Document:

Loan Agreement Dated June 13, 2005

 EXHIBIT 10.1 
 CONFORMED COPY 
  

 INVESTMENT NUMBER 24193 
 Loan Agreement 
 between 
 VAALCO GABON (ETAME), INC.

 and 
 INTERNATIONAL FINANCE CORPORATION 
  
  
 Dated 13 June 2005 
  
  

 TABLE OF CONTENTS 
  

					
	 Article or
 Section
	  	 Item
	  	Page
No.
	 ARTICLE I
	  	1
		
	 Definitions and Interpretation
	  	1
	 Section 1.01.
	  	General Definitions	  	1
	 Section 1.02.
	  	Financial Definitions	  	20
	 Section 1.03.
	  	Financial Calculations	  	25
	 Section 1.04.
	  	Interpretation	  	26
	 Section 1.05.
	  	Business Day Adjustment	  	26
		
	 ARTICLE II
	  	26
		
	 The Project, Project Cost and Financial Plan
	  	26
	 Section 2.01.
	  	The Project	  	26
		
	 ARTICLE III
	  	27
		
	 The Loan
	  	27
	 Section 3.01.
	  	The Loan	  	27
	 Section 3.02.
	  	Disbursement Procedure	  	27
	 Section 3.03.
	  	Interest	  	28
	 Section 3.04.
	  	Default Rate Interest	  	29
	 Section 3.05.
	  	Repayment	  	29
	 Section 3.06.
	  	Prepayment	  	29
	 Section 3.07.
	  	Fees	  	30
	 Section 3.08.
	  	Currency and Place of Payments	  	31
	 Section 3.09.
	  	Allocation of Partial Payments	  	32
	 Section 3.10.
	  	Increased Costs	  	32
	 Section 3.11.
	  	Unwinding Costs	  	32
	 Section 3.12.
	  	Suspension or Cancellation by IFC	  	32
	 Section 3.13.
	  	Cancellation by Borrower	  	33
	 Section 3.14.
	  	Taxes	  	33
	 Section 3.15.
	  	Expenses	  	34
		
	 ARTICLE IV
	  	36
		
	 Representations and Warranties
	  	36
	 Section 4.01.
	  	Representations and Warranties	  	36
	 Section 4.02.
	  	IFC Reliance	  	39
		
	 ARTICLE V
	  	40
		
	 Conditions of Disbursement
	  	40

 ii 
  

					
	 Article or
 Section
	  	 Item
	  	Page
No.
	 Section 5.01.
	  	Conditions of First Disbursement	  	40
	 Section 5.02.
	  	Conditions of All Disbursements	  	42
	 Section 5.03.
	  	Borrower’s Certification	  	44
	 Section 5.04.
	  	Conditions for IFC Benefit	  	44
		
	 ARTICLE VI
	  	45
		
	 Particular Covenants
	  	45
	 Section 6.01.
	  	Affirmative Covenants	  	45
	 Section 6.02.
	  	Negative Covenants	  	48
	 Section 6.03.
	  	Reporting Requirements	  	52
	 Section 6.04.
	  	Insurance	  	56
	 Section 6.05.
	  	IFC Base Case	  	59
		
	 ARTICLE VII
	  	59
		
	 Events of Default
	  	59
	 Section 7.01.
	  	Acceleration after Default	  	59
	 Section 7.02.
	  	Events of Default	  	59
	 Section 7.03.
	  	Bankruptcy	  	63
		
	 ARTICLE VIII
	  	64
		
	 Miscellaneous
	  	64
	 Section 8.01.
	  	Saving of Rights	  	64
	 Section 8.02.
	  	Notices	  	64
	 Section 8.03.
	  	English Language	  	65
	 Section 8.04.
	  	Term of Agreement	  	66
	 Section 8.05.
	  	Applicable Law and Jurisdiction	  	66
	 Section 8.06.
	  	Disclosure of Information	  	68
	 Section 8.07.
	  	Successors and Assignees	  	68
	 Section 8.08.
	  	Amendments, Waivers and Consents	  	68
	 Section 8.09.
	  	Counterparts	  	68
	 Section 8.10.
	  	Severability	  	68
	 Section 8.11.
	  	Rights of Third Parties	  	68
		
	 ANNEX A
	  	70
	 MINIMUM INSURANCE REQUIREMENTS
	  	70
		
	 SCHEDULE 1
	  	76
	 FORM OF CERTIFICATE OF INCUMBENCY AND AUTHORITY
	  	
		
	 SCHEDULE 2
	  	
	 FORM OF REQUEST FOR DISBURSEMENT
	  	

 iii 
  

					
	 Article or
 Section
	  	 Item
	  	Page
No.
	 SCHEDULE 3
	  	
	 FORM OF LOAN DISBURSEMENT RECEIPT
	  	
		
	 SCHEDULE 4
	  	77
	 FORM OF SERVICE OF PROCESS LETTER
	  	77
		
	 SCHEDULE 5
	  	79
	 FORM OF LETTER TO BORROWER’S AUDITORS
	  	79
		
	 SCHEDULE 6
	  	81
	 INFORMATION TO BE INCLUDED IN ANNUAL REVIEW OF OPERATIONS
	  	81
		
	 SCHEDULE 7
	  	83

 LOAN AGREEMENT 
  
 AGREEMENT, dated 13 June 2005, between: 
  

	 	(1)	VAALCO GABON (ETAME), INC., a corporation organized and existing under the laws of the State of Delaware, the United States of America (the “Borrower”); and

  

	 	(2)	INTERNATIONAL FINANCE CORPORATION, an international organization established by Articles of Agreement among its member countries including the Republic of Gabon (“IFC”).

  
 ARTICLE I 
  
 Definitions and Interpretation 
  
 Section 1.01. General Definitions. Wherever used in this
Agreement, the following terms have the meanings opposite them: 
  
 “Accidental Discharge Prevention and 

	     Oil Spill Contingency Plan” 
	 an accidental discharge prevention plan and an oil spill contingency plan prepared by Tinworth Limited in accordance with the FPSO Contract, and
acceptable to IFC, to prevent or respond to unintentional discharges of gas, liquids and solids to the environment, and that includes details of training and drills, as updated from time to time or such other similar plans prepared by or on behalf
of the Borrower in respect of its operations, that are in each case acceptable to IFC; 

  

	 “Accounting Principles” 
	 United States Generally Accepted Accounting Principles (US-GAAP) promulgated by the Financial and Accounting Standards Board, together with its
pronouncements thereon from time to time, and applied on a consistent basis; 

  

	 “Affiliate” 
	 in respect of any Person, any other Person directly or indirectly Controlling, Controlled by or under common Control with, such Person;

 2 
  

 “Agreed Environmental 

	     and Social Requirements” 
	  (i)          the Environmental, Health and Safety Guidelines;

  

	 	(ii)	the Environmental and Social Policies; 

  

	 	(iii)	the Environmental Review Summary; 

  

	 	(iv)	the Environmental Impact Assessment(s); 

  

	 	(v)	the Environmental Plans, and, if prepared, the ESMS; 

  

	 	(vi)	the Annual Monitoring Report; and 

  

	 	(vii)	the environmental, social and occupational health and safety laws and regulations of Gabon (including any international treaties) or promulgated by the relevant Gabonese
Authorities; 

  

	 “Annual Monitoring Report” 
	 the report to be prepared annually by or on behalf of the Borrower pursuant to Section 6.03(d) of this Agreement in a form satisfactory to
IFC, relating to the environmental, social and developmental aspects of the Project or the Borrower’s operations; 

  

	 “Auditors” 
	 Deloitte Touche or such other firm that the Borrower appoints from time to time as its auditors pursuant to Section 6.01
(d) (Affirmative Covenants); 

  

	 “Authority” 
	 any national, supranational, regional or local government or governmental, administrative, fiscal, judicial, or government-owned body, department,
commission, authority, tribunal, agency or entity, or central bank (or any Person, whether or not government owned and howsoever constituted or called, that exercises the functions of a central bank); 

  

	 “Authorization” 
	 any consent, registration, filing, agreement, notarization, certificate, license, approval, permit, authority or exemption from, by or with any

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 Authority, whether given by express action or deemed given by failure to act within any specified time
period and all corporate, creditors’ and stockholders’ approvals or consents; 
  
 “Authorized Investments” 

	 	(a)	cash in hand and/or time deposits in Dollars with the VAALCO Accounts Bank; 

  

	 	(b)	Dollar-denominated commercial paper maturing in 270 days or less from the date of issuance which at the time of acquisition is rated A-1 or better by Standard & Poor’s
Ratings Group or P-1 or better by Moody’s Investor Service, Inc.; and 

  

	 	(c)	Dollar-denominated bank instruments maturing within one year after their acquisition, issued by Eligible Banks; 

  

	 “Authorized Representative” 
	 any natural person who is duly authorized by the Borrower to act on its behalf for the purposes specified in, and whose name and a specimen of
whose signature appear on, the Certificate of Incumbency and Authority most recently delivered by the Borrower to IFC; 

  

	 “Available Amount” 
	 means the lesser of (i) the total amount of the Facility, as cancelled or reduced from time to time, and (ii) the Borrowing Base Amount,

  

	 	 minus: 

  

	 	(1)	the amount of any outstanding Loans under the Facility; and 

  

	 	(2)	in relation to any proposed Loan (other than a Rollover Loan), the amount of any Loans that have been requested by the Borrower and are due to be made under the Facility on or
before the date of the proposed Loan; 

  

	 “Availability Period” 
	 means the period from the date of this Agreement to the date that is six (6) months before the Final Maturity Date;

 4 
  

	 “Business Day” 
	 a day when banks are open for business in New York, New York or, solely for the purpose of determining the Interest Rate other than pursuant to
Section 3.03 (d) (ii) (Interest), London, England; 

  

	 “Calculation Date” 
	 means December 31, 2004, and each subsequent December 31; 

  

	 “Calculation Period” 
	 means, in respect of any Calculation Date, the following twelve (12) month period; 

  

	 “CEMAC” 
	 the Central African Economic and Monetary Community; 

  
 “Certificate of Incumbency 

	     and Authority” 
	 a certificate provided to IFC by the Borrower in the form of Schedule 1; 

  

	 “Charter” 
	 (i) with respect to the Borrower, its articles of incorporation and bylaws and/or such other constitutive documents, howsoever called, or
(ii) with respect to any Person (other than a natural person or the Borrower), the articles of incorporation and bylaws and/or such other constitutive documents, howsoever called, of that Person; 

  

	 “Control” 
	 the power to direct the management or policies of a Person, directly or indirectly, whether through the ownership of shares or other securities,
by contract or otherwise, provided that the direct or indirect ownership of fifty-one per cent (51%) or more of the voting share capital of a Person is deemed to constitute control of that Person, and “Controlling” and
“Controlled” have corresponding meanings; 

  
 “Cuttings/Mud 

	     Disposal Plan” 
	 a cuttings/mud disposal plan detailing how and where disposal will take place, as updated from time to time or other similar plans, that are
prepared in each case by or on behalf of the Borrower in respect of its operations and are acceptable to IFC; 

 5 
  

	 “Debenture” 
	 the agreement entitled “Debenture” dated on or about the date of this Agreement between the Borrower and IFC;

  

	 “Delaware” 
	 the State of Delaware, United States of America; 

  

	 “Derivative Transaction” 
	 any swap agreement, cap agreement, collar agreement, futures contract, forward contract or similar arrangement with respect to interest rates,
currencies or commodity prices; 

  

	 “Development Plans” 
	 (i) the development and production program(s) relating to the EEA for the Etame field approved by the GoG on November 8, 2001 and
November 17, 2003 and any extensions or amendments thereof, (ii) the development and production program(s) relating to the EEA for the Avouma and South Tchibala fields approved by the GoG on March 25, 2005 and any extensions or
amendments thereof, and (iii) any other appraisal, development and production programs in relation to the Production Sharing Contract for which the Borrower has received all necessary Authorizations; 

  

	 “Dollars” and “$” 
	 the lawful currency of the United States of America; 

  

	 “Eligible Bank” 
	 a bank in England, with an office in London, having capital, surplus and undistributed profits of at least US$500,000,000 (or the equivalent
thereof in any other currency) and a long-term debt rating of A or better by Standard & Poor’s Ratings Group or A3 or better by Moody’s Investors Service, Inc.; 

  

	 “Environmental Plans” 
	 the Accidental Discharge Prevention and Oil Spill Contingency Plan, the Cuttings/Mud Disposal Plan, the Hazardous Material and Waste Management
Plan, the Health, Safety and Environment Plan for Drilling Activities, and the Health, Safety and Environment Quality Assurance Plans for FPSO Activities; 

  

	 “Environmental and Social Policies” 
	 IFC Operating Policies (OP) 4.01 Environmental Assessment Policy (OP) 4.04 (October 1998), Operational Policy Natural Habitats (November

 6 
  

 1998), IFC Policy Statement on Child and Forced Labor (March 1998), and the Policy on Disclosure of
Information (September 1998), copies of which have been delivered to, and receipt of which has been acknowledged by, the Borrower by letter dated April 21, 2005, which policies are incorporated herein by reference; 
  
 “Environmental, Health and Safety 

	     Guidelines” 
	 World Bank Guidelines for Oil and Gas Developments (Offshore) (December 2000) and IFC Occupational Health and Safety Guidelines (June 2003) ,
copies of which have been delivered to, and receipt of which have been acknowledged by, the Borrower by letter dated April 21, 2005, which guidelines are incorporated herein by reference; 

  
 “Environmental Impact Assessment(s)” 

	     or “EIA(s)” 
	 the environmental and social impact assessment report(s) prepared by or on behalf of the Borrower in respect of its operations in accordance with
the Environmental and Social Polices, Environmental Health and Safety Guidelines, the Environmental Plans, upon their preparation, the Environmental and Social Management System (ESMS), and the environmental, social and occupational health and
safety laws and regulations of Gabon; 

  
 “Environmental Review Summary” or 

	     “ERS” 
	 the Environmental Review Summary dated April 21, 2005 prepared by IFC and approved by the Borrower; 

  
 “Environmental and Social Management 

	     System” or “ESMS” 
	 means the system created or to be created by the Borrower for managing and monitoring the environmental and social aspects of its activities and
the Project, as agreed with IFC; 

  

	 “Etame Accounts” 
	 the Etame Revenue Account, the Etame Operating Account and the Tinworth Escrow Account; 

  

	 “Etame Accounts Agreement” 
	 the agreement entitled the “Etame Field Trustee and Paying Agent Agreement” dated 26 June 2002, and 

 7 
  

 amended on November 26, 2002, and amended on or about the date of this Agreement, between the
Borrower, the Etame Accounts Bank and the Etame Trustee and Paying Agent, pursuant to which the Etame Accounts have been established, and are operated and maintained; 
  

	 “Etame Accounts Bank” 
	 JPMorgan Chase Bank, London Branch, with which the Etame Trustee and Paying Agent has established, operates and maintains the Etame Accounts under
the Etame Accounts Agreement, or such successor entity as may be appointed pursuant to the Etame Accounts Agreement; 

  

	 “Etame Block” 
	 the area approximately 45 kilometers offshore of the southern coast of Gabon identified as the “Delimited Area” (Zone Delimitee)
in the PSC; 

  

	 “Etame Block Field(s)” 
	 the exploitation areas within the Etame Block, including the Etame field and the Avouma and South Tchibala fields and any other fields, that
contain hydrocarbon accumulations, and in relation to which one or more EEA(s) shall from time to time have been granted by GOG; 

  

	 “Etame Block Assets” 
	 the present and future assets used in connection with exploration, appraisal, development, maintenance and/or operation of the Etame Block Fields
or in the Etame Block; 

  

	 “Etame Operating Account” 
	 an interest-bearing account established and maintained by the Etame Trustee and Paying Agent with the Etame Accounts Bank, in accordance with
Section 4.1 of the Etame Accounts Agreement; 

  

	 “Etame Revenue Account” 
	 an interest bearing account established and maintained by the Etame Trustee and Paying Agent with the Etame Accounts Bank, in accordance with
Section 2.1 of the Etame Accounts Agreement; 

  

	 “Etame Trustee and Paying Agent” 
	 J.P.Morgan Trustee and Depositary Company Limited, which has established, operates and 

 8 
  

 maintains the Etame Accounts under the Etame Accounts Agreement, or such successor entity as may be
appointed pursuant to the Etame Accounts Agreement; 
  

	 “Event of Default” 
	 any one of the events specified in Section 7.02 (Events of Default); 

  
 “Exclusive Exploitation 

	     Authorization” or “EEA” 
	 the Exclusive Exploitation Authorization(s) granted to the Borrower under the PSC, including any extensions or amendments thereof, with respect to
the Etame field, the Avouma and South Tchibala fields, and any other fields in the Etame Block; 

  

	 “Existing IFC Loan” 
	 means the loan provided by IFC to the Borrower pursuant to the Loan Agreement dated April 19, 2002 as amended on May 28, 2002 and
August 23, 2002; 

  

	 “Facility” 
	 has the meaning provided to it in Section 3.01, and, where the context so requires, the amount of the facility described therein to the
extent not cancelled or reduced pursuant to this Agreement; 

  

	 “Final Maturity Date” 
	 means October 15, 2009; provided, however, that, during the Availability Period, the Company may request that the “Final Maturity
Date” be extended for a maximum period of two (2) years, and any such extension shall be at IFC’s sole discretion; 

  

	 “First Loan” 
	 means the first Loan made under the Facility; 

  

	 “Fiscal Quarter” 
	 any consecutive three-month period ending on March 31, June 30, September 30 and December 31, which may be changed
from time to time as a result of permitted changes to the Borrower’s or Sponsor’s respective Fiscal Years, as the case may be; 

  

	 “Fiscal Year” 
	 the accounting year of the Borrower or the Sponsor, commencing each year on January 1 and ending on the following December 31, or such
other period as the Borrower or the Sponsor, as the case may be, with IFC’s consent, from time to time designates as its accounting year; 

 9 
  

	 “FPSO” 
	 a registered floating production storage and offloading tanker facility and its mooring system; 

  

	 “FPSO Contract” 
	 the Contract for the Provision and Operation of an FPSO between the Borrower and Tinworth Limited dated August 20, 2001, as amended on
December 7, 2004 and March 31, 2005, and otherwise as amended or modified from time to time; 

  

	 “Fred. Olsen Guarantee” 
	 the Guarantee dated September 14, 2001, issued by Fred. Olsen Energy ASA and Prosafe ASA, jointly and severally, in favor of the Borrower
guaranteeing the obligations of Tinworth Limited under the FPSO Contract; 

  

	 “Gabon” 
	 Republic of Gabon; 

  

	 “GOG” 
	 the government of the Republic of Gabon; 

  
 “Hazardous Material and 

	     Waste Management Plan” 
	 a hazardous material and waste management plan prepared by Tinworth Limited in accordance with the FPSO Contract, as updated from time to time or
any similar plan prepared in connection with FPSO or related operations in the Project, that in each case is acceptable to IFC; 

  
 “Health, Safety and 
     Environment Plan 

	     for Drilling Activities” 
	 health, safety and environment plans relating to drilling activities, as updated from time to time or such similar plans prepared in connection
with drilling activities in the Project, that are in each case acceptable to IFC; 

  
 “Health, Safety and 
     Environment Quality 
     Assurance Plan

	     for FPSO Activities” 
	 health, safety and environment plans relating to FPSO activities, as updated from time to time or such similar plans prepared in connection with
FPSO activities in the Project, that are in each case acceptable to IFC; 

 10 
  

	 “Houston Account” 
	 the Dollar denominated account in Houston, Texas, United States of America, established and maintained by the Borrower with JP Morgan Chase Bank
under account number 01000030718, pursuant to Section 4.8 of the JOA, including any balance standing to the credit of such account from time to time and the interest credited thereto; 

  

	 “IFC Base Case” 
	 the cash flow forecast calculated in accordance with the financial model agreed between the Borrower and IFC initialed by the parties for the
purpose of identification, and any subsequent forecast submitted from time to time by the Borrower to IFC in a form and substance satisfactory to IFC, and in accordance with Section 6.05; 

  

	 “IFC Base Case Assumptions” 
	 means the assumptions and principles, including the Agreed Oil Price and Proved Reserves Criteria, mutually agreed upon by the Borrower and IFC as
of the date hereof, in respect of the IFC Base Case, as set forth in Schedule 7; 

  

	 “Increased Costs” 
	 the net incremental costs of, or reduction in return to, IFC in connection with the making or maintaining of any Loan that result from any change
in any applicable law or regulation or directive (whether or not having force of law) or in its interpretation or application by any Authority charged with its administration that, after the date of this Agreement, imposes on IFC any condition
regarding the making or maintaining of the Loans; 

  

	 “Increased Costs Certificate” 
	 a certificate provided from time to time by IFC certifying the amount of, and circumstances giving rise to, the Increased Costs;

  

	 “Independent Engineer” 
	 Netherland Sewell and Associates, Inc. (NSAI) or other such independent reservoir engineer based in the United States with a good reputation in
the international oil and gas industry, as IFC may appoint from time to time to carry out the Reserve Certification and other services reasonably required 

 11 
  

 by IFC (the fees and expenses of all of which services shall be for the account of the Borrower);

  
 “Interest Determination 

	     Date” 
	 except as otherwise provided in Section 3.03 (d) (ii) (Interest), the second Business Day before the beginning of each
Interest Period; 

  

	 “Interest Payment Date” 
	 April 15 or October 15 in any year; 

  

	 “Interest Period” 
	 each period of six (6) months, in each case beginning on an Interest Payment Date and ending on the day immediately before the next following
Interest Payment Date, except in the case of the first period applicable to each Loan when it means the period beginning on the date on which that Loan is made and ending on the day immediately before the next following Interest Payment Date;

  

	 “Interest Rate” 
	 for any Interest Period, the rate at which interest is payable on any Loan during that Interest Period, determined in accordance with
Section 3.03 (Interest); 

  
 “Joint Operating 

	     Agreement” or “JOA” 
	 the Joint Operating Agreement dated April 4, 1997, between the Borrower and the other Project Partners referred to in subclause (i) of
that definition, as amended on January 15, 2001, September 5, 2002 and December 31, 2004, and as amended from time to time; 

  

	 “LIBOR” 
	 the British Bankers’ Association (“BBA”) interbank offered rates for deposits in Dollars which appear on the relevant page of the
Telerate Service (currently page 3750) or, if not available, on the relevant pages of any other service (such as Reuters Service or Bloomberg Financial Markets Service) that displays such BBA rates; provided that if BBA for any reason ceases
(whether permanently or temporarily) to publish interbank offered rates for deposits in Dollars, “LIBOR” shall mean the rate determined pursuant to Section 3.03 (d) (Interest); 

 12 
  

	 “Lien” 
	 any mortgage, pledge, charge, assignment, hypothecation, security interest, title retention, preferential right, trust arrangement, right of
set-off, counterclaim or banker’s lien, privilege or priority of any kind having the effect of security, any designation of loss payees or beneficiaries or any similar arrangement under or with respect to any insurance policy or any preference
of one creditor over another arising by operation of law; 

  

	 “Loan” 
	 the principal amount of each borrowing under the Facility, or as the context requires, the principal amount outstanding of that borrowing;
provided that for avoidance of doubt, and in accordance with Section 3.02(c) hereof, on each Interest Payment Date all Loans (including Rollover Loans) outstanding prior to such Interest Payment Date shall (to the extent not repaid and subject
to the fulfillment of the conditions for the making of each Loan set forth in Section 5.02 and 5.03) be rolled over into a single Loan on such Interest Payment Date; 

  

	 “Marketing Contract” 
	 at any time, the agreement(s) entered into by the Borrower for the marketing and transportation of the Borrower’s share of the oil produced
from the Etame Block Field(s), including (for the avoidance of doubt) any Crude Oil Sales Contract (as such term is used and defined in the Etame Accounts Agreement) so entered into by the Borrower; 

  

	 “Material Adverse Effect” 
	 a material adverse effect on: 

  

	 	(i)	the Borrower, VAALCO International or the Sponsor or their respective assets or properties; 

  

	 	(ii)	the Borrower’s, VAALCO International’s or the Sponsor’s business prospects or financial condition; 

  

	 	(iii)	the implementation of the Project; or 

  

	 	(iv)	the ability of the Borrower, VAALCO International or the Sponsor to comply with 

 13 
  

 their respective obligations under this Agreement or any other Transaction Document or Project Document;

  

	 “Material Contracts” 
	 the PSC, the JOA, the FPSO Contract, the Fred. Olsen Guarantee, the Marketing Contracts in effect from time to time, the EEA(s) and the Etame
Accounts Agreement; 

  

	 “MOF Loan Authorization” 
	 the Authorization of the Minister of Finance of Gabon of the financing contemplated by this Agreement, in form and substance acceptable to IFC;

  

	 “MOH Loan Authorization” 
	 the Authorization of the Minister of Mines, Energy, Petroleum and Hydraulic Resources of Gabon of the financing contemplated by this Agreement, in
form and substance acceptable to IFC; 

  

	 “Officer” 
	 any of the President, Chief Executive Officer, Chief Financial Officer or Chief Operating Officer (or their functional equivalents) of the
Borrower or the Sponsor, as the case may be; 

  

	 “Official” 
	 any officer of a political party or candidate for political office in Gabon or any officer or employee (i) of the GOG (including any
legislative, judicial, executive or administrative department, agency or instrumentality thereof), (ii) of any local Authority in Gabon or (iii) of a public international organization; 

  

	 “Operator” 
	 the party designated as such pursuant to the PSC and the JOA, which, as of the date of this Agreement, is the Borrower;

  

	 “Person” 
	 any natural person, corporation, company, partnership, firm, voluntary association, joint venture, trust, unincorporated organization, Authority
or any other entity whether acting in an individual, fiduciary or other capacity; 

 14 
  

	 “Pledge of Shares” 
	 the agreement entitled “Pledge of Shares Agreement” dated on or about the date of this Agreement among the Borrower, VAALCO
International and IFC, pursuant to which all of the issued and outstanding shares of the Borrower are pledged to IFC as security for the Loans; 

  
 “Potential Event 

	     of Default” 
	 any event or circumstance which would, with notice, lapse of time, the making of a determination or any combination thereof, become an Event of
Default; 

  
 “Production
Sharing 

	     Contract” or “PSC” 
	 the Exploration and Production Sharing Contract dated as of July 7, 1995, between the Government of Gabon and the Borrower and other parties,
collectively as the Contractor, as amended by an undated agreement between the Government of Gabon and the Borrower with retroactive effect to July 7, 2001; 

  

	 “Prohibited Payments” 
	 any offer, gift, payment, promise to pay or authorization of the payment of any money or anything of value, directly or indirectly, to or for the
use or benefit of any Official (including to or for the use or benefit of any other Person if the Borrower or Sponsor knows, or has reasonable grounds for believing, that the other Person would use such offer, gift, payment, promise or authorization
of payment for the benefit of any such Official), for the purpose of influencing any act or decision or omission of any Official in order to obtain, retain or direct business to, or to secure any improper benefit or advantage for, the Borrower, its
Affiliates or any other Person; provided that any such offer, gift, payment, promise or authorization of payment shall not be considered a Prohibited Payment if, in IFC’s reasonable opinion, it is lawful under applicable written laws and
regulations; 

  

	 “Project” 
	 the project described in Section 2.01 (The Project); 

  

	 “Project Documents” 
	       (a)         the Production Sharing Contract;

 15 
  

	 	(b)	the Joint Operating Agreement; 

  

	 	(c)	the FPSO Contract; 

  

	 	(d)	the Fred. Olsen Guarantee; 

  

	 	(e)	the Marketing Contract, in effect from time to time; 

  

	 	(f)	the Etame Accounts Agreement; and 

  

	 	(g)	the Exclusive Exploitation Authorization(s); 

  

	 “Project Partners” 
	 at any time, the Borrower and (i) the other Parties (as such term is defined in the JOA) under the JOA, which, as of the date of this
Agreement, are: PanAfrican Etame Inc, Sasol Petroleum West Africa Limited, PetroEnergy Resources Corporation, Sojitz Etame Ltd., and (ii) Energy Africa Gabon S.A.; 

  
 “Proved Developed 

	     Reserves” 
	 at any date, those Proved Reserves that are expected to be recovered from existing wells and installed facilities; 

 

	 “Proved Reserves” 
	 at any date, the estimated quantities of hydrocarbons which geological and engineering data demonstrate with reasonable certainty to be
recoverable in future years from known reservoirs under existing economic and operating conditions. Proved Reserves are limited to those quantities of hydrocarbons which can be estimated, with reasonable certainty, to be recoverable commercially at
current prices and costs, under existing regulatory practices and with existing conventional equipment and operating methods (taking into account applicable laws and regulations to which the Borrower is subject); 

  
 “Reinsurance Assignment 

	     Deed” 
	 the agreement entitled “Reinsurance Assignment Deed” dated on or about the date hereof, between the Gabonese issuer(s) of the Etame
Block related insurance policies, IFC and the Borrower; 

 16 
  

	 “Relevant Figures” 
	 in respect of any Calculation Date: 

  

	 	(a)	the Borrowing Base Amount; 

  

	 	(b)	the Field-Life NPV; 

  

	 	(c)	the Loan-Life NPV; 

  

	 	(d)	the LOF, LOL and Debt to Equity Ratio; 

  

	 	(e)	a projection of each of the above figures as at each future Calculation Date; and 

  

	 	(f)	the Interest Cover for the current and each future Calculation Period through the Final Maturity Date; 

  

	 “Reserve Certification” 
	 the certification of any or all of the Etame Block Fields’ Proved Reserves and Proved Developed Reserves prepared from time to time by the
Independent Engineer, including projected capital expenditures, operating expenses, annual production profiles and the economic life of the relevant Etame Block Fields; 

  

	 “Restricted Payments” 
	 all payments, including interest and principal, on Subordinated Debt, dividends, transfers of funds and other distributions on share capital
(whether in cash, shares, or in kind) and any purchase, redemption or other acquisition of shares by the Borrower; 

  

	 “Rollover Loan” 
	 a Loan made on an Interest Payment Date in the same amount, as all or a portion of an outstanding Loan or Loans maturing on such Interest Payment
Date, and which is applied solely in refinancing all or a portion of such maturing Loan; 

  
 “Security” 

	 	(a)	a first ranking security interest in all of the Borrower’s proceeds and receivables relating to and from the sale of its share (other than solely in its capacity as the
Operator) of oil production from the Etame Block Fields; 

 17 
  

	 	(b)	a first ranking security interest in the funds (including any Authorized Investments made with such funds) held from time to time in the VAALCO Accounts; 

 

	 	(c)	an assignment by way of security of the Borrower’s rights, title and interest (other than solely in its capacity as the Operator) in and under the Material Contracts;

  

	 	(d)	a first ranking security interest over any and all of the Borrower’s rights, title and interest (other than solely in its capacity as the Operator) in all other Etame Block
Assets; 

  

	 	(f)	an assignment by way of security of all rights and claims to any compensation or other special payments in respect of the Etame Block other than those arising in the normal course
of Etame Block operations which are payable to the Borrower (other than solely in its capacity as the Operator) by the GOG or any of its agencies or by any other party and for whatever reason; 

  

	 	(g)	assignment by way of security of all rights, title and interest in and to the Borrower’s share (other than solely in its capacity as the Operator) of the Etame Block related
insurance policies and reinsurance policies and any proceeds thereof; and 

  

	 	(h)	a first ranking pledge by VAALCO International Inc of all its shares in the Borrower. 

  

	 “Security Documents” 
	 the documents providing for the Security consisting of: 

  

	 	(i)	the Debenture; 

  

	 	(ii)	the Pledge of Shares; 

  

	 	(iii)	a letter from the GOG consenting to the creation of the Security; 

 18 
  

	 	(iv)	the Reinsurance Assignment Deed; 

  

	 “Sojitz Etame Limited” 
	 a company organized and existing under the laws of England that has a 9.99% shareholding in VAALCO International. Inc.;

  

	 “Sponsor” 
	 VAALCO Energy Inc., a corporation organized and existing under the laws of Delaware, that has a 90.01% shareholding in VAALCO International, Inc;

  

	 “Spread” 
	 3.5% per annum; 

  

	 “Subordinated Debt” 
	 any Debt owing by the Borrower to any of its Affiliates, including the Sponsor, all of which shall be unsecured and subordinated to any Loans, on
terms and conditions satisfactory to IFC; 

  
 “Subordination and Share 

	     Retention Agreement” 
	 the agreement entitled “Subordination and Share Retention Agreement” dated on or about the date of this Agreement between the Borrower,
the Sponsor and IFC; 

  

	 “Subsidiary” 
	 with respect to any Person, any entity: 

  

	 	(i)	over 50% of whose capital is owned, directly or indirectly, by that Person; 

  

	 	(ii)	for which that Person may nominate or appoint a majority of the members of the board of directors or such other body performing similar functions; or 

  

	 	(iii)	which is otherwise effectively Controlled by that Person; 

  

	 “Taxes” 
	 any present or future taxes, withholding obligations, duties and other charges of whatever nature levied by any Authority;

  

	 “Texas” 
	 the State of Texas, United States of America; 

 19 
  

	 “Tinworth Escrow Account” 
	 an interest-bearing account for the benefit of Tinworth Limited, which shall not have a balance of a principal amount in excess of $2,500,000,
that is established, operated and maintained by the Etame Trustee and Paying Agent with the Etame Accounts Bank, in accordance with Section 5.1 of the Etame Accounts Agreement; 

  

	 “Tinworth Limited” 
	 Tinworth Limited, a company incorporated under the laws of Bermuda; 

  

	 “Transaction Documents” 
	       (i)          this Agreement;

  

	 	(ii)	the Security Documents; 

  

	 	(iii)	the Subordination and Share Retention Agreement; and 

  

	 	(iv)	the VAALCO Accounts Agreement;. 

  

	 “VAALCO Accounts” 
	 the VAALCO Operating Account and the VAALCO Insurance Proceeds Account; 

  
 “VAALCO Accounts 

	     Agreement” 
	 the agreement entitled “VAALCO Accounts Agreement” dated on or about the date hereof, between IFC, the Borrower and the VAALCO Accounts
Bank, pursuant to which the VAALCO Accounts will be operated and maintained; 

  

	 “VAALCO Accounts Bank” 
	 JPMorgan Chase Bank, London Branch, with which the VAALCO Accounts will be operated and maintained under the VAALCO Accounts Agreement, or such
successor entity as may be appointed pursuant to the VAALCO Accounts Agreement; 

  
 “VAALCO Insurance 

	     Proceeds Account” 
	 an interest-bearing account designated as the “Insurance Proceeds Account” to be operated and maintained by the Borrower with the VAALCO
Accounts Bank, pursuant to the VAALCO Accounts Agreement; 

 20 
  

 “VAALCO Operating 

	     Account” 
	 an interest-bearing account to be operated and maintained by the Borrower with the VAALCO Accounts Bank, into which advances of Loans are to be
made and into which the Dollar proceeds of the Borrower’s share of the net proceeds generated from the export sales of oil from the Project will be deposited, minus the payment of royalties to the GOG in accordance with the PSC and any other
payments required in accordance with the Etame Accounts Agreement; 

  

	 “VAALCO International” 
	 VAALCO International Inc., a corporation organized and existing under the laws of Delaware; 

  

	 “Western Atlas Agreement” 
	 the Conveyance of Production Payment from Western Atlas Afrique, Ltd. to Western Atlas International, Inc. dated December 29, 2000, and the
Stock Purchase Agreement between Western Atlas International, Inc., as seller, and the Borrower, as purchaser, dated January 4, 2001. 

  

	 “World Bank” 
	 the International Bank for Reconstruction and Development, an international organization established by Articles of Agreement among its member
countries. 

  
 Section 1.02.
Financial Definitions. (a) Wherever used in this Agreement, unless the context otherwise requires, the following terms have the meanings opposite them: 
  

	 “Agreed Oil Price” 
	 as at any date on which a determination is made, the most recently published World Bank oil price forecast in constant dollars or, in the absence
thereof, any other oil price to be agreed upon by the Borrower and IFC; 

  

	 “Borrowing Base Amount” 
	 means, for the relevant Calculation Period, the lower of: 

  

	 	(a)	the Loan-Life NPV divided by 1.8, and 

  

	 	(b)	the Field-Life NPV divided by 2.0; 

 21 
  

	 “Cash Balance” 
	 means, on any date, the Borrower’s cash and bank balances that are free of any Liens (other than Liens in favor of IFC);

  

	 “Debt” 
	 with respect to the Borrower, the aggregate of all obligations (whether actual or contingent) of the Borrower, to pay or repay money including,
without limitation: 

  

	 	(i)	all Indebtedness for Borrowed Money; 

  

	 	(ii)	the aggregate amount then outstanding of all liabilities of any party to the extent the Borrower guarantees them or otherwise directly or indirectly obligates itself to pay them;

  

	 	(iii)	all liabilities of the Borrower (actual or contingent) under any conditional sale or a transfer with recourse or obligation to repurchase, including, without limitation, by way of
discount or factoring of book debts or receivables; and 

  

	 	(iv)	all liabilities of the Borrower (actual or contingent) under its Charter, any resolution of its shareholders, or any agreement or other document binding on the Borrower to redeem
any of its shares; 

  

	 “Discount Rate” 
	 ten per cent (10%) per annum; 

  

	 “EBIDAX” 
	 means earnings before interest, depreciation and amortization, and exploration expenses. 

  

	 “Field-Life NPV” 
	 means as of any Calculation Date (and until the next Calculation Date), the sum of (i) Cash Balances as at such Calculation Date, and
(ii) the present value at the Discount Rate of the projected Net Cash Flow derived from the Proved Reserves of the Etame Block Field(s) as certified in the most recent Reserve Certification and calculated using the Proved Reserves Criteria, the
Agreed Oil Price and other IFC Base Case Assumptions, for the period commencing on the day following such Calculation 

 22 
  

 Date through the longest economic life of the Etame Block Field(s)s as certified in such Reserve
Certification; 
  
 “Indebtedness for

	     Borrowed Money “ 
	 with respect to the Borrower, all obligations of the Borrower to repay money including, without limitation, with respect to:

  

	 	(i)	borrowed money; 

  

	 	(ii)	the outstanding principal amount of any bonds, debentures, notes, loan stock, commercial paper, acceptance credits, bills or promissory notes drawn, accepted, endorsed or issued by
the Borrower; 

  

	 	(iii)	any credit to the Borrower from a supplier of goods or services under any installment purchase or other similar arrangement with respect to goods or services (except trade accounts
that are payable in the ordinary course of business); 

  

	 	(iv)	non-contingent obligations of the Borrower to reimburse any other Person with respect to amounts paid by that Person under a letter of credit or similar instrument (excluding any
letter of credit or similar instrument issued for the benefit of the Borrower with respect to trade accounts that are payable in the ordinary course of business); 

  

	 	(v)	amounts raised under any other transaction having the financial effect of a borrowing and which would be classified as a borrowing (and not as an off-balance sheet financing) under
the Accounting Principles including, without limitation, under leases or similar arrangements entered into primarily as a means of financing the acquisition of the asset leased; 

  

	 	(vi)	the amount of the Borrower’s obligations pursuant to Derivative Transactions which 

 23 
  

 consist of swap, collar and cap agreements entered into in connection with other Debt of the Borrower,
provided that for the avoidance of double counting and for so long as any such swap, collar or cap agreement is in effect, that Debt will be included in Indebtedness for Borrowed Money pursuant to the terms of the relevant Derivative Transaction and
not the terms of the agreement providing for that Debt when it was incurred; and 
  

	 	 (vii) any premium payable on a mandatory redemption or replacement of any of the foregoing obligations; 

  

	 “Interest Cover” 
	 means, for any Calculation Period, the Borrower’s actual and/or projected EBIDAX for such Calculation Period, divided by the amount of all
interest paid or payable in respect of any Debt, net of any interest actually earned during such period, 

  
 “Life of Field Coverage 

	     Ratio” or “LOF” 
	 as at any date of determination, the ratio obtained by dividing (i) the sum of Cash Balances as at such date, and the present value at the
Discount Rate of the projected Net Cash Flow derived from the Proved Reserves of the Etame Block Field(s) as certified in the most recent Reserve Certification and calculated using the Proved Reserves Criteria, the Agreed Oil Price and other IFC
Base Case Assumptions, for the period commencing on the day following such determination date through the longest economic life of the Etame Block Field(s) as certified in such Reserve Certification; by (ii) the aggregate amount of principal
outstanding and any overdue interest and other amounts owing on that date on or in respect of all Indebtedness for Borrowed Money of the Borrower (excluding any Subordinated Debt); 

  
 “Life of Loan Coverage 

	     Ratio” or “LOL” 
	 as at any date of determination, the ratio obtained by dividing (i) the sum of Cash Balances as at such date, and the present value at the
Discount Rate of 

 24 
  

 
the projected Net Cash Flow derived from the Proved Reserves of the Etame Block Field(s) as certified in the most recent Reserve Certification and calculated
using the Proved Reserves Criteria, the Agreed Oil Price and other IFC Base Case Assumptions, for the period commencing on the day following such calculation date up to and including the Final Maturity Date; by (ii) the aggregate amount of
principal outstanding and any overdue interest and other amounts owing on that date on or in respect of all Indebtedness for Borrowed Money of the Borrower (excluding any Subordinated Debt); 
  

	 “Loan-Life NPV” 
	 means as at any Calculation Date (and until the next Calculation Date), the sum of (i) Cash Balances as at such Calculation Date, and
(ii) the present value at the Discount Rate of the projected Net Cash Flow derived from the Proved Reserves of the Etame Block Field(s) as certified in the most recent Reserve Certification and calculated using the Proved Reserves Criteria, the
Agreed Oil Price and other IFC Base Case Assumptions, for the period commencing on the day following such Calculation Date up to and including the Final Maturity Date; 

  

	 “Minimum Levels” 
	 at any date, shall be 2.0 with respect to the Interest Cover, 1.8 with respect to the LOL and 2.0 with respect to the LOF;

  

	 “Net Cash Flow” or “NCF” 
	 for any period of determination, the sum of (i) all proceeds received from the sale of the Borrower’s share (other than solely in its
capacity as the Operator) of oil production from the Etame Block Fields, minus (ii) the Borrower’s share (other than solely in its capacity as the Operator) of operating costs, transportation costs, cash fund contributions as required
under the PSC, taxes, royalties and capital expenditures paid for the same period, but before any payments in respect of Debt (whether principal, interest or other fees and charges) for the same period, plus (iii) the net proceeds of Loans
received (less Loans repaid) by the Borrower during such period; 

 25 
  

 “Debt to 

	     Equity Ratio” 
	 at any date of determination, the result obtained by dividing Debt by Shareholders’ Equity; 

  

	 “Proved Reserves Criteria” 
	 means 100% of the Proved Developed Reserves or such criteria as IFC may accept in its sole discretion; 

  

	 “Shareholders’ Equity” 
	 with respect to the Borrower, the aggregate of: 

  

	 	(i)	the amount paid up on the share capital of the Borrower; and 

  

	 	(ii)	the amount standing to the credit of the reserves of the Borrower (including, without limitation, any share premium account, capital redemption reserve funds and any credit balance
on the accumulated profit and loss account); 

  

	 	 after deducting from that aggregate (A) any debit balance on the profit and loss account or impairment of the issued share capital of the
Borrower (except to the extent that deduction with respect to that debit balance or impairment has already been made), (B) amounts set aside for dividends or taxation (including deferred taxation), and (C) amounts attributable to
capitalized items such as goodwill, trademarks, deferred charges, licenses, patents and other intangible assets. 

  
 Section 1.03. Financial Calculations. (a) All financial calculations to be made under, or for the purposes of, this Agreement and
any other Transaction Document shall be determined in accordance with the Accounting Principles and, except as otherwise required to conform to any provision of this Agreement, shall be calculated from the then most recently issued quarterly
financial statements, prepared on a consolidated basis, which the Borrower is obligated to furnish to IFC under Section 6.03 (a) (Reporting Requirements). 
  
 (b) Where quarterly financial statements are used for the purpose of making certain financial calculations and those
statements are with respect to the last quarter of a Fiscal Year then, at IFC’s option, those calculations may instead be made from the audited financial statements for the relevant Fiscal Year. 

 26 
  

 (c) If any material adverse change in the financial condition of the Borrower or the Sponsor has occurred
after the end of the period covered by the financial statements used to make the relevant financial calculations, that material adverse change shall also be taken into account in calculating the relevant figures. 
  
 Section 1.04. Interpretation. In this Agreement, unless
the context otherwise requires: 
  
 (a) headings
are for convenience only and do not affect the interpretation of this Agreement; 
  
 (b) words importing the singular include the plural and vice versa; 
  
 (c) a reference to an Annex, Article, party, Schedule or Section is a reference to that Article or Section
of, or that Annex, party or Schedule to, this Agreement; 
  
 (d) a reference to a document includes an amendment or supplement to, or replacement or novation of, that document but disregarding any amendment, supplement, replacement or novation made in breach of this Agreement;
and 
  
 (e) a reference to a party to any
document includes that party’s successors and permitted assigns. 
  
 Section 1.05. Business Day Adjustment. When the day on or by which a payment is due to be made is not a Business Day, that payment shall be made on or by the next succeeding Business Day. Interest, fees and charges (if
any) shall continue to accrue for the period from the due date that is not a Business Day to that next succeeding Business Day. 
  
 ARTICLE II 
  
 The Project, Project Cost and Financial Plan 
  
 Section 2.01. The Project. The project to be financed consists of the ongoing and future oil and gas operations and production,
developments, appraisal and exploration in the Etame Block offshore of the southern coast of Gabon, including related capital expenditures, working capital requirements and debt repayment requirements relating to the Borrower’s operations in
Gabon. 

 27 
  

 ARTICLE III 
  
 The Facility 
  
 Section 3.01. The Facility. 
  
 (a) Subject to the provisions of this Agreement, IFC agrees to make available to the Borrower a revolving loan facility of up to thirty million Dollars
($30,000,000) (the “Facility”). 
  
 (b) Each Loan under
the Facility may be used solely for the Project. 
  
 Section 3.02. Loan Procedure. 
  
 (a)
The Borrower may request Loans up to the Available Amount during the Availability Period by delivering to IFC, at least ten (10) Business Days prior to the proposed date of a Loan, a Loan request substantially in the form of Schedule 2, and a
receipt substantially in the form of Schedule 3. 
  
 (b) Each Loan
shall be made by IFC at a bank in New York, New York for further credit to the VAALCO Operating Account or any other place acceptable to IFC, all as specified by the Borrower in the relevant Loan request. 
  
 (c) Where any Loan is outstanding on any Interest Payment Date, the Borrower
in respect of that Loan will be conclusively deemed to have given IFC a duly completed request (and receipt) for a Rollover Loan (of an aggregate amount equal to the outstanding amount of all Loans, including any Rollover Loan, which are scheduled
to mature on that Interest Payment Date) to be applied in refinancing the outstanding Loan or Loans in full unless, (i) not later than thirty (30) days prior to such Interest Payment Date, the Borrower notifies IFC that it does not wish
this provision to apply in respect of all or a portion of any Loan, and/or (ii) IFC at any time notifies the Borrower that all or a portion of any Loan is not eligible to be treated as a Rollover Loan because the conditions necessary for the
making of such Rollover Loan as required pursuant to Section 5.02 and 5.03 hereof (including that the amount of such Rollover Loan does not exceed the Available Amount) are not fulfilled. 
  
 (d) Each Loan (other than a Rollover Loan) shall be made in an amount of not
less than five million Dollars ($5,000,000), or, if lower, in an amount that equals the maximum amount drawable of the Available Amount. 

 28 
  

 Section 3.03. Interest. Subject to the provisions of Section 3.04 (Default
Rate Interest), the Borrower shall pay interest on each Loan in accordance with this Section 3.03: 
  
 (a) During each Interest Period, each Loan shall bear interest at the applicable Interest Rate for that Interest Period. 
  
 (b) Interest on each Loan shall accrue from day to day, be
prorated on the basis of a 360-day year for the actual number of days in the relevant Interest Period and be payable in arrears on the Interest Payment Date immediately following the end of that Interest Period; provided that with respect to any
Loan made less than fifteen (15) days before an Interest Payment Date, interest on that Loan shall be payable on the second Interest Payment Date following the date of that Loan. 
  
 (c) The Interest Rate for any Interest Period shall be the rate which is the sum of: 
  

	 	(i)	the Spread; and 

  

	 	(ii)	LIBOR on the Interest Determination Date for that Interest Period for six (6) months (or, in the case of any Loan to be made on a date other than an Interest Payment Date, for
one (1) month, two (2) months, three (3) months or six (6) months, whichever period is closest to the duration of the relevant Interest Period (or, if two periods are equally close, the longer one)) rounded upward to the nearest
three decimal places. 

  
 (d) If,
for any Interest Period IFC cannot determine LIBOR by reference to the Telerate Service or any other service that displays BBA rates, IFC shall notify the Borrower and shall instead determine LIBOR: 
  

	 	(i)	on the second Business Day before the beginning of the relevant Interest Period by calculating the arithmetic mean (rounded upward to the nearest three decimal places) of the
offered rates advised to IFC on or around 11:00 a.m., London time, for deposits in Dollars and otherwise in accordance with Section 3.03 (c) (ii), by any four (4) major banks active in Dollars in the London interbank market, selected
by IFC; provided that if less than four quotations are received, IFC may rely on the quotations so received if not less than two (2); or 

 29 
  

	 	(ii)	if less than two (2) quotations are received from the banks in London in accordance with subsection (i) above, on the first day of the relevant Interest Period, by
calculating the arithmetic mean (rounded upward to the nearest three decimal places) of the offered rates advised to IFC on or around 11:00 a.m. New York time, for loans in Dollars and otherwise in accordance with Section 3.03 (c) (ii), by
a major bank or banks in New York, New York, selected by IFC. 

  
 (e) On each Interest Determination Date for any Interest Period, IFC shall determine the Interest Rate applicable to that Interest Period and promptly notify the Borrower of that rate. 
  
 (f) The determination by IFC, from time to time, of the
Interest Rate shall be final and conclusive and bind the Borrower (unless the Borrower shows to IFC’s satisfaction that the determination involves manifest error). 
  
 Section 3.04. Default Rate Interest. (a) Without limiting the remedies available to IFC under this
Agreement or otherwise (and to the maximum extent permitted by applicable law), if the Borrower fails to make any payment of principal or interest (including interest payable pursuant to this Section) or any other payment provided for in
Section 3.07 (Fees) when due as specified in this Agreement (whether at stated maturity or upon acceleration), the Borrower shall pay interest on the amount of that payment due and unpaid at the rate which shall be the sum of two per
cent (2%) per annum and the Interest Rate in effect from time to time. 
  
 (b) Interest at the rate referred to in Section 3.04 (a) shall accrue from the date on which payment of the relevant overdue amount became due until the date of actual payment of that amount (as well after
as before judgment), and shall be payable on demand or, if not demanded, on each Interest Payment Date falling after any such overdue amount became due. 
  
 Section 3.05. Repayment. 
  
 (a) The Borrower must repay each Loan made to it in full on the Interest Payment Date immediately following the date on which such Loan is made.

  
 (b) Subject to the terms of this Agreement, any amounts repaid
under paragraph (a) above may be reborrowed. 
  
 Section 3.06. Prepayment and Mandatory Payment. (a) The Borrower may prepay all or any of the Loans, on not less than thirty (30) days’ prior notice to IFC, but only if: 

 30 
  

	 	(i)	the Borrower simultaneously pays all accrued interest and Increased Costs (if any) on the amount of each Loan to be prepaid, together with all other amounts then due and payable
under this Agreement, including the amount payable under Section 3.11 (Unwinding Costs); 

  

	 	(ii)	for a partial prepayment, the prepayment is in an amount of not less than two million Dollars ($2,000,000); and 

  

	 	(iii)	if requested by IFC, the Borrower delivers to IFC, prior to the date of prepayment, evidence satisfactory to IFC that all necessary Authorizations with respect to the prepayment
have been obtained. 

  
 (b) If at any time any of
Interest Cover, LOL and/or LOF are less than the Minimum Levels, the Borrower shall prepay all or a part of the Loans in an amount sufficient for such ratios to be equal to or greater than the Minimum Levels no later than thirty (30) days after
the date such non-compliance first occurred and: 
  

	 	(i)	the Borrower shall simultaneously pay all accrued interest and Increased Costs (if any) on the amount of the Loans to be prepaid, together with all other amounts then due and
payable under this Agreement, including the amount payable under Section 3.11 (Unwinding Costs), if the payment is not made on an Interest Payment Date; and 

  

	 	(ii)	if requested by IFC, the Borrower shall deliver to IFC, prior to the date of payment, evidence satisfactory to IFC that all necessary Authorizations with respect to the payment have
been obtained. 

  
 (c) Upon delivery of a notice in
accordance with Section 3.06 (a), the Borrower shall make the payment in accordance with the terms of that notice. 
  
 Section 3.07. Fees. (a) The Borrower shall pay to IFC a commitment fee at the rate of one per cent (1%) per annum on that
part of the Facility which from time to time has not been disbursed or cancelled. The commitment fee shall: 
  

	 	(i)	begin to accrue on the date of this Agreement; 

  

	 	(ii)	be pro rated on the basis of a 360-day year for the actual number of days elapsed; and 

 31 
  

	 	(iii)	be payable semi-annually, in arrears, on the Interest Payment Dates in each year, with the first such payment due on October 15, 2005. 

  
 (b) The Borrower shall also pay to IFC a front-end fee of four hundred and
thirty-seven thousand five hundred dollars ($437,500), to be paid upon the earlier of (x) the date which is thirty (30) days after the date of this Agreement and (y) the date of the First Loan;. 
  
 (c) The Borrower shall pay to IFC an annual supervision fee of fifteen
thousand US Dollars ($15,000) for each Fiscal Year during which any portion of this Facility is committed or outstanding, whether that year is complete or not, to be paid (i) with respect to the 2005 calendar year, within thirty (30) days
of the date of this Agreement or on or before the date of the First Loan, whichever is earlier, and (ii) with respect to each Fiscal Year thereafter, on January 15. 
  
 Section 3.08. Currency and Place of Payments. (a) The Borrower shall make all payments of principal,
interest, fees, and any other amount due to IFC under this Agreement in Dollars, in same day funds, to Citibank, N.A., 111 Wall Street, New York, New York, U.S.A., ABA#021000089, for credit to IFC’s account number 36085579, or at such other
bank or account in New York as IFC from time to time designates. Payments must be received in IFC’s designated account no later than 1:00 p.m. New York time. 
  
 (b) The tender or payment of any amount payable under this Agreement (whether or not by recovery under a judgment) in any
currency other than Dollars shall not novate, discharge or satisfy the obligation of the Borrower to pay in Dollars all amounts payable under this Agreement except to the extent that (and as of the date when) IFC actually receives funds in Dollars
in the account specified in, or pursuant to, Section 3.08 (a). 
  
 (c) The Borrower shall indemnify IFC against any losses resulting from a payment being received or an order or judgment being given under this Agreement in any currency other than Dollars or any place other than the account specified in, or
pursuant to, Section 3.08 (a). The Borrower shall, as a separate obligation, pay such additional amount as is necessary to enable IFC to receive, after conversion to Dollars at a market rate and transfer to that account, the full amount due to
IFC under this Agreement in Dollars and in the account specified in, or pursuant to, Section 3.08 (a). 
  
 (d) Notwithstanding the provisions of Section 3.08 (a) and Section 3.08 (b), IFC may require the Borrower to pay (or reimburse IFC) for any
Taxes, fees, costs, expenses and other amounts payable under Section 3.14 (a) (Taxes) and Section 3.15 (Expenses) in the currency in which they are payable, if other than Dollars. 

 32 
  

 Section 3.09. Allocation of Partial Payments. If at any time IFC receives less than
the full amount then due and payable to it under this Agreement, IFC may allocate and apply the amount received in any way or manner and for such purpose or purposes under this Agreement as IFC in its sole discretion determines, notwithstanding any
instruction that the Borrower may give to the contrary. 
  
 Section 3.10. Increased Costs. On each Interest Payment Date, the Borrower shall pay, in addition to interest, the amount which IFC from time to time notifies to the Borrower in an Increased Costs Certificate as being the
aggregate Increased Costs of IFC accrued and unpaid prior to that Interest Payment Date. 
  
 Section 3.11. Unwinding Costs. (a) If IFC incurs any cost, expense or loss as a result of the Borrower: 
  

	 	(i)	failing to borrow in accordance with a request for a Loan made pursuant to Section 3.02 (Loan Procedure), or to prepay in accordance with a notice of prepayment or
pursuant to Section 3.06 (b); or 

  

	 	(ii)	prepaying all or any portion of the Loans; 

  
 then the Borrower shall immediately pay to IFC the amount which IFC from time to time notifies to the Borrower as being the amount of those costs, expenses and losses
incurred. 
  
 (b) For the purposes of this Section, “costs,
expenses or losses” include any premium, penalty or expense incurred to liquidate or obtain third party deposits or borrowings in order to make, maintain or fund all or any part of the Loans. 
  
 Section 3.12. Suspension or Cancellation by IFC.
(a) IFC may, by notice to the Borrower, suspend or cancel the right of the Borrower to the undisbursed portion of the Facility in whole or in part: 
  

	 	(i)	if the First Loan has not been made by December 31, 2005 or such other date as the parties agree; 

  

	 	(ii)	if any Event of Default has occurred and is continuing or if the Event of Default specified in Section 7.02 (f) (Events of Default) is, in the reasonable opinion of
IFC, imminent; or 

 33 
  

	 	(iii)	if any event or condition has occurred and is continuing which has or can reasonably be expected to have a Material Adverse Effect. 

  
 (b) Upon the giving of any such notice, the right of the Borrower to the
undisbursed portion of the Facility shall be suspended or cancelled, as the case may be. The exercise by IFC of its right of suspension shall not preclude IFC from exercising its right of cancellation, either for the same or any other reason
specified in Section 3.12 (a). Upon any cancellation the Borrower shall, subject to paragraph (d) of this Section 3.12, pay to IFC all fees and other amounts accrued (whether or not then due and payable) under this Agreement up to the
date of that cancellation. A suspension shall not limit any other provision of this Agreement. 
  
 (c) Any portion of the Facility that is cancelled under this Section 3.12 may not be reborrowed. 
  
 (d) In the case of a partial cancellation of the Facility pursuant to paragraph (a) of this Section 3.12, or Section 3.13 (a) below,
interest on the amount then outstanding of the Loans remains payable as provided in Section 3.03 (Interest). 
  
 Section 3.13. Cancellation by the Borrower. (a) The Borrower may, by notice to IFC, irrevocably request IFC to cancel either in
whole or in part the undisbursed portion of the Facility on the date specified in that notice (which shall be a date not earlier than thirty (30) days after the date of that notice); provided that the Borrower may request any such cancellation
only once in any Fiscal Year. 
  
 (b) IFC shall, by notice to the
Borrower, cancel the undisbursed portion of the Facility effective as of that specified date if, subject to Section 3.12 (d) above IFC has received all fees and other amounts accrued (whether or not then due and payable) under this
Agreement up to such specified date; and 
  
 (c) Any portion of
the Facility that is cancelled under this Section 3.13 may not be reborrowed. 
  
 Section 3.14. Taxes. (a) The Borrower shall pay or cause to be paid all Taxes other than taxes, if any, payable on the overall income of IFC on or in connection with the payment of any and all
amounts due under this Agreement that are now or in the future levied or imposed by any Authority of Gabon, the United Kingdom or the United States of America or by any organization of which Gabon, the United Kingdom or the United States of the
America is a member or any jurisdiction through or out of which a payment is made. 

 34 
  

 (b) All payments of principal, interest, fees and other amounts due under this Agreement shall be made
without deduction for or on account of any Taxes. 
  
 (c) If the
Borrower is prevented by operation of law or otherwise from making or causing to be made those payments without deduction, the principal or (as the case may be) interest, fees or other amounts due under this Agreement shall be increased to such
amount as may be necessary so that IFC receives the full amount it would have received (taking into account any Taxes payable on amounts payable by the Borrower under this subsection) had those payments been made without that deduction. 

 
 (d) If Section 3.14 (c) applies and IFC so requests, the
Borrower shall deliver to IFC official tax receipts evidencing payment (or certified copies of them) within thirty (30) days of the date of that request. 
  

Section 3.15. Expenses. (a) The Borrower shall pay or, as the case may be, reimburse IFC or its assignees on demand any amount
paid by them on account of, all taxes (including stamp taxes), duties, fees or other charges payable on or in connection with the execution, issue, delivery, registration or notarization of the Transaction Documents and any other documents related
to this Agreement or any other Transaction Document. 
  
 (b) The
Borrower shall pay promptly, on demand, to IFC or as IFC may direct: 
  

	 	(i)	the out-of-pocket expenses (including travel and subsistence expenses) reasonably incurred by IFC in conducting its annual supervision review of the Borrower and the Project, the
administration by IFC of the investment provided for in this Agreement, or otherwise in connection with any restructuring of the Loans or amendment, supplement, or modification to, or any waiver under, any of the Transaction Documents, payable upon
receipt of an invoice from IFC; 

  

	 	(ii)	any fees agreed upon among the Borrower and IFC in connection with any restructuring of the Loans, or amendment, supplement, modification or waiver under, any of the Transaction
Documents; 

  

	 	(iii)	the fees and expenses of IFC’s technical consultants (including, without limitation, the Independent Engineer) and the public accountants, incurred in connection with the
investment by IFC provided for under this Agreement; 

 35 
  

	 	(iv)	the reasonable fees and expenses of IFC’s counsel in Gabon, France, Delaware, London, England and New York, New York and any other relevant jurisdictions, incurred in
connection with: 

  

	 	(A)	the preparation of the investment by IFC provided for under this Agreement and any other Transaction Document; 

  

	 	(B)	the preparation and/or review, execution and, where appropriate, translation and registration of the Transaction Documents and any other documents related to them;

  

	 	(C)	the giving of any legal opinions required by IFC under this Agreement and any other Transaction Document; 

  

	 	(D)	the administration by IFC of the investment provided for in this Agreement or otherwise in connection with any amendment, supplement or modification to, or waiver under, any of the
Transaction Documents; and 

  

	 	(E)	the registration (where appropriate) and the delivery of the evidences of indebtedness relating to the Loans; and 

  

	 	(v)	the costs and expenses incurred by IFC in relation to efforts to enforce or protect its rights under any Transaction Document, or the exercise of its rights or powers consequent
upon or arising out of the occurrence of any Event of Default or Potential Event of Default, including legal and other professional consultants’ fees on a full indemnity basis. 

 36 
  

 ARTICLE IV 
  
 Representations and Warranties 
  
 Section 4.01. Representations and Warranties. The Borrower represents and warrants that: 
  
 (a) the Borrower is a company duly incorporated and validly
existing under the laws of Delaware, and has the corporate power – and has obtained all required Authorizations – to own its assets, conduct its business as presently conducted and to enter into, and comply with its obligations under, the
Transaction Documents to which it is a party or will, in the case of any Transaction Document not executed as at the date of this Agreement, when that Transaction Document is executed, have the corporate power to enter into, and comply with its
obligations under, that Transaction Document; 
  
 (b) each Transaction Document to which the Borrower is a party has been, or will be, duly authorized and executed by the Borrower and constitutes, or will, when executed constitute, a valid and legally binding obligation of the Borrower,
enforceable in accordance with its terms; 
  
 (c)
neither the making of any Transaction Document to which the Borrower is a party nor (when all the Authorizations referred to in Section 5.01(d) (Conditions of Loans) have been obtained) the compliance with its terms will conflict with or
result in a breach of any of the terms, conditions or provisions of, or constitute a default or require any consent under, any indenture, mortgage, agreement or other instrument or arrangement to which the Borrower is a party or by which it is
bound, or violate any of the terms or provisions of the Borrower’s Charter or any Authorization, judgment, decree or order or any statute, rule or regulation applicable to the Borrower; 
  
 (d) to the best of the Borrower’s knowledge after due
inquiry: 
  

	 	(i)	subject to clause (ii) below, all the Authorizations (other than Authorizations that are of a routine nature and are obtained in the ordinary course of business) needed by the
Borrower as of the date of this Agreement to conduct its business, carry out the Project and execute, and comply with its obligations under, this Agreement and each of the other Transaction Documents to which it is a party have been obtained and are
in full force and effect; and 

 37 
  

	 	(ii)	the Borrower has the necessary Authorization from the Minister of Commerce of Gabon to maintain a branch office in Gabon and to renew such branch office every two years and the
Borrower is in the process of renewing its registration for its branch office, which registration the Borrower reasonably believes will be issued in the ordinary course of business by such Minister; 

  
 (e) the Borrower’s Charter has not been amended since
June 14, 1995; 
  
 (f) neither the Borrower
nor any of its property enjoys any right of immunity from set-off, suit or execution with respect to its assets or its obligations under any Transaction Document; 
  
 (g) since December 31, 2004, the Borrower: 
  

	 	(i)	has not suffered any change that has a Material Adverse Effect or incurred any substantial loss or liability; 

  

	 	(ii)	has not undertaken or agreed to undertake any substantial obligation; 

  
 (h) the financial statements of the Borrower for the period ending on December 31, 2004: 
  

	 	(i)	have been prepared in accordance with the Accounting Principles, and present fairly the financial condition of the Borrower as of the date as of which they were prepared and the
results of the Borrower’s operations during the period then ended; 

  

	 	(ii)	disclose all liabilities (contingent or otherwise) of the Borrower, and the reserves, if any, for such liabilities and all unrealized or anticipated liabilities and losses arising
from commitments entered into by the Borrower (whether or not such commitments have been disclosed in such financial statements); 

  
 (i) the Borrower is not a party to, or committed to enter into, any contract which would or might affect the judgment of a prospective
investor other than the FPSO Contract; 
  
 (j) the Borrower has no outstanding Lien on any of its assets other than Liens arising by operation of law, and no contracts or arrangements, conditional or unconditional, exist for the creation by the Borrower of any Lien, except for the
Security, security granted to IFC in connection with the Existing 

 38 
  

 
IFC Loan, and the Liens created pursuant to the FPSO Contract and the Etame Accounts Agreement; 
  
 (k) all tax returns and reports of the Borrower required by
law to be filed have been duly filed and all Taxes, obligations, fees and other governmental charges upon the Borrower, or its properties, or its income or assets, which are due and payable or to be withheld, have been paid or withheld, other than
those presently payable without penalty or interest; 
  
 (l) the Borrower is not engaged in nor, to the best of its knowledge after due inquiry, threatened by, any litigation, arbitration or administrative proceedings, the outcome of which could reasonably be expected to have a Material Adverse
Effect; 
  
 (m) to the best of its knowledge and
belief after due inquiry, the Borrower is not in violation of any statute or regulation of any Authority; 
  
 (n) no judgment or order has been issued which has or may reasonably be expected to have a Material Adverse Effect; 
  
 (o) (i) to the best of its knowledge and belief, after
due inquiry, the Borrower is not in violation of any of the Agreed Environmental and Social Requirements; and 
  

	 	(ii)	the Borrower has not received nor is it aware of any complaint, order, directive, claim, citation or notice from any Authority with respect to any matter of the Borrower’s
compliance with the relevant environmental, health and safety laws and regulations in effect in Gabon such as, without limitation, air emissions, discharges to surface water or ground water, noise emissions, solid or liquid waste disposal, or the
use, generation, storage, transportation or disposal of toxic or hazardous substances or wastes; 

  
 (p) neither Borrower nor Sponsor nor any of their respective Affiliates, nor any Person acting on its or their behalf, has made, with
respect to the Project or any transaction contemplated by this Agreement, any Prohibited Payment; 
  
 (q) it is the Operator of the Project; 
  
 (r) it owns, solely in its own name, a working interest under the PSC equal to at least 30.35% during the exploration phase and at least
28.07% during the production phase, free and clear of all Liens (other than the Lien in favor of 

 39 
  

 
IFC in connection with the Existing IFC Loan) and any other interests of any other Person; 
  
 (s) all written information regarding the Borrower, the Sponsor, their respective Affiliates and the Project
furnished to IFC prior to or contemporaneously herewith, by or on behalf of the Borrower, was and continues to be true and accurate (other than projections and other forward looking statements that the Borrower believes to be reasonable) and does
not contain any information that is misleading in any material respect nor does it omit any information the omission of which makes the information contained in it misleading in any material respect; 
  
 (t) it is not incorporated or otherwise organized under the
laws of, and does not have a registered office or place of business in, the United Kingdom; 
  
 (u) it is not engaged in any business activity outside the scope of the PSC; 
  
 (v) as of the date of this Agreement, neither the GOG nor
any of its Authorities has exercised the GOG’s preference rights under Article 24 or Article 25 of the PSC and the Borrower has no reason to believe any such exercise is contemplated; 
  
 (w) except as specified in the Western Atlas Agreement or
pursuant to the Production Sharing Contract, the Borrower has no partnership, profit-sharing or royalty agreement or other similar arrangement whereby the Borrower’s income or profits might be shared with any other Person; 
  
 (x) none of the representations and warranties in this
Section 4.01 omits any matter the omission of which makes any of such representations and warranties misleading. 
  
