than (i) a Saturday or a Sunday, or (ii) a day on which the New York Stock Exchange or Board of Governors of the Federal
Reserve is closed.

 

Closing Date:   With
respect to a particular Mortgage Loan, the closing date under the Purchase Agreement pursuant to which the Owner acquired such
Mortgage Loan.

 

Code:   The Internal
Revenue Code of 1986, as it may be amended from time to time or any successor statute thereto, and applicable Department of Treasury
regulations issued pursuant thereto.

 

Collection Account:
  The separate account, which shall be an Eligible Account, operated and maintained by the Servicer pursuant to Section 3.04 hereof.

 

Collection Period:
  With respect to any Payment Date, the immediately preceding calendar month.

 

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Condemnation Proceeds:
  All awards, compensation and settlements in respect of a taking of all or part of a Mortgaged Property by exercise of the power
of condemnation or the right of eminent domain.

 

Custodial Agreement:
  If the Owner has appointed a custodian for the Mortgage Loans, the custodial agreement between the Owner and the Custodian, and
all amendments thereof and supplements thereto.

 

Custodian:   The Servicer
or, if the Owner has appointed a custodian for the Mortgage Loans, such custodian.

 

Disabling Conduct:
  As defined in Section 5.03 hereof.

 

Due Date:   With respect
to each Mortgage Loan, the day of the calendar month on which each Monthly Payment is due on such Mortgage Loan, exclusive of any
days of grace.

 

Eligible Account:
  Any of:

 

(i)          an
account or accounts maintained with a federal or state chartered depository institution or trust company whose commercial paper,
short-term debt obligations, or other short-term deposits are rated investment grade by at least one NRSRO (the "Qualifying
Rating"); provided, that following a downgrade, withdrawal or suspension of any such institution's rating below
the Qualifying Rating, such account shall promptly (and in any case within not more than 30 calendar days) be moved to another
institution which has a Qualifying Rating, or to one or more segregated trust accounts as provided in clause (ii); or

 

(ii)         a
trust account or accounts maintained with the corporate trust department of a federal depository institution or state-chartered
depository institution subject to the regulations regarding fiduciary funds on deposit similar to Title 12 of the U.S. Code of
Federal Regulations Section 9.10(b) which has corporate trust powers acting in its fiduciary capacity and has a long-term debt
rating of investment grade by at least one NRSRO; provided, that following a downgrade, withdrawal or suspension of any
such institution's long-term debt rating below investment grade, such account shall promptly (and in any case within not more than
30 calendar days) be moved to another institution which has such a long-term debt rating.

 

Eligible Accounts
may bear interest.

 

Escrow Account:   The
separate account, which shall be an Eligible Account, operated and maintained by the Servicer pursuant to Section 3.06 hereof.

 

Escrow Payments:   The
amounts constituting ground rents, taxes, sewer rents, primary mortgage insurance policy premiums, fire and hazard insurance premiums
or other payments required to be escrowed by the Mortgagor with the Mortgagee pursuant to the terms of any Mortgage Note or Mortgage.

 

    	3

    	 

    

 

Fannie Mae:   Fannie
Mae or any successor thereto.

 

Fannie Mae Servicing Guide:
  The Fannie Mae Servicing Guide and all amendments or additions thereto.

 

FIFO:   As defined in
Section 3.29(d) hereof.

 

Final Recovery Determination:
  With respect to any defaulted Mortgage Loan or any REO Property, a determination made by the Servicer that all Liquidation Proceeds
and other payments or recoveries which the Servicer, in its reasonable good faith judgment, expects to be finally recoverable in
respect thereof (exclusive of any deficiencies which might someday be recovered) have been so recovered.

 

Indemnitee:   As defined
in Section 5.01 hereof.

 

Insurance Proceeds:
  Proceeds of any title policy, hazard insurance policy or other insurance policy covering a Mortgage Loan, to the extent such proceeds
are not to be applied to the restoration of the related Mortgaged Property, required to be deposited in an Escrow Account or released
to the Mortgagor in accordance with Accepted Servicing Practices.

 

Interim Servicer:
  With respect to applicable Mortgage Loans, the entity servicing the Mortgage Loans between the Closing Date and the Transfer Date.

 

Joinder Supplement:
  A supplement to this Agrmeement in the form set forth in Exhibit E.

 

Liquidation Proceeds:
  All cash amounts, including Insurance Proceeds, REO Proceeds and Condemnation Proceeds, received in connection with the sale of
a Mortgage Loan or REO Property by the Servicer or the liquidation of a defaulted Mortgage Loan through trustee's sale, foreclosure
sale or otherwise.

 

Losses:   All claims,
losses, damages, penalties, fines, forfeitures, reasonable and necessary legal fees and related costs, judgments, and any other
costs, fees and expenses, but specifically excludes special, indirect, incidental, consequential (including lost profits), punitive
or exemplary damages. The exclusion set forth in the preceding sentence shall not apply to or in any way limit the indemnifying
party's obligations to indemnify the indemnified party for such third party damages actually assessed against the indemnified party.

 

MERS:   Mortgage Electronic
Registration Systems, Inc., a corporation organized and existing under the laws of the State of Delaware, or any successor thereto.

 

MERS System:   The system
of recording transfers of Mortgages electronically maintained by MERS.

 

Modification:   A modification
to the terms of a Mortgage Loan made in accordance with the terms of this Agreement (or as the context requires, made prior to
the time that the servicing of such Mortgage Loan became subject to this Agreement).

 

    	4

    	 

    

 

Monthly Payment:   With
respect to any Mortgage Loan, the scheduled combined payment of principal and interest payable by a Mortgagor under the related
Mortgage Note on each Due Date.

 

Monthly Remittance Report:
  As defined in Section 3.15 hereof.

 

Mortgage:   The mortgage,
deed of trust or other instrument creating a first lien on the Mortgaged Property securing the Mortgaged Loan.

 

Mortgage File:   With
respect to each Mortgage Loan, those mortgage loan documents referenced in the Custodial Agreement that are delivered to the Custodian
or which at any time come into its possession in accordance with the terms of the Custodial Agreement or this Agreement.

 

Mortgage Interest Rate:
  With respect to each fixed-rate Mortgage Loan, the fixed annual rate of interest provided for in the related Mortgage Note and
with respect to each Adjustable-Rate Mortgage Loan, the annual rate at which interest accrues on such Adjustable-Rate Mortgage
Loan from time to time in accordance with the provisions of the related Mortgage Note.

 

Mortgage Loan:   Each
of the mortgage loans listed on the Mortgage Loan Schedule, as revised from time to time. Unless the context otherwise requires,
the term Mortgage Loan shall be deemed to include any resulting REO Property, in which event the foreclosed or terminated Mortgage
Loan shall be deemed to be outstanding as appropriate.

 

Mortgage Loan Schedule:
  The schedule of Mortgage Loans set forth in Exhibit A, which shall be revised by the Owner and the Servicer as set forth
in Article II from time to time to reflect the acquisition of additional Mortgage Loans by the Owner after the date hereof.

 

Mortgage Note:   The
originally executed note or other evidence of the indebtedness of a Mortgagor under the related Mortgage Loan.

 

Mortgaged Property:
  The underlying property securing a Mortgage Loan.

 

Mortgagee:   The mortgagee
or beneficiary named in the Mortgage and the successors and assigns of such mortgagee or beneficiary.

 

Mortgagor:   The obligor
on a Mortgage Note, the fee simple owner of the Mortgaged Property and the grantor or mortgagor named in the related Mortgage and
such grantor's or mortgagor's successor in title to the Mortgaged Property.

 

Non-Performing Loan:
  A Mortgage Loan that was more than ninety (90) days delinquent on a recency of payment basis on the Closing Date or, if the Transfer
Date is more than sixty (60) days after the Closing Date, was more than ninety (90) days delinquent on a recency of payment basis
on the Transfer Date.

 

Nonrecoverable Advance:
  Any Servicing Advance previously made or proposed to be made in respect of a Mortgage Loan or REO Property that, in the good faith
business

 

    	5

    	 

    

 

judgment of the Servicer,
will not, or, in the case of a proposed Servicing Advance, would not, be ultimately recoverable from related late payments or Liquidation
Proceeds on such Mortgage Loan or REO Property.

 

Notice of Facility Termination:
  As defined in Section 3.29(g) hereof.

 

NRSRO:   Any nationally
recognized statistical rating organization, as the term is used in federal securities laws.

 

Owner:   As defined
in the introductory paragraph.

 

Payment Date:   The
25th day of each month, or if such day is not a Business Day, then the next Business Day.

 

Performing Loan:   A
Mortgage Loan that on the Closing Date is not more than ninety (90) days delinquent on a recency of payment basis or, if the Transfer
Date is more than sixty (60) days after the Closing Date, was not more than ninety (90) days delinquent on a recency of payment
basis on the Transfer Date.

 

Permitted Investment:
  Any one or more of the following obligations or investments:

 

(i)            direct
obligations of, and obligations fully guaranteed as to timely payment of principal and interest by, the United States of America
or any agency or instrumentality of the United States of America the obligations of which are backed by the full faith and credit
of the United States of America;

 

(ii)           federal
funds, demand and time deposits in, certificates of deposits of, or bankers' acceptances issued by, any depository institution
or trust company incorporated or organized under the laws of the United States of America or any state thereof and subject to supervision
and examination by federal or state banking authorities, so long as at the time of such investment or the contractual commitment
providing for such investment the commercial paper or other short-term debt obligations of such depository institution or trust
company (or, in the case of a depository institution or trust company which is the principal subsidiary of a holding company, the
commercial paper or other short-term debt or deposit obligations of such holding company or deposit institution, as the case may
be) have been rated by at least one NRSRO in its highest short-term rating category or one of its two highest long-term rating
categories;

 

(iii)          any
other demand, money market, or time deposit or obligation rated in the highest rating category by at least one NRSRO, as applicable;

 

provided, however,
that no such instrument shall be an Permitted Investment if such instrument evidences either (i) a right to receive only interest
payments with respect to the obligations underlying such instrument, or (ii) both principal and interest payments derived from
obligations underlying such instrument and the principal and interest payments with respect to such instrument provide a yield
to maturity of greater than 120% of the yield to maturity at par of such underlying obligations; and, provided, further, that such
investment shall not be subject to

 

    	6

    	 

    

 

withholding or deduction
unless the issuer of such investment is required to gross-up such amounts.

 

Person:   Any individual,
corporation, partnership, limited liability company, joint venture, association, joint stock company, trust, unincorporated organization
or government or any agency or political subdivision thereof.

 

Purchase Agreement:
  An agreement for the purchase of one or more mortgage loans acquired by the Owner during the term of this Agreement.

 

Qualified Insurer:
  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.

 

Recovery Proceeds:
  As defined in Section 3.03(e) hereof.

 

Remittance Date:   The
Business Day preceding each Payment Date.

 

REO Disposition: 
  The final sale of any REO Property.

 

REO Proceeds:   All
revenues, receipts and/or proceeds received with respect to an REO Property, including any proceeds from an REO Disposition.

 

REO Property:   Any
real property owned by the Owner including any Mortgaged Property acquired through foreclosure or grant of a deed in lieu of foreclosure
or other comparable conversion of the ownership of a Mortgage Loan or otherwise acquired by Owner.

 

Re-Performing Loan:
  A Mortgage Loan that has been in contractual default but on the Closing Date is not more than ninety (90) days delinquent on a
recency of payment basis or, if the Transfer Date is more than sixty (60) days after the Closing Date, is not more than ninety
(90) days delinquent on a recency of payment basis on the Transfer Date.

 

Request for Release:
  As defined in Section 3.20 hereof.

 

Section 404 Notice:
  The notice required under Section 404 of the Helping Families Save Their Homes Act of 2009, as it may be amended from time to time.

 

Seller:   The seller
of the Mortgage Loans under the Purchase Agreement.

 

Servicer:   As defined
in the introductory paragraph.

 

Servicer Claim:   As
defined in Section 5.01 hereof.

 

Servicing Advance:
  All customary, reasonable and necessary "out-of-pocket" costs and expenses incurred by or on behalf of the Servicer in
the performance of its respective servicing obligations, including, but not limited to, the cost of (a) preservation, inspection,
restoration, improvement, protection and repair of a Mortgaged Property or REO Property, including, without limitation, advances
in respect of prior liens, insurance, real estate taxes and

 

    	7

    	 

    

 

assessments, (b) any collection,
enforcement or judicial proceedings, including without limitation foreclosures, collections and liquidations, (c) the conservation,
management, valuation, repair, marketing, sale and liquidation of any REO Property, (d) obtaining any legal documentation required
to be included in the Servicing File and/or correcting any outstanding title issues (i.e., any lien or encumbrance on the
Mortgaged Property that prevents the effective enforcement of the intended lien position or any lien on an REO Property that prevents
the timely liquidation thereof) reasonably necessary for the Servicer to perform its respective obligations under this Agreement,
(e) executing and recording instruments of satisfaction, deeds of reconveyance or Assignments of Mortgage to the extent not recovered
from the related Mortgagor, (f) third party borrower counseling fees in connection with a Modification or potential Modification,
(g) expenses of sales of Mortgage Loans and (h) any costs incurred pursuant to Section 3.03(c) hereof.

 

Servicing Advance Reimbursement
Amounts:   As defined in Section 3.29(a) hereof.

 

Servicing Fee:   With
respect to each calendar month during the term of this Agreement an amount equal to one-twelfth of (a) 0.65% per annum of the unpaid
principal balance of each Performing or Re-Performing Mortgage Loan, plus (b) 1.25% per annum of the unpaid principal balance of
each Non-Performing Mortgage Loan, plus (c) for REO Property acquired through foreclosure or grant of a deed in lieu of foreclosure
or other comparable conversion of the ownership of a Mortgage Loan, the greater of (i) the Servicing Fee applicable to the underlying
Mortgage Loan as of the preceding January 1 or (ii) 1.00% of the fair market value of the REO Property as reasonably determined
by the Manager, plus (d) 1.00% of the purchase price of any REO Property otherwise purchased by the Owner, each determined as of
the last day of the month or, if applicable, the last day of the term of this Agreement, pro-rated for partial months.

 

Servicing File:   The
items pertaining to a particular Mortgage Loan including, but not limited to, the computer files, data disks, books, records, data
tapes, notes, and all additional documents included within the servicing file delivered to Servicer by the Owner or prior servicer
or generated by the Servicer as a result of or utilized in originating and/or servicing each Mortgage Loan, which are held in trust
for the Owner.

