Document:

EXHIBIT 10.2

 

ADVISORY
AGREEMENT

 

This ADVISORY AGREEMENT
(this “Agreement”) is entered into on this the ____ day of ___________, 2014; by and between UNITED DEVELOPMENT FUNDING
INCOME FUND V, a Maryland real estate investment trust (the “Trust”), UDF V OP, L.P., a Delaware limited partnership
(the “Partnership”), and American Realty Capital Residential Advisors, LLC,
a Delaware limited liability company (the “Advisor”).

 

WITNESSETH

 

WHEREAS, the
Trust intends to issue common shares of beneficial interest, par value $0.01, to the public, upon registration of such shares with
the Securities and Exchange Commission pursuant to the Securities Act (as defined in Article I hereof), and may subsequently issue
additional securities;

 

WHEREAS, the
Trust has been formed to originate, acquire, hold, manage, administer and operate a portfolio of loans secured by real estate and
interests in entities that own real estate, as well as direct investments in real estate and other real estate-related assets;

 

WHEREAS, the
Trust is the general partner of the Partnership and may conduct its business and make its investments in real estate and other
real estate-related assets through the Partnership;

 

WHEREAS, the
Trust intends to qualify as a real estate investment trust and to invest its funds in investments permitted by the terms of the
Trust’s Declaration of Trust and Sections 856 through 860 of the Internal Revenue Code of 1986, as amended;

 

WHEREAS, the
Trust desires to avail itself of the experience, sources of information, advice, assistance and certain facilities available to
the Advisor and to have the Advisor undertake the duties and responsibilities hereinafter set forth, on behalf of, and subject
to the supervision of, the Board of Trustees (the “Board”) of the Trust, all as provided herein; and

 

WHEREAS, the
Advisor is willing to undertake to render such services, subject to the supervision of the Board, on the terms and conditions hereinafter
set forth.

 

NOW, THEREFORE,
in consideration of the foregoing and of the mutual covenants and agreements contained herein, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE
I

 

DEFINITIONS

 

The following defined
terms used in this Agreement shall have the meanings specified below:

 

Acquisition Expenses. Any
and all expenses incurred by the Trust, the Partnership, the Advisor, or any Affiliate of either in connection with the selection,
acquisition or development of any Asset, whether or not acquired, including, without limitation, legal fees and expenses, travel
and communications expenses, costs of appraisals, nonrefundable option payments on property not acquired, accounting fees and expenses,
title insurance premiums and other closing costs.

 

    	 

    	 

    

 

Acquisition and Origination Fees.
Any and all fees and commissions, exclusive of Acquisition Expenses, paid by any Person to any other duly qualified and licensed
Person (including any fees or commissions paid by or to any duly qualified and licensed Affiliate of the Trust or the Advisor)
in connection with origination, making or investing in Secured Loans or the purchase, development or construction of an Asset,
including, without limitation, real estate commissions, selection fees, non-recurring management fees, loan fees, points or any
other fees of a similar nature.

 

Advisor. American Realty
Capital Residential Advisors, LLC, a Delaware limited partnership, any successor advisor to the Trust or the Partnership, or any
Person to which American Realty Capital Residential Advisors, LLC or any successor advisor subcontracts all or substantially all
of its functions.

 

Advisory Fees. The fees payable to the Advisor for day-to-day professional management services
in connection with the Trust and its investment in Assets as set forth in Section 3.01(b) of this Agreement.

 

Affiliate or Affiliated.
As to any Person, (i) any Person directly or indirectly owning, controlling, or holding, with the power to vote, 10% or more of
the outstanding voting securities of such Person; (ii) any Person 10% or more of whose outstanding voting securities are directly
or indirectly owned, controlled, or held, with power to vote, by such other Person; (iii) any Person, directly or indirectly, controlling,
controlled by, or under common control with such Person; (iv) any executive officer, director, trustee or general partner of such
Person; and (v) any legal entity for which such Person acts as an executive officer, director, trustee or general partner.

 

Appraised Value. Value according
to an appraisal made by an Independent Appraiser.

 

Assets. Properties, Secured
Loans and other direct or indirect investments in securities or equity interests in Real Property (other than investments in bank
accounts, money market funds or other current assets, whether of the proceeds from an Offering or the sale of an Asset or otherwise)
owned by the Trust, directly or indirectly through one or more of its Affiliates or Joint Ventures or through other investment
interests.

 

Average Invested Assets.
For a specified period, the average of the aggregate book value of the Assets, before
deducting depreciation, bad debts or other similar non-cash reserves, computed by taking the average of such values at the end
of each month during such period; provided, however, that during such periods in which the Board is determining on a regular basis
the current value of the Trust’s net assets for purposes of enabling fiduciaries of employee benefit plan shareholders to
comply with applicable Department of Labor reporting requirements, “Average Invested Assets” will equal the greater
of (i) the amount determined pursuant to the foregoing or (ii) the most recent Assets’ aggregate valuation established by
the Board without reduction for depreciation, bad debts or other non-cash reserves and without reduction for any debt secured by
or relating to the Assets.

 

Board. The Board of Trustees
of the Trust.

 

Bylaws. The bylaws of the
Trust, as the same are in effect as amended from time to time.

 

Change of Control. Any (i)
event (including, without limitation, issue, transfer or other disposition of Shares of beneficial interest of the Trust or equity
interests in the Partnership, merger, share exchange or consolidation) after which any “person”
(as that term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) is or becomes the “beneficial
owner” (as defined in Rule 13d-3 of the Securities Exchange Act of 1934, as amended), directly or indirectly, of securities
of the Trust or the Partnership representing greater than 50% of the combined voting power of the Trust’s or the Partnership’s
then outstanding securities, respectively; provided, that, a Change of Control shall not be deemed to occur as a result of any
widely distributed public offering of the Shares or (ii) direct or indirect sale, transfer, conveyance or other disposition (other
than pursuant to clause (i)) in one or a series of related transactions, of all or substantially all of the assets of the Company
or the Partnership, taken as a whole, to any “person” (as that term is used in Sections 13(d) and 14(d) of the Securities
Exchange Act of 1934, as amended).

 

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Code. Internal Revenue Code
of 1986, as amended from time to time, or any successor statute thereto. Reference to any provision of the Code shall mean such
provision as in effect from time to time, as the same may be amended, and any successor provision thereto, as interpreted by any
applicable regulations as in effect from time to time.

 

Contract Purchase Price.
The amount actually paid or allocated in respect of the purchase, development, construction or improvement of a Property or the
amount of funds advanced or paid with respect to a Secured Loan, or the amount actually paid or allocated in respect of the purchase
of other Assets, in each case exclusive of Acquisition and Origination Fees and Acquisition Expenses.

 

Contract Sales Price. The
total consideration provided for in the sales contract for the Sale of a Property.

 

Co-Sponsors. UDF Holdings,
L.P. and AR Capital, LLC

 

Debt Financing Fee. The fees
payable to the Advisor pursuant to Section 3.01(c) of this Agreement.

 

Declaration of Trust. The
Declaration of Trust of the Trust filed with the Maryland State Department of Assessments and Taxation in accordance with the Maryland
REIT Law, as amended from time to time.

 

Disposition Fees. The fees
payable to the Advisor for services provided in connection with the Sale of one or more Assets pursuant to Section 3.01(f) of this
Agreement.

 

Distributions. Any dividends
or other distributions of money or other property by the Trust to owners of Shares, including distributions that may constitute
a return of capital for federal income tax purposes.

 

Fiscal Year. Any period for
which any income tax return is submitted by the Trust to the Internal Revenue Service and which is treated by the Internal Revenue
Service as a reporting period, and during which the Advisor performs services for the Trust.

 

Gross Proceeds. The aggregate
purchase price of all Shares sold for the account of the Trust through an Offering, without deduction for Selling Commissions,
dealer manager fees, wholesaling fees, marketing support fees, marketing reallowances, due diligence expense reimbursement, volume
discounts, or Organization and Offering Expenses. For the purpose of computing Gross Proceeds, the purchase price of any Share
for which reduced Selling Commissions are paid to a Soliciting Dealer (where net proceeds to the Trust are not reduced) shall be
deemed to be the full amount of the Offering price per Share pursuant to the Prospectus for such Offering without reduction.

 

Independent Appraiser. A
Person with no material current or prior business or personal relationship with the Advisor or the Trustees and who is engaged
to a substantial extent in the business of rendering opinions regarding the value of Real Property and/or other Assets of the type
held by the Trust. Membership in a nationally recognized appraisal society such as the American Institute of Real Estate Appraisers
or the Society of Real Estate Appraisers shall be conclusive evidence of being engaged to a substantial extent in the business
of rendering opinions regarding the value of Real Property.

 

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Independent Trustee. A
Trustee who is not, on the date of determination and within the last two years from the date of determination has not been, directly
or indirectly, associated with either of the Co-Sponsors or the Advisor by virtue of (i) ownership of an interest in either Co-Sponsor,
the Advisor or any of their Affiliates, (ii) employment by either Co-Sponsor, the Advisor or any of their Affiliates, (iii) service
as an officer or director of either Co-Sponsor, the Advisor or any of their Affiliates, (iv) performance of services, other than
as a Trustee, for the Trust, (v) service as a director or trustee of more than three real estate investment trusts organized by
either Co-Sponsor or advised by the Advisor, or (vi) maintenance of a material business or professional relationship with
either Co-Sponsor, the Advisor or any of their Affiliates. A business or professional relationship is considered “material”
per se if the aggregate gross revenue derived by the Trustee from either Co-Sponsor, the Advisor and their Affiliates exceeds
5% of either the Trustee’s annual gross revenue during either of the last two years or the Trustee’s net worth on a
fair market value basis. An indirect association with either Co-Sponsor or the Advisor shall include circumstances in which a Trustee’s
spouse, parent, child, sibling, mother- or father-in-law, son- or daughter-in-law, or brother- or sister-in-law is or has been
associated with either Co-Sponsor, the Advisor, any of their Affiliates or the Trust. 

 

Intellectual Property Rights.
All rights, titles and interests, whether foreign or domestic, in and to any and all trade secrets, confidential information rights,
patents, invention rights, copyrights, service marks, trademarks, know-how, or similar intellectual property rights and all applications
and rights to apply for such rights, as well as any and all moral rights, rights of privacy, publicity and similar rights and license
rights of any type under the laws or regulations of any governmental, regulatory, or judicial authority, foreign or domestic and
all renewals and extensions thereof.

 

Invested Capital. The amount
calculated by multiplying the total number of Shares purchased by Shareholders by the issue price at the time of such purchase,
reduced by the portion of any Distribution that is attributable to Net Sales Proceeds and by any amounts paid by the Trust to repurchase
Shares pursuant to the Trust’s plan for repurchase of Shares.

 

Joint Ventures. The joint
venture or partnership arrangements in which the Trust or the Partnership is a co-venturer or general partner which are established
to acquire or hold Assets.

 

Listing or Listed.
The approval of the Trust’s application to list the Shares by a national securities exchange and the commencement of trading
in the Shares on the respective national securities exchange.

 

Market Value. Upon Listing,
the market value of the outstanding Shares, measured by taking the average closing price for a single Share, over a period of 30 consecutive
trading days, with such period beginning 180 days after Listing, and multiplying that number by the number of Shares outstanding
on the date of measurement.

 

NASAA Guidelines. The Statement
of Policy Regarding Real Estate Investment Trusts published by the North American Securities Administrators Association, Inc. on
May 7, 2007, and in effect on the date hereof.

 

Net Income. For any period,
the Trust’s total revenues applicable to such period, less the total expenses applicable to such period other than additions
to reserves for depreciation, bad debts, impairment costs or other similar non-cash reserves and excluding any gain from the sale
of the Assets. If the Advisor is paid a Subordinated Incentive Fee or a Subordinated Incentive Listing Fee, “Net Income,”
for purposes of calculating Total Operating Expenses shall exclude the gain from the Sale of any Assets.

 

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Net Sales Proceeds. In the
case of a transaction described in clause (i)(A) of the definition of Sale, the proceeds of any such transaction less the amount
of selling expenses incurred by or on behalf of the Trust, including all real estate commissions, closing costs and legal fees
and expenses. In the case of a transaction described in clause (i)(B) of such definition, Net Sales Proceeds means the proceeds
of any such transaction less the amount of selling expenses incurred by or on behalf of the Trust, including any legal fees and
expenses and other selling expenses incurred in connection with such transaction. In the case of a transaction described in clause
(i)(C) of such definition, Net Sales Proceeds means the proceeds of any such transaction actually distributed to the Trust or the
Operating Partnership from the Joint Venture less the amount of any selling expenses, including legal fees and expenses incurred
by or on behalf of the Trust (other than those paid by the Joint Venture). In the case of a transaction or series of transactions
described in clause (i)(D) of the definition of Sale, Net Sales Proceeds means the proceeds of any such transaction (including
the aggregate of all payments under a Secured Loan on or in satisfaction thereof other than regularly scheduled interest payments)
less the amount of selling expenses incurred by or on behalf of the Trust, including all commissions, closing costs and legal fees
and expenses. In the case of a transaction described in clause (i)(E) of such definition, Net Sales Proceeds means the proceeds
of any such transaction less the amount of selling expenses incurred by or on behalf of the Trust, including any legal fees and
expenses and other selling expenses incurred in connection with such transaction. In the case of a transaction described in clause
(ii) of the definition of Sale, Net Sales Proceeds means the proceeds of such transaction or series of transactions less all amounts
generated thereby which are reinvested in one or more Assets within 180 days thereafter and less the amount of any real estate
commissions, closing costs, and legal fees and expenses and other selling expenses incurred by or allocated to the Trust or the
Operating Partnership in connection with such transaction or series of transactions. Net Sales Proceeds shall also include any
amounts that the Trust determines, in its discretion, to be economically equivalent to proceeds of a Sale. Net Sales Proceeds shall
not include any reserves established by the Trust in its sole discretion.

 

Offering. Any public offering
and sale of Shares pursuant to an effective registration statement filed under the Securities Act, other than public offerings
of shares on behalf of selling shareholders or offerings related to a distribution reinvestment plan, employee benefit plan or
the redemption of interests in the Partnership.

 

Organization and Offering Expenses.
Any and all costs and expenses incurred by and to be paid from the assets of the Trust in connection with the formation of the
Trust and the qualification and registration of an Offering, and the marketing and distribution of Shares, including, without limitation,
total underwriting and brokerage discounts and commissions (including fees of the underwriters’ attorneys); expenses for
printing, engraving and amending registration statements or supplementing prospectuses; mailing and distribution costs; salaries
of employees while engaged in sales activity; telephone and other telecommunications costs; all advertising and marketing expenses
(including the costs related to investor and broker-dealer sales meetings); charges of transfer agents, registrars, trustees, escrow
holders, depositaries and experts; and fees, expenses and taxes related to the filing, registration and qualification of the sale
of the Shares under federal and state laws; and accountants’ and attorneys’ fees.

 

Partnership. UDF V OP, L.P.,
a Delaware limited partnership, through which the Trust may own Assets.

 

Person. An individual, corporation,
business trust, estate, trust, partnership, limited liability company or other legal entity.

 

Property or Properties.
As the context requires, any, or all, respectively, of the Real Property acquired by the Trust or the Partnership, either directly
or indirectly (whether through joint venture arrangements or other partnership or investment interests).

 

Proprietary Property. All
modeling algorithms, tools, computer programs, know-how, methodologies, processes, technologies, ideas, concepts, skills, routines,
subroutines, operating instructions and other materials and aides created by the Advisor in performing the duties set forth and
all modifications, enhancements and derivative works of the foregoing.

 

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Prospectus.
Prospectus has the meaning set forth in Section 2(10) of the Securities Act, including a preliminary prospectus, an offering circular
as described in Rule 253 of the General Rules and Regulations under the Securities Act or, in the case of an intrastate offering,
any document by whatever name known, utilized for the purpose of offering and selling securities of the Trust to the public.

 

Real Property. Land, rights
in land (including leasehold interests), land under development, developed lots, and any buildings, structures, improvements, furnishings,
fixtures and equipment located on or used in connection with land and rights or interests in land.

 

REIT. A corporation, trust,
association or other legal entity (other than a real estate syndication) that is engaged primarily in investing in equity interests
in real estate (including fee ownership and leasehold interests) or in loans secured by real estate or both in accordance with
Sections 856 through 860 of the Code.

 

Sale or Sales. (i)
Any transaction or series of transactions whereby: (A) the Trust or the Partnership directly or indirectly (except as described
in other subsections of this definition) sells, grants, transfers, conveys, or relinquishes its ownership of any Property or portion
thereof, including the lease of any Property consisting of a building only, and including any event with respect to any Property
which gives rise to a significant amount of insurance proceeds or condemnation awards; (B) the Trust or the Partnership directly
or indirectly (except as described in other subsections of this definition) sells, grants, transfers, conveys, or relinquishes
its ownership of all or substantially all of the interest of the Trust or the Partnership in any Joint Venture in which it is a
co-venturer or partner; (C) any Joint Venture directly or indirectly (except as described in other subsections of this definition)
in which the Trust or the Partnership as a co-venturer or partner sells, grants, transfers, conveys, or relinquishes its ownership
of any Property or portion thereof, including any event with respect to any Property which gives rise to insurance claims or condemnation
awards; (D) the Trust or the Partnership directly or indirectly (except as described in other subsections of this definition) sells,
grants, conveys or relinquishes its interest in any Secured Loan or portion thereof (including with respect to any Secured Loan,
all repayments thereunder or in satisfaction thereof other than regularly scheduled interest payments) and any event with respect
to a Secured Loan which gives rise to a significant amount of insurance proceeds or similar awards; or (E) the Trust or the Partnership
directly or indirectly (except as described in other subsections of this definition) sells, grants, transfers, conveys, or relinquishes
its ownership of any other Asset not previously described in this definition or any portion thereof. (ii) Notwithstanding the foregoing,
“Sale” or “Sales” shall not include any transaction or series of transactions specified in clause (i)(A)
through (E) above in which the proceeds of such transaction or series of transactions are reinvested in one or more Assets within
180 days thereafter.

 

Secured Loans. In connection
with financing provided, invested in, participated in or purchased by the Trust, all of the notes, deeds of trust, security interests
or other evidences of indebtedness or obligations, which are secured or collateralized by Real Property owned by the borrowers
under such notes, deeds of trust, security interests or other evidences of indebtedness or obligations or pledges of equity interests
in entities owning Real Property.

 

Securities Act. The Securities
Act of 1933, as amended from time to time, or any successor statute thereto. Reference to any provision of the Securities Act shall
mean such provision as in effect from time to time, as the same may be amended, and any successor provision thereto, as interpreted
by any applicable regulations as in effect from time to time.

 

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Securitized Loan Pool Placement Fees.
The fees payable to the Advisor pursuant to Section 3.01(e) of this Agreement.

 

Selling Commissions. Any
and all commissions payable to underwriters or other broker-dealers in connection with the sale of the Shares, including, without
limitation, commissions payable to the Soliciting Dealers.

 

Shareholders. The record
holders of the Shares as maintained in the books and records of the Trust or its transfer agent.

 

Shareholders’ 7.35% Return.
As of any date, an aggregate amount equal to a 7.35% cumulative, non-compounded, annual return on Invested Capital.

 

Shares. Any Shares of the
Trust’s common shares of beneficial interest, par value $0.01 per share.

 

Soliciting Dealers. Broker-dealers
who are members of the Financial Industry Regulatory Authority, or that are exempt from broker-dealer registration, and who, in
either case, have executed participating broker or other agreements to sell Shares.

 

Sub-Advisory Agreement. The
agreement described in Section 6.03 of this Agreement.

 

Subordinated Incentive Fee.
The fee payable to the Advisor under certain circumstances if certain performance standards have been met pursuant to Section 3.01(d)
of this Agreement.

 

Subordinated Incentive Listing Fee.
The fee payable to the Advisor under certain circumstances if the Shares are Listed pursuant to Section 3.01(g).

 

Termination Date. The date
of termination of this Agreement.

 

Total Operating Expenses.
All costs and expenses paid or incurred by the Trust, as determined under generally accepted accounting principles, which are in
any way related to the operation of the Trust or to Trust business, including Advisory Fees, but excluding (i) the expenses of
raising capital such as Organization and Offering Expenses, bona fide due diligence expenses, legal, audit, accounting, underwriting,
brokerage, listing, registration, and other fees, printing and other such expenses and tax incurred in connection with the issuance,
distribution, transfer, registration and Listing of the Shares, (ii) interest payments, (iii) taxes, (iv) non-cash expenditures
such as depreciation, amortization and bad debt reserves and impairment costs, (v) the Subordinated Incentive Fee, (vi) the Subordinated
Incentive Listing Fee, (vii) Acquisition and Origination Fees and Acquisition Expenses, (viii) Debt Financing Fees, (ix) real
estate commissions on the Sale of Assets (including Disposition Fees and Securitized Loan Pool Placement Fees), and (x) other fees
and expenses connected with the acquisition, disposition, management and ownership of real estate interests, mortgage loans or
other property (including the costs of foreclosure, insurance premiums, legal services, maintenance, repair and improvement of
property).

 

Trust. United Development
Funding Income Fund V, a real estate investment trust organized under the laws of the State of Maryland.

 

Trustee. A member of the
Board.

 

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ARTICLE
II

 

THE
ADVISOR

 

2.01        Appointment.
The Trust and the Partnership hereby appoint the Advisor to serve as the advisor on the terms and conditions set forth in this
Agreement, and the Advisor hereby accepts such appointment. The Advisor shall be deemed to be in a fiduciary relationship to the
Trust and its Shareholders.

 

2.02        Duties
of the Advisor. Subject to Section 2.07, the Advisor undertakes to use its commercially reasonable best efforts to (1)
present to the Trust and the Partnership potential investment opportunities consistent with the investment objectives and policies
of the Trust as determined and adopted from time to time by the Board and (2) manage, administer, promote, maintain and improve
the Assets on an overall portfolio basis in a diligent manner. The services of the Advisor are to be of scope and quality not less
than those generally performed by professional asset managers of other similar asset portfolios. The Advisor shall make available
the full benefit of the judgment, experience and advice of the members of the Advisor’s organization and staff with respect
to the duties it will perform under this Agreement. In performance of this undertaking, subject to the supervision of the Board
and consistent with the provisions of the Trust’s most recent Prospectus for Shares, Declaration of Trust and Bylaws, the
Advisor shall, either directly or by engaging a duly qualified and licensed Affiliate of the Advisor or other duly qualified and
licensed Person:

 

(a)        manage the formation
of the Trust and the Partnership, including the preparation and filing of all necessary documentation and ancillary agreements;

 

(b)        structure, qualify
and register the Offering;

 

(c)        coordinate marketing
and distribution of the Trust’s Shares in connection with the Offering;

 

(d)        structure, qualify,
register and oversee the distribution of Shares pursuant to the Trust’s distribution reinvestment plan;

 

(e)        structure, qualify
and administer the repurchase of Shares pursuant to the Trust’s redemption program;

 

(f)         serve as the
Trust’s and the Partnership’s investment and financial advisor and provide research and economic and statistical data
in connection with the Assets and the Trust’s investment policies;

 

(g)        perform due
diligence on prospective investments and create due diligence reports summarizing the results of such work;

 

(h)        provide the
daily management of the Trust and the Partnership and perform and supervise the various administrative functions reasonably necessary
for the management and operations of the Trust and the Partnership;

 

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(i)         maintain and
preserve the books and records of the Trust and the Partnership, including (1) share books and records reflecting a record of the
Shareholders and their ownership of the Trust’s Shares, (2) acting as transfer agent for the Trust’s Shares or selecting,
engaging and overseeing the performance by a third party transfer agent, and (3) maintaining the accounting and other record-keeping
functions at the Asset and Trust levels in accordance with generally accepted accounting principles, which shall be supported by
sufficient documentation to ascertain that such records are properly and accurately recorded. Such books and records shall be the
property of the Trust and shall be available for inspection by the Board and by counsel, auditors and other authorized agents of
the Trust at any time or from time to time during normal business hours. Such books and records shall include all information necessary
to calculate and audit the fees or reimbursements paid under this Agreement. The Advisor shall utilize procedures to attempt to
ensure such control over accounting and financial transactions as is reasonably required to protect the Trust’s assets from
theft, error or fraudulent activity. All financial statements that the Advisor delivers to the Trust shall be prepared on an accrual
basis in accordance with generally accepted accounting principles, except for special financial reports that by their nature require
a deviation from generally accepted accounting principles. The Advisor shall liaise with the Trust’s officers and independent
auditors and shall provide such officers and auditors with the reports and other information that the Trust so requests;

 

(j)         investigate,
select, and, on behalf of the Trust and the Partnership, engage and conduct business with such Persons as the Advisor deems necessary
to the proper performance of its obligations hereunder, including but not limited to consultants, accountants, correspondents,
lenders, technical advisors, attorneys, brokers, underwriters, corporate fiduciaries, escrow agents, depositaries, custodians,
agents for collection, insurers, insurance agents, banks, builders, developers, property owners, mortgagors, asset managers, property
management companies, transfer agents and any and all agents for any of the foregoing, including Affiliates of the Advisor, and
Persons acting in any other capacity deemed by the Advisor necessary or desirable for the performance of any of the foregoing services,
including but not limited to entering into contracts in the name of the Trust or the Partnership with any of the foregoing;

 

(k)        consult with
the officers and the Board and assist the Board in the formulation and implementation of the Trust’s financial policies and,
as necessary, furnish the Board with advice and recommendations with respect to the making of investments consistent with the investment
objectives and policies of the Trust and in connection with any borrowings proposed to be undertaken by the Trust;

 

(l)         subject to the
provisions of Sections 2.02(i) and 2.03 hereof, (i) locate, analyze and select potential investments in Assets; (ii) structure
and negotiate the terms and conditions of transactions pursuant to which investments in Assets will be made; (iii) make investments
in Assets on behalf of the Trust or the Partnership in compliance with the investment objectives and policies of the Trust where
the amount of such investment does not exceed 10% of the Trust’s or the Partnership’s total assets or has otherwise
been approved by the Board; (iv) arrange for financing and refinancing and make other changes in the asset or capital structure
of, and dispose of, reinvest the proceeds from the sale of, or otherwise deal with the investments in, Assets; and (v) enter into
leases of Property and service contracts for Assets and, to the extent necessary, perform all other operational functions for the
maintenance and administration of such Assets, including the servicing of Secured Loans;

 

(m)       provide the
Board with periodic reports regarding prospective investments in Assets;

 

(n)        if a transaction
requires approval by the Board, deliver to the Board all documents required by them to properly evaluate the proposed transaction;

 

(o)        obtain the prior
approval of a majority of the Independent Trustees and a majority of the Board not otherwise interested in any transaction with
the Advisor or its Affiliates;

 

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(p)        negotiate on
behalf of the Trust or the Partnership with banks or lenders for loans to be made to the Trust or the Partnership, negotiate on
behalf of the Trust or the Partnership with investment banking firms and broker-dealers, and negotiate private sales of Shares
and other securities of the Trust or the Partnership or obtain loans for the Trust or the Partnership, as and when appropriate,
but in no event in such a way so that the Advisor shall be acting as broker-dealer or underwriter; and provided further that any
fees and costs payable to third parties incurred by the Advisor in connection with the foregoing shall be the responsibility of
the Trust or the Partnership;

 

(q)        review and analyze
on-going financial information pertaining to each Asset and the overall portfolio of Assets;

 

(r)         monitor applicable
markets and obtain reports (which may be prepared by or for the Advisor or its Affiliates), where appropriate, concerning the value
of investments or contemplated investments of the Trust in Assets;

 

(s)        from time to
time, or at any time reasonably requested by the Board, make reports to the Board of its performance of services to the Trust under
this Agreement;

 

(t)         from time to
time, or at any time reasonably requested by the Board, make reports to the Board of the investment opportunities it has presented
to other Advisor-sponsored programs or that it has pursued directly or through an Affiliate;

 

(u)        provide the
Trust or the Partnership with, or assist the Trust or the Partnership in arranging for, all necessary cash management services;

 

(v)        deliver to or
maintain on behalf of the Trust or the Partnership copies of all appraisals obtained in connection with the investments in Assets;

 

(w)       consult with
the Trust’s officers and the Board and assist the Board in evaluating various liquidity events when appropriate;

 

(x)         provide the
Trust’s officers and the Board with timely updates related to the overall regulatory environment affecting the Trust, as
well as managing compliance with such matters, including compliance with the Sarbanes-Oxley Act of 2002;

 

(y)        consult with
the Trust’s officers and the Board relating to the corporate governance structure and appropriate policies and procedures
related thereto;

 

(z)         perform all
reporting, record keeping, internal controls and similar matters in a manner to allow the Trust to comply with applicable law,
including federal and state securities laws and the Sarbanes-Oxley Act of 2002;

 

(aa)       upon request
of the Trust or the Partnership, act, or obtain the services of others to act, as attorney-in-fact or agent of the Trust or the
Partnership in making, acquiring and disposing of Assets, disbursing, and collecting the funds, paying the debts and fulfilling
the obligations of the Trust or the Partnership and handling, prosecuting and settling any claims of the Trust or the Partnership,
including foreclosing and otherwise enforcing mortgage and other liens and security interests comprising any of the Assets;

 

(bb)      at the direction
of Trust management, prepare the Trust’s periodic reports and other filings made under the Securities Exchange Act of 1934,
as amended, and the Trust’s Post-Effective Amendments to the Registration Statement as well as all related prospectuses,
prospectus supplements and supplemental sales literature and assist in connection with the filing of such documents with the appropriate
regulatory authorities;

 

    	-10-

    	 

    

 

(cc)      supervise the
preparation and filing and distribution of returns and reports to governmental agencies and to Shareholders and other investors
and act on behalf of the Trust in connection with investor relations;

 

(dd)      provide office
space, equipment and personnel as required for the performance of the foregoing services as Advisor;

 

(ee)      assist the
Trust in preparing all reports and returns required by the Securities and Exchange Commission, Internal Revenue Service and other
state or federal governmental agencies; and

 

(ff)       do all things
necessary to assure its ability to render the services described in this Agreement.

 

2.03        Authority
of Advisor. Pursuant to the terms of this Agreement (including the duties set forth in Section 2.02, and the restrictions
included in this Section 2.03 and in Section 2.06), and subject to the continuing and exclusive authority of the Board over the
management of the Trust, the Board hereby delegates to the Advisor the authority to (i) locate, analyze and select investment opportunities,
(ii) structure the terms and conditions of transactions pursuant to which investments will be made or acquired for the Trust
or the Partnership, (iii) cause the Trust to make and acquire Secured Loans, acquire Properties and invest in other Assets in compliance
with the investment objectives and policies of the Trust where the amount of such investment does not exceeds 10% of the Trust’s
or the Partnership’s total assets or has otherwise been approved by the Board, (iv) arrange for financing or refinancing
of Assets, (v) cause the Trust to enter into leases for the Properties and service contracts for the Assets with duly qualified
and licensed non-affiliated and Affiliated Persons, including oversight of non-affiliated and Affiliated Persons that perform management,
acquisition, advisory, disposition or other services for the Trust, and (vi) arrange for, or provide, accounting and other record-keeping
functions at the Asset level.

 

The Board may, at any
time upon the giving of notice to the Advisor, modify or revoke the authority set forth in this Section 2.03, provided however,
that such modification or revocation shall be effective upon receipt by the Advisor or such later date as is specified by the Board
and included in the notice provided to the Trust and such modification or revocation shall not be applicable to investment transactions
to which the Advisor has committed the Trust prior to the date of receipt by the Advisor of such notification, or, if later, the
effective date of such modification or revocation specified by the Board.

 

2.04        Bank Accounts.
The Advisor may establish and maintain one or more bank accounts in its own name for the account of the Trust or the Partnership
or in the name of the Trust or the Partnership and may collect and deposit into any such account or accounts, and disburse from
any such account or accounts, any money on behalf of the Trust or the Partnership, under such terms and conditions as the Board
may approve, provided that no funds of the Trust or the Partnership shall be commingled nor shall any such funds be commingled
with the funds of the Advisor; and the Advisor shall from time to time, upon request by the Board, its Audit Committee or the auditors
of the Trust or the Partnership, render appropriate accountings of such collections and payments to the Board, its Audit Committee
and the auditors of the Trust or the Partnership.

 

2.05        Records;
Access. The Advisor shall maintain appropriate records of all its activities hereunder and make such records available
for inspection by the Board and by counsel, auditors and authorized agents of the Trust, at any time or from time to time during
normal business hours. The Advisor shall at all reasonable times have access to the books and records of the Trust and the Partnership.

 

    	-11-

    	 

    

 

2.06        Limitations
on Activities. Anything else in this Agreement to the contrary notwithstanding, the Advisor shall refrain from taking any
action which, in its sole judgment made in good faith, would (a) adversely affect the status of the Trust as a REIT, (b) subject
the Trust to regulation under the Investment Company Act of 1940, as amended, (c) violate any law, rule, regulation or statement
of policy of any governmental body or agency having jurisdiction over the Trust or the Partnership, the Shares or its other securities,
or (d) not be permitted by the Declaration of Trust or Bylaws, except if such action shall be ordered by the Board, in which
case the Advisor shall notify promptly the Board of the Advisor’s judgment of the potential impact of such action and shall
refrain from taking such action until it receives further clarification or instructions from the Board. In such event, the Advisor
shall have no liability to the Trust or the Partnership or to the Board or Shareholders for acting in accordance with the specific
instructions of the Board so given. Notwithstanding the foregoing, the Advisor, its directors, officers, general partners, trustees,
employees, limited partners and stockholders, and the directors, officers, general partners, trustees, employees, limited partners
and stockholders of the Advisor’s Affiliates shall not be liable to the Trust or the Partnership or to the Board or Shareholders
for any act or omission by the Advisor, its directors, officers, general partners, trustees, employees, limited partners, or stockholders,
or for any act or omission of any Affiliate of the Advisor, its directors, officers, general partners, trustees, employees, limited
partners, or stockholders, except as provided in Section 5.02 of this Agreement.

 

2.07        Other
Activities of the Advisor. Nothing herein contained shall prevent the Advisor or its Affiliates from engaging in other
activities, including, without limitation, the rendering of advice to other Persons (including other REITs) and the management
of other programs advised, sponsored or organized by the Advisor or its Affiliates; nor shall this Agreement limit or restrict
the right of any director, officer, general partner, trustee, employee, limited partner, or stockholder of the Advisor or its Affiliates
to engage in any other business or to render services of any kind to any other Person. The Advisor may, with respect to any investment
in which the Trust is a participant, also render advice and service to each and every other participant therein. The Advisor shall
report to the Board the existence of any condition or circumstance, existing or anticipated, of which it has knowledge, which creates
or could create a conflict of interest between the Advisor’s obligations to the Trust and its obligations to or its interest
in any other Person. The Advisor or its Affiliates shall promptly disclose to the Board knowledge of such condition or circumstance.
The Advisor shall inform the Board at least quarterly of the investment opportunities that have been offered to other programs
with similar investment objectives sponsored by either Co-Sponsor, the Advisor, any Trustee or their Affiliates. If
either Co-Sponsor, the Advisor, any Trustee or Affiliates thereof have sponsored other investment programs with similar investment
objectives which have investment funds available at the same time as the Trust, it shall be the duty of the Board (including the
Independent Trustees) to adopt the method set forth in the Trust’s most recent Prospectus for its Shares or another reasonable
method by which investments are to be allocated to the competing investment entities and to use their best efforts to apply such
method fairly to the Trust.