 Section 4.02. IFC Reliance. The Borrower acknowledges that it makes the representations and warranties in Section 4.01
(Representations and Warranties) with the intention of inducing IFC to enter into this Agreement and that IFC enters into this Agreement on the basis of, and in full reliance on, each of such representations and warranties. 

 40 
  

 ARTICLE V 
  

Conditions of Loans 
  
 Section 5.01. Conditions of First Loan The obligation of IFC to make the First Loan is subject to the fulfillment prior to or
concurrently with the making of that First Loan of the following conditions: 
  
 (a) the following agreements, together with any amendments to such agreements entered into after the date hereof, each in form and substance satisfactory to IFC, have been entered into by all parties to them and have
become (or, as the case may be, remain) unconditional and fully effective in accordance with their respective terms (except for this Agreement having become unconditional and fully effective, if that is a condition of any of those agreements), and
IFC has received a copy of each of those agreements to which it is not a party: 
  

	 	(i)	each Transaction Document; and 

  

	 	(ii)	each Project Document, including, without limitation, an amendment to the Etame Accounts Agreement on or about the date of this Agreement and in a form and substance satisfactory to
IFC; 

  
 (b) IFC’s Security
has been duly created and perfected as: (i) first ranking security interests in the VAALCO Accounts and the respective funds held therein; (ii) a security interest in all of the Borrower’s rights, title and interest (other than solely
in its capacity as the Operator) in the Etame Revenue Account and the Etame Operating Account, subject to the interests of the GOG, and the Etame Trustee and Paying Agent to the extent expressly provided in the Etame Accounts Agreement; (iii) a
security interest in all of the “Security Assets” (as defined in the Debenture), (iv) a first ranking pledge by VAALCO International of all of the Borrower’s shares; and (v) an assignment by way of security of all rights,
title and interest in and to the Borrower’s share of Project-related insurance policies, reinsurance policies and any proceeds of any of them; 
  
 (c) the Borrower has obtained, and provided to IFC copies of, all Authorizations (including, without limitation, the MOF Loan
Authorization and the MOH Loan Authorization) that are necessary as of the date of this Agreement for: 
  

	 	(i)	the Facility; 

 41 
  

	 	(ii)	the business of the Borrower as it is presently carried on and is contemplated to be carried on; 

  

	 	(iii)	the Project; 

  

	 	(iv)	the due execution, delivery, validity and enforceability of, and performance by the Borrower of its obligations under, this Agreement and the other Transaction Documents, the
Project Documents and any other documents necessary or desirable to the implementation of any of those agreements or documents; and 

  

	 	(v)	the remittance to IFC or its assigns in Dollars of all monies payable with respect to the Transaction Documents; 

  
 and all those Authorizations are in full force and effect and in form and
substance satisfactory to IFC; 
  
 (d) IFC has
received a legal opinion satisfactory in form and substance to IFC, from Borrower’s counsel in Gabon relating to the transactions contemplated by this Agreement; 
  
 (e) IFC has received a legal opinion satisfactory in form and substance to IFC, from its special counsel on
English law matters with regard to this Agreement and other Transaction Documents and Project Documents governed by English Law; 
  
 (f) IFC has received a legal opinion satisfactory in form and substance to IFC, from its special counsel in New York, New York, and
concurred in by counsel for the Borrower and the Sponsor, with regard to this Agreement and other Transaction Documents and Project Documents; 
  
 (g) IFC has received a legal opinion satisfactory in form and substance to IFC, from Texas counsel for the Borrower and the Sponsor, with
regard to this Agreement and the other Transaction Documents and the Project Documents; 
  
 (h) IFC has received copies of all insurance policies required to be obtained pursuant to Section 6.04 (Insurance) and Annex A
prior to the date of First Loan, and a certification of the Borrower’s insurers or insurance agents confirming that such policies are in full force and effect and all premiums then due and payable under those policies have been paid;

  
 (i) IFC has received, or has received
irrevocable written instructions to deduct from the proceeds of the First Loan, the fees specified in Section 3.07 

 42 
  

 
(Fees) required to be paid before or on the date of the First Loan, as the case may be; 
  
 (j) if IFC so requires, IFC has received the reimbursement of all invoiced fees and expenses of IFC’s
counsel as provided in Section 3.15 (b) (iv) (Expenses) or confirmation that those fees and expenses have been paid directly to that counsel; 
  
 (k) IFC has received a copy of the authorization to the Auditors referred to in Section 6.01(e)
(Affirmative Covenants); 
  
 (l) IFC has
received a Certificate of Incumbency and Authority; 
  
 (m) the Borrower has delivered to IFC evidence, substantially in the form of Schedule 4, of appointment of an agent for service of process pursuant to Section 8.05 (d) (Applicable Law and Jurisdiction); 
  
 (n) the Existing IFC Loan, together with all interest,
prepayment fees and other amounts payable with respect thereto, shall have been fully repaid, or IFC shall have received irrevocable written instructions to deduct from the proceeds of the First Loan, an amount equal to all principal, interest and
other amounts outstanding under or in respect to the Existing IFC Loan; 
  
 (o) the Borrower has delivered to IFC a letter confirming, inter alia, that (i) the Borrower is in compliance with all of its material obligations under the Production Sharing Contract, and (ii) there are no
material disputes relating to the Production Sharing Contract, which letter shall be in form and substance satisfactory to IFC; and 
  
 (p) the Borrower has delivered to IFC evidence reasonably satisfactory to it confirming that its branch office registration in Gabon is in
full force and effect and that it is duly maintaining such branch office. 
  
 Section 5.02. Conditions of All Loans. The obligation of IFC to make any Loan, including the First Loan, and any Rollover Loan, is also subject to the conditions that: 
  
 (a) no Event of Default or Potential Event of Default has
occurred and is continuing or will occur on making such Loan; 
  
 (b) in respect of any Loan which is not a Rollover Loan, the proceeds of that Loan are, at the date of the relevant request, needed by the Borrower for the purpose of the Project, or will be needed for that purpose
within six (6) months of that date or are needed to reimburse the Borrower for costs incurred in connection with the Project; 

 43 
  

 (c) since the date of this Agreement, nothing has occurred and is continuing that has or
can reasonably be expected to have a Material Adverse Effect; 
  
 (d) since the date of its most recent financial statements, the Borrower has not incurred any material loss or liability (except such liabilities as may be incurred in accordance with
Section 6.02 (Negative Covenants )); 
  
 (e) the representations and warranties made in Article IV are true and correct in all material respects on and as of the date of that Loan with the same effect as if those representations and warranties had been made on and as of the date
of that Loan (but in the case of Section 4.01 (c) (Representations and Warranties), without the words in parentheses); 
  
 (f) the proceeds of that Loan are not in reimbursement of, or to be used for, expenditures in the territories of any country which is not
a member of the World Bank or for goods produced in or services supplied from any such country; 
  
 (g) IFC has received (if it so requires) a legal opinion or opinions in form and substance satisfactory to IFC, of IFC’s counsel in
Gabon, New York, New York, London, England and/or Texas, and concurred in by counsel for the Borrower in the relevant jurisdiction(s), with respect to any matters relating to that Loan; 
  
 (h) after giving effect to that Loan, the Borrower would not be in violation of: 
  

	 	(i)	its Charter; 

  

	 	(ii)	any provision contained in any document to which the Borrower is a party (including this Agreement) or by which the Borrower is bound; 

  

	 	(iii)	any law, rule, regulation, Authorization or agreement or other document binding on the Borrower directly or indirectly limiting or otherwise restricting the Borrower’s
borrowing power or authority or its ability to borrow; or 

  

	 	(iv)	any Agreed Environmental and Social Requirements. 

  
 (i) the representations and warranties made by the Sponsor and VAALCO International, respectively, in Section 20.01 of the
Subordination and Share Retention Agreement and Section 3.01 of the Pledge of Shares, 

 44 
  

 
respectively, are true and correct in all material respects on and as of the date of that Loan with the same effect as if those representations and
warranties had been made on and as of the date of that Loan; and 
  
 (j) following the making of the Loan, including any Rollover Loan, the aggregate outstanding amount of all Loans under the Facility shall not exceed the Available Amount and the Borrower’s Interest Cover (for the
current Calculation Period, and if the date of the Loan falls during the last two Fiscal Quarters of any year, the next Calculation Period as well), LOF and LOL shall not be less than the Minimum Levels. If IFC so requires in connection with any
Loan (including any Rollover Loan), the Borrower shall provide to IFC an updated IFC Base Case confirming the above. 
  
 Section 5.03. Borrower’s Certification. 
  

(a) Except as provided for in Section 5.03(b), the Borrower shall deliver to IFC with respect to each request for Loan: 
  

	 	(i)	certifications, in the form included in Schedule 2 signed by an Authorized Representative, relating to the conditions specified in Section 5.02 (Conditions of All Loans) (other
than the condition in Section 5.02 (g)) expressed to be effective as of the date of that relevant Loan; and 

  

	 	(ii)	such evidence as IFC may reasonably request of the proposed utilization of the proceeds of that Loan or the utilization of the proceeds of any prior Loan. 

 
 (b) In the case of any Rollover Loan, except where the Borrower makes a
specific representation or where certifications or evidence is requested by IFC pursuant to Section 5.03(a) above, the Borrower shall deemed to have provided such certifications as of the date of such Rollover Loan. 
  
 Section 5.04. Conditions for IFC Benefit. The conditions
in Section 5.01 through Section 5.03 are for the benefit of IFC and may be waived only by IFC in its sole discretion. 

 45 
  

 ARTICLE VI 
  
 Particular Covenants 
  
 Section 6.01. Affirmative Covenants. Unless IFC otherwise agrees, the Borrower shall: 
  
 (a) carry out the Project and conduct its business with due
diligence and efficiency and in accordance with (i) good international oil industry practices and standards; (ii) sound financial and business practices generally accepted in the international oil industry; (iii) the Development
Plan(s) and approved work programs; and (iv) all applicable laws and regulations; 
  
 (b) cause the Loans to be applied exclusively to the Project; 
  
 (c) maintain an accounting and control system, management information system and books of account and other
records, which together adequately reflect truly and fairly the financial condition of the Borrower and the results of its operations in conformity with the Accounting Principles; 
  
 (d) maintain at all times a firm of internationally recognized independent public accountants acceptable to
IFC as auditors of the Borrower; 
  
 (e)
irrevocably authorize, in the form of Schedule 5, the Auditors (whose fees and expenses shall be for the account of the Borrower) to communicate directly with IFC at any time regarding the Borrower’s accounts and operations, and provide to IFC
a copy of that authorization, and, no later than thirty (30) days after any change in Auditors, issue a similar authorization to the new Auditors and provide a copy thereof to IFC; 
  
 (f) upon IFC’s request, such request to be made with reasonable prior notice to the Borrower, except if
an Event of Default or Potential Event of Default is continuing or if special circumstances so require, permit representatives of IFC, during normal office hours, to: 
  

	 	(i)	visit the Project site and any of the premises where the business of the Borrower is conducted; 

  

	 	(ii)	inspect all facilities, plant and equipment comprised in the Project; 

  

	 	(iii)	have access to the Borrower’s books of account and records; and 

 46 
  

	 	(iv)	have access to those employees and agents of the Borrower who have or may have knowledge of matters with respect to which IFC seeks information; 

  
 (g) design, construct, operate, maintain and monitor all of
its sites, plant, equipment and facilities in accordance with the Agreed Environmental and Social Requirements; 
  
 (h) within not less than 180 days from the date of this Agreement, prepare and establish an ESMS acceptable to IFC; 
  
 (i) update the Environmental Plans in the ESMS, from time to
time, in a manner consistent the Agreed Environmental and Social Requirements; 
  
 (j) from time to time, execute, acknowledge and deliver or cause to be executed, acknowledged and delivered such further instruments as
may reasonably be requested by IFC for perfecting or maintaining in full force and effect the Security or for re-registering the Security or otherwise to enable the Borrower to comply with its obligations under the Transaction Documents; 

 
 (k) (i) obtain and maintain in force (and where
appropriate, renew in a timely manner) all Authorizations (including, without limitation, any Authorizations from any Authority of the GOG and/or CEMAC) that are necessary for the implementation of the Project, the carrying out of the
Borrower’s business and operations generally and the compliance by the Borrower with all its obligations under the Transaction Documents and the Project Documents; and 
  

	 	(ii)	comply with all the conditions and restrictions contained in, or imposed on the Borrower by, those Authorizations; 

  
 (l) enter into and maintain in effect at all times a
Marketing Contract relevant for the sale of production from the Etame Block Fields in a form satisfactory to IFC, and deliver to IFC a signed copy of such Marketing Contract in effect from time to time; 
  
 (m) pay all royalties and all Taxes including license and
other fees, which are properly assessed against it, not later than the due date therefor; 
  
 (n) maintain at all times, the Interest Cover, LOL and LOF for the current Calculation Period (and during the last two Fiscal Quarters of
any Fiscal 

 47 
  

 
Year, the next Calculation Period as well) at or above the Minimum Levels and the Debt to Equity Ratio at or below 50:50; 
  
 (o) ensure that the funds in the VAALCO Accounts are used
only as permitted in accordance with the Transaction Documents and that the funds in the Etame Accounts are used only as permitted in accordance with the Etame Accounts Agreement; 
  
 (p) consult with IFC prior to the appointment by the Borrower of an expert or arbitrator pursuant to the
provisions of any Project Document to resolve any disputes referred to in Section 6.03 (j); 
  
 (q) make the ERS or, as appropriate, information contained in the ERS, available to all those who request it from the Borrower;

  
 (r) periodically review the form of the
Annual Monitoring Report and advise IFC as to whether modification of the form is necessary based on any changes in the Project, and/or revise the form as agreed with or requested by IFC; 
  
 (s) at all times duly maintain (i) its corporate
existence in the State of Delaware; and (ii) any qualifications for doing business in Gabon and Texas under the laws of Gabon and Texas, respectively, and comply, in a timely manner, with all the laws applicable to it; 
  
 (t) ensure that any interest rate of any Subordinated Debt
shall not, at any time, be higher than the interest rate specified in respect of the Loan under this Agreement; 
  
 (u) contemporaneously with the execution of this Agreement, provide the Sponsor and the VAALCO Accounts Bank with a copy of this
Agreement; 
  
 (v) in the event the GOG or any of
its Authorities elects to exercise its preference rights under Article 24 and/or Article 25 of the PSC, ensure that any payments made by the GOG and/or its Authorities, following the exercise of such rights, are paid to the Etame Revenue Account or,
if required to be paid elsewhere, are transferred promptly to the Etame Revenue Account; 
  
 (w) comply with all of its obligations under the Project Documents and at all times maintain and enforce its rights under the Project
Documents; 
  
 (x) other than as required under
Section 35 of the PSC, export its entire share (other than solely in its capacity as the Operator) of the oil produced from the Etame Block Fields and receive Dollar-denominated sales proceeds therefor; 

 48 
  

 (y) ensure adequate segregation of costs including financing thereof incurred in
connection with the Project and any other activity for the purpose of the books of account and other records in conformity with applicable law, the PSC, the JOA and any other relevant agreement and in accordance with the Accounting Principles;

  
 (z) prior to the election by any Project
Partner to take any of its share of oil production from the Etame Block Fields in kind, ensure that such Project Partner has (i) entered into an agreement with the Operator that provides, inter alia, that all proceeds from
the sale of such oil are deposited directly into the Etame Revenue Account, such agreement to be satisfactory in form and substance to IFC, or (ii) entered into such other arrangements with the Operator as shall be acceptable to IFC, acting
reasonably, to ensure that such Project Partner is able to fulfill its direct or indirect obligations under or in connection with any Material Contracts; provided that for avoidance of doubt, the arrangements in place as of the date of this
Agreement in respect of PanAfrican Etame, Inc. shall be deemed to fulfill the requirements of this subclause (ii); and 
  
 (aa) publicly disclose, annually the Borrower’s share of all payments made to local, regional or central governmental Authorities,
unless such disclosure has already been made by the respective Authorities. 
  
 Section 6.02. Negative Covenants. Unless IFC otherwise agrees, the Borrower shall not: 
  
 (a) make any Restricted Payments: 
  

	 	(i)	if, either prior to or after making such Restricted Payment, an Event of Default or Potential Event of Default shall or would occur or be continuing; or 

  

	 	(ii)	if, after making such Restricted Payment, the Debt to Equity Ratio would exceed 50:50, or any of the LOL or LOF, for the relevant Calculation Period would fall below 2.0;

  
 provided always that if the Borrower is
permitted to make any Restricted Payments pursuant to this Section 6.02 (a), such Restricted Payments shall be made in accordance with the terms of the VAALCO Accounts Agreement; 
  
 (b) incur expenditures or commitments for expenditures for fixed or other non-current assets, other than
those required for carrying out the Project or necessary for repairs, replacements and maintenance of satisfactory operating conditions that are essential to the Borrower’s business or operations unless (i) after incurring such expenditure
or commitment for expenditure, any of the LOF 

 49 
  

 
or the LOL shall fall below the Minimum Levels, and (ii) if such expenditures are not included in the IFC Base Case updated as of the most recent
Calculation Date, unless those expenditures or commitments do not exceed an aggregate amount equivalent to one million Dollars ($1,000,000) in the relevant Calculation Period; 
  
 (c) incur, assume or permit to exist any Debt except: 
  

	 	(i)	the Loan; 

  

	 	(ii)	the Existing IFC Loan; 

  

	 	(iii)	Subordinated Debt; and 

  

	 	(iv)	any other short-term Debt for working capital purposes incurred in the ordinary course of business which, when aggregated with all other Debt, would not result in the Debt to Equity
Ratio exceeding 50:50; 

  
 (d)
enter into any agreement or arrangement to lease any property or equipment of any kind, except the FPSO Contract and leases of land/buildings and equipment, as necessary to carry on the Borrower’s business and operate the Project; 

 
 (e) enter into any Derivative Transaction or assume the
obligations of any party to any Derivative Transaction unless the Derivative Transaction is consistent with a hedging program previously approved by IFC, which approval shall not be unreasonably withheld; 
  
 (f) enter into any agreement or arrangement to guarantee or,
in any way or under any condition, assume or become obligated for all or any part of any financial or other obligation of another Person except as required by the terms of the JOA; 
  
 (g) create or permit to exist any Lien on any property, revenues or other assets, present or future, of the
Borrower, except for: 
  

	 	(i)	the Security, and Liens in favor of IFC connection with the Existing IFC Loan; 

  

	 	(ii)	the naming of IFC as loss payee under the Borrower’s insurance policies and/or the Borrower’s share of the insurance policies related to the Etame Block Fields (other than
solely in its capacity as the Operator); 

 50 
  

	 	(iii)	the Liens created under the FPSO Contract and the Etame Accounts Agreement; and 

  

	 	(iv)	any Lien arising from any tax, assessment or other governmental charge or other Lien arising by operation of law, in each case if the obligation underlying any such Lien is not yet
due or, if due, is being contested in good faith by appropriate proceedings so long as: 

  

	 	(A)	those proceedings do not involve any substantial danger of the sale, forfeiture or loss of any part of the Project, title thereto or any interest therein, nor interfere in any
material respect with the use or disposition thereof or the implementation of the Project or the carrying on of the business of the Borrower; and 

  

	 	(B)	the Borrower has set aside adequate reserves sufficient to promptly pay in full any amounts that the Borrower may be ordered to pay on final determination of any such proceedings;

  
 (h) enter into any transaction
except in the ordinary course of business on the basis of arm’s-length arrangements (including, without limitation, transactions whereby the Borrower might pay more than the ordinary commercial price for any purchase or might receive less than
the full ex-works commercial price (subject to normal trade discounts) for its products); 
  
 (i) establish any sole and exclusive purchasing or sales agency; 
  
 (j) enter into any partnership, profit-sharing or royalty agreement or other similar arrangement whereby the
Borrower’s income or profits are, or might be, shared with any other Person; 
  
 (k) enter into any management contract or similar arrangement whereby its business or operations are managed by any other Person;

  
 (l) form or have any Subsidiary; 

 
 (m) make or permit to exist loans or advances to, or
deposits (except commercial bank deposits in the ordinary course of business) with, other Persons or investments in any Person or enterprise other than as permitted by the VAALCO Accounts Agreement, the Etame Accounts Agreement and Section 4.8
of the JOA and the Accounting Procedures set forth in Exhibit “A” to the JOA; 

 51 
  

 (n) change its Charter in any manner which would be inconsistent with the provisions of
any Transaction Document; 
  
 (o) change its
Fiscal Year; 
  
 (p) change in any material way
the nature or scope of the Project or change the nature of its present or contemplated business or operations; 
  
 (q) sell, transfer, lease or otherwise dispose of all or a substantial part of its assets, other than inventory, whether in a single
transaction or in a series of transactions, related or otherwise other than assets that have been worn out or are obsolete and are replaced or upgraded or that are no longer required for the purposes of carrying out the Project, in each case in the
ordinary course of business and in a manner consistent with the Transaction Documents; 
  
 (r) undertake or permit any merger, spin-off, consolidation or reorganization; 
  
 (s) terminate, amend or grant any waiver with respect to any
provision of any Project Document; provided that the Borrower may from time to time amend or grant waivers with respect to (i) provisions of a Project Document (other than the PSC, JOA and the Etame Accounts Agreement) if necessary for the
implementation and safe and efficient operation of the Project so long as such amendments or waivers have no Material Adverse Effect and do not change any material provisions such as the parties to such Project Documents, pricing and payment and
term, etc.; and (ii) provisions of the PSC and/or the JOA solely for the purposes of effectuating a permitted transfer of interests thereunder by one of the other Project Partners but in no event by the Borrower; 
  
 (t) use the proceeds of any Loan in the territories of any
country which is not a member of the World Bank or for reimbursements of expenditures in those territories or for goods produced in or services supplied from any such country; 
  
 (u) engage in any business activity outside the scope of the PSC and with respect to activities within the
scope of the PSC, any business activity that might hinder the completion and normal operations of the Project or the Borrower’s ability to perform fully its obligations under the Transaction Documents and Project Documents; 
  
 (v) make (and shall not authorize or permit any Affiliate or
any other Person, acting on its behalf to make) with respect to the Project or any transaction contemplated by this Agreement, any Prohibited Payment. The Borrower further covenants that should IFC notify the Borrower of its concerns that there has
been a violation of the provisions of this Section or of Section 4.01 (p) of this 

 52 
  

 
Agreement, it shall cooperate in good faith with IFC and its representatives in determining whether such a violation has occurred, and shall respond promptly
and in reasonable detail to any notice from IFC, and shall furnish documentary support for such response upon IFC’s request; 
  
 (w) reduce its working interest under the PSC below 30.35% during the exploration phase and below 28.07% during the production phase; and

  
 (x) create or permit to exist any Lien on the
Houston Account. 
  
 Section 6.03. Reporting
Requirements. Unless IFC otherwise agrees, the Borrower shall: 
  
 (a) as soon as available but in any event within sixty (60) days after the end of each Fiscal Quarter, deliver to IFC: 
  

	 	(i)	two (2) copies of the Borrower’s complete financial statements for such quarter prepared in accordance with the Accounting Principles; 

  

	 	(ii)	a report, with respect to the relevant Development Plans and work programs, on the progress in implementation of the Project, including any factors that have or could reasonably be
expected to have a Material Adverse Effect; 

  

	 	(iii)	a certificate from an Officer of the Borrower attaching a description of available data on monthly rates for sales, on oil, gas and water production and injection rates and other
items of maintenance and improvements and extraordinary items relating to the Project; and 

  

	 	(iv)	a statement of all transactions during that quarter between the Borrower and each of its Affiliates, if any, and a certification by an Officer of the Borrower that those
transactions were on the basis of arm’s-length arrangements; 

  
 (b) as soon as available but in any event within ninety (90) days after the end of each Fiscal Year, deliver to IFC: 
  

	 	(i)	two (2) copies of its complete and audited financial statements for that Fiscal Year (which are in agreement with its books of account and prepared in accordance with the
Accounting Principles), together with the Auditors’ audit report on them, all in form satisfactory to IFC; 

 53 
  

	 	(ii)	a management letter and such other communication from the Auditors to the Borrower or its management commenting, with respect to that Fiscal Year, on, among other things, the
adequacy of the Borrower’s financial control procedures, accounting systems and management information system and on the deficiencies, if any, that the Auditors consider material in the Borrower’s financial accounting and other systems,
management and accounts; 

  

	 	(iii)	a report by the Auditors certifying that, on the basis of its financial statements, the Borrower was in compliance with the financial ratios and financial covenants contained in
Sections 6.01 (Affirmative Covenants) and 6.02 (Negative Covenants) as of the end of that Fiscal Year or, as the case may be, detailing any non-compliance; 

  

	 	(iv)	a report by the Borrower on its operations during that Fiscal Year, in the form of, and addressing the topics listed in, Schedule 6; 

  

	 	(v)	a statement by the Borrower of all transactions between the Borrower and each of its Affiliates, if any, during that Fiscal Year, and a certification by an Officer of the Borrower
that those transactions were on the basis of arm’s-length arrangements; and 

  

	 	(vi)	a certification from an Officer of the Borrower that, to the best of such Officer’s knowledge after due inquiry, there exists no Event of Default or Potential Event of Default
or, if such event exists, specifying its nature, the period of its existence and what action the Borrower proposes to take with respect to it; 

  
 (c) deliver to IFC, promptly following receipt, a copy of any management letter or other communication sent by the Auditors (or any other
accountants retained by the Borrower) to the Borrower or its management in relation to the Borrower’s financial, accounting and other systems, management or accounts, if not provided pursuant to Section 6.03 (b) (ii); 
  
 (d) within ninety (90) days after the end of each
Fiscal Year, deliver to IFC an Annual Monitoring Report, confirming compliance with the applicable national or local requirements and the Agreed Environmental and Social Requirements, together with the action being taken to ensure compliance;

 54 
  

 (e) as soon as possible but no later than three (3) days after its occurrence,
notify IFC by facsimile of any incident or accident which has or may reasonably be expected to have an adverse effect on the environment, health or safety, including, without limitation, explosions, spills or workplace accidents which result in
death, serious or multiple injury or major pollution, specifying, in each case, the nature of the incident or accident, the on-site and off-site impacts arising or likely to arise therefrom and the measures the Borrower is taking or plans to take to
address those impacts; and keep IFC informed of the on-going implementation of those measures; 
  
 (f) give notice to IFC, concurrently with the Borrower’s notification to its stockholders, of any meeting of its stockholders, such
notice to include the agenda of the meeting; and, as soon as available, deliver to IFC two (2) copies of: 
  

	 	(i)	all notices, reports and other communications of the Borrower to its stockholders, whether any such communication has been made on an individual basis or by way of publication in a
newspaper or other communication medium; and 

  

	 	(ii)	the minutes of all stockholders’ meetings; 

  
 (g) give notice to IFC of any meetings of the Operating Committee and the Technical Committee (as each such term is defined in the JOA)
and the Technical Consulting Committee (as such term is defined in PSC); and, as soon as available, deliver to IFC two (2) copies of: 
  

	 	(A)	all notices, reports and other communications material to the Etame Block or the Etame Block Fields distributed in connection with such meetings; and 

  

	 	(B)	the minutes of all such meetings; 

  
 (h) deliver copies to IFC of all Development Plans, Work Programs and Budgets (as such term is defined in the JOA) for the Etame Block or
Etame Block Fields approved by the Operating Committee pursuant to the JOA and all EIA(s) in relation to the Project; 
  
 (i) promptly notify IFC of any proposed change in the nature or scope of the Project or the business or operations of the Borrower and of
any event or condition which has or may reasonably be expected to have a Material Adverse Effect; 
  
 (j) promptly upon becoming aware of (i) any litigation or administrative proceedings before any Authority or arbitral body to which
the 

 55 
  

 
Borrower is or may become a party; (ii) any material dispute with any Authority or any other Project Partner; (iii) any technical or other material
disputes with any other third party under any Project Document; or (iv) the occurrence of any event of force majeure under any Project Document, notify IFC by facsimile of that event specifying the nature of that litigation, the proceedings or
the event and the steps the Borrower is taking or proposes to take with respect thereto; 
  
 (k) promptly upon the occurrence of an Event of Default or Potential Event of Default, notify IFC by facsimile specifying the nature of
that Event of Default or Potential Event of Default and any steps the Borrower is taking to remedy it; 
  
 (l) provide to IFC, in a timely manner, the insurance certificates and other information referred to in Section 6.04
(d) (Insurance); 
  
 (m) provide to
IFC a Reserve Certification, at the Borrower’s expense, within sixty (60) days of the end of each Fiscal Year and, from time to time but no more than two (2) times per Fiscal Year, as otherwise reasonably requested by IFC, provided
that: 
  

	 	(i)	if IFC or the Borrower fails to dispute the accuracy of the Reserve Certification within a period of 30 days from the Reserve Certification being provided, the parties will be
deemed to have accepted the Reserve Certification for the purposes of determining Proved Reserves and Proved Developed Reserves for the period covered by the Reserve Certification; 

  

	 	(ii)	if IFC notifies the Borrower or the Borrower notifies IFC (such notice to IFC to be given at the same time as the Borrower provides the Reserve Certification to IFC) that it
disputes the accuracy of the information contained in the Reserve Certification, IFC and the Borrower, shall use all reasonable endeavors to resolve the dispute within a period of 30 days from the Reserve Certification being provided;

  

	 	(iii)	if the parties cannot resolve the dispute within the 30 day period specified in Section 6.03(m)(ii), the dispute shall be determined by an independent consultant, having
internationally recognized experience and expertise in the determination of petroleum reserves (deemed to be acting as an expert and not as an arbitrator), who shall be selected by IFC with the consent of the Borrower, (such consent not to be
unreasonably withheld); 

 56 
  

	 	(iv)	if the Borrower disputes IFC’s selection in good faith within 10 days of being notified by IFC of its selection, the independent consultant shall be selected by the then
President of the Society of Petroleum Engineers (UK); and 

  

	 	(v)	the independent consultant shall be directed to provide a written determination on the dispute within a period of 60 days from the date of his appointment and that decision shall be
binding on the parties and shall constitute the agreement on Proved Reserves and Proved Developed Reserves for the period covered by the Reserve Certification. 

  
 (n) within ninety (90) days of the end of each Fiscal Year, provide IFC with a copy of the IFC Base
Case in accordance with Section 6.05; 
  
 (o) promptly notify IFC if (i) the GOG or any of its Authorities notifies the Borrower that the GOG is exercising its preference rights under Article 24 and/or Article 25 of the PSC or (ii) the Borrower has reason to believe the
GOG and/or any of its Authorities intends to exercise such rights; and 
  
 (p) promptly provide to IFC such other information as IFC from time to time requests about the Borrower, its assets and the Project. 
  
 Section 6.04. Insurance. 
  
 (a) Insurance Requirements and Borrower’s Undertakings. Unless IFC otherwise agrees, the Borrower shall:

  

	 	(i)	insure and keep insured, with financially sound and reputable insurers, all its assets and business against all insurable losses to include the insurances specified in Annex A and
any insurance required by law; 

  

	 	(ii)	punctually pay any premium, commission and any other amounts necessary for effecting and maintaining in force each insurance policy; 

  

	 	(iii)	promptly notify the relevant insurer of any claim by the Borrower under any policy written by that insurer and diligently pursue that claim; 

  

	 	(iv)	comply with all warranties under each policy of insurance; 

 57 
  

	 	(v)	not do or omit to do, or permit to be done or not done, anything which might prejudice the Borrower’s, or, where IFC is a loss payee or an additional named insured, IFC’s
right to claim or recover under any insurance policy; and 

  

	 	(vi)	not vary, rescind, terminate, cancel or cause a material change to any insurance policy; 

  
 provided always that if at any time and for any reason any insurance required to be maintained under this Agreement shall
not be in full force and effect, then IFC shall thereupon or at any time while the same is continuing be entitled (but have no such obligation) on its own behalf to procure such insurance at the expense of the Borrower and to take all such steps to
minimize hazard as IFC may consider expedient or necessary. 
  
 (b) Policy Provisions. Each insurance policy required to be obtained pursuant to this Section 6.04 shall be in English language, be on terms and conditions acceptable to IFC, and shall contain cut-through provisions, and
assignment of reinsurance proceeds with respect to insurance governed by Gabon law, together with provisions to the effect that: 
  

	 	(i)	no policy can expire nor can it be cancelled or suspended by the Borrower or the insurer for any reason (including failure to renew the policy or to pay the premium or any other
amount) unless IFC and, in the case of expiration or if cancellation or suspension is initiated by the insurer, the Borrower receive at least forty-five (45) days’ notice (or such lesser period as IFC may agree in respect of cancellation,
suspension or termination in the event of war and kindred peril) prior to the effective date of termination, cancellation or suspension; 

  

	 	(ii)	IFC and all contractors working at the Project site during the construction phase are named as additional named insured on all liability policies obtained by the Borrower pursuant
to Annex A and, to the best of the Borrower’s efforts, on any liability policies obtained by third parties in connection with the Project; 

  

	 	(iii)	where relevant, all its provisions (except those relating to limits of liability) shall operate as if they were a separate policy covering each insured party;

 58 
  

	 	(iv)	on every insurance policy on the Borrower’s assets which are the subject of the Security and for business interruption, IFC is named as loss payee for any claim of, or any
series of claims arising with respect to the same event whose aggregate amount is, the equivalent of five hundred thousand Dollars ($500,000) or more (which amount relates to the Etame Block Assets as a whole and not just the Borrower’s working
interest therein). 

  
 (c) Application of
Proceeds. 
  

	 	(i)	At its discretion, IFC may remit the proceeds of any insurance paid to it to the Borrower to repair or replace the relevant damaged assets or may apply such proceeds towards any
amount payable to IFC under this Agreement, including to repay or prepay all or any part of the Loan in accordance with Section 3.06 (Prepayment); provided that there shall be no minimum amount or notice period or prepayment fee for any
such prepayment. 

  

	 	(ii)	The Borrower shall use any insurance proceeds it receives (whether from IFC or directly from the insurers) with respect to the Borrower’s interest in the Etame Block Assets
(other than solely in its capacity as the Operator) for loss of or damage to any asset solely to replace or repair that asset consistently with good international oil and gas practices. 

  
 (d) Reporting Requirements. Unless IFC otherwise agrees, the
Borrower shall provide to IFC the following: 
  

	 	(i)	as soon as possible after its occurrence, notice of any event which entitles the Borrower to claim for an aggregate amount exceeding the equivalent of five hundred thousand Dollars
($500,000) under any one or more insurance policies; 

  

	 	(ii)	within thirty (30) days after any insurance policy is issued to the Borrower, a copy of that policy incorporating any loss payee provisions required under Section 6.04
(b) (iv) (unless that policy has already been provided to IFC pursuant to Section 5.01 (i) (Conditions of First Loan)); 

  

	 	(iii)	 not less than ten (10) days prior to the expiry date of any insurance policy (or, for insurance with multiple renewal 

 59 
  

	 	 
dates, not less than ten (10) days prior to the expiry date of the policy on the principal asset), a certificate of renewal from the insurer, insurance
broker or agent confirming the renewal of that policy and the renewal period, the premium, the amounts insured for each asset or item and any changes in terms or conditions from the policy’s issue date or last renewal, and confirmation from the
insurer that provisions naming IFC as loss payee or additional named insured, as applicable remain in effect; 

  

	 	(iv)	such evidence of premium payment as IFC may from time to time request; and 

  

	 	(v)	any other information or documents on each insurance policy as IFC requests from time to time. 

  
 Section 6.05. IFC Base Case. The IFC Base Case shall be prepared in a manner acceptable to IFC, and the
Net Cash Flow and the Relevant Figures determined as of and from the most recent Calculation Date, in accordance with the IFC Base Case Assumptions, the latest Reserve Certification and other relevant information, and submitted by the Borrower to
IFC within ninety days (90) days of the end of each Fiscal Year, subject to the provisions of Section 6.03(m), and at any time requested by IFC, including, without limitation on or prior to any Interest Payment Date. 
  
 ARTICLE VII 
  
 Events of Default 
  
 Section 7.01. Acceleration after Default. If any Event of
Default occurs and is continuing (whether it is voluntary or involuntary, or results from operation of law or otherwise), IFC may, by notice to the Borrower, require the Borrower to repay the Loans or such part of the Loans as is specified in that
notice. On receipt of any such notice, the Borrower shall immediately repay the Loans (or that part of the Loans specified in that notice) and pay all interest accrued on them, and any other amounts then payable under this Agreement. The Borrower
waives any right it might have to further notice, presentment, demand or protest with respect to that demand for immediate payment. 
  
 Section 7.02. Events of Default. It shall be an Event of Default if: 

 60 
  

 (a) the Borrower fails to pay when due any part of the principal of, or interest on, any
Loan or any fees payable in connection therewith and such failure continues for a period of five (5) days; 
  
 (b) the Borrower fails to pay when due any part of the principal of, or interest on, any loan from IFC to the Borrower other than the
Loans and any such failure continues for the relevant period of grace provided for in the agreement providing for that loan; 
  
 (c) the Borrower fails to comply with any of its obligations under this Agreement or any other Transaction Document or any other agreement
between the Borrower and IFC (other than as set out in subsections (a) and (b) or as expressly addressed in this Section 7.02 below), and any such failure continues for a period of thirty (30) days after the date on which IFC
notifies the Borrower of that failure or, if earlier, the date on which the Borrower becomes aware of such failure; 
  
 (d) any party to a Transaction Document (other than IFC or the Borrower) fails to observe or perform any of its obligations under that
Transaction Document, and any such failure continues for a period of thirty (30) days after the date on which IFC notifies the Borrower of that failure or, if earlier, the date on which the Borrower becomes aware of such failure; 
  
 (e) any representation or warranty made in Article IV or in
connection with the execution of, or any request (including a request for a Loan, or in respect of a Rollover Loan, a deemed request) under, this Agreement or any other Transaction Document is found to be incorrect in any material respect;

  
 (f) any Authority condemns, nationalizes,
seizes, or otherwise expropriates all or any substantial part of the property or other assets of the Borrower or of its capital stock, or assumes custody or control of that property or other assets or of the business or operations of the Borrower or
of its capital stock, or takes any action for the dissolution or disestablishment of the Borrower or any action that would prevent the Borrower or its officers from carrying on all or a substantial part of its business or operations; 
  
 (g) the Borrower: 
  

	 	(i)	takes any step (including petition, giving notice to convene or convening a meeting) for the purpose of making, or proposes or enters into, any arrangement, assignment or
composition with or for the benefit of its creditors; 

  

	 	(ii)	ceases or threatens to cease to carry on its business or any substantial part of its business; or 

 61 
  

	 	(iii)	is unable, or admits in writing its inability to pay its debts as they fall due or otherwise becomes insolvent; 

  
 (h) an order is made or an effective resolution passed or
analogous proceedings taken for the Borrower’s winding up, bankruptcy or dissolution or a petition is presented or analogous proceedings taken for the winding up or dissolution of the Borrower; 
  
 (i) the beneficiary of any Lien lawfully takes possession,
or a liquidator, judicial custodian, receiver, administrative receiver or trustee or any analogous officer is appointed, of the whole or any material part of the undertaking or assets of the Borrower or an attachment, sequestration, distress or
execution (or analogous process) is levied or enforced upon or issued against any of the assets or property of the Borrower for an amount in excess of the equivalent of five hundred thousand Dollars ($500,000) and is not discharged within thirty
(30) days; or 
  
 (j) any other event occurs
which under any applicable law would have an effect analogous to any of those events listed in Section 7.02 (g), Section 7.02 (h) and Section 7.02 (i); 
  
 (k) the Borrower fails to pay any of its Debt (other than the Loans or any other loan from IFC to the
Borrower) or to perform any of its obligations under any agreement pursuant to which there is outstanding any Debt, and any such failure continues for more than any applicable period of grace or any such Debt becomes prematurely due and payable or
is placed on demand, provided such non-payment or non-performance will not be an Event of Default if (i) such non-payment or non-performance relates to a Debt not exceeding one hundred fifty thousand Dollars ($150,000) and (ii) is being
contested by the Borrower in good faith in a court of competent jurisdiction for reasons other than its inability to make due and punctual payment and for which the Borrower has set aside adequate reserves; 
  
 (l) any Authorization necessary for the Borrower to perform
and observe its obligations under any Transaction Document, or to carry out the Project, is not obtained when required or is rescinded, terminated, lapses or otherwise ceases to be in full force and effect, including with respect to the remittance
to IFC or its assignees, in Dollars, of any amounts payable under any Transaction Document, and is not restored or reinstated within thirty (30) days of notice by IFC to the Borrower requiring that restoration or reinstatement; 
  
 (m) any Security Document or any of its provisions:

 62 
  

	 	(i)	is revoked, terminated or ceases to be in full force and effect or ceases to provide the security intended or the priority contemplated under this Agreement and/or the Subordination
and Share Retention Agreement, without, in each case, the prior consent of IFC; 

  

	 	(ii)	becomes unlawful or is declared void; or 

  

	 	(iii)	is repudiated or its validity or enforceability is challenged by any Person and any such repudiation or challenge continues for a period of thirty (30) days, during which
period such repudiation or challenge has no effect; 

	

 (n) any Transaction Document (other than a Security Document) or any of
its provisions: 
  

	 	(i)	is revoked, terminated or ceases to be in full force and effect without, in each case, the prior consent of IFC, and that event, if capable of being remedied, is not remedied to the
satisfaction of IFC within thirty (30) days of IFC’s notice to the Borrower; or 

  

	 	(ii)	becomes unlawful or is declared void; 

  
 (o) any Transaction Document (other than a Security Document) is repudiated or the validity or enforceability of any of its provisions at
any time is challenged by any Person and such repudiation or challenge is not withdrawn within thirty (30) days of IFC’s notice to the Borrower requiring that withdrawal; provided that no such notice shall be required or, as the case may
be, the notice period shall terminate if and when such repudiation or challenge becomes effective; 
  
 (p) any Project Document; 
  

	 	(i)	is breached by any party to it and that breach has or could reasonably be expected to have a Material Adverse Effect; or 

  

	 	(ii)	is revoked, terminated or ceases to be in full force and effect without the prior consent of IFC, or performance of any of the material obligations under any such agreement becomes
unlawful or any such agreement is declared to be void or is repudiated or its validity or enforceability at any time is challenged by any party to it; 

 63 
  

 (q) the Borrower ceases to be the Operator of the Project and the Person designated as
the Operator is not acceptable to IFC; 
  
 (r)
the Borrower’s right to participate in the Etame Block or the Etame Block Fields is revoked; 
  
 (s) Control of the Borrower is transferred to any Person without the consent of IFC, provided such consent shall not be unreasonably
withheld if the proposed transferee has a proven technical record in the international oil industry, if relevant, sound financial standing and, in IFC’s reasonable judgment, a good reputation; 
  
 (t) the Borrower, the Sponsor and/or any of their respective
Affiliates has been found by a judicial process or other official inquiry to have offered or given something of value to influence the action of an Official, or to have threatened injury to person, property or reputation, in connection with the
Project in order to obtain or retain business or other improper advantage in the conduct of business; 
  
 (u) a final judgment, order or arbitral award for the payment of money in excess of the equivalent of five hundred thousand Dollars
($500,000) is rendered against the Borrower or any of its properties and that judgment, order or arbitral award continues to be unsatisfied for a period of thirty (30) days; 
  
 (v) the Borrower ceases to carry on its business; or the Project is abandoned by the Borrower or, all or a
significant part of the operations of the Project or in the Etame Block is interrupted for more than 180 consecutive days; 
  
 (w) any of the events specified in Section 7.02 (g) through (k) or in Section 7.02 (u) occur to the Sponsor or
VAALCO International, or any of their respective properties, assets or share capital; provided that, in the case of Section 7.02 (k) and Section 7.02 (u), such event shall only be an Event of Default if the aggregate amount of the
unpaid Debt or the final judgment, order or award, as the case may be, exceeds one million Dollars ($1,000,000) or its equivalent; 
  
 (x) there occurs any amendment, waiver or termination of the Etame Accounts Agreement without IFC’s prior written consent,

  
 Section 7.03. Bankruptcy. If the Borrower
is liquidated or declared bankrupt, the Loan, all interest accrued on it and any other amounts payable under this Agreement will become immediately due and payable without any presentment, demand, protest or notice of any kind, all of which the
Borrower waives. 

 64 
  

 ARTICLE VIII 
  
 Miscellaneous 
  
 Section 8.01. Saving of Rights. (a) The rights and remedies of IFC in relation to any misrepresentation or breach of
warranty on the part of the Borrower shall not be prejudiced by any investigation by or on behalf of IFC into the affairs of the Borrower, by the execution or the performance of this Agreement or by any other act or thing which may be done by or on
behalf of IFC in connection with this Agreement and which might, apart from this Section, prejudice such rights or remedies. 
  
 (b) No course of dealing or waiver by IFC in connection with any condition of any Loan under this Agreement shall impair any right, power or remedy of IFC
with respect to any other condition of any Loan, or be construed to be a waiver thereof; nor shall the action of IFC with respect to any Loan affect or impair any right, power or remedy of IFC with respect to any other Loan. 
  
 (c) Unless otherwise notified to the Borrower by IFC and without prejudice to
the generality of Section 8.01 (b), the right of IFC to require compliance with any condition under this Agreement which may be waived by IFC with respect to any Loan is expressly preserved for the purposes of any subsequent or other Loan.

  
 (d) No course of dealing and no failure or delay by IFC in
exercising, in whole or in part, any power, remedy, discretion, authority or other right under this Agreement or any other agreement shall waive or impair, or be construed to be a waiver of or an acquiescence in, such or any other power, remedy,
discretion, authority or right under this Agreement, or in any manner preclude its additional or future exercise; nor shall the action of IFC with respect to any default, or any acquiescence by it therein, affect or impair any right, power or remedy
of IFC with respect to any other default. 
  
 Section 8.02.
Notices. (a) Any notice, request or other communication to be given or made under this Agreement shall be in writing. Subject to Sections 6.03 (e), (j) and (k) (Reporting Requirements) and
Section 8.05 (j) (Applicable Law and Jurisdiction), any such communication may be delivered by hand, airmail, facsimile or established courier service to the party’s address specified below (or at such other address as such
party notifies to the other party from time to time) and will be effective upon receipt. 

 65 
  

 For the Borrower: 
  
 VAALCO Gabon (Etame), Inc. 
 4600 Post Oak Place 
 Suite 309 
 Houston, TX 77027 
 United States of America. 
  
 Facsimile: 713-623-0982 
  
 Attention: President 
  
 For IFC: 
  
 International Finance Corporation 
 2121 Pennsylvania Avenue, N.W. 
 Washington, D.C. 20433 
 United States of America 
  
 Facsimile: (202) 974-4322 
  
 Attention: Director, Oil, Gas, Mining and Chemicals Department 
  
 With a copy (in the case of communications relating to payments) sent to the attention of the Senior Manager, Financial
Operations Unit, at: 
  
 Facsimile: 202-974-4371.

  
 (b) The Borrower shall ensure that any notices delivered
pursuant to a Project Document that are to be provided to IFC, either directly or through the Borrower, shall be delivered by one of the methods specified in Section 8.02 (a). 
  
 Section 8.03. English Language. (a) All documents to be provided or communications to be given or
made under this Agreement shall be in the English language. 
  
 (b) To the extent that the original version of any document to be provided, or communication to be given or made, to IFC under this Agreement or any other Transaction Document is in a language other than English, that document or
communication shall be accompanied by an English translation certified by an Authorized Representative to be a true and correct translation of 

 66 
  

 
the original. IFC may, if it so requires, obtain an English translation of any document or communication received in another language other than English at
the cost and expense of the Borrower. IFC may deem any such English translation to be the governing version between the Borrower and IFC. 
  
 Section 8.04. Term of Agreement. This Agreement shall continue in force until all monies payable under it have been fully paid in
accordance with its provisions. 
  
 Section 8.05.
Applicable Law and Jurisdiction. (a) This Agreement is governed by and shall be construed in accordance with the laws of England. 
  
 (b) For the exclusive benefit of IFC, the Borrower irrevocably agrees that any legal action, suit or proceeding arising out of or relating to this
Agreement or any other Transaction Document to which the Borrower is a party may be brought in the courts of England. By the execution of this Agreement, the Borrower irrevocably submits to the non-exclusive jurisdiction of such courts in any such
action, suit or proceeding. Final judgment against the Borrower in any such action, suit or proceeding shall be conclusive and may be enforced in any other jurisdiction, including Gabon and Delaware, by suit on the judgment, a certified or
exemplified copy of which shall be conclusive evidence of the judgment, or in any other manner provided by law. 
  
 (c) Nothing in this Agreement shall affect the right of IFC to commence legal proceedings or otherwise sue the Borrower in Gabon, Delaware or any other
appropriate jurisdiction, or concurrently in more than one jurisdiction, or to serve process, pleadings and other papers upon the Borrower in any manner authorized by the laws of any such jurisdiction. 
  
 (d) The Borrower hereby irrevocably designates, appoints and empowers the
Chief Executive and the Head of the Litigation Group of Bird & Bird located at 90 Fetter Lane, London EC4A 1JP (reference VAAEN.0001), as its authorized agent solely to receive for and on its behalf service of the writ of summons or other
legal process in any action, suit or proceeding arising out of or relating to this Agreement or any Transaction Document which IFC may bring in the courts of England. 
  
 (e) As long as this Agreement or any other Transaction Document to which the Borrower is a party remains in force, the
Borrower shall maintain a duly appointed and authorized agent to receive for and on its behalf service of the writ of summons or other legal process in any action, suit or proceeding brought by IFC in the courts of England with respect to this
Agreement or such other Transaction Documents. The Borrower shall keep IFC advised of the identity and location of such agent. 

 67 
  

 (f) The Borrower irrevocably waives: 
  

	 	(i)	any objection which it may have now or in the future to the laying of the venue of any action, suit or proceeding in any court referred to in this Section; and

  

	 	(ii)	any claim that any such action, suit or proceeding has been brought in an inconvenient forum. 

  
 (g) To the extent that the Borrower may be entitled in any jurisdiction to claim for itself or its assets immunity with
respect to its obligations under this Agreement or any other Transaction Document to which it is a party from any suit, execution, attachment (whether provisional or final, in aid of execution, before judgment or otherwise) or other legal process or
to the extent that in any jurisdiction that immunity (whether or not claimed), may be attributed to it or its assets, the Borrower irrevocably agrees not to claim and irrevocably waives such immunity to the fullest extent now or in the future
permitted by the laws of such jurisdiction. 
  
 (h) The Borrower
also consents generally with respect to any proceedings arising out of or in connection with this Agreement or any other Transaction Document to which it is a party to the giving of any relief or the issue of any process in connection with such
proceedings including, without limitation, the making, enforcement or execution against any property whatsoever (irrespective of its use or intended use) of any order or judgment which may be made or given in such proceedings. 
  
 (i) To the extent that the Borrower may, in any suit, action or proceeding
brought in any of the courts referred to in Section 8.05 (b) or a court of Gabon, Delaware or elsewhere arising out of or in connection with this Agreement or any other Transaction Document to which the Borrower is a party, be entitled to
the benefit of any provision of law requiring IFC in such suit, action or proceeding to post security for the costs of the Borrower, or to post a bond or to take similar action, the Borrower hereby irrevocably waives such benefit, in each case to
the fullest extent now or in the future permitted under the laws of Gabon, Delaware or, as the case may be, the jurisdiction in which such court is located. 
  
 (j) The Borrower also irrevocably consents, if for any reason the Borrower’s authorized agent for service of process of summons, complaint and other
legal process in any action, suit or proceeding is not present in England, to service of such papers being made out of those courts by mailing copies of the papers by registered air mail, postage prepaid, to the Borrower at its address specified
pursuant to Section 8.02 (Notices). In such a case, IFC shall also send by facsimile, or have sent by facsimile, a copy of the papers to the Borrower. 

 68 
  

 Section 8.06. Disclosure of Information. (a) IFC may disclose any documents or
records of, or information about, this Agreement or any other Transaction Document, or the assets, business or affairs of the Borrower to: 
  

	 	(i)	its outside counsel, auditors and rating agencies, 

  

	 	(ii)	any other Person as IFC may deem appropriate in connection with any proposed sale, transfer, assignment or other disposition of IFC’s rights under this Agreement or any
Transaction Document or otherwise for the purpose of exercising any power, remedy, right, authority, or discretion relevant to this Agreement or any other Transaction Document. 

  
 (b) The Borrower acknowledges and agrees that, notwithstanding the terms of
any other agreement between the Borrower and IFC, a disclosure of information by IFC in the circumstances contemplated by Section 8.06 (a) does not violate any duty owed to the Borrower under this Agreement or under any such other
agreement. 
  
 Section 8.07. Successors and
Assignees. This Agreement binds and benefits the respective successors and assignees of the parties. However, the Borrower may not assign or transfer any of its rights or obligations under this Agreement without the prior consent of IFC.

  
 Section 8.08. Amendments, Waivers and
Consents. Any amendment or waiver of, or any consent given under, any provision of this Agreement shall be in writing and, in the case of an amendment, signed by the parties. 
  
 Section 8.09 Counterparts. This Agreement may be executed in several counterparts, each of which is an
original, but all of which together constitute one and the same agreement. 
  
 Section 8.10. Severability. To the fullest extent permitted by law, the invalidity or unenforceability of any provision of this Agreement in any jurisdiction shall not affect the validity or
enforceability of any other provision hereof in such jurisdiction or of such or any other provision in any other jurisdiction. 
  
 Section 8.11. Rights of Third Parties. A Person who is not a party to this Agreement has no rights under the Contracts (Rights of Third
Parties) Act 1999 to enforce or enjoy the benefit of any term of this Agreement. 
  
 [The remainder of this page was left blank intentionally] 

 69 
  

 IN WITNESS WHEREOF, the parties have caused this Agreement to be signed in their respective names as of
the date first above written. 
  

			
	 VAALCO GABON (ETAME), INC.

		
	By:	 	 /s/ W. Russell Sheirman

	 Name:
	 	 W. Russell Sheirman

	 Title:
	 	 President

  

			
	 INTERNATIONAL FINANCE CORPORATION

		
	By:	 	 /s/ Rashad-Rudolf Kaldany

	 Name:
	 	 Rashad-Rudolf Kaldany

	 Title:
	 	 Director
 (Oil, Gas, Mining and Chemicals Department)

 70 
  

 ANNEX A 
 Page 1 of 6 
  
 MINIMUM
INSURANCE REQUIREMENTS 
  
 The Borrower shall effect and
maintain the following insurance covers, at all times during the period of the Loan Agreement, under forms of policies and with insurers and reinsurers acceptable to IFC, in the following terms: 
  

	1.	Marine Cargo Insurance, (for imported plant and equipment)  

 covering imports (and returns if applicable) of plant, equipment, machinery and materials to the Project site; 
  
 Cover is to be on the basis of Institute Cargo Clauses (A) plus War, plus Strike, Riot and Civil Commotion and should include a minimum of 60 days of
storage on site. 
  

					
	 Sum Insured
	  	:	  	No less than the value of all plant, equipment and supplies, plus insurance and freight (CIF).
			
	 Deductibles
	  	:	  	Not to exceed US$ 50,000 each loss.
			
	 Insured
	  	:	  	 The Project Partners and IFC.

			
	 General
	  	:	  	 Cover to include 50/50 Clause.

  

	2.	Construction “All Risks” (“CAR”)/ Builders’ Risk 

  

					
	 Cover
	  	:	  	All contract works executed and in the course of execution, materials and temporary works (exceeding project values of US$ 1,000,000, against “all risks” of physical loss or damage,
except as may be excluded in the policy.
			
	 Sum Insured
	  	:	  	An amount sufficient to pay claims on a reinstatement basis.
			
	 Deductibles
	  	:	  	In respect of any one occurrence, arising during the construction and testing period:

 71 
  

 ANNEX A 
 Page 2 of 6 
  

									
	 	  	 	  	i)       from Storm, Tempest, Flood, Water Damage, Tsunami,
          Subsidence and
Collapse	  	Not more than
US$500,000
				
	 	  	 	  	ii)     from any other cause	  	Not more than
US$500,000
			
	 Period of Cover
	  	:	  	To cover individual works contracts from the commencement of works until hand-over of
completed works or when completed works are transferred to operational insurance
cover.
			
	 Insured
	  	:	  	The Project Partners, the Project contractors and suppliers and IFC.
				
	 General
	  	:	  	a)	  	Cover shall include transit within Gabon of locally procured goods and materials.
				
	 	  	 	  	b)	  	Claims will be paid in the currency in which the cost is incurred.
				
	 	  	 	  	c)	  	The insurers and reinsurers to waive all rights of subrogation against each insured party hereunder.
				
	 	  	 	  	d)	  	Faulty Design coverage is to be included to the extent that coverage is available. The sum insured should be on a full replacement cost basis and should include any ‘free
issue’ supplied to the management contractor such as start up electricity costs etc.
				
	 	  	 	  	e)	  	Both Ocean Marine and CAR covers shall carry a 50/50 hidden damage provision.

 72 
  

 ANNEX A 
 Page 3 of 6 
  

	3.	Operational Insurances: 

  
 A. COVERAGE: 
  

			
	 Section A(i):
	  	Platform/Pipeline Physical Damage Insurance including Removal of Debris or Wreck.
		
	 Section A(ii):
	  	 Removal of Debris and /or Wreck only.

		
	 Section B:
	  	 Operator’s Extra Expense.

		
	 Section C:
	  	 Business Interruption/Extra Expense.

		
	 Section D(i):
	  	 Umbrella Liabilities including liability arising from U.S. operations.

		
	 Section D(ii):
	  	 Excess Umbrella Liabilities including liability arising from U.S. operations.

		
	 Section E:
	  	 Limited Terrorist Coverage.

		
	 Section F:
	  	 Hull & Machinery.

  
 B. SUM
INSURED/LIMIT OF LIABILITY 
  

			
	 Section A(i):
	  	The replacement value of the property insured, but not to exceed the scheduled value, but a separate and additional limit up to $5,000,000 any one occurrence in respect of Removal of Debris
and/or Wreck, not to exceed the scheduled value.
		
	 Section A(ii):
	  	 $1,000,000 any one occurrence.

 73 
  

 ANNEX A 
 Page 4 of 6 
  

			
	 Section B:
	  	$25,000,000 (100%) any one occurrence, but $10,000,000 (100%) any one occurrence in respect of Onshore U.S.A. Operations, and a separate and additional $1,000,000 (100%) any one occurrence
for Care, Custody and Control.
		
	 Section C:
	  	 At a minimum, All Fixed Expenses, including principal, interest and fees under the Loan Agreement, for the agreed indemnity
period

		
	 Section D(i):
	  	 $5,000,000 any one accident or occurrence and in the aggregate as applicable.

		
	 Section D(ii):
	  	 $20,000,000 any one accident or occurrence and in the aggregate as applicable.

		
	 Section E:
	  	 As per agreed values and/or limits in the applicable sections herein.

		
	 Section F:
	  	 Agreed Value ( to be confirmed by IFC )

  
 C. DEDUCTIBLES AND/OR EXCESS:

  

			
	 Section A(i):
	  	$250,000 each loss or occurrence deductible excluding Total or Constructive Total Loss. The deductible applicable to the Nido CALM Buoy is $150,000 each loss or occurrence, excluding Total or
Constructive Total Loss.
		
	 Section A(ii):
	  	$250,000 any one occurrence.
		
	 Section B:
	  	$250,000 (100%) each loss or occurrence deductible, except $100,000 each loss or occurrence deductible in respect of Onshore U.S.A. Operations and Care, Custody, and Control which shall be
subject to a $25,000 (100%) deductible each loss or occurrence.
		
	 Section C:
	  	Not more than 30 days.

 74 
  

 ANNEX A 
 Page 5 of 6 
  

			
	 Section D(i):
	  	Excess of underlyings as per schedule, or $100,000 self-insured retention, as applicable.
		
	 Section D(ii):
	  	Excess of Section Di.
		
	 Section E:
	  	As per the deductible and/or excess in the applicable sections.
		
	 Section F:
	  	To be agreed by IFC.

  

	4.	Third Party Liability Insurance: 

  
 For construction and operational periods, third party liability insurances with a minimum limit of indemnity of US$10,000,000 and shall include full cross
liabilities. 
  

	5.	Miscellaneous 

  
 Other insurance which, 
  

	 	a)	is customary or necessary to comply with local or other requirements, such as contractual insuring responsibility, Workers’ Compensation and Employers’ Liability
insurances in relation to all workmen employed at the Project or in connection with its operation; motor vehicle liability insurance for all vehicles owned, hired, leased, used or borrowed for use in Gabon in connection with the Project;

  

	 	b)	is considered by the Borrower to be desirable or prudent, or required by IFC; or 

  

	 	c)	are required by local legislation or the PSC. 

  

	6.	General 

  

	 	a)	The Borrower shall procure that each policy effected pursuant to this Annex A shall comply with the requirements of Section 6.04(b), and in addition provide:

 75 
  

 ANNEX A 
 Page 6 of 6 
  

	 	i)	that the protection which is granted to IFC under the policies is not to be invalidated by any act or failure to act on the part of the Borrower, the Project Partners, the FPSO
operator, or other contractors or subcontractors; and 

  

	 	ii)	that IFC is not responsible to the insurers or reinsurers for the payment of insurance premiums or any other obligations of the Borrower. 

  

	 	b)	Each policy effected pursuant to this Annex A: 

  

	 	i)	shall be in such form and substance as is consistent with the obligations of the Borrower under this Annex A, as may be approved by IFC, and 

  

	 	ii)	shall not include any provision for self-insurance, or any self-insurance retention except to the extent of the deductibles as specified in this Annex A. 

 

	 	c)	If IFC reasonably considers that, as a result of a material change in the identified risk exposure, any of the terms, conditions, amounts and deductibles of insurances procured
pursuant to this Annex A are inadequate or inappropriate, IFC may require that the Borrower procure such amended and/or additional insurances as may be reasonably required to cover such material change. 

 76 
  

 SCHEDULE 1 
 Page 1 of 2 

 77 
  

 SCHEDULE 4 
 Page 1 of 2 
  
 FORM OF SERVICE
OF PROCESS LETTER 
 [Letterhead of Agent for Service of Process] 
 (See Section 5.01 (m) of the Loan Agreement) 
  
 [Date] 
  
 International Finance Corporation 
 2121 Pennsylvania Avenue, N.W. 
 Washington, D.C. 20433 
 Attention: Director, Oil, Gas and Chemicals Department 
  
 Re:
[Gabon/                    ] 
  
 Dear Sirs: 
  
 Reference is made to Section 5.01(m) of the Loan Agreement dated June     , 2005 (the “Loan Agreement”)
between VAALCO Gabon (Etame), Inc. (the “Borrower”) and International Finance Corporation (“IFC”). Unless otherwise defined herein, capitalized terms used herein shall have the meaning specified in the Loan
Agreement. 
  
 Pursuant to Section 8.05 (d) of the Loan
Agreement, the Borrower has irrevocably designated and appointed the undersigned,
                             with offices currently located at
                                        
as its authorized agent to receive for and on its behalf service of process in any legal action or proceeding with respect to the Loan Agreement and the other Transaction Documents to which it is a party in the courts of England. 
  
 The undersigned hereby informs you that it has irrevocably accepted that
appointment as process agent as set forth in Section 8.05 (d) of the Loan Agreement from
                             until
                             and agrees with you that the undersigned (i) shall inform IFC
promptly in writing of any change of its address in                             , (ii) shall
perform its obligations as such process agent in accordance with the relevant provisions of Section 8.05 (e) of the Loan Agreement, and (iii) shall forward promptly to the Borrower any legal process received by the undersigned in its
capacity as process agent. 

 78 
  

 SCHEDULE 4 
 Page 2 of 2 
  
 As process agent,
the undersigned and its successor or successors agree to discharge the above-mentioned obligations and will not refuse fulfillment of such obligations as provided under Section 8.05 (e) of the Loan Agreement. 
  

			
	 Very truly yours,

	
	 [                    ]

		
	By	 	 
	 	 	Title:

  
  
 cc: VAALCO Gabon (Etame), Inc. 

 79 
  

 SCHEDULE 5 
 Page 1 of 2 
  
 FORM OF LETTER
TO BORROWER’S AUDITORS 
  
 (See Section 5.01(k) and
Section 6.01(e) of 
 the Loan Agreement) 
  
 [Borrower’s Letterhead] 
  
 [Date] 
  
 [NAME OF AUDITORS] 
 [ADDRESS] 
  
 Ladies and Gentlemen:

  
 We hereby authorize and request you to give to International
Finance Corporation of 2121 Pennsylvania Avenue, N.W., Washington, D.C. 20433, United States of America (“IFC”), all such information as IFC may reasonably request with regard to the financial statements of the undersigned company, both
audited and unaudited. We have agreed to supply that information and those statements under the terms of an Loan Agreement between the undersigned company and IFC dated
                            ,
                 (the “Loan Agreement”). For your information we enclose a copy of the Loan Agreement. 
  
 We authorize and request you to send two copies of the audited accounts of
the undersigned company to IFC to enable us to satisfy our obligation to IFC under Section 6.03 (b) (i) of the Loan Agreement. When submitting the same to IFC, please also send, at the same time, a copy of your full report on such
accounts in a form reasonably acceptable to IFC. 
  
 Please note
that under Section 6.03 (b) (ii) and (iii) and Section 6.03 (c) of the Loan Agreement, we are obliged to provide IFC with: 
  
 (a) a copy of the annual and any other management letter or other communication from you to the undersigned company or its management commenting on, among
other things, the adequacy of the undersigned company’s financial control procedures and accounting and management information system; and 

 80 
  

 SCHEDULE 5 
 Page 2 of 2 
  
 (b) a report by
you certifying that, based upon its audited financial statements, the undersigned company was in compliance with the financial ratios and financial covenants contained in Sections 6.01 and 6.02 of the Loan Agreement as at the end of the relevant
Fiscal Year or, as the case may be, detailing any non-compliance. 
  
 Please also submit each such communication and report to IFC with the audited accounts. 
  
 For our records, please ensure that you send to us a copy of every letter which you receive from IFC immediately upon receipt and a copy of each reply
made by you immediately upon the issue of that reply. 
  

			
	 Yours truly,

	
	 VAALCO GABON (ETAME), INC.

		
	By	 	 
	 	 	Authorized Representative

  
 Enclosure 
  

			
	 cc:
	  	 Director
 Oil, Gas and Chemicals Department
 International Finance Corporation
 2121 Pennsylvania Avenue, N.W.
 Washington, D.C. 20433
 United States of America

  
  
  
  
  
  

 81 
  

 SCHEDULE 6 
 Page 1 of 2 
  
 INFORMATION TO
BE INCLUDED IN ANNUAL REVIEW OF 
 OPERATIONS 
  
 (See Section 6.03 (b) (iv) of the Loan Agreement) 
  

	(1)	Sponsors and Shareholdings. Information on any changes in share ownership of Borrower, the reasons for such changes, and the identity of new shareholders and information on a
change in the identity of the other Project Partners. 

  

	(2)	Country Conditions and Government Policy. Report on any material changes in conditions in Gabon, including government policy changes, that directly affect the Borrower (e.g.
changes in government economic strategy, taxation, foreign exchange availability, price controls, and other areas of regulation.) 

  

	(3)	Management and Technology. Information on significant changes in (i) the Borrower’s senior management or organizational structure, and (ii) technology used by
the Borrower, including technical assistance arrangements. 