 

Servicing Officer:
  Any officer of the Servicer involved in, or responsible for, the administration and servicing of the Mortgage Loans whose name
and specimen signature appear on a list of servicing officers furnished to the Owner by the Servicer, as such list may from time
to time be amended.

 

Servicing Transfer Costs:
  Any reasonable and customary costs of the Owner or successor servicer and the Custodian incurred in connection with the transfer
of servicing from the Servicer, including, without limitation, any reasonable costs or expenses associated with the documentation
of the assumption of servicing by a successor servicer, the complete transfer of all servicing data and the completion, correction
and manipulation of such servicing data as may be reasonably required by the successor servicer to correct any errors or insufficiencies
in the servicing data or otherwise to enable the successor servicer to service the Mortgage Loans properly and effectively.

 

    	8

    	 

    

 

Sub-Servicer:   Any
Person that services Mortgage Loans on behalf of the Servicer or is responsible for the performance (whether directly or through
subservicers) of all or substantially all of the material servicing functions required to be performed by the Servicer under this
Agreement.

 

Sub-Servicing Agreement:
  A written contract between the Servicer and a Sub-Servicer relating to servicing and administration of certain Mortgage Loans,
as amended or supplemented from time to time.

 

Total Servicing Period:  
The period beginning on the initial Transfer Date and ending on the date that this Agreement is terminated in accordance with its
terms.

 

Transfer Date:   With
respect to applicable Mortgage Loans, the date that the servicing of the Mortgage Loans transfers to the Servicer pursuant to the
applicable Purchase Agreement.

 

Unpaid Principal Balance:
  With respect to each Mortgage Loan and any date of determination, the principal balance of such Mortgage Loan at its origination
less the sum of (i) all collections and other amounts credited against the principal balance of such Mortgage Loan prior to such
date of determination, (ii) any principal reduction resulting from a bankruptcy court ruling prior to such date of determination
and (iii) any principal forgiveness resulting from a modification prior to such date of determination plus the sum of (x) any deferred
principal balance created in connection with a principal forbearance modification and (y) any outstanding amounts, such as accrued
and unpaid interest, unpaid insurance premiums or delinquent taxes and certain Servicing Advances, added to the Unpaid Principal
Balance as part of a modification.

 

ARTICLE
II.

 

ENGAGEMENT
OF the SERVICER TO PERFORM SERVICING RESPONSIBILITIES

 

The Owner, by execution and delivery of this
Agreement, does hereby contract with the Servicer, subject to the terms of this Agreement, for the servicing and administration
of Mortgage Loans and REO Properties. Not less than fifteen days prior to any Transfer Date, the Owner shall (i) notify the Servicer
that the Owner desires to have the Servicer service the related Mortgage Loans and REO Properties and (ii) provide the Servicer
an updated Mortgage Loan Schedule that includes such Mortgage Loans and REO Properties and such additional information as the Servicer
shall reasonably request. The provisions of this Agreement with respect to any Mortgage Loan or REO Property shall apply to the
Servicer only during the Applicable Servicing Period. The Servicer shall maintain a Servicing File with respect to each Mortgage
Loan in order to service such Mortgage Loans pursuant to this Agreement and each Servicing File delivered to the Servicer shall
be held in trust by the Servicer for the benefit of the Owner. The Servicing Files retained by the Servicer shall be identified
in accordance with a file tracking system to reflect the ownership of the related Mortgage Loan by the Owner. The Servicer shall
cause the release from custody of the contents of any Servicing File retained by the Servicer only in accordance with the instructions
of the Owner, or when such release is required

 

    	9

    	 

    

 

as incidental to the Servicer’s servicing of the related Mortgage
Loan or a sale of such Mortgage Loan, or upon the transfer of servicing pursuant to Section 7.01 of this Agreement.

 

ARTICLE
III.

 

SERVICING
OF THE mortgage loans

 

Section
3.01.     Servicing of the Mortgage Loans.

 

(a)          The
Servicer, as an independent contractor, shall service and administer the Mortgage Loans during the Applicable Servicing Period
in accordance with Accepted Servicing Practices and this Agreement and, consistent with the foregoing, shall have full power and
authority to do any and all things in connection with such servicing and administration which the Servicer may deem necessary or
desirable. In servicing and administering the Mortgage Loans, the Servicer shall employ procedures and practices (including collection
procedures and practices) intended to best meet the Owner’s goals, as reported to the Servicer from time to time, all in
accordance with applicable law.

 

The Servicer shall diligently
collect all payments called for under the terms and provisions of the Mortgage Loans and any applicable insurance policies in accordance
with Accepted Servicing Practices. Consistent with the foregoing, the Servicer may in its discretion (i) waive any late payment
charge or, if applicable, any penalty interest or any provisions of any Mortgage Loan requiring the related Mortgagor to submit
to mandatory arbitration with respect to disputes arising thereunder or (ii) extend the due dates for the Monthly Payments due
on a Mortgage Note for a period of not greater than 180 days; provided, however, that any extension pursuant to clause
(ii) above shall not affect the amortization schedule of any Mortgage Loan for purposes of any computation hereunder, except as
provided below. Notwithstanding the foregoing, in the event that any Mortgage Loan is in default or, in the judgment of the Servicer,
such default is reasonably foreseeable, the Servicer, consistent with the standard set forth in this Section 3.01, may also waive,
modify or vary any term of such Mortgage Loan (including, without limitation, modifications that would change the Mortgage Interest
Rate, forgive or forbear the payment of principal or interest, capitalize past due Monthly Payments and/or outstanding Servicing
Advances or extend the final maturity date of such Mortgage Loan), accept payment from the related Mortgagor of an amount less
than the Unpaid Principal Balance in final satisfaction of such Mortgage Loan, or consent to the postponement of strict compliance
with any such term or otherwise grant indulgence to any Mortgagor. The Servicer's analysis supporting any forbearance and the conclusion
that any forbearance meets the standards of this Section 3.01 shall be reflected in writing in the Servicing File. The Servicer
shall update the Mortgage Loan Schedule in connection with the Modification of any Mortgage Loan to reflect the modified terms
of such Mortgage Loan. The Servicer is hereby authorized and empowered to refinance Mortgagors or assist third parties in refinancing
Mortgagors into new mortgage loans so long as the Mortgagors are not selected for solicitation based solely on the inclusion of
the related Mortgage Loans on the Mortgage Loan Schedule. Such refinancing will be in an amount sufficient to pay off the Unpaid
Principal Balance of the Mortgage Loan in full and any accrued and unpaid interest thereon except that, with respect to any Mortgage
Loan in default or for which default is reasonably foreseeable at the time of a refinance, such refinancing may be for an

 

    	10

    	 

    

 

amount less than the related
Unpaid Principal Balance if such refinancing is in the best interests of the Owner.

 

The Servicer, as an agent
of the Owner and with the Owner’s prior written consent, may sell Mortgage Loans in default or for which default is reasonably
foreseeable to unaffiliated third-party investors in the secondary whole loan market on arms-length terms and at fair market value
as a loss mitigation alternative if the Servicer determines in its reasonable commercial judgment that such sale would be in the
best interests of the Owner. In connection with any such written consent, the Owner agrees to execute and deliver such reasonable
and additional documents, instruments or agreements as may be necessary to effectuate the sale of such Mortgage Loans in accordance
with this paragraph.

 

Without limiting the generality
of the foregoing, the Servicer shall continue, and is hereby authorized and empowered, to execute and deliver on behalf of itself
and the Owner, all instruments of satisfaction or cancellation, or of partial or full release, discharge or note endorsement and
all other comparable instruments, with respect to the Mortgage Loans and the Mortgaged Properties. Upon reasonable written request
of the Servicer, the Owner shall promptly furnish the Servicer with any limited powers of attorney and other documents necessary
or appropriate to enable the Servicer to carry out its servicing and administrative duties under this Agreement; provided,
however, that the Owner shall not be held liable for any misuse of any such power of attorney or other documents by the
Servicer.

 

The Servicer is authorized
and empowered by the Owner, in its own name when the Servicer believes it is appropriate in its best judgment, to cause the removal
of any Mortgage Loan from registration on the MERS System, to execute and deliver, on behalf of the Owner, any and all instruments
of assignment and other comparable instruments with respect to such assignment.

 

The Servicer shall not, without
the written consent of the Owner: (i) initiate any action, suit or proceeding under the name of the Owner without indicating the
Servicer’s representative capacity or (ii) take any action which causes the Owner to be required to be registered to do business
in any state. Notwithstanding the preceding sentence, the Servicer is authorized to initiate foreclosure or similar proceedings
on behalf of and in the name of the Owner without the Owner’s consent.

 

The Servicer shall promptly
forward or cause to be forwarded to the Custodian original documents evidencing an assumption, modification, consolidation or extension
of any Mortgage Loan entered into in accordance with this Agreement and the Servicer shall promptly provide to the Custodian a
certified true copy of any such document submitted for recordation, and shall provide the original of any document submitted for
recordation or a copy of such document certified by the appropriate public recording office to be a true and complete copy of the
original in accordance with Accepted Servicing Practices. No Modification shall be recorded unless required by Applicable Law.

 

The Servicer shall make Servicing
Advances with respect to each Mortgage Loan in accordance with Accepted Servicing Practices and this Agreement, provided
that notwithstanding any provision herein to the contrary, the Servicer shall not be required to make

 

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any Servicing Advance for
which a determination is made by the Servicer that such Servicing Advance would constitute a Nonrecoverable Advance. In addition,
to the extent permitted or required by the Mortgage and the Mortgage Note, the Servicer will advance, to the extent unpaid by the
related Mortgagor, any insurance premiums and delinquent property taxes, and such advances shall be treated as Servicing Advances.

 

The Servicer may use subcontractors
and vendors in connection with the servicing of the Mortgage Loans; provided, however, that any such arrangements
shall be consistent with the servicing arrangements contemplated hereunder and the Servicer shall remain obligated and liable to
the Owner for the management, servicing and administration of the Mortgage Loans in accordance with the provisions of this Agreement
without diminution of such obligation or liability by virtue of such arrangements or by virtue of indemnification from any such
subcontractor or vendor and to the same extent and under the same terms and conditions as if the Servicer alone were servicing
and administering those Mortgage Loans. All actions of each subcontractor or vendor shall be performed as agent of the Servicer
with the same force and effect as if performed directly by the Servicer.

 

(b)          With
respect to the management of any REO Property, the Servicer shall be entitled to enter into agreements with independent third parties
(which may include an REO asset manager) as set forth in Section 3.13 but shall remain obligated with respect to such REO Property
as if it alone were operating and managing such REO Property.

 

(c)          With
respect to the applicable Mortgage Loans, for the period from the Closing Date through the Transfer Date, the Servicer will use
commercially reasonable efforts to cause the Interim Servicer to service the Mortgage Loans in a manner that is consistent with
the terms of this Article III and to forbear from taking any actions that are inconsistent with the terms of this Article III.
On the Transfer Date, the Servicer shall reimburse the Interim Servicer from its own funds for all outstanding Servicing Advances
incurred by the Interim Servicer on the Mortgage Loans that remain unreimbursed as of the Transfer Date and the Servicer shall
be entitled to reimburse itself for such Servicing Advances as if it had been the party to make such Servicing Advances.

 

Section
3.02.      Collection of Mortgage Loan Payments and Rents.

 

During the Applicable Servicing
Period until the principal and interest on all Mortgage Loans are paid in full, the Servicer shall proceed diligently to collect
all payments due under each Mortgage Loan when the same shall become due and payable and shall follow collection procedures and
practices consistent with this Agreement and Accepted Servicing Practices. The Servicer shall also proceed diligently to collect
all rent and other revenue due on any REO Property. Further, in connection with any Mortgage Loan providing for Escrow Payments
by the related Mortgagor and subject to Section 3.07, the Servicer shall take special care in ascertaining and estimating annual
ground rents, taxes, fire and hazard insurance premiums, mortgage insurance premiums, and comparable items that, as provided in
the Mortgage or the Mortgage Note, will become due and payable to ensure that the installments payable by the Mortgagors as Escrow
Payments will be sufficient to pay such charges as and when they become due and payable. The Servicer shall pay all taxes and assessments
and maintain insurance on the Mortgage Loans and any REO Property as set forth herein.

 

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The Servicer may waive any
prepayment charge with respect to any Mortgage.

 

Section
3.03.      Realization Upon Defaulted Mortgage Loans.

 

(a)          In
the event that any payment due under any Mortgage Loan is not paid when the same becomes due and payable, or in the event the Mortgagor
fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace
period, the Servicer shall take such action as it shall deem to be in the best interest of the Owner including, but not limited
to, a Modification, assumption, short sale, third party sale, deed-in-lieu transaction and acquiring title to the Mortgaged Property
through foreclosure as set forth in Section 3.13. The Servicer shall use commercially reasonable efforts, consistent with Accepted
Servicing Practices, to foreclose upon or otherwise comparably convert the ownership of each Mortgaged Property for which the Mortgage
Loan is and continues to be in default and as to which no satisfactory arrangements can be made for collection of delinquent payments
pursuant to Section 3.01 and the first sentence of this Section 3.03. Prior to initiating foreclosure with respect to any Mortgage
Loan, the Servicer shall, if applicable (i) cause the removal of any Mortgage Loan from registration on the MERS System and/or
(ii) correctly record the Assignment of Mortgage for such Mortgage Loan. The Servicer shall take appropriate measures to ensure
the accuracy of all documents filed or otherwise utilized by the Servicer or its vendors or subcontractors (including, without
limitation, foreclosure attorneys) following the Closing Date in any judicial or non-judicial foreclosure proceeding, related bankruptcy
proceeding or in other foreclosure-related litigation. The Servicer covenants that all aspects of any foreclosure-related proceeding
relating to any Mortgage Loan shall comply in all material respects with Applicable Law.

 

(b)          The
Servicer shall use commercially reasonable efforts to realize upon defaulted Mortgage Loans in such a manner as will maximize the
receipt of principal and interest by the Owner, taking into account, among other things, the timing of foreclosure proceedings.
The foregoing is subject to the provisions that, in any case in which a Mortgaged Property shall have suffered damage, unless otherwise
required by any federal, state or local law or regulation, the Servicer shall not be required to expend its own funds toward the
restoration of such property unless it shall determine in its discretion (i) that such restoration will increase the proceeds of
liquidation of the related Mortgage Loan after reimbursement to itself for such expenses and (ii) that such expenses will be recoverable
by the Servicer through Liquidation Proceeds from the related Mortgaged Property. In connection therewith, the Servicer shall be
responsible for all costs and expenses incurred by it in any such foreclosure or collection proceedings; provided, however,
that it shall be entitled to reimbursement of such costs and expenses as Servicing Advances as contemplated in Section 3.05.