 

2.08        Payment
of Certain Organization and Offering Expenses. The Trust shall pay directly all Organization and Offering Expenses considered
underwriting compensation by the Financial Industry Regulatory Authority.

 

    	-12-

    	 

    

 

ARTICLE
III

 

COMPENSATION
AND REIMBURSEMENT OF SPECIFIED COSTS

 

3.01        Fees.

 

(a)        Acquisition
and Origination Fees and Acquisition Expenses. The Trust shall pay to the Advisor or an Affiliate of the Advisor, Acquisition
and Origination Fees, and will reimburse the Advisor for Acquisition Expenses, in an aggregate amount of 3% of the net amount available
for investment in Assets (after payment of Selling Commissions, dealer manager fees, wholesaling fees, marketing support fees,
marketing reallowances and Organization and Offering Expenses). The Advisor shall reallow 70% of Acquisition and Origination Fees
and 100% of the Acquisition Expenses to the sub-advisor pursuant to the Sub-Advisory Agreement. In addition, the Trust shall
pay to the Advisor or an Affiliate of the Advisor Acquisition and Origination Fees, and will reimburse the Advisor for Acquisition
Expenses, upon the reinvestment of proceeds from capital transactions, such as the repayment of principal by a borrower, up to
3% of the funds advanced under a new loan or the Contract Purchase Price of the new Property or equity investment.  The Advisor
shall reallow 100% of Acquisition and Origination Fees and Acquisition Expenses paid upon the reinvestment of proceeds from capital
transactions to the sub-advisor pursuant to the Sub-Advisory Agreement.  Acquisition and Origination Fees shall be due
and payable to the Advisor or an Affiliate of the Advisor, and Acquisition Expenses shall be reimbursed to the Advisor, on or before
the twenty-fifth (25th) calendar day of the month following the month in which the funds were invested in Assets in
a transaction that gives rise to the obligation to pay Acquisition and Origination Fees and/or reimburse Acquisition Expenses.
The Acquisition and Origination Fees and Acquisition Expenses that will be paid or reimbursed by the Trust will be reduced by the
amount of any Acquisition and Origination Fees or Acquisition Expenses paid or reimbursed by any Person to the Advisor or an Affiliate
of the Advisor with respect to any Asset.  The total of all Acquisition and Origination Fees, including Debt Financing Fees,
from any source, and any Acquisition Expenses shall be limited in accordance with the Declaration of Trust, and the Acquisition
and Origination Fees paid in respect of secured loans shall not exceed 1% per annum when pro rated over the stated term of the
respective loan.

 

(b)        Advisory
Fees. The Trust shall pay the Advisor Advisory Fees in the amount of 1.5% per annum of the Average Invested Assets, payable
monthly in arrears on or before the twenty-fifth (25th) calendar day of the month, in an amount equal to one-twelfth
of 1.5% of the Average Invested Assets on the last day of the immediately preceding month.  The Advisor, in its sole
discretion, may waive, reduce or defer all or any portion of the Advisory Fees to which it would otherwise be entitled. The Advisor
shall reallow 70% of the Advisory Fees to the sub-advisor pursuant to the Sub-Advisory Agreement. 

 

(c)        Debt Financing
Fee. In the event of the origination of any line of credit or other debt financing obtained by the Trust, including the assumption
(directly or indirectly) of existing debt, that is used to acquire properties, to make other permitted investments or is assumed
(directly or indirectly) in connection with the acquisition of properties, and if the Advisor or an Affiliate of the Advisor provides
a substantial amount of services, as determined by the Independent Trustees in connection therewith, the Trust will pay to the
Advisor or an Affiliate of the Advisor a Debt Financing Fee equal to 1% of the amount available to the Trust under such line of
credit or other debt financing; provided however, that the Advisor may reallow all or a portion of the Debt Financing Fee to the
sub-advisor pursuant to the Sub-Advisory Agreement or other parties effecting the debt placement. Debt Financing Fees, if applicable,
are due and payable upon the origination of a line or credit or other debt financing obtained by the Trust. On each anniversary
date of the origination of such line of credit or other debt financing, the Trust will pay to the sub-advisor pursuant to the Sub-Advisory
Agreement an additional fee of 0.25% of such amount available to the Trust under such line of credit or other debt financing if
such line of credit or other debt financing continues to be outstanding on such date, or a pro rated portion of such additional
fee for the portion of such year that the financing was outstanding.

 

    	-13-

    	 

    

 

(d)        Subordinated
Incentive Fee. The Trust shall pay to the Advisor a Subordinated Incentive Fee equal to 15% of the amount by which the Trust’s
Net Income for the immediately preceding year exceeds the sum of (i) 100% of Invested Capital and (ii) the Shareholders’
7.35% Return from inception through the end of the immediately preceding year.  The Subordinated Incentive Fee shall
be paid annually and upon termination of this Agreement in accordance with Section 4.02,
other than in connection with any internalization by the Partnership or the Trust of management functions from the Advisor,
unless such termination is by the Trust because of a material breach of this Agreement by the Advisor.  If the Subordinated
Incentive Fee is being paid in accordance with the termination of this Agreement, such fee will be payable with respect to the
period between the end of the immediately preceding year and the Termination Date only if a Subordinated Incentive Fee was payable
with respect to such immediately preceding year.  If the Subordinated Incentive Fee is payable with respect to such period
between the end of the immediately preceding year and the Termination Date, such fee will be based on (i) the Trust’s Net
Income between the end of the immediately preceding year and the Termination Date and (ii) the sum of (A) 100% of Invested Capital
and (B) the Shareholders’ 7.35% Return from inception through the Termination Date.  Notwithstanding the foregoing,
in the event the Subordinated Incentive Listing Fee is paid to the Advisor following Listing, no Subordinated Incentive Fee will
be paid to the Advisor for the period preceding the Listing, and any Subordinated Incentive Fee paid prior to the Listing will
reduce the amount of the Subordinated Incentive Listing Fee. The Advisor shall continue to be eligible to receive the Subordinated
Incentive Fee for each annual period following the Listing through the Termination Date. Subordinated Incentive Fees are due and
payable within ninety (90) calendar days after the end of the previous year. The Advisor shall reallow 70% of any Subordinated
Incentive Fee to the sub-advisor pursuant to the Sub-Advisory Agreement.  In the
sole discretion of the Advisor, the Subordinated Incentive Fee may be paid with cash, Shares, other sources of payment or any combination
of the foregoing; provided however, that to the extent that the Advisor requests that the Subordinated Incentive Fee be paid in
cash, such fee shall be payable in cash only to the extent that the Sub-Advisor determines that the Trust has sufficient cash on
hand. If any portion of the Subordinated Incentive Fee is paid in Shares by the Trust, then the price per Share shall equal the
fair market value for the Shares as determined by the Board based upon the Appraised Value of the Assets as of the date of such
election by the Trust.

 

(e)        Securitized
Loan Pool Placement Fees. Upon the securitization and placement of any Secured Loans (or any derivative thereof), the Trust
shall pay to the Advisor, the sub-advisor pursuant to the Sub-Advisory Agreement or an Affiliate of the Advisor or Affiliate of
the sub-advisor a Securitized Loan Pool Placement Fee equal to 1% of the par amount of the securities sold by the Trust in connection
with such securitization and placement, provided that the Advisor or an Affiliate of the Advisor has provided a substantial amount
of services in connection with such securitization and placement as determined by a majority of the Independent Trustees. Securitized
Loan Pool Placement Fees, if any, are due and payable upon the closing and funding of the securitization and placement of a Secured
Loan.

 

(f)         Disposition
Fees. If the Advisor or an Affiliate of the Advisor provides a substantial amount of services, as determined by a majority
of the Independent Trustees, in connection with the Sale of one or more Properties, the Trust shall pay the Advisor, the sub-advisor
pursuant to the Sub-Advisory Agreement or an Affiliate of the Advisor or Affiliate of the sub-advisor a Disposition Fee in an amount
equal to the lesser of one-half of the reasonable and customary real estate or brokerage commission or 2% of the Contract Sales
Price of the Property or Properties. The Trust, in its sole discretion, may pay the Disposition Fees with cash, Shares, or any
combination thereof.  If any portion of the Dispositions Fees is paid in Shares by the Trust in its sole discretion,
then the price per Share shall equal the fair market value for the Shares as determined by the Board based upon the Appraised Value
of the Assets as of the date of such election by the Trust. In no event will the amount of any Disposition Fees paid in connection
with a Sale exceed the limits set forth in the Declaration of Trust. For purposes of this Section 3.01(f), a “substantial
amount of services” in connection with the Sale of one or more Properties includes the preparation of an investment package
for the Properties (including a new investment analysis, rent rolls, tenant information regarding credit, a property title report,
an environmental report, a structural report and exhibits) or such other substantial services performed by the Advisor in connection
with a sale of the Properties.

 

    	-14-

    	 

    

 

(g)        Subordinated
Incentive Listing Fee. Upon Listing, the Advisor shall be entitled to be paid a Subordinated Incentive Listing Fee in an amount
equal to 15% of the amount by which (i) the Market Value of the Trust’s outstanding Shares plus Distributions paid by
the Trust from inception through the date of Listing, exceeds (ii) the sum of (A) 100% of Invested Capital and (B) the total
Distributions required to be paid to the Shareholders in order to pay the Shareholders’ 7.35% Return from inception through
the date that Market Value is determined. The Trust shall have the option to pay such fee in the form of cash, Shares (at a price
per Share equal to the average closing price of the Shares over the ten trading days immediately preceding the date of such election
by the Trust to pay such fee in the form of Shares), a non-interest bearing promissory note, or any combination thereof. If the
promissory note has not been paid in full within three years from the date of Listing, then the Advisor, or its successors or assigns,
may elect to convert the unpaid balance into Shares at a price per Share equal to the average closing price of the Shares over
the ten trading days immediately preceding the date of such election. If the Shares are no longer Listed at such time as the promissory
note becomes convertible into Shares as provided by this paragraph, then the price per Share, for purposes of conversion, shall
equal the fair market value for the Shares as determined by the Board based upon the Appraised Value of the Assets as of the date
of election. The Advisor shall reallow 70% of any Subordinated Incentive Listing Fee to the sub-advisor pursuant to the Sub-Advisory
Agreement.  

 

3.02        Expenses.

 

(a)         In addition
to the compensation paid to the Advisor pursuant to Section 3.01 hereof and except as noted in Section 2.08 above, the Trust shall
pay directly or reimburse the Advisor for all of the costs and expenses paid or incurred by the Advisor that are in any way related
to the operations of the Trust or the business of the Trust or the services the Advisor provides to the Trust pursuant to this
Agreement, including, but not limited to:

 

(i)          Organization
and Offering Expenses; provided, however, that within 60 days after the end of the month in which an Offering terminates, the Advisor
shall reimburse the Trust for the amount of Organization and Offering Expenses (other than Selling Commissions, bona fide due diligence
expense reimbursements, dealer manager fees, wholesaling fees, marketing support fees and marketing reallowances) to the extent
that such Organization and Offering Expenses incurred by the Trust that exceed 2% of the Gross Proceeds raised in the completed
Offering;

 

(ii)         the
actual cost of goods, services and materials used by the Trust and obtained from Persons not affiliated with the Advisor, other
than Acquisition Expenses, including brokerage fees paid in connection with the purchase and sale of Shares or other securities;

 

(iii)        interest
and other costs for borrowed money, including discounts, points and other similar fees;

 

(iv)        taxes
and assessments on income or property and taxes as an expense of doing business;

 

(v)         costs
associated with or required in connection with the business of the Trust or by the Board;

 

(vi)        expenses of
managing and operating Assets owned by the Trust, whether or not payable to an Affiliate of the Advisor;

 

(vii)       all
expenses in connection with payments to the Board for attendance at meetings of the Board and Stockholders;

 

(viii)      except
as otherwise limited by the Declaration of Trust, expenses associated with Listing or with the issuance and distribution of Shares
and other securities of the Trust, such as selling commissions and fees, advertising expenses, taxes, legal and accounting fees
and Listing and registration fees, but excluding Organization and Offering Expenses;

 

    	-15-

    	 

    

 

(ix)         expenses
connected with payments of Distributions in cash or otherwise made or caused to be made by the Trust to the Stockholders;

 

(x)          expenses
of organizing, reorganizing, liquidating or dissolving the Trust and the expenses of filing or amending the Declaration of Trust;

  

(xi)         expenses
of any third party transfer agent for the Shares and of maintaining communications with Stockholders or their financial advisors,
including the cost of preparation, printing and mailing annual reports and other Stockholder reports, proxy statements and other
reports required by governmental entities;

 

(xii)        transfer agent and registrar’s
fees and charges;

 

(xiii)       personnel
and related employment costs incurred by the Advisor or its Affiliates in performing the services described herein, including but
not limited to reasonable rent, IT costs, salaries and wages, benefits and overhead of all employees directly involved in the performance
of such services; provided, that no reimbursement shall be made for costs of such employees of the Advisor or its Affiliates to
the extent that such employees perform services for which the Advisor receives a separate fee; and

 

(xiv)      audit, accounting,
legal and other professional fees.

 

(b)         Expenses
incurred by the Advisor on behalf of the Trust and payable pursuant to this Section 3.02 shall be reimbursed no less than quarterly
to the Advisor within 60 days after the end of each quarter. The Advisor shall prepare a statement documenting the expenses of
the Trust during each quarter, and shall deliver the statement to the Trust within 45 days after the end of each quarter.

 

3.03        Other Services.
Should the Board request that the Advisor or any director, officer, general partner, trustee, or employee thereof render services
for the Trust other than set forth in Section 2.02, such services shall be separately compensated at such rates and in such amounts
as are agreed by the Advisor and the Board, subject to the limitations contained in the Declaration of Trust, and shall not be
deemed to be services pursuant to the terms of this Agreement.

 

3.04        Reimbursement
to the Advisor. The Trust shall not reimburse the Advisor, at the end of any fiscal quarter, for any Total Operating Expenses
to the extent that, in the four consecutive fiscal quarters then ended (the “Expense Year”) the Total Operating Expenses
exceed (the “Excess Amount”) the greater of (i) 2% of Average Invested Assets or (ii) 25% of Net Income (the “2%/25%
Guidelines”) for that Expense Year unless the Independent Trustees determine that such excess was justified, based on unusual
and nonrecurring factors which the Independent Trustees deem sufficient. If the Independent Trustees do not approve such excess
as being so justified, any Excess Amount paid to the Advisor during a fiscal quarter shall be repaid to the Trust. If the Independent
Trustees determine such excess was justified, then within 60 days after the end of any fiscal quarter of the Trust for which reimbursed
Total Operating Expenses for the Expense Year exceed the 2%/25% Guidelines, the Advisor, at the direction of the Independent Trustees,
shall cause such fact to be disclosed in the next quarterly report of the Trust or in a separate writing and sent to the shareholders,
together with an explanation of the factors the Independent Trustees considered in determining that such excess expenses were justified.
The Trust will ensure that such determination will be reflected in the minutes of the meetings of the Board. All figures used in
the foregoing computation shall be determined in accordance with generally accepted accounting principles applied on a consistent
basis. In addition, the Trust shall not reimburse the Advisor or its Affiliates for services for which the Advisor and/or its Affiliates
are entitled to compensation in the form of a separate fee.

 

    	-16-

    	 

    

 

3.05        Statements.
The Advisor shall furnish to the Trust not later than the thirtieth (30th) day following the end of each Fiscal Year, a statement
showing a computation of the fees or other compensation payable to the Advisor or an Affiliate of the Advisor with respect to such
Fiscal Year under Article III hereof. The final settlement of compensation payable under Article III hereof for each
Fiscal Year shall be subject to adjustments in accordance with, and upon completion of, the annual audit of the Trust’s financial
statements.

 

ARTICLE
IV

 

TERM
AND TERMINATION

 

4.01        Term; Renewal.
Subject to Section 4.02 hereof, this Agreement has a one-year term and shall continue in force until the first anniversary of the
date hereof. Thereafter, this Agreement may be renewed for an unlimited number of successive one-year terms upon mutual consent
of the parties. It is the Board’s duty to evaluate the performance of the Advisor annually before renewing the Agreement,
and each such renewal shall be for a term of no more than one year.

 

4.02        Termination.
This Agreement may be terminated at the option of either party (i) immediately upon a Change of Control or (ii) upon 60 days written
notice without cause or penalty (in either case, if termination is by the Trust, then such termination shall be upon the approval
of a majority of the Independent Trustees). Notwithstanding the foregoing, the provisions of this Agreement which provide for payment
to the Advisor of expenses, fees or other compensation following the Termination Date (i.e., Section 4.03) shall continue
in full force and effect until all amounts payable thereunder to the Advisor are paid in full. The provisions of Sections 4.03
through 5.02 shall survive the termination of this Agreement.

 

4.03        Payments
to and Duties of Advisor upon Termination.

 

(a)         After the Termination
Date, the Advisor shall not be entitled to compensation for further services hereunder, except it shall be entitled to and receive
from the Trust within 30 days after the effective date of such termination all unpaid reimbursements of expenses provided for herein,
subject to the provisions of Section 3.04 hereof, and all contingent liabilities related to fees payable to the Advisor prior to
termination of this Agreement, provided that the Subordinated Incentive Fee, if any, shall be paid in accordance with the provisions
of Section 3.01(d) and the Subordinated Incentive Listing Fee, if any, shall be paid in accordance with the provisions of Section
3.01(g).

 

(b)         The Advisor
shall promptly upon termination:

 

(i)          pay over
to the Trust all money collected and held for the account of the Trust pursuant to this Agreement, after deducting any accrued
compensation and reimbursement for its expenses to which it is then entitled;

 

(ii)         deliver
to the Board a full accounting, including a statement showing all payments collected by it and a statement of all money held by
it, covering the period following the date of the last accounting furnished to the Board;

 

    	-17-

    	 

    

 

(iii)        deliver
to the Board all assets, including the Assets, and documents of the Trust then in the custody of the Advisor; and

 

(iv)        cooperate
with, and take all reasonable actions requested by, the Trust to provide an orderly management transition.

 

ARTICLE
V

 

INDEMNIFICATION

 

5.01        (a)          The Trust
shall indemnify and hold harmless the Advisor and its Affiliates, including their respective officers, directors, trustees, partners
and employees, from all liability, claims, damages or losses arising in the performance of their duties hereunder, and related
expenses, including reasonable attorneys’ fees, to the extent such liability, claims, damages or losses and related expenses
are not fully reimbursed by insurance, subject to any limitations imposed by the laws of the State of Maryland and the Declaration
of Trust. The Trust shall not indemnify or hold harmless the Advisor or its Affiliates, including their respective officers, directors,
trustees, partners and employees, for any liability or loss suffered by the Advisor or its Affiliates, including their respective
officers, directors, trustees, partners and employees, nor shall it provide that the Advisor or its Affiliates, including their
respective officers, directors, trustees, partners and employees, be held harmless for any loss or liability suffered by the Trust,
unless all of the following conditions are met: (i) the Advisor or its Affiliates have determined, in good faith, that the course
of conduct which caused the loss or liability was in the best interests of the Trust; (ii) the Advisor or its Affiliates, including
their respective officers, directors, trustees, partners and employees, were acting on behalf of or performing services of the
Trust; (iii) such liability or loss was not the result of negligence or misconduct by the Advisor or its Affiliates, including
their respective officers, directors, trustees, partners and employees; and (iv) such indemnification or agreement to hold harmless
is recoverable only out of the Trust’s net assets and not from Shareholders. Notwithstanding the foregoing, the Advisor and
its Affiliates, including their respective officers, directors, trustees, partners and employees, shall not be indemnified by the
Trust for any losses, liability or expenses arising from or out of an alleged violation of federal or state securities laws by
such party unless one or more of the following conditions are met: (i) there has been a successful adjudication on the merits of
each count involving alleged securities law violations as to the particular indemnitee; (ii) such claims have been dismissed with
prejudice on the merits by a court of competent jurisdiction as to the particular indemnitee; and (iii) a court of competent jurisdiction
approves a settlement of the claims against a particular indemnitee and finds that indemnification of the settlement and the related
costs should be made, and the court considering the request for indemnification has been advised of the position of the Securities
and Exchange Commission and of the published position of any state securities regulatory authority in which securities of the Trust
were offered or sold as to indemnification for violations of securities laws. In addition, pursuant to the Sub-Advisory Agreement,
the Trust shall indemnify and hold harmless the sub-advisor and its Affiliates, including their respective officers, directors,
partners, members and employees, from all liability, claims, damages or losses arising in the performance of their duties pursuant
to the Sub-Advisory Agreement, and related expenses, including reasonable attorneys’ fees, to the same extent as provided
by the Trust to the Advisor pursuant to this Section 5.01(a).

 

(b)        The Trust shall
advance funds to the Advisor or its Affiliates, including their respective officers, directors, trustees, partners and employees,
for legal expenses and other costs incurred as a result of any legal action for which indemnification is being sought subject to
satisfying all of the following conditions: (i) the legal action relates to acts or omissions with respect to the performance of
duties or services on behalf of the Trust; (ii) the legal action is initiated by a third-party who is not a Shareholder or the
legal action is initiated by a Shareholder acting in his or her capacity as such and a court of competent jurisdiction specifically
approves such advancement; (iii) the Advisor or its Affiliates undertake to repay the advanced funds to the Trust together with
the applicable legal rate of interest thereon, in cases in which such Advisor or its Affiliates, including their respective officers,
directors, trustees, partners and employees, are found not to be entitled to indemnification. In addition, pursuant to the Sub-Advisory
Agreement, the Trust shall advance funds to the sub-advisor and its Affiliates, including their respective officers, directors,
partners, members and employees, for legal expenses and other costs incurred as a result of any legal action for which indemnification
is being sought to the same extent as provided by the Trust to the Advisor pursuant to this Section 5.01(b).

 

    	-18-

    	 

    

 

(c)        Notwithstanding
the provisions of this Section 5.01, neither the Advisor nor the sub-advisor pursuant to the Sub-Advisory Agreement shall be entitled
to indemnification or be held harmless pursuant to this Section 5.01 for any activity which the Advisor or sub-advisor, as applicable,
shall be required to indemnify or hold harmless the Trust pursuant to Section 5.02.

 

5.02        Indemnification
by Advisor. The Advisor shall indemnify and hold harmless the Trust from contract or other liability, claims, damages,
taxes or losses and related expenses including attorneys’ fees, to the extent that (i) such liability, claims, damages, taxes
or losses and related expenses are not fully reimbursed by insurance and (ii) are incurred by reason of the Advisor’s bad
faith, fraud, misfeasance, misconduct, negligence or reckless disregard of its duties. The Advisor shall not be held responsible
for any action of the Board in following or declining to follow any advice or recommendation given by the Advisor. In addition,
pursuant to the Sub-Advisory Agreement, the Sub-Advisor shall indemnify and hold harmless the Trust from all liability, claims,
damages or losses arising in the performance of its duties pursuant to the Sub-Advisory Agreement, and related expenses, including
reasonable attorneys’ fees, to the same extent as provided by the Advisor to the Trust pursuant to this Section 5.02.

 

5.03        Internalization
of the Advisor and the Sub-Advisor. In the event that the Board determines to internalize any management functions provided
by the Advisor or any Affiliates of the Advisor or any sub-advisor, neither the Trust nor the Partnership shall pay any compensation
or other remuneration to the Advisor or any Affiliates of the Advisor or any sub-advisor solely related to the internalization
transaction. The provisions of this Section 5.03 are not intended to limit any other compensation or Distributions the Trust
or Partnership may pay the Advisor in accordance with this Agreement or any other agreement, including but not limited to the Agreement
of Limited Partnership of UDF V OP, L.P.

 

ARTICLE
VI

 

MISCELLANEOUS

 

6.01        Assignment.
This Agreement shall not be assigned by the Advisor to a non-Affiliate. This Agreement may be assigned by the Advisor to an Affiliate
with the approval of the Board, including a majority of the Independent Trustees. Notwithstanding the foregoing, the Advisor may
assign any rights to receive fees or other payments under this Agreement without obtaining the approval of the Board. Any other
assignment shall be made only with the approval of a majority of the Board (including a majority of the Independent Trustees).
This Agreement shall not be assigned by the Trust without the consent of the Advisor, except in the case of an assignment by the
Trust to a corporation or other organization which is a successor to all of the assets, rights and obligations of the Trust, in
which case such successor organization shall be bound hereunder and by the terms of said assignment in the same manner as the Trust
is bound by this Agreement. This Agreement shall be binding on successors to the Trust or the Partnership resulting from a Change
of Control of the Trust or the Partnership, and shall likewise be binding upon any successor to the Advisor.

 

    	-19-

    	 

    

 

6.02        Relationship
of Advisor and Trust. The Trust, the Partnership and the Advisor are not partners or joint venturers with each other, and
nothing in this Agreement shall be construed to make them such partners or joint venturers or impose any liability as such on either
of them.

 

6.03        Sub-Advisory
Agreement. The Trust hereby acknowledges and approves the terms of that certain Sub-Advisory Agreement dated as of the
date hereof between the Advisor and UDFH General Services, L.P. and consents to the performance of the advisory services set forth
herein by UDFH General Services, L.P. The Advisor shall notify the Trust of any amendment to the Sub-Advisory Agreement and shall
obtain the Trust’s prior written consent, which consent will not be unreasonably withheld, to any material amendment to the
Sub-Advisory Agreement. Notwithstanding anything in this Section 6.03 to the contrary, the Advisor shall remain a fiduciary to
the Trust.

 

6.04        Notices.
Any notice, report or other communication required or permitted to be given hereunder shall be in writing unless some other method
of giving such notice, report or other communication is required by the Declaration of Trust, the Bylaws, or accepted by the party
to whom it is given, and shall be given by being delivered by hand or by overnight mail or other overnight delivery service to
the addresses set forth herein:

 

	To the Trustees and to the Trust:	United Development Funding Income Fund V
	 	The United Development Funding Building
	 	1301 Municipal Way, Suite 100
	 	Grapevine, Texas  76051
	 	Attention:  Chief Executive Officer
	 	 
	To the Partnership:	UDF V OP, L.P.
	 	The United Development Funding Building
	 	1301 Municipal Way, Suite 100
	 	Grapevine, Texas  76051
	 	 
	To the Advisor:	American Realty Capital Residential Advisors, LLC 
	 	405 Park Avenue
	 	New York, New York  10022
	 	Attention:  Edward M. Weil, Jr.

 

Either party shall, as soon as reasonably
practicable, give notice in writing to the other party of a change in its address for the purposes of this Section 6.04.

 

6.05        Modification.
This Agreement shall not be changed, modified, or amended, in whole or in part, except by an instrument in writing signed by both
parties hereto, or their respective successors or assignees.

 

6.06        Severability.
The provisions of this Agreement are independent of and severable from each other, and no provision shall be affected or rendered
invalid or unenforceable by virtue of the fact that for any reason any other or others of them may be invalid or unenforceable
in whole or in part.

 

6.07        Choice
of Law; Venue. The provisions of this Agreement shall be construed and interpreted in accordance with the laws of the State
of Texas, and venue for any action brought with respect to any claims arising out of this Agreement shall be brought exclusively
in Dallas County, Texas.

 

    	-20-

    	 

    

 

6.08        Entire
Agreement. This Agreement contains the entire agreement and understanding among the parties hereto with respect to the
subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings, inducements and conditions, express
or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof. The express terms hereof control
and supersede any course of performance and/or usage of the trade inconsistent with any of the terms hereof. This Agreement may
not be modified or amended other than by an agreement in writing signed by each of the parties hereto.

 

6.09        Waiver.
Neither the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege under this Agreement
shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any
other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy,
power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect
to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted
such waiver.

 

6.10        Gender;
Number. Words used herein regardless of the number and gender specifically used, shall be deemed and construed to include
any other number, singular or plural, and any other gender, masculine, feminine or neuter, as the context requires.

 

6.11        Headings.
The titles and headings of sections and subsections contained in this Agreement are for convenience only, and they neither form
a part of this Agreement nor are they to be used in the construction or interpretation hereof.

 

6.12        Execution
in Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original
as against any party whose signature appears thereon, and all of which shall together constitute one and the same instrument. This
Agreement shall become binding when the counterparts hereof, individually or taken together, shall bear the signatures of all of
the parties reflected hereon as the signatories.

 

6.13        Restrictions
on Voting.  During the term of this Agreement, including any extensions or renewals of this Agreement, neither the Advisor
nor its Affiliates shall be permitted to vote any Shares they now own, or hereafter acquire, in any vote regarding the approval
or termination of any contract with the Advisor or any of its Affiliates. The restrictions on voting of Shares owned by the Advisor
and its Affiliates shall cease and be of no further effect upon termination of this Agreement.

 

6.14        Time Commitment.
The Advisor shall, and shall cause its Affiliates and their respective employees, officers and agents to, devote to the Trust such
time as shall be reasonably necessary to conduct the business and affairs of the Trust consistent with the terms of this Agreement.
The Trust acknowledges that the Advisor and its Affiliates and their respective employees, officers and agents may also engage
in activities unrelated to the Trust and may provide services to Persons other than the Trust or any of its Affiliates.

 

    	-21-

    	 

    

 

6.15        Rights
of the Advisor, Sub-Advisor, and its Affiliates. The Trust, the Partnership, the sub-advisor or Affiliates thereof have
a proprietary interest in the names “United Development Funding Income Fund V,” “United Development Funding”
and “UDF,” and the Advisor or Affiliates thereof have a proprietary interest in the names “American Realty Capital,”
“ARC” and “AR Capital.” Accordingly, and in recognition of this right, if at any time the Advisor or an
Affiliate thereof ceases to perform the services of the Advisor under this Agreement, the Trust or the Partnership, as the case
may be, will, promptly after receipt of written request from the Advisor, cease to conduct business under or use the names “American
Realty Capital,” “ARC,” “AR Capital” or any variations or derivatives thereof, and the Trust and
the Partnership shall, within five (5) business days of such cessation, each change its name (and the names of any of their
Affiliates) to a name that does not contain the name “American Realty Capital,” “ARC,” “AR Capital”
or any other word or words that might, in the sole discretion of the Advisor, be susceptible of indication of some form of relationship
between the Trust and the Advisor or any Affiliate thereof. Consistent with the foregoing, the parties acknowledge and agree that
the Advisor or one or more of its Affiliates shall not in the future organize, sponsor or otherwise permit to exist other investment
vehicles (including vehicles for investment in real estate) and financial and service organizations having “United Development
Funding Income Fund V,” “United Development Funding” or “UDF” as a part of their name without the
consent of the Trust or its Board. The Advisor retains ownership of and reserves all Intellectual Property Rights in the Proprietary
Property. To the extent that the Trust has or obtains any claim to any right, title or interest in the Proprietary Property, including
without limitation in any suggestions, enhancements or contributions that the Trust may provide regarding the Proprietary Property,
the Trust hereby assigns and transfers exclusively to the Advisor all right, title and interest, including without limitation all
Intellectual Property Rights, free and clear of any liens, encumbrances or licenses in favor of the Trust or any other party, in
and to the Proprietary Property. In addition, at the Advisor’s expense, the Trust will perform any acts that may be deemed
desirable by the Advisor to evidence more fully the transfer of ownership of right, title and interest in the Proprietary Property
to the Advisor, including but not limited to the execution of any instruments or documents now or hereafter requested by the Advisor
to perfect, defend or confirm the assignment described herein, in a form determined by the Advisor.

 

[THE REMAINDER OF THIS PAGE HAS BEEN
INTENTIONALLY LEFT BLANK]

 

    	-22-

    	 

    

 

IN WITNESS WHEREOF,
the parties hereto have executed this Advisory Agreement as of the date and year first above written.

 

	 	UNITED DEVELOPMENT FUNDING INCOME FUND V
	 	 
	 	By:	 
	 	Name:  	Hollis M. Greenlaw
	 	Title:	Chief Executive Officer
	 	 
	 	UDF V OP, L.P.
	 	 
	 	By:  United Development Funding Income Fund V
	 	Its General Partner
	 	 
	 	By:	 
	 	Name:	Hollis M. Greenlaw
	 	Title:	Chief Executive Officer
	 	 
	 	American Realty Capital Residential Advisors, LLC 
	 	 
	 	By:	 
	 	Name:	Edward M .Weil, Jr.
	 	Title:	President, Chief Operating Officer, Treasurer and Secretary

 

    	-23-EXECUTION

 

 

MASTER REPURCHASE AGREEMENT

 

CREDIT SUISSE FIRST BOSTON MORTGAGE CAPITAL
LLC, as buyer

(“Buyer”), and

 

FIVE OAKS ACQUISITION CORP., as seller (“Seller”),
and

 

FIVE OAKS
INVESTMENT CORP. (“Guarantor”)

 

Dated February 25, 2014

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	1.	Applicability	1
	 	 	 
	2.	Definitions	1
	 	 	 
	3.	Program; Initiation of Transactions	16
	 	 	 
	4.	Repurchase	18
	 	 	 
	5.	Price Differential	19
	 	 	 
	6.	Margin Maintenance	19
	 	 	 
	7.	Income Payments	20
	 	 	 
	8.	Security Interest	20
	 	 	 
	9.	Payment and Transfer	21
	 	 	 
	10.	Conditions Precedent	21
	 	 	 
	11.	Program; Costs	24
	 	 	 
	12.	Servicing	28
	 	 	 
	13.	Representations and Warranties	29
	 	 	 
	14.	Covenants	34
	 	 	 
	15.	Events of Default	39
	 	 	 
	16.	Remedies Upon Default	41
	 	 	 
	17.	Reports	43
	 	 	 
	18.	Repurchase Transactions	47
	 	 	 
	19.	Single Agreement	47
	 	 	 
	20.	Notices and Other Communications	47
	 	 	 
	21.	Entire Agreement; Severability	49
	 	 	 
	22.	Non assignability	49
	 	 	 
	23.	Set-off	50

 

    	- i -

    	 

    

 

	24.	Binding Effect; Governing Law; Jurisdiction	50
	 	 	 
	25.	No Waivers, Etc.	50
	 	 	 
	26.	Intent	51
	 	 	 
	27.	Disclosure Relating to Certain Federal Protections	52
	 	 	 
	28.	Power of Attorney	52
	 	 	 
	29.	Buyer May Act Through Affiliates	52
	 	 	 
	30.	Indemnification; Obligations	53
	 	 	 
	31.	Counterparts	53
	 	 	 
	32.	Confidentiality	54
	 	 	 
	33.	Recording of Communications	55
	 	 	 
	34.	Periodic Due Diligence Review	56
	 	 	 
	35.	Authorizations	56
	 	 	 
	36.	Acknowledgement Of Anti-Predatory Lending Policies	56
	 	 	 
	37.	Documents Mutually Drafted	56
	 	 	 
	38.	General Interpretive Principles	56
	 	 	 
	39.	Conflicts	57

 

	SCHEDULES
	 
	Schedule 1 – Representations and Warranties with Respect to Purchased Mortgage Loans
	 
	Schedule 2 – Authorized Representatives
	 
	EXHIBITS
	 
	Exhibit A – Form of Purchase Confirmation for Exception Mortgage Loans
	 
	Exhibit B – Reserved
	 
	Exhibit C – Reserved
	 
	Exhibit D – Form of Power of Attorney
	 
	Exhibit E – Form of Opinion of Seller’s and Guarantor’s counsel

 

    	- ii -

    	 

    

 

	Exhibit F – Officer’s Certificate of the Seller and Corporate Resolutions of Seller
	 
	Exhibit G – Seller’s Tax Identification Number
	 
	Exhibit H – Existing Indebtedness
	 
	Exhibit I – Escrow Instruction Letter
	 
	Exhibit J – Form of Servicer Notice

 

    	- iii -

    	 

    

 

1.            Applicability

 

From time to time the
parties hereto may enter into transactions in which Seller agrees to transfer to Buyer Mortgage Loans (as hereinafter defined)
on a servicing released basis against the transfer of funds by Buyer, with a simultaneous agreement by Buyer to transfer to Seller
such Mortgage Loans on a servicing released basis at a date certain or on demand, against the transfer of funds by Seller. Each
such transaction shall be referred to herein as a “Transaction” and, unless otherwise agreed in writing, shall
be governed by this Agreement, including any supplemental terms or conditions contained in any annexes identified herein, as applicable
hereunder.