  

	(4)	Corporate Strategy. Description of any changes to the Borrower’s corporate or operational strategy, including changes in products, degree of integration, and business
emphasis. 

  

	(5)	Markets. Brief analysis of changes in Borrower’s market conditions (both domestic and export), with emphasis on changes in market share and degree of competition.

  

	(6)	Operating Performance. Discussion of major factors affecting the year’s financial results (sales by value and volume, operating and financial costs, profit margins,
capacity utilization, capital expenditure, etc.). 

  

	(7)	Relevant Payments to the government or any other Authority. Amounts contributed by the Project under the terms of its PSC, or any other revenue payments made to the
government of Gabon or any other Gabonese Authority. 

 82 
  

 SCHEDULE 6 
 Page 2 of 2 
  

	(8)	Other Project Development Benefits. Total direct (and to the extent feasible indirect) employment generated by the Project in Gabon, training and other social benefits from
the Project. 

 83 
  

 SCHEDULE 7 
 Page 1 of 2 
  
 IFC BASE CASE
ASSUMPTIONS 
  

	1.	Currency: All projections in constant US Dollars. 

  

	2.	Agreed Oil Price: Brent as per World Bank Forecast. 

  

	3.	Discount: US$3.35 per barrel, and for the Calculation Date of December 31, 2004 and thereafter, the twelve (12) month trailing average Discount realized, as may be
agreed by IFC. 

  

	4.	Proved Reserves Criteria: Based on Proved Developed Reserves and Reserve Certification carried out as of each Calculation Date or such other Proved Reserves Criteria, or
otherwise agreed by IFC. 

  

	5.	Production: Based on the production profile corresponding to the Proved Reserves Criteria as provided in the most recent Reserve Certification, or otherwise agreed by IFC.

  

	6.	Fiscal System: Production Sharing, Recovery of Petroleum Costs, State Participation and other relevant calculations as defined in the PSC. 

  

	7.	Gross Revenue: Based on the sum of all proceeds, in whatever currency, received from the sale of hydrocarbons and any other revenues received by the permit holder(s). For
projections, based on the applicable Production and Agreed Oil Price less Discount. 

  

	8.	Gross Operating Expenses: Based on: (i) fixed operating expenses (including G&A US$4.1 million, air/sea-support US$6.9 million, fuel and other costs US$1.8 million)
of US$12.8 million per year, or otherwise agreed by IFC; (ii) FPSO expenses in accordance with the Contract between the Borrower and Tinworth Limited dated August 20, 2001 (as amended or supplemented from time to time) and any other
FPSO-related charges accepted under the PSC; (iii) variable operating expenses related to the relevant Etame Block Field(s) as per the Reserve Certification, or otherwise agreed by IFC; (iv) non-recoverable expenses such as payments to the
hydrocarbon support fund; (v) provisions for abandonment; and (vi) any new operating expenses which may arise as a result of changes to the Project. Reserve Certifications to include projected Gross Operating Expenses.

 84 
  

 SCHEDULE 7 
 Page 2 of 2 
  

	9.	Gross Capital Expenditures: Capital expenditures associated with the Project and any other actual or projected capital expenditures that are necessary to sustain actual or
projected Production, as per the Reserve Certification, or otherwise agreed by IFC. 

  

	10.	Depreciation: Based on Successful Method of Accounting ((a) All capital expenditures are depreciated on a unit of production basis; (b) G&G exploration expenditures
are written off in the year incurred; and (c) Future risked development and appraisal capital expenditures are treated as exploration deferred assets to be written off appropriately), and subject to the Accounting Principles.

  

	11.	Receivables: 30 days of Revenue receipts, or otherwise agreed by IFC. 

  

	12.	Other Current Assets: 15 days of Revenue receipts, or otherwise agreed by IFC. 

  

	13.	Other Long-term Assets: 4.5 days of Revenue receipts, or otherwise agreed by IFC. 

  

	14.	Payables: 250 days of Operating Expenses, or otherwise agreed by IFC. 

  

	15.	Interest Rate: Based on the six (6) month US$ forward curve according to Bloomberg function FWCV [GO], as of the date of calculation. 

  

	16.	Relevant Figures: All Relevant Figures to be calculated based on the Borrower’s net share and where relevant, its financial statements. In addition, Relevant Figures in
respect of the projected amount of the Loans as at any date, shall be calculated on the assumption that the outstanding amount of the Loans at any date are equal to the projected Available Amount on such date.Pooling and Servicing Agreement

 Exhibit 4.1 
  

SG MORTGAGE SECURITIES, LLC, 
  
 Depositor, 
  
 [WELLS FARGO], 
  
 Master Servicer, 
  
 and 
  
 [TRUSTEE], 
  
 Trustee 
  
 POOLING AND SERVICING AGREEMENT 
  
 Dated as of [DATE] 
  
 Mortgage Asset-Backed [and Manufactured Housing Contract] 
 Pass-Through Certificates,

  
 Series
[            ] 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	ARTICLE I	  	DEFINITIONS	  	3
			
	 Section 1.01
	  	 Definitions
	  	3
			
	 Section 1.02
	  	 Determination of LIBOR
	  	51
			
	ARTICLE II	  	CONVEYANCE OF MORTGAGE LOANS; ORIGINAL ISSUANCE OF CERTIFICATES	  	52
			
	 Section 2.01
	  	 Conveyance of Mortgage Loans
	  	52
			
	 Section 2.02
	  	 Acceptance by Trustee
	  	55
			
	 Section 2.03
	  	 Representations, Warranties and Covenants of the Master Servicer and the Depositor
	  	57
			
	 Section 2.04
	  	 Representations and Warranties of Sellers
	  	59
			
	 Section 2.05
	  	 Execution and Authentication of Certificates; Conveyance of REMIC I Regular Interests
	  	61
			
	 Section 2.06
	  	 Purposes and Powers of the Trust
	  	62
			
	ARTICLE III	  	ADMINISTRATION AND SERVICING OF MORTGAGE LOANS	  	62
			
	 Section 3.01
	  	 Master Servicer to Act as Servicer
	  	62
			
	 Section 3.02
	  	 Subservicing Agreements Between Master Servicer and Subservicers; Enforcement of Subservicers’ Obligations
	  	65
			
	 Section 3.03
	  	 Successor Subservicers
	  	66
			
	 Section 3.04
	  	 Liability of the Master Servicer
	  	67
			
	 Section 3.05
	  	 No Contractual Relationship Between Subservicer and Trustee or Certificateholders
	  	67
			
	 Section 3.06
	  	 Assumption or Termination of Subservicing Agreements by Trustee
	  	67
			
	 Section 3.07
	  	 Collection of Certain Mortgage Loan Payments; Deposits to Custodial Account
	  	68
			
	 Section 3.08
	  	 Subservicing Accounts; Servicing Accounts
	  	70
			
	 Section 3.09
	  	 Access to Certain Documentation and Information Regarding the Mortgage Loans
	  	72
			
	 Section 3.10
	  	 Permitted Withdrawals from the Custodial Account
	  	72
			
	 Section 3.11
	  	 Maintenance of Primary Insurance Coverage
	  	74
			
	 Section 3.12
	  	 Maintenance of Fire Insurance and Omissions and Fidelity Coverage
	  	75

  

 -i- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page

	 Section 3.13
	  	 Enforcement of Due-on-Sale Clauses; Assumption and Modification Agreements; Certain Assignments
	  	76
			
	 Section 3.14
	  	 Realization Upon Defaulted Mortgage Loans
	  	78
			
	 Section 3.15
	  	 Trustee to Cooperate; Release of Mortgage Files
	  	81
			
	 Section 3.16
	  	 Servicing and Other Compensation; Compensating Interest
	  	82
			
	 Section 3.17
	  	 Reports to the Trustee and the Depositor
	  	83
			
	 Section 3.18
	  	 Annual Statement as to Compliance
	  	83
			
	 Section 3.19
	  	 Annual Independent Public Accountants’ Servicing Report
	  	84
			
	 Section 3.20
	  	 Right of the Depositor in Respect of the Master Servicer
	  	84
			
	 Section 3.21
	  	 Advance Facility
	  	85
			
	ARTICLE IV	  	PAYMENTS TO CERTIFICATEHOLDERS	  	88
			
	 Section 4.01
	  	 Certificate Account
	  	88
			
	 Section 4.02
	  	 Distributions
	  	89
			
	 Section 4.03
	  	 Statements to Certificateholders; Statements to Rating Agencies; Exchange Act Reporting
	  	93
			
	 Section 4.04
	  	 Distribution of Reports to the Trustee and the Depositor; Advances by the Master Servicer
	  	98
			
	 Section 4.05
	  	 Allocation of Realized Losses
	  	99
			
	 Section 4.06
	  	 Reports of Foreclosures and Abandonment of Mortgaged Property
	  	101
			
	 Section 4.07
	  	 Optional Purchase of Defaulted Mortgage Loans
	  	102
			
	 Section 4.08
	  	 Hedge Agreement
	  	102
			
	ARTICLE V	  	THE CERTIFICATES	  	103
			
	 Section 5.01
	  	 The Certificates
	  	103
			
	 Section 5.02
	  	 Registration of Transfer and Exchange of Certificates
	  	105
			
	 Section 5.03
	  	 Mutilated, Destroyed, Lost or Stolen Certificates
	  	111
			
	 Section 5.04
	  	 Persons Deemed Owners
	  	111
			
	 Section 5.05
	  	 Appointment of Paying Agent
	  	111
			
	ARTICLE VI	  	THE DEPOSITOR AND THE MASTER SERVICER	  	112
			
	 Section 6.01
	  	 Respective Liabilities of the Depositor and the Master Servicer
	  	112

  

 -ii- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page

	 Section 6.02
	  	 Merger or Consolidation of the Depositor or the Master Servicer; Assignment of Rights and Delegation of Duties by Master Servicer
	  	112
			
	 Section 6.03
	  	 Limitation on Liability of the Depositor, the Master Servicer and Others
	  	113
			
	 Section 6.04
	  	 Depositor and Master Servicer Not to Resign
	  	114
			
	ARTICLE VII	  	DEFAULT	  	114
			
	 Section 7.01
	  	 Events of Default
	  	114
			
	 Section 7.02
	  	 Trustee or Depositor to Act; Appointment of Successor
	  	116
			
	 Section 7.03
	  	 Notification to Certificateholders
	  	117
			
	 Section 7.04
	  	 Waiver of Events of Default
	  	117
			
	ARTICLE VIII	  	CONCERNING THE TRUSTEE	  	118
			
	 Section 8.01
	  	 Duties of Trustee
	  	118
			
	 Section 8.02
	  	 Certain Matters Affecting the Trustee
	  	119
			
	 Section 8.03
	  	 Trustee Not Liable for Certificates or Mortgage Loans
	  	121
			
	 Section 8.04
	  	 Trustee May Own Certificates
	  	121
			
	 Section 8.05
	  	 Master Servicer to Pay Trustee’s Fees and Expenses; Indemnification
	  	121
			
	 Section 8.06
	  	 Eligibility Requirements for Trustee
	  	122
			
	 Section 8.07
	  	 Resignation and Removal of the Trustee
	  	122
			
	 Section 8.08
	  	 Successor Trustee
	  	123
			
	 Section 8.09
	  	 Merger or Consolidation of Trustee
	  	124
			
	 Section 8.10
	  	 Appointment of Co-Trustee or Separate Trustee
	  	124
			
	 Section 8.11
	  	 Appointment of Custodians
	  	125
			
	 Section 8.12
	  	 Appointment of Office or Agency
	  	126
			
	 Section 8.13
	  	 DTC Letter of Representations
	  	126
			
	 Section 8.14
	  	 Hedge Agreement
	  	126
			
	ARTICLE IX	  	TERMINATION	  	126
			
	 Section 9.01
	  	 Termination Upon Purchase or Liquidation of All Mortgage Loans
	  	126
			
	 Section 9.02
	  	 Additional Termination Requirements
	  	131

  

 -iii- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page

	ARTICLE X	  	REMIC PROVISIONS	  	131
			
	 Section 10.01
	  	 REMIC Administration
	  	131
			
	 Section 10.02
	  	 Master Servicer, REMIC Administrator and Trustee Indemnification
	  	135
			
	ARTICLE XI	  	MISCELLANEOUS PROVISIONS	  	136
			
	 Section 11.01
	  	 Amendment
	  	136
			
	 Section 11.02
	  	 Recordation of Agreement; Counterparts
	  	138
			
	 Section 11.03
	  	 Limitation on Rights of Certificateholders
	  	139
			
	 Section 11.04
	  	 Governing Law
	  	139
			
	 Section 11.05
	  	 Notices
	  	140
			
	 Section 11.06
	  	 Notices to Rating Agencies
	  	140
			
	 Section 11.07
	  	 Severability of Provisions
	  	141
			
	 Section 11.08
	  	 Supplemental Provisions for Resecuritization
	  	141
			
	ARTICLE XII	  	COMPLIANCE WITH REGULATION AB	  	142
			
	 Section 12.01
	  	 Intent of the Parties; Reasonableness
	  	142
			
	 Section 12.02
	  	 Additional Representations and Warranties of the Trustee
	  	142
			
	 Section 12.03
	  	 Information to Be Provided by the Trustee
	  	143
			
	 Section 12.04
	  	 Report on Assessment of Compliance and Attestation
	  	143
			
	 Section 12.05
	  	 Indemnification; Remedies
	  	144

  

 -iv- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page

	Exhibit A	  	Form of Class A Certificate	  	A-1
	Exhibit B-1	  	Form of Class M Certificate	  	B-1-1
	Exhibit B-2	  	Form of Class B Certificate	  	B-2-1
	Exhibit C	  	Form of Class SB Certificate	  	C-1
	Exhibit D	  	Form of Class R Certificate	  	D-1
	Exhibit E	  	Form of Custodial Agreement	  	E-1
	Exhibit F	  	Mortgage Loan Schedule	  	F-1
	Exhibit G	  	Form of Request for Release	  	G-1
	Exhibit H-1	  	Form of Transfer Affidavit and Agreement	  	H-1-1
	Exhibit H-2	  	Form of Transferor Certificate	  	H-2-1
	Exhibit I	  	Form of Investor Representation Letter	  	I-1
	Exhibit J	  	Form of Transferor Representation Letter	  	J-1
	Exhibit K	  	Text of Amendment to Pooling and Servicing Agreement Pursuant to Section 11.01(e) for a Limited Guaranty	  	K-1
	Exhibit L	  	Form of Limited Guaranty	  	L-1
	Exhibit M	  	Form of Lender Certification for Assignment of Mortgage Loan	  	M-1
	Exhibit N	  	Form of Rule 144A Investment Representation	  	N-1
	Exhibit O	  	[Reserved]	  	O-1
	Exhibit P	  	Form of ERISA Letter	  	P-1
	Exhibit Q	  	Reserved	  	Q-1
	Exhibit R	  	Assignment Agreement	  	R-1
	Exhibit S	  	[Reserved]	  	S-1
	Exhibit T-1	  	Form of 10-K Certification	  	T-1-1
	Exhibit T-2	  	Form of Back-Up Certification	  	T-2-1
	Exhibit U	  	Information to be Provided by the Master Servicer to the Rating Agencies Relating to Reportable Modified Mortgage Loans	  	U-1
	Exhibit V	  	Servicing Criteria	  	V-1

  

 -v- 

 This Pooling and Servicing Agreement, effective as of [DATE], among SG Mortgage Securities, LLC, as the
depositor (together with its permitted successors and assigns, the “Depositor”), [WELLS FARGO], as Master Servicer (together with its permitted successors and assigns, the “Master Servicer”), and [TRUSTEE], a banking association
organized under the laws of the United States, as trustee (together with its permitted successors and assigns, the “Trustee”). 
  
 PRELIMINARY STATEMENT: 
  
 The Depositor intends to sell mortgage asset-backed pass-through certificates (collectively, the “Certificates”), to be issued hereunder in
[            ] Classes, which in the aggregate will evidence the entire beneficial ownership interest in the Mortgage Loans (as defined herein) and certain other related assets.

  
 REMIC I 
  
 As provided herein, the REMIC Administrator will make an election to treat
the segregated pool of assets consisting of the Mortgage Loans and certain other related assets (exclusive of the Hedge Agreement) subject to this Agreement as a real estate mortgage investment conduit (a “REMIC”) for federal income tax
purposes, and such segregated pool of assets will be designated as “REMIC I.” The Class R-I Certificates will represent the sole Class of “residual interests” in REMIC I for purposes of the REMIC Provisions (as defined
herein) under federal income tax law. The following table irrevocably sets forth the designation, remittance rate (the “Uncertificated REMIC I Pass-Through Rate”) and initial Uncertificated Principal Balance for each of the “regular
interests” in REMIC I (the “REMIC I Regular Interests”). The “latest possible maturity date” (determined solely for purposes of satisfying Treasury regulation Section 1.860G-1(a)(4)(iii)) for each REMIC I Regular
Interest shall be the Maturity Date. None of the REMIC I Regular Interests will be certificated. 
  

							
	 Designation

	 	 Uncertificated
 REMIC I
 Pass-Through Rate

	 	 Initial Uncertificated
 REMIC I
 Principal Balance

	 	 Latest Possible
 Maturity Date

	LT1	 	Variable (1)	 	 	 	 
	LT2	 	Variable (1)	 	 	 	 
	LT3	 	0.00%	 	 	 	 
	LT4	 	Variable (1)	 	 	 	 

	(1)	Calculated as provided in the definition of Uncertificated REMIC I Pass-Through Rate.

  
 REMIC II 
  
 As provided herein, the REMIC Administrator will make an election to treat
the segregated pool of assets consisting of the REMIC I Regular Interests as a REMIC for federal income tax purposes, and such segregated pool of assets will be designated as REMIC II. The Class R-II Certificates will represent the sole Class of
“residual interests” in REMIC II for purposes of the REMIC Provisions under federal income tax law. The following table irrevocably sets forth the designation, Pass-Through Rate, aggregate Initial Certificate Principal 

 Balance, certain features, month of Final Scheduled Distribution Date and initial ratings for each Class of Certificates
comprising the interests representing “regular interests” in REMIC II. The “latest possible maturity date” (determined solely for purposes of satisfying Treasury Regulation Section 1.860G-1(a)(4)(iii)) for each Class of
REMIC II Regular Interests shall be the Maturity Date. 
  

															
	 Designation

	  	Type

	 	Pass-Through
Rate

	 	Aggregate Initial
Certificate
Principal Balance

	  	 Features

	  	Month of
Final Scheduled
Distribution
Date

	  	Initial Ratings

	  	 	 	  	  	  	S&P

	  	Moody’s

	Class A-[1]	  	Regular(1)	 	Adjustable(2)(3)	 	 	  	Senior/Adjustable Rate	  	 	  	AAA	  	Aaa
	Class A-[2]	  	Regular(1)	 	Adjustable(2)(3)	 	 	  	Senior/Adjustable Rate	  	 	  	AAA	  	Aaa
	Class A-[3]	  	Regular(1)	 	Adjustable(2)(3)	 	 	  	Senior/Adjustable Rate	  	 	  	AAA	  	Aaa
	Class A-[4]	  	Regular(1)	 	Adjustable(2)(3)	 	 	  	Senior/Adjustable Rate	  	 	  	AAA	  	Aaa
	Class M-1	  	Regular(1)	 	Adjustable(2)(3)	 	 	  	Mezzanine/Adjustable Rate	  	 	  	AA+	  	Aaa
	Class M-2	  	Regular(1)	 	Adjustable(2)(3)	 	 	  	Mezzanine/Adjustable Rate	  	 	  	AA+	  	Aa1
	Class M-3	  	Regular(1)	 	Adjustable(2)(3)	 	 	  	Mezzanine/Adjustable Rate	  	 	  	AA	  	Aa2
	Class M-4	  	Regular(1)	 	Adjustable(2)(3)	 	 	  	Mezzanine/Adjustable Rate	  	 	  	AA-	  	Aa3
	Class M-5	  	Regular(1)	 	Adjustable(2)(3)	 	 	  	Mezzanine/Adjustable Rate	  	 	  	A+	  	A1
	Class M-6	  	Regular(1)	 	Adjustable(2)(3)	 	 	  	Mezzanine/Adjustable Rate	  	 	  	A	  	A2
	Class M-7	  	Regular(1)	 	Adjustable(2)(3)	 	 	  	Mezzanine/Adjustable Rate	  	 	  	A-	  	A3
	Class M-8	  	Regular(1)	 	Adjustable(2)(3)	 	 	  	Mezzanine/Adjustable Rate	  	 	  	BBB+	  	Baa1
	Class M-9	  	Regular(1)	 	Adjustable(2)(3)	 	 	  	Mezzanine/Adjustable Rate	  	 	  	BBB	  	Baa2
	Class M-10	  	Regular(1)	 	Adjustable(2)(3)	 	 	  	Mezzanine/Adjustable Rate	  	 	  	BBB-	  	Baa3
	Class B-1	  	Regular(1)	 	Adjustable(2)(3)	 	 	  	Subordinate/Adjustable Rate	  	 	  	BB+	  	Ba1
	Class B-2	  	Regular(1)	 	Adjustable(2)(3)	 	 	  	Subordinate/Adjustable Rate	  	 	  	BB+	  	Ba2
	Class B-3	  	Regular(1)	 	Adjustable(2)(3)	 	 	  	Subordinate/Adjustable Rate	  	 	  	BB+	  	N/R
	Class B-4	  	Regular(1)	 	Adjustable(2)(3)	 	 	  	Subordinate/Adjustable Rate	  	 	  	BB	  	N/R
	Class SB	  	Regular(4)	 	(4)	 	 	  	Subordinate	  	 	  	N/R	  	N/R

	(1)	The Class A, Class M and Class B Certificates will represent ownership of REMIC II
Regular Interests together with certain rights to payments to be made from amounts received under the Hedge Agreement which will be deemed made for federal income tax purposes outside of REMIC II by the holder of the Class SB Certificates as the
owner of the Hedge Agreement. 

	(2)	The REMIC II Regular Interests ownership of which is represented by the Class A, Class M
and Class B Certificates, will accrue interest at a per annum rate equal to the lesser of (i) LIBOR plus the applicable Margin and (ii) the REMIC Net WAC Rate and the provisions for the payment of Basis Risk Shortfalls herein, which
payments will not be part of the entitlement of the REMIC II Regular Interests related to such Certificates. 

	(3)	The Class A, Class M and Class B Certificates will also entitle their holders to certain
payments from the Holder of the Class SB Certificates from amounts to which the related REMIC II Regular Interest is entitled and from amounts received under the Hedge Agreement, which will not be a part of their ownership of the REMIC II Regular
Interests. 

	(4)	The Class SB Certificates will accrue interest as described in the definition of Accrued
Certificate Interest. The Class SB Certificates will not accrue interest on their Certificate Principal Balance. The Class SB Certificates will represent ownership of two REMIC II Regular Interests, a principal only regular interest designated REMIC
II Regular Interest SB-PO and an interest only regular interest designated REMIC II Regular Interest SB-IO, which will be entitled to distributions as set forth herein. The rights of the Holder of the Class SB Certificates to payments from the Hedge
Agreement shall be outside and apart from its rights under the REMIC II Regular Interests SB-IO and SB-PO. 

  

 2 

 In consideration of the mutual agreements herein contained, the Depositor, the Master Servicer and the
Trustee agree as follows: 
  
 ARTICLE I 
 DEFINITIONS 
  
 Section 1.01 Definitions. 
  
 Whenever used in this Agreement, the following words and phrases, unless the context otherwise requires, shall have the meanings specified in this
Article. 
  
 Accrued Certificate Interest: With respect to
each Distribution Date and each Class of Class A Certificates, Class M Certificates and Class B Certificates, interest accrued during the related Interest Accrual Period on the Certificate Principal Balance thereof immediately prior to such
Distribution Date at the related Pass-Through Rate for that Distribution Date. 
  
 The amount of Accrued Certificate Interest on each Class of Certificates shall be reduced by the amount of Prepayment Interest Shortfalls on the related Mortgage Loans during the prior calendar month to the extent not
covered by Compensating Interest pursuant to Section 3.16, and by Relief Act Shortfalls on the related Mortgage Loans during the related Due Period. All such reductions with respect to the Mortgage Loans will be allocated among the Certificates
in proportion to the amounts of Accrued Certificate Interest payable on such Certificates on such Distribution Date absent such reductions. 
  
 Accrued Certificate Interest on each Class of Class A Certificates, Class M Certificates and Class B Certificates for any Distribution Date shall
also be reduced by any interest shortfalls resulting from the failure of the Hedge Agreement Provider to make the required Hedge Payment for such Distribution Date, with all such reductions allocated to the Class A Certificates,
Class M Certificates and Class B Certificates on a pro rata basis, based on the portion of the Hedge Payment each such Class was entitled to, but did not receive, on such Distribution Date. 
  
 Accrued Certificate Interest for any Distribution Date shall further be
reduced by the interest portion of Realized Losses allocated to any Class of Certificates pursuant to Section 4.05. 
  
 Accrued Certificate Interest shall accrue on the basis of a 360-day year and the actual number of days in the related Interest Accrual Period. 

 
 With respect to each Distribution Date and the Class SB Certificates,
interest accrued during the preceding Interest Accrual Period at the related Pass-Through Rate on the Notional Amount as specified in the definition of Pass-Through Rate, immediately prior to such Distribution Date, reduced by any interest
shortfalls with respect to the Mortgage Loans, including Prepayment Interest Shortfalls to the extent not covered by Compensating Interest pursuant to Section 3.16 or by Excess Cash Flow pursuant to Section 4.02(c)(v) and (vi). Accrued
Certificate Interest on the Class SB Certificates shall accrue on the basis of a 360-day year and the actual number of days in the related Interest Accrual Period. 
  

 3 

 Adjusted Mortgage Rate: With respect to any Mortgage Loan and any date of determination, the
Mortgage Rate borne by the related Mortgage Note, less the rate at which the related Subservicing Fee accrues. 
  
 Adjustment Date: With respect to each adjustable-rate Mortgage Loan, each date set forth in the related Mortgage Note on which an adjustment to the
interest rate on such Mortgage Loan becomes effective. 
  
 Advance: With respect to any Mortgage Loan, any advance made by the Master Servicer, pursuant to Section 4.04. 
  
 Affiliate: With respect to any Person, any other Person controlling, controlled by or under common control with such first Person. For purposes of
this definition, “control” means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling”
and “controlled” have meanings correlative to the foregoing. 
  
 Agreement: This Pooling and Servicing Agreement and all amendments hereof and supplements hereto. 
  
 Amount Held for Future Distribution: With respect to any Distribution Date, the total of the amounts held in the Custodial Account at the close of
business on the preceding Determination Date on account of (i) Liquidation Proceeds, Subsequent Recoveries, Insurance Proceeds, REO Proceeds, Principal Prepayments, Mortgage Loan purchases made pursuant to Section 2.02, 2.03, 2.04 or 4.07
and Mortgage Loan substitutions made pursuant to Section 2.03 or 2.04 received or made in the month of such Distribution Date (other than such Liquidation Proceeds, Subsequent Recoveries, Insurance Proceeds, REO Proceeds and purchases of
Mortgage Loans that the Master Servicer has deemed to have been received in the preceding month in accordance with Section 3.07(b)) and (ii) payments which represent early receipt of scheduled payments of principal and interest due on a
date or dates subsequent to the Due Date in the related Due Period. 
  
 Appraised Value: With respect to any Mortgaged Property, the lesser of (i) the appraised value of such Mortgaged Property based upon the appraisal made at the time of the origination of the related Mortgage Loan, and
(ii) the sales price of the Mortgaged Property at such time of origination, except in the case of a Mortgaged Property securing a refinanced or modified Mortgage Loan as to which it is either the appraised value based upon the appraisal made at
the time of origination of the loan which was refinanced or modified or the appraised value determined in an appraisal at the time of refinancing or modification, as the case may be. 
  
 Assignment: 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 of record the sale of the Mortgage Loan to the Trustee for the benefit of Certificateholders, which assignment, notice of transfer or
equivalent instrument may be in the form of one or more blanket assignments covering Mortgages secured by Mortgaged Properties located in the same county, if permitted by law and accompanied by an Opinion of Counsel to that effect. 
  

 4 

 Assignment Agreement: The Assignment and Assumption Agreement, dated the Closing Date, between the
Seller and the Depositor relating to the transfer and assignment of the Mortgage Loans, attached hereto as Exhibit R. 
  
 Available Distribution Amount: With respect to any Distribution Date, an amount equal to (a) the sum of (i) the amount relating to the
Mortgage Loans on deposit in the Custodial Account as of the close of business on the immediately preceding Determination Date, including any Subsequent Recoveries, and amounts deposited in the Custodial Account in connection with the substitution
of Qualified Substitute Mortgage Loans, (ii) the amount of any Advance made on the immediately preceding Certificate Account Deposit Date with respect to the Mortgage Loans, (iii) any amount deposited in the Certificate Account on the
related Certificate Account Deposit Date pursuant to the second paragraph of Section 3.12(a) in respect of the Mortgage Loans, (iv) any amount that the Master Servicer is not permitted to withdraw from the Custodial Account pursuant to
Section 3.16(e) in respect of the Mortgage Loans, and (v) any amount deposited in the Certificate Account pursuant to Section 4.07 or 9.01 in respect of the Mortgage Loans, reduced by (b) the sum as of the close of business on
the immediately preceding Determination Date of (x) the Amount Held for Future Distribution with respect to the Mortgage Loans, and (y) amounts permitted to be withdrawn by the Master Servicer from the Custodial Account in respect of the
Mortgage Loans pursuant to clauses (ii)-(x), inclusive, of Section 3.10(a). 
  
 Balloon Loan: Each of the Mortgage Loans having an original term to maturity that is shorter than the related amortization term. 
  
 Balloon Payment: With respect to any Balloon Loan, the related Monthly Payment payable on the stated maturity date of
such Balloon Loan. 
  
 Bankruptcy Code: The Bankruptcy Code
of 1978, as amended. 
  
 Basis Risk Shortfalls: With
respect to any Distribution Date and any Class of Class A Certificates, Class M Certificates or Class B Certificates, the sum of (a) with respect to any Distribution Date on which the Net WAC Cap Rate is used to determine the Pass-Through
Rate of such Class, an amount equal to the excess of (x) Accrued Certificate Interest for such Class calculated at a per annum rate equal to the lesser of (i) LIBOR plus the related Margin for such Distribution Date and (ii) the
Weighted Average Maximum Net Mortgage Rate, over (y) Accrued Certificate Interest for such Class calculated using the Net WAC Cap Rate plus, an amount equal to any reduction in the Accrued Certificate Interest of such Class due to the failure
of the Hedge Agreement Provider to make any required Hedge Payment with respect to such Distribution Date, (b) any shortfalls for such Class calculated pursuant to clause (a) above remaining unpaid from prior Distribution Dates, and
(c) one month’s interest on the amount in clause (b) (based on the number of days in the preceding Interest Accrual Period) at a per annum rate equal to LIBOR plus the related Margin for such Distribution Date. 
  
 Book-Entry Certificate: Any Certificate registered in the name of the
Depository or its nominee. 
  

 5 

 Business Day: Any day other than (i) a Saturday or a Sunday or (ii) a day on which
banking institutions in the State of New York (and such other state or states in which the Custodial Account or the Certificate Account are at the time located) are required or authorized by law or executive order to be closed. 
  
 Capitalization Reimbursement Amount: With respect to any Distribution
Date, the amount of Advances or Servicing Advances that were added to the Stated Principal Balance of the Mortgage Loans during the prior calendar month and reimbursed to the Master Servicer or Subservicer on or prior to such Distribution Date
pursuant to Section 3.10(a)(vii). 
  
 Cash
Liquidation: With respect to any defaulted Mortgage Loan other than a Mortgage Loan as to which an REO Acquisition occurred, a determination by the Master Servicer that it has received all Insurance Proceeds, Liquidation Proceeds and other
payments or cash recoveries which the Master Servicer reasonably and in good faith expects to be finally recoverable with respect to such Mortgage Loan. 
  
 Certificate: Any Class A Certificate, Class M Certificate, Class B Certificate, Class SB Certificate or Class R Certificate. 
  
 Certificate Account: The account or accounts created and maintained
pursuant to Section 4.01, which shall be entitled “[TRUSTEE], as trustee, in trust for the registered holders of SG Mortgage Securities, LLC Mortgage Asset-Backed [and Manufactured Housing Contract] Pass-Through Certificates, Series
[            ]” and which account shall be held for the benefit of the Certificateholders and which must be an Eligible Account. 
  
 Certificate Account Deposit Date: With respect to any Distribution
Date, the Business Day prior thereto. 
  
 Certificateholder or
Holder: The Person in whose name a Certificate is registered in the Certificate Register, except that neither a Disqualified Organization nor a Non-United States Person shall be a holder of a Class R Certificate for any purpose hereof. Solely
for the purpose of giving any consent or direction pursuant to this Agreement, any Certificate, other than a Class R Certificate registered in the name of the Depositor, the Master Servicer or any Subservicer or any Affiliate thereof shall be deemed
not to be outstanding and the Percentage Interest or Voting Rights evidenced thereby shall not be taken into account in determining whether the requisite amount of Percentage Interests or Voting Rights necessary to effect any such consent or
direction has been obtained. All references herein to “Holders” or “Certificateholders” shall reflect the rights of Certificate Owners as they may indirectly exercise such rights through the Depository and participating members
thereof, except as otherwise specified herein; provided, however, that the Trustee shall be required to recognize as a “Holder” or “Certificateholder” only the Person in whose name a Certificate is registered in the
Certificate Register. Unless otherwise indicated in this Agreement, the Custodial Agreement or the Assignment Agreement, whenever reference is made to the actions taken by the Trustee on behalf of the Certificateholders. 
  
 Certificate Owner: With respect to a Book-Entry Certificate, the
Person who is the beneficial owner of such Certificate, as reflected on the books of an indirect participating brokerage firm for which a Depository Participant acts as agent, if any, and otherwise on the books of a Depository Participant, if any,
and otherwise on the books of the Depository. 
  

 6 

 Certificate Principal Balance: With respect to any Class A Certificate, Class M Certificate
or Class B Certificate, on any date of determination, an amount equal to (i) the Initial Certificate Principal Balance of such Certificate as specified on the face thereof, minus (ii) the sum of (x) the aggregate of all amounts
previously distributed with respect to such Certificate (or any predecessor Certificate) and applied to reduce the Certificate Principal Balance thereof pursuant to Section 4.02(c) and (y) the aggregate of all reductions in Certificate
Principal Balance deemed to have occurred in connection with Realized Losses which were previously allocated to such Certificate (or any predecessor Certificate) pursuant to this Agreement; provided, that with respect to any Distribution
Date, the Certificate Principal Balance of each class of Class A Certificates, Class M Certificates and Class B Certificates to which a Realized Loss was previously allocated and remains unreimbursed will be increased, sequentially, to the
Class A Certificates, on a pro rata basis based on the amount of Realized Loss previously allocated thereto and remaining unreimbursed, then to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class
M-9, Class M-10, Class B-1, Class B-2, Class B-3 and Class B-4 Certificates, in that order, in each case to the extent of Realized Losses previously allocated thereto and remaining unreimbursed, but only to the extent of Subsequent Recoveries
received during the preceding calendar month. 
  
 With respect to
any Class SB Certificate, on any date of determination, an amount equal to the Percentage Interest evidenced by such Certificate, multiplied by an amount equal to (i) the excess, if any, of (A) the then aggregate Stated Principal Balance
of the Mortgage Loans over (B) the then aggregate Certificate Principal Balance of the Class A Certificates, Class M Certificates and Class B Certificates then outstanding, which represents the sum of (i) the Initial Principal Balance
of the REMIC II Regular Interest SB-PO, as reduced by Realized Losses allocated thereto and payments deemed made thereon, and (ii) accrued and unpaid interest on the REMIC II Regular Interest SB-IO, as reduced by Realized Losses allocated
thereto. 
  
 The Class R Certificates will not have a Certificate
Principal Balance. 
  
 Certificate Register: The register
maintained and the registrar appointed pursuant to Section 5.02. 
  
 Class: Collectively, all of the Certificates or uncertificated interests bearing the same designation. 
  
 Class A-[1] Certificate: Any one of the Class A-[1] Certificates executed by the Trustee and authenticated by the Certificate Registrar
substantially in the form annexed hereto as Exhibit A and evidencing (i) an interest designated as a “regular interest” in REMIC II for purposes of the REMIC Provisions and (ii) the right to receive payments under the
Hedge Agreement. 
  
 Class A-[1] Margin: Initially,
[            ]% per annum, and on any Distribution Date on or after the first Distribution Date after the second possible Optional Termination Date,
[            ]% per annum. 
  

 7 

 Class A-[2] Certificate: Any one of the Class A-[2] Certificates executed by the Trustee
and authenticated by the Certificate Registrar substantially in the form annexed hereto as Exhibit A and evidencing (i) an interest designated as a “regular interest” in REMIC II for purposes of the REMIC Provisions and
(ii) the right to receive payments under the Hedge Agreement. 
  
 Class A-[2] Margin: Initially, [            ]% per annum, and on any Distribution Date on or after the first Distribution Date after the second possible Optional
Termination Date, [            ]% per annum. 
  
 Class A-[3] Certificate: Any one of the Class A-[3] Certificates executed by the Trustee and authenticated by the Certificate Registrar
substantially in the form annexed hereto as Exhibit A and evidencing (i) an interest designated as a “regular interest” in REMIC II for purposes of the REMIC Provisions and (ii) the right to receive payments under the
Hedge Agreement. 
  
 Class A-[3] Margin: Initially,
[            ]% per annum, and on any Distribution Date on or after the first Distribution Date after the second possible Optional Termination Date,
[            ]% per annum. 
  
 Class A-[4] Certificate: Any one of the Class A-[4] Certificates executed by the Trustee and authenticated by the Certificate Registrar substantially in the form annexed hereto as Exhibit A and
evidencing (i) an interest designated as a “regular interest” in REMIC II for purposes of the REMIC Provisions and (ii) the right to receive payments under the Hedge Agreement. 
  
 Class A-[4] Margin: Initially,
[            ]% per annum, and on any Distribution Date on or after the first Distribution Date after the second possible Optional Termination Date,
[            ]% per annum. 
  
 Class A Certificates: Collectively, the Class A-[1] Certificates, Class A-[2] Certificates, Class A-[3] Certificates and Class A-[4] Certificates. 
  
 Class A Interest Remittance Amount: With respect to any
Distribution Date, the portion of the Available Distribution Amount for that Distribution Date attributable to interest received or advanced with respect to the Mortgage Loans plus, with respect to payments on the Class A Certificates pursuant
to Section 4.02(c)(iii)(A) only, the amount necessary to make such payments paid from amounts received on the Hedge Agreement for such Distribution Date. 
  

Class A Principal Distribution Amount: With respect to any Distribution Date (a) prior to the Stepdown Date or on or after the
Stepdown Date if a Trigger Event is in effect for that Distribution Date, the Principal Distribution Amount for that Distribution Date or (b) on or after the Stepdown Date if a Trigger Event is not in effect for that Distribution Date, the
lesser of: 
  
 (i) the Principal Distribution
Amount for that Distribution Date; and 
  
 (ii)
the excess, if any, of (A) the aggregate Certificate Principal Balance of the Class A Certificates immediately prior to that Distribution Date over (B) the lesser of 
  

 8 

 (x) the product of (1) the applicable Subordination Percentage and (2) the aggregate
Stated Principal Balance of the Mortgage Loans after giving effect to distributions to be made on that Distribution Date and (y) the excess, if any, of the aggregate Stated Principal Balance of the Mortgage Loans after giving effect to
distributions to be made on that Distribution Date, over the Overcollateralization Floor. 
  
 Class B-1 Certificate: Any one of the Class B-1 Certificates executed by the Trustee and authenticated by the Certificate Registrar substantially in the form annexed hereto as Exhibit B-2 and
evidencing (i) an interest designated as a “regular interest” in REMIC II for purposes of the REMIC Provisions and (ii) the right to receive payments under the Hedge Agreement. 
  
 Class B-1 Margin: Initially,
[            ]% per annum, and on any Distribution Date on or after the first Distribution Date after the second possible Optional Termination Date,
[            ]% per annum. 
  
 Class B-1 Principal Distribution Amount: With respect to any Distribution Date (a) prior to the Stepdown Date or on or after the Stepdown Date if a Trigger Event is in effect for that Distribution
Date, the remaining Principal Distribution Amount for that Distribution Date after distribution of the Class A Principal Distribution Amount and the Class M Principal Distribution Amount or (b) on or after the Stepdown Date if a Trigger
Event is not in effect for that Distribution Date, the lesser of: 
  
 (i) the remaining Principal Distribution Amount for that Distribution Date after distribution of the Class A Principal Distribution Amount and the Class M Principal Distribution Amount; and 
  
 (ii) the excess, if any, of (A) the sum of (1) the
aggregate Certificate Principal Balance of the Class A Certificates and Class M Certificates (after taking into account the payment of the Class A Principal Distribution Amount and the Class M Principal Distribution Amount for that
Distribution Date) and (2) the Certificate Principal Balance of the Class B-1 Certificates immediately prior to that Distribution Date over (B) the lesser of (x) the product of (1) the applicable Subordination Percentage and
(2) the aggregate Stated Principal Balance of the Mortgage Loans after giving effect to distributions to be made on that Distribution Date and (y) the excess, if any, of the aggregate Stated Principal Balance of the Mortgage Loans after
giving effect to distributions to be made on that Distribution Date, over the Overcollateralization Floor. 
  
 Class B-2 Certificate: Any one of the Class B-2 Certificates executed by the Trustee and authenticated by the Certificate Registrar
substantially in the form annexed hereto as Exhibit B-2 and evidencing (i) an interest designated as a “regular interest” in REMIC II for purposes of the REMIC Provisions and (ii) the right to receive payments under the
Hedge Agreement. 
  
 Class B-2 Margin: Initially,
[            ]% per annum, and on any Distribution Date on or after the first Distribution Date after the second possible Optional Termination Date,
[            ]% per annum. 
  
 Class B-2 Principal Distribution Amount: With respect to any Distribution Date (a) prior to the Stepdown Date or on or after the Stepdown Date if a Trigger Event is in effect for that 
  

 9 

 Distribution Date, the remaining Principal Distribution Amount for that Distribution Date after distribution of the
Class A Principal Distribution Amount, the Class M Principal Distribution Amount and the Class B-1 Principal Distribution Amount or (b) on or after the Stepdown Date if a Trigger Event is not in effect for that Distribution Date, the
lesser of: 
  
 (i) the remaining Principal
Distribution Amount for that Distribution Date after distribution of the Class A Principal Distribution Amount, the Class M Principal Distribution Amount and the Class B-1 Principal Distribution Amount; and 
  
 (ii) the excess, if any, of (A) the sum of (1) the
aggregate Certificate Principal Balance of the Class A Certificates, Class M Certificates and Class B-1 Certificates (after taking into account the payment of the Class A Principal Distribution Amount, the Class M Principal Distribution
Amount and the Class B-1 Principal Distribution Amount for that Distribution Date) and (2) the Certificate Principal Balance of the Class B-2 Certificates immediately prior to that Distribution Date over (B) the lesser of (x) the
product of (1) the applicable Subordination Percentage and (2) the aggregate Stated Principal Balance of the Mortgage Loans after giving effect to distributions to be made on that Distribution Date and (y) the excess, if any, of the
aggregate Stated Principal Balance of the Mortgage Loans after giving effect to distributions to be made on that Distribution Date, over the Overcollateralization Floor. 
  
 Class B-3 Certificate: Any one of the Class B-3 Certificates executed by the Trustee and authenticated by
the Certificate Registrar substantially in the form annexed hereto as Exhibit B-2 and evidencing (i) an interest designated as a “regular interest” in REMIC II for purposes of the REMIC Provisions and (ii) the right to
receive payments under the Hedge Agreement. 
  
 Class B-3
Margin: Initially, [            ]% per annum, and on any Distribution Date on or after the first Distribution Date after the second possible Optional Termination Date,
[            ]% per annum. 
  
 Class B-3 Principal Distribution Amount: With respect to any Distribution Date (a) prior to the Stepdown Date or on or after the Stepdown Date if a Trigger Event is in effect for that Distribution
Date, the remaining Principal Distribution Amount for that Distribution Date after distribution of the Class A Principal Distribution Amount, the Class M Principal Distribution Amount, the Class B-1 Principal Distribution Amount and the Class
B-2 Principal Distribution Amount or (b) on or after the Stepdown Date if a Trigger Event is not in effect for that Distribution Date, the lesser of: 
  
 (i) the remaining Principal Distribution Amount for that Distribution Date after distribution of the Class A Principal Distribution
Amount, the Class M Principal Distribution Amount, the Class B-1 Principal Distribution Amount and the Class B-2 Principal Distribution Amount; and 
  
 (ii) the excess, if any, of (A) the sum of (1) the aggregate Certificate Principal Balance of the Class A Certificates,
Class M Certificates, Class B-1 Certificates and Class B-2 Certificates (after taking into account the payment of the Class A Principal Distribution Amount, the Class M Principal Distribution Amount, the Class B-1 Principal 
  

 10 

 Distribution Amount and the Class B-2 Principal Distribution Amount for that Distribution Date) and
(2) the Certificate Principal Balance of the Class B-3 Certificates immediately prior to that Distribution Date over (B) the lesser of (x) the product of (1) the applicable Subordination Percentage and (2) the aggregate
Stated Principal Balance of the Mortgage Loans after giving effect to distributions to be made on that Distribution Date and (y) the excess, if any, of the aggregate Stated Principal Balance of the Mortgage Loans after giving effect to
distributions to be made on that Distribution Date, over the Overcollateralization Floor. 
  
 Class B-4 Certificate: Any one of the Class B-4 Certificates executed by the Trustee and authenticated by the Certificate Registrar substantially in the form annexed hereto as Exhibit B-2 and
evidencing (i) an interest designated as a “regular interest” in REMIC II for purposes of the REMIC Provisions and (ii) the right to receive payments under the Hedge Agreement. 
  
 Class B-4 Margin: Initially,
[            ]% per annum, and on any Distribution Date on or after the first Distribution Date after the second possible Optional Termination Date,
[            ] % per annum. 
  
 Class B-4 Principal Distribution Amount: With respect to any Distribution Date (a) prior to the Stepdown Date or on or after the Stepdown Date if a Trigger Event is in effect for that Distribution
Date, the remaining Principal Distribution Amount for that Distribution Date after distribution of the Class A Principal Distribution Amount, the Class M Principal Distribution Amount, the Class B-1 Principal Distribution Amount, the Class B-2
Principal Distribution Amount and the Class B-3 Principal Distribution Amount or (b) on or after the Stepdown Date if a Trigger Event is not in effect for that Distribution Date, the lesser of: 
  
 (i) the remaining Principal Distribution Amount for that
Distribution Date after distribution of the Class A Principal Distribution Amount, the Class M Principal Distribution Amount, the Class B-1 Principal Distribution Amount, the Class B-2 Principal Distribution Amount and the Class B-3 Principal
Distribution Amount; and 
  
 (ii) the excess, if
any, of (A) the sum of (1) the aggregate Certificate Principal Balance of the Class A Certificates, Class M Certificates, Class B-1 Certificates, Class B-2 Certificates and Class B-3 Certificates (after taking into account the
payment of the Class A Principal Distribution Amount, the Class M Principal Distribution Amount, the Class B-1 Principal Distribution Amount, the Class B-2 Principal Distribution Amount and the Class B-3 Principal Distribution Amount for that
Distribution Date) and (2) the Certificate Principal Balance of the Class B-4 Certificates immediately prior to that Distribution Date over (B) the lesser of (x) the product of (1) the applicable Subordination Percentage and
(2) the aggregate Stated Principal Balance of the Mortgage Loans after giving effect to distributions to be made on that Distribution Date and (y) the excess, if any, of the aggregate Stated Principal Balance of the Mortgage Loans after
giving effect to distributions to be made on that Distribution Date, over the Overcollateralization Floor. 
  
 Class B Certificates: Collectively, the Class B-1 Certificates, Class B-2 Certificates, Class B-3 Certificates and Class B-4
Certificates. 
  

 11 

 Class M-1 Certificate: Any one of the Class M-1 Certificates executed by the Trustee and
authenticated by the Certificate Registrar substantially in the form annexed hereto as Exhibit B-1 and evidencing (i) an interest designated as a “regular interest” in REMIC II for purposes of the REMIC Provisions and
(ii) the right to receive payments under the Hedge Agreement. 
  
 Class M-1 Margin: Initially, [            ]% per annum, and on any Distribution Date on or after the first Distribution Date after the second possible Optional
Termination Date, [            ]% per annum. 
  
 Class M-1 Principal Distribution Amount: With respect to any Distribution Date (a) prior to the Stepdown Date or on or after the Stepdown
Date if a Trigger Event is in effect for that Distribution Date, the remaining Principal Distribution Amount for that Distribution Date after distribution of the Class A Principal Distribution Amount or (b) on or after the Stepdown Date if
a Trigger Event is not in effect for that Distribution Date, the lesser of: 
  
 (i) the remaining Principal Distribution Amount for that Distribution Date after distribution of the Class A Principal Distribution Amount; and 
  
 (ii) the excess, if any, of (A) the sum of (1) the aggregate Certificate Principal Balance of the
Class A Certificates (after taking into account the payment of the Class A Principal Distribution Amount for that Distribution Date) and (2) the Certificate Principal Balance of the Class M-1 Certificates immediately prior to
that Distribution Date over (B) the lesser of (x) the product of (1) the applicable Subordination Percentage and (2) the aggregate Stated Principal Balance of the Mortgage Loans after giving effect to distributions to be made on
that Distribution Date and (y) the excess, if any, of the aggregate Stated Principal Balance of the Mortgage Loans after giving effect to distributions to be made on that Distribution Date, over the Overcollateralization Floor. 
  
 Class M-2 Certificate: Any one of the Class M-2 Certificates
executed by the Trustee and authenticated by the Certificate Registrar substantially in the form annexed hereto as Exhibit B-1 and evidencing (i) an interest designated as a “regular interest” in REMIC II for purposes of the
REMIC Provisions and (ii) the right to receive payments under the Hedge Agreement. 
  
 Class M-2 Margin: Initially, [            ]% per annum, and on any Distribution Date on or after the first Distribution Date after the
second possible Optional Termination Date, [            ]% per annum. 
  
 Class M-2 Principal Distribution Amount: With respect to any Distribution Date (a) prior to the Stepdown Date or on or after the Stepdown
Date if a Trigger Event is in effect for that Distribution Date, the remaining Principal Distribution Amount for that Distribution Date after distribution of the Class A Principal Distribution Amount and the Class M-1 Principal
Distribution Amount or (b) on or after the Stepdown Date if a Trigger Event is not in effect for that Distribution Date, the lesser of: 
  
 (iii) the remaining Principal Distribution Amount for that Distribution Date after distribution of the Class A Principal Distribution
Amount and the Class M-1 Principal Distribution Amount; and 
  

 12 

 (iv) the excess, if any, of (A) the sum of (1) the aggregate Certificate
Principal Balance of the Class A Certificates and Class M-1 Certificates (after taking into account the payment of the Class A Principal Distribution Amount and the Class M-1 Principal Distribution Amount for that Distribution
Date) and (2) the Certificate Principal Balance of the Class M-2 Certificates immediately prior to that Distribution Date over (B) the lesser of (x) the product of (1) the applicable Subordination Percentage and (2) the
aggregate Stated Principal Balance of the Mortgage Loans after giving effect to distributions to be made on that Distribution Date and (y) the excess, if any, of the aggregate Stated Principal Balance of the Mortgage Loans after giving effect
to distributions to be made on that Distribution Date, over the Overcollateralization Floor. 
  
 Class M-3 Certificate: Any one of the Class M-3 Certificates executed by the Trustee and authenticated by the Certificate Registrar substantially in the form annexed hereto as Exhibit B-1 and
evidencing (i) an interest designated as a “regular interest” in REMIC II for purposes of the REMIC Provisions and (ii) the right to receive payments under the Hedge Agreement. 
  
 Class M-3 Margin: Initially,
[            ]% per annum, and on any Distribution Date on or after the first Distribution Date after the second possible Optional Termination Date,
[            ]% per annum. 
  
 Class M-3 Principal Distribution Amount: With respect to any Distribution Date (a) prior to the Stepdown Date or on or after the Stepdown Date if a Trigger Event is in effect for that Distribution
Date, the remaining Principal Distribution Amount for that Distribution Date after distribution of the Class A Principal Distribution Amount, the Class M-1 Principal Distribution Amount and the Class M-2 Principal Distribution Amount
or (b) on or after the Stepdown Date if a Trigger Event is not in effect for that Distribution Date, the lesser of: 
  
 (v) the remaining Principal Distribution Amount for that Distribution Date after distribution of the Class A Principal Distribution
Amount, the Class M-1 Principal Distribution Amount and the Class M-2 Principal Distribution Amount; and 
  
 (vi) the excess, if any, of (A) the sum of (1) the aggregate Certificate Principal Balance of the Class A Certificates,
Class M-1 Certificates and Class M-2 Certificates (after taking into account the payment of the Class A Principal Distribution Amount, the Class M-1 Principal Distribution Amount and the Class M-2 Principal Distribution
Amount for that Distribution Date) and (2) the Certificate Principal Balance of the Class M-3 Certificates immediately prior to that Distribution Date over (B) the lesser of (x) the product of (1) the applicable
Subordination Percentage and (2) the aggregate Stated Principal Balance of the Mortgage Loans after giving effect to distributions to be made on that Distribution Date and (y) the excess, if any, of the aggregate Stated Principal Balance
of the Mortgage Loans after giving effect to distributions to be made on that Distribution Date, over the Overcollateralization Floor. 
  
 Class M-4 Certificate: Any one of the Class M-4 Certificates executed by the Trustee and authenticated by the Certificate Registrar
substantially in the form annexed hereto as Exhibit B-1 and evidencing (i) an interest designated as a “regular interest” in REMIC II for purposes of the REMIC Provisions and (ii) the right to receive payments under the
Hedge Agreement. 
  

 13 

 Class M-4 Margin: Initially,
[            ]% per annum, and on any Distribution Date on or after the first Distribution Date after the second possible Optional Termination Date,
[            ]% per annum. 
  
 Class M-4 Principal Distribution Amount: With respect to any Distribution Date (a) prior to the Stepdown Date or on or after the Stepdown Date if a Trigger Event is in effect for that Distribution
Date, the remaining Principal Distribution Amount for that Distribution Date after distribution of the Class A Principal Distribution Amount, the Class M-1 Principal Distribution Amount, the Class M-2 Principal Distribution Amount and
the Class M-3 Principal Distribution Amount or (b) on or after the Stepdown Date if a Trigger Event is not in effect for that Distribution Date, the lesser of: 
  
 (vii) the remaining Principal Distribution Amount for that Distribution Date after distribution of the
Class A Principal Distribution Amount, the Class M-1 Principal Distribution Amount, the Class M-2 Principal Distribution Amount and the Class M-3 Principal Distribution Amount; and 
  
 (viii) the excess, if any, of (A) the sum of
(1) the aggregate Certificate Principal Balance of the Class A Certificates, Class M-1 Certificates, Class M-2 Certificates and Class M-3 Certificates (after taking into account the payment of the Class A Principal
Distribution Amount, the Class M-1 Principal Distribution Amount, the Class M-2 Principal Distribution Amount and the Class M-3 Principal Distribution Amount for that Distribution Date) and (2) the Certificate Principal Balance of the
Class M-4 Certificates immediately prior to that Distribution Date over (B) the lesser of (x) the product of (1) the applicable Subordination Percentage and (2) the aggregate Stated Principal Balance of the Mortgage Loans
after giving effect to distributions to be made on that Distribution Date and (y) the excess, if any, of the aggregate Stated Principal Balance of the Mortgage Loans after giving effect to distributions to be made on that Distribution Date,
over the Overcollateralization Floor. 
  
 Class M-5
Certificate: Any one of the Class M-5 Certificates executed by the Trustee and authenticated by the Certificate Registrar substantially in the form annexed hereto as Exhibit B-1 and evidencing (i) an interest designated as a
“regular interest” in REMIC II for purposes of the REMIC Provisions and (ii) the right to receive payments under the Hedge Agreement. 
  
 Class M-5 Margin: Initially, [            ]% per annum, and on any
Distribution Date on or after the first Distribution Date after the second possible Optional Termination Date, [            ]% per annum. 
  
 Class M-5 Principal Distribution Amount: With respect to any
Distribution Date (a) prior to the Stepdown Date or on or after the Stepdown Date if a Trigger Event is in effect for that Distribution Date, the remaining Principal Distribution Amount for that Distribution Date after distribution of the
Class A Principal Distribution Amount, the Class M-1 Principal Distribution Amount, the Class M-2 Principal Distribution Amount, the Class M-3 Principal Distribution Amount and the Class M-4 Principal Distribution Amount or
(b) on or after the Stepdown Date if a Trigger Event is not in effect for that Distribution Date, the lesser of: 
  
 (ix) the remaining Principal Distribution Amount for that Distribution Date after distribution of the Class A Principal Distribution
Amount, the Class M-1 Principal Distribution Amount, the Class M-2 Principal Distribution Amount, the Class M-3 Principal Distribution Amount and the Class M-4 Principal Distribution Amount; and 
  

 14 

 (x) the excess, if any, of (A) the sum of (1) the aggregate Certificate
Principal Balance of the Class A Certificates, Class M-1 Certificates, Class M-2 Certificates, Class M-3 Certificates and Class M-4 Certificates (after taking into account the payment of the Class A Principal Distribution Amount,
the Class M-1 Principal Distribution Amount, the Class M-2 Principal Distribution Amount, the Class M-3 Principal Distribution Amount and the Class M-4 Principal Distribution Amount for that Distribution Date) and (2) the Certificate
Principal Balance of the Class M-5 Certificates immediately prior to that Distribution Date over (B) the lesser of (x) the product of (1) the applicable Subordination Percentage and (2) the aggregate Stated Principal Balance
of the Mortgage Loans after giving effect to distributions to be made on that Distribution Date and (y) the excess, if any, of the aggregate Stated Principal Balance of the Mortgage Loans after giving effect to distributions to be made on that
Distribution Date, over the Overcollateralization Floor. 
  
 Class M-6 Certificate: Any one of the Class M-6 Certificates executed by the Trustee and authenticated by the Certificate Registrar substantially in the form annexed hereto as Exhibit B-1 and evidencing (i) an interest
designated as a “regular interest” in REMIC II for purposes of the REMIC Provisions and (ii) the right to receive payments under the Hedge Agreement. 
  
 Class M-6 Margin: Initially, [            ]%
per annum, and on any Distribution Date on or after the first Distribution Date after the second possible Optional Termination Date, [            ]% per annum. 
  
 Class M-6 Principal Distribution Amount: With respect to any
Distribution Date (a) prior to the Stepdown Date or on or after the Stepdown Date if a Trigger Event is in effect for that Distribution Date, the remaining Principal Distribution Amount for that Distribution Date after distribution of the
Class A Principal Distribution Amount, the Class M-1 Principal Distribution Amount, the Class M-2 Principal Distribution Amount, the Class M-3 Principal Distribution Amount, the Class M-4 Principal Distribution Amount and the Class
M-5 Principal Distribution Amount or (b) on or after the Stepdown Date if a Trigger Event is not in effect for that Distribution Date, the lesser of: 
  
 (xi) the remaining Principal Distribution Amount for that Distribution Date after distribution of the Class A Principal Distribution
Amount, the Class M-1 Principal Distribution Amount, the Class M-2 Principal Distribution Amount, the Class M-3 Principal Distribution Amount, the Class M-4 Principal Distribution Amount and the Class M-5 Principal Distribution Amount; and

  
 (xii) the excess, if any, of (A) the sum
of (1) the aggregate Certificate Principal Balance of the Class A Certificates, Class M-1 Certificates, Class M-2 Certificates, Class M-3 Certificates, Class M-4 Certificates and Class M-5 Certificates (after taking into account
the payment of the Class A Principal Distribution Amount, the Class M-1 
  

 15 

 Principal Distribution Amount, the Class M-2 Principal Distribution Amount, the Class M-3 Principal
Distribution Amount, the Class M-4 Principal Distribution Amount and the Class M-5 Principal Distribution Amount for that Distribution Date) and (2) the Certificate Principal Balance of the Class M-6 Certificates immediately prior to that
Distribution Date over (B) the lesser of (x) the product of (1) the applicable Subordination Percentage and (2) the aggregate Stated Principal Balance of the Mortgage Loans after giving effect to distributions to be made on that
Distribution Date and (y) the excess, if any, of the aggregate Stated Principal Balance of the Mortgage Loans after giving effect to distributions to be made on that Distribution Date, over the Overcollateralization Floor. 
  
 Class M-7 Certificate: Any one of the Class M-7 Certificates
executed by the Trustee and authenticated by the Certificate Registrar substantially in the form annexed hereto as Exhibit B-1 and evidencing (i) an interest designated as a “regular interest” in REMIC II for purposes of the
REMIC Provisions and (ii) the right to receive payments under the Hedge Agreement. 
  
 Class M-7 Margin: Initially, [            ]% per annum, and on any Distribution Date on or after the first Distribution Date after the
second possible Optional Termination Date, [            ]% per annum. 
  
 Class M-7 Principal Distribution Amount: With respect to any Distribution Date (a) prior to the Stepdown Date or on or after the Stepdown
Date if a Trigger Event is in effect for that Distribution Date, the remaining Principal Distribution Amount for that Distribution Date after distribution of the Class A Principal Distribution Amount, the Class M-1 Principal Distribution
Amount, the Class M-2 Principal Distribution Amount, the Class M-3 Principal Distribution Amount, the Class M-4 Principal Distribution Amount, the Class M-5 Principal Distribution Amount and the Class M-6 Principal Distribution Amount or
(b) on or after the Stepdown Date if a Trigger Event is not in effect for that Distribution Date, the lesser of: 
  
 (xiii) the remaining Principal Distribution Amount for that Distribution Date after distribution of the Class A Principal
Distribution Amount, the Class M-1 Principal Distribution Amount, the Class M-2 Principal Distribution Amount, the Class M-3 Principal Distribution Amount, the Class M-4 Principal Distribution Amount, the Class M-5 Principal Distribution
Amount and the Class M-6 Principal Distribution Amount; and 
  
 (xiv) the excess, if any, of (A) the sum of (1) the aggregate Certificate Principal Balance of the Class A Certificates, Class M-1 Certificates, Class M-2 Certificates, Class M-3 Certificates,
Class M-4 Certificates, Class M-5 Certificates and Class M-6 Certificates (after taking into account the payment of the Class A Principal Distribution Amount, the Class M-1 Principal Distribution Amount, the Class M-2 Principal
Distribution Amount, the Class M-3 Principal Distribution Amount, the Class M-4 Principal Distribution Amount, the Class M-5 Principal Distribution Amount and the Class M-6 Principal Distribution Amount for that Distribution Date) and (2) the
Certificate Principal Balance of the Class M-7 Certificates immediately prior to that Distribution Date over (B) the lesser of (x) the product of (1) the applicable Subordination Percentage and (2) the aggregate Stated
Principal Balance of the Mortgage 
  

 16 

 Loans after giving effect to distributions to be made on that Distribution Date and (y) the excess,
if any, of the aggregate Stated Principal Balance of the Mortgage Loans after giving effect to distributions to be made on that Distribution Date, over the Overcollateralization Floor. 
  
 Class M-8 Certificate: Any one of the Class M-8 Certificates executed by the Trustee and authenticated by
the Certificate Registrar substantially in the form annexed hereto as Exhibit B-1 and evidencing (i) an interest designated as a “regular interest” in REMIC II for purposes of the REMIC Provisions and (ii) the right to
receive payments under the Hedge Agreement. 
  
 Class M-8
Margin: Initially, [            ]% per annum, and on any Distribution Date on or after the first Distribution Date after the second possible Optional Termination Date,
[            ]% per annum. 
  
 Class M-8 Principal Distribution Amount: With respect to any Distribution Date (a) prior to the Stepdown Date or on or after the Stepdown Date if a Trigger Event is in effect for that Distribution
Date, the remaining Principal Distribution Amount for that Distribution Date after distribution of the Class A Principal Distribution Amount, the Class M-1 Principal Distribution Amount, the Class M-2 Principal Distribution Amount,
the Class M-3 Principal Distribution Amount, the Class M-4 Principal Distribution Amount, the Class M-5 Principal Distribution Amount, the Class M-6 Principal Distribution Amount and the Class M-7 Principal Distribution Amount or (b) on or
after the Stepdown Date if a Trigger Event is not in effect for that Distribution Date, the lesser of: 
  
 (xv) the remaining Principal Distribution Amount for that Distribution Date after distribution of the Class A Principal Distribution
Amount, the Class M-1 Principal Distribution Amount, the Class M-2 Principal Distribution Amount, the Class M-3 Principal Distribution Amount, the Class M-4 Principal Distribution Amount, the Class M-5 Principal Distribution Amount, the
Class M-6 Principal Distribution Amount and the Class M-7 Principal Distribution Amount; and 
  
 (xvi) the excess, if any, of (A) the sum of (1) the aggregate Certificate Principal Balance of the Class A Certificates,
Class M-1 Certificates, Class M-2 Certificates, Class M-3 Certificates, Class M-4 Certificates, Class M-5 Certificates, Class M-6 Certificates and Class M-7 Certificates (after taking into account the payment of the Class A Principal
Distribution Amount, the Class M-1 Principal Distribution Amount, the Class M-2 Principal Distribution Amount, the Class M-3 Principal Distribution Amount, the Class M-4 Principal Distribution Amount, the Class M-5 Principal Distribution
Amount, the Class M-6 Principal Distribution Amount and the Class M-7 Principal Distribution Amount for that Distribution Date) and (2) the Certificate Principal Balance of the Class M-8 Certificates immediately prior to that Distribution
Date over (B) the lesser of (x) the product of (1) the applicable Subordination Percentage and (2) the aggregate Stated Principal Balance of the Mortgage Loans after giving effect to distributions to be made on that Distribution
Date and (y) the excess, if any, of the aggregate Stated Principal Balance of the Mortgage Loans after giving effect to distributions to be made on that Distribution Date, over the Overcollateralization Floor. 
  

 17 

 Class M-9 Certificate: Any one of the Class M-9 Certificates executed by the Trustee and
authenticated by the Certificate Registrar substantially in the form annexed hereto as Exhibit B-1 and evidencing (i) an interest designated as a “regular interest” in REMIC II for purposes of the REMIC Provisions and
(ii) the right to receive payments under the Hedge Agreement. 
  
 Class M-9 Margin: Initially, [            ]% per annum, and on any Distribution Date on or after the first Distribution Date after the second possible Optional
Termination Date, [            ]% per annum. 
  
 Class M-9 Principal Distribution Amount: With respect to any Distribution Date (a) prior to the Stepdown Date or on or after the Stepdown
Date if a Trigger Event is in effect for that Distribution Date, the remaining Principal Distribution Amount for that Distribution Date after distribution of the Class A Principal Distribution Amount, the Class M-1 Principal Distribution
Amount, the Class M-2 Principal Distribution Amount, the Class M-3 Principal Distribution Amount, the Class M-4 Principal Distribution Amount, the Class M-5 Principal Distribution Amount, the Class M-6 Principal Distribution Amount, the Class
M-7 Principal Distribution Amount and the Class M-8 Principal Distribution Amount or (b) on or after the Stepdown Date if a Trigger Event is not in effect for that Distribution Date, the lesser of: 
  
 (xvii) the remaining Principal Distribution Amount for that
Distribution Date after distribution of the Class A Principal Distribution Amount, the Class M-1 Principal Distribution Amount, the Class M-2 Principal Distribution Amount, the Class M-3 Principal Distribution Amount, the Class M-4
Principal Distribution Amount, the Class M-5 Principal Distribution Amount, the Class M-6 Principal Distribution Amount, the Class M-7 Principal Distribution Amount and the Class M-8 Principal Distribution Amount; and 
  
 (xviii) the excess, if any, of (A) the sum of
(1) the aggregate Certificate Principal Balance of the Class A Certificates, Class M-1 Certificates, Class M-2 Certificates, Class M-3 Certificates, Class M-4 Certificates, Class M-5 Certificates, Class M-6 Certificates, Class
M-7 Certificates and Class M-8 Certificates (after taking into account the payment of the Class A Principal Distribution Amount, the Class M-1 Principal Distribution Amount, the Class M-2 Principal Distribution Amount, the Class M-3
Principal Distribution Amount, the Class M-4 Principal Distribution Amount, the Class M-5 Principal Distribution Amount, the Class M-6 Principal Distribution Amount, the Class M-7 Principal Distribution Amount and the Class M-8 Principal
Distribution Amount for that Distribution Date) and (2) the Certificate Principal Balance of the Class M-9 Certificates immediately prior to that Distribution Date over (B) the lesser of (x) the product of (1) the applicable
Subordination Percentage and (2) the aggregate Stated Principal Balance of the Mortgage Loans after giving effect to distributions to be made on that Distribution Date and (y) the excess, if any, of the aggregate Stated Principal Balance
of the Mortgage Loans after giving effect to distributions to be made on that Distribution Date, over the Overcollateralization Floor. 
  