 

(c)          Notwithstanding
the foregoing provisions of this Section 3.03, with respect to any Mortgage Loan as to which the Servicer has received actual notice
of, or has actual knowledge of, the presence of any toxic or hazardous substance on the related Mortgaged Property the Servicer
shall not (i) cause the Owner to obtain title to such Mortgaged Property as a result of or in lieu of foreclosure or otherwise
or (ii) otherwise cause the Owner to acquire possession of, or take any other action with respect to, such Mortgaged Property if,
as a result of any such action, the Owner would be considered to hold title to, to be a mortgagee-in-possession of, or to be an
owner or operator of such Mortgaged Property within the meaning of the

 

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Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended from time to time, or any comparable law, unless the Servicer has
also previously determined, based on its reasonable judgment and an environmental report prepared by a Person who regularly conducts
environmental audits using customary industry standards, that:

 

(1)         such
Mortgaged Property is in compliance with applicable environmental laws or, if not, that it would be in the best economic interest
of the Owner to take such actions as are necessary to bring the Mortgaged Property into compliance therewith; and

 

(2)         there
are no circumstances present at such Mortgaged Property relating to the use, management or disposal of any hazardous substances,
hazardous materials, hazardous wastes, or petroleum-based materials for which investigation, testing, monitoring, containment,
clean-up or remediation could be required under any federal, state or local law or regulation, or that if any such materials are
present for which such action could be required, that it would be in the best economic interest of the Owner to take such actions
with respect to the affected Mortgaged Property.

 

The cost of the environmental
audit report contemplated by this Section 3.03 shall be advanced by the Servicer and shall be deemed a Servicing Advance subject
to reimbursement as provided in Section 3.05.

 

If the Servicer determines,
as described above, that it is in the best economic interest of the Owner to take such actions as are necessary to bring any such
Mortgaged Property into compliance with applicable environmental laws, or to take such action with respect to the containment,
clean-up or remediation of hazardous substances, hazardous materials, hazardous wastes, or petroleum-based materials affecting
any such Mortgaged Property, then the Servicer shall take such action, consistent with Accepted Servicing Practices, as it deems
to be in the best economic interest of the Owner. The cost of any such compliance, containment, cleanup or remediation shall be
advanced by the Servicer and shall be deemed a Servicing Advance, subject to reimbursement as provided in Section 3.05.

 

(d)          Proceeds
received in connection with any Final Recovery Determination, as well as any recovery resulting from a partial collection of Liquidation
Proceeds in respect of any Mortgage Loan, will be applied in the following order of priority (to the extent permitted by Applicable
Law): first, to reimburse the Servicer for any unreimbursed Servicing Advances pursuant to Section 3.05(a)(ii) and second,
with respect to any Mortgage Loan, as a recovery of principal of such Mortgage Loan. In connection with each Final Recovery Determination
made by the Servicer, the Servicer shall (i) maintain records prepared by an employee or an agent of the Servicer of each Final
Recovery Determination and (ii) prepare an instrument of satisfaction and submit such instrument for recording in the appropriate
public recording office.

 

(e)       After
the Servicer has made a Final Recovery Determination with respect to a Mortgage Loan, and, if applicable, to the extent permitted
by applicable state law relating to the collection of a deficiency balance from the related Mortgagor, the Servicer is authorized,
on behalf of the Owner, to collect from the related Mortgagor any deficiency balance remaining

 

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unpaid on the applicable
Mortgage Loan, or, if the related Mortgaged Property has not been foreclosed upon and sold (and therefore there is no deficiency),
any outstanding balance. The Servicer may, in its sole discretion, choose to collect the deficiency balance or remaining balance
either directly, or indirectly by engaging an unaffiliated or affiliated third party to collect (or by conveying to an unaffiliated
or affiliated third party the right to collect) such balance from the applicable Mortgagor. Any proceeds received from such direct
or indirect collection efforts, net of any expenses incurred in such collection efforts and net of a fee equal to 35% of the proceeds
of such direct or indirect collection efforts, shall constitute property of the Owner and shall be deposited into the Collection
Account (such net proceeds, the "Recovery Proceeds"). The Servicer shall separately note in the Monthly Remittance
Report any deficiency proceeds received by it and added to the amount to be remitted to the Owner in respect of the next Remittance
Date. In connection with any such liquidation of a Mortgaged Property or collection efforts, the Servicer shall follow Accepted
Servicing Practices.

 

Section
3.04.         Establishment of Collection Account; Deposits in Collection
Account.

 

(a)          The
Servicer shall segregate and hold all funds collected and received pursuant to each Mortgage Loan by the Servicer separate and
apart from any of its own funds and general assets and shall establish and maintain on behalf of, and as an agent of, the Owner,
a segregated Collection Account in the name of the Owner as account holder and owner, with the Servicer as an authorized signatory.

 

(b)       Within
two Business Days of receipt of any payments and collections on the Mortgage Loans or any REO Property, the Servicer shall remit
such amounts to the Collection Account. The Servicer shall retain in the Collection Account the following payments and collections
(net of any funds refundable to any Mortgagor determined to be in excess of the amounts required under the related Mortgage Loan
documents) received by it subsequent to the Transfer Date (net of Servicing Fees (payable solely from payments on account of interest
on the Mortgage Loans) and reimbursement of Servicing Advances or other amounts which the Servicer is permitted to withdraw from
the Collection Account to pay or reimburse itself pursuant to Section 3.05):

 

(i)      all
payments on account of principal of the Mortgage Loans, including any deferred principal balances;

 

(ii)     all
payments on account of interest on the Mortgage Loans, including any deferred interest;

 

(iii)    all net Liquidation Proceeds;

 

(iv)    any
Servicing Advance previously reimbursed to the Servicer which is later recovered from the Mortgagor or Liquidation Proceeds;

 

(v)     any
amounts required to be deposited by the Servicer pursuant to Section 3.12 in connection with the deductible clause in any blanket
hazard insurance policy;

 

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(vi)    any repurchase price or related amount received from the Seller pursuant to the Purchase Agreement;

 

(vii)   any
other amounts received by the Servicer that are payable to the Owner or the Mortgagor, or any other amounts related to any Mortgage
Loan;

 

(viii)  any
Recovery Proceeds;

 

(ix)    any
REO Property revenues (net of costs and expenses) pursuant to Section 3.13(c) hereof; and

 

(x)     any
amounts collected by the Servicer and to be deposited in the Collection Account as provided in Section 3.09.

 

Any of the deposits pursuant
to (ii) or (iii) (to the extent allocated to interest) above may, at the Servicer's option, be net of the Servicing Fee.

 

If the Servicer has remitted
to the Collection Account any amount not required to be remitted, the Servicer may at any time withdraw, or cause to be withdrawn,
such amount from the Collection Account, any provision herein to the contrary notwithstanding. The Collection Account shall be
an Eligible Account. Any interest or earnings on funds deposited in the Collection Account by the depository institution shall
accrue to the benefit of the Owner. The Servicer shall give written notice to the Owner of the location of the Collection Account
when established and prior to any change thereof in accordance with Section 3.09 hereof.

 

Funds on deposit in the Collection
Account shall either (i) remain uninvested or (ii) be invested in Permitted Investments, which Permitted Investments shall mature
or be subject to redemption or withdrawal prior to the next occurring Remittance Date. If such funds are deposited in Permitted
Investments, any and all investment earnings from any such Permitted Investments shall be for the benefit of the Owner and the
risk of loss resulting from such investments shall be borne by and be the risk of the Owner.

 

Section
3.05.      Permitted Withdrawals From the Collection Account.

 

(a)   
The Servicer may, from time to time, withdraw (or cause to be withdrawn) from amounts on deposit in the Collection Account
for the following purposes:

 

(i) 
   to make distributions to the Owner in the amounts and in the manner provided for in Section 3.14;

 

(ii) 
  to the extent not previously reimbursed, to reimburse itself on its behalf or on behalf of an Advancing Person
for unreimbursed Servicing Advances incurred by the Servicer or an Advancing Person, the Servicer's right to reimburse itself
on its behalf or on behalf of an Advancing Person pursuant to this subclause (ii) with respect to any Mortgage Loan
being limited to related Liquidation Proceeds and such other amounts as may be collected by the Servicer from the Mortgagor
or otherwise relating to the Mortgage Loan;

 

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(iii)   to pay
itself any accrued and unpaid Servicing Fees solely from payments on account of interest on the Mortgage Loans;

 

(iv)   to withdraw
any amount deposited therein in error;

 

(v)    to reimburse
itself for any capitalized Servicing Advances from general principal collections received in respect of the Mortgage Loans;

 

(vi)   to the extent
not previously reimbursed, to reimburse itself on its behalf or on behalf of an Advancing Person for any unreimbursed Servicing
Advances incurred by the Servicer or an Advancing Person which the Servicer has determined to be a Nonrecoverable Advance;

 

(vii)  to reimburse
itself for costs and expenses incurred by or reimbursable to it pursuant to Section 5.03; and

 

(viii) to clear
and terminate the Collection Account upon termination of the Total Servicing Period.

 

In the case of each such
payment or reimbursement to the Servicer set forth above, the Servicer's right thereto shall be prior to the rights of the Owner.

 

The Servicer shall keep and
maintain separate accounting, on a Mortgage Loan by Mortgage Loan basis and REO Property by REO Property basis, for the purpose
of justifying any withdrawal from the Collection Account pursuant to such subclauses (ii), (iii), (v) and (vi) above.

 

On the Transfer Date, the
Servicer shall reimburse the Interim Servicer from its own funds for all outstanding Servicing Advances incurred by the Interim
Servicer on the Mortgage Loans that remain unreimbursed as of the Transfer Date and the Servicer shall be entitled to reimburse
itself for such Servicing Advances in accordance with Section 3.05(a)(ii), (vi) and (viii) of this Agreement as if it had been
the party to make such Servicing Advances.

 

Section
3.06.      Permitted Withdrawals From Escrow Account.

 

Withdrawals from the Escrow
Account may be made (i) to effect timely payments of ground rents, taxes, fire and hazard insurance premiums, primary mortgage
insurance policy premiums, if applicable, and comparable items, (ii) to reimburse the Servicer for any Servicing Advance made by
that Servicer pursuant to Section 3.08 with respect to a related Mortgage Loan but only from amounts received on the related Mortgage
Loan which represent collections of Escrow Payments thereunder, (iii) to refund to the Mortgagor any funds as may be determined
to be overages, (iv) for transfer to the Collection Account in accordance with the terms of this Agreement, (v) for application
to restoration or repair of the Mortgaged Property, (vi) to pay to the Owner, or to the Mortgagor to the extent required by Applicable
Law, any interest paid on the funds deposited in the Escrow Account or (vii) to withdraw any amount deposited therein in error.

 

Section
3.07.      Deposits in Escrow Account.

 

The Servicer shall segregate
and hold all funds collected and received pursuant to each Mortgage Loan by the Servicer which constitute Escrow Payments separate
and apart from any of its own funds and general assets and shall establish and maintain on behalf of, and as an agent of, the Owner,
a segregated Escrow Account in the name of the Owner and the Mortgagors, with the Servicer as an authorized signatory.

 

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The
Servicer shall segregate and hold all funds collected and received pursuant to each Mortgage Loan by the Servicer which constitute
Escrow Payments separate and apart from any of its own funds and general assets and shall establish and maintain one or more Escrow
Accounts in connection therewith.

 

Within two Business
Days of receipt of any Escrow Payments on the Mortgage Loans, the Servicer shall remit such amounts to the Escrow Account,
for the purpose of effecting timely payment of any such items as required under the terms of this Agreement. The Servicer
shall make (or cause to be made) withdrawals therefrom only to effect such payments as are required under this Agreement, and
for such other purposes as shall be as set forth in, or in accordance with, Section 3.07. The Owner shall be entitled to
retain any interest paid on funds deposited in the Escrow Account by the depository institution other than interest on
escrowed funds required by Applicable Law to be paid to the Mortgagor and, to the extent required by Applicable Law, the
Servicer shall pay interest on escrowed funds to the Mortgagor notwithstanding that the Escrow Account is non-interest
bearing or that interest paid thereon is insufficient for such purposes.

 

Funds on deposit in the Escrow
Account maintained by the Servicer shall either (i) remain uninvested or (ii) be invested in Permitted Investments, which Permitted
Investments shall mature or be subject to redemption or withdrawal prior to the date on which such funds are required to be withdrawn
as set forth in Section 3.07. If such funds are deposited in Permitted Investments, any and all investment earnings from any such
Permitted Investments shall be for the benefit of the Owner and the risk of loss resulting from such investments shall be borne
by and be the risk of the Owner.

 

SECTION
3.08.      Payment of Taxes, Insurance and Other Charges; Collections
Thereunder.

 

With respect to each Mortgage
Loan, the Servicer shall maintain (or cause to be maintained) accurate records reflecting the status of ground rents, taxes, fire
and hazard insurance premiums, mortgage insurance premiums, and comparable items and, to the extent the Mortgage provides for Escrow
Payments, shall obtain (or cause to be obtained), from time to time, all bills for the payment of such charges, including insurance
renewal premiums and shall effect payment thereof prior to the applicable penalty or termination date, employing for such purpose
deposits of the Mortgagor in the Escrow Account which shall have been estimated and accumulated by the Servicer in amounts sufficient
for such purposes, as allowed under the terms of the Mortgage and Applicable Law. To the extent that the Mortgage does not provide
for Escrow Payments, the Servicer shall either cause the Mortgagor to make any such payments or make Servicing Advances to effect
such payments in accordance with the Accepted Servicing Practices. Any such payments made by the Servicer shall be deemed a Servicing
Advance, reimbursable in accordance with Section 3.05 hereof.

 

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SECTION
3.09.      Transfer of Accounts.

 

The Servicer may transfer
the Collection Account or the Escrow Account to a different depository institution from time to time. In any case, each of the
Collection Account and the Escrow Account shall at all times be maintained as an Eligible Account. The Servicer shall give written
notice to the Owner of any proposed change of location of the Collection Account and the Escrow Account 30 days prior to any
change thereof.

 

SECTION
3.10.      Maintenance of Hazard Insurance.