 

2.            Definitions

 

Whenever used in this
Agreement, the following words and phrases, unless the context otherwise requires, shall have the following meanings:

 

“Acceptable
State” means any state acceptable pursuant to Seller’s Acquisition Guidelines.

 

“Accepted Servicing
Practices” means, with respect to any Mortgage Loan, those mortgage servicing practices of prudent mortgage lending institutions
which service mortgage loans of the same type as such Mortgage Loan in the jurisdiction where the related Mortgaged Property is
located in accordance with applicable law.

 

“Acquisition
Guidelines” means the standards, procedures and guidelines of the Seller for acquiring Mortgage Loans, which are set
forth in the written policies and procedures of the Seller, a copy of which have been provided to Buyer and such other guidelines
as are identified to and approved in writing by Buyer.

 

“Act of Insolvency”
means, with respect to any Person or its Affiliates, (a) the filing of a petition, commencing, or authorizing the commencement
of any case or proceeding, or the voluntary joining of any case or proceeding under any bankruptcy, insolvency, reorganization,
liquidation, dissolution or similar law relating to the protection of creditors, or suffering any such petition or proceeding to
be commenced by another which is consented to, not timely contested or results in entry of an order for relief; (b) the seeking
of the appointment of a receiver, trustee, custodian or similar official for such party or an Affiliate or any substantial part
of the property of either; (c) the appointment of a receiver, conservator, or manager for such party or an Affiliate by any
governmental agency or authority having the jurisdiction to do so; (d) the making or offering by such party or an Affiliate
of a composition with its creditors or a general assignment for the benefit of creditors; (e) the admission in writing by
such party or an Affiliate of such party of its inability to pay its debts or discharge its obligations as they become due or mature;
or (f) that any governmental authority or agency or any person, agency or entity acting or purporting to act under governmental
authority shall have taken any action to condemn, seize or appropriate, or to assume custody or control of, all or any substantial
part of the property of such party or of any of its Affiliates, or shall have taken any action to displace the management of such
party or of any of its Affiliates or to curtail its authority in the conduct of the business of such party or of any of its Affiliates.

 

    	- 1 -

    	 

    

 

“Affiliate”
means, with respect to any Person, any “affiliate” of such Person, as such term is defined in the Bankruptcy Code.

 

“Aged Loan”
has the meaning assigned to such term in the Pricing Side Letter.

 

“Aging Limit”
has the meaning assigned to such term in the Pricing Side Letter.

 

“Agreement”
means this Master Repurchase Agreement, as it may be amended, supplemented or otherwise modified from time to time.

 

“Appraised Value”
means the value set forth in an appraisal made in connection with the origination of the related Mortgage Loan as the value of
the Mortgaged Property.

 

“Asset Value”
has the meaning assigned to such term in the Pricing Side Letter.

 

“Assignment
of Mortgage” means an assignment of the Mortgage, notice of transfer or equivalent instrument in recordable form, sufficient
under the laws of the jurisdiction wherein the related Mortgaged Property is located to reflect the sale of the Mortgage to Buyer.

 

“Assignment
of Proprietary Lease” means the specific agreement creating a first lien on and pledge of the Co-op Shares and the appurtenant
Proprietary Lease securing a Co-op Loan.

 

“Bailee Letter”
has the meaning assigned to such term in the Custodial Agreement.

 

“Bankruptcy
Code” means the United States Bankruptcy Code of 1978, as amended from time to time.

 

“Bid”
has the meaning set forth in Section 4.c hereof.

 

“Bid Fee”
has the meaning set forth in Section 4.c hereof.

 

“Business Day”
means any day other than (i) a Saturday or Sunday; (ii) a day on which the New York Stock Exchange, the Federal Reserve
Bank of New York or the Custodian is authorized or obligated by law or executive order to be closed or (iii) a public or bank holiday
in New York City.

 

“Buyer”
means Credit Suisse First Boston Mortgage Capital LLC, and any successor or assign hereunder.

 

“Buyer Affiliate”
means an Affiliate of the Buyer; provided that with respect to Section 18, all references in the Bankruptcy Code to twenty
percent (20%) shall be replaced with fifty percent (50%).

 

“Capital Lease
Obligations” means, for any Person, all obligations of such Person to pay rent or other amounts under a lease of (or
other agreement conveying the right to use) Property to the extent such obligations are required to be classified and accounted
for as a capital lease on a balance sheet of such Person under GAAP, and, for purposes of this Agreement, the amount of such obligations
shall be the capitalized amount thereof, determined in accordance with GAAP.

 

    	- 2 -

    	 

    

 

“Change in Control”
means:

 

(a)          any
transaction or event as a result of which Guarantor ceases to own, beneficially or of record, 100% of the stock of Seller;

 

(b)          the
sale, transfer, or other disposition of all or substantially all of Seller’s or Guarantor’s assets (excluding any such
action taken in connection with any securitization transaction);

 

(c)          the
consummation of a merger or consolidation of Seller or Guarantor with or into another entity or any other corporate reorganization,
if more than 50% of the combined voting power of the continuing or surviving entity’s stock outstanding immediately after
such merger, consolidation or such other reorganization is owned by Persons who were not stockholders of Seller or Guarantor immediately
prior to such merger, consolidation or other reorganization; or

 

(d)          any
transaction or event as a result of which a “person” or “group” (within the meaning of Section 13(d) or
14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) shall become, or obtain rights
(whether by means of warrants, options or otherwise) to become, the “beneficial owner” (as defined in Rules 13d-3 and
13d-5 under the Exchange Act), directly or indirectly, of a percentage of the total voting power of all classes of capital stock
of the Guarantor entitled to vote generally in the election of directors of 50% or more.

 

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

 

“Committed Mortgage
Loan” means a Mortgage Loan which is the subject of a Take-out Commitment with a Take-out Investor.

 

“Co-op”
means a private, cooperative housing corporation, having only one class of stock outstanding, which owns or leases land and all
or part of a building or buildings, including apartments, spaces used for commercial purposes and common areas therein and whose
board of directors authorizes the sale of stock and the issuance of a Proprietary Lease.

 

“Co-op Corporation”
means, with respect to any Co-op Loan, the cooperative apartment corporation that holds legal title to the related Co-op Project
and grants occupancy rights to units therein to stockholders through Proprietary Leases or similar arrangements.

 

“Co-op Lien
Search” means a search for (a) federal tax liens, mechanics’ liens, lis pendens, judgments of record or otherwise
against (i) the Co-op Corporation and (ii) seller of the Co-op Unit, (b) filings Uniform Commercial Code financing statements and
(c) the deed of the Co-op Project into the Co-op Corporation.

 

    	- 3 -

    	 

    

 

“Co-op Loan”
means a Mortgage Loan secured by the pledge of stock allocated to a dwelling unit in a residential cooperative housing corporation
and collateral assignment of the related Proprietary Lease.

 

“Co-op Project”
means, with respect to any Co-op Loan, all real property and improvements thereto and rights therein and thereto owned by a Co-op
Corporation including without limitation the land, separate dwelling units and all common elements.

 

“Co-op Shares”
means, with respect to any Co-op Loan, the shares of stock issued by a Co-op Corporation and allocated to a Co-op Unit and represented
by a stock certificates.

 

“Co-op Unit”
means, with respect to any Co-op Loan, a specific unit in a Co-op Project.

“CSCOF”
means, in the Buyer’s sole discretion, which may be confirmed by notice to the Seller (which may be electronic), for each
day, the rate of interest (calculated on a per annum basis) determined by Buyer (which such determination shall be dispositive
absent manifest error), equal to the overnight interest expense incurred by Buyer for borrowing funds.

 

“Custodial Agreement”
means the custodial agreement, dated as of the date hereof, among Seller, Buyer and Custodian, as it may be amended, supplemented
or otherwise modified from time to time.

 

“Custodial Mortgage
Loan Schedule” has the meaning assigned to such term in the Custodial Agreement.

 

“Custodian”
means Wells Fargo Bank, N.A. or such other party specified by Buyer and agreed to by Seller, which approval shall not be unreasonably
withheld.

 

“Default”
means an Event of Default or an event that with notice or lapse of time or both would become an Event of Default.

 

“Dollars”
and “$” means dollars in lawful currency of the United States of America.

 

“Due Date”
means the day of the month on which the Monthly Payment is due on a Mortgage Loan, exclusive of any days of grace.

 

“Effective Date”
means the date upon which the conditions precedent set forth in Section 10 shall have been satisfied.

 

“Electronic
Tracking Agreement” means an Electronic Tracking Agreement among Buyer, Seller, MERS and MERSCORP Holdings, Inc., to
the extent applicable as the same may be amended from time to time.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended from time to time.

 

    	- 4 -

    	 

    

 

“ERISA Affiliate”
means any corporation or trade or business that, together with Seller or Guarantor is treated as a single employer under Section 414(b)
or (c) of the Code or solely for purposes of Section 302 of ERISA and Section 412 of the Code is treated as single employer
described in Section 414 of the Code.

 

“ERISA Event”
means with respect to Seller or Guarantor (a) with respect to any Plan, a reportable event, as defined in Section 4043
of ERISA, as to which the PBGC has not by regulation waived the requirement of Section 4043(a) of ERISA that it be notified
with 30 days of the occurrence of such event, or (b) the withdrawal of Seller, Guarantor or any ERISA Affiliate thereof from
a Plan during a plan year in which it is a substantial employer, as defined in Section 4001(a)(2) of ERISA, or (c) the
failure by Seller, Guarantor or any ERISA Affiliate thereof to meet the minimum funding standard of Section 412 of the Code
or Section 302 of ERISA with respect to any Plan, including, without limitation, the failure to make on or before its due
date a required installment under Section 412(m) of the Code (or Section 430(j) of the Code as amended by the Pension
Protection Act) or Section 302(e) of ERISA (or Section 303(j) of ERISA, as amended by the Pension Protection Act), or
(d) the distribution under Section 4041 of ERISA of a notice of intent to terminate any Plan or any action taken by Seller,
Guarantor or any ERISA Affiliate thereof to terminate any plan, or (e) the failure to meet requirements of Section 436
of the Code resulting in the loss of qualified status under Section 401(a)(29) of the Code, or (f) the institution by
the PBGC of proceedings under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer,
any Plan, or (g) the receipt by Seller, Guarantor or any ERISA Affiliate thereof of a notice from a Multiemployer Plan that
action of the type described in the previous clause (f) has been taken by the PBGC with respect to such Multiemployer Plan,
or (h) any event or circumstance exists which may reasonably be expected to constitute grounds for Seller, Guarantor or any
ERISA Affiliate thereof to incur liability under Title IV of ERISA or under Sections 412(b) or 430(k) of the Code with respect
to any Plan.

 

“Escrow Instruction
Letter” means the Escrow Instruction Letter from Seller to the Settlement Agent, in the form of Exhibit I
hereto, as the same may be modified, supplemented and in effect from time to time.

 

“Escrow Payments”
means, with respect to any Mortgage Loan, the amounts constituting ground rents, taxes, assessments, water rates, sewer rents,
municipal charges, mortgage insurance premiums, fire and hazard insurance premiums, condominium charges, and any other payments
required to be escrowed by the Mortgagor with the mortgagee pursuant to the Mortgage or any other document.

 

“Event of Default”
has the meaning specified in Section 15 hereof.

 

    	- 5 -

    	 

    

 

“Exception Mortgage
Loan” means any Mortgage Loan which is otherwise ineligible for purchase hereunder, or which otherwise becomes ineligible
for purchase hereunder and which is approved by Buyer in its sole discretion; provided, however, that Seller shall
pay to Buyer a fee of $25 with respect to any such approval of an Exception Mortgage Loan other than a Wet-Ink Mortgage Loan and
$10 with respect to any such approval of an Exception Mortgage Loan which is a Wet-Ink Mortgage Loan; and provided further,
that upon 30 days’ notice to the Seller, Buyer may change such Exception Mortgage Loan approval fee. Buyer’s approval
of a Mortgage Loan as an Exception Mortgage Loan shall expire on the earlier of (a) the date set forth by the Buyer in the
written notice that such Mortgage Loan is approved as an Exception Mortgage Loan (an “Exception Notice”) or
(b) the occurrence of any additional event, other than that set forth in the Exception Notice, which would cause the Mortgage
Loan to become ineligible for purchase hereunder. The Pricing Rate, Market Value, Purchase Price and Asset Value with respect to
Exception Mortgage Loans shall be set in the sole discretion of Buyer. Buyer may at any time, and in its sole discretion, no longer
consider a Mortgage Loan an Exception Mortgage Loan, in which case such Mortgage Loan shall have an Asset Value of zero.

 

“Excluded Taxes”
means any of the following Taxes imposed on or with respect to Buyer or other recipient of any payment hereunder or required to
be withheld or deducted from a payment to Buyer or such other recipient: (a) Taxes based on (or measured by) net income or net
profits, franchise Taxes and branch profits Taxes that are imposed on Buyer or other recipient of any payment hereunder as a result
of (i) being organized under the laws of, or having its principal office or its applicable lending office located in the jurisdiction
imposing such Tax (or any political subdivision thereof), or (ii) a present or former connection between such Buyer or other recipient
and the jurisdiction of the Governmental Authority imposing such Tax or any political subdivision or Taxing authority thereof (other
than connections arising from such Buyer or other recipient having executed, delivered, become a party to, performed its obligations
under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or
enforced under this Agreement or any Program Agreement, or sold or assigned an interest in any Purchased Mortgage Loan); (b) any
Tax imposed on Buyer or other recipient of a payment hereunder that is attributable to such Buyer’s or other recipient’s
failure to comply with relevant requirements set forth in Section 11(e); (c) any withholding Tax that is imposed on amounts payable
to or for the account of Buyer or other recipient of a payment hereunder pursuant to a law in effect on the date such person becomes
a party to or under this Agreement, or such person changes its lending office, except in each case to the extent that amounts with
respect to Taxes were payable either to such person’s assignor immediately before such person became a party hereto or to
such person immediately before it changed its lending office; and (d) any Taxes imposed under FATCA.

 

“Existing Indebtedness”
has the meaning specified in Section 13.a(23) hereof.

 

“FATCA”
means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively
comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof
or agreements entered into pursuant to Section 1471(b)(1) of the Code (or any amended or successor version described above) and
intergovernmental agreements implementing the foregoing (together with any law implementing such agreements).

 

“FICO”
means Fair Isaac & Co., or any successor thereto.

 

“Fidelity Insurance”
shall mean insurance coverage with respect to employee errors, omissions, dishonesty, forgery, theft, disappearance and destruction,
robbery and safe burglary, property (other than money and securities) and computer fraud in an aggregate amount acceptable to Seller’s
regulators.

 

    	- 6 -

    	 

    

 

“GAAP”
means generally accepted accounting principles in effect from time to time in the United States of America and applied on a consistent
basis.

 

“Governmental
Authority” means any nation or government, any state or other political subdivision thereof, or any entity exercising
executive, legislative, judicial, regulatory or administrative functions over Seller, Guarantor or Buyer, as applicable.

 

“Gross Margin”
means, with respect to each adjustable rate Mortgage Loan, the fixed percentage amount set forth in the related Mortgage Note.

 

“Guarantee”
means, as to any Person, any obligation of such Person directly or indirectly guaranteeing any Indebtedness of any other Person
or in any manner providing for the payment of any Indebtedness of any other Person or otherwise protecting the holder of such Indebtedness
against loss (whether by virtue of partnership arrangements, by agreement to keep-well, to purchase assets, goods, securities or
services, or to take-or-pay or otherwise); provided that the term “Guarantee” shall not include (a) endorsements
for collection or deposit in the ordinary course of business, or (b) obligations to make servicing advances for delinquent
taxes and insurance or other obligations in respect of a Mortgage Loan or Mortgaged Property, to the extent required by Buyer.
The amount of any Guarantee of a Person shall be deemed to be an amount equal to the stated or determinable amount of the primary
obligation in respect of which such Guarantee is made or, if not stated or determinable, the maximum reasonably anticipated liability
in respect thereof as determined by such Person in good faith. The terms “Guarantee” and “Guaranteed”
used as verbs shall have correlative meanings.

 

“Guarantor”
means Five Oaks Investment Corp., in its capacity as guarantor under the Guaranty.

 

“Guaranty”
means the guaranty of the Guarantor in favor of the Buyer, dated as of the date hereof, as the same may be amended from time to
time, pursuant to which Guarantor fully and unconditionally guarantees the obligations of the Seller hereunder.

 

“High Cost Mortgage
Loan” means a Mortgage Loan (a) classified as a “high cost” loan under the Home Ownership and Equity
Protection Act of 1994; (b) classified as a “high cost,” “threshold,” “covered,” or “predatory”
loan under any other applicable state, federal or local law (or a similarly classified loan using different terminology under a
law, regulation or ordinance imposing heightened regulatory scrutiny or additional legal liability for residential mortgage loans
having high interest rates, points and/or fees) or (c) having a percentage listed under the Indicative Loss Severity Column
(the column that appears in the S&P Anti-Predatory Lending Law Update Table, included in the then-current S&P’s LEVELS®
Glossary of Terms on Appendix E).

 

“Income”
means, with respect to any Purchased Mortgage Loan at any time until repurchased by the Seller, any principal received thereon
or in respect thereof and all interest, dividends or other distributions thereon.

 

    	- 7 -

    	 

    

 

“Indebtedness”
means, for any Person: at any time, and only to the extent outstanding at such time: (a) obligations created, issued or incurred
by such Person for borrowed money (whether by loan, the issuance and sale of debt securities or the sale of Property to another
Person subject to an understanding or agreement, contingent or otherwise, to repurchase such Property from such Person); (b) obligations
of such Person to pay the deferred purchase or acquisition price of Property or services, other than trade accounts payable (other
than for borrowed money) arising, and accrued expenses incurred, in the ordinary course of business, so long as such trade accounts
payable are payable within 90 days after the date the respective goods are delivered or the respective services are rendered; (c) Indebtedness
of others secured by a Lien on the Property of such Person, whether or not the respective Indebtedness so secured has been assumed
by such Person; (d) obligations (contingent or otherwise) of such Person in respect of letters of credit or similar instruments
issued or accepted by banks and other financial institutions for the account of such Person; (e) Capital Lease Obligations
of such Person; (f) obligations of such Person under repurchase agreements, sale/buy-back agreements or like arrangements,
including, without limitation, any Indebtedness arising hereunder; (g) Indebtedness of others Guaranteed by such Person; (h) all
obligations of such Person incurred in connection with the acquisition or carrying of fixed assets by such Person; (i) Indebtedness
of general partnerships of which such Person is a general partner and (j) with respect to clauses (a)-(i) above both
on and off balance sheet.

 

“Indemnified
Taxes” means Taxes other than Excluded Taxes and Other Taxes, imposed on or with respect to any payment made by or on
account of any obligation of the Seller hereunder or under any Program Agreement.

 

“Index”
means, with respect to any adjustable rate Mortgage Loan, the index identified on the Mortgage Loan Schedule and set forth in the
related Mortgage Note for the purpose of calculating the applicable Mortgage Interest Rate.

 

“Interest Rate
Adjustment Date” means the date on which an adjustment to the Mortgage Interest Rate with respect to each Mortgage Loan
becomes effective.

 

“Interest Rate
Protection Agreement” means, with respect to any or all of the Purchased Mortgage Loans, any short sale of a US Treasury
Security, or futures contract, or mortgage related security, or Eurodollar futures contract, or options related contract, or interest
rate swap, cap or collar agreement or Take-out Commitment, or similar arrangement providing for protection against fluctuations
in interest rates or the exchange of nominal interest obligations, either generally or under specific contingencies, entered into
by Seller and an Affiliate of Buyer or such other party acceptable to Buyer in its sole discretion, which agreement is acceptable
to Buyer in its sole discretion.

 

“Investment
Manager” means Oak Circle Capital Partners LLC.

 

“Jumbo Mortgage
Loan” means a Mortgage Loan with an original principal balance in an amount in excess of the then applicable conventional
conforming limits, including general limits and high-cost area limits, for Mortgaged Properties securing Mortgage Loans in such
county or local area and which is approved by Buyer in its sole discretion and also eligible for purchase by Buyer, Buyer’s
Affiliates or any other national residential mortgage lender acceptable to Buyer in its sole discretion; provided, however, that
Jumbo Mortgage Loans shall not include any Mortgage Loan with an original principal balance in excess of $2,000,000 or with respect
to Jumbo Mortgage Loans intended for purchase by Buyer or its Affiliates, such amount as agreed to by Buyer.

 

    	- 8 -

    	 

    

 

“Lien”
means any mortgage, lien, pledge, charge, security interest or similar encumbrance.

 

“Loan to Value
Ratio” or “LTV” means with respect to any Mortgage Loan, the ratio of the original outstanding principal
amount of such Mortgage Loan to the lesser of (a) the Appraised Value of the Mortgaged Property at origination or (b) if
the Mortgaged Property was purchased within 12 months of the origination of such Mortgage Loan, the purchase price of the Mortgaged
Property.

 

“Margin Call”
has the meaning specified in Section 6.a hereof.

 

“Margin Deadline”
has the meaning specified in Section 6.b hereof.

 

“Margin Deficit”
has the meaning specified in Section 6.a hereof.

 

“Margin Threshold”
means $250,000.

 

“Market Value”
has the meaning assigned to such term in the Pricing Side Letter.

 

“Material Adverse
Effect” means (a) a material adverse change in, or a material adverse effect upon, the operations, business, properties
or condition (financial or otherwise) of Seller, Guarantor or any Affiliate that is a party to any Program Agreement taken as a
whole; (b) a material impairment of the ability of Seller, Guarantor or any Affiliate that is a party to any Program Agreement
to perform under any Program Agreement; or (c) a material adverse effect upon the legality, validity, binding effect or enforceability
of any Program Agreement against Seller, Guarantor or any Affiliate that is a party to any Program Agreement, in each case as determined
by the Buyer in its sole good faith discretion.

 

“Maximum Aggregate
Purchase Price” has the meaning assigned to such term in the Pricing Side Letter.

 

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

 

“MERS System”
means the system of recording transfers of mortgages electronically maintained by MERS.

 

“Monthly Payment”
means the scheduled monthly payment of principal and interest on a Mortgage Loan.

 

“Moody’s”
means Moody’s Investors Service, Inc. or any successors thereto.

 

    	- 9 -

    	 

    

 

“Mortgage”
means each mortgage, assignment of rents, security agreement and fixture filing, or deed of trust, assignment of rents, security
agreement and fixture filing, deed to secure debt, assignment of rents, security agreement and fixture filing, or similar instrument
creating and evidencing a lien on real property and other property and rights incidental thereto, unless such Mortgage is granted
in connection with a Co-op Loan, in which case the first lien position is in the stock of the subject cooperative association and
in the tenant’s rights in the Proprietary Lease relating to such stock.

 

“Mortgage File”
means, with respect to a Mortgage Loan, the documents and instruments relating to such Mortgage Loan and set forth in an exhibit
to the Custodial Agreement.

 

“Mortgage Interest
Rate” means the rate of interest borne on a Mortgage Loan from time to time in accordance with the terms of the related
Mortgage Note.

 

“Mortgage Interest
Rate Cap” means, with respect to an adjustable rate Mortgage Loan, the limit on each Mortgage Interest Rate adjustment
as set forth in the related Mortgage Note.

 

“Mortgage Loan”
means any first lien closed Jumbo Mortgage Loan which is a fixed or floating-rate, one-to-four-family residential mortgage or home
equity loan evidenced by a promissory note and secured by a first lien mortgage, which satisfies the requirements set forth in
the Acquisition Guidelines and Section 13.b hereof; provided, however, that, except as expressly approved in writing by Buyer,
Mortgage Loans shall not include any “high-LTV” loans or any High Cost Mortgage Loans.

 

“Mortgage Loan
Documents” means the documents in the related Mortgage File to be delivered to the Custodian.

 

“Mortgage Loan
Schedule” means, with respect to any Transaction as of any date, a mortgage loan schedule in the form of a computer tape
or other electronic medium generated by Seller, and delivered to Buyer and Custodian, which provides information required by Buyer
to enter into Transactions relating to the Purchased Mortgage Loans in a format acceptable to Buyer.

 

“Mortgage Note”
means the promissory note or other evidence of the indebtedness of a Mortgagor secured by a Mortgage.

 

“Mortgaged Property”
means the real property or other Co-op Loan collateral securing repayment of the debt evidenced by a Mortgage Note.

 

“Mortgagor”
means the obligor or obligors on a Mortgage Note, including any person who has assumed or guaranteed the obligations of the obligor
thereunder.

 

“Multiemployer
Plan” means a multiemployer plan defined as such in Section 3(37) of ERISA to which contributions have been or are
required to be made by Seller or any ERISA Affiliate and that is covered by Title IV of ERISA.

 

“Net Income”
means, for any period and any Person, the net income of such Person for such period as determined in accordance with GAAP.

 

    	- 10 -

    	 

    

 

“1934 Act”
means the Securities Exchange Act of 1934, as amended from time to time.

 

“Non-Performing
Mortgage Loan” means (a) any Mortgage Loan for which any payment of principal or interest is more than twenty-nine
(29) days past due, (b) any Mortgage Loan with respect to which the related mortgagor is in bankruptcy or (c) any Mortgage
Loan with respect to which the related mortgaged property is in foreclosure.

 

“Non-Utilization
Fee” has the meaning assigned to such term in the Pricing Side Letter.

 

“Obligations”
means (a) all of Seller’s indebtedness, obligations to pay the Repurchase Price on the Repurchase Date, the Price Differential
on each Price Differential Payment Date, and other obligations and liabilities, to Buyer, its Affiliates or Custodian arising under,
or in connection with, the Program Agreements; (b) any and all sums paid by Buyer or on behalf of Buyer in order to preserve
any Purchased Mortgage Loan or its interest therein; (c) in the event of any proceeding for the collection or enforcement
of any of Seller’s indebtedness, obligations or liabilities referred to in clause (a), the reasonable out-of-pocket
expenses incurred of retaking, holding, collecting, preparing for sale, selling or otherwise disposing of or realizing on any Purchased
Mortgage Loan, or of any exercise by Buyer of its rights under the Program Agreements, including, without limitation, attorneys’
fees and disbursements and court costs; and (d) all of Seller’s indemnity obligations to Buyer or Custodian or both
pursuant to the Program Agreements.

 

“OFAC”
has the meaning set forth in Section 13.a(27) hereof.

 

“Officer’s
Compliance Certificate” has the meaning assigned to such term in the Pricing Side Letter.

 

“Other Taxes”
means any and all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes or any excise,
sales, goods and services or transfer taxes, charges or similar levies arising from any payment made hereunder or from the execution,
delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise
with respect to, any Program Agreement.

 

“PBGC”
means the Pension Benefit Guaranty Corporation or any entity succeeding to any or all of its functions under ERISA.

 

“Pension Protection
Act” means the Pension Protection Act of 2006.

 

“Person”
means an individual, partnership, corporation (including a business trust), limited liability company, joint stock company, trust,
unincorporated association, joint venture or other entity, or a government or any political subdivision or agency thereof.

 

“Plan”
means an employee benefit or other plan established or maintained by Seller or any ERISA Affiliate and covered by Title IV
of ERISA, other than a Multiemployer Plan.

 

    	- 11 -

    	 

    

 

“Post Default
Rate” has the meaning assigned to such term in the Pricing Side Letter.

 

“Power of Attorney”
means a Power of Attorney substantially in the form of Exhibit D hereto.

 

“Price Differential”
means with respect to any Transaction as of any date of determination, an amount equal to the product of (a) the Pricing Rate
for such Transaction and (b) the Purchase Price for such Transaction, calculated daily on the basis of a 360-day year for
the actual number of days during the period commencing on (and including) the Purchase Date for such Transaction and ending on
(but excluding) the Repurchase Date.

 

“Price Differential
Payment Date” means, with respect to a Purchased Mortgage Loan, the 5th day of the month following the related Purchase
Date and each succeeding 5th day of the month thereafter; provided, that, with respect to such Purchased Mortgage Loan, the final
Price Differential Payment Date shall be the related Repurchase Date; and provided, further, that if any such day is not a Business
Day, the Price Differential Payment Date shall be the next succeeding Business Day.

 

“Pricing Rate”
has the meaning assigned to such term in the Pricing Side Letter.

 

“Pricing Side
Letter” means, the letter agreement dated as of the date hereof, among Buyer, Seller and the Guarantor, as the same may
be amended from time to time.

 

“Program Agreements”
means, collectively, this Agreement, the Guaranty, the Custodial Agreement, the Pricing Side Letter, the Electronic Tracking Agreement,
the Power of Attorney, the Securitization Mandate Letter, the Servicing Agreement, if any, the Servicer Notice, if entered into
and, with respect to each Exception Mortgage Loan, a Purchase Confirmation.

 

“Prohibited
Person” has the meaning set forth in Section 13.a(27) hereof.

 

“Property”
means any right or interest in or to property of any kind whatsoever, whether real, personal or mixed and whether tangible or intangible.

 

“Proprietary
Lease” means the lease on a Co-op Unit evidencing the possessory interest of the owner in the Co-op Shares in such Co-op
Unit.

 

“Purchase Confirmation”
means, with respect to an Exception Mortgage Loan, a confirmation of a Transaction, in the form attached as Exhibit A
hereto.

 

“Purchase Date”
means the date on which Purchased Mortgage Loans are to be transferred by Seller to Buyer.

 

    	- 12 -

    	 

    

 

“Purchase Price”
means the price at which each Purchased Mortgage Loan is transferred by Seller to Buyer, which shall equal:

 

(a)          on
the Purchase Date, in the case of all Purchased Mortgage Loans, the applicable Purchase Price Percentage multiplied by the lesser
of either: (x) the Market Value of such Purchased Mortgage Loan or (y) the outstanding principal amount thereof as set
forth on the related Mortgage Loan Schedule;

 

(b)          on
any day after the Purchase Date, except where Buyer and the Seller agree otherwise, the amount determined under the immediately
preceding clause (a) decreased by the amount of any cash transferred by the Seller to Buyer pursuant to Section 6 hereof
or applied to reduce the Seller’s obligations under Section 4(b) or Section 4.c(ii) hereof.

 

“Purchase Price
Percentage” has the meaning assigned to such term in the Pricing Side Letter.

 

“Purchased Mortgage
Loans” means the collective reference to Mortgage Loans together with the Repurchase Assets related to such Mortgage
Loans transferred by Seller to Buyer in a Transaction hereunder, listed on the related Mortgage Loan Schedule attached to the related
Transaction Request, which such Mortgage Loans the Custodian has been instructed to hold pursuant to the Custodial Agreement.

 

“Qualified Insurer”
means an insurance company duly authorized and licensed where required by law to transact insurance business and approved as an
insurer by Buyer.

 

“Qualified Originator”
means an originator of Mortgage Loans which is acceptable under the Acquisition Guidelines.

 

“Recognition
Agreement” means, an agreement among a Co-op Corporation, a lender and a Mortgagor with respect to a Co-op Loan whereby
such parties (i) acknowledge that such lender may make, or intends to make, such Co-op Loan, and (ii) make certain agreements with
respect to such Co-op Loan.

 

“Records”
means all instruments, agreements and other books, records, and reports and data generated by other media for the storage of information
maintained by Seller, Guarantor, Servicer or any other person or entity with respect to a Purchased Mortgage Loan. Records shall
include the Mortgage Notes, any Mortgages, the Mortgage Files, the credit files related to the Purchased Mortgage Loan and any
other instruments necessary to document or service a Mortgage Loan.

 

“REIT”
means a real estate investment trust, as defined in Section 856 of the Code.

 

“REO Property”
means real property acquired by Seller, including a Mortgaged Property acquired through foreclosure of a Mortgage Loan or by deed
in lieu of such foreclosure.

 

“Reporting Date”
means the 7th day of each month or, if such day is not a Business Day, the next succeeding Business Day.

 

    	- 13 -

    	 

    

 

“Repurchase
Assets” has the meaning assigned thereto in Section 8 hereof.

 

“Repurchase
Date” means the earlier of (a) the Termination Date, (b) the date designated pursuant to Section 4(a), (c)
the date set forth in the applicable Purchase Confirmation with respect to an Exception Mortgage Loan or (d) the date determined
by application of Section 16 hereof.

 

“Repurchase
Price” means the price at which Purchased Mortgage Loans are to be transferred from Buyer to Seller upon termination
of a Transaction, which will be determined in each case (including Transactions terminable upon demand) as the sum of the Purchase
Price and the accrued but unpaid Price Differential as of the date of such determination.

 

“Request for
Certification” means a notice sent to the Custodian reflecting the sale of one or more Purchased Mortgage Loans to Buyer
hereunder.

 

“Requirement
of Law” means, with respect to any Person, any law, treaty, rule or regulation or determination of an arbitrator, a court
or other governmental authority, applicable to or binding upon such Person or any of its property or to which such Person or any
of its property is subject.

 

“Responsible
Officer” means as to any Person, the chief executive officer or, with respect to financial matters, the chief financial
officer of such Person.

 

“S&P”
means Standard & Poor’s Ratings Services, or any successor thereto.

 

“SEC”
means the Securities and Exchange Commission, or any successor thereto.

 

“Securitization
Mandate Letter” means the letter entered into among Buyer’s Affiliate, Buyer and Seller.

 

“Seller”
means Five Oaks Acquisition Corp. or its permitted successors and assigns.

 

“Servicer”
means PHH Mortgage Corporation or any other servicer approved by Buyer in its sole discretion, which may be Seller.

 

“Servicer Notice”
means the notice acknowledged by a third party Servicer substantially in the form of Exhibit J hereto, as the same
may be amended from time to time.

 

“Servicing Agreement”
means that certain Mortgage Loan Subservicing Agreement, dated as of February 25, 2014 between the Seller and the Servicer and
any other servicing agreement entered into between Seller and a third party Servicer as each may be amended from time to time.

 

“Servicing Rights”
means rights of any Person to administer, service or subservice, the Purchased Mortgage Loans or to possess related Records.