 Class M-10 Certificate: Any one of the Class M-10 Certificates executed by the Trustee and authenticated by the Certificate Registrar
substantially in the form annexed hereto as Exhibit B-1 and evidencing (i) an interest designated as a “regular interest” in REMIC II for purposes of the REMIC Provisions and (ii) the right to receive payments under the
Hedge Agreement. 
  

 18 

 Class M-10 Margin: Initially,
[            ]% per annum, and on any Distribution Date on or after the first Distribution Date after the second possible Optional Termination Date,
[            ]% per annum. 
  
 Class M-10 Principal Distribution Amount: With respect to any Distribution Date (a) prior to the Stepdown Date or on or after the Stepdown Date if a Trigger Event is in effect for that Distribution
Date, the remaining Principal Distribution Amount for that Distribution Date after distribution of the Class A Principal Distribution Amount, the Class M-1 Principal Distribution Amount, the Class M-2 Principal Distribution Amount,
the Class M-3 Principal Distribution Amount, the Class M-4 Principal Distribution Amount, the Class M-5 Principal Distribution Amount, the Class M-6 Principal Distribution Amount, the Class M-7 Principal Distribution Amount, the Class M-8 Principal
Distribution Amount and the Class M-9 Principal Distribution Amount or (b) on or after the Stepdown Date if a Trigger Event is not in effect for that Distribution Date, the lesser of: 
  
 (xix) the remaining Principal Distribution Amount for that
Distribution Date after distribution of the Class A Principal Distribution Amount, the Class M-1 Principal Distribution Amount, the Class M-2 Principal Distribution Amount, the Class M-3 Principal Distribution Amount, the Class M-4
Principal Distribution Amount, the Class M-5 Principal Distribution Amount, the Class M-6 Principal Distribution Amount, the Class M-7 Principal Distribution Amount, the Class M-8 Principal Distribution Amount and the Class M-9 Principal
Distribution Amount; and 
  
 (xx) the excess, if
any, of (A) the sum of (1) the aggregate Certificate Principal Balance of the Class A Certificates, Class M-1 Certificates, Class M-2 Certificates, Class M-3 Certificates, Class M-4 Certificates, Class M-5 Certificates,
Class M-6 Certificates, Class M-7 Certificates, Class M-8 Certificates and Class M-9 Certificates (after taking into account the payment of the Class A Principal Distribution Amount, the Class M-1 Principal Distribution Amount, the
Class M-2 Principal Distribution Amount, the Class M-3 Principal Distribution Amount, the Class M-4 Principal Distribution Amount, the Class M-5 Principal Distribution Amount, the Class M-6 Principal Distribution Amount, the Class M-7 Principal
Distribution Amount, the Class M-8 Principal Distribution Amount and the Class M-9 Principal Distribution Amount for that Distribution Date) and (2) the Certificate Principal Balance of the Class M-10 Certificates immediately prior to
that Distribution Date over (B) the lesser of (x) the product of (1) the applicable Subordination Percentage and (2) the aggregate Stated Principal Balance of the Mortgage Loans after giving effect to distributions to be made on
that Distribution Date and (y) the excess, if any, of the aggregate Stated Principal Balance of the Mortgage Loans after giving effect to distributions to be made on that Distribution Date, over the Overcollateralization Floor. 
  
 Class M Certificates: Collectively, the Class M-1
Certificates, Class M-2 Certificates, Class M-3 Certificates, Class M-4 Certificates, Class M-5 Certificates, Class M-6 Certificates, Class M-7 Certificates, Class M-8 Certificates, Class M-9 Certificates and Class M-10 Certificates.

  

 19 

 Class M Principal Distribution Amount: With respect to any Distribution Date, the sum of the Class
M-1 Principal Distribution Amount, Class M-2 Principal Distribution Amount, Class M-3 Principal Distribution Amount, Class M-4 Principal Distribution Amount, Class M-5 Principal Distribution Amount, Class M-6 Principal Distribution Amount, Class M-7
Principal Distribution Amount, Class M-8 Principal Distribution Amount, Class M-9 Principal Distribution Amount and Class M-10 Principal Distribution Amount for such Distribution Date. 
  
 Class R Certificate: Collectively, the Class R-I Certificates and Class R-II Certificates. 

 
 Class R-I Certificate: Any one of the Class R-I
Certificates executed by the Trustee and authenticated by the Certificate Registrar substantially in the form annexed hereto as Exhibit D and evidencing an interest designated as a “residual interest” in REMIC I for purposes of
the REMIC Provisions. 
  
 Class R-II Certificate: Any
one of the Class R-II Certificates executed by the Trustee and authenticated by the Certificate Registrar substantially in the form annexed hereto as Exhibit D and evidencing an interest designated as a “residual interest” in
REMIC II for purposes of the REMIC Provisions. 
  
 Class SB Certificate: Any one of the Class SB Certificates executed by the Trustee and authenticated by the Certificate Registrar substantially in the form annexed hereto as Exhibit C and evidencing an interest
comprised of “regular interests” in REMIC II for purposes of the REMIC Provisions, together with certain rights to payments under the Hedge Agreement. 
  

Closing Date: [DATE]. 
  
 Code: The Internal Revenue Code of 1986. 
  
 Commission: The Securities and Exchange Commission. 
  
 Compensating Interest: With respect to any Distribution Date, any amount paid by the Master Servicer in accordance with Section 3.16(f).

  
 Corporate Trust Office: The principal office of the
Trustee at which at any particular time its corporate trust business with respect to this Agreement shall be administered, which office at the date of the execution of this instrument is located at [TRUSTEE NAME AND ADDRESS]. 
  
 Credit Repository: Equifax, Transunion and Experian, or their
successors in interest. 
  
 Curtailment: Any Principal
Prepayment made by a Mortgagor which is not a Principal Prepayment in Full. 
  
 Custodial Account: The custodial account or accounts created and maintained pursuant to Section 3.07 in the name of a depository institution, as custodian for the holders of the 
  

 20 

 Certificates, for the holders of certain other interests in mortgage loans serviced or sold by the Master Servicer and
for the Master Servicer, into which the amounts set forth in Section 3.07 shall be deposited directly. Any such account or accounts shall be an Eligible Account. 
  
 Custodial Agreement: An agreement that may be entered into among the Depositor, the Master Servicer, the Trustee and
a Custodian in substantially the form of Exhibit E hereto. 
  
 Custodian: [CUSTODIAN], or any successor custodian appointed pursuant to a Custodial Agreement. 
  
 Cut-off Date: [DATE]. 
  
 Cut-off Date Balance:
$                    . 
  
 Cut-off Date Principal Balance: With respect to any Mortgage Loan, the unpaid principal balance thereof at the Cut-off Date after giving effect to
all installments of principal due on or prior thereto (or due in the month of the Cut-off Date), whether or not received. 
  
 Debt Service Reduction: With respect to any Mortgage Loan, a reduction in the scheduled Monthly Payment for such Mortgage Loan by a court of
competent jurisdiction in a proceeding under the Bankruptcy Code, except such a reduction constituting a Deficient Valuation or any reduction that results in a permanent forgiveness of principal. 
  
 Deficient Valuation: With respect to any Mortgage Loan, a valuation by
a court of competent jurisdiction of the Mortgaged Property in an amount less than the then outstanding indebtedness under the Mortgage Loan, or any reduction in the amount of principal to be paid in connection with any scheduled Monthly Payment
that constitutes a permanent forgiveness of principal, which valuation or reduction results from a proceeding under the Bankruptcy Code. 
  
 Definitive Certificate: Any definitive, fully registered Certificate. 
  
 Deleted Mortgage Loan: A Mortgage Loan replaced or to be replaced with a Qualified Substitute Mortgage Loan.

  
 Delinquent: As used herein, a Mortgage Loan is
considered to be: “30 to 59 days” or “30 or more days” delinquent when a payment due on any scheduled due date remains unpaid as of the close of business on the next following monthly scheduled due date; “60 to 89 days”
or “60 or more days” delinquent when a payment due on any scheduled due date remains unpaid as of the close of business on the second following monthly scheduled due date; and so on. The determination as to whether a Mortgage Loan falls
into these categories is made as of the close of business on the last business day of each month. For example, a Mortgage Loan with a payment due on July 1 that remained unpaid as of the close of business on August 31 would then be
considered to be 30 to 59 days delinquent. Delinquency information as of the Cut-off Date is determined and prepared as of the close of business on the last business day immediately prior to the Cut-off Date. 
  
 Depositor: As defined in the preamble hereto. 
  

 21 

 Depository: The Depository Trust Company, or any successor Depository hereafter named. The nominee
of the initial Depository for purposes of registering those Certificates that are to be Book-Entry Certificates is Cede & Co. The Depository shall at all times be a “clearing corporation” as defined in Section 8-102(a)(5) of
the Uniform Commercial Code of the State of New York and a “clearing agency” registered pursuant to the provisions of Section 17A of the Exchange Act. 
  
 Depository Participant: A broker, dealer, bank or other financial institution or other Person for whom from time to
time a Depository effects book-entry transfers and pledges of securities deposited with the Depository. 
  
 Destroyed Mortgage Note: A Mortgage Note the original of which was permanently lost or destroyed and has not been replaced. 
  
 Determination Date: With respect to any Distribution Date, the 20th
day (or if such 20th day is not a Business Day, the Business Day immediately following such 20th day) of the month of the related Distribution Date. 
  
 Disqualified Organization: Any organization defined as a “disqualified organization” under Section 860E(e)(5) of the Code,
including, if not otherwise included, any of the following: (i) the United States, any State or political subdivision thereof, any possession of the United States, or any agency or instrumentality of any of the foregoing (other than an
instrumentality which is a corporation if all of its activities are subject to tax and, except for Freddie Mac, a majority of its board of directors is not selected by such governmental unit), (ii) a foreign government, any international
organization, or any agency or instrumentality of any of the foregoing, (iii) any organization (other than certain farmers’ cooperatives described in Section 521 of the Code) which is exempt from the tax imposed by Chapter 1 of the
Code (including the tax imposed by Section 511 of the Code on unrelated business taxable income) and (iv) rural electric and telephone cooperatives described in Section 1381(a)(2)(C) of the Code. A Disqualified Organization also
includes any “electing large partnership,” as defined in Section 775(a) of the Code and any other Person so designated by the Trustee based upon an Opinion of Counsel that the holding of an Ownership Interest in a Class R Certificate
by such Person may cause any REMIC or any Person having an Ownership Interest in any Class of Certificates (other than such Person) to incur a liability for any federal tax imposed under the Code that would not otherwise be imposed but for the
Transfer of an Ownership Interest in a Class R Certificate to such Person. The terms “United States,” “State” and “international organization” shall have the meanings set forth in Section 7701 of the Code or
successor provisions. 
  
 Distribution Date: The
[    ]th day of any month beginning in [MONTH] or, if such [    ]th day is not a Business Day, the Business Day immediately following such th day. 
  
 DTC Letter: The Letter of Representations, dated [DATE], among the
Trustee on behalf of the Trust Fund, [TRUSTEE NAME], in its individual capacity as agent thereunder and the Depository. 
  

 22 

 Due Date: With respect to any Distribution Date and any Mortgage Loan, the day during the related
Due Period on which the Monthly Payment is due. 
  
 Due
Period: With respect to any Distribution Date, the calendar month of such Distribution Date. 
  
 Eligible Account: An account that is any of the following: (i) maintained with a depository institution the debt obligations of which have
been rated by each Rating Agency in its highest rating available, or (ii) an account or accounts in a depository institution in which such accounts are fully insured to the limits established by the FDIC, provided that any deposits not so
insured shall, to the extent acceptable to each Rating Agency, as evidenced in writing, be maintained such that (as evidenced by an Opinion of Counsel delivered to the Trustee and each Rating Agency) the registered Holders of Certificates have a
claim with respect to the funds in such account or a perfected first security interest against any collateral (which shall be limited to Permitted Investments) securing such funds that is superior to claims of any other depositors or creditors of
the depository institution with which such account is maintained, or (iii) in the case of the Custodial Account, a trust account or accounts maintained in the corporate trust department of [TRUSTEE NAME], or (iv) in the case of the
Certificate Account, a trust account or accounts maintained in the corporate trust division of [TRUSTEE NAME], or (v) an account or accounts of a depository institution acceptable to each Rating Agency (as evidenced in writing by each Rating
Agency that use of any such account as the Custodial Account or the Certificate Account will not reduce the rating assigned to any Class of Certificates by such Rating Agency below the lower of the then-current rating or the rating assigned to such
Certificates as of the Closing Date by such Rating Agency). 
  
 Eligible Master Servicing Compensation: With respect to any Distribution Date, the lesser of (a) x/x of [            ]% of the Stated Principal Balance of the
related Mortgage Loans immediately preceding such Distribution Date and (b) the sum of the Servicing Fee and all income and gain on amounts held in the Custodial Account and the Certificate Account and payable to the Certificateholders with
respect to such Distribution Date; provided that for purposes of this definition the amount of the Servicing Fee will not be reduced pursuant to Section 7.02(a) except as may be required pursuant to the last sentence of such Section.

  
 ERISA: The Employee Retirement Income Security Act of
1974, as amended. 
  
 Event of Default: As defined in
Section 7.01. 
  
 Excess Cash Flow: With respect to
any Distribution Date, an amount equal to the sum of (A) the excess of (i) the Available Distribution Amount for that Distribution Date increased by the amount, if any, paid from the Hedge Payment for that Distribution Date pursuant to
Section 4.02(c)(iii) over (ii) the sum of (a) the Interest Distribution Amount for that Distribution Date and (b) the lesser of (1) the aggregate Certificate Principal Balance of Class A Certificates, Class M
Certificates and Class B Certificates immediately prior to such Distribution Date and (2) the Principal Remittance Amount for that Distribution Date to the extent not applied to pay interest on the Class A Certificates, Class M
Certificates and Class B Certificates on such Distribution Date and (B) the Overcollateralization Reduction Amount, if any, for that Distribution Date. 
  

 23 

 Excess Overcollateralization Amount: With respect to any Distribution Date, the excess, if any, of
(a) the Overcollateralization Amount on such Distribution Date over (b) the Required Overcollateralization Amount for such Distribution Date. 
  
 Exchange Act: The Securities Exchange Act of 1934, as amended. 
  
 Expense Fee Rate: With respect to any Mortgage Loan as of any date of determination, the sum of the applicable
Servicing Fee Rate and the per annum rate at which the applicable Subservicing Fee accrues. 
  
 Fannie Mae: Fannie Mae, a federally chartered and privately owned corporation organized and existing under the Federal National Mortgage Association Charter Act, or any successor thereto. 
  
 FDIC: Federal Deposit Insurance Corporation or any successor thereto.

  
 Final Distribution Date: The Distribution Date on which
the final distribution in respect of the Certificates will be made pursuant to Section 9.01, which Final Distribution Date shall in no event be later than the end of the 90-day liquidation period described in Section 9.02. 
  
 Final Scheduled Distribution Date: Solely for purposes of the face of
the Certificates, as follows: with respect to the Class A-[1] Certificates, the Distribution Date occurring in [MONTH], with respect to the Class A-[2] Certificates, the Distribution Date occurring in [MONTH]; with respect to the
Class A-[3] Certificates, the Distribution Date occurring in [MONTH]; and with respect to the Class A-[4] Certificates, Class M Certificates and Class B Certificates, the Distribution Date occurring in [MONTH]. No event of default under
this Agreement will arise or become applicable solely by reason of the failure to retire the entire Certificate Principal Balance of any Class of Class A Certificates, Class M Certificates or Class B Certificates on or before its Final
Scheduled Distribution Date. 
  
 Fitch: Fitch Ratings, or
its successors in interest. 
  
 Foreclosure Profits: With
respect to any Distribution Date or related Determination Date and any Mortgage Loan, the excess, if any, of Liquidation Proceeds, Insurance Proceeds and REO Proceeds (net of all amounts reimbursable therefrom pursuant to Section 3.10(a)(ii))
in respect of each Mortgage Loan or REO Property for which a Cash Liquidation or REO Disposition occurred in the related Prepayment Period over the sum of the unpaid principal balance of such Mortgage Loan or REO Property (determined, in the case of
an REO Disposition, in accordance with Section 3.14) plus accrued and unpaid interest at the Mortgage Rate on such unpaid principal balance from the Due Date to which interest was last paid by the Mortgagor to the first day of the month
following the month in which such Cash Liquidation or REO Disposition occurred. 
  
 Form 10-K Certification: As defined in Section 4.03(e). 
  
 Freddie Mac: Freddie Mac, a corporate instrumentality of the United States created and existing under Title III of the Emergency Home Finance Act
of 1970, as amended, or any successor thereto. 
  

 24 

 Gross Margin: With respect to each adjustable-rate Mortgage Loan, the fixed percentage set forth
in the related Mortgage Note and indicated on the Mortgage Loan Schedule as the “NOTE MARGIN,” which percentage is added to the related Index on each Adjustment Date to determine (subject to rounding in accordance with the related Mortgage
Note, the Periodic Cap, the Maximum Mortgage Rate and the Minimum Mortgage Rate) the interest rate to be borne by such Mortgage Loan until the next Adjustment Date. 
  
 Hedge Agreement: The confirmation, dated as of the Closing Date, between the Trustee, on behalf of the Trust Fund,
and the Hedge Agreement Provider, relating to the Class A Certificates, Class M Certificates and Class B Certificates, or any replacement, substitute, collateral or other arrangement in lieu thereof. 
  
 Hedge Agreement Provider: [HEDGE AGREEMENT PROVIDER], and its
successors and assigns or any party to any replacement, substitute, collateral or other arrangement in lieu thereof. 
  
 Hedge Payment: For any Distribution Date, the payment, if any, due under the Hedge Agreement in respect of such Distribution Date. 
  
 Hedge Shortfall Amount: For any Distribution Date, the amount, if any,
by which the payment on the Class A Certificates, Class M Certificates and Class B Certificates pursuant to Section 4.02(c)(iii) is paid from the Hedge Payment for such Distribution Date pursuant to the provisions thereof or would have
been so paid but for the failure of the Hedge Agreement Provider to make a payment required under the Hedge Agreement. 
  
 Hedge Shortfall Carry-Forward Amount: For any Distribution Date, the aggregate Hedge Shortfall Amounts for prior Distribution Dates to the extent
not reimbursed to the Class SB Certificates pursuant to Section 4.02(c)(x). 
  
 HUD: The United States Department of Housing and Urban Development. 
  
 Independent: When used with respect to any specified Person, means such a Person who (i) is in fact independent of the Depositor, the Master
Servicer and the Trustee, or any Affiliate thereof, (ii) does not have any direct financial interest or any material indirect financial interest in the Depositor, the Master Servicer or the Trustee or in an Affiliate thereof, and (iii) is
not connected with the Depositor, the Master Servicer or the Trustee as an officer, employee, promoter, underwriter, trustee, partner, director or person performing similar functions. 
  
 Index: With respect to any adjustable-rate Mortgage Loan and as to any Adjustment Date therefor, the related index as
stated in the related Mortgage Note. 
  
 Initial Certificate
Principal Balance: With respect to each Class of Certificates (other than the Class R Certificates), the Certificate Principal Balance of such Class of Certificates as of the Closing Date as set forth in the Preliminary Statement hereto.

  
 Insurance Proceeds: Proceeds paid in respect of the
Mortgage Loans pursuant to any Primary Insurance Policy or any other related insurance policy covering a Mortgage Loan, to the extent such proceeds are payable to the mortgagee under the Mortgage, any Subservicer, the 
  

 25 

 Master Servicer or the Trustee and are not applied to the restoration of the related Mortgaged Property
or released to the Mortgagor in accordance with the procedures that the Master Servicer would follow in servicing mortgage loans held for its own account. 
  
 Interest Accrual Period: With respect to the Distribution Date in [MONTH], the period commencing the Closing Date and ending on the day preceding
the Distribution Date in [MONTH], and with respect to any Distribution Date after the Distribution Date in [MONTH], the period commencing on the Distribution Date in the month immediately preceding the month in which such Distribution Date occurs
and ending on the day preceding such Distribution Date. 
  
 Interest Distribution Amount: For any Distribution Date, the amounts payable pursuant to Section 4.02(c)(i)-(iii). 
  
 Interim Certification: As defined in Section 2.02. 
  
 Late Collections: With respect to any Mortgage Loan, all amounts received during any Due Period, whether as late payments of Monthly Payments or as
Insurance Proceeds, Liquidation Proceeds or otherwise, which represent late payments or collections of Monthly Payments due but delinquent for a previous Due Period and not previously recovered. 
  
 LIBOR: With respect to any Distribution Date, the arithmetic mean of
the London interbank offered rate quotations for one-month U.S. Dollar deposits, expressed on a per annum basis, determined in accordance with Section 1.02. 
  
 LIBOR Business Day: Any day other than (i) a Saturday or Sunday or (ii) a day on which banking institutions
in London, England are required or authorized by law to be closed. 
  
 LIBOR Certificates: Collectively, the Class A Certificates, Class M Certificates and Class B Certificates. 
  
 LIBOR Rate Adjustment Date: With respect to each Distribution Date, the second LIBOR Business Day immediately preceding the commencement of the
related Interest Accrual Period. 
  
 Liquidation Proceeds:
Amounts (other than Insurance Proceeds) received by the Master Servicer in connection with the taking of an entire Mortgaged Property by exercise of the power of eminent domain or condemnation or in connection with the liquidation of a defaulted
Mortgage Loan through trustee’s sale, foreclosure sale or otherwise, other than REO Proceeds and Subsequent Recoveries. 
  
 Loan-to-Value Ratio: As of any date, the fraction, expressed as a percentage, the numerator of which is the current principal balance of the
related Mortgage Loan at the date of determination and the denominator of which is the Appraised Value of the related Mortgaged Property. 
  
 Margin: The Class A-[1] Margin, Class A-[2] Margin, Class A-[3] Margin, Class A-[4] Margin, Class M-1 Margin,
Class M-2 Margin, Class M-3 Margin, Class M-4 Margin, Class M-5 Margin, Class M-6 Margin, Class M-7 Margin, Class M-8 Margin, Class M-9 Margin, Class M-10 Margin, Class B-1 Margin, Class B-2 Margin, Class M-3 Margin or Class
B-4 Margin, as applicable. 
  

 26 

 Marker Rate: With respect to the Class SB Certificates or the REMIC II Regular Interest SB-IO and
any Distribution Date, a per annum rate equal to two (2) times the weighted average of the Uncertificated REMIC I Pass-Through Rates for REMIC I Regular Interest LT2 and REMIC I Regular Interest LT3. 
  
 Master Servicer: As defined in the preamble hereto. 
  
 Maturity Date: With respect to each Class of Certificates representing
ownership of REMIC II Regular Interests or REMIC I Regular Interests issued by each of REMIC I and REMIC II, the latest possible maturity date, solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury Regulations, by which the
Certificate Principal Balance of each such Class of Certificates representing a regular interest in the Trust Fund would be reduced to zero, which is, for each such regular interest, [DATE], which is the Distribution Date occurring in the month
following the last scheduled monthly payment of the Mortgage Loans. 
  
 Maximum Mortgage Rate: With respect to any adjustable-rate Mortgage Loan, the per annum rate indicated on the Mortgage Loan Schedule as the “NOTE CEILING,” which rate is the maximum interest rate that may be applicable to
such Mortgage Loan at any time during the life of such Mortgage Loan. 
  
 Maximum Net Mortgage Rate: With respect to any adjustable-rate Mortgage Loan and any date of determination, the Maximum Mortgage Rate minus the Expense Fee Rate. 
  
 MERS: Mortgage Electronic Registration Systems, Inc., a corporation organized and existing under the laws of the
State of Delaware, or any successor thereto. 
  
 MERS®
System: The system of recording transfers of Mortgages electronically maintained by MERS. 
  
 MIN: The Mortgage Identification Number for Mortgage Loans registered with MERS on the MERS® System. 
  
 Minimum Mortgage Rate: With respect to any adjustable-rate Mortgage Loan, a per annum rate equal to the greater of (i) the Note Margin and
(ii) the rate indicated on the Mortgage Loan Schedule as the “NOTE FLOOR,” which rate may be applicable to such Mortgage Loan at any time during the life of such Mortgage Loan. 
  
 Modified Mortgage Loan: Any Mortgage Loan that has been the subject of
a Servicing Modification. 
  
 Modified Net Mortgage Rate:
With respect to any Mortgage Loan that is the subject of a Servicing Modification, the Net Mortgage Rate minus the rate per annum by which the Mortgage Rate on such Mortgage Loan was reduced. 
  

 27 

 MOM Loan: With respect to any Mortgage Loan, MERS acting as the mortgagee of such Mortgage Loan,
solely as nominee for the originator of such Mortgage Loan and its successors and assigns, at the origination thereof. 
  
 Monthly Payment: With respect to any Mortgage Loan (including any REO Property) and the Due Date in any Due Period, the payment of principal and
interest due thereon in accordance with the amortization schedule at the time applicable thereto (after adjustment, if any, for Curtailments and for Deficient Valuations occurring prior to such Due Date but before any adjustment to such amortization
schedule by reason of any bankruptcy, other than a Deficient Valuation, or similar proceeding or any moratorium or similar waiver or grace period and before any Servicing Modification that constitutes a reduction of the interest rate on such
Mortgage Loan). 
  
 Moody’s: Moody’s Investors
Service, Inc., or its successors in interest. 
  
 Mortgage:
With respect to each Mortgage Note, the mortgage, deed of trust or other comparable instrument creating a first or junior lien on an estate in fee simple or leasehold interest in real property securing a Mortgage Note. 
  
 Mortgage File: The mortgage documents listed in Section 2.01
pertaining to a particular Mortgage Loan and any additional documents required to be added to the Mortgage File pursuant to this Agreement. 
  
 Mortgage Loans: Such of the mortgage loans transferred and assigned to the Trustee pursuant to Section 2.01 as from time to time are held or
deemed to be held as a part of the Trust Fund, the Mortgage Loans originally so held being identified in the initial Mortgage Loan Schedule, and Qualified Substitute Mortgage Loans held or deemed held as part of the Trust Fund including, without
limitation, each related Mortgage Note, Mortgage and Mortgage File and all rights appertaining thereto. 
  
 Mortgage Loan Schedule: The lists of the Mortgage Loans attached hereto as Exhibit F-1 and Exhibit F-2 (as amended from time to time to
reflect the addition of Qualified Substitute Mortgage Loans), which lists shall set forth at a minimum the following information as to each Mortgage Loan: 
  
 (i) the Mortgage Loan identifying number (“LOAN #”); 
  
 (ii) [reserved]; 
  

(iii) the maturity of the Mortgage Note (“MATURITY DATE,” or “MATURITY DT”); 
  
 (iv) for the adjustable-rate Mortgage Loans, the Mortgage
Rate as of origination (“ORIG RATE”); 
  
 (v) the Mortgage Rate as of the Cut-off Date (“CURR RATE”); 
  
 (vi) the Net Mortgage Rate as of the Cut-off Date (“CURR NET”); 
  

 28 

 (vii) the scheduled monthly payment of principal, if any, and interest as of the Cut-off
Date (“ORIGINAL P & I” or “CURRENT P & I”); 
  
 (viii) the Cut-off Date Principal Balance (“PRINCIPAL BAL”); 
  
 (ix) the Loan-to-Value Ratio at origination (“LTV”); 
  
 (x) a code “T,” “BT” or “CT” under the column “LN FEATURE,”
indicating that the Mortgage Loan is secured by a second or vacation residence (the absence of any such code means the Mortgage Loan is secured by a primary residence); 
  
 (xi) a code “N” under the column “OCCP CODE,” indicating that the Mortgage Loan is
secured by a non-owner occupied residence (the absence of any such code means the Mortgage Loan is secured by an owner occupied residence); 
  
 (xii) for the adjustable-rate Mortgage Loans, the Maximum Mortgage Rate (“NOTE CEILING”); 
  
 (xiii) for the adjustable-rate Mortgage Loans, the maximum
Net Mortgage Rate (“NET CEILING”); 
  
 (xiv) for the adjustable-rate Mortgage Loans, the Note Margin (“NOTE MARGIN”); 
  
 (xv) for the adjustable-rate Mortgage Loans, the first Adjustment Date after the Cut-off Date (“NXT INT CHG DT”); 
  
 (xvi) for the adjustable-rate Mortgage Loans, the Periodic
Cap (“PERIODIC DECR” or “PERIODIC INCR”); 
  
 (xvii) [reserved]; and 
  
 (xviii) for the adjustable-rate Mortgage Loans, the rounding of the semi-annual or annual adjustment to the Mortgage Rate (“NOTE METHOD”). 
  
 Such schedules may consist of multiple reports that collectively set forth all of the information required. 
  
 Mortgage Note: The originally executed note or other evidence of
indebtedness evidencing the indebtedness of a Mortgagor under a Mortgage Loan, together with any modification thereto. 
  
 Mortgage Rate: With respect to any Mortgage Loan, the interest rate borne by the related Mortgage Note, or any modification thereto other than a
Servicing Modification. The Mortgage Rate on the adjustable-rate Mortgage Loans will adjust on each Adjustment Date to equal the sum (rounded to the nearest multiple of
[            ]% or up to the nearest [            ]%, which are indicated by a “U” on the Mortgage Loan
Schedule, except in the case of the adjustable-rate Mortgage Loans indicated by an “X” on the Mortgage Loan Schedule under the heading “NOTE METHOD”), of the related Index plus the Note Margin, in each case subject to the
applicable Periodic Cap, Maximum Mortgage Rate and Minimum Mortgage Rate. 
  

 29 

 Mortgaged Property: The underlying real property securing a Mortgage Loan. 
  
 Mortgagor: The obligor on a Mortgage Note. 
  
 Net Mortgage Rate: With respect to any Mortgage Loan as of any date of
determination, a per annum rate equal to the Mortgage Rate for such Mortgage Loan as of such date minus the related Expense Fee Rate. 
  
 Net WAC Cap Rate: With respect to any Distribution Date, the sum of (a) the product of (i) a per annum rate equal to the weighted average
of the Net Mortgage Rates (or, if applicable, the Modified Net Mortgage Rates) on the Mortgage Loans using the Net Mortgage Rates in effect for the Monthly Payments due on such Mortgage Loans during the related Due Period, weighted on the basis of
the respective Stated Principal Balances thereof for such Distribution Date and (ii) a fraction equal to 30 divided by the actual number of days in the related Interest Accrual Period, and (b) a per annum rate equal to (i) the amount,
if any, required to be paid under the Hedge Agreement with respect to such Distribution Date divided by (ii) the aggregate Certificate Principal Balance of the Class A Certificates, Class M Certificates and Class B Certificates immediately
prior to such Distribution Date, multiplied by a fraction, the numerator of which is 30, and the denominator of which is the actual number of days in the related Interest Accrual Period. 
  
 Non-United States Person: Any Person other than a United States Person. 
  
 Nonrecoverable Advance: Any Advance previously made or proposed to be
made by the Master Servicer or Subservicer in respect of a Mortgage Loan (other than a Deleted Mortgage Loan) which, in the good faith judgment of the Master Servicer, will not, or, in the case of a proposed Advance, would not, be ultimately
recoverable by the Master Servicer from related Late Collections, Insurance Proceeds, Liquidation Proceeds or REO Proceeds. To the extent that any Mortgagor is not obligated under the related Mortgage documents to pay or reimburse any portion of any
Servicing Advances that are outstanding with respect to the related Mortgage Loan as a result of a modification of such Mortgage Loan by the Master Servicer, which forgives amounts which the Master Servicer or Subservicer had previously advanced,
and the Master Servicer determines that no other source of payment or reimbursement for such advances is available to it, such Servicing Advances shall be deemed to be Nonrecoverable Advances. The determination by the Master Servicer that it has
made a Nonrecoverable Advance shall be evidenced by a certificate of a Servicing Officer, Responsible Officer or Vice President or its equivalent or senior officer of the Master Servicer, delivered to the Depositor, the Trustee, and the Master
Servicer setting forth such determination, which shall include any other information or reports obtained by the Master Servicer such as property operating statements, rent rolls, property inspection reports and engineering reports, which may support
such determinations. Notwithstanding the above, the Trustee shall be entitled to rely upon any determination by the Master Servicer that any Advance previously made is a Nonrecoverable Advance or that any proposed Advance, if made, would constitute
a Nonrecoverable Advance. 
  

 30 

 Nonsubserviced Mortgage Loan: Any Mortgage Loan that, at the time of reference thereto, is not
subject to a Subservicing Agreement. 
  
 Note Margin: With
respect to each adjustable-rate Mortgage Loan, the fixed percentage set forth in the related Mortgage Note and indicated on the Mortgage Loan Schedule as the “NOTE MARGIN,” which percentage is added to the Index on each Adjustment Date to
determine (subject to rounding in accordance with the related Mortgage Note, the Periodic Cap, the Maximum Mortgage Rate and the Minimum Mortgage Rate) the interest rate to be borne by such Mortgage Loan until the next Adjustment Date. 

 
 Notional Amount: With respect to the Class SB Certificates or the
REMIC II Regular Interest SB-IO, immediately prior to any Distribution Date, the aggregate of the Uncertificated Principal Balances of the REMIC I Regular Interests. 
  
 Officers’ Certificate: A certificate signed by the Chairman of the Board, the President, a Vice President,
Assistant Vice President, Director, Managing Director, the Treasurer, the Secretary, an Assistant Treasurer or an Assistant Secretary of the Depositor or the Master Servicer, as the case may be, and delivered to the Trustee, as required by this
Agreement. 
  
 Opinion of Counsel: A written opinion of
counsel acceptable to the Trustee and the Master Servicer and which counsel may be counsel for the Depositor or the Master Servicer, provided that any opinion of counsel (i) referred to in the definition of “Disqualified Organization”
or (ii) relating to the qualification of any REMIC hereunder as a REMIC or compliance with the REMIC Provisions must, unless otherwise specified, be an opinion of Independent counsel. 
  
 Optional Termination Date: Any Distribution Date on or after which the
Stated Principal Balance (after giving effect to distributions to be made on such Distribution Date) of the Mortgage Loans is less than 10.00% of the Cut-off Date Balance. 
  
 Outstanding Mortgage Loan: With respect to the Due Date in any Due Period, a Mortgage Loan (including an REO
Property) that was not the subject of a Principal Prepayment in Full, Cash Liquidation or REO Disposition and that was not purchased, deleted or substituted for prior to such Due Date pursuant to Section 2.02, 2.03, 2.04 or 4.07. 
  
 Overcollateralization Amount: With respect to any Distribution Date,
the excess, if any, of (a) the aggregate Stated Principal Balance of the Mortgage Loans before giving effect to distributions of principal to be made on such Distribution Date over (b) the aggregate Certificate Principal Balance of the
Class A Certificates, Class M Certificates and Class B Certificates immediately prior to such date. 
  
 Overcollateralization Floor: An amount equal to the product of [            ]%
and the Cut-off Date Balance. 
  
 Overcollateralization
Increase Amount: With respect to any Distribution Date, the lesser of (a) Excess Cash Flow for that Distribution Date (to the extent not used to cover the amounts described in clauses (b)(iv) and (b)(v) of the definition of Principal
Distribution Amount as of such Distribution Date) and (b) the excess of (1) the Required Overcollateralization Amount for such Distribution Date over (2) the Overcollateralization Amount for such Distribution Date. 
  

 31 

 Overcollateralization Reduction Amount: With respect to any Distribution Date on which the Excess
Overcollateralization Amount is, after taking into account all other distributions to be made on such Distribution Date, greater than zero, the Overcollateralization Reduction Amount shall be equal to the lesser of (i) the Excess
Overcollateralization Amount for that Distribution Date and (ii) the Principal Remittance Amount on such Distribution Date. 
  
 Ownership Interest: With respect to any Certificate, any ownership or security interest in such Certificate, including any interest in such
Certificate as the Holder thereof and any other interest therein, whether direct or indirect, legal or beneficial, as owner or as pledgee. 
  
 Pass-Through Rate: With respect to each Class of Class A Certificates, Class M Certificates and Class B Certificates and any Distribution
Date, the lesser of (i) a per annum rate equal to LIBOR plus the related Margin for such Distribution Date and (ii) the Net WAC Cap Rate for such Distribution Date. 
  
 With respect to the Class SB Certificates or the REMIC II Regular Interest SB-IO, a per annum rate equal to the percentage
equivalent of a fraction, the numerator of which is the sum of the amounts calculated pursuant to clauses (i) through (iii) below, and the denominator of which is the aggregate principal balance of the REMIC I Regular Interests. For
purposes of calculating the Pass-Through Rate for the Class SB Certificates or the REMIC II Regular Interest SB-IO, the numerator is equal to the sum of the following components: 
  
 (i) the Uncertificated Pass-Through Rate for REMIC I Regular Interest LT1 minus the related Marker Rate,
applied to a notional amount equal to the Uncertificated Principal Balance of REMIC I Regular Interest LT1; 
  
 (ii) the Uncertificated Pass-Through Rate for REMIC I Regular Interest LT2 minus the related Marker Rate, applied to a notional amount
equal to the Uncertificated Principal Balance of REMIC I Regular Interest LT2; and 
  
 (iii) the Uncertificated Pass-Through Rate for REMIC I Regular Interest LT4 minus twice the related Marker Rate, applied to a notional
amount equal to the Uncertificated Principal Balance of REMIC I Regular Interest LT4. 
  
 Paying Agent: [PAYING AGENT] or any successor Paying Agent appointed by the Trustee. 
  
 Percentage Interest: With respect to any Class A Certificate, Class M Certificate or Class B Certificate, the undivided percentage
ownership interest in the related Class evidenced by such Certificate, which percentage ownership interest shall be equal to the Initial Certificate Principal Balance thereof divided by the aggregate Initial Certificate Principal Balance of all of
the Certificates of the same Class. The Percentage Interest with respect to a Class SB Certificate or Class R Certificate shall be stated on the face thereof. 
  

 32 

 Periodic Cap: With respect to each adjustable-rate Mortgage Loan, the periodic rate cap that
limits the increase or the decrease of the related Mortgage Rate on any Adjustment Date pursuant to the terms of the related Mortgage Note. 
  
 Permitted Investments: One or more of the following: 
  
 (i) obligations of or guaranteed as to principal and interest by the United States or any agency or instrumentality thereof when such
obligations are backed by the full faith and credit of the United States; 
  
 (ii) repurchase agreements on obligations specified in clause (i) maturing not more than one month from the date of acquisition thereof, provided that the unsecured obligations of the party agreeing to repurchase
such obligations are at the time rated by each Rating Agency in its highest short-term rating available; 
  
 (iii) federal funds, certificates of deposit, demand deposits, time deposits and bankers’ acceptances (which shall each have an
original maturity of not more than 90 days and, in the case of bankers’ acceptances, shall in no event have an original maturity of more than 365 days or a remaining maturity of more than 30 days) denominated in United States dollars of any
U.S. depository institution or trust company incorporated under the laws of the United States or any state thereof or of any domestic branch of a foreign depository institution or trust company; provided that the debt obligations of such depository
institution or trust company at the date of acquisition thereof have been rated by each Rating Agency in its highest short-term rating available; and, provided further that, if the original maturity of such short-term obligations of a domestic
branch of a foreign depository institution or trust company shall exceed 30 days, the short-term rating of such institution shall be A-1+ in the case of Standard & Poor’s if Standard & Poor’s is a Rating Agency;

  
 (iv) commercial paper and demand notes
(having original maturities of not more than 365 days) of any corporation incorporated under the laws of the United States or any state thereof which on the date of acquisition has been rated by each Rating Agency in its highest short term
rating available; provided that such commercial paper and demand notes shall have a remaining maturity of not more than 30 days; 
  
 (v) a money market fund or a qualified investment fund rated by each Rating Agency in its highest long-term rating available (which may be
managed by the Trustee or one of its Affiliates); and 
  
 (vi) other obligations or securities that are acceptable to each Rating Agency as a Permitted Investment hereunder and will not reduce the rating assigned to any Class of Certificates by such Rating Agency below the lower of the
then-current rating or the rating assigned to such Certificates as of the Closing Date by such Rating Agency, as evidenced in writing; 
  
 provided, however, that no instrument shall be a Permitted Investment if it represents, either (1) the right to receive only interest payments with respect to
the underlying debt instrument or (2) the right to receive both principal and interest payments derived from obligations underlying 
  

 33 

 such instrument and the principal and interest payments with respect to such instrument provide a yield to maturity
greater than xxx% of the yield to maturity at par of such underlying obligations. References herein to the highest rating available on unsecured long-term debt shall mean AAA in the case of Standard & Poor’s and Fitch and Aaa in the
case of Moody’s, and for purposes of this Agreement, any references herein to the highest rating available on unsecured commercial paper and short-term debt obligations shall mean the following: A-1 in the case of Standard &
Poor’s, P-1 in the case of Moody’s and F-1 in the case of Fitch; provided, however, that any Permitted Investment that is a short-term debt obligation rated A-1 by Standard & Poor’s must satisfy the following additional
conditions: (i) the total amount of debt from A-1 issuers must be limited to the investment of monthly principal and interest payments (assuming fully amortizing collateral); (ii) the total amount of A-1 investments must not represent more
than xx% of the aggregate outstanding Certificate Principal Balance of the Certificates and each investment must not mature beyond 30 days; (iii) the terms of the debt must have a predetermined fixed dollar amount of principal due at maturity
that cannot vary; and (iv) if the investments may be liquidated prior to their maturity or are being relied on to meet a certain yield, interest must be tied to a single interest rate index plus a single fixed spread (if any) and must move
proportionately with that index. Any Permitted Investment may be purchased by or through the Trustee or its Affiliates. 
  
 Permitted Transferee: Any Transferee of a Class R Certificate, other than a Disqualified Organization or Non-United States Person. 
  
 Person: Any individual, corporation, limited liability company,
partnership, joint venture, association, joint-stock company, trust, unincorporated organization or government or any agency or political subdivision thereof. 
  

Prepayment Assumption: With respect to the Class A, Class M and Class B Certificates, the prepayment assumption to be used for determining
the accrual of original issue discount and premium and market discount on such Certificates for federal income tax purposes, which (a) with respect to the fixed-rate Mortgage Loans, assumes a constant prepayment rate of
[            ]% per annum of the then outstanding Stated Principal Balance of the fixed-rate Mortgage Loans in the first month of the life of such Mortgage Loans and an additional
[            ]% per annum in each month thereafter until the tenth month, and beginning in the tenth month and in each month thereafter during the life of the fixed-rate Mortgage
Loans, a constant prepayment rate of [            ]% per annum each month (“xx% HEP”) and (b) with respect to the adjustable-rate Mortgage Loans assumes a prepayment
assumption of [            ]% of the constant prepayment rate in month one, increasing by approximately
[            ]% from month 2 until month 12, a constant prepayment rate of [            ]% from month 12 to month
22, a constant prepayment rate of [            ]% from month 23 to month 27, and a constant prepayment rate of
[            ]% thereafter, used for determining the accrual of original issue discount and premium and market discount on the Class A, Class M and Class B Certificates for
federal income tax purposes. The constant prepayment rate assumes that the stated percentage of the outstanding Stated Principal Balance of the adjustable-rate Mortgage Loans is prepaid over the course of a year. 
  
 Prepayment Interest Shortfall: With respect to any Distribution Date
and any Mortgage Loan (other than a Mortgage Loan relating to an REO Property) that was the subject of (a) a Principal Prepayment in Full during the related Prepayment Period, an amount equal to the 
  

 34 

 excess of one month’s interest at the related Net Mortgage Rate (or Modified Net Mortgage Rate in the case of a
Modified Mortgage Loan) on the Stated Principal Balance of such Mortgage Loan over the amount of interest (adjusted to the related Net Mortgage Rate (or Modified Net Mortgage Rate in the case of a Modified Mortgage Loan)) paid by the Mortgagor for
such Prepayment Period to the date of such Principal Prepayment in Full or (b) a Curtailment during the prior calendar month, an amount equal to one month’s interest at the related Net Mortgage Rate (or Modified Net Mortgage Rate in the
case of a Modified Mortgage Loan) on the amount of such Curtailment. 
  
 Prepayment Period: With respect to any Distribution Date, the calendar month preceding the month of distribution. 
  
 Primary Insurance Policy: Each primary policy of mortgage guaranty insurance as indicated by a numeric code on the Mortgage Loan Schedule with the
exception of code “A23,” “A34” or “A96” under the column “MI CO CODE.” 
  
 Principal Distribution Amount: With respect to any Distribution Date, the lesser of (a) the excess of (x) the Available Distribution
Amount over (y) the Interest Distribution Amount, and (b) the sum of: 
  
 (i) the principal portion of each Monthly Payment received or Advanced with respect to the related Due Period on each Outstanding Mortgage
Loan; 
  
 (ii) the Stated Principal Balance of
any Mortgage Loan repurchased during the related Prepayment Period (or deemed to have been so repurchased in accordance with Section 3.07(b)) pursuant to Section 2.02, 2.03, 2.04 or 4.07 and the amount of any shortfall deposited in the
Custodial Account in connection with the substitution of a Deleted Mortgage Loan pursuant to Section 2.03 or 2.04 during the related Prepayment Period; 
  
 (iii) the principal portion of all other unscheduled collections, other than Subsequent Recoveries, on the Mortgage Loans (including,
without limitation, Principal Prepayments in Full, Curtailments, Insurance Proceeds, Liquidation Proceeds and REO Proceeds) received during the related Prepayment Period (or deemed to have been so received) to the extent applied by the Master
Servicer as recoveries of principal of the Mortgage Loans pursuant to Section 3.14; 
  
 (iv) the lesser of (1) the Subsequent Recoveries for such Distribution Date and (2) the principal portion of any Realized Losses
allocated to any Class of Certificates on a prior Distribution Date and remaining unpaid; 
  
 (v) the lesser of (1) the Excess Cash Flow for such Distribution Date (to the extent not used pursuant to clause (iv) of this
definition on such Distribution Date) and (2) the principal portion of any Realized Losses incurred (or deemed to have been incurred) on any Mortgage Loans in the calendar month preceding such Distribution; and 
  

 35 

 (vi) the lesser of (1) the Excess Cash Flow for that Distribution Date (to the
extent not used pursuant to clauses (iv) and (v) of this definition on such Distribution Date) and (2) the Overcollateralization Increase Amount for such Distribution Date; 
  
 minus 
  
 (vii) (A) the amount of any Overcollateralization Reduction Amount for such Distribution Date and
(B) the amount of any Capitalization Reimbursement Amount for such Distribution Date. 
  
 Principal Prepayment: Any payment of principal or other recovery on a Mortgage Loan, including a recovery that takes the form of Liquidation Proceeds or Insurance Proceeds, which is received in advance of its
scheduled Due Date and is not accompanied by an amount as to interest representing scheduled interest on such payment due on any date or dates in any month or months subsequent to the month of prepayment. 
  
 Principal Prepayment in Full: Any Principal Prepayment made by a
Mortgagor of the entire principal balance of a Mortgage Loan. 
  
 Principal Remittance Amount: With respect to any Distribution Date, all amounts described in clauses (b)(i) through (iii) of the definition of Principal Distribution Amount for that Distribution Date.. 
  
 Program Guide: [Insert description]. 
  
 Purchase Price: With respect to any Mortgage Loan (or REO Property)
required to be or otherwise purchased on any date pursuant to Section 2.02, 2.03, 2.04 or 4.07, an amount equal to the sum of (i) 100% of the Stated Principal Balance thereof plus the principal portion of any related unreimbursed Advances
and (ii) unpaid accrued interest at either (a) the Adjusted Mortgage Rate (or Modified Net Mortgage Rate in the case of a Modified Mortgage Loan) plus the rate per annum at which the Servicing Fee is calculated, or (b) in the case of
a purchase made by the Master Servicer, at the Net Mortgage Rate (or Modified Net Mortgage Rate in the case of a Modified Mortgage Loan), in each case on the Stated Principal Balance thereof to the first day of the month following the month of
purchase from the Due Date to which interest was last paid by the Mortgagor. 
  
 Qualified Substitute Mortgage Loan: A Mortgage Loan substituted by the Seller or the Depositor for a Deleted Mortgage Loan which must, on the date of such substitution, as confirmed in an Officers’
Certificate delivered to the Trustee, (i) have an outstanding principal balance, after deduction of the principal portion of the monthly payment due in the month of substitution (or in the case of a substitution of more than one Mortgage Loan
for a Deleted Mortgage Loan, an aggregate outstanding principal balance, after such deduction), not in excess of the Stated Principal Balance of the Deleted Mortgage Loan (the amount of any shortfall to be deposited by the Seller, in the Custodial
Account in the month of substitution); (ii) have a Mortgage Rate and a Net Mortgage Rate no lower than and not more than 1% per annum higher than the Mortgage Rate and Net Mortgage Rate, respectively, of the Deleted Mortgage Loan as of the
date of substitution; (iii) have a Loan-to-Value Ratio at the time of substitution no higher than that of the Deleted Mortgage Loan at the time of substitution; (iv) have a remaining term to 
  

 36 

 stated maturity not greater than (and not more than one year less than) that of the Deleted Mortgage Loan;
(v) comply with each representation and warranty set forth in Sections 2.03 and 2.04 and Section 4 of the Assignment Agreement (other than the representations and warranties set forth therein with respect to the number of loans (including
the related percentage) in excess of zero which meet or do not meet a specified criteria); (vi) not be 30 days or more Delinquent; (vii) not be subject to the requirements of HOEPA (as defined in the Assignment Agreement); (viii) have
a policy of title insurance, in the form and amount that is in material compliance with the Program Guide, that was effective as of the closing of such Mortgage Loan, is valid and binding, and remains in full force and effect, unless the Mortgage
Property is located in the State of Iowa where an attorney’s certificate has been provided as described in the Program Guide; (ix) if the Deleted Loan is not a Balloon Loan, not be a Balloon Loan; (x) have a Mortgage Rate that adjusts
with the same frequency and based upon the same Index as that of the Deleted Mortgage Loan; (xi) have a Note Margin not less than that of the Deleted Mortgage Loan; (xii) have a Periodic Rate Cap that is equal to that of the Deleted
Mortgage Loan; and (xiii) have a next Adjustment Date no later than that of the Deleted Mortgage Loan. 
  
 Rating Agency: Each of Standard & Poor’s and Moody’s. If any agency or a successor is no longer in existence, “Rating
Agency” shall be such statistical credit rating agency, or other comparable Person, designated by the Depositor, notice of which designation shall be given to the Trustee and the Master Servicer. 
  
 Realized Loss: With respect to each Mortgage Loan (or REO Property) as
to which a Cash Liquidation or REO Disposition has occurred, an amount (not less than zero) equal to (i) the Stated Principal Balance of the Mortgage Loan (or REO Property) as of the date of Cash Liquidation or REO Disposition, plus
(ii) interest (and REO Imputed Interest, if any) at the Net Mortgage Rate from the Due Date as to which interest was last paid or advanced to Certificateholders up to the last day of the month in which the Cash Liquidation (or REO Disposition)
occurred on the Stated Principal Balance of such Mortgage Loan (or REO Property) outstanding during each Due Period that such interest was not paid or advanced, minus (iii) the proceeds, if any, received during the month in which such Cash
Liquidation (or REO Disposition) occurred, to the extent applied as recoveries of interest at the Net Mortgage Rate and to principal of the Mortgage Loan, net of the portion thereof reimbursable to the Master Servicer or any Subservicer with respect
to related Advances, Servicing Advances or other expenses as to which the Master Servicer or Subservicer is entitled to reimbursement thereunder but which have not been previously reimbursed. With respect to each Mortgage Loan which is the subject
of a Servicing Modification, (a) (1) the amount by which the interest portion of a Monthly Payment or the principal balance of such Mortgage Loan was reduced or (2) the sum of any other amounts owing under the Mortgage Loan that were
forgiven and that constitute Servicing Advances that are reimbursable to the Master Servicer or a Subservicer, and (b) any such amount with respect to a Monthly Payment that was or would have been due in the month immediately following the
month in which a Principal Prepayment or the Purchase Price of such Mortgage Loan is received or is deemed to have been received. With respect to each Mortgage Loan which has become the subject of a Deficient Valuation, the difference between the
principal balance of the Mortgage Loan outstanding immediately prior to such Deficient Valuation and the principal balance of the Mortgage Loan as reduced by the Deficient Valuation. With respect to each Mortgage Loan which has become the object of
a Debt Service Reduction, the amount of such Debt Service Reduction. Notwithstanding the above, neither a Deficient 
  

 37 

 Valuation nor a Debt Service Reduction shall be deemed a Realized Loss hereunder so long as the Master Servicer has
notified the Trustee in writing that the Master Servicer is diligently pursuing any remedies that may exist in connection with the representations and warranties made regarding the related Mortgage Loan and either (A) the related Mortgage Loan
is not in default with regard to payments due thereunder or (B) delinquent payments of principal and interest under the related Mortgage Loan and any premiums on any applicable primary hazard insurance policy and any related escrow payments in
respect of such Mortgage Loan are being advanced on a current basis by the Master Servicer or a Subservicer, in either case without giving effect to any Debt Service Reduction. 
  
 Realized Losses allocated to the Class SB Certificates shall be allocated first to the REMIC II Regular Interest SB-IO in
reduction of the accrued but unpaid interest thereon until such accrued and unpaid interest shall have been reduced to zero and then to the REMIC II Regular Interest SB-PO in reduction of the Principal Balance thereof. 
  
 To the extent the Master Servicer receives Subsequent Recoveries with respect
to any Mortgage Loan, the amount of the Realized Loss with respect to that Mortgage Loan will be reduced to the extent such recoveries are applied to reduce the Certificate Principal Balance of any Class of Certificates on any Distribution Date.

  
 Record Date: With respect to each Distribution Date and
the LIBOR Certificates, the Business Day immediately preceding such Distribution Date. With respect to each Distribution Date and the Certificates (other than the LIBOR Certificates), the close of business on the last Business Day of the month next
preceding the month in which the related Distribution Date occurs, except in the case of the first Record Date which shall be the Closing Date. 
  
 Reference Bank Rate: As defined in Section 1.02. 
  
 Regular Certificates: The Class A Certificates, Class M Certificates, Class B Certificates and Class SB Certificates. 
  
 Regulation AB: Subpart 229.1100 – Asset Backed Securities
(Regulation AB), 17 C.F.R. §§229.1100-229.1123, as such may be amended from time to time, and subject to such clarification and interpretation as have been provided by the Commission in the adopting release (Asset-Backed Securities,
Securities Act Release No. 33-8518, 70 Fed. Reg. 1,506, 1,531 (January 7, 2005)) or by the staff of the Commission, or as may be provided by the Commission or its staff from time to time. 
  
 Relief Act: The Servicemembers Civil Relief Act, formerly known as the
Soldiers’ and Sailors’ Civil Relief Act of 1940. 
  
 Relief Act Shortfalls: Interest shortfalls on the Mortgage Loans resulting from the Relief Act or similar legislation or regulations. 
  
 REMIC: A “real estate mortgage investment conduit” within the meaning of Section 860D of the Code. As used herein, the term
“REMIC” shall mean REMIC I or REMIC II. 
  

 38 

 REMIC Administrator: [REMIC ADMINISTRATOR]. If [REMIC ADMINISTRATOR] is found by a court of
competent jurisdiction to no longer be able to fulfill its obligations as REMIC Administrator under this Agreement the Master Servicer or Trustee acting as successor Master Servicer shall appoint a successor REMIC Administrator, subject to
assumption of the REMIC Administrator obligations under this Agreement. 
  
 REMIC Interest Amount: For any Distribution Date and each Class of Class A Certificates, Class M Certificates and Class B Certificates, the Accrued Certificate Interest for such Class reduced by the portion thereof attributable
to the excess, if any, of the related Pass-Through Rate for such Distribution Date over the related REMIC Net WAC Rate for such Distribution Date. 
  
 REMIC Net WAC Rate: For any Distribution Date, a per annum rate equal to the weighted average of the Net Mortgage Rates (or, if applicable, the
Modified Net Mortgage Rates) on the Mortgage Loans using the Net Mortgage Rates in effect for the Monthly Payments due on such Mortgage Loans during the related Due Period, weighted on the basis of the respective Stated Principal Balances thereof
for such Distribution Date and (ii) a fraction equal to 30 divided by the actual number of days in the related Interest Accrual Period. 
  
 REMIC I: The segregated pool of assets subject hereto, constituting a portion of the primary trust created hereby and to be administered
hereunder, exclusive of the Hedge Agreement, which are not assets of any REMIC, with respect to which a separate REMIC election is to be made, consisting of: 
  

(i) the Mortgage Loans and the related Mortgage Files; 
  
 (ii) all payments on and collections in respect of the Mortgage Loans due after the Cut-off Date (other than
Monthly Payments due in the month of the Cut-off Date) as shall be on deposit in the Custodial Account or in the Certificate Account and identified as belonging to the Trust Fund; 
  
 (iii) property which secured a Mortgage Loan and which has been acquired for the benefit of the
Certificateholders by foreclosure or deed in lieu of foreclosure; 
  
 (iv) the hazard insurance policies and Primary Insurance Policies pertaining to the Mortgage Loans, if any; and 
  
 (v) all proceeds of clauses (i) through (iv) above. 
  
 REMIC I Distribution Amount: For any Distribution Date, the Available Distribution Amount shall be distributed
to the REMIC I Regular Interests and the Class R-I Certificates in the following amounts and priority: 
  
 (i) to the extent of the Available Distribution Amount, to REMIC II as the holder of REMIC I Regular Interests LT1, LT2, LT3 and LT4, pro
rata, in an amount equal to (A) their Uncertificated Accrued Interest for such Distribution Date, plus (B) any amounts in respect thereof remaining unpaid from previous Distribution Dates; and 
  

 39 

 (ii) to the extent of the Available Distribution Amount remaining after the distributions
made pursuant to clause (i) above, to REMIC II as the holder of the REMIC I Regular Interests, in an amount equal to: 
  
 (A) in respect of the REMIC I Regular Interests LT2, LT3 and LT4, their respective Principal Distribution Amounts; 
  
 (B) in respect of the REMIC I Regular Interest LT1 any
remainder until the Uncertificated Principal Balance thereof is reduced to zero; 
  
 (C) any remainder in respect of the REMIC I Regular Interests LT2, LT3 and LT4, pro rata according to their respective Uncertificated
Principal Balances as reduced by the distributions deemed made pursuant to (A) above, until their respective Uncertificated Principal Balances are reduced to zero; and 
  
 (iii) any remaining amounts to the Holders of the Class R-I Certificates. 
  
 REMIC I Principal Reduction Amounts: For any Distribution Date,
the amounts by which the principal balances of the REMIC I Regular Interests LT1, LT2, LT3 and LT4, respectively, will be reduced on such Distribution Date by the allocation of Realized Losses and the distribution of principal, determined as
follows: 
  
 For purposes of the succeeding formulas the following
symbols shall have the meanings set forth below: 
  
 Y1 = the aggregate principal balance of the REMIC I Regular Interest LT1 after distributions on the
prior Distribution Date. 
  
 Y2 = the principal balance of the REMIC I Regular Interest LT2 after distributions on the prior Distribution Date. 
  
 Y3 = the principal balance of the REMIC I Regular Interest LT3 after distributions on the prior Distribution Date. 
  
 Y4 = the principal balance of the REMIC I Regular Interest LT4 after distributions on the prior Distribution Date (note: Y3 = Y4).

  
 DY1 = the REMIC I Regular Interest LT1 Principal
Reduction Amount. 
  
 DY2 = the REMIC I Regular Interest LT2 Principal
Reduction Amount. 
  
 DY3 = the REMIC I Regular Interest LT3 Principal
Reduction Amount. 
  
 DY4 = the REMIC I Regular Interest LT4 Principal
Reduction Amount. 
  
 P0 = the aggregate principal balance of the REMIC I Regular Interests LT1, LT2, LT3 and LT4 after distributions and the allocation of Realized
Losses on the prior Distribution Date. 
  

 40 

 P1 = the aggregate principal balance of the REMIC I Regular Interests LT1, LT2, LT3 and LT4 after distributions and the allocation of Realized Losses to be made on such Distribution Date.

  
 DP = P0 - P1 = the aggregate of the REMIC I Regular Interests LT1, LT2, LT3 and LT4 Principal Reduction Amounts. 
  
 = the aggregate of the principal portions of Realized Losses to be allocated
to, and the principal distributions to be made on, the Certificates on such Distribution Date (including distributions of accrued and unpaid interest on the Class SB Certificates for prior Distribution Dates). 
  
 R0 = the Net WAC Cap Rate (stated as a monthly rate) after giving effect to amounts distributed and Realized Losses allocated on the prior Distribution Date.

  
 R1 = the Net WAC Cap Rate (stated as a monthly rate) after giving effect to amounts to be distributed and Realized Losses to be allocated on such Distribution
Date. 
  
 a = (Y2 + Y3)/P0. The initial value of
a on the Closing Date for use on the first Distribution Date shall be 0.0001. 
  
 g0 = the lesser of (A) the sum for all Classes of Certificates, other than the
Class SB Certificates, of the product for each Class of (i) the monthly interest rate (as limited by the REMIC Net WAC Rate, if applicable) for such Class applicable for distributions to be made on such Distribution Date and (ii) the
aggregate Certificate Principal Balance for such Class after distributions and the allocation of Realized Losses on the prior Distribution Date and (B) R0*P0. 
  
 g1 = the lesser of (A) the sum for all Classes of Certificates, other than the Class SB Certificates, of the product for each
Class of (i) the monthly interest rate (as limited by the REMIC Net WAC Rate, if applicable) for such Class applicable for distributions to be made on the next succeeding Distribution Date and (ii) the aggregate Certificate Principal
Balance for such Class after distributions and the allocation of Realized Losses to be made on such Distribution Date and (B) R1*P1. 
  
 Then, based on the foregoing definitions: 
  
 DY1 = DP - DY2 - DY3 - DY4; 

 
 DY2 = (a/2){( g0R1 - g1R0)/R0R1}; 
  
 DY3 = aDP - DY2; and 
  
 DY4 = DY3. 
  

 41 

 if both DY2 and DY3, as so determined, are non-negative numbers. Otherwise: 
  
 (1) If DY2, as so determined, is negative, then 
  
 DY2 = 0; 
  
 DY3 = a{g1R0P0 - g0R1P1}/{g1R0}; 
  
 DY4 =
DY3; and 
  
 DY1 = DP - DY2 - DY3 - DY4. 
  
 (2) If DY3, as so determined, is negative, then 
  
 DY3 = 0; 
  
 DY2 = a{g1R0P0 - g0R1P1}/{2R1R0P1 - g1R0}; 
  
 DY4 = DY3; and 
  
 DY1 = DP - DY2 - DY3 - DY4. 

 
 REMIC I Realized Losses: Realized Losses on the Mortgage Loans
shall be allocated to the REMIC I Regular Interests as follows: The interest portion of Realized Losses on the Mortgage Loans, if any, shall be allocated among the REMIC I Regular Interests LT1, LT2 and LT4 pro rata according to the amount of
interest accrued but unpaid thereon, in reduction thereof. Any interest portion of such Realized Losses in excess of the amount allocated pursuant to the preceding sentence shall be treated as a principal portion of Realized Losses not attributable
to any specific Mortgage Loan and allocated pursuant to the succeeding sentences. The principal portion of Realized Losses on the Mortgage Loans, if any, shall be allocated first, to the REMIC I Regular Interests LT2, LT3 and LT4 pro rata according
to their respective Principal Reduction Amounts to the extent thereof in reduction of the Uncertificated Principal Balance of such REMIC I Regular Interests and, second, the remainder, if any, of such principal portion of such Realized Losses shall
be allocated to the REMIC I Regular Interest LT1 in reduction of the Uncertificated Principal Balance thereof. 
  
 REMIC I Regular Interests: REMIC I Regular Interest LT1, REMIC II Regular Interest LT2, REMIC II Regular Interest LT3 and REMIC II
Regular Interest LT4. 
  
 REMIC I Regular Interest
LT1: A regular interest in REMIC I that is held as an asset of REMIC II, that has an initial principal balance equal to the related Uncertificated Principal Balance, that bears interest at the related Uncertificated REMIC I
Pass-Through Rate, and that has such other terms as are described herein. 
  
 REMIC I Regular Interest LT1 Principal Distribution Amount: For any Distribution Date, the excess, if any, of the REMIC I Regular Interest LT1 Principal Reduction Amount for such Distribution Date
over the Realized Losses allocated to the REMIC I Regular Interest LT1 on such Distribution Date. 
  
 REMIC I Regular Interest LT2: A regular interest in REMIC I that is held as an asset of REMIC II, that has an initial principal balance
equal to the related Uncertificated Principal Balance, that bears interest at the related Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are described herein. 
  

 42 

 REMIC I Regular Interest LT2 Principal Distribution Amount: For any Distribution Date, the
excess, if any, of the REMIC I Regular Interest LT2 Principal Reduction Amount for such Distribution Date over the Realized Losses allocated to the REMIC I Regular Interest LT2 on such Distribution Date. 
  
 REMIC I Regular Interest LT3: A regular interest in REMIC II that
is held as an asset of REMIC II, that has an initial principal balance equal to the related Uncertificated Principal Balance, that bears interest at the related Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are
described herein. 
  
 REMIC I Regular Interest LT3
Principal Distribution Amount: For any Distribution Date, the excess, if any, of the REMIC I Regular Interest LT3 Principal Reduction Amount for such Distribution Date over the Realized Losses allocated to the REMIC I Regular Interest
LT3 on such Distribution Date. 
  
 REMIC I Regular
Interest LT4: A regular interest in REMIC II that is held as an asset of REMIC II, that has an initial principal balance equal to the related Uncertificated Principal Balance, that bears interest at the related Uncertificated REMIC I
Pass-Through Rate, and that has such other terms as are described herein. 
  
 REMIC I Regular Interest LT4 Principal Distribution Amount: For any Distribution Date, the excess, if any, of the REMIC I Regular Interest LT4 Principal Reduction Amount for such Distribution Date
over the Realized Losses allocated to the REMIC I Regular Interest LT4 on such Distribution Date. 
  
 REMIC II: The segregated pool of assets subject hereto, constituting a portion of the primary trust created hereby and to be administered
hereunder, with respect to which a separate REMIC election is to be made, consisting of the REMIC I Regular Interests. 
  
 REMIC II Regular Interest SB-PO: A separate non-certificated beneficial ownership interest in REMIC II issued hereunder and designated as a REMIC
II Regular Interest. REMIC II Regular Interest SB-PO shall have no entitlement to interest, and shall be entitled to distributions of principal subject to the terms and conditions hereof, in aggregate amount equal to the initial Certificate
Principal Balance of the Class SB Certificates as set forth in the Preliminary Statement hereto. 
  
 REMIC II Regular Interest SB-IO: A separate non-certificated beneficial ownership interest in REMIC II issued hereunder and designated as a REMIC
II Regular Interest. REMIC II Regular Interest SB-IO shall have no entitlement to principal, and shall be entitled to distributions of interest subject to the terms and conditions hereof, in aggregate amount equal to the interest distributable with
respect to the Class SB Certificates pursuant to the terms and conditions hereof. 
  