 

The Servicer shall cause
to be maintained for each Mortgage Loan fire and hazard insurance with extended coverage as is customary in the area where the
Mortgaged Property is located in an amount which is at least equal to the lesser of (i) the amount necessary to fully compensate
for any damage or loss to the improvements which are a part of such property on a replacement cost basis or (ii) the Unpaid Principal
Balance of the Mortgage Loan, in each case in an amount not less than such amount as is necessary to prevent the Mortgagor and/or
the Mortgagee from becoming a co-insurer.

 

If a Mortgaged Property relating
to a Mortgage Loan is in an area identified in the Federal Register by the Federal Emergency Management Agency as having special
flood hazards and such flood insurance has been made available, the Servicer will cause to be maintained a flood insurance policy
meeting the requirements of the current guidelines of the Federal Insurance Administration with a generally acceptable insurance
carrier, in an amount representing coverage not less than the least of (i) the replacement value of the improvements that are part
of the Mortgaged Property, (ii) the Unpaid Principal Balance of the Mortgage Loan or (iii) the maximum amount of insurance available
under the National Flood Insurance Act of 1968, as amended.

 

With respect to any REO Property,
the Servicer shall cause to be maintained fire and hazard insurance with extended coverage as is customary in the area where the
REO Property is located in an amount which is at least equal to the maximum insurable value of the Mortgaged Property.

 

Pursuant to Section 3.04,
any amounts collected by the Servicer under any such policies other than amounts to be deposited by that Servicer in the Escrow
Account and applied to the restoration or repair of the Mortgaged Property, or released to the Mortgagor in accordance with the
Servicer's normal servicing procedures, shall be deposited in the Collection Account, subject to withdrawal pursuant to Section
3.05. Any costs incurred by the Servicer in maintaining any such insurance shall be treated as Servicing Advances. The Servicer
shall not be required to maintain any such insurance if the related Servicing Advance therefor would be a Nonrecoverable Advance
unless required by Applicable Law. It is understood and agreed that no earthquake or other additional insurance need be required
by the Servicer of the Mortgagor, other than pursuant to Applicable Law that requires such additional insurance. All such policies
shall be endorsed with standard mortgagee clauses with loss payable to the Servicer and shall provide for at least ten (10) days
prior written notice of any cancellation, reduction in the amount of, or material change in, coverage to the Servicer. The Servicer
shall not interfere with the Mortgagor's freedom of choice in selecting either his insurance carrier or agent; provided,

 

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however, that the
Servicer shall not accept any such insurance policies from insurance companies unless such companies are Qualified Insurers.

 

SECTION
3.11.      Maintenance of Mortgage Impairment Insurance Policy.

 

In the event that the Servicer
shall obtain and maintain a mortgage impairment or blanket policy, such policy shall be issued by a Qualified Insurer that has
a rating in Best's Key Rating Guide of A:VI or is acceptable to prudent mortgage servicers insuring against hazard losses on all
of the Mortgaged Properties. To the extent such policy provides coverage in an amount equal to the amount required pursuant to
Section 3.10 and otherwise complies with all other requirements of Section 3.10, the Servicer shall conclusively be deemed to have
satisfied its obligations as set forth in Section 3.10, it being understood and agreed that such policy may contain a deductible
clause, in which case the Servicer shall, in the event that there shall not have been maintained on the related Mortgaged Property
a policy complying with Section 3.10, and there shall have been one or more losses which would have been covered by such policy,
deposit in the Collection Account the amount not otherwise payable under the blanket policy because of such deductible clause.
In connection with its activities as servicer of the Mortgage Loans, the Servicer agrees to prepare and present (or cause to be
prepared and presented), on behalf of the Owner, claims under any such blanket policy in a timely fashion in accordance with the
terms of such policy. At issuance and otherwise, upon request of the Owner, the Servicer shall cause to be delivered to the Owner
a certified true copy of such policy or a certificate evidencing such policy and a statement from the insurer thereunder that such
policy shall in no event be terminated or materially modified without thirty (30) days prior written notice to the Owner.

 

SECTION
3.12.      Fidelity Bond, Errors and Omissions Insurance.

 

The Servicer shall maintain,
at its own expense, a blanket fidelity bond and an errors and omissions insurance policy, with broad coverage with responsible
companies on all officers, employees or other persons acting in any capacity with regard to the Mortgage Loans to handle funds,
money, documents and papers relating to the Mortgage Loans. Such fidelity bond and errors and omissions insurance shall protect
and insure the Servicer against losses, including forgery, theft, embezzlement, fraud, errors and omissions and negligent acts
of such persons. Such fidelity bond shall also protect and insure the Servicer against losses in connection with the failure to
maintain any insurance policies required pursuant to this Agreement and the release or satisfaction of a Mortgage Loan without
having obtained payment in full of the indebtedness secured thereby. No provision of this Section 3.12 requiring the fidelity bond
and errors and omissions insurance shall diminish or relieve the Servicer from its duties and obligations as set forth in this
Agreement. The minimum coverage under any such bond and insurance policy shall be at least equal to the corresponding amounts required
by Fannie Mae in Fannie Mae Servicing Guide. Upon request of the Owner, the Servicer shall cause to be delivered to the Owner a
certified true copy of the fidelity bond and errors and omissions insurance policy or a certificate evidencing the same and a statement
from the surety and the insurer that such fidelity bond or insurance policy may not be terminated or materially modified without
thirty (30) days' prior written notice to the Owner.

 

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SECTION
3.13.      Title, Management and Disposition of REO Property.

 

(a)          In
the event that title to any Mortgaged Property is acquired in foreclosure or by deed in lieu of foreclosure, the deed or certificate
of sale shall be issued in the name of the Owner or its designee, and the Servicer shall maintain such deed or certificate of sale
in trust for the benefit of the Owner or its designee. The Owner or its designee’s name shall be placed on the title to such
REO Property. The Servicer shall manage, conserve, protect and operate each REO Property for the Owner.

 

(b)          The
Servicer shall, either itself or through an agent selected by the Servicer, manage, conserve, protect and operate each REO Property
(and may rent the same) in the same manner that it manages, conserves, protects and operates other foreclosed property for its
own account, in the same manner that similar property in the same locality as the REO Property is managed, and consistent with
Accepted Servicing Practices. The Servicer shall cause each REO Property to be inspected promptly upon the acquisition of title
thereto and shall cause each REO Property to be inspected at least quarterly thereafter. Such reports shall be retained in the
Servicing File. With respect to any REO Property, the Servicer shall perform any tax withholding and reporting required by the
Code.

 

(c)          The
Servicer may contract with any Independent Contractor for the operation and management of any REO Property, provided that:

 

(i)         
 the terms and conditions of any such contract shall not be inconsistent herewith;

 

(ii)     
    any such contract shall require, or shall be administered to require, that the Independent
Contractor pay all costs and expenses incurred in connection with the operation and management of such REO Property, and
remit all related revenues (net of such costs and expenses) to the Servicer for deposit in the Collection Account as soon as
practicable, but in no event later than thirty days following the receipt thereof by such Independent Contractor;

 

(iii)      
  none of the provisions of this Section 3.13 (c) relating to any such contract or to actions taken through
any such Independent Contractor shall be deemed to relieve the Servicer of any of its duties and obligations to the Owner
with respect to the operation and management of any such REO Property; and

 

(iv)     
   the Servicer shall be obligated with respect thereto to the same extent as if it alone were
performing all duties and obligations in connection with the operation and management of such REO Property.

 

The Servicer shall be entitled
to enter into any agreement with any Independent Contractor performing services for it related to its duties and obligations hereunder
for indemnification of the Servicer by such Independent Contractor, and nothing in this Agreement shall be deemed to limit or modify
such indemnification. The Servicer shall be solely liable for all fees owed by it to any such Independent Contractor, irrespective
of whether the Servicer's compensation pursuant to Section 3.21 is sufficient to pay such fees; provided, however,
that to

 

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the extent that any payments
made by such Independent Contractor would constitute Servicing Advances if made by the Servicer, such amounts shall be reimbursable
as Servicing Advances.

 

(d)          Each
REO Disposition shall be carried out by the Servicer at such price and upon such terms and conditions as the Servicer determines
in good faith, to likely result in a higher expected recovery of net proceeds taking into account the risks of recovery.

 

Section
3.14.      Remittances.

 

During the Total Servicing
Period, the Servicer shall remit to the Owner no later than 3:00 P.M. New York City time on each Payment Date all amounts credited
to the Collection Account on the related Remittance Date with respect to the related Collection Period, net of charges against
or withdrawals from the Collection Account pursuant to Section 3.05. With respect to any remittance received by the Owner after
the day on which such payment was due, the Servicer shall pay, from its own funds without any right of reimbursement, to the Owner
interest on any such late payment at an annual rate equal to the prime rate as set forth in The Wall Street Journal as of
such Remittance Date (but in no event greater than the maximum amount permitted by Applicable Law); provided, that, if any
such required amount is delivered after the required date solely as a result of administrative error on the part of the Servicer
but the Servicer remedies such late payment by the end of the Business Day following such required date, the Servicer shall not
be required to pay any such interest on such late amount. Such interest shall be deposited in the Payment Account by the Servicer
on the date such late payment is made and shall cover the period commencing with the day following the day such payment was due
and ending with the Business Day on which such payment is made, both inclusive.

 

Section
3.15.      Remittance Reports.

 

Not later than the 10th
calendar day of each calendar month (or if such calendar day is not a Business Day, the immediately preceding Business Day), the
Servicer shall furnish the following reports, in each case including but not limited to: (i) a monthly remittance advice in written
or electronic format relating to the most recently-completed calendar month (the “Monthly Remittance Report”)
and (ii) such other loan-level or property-level information reasonably available to it with respect to the Mortgage Loans and
REO Properties as the Owner may reasonably request.

 

Section
3.16.      Statements to the Owner.

 

Upon request, the Servicer
shall forward to the Owner or its designee a statement prepared by the Servicer setting forth the status of the Collection Account
as of the end of the Collection Period preceding the most recent Remittance Date and showing, for the period covered by such statement,
the aggregate amount of deposits into and withdrawals from the related Collection Account of each category of deposit specified
in Section 3.04 and each category of withdrawal specified in Section 3.05.

 

The Servicer shall prepare
or cause to be prepared and file or cause to be filed any and all tax returns, information statements or other filings that the
Servicer is required to deliver to any governmental taxing authority or to the Owner and each successor in interest pursuant to
any Applicable Law with respect to the Mortgage Loans arising after the Closing Date. In

 

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addition, the Servicer shall
provide, not more than 60 days after the end of each calendar year, the Owner with such information reasonably available to the
Servicer arising after the Closing Date concerning the Mortgage Loans as is necessary for such party to prepare any income tax
return or report as any such party may reasonably request from time to time. The Servicer shall not be responsible for any tax
returns of the Owner.

 

SECTION
3.17.      Compliance with the Homes Act.

 

The Servicer, on behalf of
the Owner, shall prepare and distribute a Section 404 Notice to each Mortgagor within thirty (30) days of each Closing Date in
connection with the sale of the applicable Mortgage Loans by the seller under the applicable Purchase Agreement. Each such Section
404 Notice shall conform to the form of notice attached hereto as Exhibit C, subject to any changes required by Applicable
Law. The Servicer shall pay all costs associated with the preparation and distribution of such Section 404 Notice, without reimbursement
from the Owner or the Collection Account. The Servicer shall promptly send written confirmation to the Owner upon the completion
of the distribution of such Section 404 Notices.

 

SECTION
3.18.      Annual Statement as to Compliance.

 

On or prior to March 31st
of each year, beginning in calendar year 2014, the Servicer shall deliver to the Owner a statement to the effect that (i) an authorized
officer of the Servicer, has reviewed (or a review has been made under its supervision) the activities of the Servicer under this
Agreement during the prior calendar year (or applicable portion thereof for which such party served in such capacity) and (ii)
to the best of such officers' knowledge, based on such review, the Servicer has fulfilled all of its obligations under this Agreement
in all material respects throughout the period covered by the prior calendar year (or applicable portion thereof) or, if there
has been a failure to fulfill any such obligation in any material respect, a statement of such failure known to such officer and
the cure and remedial actions being taken and the nature and the status thereof.

 

SECTION
3.19.      Assumption Agreements.

 

The Servicer shall, to the
extent it has knowledge of any conveyance or prospective conveyance by any Mortgagor of the Mortgaged Property (whether by absolute
conveyance or by contract of sale, and whether or not the Mortgagor remains or is to remain liable under the Mortgage Note and/or
the Mortgage), exercise its rights to accelerate the maturity of such Mortgage Loan under any "due-on-sale" clause applicable
thereto; provided, however, that the Servicer shall not exercise any such rights if prohibited by Applicable
Law from doing so. If the Servicer reasonably believes it is unable under Applicable Law to enforce such "due-on-sale"
clause, the Servicer shall enter into an assumption agreement with the person to whom the Mortgaged Property has been conveyed
or is proposed to be conveyed, pursuant to which such person becomes liable under the Mortgage Note and, to the extent permitted
by Applicable Law, the Mortgagor remains liable thereon. Where an assumption is allowed pursuant to this Section 3.19, the Servicer
is authorized to enter into a substitution of liability agreement with the person to whom the Mortgaged Property has been conveyed
or is proposed to be conveyed pursuant to which the original Mortgagor is released from liability and such Person

 

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is substituted as Mortgagor
and becomes liable under the related Mortgage Note. Any such substitution of liability agreement shall be in lieu of an assumption
agreement.

 

In connection with any such
assumption or substitution of liability, the Servicer shall follow the underwriting practices and procedures of prudent mortgage
lenders in the state in which the related Mortgaged Property is located. With respect to an assumption or substitution of liability,
the Mortgage Interest Rate, the amount of the Monthly Payment, and the final maturity date of such Mortgage Note may not be changed.
The original of any such substitution of liability or assumption agreement shall be promptly delivered by the Servicer to the Custodian
and added to the related Mortgage File and shall, for all purposes, be considered a part of such Mortgage File to the same extent
as all other documents and instruments constituting a part thereof. Any fee collected by Servicer for entering into an assumption
or substitution of liability agreement shall be for the benefit of the Owner.