 

    	- 14 -

    	 

    

 

“Settlement
Agent” means, with respect to any Transaction the subject of which is a Wet-Ink Mortgage Loan, the entity approved by
Buyer, in its sole good-faith discretion, which may be a title company, escrow company or attorney in accordance with local law
and practice in the jurisdiction where the related Wet-Ink Mortgage Loan is being originated. A Settlement Agent is deemed approved
unless Buyer notifies Seller otherwise at any time electronically or in writing.

 

“Shareholder
Equity Notification Trigger” means, as of any day, (i) a decline of forty-five percent (45%) or more of the shareholder
equity of Guarantor as of September 30, 2013; or (ii) a decline of thirty percent (30%) or more of the shareholder equity of Guarantor
from the highest shareholder equity in the preceding three (3) month period then ending.

 

“SIPA”
means the Securities Investor Protection Act of 1970, as amended from time to time.

 

“Stock Certificate”
means, with respect to a Co-op Loan, the certificates evidencing ownership of the Co-op Shares issued by the Co-op Corporation.

 

“Stock Power”
means, with respect to a Co-op Loan, an assignment of the Stock Certificate or an assignment of the Co-op Shares issued by the
Co-op Corporation.

 

“Subsidiary”
means, with respect to any Person, any corporation, limited liability company, partnership or other entity of which at least a
majority of the securities or other ownership interests having by the terms thereof ordinary voting power to elect a majority of
the board of directors or other persons performing similar functions of such corporation, partnership or other entity (irrespective
of whether or not at the time securities or other ownership interests of any other class or classes of such corporation, partnership
or other entity shall have or might have voting power by reason of the happening of any contingency) is at the time directly or
indirectly owned or controlled by such Person or one or more Subsidiaries of such Person or by such Person and one or more Subsidiaries
of such Person.

 

“Take-out Commitment”
means a commitment of Seller to sell one or more identified Mortgage Loans to a Take-out Investor and the corresponding Take-out
Investor’s commitment back to the Seller to effectuate the foregoing.

 

“Take-out Investor”
means an institution which has made a Take-out Commitment and has been approved by Buyer.

 

“Taxes”
means any and all present or future taxes (including social security contributions and value added taxes), levies, imposts, duties
(including stamp duties), deductions, charges (including ad valorem charges), withholdings (including backup withholding), assessments,
fees or other charges of any nature whatsoever imposed by any Governmental Authority, including any interest, additions to tax
or penalties applicable thereto.

 

“Termination
Date” has the meaning assigned to such term in the Pricing Side Letter.

 

    	- 15 -

    	 

    

 

“Third Party
Evaluator” shall mean an appraiser approved by Buyer in its sole good faith discretion.

 

“Transaction”
has the meaning set forth in Section 1 hereof.

 

“Transaction
Request” means a request via email from Seller to Buyer notifying Buyer that Seller wishes to enter into a Transaction
hereunder that indicates that it is a Transaction Request under this Agreement.

 

“Trust Receipt”
means, with respect to any Transaction as of any date, a receipt in the form attached as an exhibit to the Custodial Agreement.

 

“Uniform Commercial
Code” means the Uniform Commercial Code as in effect on the date hereof in the State of New York or the Uniform Commercial
Code as in effect in the applicable jurisdiction.

 

“U.S. Tax Compliance
Certificate” has the meaning set forth in Section 11(e)(ii)(B) hereof.

 

“Violation Deadline”
has the meaning assigned thereto in Section 4.c hereof.

 

“Wet-Ink Delivery
Date” has the meaning assigned to such term in the Pricing Side Letter.

 

“Wet-Ink Documents”
means, with respect to any Wet-Ink Mortgage Loan, the (a) Transaction Request and (b) the Mortgage Loan Schedule.

 

“Wet-Ink Mortgage
Loan” means a Mortgage Loan which Seller is selling to Buyer simultaneously with the origination thereof.

 

3.            Program;
Initiation of Transactions

 

a.           From
time to time, in the sole discretion of Buyer, Buyer may purchase from Seller certain Mortgage Loans that have been either originated
by Seller or purchased by Seller from other originators. This Agreement is not a commitment by Buyer to enter into Transactions
with Seller but rather sets forth the procedures to be used in connection with periodic requests for Buyer to enter into Transactions
with Seller. Seller hereby acknowledges that Buyer is under no obligation to agree to enter into, or to enter into, any Transaction
pursuant to this Agreement. All Purchased Mortgage Loans shall exceed or meet the Acquisition Guidelines, and shall be serviced
by Seller or Servicer, as applicable. The aggregate Purchase Price of Purchased Mortgage Loans subject to outstanding Transactions
shall not exceed the Maximum Aggregate Purchase Price.

 

    	- 16 -

    	 

    

 

b.           Seller
shall request that Buyer enter into a Transaction by delivering (i) to Buyer, a Transaction Request (A) one (1) Business
Day prior to the proposed Purchase Date for Mortgage Loans that are not Wet-Ink Mortgage Loans or (B) by 3:30 p.m. (New
York City time) on the proposed Purchase Date for Wet-Ink Mortgage Loans and (ii) to Buyer and Custodian a Mortgage Loan Schedule,
in accordance with the Custodial Agreement. In the event the Mortgage Loan Schedule provided by Seller contains erroneous computer
data, is not formatted properly or the computer fields are otherwise improperly aligned, Buyer shall provide written or electronic
notice to Seller describing such error and Seller shall correct the computer data, reformat or properly align the computer fields
itself and resubmit the Mortgage Loan Schedule as required herein.

 

c.           With
respect to each Exception Mortgage Loan, upon receipt of the Transaction Request, Buyer shall, consistent with this Agreement,
specify the terms for such proposed Transaction, including the Purchase Price, the Pricing Rate, the Market Value, the Asset Value
and the Repurchase Date in respect of such Transaction. The terms thereof shall be set forth in the Purchase Confirmation to be
delivered to Seller on or prior to the Purchase Date.

 

d.           With
respect to each Exception Mortgage Loan, the Purchase Confirmation, together with this Agreement, shall constitute conclusive evidence
of the terms agreed between Buyer and Seller with respect to the Transaction to which the Purchase Confirmation relates, and Seller’s
acceptance of the related proceeds shall constitute Seller’s agreement to the terms of such Purchase Confirmation. It is
the intention of the parties that, with respect to each Exception Mortgage Loan, each Purchase Confirmation shall not be separate
from this Agreement but shall be made a part of this Agreement. In the event of any conflict between this Agreement and, with respect
to each Exception Mortgage Loan, a Purchase Confirmation, the terms of the Purchase Confirmation shall control with respect to
the related Transaction.

 

e.           Upon
the satisfaction of the applicable conditions precedent set forth in Section 10 hereof, all of Seller’s interest in
the relevant Mortgage Loans and related Repurchase Assets shall pass to Buyer on the Purchase Date, against the transfer of the
Purchase Price to Seller. Upon transfer of the Mortgage Loans to Buyer as set forth in this Section and until termination of any
related Transactions as set forth in Sections 4 or 16 of this Agreement, ownership of each Mortgage Loan, including each document
in the related Mortgage File and Records, is vested in Buyer; provided that, prior to the recordation by the Custodian as provided
for in the Custodial Agreement record title in the name of Seller to each Mortgage shall be retained by Seller in trust, for the
benefit of Buyer, for the sole purpose of facilitating the servicing and the supervision of the servicing of the Mortgage Loans.

 

f.            With
respect to each Wet-Ink Mortgage Loan, by no later than the Wet-Ink Delivery Date, Seller shall cause the related Settlement Agent
to deliver to the Custodian the remaining documents in the Mortgage File, as more particularly set forth in the Custodial Agreement.

 

    	- 17 -

    	 

    

 

4.            Repurchase

 

a.           Seller
shall repurchase the related Purchased Mortgage Loans from Buyer on each related Repurchase Date. In addition, Seller may repurchase
Purchased Mortgage Loans without penalty or premium on any date. If Seller intends to make such a repurchase, Seller shall give
one (1) Business Day’s prior written notice to Buyer, designating the Purchased Mortgage Loans to be repurchased. Such obligation
to repurchase exists without regard to any prior or intervening liquidation or foreclosure with respect to any Purchased Mortgage
Loan (but liquidation or foreclosure proceeds received by Buyer shall be applied to reduce the Repurchase Price for such Purchased
Mortgage Loan except as otherwise provided herein). Seller is obligated to repurchase and take physical possession of the Purchased
Mortgage Loans from Buyer or its designee (including the Custodian) at Seller’s expense on the related Repurchase Date.

 

b.           Provided
that no Default shall have occurred and is continuing, and Buyer has received the related Repurchase Price upon repurchase of the
Purchased Mortgage Loans, Buyer agrees to release its ownership interest hereunder in the Purchased Mortgage Loans (including,
the Repurchase Assets related thereto) at the request of Seller. The Purchased Mortgage Loans (including the Repurchase Assets
related thereto) shall be delivered to Seller free and clear of any lien, encumbrance or claim. With respect to payments in full
by the related Mortgagor of a Purchased Mortgage Loan, Seller agrees to immediately remit (or cause to be remitted) to Buyer the
Repurchase Price with respect to such Purchased Mortgage Loan. Buyer agrees to release its ownership interest in Purchased Mortgage
Loans (including the Repurchase Assets related thereto) which have been prepaid in full after receipt of evidence of compliance
with the immediately preceding sentence.

 

c.           In
the event that at any time a Purchased Mortgage Loan causes a violation of the applicable sublimit set forth in clause (vii) of
the definition of Asset Value, Buyer may, in its sole discretion, redesignate such Purchased Mortgage Loan as an Exception Mortgage
Loan. If Buyer does not redesignate such Purchased Mortgage Loan as an Exception Mortgage Loan, and if Seller fails to notify Buyer
within five (5) Business Days following notice or knowledge of such violation that Seller does not want to receive a bid for such
Purchased Mortgage Loan as described below, Buyer or an Affiliate of Buyer may offer to terminate Seller’s right and obligation
to repurchase such Purchased Mortgage Loan by paying Seller a price to be set by Buyer in its sole discretion (a “Bid”).
Seller, within five (5) Business Days of receipt of Buyer’s bid (the “Violation Deadline”) may, in its
sole discretion, either (i) accept Buyer’s bid, terminating Seller’s right and obligation to repurchase such Purchased
Mortgage Loan under this Agreement or (ii) immediately repurchase the Purchased Mortgage Loan at the Repurchase Price. Seller
shall pay Buyer a bid fee equal to $250 (the “Bid Fee”) with respect to each Mortgage Loan on which Buyer or
its Affiliate makes a Bid, regardless of whether the Bid is accepted and such Bid Fee shall be due and payable to Buyer on or before
the Violation Deadline. Any amount paid by Buyer or its Affiliate to terminate Seller’s right and obligation to repurchase
a Purchased Mortgage Loan if a Bid is accepted pursuant to this Section shall be applied by Buyer toward the outstanding Repurchase
Price for the applicable Transaction.

 

    	- 18 -

    	 

    

 

5.            Price
Differential.

 

a.           On
each Business Day that a Transaction is outstanding, the Pricing Rate shall be reset and, unless otherwise agreed, the accrued
and unpaid Price Differential shall be settled in cash on each related Price Differential Payment Date. Two Business Days prior
to the Price Differential Payment Date, Buyer shall give Seller written or electronic notice of the amount of the Price Differential
due on such Price Differential Payment Date. On the Price Differential Payment Date, Seller shall pay to Buyer the Price Differential
for such Price Differential Payment Date (along with any other amounts to be paid pursuant to Sections 7 hereof and Section
3 of the Pricing Side Letter), by wire transfer in immediately available funds.

 

b.           If
Seller fails to pay all or part of the Price Differential by 3:00 p.m. (New York City time) on the related Price Differential
Payment Date, with respect to any Purchased Mortgage Loan, Seller shall be obligated to pay to Buyer (in addition to, and together
with, the amount of such Price Differential) interest on the unpaid Repurchase Price at a rate per annum equal to the Post Default
Rate until the Price Differential is received in full by Buyer.

 

6.            Margin
Maintenance

 

a.           If
at any time the outstanding Purchase Price of any Purchased Mortgage Loan subject to a Transaction is greater than the Asset Value
of such Purchased Mortgage Loan subject to a Transaction (a “Margin Deficit”) and in the case of a Margin Deficit
solely in connection with a mark-to-market adjustment as determined by Buyer in its sole discretion such Margin Deficit is greater
than the Margin Threshold, then Buyer may by written notice (which may be via email) to Seller require Seller to transfer to Buyer
cash in an amount at least equal to the Margin Deficit (such requirement, a “Margin Call”).

 

b.           Notice
delivered pursuant to Section 6.a above may be given by any written or electronic means at the address or email address set
forth in Section 20. Any notice given before 12:00 p.m. (New York City time) on a Business Day shall be met, and the related
Margin Call satisfied, no later than 5:00 p.m. (New York City time) on such Business Day; notice given after 12:00 p.m.
(New York City time) on a Business Day shall be met, and the related Margin Call satisfied, no later than 1:00 p.m. (New York
City time) on the following Business Day (the foregoing time requirements for satisfaction of a Margin Call are referred to as
the “Margin Deadlines”). The failure of Buyer, on any one or more occasions, to exercise its rights hereunder,
shall not change or alter the terms and conditions to which this Agreement is subject or limit the right of Buyer to do so at a
later date. Seller and Buyer each agree that a failure or delay by Buyer to exercise its rights hereunder shall not limit or waive
Buyer’s rights under this Agreement or otherwise existing by law or in any way create additional rights for Seller.

 

c.           In
the event that a Margin Deficit exists with respect to any Purchased Mortgage Loan, Buyer may retain any funds received by it to
which the Seller would otherwise be entitled hereunder, which funds (i) shall be held by Buyer against the related Margin
Deficit and (ii) may be applied by Buyer against the Repurchase Price of any Purchased Mortgage Loan for which the related
Margin Deficit remains otherwise unsatisfied. Notwithstanding the foregoing, the Buyer retains the right, in its sole discretion,
to make a Margin Call in accordance with the provisions of this Section 6.

 

    	- 19 -

    	 

    

 

7.            Income
Payments

 

a.           If
Income is paid in respect of any Purchased Mortgage Loan during the term of a Transaction, such Income shall be the property of
Seller, subject to the rights of Buyer and obligations of Seller hereunder. Upon an Event of Default, Seller shall and shall cause
Servicer to deposit all Income to the account set forth in Section 9, upon receipt thereof, in accordance with Section 12.c
hereof.

 

b.           Provided
no Event of Default has occurred and is continuing, on each Price Differential Payment Date, Seller shall remit to Buyer an amount
equal to the Price Differential out of the interest portion of the Income paid in respect to the Purchased Mortgage Loans for the
preceding month in accordance with Section 5 of this Agreement and Seller shall retain any excess Income.

 

c.           Notwithstanding
any provision to the contrary in this Section 7, immediately upon receipt by Seller of any prepayment of principal in full,
with respect to a Purchased Mortgage Loan, Seller shall remit such amount to Buyer and Buyer shall immediately apply any such amount
received by Buyer to reduce the amount of the Repurchase Price due upon termination of the related Transaction.

 

8.            Security
Interest

 

a.           On
each Purchase Date, Seller hereby sells, assigns and conveys all rights and interests in the Purchased Mortgage Loans identified
on the related Mortgage Loan Schedule and the Repurchase Assets. Although the parties intend that, other than for tax purposes,
all Transactions hereunder be sales and purchases and not loans, in the event any such Transactions are deemed to be loans, and
in any event, Seller hereby pledges to Buyer as security for the performance by Seller of its Obligations and hereby grants, assigns
and pledges to Buyer a fully perfected first priority security interest in the Purchased Mortgage Loans, the Records, and all related
Servicing Rights, the Program Agreements (to the extent such Program Agreements and Seller’s right thereunder relate to the
Purchased Mortgage Loans), any related Take-out Commitments, any Property relating to the Purchased Mortgage Loans, all insurance
policies and insurance proceeds relating to any Purchased Mortgage Loan or the related Mortgaged Property, including, but not limited
to, any payments or proceeds under any related primary insurance, hazard insurance, Income, Interest Rate Protection Agreements,
accounts (including any interest of Seller in escrow accounts) and any other contract rights, instruments, accounts, payments,
rights to payment (including payments of interest or finance charges), general intangibles and other assets relating to the Purchased
Mortgage Loans (including, without limitation, any other accounts) or any interest in the Purchased Mortgage Loans, and any proceeds
(including the related securitization proceeds) and distributions with respect to any of the foregoing and any other property,
rights, title or interests as are specified on a Transaction Request and/or Trust Receipt, in all instances, whether now owned
or hereafter acquired, now existing or hereafter created (collectively, the “Repurchase Assets”).

 

    	- 20 -

    	 

    

 

b.           The
Seller and Guarantor each acknowledge that neither has rights to service the Purchased Mortgage Loans but only has rights as a
party to the current Servicing Agreement. Without limiting the generality of the foregoing and in the event that the Seller or
Guarantor is deemed to retain any residual Servicing Rights, and for the avoidance of doubt, each of Seller and Guarantor grants,
assigns and pledges to Buyer a security interest in the Servicing Rights and proceeds related thereto and in all instances, whether
now owned or hereafter acquired, now existing or hereafter created. The foregoing provision is intended to constitute a security
agreement or other arrangement or other credit enhancement related to this Agreement and Transactions hereunder as defined under
Sections 101(47)(A)(v) and 741(7)(A)(xi) of the Bankruptcy Code.

 

c.           Seller
agrees to execute, deliver and/or file such documents and perform such acts as may be reasonably necessary to fully perfect Buyer’s
security interest created hereby. Furthermore, the Seller hereby authorizes the Buyer to file financing statements relating to
the Repurchase Assets, as the Buyer, at its option, may deem appropriate. The Seller shall pay the filing costs for any financing
statement or statements prepared pursuant to this Section 8.

 

9.            Payment
and Transfer

 

Unless otherwise mutually
agreed in writing, all transfers of funds to be made by Seller hereunder shall be made in Dollars, in immediately available funds,
without deduction, set-off or counterclaim, to Buyer at the following account maintained by Buyer: Account No. 30943739, for the
account of CSFB Buyer/Five Oaks Acquisition Corp.-Inbound Account, Citibank, ABA No. 021 000 089 or such other account
as Buyer shall specify to Seller in writing. Seller acknowledges that it has no rights of withdrawal from the foregoing account.
All Purchased Mortgage Loans transferred by one party hereto to the other party shall be in the case of a purchase by Buyer in
suitable form for transfer or shall be accompanied by duly executed instruments of transfer or assignment in blank and such other
documentation as Buyer may reasonably request. All Purchased Mortgage Loans shall be evidenced by a Trust Receipt. Any Repurchase
Price received by Buyer after 4:00 p.m. (New York City time) shall be deemed received on the next succeeding Business Day.

 

10.         Conditions
Precedent

 

a.           Initial
Transaction. As conditions precedent to the initial Transaction, Buyer shall have received on or before the day of such initial
Transaction the following, in form and substance satisfactory to Buyer and duly executed by Seller, Guarantor and each other party
thereto:

 

(1)         Program
Agreements. The Program Agreements duly executed and delivered by the parties thereto and being in full force and effect, free
of any modification, breach or waiver.

 

    	- 21 -

    	 

    

 

(2)         Security
Interest. Evidence that all other actions necessary or, in the opinion of Buyer, desirable to perfect and protect Buyer’s
interest in the Purchased Mortgage Loans and other Repurchase Assets have been taken, including, without limitation, duly authorized
and filed Uniform Commercial Code financing statements on Form UCC-1.

 

(3)         Organizational
Documents. A certificate of the corporate secretary of each of Seller and Guarantor substantially in the form of Exhibit F
hereto, attaching certified copies of Seller’s and Guarantor’s organizational documents and resolutions approving the
Program Agreements and transactions thereunder (either specifically or by general resolution) and all documents evidencing other
necessary corporate action or governmental approvals as may be required in connection with the Program Agreements.

 

(4)         Good
Standing Certificate. A certified copy of a good standing certificate from the jurisdiction of organization of Seller and Guarantor,
dated as of no earlier than the date ten (10) Business Days prior to the Purchase Date with respect to the initial Transaction
hereunder.

 

(5)         Incumbency
Certificate. An incumbency certificate of the corporate secretary of each of Seller and Guarantor, certifying the names, true
signatures and titles of the representatives duly authorized to request transactions hereunder and to execute the Program Agreements.

 

(6)         Opinion
of Counsel. An opinion of Seller’s and Guarantor’s counsel, in form and substance substantially as set forth in
Exhibit E attached hereto.

 

(7)         Acquisition
Guidelines. A true and correct copy of the Acquisition Guidelines certified by an officer of the Seller.

 

(8)         Fees.
Payment of any fees due to Buyer hereunder.

 

(9)         Insurance.
Evidence that Seller has added Buyer as an additional loss payee under the Seller’s Fidelity Insurance.

 

b.           All
Transactions. The obligation of Buyer to enter into each Transaction pursuant to this Agreement is subject to the following
conditions precedent:

 

(1)         Due
Diligence Review. Without limiting the generality of Section 34 hereof, Buyer shall have completed, to its satisfaction,
its due diligence review of the related Mortgage Loans and Seller and Guarantor.

 

(2)         Required
Documents.

 

(a)          With
respect to each Purchased Mortgage Loan which is not a Wet-Ink Mortgage Loan, the Mortgage File has been delivered to the Custodian
in accordance with the Custodial Agreement.

 

    	- 22 -

    	 

    

 

(b)          With
respect to each Wet-Ink Mortgage Loan, the Wet-Ink Documents have been delivered to Buyer or Custodian, as the case may be, in
accordance with the Custodial Agreement.

 

(3)         Transaction
Documents. Buyer or its designee shall have received on or before the day of such Transaction (unless otherwise specified in
this Agreement) the following, in form and substance satisfactory to Buyer and (if applicable) duly executed:

 

(a)          A
Transaction Request and Mortgage Loan Schedule delivered by Seller pursuant to Section 3.b or 3.c hereof and a Purchase Confirmation
with respect to an Exception Mortgage Loan.

 

(b)          The
Request for Certification and the related Mortgage Loan Schedule delivered by Seller, and the Trust Receipt and Custodial Mortgage
Loan Schedule delivered by Custodian.

 

(c)          Such
certificates, opinions of counsel or other documents as Buyer may reasonably request.

 

(4)         No
Default. No Default or Event of Default shall have occurred and be continuing.

 

(5)         Requirements
of Law. Buyer shall not have determined that the introduction of or a change in any Requirement of Law or in the interpretation
or administration of any Requirement of Law applicable to Buyer has made it unlawful, and no Governmental Authority shall have
asserted that it is unlawful, for Buyer to enter into Transactions with a Pricing Rate based on CSCOF.

 

(6)         Representations
and Warranties. Both immediately prior to the related Transaction and also after giving effect thereto and to the intended
use thereof, the representations and warranties made by Seller and Guarantor in each Program Agreement shall be true, correct and
complete on and as of such Purchase Date in all material respects with the same force and effect as if made on and as of such date
(or, if any such representation or warranty is expressly stated to have been made as of a specific date, as of such specific date).

 

(7)         Electronic
Tracking Agreement. To the extent Seller is selling Mortgage Loans which are registered on the MERS® System, an Electronic
Tracking Agreement entered into, duly executed and delivered by the parties thereto and being in full force and effect, free of
any modification, breach or waiver.

 

(8)         Material
Adverse Change. None of the following shall have occurred and/or be continuing:

 

(a)          Credit
Suisse AG, New York Branch’s corporate bond rating as calculated by S&P or Moody’s has been lowered or downgraded
to a rating below investment grade by S&P or Moody’s;

 

    	- 23 -

    	 

    

 

(b)          an
event or events shall have occurred in the good faith determination of Buyer resulting in the effective absence of a “repo
market” or comparable “lending market” for financing debt obligations secured by mortgage loans or securities
or an event or events shall have occurred resulting in Buyer not being able to finance Purchased Mortgage Loans through the “repo
market” or “lending market” with traditional counterparties at rates which would have been reasonable prior to
the occurrence of such event or events; or

 

(c)          an
event or events shall have occurred resulting in the effective absence of a “securities market” for securities backed
by mortgage loans or an event or events shall have occurred resulting in Buyer not being able to sell securities backed by mortgage
loans at prices which would have been reasonable prior to such event or events; or

 

(d)          there
shall have occurred (i) a material change in financial markets, an outbreak or escalation of hostilities or a material change in
national or international political, financial or economic conditions; (ii) a general suspension of trading on major stock exchanges;
or (iii) a disruption in or moratorium on commercial banking activities or securities settlement services; or

 

(e)          there
shall have occurred a material adverse change in the financial condition of Buyer which affects (or can reasonably be expected
to affect) materially and adversely the ability of Buyer to fund its obligations under this Agreement.

 

11.         Program;
Costs

 

a.           Seller
and Guarantor shall reimburse Buyer for any of Buyer’s reasonable out-of-pocket costs, including due diligence review costs
and reasonable attorney’s fees, incurred by Buyer in determining the acceptability to Buyer of any Mortgage Loans. Seller
and Guarantor shall also pay, or reimburse Buyer if Buyer shall pay, any termination fee, which may be due any Servicer. Seller
and Guarantor shall pay the out-of-pocket fees and expenses of Buyer’s counsel incurred by Buyer in connection with the Program
Agreements. Legal fees for any subsequent amendments to this Agreement or related documents shall be borne by Seller and Guarantor.
Seller and Guarantor shall pay ongoing custodial fees and expenses as set forth in the Custodial Agreement, and any other ongoing
fees and expenses under any other Program Agreement.

 

b.           If
Buyer determines that, due to the introduction of, any change in, or the compliance by Buyer with (i) any eurocurrency reserve
requirement or (ii) the interpretation of any law, regulation or any guideline or request from any central bank or other Governmental
Authority (whether or not having the force of law), there shall be an increase in the cost to Buyer in engaging in the present
or any future Transactions, then each of Seller and Guarantor agrees to pay to Buyer, from time to time, upon demand by Buyer (with
a copy to Custodian) the actual cost of additional amounts as specified by Buyer to compensate Buyer for such increased costs.

 

    	- 24 -

    	 

    

 

c.           With
respect to any Transaction, Buyer may conclusively rely upon, and shall incur no liability to Seller or Guarantor in acting upon,
any request or other communication that Buyer reasonably believes to have been given or made by a person authorized to enter into
a Transaction on Seller’s behalf, whether or not such person is listed on the certificate delivered pursuant to Section 10.a(5)
hereof. In each such case, each of Seller and Guarantor hereby waives the right to dispute Buyer’s record of the terms of
the Purchase Confirmation, request or other communication.

 

d.           Notwithstanding
the assignment of the Program Agreements with respect to each Purchased Mortgage Loan to Buyer, each of Seller and Guarantor agrees
and covenants with Buyer to enforce diligently Seller’s and Guarantor’s rights and remedies set forth in the Program
Agreements.

 

e.           (i)
Any payments made by Seller or Guarantor to Buyer or a Buyer assignee hereunder or any Program Agreement shall be made free and
clear of and without deduction or withholding for any Taxes, except as required by applicable law. If Seller or Guarantor shall
be required by applicable law (as determined in the good faith discretion of the applicable withholding agent) to deduct or withhold
any Tax from any sums payable to Buyer or a Buyer assignee, then (i) the Seller or Guarantor shall make such deductions or withholdings
and pay the full amount deducted to the relevant Governmental Authority in accordance with applicable law; (ii) to the extent the
withheld or deducted Tax is an Indemnified Tax or Other Tax, the sum payable shall be increased as necessary so that after making
all required deductions and withholdings (including deductions and withholdings applicable to additional sums payable under this
Section 11(e)) the Buyer or Buyer assignee receives an amount equal to the sum it would have received had no such deductions or
withholdings been made; and (iii) the Seller shall notify the Buyer or Buyer assignee of the amount paid and shall provide the
original or a certified copy of a receipt issued by the relevant Governmental Authority evidencing such payment within ten (10)
days thereafter. Seller and Guarantor shall otherwise indemnify Buyer, within ten (10) days after demand therefor, for any Indemnified
Taxes or Other Taxes imposed on Buyer (including Indemnified Taxes and Other Taxes imposed or asserted on or attributable to amounts
payable under this Section 11(e)) and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified
Taxes or Other Taxes were correctly or legally asserted by the relevant Governmental Authority.

 

(ii) Buyer
and any Buyer assignee shall deliver to each of the Seller and Guarantor, at the time or times reasonably requested by the Seller
or Guarantor, such properly completed and executed documentation reasonably requested by the Seller or Guarantor as will permit
payments made hereunder to be made without withholding or at a reduced rate of withholding. In addition, Buyer and any Buyer assignee,
if reasonably requested by Seller or Guarantor, shall deliver such other documentation prescribed by applicable law or reasonably
requested by the Seller or Guarantor as will enable the Seller or Guarantor to determine whether or not such Buyer or Buyer assignee
is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in this Section
11, the completion, execution and submission of such documentation (other than such documentation in Section 11(e)((ii)(A), (B)
and (C) below) shall not be required if in the Buyer’s or Buyer’s assignee’s judgement such completion, execution
or submission would subject such Buyer or Buyer assignee to any material unreimbursed cost or expense or would materially prejudice
the legal or commercial position of such Buyer or Buyer assignee. Without limiting the generality of the foregoing, Buyer or Buyer
assignee shall deliver to each of the Seller and Guarantor, to the extent legally entitled to do so:

 

    	- 25 -

    	 

    

 

(A) in the case
of a Buyer or Buyer assignee which is a “U.S. Person” as defined in section 7701(a)(30) of the Code, a properly completed
and executed Internal Revenue Service (“IRS”) Form W-9 certifying that it is not subject to U.S. federal backup withholding
tax;

 

(B) in the case
of a Buyer or Buyer assignee which is not a “U.S. Person” as defined in Code section 7701(a)(30): (I) a properly completed
and executed IRS Form W-8BEN or W-8ECI, as appropriate, evidencing entitlement to a zero percent or reduced rate of U.S. federal
income tax withholding on any payments made hereunder, (II) in the case of such non-U.S. Person claiming exemption from the withholding
of U.S. federal income tax under Code sections 871(h) or 881(c) with respect to payments of “portfolio interest,” a
duly executed certificate (a “U.S. Tax Compliance Certificate”) to the effect that such non-U.S. Person is not (x)
a “bank” within the meaning of Code section 881(c)(3)(A), (y) a “10 percent shareholder” of Seller, Guarantor
or affiliate thereof, within the meaning of Code section 881(c)(3)(B), or (z) a “controlled foreign corporation” described
in Code section 881(c)(3)(C), (III) to the extent such non-U.S. person is not the beneficial owner, executed originals of IRS Form
W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN, a U.S. Tax Compliance Certificate, IRS Form W-9, and/or other certification
documents from each beneficial owner, as applicable; provided that if such non-U.S. person is a partnership and one or more direct
or indirect partners of such non-U.S. person are claiming the portfolio interest exemption, such non-U.S. person may provide a
U.S. Tax Compliance Certificate on behalf of each such direct and indirect partner, and (IV) executed originals of any other form
or supplementary documentation prescribed by law as a basis for claiming exemption from or a reduction in United States federal
withholding tax together with such supplementary documentation as may be prescribed by law to permit the Seller or Guarantor to
determine the withholding or deduction required to be made.

 

(C) if a payment
made to a Buyer or Buyer assignee under this Agreement would be subject to U.S. federal withholding tax imposed by FATCA if such
Buyer or assignee were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section
1471(b) or 1472(b) of the Code, as applicable), such Buyer or assignee shall deliver to the Seller or Guarantor at the time or
times prescribed by law and at such time or times reasonably requested by the Seller such documentation prescribed by applicable
law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by
the Seller as may be necessary for the Seller to comply with their obligations under FATCA or to determine the amount to deduct
and withhold from such payment. Solely for purposes of this Section 11(e), “FATCA” shall include any amendments made
to FATCA after the date of this Agreement.

 

    	- 26 -

    	 

    

 

The applicable
IRS forms referred to above shall be delivered by each applicable Buyer or Buyer assignee on or prior to the date on which such
person becomes a Buyer or Buyer assignee under this Agreement, as the case may be, and upon the obsolescence or invalidity of any
IRS form previously delivered by it hereunder.

 

f.            Any
indemnification payable by Seller or Guarantor to Buyer or any Buyer assignee for Indemnified Taxes or Other Taxes that are imposed
on Buyer or a Buyer assignee, as described in Section 11(e)(i) hereof, shall be paid by Seller or Guarantor within ten (10) days
after demand therefor. A certificate as to the amount of such payment or liability delivered to the Seller or Guarantor by Buyer
or a Buyer assignee shall be conclusive absent manifest error.

 

g.             If
Buyer determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has
been indemnified pursuant to this Section 11 (including by the payment of additional amounts pursuant to this Section 11), it shall
pay to the Seller an amount equal to such refund (but only to the extent of indemnity payments made under this Section with respect
to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of Buyer and without interest (other
than any interest paid by the relevant Governmental Authority with respect to such refund). Seller, upon the request of Buyer,
shall repay to Buyer the amount paid over pursuant to this paragraph (g) (plus any penalties, interest or other charges imposed
by the relevant Governmental Authority) in the event that Buyer is required to repay such refund to such Governmental Authority.
Notwithstanding anything to the contrary in this Section 11, in no event will Buyer be required to pay any amount to Seller pursuant
to this Section 11 the payment of which would place Buyer in a less favorable net after-tax position than the Buyer would have
been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed
and the indemnification payments or additional amounts with respect to such Tax had never been paid. This paragraph shall not be
construed to require Buyer to make available its Tax returns (or any other information relating to its Taxes that it deems confidential)
to Seller or any other Person.

 

h.           If
Buyer requests Seller to pay any Indemnified Taxes, Other Taxes or additional amounts to Buyer or any Governmental Authority for
the account of Buyer pursuant to this Section 11, then Buyer shall, at the written request of Seller, consider, in its sole good
faith discretion, designating a different office for engaging in this transaction or assigning its rights and obligations hereunder
to another of its offices, branches or affiliates, if, in the sole judgment of Buyer, such designation or assignment (i) would
eliminate or reduce amounts payable pursuant to Section 11 in the future, and (ii) would not subject Buyer to any unreimbursed
cost or expense. If Buyer agrees in its sole discretion, to effectuate such designation or assignment, Seller hereby agrees to
pay all reasonable costs and expenses incurred by Buyer in connection with any such designation or assignment. Notwithstanding
anything to the contrary, Buyer shall have no obligation to comply with Seller’s request contemplated herein, and to the
extent that Buyer determines not to do so, regardless of the reason for such determination, Buyer shall have no obligation or liability
to the Seller hereunder.

 

    	- 27 -

    	 

    

 

i.            Each
party’s obligations under this Section 11 shall survive any assignment of rights by, or the replacement of, Buyer or a Buyer
assignee, and the repayment, satisfaction or discharge of all obligations under any Program Agreement.

 

j.            Each
party to this Agreement acknowledges that it is its intent for purposes of U.S. federal, state and local income and franchise taxes
to treat each Transaction as indebtedness of Seller that is secured by the Purchased Mortgage Loans, and the Purchased Mortgage
Loans as owned by Seller in the absence of an Event of Default by Seller. Buyer and Seller agree that they will treat and report
for all tax purposes the Transactions entered into hereunder as one or more loans from Buyer to Seller secured by the Purchased
Mortgage Loans, unless otherwise prohibited by law or upon a final determination by any taxing authority that the Transactions
are not loans for tax purposes.