 REMIC II Regular Interests: REMIC II Regular Interests SB-IO and SB-PO, together with the regular interests in REMIC II represented by the Class A Certificates, Class M Certificates and Class B
Certificates exclusive of the rights of such Certificates to payments of Basis Risk Shortfall Amounts and to payments derived from the Hedge Agreement. 
  

 43 

 REMIC Provisions: Provisions of the federal income tax law relating to real estate mortgage
investment conduits, which appear at Sections 860A through 860G of Subchapter M of Chapter 1 of the Code, and related provisions, and temporary and final regulations (or, to the extent not inconsistent with such temporary or final regulations,
proposed regulations) and published rulings, notices and announcements promulgated thereunder, as the foregoing may be in effect from time to time. 
  
 REO Acquisition: The acquisition by the Master Servicer on behalf of the Trustee for the benefit of the Certificateholders of any REO Property
pursuant to Section 3.14. 
  
 REO Disposition: With
respect to any REO Property, a determination by the Master Servicer that it has received substantially all Insurance Proceeds, Liquidation Proceeds, REO Proceeds and other payments and recoveries (including proceeds of a final sale) which the Master
Servicer expects to be finally recoverable from the sale or other disposition of the REO Property. 
  
 REO Imputed Interest: With respect to any REO Property, for any period, an amount equivalent to interest (at a rate equal to the Net Mortgage Rate
that would have been applicable to the related Mortgage Loan had it been outstanding) on the unpaid principal balance of the Mortgage Loan as of the date of acquisition thereof for such period. 
  
 REO Proceeds: Proceeds, net of expenses, received in respect of any
REO Property (including, without limitation, proceeds from the rental of the related Mortgaged Property) which proceeds are required to be deposited into the Custodial Account only upon the related REO Disposition. 
  
 REO Property: A Mortgaged Property acquired by the Master Servicer on
behalf of the Trust Fund for the benefit of the Certificateholders through foreclosure or deed in lieu of foreclosure in connection with a defaulted Mortgage Loan. 
  
 Reportable Modified Mortgage Loan: Any Mortgage Loan that (a) has been subject to an interest rate reduction,
(b) has been subject to a term extension or (c) has had amounts owing on such Mortgage Loan capitalized by adding such amount to the Stated Principal Balance of such Mortgage Loan; provided, however, that a Mortgage Loan
modified in accordance with (a) above for a temporary period shall not be a Reportable Modified Mortgage Loan if such Mortgage Loan has not been delinquent in payments of principal and interest for six months since the date of such modification
if that interest rate reduction is not made permanent thereafter. 
  
 Repurchase Event: As defined in the Assignment Agreement. 
  
 Request for Release: A request for release, the form of which is attached as Exhibit G hereto, or an electronic request in a form acceptable to the Custodian. 
  

 44 

 Required Insurance Policy: With respect to any Mortgage Loan, any insurance policy which is
required to be maintained from time to time under this Agreement, the Program Guide or the related Subservicing Agreement in respect of such Mortgage Loan. 
  
 Required Overcollateralization Amount: With respect to any Distribution Date, an amount equal to the Overcollateralization Floor. The Required
Overcollateralization Amount may be reduced so long as written confirmation is obtained from each Rating Agency that such reduction shall not reduce the ratings assigned to any Class of Certificates by such Rating Agency below the lower of the then
current rating or the rating assigned to such Certificates as of the Closing Date by such Rating Agency. 
  
 Responsible Officer: When used with respect to the Trustee, any officer of the Corporate Trust Department of the Trustee, including any Senior Vice
President, any Vice President, any Assistant Vice President, any Assistant Secretary, any Trust Officer or Assistant Trust Officer, or any other officer of the Trustee, in each case, with direct responsibility for the administration of this
Agreement. 
  
 Rule 144A: Rule 144A under the Securities
Act of 1933, as in effect from time to time. 
  
 Securitization
Transaction: Any transaction involving a sale or other transfer of mortgage loans directly or indirectly to an issuing in connection with an issuance of publicly offered or privately placed, rated or unrated mortgage-backed securities.

  
 Seller: With respect to any Mortgage Loan, a Person,
including any Subservicer, that executed a Seller’s Agreement applicable to such Mortgage Loan. 
  
 Seller’s Agreement: An agreement for the origination and sale of Mortgage Loans generally in the form of the seller contract referred to or
contained in the Program Guide, or in such other form as has been approved by the Master Servicer and the Depositor. 
  
 Senior Enhancement Percentage: For any Distribution Date, the fraction, expressed as a percentage, the numerator of which is the sum of
(i) the aggregate Certificate Principal Balance of the Class M Certificates and Class B Certificates and (ii) the Overcollateralization Amount, in each case prior to the distribution of the Principal Distribution Amount on such
Distribution Date and the denominator of which is the aggregate Stated Principal Balance of the Mortgage Loans after giving effect to distributions to be made on that Distribution Date. 
  
 Servicing Accounts: The account or accounts created and maintained pursuant to Section 3.08. 
  
 Servicing Advances: All customary, reasonable and necessary “out
of pocket” costs and expenses incurred in connection with a default, delinquency or other unanticipated event by the Master Servicer or a Subservicer in the performance of its servicing obligations, including, but not limited to, the cost of
(i) the preservation, restoration and protection of a Mortgaged Property or, with respect to a cooperative loan, the related cooperative apartment, (ii) any enforcement or judicial proceedings, including foreclosures, including any
expenses incurred in relation to any such proceedings that result from the Mortgage Loan being registered on the MERS® System, (iii) the management and liquidation of any REO Property, (iv) any mitigation procedures 
  

 45 

 implemented in accordance with Section 3.07, and (v) compliance with the obligations under Sections 3.01, 3.08,
3.11, 3.12(a) and 3.14, including, if the Master Servicer or any Affiliate of the Master Servicer provides services such as appraisals and brokerage services that are customarily provided by Persons other than servicers of mortgage loans, reasonable
compensation for such services. 
  
 Servicing Fee: With
respect to any Mortgage Loan and Distribution Date, the fee payable monthly to the Master Servicer in respect of master servicing compensation that accrues at an annual rate equal to the Servicing Fee Rate multiplied by the Stated Principal Balance
of such Mortgage Loan as of the related Due Date in the related Due Period, as may be adjusted pursuant to Section 3.16(e). 
  
 Servicing Fee Rate: With respect to any Mortgage Loan, the per annum rate designated on the Mortgage Loan Schedule as the “MSTR SERV
FEE,” as may be adjusted with respect to successor Master Servicers as provided in Section 7.02, which rate shall never be greater than the Mortgage Rate of such Mortgage Loan. 
  
 Servicing Modification: Any reduction of the interest rate on or the outstanding principal balance of a Mortgage
Loan, any extension of the final maturity date of a Mortgage Loan, and any increase to the Stated Principal Balance of a Mortgage Loan by adding to the Stated Principal Balance unpaid principal and interest and other amounts owing under the Mortgage
Loan, in each case pursuant to a modification of a Mortgage Loan that is in default, or for which, in the judgment of the Master Servicer, default is reasonably foreseeable in accordance with Section 3.07(a). 
  
 Servicing Officer: Any officer of the Master Servicer involved in, or
responsible for, the administration and servicing of the Mortgage Loans whose name and specimen signature appear on a list of servicing officers furnished to the Trustee by the Master Servicer on the Closing Date, as such list may from time to time
be amended. 
  
 [SG Exemption: As defined in
Section 5.02(e)(ii).] 
  
 Sixty-Plus Delinquency
Percentage: With respect to any Distribution Date and the Mortgage Loans, the arithmetic average, for each of the three Distribution Dates ending with such Distribution Date, of the fraction, expressed as a percentage, equal to (x) the
aggregate Stated Principal Balance of the Mortgage Loans that are 60 or more days delinquent in payment of principal and interest for that Distribution Date, including Mortgage Loans in foreclosure and REO, over (y) the aggregate Stated
Principal Balance of all of the Mortgage Loans immediately preceding that Distribution Date. 
  
 Standard & Poor’s: Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. or its successors in interest. 
  
 Startup Date: The day designated as such pursuant to Article X.

  
 Stated Principal Balance: With respect to any Mortgage
Loan or related REO Property, at any given time, (i) the sum of (a) the Cut-off Date Principal Balance of the Mortgage Loan and (b) any amount by which the Stated Principal Balance of the Mortgage Loan has been 
  

 46 

 increased pursuant to a Servicing Modification, minus (ii) the sum of (a) the principal portion of the Monthly
Payments due with respect to such Mortgage Loan or REO Property during each Due Period ending with the Due Period relating to the most recent Distribution Date which were received or with respect to which an Advance was made, (b) all Principal
Prepayments with respect to such Mortgage Loan or REO Property, and all Insurance Proceeds, Liquidation Proceeds and REO Proceeds, to the extent applied by the Master Servicer as recoveries of principal in accordance with Section 3.14 with
respect to such Mortgage Loan or REO Property, in each case which were distributed pursuant to Section 4.02 on any previous Distribution Date, and (c) any Realized Loss incurred with respect to such Mortgage Loan allocated to
Certificateholders with respect thereto for any previous Distribution Date. 
  
 Stepdown Date: That Distribution Date which is the earlier to occur of (a) the Distribution Date immediately succeeding the Distribution Date on which the aggregate Certificate Principal Balance of the
Class A Certificates has been reduced to zero and (b) the later to occur of (i) the Distribution Date in [MONTH] and (ii) the first Distribution Date on which the Senior Enhancement Percentage is equal to or greater than
[            ]% 
  
 Subordination: The provisions described in Section 4.05 relating to the allocation of Realized Losses. 
  
 Subordination Percentage: With respect to each Class of Class A Certificates, Class M Certificates and Class B Certificates, the respective
percentage set forth below. 
  

			
	 Class

	    	 Percentage

	A	    	xx.xx%
	M-1	    	xx.xx%
	M-2	    	xx.xx%
	M-3	    	xx.xx%
	M-4	    	xx.xx%
	M-5	    	xx.xx%
	M-6	    	xx.xx%
	M-7	    	xx.xx%
	M-8	    	xx.xx%
	M-9	    	xx.xx%
	M-10	    	xx.xx%
	B-1	    	xx.xx%
	B-2	    	xx.xx%
	B-3	    	xx.xx%
	B-4	    	xx.xx%

  
 Subsequent
Recoveries: As of any Distribution Date, amounts received by the Master Servicer (net of any related expenses permitted to be reimbursed pursuant to Section 3.10) or surplus amounts held by the Master Servicer to cover estimated expenses
(including, but not limited to, recoveries in respect of the representations and warranties made by the Seller pursuant to the applicable Seller’s Agreement and assigned to the Trustee pursuant to Section 2.04) specifically related to a
Mortgage Loan that was the subject of a Cash Liquidation or an REO Disposition prior to the related Prepayment Period and that resulted in a Realized Loss. 
  

 47 

 Subserviced Mortgage Loan: Any Mortgage Loan that, at the time of reference thereto, is subject to
a Subservicing Agreement. 
  
 Subservicer: Any Person with
whom the Master Servicer has entered into a Subservicing Agreement and who generally satisfied the requirements set forth in the Program Guide in respect of the qualification of a Subservicer as of the date of its approval as a Subservicer by the
Master Servicer. 
  
 Subservicer Advance: Any delinquent
installment of principal and interest on a Mortgage Loan which is advanced by the related Subservicer (net of its Subservicing Fee) pursuant to the Subservicing Agreement. 
  
 Subservicing Account: An account established by a Subservicer in accordance with Section 3.08. 
  
 Subservicing Agreement: The written contract between the Master
Servicer and any Subservicer relating to servicing and administration of certain Mortgage Loans as provided in Section 3.02, generally in the form of the servicer contract referred to or contained in the Program Guide or in such other form as
has been approved by the Master Servicer and the Depositor. 
  
 Subservicing Fee: With respect to any Mortgage Loan, the fee payable monthly to the related Subservicer (or, in the case of a Nonsubserviced Mortgage Loan, to the Master Servicer) in respect of subservicing and other compensation
that accrues with respect to each Distribution Date at an annual rate designated as “SUBSERV FEE” on the Mortgage Loan Schedule. 
  
 Tax Returns: The federal income tax return on Internal Revenue Service Form 1066, U.S. Real Estate Mortgage Investment Conduit Income Tax Return,
including Schedule Q thereto, Quarterly Notice to Residual Interest Holders of REMIC Taxable Income or Net Loss Allocation, or any successor forms, to be filed on behalf of any REMIC hereunder due to its classification as a REMIC under the
REMIC Provisions, together with any and all other information, reports or returns that may be required to be furnished to the Certificateholders or filed with the Internal Revenue Service or any other governmental taxing authority under any
applicable provisions of federal, state or local tax laws. 
  
 Telerate Screen Page 3750: As defined in Section 1.02. 
  
 Transaction Party: As specified in Section 12.02(a). 
  
 Transfer: Any direct or indirect transfer, sale, pledge, hypothecation or other form of assignment of any Ownership Interest in a Certificate.

  
 Transfer Affidavit and Agreement: As defined in
Section 5.02(e). 
  

 48 

 Transferee: Any Person who is acquiring by Transfer any Ownership Interest in a Certificate.

  
 Transferor: Any Person who is disposing by Transfer of
any Ownership Interest in a Certificate. 
  
 Trigger Event:
A Trigger Event is in effect with respect to any Distribution Date on or after the Stepdown Date if either (a) the product of [            ] and the Sixty-Plus Delinquency
Percentage, as determined on that Distribution Date, equals or exceeds the Senior Enhancement Percentage for that Distribution Date or (b) on or after the Distribution Date in [MONTH], the aggregate amount of Realized Losses on the Mortgage
Loans as a percentage of the Cut-Off Date Balance exceeds the applicable amount set forth below: 
  

			
	[MONTH] to [MONTH]:	  	xx.xx% with respect to [MONTH], plus an additional x/x of [            ]% for each month thereafter.
		
	[MONTH] to [MONTH]:	  	xx.xx% with respect to [MONTH], plus an additional x/x of [            ]% for each month thereafter.
		
	[MONTH] to [MONTH]:	  	xx.xx% with respect to [MONTH], plus an additional x/x of [            ]% for each month thereafter.
		
	[MONTH] and thereafter:	  	xx.xx%.

  
 Trustee: As
defined in the preamble hereto. 
  
 Trustee Information: As
specified in Section 12.02(a)(i)(A). 
  
 Trust Fund:
The segregated pool of assets subject hereto, consisting of: (i) the Mortgage Loans and the related Mortgage Files; (ii) all payments on and collections in respect of the Mortgage Loans due after the Cut-off Date (other than Monthly
Payments due in the month of the Cut-off Date) as shall be on deposit in the Custodial Account or in the Certificate Account and identified as belonging to the Trust Fund; (iii) property which secured a Mortgage Loan and which has been acquired
for the benefit of the Certificateholders by foreclosure or deed in lieu of foreclosure; (iv) the hazard insurance policies and Primary Insurance Policies pertaining to the Mortgage Loans, if any; and (v) all proceeds of clauses
(i) through (iv) above. 
  
 Uncertificated Accrued
Interest: With respect to any REMIC I Regular Interest for any Distribution Date, one month’s interest at the related Uncertificated REMIC I Pass-Through Rate for such Distribution Date, accrued on its Uncertificated Principal Balance
immediately prior to such Distribution Date. Uncertificated Accrued Interest for the REMIC I Regular Interests shall accrue on the basis of a 360-day year consisting of twelve 30-day months. For purposes of calculating the amount of Uncertificated
Accrued Interest for the REMIC I Regular Interests for 
  

 49 

 any Distribution Date, any Prepayment Interest Shortfalls and Relief Act Shortfalls (to the extent not covered by
Compensating Interest) relating to the Mortgage Loans for any Distribution Date shall be allocated among REMIC I Regular Interests LT1, LT2, LT3 and LT4 pro rata, based on, and to the extent of, Uncertificated Accrued Interest, as calculated without
application of this sentence. Uncertificated Accrued Interest on REMIC II Regular Interest SB-PO shall be zero. Uncertificated Accrued Interest on REMIC II Regular Interest SB-IO for each Distribution Date shall equal Accrued Certificate
Interest for the Class SB Certificates. 
  
 Uncertificated
Principal Balance: The principal amount of any REMIC I Regular Interest outstanding as of any date of determination. The Uncertificated Principal Balance of each REMIC I Regular Interest shall never be less than zero. With respect to the REMIC
II Regular Interest SB-PO the initial amount set forth with respect thereto in the Preliminary Statement as reduced by distributions deemed made in respect thereof pursuant to Section 4.02 and Realized Losses allocated thereto pursuant to
Section 4.05. 
  
 Uncertificated REMIC I Pass-Through
Rate: With respect to any Distribution Date and (i) REMIC I Regular Interests LT1 and LT2, the weighted average of the Net Mortgage Rates of the Mortgage Loans, (ii) REMIC I Regular Interest LT3, zero (0.00%), and (iii) REMIC I
Regular Interest LT4, twice the weighted average of the Net Mortgage Rates of the Mortgage Loans. 
  
 Uninsured Cause: Any cause of damage to property subject to a Mortgage such that the complete restoration of such property is not fully
reimbursable by the hazard insurance policies. 
  
 United
States Person: A citizen or resident of the United States, a corporation, partnership or other entity (treated as a corporation or partnership for United States federal income tax purposes) created or organized in, or under the laws of, the
United States, any state thereof, or the District of Columbia (except in the case of a partnership, to the extent provided in Treasury regulations) provided that, for purposes solely of the restrictions on the transfer of Class R
Certificates, no partnership or other entity treated as a partnership for United States federal income tax purposes shall be treated as a United States Person unless all persons that own an interest in such partnership either directly or through any
entity that is not a corporation for United States federal income tax purposes are required by the applicable operative agreement to be United States Persons, or an estate that is described in Section 7701(a)(30)(D) of the Code, or a trust that
is described in Section 7701(a)(30)(E) of the Code. 
  
 Voting Rights: The portion of the voting rights of all of the Certificates which is allocated to any Certificate. [            ]% of all of the Voting Rights shall be
allocated among Holders of the Class A Certificates, Class M Certificates and Class B Certificates, in proportion to the outstanding Certificate Principal Balances of their respective Certificates;
[            ]% of all of the Voting Rights shall be allocated to the Holders of the Class SB Certificates; and
[            ]% of all of the Voting Rights shall be allocated to each of the Holders of the Class R-I Certificates and the Class R-II Certificates; in each case to be allocated
among the Certificates of such Class in accordance with their respective Percentage Interests. 
  
 Weighted Average Maximum Net Mortgage Rate: For any Distribution Date, the weighted average of the Maximum Net Mortgage Rates of the adjustable-rate Mortgage Loans, or Net Mortgage Rates in the case of the
fixed-rate Mortgage Loans, multiplied by a fraction equal to 30 divided by the actual number of days in the related Interest Accrual Period. 
  

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 Section 1.02 Determination of LIBOR. 
  
 LIBOR applicable to the calculation of the Pass-Through Rate on the LIBOR Certificates for any Interest Accrual Period will
be determined as of each LIBOR Rate Adjustment Date. On each LIBOR Rate Adjustment Date, or if such LIBOR Rate Adjustment Date is not a Business Day, then on the next succeeding Business Day, LIBOR shall be established by the Trustee and, as to any
Interest Accrual Period, will equal the rate for one month United States dollar deposits that appears on the Telerate Screen Page 3750 as of 11:00 a.m., London time, on such LIBOR Rate Adjustment Date. “Telerate Screen Page 3750”
means the display designated as page 3750 on the Bridge Telerate Service (or such other page as may replace page 3750 on that service for the purpose of displaying London interbank offered rates of major banks). If such rate does not appear on such
page (or such other page as may replace that page on that service, or if such service is no longer offered, LIBOR shall be so established by use of such other service for displaying LIBOR or comparable rates as may be selected by the Trustee after
consultation with the Master Servicer), the rate will be the Reference Bank Rate. The “Reference Bank Rate” will be determined on the basis of the rates at which deposits in U.S. Dollars are offered by the reference banks (which shall be
any three major banks that are engaged in transactions in the London interbank market, selected by the Trustee after consultation with the Master Servicer) as of 11:00 a.m., London time, on the LIBOR Rate Adjustment Date to prime banks in the London
interbank market for a period of one month in amounts approximately equal to the aggregate Certificate Principal Balance of the LIBOR Certificates then outstanding. The Trustee shall request the principal London office of each of the reference banks
to provide a quotation of its rate. If at least two such quotations are provided, the rate will be the arithmetic mean of the quotations rounded up to the next multiple of 1/16%. If on such date fewer than two quotations are provided as requested,
the rate will be the arithmetic mean of the rates quoted by one or more major banks in New York City, selected by the Trustee after consultation with the Master Servicer, as of 11:00 a.m., New York City time, on such date for loans in U.S. Dollars
to leading European banks for a period of one month in amounts approximately equal to the aggregate Certificate Principal Balance of the LIBOR Certificates then outstanding. If no such quotations can be obtained, the rate will be LIBOR for the prior
Distribution Date; provided however, if, under the priorities described above, LIBOR for a Distribution Date would be based on LIBOR for the previous Distribution Date for the third consecutive Distribution Date, the Trustee, shall select an
alternative comparable index (over which the Trustee has no control), used for determining one-month Eurodollar lending rates that is calculated and published (or otherwise made available) by an independent party. The establishment of LIBOR by the
Trustee on any LIBOR Rate Adjustment Date and the Trustee’s subsequent calculation of the Pass-Through Rates applicable to the LIBOR Certificates for the relevant Interest Accrual Period, in the absence of manifest error, will be final and
binding. Promptly following each LIBOR Rate Adjustment Date the Trustee shall supply the Master Servicer with the results of its determination of LIBOR on such date. Furthermore, the Trustee shall supply to any Certificateholder so requesting by
calling 1-xxx-xxx-xxxx the Pass-Through Rate on the LIBOR Certificates for the current and the immediately preceding Interest Accrual Period. 
  

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 ARTICLE II 
 CONVEYANCE OF MORTGAGE LOANS; 
 ORIGINAL ISSUANCE OF CERTIFICATES 
  
 Section 2.01 Conveyance of Mortgage Loans. 
  
 (a) The Depositor, concurrently with the execution and delivery hereof, does
hereby assign to the Trustee in respect of the Trust Fund without recourse all the right, title and interest of the Depositor in and to (i) the Mortgage Loans, including all interest and principal on or with respect to the Mortgage Loans due on
or after the Cut-off Date (other than Monthly Payments due in the month of the Cut-off Date); and (ii) all proceeds of the foregoing. 
  
 (b) In connection with such assignment, and contemporaneously with the delivery of this Agreement, the Depositor delivered or caused to be delivered
hereunder to the Trustee, the Hedge Agreement (the delivery of which shall evidence that the fixed payment for the Hedge Agreement have been paid and the Trustee and the Trust Fund shall have no further payment obligation thereunder and that such
fixed payment has been authorized hereby), and except as set forth in Section 2.01(c) below and subject to Section 2.01(d) below, the Depositor does hereby deliver to, and deposit with, the Trustee, or to and with one or more Custodians,
as the duly appointed agent or agents of the Trustee for such purpose, the following documents or instruments (or copies thereof as permitted by this Section) with respect to each Mortgage Loan so assigned: 
  
 (i) The original Mortgage Note, endorsed without recourse to
the order of the Trustee and showing an unbroken chain of endorsements from the originator thereof to the Person endorsing it to the Trustee, or with respect to any Destroyed Mortgage Note, an original lost note affidavit from the Seller stating
that the original Mortgage Note was lost, misplaced or destroyed, together with a copy of the related Mortgage Note; 
  
 (ii) The original Mortgage, noting the presence of the MIN of the Mortgage Loan and language indicating that the Mortgage Loan is a MOM
Loan if the Mortgage Loan is a MOM Loan, with evidence of recording indicated thereon or, if the original Mortgage has not yet been returned from the public recording office, a copy of the original Mortgage with evidence of recording indicated
thereon; 
  
 (iii) Unless the Mortgage Loan is
registered on the MERS® System, the assignment
(which may be included in one or more blanket assignments if permitted by applicable law) of the Mortgage to the Trustee with evidence of recording indicated thereon or a copy of such assignment with evidence of recording indicated thereon;

  
 (iv) The original recorded assignment or
assignments of the Mortgage showing an unbroken chain of title from the originator to the Person assigning it to the Trustee (or to MERS, if the Mortgage Loan is registered on the MERS® System and noting the presence of a MIN) with evidence of recordation noted thereon or
attached thereto, or a copy of such assignment or assignments of the Mortgage with evidence of recording indicated thereon; and 
  
  

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 (v) The original of each modification, assumption agreement or preferred loan agreement,
if any, relating to such Mortgage Loan, or a copy of each modification, assumption agreement or preferred loan agreement. 
  
 The Depositor may, in lieu of delivering the original of the documents set forth in Section 2.01(b)(ii), (iii), (iv) and (v) (or copies
thereof as permitted by Section 2.01(b)) to the Trustee or the Custodian or Custodians, deliver such documents to the Master Servicer, and the Master Servicer shall hold such documents in trust for the use and benefit of all present and future
Certificateholders until such time as is set forth in the next sentence. Within thirty Business Days following the earlier of (i) the receipt of the original of all of the documents or instruments set forth in Section 2.01(b)(ii), (iii),
(iv) and (v) (or copies thereof as permitted by such Section) for any Mortgage Loan and (ii) a written request by the Trustee to deliver those documents with respect to any or all of the Mortgage Loans then being held by the Master
Servicer, the Master Servicer shall deliver a complete set of such documents to the Trustee or the Custodian or Custodians that are the duly appointed agent or agents of the Trustee. 
  
 The Depositor, the Master Servicer and the Trustee agree that it is not intended that any mortgage loan be included in the
Trust Fund that is (i) a “High-Cost Home Loan” as defined in the New Jersey Home Ownership Act effective November 27, 2003, (ii) a “High-Cost Home Loan” as defined in the New Mexico Home Loan Protection Act
effective January 1, 2004, (iii) a “High Cost Home Mortgage Loan” as defined in the Massachusetts Predatory Home Practices Act effective November 7, 2004 or (iv) a “High-Cost Home Loan” as defined in the
Indiana High Cost Home Loan Law effective March 1, 2005. 
  
 (c) Notwithstanding the provisions of Section 2.01(b), in the event that in connection with any Mortgage Loan, if the Depositor cannot deliver the original of the Mortgage, any assignment, modification, assumption agreement or
preferred loan agreement (or copy thereof as permitted by Section 2.01(b)) with evidence of recording thereon concurrently with the execution and delivery of this Agreement because of (i) a delay caused by the public recording office where
such Mortgage, assignment, modification, assumption agreement or preferred loan agreement as the case may be, has been delivered for recordation, or (ii) a delay in the receipt of certain information necessary to prepare the related
assignments, the Depositor shall deliver or cause to be delivered to the Trustee or the respective Custodian a copy of such Mortgage, assignment, modification, assumption agreement or preferred loan agreement. 
  
 The Depositor shall promptly cause to be recorded in the appropriate public
office for real property records the Assignment referred to in clause (iii) of Section 2.01(b), except (a) in states where, in the opinion of counsel acceptable to the Master Servicer, such recording is not required to protect the
Trustee’s interests in the Mortgage Loan or (b) if MERS is identified on the Mortgage or on a properly recorded assignment of the Mortgage, as applicable, as the mortgagee of record solely as nominee for the Seller and its successors and
assigns. If any Assignment is lost or returned unrecorded to the Depositor because of any defect therein, the Depositor shall prepare a substitute Assignment or cure such defect, as the case may be, and cause such Assignment to be recorded in
accordance with this paragraph. The Depositor shall promptly deliver or cause to be delivered to the Trustee or the respective Custodian such Mortgage or Assignment, as applicable (or copy thereof as permitted by Section 2.01(b)), with evidence
of recording indicated thereon upon receipt thereof from the public recording office or from the related Subservicer or Seller. 
  

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 If the Depositor delivers to the Trustee or Custodian any Mortgage Note or Assignment of Mortgage in
blank, the Depositor shall, or shall cause the Custodian to, complete the endorsement of the Mortgage Note and the Assignment of Mortgage in the name of the Trustee in conjunction with the Interim Certification issued by the Custodian, as
contemplated by Section 2.02. 
  
 Any of the items set forth
in Sections 2.01(b)(ii), (iii), (iv) and (v) and that may be delivered as a copy rather than the original may be delivered to the Trustee or the Custodian. 
  
 In connection with the assignment of any Mortgage Loan registered on the MERS® System, the Depositor further agrees that it will cause, at the Depositor’s own
expense, within 30 Business Days after the Closing Date, the MERS® System to indicate that such Mortgage Loans have been assigned by the Depositor to the Trustee in accordance with this Agreement for the benefit of the Certificateholders by including (or deleting, in the case of
Mortgage Loans which are repurchased in accordance with this Agreement) in such computer files (a) the code in the field which identifies the specific Trustee and (b) the code in the field “Pool Field” which identifies the series
of the Certificates issued in connection with such Mortgage Loans. The Depositor further agrees that it will not, and will not permit the Master Servicer to, and the Master Servicer agrees that it will not, alter the codes referenced in this
paragraph with respect to any Mortgage Loan during the term of this Agreement unless and until such Mortgage Loan is repurchased in accordance with the terms of this Agreement. 
  
 (d) It is intended that the conveyances by the Depositor to the Trustee of the Mortgage Loans as provided for in this
Section 2.01 and the Uncertificated Regular Interests be construed as a sale by the Depositor to the Trustee of the Mortgage Loans and the Uncertificated Regular Interests for the benefit of the Certificateholders. Further, it is not intended
that any such conveyance be deemed to be a pledge of the Mortgage Loans and the Uncertificated Regular Interests by the Depositor to the Trustee to secure a debt or other obligation of the Depositor. Nonetheless, (a) this Agreement is intended
to be and hereby is a security agreement within the meaning of Articles 8 and 9 of the New York Uniform Commercial Code and the Uniform Commercial Code of any other applicable jurisdiction; (b) the conveyances provided for in this
Section 2.01 shall be deemed to be (1) a grant by the Depositor to the Trustee of a security interest in all of the Depositor’s right (including the power to convey title thereto), title and interest, whether now owned or hereafter
acquired, in and to (A) the Mortgage Loans, including the related Mortgage Note, the Mortgage, any insurance policies and all other documents in the related Mortgage File, (B) all amounts payable pursuant to the Mortgage Loans in
accordance with the terms thereof, (C) any Uncertificated Regular Interests and any and all general intangibles, payment intangibles, accounts, chattel paper, instruments, documents, money, deposit accounts, certificates of deposit, goods,
letters of credit, advices of credit and investment property and other property of whatever kind or description now existing or hereafter acquired consisting of, arising from or relating to any of the foregoing, and (D) all proceeds of the
conversion, voluntary or involuntary, of the foregoing into cash, instruments, securities or other property, including without limitation all amounts from time to time held or invested in the Certificate Account or the Custodial Account, whether in
the form of cash, instruments, 
  

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 securities or other property and (2) an assignment by the Depositor to the Trustee of any security interest in any
and all of the Seller’s right (including the power to convey title thereto), title and interest, whether now owned or hereafter acquired, in and to the property described in the foregoing clauses (1)(A), (B), (C) and (D) granted by
the Seller to the Depositor pursuant to the Assignment Agreement; (c) the possession by the Trustee, the Custodian or any other agent of the Trustee of Mortgage Notes or such other items of property as constitute instruments, money, payment
intangibles, negotiable documents, goods, deposit accounts, letters of credit, advices of credit, investment property, certificated securities or chattel paper shall be deemed to be “possession by the secured party,” or possession by a
purchaser or a person designated by such secured party, for purposes of perfecting the security interest pursuant to the [            ] Uniform Commercial Code and the Uniform
Commercial Code of any other applicable jurisdiction as in effect (including, without limitation, Sections 8-106, 9-313 and 9-106 thereof); and (d) notifications to persons holding such property, and acknowledgments, receipts or confirmations
from persons holding such property, shall be deemed notifications to, or acknowledgments, receipts or confirmations from, securities intermediaries, bailees or agents of, or persons holding for, (as applicable) the Trustee for the purpose of
perfecting such security interest under applicable law. 
  
 The
Depositor and, at the Depositor’s direction, the Seller and the Trustee shall, to the extent consistent with this Agreement, take such reasonable actions as may be necessary to ensure that, if this Agreement were deemed to create a security
interest in the Mortgage Loans and the Uncertificated Regular Interests and the other property described above, such security interest would be deemed to be a perfected security interest of first priority under applicable law and will be maintained
as such throughout the term of this Agreement. Without limiting the generality of the foregoing, the Depositor shall prepare and deliver to the Trustee not less than 15 days prior to any filing date and, the Trustee shall forward for filing, or
shall cause to be forwarded for filing, at the expense of the Depositor, all filings necessary to maintain the effectiveness of any original filings necessary under the Uniform Commercial Code as in effect in any jurisdiction to perfect the
Trustee’s security interest in or lien on the Mortgage Loans and the Uncertificated Regular Interests, as evidenced by an Officers Certificate of the Depositor, including without limitation (x) continuation statements, and (y) such
other statements as may be occasioned by (1) any change of name of the Seller, the Depositor or the Trustee (such preparation and filing shall be at the expense of the Trustee, if occasioned by a change in the Trustee’s name), (2) any
change of location of the place of business or the chief executive office of the Seller or the Depositor, (3) any transfer of any interest of the Seller or the Depositor in any Mortgage Loan or (4) any transfer of any interest of the
Seller or the Depositor in any Uncertificated Regular Interests. 
  
 Section 2.02 Acceptance by Trustee. 
  
 The
Trustee acknowledges receipt (or, with respect to Mortgage Loans subject to a Custodial Agreement, and based solely upon a receipt or certification executed by the Custodian, receipt by the respective Custodian as the duly appointed agent of the
Trustee) of the documents referred to in Section 2.01(b)(i) (except that for purposes of such acknowledgement only, a Mortgage Note may be endorsed in blank and an Assignment of Mortgage may be in blank) and declares that it, or a Custodian as
its agent, holds and will hold such documents and the other documents constituting a part of the Mortgage Files delivered to it, or a Custodian as its agent, in 
  

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 trust for the use and benefit of all present and future Certificateholders. The Trustee or Custodian (such Custodian
being so obligated under a Custodial Agreement) agrees, for the benefit of Certificateholders, to review each Mortgage File delivered to it pursuant to Section 2.01(b) within 90 days after the Closing Date to ascertain that all required
documents (specifically as set forth in Section 2.01(b)), have been executed and received, and that such documents relate to the Mortgage Loans identified on the Mortgage Loan Schedule, as supplemented, that have been conveyed to it, and to
deliver to the Trustee a certificate (the “Interim Certification”) to the effect that all documents required to be delivered pursuant to Section 2.01(b) have been executed and received and that such documents relate to the Mortgage
Loans identified on the Mortgage Loan Schedule, except for any exceptions listed on Schedule A attached to such Interim Certification. Upon delivery of the Mortgage Files by the Depositor or the Master Servicer, the Trustee shall acknowledge receipt
(or, with respect to Mortgage Loans subject to a Custodial Agreement, and based solely upon a receipt or certification executed by the Custodian, receipt by the respective Custodian as the duly appointed agent of the Trustee) of the documents
referred to in Section 2.01(b). 
  
 If the Custodian, as the
Trustee’s agent, finds any document or documents constituting a part of a Mortgage File to be missing or defective, upon receipt of notification from the Custodian as specified in the succeeding sentence, the Trustee shall promptly so notify or
cause the Custodian to notify the Master Servicer and the Depositor. Pursuant to Section 2.3 of the Custodial Agreement, the Custodian will notify the Master Servicer, the Depositor and the Trustee of any such omission or defect found by it in
respect of any Mortgage File held by it in respect of the items received by it pursuant to the Custodial Agreement. If such omission or defect materially and adversely affects the interests in the related Mortgage Loan of the Certificateholders, the
Master Servicer shall promptly notify the related Subservicer or Seller of such omission or defect and request that such Subservicer or Seller correct or cure such omission or defect within 60 days from the date the Master Servicer was notified of
such omission or defect and, if such Subservicer or Seller does not correct or cure such omission or defect within such period, that such Subservicer or Seller purchase such Mortgage Loan from the Trust Fund at its Purchase Price, in either case
within 90 days from the date the Master Servicer was notified of such omission or defect; provided that if the omission or defect would cause the Mortgage Loan to be other than a “qualified mortgage” as defined in Section 860G(a)(3)
of the Code, any such cure or repurchase must occur within 90 days from the date such breach was discovered. The Purchase Price for any such Mortgage Loan shall be deposited or caused to be deposited by the Master Servicer in the Custodial Account
maintained by it pursuant to Section 3.07 and, upon receipt by the Trustee of written notification of such deposit signed by a Servicing Officer, the Trustee or any Custodian, as the case may be, shall release to the Master Servicer the related
Mortgage File and the Trustee shall execute and deliver such instruments of transfer or assignment prepared by the Master Servicer, in each case without recourse, as shall be necessary to vest in the Subservicer or Seller or its designee, as the
case may be, any Mortgage Loan released pursuant hereto and thereafter such Mortgage Loan shall not be part of the Trust Fund. In furtherance of the foregoing and Section 2.04, if the Subservicer or Seller that repurchases the Mortgage Loan is
not a member of MERS and the Mortgage is registered on the MERS® System, the Master Servicer, at its own expense and without any right of reimbursement, shall cause MERS to execute and deliver an assignment of the Mortgage in recordable form to
transfer the Mortgage from MERS to such Subservicer or Seller and shall cause such Mortgage to be removed from registration on the MERS® System in accordance with MERS’ rules and 
  

 56 

 regulations. It is understood and agreed that the obligation of the Subservicer or Seller, to so cure or purchase any
Mortgage Loan as to which a material and adverse defect in or omission of a constituent document exists shall constitute the sole remedy respecting such defect or omission available to Certificateholders or the Trustee on behalf of
Certificateholders. 
  
 Section 2.03 Representations,
Warranties and Covenants of the Master Servicer and the Depositor. 
  
 (a) The Master Servicer hereby represents and warrants to the Trustee for the benefit of the Certificateholders that: 
  
 (i) The Master Servicer is a corporation duly organized, validly existing and in good standing under the laws governing its creation and
existence and is or will be in compliance with the laws of each state in which any Mortgaged Property is located to the extent necessary to ensure the enforceability of each Mortgage Loan in accordance with the terms of this Agreement; 

 
 (ii) The execution and delivery of this Agreement by the
Master Servicer and its performance and compliance with the terms of this Agreement will not violate the Master Servicer’s Certificate of Incorporation or Bylaws or constitute a material default (or an event which, with notice or lapse of time,
or both, would constitute a material default) under, or result in the material breach of, any material contract, agreement or other instrument to which the Master Servicer is a party or which may be applicable to the Master Servicer or any of its
assets; 
  
 (iii) This Agreement, assuming due
authorization, execution and delivery by the Trustee and the Depositor, constitutes a valid, legal and binding obligation of the Master Servicer, enforceable against it in accordance with the terms hereof subject to applicable bankruptcy,
insolvency, reorganization, moratorium and other laws affecting the enforcement of creditors’ rights generally and to general principles of equity, regardless of whether such enforcement is considered in a proceeding in equity or at law;

  
 (iv) The Master Servicer is not in default
with respect to any order or decree of any court or any order, regulation or demand of any federal, state, municipal or governmental agency, which default might have consequences that would materially and adversely affect the condition (financial or
other) or operations of the Master Servicer or its properties or might have consequences that would materially adversely affect its performance hereunder; 
  
 (v) No litigation is pending or, to the best of the Master Servicer’s knowledge, threatened against the Master Servicer which would
prohibit its entering into this Agreement or performing its obligations under this Agreement; 
  
 (vi) The Master Servicer shall comply in all material respects in the performance of this Agreement with all reasonable rules and
requirements of each insurer under each Required Insurance Policy; 
  

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 (vii) No information, certificate of an officer, statement furnished in writing or report
delivered to the Depositor, any Affiliate of the Depositor or the Trustee by the Master Servicer will, to the knowledge of the Master Servicer, contain any untrue statement of a material fact or omit a material fact necessary to make the
information, certificate, statement or report not misleading; 
  
 (viii) The Master Servicer has examined each existing, and will examine each new, Subservicing Agreement and is or will be familiar with the terms thereof. The terms of each existing Subservicing Agreement and each
designated Subservicer are acceptable to the Master Servicer and any new Subservicing Agreements will comply with the provisions of Section 3.02; 
  
 (ix) [The Master Servicer is a member of MERS in good standing, and will comply in all material respects with the rules and procedures of
MERS in connection with the servicing of the Mortgage Loans that are registered with MERS;] and 
  
 (x) The Servicing Guide of the Master Servicer requires that the Subservicer for each Mortgage Loan accurately and fully reports its
borrower credit files to each of the Credit Repositories in a timely manner. 
  
 It is understood and agreed that the representations and warranties set forth in this Section 2.03(a) shall survive delivery of the respective Mortgage Files to the Trustee or any Custodian. Upon discovery by either the Depositor, the
Master Servicer, the Trustee or any Custodian of a breach of any representation or warranty set forth in this Section 2.03(a) which materially and adversely affects the interests of the Certificateholders in any Mortgage Loan, the party
discovering such breach shall give prompt written notice to the other parties (any Custodian being so obligated under a Custodial Agreement). Within 90 days of its discovery or its receipt of notice of such breach, the Master Servicer shall
either (i) cure such breach in all material respects or (ii) to the extent that such breach is with respect to a Mortgage Loan or a related document, purchase such Mortgage Loan from the Trust Fund at the Purchase Price and in the manner
set forth in Section 2.02; provided that if the breach would cause the Mortgage Loan to be other than a “qualified mortgage” as defined in Section 860G(a)(3) of the Code, any such cure or repurchase must occur within 90 days from
the date such breach was discovered. The obligation of the Master Servicer to cure such breach or to so purchase such Mortgage Loan shall constitute the sole remedy in respect of a breach of a representation and warranty set forth in this
Section 2.03(a) available to the Certificateholders or the Trustee on behalf of the Certificateholders. 
  
 (b) The Depositor hereby represents and warrants to the Trustee for the benefit of the Certificateholders that as of the Closing Date (or, if otherwise
specified below, as of the date so specified): (i) immediately prior to the conveyance of the Mortgage Loans to the Trustee, the Depositor had good title to, and was the sole owner of, each Mortgage Loan free and clear of any pledge, lien,
encumbrance or security interest (other than rights to servicing and related compensation) and such conveyance validly transfers ownership of the Mortgage Loans to the Trustee free and clear of any pledge, lien, encumbrance or security interest; and
(ii) each Mortgage Loan constitutes a qualified mortgage under Section 860G(a)(3)(A) of the Code and Treasury Regulations Section 1.860G-2(a)(1). 
  

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 It is understood and agreed that the representations and warranties set forth in this
Section 2.03(b) shall survive delivery of the respective Mortgage Files to the Trustee or any Custodian. 
  
 Upon discovery by any of the Depositor, the Master Servicer, the Trustee or any Custodian of a breach of any of the representations and warranties set
forth in this Section 2.03(b) which materially and adversely affects the interests of the Certificateholders in any Mortgage Loan, the party discovering such breach shall give prompt written notice to the other parties(any Custodian being so
obligated under a Custodial Agreement); provided, however, that in the event of a breach of the representation and warranty set forth in Section 2.03(b)(ii), the party discovering such breach shall give such notice within five days of
discovery. Within 90 days of its discovery or its receipt of notice of breach, the Depositor shall either (i) cure such breach in all material respects or (ii) purchase such Mortgage Loan from the Trust Fund at the Purchase Price and in
the manner set forth in Section 2.02 herof; provided that the Depositor shall have the option to substitute a Qualified Substitute Mortgage Loan or Loans for such Mortgage Loan if such substitution occurs within two years following the Closing
Date; provided that if the omission or defect would cause the Mortgage Loan to be other than a “qualified mortgage” as defined in Section 860G(a)(3) of the Code, any such cure, substitution or repurchase must occur within 90 days from
the date such breach was discovered. Any such substitution shall be effected by the Depositor under the same terms and conditions as provided in Section 2.04 for substitutions by the Seller. It is understood and agreed that the obligation of
the Depositor to cure such breach or to so purchase or substitute for any Mortgage Loan as to which such a breach has occurred and is continuing shall constitute the sole remedy respecting such breach available to the Certificateholders or the
Trustee on behalf of the Certificateholders. Notwithstanding the foregoing, the Depositor shall not be required to cure breaches or purchase or substitute for Mortgage Loans as provided in this Section 2.03(b) if the substance of the breach of
a representation set forth above also constitutes fraud in the origination of the Mortgage Loan. 
  
 Section 2.04 Representations and Warranties of Sellers. 
  
 The Depositor, as assignee of the Seller under the Assignment Agreement, hereby assigns to the Trustee for the benefit of
the Certificateholders all of its right, title and interest in respect of the Assignment Agreement and each Seller’s Agreement applicable to a Mortgage Loan as and to the extent set forth in the Assignment Agreement. Insofar as the Assignment
Agreement or such Seller’s Agreement relates to the representations and warranties made by the Seller in respect of such Mortgage Loan and any remedies provided thereunder for any breach of such representations and warranties, such right, title
and interest may be enforced by the Master Servicer on behalf of the Trustee and the Certificateholders. Upon the discovery by the Depositor, the Master Servicer, the Trustee or any Custodian of a breach of any of the representations and warranties
made in a Seller’s Agreement or the Assignment Agreement in respect of any Mortgage Loan or of any Repurchase Event which materially and adversely affects the interests of the Certificateholders in such Mortgage Loan, the party discovering such
breach shall give prompt written notice to the other parties(any Custodian being so obligated under a Custodial Agreement). The Master Servicer shall promptly notify the Seller of such breach or Repurchase Event and request that the Seller either
(i) cure such breach or Repurchase Event in all material respects within 90 days from the date the Master Servicer was notified of such breach or Repurchase Event or (ii) purchase such Mortgage Loan from the Trust Fund at the Purchase
Price and in the manner set forth in Section 2.02. 
  

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 Upon the discovery by the Depositor, the Master Servicer, the Trustee or any Custodian of a breach of any
of such representations and warranties set forth in the Assignment Agreement in respect of any Mortgage Loan which materially and adversely affects the interests of the Certificateholders in such Mortgage Loan, the party discovering such breach
shall give prompt written notice to the other parties (any Custodian being so obligated under a Custodial Agreement) at the same time as notice is given pursuant to the preceding paragraph of any corresponding breach of representation or warranty
made in Seller’s Agreement. The Master Servicer shall promptly notify the Seller of such breach of a representation or warranty set forth in the Assignment Agreement and request that the Seller either (i) cure such breach in all material
respects within 90 days from the date the Master Servicer was notified of such breach or (ii) purchase such Mortgage Loan from the Trust Fund within 90 days of the date of such written notice of such breach at the Purchase Price and in the
manner set forth in Section 2.02, but only if the Mortgage Loan has not been purchased by the Seller due to a breach of representation and warranty of the Seller’s Agreement as set forth in the preceding paragraph; provided that the Seller
shall have the option to substitute a Qualified Substitute Mortgage Loan or Loans for such Mortgage Loan if such substitution occurs within two years following the Closing Date; provided that if the breach would cause the Mortgage Loan to be other
than a “qualified mortgage” as defined in Section 860G(a)(3) of the Code, any such cure or substitution must occur within 90 days from the date the breach was discovered. If the breach of representation and warranty that gave rise to
the obligation to repurchase or substitute a Mortgage Loan pursuant to Section 4 of the Assignment Agreement was the representation and warranty set forth in clause (xlvii) of Section 4 thereof, then the Master Servicer shall request
that the Seller pay to the Trust Fund, concurrently with and in addition to the remedies provided in the preceding sentence, an amount equal to any liability, penalty or expense that was actually incurred and paid out of or on behalf of the Trust
Fund, and that directly resulted from such breach, or if incurred and paid by the Trust Fund thereafter, concurrently with such payment. In the event that the Seller elects to substitute a Qualified Substitute Mortgage Loan or Loans for a Deleted
Mortgage Loan pursuant to this Section 2.04, the Seller] shall deliver to the Trustee for the benefit of the Certificateholders with respect to such Qualified Substitute Mortgage Loan or Loans, the original Mortgage Note, the Mortgage, an
Assignment of the Mortgage in recordable form, and such other documents and agreements as are required by Section 2.01, with the Mortgage Note endorsed as required by Section 2.01. No substitution will be made in any calendar month after
the Determination Date for such month. Monthly Payments due with respect to Qualified Substitute Mortgage Loans in the month of substitution shall not be part of the Trust Fund and will be retained by the Master Servicer and remitted by the Master
Servicer to the Seller on the next succeeding Distribution Date. For the month of substitution, distributions to the Certificateholders will include the Monthly Payment due on a Deleted Mortgage Loan for such month and thereafter the Seller shall be
entitled to retain all amounts received in respect of such Deleted Mortgage Loan. The Master Servicer shall amend or cause to be amended the Mortgage Loan Schedule for the benefit of the Certificateholders to reflect the removal of such Deleted
Mortgage Loan and the substitution of the Qualified Substitute Mortgage Loan or Loans and the Master Servicer shall deliver the amended Mortgage Loan Schedule to the Trustee. Upon such substitution, the Qualified Substitute Mortgage Loan or Loans
shall be subject to the terms of this Agreement and the related Subservicing Agreement in all respects, the Seller shall be 
  

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 deemed to have made the representations and warranties with respect to the Qualified Substitute Mortgage Loan made in the
Seller Agreements as of the date of substitution, the Seller shall be deemed to have made the representations and warranties with respect to the Qualified Substitute Mortgage Loan (other than those of a statistical nature) contained in the
Assignment Agreement as of the date of substitution, and the covenants, representations and warranties set forth in this Section 2.04, and in Section 2.03(b). 
  
 In connection with the substitution of one or more Qualified Substitute Mortgage Loans for one or more Deleted Mortgage
Loans, the Master Servicer shall determine the amount (if any) by which the aggregate principal balance of all such Qualified Substitute Mortgage Loans as of the date of substitution is less than the aggregate Stated Principal Balance of all such
Deleted Mortgage Loans (in each case after application of the principal portion of the Monthly Payments due in the month of substitution that are to be distributed to the Certificateholders in the month of substitution). The Seller shall deposit the
amount of such shortfall into the Custodial Account on the day of substitution, without any reimbursement therefor. The Seller shall give notice in writing to the Trustee of such event, which notice shall be accompanied by an Officers’
Certificate as to the calculation of such shortfall and (subject to Section 10.01(f)) by an Opinion of Counsel to the effect that such substitution will not cause (a) any federal tax to be imposed on the Trust Fund, including without
limitation, any federal tax imposed on “prohibited transactions” under Section 860F(a)(1) of the Code or on “contributions after the startup date” under Section 860G(d)(1) of the Code or (b) any portion of any
REMIC created hereunder to fail to qualify as a REMIC at any time that any Certificate is outstanding. 
  
 It is understood and agreed that the obligation of the Seller to cure such breach or purchase or substitute for such Mortgage Loan as to which such a
breach has occurred and is continuing and to make any additional payments required under the Assignment Agreement in connection with a breach of the representation and warranty in clause (xlvii) of Section 4 thereof shall constitute the
sole remedy respecting such breach available to the Certificateholders or the Trustee on behalf of the Certificateholders. If the Master Servicer is also the Seller, then the Trustee shall also have the right to give the notification and require the
purchase or substitution provided for in the second preceding paragraph in the event of such a breach of a representation or warranty made by the Seller in the Assignment Agreement. In connection with the purchase of or substitution for any such
Mortgage Loan by the Seller, the Trustee shall assign to the Seller all of the right, title and interest in respect of the Seller’s Agreement and the Assignment Agreement applicable to such Mortgage Loan. 
  
 Section 2.05 Execution and Authentication of Certificates; Conveyance
of REMIC I Regular Interests. 
  
 (a) The Trustee
acknowledges the assignment to it of the Mortgage Loans and the delivery of the Mortgage Files to it, or any Custodian on its behalf, subject to any exceptions noted, together with the assignment to it of all other assets included in the Trust Fund,
receipt of which is hereby acknowledged. Concurrently with such delivery and in exchange therefor, the Trustee, pursuant to the written request of the Depositor executed by an officer of the Depositor, has executed and caused to be authenticated and
delivered to or upon the order of the Depositor the Certificates in authorized denominations which evidence ownership of the entire Trust Fund. 
  

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 (b) The Depositor, concurrently with the execution and delivery hereof, does hereby transfer, assign, set
over and otherwise convey in trust to the Trustee without recourse all the right, title and interest of the Depositor in and to the REMIC I Regular Interests for the benefit of the holders of the Regular Certificates and the Class R-II certificates.
The Trustee acknowledges receipt of the REMIC I Regular Interests (each of which are uncertificated) and declares that it holds and will hold the same in trust for the exclusive use and benefit of the holders of the Regular Certificates and the
Class R-II Certificates. The interests evidenced by the Class R-II Certificate, together with the Regular Certificates, constitute the entire beneficial ownership interest in REMIC II. 
  
 Section 2.06 Purposes and Powers of the Trust. 
  
 The purpose of the trust, as created hereunder, is to engage in the following activities: 
  
 (a) to sell the Certificates to the Depositor in exchange for the Mortgage
Loans; 
  
 (b) to enter into and perform its obligations under
this Agreement; 
  
 (c) to engage in those activities that are
necessary, suitable or convenient to accomplish the foregoing or are incidental thereto or connected therewith; and 
  
 (d) subject to compliance with this Agreement, to engage in such other activities as may be required in connection with conservation of the Trust Fund and
the making of distributions to the Certificateholders. 
  
 The
trust is hereby authorized to engage in the foregoing activities. Notwithstanding the provisions of Section 11.01, the trust shall not engage in any activity other than in connection with the foregoing or other than as required or authorized by
the terms of this Agreement while any Certificate is outstanding, and this Section 2.06 may not be amended, without the consent of the Certificateholders evidencing a majority of the aggregate Voting Rights of the Certificates. 
  
 ARTICLE III 
 ADMINISTRATION AND SERVICING OF MORTGAGE LOANS 
  
 Section 3.01 Master Servicer to Act as Servicer. 
  
 (a) The Master Servicer shall service and administer the Mortgage Loans in accordance with the terms of this Agreement and the respective Mortgage Loans,
following such procedures as it would employ in its good faith business judgment and which are normal and usual in its general mortgage servicing activities, and shall have full power and authority, acting alone or through Subservicers as provided
in Section 3.02, to do any and all things which it may deem necessary or desirable in connection with such servicing and administration. Without limiting the generality of the foregoing, the Master Servicer in its own name or in the name of a
Subservicer is hereby authorized and empowered by the Trustee when the Master Servicer or the Subservicer, as the case may be, believes it appropriate in its best judgment, to execute and deliver, on behalf of the Certificateholders and the Trustee
or any of them, any and all instruments of satisfaction or cancellation, or of partial or full release or discharge, or of consent to assumption or modification in connection with a proposed conveyance, or of assignment of 
  

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 any Mortgage and Mortgage Note in connection with the repurchase of a Mortgage Loan and all other comparable instruments,
or with respect to the modification or re-recording of a Mortgage for the purpose of correcting the Mortgage, the subordination of the lien of the Mortgage in favor of a public utility company or government agency or unit with powers of eminent
domain, the taking of a deed in lieu of foreclosure, the commencement, prosecution or completion of judicial or non-judicial foreclosure, the conveyance of a Mortgaged Property to the related insurer, the acquisition of any property acquired by
foreclosure or deed in lieu of foreclosure, or the management, marketing and conveyance of any property acquired by foreclosure or deed in lieu of foreclosure with respect to the Mortgage Loans and with respect to the Mortgaged Properties. The
Master Servicer further is authorized and empowered by the Trustee, on behalf of the Certificateholders and the Trustee, in its own name or in the name of the Subservicer, when the Master Servicer or the Subservicer, as the case may be, believes it
is appropriate in its best judgment to register any Mortgage Loan on the MERS® System, or cause the removal from the registration of any Mortgage Loan on the MERS® System, to execute and deliver, on behalf of the Trustee and the
Certificateholders or any of them, any and all instruments of assignment and other comparable instruments with respect to such assignment or re-recording of a Mortgage in the name of MERS, solely as nominee for the Trustee and its successors and
assigns. Any expenses incurred in connection with the actions described in the preceding sentence shall be borne by the Master Servicer in accordance with Section 3.16(c), with no right of reimbursement; provided, that if, as a result of MERS
discontinuing or becoming unable to continue operations in connection with the MERS® System, it becomes necessary to remove any Mortgage Loan from registration on the MERS® System and to arrange for the assignment of the related Mortgages to the Trustee, then any related expenses shall be
reimbursable to the Master Servicer as set forth in Section 3.10(a)(ii). Notwithstanding the foregoing, subject to Section 3.07(a), the Master Servicer shall not permit any modification with respect to any Mortgage Loan that would both
constitute a sale or exchange of such Mortgage Loan within the meaning of Section 1001 of the Code and any proposed, temporary or final regulations promulgated thereunder (other than in connection with a proposed conveyance or assumption of
such Mortgage Loan that is treated as a Principal Prepayment in Full pursuant to Section 3.13(d)) and cause any REMIC created hereunder to fail to qualify as a REMIC under the Code. The Trustee shall furnish the Master Servicer with any powers
of attorney and other documents necessary or appropriate to enable the Master Servicer to service and administer the Mortgage Loans. The Trustee shall not be liable for any action taken by the Master Servicer or any Subservicer pursuant to such
powers of attorney or other documents. In servicing and administering any Nonsubserviced Mortgage Loan, the Master Servicer shall, to the extent not inconsistent with this Agreement, comply with the Program Guide as if it were the originator of such
Mortgage Loan and had retained the servicing rights and obligations in respect thereof. 
  
 If the Mortgage relating to a Mortgage Loan did not have a lien senior to the Mortgage Loan on the related Mortgaged Property as of the Cut-off Date, then the Master Servicer, in such capacity, may not consent to the
placing of a lien senior to that of the Mortgage on the related Mortgaged Property. If the Mortgage relating to a Mortgage Loan had a lien senior to the Mortgage Loan on the related Mortgaged Property as of the Cut-off Date, then the Master
Servicer, in such capacity, may consent to the refinancing of the prior senior lien, provided that the following requirements are met: 
  

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 (i) (A) the Mortgagor’s debt-to-income ratio resulting from such refinancing is
less than the original debt-to-income ratio as set forth on the Mortgage Loan Schedule; provided, however, that in no instance shall the resulting Combined Loan-to-Value Ratio (“Combined Loan-to-Value Ratio”) of such Mortgage Loan be
higher than that permitted by the Program Guide; or 
  
 (B) the resulting Combined Loan-to-Value Ratio of such Mortgage Loan is no higher than the Combined Loan-to-Value Ratio prior to such refinancing; provided, however, if such refinanced mortgage loan is a “rate and term” mortgage
loan (meaning, the Mortgagor does not receive any cash from the refinancing), the Combined Loan-to-Value Ratio may increase to the extent of either (x) the reasonable closing costs of such refinancing or (y) any decrease in the value of
the related Mortgaged Property, if the Mortgagor is in good standing as defined by the Program Guide; 
  
 (ii) the interest rate, or, in the case of an adjustable rate existing senior lien, the maximum interest rate, for the loan evidencing the
refinanced senior lien is no more than [            ]% higher than the interest rate or the maximum interest rate, as the case may be, on the loan evidencing the existing senior lien
immediately prior to the date of such refinancing; provided, however (A) if the loan evidencing the existing senior lien prior to the date of refinancing has an adjustable rate and the loan evidencing the refinanced senior lien has a fixed
rate, then the current interest rate on the loan evidencing the refinanced senior lien may be up to [            ]% higher than the then-current loan rate of the loan evidencing the
existing senior lien and (B) if the loan evidencing the existing senior lien prior to the date of refinancing has a fixed rate and the loan evidencing the refinanced senior lien has an adjustable rate, then the maximum interest rate on the loan
evidencing the refinanced senior lien shall be less than or equal to (x) the interest rate on the loan evidencing the existing senior lien prior to the date of refinancing plus
(y) [            ]%; and 
  
 (iii) the loan evidencing the refinanced senior lien is not subject to negative amortization. 
  
 (b) The Master Servicer shall, to the extent consistent with the servicing
standards set forth herein, take whatever actions as may be necessary to file a claim under or enforce or allow the Trustee to file a claim under or enforce any title insurance policy with respect to any Mortgage Loan including, without limitation,
joining in or causing Seller or Subservicer (or any other party in possession of any title insurance policy) to join in any claims process, negotiations, actions or proceedings necessary to make a claim under or enforce any title insurance policy.
Notwithstanding anything in this Agreement to the contrary, the Master Servicer shall not (unless the Mortgagor is in default with respect to the Mortgage Loan or such default is, in the judgment of the Master Servicer, reasonably foreseeable) make
or permit any modification, waiver, or amendment of any term of any Mortgage Loan that would both (i) effect an exchange or reissuance of such Mortgage Loan under Section 1001 of the Code (or final, temporary or proposed Treasury
regulations promulgated thereunder) (other than in connection with a proposed conveyance or assumption of such Mortgage Loan that is treated as a Principal Prepayment in Full pursuant to Section 3.13(d)) and (ii) cause any REMIC formed
hereunder to fail to qualify as a REMIC under the Code or the imposition of any tax on “prohibited transactions” or “contributions” after the startup date under the REMIC Provisions. 
  

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 (c) In connection with servicing and administering the Mortgage Loans, the Master Servicer and any
Affiliate of the Master Servicer (i) may perform services such as appraisals and brokerage services that are customarily provided by Persons other than servicers of mortgage loans, and shall be entitled to reasonable compensation therefor in
accordance with Section 3.10 and (ii) may, at its own discretion and on behalf of the Trustee, obtain credit information in the form of a “credit score” from a Credit Repository. 
  
 (d) All costs incurred by the Master Servicer or by Subservicers in effecting
the timely payment of taxes and assessments on the properties subject to the Mortgage Loans shall not, for the purpose of calculating monthly distributions to the Certificateholders, be added to the amount owing under the related Mortgage Loans,
notwithstanding that the terms of such Mortgage Loan so permit, and such costs shall be recoverable to the extent permitted by Section 3.10(a)(ii). 
  
 (e) The Master Servicer may enter into one or more agreements in connection with the offering of pass-through certificates evidencing interests in one or
more of the Certificates providing for the payment by the Master Servicer of amounts received by the Master Servicer as servicing compensation hereunder and required to cover certain Prepayment Interest Shortfalls on the Mortgage Loans, which
payment obligation will thereafter be an obligation of the Master Servicer hereunder. 
  
 (f) The relationship of the Master Servicer (and of any successor to the Master Servicer) to the Depositor under this Agreement is intended by the parties to be that of an independent contractor and not that of a
joint venturer, partner or agent. 
  
 (g) The Master Servicer
shall comply with the terms of Section 9 of the Assignment Agreement. 
  
 Section 3.02 Subservicing Agreements Between Master Servicer and Subservicers; Enforcement of Subservicers’ Obligations. 
  
 (a) The Master Servicer may continue in effect Subservicing Agreements entered into by the Seller and Subservicers prior to
the execution and delivery of this Agreement, and may enter into new Subservicing Agreements with Subservicers, for the servicing and administration of all or some of the Mortgage Loans. Each Subservicer shall be either (i) an institution the
accounts of which are insured by the FDIC or (ii) another entity that engages in the business of originating or servicing mortgage loans, and in either case shall be authorized to transact business in the state or states in which the related
Mortgaged Properties it is to service are situated, if and to the extent required by applicable law to enable the Subservicer to perform its obligations hereunder and under the Subservicing Agreement, and in either case shall be a Freddie Mac,
Fannie Mae or HUD approved mortgage servicer. Each Subservicer of a Mortgage Loan shall be entitled to receive and retain, as provided in the related Subservicing Agreement and in Section 3.07, the related Subservicing Fee from payments of
interest received on such Mortgage Loan after payment of all amounts required to be remitted to the Master Servicer in 
  

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 respect of such Mortgage Loan. For any Mortgage Loan that is a Nonsubserviced Mortgage Loan, the Master Servicer shall be
entitled to receive and retain an amount equal to the Subservicing Fee from payments of interest. Unless the context otherwise requires, references in this Agreement to actions taken or to be taken by the Master Servicer in servicing the Mortgage
Loans include actions taken or to be taken by a Subservicer on behalf of the Master Servicer. Each Subservicing Agreement will be upon such terms and conditions as are generally required by, permitted by or consistent with the Program Guide and are
not inconsistent with this Agreement and as the Master Servicer and the Subservicer have agreed. With the approval of the Master Servicer, a Subservicer may delegate its servicing obligations to third-party servicers, but such Subservicer will
remain obligated under the related Subservicing Agreement. The Master Servicer and a Subservicer may enter into amendments thereto or a different form of Subservicing Agreement, and the form referred to or included in the Program Guide is merely
provided for information and shall not be deemed to limit in any respect the discretion of the Master Servicer to modify or enter into different Subservicing Agreements; provided, however, that any such amendments or different forms shall be
consistent with and not violate the provisions of either this Agreement or the Program Guide in a manner which would materially and adversely affect the interests of the Certificateholders. The Program Guide and any other Subservicing Agreement
entered into between the Master Servicer and any Subservicer shall require the Subservicer to accurately and fully report its borrower credit files to each of the Credit Repositories in a timely manner. 
  
 (b) As part of its servicing activities hereunder, the Master Servicer, for
the benefit of the Trustee and the Certificateholders, shall use its best reasonable efforts to enforce the obligations of each Subservicer under the related Subservicing Agreement and of Seller under the Seller’s Agreement, to the extent that
the non-performance of any such obligation would have a material and adverse effect on a Mortgage Loan, including, without limitation, the obligation to purchase a Mortgage Loan on account of defective documentation, as described in
Section 2.02, or on account of a breach of a representation or warranty, as described in Section 2.04. Such enforcement, including, without limitation, the legal prosecution of claims, termination of Subservicing Agreements or
Seller’s Agreements, as appropriate, and the pursuit of other appropriate remedies, shall be in such form and carried out to such an extent and at such time as the Master Servicer would employ in its good faith business judgment and
which are normal and usual in its general mortgage servicing activities. The Master Servicer shall pay the costs of such enforcement at its own expense, and shall be reimbursed therefor only (i) from a general recovery resulting from such
enforcement to the extent, if any, that such recovery exceeds all amounts due in respect of the related Mortgage Loan or (ii) from a specific recovery of costs, expenses or attorneys fees against the party against whom such enforcement is
directed. For purposes of clarification only, the parties agree that the foregoing is not intended to, and does not, limit the ability of the Master Servicer to be reimbursed for expenses that are incurred in connection with the enforcement of the
Seller’s obligations and are reimbursable pursuant to Section 3.10(a)(vii). 
  
 Section 3.03 Successor Subservicers. 
  
 The Master Servicer shall be entitled to terminate any Subservicing Agreement that may exist in accordance with the terms and conditions of such Subservicing Agreement and without any limitation by virtue of this
Agreement; provided, however, that in the event of termination of 
  

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 any Subservicing Agreement by the Master Servicer or the Subservicer, the Master Servicer shall either act as servicer of
the related Mortgage Loan or enter into a Subservicing Agreement with a successor Subservicer which will be bound by the terms of the related Subservicing Agreement. If the Master Servicer or any Affiliate of the Master Servicer acts as servicer, it
will not assume liability for the representations and warranties of the Subservicer which it replaces. If the Master Servicer enters into a Subservicing Agreement with a successor Subservicer, the Master Servicer shall use reasonable efforts to have
the successor Subservicer assume liability for the representations and warranties made by the terminated Subservicer in respect of the related Mortgage Loans and, in the event of any such assumption by the successor Subservicer, the Master Servicer
may, in the exercise of its business judgment, release the terminated Subservicer from liability for such representations and warranties. 
  
 Section 3.04 Liability of the Master Servicer. 
  
 Notwithstanding any Subservicing Agreement, any of the provisions of this Agreement relating to agreements or arrangements between the Master Servicer or
a Subservicer or reference to actions taken through a Subservicer or otherwise, the Master Servicer shall remain obligated and liable to the Trustee, and Certificateholders for the servicing and administering of the Mortgage Loans in accordance with
the provisions of Section 3.01 without diminution of such obligation or liability by virtue of such Subservicing Agreements or arrangements or by virtue of indemnification from the Subservicer or the Depositor and to the same extent and under
the same terms and conditions as if the Master Servicer alone were servicing and administering the Mortgage Loans. The Master Servicer shall be entitled to enter into any agreement with a Subservicer or Seller for indemnification of the Master
Servicer and nothing contained in this Agreement shall be deemed to limit or modify such indemnification. 
  