 

Notwithstanding the foregoing
paragraphs of this Section or any other provision of this Agreement, the Servicer shall not be deemed to be in default, breach
or any other violation of its obligations hereunder (i) if the Servicer did not have knowledge of the assumption of a Person of
the obligations of the Mortgagor under a Mortgage Note or (ii) by reason of any assumption of a Mortgage Loan by operation of law
or any assumption which the Servicer may be restricted by Applicable Law from preventing, for any reason whatsoever. For purposes
of this Section 3.19, the term "assumption" is deemed to also include a sale of the Mortgaged Property subject to the
Mortgage that is not accompanied by an assumption or substitution of liability agreement.

 

SECTION
3.20.      Satisfaction of Mortgages and Release of Mortgage Files.

 

If the Owner has appointed
a Custodian, upon the payment in full of any Mortgage Loan, or the receipt by the Servicer of a notification that payment in full
will be escrowed in a manner customary for such purposes, the Servicer shall request execution of any document necessary to satisfy
the Mortgage Loan and delivery to it of the Mortgage File held by the Custodian by delivery to the Custodian of a request for release,
a form of which is attached hereto as Exhibit B (a "Request for Release"). Upon receipt of such certification
and request, the Owner shall request that the Custodian promptly release the related mortgage documents to the Servicer and the
Servicer shall prepare and process any satisfaction or release. The Owner shall provide the Servicer with a limited power of attorney
authorizing the Servicer to execute any necessary satisfaction or release. Any reasonable expense incurred by the Servicer in connection
with any instrument of satisfaction or deed of reconveyance shall be deemed a Servicing Advance. The Owner shall reimburse the
Servicer for any loss, cost or damage resulting from the failure of the Custodian to comply with such request.

 

If the Owner has appointed
a Custodian, from time to time and as appropriate for the servicing or foreclosure of any Mortgage Loan, the Custodian shall, pursuant
to the Custodial Agreement, upon request of the Servicer and delivery to the Custodian of a Request for Release signed by a Servicing
Officer, release the requested Mortgage File held by the Custodian to the Servicer. Prior to the Servicer releasing any original
documents contained in such Mortgage File to any foreclosure attorney or other related third party as deemed acceptable by the
Servicer (each a "Bailee"), the Servicer shall require such Bailee to execute and deliver a bailee

 

    	24

    	 

    

 

agreement substantially in
the form of Exhibit D hereto (the "Bailee Agreement") evidencing that such original documents are being
released to and held by the Bailee for the benefit of the Servicer on behalf of the Owner. Within a reasonable amount of time following
receipt by the Servicer of such Mortgage File from the Custodian and the executed Bailee Agreement (as well as an acknowledgment
of receipt of documents) from the Bailee, the Servicer shall return such Mortgage File to the Custodian along with a copy of the
Bailee Agreement (as well as an acknowledgment of receipt of documents) and a copy of any such original documents being released
to the Bailee. The Custodian shall update its records upon reinstatement to reflect the existence of a Bailee Agreement for the
applicable documents of the Mortgage File released to the Bailee. The Servicer shall return the applicable original documents of
the related Mortgage File that are returned to it by the Bailee to the Custodian when the need therefor by the Bailee or the Servicer,
as applicable, no longer exists. If the related Mortgage Loan has been liquidated or sold and the related Liquidation Proceeds
have been deposited in the Collection Account, a Servicing Officer of the Servicer shall deliver a Request For Release to the Custodian
indicating that such Mortgage Loan has been liquidated. Upon receipt of such Request For Release by the Custodian, the Mortgage
file shall be released by the Custodian to the Servicer and the Custodian shall have no further responsibility with regard to such
Mortgage File.

 

SECTION
3.21.      Servicing Compensation.

 

(a)          As
compensation for its services hereunder, the Servicer shall be entitled to withdraw from the Collection Account or to retain solely
from interest collections on the Mortgage Loans, the amounts provided for as the Servicing Fee. The Servicer shall be responsible
for (and shall reimburse the Owner for any payments made by the Owner in respect of) any fees of any Interim Servicer. The Servicer
shall be required to pay all expenses incurred by it in connection with its servicing activities hereunder and shall not be entitled
to reimbursement therefor except as specifically provided for herein.

 

(b)          As
set forth in Section 7.01, following the termination of the Servicer and any transfer of servicing hereunder, the Servicer is entitled
to reimbursement for any outstanding Servicing Advances and payment of unpaid Servicing Fees and any amounts payable to it under
Section 5.03.

 

Section
3.22.      Notification of Adjustments.

 

On each Adjustment Date,
the Servicer shall make interest rate adjustments for each Adjustable-Rate Mortgage Loan in compliance with the requirements of
the related Mortgage and Mortgage Note. The Servicer shall execute and deliver the notices required by Applicable Law and each
Mortgage and Mortgage Note regarding interest rate adjustments. Upon the discovery by the Servicer that the Servicer has failed
to adjust a Mortgage Interest Rate or a Monthly Payment pursuant to the terms of the related Mortgage Note and Mortgage, the Servicer
shall deposit within five (5) Business Days of discovery or receipt of written notice thereof in the Collection Account from its
own funds the amount of any interest loss caused thereby without reimbursement therefor; provided, however, the Servicer
shall not be responsible for payment of such interest loss if such loss occurred as a result of the Servicer being provided with
inaccurate data in connection with the servicing transfer of the Mortgage Loans.

 

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SECTION
3.23.      Independent Public Accountants' Servicing Report.

 

The Servicer, at its expense,
shall cause a firm of independent public accountants (which may also render other services to the Servicer) which is a member of
the American Institute of Certified Public Accountants to furnish, on or before March 31st of any year, beginning in
calendar year 2014, a written statement to the Owner to the effect that such firm has examined certain documents and records relating
to the servicing of the Mortgage Loans under this Agreement and that, on the basis of such examination conducted substantially
in compliance with the Uniform Single Attestation Program for Mortgage Bankers, such firm confirms that such servicing has been
conducted in compliance with this Agreement except for such significant exceptions or errors in records that, in the opinion of
such firm, the Uniform Single Attestation Program for Mortgage Bankers requires it to report. To the extent that any material non-compliance
is disclosed in such statement, the Servicer shall furnish a statement, signed by a Servicing Officer, to the Owner regarding the
remedial actions taken and the nature and status thereof.

 

SECTION
3.24.      Access to Certain Documentation.

 

To the extent not prohibited
by Applicable Law, the Servicer shall provide to the Consumer Financial Protection Bureau and any other federal or state banking,
insurance or other regulatory or governmental authority that may exercise authority over the Owner access to the documentation
regarding the Mortgage Loans. Such access shall be afforded without charge.

 

In addition, the Servicer
shall provide access to all records and documentation regarding the Mortgage Loans to the Owner, as well as their representatives,
without charge, upon reasonable request during normal business hours at the offices of the Servicer, subject to the Owner agreeing
to abide by customary confidentiality obligations with respect to such records and documentation.

 

On first day of the Total
Servicing Period, the Servicer shall provide to the Owner, upon reasonable written request, a list of Servicing Officers.

 

SECTION
3.25.      Reports and Returns to be Filed by the Servicer.

 

The Servicer shall file or
cause to be filed information reports with respect to the receipt of mortgage interest received in a trade or business, reports
of foreclosures and abandonments of any Mortgaged Property and information returns relating to cancellation of indebtedness income
with respect to any Mortgaged Property as required by Sections 6050H, 6050J and 6050P of the Code for the period following the
Closing Date. Such reports shall be in form and substance sufficient to meet the reporting requirements imposed by such Sections
6050H, 6050J and 6050P of the Code.

 

SECTION
3.26.      Servicing Agreements Between the Servicers and Sub-Servicers.

 

The Servicer may arrange
for the servicing of any Mortgage Loan by a Sub-Servicer pursuant to a Sub-Servicing Agreement; provided, that such servicing
arrangement and the terms of the related Sub-Servicing Agreement must provide for the servicing of such

 

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Mortgage Loans in a manner
consistent with the servicing arrangements contemplated hereunder; provided, further, that any fees or expenses of
such Sub-Servicer shall be payable solely by the Servicer and shall not result in any increase of the Servicing Fee payable to
the Servicer. Each Sub-Servicer shall be authorized to transact business in the state or states where the related Mortgaged Properties
it is to service are situated, if and to the extent required by law applicable to the Sub-Servicer to enable the Sub-Servicer to
perform its obligations hereunder and under the Sub-Servicing Agreement. Notwithstanding the provisions of any Sub-Servicing Agreement,
any of the provisions of this Agreement relating to agreements or arrangements between the Servicer and a Sub-Servicer or reference
to actions taken through the Servicer or otherwise, the Servicer shall remain obligated and liable to the Owner and its successors
and assigns for the servicing and administration of the Mortgage Loans in accordance with the provisions of this Agreement without
diminution of such obligation or liability by virtue of such Sub-Servicing Agreements or arrangements or by virtue of indemnification
from the related Sub-Servicer and to the same extent and under the same terms and conditions as if the Servicer alone were servicing
and administering such Mortgage Loans. The Owner shall have no responsibility to oversee or enforce any obligations against any
Sub-Servicer. All actions of each Sub-Servicer performed pursuant to the related Sub-Servicing Agreement shall be performed as
an agent of the Servicer with the same force and effect as if performed directly by the Servicer.

 

For purposes of this Agreement,
the Servicer shall be deemed to have received any collections, recoveries or payments with respect to the Mortgage Loans that are
received by its Sub-Servicers regardless of whether such payments are remitted by such Sub-Servicers to the Servicer.

 

SECTION
3.27.      Successor Servicers.

 

Any Sub-Servicing Agreement
shall provide that the Servicer shall be entitled to terminate any Sub-Servicing Agreement and to either itself directly service
the related Mortgage Loans or enter into a Sub-Servicing Agreement with a successor servicer which qualifies under Section 3.26.
Any Sub-Servicing Agreement shall include the provision that any such agreement may be immediately terminated by any successor
to the Servicer without fee, in accordance with the terms of this Agreement, in the event that the Servicer (or any successor to
the Servicer) shall, for any reason, no longer be the servicer of the related Mortgage Loans. Any costs incurred by a successor
servicer in terminating a Sub-Servicing Agreement entered into by the terminated applicable Servicer and the transfer of servicing
in connection therewith shall be reimbursable by the Servicer to the successor servicer as Servicing Transfer Costs as provided
in Section 7.01.

 

SECTION
3.28.      No Contractual Relationship Between Sub-Servicers and the
Owner.

 

Any Sub-Servicing Agreement
and any other transactions or services relating to the Mortgage Loans involving a Sub-Servicer shall be deemed to be between the
Sub-Servicer and the Servicer alone and the Owner shall not be deemed a party thereto or have any obligations, duties or liabilities
with respect to any Sub-Servicer.

 

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SECTION
3.29.      Advance Facility.

 

(a)          The
Servicer is hereby authorized to enter into a financing or other facility (any such arrangement, an "Advance Facility")
under which (i) the Servicer assigns or pledges to another Person (together with such Person's successors and assigns, an
"Advancing Person") the Servicer's rights under this Agreement to be reimbursed for any Servicing Advances and
(ii) an Advancing Person agrees to fund some or all Servicing Advances required to be made by the Servicer pursuant to this Agreement.
Notwithstanding any other provisions of this Agreement, no consent of the Owner or any other Person is required before the Servicer
may enter into an Advance Facility. Notwithstanding the existence of any Advance Facility under which an Advancing Person agrees
to fund Servicing Advances on the Servicer's behalf, the Servicer shall remain obligated pursuant to this Agreement to make Servicing
Advances pursuant to and as required by this Agreement and shall not be relieved of such obligation by virtue of such Advance Facility.
If the Servicer enters into an Advance Facility, and for so long as an Advancing Person remains entitled to receive reimbursement
for any Servicing Advances, as applicable, pursuant to this Agreement, then the Servicer shall remit amounts collected that would
otherwise be retained by the Servicer to reimburse it for previously unreimbursed Servicing Advances ("Servicing Advance
Reimbursement Amounts") (in each case to the extent such Servicing Advance Reimbursement Amount is included in the Advance
Facility) in accordance with the documentation establishing the Advance Facility to such Advancing Person or to a trustee, agent
or custodian (an "Advance Facility Trustee") designated by such Advancing Person. Notwithstanding anything to
the contrary herein, in no event shall any Servicing Advance Reimbursement Amounts be included in any amounts required to be distributed
to the Owner. If the Servicer enters into an Advance Facility, the Servicer and the related Advancing Person shall deliver to the
Owner a written notice of the existence of such Advance Facility (an "Advance Facility Notice"), stating the identity
of the Advancing Person and any related Advance Facility Trustee and the Owner shall execute a letter of acknowledgment confirming
its receipt of an Advance Facility Notice within five (5) Business Days of receipt thereof. The Owner shall not be deemed to have
notice of any Advance Facility in the absence of such notice and acknowledgement. An Advance Facility may only be terminated by
the joint written direction of the Servicer and the related Advancing Person as described in clause (g) below.

 

(b)          Servicing
Advance Reimbursement Amounts shall consist solely of amounts in respect of Servicing Advances made with respect to the Mortgage
Loans for which the Servicer would be permitted to reimburse itself in accordance with this Agreement, assuming the Servicer had
made the related Servicing Advance(s). The receivables assigned or pledged to the Advancing Person are obligations owed from the
Owner to the Servicer on a non-recourse basis payable only from the cash flows and proceeds received under this Agreement for reimbursement
of Servicing Advances only to the extent provided herein; provided, however, that no security interest in the receivables
granted to the Advancing Person by the Servicer shall give the Advancing Person any rights against the Owner other than the Servicer's
right to be reimbursed as provided in this Section, and, notwithstanding anything else provided in this Section, the Owner is not
obligated or liable to repay any loans made by the Advancing Person. The Servicer shall maintain and provide to any successor servicer
(with a copy to the Owner) a detailed accounting on a loan by loan basis as to amounts advanced by, pledged or assigned to, and
reimbursed to any Advancing Person. The successor servicer shall be entitled to rely on any

 

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such information provided
by the predecessor Servicer, and the successor servicer shall not be liable for any errors in such information.

 

(c)          An
Advancing Person who receives an assignment or pledge of the rights to be reimbursed for Servicing Advances, and/or whose obligations
hereunder are limited to the funding of Servicing Advances, shall not be required to meet the criteria for qualification of the
Servicer set forth in this Agreement.