 

12.         Servicing

 

a.           Seller,
on Buyer’s behalf, shall contract with Servicer to, or if Seller is the Servicer, Seller shall, service the Mortgage Loans
consistent with the degree of skill and care that Seller customarily requires with respect to similar Mortgage Loans owned or managed
by it and in accordance with Accepted Servicing Practices. The Seller and Servicer shall (i) comply with all applicable Federal,
State and local laws and regulations, (ii) maintain all state and federal licenses necessary for it to perform its servicing
responsibilities hereunder and (iii) not impair the rights of Buyer in any Mortgage Loans or any payment thereunder. Buyer
may terminate the servicing of any Mortgage Loan with the then existing Servicer in accordance with Section 12.e hereof.

 

b.           Seller
shall and shall cause the Servicer to hold or cause to be held all escrow funds collected by Seller and Servicer with respect to
any Purchased Mortgage Loans in trust accounts and shall apply the same for the purposes for which such funds were collected.

 

c.           Seller
shall and shall cause the Servicer to deposit all collections received by Servicer on the Purchased Mortgage Loans in the account
set forth in Section 9 upon an Event of Default.

 

d.           In
the event there is a third party Servicer and upon Buyer’s request, Seller shall provide promptly to Buyer a Servicer Notice
addressed to and agreed to by the Servicer of the related Purchased Mortgage Loans, advising such Servicer of such matters as Buyer
may reasonably request, including, without limitation, recognition by the Servicer of Buyer’s interest in such Purchased
Mortgage Loans and the Servicer’s agreement that upon receipt of notice of an Event of Default from Buyer, it will follow
the instructions of Buyer with respect to the Purchased Mortgage Loans and any related Income with respect thereto.

 

    	- 28 -

    	 

    

 

e.           Upon
the occurrence of an Event of Default hereunder or a material default under the Servicing Agreement, Buyer shall have the right
to immediately terminate the Servicer’s right to service the Purchased Mortgage Loans under the Servicing Agreement without
payment of any penalty or termination fee. Seller and the Servicer shall cooperate in transferring the servicing of the Purchased
Mortgage Loans to a successor servicer appointed by Buyer in its sole discretion.

 

f.            If
Seller should discover that, for any reason whatsoever, Seller or any entity responsible to Seller for managing or servicing any
such Purchased Mortgage Loan has failed to perform fully Seller’s obligations under the Program Agreements or any of the
obligations of such entities with respect to the Purchased Mortgage Loans, Seller shall promptly notify Buyer.

 

g.           For
the avoidance of doubt, the Seller retains no economic rights to the servicing of the Purchased Mortgage Loans other than the Seller’s
rights under the Servicing Agreement. As such, the Seller expressly acknowledges that the Purchased Mortgage Loans are sold to
Buyer on a “servicing released” basis with such servicing retained by the Servicer.

 

13.         Representations
and Warranties

 

a.           Each
of Seller and Guarantor represents and warrants to Buyer as of the date hereof and as of each Purchase Date for any Transaction
that:

 

(1)         Seller
and Guarantor Existence. Seller has been duly organized and is validly existing as a corporation in good standing under the
laws of the State of Delaware. Guarantor has been duly organized and is validly existing as a corporation in good standing under
the laws of the State of Maryland.

 

(2)         Licenses.
Seller is duly licensed or Seller is otherwise qualified and Guarantor is qualified in each jurisdiction in which it transacts
business for the business which it conducts and is not in default of any applicable federal, state or local laws, rules and regulations
unless, in either instance, the failure to take such action is not reasonably likely (either individually or in the aggregate)
to cause a Material Adverse Effect and is not in default of such state’s applicable laws, rules and regulations. Seller has
the requisite power and authority and legal right to originate and purchase Mortgage Loans (as applicable) and to own, sell and
grant a lien on all of its right, title and interest in and to the Mortgage Loans, and to execute and deliver, engage in the transactions
contemplated by, and perform and observe the terms and conditions of, each Program Agreement and any Transaction Request.

 

(3)         Power.
Each of Seller and Guarantor has all requisite corporate or other power, and has all governmental licenses, authorizations, consents
and approvals necessary to own its assets and carry on its business as now being or as proposed to be conducted, except where the
lack of such licenses, authorizations, consents and approvals would not be reasonably likely to have a Material Adverse Effect.

 

    	- 29 -

    	 

    

 

(4)         Due
Authorization. Each of Seller and Guarantor has all necessary corporate or other power, authority and legal right to execute,
deliver and perform its obligations under each of the Program Agreements to which it is a party. Each Program Agreement to which
Seller is a party has been (or, in the case of Program Agreements not yet executed, will be) duly authorized, executed and delivered
by Seller, all requisite or other corporate action having been taken, and each is valid, binding and enforceable against Seller
in accordance with its terms except as such enforcement may be affected by bankruptcy, by other insolvency laws, or by general
principles of equity. Each Program Agreement to which Guarantor is a party has been (or, in the case of Program Agreements not
yet executed, will be) duly authorized, executed and delivered by Guarantor, all requisite or other corporate action having been
taken, and each is valid, binding and enforceable against Guarantor in accordance with its terms except as such enforcement may
be affected by bankruptcy, by other insolvency laws, or by general principles of equity.

 

(5)         Financial
Statements. The Guarantor has heretofore furnished to Buyer a copy of (a) its consolidated balance sheet and the consolidated
balance sheets of its consolidated Subsidiaries for the fiscal year of the Guarantor ended December 31, 2012 and the related consolidated
statements of income and retained earnings and of cash flows for the Guarantor and its consolidated Subsidiaries for such fiscal
year, setting forth in each case in comparative form the figures for the previous year, with the opinion thereon of Grant Thornton
and (b) its consolidated balance sheet and the consolidated balance sheets of its consolidated Subsidiaries for the quarterly
fiscal periods of the Guarantor ended March 31, 2013, June 30, 2013 and September 30, 2013 and the related consolidated statements
of income and retained earnings and of cash flows for the Guarantor and its consolidated Subsidiaries for such quarterly fiscal
periods, setting forth in each case in comparative form the figures for the previous year. All such financial statements are complete
and correct and fairly present, in all material respects, the consolidated financial condition of the Guarantor and its Subsidiaries
and the consolidated results of their operations as at such dates and for such fiscal periods, all in accordance with GAAP (other
than monthly financial statements solely with respect to footnotes, year-end adjustments and cash flow statements) applied on a
consistent basis. Since December 31, 2012, there has been no material adverse change in the consolidated business, operations or
financial condition of the Guarantor and its consolidated Subsidiaries taken as a whole from that set forth in said financial statements
nor is Seller aware of any state of facts which (with notice or the lapse of time) would or could result in any such material adverse
change. The Guarantor has, on the date of the statements delivered pursuant to this Section (the “Statement Date”)
no liabilities, direct or indirect, fixed or contingent, matured or unmatured, known or unknown, or liabilities for taxes, long-term
leases or unusual forward or long-term commitments not disclosed by, or reserved against in, said balance sheet and related statements.

 

(6)         Event
of Default. There exists no Event of Default under Section 15.b hereof.

 

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(7)         Solvency.
Each of Seller and Guarantor is solvent and will not be rendered insolvent by any Transaction and, after giving effect to such
Transaction, will not be left with an unreasonably small amount of capital with which to engage in its business. Neither Seller
nor Guarantor intends to incur, nor does it believe that it has incurred, debts beyond its ability to pay such debts as they mature
and is not contemplating the commencement of insolvency, bankruptcy, liquidation or consolidation proceedings or the appointment
of a receiver, liquidator, conservator, trustee or similar official in respect of such entity or any of its assets. The amount
of consideration being received by Seller upon the sale of the Purchased Mortgage Loans to Buyer constitutes reasonably equivalent
value and fair consideration for such Purchased Mortgage Loans. Seller is not transferring any Purchased Mortgage Loans with any
intent to hinder, delay or defraud any of its creditors.

 

(8)         No
Conflicts. The execution, delivery and performance by each of Seller and Guarantor of each Program Agreement to which it is
a party do not conflict with any term or provision of the formation documents or by-laws of Seller or Guarantor or any law, rule,
regulation, order, judgment, writ, injunction or decree applicable to Seller or Guarantor of any court, regulatory body, administrative
agency or governmental body having jurisdiction over Seller or Guarantor, which conflict would have a Material Adverse Effect and
will not result in any violation of any such mortgage, instrument, agreement or obligation to which Seller or Guarantor is a party.

 

(9)         True
and Complete Disclosure. All information, reports, exhibits, schedules, financial statements or certificates of Seller, Guarantor
or any Affiliate thereof or any of their officers furnished or to be furnished to Buyer in connection with the initial or any ongoing
due diligence of Seller, Guarantor or any Affiliate or officer thereof, and the negotiation, preparation, or delivery of the Program
Agreements are true and complete and do not omit to disclose any material facts necessary to make the statements herein or therein,
in light of the circumstances in which they are made, not misleading. All financial statements have been prepared in accordance
with GAAP (other than monthly financial statements solely with respect to footnotes, year-end adjustments and cash flow statements).

 

(10)        Approvals.
No consent, approval, authorization or order of, registration or filing with, or notice to any Governmental Authority or court
is required under applicable law in connection with the execution, delivery and performance by Seller or Guarantor of each Program
Agreement to which it is a party.

 

(11)        Litigation.
There is no action, proceeding or investigation pending with respect to which either Seller or Guarantor has received service of
process or, Seller’s or Guarantor’s knowledge threatened in writing against it before any court, administrative agency
or other tribunal (A) asserting the invalidity of any Program Agreement, (B) seeking to prevent the consummation of any
of the transactions contemplated any Program Agreement, (C) making a claim individually in an amount greater than $250,000
or in an aggregate amount greater than $500,000, (D) making a claim for an unspecified amount of damages, (E) which requires
filing with the Securities and Exchange Commission in accordance with the 1934 Act or any rules thereunder or (F) which might
materially and adversely affect the validity of the Mortgage Loans or the performance by it of its obligations under, or the validity
or enforceability of any Program Agreement.

 

    	- 31 -

    	 

    

 

(12)        Material
Adverse Change. There has been no Material Adverse Effect since the date set forth in the most recent financial statements
supplied to Buyer as determined by Buyer in its sole good faith discretion.

 

(13)        Ownership.
Upon payment of the Purchase Price and the filing of the financing statement and delivery of the Mortgage Files to the Custodian
and the Custodian’s receipt of the related Request for Certification, Buyer shall become the sole owner of the Purchased
Mortgage Loans and related Repurchase Assets, free and clear of all liens and encumbrances.

 

(14)        Acquisition
Guidelines. The Acquisition Guidelines provided to Buyer are the true and correct Acquisition Guidelines of the Seller.

 

(15)        Taxes.
Seller, Guarantor and its Subsidiaries have timely filed all federal, state and other material tax returns that are required to
be filed by them and have paid all taxes, except for any such taxes as are being appropriately contested in good faith by appropriate
proceedings diligently conducted and with respect to which adequate reserves have been provided. The charges, accruals and reserves
on the books of Seller, Guarantor and its Subsidiaries in respect of taxes and other governmental charges are, in the opinion of
Seller or Guarantor, as applicable, adequate.

 

(16)        Investment
Company. Neither Seller, Guarantor nor any of their Subsidiaries is an “investment company”, or a company “controlled”
by an “investment company,” within the meaning of the Investment Company Act of 1940, as amended.

 

(17)        Chief
Executive Office; Jurisdiction of Organization. On the Effective Date, Seller’s chief executive office, is, and has been,
located at 540 Madison Avenue, 19th Floor, New York, New York 10022. On the Effective Date, Seller’s jurisdiction
of organization is Delaware. Seller shall provide Buyer with thirty days advance notice of any change in Seller’s principal
office or place of business, legal name or jurisdiction. Seller has no trade name. During the preceding five years, Seller has
not been known by or done business under any other name, corporate or fictitious, and has not filed or had filed against it any
bankruptcy receivership or similar petitions nor has it made any assignments for the benefit of creditors.

 

(18)        Location
of Books and Records. The location where Seller keeps its books and records, including all computer tapes and records relating
to the Purchased Mortgage Loans and the related Repurchase Assets is its chief executive office.

 

(19)        Reserved.

 

(20)        ERISA.
Each Plan to which Seller, Guarantor or its Subsidiaries make direct contributions, and, to the knowledge of Seller, each other
Plan and each Multiemployer Plan, is in compliance in all material respects with, and has been administered in all material respects
in compliance with, the applicable provisions of ERISA, the Code and any other Federal or State law.

 

    	- 32 -

    	 

    

 

(21)        Adverse
Selection. Seller has not selected the Purchased Mortgage Loans in a manner so as to adversely affect Buyer’s interests.

 

(22)        Agreements.
Neither Seller nor any Subsidiary of Seller is a party to any agreement, instrument, or indenture or subject to any restriction
materially and adversely affecting its business, operations, assets or financial condition, except as disclosed in the financial
statements described in Section 13.a(5) hereof. Neither Seller nor any Subsidiary of Seller is in default in the performance,
observance or fulfillment of any of the obligations, covenants or conditions contained in any agreement, instrument, or indenture
which default is reasonably likely to have a material adverse effect on the business, operations, properties, or financial condition
of Seller as a whole. No holder of any indebtedness of Seller or of any of its Subsidiaries has given notice of any asserted default
thereunder.

 

(23)        Other
Indebtedness. All Indebtedness in excess of $25,000,000 (other than Indebtedness evidenced by this Agreement) of Seller existing
on the date hereof is listed on Exhibit H hereto (the “Existing Indebtedness”).

 

(24)        Reserved.

 

(25)        No
Reliance. Each of Seller and Guarantor has made its own independent decisions to enter into the Program Agreements to which
it is a party and each Transaction and as to whether such Transaction is appropriate and proper for it based upon its own judgment
and upon advice from such advisors (including without limitation, legal counsel and accountants) as it has deemed necessary. Neither
Seller nor Guarantor is relying upon any advice from Buyer as to any aspect of the Transactions, including without limitation,
the legal, accounting or tax treatment of such Transactions.

 

(26)        Plan
Assets. Neither Seller nor Guarantor is an employee benefit plan as defined in Section 3 of Title I of ERISA, or
a plan described in Section 4975(e)(1) of the Code, and the Purchased Mortgage Loans are not “plan assets” within
the meaning of 29 CFR §2510.3 101 as amended by Section 3(42) of ERISA, in the Seller’s hands, and transactions
by or with Seller or Guarantor are not subject to any state or local statute regulating investments or fiduciary obligations with
respect to governmental plans within the meaning of Section 3(32) of ERISA.

 

(27)        No
Prohibited Persons. Neither the Seller nor Guarantor nor any of their Affiliates, officers, directors, partners or members,
is an entity or person (or to the Seller’s or Guarantor’s knowledge, owned or controlled by an entity or person): (i) that
is listed in the Annex to, or is otherwise subject to the provisions of Executive Order 13224 issued on September 24,
2001 (“EO13224”); (ii) whose name appears on the United States Treasury Department’s Office of Foreign
Assets Control (“OFAC”) most current list of “Specifically Designated National and Blocked Persons”
(which list may be published from time to time in various mediums including, but not limited to, the OFAC website, http:www.treas.gov/ofac/t11sdn.pdf);
(iii) who commits, threatens to commit or supports “terrorism”, as that term is defined in EO13224; or (iv) who
is otherwise affiliated with any entity or person listed above (any and all parties or persons described in clauses (i) through
(iv) above are herein referred to as a “Prohibited Person”).

 

    	- 33 -

    	 

    

 

(28)        Servicing.
Seller has adequate financial standing, servicing facilities, procedures and experienced personnel necessary for the sound servicing
of mortgage loans of the same types as may from time to time constitute Mortgage Loans and in accordance with Accepted Servicing
Practices.

 

b.           With
respect to every Purchased Mortgage Loan, each of Seller and Guarantor jointly and severally represents and warrants to Buyer as
of the applicable Purchase Date for any Transaction and each date thereafter that each representation and warranty set forth on
Schedule 1 is true and correct.

 

c.           The
representations and warranties set forth in this Agreement shall survive transfer of the Purchased Mortgage Loans to Buyer and
shall continue for so long as the Purchased Mortgage Loans are subject to this Agreement. Upon discovery by Seller, Servicer or
Buyer of any breach of any of the representations or warranties set forth in this Agreement, the party discovering such breach
shall promptly give notice of such discovery to the others. Buyer has the right to require, in its sole good faith discretion,
Seller to repurchase within three (3) Business Days (other than a breach of clause (bbb) on Schedule 1, which shall be one (1)
Business Day) after receipt of notice from Buyer any Purchased Mortgage Loan for which a breach of one or more of the representations
and warranties referenced in Section 13.b exists and which breach has a material adverse effect on the value of such Mortgage
Loan or the interests of Buyer.

 

14.         Covenants

 

Each of Seller and Guarantor
covenants with Buyer that, during the term of this Agreement:

 

a.           Litigation.
Seller and Guarantor, as applicable, will promptly, and in any event within ten (10) days after service of process on any of the
following, give to Buyer notice of all litigation, actions, suits, arbitrations, investigations (including, without limitation,
any of the foregoing which are threatened in writing or pending) or other legal or arbitrable proceedings affecting Seller, Guarantor
or any of their Subsidiaries or affecting any of the Property of any of them before any Governmental Authority that (i) questions
or challenges the validity or enforceability of any of the Program Agreements or any action to be taken in connection with the
transactions contemplated hereby, (ii) makes a claim individually in an amount greater than $250,000 or in an aggregate amount
greater than $500,000, (iii) makes a claim for an unspecified amount of damages, or (iv) which, individually or in the aggregate,
if adversely determined, could be reasonably likely to have a Material Adverse Effect. Seller and Guarantor, as applicable, will
promptly provide notice of any judgment, which with the passage of time, is reasonably likely to result in an Event of Default
hereunder.

 

    	- 34 -

    	 

    

 

b.           Prohibition
of Fundamental Changes. Seller shall not enter into any transaction of merger or consolidation or amalgamation, or liquidate,
wind up or dissolve itself (or suffer any liquidation, winding up or dissolution) or sell all or substantially all of its assets;
provided, that Seller may merge or consolidate with (a) any wholly owned subsidiary of Seller, or (b) any other Person
if Seller is the surviving corporation; and provided further, that if after giving effect thereto, no Default would exist hereunder.

 

c.           Servicing.
Seller shall not cause the Mortgage Loans to be serviced by any Servicer other than a Servicer expressly approved in writing by
Buyer, which approval shall be deemed granted by Buyer with respect to Seller with the execution of this Agreement.

 

d.           Insurance.
The Seller or Guarantor shall continue to maintain, for Seller and its Subsidiaries, Fidelity Insurance in an aggregate amount
at least equal to $500,000. The Seller or Guarantor shall maintain, for Seller and its Subsidiaries, Fidelity Insurance in respect
of its officers, employees and agents, with respect to any claims made in connection with all or any portion of the Repurchase
Assets. The Seller or Guarantor shall notify the Buyer of any material change in the terms of any such Fidelity Insurance.

 

e.           No
Adverse Claims. Seller warrants and will defend the right, title and interest of Buyer in and to all Purchased Mortgage Loans
and the related Repurchase Assets against all adverse claims and demands.

 

f.            Assignment.
Except as permitted herein, neither Seller nor any Servicer shall sell, assign, transfer or otherwise dispose of, or grant any
option with respect to, or pledge, hypothecate or grant a security interest in or lien on or otherwise encumber (except pursuant
to the Program Agreements), any of the Purchased Mortgage Loans or any interest therein, provided that this Section shall not prevent
any transfer of Purchased Mortgage Loans in accordance with the Program Agreements.

 

g.           Security
Interest. Seller shall do all things necessary to preserve the Purchased Mortgage Loans and the related Repurchase Assets so
that they remain subject to a first priority perfected security interest hereunder. Without limiting the foregoing, Seller will
comply with all rules, regulations and other laws of any Governmental Authority and cause the Purchased Mortgage Loans or the related
Repurchase Assets to comply with all applicable rules, regulations and other laws. Seller will not allow any default for which
Seller is responsible to occur under any Purchased Mortgage Loans or the related Repurchase Assets or any Program Agreement and
Seller shall fully perform or cause to be performed when due all of its obligations under any Purchased Mortgage Loans or the related
Repurchase Assets and any Program Agreement.

 

    	- 35 -

    	 

    

 

h.           Records.

 

(1)         Seller
shall collect and maintain or cause to be collected and maintained all Records relating to the Purchased Mortgage Loans in accordance
with industry custom and practice for assets similar to the Purchased Mortgage Loans, including those maintained pursuant to the
preceding subparagraph, and all such Records shall be in Custodian’s possession unless Buyer otherwise approves. Except in
accordance with the Custodial Agreement, Seller will not allow any such papers, records or files that are an original or an only
copy to leave Custodian’s possession, except for individual items removed in connection with servicing a specific Mortgage
Loan, in which event Seller will obtain or cause to be obtained a receipt from a financially responsible person for any such paper,
record or file. Seller or the Servicer of the Purchased Mortgage Loans will maintain all such Records not in the possession of
Custodian in good and complete condition in accordance with industry practices for assets similar to the Purchased Mortgage Loans
and preserve them against loss.

 

(2)         For
so long as Buyer has an interest in or lien on any Purchased Mortgage Loan, Seller will hold or cause to be held all related Records
in trust for Buyer. Seller shall notify, or cause to be notified, every other party holding any such Records of the interests and
liens in favor of Buyer granted hereby.

 

(3)         Upon
reasonable advance notice from Custodian or Buyer, during the course of normal business hours Seller shall (x) make any and
all such Records available to Custodian or Buyer to examine any such Records, either by its own officers or employees, or by agents
or contractors, or both, and make copies of all or any portion thereof, and (y) permit Buyer or its authorized agents to discuss
the affairs, finances and accounts of Seller with its chief operating officer and chief financial officer and to discuss the affairs,
finances and accounts of Seller with its independent certified public accountants.

 

i.            Books.
Seller shall keep or cause to be kept in reasonable detail books and records of account of its assets and business and shall clearly
reflect therein the transfer of Purchased Mortgage Loans to Buyer.

 

j.            Approvals.
Seller shall maintain all licenses, permits or other approvals necessary for Seller to conduct its business and to perform its
obligations under the Program Agreements, and Seller shall conduct its business strictly in accordance with applicable law.

 

k.          Material
Change in Business. Neither Seller nor Guarantor shall make any material change in the nature of its business as carried on
at the date hereof.

 

l.            Acquisition
Guidelines. Without the prior written consent of Buyer, Seller shall not materially amend or otherwise modify the Acquisition
Guidelines. Without limiting the foregoing, in the event that Seller makes any material amendment or modification to the Acquisition
Guidelines, Seller shall promptly deliver to Buyer a complete copy of the amended or modified Acquisition Guidelines.

 

m.         Distributions.
Guarantor shall not pay any dividends greater than its Net Income in any given calendar year, other than in accordance with regulations
governing REITs. If a Default or an Event of Default has occurred and is continuing, neither Seller nor Guarantor shall pay any
dividends with respect to any capital stock or other equity interests in such entity, whether now or hereafter outstanding, or
make any other distribution in respect thereof, either directly or indirectly, whether in cash or property or in obligations of
Seller or Guarantor.

 

    	- 36 -

    	 

    

 

n.           Applicable
Law. Seller and Guarantor shall comply with the requirements of all applicable laws, rules, regulations and orders of any Governmental
Authority.

 

o.           Existence.
Seller and the Guarantor shall preserve and maintain their legal existence and all of their material rights, privileges, licenses
and franchises.

 

p.           Chief
Executive Office; Jurisdiction of Organization. Seller shall not move its chief executive office from the address referred
to in Section 13.a(17) or change its jurisdiction of organization from the jurisdiction referred to in Section 13.a(17)
unless it shall have provided Buyer 30 days’ prior written notice of such change.

 

q.           Taxes.
(i) Seller and Guarantor shall timely file all U.S. federal, state and other material tax returns that are required to be filed
by them and shall timely pay and discharge all U.S. federal, state and other material taxes, assessments and governmental charges
or levies imposed on it or on its income or profits or on any of its property prior to the date on which penalties attach thereto,
except for any such tax, assessment, charge or levy the payment of which is being contested in good faith and by proper proceedings
and against which adequate reserves are being maintained and (ii) Guarantor will not incur or anticipate incurring (x) the tax
imposed under Section 857(b)(5) of the Code as a result of Guarantor’s failure to meet the requirements of Sections 856(c)(2)
or (3) of the Code, (y) the tax imposed under Section 857(b)(6) of the Code on the net income derived from prohibited transactions
or (z) the 4% excise tax imposed under Section 4981 of the Code on the undistributed income of a real estate investment trust,
in each case in an amount in excess of $1,000,000.

 

r.            Transactions
with Affiliates. Seller will not enter into any transaction, including, without limitation, any purchase, sale, lease or exchange
of property or the rendering of any service, with any Affiliate unless such transaction is (a) otherwise permitted under the
Program Agreements, (b) in the ordinary course of Seller’s business and (c) upon fair and reasonable terms no less
favorable to Seller than it would obtain in a comparable arm’s length transaction with a Person which is not an Affiliate,
or make a payment that is not otherwise permitted by this Section to any Affiliate.

 

s.           Guarantees.
Seller shall not create, incur, assume or suffer to exist any Guarantees, except (i) to the extent reflected in Seller’s
financial statements or notes thereto or (ii) to the extent the aggregate Guarantees of Seller do not exceed $100,000.

 

t.            Indebtedness.
Seller shall not incur any additional material Indebtedness, including without limitation, any Indebtedness relating to any mortgage
servicing rights or corporate or servicing advances, (other than (i) the Existing Indebtedness in amounts not to exceed the
amounts specified on Exhibit H hereto and (ii) usual and customary accounts payable for a mortgage company) without
the prior written consent of Buyer.

 

    	- 37 -

    	 

    

 

u.           Hedging.
Seller has entered into Interest Rate Protection Agreements with respect to the Purchased Mortgage Loans, having terms with respect
to protection against fluctuations in interest rates acceptable to Buyer in its sole discretion.

 

v.           True
and Correct Information. All information, reports, exhibits, schedules, financial statements or certificates of Seller, Guarantor,
any Affiliate thereof or any of their officers furnished to Buyer hereunder and during Buyer’s diligence of Seller and Guarantor
are and will be true and complete and do not omit to disclose any material facts necessary to make the statements herein or therein,
in light of the circumstances in which they are made, not misleading. All required financial statements, information and reports
delivered by Seller to Buyer pursuant to this Agreement shall be prepared in accordance with U.S. GAAP, or, if applicable, to SEC
filings, the appropriate SEC accounting regulations.

 

w.          Take-out
Payments. With respect to each Committed Mortgage Loan, Seller shall arrange that all payments under the related Take-out Commitment
shall be paid directly to Buyer at the account set forth in Section 9 hereof, or to an account approved by Buyer in writing
prior to such payment.

 

x.          Plan
Assets. Neither Seller nor Guarantor shall be an employee benefit plan as defined in Section 3 of Title I of ERISA,
or a plan described in Section 4975(e)(1) of the Code and the Seller shall not use “plan assets” within the meaning
of 29 CFR §2510.3 101, as amended by Section 3(42) of ERISA to engage in this Agreement or any Transaction hereunder.
Transactions by or with Seller or Guarantor shall not be subject to any state or local statute regulating investments of or fiduciary
obligations with respect to governmental plans within the meaning of Section 3(32) of ERISA.

 

y.          Sharing
of Information. The Seller shall allow the Buyer to exchange information (subject to applicable law) related to the Seller
and the Transaction hereunder with third party lenders and the Seller shall permit each third party lender to share such information
with the Buyer.

 

z.          Quality
Control. Seller shall maintain or shall cause a third-party to maintain an internal quality control program that verifies,
on a regular basis, the existence and accuracy of all legal documents, credit documents, property appraisals, and underwriting
decisions related to Mortgage Loans and shall provide a report on the results of such quality control program in the Officer’s
Compliance Certificate provided pursuant to Section 17.b(3). Such program shall be capable of evaluating and monitoring the
overall quality of Seller’s loan production and servicing activities. Such program shall (i) ensure that the Mortgage
Loans are originated and serviced in accordance with prudent mortgage banking practices and accounting principles; (ii) guard
against dishonest, fraudulent, or negligent acts; and (iii) guard against errors and omissions by officers, employees, or
other authorized persons.

 

aa.         Financial
Covenants. Guarantor shall at all times comply with all financial covenants and/or financial ratios set forth in Section 2
of the Pricing Side Letter.

 

    	- 38 -

    	 

    

 

15.         Events
of Default

 

Each of
the following shall constitute an “Event of Default” hereunder:

 

a.           Payment
Failure. Failure of Seller to (i) make any payment of the Repurchase Price or any other sum (other than those described
in clauses (ii) and (iii) below) which has become due and payable, on a Repurchase Date or otherwise, whether by acceleration or
otherwise, under the terms of this Agreement, any other warehouse and security agreement or any other document evidencing or securing
Indebtedness of Seller to Buyer or to any Affiliate of Buyer, (ii) cure any Margin Deficit when due pursuant to Section 6
hereof, or (iii) make any payment of Price Differential on a Price Differential Payment Date and such failure continues for more
than two (2) Business Days.

 

b.           Cross
Default. Seller, Guarantor or any of their Affiliates shall be in default under (i) any Indebtedness, in the aggregate,
in excess of $1,000,000 of Seller or $5,000,000 of Guarantor or of such Affiliate, in each case, which default after giving effect
to any applicable notice requirements or grace period (1) involves the failure to pay a matured obligation, or (2) permits
the acceleration of the maturity of obligations by any other party to or beneficiary with respect to such Indebtedness, or (ii) any
other contract or contracts, in the aggregate in excess of $1,000,000 to which Seller, Guarantor or such Affiliate is a party which
default after giving effect to any applicable notice requirements or grace period (1) involves the failure to pay a matured
obligation, or (2) permits the acceleration of the maturity of obligations by any other party to or beneficiary of such contract.

 

c.           Assignment.
Assignment or attempted assignment by Seller or Guarantor of this Agreement or any rights hereunder without first obtaining the
specific written consent of Buyer, or the granting by Seller of any security interest, lien or other encumbrances on any Purchased
Mortgage Loans to any person other than Buyer.

 

d.           Insolvency.
An Act of Insolvency shall have occurred with respect to Seller, Guarantor or any Affiliate.

 

e.           Material
Adverse Change. The occurrence of a Material Adverse Effect.

 

f.            Breach
of Financial Representation or Covenant or Obligation. A breach by Seller or Guarantor of any of the representations, warranties
or covenants or obligations set forth in Sections 13.a(1), 13.a(7), 13.a(12), 13.a(23), 14.b, 14.m, 14.o, 14.s, 14.t, 14.w,
14.w, 14.aa or 14.bb of this Agreement.

 

g.           Breach
of Financial Reporting. The failure of Guarantor to deliver (i) the financial statements required pursuant to Section 17.b(1)
or 17.b17.b(1) hereof within two (2) Business Days of Buyer’s notice to Guarantor of the failure thereof or (ii) an oral
estimate of Guarantor’s shareholder equity within one (1) Business Day of Buyer’s request thereof.

 

    	- 39 -

    	 

    

 

h.           Breach
of Non-Financial Representation or Covenant. A breach by Seller or Guarantor of any other material representation, warranty
or covenant set forth in this Agreement (and not otherwise specified in Section 15.f or 15.g above), if such breach is not
cured within five (5) Business Days of Seller’s or Guarantor’s knowledge thereof (other than the representations and
warranties set forth in Schedule 1, which shall be considered solely for the purpose of determining the Asset Value, the existence
of a Margin Deficit and the obligation to repurchase such Mortgage Loan unless such party shall have made any such representations
and warranties with knowledge that they were materially false or misleading at the time made, then such breach shall constitute
an immediate Event of Default and Seller shall have no cure right hereunder).

 

i.            Change
of Control. The occurrence of a Change in Control.

 

j.            Failure
to Transfer. Seller fails to transfer the Purchased Mortgage Loans to Buyer on the applicable Purchase Date (provided Buyer
has tendered the related Purchase Price).

 

k.           Judgment.
A final judgment or judgments for the payment of money in excess of $500,000 in the aggregate shall be rendered against the Seller
or any of its Affiliates by one or more courts, administrative tribunals or other bodies having jurisdiction and the same shall
not be satisfied, discharged (or provision shall not be made for such discharge) or bonded, or a stay of execution thereof shall
not be procured, within 30 days from the date of entry thereof.

 

l.            Government
Action. Any Governmental Authority or any person, agency or entity acting or purporting to act under governmental authority
shall have taken any action to condemn, seize or appropriate, or to assume custody or control of, all or any substantial part of
the Property of Seller, Guarantor or any Affiliate thereof, or shall have taken any action to displace the management of Seller,
Guarantor or any Affiliate thereof or to curtail its authority in the conduct of the business of Seller, Guarantor or any Affiliate
thereof, or takes any action in the nature of enforcement to remove, limit or restrict the approval of Seller, Guarantor or Affiliate
as an issuer, buyer or a seller/servicer of Mortgage Loans or securities backed thereby, and such action provided for in this Section 15.l
shall not have been discontinued or stayed within five (5) Business Days.

 

m.           Inability
to Perform. An officer of Seller or Guarantor shall admit in writing its inability to, or its intention not to, perform any
of Seller’s Obligations hereunder or Guarantor’s obligations hereunder or under the Guaranty.

 

n.           Security
Interest. This Agreement shall for any reason cease to create a valid, first priority security interest in any material portion
of the Purchased Mortgage Loans or other Repurchase Assets purported to be covered hereby.

 

o.           Financial
Statements. Seller’s or Guarantor’s audited annual financial statements or the notes thereto or other opinions
or conclusions stated therein shall be qualified or limited by reference to the status of Seller or Guarantor as a “going
concern” or a reference of similar import.

 

    	- 40 -

    	 

    

 

p.           Guarantor
Breach. A breach by Guarantor of any material representation, warranty or covenant set forth in the Guaranty or any other Program
Agreement, any “event of default” by Guarantor under the Guaranty, any repudiation of the Guaranty by the Guarantor,
or if the Guaranty is not enforceable against the Guarantor.

 

q.           Servicer
Default. There is a breach by a Servicer of the applicable Servicing Agreement and Seller has not appointed a successor servicer
reasonably acceptable to Buyer within thirty (30) days.

 

r.            Shareholder
Equity Notification Trigger. Guarantor fails to notify Buyer as soon as practicable, and in any event within one (1) Business
Day following the relevant date of determination, of a Shareholder Equity Notification Trigger.

 

s.           Failure
to Maintain Status as a REIT. Guarantor shall fail to maintain its status as a REIT.

 

t.            Investment
Manager. The Investment Manager shall cease to act at any time as the investment manager of Guarantor in the same or similar
capacity as it does as of the date of this Agreement.

 

An Event of Default shall
be deemed to be continuing unless expressly waived by Buyer in writing.

 

16.         Remedies
Upon Default

 

In the event that an
Event of Default shall have occurred:

 

a.           Buyer
may, at its option (which option shall be deemed to have been exercised immediately upon the occurrence of an Act of Insolvency
of Seller or any Affiliate), declare an Event of Default to have occurred hereunder and, upon the exercise or deemed exercise of
such option, the Repurchase Date for each Transaction hereunder shall, if it has not already occurred, be deemed immediately to
occur (except that, in the event that the Purchase Date for any Transaction has not yet occurred as of the date of such exercise
or deemed exercise, such Transaction shall be deemed immediately canceled). Buyer shall (except upon the occurrence of an Act of
Insolvency) give notice to Seller and Guarantor of the exercise of such option as promptly as practicable.