 Section 3.05 No Contractual Relationship Between Subservicer and Trustee or Certificateholders. 
  
 Any Subservicing Agreement that may be entered into and any other
transactions or services relating to the Mortgage Loans involving a Subservicer in its capacity as such and not as an originator shall be deemed to be between the Subservicer and the Master Servicer alone, and the Trustee and Certificateholders
shall not be deemed parties thereto and shall have no claims, rights, obligations, duties or liabilities with respect to the Subservicer in its capacity as such except as set forth in Section 3.06. The foregoing provision shall not in any way
limit a Subservicer’s obligation to cure an omission or defect or to repurchase a Mortgage Loan as referred to in Section 2.02. 
  
 Section 3.06 Assumption or Termination of Subservicing Agreements by Trustee. 
  
 (a) In the event the Master Servicer shall for any reason no longer be the master servicer (including by reason of an Event
of Default), the Trustee, as successor Master Servicer, its designee or its successor shall thereupon assume all of the rights and obligations of the Master Servicer under each Subservicing Agreement that may have been entered into. The Trustee, its
designee or the successor servicer for the Trustee shall be deemed to have assumed all of the Master Servicer’s interest therein and to have replaced the Master Servicer as a party to the Subservicing Agreement to the same extent as if the
Subservicing Agreement had been assigned to the assuming party except that the Master Servicer shall not thereby be relieved of any liability or obligations under the Subservicing Agreement. 
  

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 (b) The Master Servicer shall, upon request of the Trustee but at the expense of the Master Servicer,
deliver to the assuming party all documents and records relating to each Subservicing Agreement and the Mortgage Loans then being serviced and an accounting of amounts collected and held by it and otherwise use its best efforts to effect the orderly
and efficient transfer of each Subservicing Agreement to the assuming party. 
  
 Section 3.07 Collection of Certain Mortgage Loan Payments; Deposits to Custodial Account. 
  
 (a) The Master Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the Mortgage Loans, and shall,
to the extent such procedures shall be consistent with this Agreement and the terms and provisions of any related Primary Insurance Policy, follow such collection procedures as it would employ in its good faith business judgment and which are normal
and usual in its general mortgage servicing activities. Consistent with the foregoing, the Master Servicer may in its discretion (subject to the terms and conditions of the Assignment Agreement) (i) waive any late payment charge or any
prepayment charge or penalty interest in connection with the prepayment of a Mortgage Loan and (ii) extend the Due Date for payments due on a Mortgage Loan in accordance with the Program Guide, provided, however, that the Master
Servicer shall first determine that any such waiver or extension will not impair the coverage of any related Primary Insurance Policy or materially adversely affect the lien of the related Mortgage. Notwithstanding anything in this Section to
the contrary, the Master Servicer or any Subservicer shall not enforce any prepayment charge to the extent that such enforcement would violate any applicable law. In the event of any such arrangement, the Master Servicer shall make timely advances
on the related Mortgage Loan during the scheduled period in accordance with the amortization schedule of such Mortgage Loan without modification thereof by reason of such arrangements unless otherwise agreed to by the Holders of the Classes of
Certificates affected thereby; provided, however, that no such extension shall be made if any advance would be a Nonrecoverable Advance. Consistent with the terms of this Agreement, the Master Servicer may also waive, modify or vary any term of any
Mortgage Loan or consent to the postponement of strict compliance with any such term or in any manner grant indulgence to any Mortgagor if in the Master Servicer’s determination such waiver, modification, postponement or indulgence is not
materially adverse to the interests of the Certificateholders (taking into account any estimated Realized Loss that might result absent such action), provided, however, that the Master Servicer may not modify materially or permit any
Subservicer to modify any Mortgage Loan, including without limitation any modification that would change the Mortgage Rate, forgive the payment of any principal or interest (unless in connection with the liquidation of the related Mortgage Loan or
except in connection with prepayments to the extent that such reamortization is not inconsistent with the terms of the Mortgage Loan), capitalize any amounts owing on the Mortgage Loan by adding such amount to the outstanding principal balance of
the Mortgage Loan, or extend the final maturity date of such Mortgage Loan, unless such Mortgage Loan is in default or, in the judgment of the Master Servicer, such default is reasonably foreseeable. No such modification shall reduce the Mortgage
Rate on a Mortgage Loan below the greater of (A) x/x of the Mortgage Rate as in effect on the Cut-off Date and (B) x/x of the Mortgage Rate as in effect on the date of such 
  

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 modification, but not less than the sum of the Servicing Fee Rate and the per annum rate at which the Subservicing Fee
accrues. The final maturity date for any Mortgage Loan shall not be extended beyond the Maturity Date. Also, the aggregate principal balance of all Reportable Modified Mortgage Loans subject to Servicing Modifications (measured at the time of the
Servicing Modification and after giving effect to any Servicing Modification) can be no more than xx% of the aggregate principal balance of the Mortgage Loans as of the Cut-off Date, provided, that such limit may be increased from time to time if
each Rating Agency provides written confirmation that an increase in excess of that limit will not reduce the rating assigned to any Class of Certificates by such Rating Agency below the lower of the then-current rating or the rating assigned to
such Certificates as of the Closing Date by such Rating Agency. In addition, any amounts owing on a Mortgage Loan added to the outstanding principal balance of such Mortgage Loan must be fully amortized over the term of such Mortgage Loan, and such
amounts may be added to the outstanding principal balance of a Mortgage Loan only once during the life of such Mortgage Loan. Also, the addition of such amounts described in the preceding sentence shall be implemented in accordance with the Program
Guide and may be implemented only by Subservicers that have been approved by the Master Servicer for such purposes. In connection with any Curtailment of a Mortgage Loan, the Master Servicer, to the extent not inconsistent with the terms of the
Mortgage Note and local law and practice, may permit the Mortgage Loan to be re-amortized such that the Monthly Payment is recalculated as an amount that will fully amortize the remaining principal balance thereof by the original maturity date based
on the original Mortgage Rate; provided, that such reamortization shall not be permitted if it would constitute a reissuance of the Mortgage Loan for federal income tax purposes. 
  
 (b) The Master Servicer shall establish and maintain a Custodial Account in which the Master Servicer shall deposit or cause
to be deposited on a daily basis, except as otherwise specifically provided herein, the following payments and collections remitted by Subservicers or received by it in respect of the Mortgage Loans subsequent to the Cut-off Date (other than in
respect of Monthly Payments due before or in the month of the Cut-off Date): 
  
 (i) All payments on account of principal, including Principal Prepayments made by Mortgagors on the Mortgage Loans and the principal component of any Subservicer Advance or of any REO Proceeds received in connection
with an REO Property for which an REO Disposition has occurred; 
  
 (ii) All payments on account of interest at the Adjusted Mortgage Rate on the Mortgage Loans, including the interest component of any Subservicer Advance or of any REO Proceeds received in connection with an REO
Property for which an REO Disposition has occurred; 
  
 (iii) Insurance Proceeds, Subsequent Recoveries and Liquidation Proceeds (net of any related expenses of the Subservicer); 
  
 (iv) All proceeds of any Mortgage Loans purchased pursuant to Section 2.02, 2.03, 2.04 or 4.07 (including amounts received from the
Seller pursuant to the last paragraph of Section 4 of the Assignment Agreement in respect of any liability, penalty or expense that resulted from a breach of the representation and warranty set forth in clause (xlvii) of Section 4 of
the Assignment Agreement) and all amounts required to be deposited in connection with the substitution of a Qualified Substitute Mortgage Loan pursuant to Section 2.03 or 2.04; and 
  

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 (v) Any amounts required to be deposited pursuant to Section 3.07(c) and any
payments or collections received in the nature of prepayment charges. 
  
 The
foregoing requirements for deposit in the Custodial Account shall be exclusive, it being understood and agreed that, without limiting the generality of the foregoing, payments on the Mortgage Loans which are not part of the Trust Fund (consisting of
Monthly Payments due before or in the month of the Cut-off Date) and payments or collections consisting of late payment charges or assumption fees may but need not be deposited by the Master Servicer in the Custodial Account. In the event any amount
not required to be deposited in the Custodial Account is so deposited, the Master Servicer may at any time withdraw such amount from the Custodial Account, any provision herein to the contrary notwithstanding. The Custodial Account may contain funds
that belong to one or more trust funds created for mortgage pass-through certificates of other series and may contain other funds respecting payments on mortgage loans belonging to the Master Servicer or serviced or master serviced by it on behalf
of others. Notwithstanding such commingling of funds, the Master Servicer shall keep records that accurately reflect the funds on deposit in the Custodial Account that have been identified by it as being attributable to the Mortgage Loans. With
respect to Insurance Proceeds, Liquidation Proceeds, REO Proceeds, Subsequent Recoveries and the proceeds of the purchase of any Mortgage Loan pursuant to Sections 2.02, 2.03, 2.04 and 4.07 received in any calendar month, the Master Servicer may
elect to treat such amounts as included in the Available Distribution Amount for the Distribution Date in the month of receipt, but is not obligated to do so. If the Master Servicer so elects, such amounts will be deemed to have been received (and
any related Realized Loss shall be deemed to have occurred) on the last day of the month prior to the receipt thereof. 
  
 (c) The Master Servicer shall use its best efforts to cause the institution maintaining the Custodial Account to invest the funds in the Custodial Account
attributable to the Mortgage Loans in Permitted Investments which shall mature not later than the Certificate Account Deposit Date next following the date of such investment (with the exception of the Amount Held for Future Distribution) and which
shall not be sold or disposed of prior to their maturities. All income and gain realized from any such investment shall be for the benefit of the Master Servicer as additional servicing compensation and shall be subject to its withdrawal or order
from time to time. The amount of any losses incurred in respect of any such investments attributable to the investment of amounts in respect of the Mortgage Loans shall be deposited in the Custodial Account by the Master Servicer out of its own
funds immediately as realized. 
  
 (d) The Master Servicer shall
give notice to the Trustee and the Depositor of any change in the location of the Custodial Account and the location of the Certificate Account prior to the use thereof. 
  
 Section 3.08 Subservicing Accounts; Servicing Accounts. 
  
 (a) In those cases where a Subservicer is servicing a Mortgage Loan pursuant
to a Subservicing Agreement, the Master Servicer shall cause the Subservicer, pursuant to the 
  

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 Subservicing Agreement, to establish and maintain one or more Subservicing Accounts which shall be an Eligible Account
or, if such account is not an Eligible Account, shall generally satisfy the requirements of the Program Guide and be otherwise acceptable to the Master Servicer and each Rating Agency. The Subservicer will be required thereby to deposit into the
Subservicing Account on a daily basis all proceeds of Mortgage Loans received by the Subservicer, less its Subservicing Fees and unreimbursed advances and expenses, to the extent permitted by the Subservicing Agreement. If the Subservicing Account
is not an Eligible Account, the Master Servicer shall be deemed to have received such monies upon receipt thereof by the Subservicer. The Subservicer shall not be required to deposit in the Subservicing Account payments or collections in the nature
of late charges or assumption fees, or payments or collections received in the nature of prepayment charges to the extent that the Subservicer is entitled to retain such amounts pursuant to the Subservicing Agreement. On or before the date specified
in the Program Guide, but in no event later than the Determination Date, the Master Servicer shall cause the Subservicer, pursuant to the Subservicing Agreement, to remit to the Master Servicer for deposit in the Custodial Account all funds held in
the Subservicing Account with respect to each Mortgage Loan serviced by such Subservicer that are required to be remitted to the Master Servicer. The Subservicer will also be required, pursuant to the Subservicing Agreement, to advance on such
scheduled date of remittance amounts equal to any scheduled monthly installments of principal and interest less its Subservicing Fees on any Mortgage Loans for which payment was not received by the Subservicer. This obligation to advance with
respect to each Mortgage Loan will continue up to and including the first of the month following the date on which the related Mortgaged Property is sold at a foreclosure sale or is acquired by the Trust Fund by deed in lieu of foreclosure or
otherwise. All such advances received by the Master Servicer shall be deposited promptly by it in the Custodial Account. 
  
 (b) The Subservicer may also be required, pursuant to the Subservicing Agreement, to remit to the Master Servicer for deposit in the Custodial Account
interest at the Adjusted Mortgage Rate (or Modified Net Mortgage Rate plus the rate per annum at which the Servicing Fee accrues in the case of a Modified Mortgage Loan) on any Curtailment received by such Subservicer in respect of a Mortgage Loan
from the related Mortgagor during any month that is to be applied by the Subservicer to reduce the unpaid principal balance of the related Mortgage Loan as of the first day of such month, from the date of application of such Curtailment to the first
day of the following month. Any amounts paid by a Subservicer pursuant to the preceding sentence shall be for the benefit of the Master Servicer as additional servicing compensation and shall be subject to its withdrawal or order from time to
time pursuant to Sections 3.10(a)(iv) and (v). 
  
 (c) In addition
to the Custodial Account and the Certificate Account, the Master Servicer shall for any Nonsubserviced Mortgage Loan, and shall cause the Subservicers for Subserviced Mortgage Loans to, establish and maintain one or more Servicing Accounts and
deposit and retain therein all collections from the Mortgagors (or advances from Subservicers) for the payment of taxes, assessments, hazard insurance premiums, Primary Insurance Policy premiums, if applicable, or comparable items for the account of
the Mortgagors. Each Servicing Account shall satisfy the requirements for a Subservicing Account and, to the extent permitted by the Program Guide or as is otherwise acceptable to the Master Servicer, may also function as a Subservicing
Account. Withdrawals of amounts related to the Mortgage Loans from the Servicing Accounts may be made only to effect timely payment of taxes, assessments, hazard 
  

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 insurance premiums, Primary Insurance Policy premiums, if applicable, or comparable items, to reimburse the Master
Servicer or Subservicer out of related collections for any payments made pursuant to Sections 3.11 (with respect to the Primary Insurance Policy) and 3.12(a) (with respect to hazard insurance), to refund to any Mortgagors any sums as may be
determined to be overages, to pay interest, if required, to Mortgagors on balances in the Servicing Account or to clear and terminate the Servicing Account at the termination of this Agreement in accordance with Section 9.01 or in accordance
with the Program Guide. As part of its servicing duties, the Master Servicer shall, and the Subservicers will, pursuant to the Subservicing Agreements, be required to pay to the Mortgagors interest on funds in this account to the extent
required by law. 
  
 (d) The Master Servicer shall advance the
payments referred to in the preceding subsection that are not timely paid by the Mortgagors or advanced by the Subservicers on the date when the tax, premium or other cost for which such payment is intended is due, but the Master Servicer shall be
required so to advance only to the extent that such advances, in the good faith judgment of the Master Servicer, will be recoverable by the Master Servicer out of Insurance Proceeds, Liquidation Proceeds or otherwise. 
  
 Section 3.09 Access to Certain Documentation and Information
Regarding the Mortgage Loans. 
  
 In the event that
compliance with this Section 3.09 shall make any Class of Certificates legal for investment by federally insured savings and loan associations, the Master Servicer shall provide, or cause the Subservicers to provide, to the Trustee, the Office
of Thrift Supervision or the FDIC and the supervisory agents and examiners thereof access to the documentation regarding the Mortgage Loans required by applicable regulations of the Office of Thrift Supervision, such access being afforded without
charge but only upon reasonable request and during normal business hours at the offices designated by the Master Servicer. The Master Servicer shall permit such representatives to photocopy any such documentation and shall provide equipment
for that purpose at a charge reasonably approximating the cost of such photocopying to the Master Servicer. 
  
 Section 3.10 Permitted Withdrawals from the Custodial Account. 
  
 (a) The Master Servicer may, from time to time as provided herein, make withdrawals from the Custodial Account of amounts on
deposit therein pursuant to Section 3.07 that are attributable to the Mortgage Loans for the following purposes: 
  
 (i) to make deposits into the Certificate Account in the amounts and in the manner provided for in Section 4.01; 
  
 (ii) to reimburse itself or the related Subservicer for
previously unreimbursed Advances, Servicing Advances or other expenses made pursuant to Sections 3.01, 3.07(a), 3.08, 3.11, 3.12(a), 3.14 and 4.04 or otherwise reimbursable pursuant to the terms of this Agreement, such withdrawal right being limited
to amounts received on the related Mortgage Loans (including, for this purpose, REO Proceeds, Insurance Proceeds, Liquidation Proceeds and proceeds from the purchase of a Mortgage Loan pursuant to Section 2.02, 2.03, 2.04 or 4.07) which
represent (A) Late Collections of Monthly 
  

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 Payments for which any such advance was made in the case of Subservicer Advances or Advances pursuant to
Section 4.04 and (B) recoveries of amounts in respect of which such advances were made in the case of Servicing Advances; 
  
 (iii) to pay to itself or the related Subservicer (if not previously retained by such Subservicer) out of each payment received by the
Master Servicer on account of interest on a Mortgage Loan as contemplated by Sections 3.14 and 3.16, an amount equal to that remaining portion of any such payment as to interest (but not in excess of the Servicing Fee and the Subservicing Fee, if
not previously retained) which, when deducted, will result in the remaining amount of such interest being interest at a rate per annum equal to the Net Mortgage Rate (or Modified Net Mortgage Rate in the case of a Modified Mortgage Loan) on the
amount specified in the amortization schedule of the related Mortgage Loan as the principal balance thereof at the beginning of the period respecting which such interest was paid after giving effect to any previous Curtailments; 
  
 (iv) to pay to itself as additional servicing compensation
any interest or investment income earned on funds and other property deposited in or credited to the Custodial Account that it is entitled to withdraw pursuant to Section 3.07(c); 
  
 (v) to pay to itself as additional servicing compensation any Foreclosure Profits, and any amounts remitted
by Subservicers as interest in respect of Curtailments pursuant to Section 3.08(b); 
  
  
 (vi) to pay to itself, a Subservicer, the Seller, the Depositor or any other appropriate Person, as the case
may be, with respect to each Mortgage Loan or property acquired in respect thereof that has been purchased or otherwise transferred pursuant to Section 2.02, 2.03, 2.04, 4.07 or 9.01, all amounts received thereon and not required to be
distributed to Certificateholders as of the date on which the related Stated Principal Balance or Purchase Price is determined; 
  
 (vii) to reimburse itself or the related Subservicer for any Nonrecoverable Advance or Advances in the manner and to the extent provided
in subsection (c) below, and any Advance or Servicing Advance made in connection with a modified Mortgage Loan that is in default or, in the judgment of the Master Servicer, default is reasonably foreseeable pursuant to Section 3.07(a), to
the extent the amount of the Advance or Servicing Advance was added to the Stated Principal Balance of the Mortgage Loan in a prior calendar month; 
  
 (viii) to reimburse itself or the Depositor for expenses incurred by and reimbursable to it or the Depositor pursuant to
Section 3.01(a), 3.11, 3.13, 3.14(c), 6.03, 10.01 or otherwise, or in connection with enforcing any repurchase, substitution or indemnification obligation of Seller (other than the Depositor or an Affiliate of the Depositor) pursuant to the
Seller’s Agreement; 
  
 (ix) to reimburse
itself for amounts expended by it (a) pursuant to Section 3.14 in good faith in connection with the restoration of property damaged by an Uninsured Cause, and (b) in connection with the liquidation of a Mortgage Loan or disposition of
an REO Property to the extent not otherwise reimbursed pursuant to clause (ii) or (viii) above; and 
  

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 (x) to withdraw any amount deposited in the Custodial Account that was not required to be
deposited therein pursuant to Section 3.07, including any payoff fees or penalties or any other additional amounts payable to the Master Servicer or Subservicer pursuant to the terms of the Mortgage Note. 
  
 (b) Since, in connection with withdrawals pursuant to clauses (ii), (iii),
(v) and (vi), the Master Servicer’s entitlement thereto is limited to collections or other recoveries on the related Mortgage Loan, the Master Servicer shall keep and maintain separate accounting, on a Mortgage Loan by Mortgage Loan basis,
for the purpose of justifying any withdrawal from the Custodial Account pursuant to such clauses. 
  
 (c) The Master Servicer shall be entitled to reimburse itself or the related Subservicer for any advance made in respect of a Mortgage Loan that the
Master Servicer determines to be a Nonrecoverable Advance by withdrawal from the Custodial Account of amounts on deposit therein attributable to the Mortgage Loans on any Certificate Account Deposit Date succeeding the date of such determination.
Such right of reimbursement in respect of a Nonrecoverable Advance relating to an Advance made pursuant to Section 4.04 on any such Certificate Account Deposit Date shall be limited to an amount not exceeding the portion of such advance
previously paid to Certificateholders (and not theretofore reimbursed to the Master Servicer or the related Subservicer). 
  
 Section 3.11 Maintenance of Primary Insurance Coverage. 
  
 (a) The Master Servicer shall not take, or permit any Subservicer to take, any action which would result in noncoverage
under any applicable Primary Insurance Policy of any loss which, but for the actions of the Master Servicer or Subservicer, would have been covered thereunder. To the extent coverage is available, the Master Servicer shall keep or cause to be kept
in full force and effect each such Primary Insurance Policy until the principal balance of the related Mortgage Loan secured by a Mortgaged Property is reduced to xx% or less of the Appraised Value at origination in the case of such a Mortgage Loan
having a Loan-to-Value Ratio at origination in excess of xx%, provided that such Primary Insurance Policy was in place as of the Cut-off Date and the Master Servicer had knowledge of such Primary Insurance Policy. The Master Servicer shall not
cancel or refuse to renew any such Primary Insurance Policy applicable to a Nonsubserviced Mortgage Loan, or consent to any Subservicer canceling or refusing to renew any such Primary Insurance Policy applicable to a Mortgage Loan subserviced by it,
that is in effect at the date of the initial issuance of the Certificates and is required to be kept in force hereunder unless the replacement Primary Insurance Policy for such canceled or non-renewed policy is maintained with an insurer whose
claims-paying ability is acceptable to each Rating Agency for mortgage pass-through certificates having a rating equal to or better than the lower of the then-current rating or the rating assigned to the Certificates as of the Closing Date by such
Rating Agency. 
  
 (b) In connection with its activities as
administrator and servicer of the Mortgage Loans, the Master Servicer agrees to present or to cause the related Subservicer to present, on 
  

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 behalf of the Master Servicer, the Subservicer, if any, the Trustee and Certificateholders, claims to the insurer under
any Primary Insurance Policies, in a timely manner in accordance with such policies, and, in this regard, to take or cause to be taken such reasonable action as shall be necessary to permit recovery under any Primary Insurance Policies respecting
defaulted Mortgage Loans. Pursuant to Section 3.07, any Insurance Proceeds collected by or remitted to the Master Servicer under any Primary Insurance Policies shall be deposited in the Custodial Account, subject to withdrawal pursuant to
Section 3.10. 
  
 Section 3.12 Maintenance of Fire
Insurance and Omissions and Fidelity Coverage. 
  
 (a) The
Master Servicer shall cause to be maintained for each Mortgage Loan fire insurance with extended coverage in an amount which is equal to the lesser of the principal balance owing on such Mortgage Loan (together with the principal balance of any
mortgage loan secured by a lien that is senior to the Mortgage Loan) or xx% of the insurable value of the improvements; provided, however, that such coverage may not be less than the minimum amount required to fully compensate for any loss or
damage on a replacement cost basis. To the extent it may do so without breaching the related Subservicing Agreement, the Master Servicer shall replace any Subservicer that does not cause such insurance, to the extent it is available, to be
maintained. The Master Servicer shall also cause to be maintained on property acquired upon foreclosure, or deed in lieu of foreclosure, of any Mortgage Loan, fire insurance with extended coverage in an amount which is at least equal to the
amount necessary to avoid the application of any co-insurance clause contained in the related hazard insurance policy. Pursuant to Section 3.07, any amounts collected by the Master Servicer under any such policies (other than amounts to
be applied to the restoration or repair of the related Mortgaged Property or property thus acquired or amounts released to the Mortgagor in accordance with the Master Servicer’s normal servicing procedures) shall be deposited in the Custodial
Account, subject to withdrawal pursuant to Section 3.10. Any cost incurred by the Master Servicer in maintaining any such insurance shall not, for the purpose of calculating monthly distributions to Certificateholders, be added to the
amount owing under the Mortgage Loan, notwithstanding that the terms of the Mortgage Loan so permit. Such costs shall be recoverable by the Master Servicer out of related late payments by the Mortgagor or out of Insurance Proceeds and
Liquidation Proceeds to the extent permitted by Section 3.10. It is understood and agreed that no earthquake or other additional insurance is to be required of any Mortgagor or maintained on property acquired in respect of a Mortgage
Loan other than pursuant to such applicable laws and regulations as shall at any time be in force and as shall require such additional insurance. Whenever the improvements securing a Mortgage Loan are located at the time of origination of
such Mortgage Loan in a federally designated special flood hazard area, the Master Servicer shall cause flood insurance (to the extent available) to be maintained in respect thereof. Such flood insurance shall be in an amount equal to the
lesser of (i) the amount required to compensate for any loss or damage to the Mortgaged Property on a replacement cost basis and (ii) the maximum amount of such insurance available for the related Mortgaged Property under the national
flood insurance program (assuming that the area in which such Mortgaged Property is located is participating in such program). 
  
 In the event that the Master Servicer shall obtain and maintain a blanket fire insurance policy with extended coverage insuring against hazard losses on
all of the Mortgage Loans, it shall conclusively be deemed to have satisfied its obligations as set forth in the first sentence of 
  

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 this Section 3.12(a), it being understood and agreed that such policy may contain a deductible clause, in which case
the Master Servicer shall, in the event that there shall not have been maintained on the related Mortgaged Property a policy complying with the first sentence of this Section 3.12(a) and there shall have been a loss which would have been
covered by such policy, deposit in the Certificate Account the amount not otherwise payable under the blanket policy because of such deductible clause. Any such deposit by the Master Servicer shall be made on the Certificate Account Deposit
Date next preceding the Distribution Date which occurs in the month following the month in which payments under any such policy would have been deposited in the Custodial Account. In connection with its activities as administrator and
servicer of the Mortgage Loans, the Master Servicer agrees to present, on behalf of itself, the Trustee and Certificateholders, claims under any such blanket policy. 
  
 (b) The Master Servicer shall obtain and maintain at its own expense and keep in full force and effect throughout the term
of this Agreement a blanket fidelity bond and an errors and omissions insurance policy covering the Master Servicer’s officers and employees and other persons acting on behalf of the Master Servicer in connection with its activities under this
Agreement. The amount of coverage shall be at least equal to the coverage that would be required by Fannie Mae or Freddie Mac, whichever is greater, with respect to the Master Servicer if the Master Servicer were servicing and administering
the Mortgage Loans for Fannie Mae or Freddie Mac. In the event that any such bond or policy ceases to be in effect, the Master Servicer shall obtain a comparable replacement bond or policy from an issuer or insurer, as the case may be,
meeting the requirements, if any, of the Program Guide and acceptable to the Depositor. Coverage of the Master Servicer under a policy or bond obtained by an Affiliate of the Master Servicer and providing the coverage required by this
Section 3.12(b) shall satisfy the requirements of this Section 3.12(b). 
  
 Section 3.13 Enforcement of Due-on-Sale Clauses; Assumption and Modification Agreements; Certain Assignments. 
  
 (a) When any Mortgaged Property is conveyed by the Mortgagor, the Master Servicer or Subservicer, to the extent it has knowledge of such conveyance, shall
enforce any due-on-sale clause contained in any Mortgage Note or Mortgage, to the extent permitted under applicable law and governmental regulations, but only to the extent that such enforcement will not adversely affect or jeopardize coverage under
any Required Insurance Policy. Notwithstanding the foregoing: (i) the Master Servicer shall not be deemed to be in default under this Section 3.13(a) by reason of any transfer or assumption which the Master Servicer is restricted by
law from preventing; and (ii) if the Master Servicer determines that it is reasonably likely that any Mortgagor will bring, or if any Mortgagor does bring, legal action to declare invalid or otherwise avoid enforcement of a due-on-sale clause
contained in any Mortgage Note or Mortgage, the Master Servicer shall not be required to enforce the due-on-sale clause or to contest such action. 
  
 (b) Subject to the Master Servicer’s duty to enforce any due-on-sale clause to the extent set forth in Section 3.13(a), in any case in which a
Mortgaged Property is to be conveyed to a Person by a Mortgagor, and such Person is to enter into an assumption or modification agreement or supplement to the Mortgage Note or Mortgage which requires the signature of the Trustee, or if an instrument
of release signed by the Trustee is required releasing the Mortgagor 
  

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 from liability on the Mortgage Loan, the Master Servicer is authorized, subject to the requirements of the sentence next
following, to execute and deliver, on behalf of the Trustee, the assumption agreement with the Person to whom the Mortgaged Property is to be conveyed and such modification agreement or supplement to the Mortgage Note or Mortgage or other
instruments as are reasonable or necessary to carry out the terms of the Mortgage Note or Mortgage or otherwise to comply with any applicable laws regarding assumptions or the transfer of the Mortgaged Property to such Person; provided,
however, none of such terms and requirements shall both constitute a “significant modification” effecting an exchange or reissuance of such Mortgage Loan under the Code (or final, temporary or proposed Treasury regulations promulgated
thereunder) and cause any REMIC created hereunder to fail to qualify as a REMIC under the Code or the imposition of any tax on “prohibited transactions” or “contributions” after the Startup Date under the REMIC Provisions.
The Master Servicer shall execute and deliver such documents only if it reasonably determines that (i) its execution and delivery thereof will not conflict with or violate any terms of this Agreement or cause the unpaid balance and interest on
the Mortgage Loan to be uncollectible in whole or in part, (ii) any required consents of insurers under any Required Insurance Policies have been obtained and (iii) subsequent to the closing of the transaction involving the assumption or
transfer (A) the Mortgage Loan will continue to be secured by a first mortgage lien pursuant to the terms of the Mortgage, (B) such transaction will not adversely affect the coverage under any Required Insurance Policies, (C) the
Mortgage Loan will fully amortize over the remaining term thereof, (D) no material term of the Mortgage Loan (including the interest rate on the Mortgage Loan) will be altered nor will the term of the Mortgage Loan be changed and (E) if
the seller/transferor of the Mortgaged Property is to be released from liability on the Mortgage Loan, the buyer/transferee of the Mortgaged Property would be qualified to assume the Mortgage Loan based on generally comparable credit quality and
such release will not (based on the Master Servicer’s or Subservicer’s good faith determination) adversely affect the collectability of the Mortgage Loan. Upon receipt of appropriate instructions from the Master Servicer in accordance with
the foregoing, the Trustee shall execute any necessary instruments for such assumption or substitution of liability as directed by the Master Servicer. Upon the closing of the transactions contemplated by such documents, the Master Servicer shall
cause the originals or true and correct copies of the assumption agreement, the release (if any), or the modification or supplement to the Mortgage Note or Mortgage to be delivered to the Trustee or the Custodian and deposited with the Mortgage File
for such Mortgage Loan. Any fee collected by the Master Servicer or such related Subservicer for entering into an assumption or substitution of liability agreement will be retained by the Master Servicer or such Subservicer as additional servicing
compensation. 
  
 (c) The Master Servicer or the related
Subservicer, as the case may be, shall be entitled to approve a request from a Mortgagor for a partial release of the related Mortgaged Property, the granting of an easement thereon in favor of another Person, any alteration or demolition of the
related Mortgaged Property or other similar matters if it has determined, exercising its good faith business judgment in the same manner as it would if it were the owner of the related Mortgage Loan, that the security for, and the timely and full
collectability of, such Mortgage Loan would not be adversely affected thereby and that any REMIC created hereunder would not fail to continue to qualify as a REMIC under the Code as a result thereof and (subject to Section 10.01(f)) that no tax
on “prohibited transactions” or “contributions” after the Startup Date would be imposed on any REMIC created hereunder as a result thereof. Any fee collected by the Master Servicer or the related Subservicer for processing such a
request will be retained by the Master Servicer or such Subservicer as additional servicing compensation. 
  

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 (d) Subject to any other applicable terms and conditions of this Agreement, the Trustee and Master
Servicer shall be entitled to approve an assignment in lieu of satisfaction with respect to any Mortgage Loan, provided the obligee with respect to such Mortgage Loan following such proposed assignment provides the Trustee and Master Servicer with a
“Lender Certification for Assignment of Mortgage Loan” in the form attached hereto as Exhibit M, in form and substance satisfactory to the Trustee and Master Servicer, providing the following: (i) that the Mortgage Loan is
secured by Mortgaged Property located in a jurisdiction in which an assignment in lieu of satisfaction is required to preserve lien priority, minimize or avoid mortgage recording taxes or otherwise comply with, or facilitate a refinancing under, the
laws of such jurisdiction; (ii) that the substance of the assignment is, and is intended to be, a refinancing of such Mortgage Loan and that the form of the transaction is solely to comply with, or facilitate the transaction under, such local
laws; (iii) that the Mortgage Loan following the proposed assignment will have a rate of interest more than the greater of (A) xx% and (B) xx% of the annual yield of the unmodified Mortgage Loan, below or above the rate of interest on
such Mortgage Loan prior to such proposed assignment; and (iv) that such assignment is at the request of the borrower under the related Mortgage Loan. Upon approval of an assignment in lieu of satisfaction with respect to any Mortgage Loan, the
Master Servicer shall receive cash in an amount equal to the unpaid principal balance of and accrued interest on such Mortgage Loan, and the Master Servicer shall treat such amount as a Principal Prepayment in Full with respect to such Mortgage Loan
for all purposes hereof. 
  
 Section 3.14 Realization Upon
Defaulted Mortgage Loans. 
  
 (a) The Master Servicer shall
foreclose upon or otherwise comparably convert (which may include an REO Acquisition) the ownership of properties securing such of the Mortgage Loans as come into and continue in default and as to which no satisfactory arrangements can be made for
collection of delinquent payments pursuant to Section 3.07. Alternatively, the Master Servicer may take other actions in respect of a defaulted Mortgage Loan, which may include (i) accepting a short sale (a payoff of the Mortgage
Loan for an amount less than the total amount contractually owed in order to facilitate a sale of the Mortgaged Property by the Mortgagor) or permitting a short refinancing (a payoff of the Mortgage Loan for an amount less than the total amount
contractually owed in order to facilitate refinancing transactions by the Mortgagor not involving a sale of the Mortgaged Property), (ii) arranging for a repayment plan or (iii) agreeing to a modification in accordance with
Section 3.07. In connection with such foreclosure or other conversion or action, the Master Servicer shall, consistent with Section 3.11, follow such practices and procedures as it shall deem necessary or advisable, as shall be normal and
usual in its general mortgage servicing activities and as shall be required or permitted by the Program Guide; provided that the Master Servicer shall not be liable in any respect hereunder if the Master Servicer is acting in connection with any
such foreclosure or other conversion or action in a manner that is consistent with the provisions of this Agreement. The Master Servicer, however, shall not be required to expend its own funds or incur other reimbursable charges in connection
with any foreclosure, or attempted foreclosure which is not completed, or towards the correction of any default on a related senior mortgage loan, or towards the restoration of any property unless it shall determine (i) that such restoration
and/or foreclosure will increase the 
  

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 proceeds of liquidation of the Mortgage Loan to Holders of Certificates of one or more Classes after reimbursement to
itself for such expenses or charges and (ii) that such expenses and charges will be recoverable to it through Liquidation Proceeds, Insurance Proceeds, or REO Proceeds (respecting which it shall have priority for purposes of withdrawals from
the Custodial Account pursuant to Section 3.10, whether or not such expenses and charges are actually recoverable from related Liquidation Proceeds, Insurance Proceeds or REO Proceeds). In the event of such a determination by the Master
Servicer pursuant to this Section 3.14(a), the Master Servicer shall be entitled to reimbursement of its funds so expended pursuant to Section 3.10. In addition, the Master Servicer may pursue any remedies that may be available in
connection with a breach of a representation and warranty with respect to any such Mortgage Loan in accordance with Sections 2.03 and 2.04. However, the Master Servicer is not required to continue to pursue both foreclosure (or similar
remedies) with respect to the Mortgage Loans and remedies in connection with a breach of a representation and warranty if the Master Servicer determines in its reasonable discretion that one such remedy is more likely to result in a greater recovery
as to the Mortgage Loan. Upon the occurrence of a Cash Liquidation or REO Disposition, following the deposit in the Custodial Account of all Insurance Proceeds, Liquidation Proceeds and other payments and recoveries referred to in the
definition of “Cash Liquidation” or “REO Disposition,” as applicable, upon receipt by the Trustee of written notification of such deposit signed by a Servicing Officer, the Trustee or any Custodian, as the case may be, shall
release to the Master Servicer the related Mortgage File and the Trustee shall execute and deliver such instruments of transfer or assignment prepared by the Master Servicer, in each case without recourse, as shall be necessary to vest in the Master
Servicer or its designee, as the case may be, the related Mortgage Loan, and thereafter such Mortgage Loan shall not be part of the Trust Fund. Notwithstanding the foregoing or any other provision of this Agreement, in the Master
Servicer’s sole discretion with respect to any defaulted Mortgage Loan or REO Property as to either of the following provisions, (i) a Cash Liquidation or REO Disposition may be deemed to have occurred if substantially all amounts expected
by the Master Servicer to be received in connection with the related defaulted Mortgage Loan or REO Property have been received, and (ii) for purposes of determining the amount of any Liquidation Proceeds, Insurance Proceeds, REO Proceeds or
other unscheduled collections or the amount of any Realized Loss, the Master Servicer may take into account minimal amounts of additional receipts expected to be received or any estimated additional liquidation expenses expected to be incurred in
connection with the related defaulted Mortgage Loan or REO Property. 
  
 (b) In the event that title to any Mortgaged Property is acquired by the Trust Fund as an REO Property by foreclosure or by deed in lieu of foreclosure, the deed or certificate of sale shall be issued to the Trustee or to its nominee on
behalf of Certificateholders. Notwithstanding any such acquisition of title and cancellation of the related Mortgage Loan, such REO Property shall (except as otherwise expressly provided herein) be considered to be an Outstanding Mortgage
Loan held in the Trust Fund until such time as the REO Property shall be sold. Consistent with the foregoing for purposes of all calculations hereunder so long as such REO Property shall be considered to be an Outstanding Mortgage Loan it
shall be assumed that, notwithstanding that the indebtedness evidenced by the related Mortgage Note shall have been discharged, such Mortgage Note and the related amortization schedule in effect at the time of any such acquisition of title (after
giving effect to any previous Curtailments and before any adjustment thereto by reason of any bankruptcy or similar proceeding or any moratorium or similar waiver or grace period) remain in effect. 
  

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 (c) In the event that the Trust Fund acquires any REO Property as aforesaid or otherwise in connection
with a default or imminent default on a Mortgage Loan, the Master Servicer on behalf of the Trust Fund shall dispose of such REO Property as soon as practicable, giving due consideration to the interests of the Certificateholders, but in all cases,
within three full years after the taxable year of its acquisition by the Trust Fund for purposes of Section 860G(a)(8) of the Code (or such shorter period as may be necessary under applicable state (including any state in which such property is
located) law to maintain the status of each REMIC created hereunder as a REMIC under applicable state law and avoid taxes resulting from such property failing to be foreclosure property under applicable state law) or, at the expense of the Trust
Fund, request, more than 60 days before the day on which such grace period would otherwise expire, an extension of such grace period unless the Master Servicer (subject to Section 10.01(f)) obtains for the Trustee an Opinion of Counsel,
addressed to the Trustee and the Master Servicer, to the effect that the holding by the Trust Fund of such REO Property subsequent to such period will not result in the imposition of taxes on “prohibited transactions” as defined in
Section 860F of the Code or cause any REMIC created hereunder to fail to qualify as a REMIC (for federal (or any applicable State or local) income tax purposes) at any time that any Certificates are outstanding, in which case the Trust Fund may
continue to hold such REO Property (subject to any conditions contained in such Opinion of Counsel). The Master Servicer shall be entitled to be reimbursed from the Custodial Account for any costs incurred in obtaining such Opinion of
Counsel, as provided in Section 3.10. Notwithstanding any other provision of this Agreement, no REO Property acquired by the Trust Fund shall be rented (or allowed to continue to be rented) or otherwise used by or on behalf of the Trust
Fund in such a manner or pursuant to any terms that would (i) cause such REO Property to fail to qualify as “foreclosure property” within the meaning of Section 860G(a)(8) of the Code or (ii) subject any REMIC created
hereunder to the imposition of any federal income taxes on the income earned from such REO Property, including any taxes imposed by reason of Section 860G(c) of the Code, unless the Master Servicer has agreed to indemnify and hold harmless the
Trust Fund with respect to the imposition of any such taxes. 
  
 (d) The proceeds of any Cash Liquidation, REO Disposition or purchase or repurchase of any Mortgage Loan pursuant to the terms of this Agreement, as well as any recovery (other than Subsequent Recoveries) resulting from a collection of
Liquidation Proceeds, Insurance Proceeds or REO Proceeds, will be applied in the following order of priority: first, to reimburse the Master Servicer or the related Subservicer in accordance with Section 3.10(a)(ii); second, to
the Certificateholders to the extent of accrued and unpaid interest on the Mortgage Loan, and any related REO Imputed Interest, at the Net Mortgage Rate (or the Modified Net Mortgage Rate in the case of a Modified Mortgage Loan), to the Due Date in
the related Due Period prior to the Distribution Date on which such amounts are to be distributed; third, to the Certificateholders as a recovery of principal on the Mortgage Loan (or REO Property); fourth, to all Servicing Fees and
Subservicing Fees payable therefrom (and the Master Servicer and the Subservicer shall have no claims for any deficiencies with respect to such fees which result from the foregoing allocation); and fifth, to Foreclosure Profits. 

 
 (e) In the event of a default on a Mortgage Loan one or more of whose
obligors is not a United States Person, in connection with any foreclosure or acquisition of a deed in lieu of foreclosure (together, “foreclosure”) in respect of such Mortgage Loan, the Master Servicer shall cause compliance with the
provisions of Treasury Regulation Section 1.1445-2(d)(3) (or any 
  

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 successor thereto) necessary to assure that no withholding tax obligation arises with respect to the proceeds of such
foreclosure except to the extent, if any, that proceeds of such foreclosure are required to be remitted to the obligors on such Mortgage Loan. 
  
 Section 3.15 Trustee to Cooperate; Release of Mortgage Files. 
  
 (a) Upon becoming aware of the payment in full of any Mortgage Loan, or upon the receipt by the Master Servicer of a
notification that payment in full will be escrowed in a manner customary for such purposes, the Master Servicer shall immediately notify the Trustee (if it holds the related Mortgage File) or the Custodian by a certification of a Servicing Officer
(which certification shall include a statement to the effect that all amounts received or to be received in connection with such payment which are required to be deposited in the Custodial Account pursuant to Section 3.07 have been or will be
so deposited), substantially in the form attached hereto as Exhibit G, or, in the case of a Custodian, an electronic request in a form acceptable to the Custodian, requesting delivery to it of the Mortgage File. Upon receipt of such
certification and request, the Trustee shall promptly release, or cause the Custodian to release, the related Mortgage File to the Master Servicer. The Master Servicer is authorized to execute and deliver to the Mortgagor the request for
reconveyance, deed of reconveyance or release or satisfaction of mortgage or such instrument releasing the lien of the Mortgage, together with the Mortgage Note with, as appropriate, written evidence of cancellation thereon and to cause the removal
from the registration on the MERS® System of such Mortgage and to execute and deliver, on behalf of the Trustee and the Certificateholders or any of them, any and all instruments of satisfaction or cancellation or of partial or full release,
including any applicable UCC termination statements. No expenses incurred in connection with any instrument of satisfaction or deed of reconveyance shall be chargeable to the Custodial Account or the Certificate Account. 
  
 (b) From time to time as is appropriate for the servicing or foreclosure of
any Mortgage Loan, the Master Servicer shall deliver to the Custodian, with a copy to the Trustee, a certificate of a Servicing Officer substantially in the form attached as Exhibit G hereto, or, in the case of a Custodian, an electronic
request in a form acceptable to the Custodian, requesting that possession of all, or any document constituting part of, the Mortgage File be released to the Master Servicer and certifying as to the reason for such release and that such release will
not invalidate any insurance coverage provided in respect of the Mortgage Loan under any Required Insurance Policy. Upon receipt of the foregoing, the Trustee shall deliver, or cause the Custodian to deliver, the Mortgage File or any document
therein to the Master Servicer. The Master Servicer shall cause each Mortgage File or any document therein so released to be returned to the Trustee, or the Custodian as agent for the Trustee when the need therefor by the Master Servicer no longer
exists, unless (i) the Mortgage Loan has been liquidated and the Liquidation Proceeds relating to the Mortgage Loan have been deposited in the Custodial Account or (ii) the Mortgage File or such document has been delivered directly or
through a Subservicer to an attorney, or to a public trustee or other public official as required by law, for purposes of initiating or pursuing legal action or other proceedings for the foreclosure of the Mortgaged Property either judicially or
non-judicially, and the Master Servicer has delivered directly or through a Subservicer to the Trustee a certificate of a Servicing Officer certifying as to the name and address of the Person to which such Mortgage File or such document was
delivered and the purpose or purposes of such delivery. In the event of the liquidation of a Mortgage Loan, the Trustee shall deliver the Request for Release with respect thereto to the Master Servicer upon the Trustee’s receipt of notification
from the Master Servicer of the deposit of the related Liquidation Proceeds in the Custodial Account. 
  

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 (c) The Trustee or the Master Servicer on the Trustee’s behalf shall execute and deliver to the
Master Servicer, if necessary, any court pleadings, requests for trustee’s sale or other documents necessary to the foreclosure or trustee’s sale in respect of a Mortgaged Property or to any legal action brought to obtain judgment against
any Mortgagor on the Mortgage Note or Mortgage or to obtain a deficiency judgment, or to enforce any other remedies or rights provided by the Mortgage Note or Mortgage or otherwise available at law or in equity. Together with such documents or
pleadings (if signed by the Trustee), the Master Servicer shall deliver to the Trustee a certificate of a Servicing Officer requesting that such pleadings or documents be executed by the Trustee and certifying as to the reason such documents or
pleadings are required and that the execution and delivery thereof by the Trustee shall not invalidate any insurance coverage under any Required Insurance Policy or invalidate or otherwise affect the lien of the Mortgage, except for the termination
of such a lien upon completion of the foreclosure or trustee’s sale. 
  
 Section 3.16 Servicing and Other Compensation; Compensating Interest. 
  
 (a) The Master Servicer, as compensation for its activities hereunder, shall be entitled to receive on each Distribution Date the amounts provided for by
clauses (iii), (iv), (v) and (vi) of Section 3.10(a), subject to clause (e) below. The amount of servicing compensation provided for in such clauses shall be accounted for on a Mortgage Loan-by-Mortgage Loan basis. In the event
that Liquidation Proceeds, Insurance Proceeds and REO Proceeds (net of amounts reimbursable therefrom pursuant to Section 3.10(a)(ii)) in respect of a Cash Liquidation or REO Disposition exceed the unpaid principal balance of such Mortgage Loan
plus unpaid interest accrued thereon (including REO Imputed Interest) at a per annum rate equal to the related Net Mortgage Rate (or the Modified Net Mortgage Rate in the case of a Modified Mortgage Loan), the Master Servicer shall be entitled to
retain therefrom and to pay to itself and/or the related Subservicer, any Foreclosure Profits and any Servicing Fee or Subservicing Fee considered to be accrued but unpaid. 
  
 (b) Additional servicing compensation in the form of assumption fees, late payment charges, investment income on amounts in
the Custodial Account or the Certificate Account or otherwise shall be retained by the Master Servicer or the Subservicer to the extent provided herein, subject to clause (e) below. Prepayment charges shall be deposited into the Certificate
Account and shall be paid on each Distribution Date to the holders of the Class SB Certificates. 
  
 (c) The Master Servicer shall be required to pay, or cause to be paid, all expenses incurred by it in connection with its servicing activities hereunder
(including payment of premiums for the Primary Insurance Policies, if any, to the extent such premiums are not required to be paid by the related Mortgagors, and the fees and expenses of the Trustee and any Custodian) and shall not be entitled to
reimbursement therefor except as specifically provided in Sections 3.10 and 3.14. 
  

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 (d) The Master Servicer’s right to receive servicing compensation may not be transferred in whole or
in part except in connection with the transfer of all of its responsibilities and obligations of the Master Servicer under this Agreement. 
  
 (e) Notwithstanding clauses (a) and (b) above, the amount of servicing compensation that the Master Servicer shall be entitled to receive for
its activities hereunder for the period ending on each Distribution Date shall be reduced (but not below zero) by the amount of Compensating Interest (if any) for such Distribution Date used to cover Prepayment Interest Shortfalls as provided in
Section 3.16(f) below. Such reduction shall be applied during such period as follows: first, to any Servicing Fee or Subservicing Fee to which the Master Servicer is entitled pursuant to Section 3.10(a)(iii); and second, to any income or
gain realized from any investment of funds held in the Custodial Account or the Certificate Account to which the Master Servicer is entitled pursuant to Sections 3.07(c) or 4.01(b), respectively. In making such reduction, the Master Servicer shall
not withdraw from the Custodial Account any such amount representing all or a portion of the Servicing Fee to which it is entitled pursuant to Section 3.10(a)(iii) and shall not withdraw from the Custodial Account or Certificate Account any
such amount to which it is entitled pursuant to Section 3.07(c) or 4.01(b). 
  
 (f) With respect to any Distribution Date, Prepayment Interest Shortfalls on the Mortgage Loans will be covered first, by the Master Servicer, but only to the extent such Prepayment Interest Shortfalls do not exceed
Eligible Master Servicing Compensation. 
  
 Section 3.17
Reports to the Trustee and the Depositor. 
  
 Not later
than fifteen days after each Distribution Date, the Master Servicer shall forward to the Trustee and the Depositor a statement, certified by a Servicing Officer, setting forth the status of the Custodial Account as of the close of business on such
Distribution Date as it relates to the Mortgage Loans and showing, for the period covered by such statement, the aggregate of deposits in or withdrawals from the Custodial Account in respect of the Mortgage Loans for each category of deposit
specified in Section 3.07 and each category of withdrawal specified in Section 3.10. 
  
 Section 3.18 Annual Statement as to Compliance. 
  
 (a) The Master Servicer will deliver to the Depositor and the Trustee on or before the earlier of (a) March 31 of each year or (b) with respect to any calendar year during which the Depositor’s
annual report on Form 10-K is required to be filed in accordance with the Exchange Act and the rules and regulations of the Commission, the date on which the annual report on Form 10-K is required to be filed in accordance with the Exchange Act and
the rules and regulations of the Commission, a servicer compliance certificate, signed by an authorized officer of the Master Servicer, as described in Item 1123 of Regulation AB, to the effect that: 
  
 (i) A review of the Master Servicer’s activities during
the reporting period and of its performance under this Agreement has been made under such officer’s supervision. 
  
 (ii) To the best of such officer’s knowledge, based on such review, the Master Servicer has fulfilled all of its obligations under
this Agreement in all materials respects 
  

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 throughout the reporting period or, if there has been a failure to fulfill any such obligation in any
material respect, specifying each such failure known to such officer and the nature and status thereof. 
  
 The Master Servicer shall use commercially reasonable efforts to obtain from all other parties participating in the servicing function any additional
certifications required under Item 1123 of Regulation AB to the extent required to be included in a Report on Form 10-K; provided, however, that a failure to obtain such certifications shall not be a breach of the Master Servicer’s
duties hereunder if any such party fails to deliver such a certification. 
  
 Section 3.19 Annual Independent Public Accountants’ Servicing Report. 
  
 On or before the earlier of (a) March 31 of each year or (b) with respect to any calendar year during which the Depositor’s annual
report on Form 10-K is required to be filed in accordance with the Exchange Act and the rules and regulations of the Commission, the date on which the annual report is required to be filed in accordance with the Exchange Act and the rules and
regulations of the Commission, the Master Servicer at its expense shall cause a firm of independent public accountants, which shall be members of the American Institute of Certified Public Accountants, to furnish a report to the Depositor and the
Trustee the attestation required under Item 1122(b) of Regulation AB. In rendering such statement, such firm may rely, as to matters relating to the direct servicing of mortgage loans by Subservicers, upon comparable statements for examinations
conducted by independent public accountants substantially in accordance with standards established by the American Institute of Certified Public Accountants (rendered within one year of such statement) with respect to such Subservicers. 

 
 Section 3.20 Right of the Depositor in Respect of the Master
Servicer. 
  
 The Master Servicer shall afford the Depositor
and the Trustee, upon reasonable notice, during normal business hours access to all records maintained by the Master Servicer in respect of its rights and obligations hereunder and access to officers of the Master Servicer responsible for such
obligations. Upon request, the Master Servicer shall furnish the Depositor with its most recent financial statements and such other information as the Master Servicer possesses regarding its business, affairs, property and condition, financial or
otherwise. The Master Servicer shall also cooperate with all reasonable requests for information including, but not limited to, notices, tapes and copies of files, regarding itself, the Mortgage Loans or the Certificates from any Person or Persons
identified by the Depositor or the Seller. The Depositor may enforce the obligation of the Master Servicer hereunder and may, but it is not obligated to, perform or cause a designee to perform, any defaulted obligation of the Master Servicer
hereunder or exercise the rights of the Master Servicer hereunder; provided that the Master Servicer shall not be relieved of any of its obligations hereunder by virtue of such performance by the Depositor or its designee. Neither the Depositor nor
the Trustee shall have the responsibility or liability for any action or failure to act by the Master Servicer and the Depositor is not obligated to supervise the performance of the Master Servicer under this Agreement or otherwise. 
  

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 Section 3.21 Advance Facility. 
  
 (a) The Master Servicer is hereby authorized to enter into a financing or other facility (any such arrangement, an
“Advance Facility”) under which (1) the Master Servicer sells, assigns or pledges to another Person (an “Advancing Person”) the Master Servicer’s rights under this Agreement to be reimbursed for any Advances or
Servicing Advances and/or (2) an Advancing Person agrees to fund some or all Advances and/or Servicing Advances required to be made by the Master Servicer pursuant to this Agreement. No consent of the Depositor, the Trustee, the
Certificateholders or any other party shall be required before the Master Servicer may enter into an Advance Facility. Notwithstanding the existence of any Advance Facility under which an Advancing Person agrees to fund Advances and/or Servicing
Advances on the Master Servicer’s behalf, the Master Servicer shall remain obligated pursuant to this Agreement to make Advances and Servicing Advances pursuant to and as required by this Agreement. If the Master Servicer enters into an Advance
Facility, and for so long as an Advancing Person remains entitled to receive reimbursement for any Advances including Nonrecoverable Advances (“Advance Reimbursement Amounts”) and/or Servicing Advances including Nonrecoverable Advances
(“Servicing Advance Reimbursement Amounts” and together with Advance Reimbursement Amounts, “Reimbursement Amounts”) (in each case to the extent such type of Reimbursement Amount is included in the Advance Facility), as
applicable, pursuant to this Agreement, then the Master Servicer shall identify such Reimbursement Amounts consistent with the reimbursement rights set forth in Section 3.10(a)(ii) and (vii) and remit such Reimbursement Amounts in
accordance with this Section 3.21 or otherwise in accordance with the documentation establishing the Advance Facility to such Advancing Person or to a trustee, agent or custodian (an “Advance Facility Trustee”) designated by such
Advancing Person in an Advance Facility Notice described below in Section 3.21(b). Notwithstanding the foregoing, if so required pursuant to the terms of the Advance Facility, the Master Servicer may direct, and if so directed in writing, the
Trustee is hereby authorized to and shall pay to the Advance Facility Trustee the Reimbursement Amounts identified pursuant to the preceding sentence. An Advancing Person whose obligations hereunder are limited to the funding of Advances and/or
Servicing Advances shall not be required to meet the qualifications of a Master Servicer or a Subservicer pursuant to Section 3.02(a) or 6.02(c) and shall not be deemed to be a Subservicer under this Agreement. Notwithstanding anything to the
contrary herein, in no event shall Advance Reimbursement Amounts or Servicing Advance Reimbursement Amounts be included in the Available Distribution Amount or distributed to Certificateholders. 
  
 (b) If the Master Servicer enters into an Advance Facility and makes the
election set forth in Section 3.21(a), the Master Servicer and the related Advancing Person shall deliver to the Trustee a written notice and payment instruction (an “Advance Facility Notice”), providing the Trustee with written
payment instructions as to where to remit Advance Reimbursement Amounts and/or Servicing Advance Reimbursement Amounts (each to the extent such type of Reimbursement Amount is included within the Advance Facility) on subsequent Distribution Dates.
The payment instruction shall require the applicable Reimbursement Amounts to be distributed to the Advancing Person or to an Advance Facility Trustee designated in the Advance Facility Notice. An Advance Facility Notice may only be terminated by
the joint written direction of the Master Servicer and the related Advancing Person (and any related Advance Facility Trustee). 
  

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 (c) Reimbursement Amounts shall consist solely of amounts in respect of Advances and/or Servicing
Advances made with respect to the Mortgage Loans for which the Master Servicer would be permitted to reimburse itself in accordance with Section 3.10(a)(ii) and (vii), assuming the Master Servicer or the Advancing Person had made the related
Advance(s) and/or Servicing Advance(s). Notwithstanding the foregoing, except with respect to reimbursement of Nonrecoverable Advances as set forth in Section 3.10(c) of this Agreement, no Person shall be entitled to reimbursement from funds
held in the Collection Account for future distribution to Certificateholders pursuant to this Agreement. Neither the Depositor nor the Trustee shall have any duty or liability with respect to the calculation of any Reimbursement Amount, nor shall
the Depositor or the Trustee have any responsibility to track or monitor the administration of the Advance Facility and the Depositor shall not have any responsibility to track, monitor or verify the payment of Reimbursement Amounts to the related
Advancing Person or Advance Facility Trustee. The Master Servicer shall maintain and provide to any successor master servicer a detailed accounting on a loan-by-loan basis as to amounts advanced by, sold, pledged or assigned to, and reimbursed to
any Advancing Person. The successor master servicer shall be entitled to rely on any such information provided by the Master Servicer, and the successor master servicer shall not be liable for any errors in such information. 
  
 (d) Upon the direction of and at the expense of the Master Servicer, the
Trustee agrees to execute such acknowledgments, certificates, and other documents reasonably satisfactory to the Trustee provided by the Master Servicer and reasonable satisfactory to the Trustee recognizing the interests of any Advancing Person or
Advance Facility Trustee in such Reimbursement Amounts as the Master Servicer may cause to be made subject to Advance Facilities pursuant to this Section 3.21, and such other documents in connection with such Advance Facility as may be
reasonably requested from time to time by any Advancing Person or Advance Facility Trustee and reasonably satisfactory to the Trustee. 
  
 (e) Reimbursement Amounts collected with respect to each Mortgage Loan shall be allocated to outstanding unreimbursed Advances or Servicing Advances (as
the case may be) made with respect to that Mortgage Loan on a “first-in, first out” (“FIFO”) basis, subject to the qualifications set forth below: 
  
 (i) Any successor Master Servicer to the Master Servicer (a “Successor Master Servicer”) and the
Advancing Person or Advance Facility Trustee shall be required to apply all amounts available in accordance with this Section 3.21(e) to the reimbursement of Advances and Servicing Advances in the manner provided for herein; provided, however,
that after the succession of a Successor Master Servicer, (A) to the extent that any Advances or Servicing Advances with respect to any particular Mortgage Loan are reimbursed from payments or recoveries, if any, from the related Mortgagor, and
Liquidation Proceeds or Insurance Proceeds, if any, with respect to that Mortgage Loan, reimbursement shall be made, first, to the Advancing Person or Advance Facility Trustee in respect of Advances and/or Servicing Advances related to that Mortgage
Loan to the extent of the interest of the Advancing Person or Advance Facility Trustee in such Advances and/or Servicing Advances, second to the Master Servicer in respect of Advances and/or Servicing Advances related to that Mortgage Loan in excess
of those in which the Advancing Person or Advance Facility Trustee Person has an interest, and third, to the Successor Master Servicer in respect of any other Advances and/or Servicing 
  

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 Advances related to that Mortgage Loan, from such sources as and when collected, and
(B) reimbursements of Advances and Servicing Advances that are Nonrecoverable Advances shall be made pro rata to the Advancing Person or Advance Facility Trustee, on the one hand, and any such Successor Master Servicer, on the other hand, on
the basis of the respective aggregate outstanding unreimbursed Advances and Servicing Advances that are Nonrecoverable Advances owed to the Advancing Person, Advance Facility Trustee or Master Servicer pursuant to this Agreement, on the one hand,
and any such Successor Master Servicer, on the other hand, and without regard to the date on which any such Advances or Servicing Advances shall have been made. In the event that, as a result of the FIFO allocation made pursuant to this
Section 3.21(e), some or all of a Reimbursement Amount paid to the Advancing Person or Advance Facility Trustee relates to Advances or Servicing Advances that were made by a Person other than the Master Servicer or the Advancing Person or
Advance Facility Trustee, then the Advancing Person or Advance Facility Trustee shall be required to remit any portion of such Reimbursement Amount to the Person entitled to such portion of such Reimbursement Amount. Without limiting the generality
of the foregoing, the Master Servicer shall remain entitled to be reimbursed by the Advancing Person or Advance Facility Trustee for all Advances and Servicing Advances funded by the Master Servicer to the extent the related Reimbursement Amount(s)
have not been assigned or pledged to an Advancing Person or Advance Facility Trustee. The documentation establishing any Advance Facility shall require the Master Servicer to provide to the related Advancing Person or Advance Facility Trustee loan
by loan information with respect to each Reimbursement Amount distributed to such Advancing Person or Advance Facility Trustee on each date of remittance thereof to such Advancing Person or Advance Facility Trustee, to enable the Advancing Person or
Advance Facility Trustee to make the FIFO allocation of each Reimbursement Amount with respect to each Mortgage Loan. 
  
 (ii) By way of illustration, and not by way of limiting the generality of the foregoing, if the Master Servicer resigns or is terminated
at a time when the Master Servicer is a party to an Advance Facility, and is replaced by a Successor Master Servicer, and the Successor Master Servicer directly funds Advances or Servicing Advances with respect to a Mortgage Loan and does not assign
or pledge the related Reimbursement Amounts to the related Advancing Person or Advance Facility Trustee, then all payments and recoveries received from the related Mortgagor or received in the form of Liquidation Proceeds with respect to such
Mortgage Loan (including Insurance Proceeds collected in connection with a liquidation of such Mortgage Loan) will be allocated first to the Advancing Person or Advance Facility Trustee until the related Reimbursement Amounts attributable to such
Mortgage Loan that are owed to the Master Servicer and the Advancing Person, which were made prior to any Advances or Servicing Advances made by the Successor Master Servicer, have been reimbursed in full, at which point the Successor Master
Servicer shall be entitled to retain all related Reimbursement Amounts subsequently collected with respect to that Mortgage Loan pursuant to Section 3.10 of this Agreement. To the extent that the Advances or Servicing Advances are
Nonrecoverable Advances to be reimbursed on an aggregate basis pursuant to Section 3.10 of this Agreement, the reimbursement paid in this manner will be made pro rata to the Advancing Person or Advance Facility Trustee, on the one hand, and the
Successor Master Servicer, on the other hand, as described in clause (i)(B) above. 
  

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 (f) The Master Servicer shall remain entitled to be reimbursed for all Advances and Servicing Advances
funded by the Master Servicer to the extent the related rights to be reimbursed therefor have not been sold, assigned or pledged to an Advancing Person. 
  
 (g) Any amendment to this Section 3.21 or to any other provision of this Agreement that may be necessary or appropriate to effect the terms of an
Advance Facility as described generally in this Section 3.21, including amendments to add provisions relating to a successor master servicer, may be entered into by the Trustee, the Depositor and the Master Servicer without the consent of any
Certificateholder, with written confirmation from each Rating Agency that the amendment will not result in the reduction of the ratings on any class of the Certificates below the lesser of the then current or original ratings on such Certificates
and delivery of an Opinion of Counsel as required under Section 11.01(c), notwithstanding anything to the contrary in Section 11.01 of or elsewhere in this Agreement. 
  
 (h) Any rights of set-off that the Trust Fund, the Trustee, the Depositor, any Successor Master Servicer or any other Person
might otherwise have against the Master Servicer under this Agreement shall not attach to any rights to be reimbursed for Advances or Servicing Advances that have been sold, transferred, pledged, conveyed or assigned to any Advancing Person.

  
 (i) At any time when an Advancing Person shall have ceased
funding Advances and/or Servicing Advances (as the case may be) and the Advancing Person or related Advance Facility Trustee shall have received Reimbursement Amounts sufficient in the aggregate to reimburse all Advances and/or Servicing Advances
(as the case may be) the right to reimbursement for which were assigned to the Advancing Person, then upon the delivery of a written notice signed by the Advancing Person and the Master Servicer or its successor or assign) to the Trustee terminating
the Advance Facility Notice (the “Notice of Facility Termination”), the Master Servicer or its Successor Master Servicer shall again be entitled to withdraw and retain the related Reimbursement Amounts from the Custodial Account pursuant
to Section 3.10. 
  
 (j) After delivery of any Advance
Facility Notice, and until any such Advance Facility Notice has been terminated by a Notice of Facility Termination, this Section 3.21 may not be amended or otherwise modified without the prior written consent of the related Advancing Person.

  
 ARTICLE IV 
 PAYMENTS TO CERTIFICATEHOLDERS 
  
 Section 4.01 Certificate Account. 
  
 (a) The Master Servicer acting as agent of the Trustee shall establish and maintain a Certificate Account in which the Master Servicer shall cause to be
deposited on behalf of the Trustee on or before 2:00 P.M. New York time on each Certificate Account Deposit Date by wire transfer of immediately available funds an amount equal to the sum of (i) any Advance for the immediately succeeding
Distribution Date, (ii) any amount required to be deposited in the Certificate Account pursuant to Section 3.12(a), (iii) any amount required to be deposited in the 
  

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 Certificate Account pursuant to Section 3.16(e) or 4.07, (iv) any amount required to be paid pursuant to
Section 9.01, and (v) other amounts constituting the Available Distribution Amount for the immediately succeeding Distribution Date. 
  
 (b) The Trustee shall, upon written request from the Master Servicer, invest or cause the institution maintaining the Certificate Account to invest the
funds in the Certificate Account in Permitted Investments designated in the name of the Trustee for the benefit of the Certificateholders, which shall mature not later than the Business Day next preceding the Distribution Date next following the
date of such investment (except that (i) if such Permitted Investment is an obligation of the institution that maintains such account or fund for which such institution serves as custodian, then such Permitted Investment may mature on such
Distribution Date and (ii) any other investment may mature on such Distribution Date if the Trustee shall advance funds on such Distribution Date to the Certificate Account in the amount payable on such investment on such Distribution Date,
pending receipt thereof to the extent necessary to make distributions on the Certificates) and shall not be sold or disposed of prior to maturity. All income and gain realized from any such investment shall be for the benefit of the Master
Servicer and shall be subject to its withdrawal or order from time to time. The amount of any losses incurred in respect of any such investments shall be deposited in the Certificate Account by the Master Servicer out of its own funds
immediately as realized. 
  
 Section 4.02
Distributions. 
  
 (a) On each Distribution Date, the
Trustee (or the Paying Agent on behalf of the Trustee) shall allocate and distribute the Available Distribution Amount, if any, for such date to the interests issued in respect of REMIC I and REMIC II as specified in this Section. 
  
 (b) (1) On each Distribution Date, the REMIC I Distribution Amount shall
be distributed by REMIC I to REMIC II on account of the REMIC I Regular Interests and to Holders of the Class R-I Certificates in the amounts and with the priorities set forth in the definition thereof. 
  
 (2) Notwithstanding the distributions described in this
Section 4.02(b), distribution of funds from the Certificate Account shall be made only in accordance with Section 4.02(c). 
  