 

(d)          Servicing
Advance Reimbursement Amounts collected with respect to each Mortgage Loan shall be allocated to outstanding unreimbursed Servicing
Advances made with respect to that Mortgage Loan on a "first-in, first out" ("FIFO") basis. Any successor
servicer and the Advancing Person or Advance Facility Trustee shall be required to apply all Servicing Advance Reimbursement Amounts
with respect to any Mortgage Loan (including reimbursement of Nonrecoverable Advances), as and when collected, first, to the Advancing
Person or Advance Facility Trustee to the extent of the interest of the Advancing Person or Advance Facility Trustee in such Servicing
Advances, second to the Servicer in respect of Servicing Advances related to that Mortgage Loan in excess of those in which the
Advancing Person or Advance Facility Trustee has an interest, and third, to the successor servicer in respect of any other Servicing
Advances related to that Mortgage Loan. In the event that, as a result of the FIFO allocation made pursuant to this clause (d),
some or all of a Servicing Advance Reimbursement Amount paid to the Advancing Person or Advance Facility Trustee relates to Servicing
Advances that were made by a Person other than the Servicer or the Advancing Person or Advance Facility Trustee, then the Advancing
Person or Advance Facility Trustee shall be required to remit any portion of such Servicing Advance Reimbursement Amount to the
Person entitled to such portion of such Servicing Advance Reimbursement Amount. The Servicer shall provide to the related Advancing
Person or Advance Facility Trustee loan by loan information with respect to each Servicing Advance Reimbursement Amount distributed
to such Advancing Person or Advance Facility Trustee on each date of remittance thereof to such Advancing Person or Advance Facility
Trustee, to enable the Advancing Person or Advance Facility Trustee to make the FIFO allocation of each Servicing Advance Reimbursement
Amount with respect to each Mortgage Loan.

 

(e)          By
way of illustration, and not by way of limiting the generality of the foregoing, if the Servicer resigns or is terminated at a
time when the Servicer is a party to an Advance Facility, and is replaced by a successor servicer, and the successor servicer directly
funds Servicing Advances with respect to a Mortgage Loan and does not assign or pledge the related Servicing Advance Reimbursement
Amounts to the related Advancing Person or Advance Facility Trustee, then all payments and recoveries received from the related
Mortgagor or received in the form of Liquidation Proceeds will be allocated first to the Advancing Person or Advance Facility Trustee
until the related Servicing Advance Reimbursement Amounts attributable to such Mortgage Loan that are owed to the Servicer and
the Advancing Person, which were made prior to any Servicing Advances made by the successor Servicer, have been reimbursed in full,
at which point the successor Servicer shall be entitled to retain all related Servicing Advance Reimbursement Amounts subsequently
collected with respect to that Mortgage Asset pursuant to this Agreement.

 

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(f)           If
the Servicer enters into an Advance Facility, it shall indemnify the Owner and any successor servicer for any claim, loss, liability
or damage resulting from any claim by the related Advancing Person, the Advance Facility Trustee or any other Person arising out
of the Servicer's having entered into or acts or omissions in connection with an Advance Facility.

 

(g)          At
any time when an Advancing Person shall have ceased funding Servicing Advances and the Advancing Person or related Advance Facility
Trustee shall have received Servicing Advance Reimbursement Amounts sufficient in the aggregate to reimburse all Servicing Advances,
the right to reimbursement for which were assigned or pledged to the Advancing Person, then upon the delivery of written notice
signed by the Advancing Person and the Servicer to the Trustee and the Owner terminating the Advance Facility Notice (the "Notice
of Facility Termination"), the Servicer shall again be entitled to withdraw and retain the related Servicing Advance Reimbursement
Amounts from the Collection Account and the Escrow Account pursuant to the applicable provisions of this Agreement.

 

(h)          After
delivery of any Advance Facility Notice, the Owner will not exercise any right of set-off against the Servicer against amounts
that have been assigned by the Servicer to an Advancing Person.

 

After delivery of any Advance
Facility Notice, and until any such Advance Facility Notice has been terminated by a Notice of Facility Termination, this Section
may not be amended or otherwise modified by the parties hereto without the prior written consent of the related Advancing Person.
Any Advancing Person and Advance Facility Trustee shall be a third party beneficiary of this Section 3.29.

 

ARTICLE
IV.

 

REPRESENTATIONS,
WARRANTIES AND COVENANTS; REMEDIES FOR BREACH.

 

Section
4.01.       Representations and Warranties Respecting the Servicer

 

The Servicer represents,
warrants and covenants to the Owner as of the date of this Agreement and as of each Transfer Date:

 

(i)          The
Servicer is duly organized, validly existing and in good standing under the laws of the State of its formation and has full corporate
power, authority, and legal right to conduct its business as is presently conducted, and to execute, deliver, and perform its obligations
under this Agreement;

 

(ii)         The
Servicer is duly qualified to do business and is in good standing (or is exempt from such requirement) in any state required in
order to conduct business and has obtained all necessary licenses and approvals required under Applicable Law;

 

(iii)        The
Servicer has duly authorized by all necessary corporate action on its part, the execution, delivery and performance of this Agreement,
has duly executed and delivered this Agreement, and this Agreement, assuming due authorization, execution and delivery by the Owner,
constitutes a legal, valid and binding obligation

 

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of the Servicer,
enforceable against it in accordance with its terms except as the enforceability thereof may be limited by bankruptcy, insolvency
or reorganization or similar laws affecting the enforcement of creditors' rights generally and by the availability of equitable
remedies;

 

(iv)        The
execution and delivery of this Agreement by the Servicer and the performance of and compliance with the terms of this Agreement
will not violate or conflict with the Servicer's formation documents or constitute a default under or result in a breach or acceleration
of, any material contract, agreement or other instrument to which the Servicer is a party or which may be applicable to the Servicer
or its assets;

 

(v)         The
Servicer is not in violation of, and the execution and delivery of this Agreement by the Servicer and its performance and compliance
with the terms of this Agreement will not constitute a violation with respect to, any Applicable Law, any order or decree of any
court or any order or regulation of any federal, state, municipal or governmental agency having jurisdiction over the Servicer
or its assets, which violation might have consequences that would materially and adversely affect the condition (financial or otherwise)
or the operation of the Servicer or its assets or could be reasonably be expected to have consequences that would materially and
adversely affect the performance of its obligations and duties hereunder;

 

(vi)        There
are no actions or proceedings against, or investigations of, the Servicer before any court, administrative or other tribunal (A)
that might prohibit its entering into this Agreement or assert the invalidity of this Agreement, (B) seeking to prevent the consummation
of the transactions contemplated by this Agreement, (C) that might prohibit or materially and adversely affect the performance
by the Servicer of its obligations under, or the validity or enforceability of, this Agreement or (D) seeking any determination
or ruling that would adversely affect the validity and enforceability of this Agreement;

 

(vii)       No
consent, approval, authorization or order of any court or governmental agency or body is required for the execution, delivery and
performance by the Servicer of, or compliance by the Servicer with, this Agreement or the consummation of the transactions contemplated
by this Agreement, except for such consents, approvals, authorizations or orders, if any, that have been obtained prior to the
date of this Agreement;

 

(viii)      No
statement of fact made in this Agreement with respect to the Servicer contains any untrue statement of a material fact or omits
to state any material fact necessary to make statements contained herein or therein not misleading;

 

(ix)         The
servicing, administration and collection practices used by the Servicer with respect to the Mortgage Loans have been, in all material
respects, legal, proper, prudent and customary in the non-conforming mortgage servicing business; and

 

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(x)          The
transactions contemplated by this Agreement are in the ordinary course of business of the Servicer.

 

The representations and warranties
made pursuant to this Section 4.01 shall survive delivery of the respective Mortgage Files to the Custodian.

 

SECTION 4.02       Representations
and Warranties Respecting the Owner

 

The Owner represents, warrants
and covenants to the Owner as of the date of this Agreement and as of each Transfer Date:

 

(i)          The
Owner is duly organized, validly existing and in good standing under the laws of the State of its formation and has full corporate
power, authority, and legal right to conduct its business as is presently conducted, and to execute, deliver, and perform its obligations
under this Agreement;

 

(ii)         The
Owner is duly qualified to do business and is in good standing (or is exempt from such requirement) in any state required in order
to conduct business and has obtained all necessary licenses and approvals required under Applicable Law;

 

(iii)        The
Owner has duly authorized by all necessary corporate action on its part, the execution, delivery and performance of this Agreement,
has duly executed and delivered this Agreement, and this Agreement, assuming due authorization, execution and delivery by the Servicer,
constitutes a legal, valid and binding obligation of the Owner, enforceable against it in accordance with its terms except as the
enforceability thereof may be limited by bankruptcy, insolvency or reorganization or similar laws affecting the enforcement of
creditors' rights generally and by the availability of equitable remedies;

 

(iv)        The
execution and delivery of this Agreement by the Owner and the performance of and compliance with the terms of this Agreement will
not violate or conflict with the Owner's formation documents or constitute a default under or result in a breach or acceleration
of, any material contract, agreement or other instrument to which the Servicer is a party or which may be applicable to the Owner
or its assets;

 

(v)         The
Owner is not in violation of, and the execution and delivery of this Agreement by the Servicer and its performance and compliance
with the terms of this Agreement will not constitute a violation with respect to, any Applicable Law, any order or decree of any
court or any order or regulation of any federal, state, municipal or governmental agency having jurisdiction over the Owner or
its assets, which violation might have consequences that would materially and adversely affect the condition (financial or otherwise)
or the operation of the Owner or its assets or could be reasonably be expected to have consequences that would materially and adversely
affect the performance of its obligations and duties hereunder;

 

(vi)        There
are no actions or proceedings against, or investigations of, the Owner before any court, administrative or other tribunal (A) that
might prohibit its entering into this Agreement or assert the invalidity of this Agreement, (B) seeking to

 

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prevent the consummation
of the transactions contemplated by this Agreement, (C) that might prohibit or materially and adversely affect the performance
by the Servicer of its obligations under, or the validity or enforceability of, this Agreement or (D) seeking any determination
or ruling that would adversely affect the validity and enforceability of this Agreement;

 

(vii)       No
consent, approval, authorization or order of any court or governmental agency or body is required for the execution, delivery and
performance by the Owner of, or compliance by the Owner with, this Agreement or the consummation of the transactions contemplated
by this Agreement, except for such consents, approvals, authorizations or orders, if any, that have been obtained prior to the
date of this Agreement;

 

(viii)      No
statement of fact made in this Agreement with respect to the Owner contains any untrue statement of a material fact or omits to
state any material fact necessary to make statements contained herein or therein not misleading;

 

(ix)        The
transactions contemplated by this Agreement are in the ordinary course of business of the Owner.         

 

SECTION 4.03       Remedies
for Breach of Representations and Warranties.

 

(a)          It
is understood and agreed that the representations and warranties set forth in Section 4.01 shall survive (i) the engagement of
the Servicer to perform the servicing responsibilities as of the date of this Agreement and (ii) any resignation or removal of
the Servicer hereunder. Upon discovery by the Servicer or the Owner of a breach of any of the foregoing representations and warranties
that materially and adversely affects the ability of the Servicer to perform its duties and obligations under this Agreement or
otherwise materially and adversely affects the value of the Mortgage Loans or the interests of the Owner in the Mortgage Loans,
the party discovering such breach shall give prompt written notice to the other.

 

(b)          It
is understood and agreed that the representations and warranties set forth in Section 4.02 shall survive any resignation or removal
of the Servicer hereunder. Upon discovery by the Owner or the Servicer of a breach of any of the foregoing representations and
warranties that materially and adversely affects the ability of the Servicer to realize the benefits accruing to under this Agreement,
the party discovering such breach shall give prompt written notice to the other.

 

(c)          Upon
the earlier of either discovery by the Servicer, or notice to the Servicer, of any breach of a representation or warranty in Section
4.01 which materially and adversely affects the ability of the Servicer to perform its duties and obligations under this Agreement
or otherwise materially and adversely affects the value of the Mortgage Loans, the Servicer shall use its best efforts promptly
to cure such breach in all material respects.

 

(d)          Upon
the earlier of either discovery by the Owner, or notice to the Owner, of any breach of a representation or warranty in Section
4.02 which materially and adversely affects the ability of the Servicer to realize the benefits accruing to it under this Agreement,
the Owner shall use its best efforts promptly to cure such breach in all material respects.

 

    	33

    	 

    

 

ARTICLE
V.

 

THE
SERVICER

 

Section
5.01.      Indemnification by the Servicer and the Owner.

 

(a)          The
Servicer (in such capacity, an “Indemnitor”) shall indemnify the Owner (in such capacity, an “Indemnitee”)
and the Owner (in such capacity, also an “Indemnitor”) shall indemnify the Servicer (in such capacity, also
an “Indemnitee”) and, in each case, any of the officers, directors, employees, managers, members, agents, independent
contractors, successors, and assigns of such respective Indemnitee (all such Persons collectively being "Indemnitees"
and individually being an "Indemnitee" of the respective Indemnitor) and hold harmless any such Indemnitee against
any and all Losses that any Indemnitee may sustain in any way related to (a) the failure of the the Indemnitor to perform its obligations
under this Agreement, including (in the case of the Servicer as Indemnitor) the Servicer’s obligation to service and administer
the Mortgage Loans in compliance with Accepted Servicing Practices and the terms of this Agreement, (b) a breach of any of the
Indemnitor's representations, warranties, covenants, or agreements contained in this Agreement or (c) in the case of the Owner
as Indemnitor, (i) the performance by the Servicer of its duties and obligations and any legal action relating to this Agreement
or (ii) any act or omission relating to the origination or prior servicing of the Mortgage Loans, other than any loss, liability
or expense incurred by reason of Disabling Conduct; provided, however, that an Indemnitor shall not indemnify
any Indemnitee to the extent that any such Losses (x) in the case of the Servicer as Indemnitor, (i) resulted from the negligence,
bad faith or willful misconduct of such Indemnitee or (ii) result from any actions or omissions of any prior servicer, prior subservicer,
originator, prior holder or prior owner, or any successor servicer, of the related Mortgage Loans, or (y) in the case of the Owner
as Indemnitor, resulted from Disabling Conduct by the Servicer or other Indemnitee. If an Indemnitee incurs a Loss (other than
pursuant to a third party claim covered by the next paragraph) for which it wishes to seek indemnification hereunder, it will promptly
provide written notice thereof to the applicable Indemnitor, specifying in reasonable detail the type and amount (and estimated
future amount) of the Losses. Within ten (10) days of receiving such notice, the Indemnitor shall provide the Indemnitee with a
written response specifying the extent to which it accepts liability for such Losses hereunder and, if it denies liability for
all or any portion of such Losses, specifying in reasonable detail the reason therefor.