 

b.           If
Buyer exercises or is deemed to have exercised the option referred to in subparagraph (a) of this Section, (i) Seller’s
obligations in such Transactions to repurchase all Purchased Mortgage Loans, at the Repurchase Price therefor on the Repurchase
Date determined in accordance with subparagraph (a) of this Section, shall thereupon become immediately due and payable, (ii) all
Income paid after such exercise or deemed exercise shall be retained by Buyer and applied, in Buyer’s sole discretion, to
the aggregate unpaid Repurchase Prices for all outstanding Transactions and any other amounts owing by Seller hereunder, and (iii) Seller
shall immediately deliver to Buyer the Mortgage Files relating to any Purchased Mortgage Loans subject to such Transactions then
in Seller’s possession or control.

 

    	- 41 -

    	 

    

 

c.           Buyer
also shall have the right to obtain physical possession, and to commence an action to obtain physical possession, of all Records
and files of Seller relating to the Purchased Mortgage Loans and all documents relating to the Purchased Mortgage Loans (including,
without limitation, any legal, credit or servicing files with respect to the Purchased Mortgage Loans) which are then or may thereafter
come in to the possession of Seller or any third party acting for Seller. To obtain physical possession of any Purchased Mortgage
Loans held by Custodian, Buyer shall present to Custodian a Trust Receipt. Without limiting the rights of Buyer hereto to pursue
all other legal and equitable rights available to Buyer for Seller’s failure to perform its obligations under this Agreement,
Seller acknowledges and agrees that the remedy at law for any failure to perform obligations hereunder would be inadequate and
Buyer shall be entitled to specific performance, injunctive relief, or other equitable remedies in the event of any such failure.
The availability of these remedies shall not prohibit Buyer from pursuing any other remedies for such breach, including the recovery
of monetary damages.

 

d.           Buyer
shall have the right to direct all servicers then servicing any Purchased Mortgage Loans to remit all collections thereon to Buyer,
and if any such payments are received by Seller, Seller shall not commingle the amounts received with other funds of Seller and
shall promptly pay them over to Buyer. Buyer shall also have the right to terminate any one or all of the servicers then servicing
any Purchased Mortgage Loans with or without cause. In addition, Buyer shall have the right to immediately sell the Purchased Mortgage
Loans and liquidate all Repurchase Assets. Such disposition of Purchased Mortgage Loans may be, at Buyer’s option, on either
a servicing-released or a servicing-retained basis. Buyer shall not be required to give any warranties as to the Purchased Mortgage
Loans with respect to any such disposition thereof. Buyer may specifically disclaim or modify any warranties of title or the like
relating to the Purchased Mortgage Loans. The foregoing procedure for disposition of the Purchased Mortgage Loans and liquidation
of the Repurchase Assets shall not be considered to adversely affect the commercial reasonableness of any sale thereof. Seller
agrees that it would not be commercially unreasonable for Buyer to dispose of the Purchased Mortgage Loans or the Repurchase Assets
or any portion thereof by using Internet sites that provide for the auction of assets similar to the Purchased Mortgage Loans or
the Repurchase Assets, or that have the reasonable capability of doing so, or that match buyers and sellers of assets. Buyer shall
be entitled to place the Purchased Mortgage Loans in a pool for issuance of mortgage-backed securities at the then -prevailing
price for such securities and to sell such securities for such prevailing price in the open market. Buyer shall also be entitled
to sell any or all of such Mortgage Loans individually for the prevailing price. Buyer shall also be entitled, in its sole discretion
to elect, in lieu of selling all or a portion of such Purchased Mortgage Loans, to give the Seller credit for such Purchased Mortgage
Loans and the Repurchase Assets in an amount equal to the Market Value of the Purchased Mortgage Loans against the aggregate unpaid
Repurchase Price and any other amounts owing by the Seller hereunder.

 

e.           Upon
the happening of one or more Events of Default, Buyer may apply any proceeds from the liquidation or foreclosure of the Purchased
Mortgage Loans and Repurchase Assets to the Repurchase Prices hereunder and all other Obligations in the manner Buyer deems appropriate
in its sole discretion.

 

    	- 42 -

    	 

    

 

f.            Seller
shall be liable to Buyer for (i) the amount of all out-of-pocket reasonable legal or other expenses incurred, including, without
limitation, all costs and expenses of Buyer in connection with the enforcement of this Agreement or any other agreement evidencing
a Transaction, whether in action, suit or litigation or bankruptcy, insolvency or other similar proceeding affecting creditors’
rights generally, further including, without limitation, the reasonable fees and expenses of counsel incurred in connection with
or as a result of an Event of Default, (ii) damages in an amount equal to the cost (including all fees, expenses and commissions)
of entering into replacement transactions and entering into or terminating hedge transactions in connection with or as a result
of an Event of Default, and (iii) any other loss, damage, cost or expense directly arising or resulting from the occurrence
of an Event of Default in respect of a Transaction.

 

g.           To
the extent permitted by applicable law, Seller shall be liable to Buyer for interest on any amounts owing by Seller hereunder,
from the date Seller becomes liable for such amounts hereunder until such amounts are (i) paid in full by Seller or (ii) satisfied
in full by the exercise of Buyer’s rights hereunder. Interest on any sum payable by Seller under this Section 16.g shall
accrue at a rate equal to the Post-Default Rate.

 

h.           Buyer
shall have, in addition to its rights hereunder, any rights otherwise available to it under any other agreement or applicable law.

 

i.            Buyer
may exercise one or more of the remedies available to Buyer immediately upon the occurrence of an Event of Default and, except
to the extent provided in subsections (a) and (d) of this Section, at any time thereafter without notice to Seller. All rights
and remedies arising under this Agreement as amended from time to time hereunder are cumulative and not exclusive of any other
rights or remedies which Buyer may have.

 

j.            Buyer
may enforce its rights and remedies hereunder without prior judicial process or hearing, and Seller hereby expressly waives any
defenses Seller might otherwise have to require Buyer to enforce its rights by judicial process. Seller also waives any defense
(other than a defense of payment or performance) Seller might otherwise have arising from the use of nonjudicial process, enforcement
and sale of all or any portion of the Repurchase Assets, or from any other election of remedies. Seller recognizes that nonjudicial
remedies are consistent with the usages of the trade, are responsive to commercial necessity and are the result of a bargain at
arm’s length.

 

k.          Buyer
shall have the right to perform reasonable due diligence with respect to Seller and the Mortgage Loans, which review shall be at
the expense of Seller.

 

17.         Reports

 

a.           Default
Notices. Seller and Guarantor shall each furnish to Buyer (i) promptly, copies of any material and adverse notices (including,
without limitation, notices of defaults, termination events, breaches, potential defaults or potential breaches) and any material
financial information that is not otherwise required to be provided by Seller or Guarantor hereunder which is given to Seller’s
or Guarantor’s lenders and (ii) promptly, notice of the occurrence of any (A) Event of Default hereunder, (B) default
or breach by Seller or Servicer or Guarantor of any obligation under any Program Agreement or any material contract or agreement
of Seller or Servicer or Guarantor or (C) event or circumstance that such party reasonably expects has resulted in, or will,
with the passage of time, result in, a Material Adverse Effect, an Event of Default or such a default or breach by such party.

 

    	- 43 -

    	 

    

 

b.             Financial
Notices. Seller and Guarantor shall each furnish to Buyer:

 

(1)         as
soon as available and in any event within thirty (30) calendar days after the end of each calendar month, the unaudited consolidated
balance sheets of Seller and Guarantor and its consolidated Subsidiaries as of the end of such period and the related unaudited
consolidated statements of income and retained earnings and of cash flows for the Seller and Guarantor and its consolidated Subsidiaries
for such period and the portion of the fiscal year through the end of such period, accompanied by a certificate of a Responsible
Officer of Seller and Guarantor, which certificate shall state that said consolidated financial statements fairly present in all
material respects the consolidated financial condition and results of operations of Seller and Guarantor and its consolidated Subsidiaries
in accordance with GAAP (other than solely with respect to footnotes, year-end adjustments and cash flow statements) consistently
applied, as at the end of, and for, such period;

 

(2)         as
soon as available and in any event within ninety (90) days after the end of each fiscal year of Seller and Guarantor, the consolidated
balance sheets of Seller and Guarantor and its consolidated Subsidiaries as at the end of such fiscal year and the related consolidated
statements of income and retained earnings and of cash flows for the Seller and Guarantor and its consolidated Subsidiaries for
such year, setting forth in each case in comparative form the figures for the previous year, accompanied by an opinion thereon
of independent certified public accountants of recognized national standing, which opinion and the scope of audit shall be acceptable
to Buyer in its sole discretion, shall have no “going concern” qualification and shall state that said consolidated
financial statements fairly present the consolidated financial condition and results of operations of Seller and Guarantor and
its respective consolidated Subsidiaries as at the end of, and for, such fiscal year in accordance with GAAP;

 

(3)         at
the time the Seller and Guarantor furnishes each set of financial statements pursuant to Section 17.b(1) or (1) above, an
Officer’s Compliance Certificate of a Responsible Officer of Seller and Guarantor in the form attached as Exhibit A
to the Pricing Side Letter;

 

(4)         reserved;

 

(5)         as
soon as available and in any event within thirty (30) days of receipt thereof;

 

    	- 44 -

    	 

    

 

(a)          if
applicable, copies of any 10-Ks, 10-Qs, registration statements and other “corporate finance” SEC filings by
Seller and Guarantor, within 5 Business Days of their filing with the SEC; provided, that, Seller and Guarantor or any Affiliate
will provide Buyer with a copy of the annual 10-K filed with the SEC by Seller and Guarantor or its Affiliates, no later than 90
days after the end of the year;

 

(b)          copies
of relevant portions of all final written Governmental Authority and investor audits, examinations, evaluations, monitoring reviews
and reports of its operations (including those prepared on a contract basis) which provide for or relate to (i) material corrective
action required, (ii) material sanctions proposed, imposed or required, including without limitation notices of defaults,
notices of termination of approved status, notices of imposition of supervisory agreements or interim servicing agreements, and
notices of probation, suspension, or non-renewal, or (iii) “report cards,” “grades” or other classifications
of the quality of Seller’s and Guarantor’s operations;

 

(c)          such
other information regarding the financial condition, operations, or business of the Seller and Guarantor as Buyer may reasonably
request; and

 

(d)          the
particulars of any ERISA Event in reasonable detail.

 

(6)         Seller
shall provide the market value analysis for the valuation of its mortgage servicing rights as determined (i) internally for each
monthly fiscal period and (ii) by a Third Party Evaluator for each quarterly fiscal period to the extent received, in all instances
as set forth in the Officer’s Compliance Certificate delivered pursuant to Section 17.b (3);

 

(7)         Seller
shall provide Buyer, as part of the Officer’s Certificate delivered pursuant to Section 17.b(3) above, a list of all actions,
notices, proceedings or investigations pending with respect to which Seller has received service of process or other form of notice
or, to the best of Seller’s knowledge, threatened against it, before any court, administrative or governmental agency or
other regulatory body or tribunal as of such date with such information provided as noted in the applicable Schedule to Exhibit
A of the Pricing Side Letter.

 

c.             Notices
of Certain Events. As soon as possible and in any event within five (5) Business Days of knowledge thereof, Seller shall furnish
to Buyer notice of the following events:

 

(1)         a
change in the insurance coverage required of Seller, with a copy of evidence of same attached;

 

(2)         any
material dispute, litigation, investigation, proceeding or suspension between Seller, on the one hand, and any Governmental Authority
or any Person;

 

    	- 45 -

    	 

    

 

(3)         any
material change in accounting policies or financial reporting practices of Seller;

 

(4)         with
respect to any Purchased Mortgage Loan, that the underlying Mortgaged Property has been damaged by waste, fire, earthquake or earth
movement, windstorm, flood, tornado or other casualty, or otherwise damaged so as to affect materially and adversely the value
of such Mortgaged Loan;

 

(5)         any
material issues raised in writing upon examination of Seller or Seller’s facilities, operations, servicing, origination or
correspondent activities by any Governmental Authority;

 

(6)         any
material change in the Indebtedness of the Seller, including, without limitation, any default, renewal, non-renewal, termination,
increase in available amount or decrease in available amount related thereto;

 

(7)         any
default related to any Repurchase Asset or any lien or security interest (other than security interests created hereby or by the
other Program Agreements) on, or claim asserted against, any of the Purchased Mortgage Loans;

 

(8)         any
other event, circumstance or condition that has resulted, or has a possibility of resulting, in a Material Adverse Effect with
respect to Seller; and

 

(9)         the
occurrence of any material employment dispute and a description of the strategy for resolving it that has a likelihood of resulting
in a Material Adverse Effect.

 

d.             Portfolio
Performance Data. On the first Reporting Date of each calendar month, Seller will furnish to Buyer (i) in the event the
Mortgage Loans are serviced on a “retained” basis, an electronic Mortgage Loan performance data, including, without
limitation, delinquency reports and volume information, broken down by product (i.e., delinquency, foreclosure and net charge-off
reports) and (ii) electronically, in a format mutually acceptable to Buyer and Seller, servicing information, including, without
limitation, those fields reasonably requested by Buyer from time to time, on a loan-by-loan basis and in the aggregate, with respect
to the Purchased Mortgage Loans serviced by Seller for the month (or any portion thereof) prior to the Reporting Date. In addition
to the foregoing information on each Reporting Date, Seller will furnish to Buyer such information upon (i) the occurrence
and continuation of an Event of Default and (ii) upon any Purchased Mortgage Loan becoming an Aged Loan.

 

e.             Other
Reports. Seller shall deliver to Buyer any other reports or information reasonably requested by Buyer or as otherwise required
pursuant to this Agreement or as set forth in the Officer’s Compliance Certificate delivered pursuant to Section 17.b(3)
above.

 

    	- 46 -

    	 

    

 

18.         Repurchase
Transactions

 

Prior to the occurrence
of an Event of Default, Buyer may, in its sole election, engage in repurchase transactions with the Purchased Mortgage Loans or
otherwise pledge, hypothecate, assign, transfer or otherwise convey the Purchased Mortgage Loans to a Buyer Affiliate. On or after
the occurrence and continuance of an Event of Default, Buyer may, in its sole election, engage in repurchase transactions with
the Purchased Mortgage Loans or otherwise pledge, hypothecate, assign, transfer or otherwise convey the Purchased Mortgage Loans
to any Person without limitation. Unless an Event of Default shall have occurred, no such transaction shall relieve Buyer of its
obligations to transfer Purchased Mortgage Loans to Seller pursuant to Section 4 hereof, or of Buyer’s obligation to
credit or pay Income to, or apply Income to the obligations of, Seller pursuant to Section 7 hereof. In the event Buyer engages
in a repurchase transaction with any of the Purchased Mortgage Loans or otherwise pledges or hypothecates any of the Purchased
Mortgage Loans pursuant to this Section 18, Buyer shall have the right to assign to Buyer’s counterparty any of the applicable
representations or warranties herein and the remedies for breach thereof, as they relate to the Purchased Mortgage Loans that are
subject to such repurchase transaction.

 

19.         Single
Agreement

 

Buyer and Seller acknowledge
they have and will enter into each Transaction hereunder, in consideration of and in reliance upon the fact that, all Transactions
hereunder constitute a single business and contractual relationship and have been made in consideration of each other. Accordingly,
each of Buyer and Seller agrees (i) to perform all of its obligations in respect of each Transaction hereunder, and that a
default in the performance of any such obligations shall constitute a default by it in respect of all Transactions hereunder, (ii) that
each of them shall be entitled to set-off claims and apply property held by them in respect of any Transaction against obligations
owing to them in respect of any other Transactions hereunder and (iii) that payments, deliveries and other transfers made
by either of them in respect of any Transaction shall be deemed to have been made in consideration of payments, deliveries and
other transfers in respect of any other Transactions hereunder, and the obligations to make any such payments, deliveries and other
transfers may be applied against each other and netted.

 

20.         Notices
and Other Communications

 

Any and all notices (with
the exception of Transaction Requests or Purchase Confirmations, which shall be delivered via electronic mail or other electronic
medium agreed to by the Buyer and the Seller), statements, demands or other communications hereunder may be given by a party to
the other by mail, email, facsimile, messenger or otherwise to the address specified below, or so sent to such party at any other
place specified in a written notice of change of address hereafter received by the other. Except for margin calls pursuant to Section
6 hereof which must be made in writing, all notices, demands and requests hereunder may be made orally, to be confirmed promptly
in writing, or by other communication as specified in the preceding sentence. In all cases, to the extent that the related individual
set forth in the respective “Attention” line is no longer employed by the respective Person, such notice may be given
to the attention of a Responsible Officer of the respective Person or to the attention of such individual or individuals as subsequently
notified in writing by a Responsible Officer of the respective Person.

 

    	- 47 -

    	 

    

 

If to Seller:

Five Oaks Acquisition Corp.

540 Madison Avenue, 19th Floor

New York, New York 10022

Attention: Darren Comisso

Phone Number: 212-257-5072

E-mail: ops@oakcirclecapital.com

 

If to the Guarantor:

Five Oaks Investment Corp.

540 Madison Avenue, 19th Floor

New York, New York 10022

Attention: Darren Comisso

Phone Number: 212-257-5072

E-mail: ops@oakcirclecapital.com

 

If to Buyer:

 

For Transaction Requests and
Purchase Confirmations:

CSFBMC LLC

c/o Credit Suisse Securities (USA) LLC

One Madison Avenue, 2nd floor

New York, New York 10010

Attention: Christopher Bergs, Resi Mortgage Warehouse Ops

Phone: 212-538-5087

E-mail: christopher.bergs@credit-suisse.com

 

with a copy to:

Credit Suisse First Boston Mortgage Capital LLC

c/o Credit Suisse Securities (USA) LLC

Eleven Madison Avenue, 4th Floor

New York, NY 10010

Attention: Bruce Kaiserman

E-mail: bruce.kaiserman@credit-suisse.com

 

    	- 48 -

    	 

    

 

For all other Notices:

Credit Suisse First Boston Mortgage Capital LLC

c/o Credit Suisse Securities (USA) LLC

Eleven Madison Avenue, 4th Floor

Attention: Margaret Dellafera

New York, New York 10010

Phone Number: 212-325-6471

Fax Number: 212-743-4810

E-mail: margaret.dellafera@credit-suisse.com

 

with a copy to:

Credit Suisse First Boston Mortgage Capital LLC

c/o Credit Suisse Securities (USA) LLC

One Madison Avenue, 9th Floor

New York, NY 10010

Attention: Legal Department—RMBS Warehouse Lending

Fax Number: (212) 322-2376

 

21.         Entire
Agreement; Severability

 

This Agreement shall
supersede any existing agreements between the parties containing general terms and conditions for repurchase transactions. Each
provision and agreement herein shall be treated as separate and independent from any other provision or agreement herein and shall
be enforceable notwithstanding the unenforceability of any such other provision or agreement.

 

22.         Non
assignability

 

The Program Agreements
are not assignable by Seller or Guarantor. Buyer may from time to time assign all or a portion of its rights and obligations under
this Agreement and the Program Agreements; provided, however that Buyer will not assign any or all of its rights and obligations
under this Agreement and the Program Agreements to an individual; provided further that Buyer shall maintain as agent of
Seller, for review by Seller upon written request, a register of assignees and a copy of an executed assignment and acceptance
by Buyer and assignee (“Assignment and Acceptance”), specifying the percentage or portion of such rights and
obligations assigned. Upon such assignment, (a) such assignee shall be a party hereto and to each Program Agreement to the
extent of the percentage or portion set forth in the Assignment and Acceptance, and shall succeed to the applicable rights and
obligations of Buyer hereunder, and (b) Buyer shall, to the extent that such rights and obligations have been so assigned
by it to either (i) an Affiliate of Buyer which assumes the obligations of Buyer or (ii) another Person approved by Seller
(such approval not to be unreasonably withheld) which assumes the obligations of Buyer, be released from its obligations hereunder
and under the Program Agreements. Unless otherwise stated in the Assignment and Acceptance, Seller shall continue to take directions
solely from Buyer unless otherwise notified by Buyer in writing. Buyer may distribute to any prospective assignee any document
or other information delivered to Buyer by Seller.

 

    	- 49 -

    	 

    

 

23.         Set-off

 

In addition to any rights
and remedies of the Buyer hereunder and by law, the Buyer shall have the right, without prior notice to the Seller or Guarantor,
any such notice being expressly waived by the Seller and Guarantor to the extent permitted by applicable law to set-off and appropriate
and apply against any Obligation from Seller or Guarantor to Buyer or any of its Affiliates any and all deposits (general or special,
time or demand, provisional or final), in any currency, and any other obligation (including to return excess margin), credits,
indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or contingent, matured or unmatured,
at any time held or owing by or due from the Buyer or any Affiliate thereof to or for the credit or the account of the Seller or
Guarantor. The Buyer agrees promptly to notify the Seller or Guarantor after any such set off and application made by the Buyer;
provided that the failure to give such notice shall not affect the validity of such set off and application.

 

24.         Binding
Effect; Governing Law; Jurisdiction

 

a.           This
Agreement shall be binding and inure to the benefit of the parties hereto and their respective successors and permitted assigns.
Seller acknowledges that the obligations of Buyer hereunder or otherwise are not the subject of any guaranty by, or recourse to,
any direct or indirect parent or other Affiliate of Buyer. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY,
THE LAW OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF.

 

b.           SELLER
AND GUARANTOR HEREBY WAIVE TRIAL BY JURY. SELLER AND GUARANTOR HEREBY IRREVOCABLY CONSENT TO THE EXCLUSIVE JURISDICTION OF ANY
COURT OF THE STATE OF NEW YORK, OR IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, ARISING OUT OF OR
RELATING TO THE PROGRAM AGREEMENTS IN ANY ACTION OR PROCEEDING. SELLER AND GUARANTOR HEREBY SUBMIT TO, AND WAIVE ANY OBJECTION
THEY MAY HAVE TO, EXCLUSIVE PERSONAL JURISDICTION AND VENUE IN THE COURTS OF THE STATE OF NEW YORK AND THE UNITED STATES DISTRICT
COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, WITH RESPECT TO ANY DISPUTES ARISING OUT OF OR RELATING TO THE PROGRAM AGREEMENTS.

 

25.         No
Waivers, Etc.

 

No express or implied
waiver of any Event of Default by either party shall constitute a waiver of any other Event of Default and no exercise of any remedy
hereunder by any party shall constitute a waiver of its right to exercise any other remedy hereunder. No modification or waiver
of any provision of this Agreement and no consent by any party to a departure herefrom shall be effective unless and until such
shall be in writing and duly executed by both of the parties hereto. Without limitation on any of the foregoing, the failure to
give a notice pursuant to Section 6.a, 16.a or otherwise, will not constitute a waiver of any right to do so at a later date.

 

    	- 50 -

    	 

    

 

26.         Intent

 

a.           The
parties recognize that each Transaction is a “repurchase agreement” as that term is defined in Section 101
of Title 11 of the United States Code, as amended, a “securities contract” as that term is defined in Section 741
of Title 11 of the United States Code, as amended, and a “master netting agreement” as that term is defined in
Section 101(38A)(A) of the Bankruptcy Code, that all payments hereunder are deemed “margin payments” or “settlement
payments” as defined in Title 11 of the United States Code, and that the pledge of the Repurchase Assets constitutes
“a security agreement or other arrangement or other credit enhancement” that is “related to” the Agreement
and Transactions hereunder within the meaning of Sections 101(38A)(A), 101(47)(A)(v) and 741(7)(A)(xi) of the Bankruptcy Code.
Seller and Buyer further recognize and intend that this Agreement is an agreement to provide financial accommodations and is not
subject to assumption pursuant to Bankruptcy Code Section 365(a).

 

b.           Buyer’s
right to liquidate the Purchased Mortgage Loans delivered to it in connection with the Transactions hereunder or to accelerate
or terminate this Agreement or otherwise exercise any other remedies pursuant to Section 16 hereof is a contractual right
to liquidate, accelerate or terminate such Transaction as described in Bankruptcy Code Sections 555, 559 and 561; any payments
or transfers of property made with respect to this Agreement or any Transaction to satisfy a Margin Deficit shall be considered
a “margin payment” as such term is defined in Bankruptcy Code Section 741(5).

 

c.           The
parties agree and acknowledge that if a party hereto is an “insured depository institution,” as such term is
defined in the Federal Deposit Insurance Act, as amended (“FDIA”), then each Transaction hereunder is a “qualified
financial contract,” as that term is defined in FDIA and any rules, orders or policy statements thereunder (except insofar
as the type of assets subject to such Transaction would render such definition inapplicable).

 

d.           It
is understood that this Agreement constitutes a “netting contract” as defined in and subject to Title IV
of the Federal Deposit Insurance Corporation Improvement Act of 1991 (“FDICIA”) and each payment entitlement
and payment obligation under any Transaction hereunder shall constitute a “covered contractual payment entitlement”
or “covered contractual payment obligation”, respectively, as defined in and subject to FDICIA (except insofar
as one or both of the parties is not a “financial institution” as that term is defined in FDICIA).

 

e.           This
Agreement is intended to be a “repurchase agreement” and a “securities contract,” within the meaning of
Section 555 and Section 559 under the Bankruptcy Code.

 

    	- 51 -

    	 

    

 

f.            Each
party agrees that this Agreement is intended to create mutuality of obligations among the parties, and as such, the Agreement constitutes
a contract which (i) is between all of the parties and (ii) places each party in the same right and capacity.

 

27.         Disclosure
Relating to Certain Federal Protections

 

The parties acknowledge
that they have been advised that:

 

a.           in
the case of Transactions in which one of the parties is a broker or dealer registered with the SEC under Section 15 of the
1934 Act, the Securities Investor Protection Corporation has taken the position that the provisions of the SIPA do not protect
the other party with respect to any Transaction hereunder;

 

b.           in
the case of Transactions in which one of the parties is a government securities broker or a government securities dealer registered
with the SEC under Section 15C of the 1934 Act, SIPA will not provide protection to the other party with respect to any Transaction
hereunder; and

 

c.           in
the case of Transactions in which one of the parties is a financial institution, funds held by the financial institution pursuant
to a Transaction hereunder are not a deposit and therefore are not insured by the Federal Deposit Insurance Corporation or the
National Credit Union Share Insurance Fund, as applicable.

 

28.         Power
of Attorney

 

Seller hereby authorizes
Buyer to file such financing statement relating to the Repurchase Assets without Seller’s signature thereon as Buyer, at
its option, may deem appropriate. Seller hereby appoints Buyer as Seller’s agent and attorney-in-fact to execute any such
financing statement in Seller’s name and to perform all other acts which Buyer deems appropriate to perfect and continue
its ownership interest in and/or the security interest granted hereby, if applicable, and to protect, preserve and realize upon
the Repurchase Assets, including, but not limited to, the right to endorse notes, complete blanks in documents, transfer servicing,
and sign assignments on behalf of Seller as its agent and attorney-in-fact. This agency and power of attorney is coupled with an
interest and is irrevocable without Buyer’s consent. Notwithstanding the foregoing, the power of attorney hereby granted
may be exercised only during the occurrence and continuance of any Default hereunder. Seller shall pay the filing costs for any
financing statement or statements prepared pursuant to this Section 28. In addition the foregoing, the Seller agrees to execute
a Power of Attorney, in the form of Exhibit D hereto, to be delivered on the date hereof.

 

29.         Buyer
May Act Through Affiliates

 

Buyer may, from time
to time, designate one or more Affiliates for the purpose of performing any action hereunder.

 

    	- 52 -

    	 

    

 

30.         Indemnification;
Obligations

 

a.           Each
of Seller and Guarantor agrees to hold Buyer and each of its respective Affiliates and their officers, directors, employees, agents
and advisors (each, an “Indemnified Party”) harmless from and indemnify each Indemnified Party (and will reimburse
each Indemnified Party as the same is incurred) against all liabilities, losses, damages, judgments, costs and expenses (including,
without limitation, out-of-pocket reasonable fees and expenses of counsel incurred) of any kind which may be imposed on, incurred
by, or asserted against any Indemnified Party relating to or arising out of this Agreement, any Transaction Request, Purchase Confirmation,
any Program Agreement or any transaction contemplated hereby or thereby resulting from anything other than the Indemnified Party’s
gross negligence or willful misconduct. Each of Seller and Guarantor also agrees to reimburse each Indemnified Party for all reasonable
expenses in connection with the enforcement of this Agreement and the exercise of any right or remedy provided for herein, any
Transaction Request, Purchase Confirmation and any Program Agreement, including, without limitation, the reasonable fees and disbursements
of counsel. Seller’s and Guarantor’s agreements in this Section 30 shall survive the payment in full of the Repurchase
Price and the expiration or termination of this Agreement. Each of Seller and Guarantor hereby acknowledges that its obligations
hereunder are recourse obligations of Seller and the Guarantor and are not limited to recoveries each Indemnified Party may have
with respect to the Purchased Mortgage Loans. Each party hereto also agrees not to assert any claim against any other party hereto
or any of its Affiliates, or any of their respective officers, directors, employees, attorneys and agents, on any theory of liability,
for special, indirect, consequential or punitive damages arising out of or otherwise relating to the facility established hereunder,
the actual or proposed use of the proceeds of the Transactions, this Agreement or any of the transactions contemplated thereby.
THE FOREGOING INDEMNITY AND AGREEMENT NOT TO ASSERT CLAIMS EXPRESSLY APPLIES, WITHOUT LIMITATION, TO THE NEGLIGENCE (BUT NOT GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT) OF THE INDEMNIFIED PARTIES.

 

b.           Reserved.

 

c.           Without
limiting the provisions of Section 30.a hereof, if Seller fails to pay when due any costs, expenses or other amounts payable
by it under this Agreement, including, without limitation, fees and expenses of counsel and indemnities, such amount may be paid
on behalf of Seller by Buyer, in its sole discretion.

 

31.         Counterparts

 

This Agreement may be
executed in one or more counterparts, each of which shall be deemed to be an original, and all such counterparts shall together
constitute one and the same instrument.

 

    	- 53 -

    	 

    

 

32.         Confidentiality

 

a.           This
Agreement and its terms, provisions, supplements and amendments, and notices hereunder, are proprietary to Buyer and shall be held
by Seller and Guarantor in strict confidence and shall not be disclosed to any third party without the written consent of Buyer
except for (i) disclosure to Seller’s or Guarantor’s direct and indirect Affiliates and Subsidiaries, attorneys
or accountants, but only to the extent such disclosure is necessary and such parties agree to hold all information in strict confidence,
or (ii) disclosure required by law, rule, regulation or order of a court or other regulatory body or (iii) without limiting
the foregoing exceptions, any disclosure or filing of this Agreement or any other Program Agreement with the SEC or pursuant to
any federal or state securities’ laws, provided that in the case of filing or disclosure pursuant to clause (iii), (A) Seller
shall provide Buyer with prior written notice of such filing or disclosure and (B) with respect to filings of Program Agreements
other than this Agreement, to the extent that the SEC shall require that they be filed, Seller and Buyer shall work in good faith
to agree on pricing terms to redact (to the extent such redaction is not challenged by the SEC or other applicable Governmental
Authority); provided that, notwithstanding the foregoing, Seller shall disclose such information as the SEC shall require.
Notwithstanding the foregoing or anything to the contrary contained herein or in any other Program Agreement, the parties hereto
may disclose to any and all Persons, without limitation of any kind, the federal, state and local tax treatment of the Transactions,
any fact relevant to understanding the federal, state and local tax treatment of the Transactions, and all materials of any kind
(including opinions or other tax analyses) relating to such federal, state and local tax treatment and that may be relevant to
understanding such tax treatment; provided that, Seller may not disclose any pricing terms (including, without limitation,
the Pricing Rate, Non-Utilization Fee, Purchase Price Percentage and Purchase Price) or other nonpublic business or financial information
(including any sublimits and financial covenants) that is unrelated to the federal, state and local tax treatment of the Transactions
and is not relevant to understanding the federal, state and local tax treatment of the Transactions, without the prior written
consent of the Buyer. All information required to be disclosed by Seller to Buyer pursuant to Section 4 of the Pricing Side Letter
shall be used solely for the purpose of evaluating Buyer’s compliance with Section 4(i) of the Pricing Side Letter and shall
be held by Buyer in strict confidence; provided that such information shall not be disclosed to any third party without
the written consent of Seller except for (i) disclosure to Buyer’s direct and indirect Affiliates and Subsidiaries, employees,
directors, agents, attorneys, accountants or other professional advisors, but only to the extent such disclosure is necessary and
such parties agree to hold all information in strict confidence, (ii)  disclosure required by law, rule, regulation or order
of a court or other regulatory body, (iii) any disclosures or filing required under SEC or state securities’ laws; (iv) disclosure
in connection with the enforcement of any of the provisions of this Agreement; (v) to the extent to such Confidential Information
is in the public domain other than due to a breach of this Section 32.

 

    	- 54 -

    	 

    

 

b.           Notwithstanding
anything in this Agreement to the contrary, the Seller and Buyer shall comply with all applicable local, state and federal laws,
including, without limitation, all privacy and data protection law, rules and regulations that are applicable to the Purchased
Mortgage Loans and/or any applicable terms of this Agreement (the “Confidential Information”). The Seller and
Buyer understand that the Confidential Information may contain “nonpublic personal information”, as that term is defined
in Section 509(4) of the Gramm-Leach-Bliley Act (the “Act”), and the Seller and Buyer agree to maintain
such nonpublic personal information that it receives hereunder in accordance with the Act and other applicable federal and state
privacy laws. The Seller shall implement such physical and other security measures as shall be necessary to (a) ensure the
security and confidentiality of the “nonpublic personal information” of the “customers” and “consumers”
(as those terms are defined in the Act) of Buyer or any Affiliate of Buyer which the Seller holds, (b) protect against any
threats or hazards to the security and integrity of such nonpublic personal information, and (c) protect against any unauthorized
access to or use of such nonpublic personal information. The Seller represents and warrants that it has implemented appropriate
measures to meet the objectives of Section 501(b) of the Act and of the applicable standards adopted pursuant thereto, as
now or hereafter in effect. Upon request, the Seller will provide evidence reasonably satisfactory to allow Buyer to confirm that
the providing party has satisfied its obligations as required under this Section. Without limitation, this may include Buyer’s
review of audits, summaries of test results, and other equivalent evaluations of the Seller. The Seller shall notify Buyer immediately
following discovery of any breach or compromise of the security, confidentiality, or integrity of nonpublic personal information
of the customers and consumers of Buyer or any Affiliate of Buyer provided directly to the Seller by Buyer or such Affiliate. The
Buyer shall use good faith efforts to notify Seller immediately following discovery of any breach or compromise of the security,
confidentiality, or integrity of nonpublic personal information of the customers and consumers of Seller or any Affiliate of Seller
provided directly to the Buyer by Seller or such Affiliate.  Such party shall provide such notice to the other party by personal
delivery, by facsimile with confirmation of receipt, or by overnight courier with confirmation of receipt to the applicable requesting
individual.