 (c) On each Distribution Date (x) the Master Servicer on behalf of the Trustee or (y) the Paying Agent appointed by the Trustee, shall
distribute to each Certificateholder of record on the next preceding Record Date (other than as provided in Section 9.01 respecting the final distribution) either in immediately available funds (by wire transfer or otherwise) to the account of
such Certificateholder at a bank or other entity having appropriate facilities therefor, if such Certificateholder has so notified the Master Servicer or the Paying Agent, as the case may be, or, if such Certificateholder has not so notified the
Master Servicer or the Paying Agent by the Record Date, by check mailed to such Certificateholder at the address of such Holder appearing in the Certificate Register such Certificateholder’s share (which share with respect to each Class of
Certificates, shall be based on the aggregate of the Percentage Interests represented by Certificates of the applicable Class held by such Holder of the following amounts), in the following order of priority, in each case to the extent of the
Available Distribution Amount on 
  

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 deposit in the Certificate Account (except, with respect to clauses (iii), (vii) and (x) below, to the extent
of the remaining Available Distribution Amount plus the remaining Hedge Payment or, with respect to clause (x)(B) below, to the extent of prepayment charges on deposit in the Certificate Account): 
  
 (i) to the Class A Certificateholders, the
REMIC Interest Amount payable on the Class A Certificates with respect to such Distribution Date, plus any related amounts accrued pursuant to this clause (i) but remaining unpaid from any prior Distribution Date being paid from and
in reduction of the Available Distribution Amount for such Distribution Date; 
  
 (ii) to the Class M Certificateholders and Class B Certificateholders, from the amount, if any, of the Available Distribution Amount remaining after the foregoing distributions, the REMIC Interest Amount
payable on the Class M Certificates and Class B Certificates with respect to such Distribution Date, plus any related amounts accrued pursuant to this clause (ii) but remaining unpaid from any prior Distribution Date, sequentially, to the
Class M-1 Certificateholders, Class M-2 Certificateholders, Class M-3 Certificateholders, Class M-4 Certificateholders, Class M-5 Certificateholders, Class M-6 Certificateholders, Class M-7 Certificateholders,
Class M-8 Certificateholders, Class M-9 Certificateholders, Class M-10 Certificateholders, Class B-1 Certificateholders, Class B-2 Certificateholders, Class B-3 Certificateholders and Class B-4 Certificateholders,
in that order, being paid from and in reduction of the Available Distribution Amount for such Distribution Date; 
  
 (iii) to the Class A Certificateholders, Class M Certificateholders and Class B Certificateholders, the related Accrued
Certificate Interest in excess of the REMIC Interest Amount, if any, pro rata, based upon the amount of the related Accrued Certificate Interest in excess of the REMIC Interest Amount due thereon, being paid from and in reduction of the
Hedge Payment for such Distribution Date; 
  
 (iv) the Principal Distribution Amount shall be distributed as follows, to be applied to reduce the Certificate Principal Balance of the applicable Certificates in each case to the extent of the remaining Principal Distribution Amount:

  
 (A) first, the Class A Principal
Distribution Amount, sequentially, to the Class A-[1] Certificateholders, Class A-[2] Certificateholders, Class A-[3] Certificateholders and Class A-[4] Certificateholders, in that order, until the aggregate Certificate Principal
Balance of the Class A Certificates has been reduced to zero; 
  
 (B) second, to the Class M-1 Certificateholders, the Class M-1 Principal Distribution Amount, until the Certificate Principal Balance of the Class M-1 Certificates has been reduced to zero; 
  
 (C) third, to the Class M-2 Certificateholders, the
Class M-2 Principal Distribution Amount, until the Certificate Principal Balance of the Class M-2 Certificates has been reduced to zero; 
  

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 (D) fourth, to the Class M-3 Certificateholders, the Class M-3 Principal
Distribution Amount, until the Certificate Principal Balance of the Class M-3 Certificates has been reduced to zero; 
  
 (E) fifth, to the Class M-4 Certificateholders, the Class M-4 Principal Distribution Amount, until the Certificate Principal
Balance of the Class M-4 Certificates has been reduced to zero; 
  
 (F) sixth, to the Class M-5 Certificateholders, the Class M-5 Principal Distribution Amount, until the Certificate Principal Balance of the Class M-5 Certificates has been reduced to zero; 
  
 (G) seventh, to the Class M-6 Certificateholders, the
Class M-6 Principal Distribution Amount, until the Certificate Principal Balance of the Class M-6 Certificates has been reduced to zero; 
  
 (H) eighth, to the Class M-7 Certificateholders, the Class M-7 Principal Distribution Amount, until the Certificate Principal
Balance of the Class M-7 Certificates has been reduced to zero; 
  
 (I) ninth, to the Class M-8 Certificateholders, the Class M-8 Principal Distribution Amount, until the Certificate Principal Balance of the Class M-8 Certificates has been reduced to zero; 
  
 (J) tenth, to the Class M-9 Certificateholders, the
Class M-9 Principal Distribution Amount, until the Certificate Principal Balance of the Class M-9 Certificates has been reduced to zero; 
  
 (K) eleventh, to the Class M-10 Certificateholders, the Class M-10 Principal Distribution Amount, until the Certificate Principal
Balance of the Class M-10 Certificates has been reduced to zero; 
  
 (L) twelfth, to the Class B-1 Certificateholders, the Class B-1 Principal Distribution Amount, until the Certificate Principal Balance of the Class B-1 Certificates has been reduced to zero; 
  
 (M) thirteenth, to the Class B-2 Certificateholders,
the Class B-2 Principal Distribution Amount, until the Certificate Principal Balance of the Class B-2 Certificates has been reduced to zero; 
  
 (N) fourteenth, to the Class B-3 Certificateholders, the Class B-3 Principal Distribution Amount, until the Certificate Principal
Balance of the Class B-3 Certificates has been reduced to zero; and 
  
 (O) fifteenth, to the Class B-4 Certificateholders, the Class B-4 Principal Distribution Amount, until the Certificate Principal Balance of the Class B-4 Certificates has been reduced to zero; 
  

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 (v) to the Class A Certificateholders, Class M Certificateholders and Class B
Certificateholders, the amount of any Prepayment Interest Shortfalls allocated thereto for such Distribution Date, on a pro rata basis based on Prepayment Interest Shortfalls allocated thereto to the extent not offset by Eligible Master Servicing
Compensation on such Distribution Date; 
  
 (vi)
to the Class A Certificateholders, Class M Certificateholders and Class B Certificateholders, the amount of any Prepayment Interest Shortfalls previously allocated thereto remaining unpaid from prior Distribution Dates together with interest
thereon at the related Pass-Through Rate, on a pro rata basis based on unpaid Prepayment Interest Shortfalls previously allocated thereto; 
  
 (vii) (A) to the Class A Certificateholders, Class M Certificateholders and Class B Certificateholders, the amount of any unpaid
Basis Risk Shortfalls allocated thereto, sequentially, to the Class A Certificateholders, on a pro rata basis based on the amount of unpaid Basis Risk Shortfalls allocated thereto, and then, to the Class M-1, Class M-2, Class M-3, Class M-4,
Class M-5, Class M-6, Class M-7, Class M-8, Class M-9, Class M-10, Class B-1, Class B-2, Class B-3 and Class B-4 Certificateholders, in that order, the amount of any unpaid Basis Risk Shortfalls allocated thereto, in each case being
paid from and in reduction of the Hedge Payment remaining after the distributions in clause (iii) above, and (B) from the Available Distribution Amount remaining after making the distributions in clause (vi) above, first, to the
Class A Certificateholders, the amount of any Basis Risk Shortfalls allocated thereto and remaining unpaid after the distributions described in clause (vii)(A) above, on a pro rata basis based on the amount of unpaid Basis Risk Shortfalls
allocated thereto and then, sequentially, to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class M-9, Class M-10, Class B-1, Class B-2, Class B-3 and Class B-4 Certificateholders, in that
order, the amount of any Basis Risk Shortfalls allocated thereto and remaining unpaid after the distributions described in clause (vii)(A) above; 
  
 (viii) to the Class A Certificateholders, Class M Certificateholders and Class B Certificateholders, Relief Act Shortfalls allocated
thereto for such Distribution Date, on a pro rata basis based on Relief Act Shortfalls allocated thereto for such Distribution Date, 
  
 (ix) to the Class A Certificateholders, the principal portion of any Realized Losses previously allocated thereto and remaining
unreimbursed, on a pro rata basis based on their respective principal portion of any Realized Losses previously allocated to those Certificates and remaining unreimbursed, and then, sequentially, to the Class M-1, Class M-2, Class M-3,
Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class M-9, Class M-10, Class B-1, Class B-2, Class B-3 and Class B-4 Certificateholders, in that order, the principal portion of any Realized Losses previously allocated
thereto and remaining unreimbursed; 
  
 (x) to
the Class SB Certificates, (A) from the amount, if any, of the Excess Cash Flow remaining after the foregoing distributions, the sum of (I) Accrued Certificate Interest thereon, (II) the amount of any Overcollateralization
Reduction Amount for such Distribution Date, (III) the amount of any Hedge Shortfall Amount for such Distribution 
  

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 Date, (IV) the amount of any Hedge Shortfall Carry-Forward Amount for such Distribution Date and
(V) for any Distribution Date after the Certificate Principal Balance of each Class of Class A Certificates, Class M Certificates and Class B Certificates has been reduced to zero, the Overcollateralization Amount, (B) from
prepayment charges on deposit in the Certificate Account, any prepayment charges received on the Mortgage Loans during the related Prepayment Period and (C) from the Hedge Payment, if any, the amount of such Hedge Payment remaining after the
foregoing distributions; and 
  
 (xi) to the
Class R-II Certificateholders, the balance, if any, of the Excess Cash Flow. 
  
 (d) Notwithstanding the foregoing clause (c), upon the reduction of the Certificate Principal Balance of a Class of Class A Certificates, Class M Certificates or Class B Certificates to zero, such Class of
Certificates will not be entitled to further distributions pursuant to Section 4.02. 
  
 (e) Each distribution with respect to a Book-Entry Certificate shall be paid to the Depository, as Holder thereof, and the Depository shall be responsible for crediting the amount of such distribution to the accounts
of its Depository Participants in accordance with its normal procedures. Each Depository Participant shall be responsible for disbursing such distribution to the Certificate Owners that it represents and to each indirect participating
brokerage firm (a “brokerage firm” or “indirect participating firm”) for which it acts as agent. Each brokerage firm shall be responsible for disbursing funds to the Certificate Owners that it represents. None of
the Trustee, the Certificate Registrar, the Depositor or the Master Servicer shall have any responsibility therefor except as otherwise provided by this Agreement or applicable law. 
  
 (f) Except as otherwise provided in Section 9.01, if the Master Servicer anticipates that a final distribution with
respect to any Class of Certificates will be made on the next Distribution Date, the Master Servicer shall, no later than the Determination Date in the month of such final distribution, notify the Trustee and the Trustee shall, no later than two
(2) Business Days after such Determination Date, mail on such date to each Holder of such Class of Certificates a notice to the effect that: (i) the Trustee anticipates that the final distribution with respect to such Class of Certificates
will be made on such Distribution Date but only upon presentation and surrender of such Certificates at the office of the Trustee or as otherwise specified therein, and (ii) no interest shall accrue on such Certificates from and after the end
of the prior calendar month. In the event that Certificateholders required to surrender their Certificates pursuant to Section 9.01(c) do not surrender their Certificates for final cancellation, the Trustee shall cause funds
distributable with respect to such Certificates to be held in the Certificate Account for the benefit of such Certificateholders as provided in Section 9.01(d). 
  
 Section 4.03 Statements to Certificateholders; Statements to Rating Agencies; Exchange Act Reporting.

  
 (a) Concurrently with each distribution charged to the
Certificate Account and with respect to each Distribution Date the Master Servicer shall forward to the Trustee and the Trustee shall forward by mail or otherwise make available electronically on its website (which may be obtained by any
Certificateholder by telephoning the Trustee at xxx-xxx-xxxx) to each Holder and the Depositor a statement setting forth the following information as to each Class of Certificates, in each case to the extent applicable: 
  
 (i) the applicable Record Date and Determination Date;

  

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 (ii) the aggregate amount of payments received with respect to the Mortgage Loans,
including prepayment amounts; 
  
 (iii) the
Servicing Fee and Subservicing Fee payable to the Master Servicer and the Subservicer; 
  
 (iv) the amount of any other fees or expenses paid, and the identity of the party receiving such fees or expenses; 
  
 (v) (a) the amount of such distribution to the
Certificateholders of such Class applied to reduce the Certificate Principal Balance thereof, and (b) the aggregate amount included therein representing Principal Prepayments; 
  
 (vi) the amount of such distribution to Holders of such Class of Certificates allocable to interest;

  
 (vii) if the distribution to the Holders of
such Class of Certificates is less than the full amount that would be distributable to such Holders if there were sufficient funds available therefor, the amount of the shortfall; 
  
 (viii) the aggregate Certificate Principal Balance of each Class of Certificates after giving effect to the
amounts distributed on such Distribution Date, separately identifying any reduction thereof due to Realized Losses other than pursuant to an actual distribution of principal; 
  
 (ix) the weighted average remaining term to maturity of the Mortgage Loans after giving effect to the
amounts distributed on such Distribution Date; 
  
 (x) the weighted average Loan Rates of the Mortgage Loans after giving effect to the amounts distributed on such Distribution Date; 
  
 (xi) if applicable, the Special Hazard Amount, Fraud Loss Amount and Bankruptcy Amount at the opening of business and as of the close of
business on the applicable Distribution Date and a description of any change in the calculation of those amounts; 
  
 (xii) the percentage of the outstanding principal balances of the Senior Securities after giving effect to the distributions on that
Distribution Date; 
  
 (xiii) the number and Pool
Balance of the Mortgage Loans after giving effect to the distribution of principal on such Distribution Date and the number of Mortgage Loans at the beginning and end of the preceding Collection Period; 
  

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 (xiv) on the basis of the most recent reports furnished to it by Sub-Servicers, the
number and aggregate principal balances of Mortgage Loans that are Delinquent (A) 30-59 days, (B) 60-89 days and (C) 90 or more days and the number and aggregate principal balance of Mortgage Loans that are in foreclosure; 

 
 (xv) the aggregate amount of Realized Losses for such
Distribution Date; 
  
 (xvi) any material
modifications, extensions or waivers to the terms of the Mortgage Loans during the Due Period or that have cumulatively become material over time; 
  
 (xvii) any material breaches of Mortgage Loan representations or warranties or covenants in the Agreement. 
  
 (xviii) [the Guaranteed Distribution for such Distribution
Date, and the respective portions thereof allocable to principal and interest for the Insured Securities;] 
  
 (xix) the related Subordinate Principal Payment Amount and Prepayment Payment Percentage, if applicable; 
  
 (xx) the number, aggregate principal balance and book value
of any REO Properties; 
  
 (xxi) the aggregate
accrued interest remaining unpaid, if any, for each Class of Certificates, after giving effect to the distribution made on such Distribution Date; 
  
 (xxii) the Pass-Through Rate on each Class of Certificates, the Net WAC Cap Rate and the Weighted Average Minimum Net Percentage Rate;

  
 (xxiii) [the Pass-Through Rates on the
[Floater Certificates] [and Inverse Floater Certificates] for such Payment Date, separately identifying LIBOR for such Payment Date;] 
  
 (xxiv) the Notional Amount with respect to each class of Interest Only Securities and each Subclass Notional Amount; 
  
 (xxv) [the occurrence of the Credit Support Depletion Date
[and the Accretion Termination Date;] 
  
 (xxvi)
[the related Senior Accelerated Distribution Percentage applicable to such distribution;] 
  
 (xxvii) [the related Senior Percentage for such Payment Date;] 
  
 (xxviii) the aggregate amount of any recoveries on previously foreclosed loans from Sellers due to a breach
of a representation or warranty assigned to the Trustee; 
  

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 (xxix) the amount, if any, to be paid by a Derivative Counterparty under a Derivative
Contract; and 
  
 (xxx) whether or not a
Servicing Trigger has occurred. 
  
 (xxxi) [the
amount of any payment made from the Reserve Fund on such Payment Date and the balance of the Reserve Fund after giving effect to such amounts.] 
  
 In the case of information furnished pursuant to clauses (i) and (ii) above, the amounts shall be expressed as a dollar amount per Certificate
with a $xxx,xxx denomination. In addition to the statement provided to the Trustee as set forth in this Section 4.03(a), the Master Servicer shall provide to any manager of a trust fund consisting of some or all of the Certificates, upon
reasonable request, such additional information as is reasonably obtainable by the Master Servicer at no additional expense to the Master Servicer. Also, at the request of a Rating Agency, the Master Servicer shall provide the information relating
to the Reportable Modified Mortgage Loans substantially in the form attached hereto as Exhibit U to such Rating Agency within a reasonable period of time; provided, however, that the Master Servicer shall not be required to
provide such information more than four times in a calendar year to any Rating Agency. 
  
 (b) Within a reasonable period of time after the end of each calendar year, the Master Servicer shall prepare, or cause to be prepared, and shall forward, or cause to be forwarded, to each Person who at any time
during the calendar year was the Holder of a Certificate, other than a Class R Certificate, a statement containing the information set forth in clauses (i) and (ii) of subsection (a) above aggregated for such calendar year or
applicable portion thereof during which such Person was a Certificateholder. Such obligation of the Master Servicer shall be deemed to have been satisfied to the extent that substantially comparable information shall be provided by the Master
Servicer and Trustee pursuant to any requirements of the Code. 
  
 (c) Within a reasonable period of time after the end of each calendar year, the Master Servicer shall prepare, or cause to be prepared, and shall forward, or cause to be forwarded, to each Person who at any time during the calendar year was
the Holder of a Class R Certificate, a statement containing the applicable distribution information provided pursuant to this Section 4.03 aggregated for such calendar year or applicable portion thereof during which such Person was the Holder
of a Class R Certificate. Such obligation of the Master Servicer shall be deemed to have been satisfied to the extent that substantially comparable information shall be provided by the Master Servicer pursuant to any requirements of the Code.

  
 (d) As soon as reasonably practicable, upon the written
request of any Class SB Certificateholder or Class R Certificateholder, the Master Servicer shall provide the requesting Certificateholder with such information as is necessary and appropriate, in the Master Servicer’s sole discretion, for
purposes of satisfying applicable reporting requirements under Rule 144A. 
  
 (e) The Master Servicer shall, on behalf of the Depositor and in respect of the Trust Fund, prepare and cause to be filed with the Commission any periodic reports required to be filed under the provisions of the
Exchange Act, and the rules and regulations of the Commission thereunder including, without limitation, reports on Form 10-K, Form 10-D and Form 8-K. In 
  

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 connection with the preparation and filing of such periodic reports, the Trustee shall timely provide to the Master
Servicer (I) a list of Certificateholders as shown on the Register as of the end of each calendar year, (II) copies of all pleadings, other legal process and any other documents relating to any claims, charges or complaints involving the
Trustee, as trustee hereunder, or the Trust Fund that are received by the Trustee, (III) notice of all matters that, to the actual knowledge of a Responsible Officer of the Trustee, have been submitted to a vote of the Certificateholders, other than
those matters that have been submitted to a vote of the Certificateholders at the request of the Depositor or the Master Servicer, and (IV) notice of any failure of the Trustee to make any distribution to the Certificateholders as required pursuant
to this Agreement. Neither the Master Servicer nor the Trustee shall have any liability with respect to the Master Servicer’s failure to properly prepare or file such periodic reports resulting from or relating to the Master Servicer’s
inability or failure to obtain any information not resulting from the Master Servicer’s own negligence or willful misconduct. 
  
 (f) Any Form 10-K filed with the Commission in connection with this Section 4.03 shall include: 
  
 (i) A certification, signed by the senior officer in charge
of the servicing functions of the Master Servicer, in the form attached as Exhibit T-1 hereto or such other form as may be required or permitted by the Commission (the “Form 10-K Certification”), in compliance with Rules 13a-14 and 15d-14
under the Exchange Act and any additional directives of the Commission. 
  
 (ii) A report regarding its assessment of compliance during the preceding calendar year with all applicable servicing criteria set forth in relevant Commission regulations with respect to mortgage-backed securities
transactions taken as a whole involving the Master Servicer that are backed by the same types of assets as those backing the certificates, as well as similar reports on assessment of compliance received from other parties participating in the
servicing function as required by relevant Commission regulations, as described in Item 1122(a) of Regulation AB. The Master Servicer shall obtain from all other parties participating in the servicing function any required certifications.

  
 (iii) With respect to each assessment report
described immediately above, a report by a registered public accounting firm that attests to, and reports on, the assessment made by the asserting party, as set forth in relevant Commission regulations, as described in Regulation 1122(b) of
Regulation AB and Section 3.18. 
  
 (iv) The
servicer compliance certificate required to be delivered pursuant Section 3.19. 
  
 (g) In connection with the Form 10-K Certification, the Trustee shall provide the Master Servicer with a back-up certification substantially in the form attached hereto as Exhibit T-2. 
  
 (h) This Section 4.03 may be amended in accordance with this Agreement
without the consent of the Certificateholders. 
  

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 Section 4.04 Distribution of Reports to the Trustee and the Depositor; Advances by the Master
Servicer. 
  
 (a) Prior to the close of business on the
Business Day next succeeding each Determination Date, the Master Servicer shall furnish a written statement (which may be in a mutually agreeable electronic format) to the Trustee, any Paying Agent and the Depositor (the information in such
statement to be made available to Certificateholders by the Master Servicer on request) (provided that the Master Servicer shall use its best efforts to deliver such written statement not later than 12:00 p.m. New York time on the second Business
Day prior to the Distribution Date) setting forth (i) the Available Distribution Amount, (ii) the amounts required to be withdrawn from the Custodial Account and deposited into the Certificate Account on the immediately succeeding
Certificate Account Deposit Date pursuant to clause (iii) of Section 4.01(a), (iii) the amount of Prepayment Interest Shortfalls and Basis Risk Shortfalls and (iv) the Hedge Payment, if any, for such Distribution Date. The
determination by the Master Servicer of such amounts shall, in the absence of obvious error, be presumptively deemed to be correct for all purposes hereunder and the Trustee shall be protected in relying upon the same without any independent check
or verification. 
  
 (b) On or before 2:00 P.M. New York time on
each Certificate Account Deposit Date, the Master Servicer shall either (i) remit to the Trustee for deposit in the Certificate Account from its own funds, or funds received therefor from the Subservicers, an amount equal to the Advances to be
made by the Master Servicer in respect of the related Distribution Date, which shall be in an aggregate amount equal to the sum of (A) the aggregate amount of Monthly Payments other than Balloon Payments (with each interest portion thereof
adjusted to a per annum rate equal to the Net Mortgage Rate), less the amount of any related Servicing Modifications, Debt Service Reductions or Relief Act Shortfalls, on the Outstanding Mortgage Loans as of the related Due Date in the related Due
Period, which Monthly Payments were due during the related Due Period and not received as of the close of business as of the related Determination Date; provided that no Advance shall be made if it would be a Nonrecoverable Advance and (B) with
respect to each Balloon Loan delinquent in respect of its Balloon Payment as of the close of business on the related Determination Date, an amount equal to the assumed Monthly Payment (with each interest portion thereof adjusted to a per annum rate
equal to the Net Mortgage Rate) that would have been due on the related Due Date based on the original amortization schedule for such Balloon Loan until such Balloon Loan is finally liquidated, over any payments of interest or principal (with each
interest portion thereof adjusted to a per annum rate equal to the Net Mortgage Rate) received from the related Mortgagor as of the close of business on the related Determination Date and allocable to the Due Date during the related Due Period for
each month until such Balloon Loan is finally liquidated, (ii) withdraw from amounts on deposit in the Custodial Account and remit to the Trustee for deposit in the Certificate Account all or a portion of the Amount Held for Future Distribution
in discharge of any such Advance, or (iii) make advances in the form of any combination of clauses (i) and (ii) aggregating the amount of such Advance. Any portion of the Amount Held for Future Distribution so used shall be replaced
by the Master Servicer by deposit in the Certificate Account on or before 11:00 A.M. New York time on any future Certificate Account Deposit Date to the extent that funds attributable to the Mortgage Loans that are available in the Custodial Account
for deposit in the Certificate Account on such Certificate Account Deposit Date shall be less than payments to Certificateholders required to be made on the following 
  

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 Distribution Date. The Master Servicer shall be entitled to use any Advance made by a Subservicer as described in
Section 3.07(b) that has been deposited in the Custodial Account on or before such Distribution Date as part of the Advance made by the Master Servicer pursuant to this Section 4.04. The determination by the Master Servicer that it has
made a Nonrecoverable Advance or that any proposed Advance, if made, would constitute a Nonrecoverable Advance, shall be evidenced by a certificate of a Servicing Officer delivered to the Depositor and the Trustee. In the event that the Master
Servicer determines as of the Business Day preceding any Certificate Account Deposit Date that it will be unable to deposit in the Certificate Account an amount equal to the Advance required to be made for the immediately succeeding Distribution
Date, it shall give notice to the Trustee of its inability to advance (such notice may be given by telecopy), not later than 3:00 P.M., New York time, on such Business Day, specifying the portion of such amount that it will be unable to deposit. Not
later than 3:00 P.M., New York time, on the Certificate Account Deposit Date the Trustee shall, unless by 12:00 Noon, New York time, on such day the Trustee shall have been notified in writing (by telecopy) that the Master Servicer shall have
directly or indirectly deposited in the Certificate Account such portion of the amount of the Advance as to which the Master Servicer shall have given notice pursuant to the preceding sentence, pursuant to Section 7.01, (a) terminate all
of the rights and obligations of the Master Servicer under this Agreement in accordance with Section 7.01 and (b) assume the rights and obligations of the Master Servicer hereunder, including the obligation to deposit in the Certificate
Account an amount equal to the Advance for the immediately succeeding Distribution Date. The Trustee shall deposit all funds it receives pursuant to this Section 4.04(b) into the Certificate Account. 
  
 Section 4.05 Allocation of Realized Losses. 
  
 (a) Prior to each Distribution Date, the Master Servicer shall determine the
total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a
Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of
each Realized Loss shall be evidenced by an Officers’ Certificate. 
  
 (b) All Realized Losses on the Mortgage Loans shall be allocated as follows: 
  
 (i) first, to Excess Cash Flow in the amounts and priority as provided in Section 4.02; 
  
 (ii) second, in reduction of the
Overcollateralization Amount, until such amount has been reduced to zero; 
  
 (iii) third, to the Class B-4 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; 
  
 (iv) fourth, to the Class B-3 Certificates, until the aggregate Certificate Principal Balance thereof
has been reduced to zero; 
  

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 (v) fifth, to the Class B-2 Certificates, until the aggregate Certificate
Principal Balance thereof has been reduced to zero; 
  
 (vi) sixth, to the Class B-1 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; 
  
 (vii) seventh, to the Class M-10 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to
zero; 
  
 (viii) eighth, to the
Class M-9 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; 
  
 (ix) ninth, to the Class M-8 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero;

  
 (x) tenth, to the Class M-7
Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; 
  
 (xi) eleventh, to the Class M-6 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to
zero; 
  
 (xii) twelfth, to the
Class M-5 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; 
  
 (xiii) thirteenth, to the Class M-4 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced
to zero; 
  
 (xiv) fourteenth, to the
Class M-3 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; 
  
 (xv) fifteenth, to the Class M-2 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to
zero; 
  
 (xvi) sixteenth, to the
Class M-1 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; and 
  
 (xvii) seventeenth, to the Class A Certificates on a pro rata basis, based on their then outstanding Certificate Principal
Balances prior to giving effect to distributions to be made on such Distribution Date, until the aggregate Certificate Principal Balance of each such Class has been reduced to zero. 
  
 (c) An allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates
means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such
Distribution Date in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable on such Distribution Date in the case of an interest portion of a Realized Loss. Any allocation of the principal
portion of Realized Losses (other than Debt 
  

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 Service Reductions) to the Class A Certificates, Class M Certificates or Class B Certificates shall be made by
reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date; provided, that no such reduction shall reduce the aggregate Certificate Principal
Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) shall be
made by operation of the definition of “Accrued Certificate Interest” for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a
Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). Allocations of the principal portion of Debt Service Reductions shall be made by operation of the priority of payment provisions of
Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. 
  
 (d) All Realized Losses on the Mortgage Loans shall be allocated on each
Distribution Date to the REMIC I Regular Interests as provided in the definition of REMIC I Realized Losses. 
  
 (e) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this
Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized
Losses represent Realized Losses on an interest portion, be allocated to the REMIC II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued
Certificate Interest on the REMIC I Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of the REMIC II Regular
Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on the REMIC II Regular Interest SB-IO. 
  
 Section 4.06 Reports of Foreclosures and Abandonment of Mortgaged Property. 
  
 The Master Servicer or the Subservicers shall file information returns with
respect to the receipt of mortgage interest received in a trade or business, the reports of foreclosures and abandonments of any Mortgaged Property and the informational returns relating to cancellation of indebtedness income with respect to any
Mortgaged Property required by Sections 6050H, 6050J and 6050P of the Code, respectively, and deliver to the Trustee an Officers’ Certificate on or before March 31 of each year, beginning with the first March 31 that occurs at least
six months after the Cut-off Date, stating that such reports have been filed. Such reports shall be in form and substance sufficient to meet the reporting requirements imposed by such Sections 6050H, 6050J and 6050P of the Code. 

 

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 Section 4.07 Optional Purchase of Defaulted Mortgage Loans. 
  
 (a) With respect to any Mortgage Loan which is delinquent in payment by 90
days or more, the Master Servicer may, at its option, purchase such Mortgage Loan from the Trustee at the Purchase Price therefor; provided, that such Mortgage Loan that becomes 90 days or more delinquent during any given Calendar Quarter
shall only be eligible for purchase pursuant to this Section during the period beginning on the first Business Day of the following Calendar Quarter, and ending at the close of business on the second-to-last Business Day of such following Calendar
Quarter; and provided, further, that such Mortgage Loan is 90 days or more delinquent at the time of repurchase. Such option if not exercised shall not thereafter be reinstated as to any Mortgage Loan, unless the delinquency is cured
and the Mortgage Loan thereafter again becomes delinquent in payment by 90 days or more in a subsequent Calendar Quarter. 
  
 (b) In addition, with respect to any Mortgage Loan for which a Realized Loss was incurred during any Prepayment Period, the Master Servicer may, at its
option, purchase such Mortgage Loan from the Trustee at the Purchase Price therefor during such Prepayment Period. 
  
 (c) If at any time the Master Servicer makes a payment to the Certificate Account covering the amount of the Purchase Price for such a Mortgage Loan as
provided in clauses (a) and (b) above, and the Master Servicer provides to the Trustee a certification signed by a Servicing Officer stating that the amount of such payment has been deposited in the Certificate Account, then the Trustee
shall execute the assignment of such Mortgage Loan at the request of the Master Servicer without recourse to the Master Servicer which shall succeed to all the Trustee’s right, title and interest in and to such Mortgage Loan, and all security
and documents relative thereto. Such assignment shall be an assignment outright and not for security. The Master Servicer will thereupon own such Mortgage, and all such security and documents, free of any further obligation to the Trustee or the
Certificateholders with respect thereto. 
  
 Section 4.08
Hedge Agreement. 
  
 (a) In the event that the Trustee
does not receive by the Business Day preceding a Distribution Date the amount as specified by the Master Servicer pursuant to Section 4.04(a)(iv) as the amount to be paid with respect to such Distribution Date by the Hedge Agreement Provider
under the Hedge Agreement, the Trustee shall enforce the obligation of the Hedge Agreement Provider thereunder. The parties hereto acknowledge that the Hedge Agreement Provider shall be making all calculations, and determine the amounts to be paid,
under the Hedge Agreement. Absent manifest error, the Trustee may conclusively rely on such calculations and determination and any notice received by it from the Master Servicer pursuant to Section 4.04(a)(iv). 
  
 (b) The Trustee shall deposit or cause to be deposited any amount received
under the Hedge Agreement into the Certificate Account on the date such amount is received from the Hedge Agreement Provider under the Hedge Agreement (including termination payments, if any). All payments received under the Hedge Agreement shall be
distributed in accordance with the priorities set forth in Section 4.02(c). 
  

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 (c) In the event that the Hedge Agreement, or any replacement thereof, terminates prior to the
Distribution Date in [MONTH], the Master Servicer, but at no expense to the Master Servicer, on behalf of the Trustee, to the extent that the termination value under such Hedge Agreement is sufficient therefor and only to the extent of the
termination payment received from the Hedge Agreement Provider, shall (i) cause a new hedge counterparty to assume the obligations of such terminated hedge counterparty or (ii) cause a new hedge counterparty to enter into a new interest
rate hedge agreement with the Trust Fund having substantially similar terms as those set forth in the terminated Hedge Agreement. 
  
 ARTICLE V 
 THE CERTIFICATES

  
 Section 5.01 The Certificates. 
  
 (a) The Class A Certificates, Class M Certificates, Class B
Certificates, Class SB Certificates and Class R Certificates shall be substantially in the forms set forth in Exhibits A, B, C, D and E, respectively, and shall, on original issue, be executed and delivered by the Trustee to the Certificate
Registrar for authentication and delivery to or upon the order of the Depositor upon receipt by the Trustee or one or more Custodians of the documents specified in Section 2.01. Each Class of Class A Certificates, Class M-1 Certificates,
Class M-2 Certificates, Class M-3 Certificates and Class M-4 Certificates shall be issuable in minimum dollar denominations of $250,000 and integral multiples of $1 in excess thereof. The Class M-5 Certificates, Class M-6 Certificates, Class M-7
Certificates, Class M-8 Certificates, Class M-9 Certificates, Class M-10 Certificates and each Class of Class B Certificates shall be issuable in minimum dollar denominations of $250,000 and integral multiples of $1 in excess thereof. The Class SB
Certificates shall be issuable in registered, certificated form in minimum percentage interests of [            ]% and integral multiples of
[            ]% in excess thereof. Each Class of Class R Certificates shall be issued in registered, certificated form in minimum percentage interests of
[            ]% and integral multiples of [            ]% in excess thereof; provided, however, that one
Class R Certificate of each Class will be issuable to the REMIC Administrator as “tax matters person” pursuant to Section 10.01(c) in a minimum denomination representing a Percentage Interest of not less than
[            ]%. The Certificates shall be executed by manual or facsimile signature on behalf of an authorized officer of the Trustee. Certificates bearing the manual or
facsimile signatures of individuals who were at any time the proper officers of the Trustee shall bind the Trustee, notwithstanding that such individuals or any of them have ceased to hold such offices prior to the authentication and delivery of
such Certificate or did not hold such offices at the date of such Certificates. No Certificate shall be entitled to any benefit under this Agreement, or be valid for any purpose, unless there appears on such Certificate a certificate of
authentication substantially in the form provided for herein executed by the Certificate Registrar by manual signature, and such certificate upon any Certificate shall be conclusive evidence, and the only evidence, that such Certificate has been
duly authenticated and delivered hereunder. All Certificates shall be dated the date of their authentication. 
  
 (b) The Class A Certificates, Class B Certificates and Class M Certificates shall initially be issued as one or more Certificates registered in the
name of the Depository or its nominee and, except as provided below, registration of such Certificates may not be transferred by the Trustee except to another Depository that agrees to hold such Certificates for the 
  

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 respective Certificate Owners with Ownership Interests therein. The Certificate Owners shall hold their respective
Ownership Interests in and to each Class A Certificate, Class B Certificate and Class M Certificate through the book-entry facilities of the Depository and, except as provided below, shall not be entitled to Definitive Certificates in respect
of such Ownership Interests. All transfers by Certificate Owners of their respective Ownership Interests in the Book-Entry Certificates shall be made in accordance with the procedures established by the Depository Participant or brokerage firm
representing such Certificate Owner. Each Depository Participant shall transfer the Ownership Interests only in the Book-Entry Certificates of Certificate Owners it represents or of brokerage firms for which it acts as agent in accordance with the
Depository’s normal procedures. 
  
 The Trustee, the Master
Servicer and the Depositor may for all purposes (including the making of payments due on the respective Classes of Book-Entry Certificates) deal with the Depository as the authorized representative of the Certificate Owners with respect to the
respective Classes of Book-Entry Certificates for purposes of exercising the rights of Certificateholders hereunder. The rights of Certificate Owners with respect to the respective Classes of Book-Entry Certificates shall be limited to those
established by law and agreements between such Certificate Owners and the Depository Participants and brokerage firms representing such Certificate Owners. Multiple requests and directions from, and votes of, the Depository as Holder of any Class of
Book-Entry Certificates with respect to any particular matter shall not be deemed inconsistent if they are made with respect to different Certificate Owners. The Trustee may establish a reasonable record date in connection with solicitations of
consents from or voting by Certificateholders and shall give notice to the Depository of such record date. If (i)(A) the Depositor advises the Trustee in writing that the Depository is no longer willing or able to properly discharge its
responsibilities as Depository and (B) the Depositor is unable to locate a qualified successor or (ii) the Depositor at its option advises the Trustee in writing that it elects to terminate the book-entry system through the Depository, the
Trustee shall notify all Certificate Owners, through the Depository, of the occurrence of any such event and of the availability of Definitive Certificates to Certificate Owners requesting the same. Upon surrender to the Trustee of the Book-Entry
Certificates by the Depository, accompanied by registration instructions from the Depository for registration of transfer, the Trustee shall issue the Definitive Certificates. 
  
 In addition, if an Event of Default has occurred and is continuing, each Certificate Owner materially adversely affected
thereby may at its option request a Definitive Certificate evidencing such Certificate Owner’s Percentage Interest in the related Class of Certificates. In order to make such request, such Certificate Owner shall, subject to the rules and
procedures of the Depository, provide the Depository or the related Depository Participant with directions for the Certificate Registrar to exchange or cause the exchange of the Certificate Owner’s interest in such Class of Certificates for an
equivalent Percentage Interest in fully registered definitive form. Upon receipt by the Certificate Registrar of instructions from the Depository directing the Certificate Registrar to effect such exchange (such instructions to contain information
regarding the Class of Certificates and the Certificate Principal Balance being exchanged, the Depository Participant account to be debited with the decrease, the registered holder of and delivery instructions for the Definitive Certificate, and any
other information reasonably required by the Certificate Registrar), (i) the Certificate Registrar shall instruct the Depository to reduce the related Depository Participant’s account by the aggregate Certificate Principal Balance of the

  

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 Definitive Certificate, (ii) the Trustee shall execute and the Certificate Registrar shall authenticate and deliver,
in accordance with the registration and delivery instructions provided by the Depository, a Definitive Certificate evidencing such Certificate Owner’s Percentage Interest in such Class of Certificates and (iii) the Trustee shall execute
and the Certificate Registrar shall authenticate a new Book-Entry Certificate reflecting the reduction in the aggregate Certificate Principal Balance of such Class of Certificates by the amount of the Definitive Certificates. 
  
 Neither the Depositor, the Master Servicer nor the Trustee shall be liable
for any actions taken by the Depository or its nominee, including, without limitation, any delay in delivery of any instructions required under this section and may conclusively rely on, and shall be protected in relying on, such instructions.
Upon the issuance of Definitive Certificates, the Trustee and the Master Servicer shall recognize the Holders of the Definitive Certificates as Certificateholders hereunder. 
  
 (c) Each of the Certificates is intended to be a “security” governed by Article 8 of the Uniform Commercial
Code as in effect in the State of New York and any other applicable jurisdiction, to the extent that any of such laws may be applicable. 
  
 Section 5.02 Registration of Transfer and Exchange of Certificates. 
  
 (a) The Trustee shall cause to be kept at one of the offices or agencies to be appointed by the Trustee in accordance with
the provisions of Section 8.12 a Certificate Register in which, subject to such reasonable regulations as it may prescribe, the Trustee shall provide for the registration of Certificates and of transfers and exchanges of Certificates as herein
provided. The Trustee is initially appointed Certificate Registrar for the purpose of registering Certificates and transfers and exchanges of Certificates as herein provided. The Certificate Registrar, or the Trustee, shall provide the
Master Servicer with a certified list of Certificateholders as of each Record Date prior to the related Determination Date. 
  
 (b) Upon surrender for registration of transfer of any Certificate at any office or agency of the Trustee maintained for such purpose pursuant to
Section 8.12 and, in the case of any Class SB Certificate or Class R Certificate, upon satisfaction of the conditions set forth below, the Trustee shall execute and the Certificate Registrar shall authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Certificates of a like Class and aggregate Percentage Interest. 
  
 (c) At the option of the Certificateholders, Certificates may be exchanged for other Certificates of authorized denominations of a like Class and
aggregate Percentage Interest, upon surrender of the Certificates to be exchanged at any such office or agency. Whenever any Certificates are so surrendered for exchange the Trustee shall execute and the Certificate Registrar shall
authenticate and deliver the Certificates of such Class which the Certificateholder making the exchange is entitled to receive. Every Certificate presented or surrendered for transfer or exchange shall (if so required by the Trustee or the
Certificate Registrar) be duly endorsed by, or be accompanied by a written instrument of transfer in form satisfactory to the Trustee and the Certificate Registrar duly executed by, the Holder thereof or his attorney duly authorized in writing.

  

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 (d) No transfer, sale, pledge or other disposition of a Class B Certificate, Class SB Certificate or
Class R Certificate shall be made unless such transfer, sale, pledge or other disposition is exempt from the registration requirements of the Securities Act of 1933, as amended (the “1933 Act”), and any applicable state securities laws or
is made in accordance with said Act and laws. Except as otherwise provided in this Section 5.02(d), in the event that a transfer of a Class B Certificate, Class SB Certificate or Class R Certificate is to be made, (i) unless the
Depositor directs the Trustee otherwise, the Trustee shall require a written Opinion of Counsel acceptable to and in form and substance satisfactory to the Trustee and the Depositor that such transfer may be made pursuant to an exemption, describing
the applicable exemption and the basis therefor, from said Act and laws or is being made pursuant to said Act and laws, which Opinion of Counsel shall not be an expense of the Trustee, the Trust Fund, the Depositor or the Master Servicer, and
(ii) the Trustee shall require the transferee to execute a representation letter, substantially in the form of Exhibit I hereto, and the Trustee shall require the transferor to execute a representation letter, substantially in the form of
Exhibit J hereto, each acceptable to and in form and substance satisfactory to the Depositor and the Trustee certifying to the Depositor and the Trustee the facts surrounding such transfer, which representation letters shall not be an expense
of the Trustee, the Trust Fund, the Depositor or the Master Servicer. In lieu of the requirements set forth in the preceding sentence, transfers of Class B Certificates, Class SB Certificates or Class R Certificates may be made in accordance
with this Section 5.02(d) if the prospective transferee of such a Certificate provides the Trustee and the Master Servicer with an investment letter substantially in the form of Exhibit N attached hereto, which investment letter shall not
be an expense of the Trustee, the Depositor, or the Master Servicer, and which investment letter states that, among other things, such transferee (i) is a “qualified institutional buyer” as defined under Rule 144A, acting for its
own account or the accounts of other “qualified institutional buyers” as defined under Rule 144A, and (ii) is aware that the proposed transferor intends to rely on the exemption from registration requirements under the 1933 Act
provided by Rule 144A. The Holder of a Class B Certificate, Class SB Certificate or Class R Certificate desiring to effect any transfer, sale, pledge or other disposition shall, and does hereby agree to, indemnify the Trustee, the Depositor,
the Master Servicer and the Certificate Registrar against any liability that may result if the transfer, sale, pledge or other disposition is not so exempt or is not made in accordance with such federal and state laws and this Agreement. If any
transfer of a Class B Certificate held by a transferor and to be held by a transferee in book-entry form is to made without registration under the 1933 Act, the transferor shall be deemed to have made each of the certifications set forth in Exhibit
J hereto as of the transfer date and the transferee shall be deemed to have made each of the certifications set forth in Exhibit N hereto as of the transfer date, in each case as if such Class B Certificate were in physical form. 
  
 (e) (i) In the case of any Class B Certificate or Class SB Certificate
presented for registration in the name of any Person, either (i) the Trustee shall require an Opinion of Counsel acceptable to and in form and substance satisfactory to the Trustee, the Depositor and the Master Servicer to the effect that the
purchase or holding of such Class SB Certificate or Class R Certificate is permissible under applicable law, will not constitute or result in any non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code (or
comparable provisions of any subsequent enactments), and will not subject the Trustee, the Depositor or the Master Servicer to any obligation or liability (including obligations or liabilities under ERISA or Section 4975 of the Code) in
addition to those undertaken in this Agreement, which Opinion of Counsel shall not be an expense of the Trustee, the Depositor or the Master Servicer, or (ii) the 
  

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 prospective transferee shall be required to provide the Trustee, the Depositor and the Master Servicer with a
certification to the effect set forth in Exhibit P (with respect to a Class SB Certificate) or in paragraph fifteen of Exhibit H-1 (with respect to a Class R Certificate), which the Trustee may rely upon without further inquiry or
investigation, or such other certifications as the Trustee may deem desirable or necessary in order to establish that such transferee or the Person in whose name such registration is requested is not an employee benefit plan or other plan or
arrangement subject to the prohibited transaction provisions of ERISA or Section 4975 of the Code, or any Person (including an insurance company investing its general accounts, an investment manager, a named fiduciary or a trustee of any such
plan) who is using “plan assets” of any such plan to effect such acquisition (each of the foregoing, a “Plan Investor”). 
  
 (ii) [Any Transferee of a Class B Certificate or Class M Certificate will be deemed to have represented by virtue of its purchase or
holding of such Certificate (or interest therein) that either (a) such Transferee is not a Plan Investor, (b) it has acquired and is holding such Certificate in reliance on U.S. Department of Labor Prohibited Transaction Exemption
(“PTE”) [            ], as most recently amended, [    ] Fed. Reg.
[            ] ([DATE]) (the “SG Exemption”), and that it understands that there are certain conditions to the availability of the SG Exemption including that such
Certificate must be rated, at the time of purchase, not lower than “BBB-” (or its equivalent) by Fitch, Standard & Poor’s or Moody’s or (c) (x) such Transferee is an insurance company, (y) the source of
funds used to purchase or hold such Certificate (or interest therein) is an “insurance company general account” (as defined in Prohibited Transaction Class Exemption (“PTCE”) 95-60), and (z) the conditions set forth in
Sections I and III of PTCE 95-60 have been satisfied (each entity that satisfies this clause (c), a “Complying Insurance Company”).] 
  
 (iii) If any Class B Certificate or Class M Certificate (or any interest therein) is acquired or held by any Person that does not satisfy
the conditions described in paragraph (ii) above, then the last preceding Transferee that either (x) is not a Plan Investor, [(y) acquired such Certificate in compliance with the SG Exemption] or (z) is a Complying Insurance
Company shall be restored, to the extent permitted by law, to all rights and obligations as Certificate Owner thereof retroactive to the date of such Transfer of such Class B Certificate or Class M Certificate. The Trustee shall be under no
liability to any Person for making any payments due on such Certificate to such preceding Transferee. 
  
 (iv) Any purported Certificate Owner whose acquisition or holding of any Class B Certificate or Class M Certificate (or interest therein)
was effected in violation of the restrictions in this Section 5.02(e) shall indemnify and hold harmless the Depositor, the Trustee, the Master Service, any Subservicer, any underwriter and the Trust Fund from and against any and all
liabilities, claims, costs or expenses incurred by such parties as a result of such acquisition or holding. 
  
 (f) (i) Each Person who has or who acquires any Ownership Interest in a Class R Certificate shall be deemed by the acceptance or acquisition of such
Ownership Interest to have agreed to be bound by the following provisions and to have irrevocably authorized the Trustee or its designee under clause (iii)(A) below to deliver payments to a Person other than such Person 
  

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 and to negotiate the terms of any mandatory sale under clause (iii)(B) below and to execute all instruments of transfer
and to do all other things necessary in connection with any such sale. The rights of each Person acquiring any Ownership Interest in a Class R Certificate are expressly subject to the following provisions: 
  
 (A) Each Person holding or acquiring any Ownership Interest
in a Class R Certificate shall be a Permitted Transferee and shall promptly notify the Trustee of any change or impending change in its status as a Permitted Transferee. 
  
 (B) In connection with any proposed Transfer of any Ownership Interest in a Class R Certificate, the Trustee
shall require delivery to it, and shall not register the Transfer of any Class R Certificate until its receipt of: 
  
 (I) an affidavit and agreement (a “Transfer Affidavit and Agreement,” in the form attached hereto as Exhibit H-1) from the
proposed Transferee, in form and substance satisfactory to the Master Servicer, representing and warranting, among other things, that it is a Permitted Transferee, that it is not acquiring its Ownership Interest in the Class R Certificate that is
the subject of the proposed Transfer as a nominee, trustee or agent for any Person who is not a Permitted Transferee, that for so long as it retains its Ownership Interest in a Class R Certificate, it will endeavor to remain a Permitted Transferee,
and that it has reviewed the provisions of this Section 5.02(f) and agrees to be bound by them, and 
  
 (II) a certificate, in the form attached hereto as Exhibit H-2, from the Holder wishing to transfer the Class R Certificate, in form
and substance satisfactory to the Master Servicer, representing and warranting, among other things, that no purpose of the proposed Transfer is to impede the assessment or collection of tax. 
  
 (C) Notwithstanding the delivery of a Transfer Affidavit and
Agreement by a proposed Transferee under clause (B) above, if a Responsible Officer of the Trustee who is assigned to this Agreement has actual knowledge that the proposed Transferee is not a Permitted Transferee, no Transfer of an Ownership
Interest in a Class R Certificate to such proposed Transferee shall be effected. 
  
 (D) Each Person holding or acquiring any Ownership Interest in a Class R Certificate shall agree (x) to require a Transfer Affidavit
and Agreement from any other Person to whom such Person attempts to transfer its Ownership Interest in a Class R Certificate and (y) not to transfer its Ownership Interest unless it provides a certificate to the Trustee in the form attached
hereto as Exhibit H-2. 
  
 (E) Each Person
holding or acquiring an Ownership Interest in a Class R Certificate, by purchasing an Ownership Interest in such Certificate, agrees to 
  

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 give the Trustee written notice that it is a “pass-through interest holder” within the meaning
of Temporary Treasury Regulations Section 1.67-3T(a)(2)(i)(A) immediately upon acquiring an Ownership Interest in a Class R Certificate, if it is, or is holding an Ownership Interest in a Class R Certificate on behalf of, a “pass-through
interest holder.” 
  
 (ii) The Trustee shall
register the Transfer of any Class R Certificate only if it shall have received the Transfer Affidavit and Agreement, a certificate of the Holder requesting such transfer in the form attached hereto as Exhibit H-2 and all of such other
documents as shall have been reasonably required by the Trustee as a condition to such registration. Transfers of the Class R Certificates to Non-United States Persons and Disqualified Organizations (as defined in Section 860E(e)(5) of
the Code) are prohibited. 
  
 (A) If any
Disqualified Organization shall become a holder of a Class R Certificate, then the last preceding Permitted Transferee shall be restored, to the extent permitted by law, to all rights and obligations as Holder thereof retroactive to the date of
registration of such Transfer of such Class R Certificate. If a Non-United States Person shall become a holder of a Class R Certificate, then the last preceding United States Person shall be restored, to the extent permitted by law, to all
rights and obligations as Holder thereof retroactive to the date of registration of such Transfer of such Class R Certificate. If a transfer of a Class R Certificate is disregarded pursuant to the provisions of Treasury Regulations
Section 1.860E-1 or Section 1.860G-3, then the last preceding Permitted Transferee shall be restored, to the extent permitted by law, to all rights and obligations as Holder thereof retroactive to the date of registration of such Transfer
of such Class R Certificate. The Trustee shall be under no liability to any Person for any registration of Transfer of a Class R Certificate that is in fact not permitted by this Section 5.02(f) or for making any payments due on such
Certificate to the holder thereof or for taking any other action with respect to such holder under the provisions of this Agreement. 
  
 (B) If any purported Transferee shall become a Holder of a Class R Certificate in violation of the restrictions in this
Section 5.02(f) and to the extent that the retroactive restoration of the rights of the Holder of such Class R Certificate as described in clause (iii)(A) above shall be invalid, illegal or unenforceable, then the Master Servicer shall have the
right, without notice to the holder or any prior holder of such Class R Certificate to sell such Class R Certificate to a purchaser selected by the Master Servicer on such terms as the Master Servicer may choose. Such purported Transferee
shall promptly endorse and deliver each Class R Certificate in accordance with the instructions of the Master Servicer. Such purchaser may be the Master Servicer itself or any Affiliate of the Master Servicer. The proceeds of such
sale, net of the commissions (which may include commissions payable to the Master Servicer or its Affiliates), expenses and taxes due, if any, will be remitted by the Master Servicer to such purported Transferee. The terms and conditions of
any sale under this clause (iii)(B) shall be determined in the sole discretion of the Master Servicer, and the Master Servicer shall not be liable to any Person having an Ownership Interest in a Class R Certificate as a result of its exercise of
such discretion. 
  

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 (iii) The Master Servicer, on behalf of the Trustee, shall make available, upon written
request from the Trustee, all information necessary to compute any tax imposed 
  
 (A) as a result of the Transfer of an Ownership Interest in a Class R Certificate to any Person who is a Disqualified Organization,
including the information regarding “excess inclusions” of such Class R Certificates required to be provided to the Internal Revenue Service and certain Persons as described in Treasury Regulations Sections 1.860D-1(b)(5) and
1.860E-2(a)(5), and 
  
 (B) as a result of any
regulated investment company, real estate investment trust, common trust fund, partnership, trust, estate or organization described in Section 1381 of the Code that holds an Ownership Interest in a Class R Certificate having as among its record
holders at any time any Person who is a Disqualified Organization. Reasonable compensation for providing such information may be required by the Master Servicer from such Person. 
  
 (iv) The provisions of this Section 5.02(f) set forth prior to this clause (v) may be modified,
added to or eliminated, provided that there shall have been delivered to the Trustee the following: 
  
 (A) Written notification from each Rating Agency to the effect that the modification, addition to or elimination of such provisions will
not cause such Rating Agency to downgrade its then-current ratings, if any, of Class A Certificates or Class M Certificates below the lower of the then-current rating or the rating assigned to such Certificates as of the Closing Date by such
Rating Agency; and 
  
 (B) a certificate of the
Master Servicer stating that the Master Servicer has received an Opinion of Counsel, in form and substance satisfactory to the Master Servicer, to the effect that such modification, addition to or absence of such provisions will not cause any REMIC
created hereunder to cease to qualify as a REMIC and will not cause (x) any REMIC created hereunder to be subject to an entity-level tax caused by the Transfer of any Class R Certificate to a Person that is a Disqualified Organization or
(y) a Certificateholder or another Person to be subject to a REMIC-related tax caused by the Transfer of a Class R Certificate to a Person that is not a Permitted Transferee. 
  
 (g) No service charge shall be made for any transfer or exchange of Certificates of any Class, but the Trustee may require
payment of a sum sufficient to cover any tax or governmental charge that may be imposed in connection with any transfer or exchange of Certificates. 
  
 (h) All Certificates surrendered for transfer and exchange shall be destroyed by the Certificate Registrar. 
  

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 Section 5.03 Mutilated, Destroyed, Lost or Stolen Certificates. 
  
 If (i) any mutilated Certificate is surrendered to the Certificate
Registrar, or the Trustee and the Certificate Registrar receive evidence to their satisfaction of the destruction, loss or theft of any Certificate, and (ii) there is delivered to the Trustee and the Certificate Registrar such security or
indemnity as may be required by them to save each of them harmless, then, in the absence of notice to the Trustee or the Certificate Registrar that such Certificate has been acquired by a bona fide purchaser, the Trustee shall execute and the
Certificate Registrar shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Certificate, a new Certificate of like tenor, Class and Percentage Interest but bearing a number not contemporaneously
outstanding. Upon the issuance of any new Certificate under this Section, the Trustee may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses
(including the fees and expenses of the Trustee and the Certificate Registrar) connected therewith. Any duplicate Certificate issued pursuant to this Section shall constitute complete and indefeasible evidence of ownership in the Trust
Fund, as if originally issued, whether or not the lost, stolen or destroyed Certificate shall be found at any time. 
  
 Section 5.04 Persons Deemed Owners. 
  
 Prior to due presentation of a Certificate for registration of transfer, the Depositor, the Master Servicer, the Trustee, the Certificate Registrar and
any agent of the Depositor, the Master Servicer, the Trustee or the Certificate Registrar may treat the Person in whose name any Certificate is registered as the owner of such Certificate for the purpose of receiving distributions pursuant to
Section 4.02 and for all other purposes whatsoever, except as and to the extent provided in the definition of “Certificateholder,” and neither the Depositor, the Master Servicer, the Trustee, the Certificate Registrar nor any agent of
the Depositor, the Master Servicer, the Trustee or the Certificate Registrar shall be affected by notice to the contrary except as provided in Section 5.02(f). 
  
 Section 5.05 Appointment of Paying Agent. 
  
 The Trustee may appoint a Paying Agent for the purpose of making distributions to Certificateholders pursuant to
Section 4.02. In the event of any such appointment, on or prior to each Distribution Date the Master Servicer on behalf of the Trustee shall deposit or cause to be deposited with the Paying Agent a sum sufficient to make the payments to
Certificateholders in the amounts and in the manner provided for in Section 4.02, such sum to be held in trust for the benefit of Certificateholders. The Trustee shall cause each Paying Agent to execute and deliver to the Trustee an
instrument in which such Paying Agent shall agree with the Trustee that such Paying Agent will hold all sums held by it for the payment to Certificateholders in trust for the benefit of the Certificateholders entitled thereto until such sums shall
be paid to such Certificateholders. Any sums so held by such Paying Agent shall be held only in Eligible Accounts to the extent such sums are not distributed to the Certificateholders on the date of receipt by such Paying Agent. 

 

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 ARTICLE VI 
 THE DEPOSITOR AND THE MASTER SERVICER 
  
 Section 6.01 Respective Liabilities of the Depositor and the Master Servicer. 
  
 The Depositor and the Master Servicer shall each be liable in accordance herewith only to the extent of the obligations specifically and respectively
imposed upon and undertaken by the Depositor and the Master Servicer herein. By way of illustration and not limitation, the Depositor is not liable for the servicing and administration of the Mortgage Loans, nor is it obligated by
Section 7.01 or Section 10.01 to assume any obligations of the Master Servicer or to appoint a designee to assume such obligations, nor is it liable for any other obligation hereunder that it may, but is not obligated to, assume unless it
elects to assume such obligation in accordance herewith. 
  
 Section 6.02 Merger or Consolidation of the Depositor or the Master Servicer; Assignment of Rights and Delegation of Duties by Master Servicer. 
  
 (a) The Depositor and the Master Servicer shall each keep in full effect its existence, rights and franchises as a
corporation under the laws of the state of its incorporation, and will each obtain and preserve its qualification to do business as a foreign corporation in each jurisdiction in which such qualification is or shall be necessary to protect the
validity and enforceability of this Agreement, the Certificates or any of the Mortgage Loans and to perform its respective duties under this Agreement. 
  
 (b) Any Person into which the Depositor or the Master Servicer may be merged or consolidated, or any corporation resulting from any merger or
consolidation to which the Depositor or the Master Servicer shall be a party, or any Person succeeding to the business of the Depositor or the Master Servicer, shall be the successor of the Depositor or the Master Servicer, as the case may be,
hereunder, without the execution or filing of any paper or any further act on the part of any of the parties hereto, anything herein to the contrary notwithstanding; provided, however, that the successor or surviving Person to the Master
Servicer shall be qualified to service mortgage loans on behalf of Fannie Mae or Freddie Mac; and provided further that each Rating Agency’s ratings, if any, of any Class A Certificates, Class M Certificates or Class B Certificates
in effect immediately prior to such merger or consolidation will not be qualified, reduced or withdrawn as a result thereof (as evidenced by a letter to such effect from each Rating Agency). 
  
 (c) Notwithstanding anything else in this Section 6.02 and
Section 6.04 to the contrary, the Master Servicer may assign its rights and delegate its duties and obligations under this Agreement; provided that the Person accepting such assignment or delegation shall be a Person which is qualified
to service mortgage loans on behalf of Fannie Mae or Freddie Mac, is reasonably satisfactory to the Trustee and the Depositor, is willing to service the Mortgage Loans and executes and delivers to the Depositor and the Trustee an agreement, in form
and substance reasonably satisfactory to the Depositor and the Trustee, which contains an assumption by such Person of the due and punctual performance and observance of each covenant and condition to be performed or observed by the Master Servicer
under this Agreement; provided further that each Rating Agency’s rating of the Classes of Certificates that have been rated in effect 
  

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 immediately prior to such assignment and delegation will not be qualified, reduced or withdrawn as a result of such
assignment and delegation (as evidenced by a letter to such effect from each Rating Agency). In the case of any such assignment and delegation, the Master Servicer shall be released from its obligations under this Agreement, except that the
Master Servicer shall remain liable for all liabilities and obligations incurred by it as Master Servicer hereunder prior to the satisfaction of the conditions to such assignment and delegation set forth in the next preceding sentence. 

 
 Section 6.03 Limitation on Liability of the Depositor, the Master
Servicer and Others. 
  
 None of the Depositor, the Master
Servicer or any of the directors, officers, employees or agents of the Depositor or the Master Servicer shall be under any liability to the Trust Fund or the Certificateholders for any action taken or for refraining from the taking of any action in
good faith pursuant to this Agreement, or for errors in judgment; provided, however, that this provision shall not protect the Depositor, the Master Servicer or any such Person against any breach of warranties, representations or covenants
made herein or any liability which would otherwise be imposed by reason of willful misfeasance, bad faith or gross negligence in the performance of duties or by reason of reckless disregard of obligations and duties hereunder. The Depositor,
the Master Servicer and any director, officer, employee or agent of the Depositor or the Master Servicer may rely in good faith on any document of any kind prima facie properly executed and submitted by any Person respecting any matters arising
hereunder. The Depositor, the Master Servicer and any director, officer, employee or agent of the Depositor or the Master Servicer shall be indemnified by the Trust Fund and held harmless against any loss, liability or expense incurred in
connection with any legal action relating to this Agreement or the Certificates, other than any loss, liability or expense related to any specific Mortgage Loan or Mortgage Loans (except as any such loss, liability or expense shall be otherwise
reimbursable pursuant to this Agreement) and any loss, liability or expense incurred by reason of willful misfeasance, bad faith or gross negligence in the performance of duties hereunder or by reason of reckless disregard of obligations and duties
hereunder. Neither the Depositor nor the Master Servicer shall be under any obligation to appear in, prosecute or defend any legal or administrative action, proceeding, hearing or examination that is not incidental to its respective duties
under this Agreement and which in its opinion may involve it in any expense or liability; provided, however, that the Depositor or the Master Servicer may in its discretion undertake any such action, proceeding, hearing or examination that it
may deem necessary or desirable in respect to this Agreement and the rights and duties of the parties hereto and the interests of the Certificateholders hereunder. In such event, the legal expenses and costs of such action, proceeding,
hearing or examination and any liability resulting therefrom shall be expenses, costs and liabilities of the Trust Fund, and the Depositor and the Master Servicer shall be entitled to be reimbursed therefor out of amounts attributable to the
Mortgage Loans on deposit in the Custodial Account as provided by Section 3.10 and, on the Distribution Date(s) following such reimbursement, the aggregate of such expenses and costs shall be allocated in reduction of the Accrued Certificate
Interest on each Class entitled thereto in the same manner as if such expenses and costs constituted a Prepayment Interest Shortfall. 
  

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 Section 6.04 Depositor and Master Servicer Not to Resign. 
  
 Subject to the provisions of Section 6.02, neither the Depositor nor
the Master Servicer shall resign from its respective obligations and duties hereby imposed on it except upon determination that its duties hereunder are no longer permissible under applicable law. Any such determination permitting the
resignation of the Depositor or the Master Servicer shall be evidenced by an Opinion of Counsel (at the expense of the resigning party) to such effect delivered to the Trustee. No such resignation by the Master Servicer shall become effective
until the Trustee or a successor servicer shall have assumed the Master Servicer’s responsibilities and obligations in accordance with Section 7.02. 
  

ARTICLE VII 
 DEFAULT

  
 Section 7.01 Events of Default. 
  
 Event of Default, wherever used herein, means any one of the following
events (whatever reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or
governmental body): 
  
 (i) the Master Servicer
shall fail to distribute or cause to be distributed to Holders of Certificates of any Class any distribution required to be made under the terms of the Certificates of such Class and this Agreement and, in either case, such failure shall continue
unremedied for a period of 5 days after the date upon which written notice of such failure, requiring such failure to be remedied, shall have been given to the Master Servicer by the Trustee or the Depositor or to the Master Servicer, the Depositor
and the Trustee by the Holders of Certificates of such Class evidencing Percentage Interests aggregating not less than 25%; or 
  
 (ii) the Master Servicer shall fail to observe or perform in any material respect any other of the covenants or agreements on the part of
the Master Servicer contained in the Certificates of any Class or in this Agreement and such failure shall continue unremedied for a period of 30 days (except that such number of days shall be 15 in the case of a failure to pay the premium for any
Required Insurance Policy) after the date on which written notice of such failure, requiring the same to be remedied, shall have been given to the Master Servicer by the Trustee or the Depositor, or to the Master Servicer, the Depositor and the
Trustee by the Holders of Certificates of any Class evidencing, as to such Class, Percentage Interests aggregating not less than 25%, or 
  
 (iii) a decree or order of a court or agency or supervisory authority having jurisdiction in the premises in an involuntary case under any
present or future federal or state bankruptcy, insolvency or similar law or appointing a conservator or receiver or liquidator in any insolvency, readjustment of debt, marshalling of assets and liabilities or similar proceedings, or for the
winding-up or liquidation of its affairs, shall have been entered against the Master Servicer and such decree or order shall have remained in force undischarged or unstayed for a period of 60 days; or 
  

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

  
 (v) the Master Servicer shall admit in
writing its inability to pay its debts generally as they become due, file a petition to take advantage of, or commence a voluntary case under, any applicable insolvency or reorganization statute, make an assignment for the benefit of its creditors,
or voluntarily suspend payment of its obligations; or 
  
 (vi) the Master Servicer shall notify the Trustee pursuant to Section 4.04(b) that it is unable to deposit in the Certificate Account an amount equal to the Advance. 
  
 If an Event of Default described in clauses (i)-(v) of this Section shall occur, then, and in each and every such
case, so long as such Event of Default shall not have been remedied, either the Depositor or the Trustee shall at the direction of Holders of Certificates entitled to at least xx% of the Voting Rights by notice in writing to the Master Servicer (and
to the Depositor), terminate all of the rights and obligations of the Master Servicer under this Agreement and in and to the Mortgage Loans and the proceeds thereof, other than its rights as a Certificateholder hereunder; provided, however,
that a successor to the Master Servicer is appointed pursuant to Section 7.02 and such successor Master Servicer shall have accepted the duties of Master Servicer effective upon the resignation of the Master Servicer. If an Event of
Default described in clause (vi) shall occur, the Trustee shall, by notice to the Master Servicer and the Depositor, immediately terminate all of the rights and obligations of the Master Servicer under this Agreement and in and to the Mortgage
Loans and the proceeds thereof, other than its rights as a Certificateholder hereunder as provided in Section 4.04(b). On or after the receipt by the Master Servicer of such written notice, all authority and power of the Master Servicer
under this Agreement, whether with respect to the Certificates (other than as a Holder thereof) or the Mortgage Loans or otherwise, shall subject to Section 7.02 pass to and be vested in the Trustee or the Trustee’s designee appointed
pursuant to Section 7.02; and, without limitation, the Trustee is hereby authorized and empowered to execute and deliver, on behalf of the Master Servicer, as attorney-in-fact or otherwise, any and all documents and other instruments, and to do
or accomplish all other acts or things necessary or appropriate to effect the purposes of such notice of termination, whether to complete the transfer and endorsement or assignment of the Mortgage Loans and related documents, or otherwise.
The Master Servicer agrees to cooperate with the Trustee in effecting the termination of the Master Servicer’s responsibilities and rights hereunder, including, without limitation, the transfer to the Trustee or its designee for
administration by it of all cash amounts which shall at the time be credited to the Custodial Account or the Certificate Account or thereafter be received with respect to the Mortgage Loans. No such termination shall release the Master
Servicer for any liability that it would otherwise have hereunder for any act or omission prior to the effective time of such termination. Notwithstanding any termination of the activities of [Wells Fargo] in its capacity as Master Servicer
hereunder, [Wells Fargo] shall be entitled to receive, out of any late collection of a Monthly Payment on a Mortgage Loan which was due prior to the notice terminating [Wells Fargo]’s rights and obligations as Master Servicer hereunder and
received after such notice, that portion to which [Wells Fargo] would have been entitled pursuant to Sections 3.10(a)(ii), (vi)
  

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 and (vii) as well as its Servicing Fee in respect thereof, and any other amounts payable to [Wells Fargo] hereunder
the entitlement to which arose prior to the termination of its activities hereunder. Upon the termination of [Wells Fargo] as Master Servicer hereunder the Depositor shall deliver to the Trustee, as successor Master Servicer, a copy of the
Program Guide. 
  