 

(b)          Promptly
after receipt by an Indemnitee under this Section 5.01 of notice of any claim or the commencement of any action, such Indemnitee
shall, if a claim in respect thereof is to be made against the Indemnitor under this Section 5.01, notify the Indemnitor in writing
of the claim or the commencement thereof; but the omission to so notify the Indemnitor shall not relieve it from any liability
it may have to any Indemnitee otherwise than under this Section 5.01, except to the extent that it has been materially prejudiced
by such failure. In case any such action is brought against any Indemnitee and it notifies the Indemnitor of the commencement thereof,
the Indemnitor shall be entitled to participate therein and, to the extent that, by written notice delivered to each Indemnitee
promptly after receiving the aforesaid notice from an Indemnitee, the Indemnitor elects to assume the defense thereof, it may do
so with counsel satisfactory to each Indemnitee; provided, however, that if the defendants in any such

 

    	34

    	 

    

 

action include both an Indemnitee
and the Indemnitor and an Indemnitee or Indemnitees shall reasonably have concluded that there may be legal defenses available
to it or them and/or other Indemnitees that are different from or additional to those available to the Indemnitor, the Indemnitee
or Indemnitees shall have the right to select separate counsel to assert such legal defenses and to otherwise participate in the
defense of such action on behalf of such Indemnitee or Indemnitees. Upon receipt of notice from the Indemnitor to such Indemnitee
of its election so to assume the defense of such action and approval by the Indemnitee of such counsel, the Indemnitor shall not
be liable to such Indemnitee under this paragraph for any legal or other expenses subsequently incurred by such Indemnitee in connection
with the defense thereof, unless (i) such Indemnitee shall have employed separate counsel (plus any local counsel) in connection
with the assertion of legal defenses in accordance with the proviso to the immediately preceding sentence, (ii) the Indemnitor
shall not have employed counsel satisfactory to such Indemnitee to represent such Indemnitee within a reasonable time after notice
of commencement of the action or (iii) such Indemnitor shall have authorized the employment of counsel for such Indemnitee at the
expense of the Indemnitor. The Indemnitor shall not be liable for any settlement of any proceeding effected without its written
consent, which consent shall not be unreasonably withheld, but if settled with such consent or if there shall be a final judgment
against the Indemnitee, the Indemnitor agrees to indemnify the Indemnitee from and against any loss or liability by reason of such
settlement or judgment. In no event shall any Indemnitor be liable for the fees and expenses of more than one counsel (in addition
to any local counsel) separate from its own counsel for all indemnified parties in connection with any one action or separate but
similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances. No Indemnitor
shall, without prior written consent of the Indemnitee, effect any settlement of any pending or threatened proceeding in respect
of which any Indemnitee is or could have been a party and indemnity could have been sought thereunder by such Indemnitee, unless
such settlement (i) does not include a statement as to or admission of, fault, culpability or a failure to act by or on behalf
of any such Indemnitee, and (ii) includes an unconditional release of such Indemnitee from all liability on claims that are the
subject matter of such proceeding.

 

(c)          The
provisions of this Section 5.01 shall survive the resignation or termination of the Servicer or the termination of this Agreement.

 

(d)          Each
Indemnitee is an intended third party beneficiary of this Section 5.01.

 

Section
5.02.      Merger or Consolidation of Servicer.

 

The Servicer shall remain
in existence as an organization, maintain its rights as an organization and shall obtain and preserve its qualification to do business
in which such qualification is or shall be necessary to protect the validity and enforceability of this Agreement or any of the
Mortgage Loans, and to enable the Servicer to perform its duties under this Agreement.

 

Any Person into which the
Servicer may be merged or consolidated, or any entity resulting from any merger, conversion or consolidation to which the Servicer
shall be a party, or a sale of substantially all of the assets of the Servicer or any Person succeeding to the business of

 

    	35

    	 

    

 

the Servicer shall be the
successor of the Servicer hereunder, without the execution or filing of any paper or any further act on the part of any of the
parties hereto, anything herein to the contrary notwithstanding; provided, however, that the successor or surviving
Person shall (i) be an established institution whose business includes the servicing of mortgage loans, (ii) have a net worth of
at least $15,000,000, and (iii) be capable of assuming all of the responsibilities, duties and obligations of the Servicer hereunder.

 

Section
5.03.      Limitation on Liability of the Servicer and Others.

 

Neither the Servicer nor any director, officer,
or employee of the Servicer, will be under any liability to the Owner for the taking of any action or for refraining from the taking
of any action in good faith pursuant to this Agreement, or for errors in judgment in acting pursuant to this Agreement; provided,
however, that this provision shall not protect the Servicer or any such person against any breach of any warranties, representations,
covenants, or agreements made by the Servicer herein, or failure of the Servicer or any such person to perform its obligations
under this Agreement, or any liability which would otherwise be imposed by reason of willful misfeasance, bad faith or negligence
in the performance of his or its duties or by reason of reckless disregard of his or its obligations and duties hereunder (“Disabling
Conduct”). The Servicer and any officer, employee or agent of the Servicer may rely in good faith on any document of
any kind prima facie properly executed and submitted by any Person respecting any matters arising hereunder. The Servicer
shall not be under any obligation to appear in, prosecute or defend any legal action which is not incidental to its duty to service
the Mortgage Loans in accordance with this Agreement and which in its opinion may result in its incurring any expenses or liability;
provided, however, that the Servicer may undertake any such action which it may in good faith deem to be in the best
interest of the Owner. In such event, the legal expenses and costs of such action and any liability resulting therefrom shall,
except to the extent they arise in connection with Disabling Conduct, be expenses, costs and liabilities for which the Owner shall
be liable, and the Servicer shall be entitled to reimbursement therefor.

 

Section
5.04.      Resignation of the Servicer.

 

The Servicer shall not shall
assign this Agreement or resign from the obligations and duties hereby imposed on it except by written consent of the Owner, or
upon the determination that its servicing duties hereunder are no longer permissible under Applicable Law and such incapacity cannot
be cured by the Servicer, in which event the Servicer may resign as servicer. Any such determination that its servicing duties
hereunder are no longer permissible under Applicable Law permitting the resignation of the Servicer shall be evidenced by an opinion
of counsel to such effect delivered to the Owner which opinion of counsel shall be in form and substance acceptable to the Owner
and shall be provided at the cost of the Servicer. Notwithstanding the foregoing, the Servicer has the right to assign this Agreement
or resign as Servicer hereunder if (i) the Servicer has proposed a successor servicer to the Owner in writing and such proposed
successor servicer is acceptable to the Owner and (ii) such successor servicer meets the eligibility requirements in second paragraph
of Section 5.02 of this Agreement to act as servicer hereunder and agrees to service the Mortgage Loans in accordance with this
Agreement. In addition, the Servicer has the right to resign if the Manager of the Owner has been terminated for any reason. All
Servicing Transfer Costs of the Owner incurred in connection with such assignment or resignation and transfer of servicing shall
be paid by the

 

    	36

    	 

    

 

resigning Servicer. No assignment
or resignation of the Servicer as set forth in this Section 5.04 shall become effective until a successor shall have assumed the
Servicer's responsibilities and obligations hereunder in the manner provided in Section 7.01.

 

ARTICLE
VI.

 

TERMINATION.

 

Section
6.01.      Termination for Cause.

 

(a)          The
occurrence and continuance of any one of the following events with respect to the Servicer shall constitute a "Servicer
Event of Default":

 

(i)          any
failure by the Servicer to remit to the Owner any payment date required to be made under the terms of this Agreement which continues
unremedied for a period of three (3) Business Days after the date upon which written notice of such failure, requiring the same
to be remedied, shall have been received by the Servicer from the Owner; or

 

(ii)         any
failure on the part of the Servicer duly to observe or perform in any material respect any other of the covenants or agreements
on the part of the Servicer set forth in this Agreement that has a material adverse effect on the Mortgage Loans or the Owner and
which continues unremedied for a period of sixty (60) days after the date on which written notice of such failure, requiring the
same to be remedied, shall have been received by the Servicer from the Owner; or

 

(iii)        a decree or order of a court or agency or supervisory authority having jurisdiction for the appointment of a conservator or receiver
or liquidator in any insolvency, bankruptcy, readjustment of debt, marshalling of assets and liabilities or similar proceedings,
or for the winding-up or liquidation of the affairs of the Servicer shall have been entered against the Servicer and such decree
or order shall have remained in force undischarged or unstayed for a period of one hundred twenty (120) days; or

 

(iv)        the Servicer shall consent to the appointment of a conservator or receiver or liquidator in any insolvency, bankruptcy, readjustment
of debt, marshalling of assets and liabilities or similar proceedings of or relating to the Servicer or of or relating to all or
substantially all of its property; or

 

(v)         the
Servicer shall admit in writing its inability to pay its debts generally as they become due, file a petition to take advantage
of any applicable insolvency or reorganization statute, make an assignment for the benefit of its creditors, or voluntarily suspend
payment of its obligations.

 

So long as a Servicer Event
of Default shall not have been remedied within the applicable grace period, if any, or waived pursuant to Section 7.02 hereof,
the Owner may, by notice then given in writing to the Servicer, terminate all of the rights and obligations of the Servicer under
this Agreement. On or after the receipt by the Servicer of such written notice and

 

    	37

    	 

    

 

subject to Section 7.01,
all authority and power of the Servicer under this Agreement, whether with respect to the Mortgage Loans or otherwise, immediately
(and without further action) shall pass to and be vested in the Owner or its designee as successor servicer pursuant to and under
this Section 6.01 and Section 7.01, and, without limitation, the Owner (or its designee) is hereby authorized and empowered to
execute and deliver, on behalf of the Servicer, as attorney-in-fact or otherwise, any and all documents and other instruments,
and to do or accomplish all other acts or things necessary or appropriate to effect the purposes of such notice of termination.
In the event that the Servicer receives a notice of termination, the Servicer shall continue carrying out its duties and obligations
as servicer under this Agreement until the Owner, its designee, or any other successor servicer shall have assumed all of the rights,
duties and obligations of the Servicer hereunder. The Servicer agrees to cooperate with the Owner (and any other entity appointed
as successor servicer pursuant to Section 7.01) in effecting the termination of the responsibilities and rights of the Servicer
the Servicer hereunder, including, without limitation, the transfer to the Owner, its designee, or other successor servicer for
the administration by it of all cash amounts that have been deposited by the Servicer in the Collection Account or Escrow Account
or thereafter received by the Servicer with respect to the Mortgage Loans. All Service Transfer Costs of the Owner incurred in
connection with the termination of the Servicer pursuant to this Section 6.01 and transfer of servicing shall be paid by the Servicer.

 

Section
6.02.      Waiver of Defaults.

 

The Owner may waive any default
by the Servicer in the performance of its obligations hereunder. Upon any such waiver of a past default, such default shall cease
to exist, and any Servicer Event of Default therefrom shall be deemed to have been remedied for every purpose of this Agreement.
No such waiver shall extend to any subsequent or other default or impair any right consequent thereon except to the extent expressly
so waived.

 

Section
6.03.      Termination Without Cause.

 

This Agreement shall terminate
upon: (i) the later of (a) the sale or other disposition of all of the Mortgage Loans by the Owner, (b) the distribution of the
final payment on, or proceeds of, the last Mortgage Loan, and (c) the disposition of all REO Properties and the remittance
of all funds due hereunder, or (ii) mutual consent of the Servicer and the Owner in writing, or (iii) if the Owner is no longer
managed by an entity affiliated with the Servicer, upon written notice by the new manager of the Owner in its capacity as such,
provided, however, that if this Agreement is terminated pursuant to this clause (iii), the Servicer shall be paid a termination
fee equal to the Servicing Fee paid to the Servicer during the twelve (12) month period immediately preceding the effective date
of termination or (iv) upon the fifteenth (15th) anniversary of the effective date of this Agreement, provided, however,
that this Agreement will automatically renew for successive one-year terms beginning on such fifteenth (15th) anniversary
unless either party sends a notice of non-renewal to the other party at least 180 days before the completion of the initial or
renewal term, as applicable

 

    	38

    	 

    

 

ARTICLE
VII.

 

MISCELLANEOUS
PROVISIONS.

 

Section
7.01.      Successor to the Servicer.

 

Prior to termination of the
Servicer’s responsibilities and duties under this Agreement, the Owner shall appoint a successor which shall succeed to all
rights and assume all of the responsibilities and duties of the Servicer as servicer under this Agreement. In connection with such
appointment and assumption, the Owner may make such arrangements for the compensation of such successor out of payments on the
Mortgage Loans as it and such successor shall agree. In the event that the Servicer’s duties, responsibilities and liabilities
as servicer under this Agreement should be terminated pursuant to any of the aforementioned Sections, the Servicer shall discharge
such duties and responsibilities during the period from the date it acquires knowledge of such termination until the effective
date thereof with the same degree of diligence and prudence which it is obligated to exercise under this Agreement, and shall take
no action whatsoever that might impair or prejudice the rights or financial condition of the Owner or such successor. The termination
or resignation of the Servicer as servicer pursuant to the aforementioned Sections shall not become effective until a successor
shall be appointed and assumes Servicer’s responsibilities and duties pursuant to this Section 7.01 and shall in no event
relieve the Servicer of any of its obligations hereunder. Notwithstanding any provision herein to the contrary, upon termination
of the Servicer and the transfer of the Servicer's servicing obligations hereunder, the Servicer shall be immediately reimbursed
for all of its unreimbursed Servicing Advances.

 

The Servicer shall timely
deliver to the successor the funds in the Collection Account and the Escrow Account, the Servicing Files, and related documents
and statements held by it hereunder and the Servicer shall account for all funds. The Servicer shall execute and deliver such instruments
and do such other things all as may reasonably be required to more fully and definitely vest and confirm in the successor all such
rights, powers, duties, responsibilities and obligations of the Servicer as servicer. The successor shall make arrangements as
it may deem appropriate to reimburse the Servicer for amounts the Servicer actually expended as servicer pursuant to this Agreement
which the successor is entitled to retain hereunder and which would otherwise have been recovered by the Servicer pursuant to this
Agreement but for the appointment of the successor servicer.

 

The termination or resignation
of the Servicer as servicer shall in no event relieve the Servicer of its representations and warranties made in this Agreement
and its obligation to indemnify and defend the Indemnitees as provided in Section 5.01. The provisions of ARTICLE I, ARTICLE IV,
Section 5.01, Section 5.03, Section 7.01, Section 7.02, Section 7.03, Section 7.05, Section 7.06, Section 7.07, Section 7.10, Section
7.12 and Section 7.14 shall survive the resignation or termination of the Servicer or the termination of this Agreement.