 

33.         Recording
of Communications

 

Buyer, Seller and Guarantor
shall have the right (but not the obligation) from time to time to make or cause to be made tape recordings of communications between
its employees and those of the other party with respect to Transactions. Buyer, Seller and Guarantor consent to the admissibility
of such tape recordings in any court, arbitration, or other proceedings. The parties agree that a duly authenticated transcript
of such a tape recording shall be deemed to be a writing conclusively evidencing the parties’ agreement.

 

    	- 55 -

    	 

    

 

34.         Periodic
Due Diligence Review

 

Seller acknowledges that
Buyer has the right to perform continuing due diligence reviews with respect to the Seller and the Mortgage Loans, for purposes
of verifying compliance with the representations, warranties and specifications made hereunder, for the purpose of performing quality
control review of the Mortgage Loans or otherwise, and Seller agrees that upon reasonable (but no less than one (1) Business
Day’s) prior notice unless an Event of Default shall have occurred, in which case no notice is required, to Seller, Buyer
or its authorized representatives will be permitted during normal business hours to examine, inspect, and make copies and extracts
of, the Mortgage Files and any and all documents, data, records, agreements, instruments or information relating to such Mortgage
Loans (including, without limitation, quality control review) in the possession or under the control of Seller and/or the Custodian.
Seller also shall make available to Buyer a knowledgeable financial or accounting officer for the purpose of answering questions
respecting the Mortgage Files and the Mortgage Loans. Without limiting the generality of the foregoing, Seller acknowledges that
Buyer may purchase Mortgage Loans from Seller based solely upon the information provided by Seller to Buyer in the Mortgage Loan
Schedule and the representations, warranties and covenants contained herein, and that Buyer, at its option, has the right at any
time to conduct a partial or complete due diligence review on some or all of the Mortgage Loans purchased in a Transaction, including,
without limitation, ordering Broker’s price opinions, new credit reports and new appraisals on the related Mortgaged Properties
and otherwise re-generating the information used to originate such Mortgage Loan. Buyer may underwrite such Mortgage Loans itself
or engage a mutually agreed upon third party underwriter to perform such underwriting. Seller agrees to cooperate with Buyer and
any third party underwriter in connection with such underwriting, including, but not limited to, providing Buyer and any third
party underwriter with access to any and all documents, records, agreements, instruments or information relating to such Mortgage
Loans in the possession, or under the control, of Seller. Seller further agrees that Seller shall pay all out-of-pocket costs and
expenses incurred by Buyer in connection with Buyer’s activities pursuant to this Section 34.

 

35.         Authorizations

 

Any of the persons whose
signatures and titles appear on Schedule 2 are authorized, acting singly, to act for Seller or Buyer to the extent set forth
therein, as the case may be, under this Agreement.

 

36.         Acknowledgement
Of Anti-Predatory Lending Policies

 

Buyer has in place internal
policies and procedures that expressly prohibit its purchase of any High Cost Mortgage Loan.

 

37.         Documents
Mutually Drafted

 

The Seller and the Buyer
agree that this Agreement and each other Program Agreement prepared in connection with the Transactions set forth herein have been
mutually drafted and negotiated by each party, and consequently such documents shall not be construed against either party as the
drafter thereof.

 

38.         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;

 

    	- 56 -

    	 

    

 

b.           accounting
terms not otherwise defined herein have the meanings assigned to them in accordance with GAAP;

 

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

 

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

 

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

 

f.            the
term “include” or “including” shall mean without limitation by reason of enumeration;

 

g.           all
times specified herein or in any other Program Agreement (unless expressly specified otherwise) are local times in New York, New
York unless otherwise stated; and

 

h.           all
references herein or in any Program Agreement to “good faith” means good faith as defined in Section 1-201(19)
of the UCC as in effect in the State of New York.

 

39.         Conflicts

 

In the event of any conflict
between the terms of this Agreement and any other Program Agreement, the documents shall control in the following order of priority:
first, the terms of the Pricing Side Letter shall prevail, then the terms of this Agreement shall prevail, and then the
terms of the other Program Agreements shall prevail.

 

[Signature Page Follows]

 

    	- 57 -

    	 

    

 

IN WITNESS WHEREOF, the undersigned have
caused this Agreement to be duly executed as of the date first above written.

 

Credit Suisse First Boston Mortgage Capital LLC, as Buyer

 

	By:	 	 	 
	 	Name:	 	 
	 	Title:	 	 

 

Five Oaks Acquisition Corp., as Seller

 

	By:	 	 	 
	 	Name:	 	 
	 	Title:	 	 

 

Five Oaks Investment Corp., as Guarantor

 

	By:	 	 	 
	 	Name:	 	 
	 	Title:	 	 

 

Signature Page to the Master Repurchase
Agreement

 

    	 

    	 

    

 

SCHEDULE 1

 

REPRESENTATIONS
AND WARRANTIES WITH RESPECT TO PURCHASED MORTGAGE LOANS

 

(a)          Payments
Current. All payments required to be made up to the Purchase Date for the Mortgage Loan under the terms of the Mortgage Note
have been made and credited. No payment required under the Mortgage Loan is 30 days or more delinquent nor has any payment under
the Mortgage Loan been 30 days or more delinquent at any time since the origination of the Mortgage Loan and, if the Mortgage Loan
is a Co-op Loan, no foreclosure action or private or public sale under the Uniform Commercial Code has ever to the knowledge of
Seller, been threatened or commenced with respect to the Co-op Loan. The first Monthly Payment shall be made, or shall have been
made, with respect to the Mortgage Loan on its Due Date or within the grace period, all in accordance with the terms of the related
Mortgage Note.

 

(b)          No
Outstanding Charges. All taxes, governmental assessments, insurance premiums, water, sewer and municipal charges, leasehold
payments or ground rents which previously became due and owing have been paid, or an escrow of funds has been established in an
amount sufficient to pay for every such item which remains unpaid and which has been assessed but is not yet due and payable. Neither
Seller nor the Qualified Originator from which Seller acquired the Mortgage Loan has advanced funds, or induced, solicited or knowingly
received any advance of funds by a party other than the Mortgagor, directly or indirectly, for the payment of any amount required
under the Mortgage Loan, except for interest accruing from the date of the Mortgage Note or date of disbursement of the proceeds
of the Mortgage Loan, whichever is earlier, to the day which precedes by one month the Due Date of the first installment of principal
and interest thereunder.

 

(c)          Original
Terms Unmodified. The terms of the Mortgage Note (and the Proprietary Lease, the Assignment of Proprietary Lease and Stock
Power with respect to each Co-op Loan) and Mortgage have not been impaired, waived, altered or modified in any respect, from the
date of origination; except by a written instrument which has been recorded, if necessary to protect the interests of Buyer, and
which has been delivered to the Custodian and the terms of which are reflected in the Custodial Mortgage Loan Schedule. The substance
of any such waiver, alteration or modification has been approved by the title insurer, to the extent required, and its terms are
reflected on the Custodial Mortgage Loan Schedule. No Mortgagor in respect of the Mortgage Loan has been released, in whole or
in part, except in connection with an assumption agreement approved by the title insurer, to the extent required by such policy,
and which assumption agreement is part of the Mortgage File delivered to the Custodian and the terms of which are reflected in
the Custodial Mortgage Loan Schedule.

 

    	Schedule 1-1

    	 

    

 

(d)          No
Defenses. The Mortgage Loan (and the Assignment of Proprietary Lease related to each Co-op Loan) is not subject to any right
of rescission, set-off, counterclaim or defense, including, without limitation, the defense of usury, nor will the operation of
any of the terms of the Mortgage Note or the Mortgage, or the exercise of any right thereunder, render either the Mortgage Note
or the Mortgage unenforceable, in whole or in part and no such right of rescission, set-off, counterclaim or defense has been asserted
with respect thereto, and no Mortgagor in respect of the Mortgage Loan was a debtor (i) in any state or Federal bankruptcy or insolvency
proceeding at the time the Mortgage Loan was originated; (ii) in any proceeding under Chapter 7 of the Bankruptcy Code in the forty-eight
(48) months since the most recent discharge or dismissal thereof; in any proceeding under Chapter 13 of the Bankruptcy Code in
the twenty-four (24) months since the most recent discharge thereof or in the forty-eight (48) months since the most recent dismissal
thereof or (iv) in more than one (1) state or Federal bankruptcy or insolvency proceeding in the sixty (60) months since the most
recent discharge or dismissal thereof. Mortgagor did not previously own property that was the subject of a foreclosure during the
time the Mortgagor was the owner of record in the sixty (60) months prior to origination of the related Mortgage Loan. Seller has
no knowledge nor has it received any notice that any Mortgagor in respect of the Mortgage Loan is a debtor in any state or federal
bankruptcy or insolvency proceeding. Seller has no knowledge of any circumstances or condition with respect to the Mortgage, the
Mortgaged Property, the Mortgagor or the Mortgagor’s credit standing that could reasonably be expected to cause investors
to regard the Mortgage Loan as an unacceptable investment, cause the Mortgage Loan to become delinquent or materially adversely
affect the value or marketability of the Mortgage Loan.

 

(e)          Hazard
Insurance. The Mortgaged Property is insured by a fire and extended perils insurance policy, issued by a Qualified Insurer,
and such other hazards as are customary in the area where the Mortgaged Property is located, and to the extent required by Seller
as of the date of origination consistent with the Acquisition Guidelines, against earthquake and other risks insured against by
Persons operating like properties in the locality of the Mortgaged Property, in an amount not less than the greatest of (i) 100%
of the replacement cost of all improvements to the Mortgaged Property, (ii) the outstanding principal balance of the Mortgage
Loan, or (iii) the amount necessary to avoid the operation of any co-insurance provisions with respect to the Mortgaged Property,
and consistent with the amount that would have been required as of the date of origination in accordance with the Acquisition Guidelines.
If any portion of the Mortgaged Property is in an area identified by any federal Governmental Authority as having special flood
hazards, and flood insurance is available, a flood insurance policy meeting the current guidelines of the Federal Emergency Management
Agency is in effect with a generally acceptable insurance carrier, in an amount representing coverage not less than the least of
(1) the outstanding principal balance of the Mortgage Loan (2) the full insurable value of the Mortgaged Property, and
(3) the maximum amount of insurance available under the National Flood Insurance Act of 1968, as amended by the Flood Disaster
Protection Act of 1974. All such insurance policies (collectively, the “hazard insurance policy”) contain a standard
mortgagee clause naming Seller, its successors and assigns (including, without limitation, subsequent owners of the Mortgage Loan),
as mortgagee, and may not be reduced, terminated or canceled without 30 days’ prior written notice to the mortgagee. No such
notice has been received by Seller. All premiums on such insurance policy have been paid. The related Mortgage obligates the Mortgagor
to maintain all such insurance and, at such Mortgagor’s failure to do so, authorizes the mortgagee to maintain such insurance
at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or
regulation, the Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy
is not a “master” or “blanket” hazard insurance policy covering a condominium, or any hazard insurance
policy covering the common facilities of a planned unit development. The hazard insurance policy is the valid and binding obligation
of the insurer and is in full force and effect. Seller has not engaged in, and has no knowledge of the Mortgagor’s having
engaged in, any act or omission which would impair the coverage of any such policy, the benefits of the endorsement provided for
herein, or the validity and binding effect of either including, without limitation, no unlawful fee, commission, kickback or other
unlawful compensation or value of any kind has been or will be received, retained or realized by any attorney, firm or other Person,
and no such unlawful items have been received, retained or realized by Seller.

 

    	Schedule 1-2

    	 

    

 

(f)          Environmental
Compliance. There does not exist on the Mortgaged Property any hazardous substances, hazardous wastes or solid wastes, as such
terms are defined in the Comprehensive Environmental Response Compensation and Liability Act, the Resource Conservation and Recovery
Act of 1976, or other applicable federal, state or local environmental laws including, without limitation, asbestos, in each case
in excess of the permitted limits and allowances set forth in such environmental laws to the extent such laws are applicable to
the Mortgaged Property. There is no pending action or proceeding directly involving the Mortgaged Property in which compliance
with any environmental law, rule or regulation is an issue; there is no violation of any applicable environmental law (including,
without limitation, asbestos), rule or regulation with respect to the Mortgaged Property; and nothing further remains to be done
to satisfy in full all requirements of each such law, rule or regulation constituting a prerequisite to use and enjoyment of said
property.

 

(g)          Compliance
with Applicable Laws. Any and all requirements of any federal, state or local law including, without limitation, usury, truth-in-lending,
real estate settlement procedures, consumer credit protection, equal credit opportunity or disclosure laws applicable to the Mortgage
Loan have been complied with, the consummation of the transactions contemplated hereby will not involve the violation of any such
laws or regulations, and Seller shall maintain or shall cause its agent to maintain in its possession, available for the inspection
of Buyer, and shall deliver to Buyer, upon demand, evidence of compliance with all such requirements.

 

(h)          No
Satisfaction of Mortgage. The Mortgage has not been satisfied, canceled, subordinated or rescinded, in whole or in part, and
the Mortgaged Property has not been released from the lien of the Mortgage, in whole or in part, nor has any instrument been executed
that would affect any such release, cancellation, subordination or rescission. Seller has not waived the performance by the Mortgagor
of any action, if the Mortgagor’s failure to perform such action would cause the Mortgage Loan to be in default, nor has
Seller waived any default resulting from any action or inaction by the Mortgagor.

 

(i)          Location
and Type of Mortgaged Property. The Mortgaged Property is located in an Acceptable State as identified in the Custodial Mortgage
Loan Schedule and consists of a single parcel of real property with a detached single family residence erected thereon, or a two-
to four-family dwelling, or an individual condominium unit in a low-rise Co-op Project, or an individual unit in a planned unit
development or a de minimis planned unit development; provided, however, that any condominium unit, Co-op Unit or planned unit
development shall conform to the Acquisition Guidelines and no residence or dwelling is a mobile home. No portion of the Mortgaged
Property is used for commercial purposes; provided, that, the Mortgaged Property may be a mixed use property if such Mortgaged
Property conforms to the Acquisition Guidelines.

 

    	Schedule 1-3

    	 

    

 

(j)          Valid
First Lien. The Mortgage is a valid, subsisting, enforceable and perfected with respect to each first lien Mortgage Loan, first
priority lien and first priority security interest on the real property included in the Mortgaged Property, including all buildings
on the Mortgaged Property and all installations and mechanical, electrical, plumbing, heating and air conditioning systems located
in or annexed to such buildings, and all additions, alterations and replacements made at any time with respect to the foregoing.
The lien of the Mortgage is subject only to:

 

a.           the
lien of current real property taxes and assessments not yet due and payable;

 

b.           covenants,
conditions and restrictions, rights of way, easements and other matters of the public record as of the date of recording acceptable
to prudent mortgage lending institutions generally and specifically referred to in Buyer’s title insurance policy delivered
to the originator of the Mortgage Loan and (a) referred to or otherwise considered in the appraisal made for the originator
of the Mortgage Loan or (b) which do not adversely affect the Appraised Value of the Mortgaged Property set forth in such
appraisal;

 

c.           other
matters to which like properties are commonly subject which do not materially interfere with the benefits of the security intended
to be provided by the Mortgage or the use, enjoyment, value or marketability of the related Mortgaged Property.

 

Any security agreement, chattel mortgage
or equivalent document related to and delivered in connection with the Mortgage Loan establishes and creates a valid, subsisting
and enforceable first lien and first priority security interest on the property described therein and Seller has full right to
pledge and assign the same to Buyer. The Mortgaged Property was not, as of the date of origination of the Mortgage Loan, subject
to a mortgage, deed of trust, deed to secure debt or other security instrument creating a lien subordinate to the lien of the Mortgage.

 

(k)          Validity
of Mortgage Documents. The Mortgage Note and the Mortgage and any other agreement executed and delivered by a Mortgagor or
guarantor, if applicable, in connection with a Mortgage Loan are genuine, and each is the legal, valid and binding obligation of
the maker thereof enforceable in accordance with its terms. All parties to the Mortgage Note, the Mortgage and any other such related
agreement had legal capacity to enter into the Mortgage Loan and to execute and deliver the Mortgage Note, the Mortgage and any
such agreement, and the Mortgage Note, the Mortgage and any other such related agreement have been duly and properly executed by
such related parties. No fraud, error, omission, misrepresentation, negligence or similar occurrence with respect to a Mortgage
Loan has taken place on the part of any Person, including, without limitation, the Mortgagor, any appraiser, any builder or developer,
or any other party involved in the origination of the Mortgage Loan. Seller has reviewed all of the documents constituting the
Mortgage File and has made such inquiries as it deems necessary to make and confirm the accuracy of the representations set forth
herein. To the best of Seller’s knowledge, except as disclosed to Buyer in writing, all tax identifications and property
descriptions are legally sufficient; and tax segregation, where required, has been completed.

 

    	Schedule 1-4

    	 

    

 

(l)          Full
Disbursement of Proceeds. There is no further requirement for future advances under the Mortgage Loan, and any and all requirements
as to completion of any on-site or off-site improvement and as to disbursements of any escrow funds therefor have been complied
with. All costs, fees and expenses incurred in making or closing the Mortgage Loan and the recording of the Mortgage were paid,
and the Mortgagor is not entitled to any refund of any amounts paid or due under the Mortgage Note or Mortgage. All broker fees
have been properly assessed to the Mortgagor and no claims will arise as to broker fees that are double charged and for which the
Mortgagor would be entitled to reimbursement.

 

(m)          Ownership.
Seller has full right to sell the Mortgage Loan to Buyer free and clear of any encumbrance, equity, participation interest, lien,
pledge, charge, claim or security interest, and has full right and authority subject to no interest or participation of, or agreement
with, any other party, to sell each Mortgage Loan pursuant to this Agreement and following the sale of each Mortgage Loan, Buyer
will own such Mortgage Loan (and with respect to any Co-op Loan, the sole owner of the related Assignment of Proprietary Lease)
free and clear of any encumbrance, equity, participation interest, lien, pledge, charge, claim or security interest except any
such security interest created pursuant to the terms of this Agreement.

 

(n)          Doing
Business. All parties which have had any interest in the Mortgage Loan, whether as mortgagee, assignee, pledgee or otherwise,
are (or, during the period in which they held and disposed of such interest, were) (i) in compliance with any and all applicable
licensing requirements of the laws of the state wherein the Mortgaged Property is located, and (ii) either (A) organized
under the laws of such state, (B) qualified to do business in such state, (C) a federal savings and loan association,
a savings bank or a national bank having a principal office in such state, or (D) not doing business in such state.

 

(o)          Title
Insurance. The Mortgage Loan is covered by either (i) an attorney’s opinion of title and abstract of title, the
form and substance of which is acceptable to prudent mortgage lending institutions making mortgage loans in the area wherein the
Mortgaged Property is located or (ii) an ALTA lender’s title insurance policy or other generally acceptable form of
policy or insurance acceptable to Buyer and each such title insurance policy is issued by a title insurer acceptable to Buyer and
qualified to do business in the jurisdiction where the Mortgaged Property is located, insuring Seller, its successors and assigns,
as to the first priority lien of the Mortgage, as applicable, in the original principal amount of the Mortgage Loan, with respect
to a Mortgage Loan, subject only to the exceptions contained in clauses (a), (b) and (c) of paragraph (j) of this Schedule 1,
and in the case of adjustable rate Mortgage Loans, against any loss by reason of the invalidity or unenforceability of the lien
resulting from the provisions of the Mortgage providing for adjustment to the Mortgage Interest Rate and Monthly Payment. Where
required by state law or regulation, the Mortgagor has been given the opportunity to choose the carrier of the required mortgage
title insurance. Additionally, such lender’s title insurance policy affirmatively insures ingress and egress and against
encroachments by or upon the Mortgaged Property or any interest therein. The title policy does not contain any special exceptions
(other than the standard exclusions) for zoning and uses and has been marked to delete the standard survey exception or to replace
the standard survey exception with a specific survey reading. Seller, its successors and assigns, are the sole insureds of such
lender’s title insurance policy, and such lender’s title insurance policy is valid and remains in full force and effect
and will be in force and effect upon the consummation of the transactions contemplated by this Agreement. No claims have been made
under such lender’s title insurance policy, and no prior holder or servicer of the related Mortgage, including Seller, has
done, by act or omission, anything which would impair the coverage of such lender’s title insurance policy, including without
limitation, no unlawful fee, commission, kickback or other unlawful compensation or value of any kind has been or will be received,
retained or realized by any attorney, firm or other Person, and no such unlawful items have been received, retained or realized
by Seller.

 

    	Schedule 1-5

    	 

    

 

(p)          No
Defaults. There is no default, breach, violation or event of acceleration existing under the Mortgage or the Mortgage Note
and no event has occurred which, with the passage of time or with notice and the expiration of any grace or cure period, would
constitute a default, breach, violation or event of acceleration, and neither Seller nor its predecessors have waived any default,
breach, violation or event of acceleration; and neither Seller nor any of its affiliates nor any of their respective predecessors,
have waived any default, breach, violation or event which would permit acceleration; and with respect to each Co-op Loan, there
is no default in complying with the terms of the Mortgage Note, the Assignment of Proprietary Lease and the Proprietary Lease and
all maintenance charges and assessments (including assessments payable in the future installments, which previously became due
and owing) have been paid, and Seller has the right under the terms of the Mortgage Note, Assignment of Proprietary Lease and Recognition
Agreement to pay any maintenance charges or assessments owed by the Mortgagor.

 

(q)          No
Mechanics’ Liens. There are no mechanics’ or similar liens or claims which have been filed for work, labor or material
(and no rights are outstanding that under the law could give rise to such liens) affecting the Mortgaged Property which are or
may be liens prior to, or equal or coordinate with, the lien of the Mortgage.

 

(r)          Location
of Improvements; No Encroachments. All improvements which were considered in determining the Appraised Value of the Mortgaged
Property lie wholly within the boundaries and building restriction lines of the Mortgaged Property, and no improvements on adjoining
properties encroach upon the Mortgaged Property. No improvement located on or being part of the Mortgaged Property is in violation
of any applicable zoning and building law, ordinance or regulation. All seller and/or builder concessions have been subtracted
from the Appraised Value of the Mortgage Property for purposes of determining the LTV.

 

(s)          Origination;
Payment Terms. The Mortgage Loan was originated by or in conjunction with a mortgagee approved by a savings and loan association,
a savings bank, a commercial bank, credit union, insurance company or similar banking institution which is supervised and examined
by a federal or state authority. Principal and interest payments on the Mortgage Loan commenced no more than 60 days after funds
were disbursed in connection with the Mortgage Loan. No Mortgage Loan has a balloon payment feature. The Mortgagor contributed
at least five percent (5%) of the purchase price for the Mortgaged Property from their own funds. Interest on the Mortgage Loan
is calculated on the basis of a 360-day year consisting of twelve 30-day months. With respect to adjustable rate Mortgage Loans,
the Mortgage Interest Rate is adjusted on each Interest Rate Adjustment Date to equal the Index plus the Gross Margin (rounded
up or down to the nearest .125%), subject to the Mortgage Interest Rate Cap. The Mortgage Note is payable on the first day of each
month in equal monthly installments of principal and interest, which installments of interest with respect to adjustable rate Mortgage
Loans, are subject to change on the Interest Rate Adjustment Date due to adjustments to the Mortgage Interest Rate on each Interest
Rate Adjustment Date with interest calculated and payable in arrears, sufficient to amortize the Mortgage Loan fully by the stated
maturity date, over an original term of not more than 30 years from commencement of amortization.

 

    	Schedule 1-6

    	 

    

 

(t)          Customary
Provisions. The Mortgage Note has a stated maturity. The Mortgage contains customary and enforceable provisions such as to
render the rights and remedies of the holder thereof adequate for the realization against the Mortgaged Property of the benefits
of the security provided thereby, including, (i) in the case of a Mortgage designated as a deed of trust, by trustee’s
sale, and (ii) otherwise by judicial foreclosure. Upon default by a Mortgagor on a Mortgage Loan and foreclosure on, or trustee’s
sale of, the Mortgaged Property pursuant to the proper procedures, the holder of the Mortgage Loan will be able to deliver good
and merchantable title to the Mortgaged Property. There is no homestead or other exemption or other right available to the Mortgagor
or any other person, or restriction on the Seller or any other person, including without limitation, any federal, state or local,
law, ordinance, decree, regulation, guidance, attorney general action, or other pronouncement, whether temporary or permanent in
nature, that would interfere with, restrict or delay, either (y) the ability of the Seller, Buyer or any servicer or any successor
servicer to sell the related Mortgaged Property at a trustee's sale or otherwise, or (z) the ability of the Seller, Buyer
or any servicer or any successor servicer to foreclose on the related Mortgage. The Mortgage Note and Mortgage are on forms acceptable
to Buyer.

 

(u)          Occupancy
of the Mortgaged Property. As of the Purchase Date the Mortgaged Property is lawfully occupied under applicable law. All inspections,
licenses and certificates required to be made or issued with respect to all occupied portions of the Mortgaged Property and, with
respect to the use and occupancy of the same, including but not limited to certificates of occupancy and fire underwriting certificates,
have been made or obtained from the appropriate authorities. Seller has not received notification from any Governmental Authority
that the Mortgaged Property is in material non-compliance with such laws or regulations, is being used, operated or occupied unlawfully
or has failed to have or obtain such inspection, licenses or certificates, as the case may be. Seller has not received notice of
any violation or failure to conform with any such law, ordinance, regulation, standard, license or certificate. With respect to
any Mortgage Loan originated with an “owner-occupied” Mortgaged Property, the Mortgagor represented at the time of
origination of the Mortgage Loan that the Mortgagor would occupy the Mortgaged Property as the Mortgagor’s primary residence.

 

(v)         No
Additional Collateral. The Mortgage Note is not and has not been secured by any collateral except the lien of the corresponding
Mortgage and the security interest of any applicable security agreement or chattel mortgage referred to in clause (j) above.

 

(w)          Deeds
of Trust. In the event the Mortgage constitutes a deed of trust, a trustee, authorized and duly qualified under applicable
law to serve as such, has been properly designated and currently so serves and is named in the Mortgage, and no fees or expenses
are or will become payable by the Custodian or Buyer to the trustee under the deed of trust, except in connection with a trustee’s
sale after default by the Mortgagor.

 

    	Schedule 1-7

    	 

    

 

(x)          Transfer
of Mortgage Loans. Except for Mortgage Loans registered with MERS, the Assignment of Mortgage is in recordable form and is
acceptable for recording under the laws of the jurisdiction in which the Mortgaged Property is located.

 

(y)          Due-On-Sale.
The Mortgage contains an enforceable provision for the acceleration of the payment of the unpaid principal balance of the Mortgage
Loan in the event that the Mortgaged Property is sold or transferred without the prior written consent of the mortgagee thereunder.

 

(z)          No
Buydown Provisions; No Graduated Payments or Contingent Interests. The Mortgage Loan does not contain provisions pursuant to
which Monthly Payments are paid or partially paid with funds deposited in any separate account established by Seller, the Mortgagor,
or anyone on behalf of the Mortgagor, or paid by any source other than the Mortgagor nor does it contain any other similar provisions
which may constitute a “buydown” provision. The Mortgage Loan is not a graduated payment mortgage loan and the Mortgage
Loan does not have a shared appreciation or other contingent interest feature.

 

(aa)         Consolidation
of Future Advances. Any future advances made to the Mortgagor prior to the Purchase Date have been consolidated with the outstanding
principal amount secured by the Mortgage, and the secured principal amount, as consolidated, bears a single interest rate and single
repayment term. The lien of the Mortgage securing the consolidated principal amount is expressly insured as having first lien priority
by a title insurance policy, an endorsement to the policy insuring the mortgagee’s consolidated interest or by other title
evidence acceptable to Buyer. The consolidated principal amount does not exceed the original principal amount of the Mortgage Loan.

 

(bb)         No
Condemnation Proceeding. There have not been any condemnation proceedings with respect to the Mortgaged Property and Seller
has no knowledge of any such proceedings.

 

(cc)         Collection
Practices; Escrow Deposits; Interest Rate Adjustments. The origination and collection practices used by the originator, each
servicer of the Mortgage Loan and Seller with respect to the Mortgage Loan have been in all respects in compliance with Accepted
Servicing Practices, applicable laws and regulations, and have been in all respects legal and proper. With respect to escrow deposits
and Escrow Payments, all such payments are in the possession of, or under the control of, Seller and there exist no deficiencies
in connection therewith for which customary arrangements for repayment thereof have not been made. All Escrow Payments have been
collected in full compliance with state and federal law. An escrow of funds is not prohibited by applicable law and has been established
in an amount sufficient to pay for every item that remains unpaid and has been assessed but is not yet due and payable. No escrow
deposits or Escrow Payments or other charges or payments due Seller have been capitalized under the Mortgage or the Mortgage Note.
All Mortgage Interest Rate adjustments have been made in strict compliance with state and federal law and the terms of the related
Mortgage Note. Any interest required to be paid pursuant to state, federal and local law has been properly paid and credited.

 

    	Schedule 1-8

    	 

    

 

(dd)         Conversion
to Fixed Interest Rate. Except as expressly approved in writing by Buyer, with respect to adjustable rate Mortgage Loans, the
Mortgage Loan is not convertible to a fixed interest rate Mortgage Loan.

 

(ee)         Other
Insurance Policies. No action, inaction or event has occurred and no state of facts exists or has existed that has resulted
or will result in the exclusion from, denial of, or defense to coverage under any applicable special hazard insurance policy, private
mortgage insurance policy or bankruptcy bond, irrespective of the cause of such failure of coverage. In connection with the placement
of any such insurance, no commission, fee, or other compensation has been or will be received by Seller or by any officer, director,
or employee of Seller or any designee of Seller or any corporation in which Seller or any officer, director, or employee had a
financial interest at the time of placement of such insurance.

 

(ff)         Servicemembers
Civil Relief Act. The Mortgagor has not notified Seller, and Seller has no knowledge, of any relief requested or allowed to
the Mortgagor under the Servicemembers Civil Relief Act of 2003.

 

(gg)         Appraisal.
The Mortgage File contains an appraisal of the related Mortgaged Property signed prior to the funding of the Mortgage Loan by a
qualified appraiser, duly appointed by Seller, who had no interest, direct or indirect in the Mortgaged Property or in any loan
made on the security thereof, and whose compensation is not affected by the approval or disapproval of the Mortgage Loan, and the
appraisal and appraiser both satisfy the requirements of Fannie Mae or Freddie Mac and Title XI of the Federal Institutions
Reform, Recovery, and Enforcement Act of 1989 as amended and the regulations promulgated thereunder, all as in effect on the date
the Mortgage Loan was originated. As of the origination date, no appraisal is more than one hundred and twenty (120) days old.

 

(hh)         Disclosure
Materials. The Mortgagor has executed a statement to the effect that the Mortgagor has received all disclosure materials required
by applicable law with respect to the making of adjustable rate mortgage loans, and Seller maintains such statement in the Mortgage
File.

 

(ii)         Construction
or Rehabilitation of Mortgaged Property. No Mortgage Loan was made in connection with the construction or rehabilitation of
a Mortgaged Property or facilitating the trade-in or exchange of a Mortgaged Property.

 

(jj)         No
Defense to Insurance Coverage. No action has been taken or failed to be taken, no event has occurred and no state of facts
exists or has existed on or prior to the Purchase Date (whether or not known to Seller on or prior to such date) which has resulted
or will result in an exclusion from, denial of, or defense to coverage under any private mortgage insurance (including, without
limitation, any exclusions, denials or defenses which would limit or reduce the availability of the timely payment of the full
amount of the loss otherwise due thereunder to the insured) whether arising out of actions, representations, errors, omissions,
negligence, or fraud of Seller, the related Mortgagor or any party involved in the application for such coverage, including the
appraisal, plans and specifications and other exhibits or documents submitted therewith to the insurer under such insurance policy,
or for any other reason under such coverage, but not including the failure of such insurer to pay by reason of such insurer’s
breach of such insurance policy or such insurer’s financial inability to pay.

 

    	Schedule 1-9

    	 

    

 

(kk)         Capitalization
of Interest. The Mortgage Note does not by its terms provide for the capitalization or forbearance of interest.

 

(ll)         No
Equity Participation. No document relating to the Mortgage Loan provides for any contingent or additional interest in the form
of participation in the cash flow of the Mortgaged Property or a sharing in the appreciation of the value of the Mortgaged Property.
The indebtedness evidenced by the Mortgage Note is not convertible to an ownership interest in the Mortgaged Property or the Mortgagor
and Seller has not financed nor does it own directly or indirectly, any equity of any form in the Mortgaged Property or the Mortgagor.

 

(mm)         Proceeds
of Mortgage Loan. The proceeds of the Mortgage Loan have not been and shall not be used to satisfy, in whole or in part, any
debt owed or owing by the Mortgagor to Seller or any Affiliate or correspondent of Seller, except in connection with a refinanced
Mortgage Loan; provided, however, no such refinanced Mortgage Loan shall have been originated pursuant to a streamlined mortgage
loan refinancing program.

 

(nn)         Origination
Date. The Mortgage Loan was not originated prior to January 1, 2009.

 

(oo)         No
Exception. The Custodian has not noted any material exceptions on a Custodial Mortgage Loan Schedule with respect to the Mortgage
Loan which would materially adversely affect the Mortgage Loan or Buyer’s interest in the Mortgage Loan.

 

(pp)         Mortgage
Submitted for Recordation. The Mortgage either has been or will promptly be submitted for recordation in the appropriate governmental
recording office of the jurisdiction where the Mortgaged Property is located.

 

(qq)         Documents
Genuine. Such Purchased Mortgage Loan and all accompanying collateral documents are complete and authentic and all signatures
thereon are genuine. Such Purchased Mortgage Loan is a “closed” loan fully funded by Seller and held in Seller’s
name.

 

(rr)         Bona
Fide Loan. Such Purchased Mortgage Loan arose from a bona fide loan, complying with all applicable State and Federal laws and
regulations, to persons having legal capacity to contract and is not subject to any defense, set-off or counterclaim.

 

(ss)         Other
Encumbrances. To the best of Seller’s knowledge, any property subject to any security interest given in connection with
such Purchased Mortgage Loan is not subject to any other encumbrances other than a stated first mortgage, if applicable, and encumbrances
which may be allowed under the Acquisition Guidelines.

 

(tt)         Description.
Each Purchased Mortgage Loan conforms to the description thereof as set forth on the related Custodial Mortgage Loan Schedule delivered
to the Custodian and Buyer.

 

    	Schedule 1-10

    	 

    

 

(uu)         Located
in U.S. No collateral (including, without limitation, the related real property and the dwellings thereon and otherwise) relating
to a Purchased Mortgage Loan is located in any jurisdiction other than in one of the fifty (50) states of the United States of
America or the District of Columbia.

 

(vv)         Acquisition
Guidelines. Each Purchased Mortgage Loan has been originated in accordance with the Acquisition Guidelines (including all supplements
or amendments thereto) previously provided to Buyer.

 

(ww)         Aging.
Such Purchased Mortgage Loan has not been subject to a Transaction hereunder for more than the applicable Aging Limit.

 

(xx)        Natural
Persons. The Mortgagor in respect of such Mortgage Loan is a natural person.

 

(yy)         Committed
Mortgage Loans. Each Committed Mortgage Loan is covered by a Take-out Commitment, does not exceed the availability under such
Take-out Commitment (taking into consideration mortgage loans which have been purchased by the respective Take-out Investor under
the Take-out Commitment and mortgage loan which Seller has identified to Buyer as covered by such Take-out Commitment) and conforms
to the requirements and the specifications set forth in such Take-out Commitment and the related regulations, rules, requirements
and/or handbooks of the applicable Take-out Investor and is eligible for sale to and insurance or guaranty by, respectively the
applicable Take-out Investor and applicable insurer. Each Take-out Commitment is a legal, valid and binding obligation of Seller
enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’
rights generally and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought
in a proceeding in equity or at law).

 

(zz)         Primary
Mortgage Guaranty Insurance. Each Mortgage Loan is insured as to payment defaults by a policy of primary mortgage guaranty
insurance in the amount required where applicable, and by an insurer approved, by the applicable Take-out Investor, if applicable,
and all provisions of such primary mortgage guaranty insurance have been and are being complied with, such policy is in full force
and effect, and all premiums due thereunder have been paid.

 

(aaa)        Tax
Service. The Mortgage Loan is covered by a life of loan, transferrable real estate tax service contract that may be assigned
to Buyer.

 

(bbb)        Predatory
Lending Regulations; High Cost Loans. No Mortgage Loan (i) is classified as High Cost Mortgage Loans (ii) is subject
to any law, regulation or rule that (A) imposes liability on a mortgagee or a lender to a mortgagee for upkeep to a Mortgaged
Property prior to completion of foreclosure thereon, or (B) imposes liability on a lender to a mortgagee for acts or omissions
of the mortgagee or otherwise defines a mortgagee in a manner that would include a lender to a mortgagee.

 

(ccc)        Credit
Score and Reporting. As of the Purchase Date, the Mortgagor’s credit score as listed on the Mortgage Loan Schedule is
no more than ninety (90) days old. Full, complete and accurate information with respect to the Mortgagor’s credit file was
furnished to Equifax, Experian and Trans Union Credit Information in accordance with the Fair Credit Reporting Act and its implementing
regulations.

 

    	Schedule 1-11

    	 

    

 

(ddd)        Wet-Ink
Mortgage Loans. With respect to each Mortgage Loan that is a Wet-Ink Mortgage Loan, the Settlement Agent has been instructed
in writing by Seller to hold the related Mortgage Loan Documents as agent and bailee for Buyer or Buyer agent and to promptly forward
such Mortgage Loan Documents in accordance with the provisions of the Custodial Agreement and the Escrow Instruction Letter.

 

(eee)        Mortgage
Loan Schedule. The information set forth in the related Mortgage Loan Schedule and all other information or data furnished
by, or on behalf of, Seller to Buyer is complete, true and correct in all material respects.

 

(fff)        Qualified
Mortgage. Notwithstanding anything to the contrary set forth in this Agreement, on and after January 10, 2014 (or such later
date as set forth in the relevant regulations), (i) prior to the origination of each Mortgage Loan, the originator made a reasonable
and good faith determination that the Mortgagor had a reasonable ability to repay the loan according to its terms, in accordance
with, at a minimum, the eight underwriting factors set forth in 12 CFR 1026.43(c) and (ii) each Mortgage Loan is a “Qualified
Mortgage” as defined in 12 CFR 1026.43(e).

 

(ggg)        Reserved.

 

(hhh)        Co-op
Loan: Valid First Lien. With respect to each Co-op Loan, the related Mortgage is a valid, enforceable and subsisting first
security interest on the related cooperative shares securing the related cooperative note and lease, subject only to (a) liens
of the cooperative for unpaid assessments representing the Mortgagor’s pro rata share of the cooperative’s payments
for its blanket mortgage, current and future real property taxes, insurance premiums, maintenance fees and other assessments to
which like collateral is commonly subject and (b) other matters to which like collateral is commonly subject which do not materially
interfere with the benefits of the security intended to be provided by the security interest. There are no liens against or security
interests in the cooperative shares relating to each Co-op Loan (except for unpaid maintenance, assessments and other amounts owed
to the related cooperative which individually or in the aggregate will not have a material adverse effect on such Co-op Loan),
which have priority equal to or over Seller’s security interest in such Co-op Shares.

 

(iii)        Co-op
Loan: Compliance with Law. With respect to each Co-op Loan, the related cooperative corporation that owns title to the related
cooperative apartment building is a “cooperative housing corporation” within the meaning of Section 216 of the Internal
Revenue Code, and is in material compliance with applicable federal, state and local laws which, if not complied with, could have
a material adverse effect on the Mortgaged Property.

 

(jjj)        Co-op
Loan: No Pledge. With respect to each Co-op Loan, there is no prohibition against pledging the shares of the cooperative corporation
or assigning the Proprietary Lease. With respect to each Co-op Loan, (i) the term of the related Proprietary Lease is longer than
the term of the Co-op Loan, (ii) there is no provision in any Proprietary Lease which requires the Mortgagor to offer for sale
the Co-op Shares owned by such Mortgagor first to the Co-op Corporation, (iii) there is no prohibition in any Proprietary Lease
against pledging the Co-op Shares or assigning the Proprietary Lease and (iv) the Recognition Agreement is on a form of agreement
published by Aztech Document Systems, Inc. as of the date hereof or includes provisions which are no less favorable to the lender
than those contained in such agreement.

 

    	Schedule 1-12

    	 

    

 

(kkk)        Co-op
Loan: Acceleration of Payment. With respect to each Co-op Loan, each Assignment of Proprietary Lease contains enforceable provisions
such as to render the rights and remedies of the holder thereof adequate for the realization of the material benefits of the security
provided thereby. The Assignment of Proprietary Lease contains an enforceable provision for the acceleration of the payment of
the unpaid principal balance of the Mortgage Note in the event the Co-op Unit is transferred or sold without the consent of the
holder thereof.

 

    	Schedule 1-13

    	 

    

 

SCHEDULE 2

AUTHORIZED REPRESENTATIVES

 

SELLER AUTHORIZATIONS

 

Any of the persons whose signatures and
titles appear below are authorized, acting singly, to act for Seller under this Agreement:

 

Authorized Representatives for execution
of Program Agreements and amendments

	Name	 	Title	 	Signature
	 	 	 	 	 
	David Akre	 	 	 	 
	 	 	 	 	 
	David Carroll	 	 	 	 
	 	 	 	 	 
	Darren Comisso	 	 	 	 

 

Authorized Representatives for execution
of Transaction Requests and day-to-day operational functions

 

	Name	 	Title	 	Signature
	 	 	 	 	 
	David Akre	 	 	 	 
	 	 	 	 	 
	David Carroll	 	 	 	 
	 	 	 	 	 
	Darren Comisso	 	 	 	 

 

Signature Page to the Master Repurchase
Agreement

 

    	 

    	 

    

 

BUYER AUTHORIZATIONS

 

Any of the persons whose signatures and
titles appear below, including any other authorized officers, are authorized, acting singly, to act for Buyer under this Agreement:

 

	Name	 	Title	 	Signature
	 	 	 	 	 
	Bruce Kaiserman	 	 	 	 
	 	 	 	 	 
	Margaret Dellafera	 	 	 	 
	 	 	 	 	 
	Adam Loskove	 	 	 	 

 

Signature Page to the Master Repurchase
Agreement

 

    	 

    	 

    

 

EXHIBIT A

 

FORM OF
PURCHASE CONFIRMATION

 

[Date]

 

	[Name]
	 	 
	 	 
	Attention:

 

Credit Suisse First Boston Mortgage Capital
LLC (“CSFBMCL”) is pleased to confirm your sale and our purchase of the Mortgage Loans described below and on the attached
Custodial Mortgage Loan Schedule pursuant to the Master Repurchase Agreement dated as of February 25, 2014 (as amended from time
to time, the “Master Repurchase Agreement”) by and among Five Oaks Acquisition Corp., Five Oaks Investment Corp. and
Credit Suisse First Boston Mortgage Capital LLC under the following terms and conditions:

 

	Market Value:	 	$		 
	Current Principal Amount of Mortgage Loans:	 	$		 
	Aggregate Purchase Price:	 	$		 
	Purchase Date:	 	 	 	 
	Repurchase Date:	 	 	 	 
	Pricing Rate:	 	 	 	 
	 	 	 	 	 
	ADDITIONAL INFORMATION:	 	 	 	 
	Aggregate Purchase Price (date):	 	$		 
	Less Previous Aggregate Purchase Price:	 	$		 
	Less Price Differential due on (date):	 	$		 
	Net funds due [CSFB]/[Name] on (date):	 	$		 

 

The Master Repurchase Agreement is incorporated
by reference into this Transaction Confirmation, is made a part hereof as if it were fully set forth herein and is extended hereby
until all amounts due in connection with this Transaction are paid in full.

 

    	A-1

    	 

    

 

All capitalized terms used herein but not
defined herein shall have the meanings specified in the Master Repurchase Agreement.

 

	 	CREDIT SUISSE FIRST BOSTON MORTGAGE
	 	CAPITAL LLC
	 	 
	 	By:	 
	 	Name:
	 	Title:

 

[Name]

 

	By:	 	 
	Name:	 
	Title:	 

 

    	A-2

    	 

    

 

EXHIBIT B

 

RESERVED

 

    	B-1

    	 

    

 

EXHIBIT C

 

RESERVED

 

    	C-1

    	 

    

 

EXHIBIT D

 

FORM OF
POWER OF ATTORNEY

 

KNOW ALL MEN BY THESE
PRESENTS, that Five Oaks Acquisition Corp. (“Seller”) hereby irrevocably constitutes and appoints Credit Suisse First
Boston Mortgage Capital LLC (“Buyer”) and any officer or agent thereof, with full power of substitution, as its true
and lawful attorney-in-fact with full irrevocable power and authority in the place and stead of Seller and in the name of Seller
or in its own name, from time to time in Buyer’s discretion:

 

(a)          in
the name of Seller, or in its own name, or otherwise, to take possession of and endorse and collect any checks, drafts, notes,
acceptances or other instruments for the payment of moneys due with respect to any assets purchased by Buyer under the Master Repurchase
Agreement (as amended, restated or modified) dated February 25, 2014 (the “Assets”) and to file any claim or to take
any other action or proceeding in any court of law or equity or otherwise deemed appropriate by Buyer for the purpose of collecting
any and all such moneys due with respect to any other assets whenever payable;

 

(b)          to
pay or discharge taxes and liens levied or placed on or threatened against the Assets;

 

(c)          (i) to
direct any party liable for any payment under any Assets to make payment of any and all moneys due or to become due thereunder
directly to Buyer or as Buyer shall direct; (ii) to ask or demand for, collect, receive payment of and receipt for, any and
all moneys, claims and other amounts due or to become due at any time in respect of or arising out of any Assets; (iii) to
sign and endorse any invoices, assignments, verifications, notices and other documents in connection with any Assets; (iv) to
commence and prosecute any suits, actions or proceedings at law or in equity in any court of competent jurisdiction to collect
the Assets or any proceeds thereof and to enforce any other right in respect of any Assets; (v) to defend any suit, action
or proceeding brought against Seller with respect to any Assets; (vi) to settle, compromise or adjust any suit, action or
proceeding described in clause (v) above and, in connection therewith, to give such discharges or releases as Buyer may deem
appropriate; and (vi) generally, to sell, transfer, pledge and make any agreement with respect to or otherwise deal with any
Assets as fully and completely as though Buyer were the absolute owner thereof for all purposes, and to do, at Buyer’s option
and Seller’s expense, at any time, and from time to time, all acts and things which Buyer deems necessary to protect, preserve
or realize upon the Assets and Buyer’s Liens thereon and to effect the intent of this Agreement, all as fully and effectively
as Seller might do;

 

(d)          for
the purpose of carrying out the transfer of servicing with respect to the Assets from Seller to a successor servicer appointed
by Buyer in its sole discretion and to take any and all appropriate action and to execute any and all documents and instruments
which may be necessary or desirable to accomplish such transfer of servicing, and, without limiting the generality of the foregoing,
Seller hereby gives Buyer the power and right, on behalf of Seller, without assent by Seller, to, in the name of Seller or its
own name, or otherwise, prepare and send or cause to be sent “good-bye” letters to all mortgagors under the Assets,
transferring the servicing of the Assets to a successor servicer appointed by Buyer in its sole discretion;

 

    	D-1

    	 

    

 

(e)          for
the purpose of delivering any notices of sale to mortgagors or other third parties, including without limitation, those required
by law.

 

Seller hereby ratifies
all that said attorneys shall lawfully do or cause to be done by virtue hereof. This power of attorney is a power coupled with
an interest and shall be irrevocable.

 

Seller also authorizes
Buyer, from time to time, to execute, in connection with any sale, any endorsements, assignments or other instruments of conveyance
or transfer with respect to the Assets.

 

The powers conferred
on Buyer hereunder are solely to protect Buyer’s interests in the Assets and shall not impose any duty upon it to exercise
any such powers. Buyer shall be accountable only for amounts that it actually receives as a result of the exercise of such powers,
and neither it nor any of its officers, directors, employees or agents shall be responsible to Seller for any act or failure to
act hereunder, except for its or their own gross negligence or willful misconduct.

 

TO INDUCE ANY THIRD PARTY
TO ACT HEREUNDER, SELLER HEREBY AGREES THAT ANY THIRD PARTY RECEIVING A DULY EXECUTED COPY OR FACSIMILE OF THIS INSTRUMENT MAY
ACT HEREUNDER, AND THAT REVOCATION OR TERMINATION HEREOF SHALL BE INEFFECTIVE AS TO SUCH THIRD PARTY UNLESS AND UNTIL ACTUAL NOTICE
OR KNOWLEDGE OF SUCH REVOCATION OR TERMINATION SHALL HAVE BEEN RECEIVED BY SUCH THIRD PARTY, AND BUYER ON ITS OWN BEHALF AND ON
BEHALF OF BUYER’S ASSIGNS, HEREBY AGREES TO INDEMNIFY AND HOLD HARMLESS ANY SUCH THIRD PARTY FROM AND AGAINST ANY AND ALL
CLAIMS THAT MAY ARISE AGAINST SUCH THIRD PARTY BY REASON OF SUCH THIRD PARTY HAVING RELIED ON THE PROVISIONS OF THIS INSTRUMENT.

 

[REMAINDER OF PAGE INTENTIONALLY
BLANK. SIGNATURES FOLLOW.]

 

    	D-2

    	 

    

 

IN WITNESS WHEREOF Seller
has caused this Power of Attorney to be executed and Seller’s seal to be affixed this ______ day of ____________, 2014.

 

	 	FIVE OAKS ACQUISITION CORP.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

Signature Page to Power of Attorney

 

    	 

    	 

    

 

	STATE OF	)	 	 
	 	)	ss.:	 
	COUNTY OF	)	 	 

 

On the ______ day of
____________, 201__ before me, a Notary Public in and for said State, personally appeared ________________________________, known
to me to be _____________________________________ of Five Oaks Acquisition Corp., the institution that executed the within instrument
and also known to me to be the person who executed it on behalf of said corporation, and acknowledged to me that such corporation
executed the within instrument.

 

IN WITNESS WHEREOF, I
have hereunto set my hand affixed my office seal the day and year in this certificate first above written.

 

	 	 
	Notary Public

 

My Commission expires ________________________________

 

Signature Page to Power of Attorney

 

    	 

    	 

    

 

EXHIBIT E

 

FORM OF
OPINION OF SELLER’S COUNSEL

 

_________, ____

 

Credit Suisse First Boston Mortgage Capital LLC

Eleven Madison Avenue

New York, New York 10010

 

Ladies and Gentlemen:

 

We have acted as counsel
to Five Oaks Acquisition Corp. (“Seller”) and Five Oaks Investment Corp. (“Guarantor”) in
connection with the sale and repurchase by Seller of certain loans (the “Mortgage Loans”) purchased from time to time
(each such date, a “Purchase Date”) by Credit Suisse First Boston Mortgage Capital LLC (“Buyer”)
pursuant to a Master Repurchase Agreement, dated as of February 25, 2014, among Seller, Guarantor and Buyer (the “Master
Repurchase Agreement”) and Guarantor’s guarantee of Seller’s obligations under the Master Repurchase Agreement
pursuant to the Guaranty dated as of February 25, 2014 (the “Guaranty”). Capitalized terms used but not defined
herein shall have the meanings set forth in the Master Repurchase Agreement.

 

We have acted as counsel
to Seller and Guarantor in connection with the preparation, execution and delivery of, and the initial purchase of Mortgage Loans
made under, the Master Repurchase Agreement and the Guaranty.

 

In connection with
rendering this opinion, we have examined such documents as we have deemed necessary or advisable, including the following documents:

 

a.           The
Program Agreements;

 

b.           The
organizational documents of Seller and the Guarantor;

 

c.           The
certified Consents of the Officer of Seller and the Guarantor relating to the transactions provided for in the Program Agreements;

 

d.           A
copy of a UCC-1 financing statement describing the Repurchase Assets naming Seller as debtor and Buyer as secured party, which
will be filed under the Uniform Commercial Code as in effect in the State of ___________ with the office of the [Secretary of the
State] of _________ (the “Filing Office”) on or about ________ __, 20__ (the “Financing Statement”);

 

e.           The
reports attached hereto as Exhibit A (the “Search Reports”), which set forth the results of an examination
conducted by [Federal Research Corporation] of all currently indexed UCC-1 financing statements naming Seller as debtor that are
on file in the Filing Office;

 

f.            Good
standing certificates, as of a recent date, for Seller and Guarantor from each of the States listed on Schedule 1 attached
hereto; and

 

    	E-1

    	 

    

 

g.           The
certificates, letters and opinions required to be furnished by Seller, Guarantor and others in connection with the execution of
the Program Agreements, and the additional certificates, letter and documents delivered by or on behalf of such parties concurrently
herewith.

 

For purposes of the
opinions expressed below, we have assumed the authenticity of all documents submitted to us as originals, the genuineness of all
signatures, the legal capacity of natural persons and the conformity to the originals of all documents.

 

Based solely upon the
foregoing, we are of the opinion that:

 

1.          Seller
is a corporation, duly organized, validly existing and in good standing under the laws of the State of Delaware, and has the corporate
power and authority to own its properties and transact the business in which it is engaged. Seller is duly qualified as a foreign
[[          ]] to transact business in, and is in good standing under, the laws
of each state in which a mortgaged property is located or is otherwise exempt under applicable law from such qualification. The
principal place of business of Seller is located at ___________.

 

2.          Guarantor
is a corporation, duly organized, validly existing and in good standing under the laws of the State of Maryland, and has the corporate
power and authority to own its properties and transact the business in which it is engaged. Guarantor is duly qualified as a foreign
corporation to transact business in, and is in good standing under, the laws of each state in which a mortgaged property is located
or is otherwise exempt under applicable law from such qualification. The principal place of business of Guarantor is located at
_______.

 

3.          Seller
has the power to engage in the transactions contemplated by the Program Agreements, and has all requisite power, authority and
legal right to execute and deliver the Program Agreements, to transfer and deliver the Repurchase Assets and to perform and observe
the terms and conditions of the Program Agreements. Guarantor has the power, authority and legal right to issue and deliver the
Guaranty and to perform and observe the terms and conditions thereof.

 

4.          The
Program Agreements have been duly and validly authorized, executed and delivered by each of Seller and Guarantor, as applicable,
and are valid, legal and binding agreements, enforceable against Seller and Guarantor in accordance with their respective terms,
subject to the effect of bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the
enforcement of creditors’ rights generally, none of which will materially interfere with the realization of the benefits
provided thereunder or with Buyer’s ownership of the Mortgage Loans.

 

5.          No
consent, approval, authorization or order of, or notice, filing or registration with, any court or governmental agency or body
is required for the execution, delivery and performance by either Seller or Guarantor of, or compliance by such entity with, the
Program Agreements, or the transfer of the Repurchase Assets or the consummation of the transactions contemplated by the Program
Agreements.

 

    	E-2

    	 

    

 

6.          Neither
the transfer or delivery of the Mortgage Loans, nor the consummation of any other of the transactions contemplated in the Program
Agreements, nor the fulfillment of the terms of the Program Agreements will result in a breach of or constitutes or will constitute
a default under (a) the charter or by-laws of either of Seller or Guarantor, or the terms of any material indenture or other
agreement or instrument to which either Seller or Guarantor is a party or by which it is bound or to which it is subject, (b) any
contractual or legal restriction contained in any indenture, mortgage, deed of trust, agreement, instrument or other similar document
to which Seller is a party or by which it is bound or to which it is subject, or (c) any statute or order, rule, regulation,
writ, injunction or decree of any court, governmental authority or regulatory body to which either Seller or Guarantor or any of
its properties is subject or by which it is bound.

 

7.          There
are no actions, suits, proceedings or investigations pending or, to the best of our knowledge, threatened against either Seller
or Guarantor that, in our judgment, either in any one instance or in the aggregate, may result in any material adverse change in
the business, operations, financial condition, properties or assets of either Seller or Guarantor or in any material impairment
of the right or ability of either Seller or Guarantor to carry on its business substantially as now conducted or in any material
liability on the part of either Seller or Guarantor that would draw into question the validity of the Program Agreements, or of
any action taken or to be taken in connection with the transactions contemplated thereby, or that would be likely to impair materially
the ability of either Seller or Guarantor to perform under the terms of, the Program Agreements.

 

8.          The
Repurchase Agreement is effective to create, in favor of the Buyer, a valid “security interest” as defined in Section 1-201(37)
of the Uniform Commercial Code in all of the right, title and interest of the Seller in, to and under the Repurchase Assets, except
that (a) such security interests will continue in Repurchase Assets after its sale, exchange or other disposition only to
the extent provided in Section 9-315 of the Uniform Commercial Code, (b) the security interests in Repurchase Assets
in which the Seller acquires rights after the commencement of a case under the Bankruptcy Code in respect of the Seller may be
limited by Section 552 of the Bankruptcy Code.

 

9.          When
the Mortgage Notes are delivered to the Custodian, endorsed in blank by a duly authorized officer of Seller, the security interest
referred to in Section [8] above in the Mortgage Notes will constitute a fully perfected first-priority security interest
in all right, title and interest of Seller therein.         

 

10.         (a)          Upon
the filing of Financing Statements with the Filing Office, the security interests referred to in Section [8] above will constitute
a fully perfected security interest under the Uniform Commercial Code in all right, title and interest of Seller in, to and under
such Repurchase Assets, to the extent that a security interest therein can be perfected by filing under the Uniform Commercial
Code.

 

(b)          The
UCC Search Report sets forth the proper filing offices and the proper debtors necessary to identify those Persons who have on file
in the jurisdictions listed on Schedule 1 financing statements covering the Repurchase Assets as of the dates and times specified
on Schedule 2. The UCC Search Report identifies no Person who has filed in any Filing Office a financing statement describing
the Repurchase Assets prior to the effective dates of the UCC Search Report.

 

    	E-3

    	 

    

 

11.         Neither
Seller nor Guarantor is an “investment company”, or a company “controlled” by an “investment company,”
within the meaning of the Investment Company Act of 1940, as amended.

 

	 	Very truly yours,
	 	 
	 	 

 

    	E-4

    	 

    

 

EXHIBIT F

 

Certificate
of an Officer of the [Seller][Guarantor]

 

The undersigned, ____________
of [Five Oaks Acquisition Corp.][Five Oaks Investment Corp.], a [STATE] [corporation] (the “[Seller][Guarantor]”),
hereby certifies as follows:

 

1.          Attached
hereto as Exhibit A is a copy of the formation documents of the [Seller][Guarantor], as certified by the Secretary
of State of the State of [STATE].

 

2.          Neither
any amendment to the formation documents of the [Seller] [Guarantor] nor any other charter document with respect to the [Seller][Guarantor]
has been filed, recorded or executed since _______ __, 201__, and no authorization for the filing, recording or execution of any
such amendment or other charter document is outstanding.

 

3.          Attached
hereto as Exhibit B is a true, correct and complete copy of the By-laws of the [Seller][Guarantor] as in effect as
of the date hereof and at all times since ________, 201__.

 

4.          Attached
hereto as Exhibit C is a true, correct and complete copy of resolutions adopted by the Board of Directors of the [Seller][Guarantor]
by unanimous written consent on _________ __, 201_ (the “Resolutions”). The Resolutions have not been further
amended, modified or rescinded and are in full force and effect in the form adopted, and they are the only resolutions adopted
by the Board of Directors of the [Seller][Guarantor] or by any committee of or designated by such Board of Directors relating to
the execution and delivery of, and performance of the transactions contemplated by the Master Repurchase Agreement dated as of
February 25, 2014 (the “Repurchase Agreement”), between the Seller, the Guarantor and Credit Suisse First Boston
Mortgage Capital LLC (the “Buyer”) and the Custodial Agreement dated as of February 25, 2014 among the Seller,
the Buyer and Wells Fargo Bank, N.A., as custodian (the “Custodian”).

 

5.          The
Repurchase Agreement and the [Custodial Agreement][Guarantee] are substantially in the form approved by the Resolutions or pursuant
to authority duly granted by the Resolutions.

 

6.          The
undersigned, as a officers of the [Seller][Guarantor] or as attorney-in-fact, are authorized to and have signed manually the Repurchase
Agreement, the [Custodial Agreement][Guarantee] or any other document delivered in connection with the transactions contemplated
thereby, were duly elected or appointed, were qualified and acting as such officer or attorney-in-fact at the respective times
of the signing and delivery thereof, and were duly authorized to sign such document on behalf of the [Seller][Guarantor], and the
signature of each such person appearing on any such document is the genuine signature of each such person.

 

    	F-1

    	 

    

 

	Name	 	Title	 	Signature
	 	 	 	 	 
	 	 	 	 	 

 

IN WITNESS WHEREOF, the
undersigned has hereunto executed this Certificate as of the _____ day of __________________, 201_.

 

[Five Oaks Acquisition Corp.][Five Oaks Investment Corp.], as
[Seller][Guarantor]

 

	By:	 	 
	Name:	 	 
	Title:	 	 

 

    	F-2

    	 

    

 

Exhibit C to Officer’s Certificate
of the [Seller][Guarantor]

 

CORPORATE
RESOLUTIONS OF [SELLER][GUARANTOR]

 

Action of the Board of Directors

Without a Meeting Pursuant to

Section ______ of ________

 

The undersigned, being the directors of
[Five Oaks Acquisition Corp.][Five Oaks Investment Corp.], a [STATE] [corporation] (the “[Seller][Guarantor]”),
do hereby consent to the taking of the following action without a meeting and do hereby adopt the following resolutions by written
consent pursuant to Section ____________ of ______________ of the State of __________:

 

WHEREAS, it is in the
best interests of the Seller to transfer from time to time to Buyer Mortgage Loans against the transfer of funds by Buyer, with
a simultaneous agreement by Buyer to transfer to Seller such Mortgage Loans at a date certain or on demand, against the transfer
of funds by Seller pursuant to the terms of the Repurchase Agreement (as defined below).

 

NOW, THEREFORE, be it

 

RESOLVED, that the execution,
delivery and performance by the Seller of the Master Repurchase Agreement (the “Repurchase Agreement”) to be
entered into by the Five Oaks Acquisition Corp., Five Oaks Investment Corp. (the “Guarantor”) and Credit Suisse
First Boston Mortgage Capital LLC, as Buyer, substantially in the form of the draft dated February 25, 2014, attached hereto as
Exhibit A, are hereby authorized and approved and that the [President] or any [Vice President] (collectively, the “Authorized
Officers”) of the Seller be and each of them hereby is authorized and directed to execute and deliver the Repurchase
Agreement to the Buyer with such changes as the officer executing the same shall approve, his execution and delivery thereof to
be conclusive evidence of such approval;

 

RESOLVED, that the execution,
delivery and performance by the Seller of the Custodial Agreement (the “Custodial Agreement”) to be entered
into by the Seller, the Buyer and Wells Fargo Bank, N.A., as custodian (the “Custodian”) substantially in the
form of the draft dated February 25, 2014, attached hereto as Exhibit B, are hereby authorized and approved and that
the Authorized Officers of the Seller be and each of them hereby is authorized and directed to execute and deliver the Custodial
Agreement to the Buyer and Custodian with such changes as the officer executing the same shall approve, his execution and delivery
thereof to be conclusive evidence of such approval;

 

RESOLVED, that any and
all actions relating to the negotiation and execution of the Program Agreements by the Guarantor, for both itself and in its capacity
as the primary member of [___________], taken in good faith by the officers of the Guarantor prior to the date hereof on behalf
of the Guarantor are in all respects ratified, confirmed and approved by the Guarantor as its own act and deed, and shall be conclusively
deemed to be such corporate act and deed for all purposes;

 

    	F-1

    	 

    

 

RESOLVED, that the Authorized
Officers hereby are, and each hereby is, authorized to execute and deliver all such aforementioned agreements and any other agreements
with the Buyer or its Affiliates, whether or not related to the aforementioned agreements, on behalf of the Seller and to do or
cause to be done, in the name and on behalf of the Seller, any and all such acts and things, and to execute, deliver and file in
the name and on behalf of the Seller, any and all such agreements, applications, certificates, instructions, receipts and other
documents and instruments, as such Authorized Officer may deem necessary, advisable or appropriate in order to carry out the purposes
of the foregoing resolutions.

 

RESOLVED, that the proper
officers, agents and counsel of the Seller are, and each of such officers, agents and counsel is, hereby authorized for and in
the name and on behalf of the Seller to take all such further actions and to execute and deliver all such other agreements, instruments
and documents, and to make all governmental filings, in the name and on behalf of the Seller and such officers are authorized to
pay such fees, taxes and expenses, as advisable in order to fully carry out the intent and accomplish the purposes of the resolutions
heretofore adopted hereby.

 

Dated as of:___________ ___, 201_

 

    	F-2

    	 

    

 

EXHIBIT G

 

SELLER’S
AND GUARANTOR’S TAX IDENTIFICATION NUMBER

 

Five Oaks Acquisition Corp. – 46-2980114

 

Five Oaks Investment Corp. – 45-4966519

 

    	G-1

    	 

    

 

EXHIBIT H

 

EXISTING
INDEBTEDNESS

 

None.

 

    	H-1

    	 

    

 

EXHIBIT I

 

FORM OF
ESCROW INSTRUCTION LETTER TO BE PROVIDED BY SELLER BEFORE CLOSING

 

The escrow instruction letter (the “Escrow
Instruction Letter”) shall also include the following instruction to the Settlement Agent (the “Escrow Agent”):

 

Credit Suisse First Boston
Mortgage Capital LLC (the “Buyer”), has agreed to provide funds (“Escrow Funds”) to Five
Oaks Acquisition Corp. to finance certain mortgage loans (the “Mortgage Loans”) for which you are acting as
Escrow Agent.

 

You hereby agree that
(a) you shall receive such Escrow Funds from Buyer to be disbursed in connection with this Escrow Instruction Letter, (b) you
will hold such Escrow Funds in trust, without deduction, set-off or counterclaim for the sole and exclusive benefit of Buyer until
such Escrow Funds are fully disbursed on behalf of Buyer in accordance with the instructions set forth herein, and (c) you
will disburse such Escrow Funds on the date specified for closing (the “Closing Date”) only after you have followed
the Escrow Instruction Letter’s requirements with respect to the Mortgage Loans. In the event that the Escrow Funds cannot
be disbursed on the Closing Date in accordance with the Escrow Instruction Letter, you agree to promptly remit the Escrow Funds
to the Buyer by re-routing via wire transfer the Escrow Funds in immediately available funds, without deduction, set-off or counterclaim,
back to the account specified in Buyer’s incoming wire transfer.

 

You further agree that,
upon disbursement of the Escrow Funds, you will hold all Mortgage Loan Documents specified in the Escrow Instruction Letter in
escrow as agent and bailee for Buyer, and will forward the Mortgage Loan Documents and original Escrow Instruction Letter in connection
with such Mortgage Loans by overnight courier to the Custodian within five (5) Business Days following the date of origination.

 

You agree that all fees,
charges and expenses regarding your services to be performed pursuant to the Escrow Instruction Letter are to be paid by Seller
or its borrowers, and Buyer shall have no liability with respect thereto.

 

You represent, warrant
and covenant that you are not an affiliate of or otherwise controlled by Seller, and that you are acting as an independent contractor
and not as an agent of Seller.

 

The provisions of this
Escrow Instruction Letter may not be modified, amended or altered, except by written instrument, executed by the parties hereto
and Buyer. You understand that Buyer shall act in reliance upon the provisions set forth in this Escrow Instruction Letter, and
that Buyer is an intended third party beneficiary hereof.

 

Whether or not an Escrow
Instruction Letter executed by you is received by the Custodian, your acceptance of the Escrow Funds shall be deemed to constitute
your acceptance of the Escrow Instruction Letter.

 

    	I-1

    	 

    

 

EXHIBIT J

 

FORM OF
SERVICER NOTICE

 

[Date]

 

[________________], as Servicer

[ADDRESS]

Attention: ___________

 

		Re:	Master Repurchase Agreement, dated as of February 25, 2014 (as amended from time to time, the “Repurchase
Agreement”), by and among Five Oaks Acquisition Corp. (the “Seller”), Five Oaks Investment Corp. (the
“Guarantor”) and Credit Suisse First Boston Mortgage Capital LLC (the “Buyer”).

 

Ladies and Gentlemen:

 

[___________________]
(the “Servicer”) is servicing certain mortgage loans for Seller pursuant to that certain Servicing Agreement
between the Servicer and Seller. Pursuant to the Repurchase Agreement between Buyer and Seller, the Servicer is hereby notified
that Seller has pledged to Buyer certain mortgage loans which are serviced by Servicer which are subject to a security interest
in favor of Buyer.

 

Upon receipt of a Notice
of Event of Default from Buyer (“Notice of Event of Default”) in which Buyer shall identify the mortgage loans
which are then pledged to Buyer under the Repurchase Agreement (the “Mortgage Loans”), the Servicer shall segregate
all amounts collected on account of such Mortgage Loans, hold them in trust for the sole and exclusive benefit of Buyer, and remit
such collections in accordance with Buyer’s written instructions. Following such Notice of Event of Default, Servicer shall
follow the instructions of Buyer with respect to the Mortgage Loans, and shall deliver to Buyer any information with respect to
the Mortgage Loans reasonably requested by Buyer.

 

Notwithstanding any
contrary information which may be delivered to the Servicer by Seller, the Servicer may conclusively rely on any information or
Notice of Event of Default delivered by Buyer, and Seller shall indemnify and hold the Servicer harmless for any and all claims
asserted against it for any actions taken in good faith by the Servicer in connection with the delivery of such information or
Notice of Event of Default.

 

    	J-1

    	 

    

 

Please acknowledge
receipt of this instruction letter by signing in the signature block below and forwarding an executed copy to Buyer promptly upon
receipt. Any notices to Buyer should be delivered to the following addresses: Eleven Madison Avenue, New York, New York 10010;
Attention: Margaret Dellafera; Telephone: 212-325-6471.

 

Very truly yours,

	Five Oaks Acquisition Corp.
	 	 
	By:	 	 
	Name:	 
	Title:	 
	 	 	 

	ACKNOWLEDGED:	 
	 	 
	[____________________]	 
	as Servicer	 

 

	By:	 	 
	Title:	 
	Telephone:	 
	Facsimile:	 

 

    	J-2

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