 

Section
7.02.      Authorizations; Notices.

 

All demands, notices and
communications hereunder shall be in writing and shall be deemed to have been duly given if mailed, by registered or certified
mail, return receipt

 

    	39

    	 

    

 

requested, or when received
by the other party at the address set forth below if (i) mailed via overnight carrier or (ii) delivered in person:

 

	(a)	if to the Owner
	 	 
	 	Great Ajax Corp.
	 	9400 SW Beaverton Hillsdale Hwy, #131
	 	Beaverton, Oregon 97005
	 	Attn: Larry Mendelsohn
	 	Telephone: (503) 226-4614
	 	Facsimile: (503) 226-4699
	 	 
	 	 and
	 	 
	(b)	if to the Servicer:
	 	 
	 	Gregory Funding LLC
	 	9400 SW Beaverton Hillsdale Hwy, #131
	 	Beaverton, Oregon 97005
	 	Attn: Glenn Ohl
	 	Telephone: (503) 505 5660
	 	Facsimile: (503) 226-4660

 

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

 

Section
7.03.      Severability Clause.

 

Any part, provision, representation
or warranty of this Agreement which is prohibited or which is held to be void or unenforceable shall be ineffective to the extent
of such prohibition or unenforceability without invalidating the remaining provisions hereof. Any part, provision, representation
or warranty of this Agreement which is prohibited or unenforceable or is held to be void or unenforceable in any jurisdiction shall
be ineffective, as to such jurisdiction, to the extent of such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any jurisdiction as to any Mortgage Loan shall not invalidate
or render unenforceable such provision in any other jurisdiction. To the extent permitted by Applicable Law, the parties hereto
waive any provision of law which prohibits or renders void or unenforceable any provision hereof. If the invalidity of any part,
provision, representation or warranty of this Agreement shall deprive 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 invalidity.

 

Section
7.04.      Counterparts.

 

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.

 

    	40

    	 

    

Section
7.05.      GOVERNING LAW.

 

THE AGREEMENT SHALL BE CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO ANY CONFLICTS OF LAW PROVISIONS (EXCEPT FOR SECTION 5-1401
OF THE NEW YORK GENERAL OBLIGATIONS LAW) AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, EXCEPT TO THE EXTENT PREEMPTED BY FEDERAL LAW. THE PARTIES AGREE THAT THE
APPROPRIATE COURTS IN THE CITY AND COUNTY OF NEW YORK, NEW YORK SHALL HAVE EXCLUSIVE JURISDICTION FOR ANY LITIGATION RELATING TO
THIS AGREEMENT OR THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER.

 

Section
7.06.      Successors and Assigns.

 

This Agreement shall bind
and inure to the benefit of and be enforceable by the Servicer and the Owner and their respective successors and assigns. Except
as otherwise permitted under this Agreement, this Agreement shall not be assigned, pledged or hypothecated by the Servicer other
than in accordance with Section 5.04 hereof.

 

Section
7.07.      Waivers.

 

No term or provision of this
Agreement may be amended, waived or modified unless such waiver or modification is in writing and signed by the party against whom
such amendment, waiver or modification is sought to be enforced.

 

Section
7.08.      Exhibits.

 

The exhibits to this Agreement
are hereby incorporated and made a part hereof and are an integral part of this Agreement.

 

Section
7.09.      General Interpretive Principles.

 

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

 

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

 

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

 

(c)          references
herein to "Articles," "Sections," "Paragraphs," and other Subdivisions without reference to a document
are to designated Articles, Sections, Paragraphs and other subdivisions of this Agreement;

 

    	41

    	 

    

 

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

 

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

 

(f)          the
term "include" or "including" shall mean without limitation by reason of enumeration.

 

Section
7.10.      Reproduction of Documents.

 

Any complete executed version
of this Agreement and all complete executed versions of documents relating hereto, including, without limitation, (a) consents,
waivers and modifications which may hereafter be executed, (b) documents received by any party at the closing, and (c) audited
financial statements, certificates and other information previously or hereafter furnished, may be reproduced by any photographic,
photostatic, microfilm, micro-card, miniature photographic or other similar process. The parties agree that any such reproduction
shall be admissible in evidence as the original itself in any judicial or administrative proceeding, whether or not the original
is in existence and whether or not such reproduction was made by a party in the regular course of business, and that any enlargement,
facsimile or further reproduction of such reproduction shall likewise be admissible in evidence.

 

Section
7.11.      Further Agreements.

 

The Servicer and the Owner
agree to execute and deliver to the others such reasonable and appropriate additional documents, instruments or agreements as may
be necessary or appropriate to effectuate the purposes of this Agreement.

 

Section
7.12.      Amendment.

 

Subject to Section 7.07,
this Agreement may be amended only by written agreement signed by the Servicer and the Owner.

 

Section
7.13.      Entire Agreement.

 

This Agreement constitutes
the entire agreement and understanding of the parties with respect to the matters and transactions contemplated by this Agreement
and, except to the extent otherwise set forth in writing, supersedes any prior agreement and understandings with respect to those
matters and transactions.

 

SECTION 7.14          Limitation
of Damages.

 

Notwithstanding any other
provision of this Agreement, no party shall be liable to any other party for any special, indirect, incidental, consequential (including
lost profits), punitive or exemplary damages. The exclusion set forth in the preceding sentence shall not

 

    	42

    	 

    

 

apply to or in any way limit
an indemnifying party's obligations to indemnify the indemnified party for such third party damages actually assessed against the
indemnified party,

 

    	43

    	 

    

 

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

 

	 	gregory funding llc
	 	as Servicer
	 	 
	 	By: 	/s/ Steven Rosenberg	 
	 	Name:  Steven Rosenberg
	 	Title: Manager and President

 

	 	great ajax corp.
	 	as Owner
	 	 
	 	By: 	/s/ Lawrence Mendelsohn	 
	 	Name: Lawrence Mendelsohn
	 	Title: Chief Executive Officer
	 	 
	 	great ajax OPERATING PARTNERSHIP L.P.
	 	as Owner
	 	 
	 	By:	/s/ Lawrence Mendelsohn	 
	 	Name: Lawrence Mendelsohn
	 	Title: Chief Executive Officer
	 	 
	 	LITTLE ajax II LLC
	 	as Owner
	 	 
	 	By:	/s/ Lawrence Mendelsohn	 
	 	Name: Lawrence Mendelsohn
	 	Title: Chief Executive Officer

 

    	44

    	 

    

 

EXHIBIT A

 

MORTGAGE LOAN SCHEDULE

 

See attached.

 

    	45

    	 

    

 

EXHIBIT
B

 

FORM OF REQUEST FOR RELEASE OF MORTGAGE FILE
DOCUMENTS

 

	To:	[INSERT ADDRESS]	Date:  	 	 

 

 Re:      Custodial
Agreement, dated as of June __, 2013 among [insert]

 

In connection with the administration of the
Mortgage Loans held by you as Custodian for the Owner pursuant to the above-captioned Custodial Agreement, we request the release,
and hereby acknowledge receipt, of the Custodian's Mortgage File for the Mortgage Loan described below, for the reason indicated.

 

Mortgage Loan Number:     ____________________

 

Pool Number:    ________________________

 

Investor Loan Number:     ________________________

 

Mortgagor Name, Address & Zip Code:

 

Reason for Requesting Documents (check one):

 

_______ 1. Mortgage Paid in Full                               Original
Loan Amount: $______________

 

_______ 2. Foreclosure

 

_______ 3. Other Liquidation (Repurchases, etc.)

 

_______ 4. Non-liquidation Reason:__________________

 

	 	By:	 
	 	 	(Authorized Signature)

 

	 	Printed Name	 

 

	 	Servicer Name:	 

 

 

	 	Ship To Address:	 
	 	 
	 	 

 

    	B-1

    	 

    

 

EXHIBIT
C

 

FORM
OF SECTION 404 NOTICE

 

Notice
of Sale of Ownership of Mortgage
Loan

 

Under federal law, borrowers are required to
be notified in writing whenever ownership of a mortgage loan secured by their principal dwelling is sold, transferred or assigned
(collectively, "sold") to a new owner. This Notice is to inform you that the prior owner of your loan has sold your loan
(described below) to the new owner identified below on [insert date].

 

**NOTE: The new owner identified below is
not the servicer of your loan. The servicer (identified below) acts on behalf of the new owner to handle the ongoing administration
of your loan, including the collection of mortgage payments. Please continue to send your mortgage payments as directed by the
servicer, and NOT to the new owner. Payments sent to the new owner instead of the servicer may result in late charges
on your loan and your account becoming past due. Neither the new owner nor the servicer is responsible for late charges or other
consequences of any misdirected payment.

 

SHOULD YOU HAVE ANY QUESTIONS REGARDING
YOUR LOAN, PLEASE CONTACT THE SERVICER USING THE CONTACT INFORMATION SET FORTH BELOW. The servicer is authorized to handle
routine inquiries and requests regarding your loan and, if necessary, to inform the new owner of your request and communicate to
you any decision with respect to such request. ** 

 

Please note that the sale of your loan to the
new owner may also result in a change of servicer. If this occurs, you will receive a separate notice, required under federal law,
providing information regarding the new servicer.

 

	LOAN INFORMATION
	 
	Date of Loan:
	 
	Original Amount of Loan:
	 
	Date Your Loan was Transferred to the New Owner:
	 
	Address of Mortgaged Property:
	 
	SERVICER INFORMATION
	 
	Name: 	[___].
	 
	Mailing Address:	[___]
	 
	 	[___]
	 	 

 

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	Telephone Number (Toll free): 	[___]
	 
	Website: 	www.[___].com
	 
	Scope
    of responsibilities: The servicer is responsible for ongoing administration
    of your loan, including receipt of legal notices, receipt and processing of payments, resolution of payment-related issues,
    and response to any other inquiries you may have regarding your loan.
	 
	NEW OWNER INFORMATION
	 
	Please be advised that all questions involving the administration of your loan (including questions related to payments, deferrals, modifications or foreclosures) should be directed to the servicer at the number above and not to the new owner.  The new owner does not have access to information relating to the administration of your loan, and will not be able to most answer loan-related questions.
	 
	Name: 	______
	 	 
	Mailing Address (not for payments):	______
	 
	Telephone Number: 	[__]-[___]
	 	 
	[Scope of responsibilities: As new owner, the above-named trust holds legal title to your loan.  The above-named trustee, on behalf of the new owner, is authorized to receive legal notices and to exercise (or cause an agent on its behalf to exercise) certain rights of ownership with respect to your loan.]
	 

 

The transfer of the lien associated with your
loan is currently recorded, or in the future may be recorded, in the office of public land or the recorder of deeds office (e.g.,
the County Recorder's office) for the local jurisdiction where your property is located. If checked  ̈,
ownership of your loan is also recorded on the registry of the Mortgage Electronic Registrations System at 1818 Library Street,
Suite 300, Reston, VA 20190.

 

The rights and obligations of the new owner,
and consequently its authority to respond favorably to your requests or inquiries, may be limited by the terms of one or more contracts
related to the securitization of your loan.

 

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EXHIBIT D

 

FORM OF BAILEE AGREEMENT

 

	Date:	[date]

 

	To:	[Servicer]

 

	From:	[Insert Attorney Office Name]
	 	 
	Address:	[Address]
	 	 
	 	[City, State and Zip]
	 	 
	Phone Number:	 

 

	Loan Number:	 
	 	 
	Mortgagor Name:	 
	 	 
	Property Address:	 

 

We request the release of the Mortgage File documents listed below
for the purpose of initiating or pursuing legal action or foreclosure of the related mortgage account.

 

____ 1. _______________

 

____ 2. _________________

 

____ 3. _______________

 

____ 4. _________________

 

____ 5. _______________

 

Mortgage File documents now or hereafter delivered to me/my office
will be held by me/my office as a Bailee and agent for the Custodian, who is acting on behalf of the Issuer unless the Mortgage
File documents have been delivered to a public trustee or other public official as required by law for the purposes of pursuing
legal action or foreclosure of the related mortgage account.. I/my office shall return the Mortgage File documents to the Servicer
upon completion

 

    	 

    	 

    

 

or cancellation of the legal action at the address listed below
unless the Mortgage File documents have been delivered to a public trustee or other public official as required by law for
the purposes of pursuing legal action or foreclosure of the related mortgage account.

 

[Servicer address]

 

In the event I/my office, as Bailee, loses any or all of the
Mortgage File documents, Bailee agrees to indemnify and hold the Custodian, its officers, directors, employees and agents harmless
against any and all losses, liabilities, damages, fees (including reasonable attorneys' fees), costs and expenses that may be imposed
or incurred by or assessed against it or them, as a result of thereof; in the absence of its gross negligence or willful misconduct.
However, I/my office, as Bailee, shall not be held liable if the Mortgage File documents are lost by a third party, such as, but
not limited to, any mail service or the court.

 

Please have the collateral documents delivered to me within 7-10
business days.

 

	 	[Attorney Firm Name]	 
	 	 	 	 
	 	By: 	 	 

 

	 	Print Name:	 	 

 

	 	Its:	 	 

 

	GREGORY FUNDING LLC	 
	 	 
	By:	 	 
	 	 
	Name and Title	 
	 	 
	Date:  	 	 

 

    	 

    	 

    

 

EXHIBIT
E

 

FORM OF

JOINDER SUPPLEMENT

 

The undersigned is executing and delivering
this Joinder Supplement to the Servicing Agreement dated as of ____, 201_ (as the same may hereafter be amended, the “Agreement”)
among (i) Gregory Funding LLC, as Servicer and (ii) Great Ajax Corp. and Great Ajax Operating LLC as the Owners, together with
any other Person that has heretofore executed a Joinder Supplement. Capitalized terms used and not otherwise defined in this Joinder
Supplement have the meanings specified in the Agreement.

 

By executing and delivering this Joinder Supplement,
the undersigned hereby agrees to become a party to, to be bound by, and to comply with the provisions of the Agreement as Owner,
together with the other Persons who collectively constitute the Owner, in the same manner as if the undersigned were an original
signatory to the Agreement.

 

Accordingly, the undersigned has executed and
delivered this Joinder Supplement as of the ___ day of __________, 201_.

 

	 	 	 
	 	 	 	 	 
	 	 	By:	 
	 	 	 	Name:	 
	 	 	 	Title:

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