 Section 7.02 Trustee or Depositor to
Act; Appointment of Successor. 
  
 (a) On and after the time
the Master Servicer receives a notice of termination pursuant to Section 7.01 or resigns in accordance with Section 6.04, the Trustee or, upon notice to the Depositor and with the Depositor’s consent (which shall not be unreasonably
withheld) a designee (which meets the standards set forth below) of the Trustee, shall be the successor in all respects to the Master Servicer in its capacity as servicer under this Agreement and the transactions set forth or provided for herein and
shall be subject to all the responsibilities, duties and liabilities relating thereto placed on the Master Servicer (except for the responsibilities, duties and liabilities contained in Sections 2.02 and 2.03(a), excluding the duty to notify related
Subservicers as set forth in such Sections, and its obligations to deposit amounts in respect of losses incurred prior to such notice or termination on the investment of funds in the Custodial Account or the Certificate Account pursuant to Sections
3.07(c) and 4.01(b) by the terms and provisions hereof); provided, however, that any failure to perform such duties or responsibilities caused by the preceding Master Servicer’s failure to provide information required by
Section 4.04 shall not be considered a default by the Trustee hereunder as successor Master Servicer. As compensation therefor, the Trustee as successor Master Servicer shall be entitled to all funds relating to the Mortgage Loans which
the Master Servicer would have been entitled to charge to the Custodial Account or the Certificate Account if the Master Servicer had continued to act hereunder and, in addition, shall be entitled to the income from any Permitted Investments made
with amounts attributable to the Mortgage Loans held in the Custodial Account or the Certificate Account. If the Trustee has become the successor to the Master Servicer in accordance with Section 6.04 or Section 7.01, then
notwithstanding the above, the Trustee may, if it shall be unwilling to so act, or shall, if it is unable to so act, appoint, or petition a court of competent jurisdiction to appoint, any established housing and home finance institution, which is
also a Fannie Mae or Freddie Mac-approved mortgage servicing institution, having a net worth of not less than $xxx,xxx,xxx as the successor to the Master Servicer hereunder in the assumption of all or any part of the responsibilities, duties or
liabilities of the Master Servicer hereunder. Pending appointment of a successor to the Master Servicer hereunder, the Trustee shall become successor to the Master Servicer and shall act in such capacity as hereinabove provided. In
connection with such appointment and assumption, the Trustee may make such arrangements for the compensation of such successor out of payments on Mortgage Loans as it and such successor shall agree; provided, however, that no such
compensation shall be in excess of that permitted the initial Master Servicer hereunder. The Depositor, the Trustee, the Custodian and such successor shall take such action, consistent with this Agreement, as shall be necessary to effectuate
any such succession. The Servicing Fee for any successor Master Servicer appointed pursuant to this Section 7.02 will be lowered with respect to those Mortgage Loans, if any, where the Subservicing Fee accrues at a rate of less than xx%
per annum in the event that the successor Master Servicer is not servicing such Mortgage Loans directly and it is necessary to raise the related Subservicing Fee to a rate of xx% per annum in order to hire a Subservicer with respect to such Mortgage
Loans. The Master Servicer shall pay the reasonable expenses of the Trustee in connection with any servicing transfer hereunder. 
  

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 (b) [In connection with the termination or resignation of the Master Servicer hereunder, either
(i) the successor Master Servicer, including the Trustee if the Trustee is acting as successor Master Servicer, shall represent and warrant that it is a member of MERS in good standing and shall agree to comply in all material respects with the
rules and procedures of MERS in connection with the servicing of the Mortgage Loans that are registered with MERS, in which case the predecessor Master Servicer shall cooperate with the successor Master Servicer in causing MERS to revise its records
to reflect the transfer of servicing to the successor Master Servicer as necessary under MERS’ rules and regulations, or (ii) the predecessor Master Servicer shall cooperate with the successor Master Servicer in causing MERS to execute and
deliver an assignment of Mortgage in recordable form to transfer the Mortgage from MERS to the Trustee and to execute and deliver such other notices, documents and other instruments as may be necessary or desirable to effect a transfer of such
Mortgage Loan or servicing of such Mortgage Loan on the MERS® System to the successor Master Servicer. The predecessor Master Servicer shall file or cause to be filed any such assignment in the appropriate recording office. The predecessor Master Servicer shall bear
any and all fees of MERS, costs of preparing any assignments of Mortgage, and fees and costs of filing any assignments of Mortgage that may be required under this subsection (b). The successor Master Servicer shall cause such assignment to be
delivered to the Trustee or the Custodian promptly upon receipt of the original with evidence of recording thereon or a copy certified by the public recording office in which such assignment was recorded.] 
  
 Section 7.03 Notification to Certificateholders. 
  
 (a) Upon any such termination or appointment of a successor to the Master
Servicer, the Trustee shall give prompt written notice thereof to Certificateholders at their respective addresses appearing in the Certificate Register. 
  
 (b) Within 60 days after the occurrence of any Event of Default, the Trustee shall transmit by mail to all Holders of Certificates notice of each such
Event of Default hereunder known to the Trustee, unless such Event of Default shall have been cured or waived as provided in Section 7.04. 
  
 Section 7.04 Waiver of Events of Default. 
  
 The Holders representing at least 66 2/3% of the Voting Rights of Certificates affected by a default or Event of Default hereunder may waive any default
or Event of Default; provided, however, that (a) a default or Event of Default under clause (i) of Section 7.01 may be waived only by all of the Holders of Certificates affected by such default or Event of Default and
(b) no waiver pursuant to this Section 7.04 shall affect the Holders of Certificates in the manner set forth in Section 11.01(b)(i), (ii) or (iii). Upon any such waiver of a default or Event of Default by the Holders
representing the requisite percentage of Voting Rights of Certificates affected by such default or Event of Default, such default or Event of Default shall cease to exist and shall be deemed to have been remedied for every purpose hereunder.
No such waiver shall extend to any subsequent or other default or Event of Default or impair any right consequent thereon except to the extent expressly so waived. 
  

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 ARTICLE VIII 
 CONCERNING THE TRUSTEE 
  
 Section 8.01 Duties of Trustee. 
  
 (a) The
Trustee, prior to the occurrence of an Event of Default and after the curing of all Events of Default which may have occurred, undertakes to perform such duties and only such duties as are specifically set forth in this Agreement. In case an
Event of Default has occurred (which has not been cured or waived), the Trustee shall exercise such of the rights and powers vested in it by this Agreement, and use the same degree of care and skill in their exercise as a prudent investor would
exercise or use under the circumstances in the conduct of such investor’s own affairs. 
  
 (b) The Trustee, upon receipt of all resolutions, certificates, statements, opinions, reports, documents, orders or other instruments furnished to the Trustee which are specifically required to be furnished pursuant
to any provision of this Agreement, shall examine them to determine whether they conform to the requirements of this Agreement. The Trustee shall notify the Certificateholders of any such documents which do not materially conform to the
requirements of this Agreement in the event that the Trustee, after so requesting, does not receive satisfactorily corrected documents. The Trustee shall forward or cause to be forwarded in a timely fashion the notices, reports and statements
required to be forwarded by the Trustee pursuant to Sections 4.03, 7.03, and 10.01. The Trustee shall furnish in a timely fashion to the Master Servicer such information as the Master Servicer may reasonably request from time to time for the
Master Servicer to fulfill its duties as set forth in this Agreement. The Trustee covenants and agrees that it shall perform its obligations hereunder in a manner so as to maintain the status of each REMIC created hereunder as a REMIC under
the REMIC Provisions and (subject to Section 10.01(f)) to prevent the imposition of any federal, state or local income, prohibited transaction, contribution or other tax on the Trust Fund to the extent that maintaining such status and avoiding
such taxes are reasonably within the control of the Trustee and are reasonably within the scope of its duties under this Agreement. 
  
 (c) No provision of this Agreement shall be construed to relieve the Trustee from liability for its own negligent action, its own negligent failure to act
or its own willful misconduct; provided, however, that: 
  
 (i) Prior to the occurrence of an Event of Default, and after the curing or waiver of all such Events of Default which may have occurred, the duties and obligations of the Trustee shall be determined solely by the
express provisions of this Agreement, the Trustee shall not be liable except for the performance of such duties and obligations as are specifically set forth in this Agreement, no implied covenants or obligations shall be read into this Agreement
against the Trustee and, in the absence of bad faith on the part of the Trustee, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished
to the Trustee by the Depositor or the Master Servicer and which on their face, do not contradict the requirements of this Agreement; 
  

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 (ii) The Trustee shall not be personally liable for an error of judgment made in good
faith by a Responsible Officer or Responsible Officers of the Trustee, unless it shall be proved that the Trustee was negligent in ascertaining the pertinent facts; 
  
 (iii) The Trustee shall not be personally liable with respect to any action taken, suffered or omitted to be
taken by it in good faith in accordance with the direction of the Certificateholders holding Certificates which evidence, Percentage Interests aggregating not less than xx% of the affected Classes as to the time, method and place of conducting any
proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Agreement; 
  
 (iv) The Trustee shall not be charged with knowledge of any default (other than a default in payment to the Trustee) specified in clauses
(i) and (ii) of Section 7.01 or an Event of Default under clauses (iii), (iv) and (v) of Section 7.01 unless a Responsible Officer of the Trustee assigned to and working in the Corporate Trust Office obtains actual
knowledge of such failure or event or the Trustee receives written notice of such failure or event at its Corporate Trust Office from the Master Servicer, the Depositor or any Certificateholder; and 
  
 (v) Except to the extent provided in Section 7.02, no
provision in this Agreement shall require the Trustee to expend or risk its own funds (including, without limitation, the making of any Advance) or otherwise incur any personal financial liability in the performance of any of its duties as Trustee
hereunder, or in the exercise of any of its rights or powers, if the Trustee shall have reasonable grounds for believing that repayment of funds or adequate indemnity against such risk or liability is not reasonably assured to it. 
  
 (d) The Trustee shall timely pay, from its own funds, the amount of any and
all federal, state and local taxes imposed on the Trust Fund or its assets or transactions including, without limitation, (A) ”prohibited transaction” penalty taxes as defined in Section 860F of the Code, if, when and as the same
shall be due and payable, (B) any tax on contributions to a REMIC after the Closing Date imposed by Section 860G(d) of the Code and (C) any tax on “net income from foreclosure property” as defined in Section 860G(c) of
the Code, but only if such taxes arise out of a breach by the Trustee of its obligations hereunder, which breach constitutes negligence or willful misconduct of the Trustee. 
  
 Section 8.02 Certain Matters Affecting the Trustee. 
  
 (a) Except as otherwise provided in Section 8.01: 
  
 (i) The Trustee may rely and shall be protected in acting or
refraining from acting upon any resolution, Officers Certificate, certificate of auditors or any other certificate, statement, instrument, opinion, report, notice, request, consent, order, appraisal, bond or other paper or document believed by it to
be genuine and to have been signed or presented by the proper party or parties; 
  
 (ii) The Trustee may consult with counsel, and any Opinion of Counsel shall be full and complete authorization and protection in respect
of any action taken or suffered or omitted by it hereunder in good faith and in accordance with such Opinion of Counsel; 
  

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 (iii) The Trustee shall be under no obligation to exercise any of the trusts or powers
vested in it by this Agreement or to institute, conduct or defend any litigation hereunder or in relation hereto at the request, order or direction of any of the Certificateholders pursuant to the provisions of this Agreement, unless such
Certificateholders shall have offered to the Trustee reasonable security or indemnity against the costs, expenses and liabilities which may be incurred therein or thereby; nothing contained herein shall, however, relieve the Trustee of the
obligation, upon the occurrence of an Event of Default (which has not been cured), to exercise such of the rights and powers vested in it by this Agreement, and to use the same degree of care and skill in their exercise as a prudent investor would
exercise or use under the circumstances in the conduct of such investor’s own affairs; 
  
 (iv) The Trustee shall not be personally liable for any action taken, suffered or omitted by it in good faith and believed by it to be
authorized or within the discretion or rights or powers conferred upon it by this Agreement; 
  
 (v) Prior to the occurrence of an Event of Default hereunder and after the curing of all Events of Default which may have occurred, the
Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, bond or other paper or document, unless
requested in writing so to do by the Holders of Certificates of any Class evidencing, as to such Class, Percentage Interests, aggregating not less than xx%; provided, however, that if the payment within a reasonable time to the Trustee of the
costs, expenses or liabilities likely to be incurred by it in the making of such investigation is, in the opinion of the Trustee, not reasonably assured to the Trustee by the security afforded to it by the terms of this Agreement, the Trustee may
require reasonable indemnity against such expense or liability as a condition to so proceeding. The reasonable expense of every such examination shall be paid by the Master Servicer, if an Event of Default shall have occurred and is
continuing, and otherwise by the Certificateholder requesting the investigation; 
  
 (vi) The Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents
or attorneys provided that the Trustee shall remain liable for any acts of such agents or attorneys; and 
  
 (vii) To the extent authorized under the Code and the regulations promulgated thereunder, each Holder of a Class R Certificate hereby
irrevocably appoints and authorizes the Trustee to be its attorney-in-fact for purposes of signing any Tax Returns required to be filed on behalf of the Trust Fund. The Trustee shall sign on behalf of the Trust Fund and deliver to the Master
Servicer in a timely manner any Tax Returns prepared by or on behalf of the Master Servicer that the Trustee is required to sign as determined by the Master Servicer pursuant to applicable federal, state or local tax laws, provided that the
Master Servicer shall indemnify the Trustee for signing any such Tax Returns that contain errors or omissions. 
  

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 (b) Following the issuance of the Certificates (and except as provided for in Section 2.04), the
Trustee shall not accept any contribution of assets to the Trust Fund unless (subject to Section 10.01(f)) it shall have obtained or been furnished with an Opinion of Counsel to the effect that such contribution will not (i) cause any
REMIC created hereunder to fail to qualify as a REMIC at any time that any Certificates are outstanding or (ii) cause the Trust Fund to be subject to any federal tax as a result of such contribution (including the imposition of any federal tax
on “prohibited transactions” imposed under Section 860F(a) of the Code). 
  
 Section 8.03 Trustee Not Liable for Certificates or Mortgage Loans. 
  
 The recitals contained herein and in the Certificates (other than the execution of the Certificates and relating to the acceptance and receipt of the
Mortgage Loans) shall be taken as the statements of the Depositor or the Master Servicer as the case may be, and the Trustee assumes no responsibility for their correctness. The Trustee makes no representations as to the validity or
sufficiency of this Agreement or of the Certificates (except that the Certificates shall be duly and validly executed and authenticated by it as Certificate Registrar) or of any Mortgage Loan or related document, or of MERS or the MERS®
System. Except as otherwise provided herein, the Trustee shall not be accountable for the use or application by the Depositor or the Master Servicer of any of the Certificates or of the proceeds of such Certificates, or for the use or
application of any funds paid to the Depositor or the Master Servicer in respect of the Mortgage Loans or deposited in or withdrawn from the Custodial Account or the Certificate Account by the Depositor or the Master Servicer. 
  
 Section 8.04 Trustee May Own Certificates. 
  
 The Trustee in its individual or any other capacity may become the owner or
pledgee of Certificates with the same rights it would have if it were not Trustee. 
  
 Section 8.05 Master Servicer to Pay Trustee’s Fees and Expenses; Indemnification. 
  
 (a) The Master Servicer covenants and agrees to pay to the Trustee and any co-trustee from time to time, and the Trustee and any co-trustee shall be
entitled to, reasonable compensation (which shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust) for all services rendered by each of them in the execution of the trusts hereby created and in
the exercise and performance of any of the powers and duties hereunder of the Trustee and any co-trustee, and the Master Servicer shall pay or reimburse the Trustee and any co-trustee upon request for all reasonable expenses, disbursements and
advances incurred or made by the Trustee or any co-trustee in accordance with any of the provisions of this Agreement (including the reasonable compensation and the expenses and disbursements of its counsel and of all persons not regularly in its
employ, and the expenses incurred by the Trustee or any co-trustee in connection with the appointment of an office or agency pursuant to Section 8.12) except any such expense, disbursement or advance as may arise from its negligence or bad
faith. 
  
 (b) The Master Servicer agrees to indemnify the Trustee
for, and to hold the Trustee harmless against, any loss, liability or expense incurred without negligence or willful misconduct on its part, arising out of, or in connection with, the acceptance and administration of the Trust 
  

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 Fund, including its obligation to execute the DTC Letter in its individual capacity, and including the costs and expenses
(including reasonable legal fees and expenses) of defending itself against any claim in connection with the exercise or performance of any of its powers or duties under this Agreement, and the Master Servicer further agrees to indemnify the Trustee
for, and to hold the Trustee harmless against, any loss, liability or expense arising out of, or in connection with, the provisions set forth in the third paragraph of Section 2.01(b), including without limitation, all costs, liabilities and
expenses (including reasonable legal fees and expenses) of investigating and defending itself against any claim, action or proceeding, pending or threatened, relating to the provisions of such paragraph, provided that: 
  
 (i) with respect to any such claim, the Trustee shall have
given the Master Servicer written notice thereof promptly after the Trustee shall have actual knowledge thereof; 
  
 (ii) while maintaining control over its own defense, the Trustee shall cooperate and consult fully with the Master Servicer in preparing
such defense; and 
  
 (iii) notwithstanding
anything in this Agreement to the contrary, the Master Servicer shall not be liable for settlement of any claim by the Trustee entered into without the prior consent of the Master Servicer which consent shall not be unreasonably withheld. No
termination of this Agreement shall affect the obligations created by this Section 8.05(b) of the Master Servicer to indemnify the Trustee under the conditions and to the extent set forth herein. Notwithstanding the foregoing, the
indemnification provided by the Master Servicer in this Section 8.05(b) shall not pertain to any loss, liability or expense of the Trustee, including the costs and expenses of defending itself against any claim, incurred in connection with any
actions taken by the Trustee at the direction of Certificateholders pursuant to the terms of this Agreement. 
  
 Section 8.06 Eligibility Requirements for Trustee. 
  

The Trustee hereunder shall at all times be a national banking association or a New York banking corporation having its principal office in a state and
city acceptable to the Depositor and organized and doing business under the laws of such state or the United States of America, authorized under such laws to exercise corporate trust powers, having a combined capital and surplus of at least
$xxx,xxx,xxx and subject to supervision or examination by federal or state authority. If such corporation or national banking association publishes reports of condition at least annually, pursuant to law or to the requirements of the
aforesaid supervising or examining authority, then for purposes of this Section the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so
published. In case at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section, the Trustee shall resign immediately in the manner and with the effect specified in Section 8.07 below. 

 
 Section 8.07 Resignation and Removal of the Trustee.

  
 (a) The Trustee may at any time resign and be discharged from
the trusts hereby created by giving written notice thereof to the Depositor and the Master Servicer. Upon 
  

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 receiving such notice of resignation, the Depositor shall promptly appoint a successor trustee by written instrument, in
duplicate, one copy of which instrument shall be delivered to the resigning Trustee and one copy to the successor trustee. If no successor trustee shall have been so appointed and have accepted appointment within 30 days after the giving
of such notice of resignation, then the resigning Trustee may petition any court of competent jurisdiction for the appointment of a successor trustee. 
  
 (b) If at any time the Trustee shall cease to be eligible in accordance with the provisions of Section 8.06 and shall fail to resign after written
request therefor by the Depositor, or if at any time the Trustee shall become incapable of acting, or shall be adjudged bankrupt or insolvent, or a receiver of the Trustee or of its property shall be appointed, or any public officer shall take
charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, then the Depositor may remove the Trustee and appoint a successor trustee by written instrument, in duplicate, one copy of
which instrument shall be delivered to the Trustee so removed and one copy to the successor trustee. In addition, in the event that the Depositor determines that the Trustee has failed (i) to distribute or cause to be distributed to
Certificateholders any amount required to be distributed hereunder, if such amount is held by the Trustee or its Paying Agent (other than the Master Servicer or the Depositor) for distribution or (ii) to otherwise observe or perform in any
material respect any of its covenants, agreements or obligations hereunder, and such failure shall continue unremedied for a period of 5 days (in respect of clause (i) above) or 30 days (in respect of clause (ii) above) after the date on
which written notice of such failure, requiring that the same be remedied, shall have been given to the Trustee by the Depositor, then the Depositor may remove the Trustee and appoint a successor trustee by written instrument delivered as provided
in the preceding sentence. In connection with the appointment of a successor trustee pursuant to the preceding sentence, the Depositor shall, on or before the date on which any such appointment becomes effective, obtain from each Rating
Agency written confirmation that the appointment of any such successor trustee will not result in the reduction of the ratings on any Class of the Certificates below the lesser of the then current or original ratings on such Certificates.

  
 (c) The Holders of Certificates entitled to at least xx% of
the Voting Rights may at any time remove the Trustee and appoint a successor trustee by written instrument or instruments, in triplicate, signed by such Holders or their attorneys-in-fact duly authorized, one complete set of which instruments shall
be delivered to the Depositor, one complete set to the Trustee so removed and one complete set to the successor so appointed. 
  
 (d) Any resignation or removal of the Trustee and appointment of a successor trustee pursuant to any of the provisions of this Section shall become
effective upon acceptance of appointment by the successor trustee as provided in Section 8.08 below. 
  
 Section 8.08 Successor Trustee. 
  
 (a) Any successor trustee appointed as provided in Section 8.07 shall execute, acknowledge and deliver to the Depositor and to its predecessor
trustee an instrument accepting such appointment hereunder, and thereupon the resignation or removal of the predecessor trustee shall become effective and such successor trustee shall become effective and such successor trustee, without any further
act, deed or conveyance, shall become fully vested with all the rights, 
  

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 powers, duties and obligations of its predecessor hereunder, with the like effect as if originally named as trustee
herein. The predecessor trustee shall deliver to the successor trustee all Mortgage Files and related documents and statements held by it hereunder (other than any Mortgage Files at the time held by a Custodian, which shall become the agent
of any successor trustee hereunder), and the Depositor, the Master Servicer and the predecessor trustee shall execute and deliver such instruments and do such other things as may reasonably be required for more fully and certainly vesting and
confirming in the successor trustee all such rights, powers, duties and obligations. 
  
 (b) No successor trustee shall accept appointment as provided in this Section unless at the time of such acceptance such successor trustee shall be eligible under the provisions of Section 8.06. 

 
 (c) Upon acceptance of appointment by a successor trustee as provided in
this Section, the Depositor shall mail notice of the succession of such trustee hereunder to all Holders of Certificates at their addresses as shown in the Certificate Register. If the Depositor fails to mail such notice within 10 days
after acceptance of appointment by the successor trustee, the successor trustee shall cause such notice to be mailed at the expense of the Depositor. 
  
 Section 8.09 Merger or Consolidation of Trustee. 
  
 Any corporation or national banking association into which the Trustee may be merged or converted or with which it may be consolidated or any corporation
or national banking association resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or any corporation or national banking association succeeding to the business of the Trustee, shall be the successor of the
Trustee hereunder, provided such corporation or national banking association shall be eligible under the provisions of Section 8.06, without the execution or filing of any paper or any further act on the part of any of the parties
hereto, anything herein to the contrary notwithstanding. The Trustee shall mail notice of any such merger or consolidation to the Certificateholders at their address as shown in the Certificate Register. 
  
 Section 8.10 Appointment of Co-Trustee or Separate Trustee.

  
 (a) Notwithstanding any other provisions hereof, at any time,
for the purpose of meeting any legal requirements of any jurisdiction in which any part of the Trust Fund or property securing the same may at the time be located, the Master Servicer and the Trustee acting jointly shall have the power and shall
execute and deliver all instruments to appoint one or more Persons approved by the Trustee to act as co-trustee or co-trustees, jointly with the Trustee, or separate trustee or separate trustees, of all or any part of the Trust Fund, and to vest in
such Person or Persons, in such capacity, such title to the Trust Fund, or any part thereof, and, subject to the other provisions of this Section 8.10, such powers, duties, obligations, rights and trusts as the Master Servicer and the Trustee
may consider necessary or desirable. If the Master Servicer shall not have joined in such appointment within 15 days after the receipt by it of a request so to do, or in case an Event of Default shall have occurred and be continuing, the
Trustee alone shall have the power to make such appointment. No co-trustee or separate trustee hereunder shall be required to meet the terms of eligibility as a successor trustee under Section 8.06, and no notice to Holders of
Certificates of the appointment of co-trustee(s) or separate trustee(s) shall be required under Section 8.08. 
  

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 (b) In the case of any appointment of a co-trustee or separate trustee pursuant to this
Section 8.10, all rights, powers, duties and obligations conferred or imposed upon the Trustee shall be conferred or imposed upon and exercised or performed by the Trustee, and such separate trustee or co-trustee jointly, except to the extent
that under any law of any jurisdiction in which any particular act or acts are to be performed (whether as Trustee hereunder or as successor to the Master Servicer hereunder), the Trustee shall be incompetent or unqualified to perform such act or
acts, in which event such rights, powers, duties and obligations (including the holding of title to the Trust Fund or any portion thereof in any such jurisdiction) shall be exercised and performed by such separate trustee or co-trustee at the
direction of the Trustee. 
  
 (c) Any notice, request or other
writing given to the Trustee shall be deemed to have been given to each of the then separate trustees and co-trustees, as effectively as if given to each of them. Every instrument appointing any separate trustee or co-trustee shall refer to
this Agreement and the conditions of this Article VIII. Each separate trustee and co-trustee, upon its acceptance of the trusts conferred, shall be vested with the estates or property specified in its instrument of appointment, either
jointly with the Trustee or separately, as may be provided therein, subject to all the provisions of this Agreement, specifically including every provision of this Agreement relating to the conduct of, affecting the liability of, or affording
protection to, the Trustee. Every such instrument shall be filed with the Trustee. 
  
 (d) Any separate trustee or co-trustee may, at any time, constitute the Trustee, its agent or attorney-in-fact, with full power and authority, to the extent not prohibited by law, to do any lawful act under or in
respect of this Agreement on its behalf and in its name. If any separate trustee or co-trustee shall die, become incapable of acting, resign or be removed, all of its estates, properties, rights, remedies and trusts shall vest in and be
exercised by the Trustee, to the extent permitted by law, without the appointment of a new or successor trustee. 
  
 Section 8.11 Appointment of Custodians. 
  
 The Trustee may, with the consent of the Master Servicer and the Depositor, or shall, at the direction of the Master Servicer and the Depositor, appoint
one or more Custodians who are not Affiliates of the Depositor or the Master Servicer to hold all or a portion of the Mortgage Files as agent for the Trustee, by entering into a Custodial Agreement. The Trustee is hereby directed to enter
into a Custodial Agreement with Wells Fargo Bank, N.A. Subject to Article VIII, the Trustee agrees to comply with the terms of each Custodial Agreement and to enforce the terms and provisions thereof against the Custodian for the benefit of the
Certificateholders. Each Custodian shall be a depository institution subject to supervision by federal or state authority, shall have a combined capital and surplus of at least $xxx,xxx,xxx and shall be qualified to do business in the
jurisdiction in which it holds any Mortgage File. Each Custodial Agreement may be amended only as provided in Section 11.01. The Trustee shall notify the Certificateholders of the appointment of any Custodian (other than the
Custodian appointed as of the Closing Date) pursuant to this Section 8.11. 
  

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 Section 8.12 Appointment of Office or Agency. 
  
 The Trustee shall maintain an office or agency in the City of
[                            ] where Certificates may be surrendered for registration of transfer or
exchange. The Trustee initially designates its offices located at the Corporate Trust Office for the purpose of keeping the Certificate Register. The Trustee shall maintain an office at the address stated in Section 11.05(c) where notices and
demands to or upon the Trustee in respect of this Agreement may be served. 
  
 Section 8.13 DTC Letter of Representations. 
  
 The Trustee is hereby authorized and directed to, and agrees that it shall, enter into the DTC Letter on behalf of the Trust Fund and in its individual capacity as agent thereunder. 
  
 Section 8.14 Hedge Agreement. 
  
 The Trustee is hereby authorized and directed to, and agrees that it shall,
enter into the Hedge Agreement on behalf of the Trust Fund. 
  
 ARTICLE IX 
 TERMINATION 
  
 Section 9.01 Termination Upon Purchase or Liquidation of All Mortgage Loans. 
  
 (a) Subject to Section 9.02, the respective obligations and responsibilities of the Depositor, the Master Servicer and
the Trustee created hereby in respect of the Certificates (other than the obligation of the Trustee to make certain payments after the Final Distribution Date to Certificateholders and the obligation of the Depositor to send certain notices as
hereinafter set forth) shall terminate upon the last action required to be taken by the Trustee on the Final Distribution Date pursuant to this Article IX following the earlier of: 
  
 (i) the later of the final payment or other liquidation (or any Advance with respect thereto) of the last
Mortgage Loan remaining in the Trust Fund or the disposition of all property acquired upon foreclosure or deed in lieu of foreclosure of any Mortgage Loan, or 
  

(ii) at the option of the Master Servicer or the Holder of Class SB Certificates as provided in Section 9.01(f) below, the
purchase of all Mortgage Loans and all property acquired in respect of any Mortgage Loan remaining in the Trust Fund, at a price equal to 100% of the unpaid principal balance of each Mortgage Loan (or, if less than such unpaid principal balance, the
fair market value of the related underlying property of such Mortgage Loan with respect to Mortgage Loans as to which title has been acquired if such fair market value is less than such unpaid principal balance) (and if such purchase is made by the
Master Servicer only, net of any unreimbursed Advances attributable to principal) on the day of repurchase, plus accrued interest thereon at the Net Mortgage Rate (or Modified Net Mortgage Rate in the case of any Modified Mortgage Loan), to, but not
including, the first day of the month in which such repurchase price is distributed; 
  

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 provided, however, that in no event shall the trust created hereby continue beyond the expiration of 21 years
from the death of the last survivor of the descendants of Joseph P. Kennedy, the late ambassador of the United States to the Court of St. James, living on the date hereof; and provided further, that the purchase price set forth above shall be
increased as is necessary, as determined by the Master Servicer, to avoid disqualification of any REMIC created hereunder as a REMIC. 
  
 The purchase price paid by the Master Servicer or the Holder of the Class SB Certificates, as applicable, pursuant to Section 9.01(a)(ii) shall also
include any amounts owed by the Seller pursuant to the last paragraph of Section 4 of the Assignment Agreement in respect of any liability, penalty or expense that resulted from a breach of the representation and warranty set forth in clause
(xlvii) of Section 4 of the Assignment Agreement that remain unpaid on the date of such purchase. 
  
 The right of the Master Servicer or the Holder of Class SB Certificates, as applicable, to purchase all of the Mortgage Loans pursuant to clause
(ii) above is conditioned upon the date of such purchase occurring on or after the Optional Termination Date. If such right is exercised by the Master Servicer, the Master Servicer shall be deemed to have been reimbursed for the full amount of
any unreimbursed Advances theretofore made by it with respect to the Mortgage Loans being purchased. In addition, the Master Servicer shall provide to the Trustee the certification required by Section 3.15, and the Trustee and any Custodian
shall, promptly following payment of the purchase price, release to the Master Servicer or the Holder of the Class SB Certificates, as applicable, the Mortgage Files pertaining to the Mortgage Loans being purchased. 
  
 In addition to the foregoing, on any Distribution Date on or after the
Optional Termination Date, the Master Servicer or the Holder of Class SB Certificates as provided in Section 9.01(f), shall have the right, at its option, to purchase the Class A Certificates, Class M Certificates, Class B Certificates and
Class SB Certificates in whole, but not in part, at a price equal to the sum of the outstanding Certificate Principal Balance of such Certificates plus the sum of one month’s Accrued Certificate Interest thereon, any previously unpaid Accrued
Certificate Interest, and any unpaid Prepayment Interest Shortfalls previously allocated thereto and, in the case of Prepayment Interest Shortfalls, accrued interest thereon at the applicable Pass-Through Rate, plus, with respect to any optional
termination by the Holder of Class SB Certificates, an amount equal to all accrued and unpaid Servicing Fees and reimbursement for all unreimbursed Advances and Servicing Advances, in each case through the date of such optional termination. If the
Master Servicer or the Holder of Class SB Certificates, as applicable, exercises this right to purchase the outstanding Class A Certificates, Class M Certificates, Class B Certificates and Class SB Certificates, the Master Servicer or the
Holder of Class SB Certificates, as applicable, will promptly terminate the respective obligations and responsibilities created hereby in respect of these Certificates pursuant to this Article IX. 
  
 (b) The Master Servicer or the Holder of Class SB Certificates, as
applicable, shall give the Trustee (and the Master Servicer if the Holder of Class SB Certificates is exercising its option) not less than 60 days’ prior notice of the Distribution Date on which (1) the Master Servicer or the Holder of
Class SB Certificates, as applicable, anticipates that the final distribution will be made to Certificateholders as a result of the exercise by the Master Servicer 
  

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 or the Holder of Class SB Certificates as applicable, of its right to purchase the Mortgage Loans or on which
(2) the Master Servicer or the Holder of Class SB Certificates, as applicable, anticipates that the Certificates will be purchased as a result of the exercise by the Master Servicer or the Holder of Class SB Certificates, as applicable, to
purchase the outstanding Certificates. Notice of any termination, specifying the anticipated Final Distribution Date (which shall be a date that would otherwise be a Distribution Date) upon which the Certificateholders may surrender their
Certificates to the Trustee (if so required by the terms hereof) for payment of the final distribution and cancellation or notice of any purchase of the outstanding Certificates, specifying the Distribution Date upon which the Holders may surrender
their Certificates to the Trustee for payment, shall be given promptly by the Master Servicer (if it is exercising the right to purchase the Mortgage Loans or to purchase the outstanding Certificates), or by the Trustee (in any other case) by letter
to the Certificateholders (with a copy to the Certificate Registrar) mailed not earlier than the 15th day and not later than the 25th day of the month next preceding the month of such final distribution specifying: 
  
 (i) the anticipated Final Distribution Date upon which final
payment of the Certificates is anticipated to be made upon presentation and surrender of Certificates at the office or agency of the Trustee therein designated where required pursuant to this Agreement or, in the case of the purchase by the Master
Servicer or the Holder of Class SB Certificates, as applicable, of the outstanding Certificates, the Distribution Date on which such purchase is made, 
  
 (ii) the amount of any such final payment or, in the case of the purchase of the outstanding Certificates, the purchase price, in either
case, if known, and 
  
 (iii) that the Record
Date otherwise applicable to such Distribution Date is not applicable, and that payment will be made only upon presentation and surrender of the Certificates at the office or agency of the Trustee therein specified. 
  
 If the Master Servicer or the Trustee is obligated to give notice to
Certificateholders as required above, it shall give such notice to the Certificate Registrar at the time such notice is given to Certificateholders. In the event of a purchase of the Mortgage Loans by the Master Servicer or the Holder of Class SB
Certificates, as applicable, the Master Servicer or the Holder of Class SB Certificates, as applicable, shall deposit in the Certificate Account before the Final Distribution Date in immediately available funds an amount equal to the purchase price
computed as provided above. As a result of the exercise by the Master Servicer or the Holder of Class SB Certificates, as applicable, of its right to purchase the outstanding Certificates, the Master Servicer or the Holder of Class SB Certificates,
as applicable, shall deposit in the Certificate Account before the Distribution Date on which such purchase is to occur, in immediately available funds, an amount equal to the purchase price for the Certificates computed as provided above, and
provide notice of such deposit to the Trustee. The Trustee shall withdraw from such account the amount specified in subsection (c) below and distribute such amount to the Certificateholders as specified in subsection (c) below. The Master
Servicer or the Holder of Class SB Certificates, as applicable, shall provide to the Trustee written notification of any change to the anticipated Final Distribution Date as soon as practicable. If the Trust Fund is not terminated on the anticipated
Final Distribution Date, for any reason, the Trustee shall promptly mail notice thereof to each affected Certificateholder. 
  

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 (c) Upon presentation and surrender of Class A Certificates, Class M Certificates, Class B
Certificates and Class SB Certificates by the Certificateholders thereof, the Trustee shall distribute to such Certificateholders (i) the amount otherwise distributable on such Distribution Date, if not in connection with the Master
Servicer’s or the Holder’s of Class SB Certificates, as applicable, election to repurchase the Mortgage Loans or the outstanding Class A Certificates, Class M Certificates, Class B Certificates and Class SB Certificates, or
(ii) if the Master Servicer or the Holder of Class SB Certificates, as applicable, elected to so repurchase the Mortgage Loans or the outstanding Class A Certificates, Class M Certificates, Class B Certificates and Class SB Certificates,
an amount equal to the price paid pursuant to Section 9.01(a) as follows: first, with respect to any optional termination by the Holder of the Class SB Certificates, payment of any accrued and unpaid Servicing Fees and reimbursement for all
unreimbursed Advances and Servicing Advances, in each case through the date of such optional termination, to the Master Servicer, second, with respect to the Class A Certificates, pari passu, the outstanding Certificate Principal Balance
thereof, plus Accrued Certificate Interest thereon for the related Interest Accrual Period and any previously unpaid Accrued Certificate Interest, third, with respect to the Class M-1 Certificates, the outstanding Certificate Principal Balance
thereof, plus Accrued Certificate Interest thereon for the related Interest Accrual Period and any previously unpaid Accrued Certificate Interest, fourth, with respect to the Class M-2 Certificates, the outstanding Certificate Principal Balance
thereof, plus Accrued Certificate Interest thereon for the related Interest Accrual Period and any previously unpaid Accrued Certificate Interest, fifth, with respect to the Class M-3 Certificates, the outstanding Certificate Principal Balance
thereof, plus Accrued Certificate Interest thereon for the related Interest Accrual Period and any previously unpaid Accrued Certificate Interest, sixth, with respect to the Class M-4 Certificates, the outstanding Certificate Principal Balance
thereof, plus Accrued Certificate Interest thereon for the related Interest Accrual Period and any previously unpaid Accrued Certificate Interest, seventh, with respect to the Class M-5 Certificates, the outstanding Certificate Principal Balance
thereof, plus Accrued Certificate Interest thereon for the related Interest Accrual Period and any previously unpaid Accrued Certificate Interest, eighth, with respect to the Class M-6 Certificates, the outstanding Certificate Principal Balance
thereof, plus Accrued Certificate Interest thereon for the related Interest Accrual Period and any previously unpaid Accrued Certificate Interest, ninth, with respect to the Class B Certificates, the outstanding Certificate Principal Balance
thereof, plus Accrued Certificate Interest thereon for the related Interest Accrual Period and any previously unpaid Accrued Certificate Interest, tenth, to the Class A Certificates, Class M Certificates and Class B Certificates, the amount of
any Prepayment Interest Shortfalls allocated thereto for such Distribution Date or remaining unpaid from prior Distribution Dates and accrued interest thereon at the applicable Pass-Through Rate, on a pro rata basis based on Prepayment Interest
Shortfalls allocated thereto for such Distribution Date or remaining unpaid from prior Distribution Dates, and eleventh, to the Class SB Certificates. 
  
 (d) In the event that any Certificateholders shall not surrender their Certificates for final payment and cancellation on or before the Final Distribution
Date, the Master Servicer (if it exercised its right to purchase the Mortgage Loans) or the Trustee (in any other case), shall give a second written notice to the remaining Certificateholders to surrender their Certificates for cancellation and
receive the final distribution with respect thereto. If within six months after the second notice any Certificate shall not have been surrendered for cancellation, the Trustee shall take appropriate steps as directed by the Master Servicer to
contact the remaining Certificateholders concerning surrender of their Certificates. The costs and expenses of 
  

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 maintaining the Certificate Account and of contacting Certificateholders shall be paid out of the assets which remain in
the Certificate Account. If within nine months after the second notice any Certificates shall not have been surrendered for cancellation, the Trustee shall pay to the Master Servicer all amounts distributable to the holders thereof and the Master
Servicer shall thereafter hold such amounts until distributed to such Holders. No interest shall accrue or be payable to any Certificateholder on any amount held in the Certificate Account or by the Master Servicer as a result of such
Certificateholder’s failure to surrender its Certificate(s) for final payment thereof in accordance with this Section 9.01 and the Certificateholders shall look only to the Master Servicer for such payment. 
  
 (e) If any Certificateholders do not surrender their Certificates on or
before the Distribution Date on which a purchase of the outstanding Certificates is to be made, the Master Servicer shall give a second written notice to such Certificateholders to surrender their Certificates for payment of the purchase price
therefor. If within six months after the second notice any Certificate shall not have been surrendered for cancellation, the Trustee shall take appropriate steps as directed by the Master Servicer to contact the Holders of such Certificates
concerning surrender of their Certificates. The costs and expenses of maintaining the Certificate Account and of contacting Certificateholders shall be paid out of the assets which remain in the Certificate Account. If within nine months after the
second notice any Certificates shall not have been surrendered for cancellation in accordance with this Section 9.01, the Trustee shall pay to the Master Servicer all amounts distributable to the Holders thereof and shall have no further
obligation or liability therefor and the Master Servicer shall thereafter hold such amounts until distributed to such Holders. No interest shall accrue or be payable to any Certificateholder on any amount held in the Certificate Account or by the
Master Servicer as a result of such Certificateholder’s failure to surrender its Certificate(s) for payment in accordance with this Section 9.01. Any Certificate that is not surrendered on the Distribution Date on which a purchase pursuant
to this Section 9.01 occurs as provided above will be deemed to have been purchased and the Holder as of such date will have no rights with respect thereto except to receive the purchase price therefor minus any costs and expenses associated
with such Certificate Account and notices allocated thereto. Any Certificates so purchased or deemed to have been purchased on such Distribution Date shall remain outstanding hereunder. The Master Servicer shall be for all purposes the Holder
thereof as of such date. 
  
 (f) With respect to the first
possible Optional Termination Date, the Master Servicer shall have the sole option to exercise the purchase options described in Section 9.01(a) and the Holder of the Class SB Certificates shall have no claim thereto. If, however, the Master
Servicer elects not to exercise one of its options to purchase pursuant to Section 9.01(a) with respect to the first possible Optional Termination Date, the Holder of Class SB Certificates shall have the sole option to exercise the purchase
options described in Section 9.01(a) on the second possible Optional Termination Date and the Master Servicer shall have no claim thereto. If the Holder of Class SB Certificates elects not to exercise one of its options to purchase pursuant to
Section 9.01(a) with respect to the second possible Optional Termination Date, it shall lose such right and have no claim to exercise any purchase options pursuant to this Section 9.01 thereafter. Beginning with the third possible Optional
Termination Date and thereafter, the Master Servicer shall again have the sole option to exercise the purchase options described in Section 9.01(a). 
  

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 Section 9.02 Additional Termination Requirements. 
  
 (a) Each of REMIC I and REMIC II , as the case may be, shall be terminated
in accordance with the following additional requirements, unless the Trustee and the Master Servicer have received an Opinion of Counsel (which Opinion of Counsel shall not be an expense of the Trustee) to the effect that the failure of any
REMIC created hereunder to comply with the requirements of this Section 9.02 will not (i) result in the imposition on the Trust Fund of taxes on “prohibited transactions,” as described in Section 860F of the Code, or
(ii) cause any REMIC created hereunder to fail to qualify as a REMIC at any time that any Certificate is outstanding: 
  
 (i) The Master Servicer shall establish a 90-day liquidation period for each of REMIC I and REMIC II and specify the first day of such
period in a statement attached to the Trust Fund’s final Tax Return pursuant to Treasury regulations §1.860F-1. The Master Servicer also shall satisfy all of the requirements of a qualified liquidation for each of REMIC I and REMIC II,
under Section 860F of the Code and the regulations thereunder; 
  
 (ii) The Master Servicer shall notify the Trustee at the commencement of such 90-day liquidation period and, at or prior to the time of making of the final payment on the Certificates, the Trustee shall sell or
otherwise dispose of all of the remaining assets of the Trust Fund in accordance with the terms hereof; and 
  
 (iii) If the Master Servicer is exercising its right to purchase the assets of the Trust Fund, the Master Servicer shall, during the
90-day liquidation period and at or prior to the Final Distribution Date, purchase all of the assets of the Trust Fund for cash; 
  
 (b) Each Holder of a Certificate and the Trustee hereby irrevocably approves and appoints the Master Servicer as its attorney-in-fact to adopt a plan of
complete liquidation for each of REMIC I and REMIC II at the expense of the Trust Fund in accordance with the terms and conditions of this Agreement. 
  
 ARTICLE X 
 REMIC PROVISIONS

  
 Section 10.01 REMIC Administration.

  
 (a) The REMIC Administrator shall make an election to treat
each of REMIC I and REMIC II as a REMIC under the Code and, if necessary, under applicable state law. Such election will be made on Form 1066 or other appropriate federal tax or information return (including Form 8811) or any appropriate
state return for the taxable year ending on the last day of the calendar year in which the Certificates are issued. The REMIC I Regular Interests shall be designated as the “regular interests” and the Class R-I Certificates shall be
designated as the sole Class of “residual interests” in REMIC I. The REMIC II Regular Interests shall be designated as the “regular interests” and the Class R-II Certificates shall be designated as the sole Class of
“residual interests” in REMIC II. The REMIC Administrator and the Trustee shall not permit the creation of any “interests” (within the meaning of Section 860G of the Code) in REMIC I or REMIC II other than the REMIC I
Regular Interests, the REMIC II Regular Interests and the Certificates. 
  

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 (b) The Closing Date is hereby designated as the “startup day” of each of REMIC I and REMIC II
within the meaning of Section 860G(a)(9) of the Code (the “Startup Date”). 
  
 (c) The REMIC Administrator shall hold a Class R Certificate in each REMIC representing a [            ]% Percentage Interest of the
Class R Certificates in each REMIC and shall be designated as the “tax matters person” with respect to each of REMIC I and REMIC II in the manner provided under Treasury regulations Section 1.860F-4(d) and Treasury regulations
Section 301.6231(a)(7)-1. The REMIC Administrator, as tax matters person, shall (i) act on behalf of each of REMIC I and REMIC II in relation to any tax matter or controversy involving the Trust Fund and (ii) represent the
Trust Fund in any administrative or judicial proceeding relating to an examination or audit by any governmental taxing authority with respect thereto. The legal expenses, including without limitation attorneys’ or accountants’ fees,
and costs of any such proceeding and any liability resulting therefrom shall be expenses of the Trust Fund and the REMIC Administrator shall be entitled to reimbursement therefor out of amounts attributable to the Mortgage Loans on deposit in the
Custodial Account as provided by Section 3.10 unless such legal expenses and costs are incurred by reason of the REMIC Administrator’s willful misfeasance, bad faith or gross negligence. If the REMIC Administrator is no longer the
Master Servicer hereunder, at its option the REMIC Administrator may continue its duties as REMIC Administrator and shall be paid reasonable compensation not to exceed $xxx,xxx per year by any successor Master Servicer hereunder for so acting as the
REMIC Administrator. 
  
 (d) The REMIC Administrator shall prepare
or cause to be prepared all of the Tax Returns that it determines are required with respect to the REMICs created hereunder and deliver such Tax Returns in a timely manner to the Trustee and the Trustee shall sign and file such Tax Returns in a
timely manner. The expenses of preparing such returns shall be borne by the REMIC Administrator without any right of reimbursement therefor. The REMIC Administrator agrees to indemnify and hold harmless the Trustee with respect to any
tax or liability arising from the Trustee’s signing of Tax Returns that contain errors or omissions. The Trustee and Master Servicer shall promptly provide the REMIC Administrator with such information as the REMIC Administrator may from
time to time request for the purpose of enabling the REMIC Administrator to prepare Tax Returns. 
  
 (e) The REMIC Administrator shall provide (i) to any Transferor of a Class R Certificate such information as is necessary for the application of any
tax relating to the transfer of a Class R Certificate to any Person who is not a Permitted Transferee, (ii) to the Trustee and the Trustee shall forward to the Certificateholders such information or reports as are required by the Code or the
REMIC Provisions including reports relating to interest, original issue discount, if any, and market discount or premium (using the Prepayment Assumption) and (iii) to the Internal Revenue Service the name, title, address and telephone number
of the person who will serve as the representative of each REMIC created hereunder. 
  
 (f) The Master Servicer and the REMIC Administrator shall take such actions and shall cause each REMIC created hereunder to take such actions as are reasonably within the Master Servicer’s or the REMIC
Administrator’s control and the scope of its duties more 
  

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 specifically set forth herein as shall be necessary or desirable to maintain the status thereof as a REMIC under the
REMIC Provisions (and the Trustee shall assist the Master Servicer and the REMIC Administrator, to the extent reasonably requested by the Master Servicer and the REMIC Administrator to do so). In performing their duties as more specifically
set forth herein, the Master Servicer and the REMIC Administrator shall not knowingly or intentionally take any action, cause the Trust Fund to take any action or fail to take (or fail to cause to be taken) any action reasonably within their
respective control and the scope of duties more specifically set forth herein, that, under the REMIC Provisions, if taken or not taken, as the case may be, could (i) endanger the status of any REMIC created hereunder as a REMIC or
(ii) result in the imposition of a tax upon any REMIC created hereunder (including but not limited to the tax on prohibited transactions as defined in Section 860F(a)(2) of the Code (except as provided in Section 2.04) and the
tax on contributions to a REMIC set forth in Section 860G(d) of the Code) (either such event, in the absence of an Opinion of Counsel or the indemnification referred to in this sentence, an “Adverse REMIC Event”) unless the Master
Servicer or the REMIC Administrator, as applicable, has received an Opinion of Counsel (at the expense of the party seeking to take such action or, if such party fails to pay such expense, and the Master Servicer or the REMIC Administrator, as
applicable, determines that taking such action is in the best interest of the Trust Fund and the Certificateholders, at the expense of the Trust Fund, but in no event at the expense of the Master Servicer, the REMIC Administrator or the Trustee) to
the effect that the contemplated action will not, with respect to the Trust Fund created hereunder, endanger such status or, unless the Master Servicer or the REMIC Administrator or both, as applicable, determine in its or their sole discretion to
indemnify the Trust Fund against the imposition of such a tax, result in the imposition of such a tax. Wherever in this Agreement a contemplated action may not be taken because the timing of such action might result in the imposition of a tax
on the Trust Fund, or may only be taken pursuant to an Opinion of Counsel that such action would not impose a tax on the Trust Fund, such action may nonetheless be taken provided that the indemnity given in the preceding sentence with respect to any
taxes that might be imposed on the Trust Fund has been given and that all other preconditions to the taking of such action have been satisfied. The Trustee shall not take or fail to take any action (whether or not authorized hereunder) as to
which the Master Servicer or the REMIC Administrator, as applicable, has advised it in writing that it has received an Opinion of Counsel to the effect that an Adverse REMIC Event could occur with respect to such action or inaction, as the case may
be. In addition, prior to taking any action with respect to the Trust Fund or its assets, or causing the Trust Fund to take any action, which is not expressly permitted under the terms of this Agreement, the Trustee shall consult with the
Master Servicer or the REMIC Administrator, as applicable, or its designee, in writing, with respect to whether such action could cause an Adverse REMIC Event to occur with respect to the Trust Fund and the Trustee shall not take any such action or
cause the Trust Fund to take any such action as to which the Master Servicer or the REMIC Administrator, as applicable, has advised it in writing that an Adverse REMIC Event could occur. The Master Servicer or the REMIC Administrator, as
applicable, may consult with counsel to make such written advice, and the cost of same shall be borne by the party seeking to take the action not expressly permitted by this Agreement, but in no event at the expense of the Master Servicer or the
REMIC Administrator. At all times as may be required by the Code, the Master Servicer or the REMIC Administrator, as applicable, will to the extent within its control and the scope of its duties more specifically set forth herein, maintain
substantially all of the assets of the REMIC as “qualified mortgages” as defined in Section 860G(a)(3) of the Code and “permitted investments” as defined in Section 860G(a)(5) of the Code. 
  

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 (g) In the event that any tax is imposed on “prohibited transactions” of any REMIC created
hereunder as defined in Section 860F(a)(2) of the Code, on “net income from foreclosure property” of any REMIC as defined in Section 860G(c) of the Code, on any contributions to any REMIC after the Startup Date therefor pursuant
to Section 860G(d) of the Code, or any other tax imposed by the Code or any applicable provisions of state or local tax laws, such tax shall be charged (i) to the Master Servicer, if such tax arises out of or results from a breach by the
Master Servicer in its role as Master Servicer or REMIC Administrator of any of its obligations under this Agreement or the Master Servicer has in its sole discretion determined to indemnify the Trust Fund against such tax, (ii) to the Trustee,
if such tax arises out of or results from a breach by the Trustee of any of its obligations under this Article X, or (iii) otherwise against amounts on deposit in the Custodial Account as provided by Section 3.10 and on the Distribution
Date(s) following such reimbursement the aggregate of such taxes shall be allocated in reduction of the Accrued Certificate Interest on each Class entitled thereto in the same manner as if such taxes constituted a Prepayment Interest Shortfall.

  
 (h) The Trustee and the Master Servicer shall, for federal
income tax purposes, maintain books and records with respect to each REMIC on a calendar year and on an accrual basis or as otherwise may be required by the REMIC Provisions. 
  
 (i) Following the Startup Date, neither the Master Servicer nor the Trustee shall accept any contributions of assets to any
REMIC unless (subject to Section 10.01(f)) the Master Servicer and the Trustee shall have received an Opinion of Counsel (at the expense of the party seeking to make such contribution) to the effect that the inclusion of such assets in any
REMIC will not cause any REMIC created hereunder to fail to qualify as a REMIC at any time that any Certificates are outstanding or subject any such REMIC to any tax under the REMIC Provisions or other applicable provisions of federal, state
and local law or ordinances. 
  
 (j) Neither the Master Servicer
nor the Trustee shall (subject to Section 10.01(f)) enter into any arrangement by which any REMIC created hereunder will receive a fee or other compensation for services nor permit any REMIC created hereunder to receive any income
from assets other than “qualified mortgages” as defined in Section 860G(a)(3) of the Code or “permitted investments” as defined in Section 860G(a)(5) of the Code. 
  
 (k) Solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
Regulations, the “latest possible maturity date” by which the principal balance of each regular interest in each REMIC would be reduced to zero is [DATE], which is the Distribution Date in the month following the last scheduled payment on
any Mortgage Loan. 
  
 (l) Within 30 days after the Closing Date,
the REMIC Administrator shall prepare and file with the Internal Revenue Service Form 8811, “Information Return for Real Estate Mortgage Investment Conduits (REMIC) and Issuers of Collateralized Debt Obligations” for the Trust Fund.

  

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 (m) Neither the Trustee nor the Master Servicer shall sell, dispose of or substitute for any of the
Mortgage Loans (except in connection with (i) the default, imminent default or foreclosure of a Mortgage Loan, including but not limited to, the acquisition or sale of a Mortgaged Property acquired by deed in lieu of foreclosure, (ii) the
bankruptcy of the Trust Fund, (iii) the termination of any REMIC pursuant to Article IX of this Agreement or (iv) a purchase of Mortgage Loans pursuant to Article II or III of this Agreement) or acquire any assets for any REMIC
or sell or dispose of any investments in the Custodial Account or the Certificate Account for gain, or accept any contributions to any REMIC after the Closing Date unless it has received an Opinion of Counsel that such sale, disposition,
substitution or acquisition will not (a) affect adversely the status of any REMIC created hereunder as a REMIC or (b) unless the Master Servicer has determined in its sole discretion to indemnify the Trust Fund against
such tax, cause any REMIC to be subject to a tax on “prohibited transactions” or “contributions” pursuant to the REMIC Provisions. 
  
 Section 10.02 Master Servicer, REMIC Administrator and Trustee Indemnification. 
  
 (a) The Trustee agrees to indemnify the Trust Fund, the Depositor, the REMIC Administrator and the Master Servicer for any
taxes and costs including, without limitation, any reasonable attorneys fees imposed on or incurred by the Trust Fund, the Depositor or the Master Servicer, as a result of a breach of the Trustee’s covenants set forth in Article VIII or
this Article X. In the event that [Wells Fargo] is no longer the Master Servicer, the Trustee shall indemnify [Wells Fargo] for any taxes and costs including, without limitation, any reasonable attorneys fees imposed on or incurred by
[Wells Fargo] as a result of a breach of the Trustee’s covenants set forth in Article VIII or this Article X. 
  
 (b) The REMIC Administrator agrees to indemnify the Trust Fund, the Depositor, the Master Servicer and the Trustee for any taxes and costs (including,
without limitation, any reasonable attorneys’ fees) imposed on or incurred by the Trust Fund, the Depositor, the Master Servicer or the Trustee, as a result of a breach of the REMIC Administrator’s covenants set forth in this
Article X with respect to compliance with the REMIC Provisions, including without limitation, any penalties arising from the Trustee’s execution of Tax Returns prepared by the REMIC Administrator that contain errors or omissions; provided,
however, that such liability will not be imposed to the extent such breach is a result of an error or omission in information provided to the REMIC Administrator by the Master Servicer in which case Section 10.02(c) will apply. 
  
 (c) The Master Servicer agrees to indemnify the Trust Fund, the Depositor,
the REMIC Administrator and the Trustee for any taxes and costs (including, without limitation, any reasonable attorneys’ fees) imposed on or incurred by the Trust Fund, the Depositor, the REMIC Administrator or the Trustee, as a result of a
breach of the Master Servicer’s covenants set forth in this Article X or in Article III with respect to compliance with the REMIC Provisions, including without limitation, any penalties arising from the Trustee’s execution of Tax
Returns prepared by the Master Servicer that contain errors or omissions. 
  

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 ARTICLE XI 
 MISCELLANEOUS PROVISIONS 
  
 Section 11.01 Amendment. 
  
 (a) This
Agreement or any Custodial Agreement may be amended from time to time by the Depositor, the Master Servicer and the Trustee, without the consent of any of the Certificateholders: 
  
 (i) to cure any ambiguity, 
  
 (ii) to correct or supplement any provisions herein or therein, which may be inconsistent with any other
provisions herein or therein or to correct any error, 
  
 (iii) to modify, eliminate or add to any of its provisions to such extent as shall be necessary or desirable to maintain the qualification of any REMIC created hereunder as a REMIC at all times that any Certificate is outstanding or to
avoid or minimize the risk of the imposition of any tax on the Trust Fund pursuant to the Code that would be a claim against the Trust Fund, provided that the Trustee has received an Opinion of Counsel to the effect that (A) such action
is necessary or desirable to maintain such qualification or to avoid or minimize the risk of the imposition of any such tax and (B) such action will not adversely affect in any material respect the interests of any Certificateholder,

  
 (iv) to change the timing and/or nature of
deposits into the Custodial Account or the Certificate Account or to change the name in which the Custodial Account is maintained, provided that (A) the Certificate Account Deposit Date shall in no event be later than the related
Distribution Date, (B) such change shall not, as evidenced by an Opinion of Counsel, adversely affect in any material respect the interests of any Certificateholder and (C) such change shall not result in a reduction of the rating assigned
to any Class of Certificates below the lower of the then-current rating or the rating assigned to such Certificates as of the Closing Date, as evidenced by a letter from each Rating Agency to such effect, 
  
 (v) to modify, eliminate or add to the provisions of
Section 5.02(f) or any other provision hereof restricting transfer of the Class R Certificates by virtue of their being the “residual interests” in the Trust Fund provided that (A) such change shall not result in reduction
of the rating assigned to any such Class of Certificates below the lower of the then-current rating or the rating assigned to such Certificates as of the Closing Date, as evidenced by a letter from each Rating Agency to such effect, and
(B) such change shall not (subject to Section 10.01(f)), as evidenced by an Opinion of Counsel (at the expense of the party seeking so to modify, eliminate or add such provisions), cause the Trust Fund or any of the Certificateholders
(other than the transferor) to be subject to a federal tax caused by a transfer to a Person that is not a Permitted Transferee, or 
  
 (vi) to make any other provisions with respect to matters or questions arising under this Agreement or such Custodial Agreement which
shall not be materially inconsistent with the provisions of this Agreement, provided that such action shall not, as evidenced by an Opinion of Counsel, adversely affect in any material respect the interests of any Certificateholder and is
authorized or permitted under Section 11.01. 
  

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 (b) This Agreement or any Custodial Agreement may also be amended from time to time by the Depositor, the
Master Servicer, the Trustee and the Holders of Certificates evidencing in the aggregate not less than xx% of the Percentage Interests of each Class of Certificates with a Certificate Principal Balance greater than zero affected thereby for the
purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Agreement or such Custodial Agreement or of modifying in any manner the rights of the Holders of Certificates of such Class; provided,
however, that no such amendment shall: 
  
 (i) reduce in any manner the amount of, or delay the timing of, payments which are required to be distributed on any Certificate without the consent of the Holder of such Certificate, 
  
 (ii) adversely affect in any material respect the interest
of the Holders of Certificates of any Class in a manner other than as described in clause (i) without the consent of Holders of Certificates of such Class evidencing, as to such Class, Percentage Interests aggregating not less than xx%, or

  
 (iii) reduce the aforesaid percentage of
Certificates of any Class the Holders of which are required to consent to any such amendment, in any such case without the consent of the Holders of all Certificates of such Class then outstanding. 
  
 (c) Notwithstanding any contrary provision of this Agreement, the Trustee
shall not consent to any amendment to this Agreement unless it shall have first received an Opinion of Counsel (at the expense of the party seeking such amendment) to the effect that such amendment or the exercise of any power granted to the Master
Servicer, the Depositor or the Trustee in accordance with such amendment will not result in the imposition of a federal tax on the Trust Fund or cause any REMIC created hereunder to fail to qualify as a REMIC at any time that any Certificate is
outstanding; provided, that if the indemnity described in Section 10.01(f) with respect to any taxes that might be imposed on the Trust Fund has been given, the Trustee shall not require the delivery to it of the Opinion of Counsel
described in this Section 11.01(c). The Trustee may but shall not be obligated to enter into any amendment pursuant to this Section that affects its rights, duties and immunities and this Agreement or otherwise; provided,
however, such consent shall not be unreasonably withheld. 
  
 (d) Promptly after the execution of any such amendment the Trustee shall furnish written notification of the substance of such amendment to each Certificateholder. It shall not be necessary for the consent of Certificateholders under
this Section 11.01 to approve the particular form of any proposed amendment, but it shall be sufficient if such consent shall approve the substance thereof. The manner of obtaining such consents and of evidencing the authorization of the
execution thereof by Certificateholders shall be subject to such reasonable regulations as the Trustee may prescribe. 
  

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 (e) The Depositor shall have the option, in its sole discretion, to obtain and deliver to the Trustee any
corporate guaranty, payment obligation, irrevocable letter of credit, surety bond, insurance policy or similar instrument or a reserve fund, or any combination of the foregoing, for the purpose of protecting the Holders of the Class R Certificates
against any or all Realized Losses or other shortfalls. Any such instrument or fund shall be held by the Trustee for the benefit of the Class R Certificateholders, but shall not be and shall not be deemed to be under any circumstances included in
any REMIC. To the extent that any such instrument or fund constitutes a reserve fund for federal income tax purposes, (i) any reserve fund so established shall be an outside reserve fund and not an asset of such REMIC, (ii) any such
reserve fund shall be owned by the Depositor, and (iii) amounts transferred by such REMIC to any such reserve fund shall be treated as amounts distributed by such REMIC to the Depositor or any successor, all within the meaning of Treasury
regulations Section 1.860G-2(h) in effect as of the Cut-off Date. In connection with the provision of any such instrument or fund, this Agreement and any provision hereof may be modified, added to, deleted or otherwise amended in any manner
that is related or incidental to such instrument or fund or the establishment or administration thereof, such amendment to be made by written instrument executed or consented to by the Depositor and such related insurer but without the consent of
any Certificateholder and without the consent of the Master Servicer or the Trustee being required unless any such amendment would impose any additional obligation on, or otherwise adversely affect the interests of the Certificateholders, the Master
Servicer or the Trustee, as applicable; provided that the Depositor obtains an Opinion of Counsel (which need not be an opinion of Independent counsel) to the effect that any such amendment will not cause (a) any federal tax to be imposed on
the Trust Fund, including without limitation, any federal tax imposed on “prohibited transactions” under Section 860F(a)(1) of the Code or on “contributions after the startup date” under Section 860G(d)(1) of the Code
and (b) any REMIC created hereunder to fail to qualify as a REMIC at any time that any Certificate is outstanding. In the event that the Depositor elects to provide such coverage in the form of a limited guaranty provided by the Seller, the
Depositor may elect that the text of such amendment to this Agreement shall be substantially in the form attached hereto as Exhibit K (in which case the Seller’s Subordinate Certificate Loss Obligation as described in such exhibit shall be
established by the Seller’s consent to such amendment) and that the limited guaranty shall be executed in the form attached hereto as Exhibit L, with such changes as the Depositor shall deem to be appropriate; it being understood that the
Trustee has reviewed and approved the content of such forms and that the Trustee’s consent or approval to the use thereof is not required. 
  
 Section 11.02 Recordation of Agreement; Counterparts. 
  
 (a) To the extent permitted by applicable law, this Agreement is subject to recordation in all appropriate public offices
for real property records in all the counties or other comparable jurisdictions in which any or all of the properties subject to the Mortgages are situated, and in any other appropriate public recording office or elsewhere, such recordation to be
effected by the Master Servicer and at its expense on direction by the Trustee (pursuant to the request of the Holders of Certificates entitled to at least xx% of the Voting Rights), but only upon direction accompanied by an Opinion of Counsel to
the effect that such recordation materially and beneficially affects the interests of the Certificateholders. 
  
 (b) For the purpose of facilitating the recordation of this Agreement as herein provided and for other purposes, this Agreement may be executed
simultaneously in any number of counterparts, each of which counterparts shall be deemed to be an original, and such counterparts shall constitute but one and the same instrument. 
  

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 Section 11.03 Limitation on Rights of Certificateholders. 
  
 (a) The death or incapacity of any Certificateholder shall not operate to
terminate this Agreement or the Trust Fund, nor entitle such Certificateholder’s legal representatives or heirs to claim an accounting or to take any action or proceeding in any court for a partition or winding up of the Trust Fund, nor
otherwise affect the rights, obligations and liabilities of any of the parties hereto. 
  
 (b) No Certificateholder shall have any right to vote (except as expressly provided herein) or in any manner otherwise control the operation and management of the Trust Fund, or the obligations of the parties hereto,
nor shall anything herein set forth, or contained in the terms of the Certificates, be construed so as to constitute the Certificateholders from time to time as partners or members of an association; nor shall any Certificateholder be under any
liability to any third person by reason of any action taken by the parties to this Agreement pursuant to any provision hereof. 
  
 (c) No Certificateholder shall have any right by virtue of any provision of this Agreement to institute any suit, action or proceeding in equity or at law
upon or under or with respect to this Agreement, unless such Holder previously shall have given to the Trustee a written notice of default and of the continuance thereof, as hereinbefore provided, and unless also the Holders of Certificates of any
Class evidencing in the aggregate not less than xx% of the related Percentage Interests of such Class, shall have made written request upon the Trustee to institute such action, suit or proceeding in its own name as Trustee hereunder and shall have
offered to the Trustee such reasonable indemnity as it may require against the costs, expenses and liabilities to be incurred therein or thereby, and the Trustee, for 60 days after its receipt of such notice, request and offer of indemnity, shall
have neglected or refused to institute any such action, suit or proceeding it being understood and intended, and being expressly covenanted by each Certificateholder with every other Certificateholder and the Trustee, that no one or more Holders of
Certificates of any Class shall have any right in any manner whatever by virtue of any provision of this Agreement to affect, disturb or prejudice the rights of the Holders of any other of such Certificates of such Class or any other Class, or to
obtain or seek to obtain priority over or preference to any other such Holder, or to enforce any right under this Agreement, except in the manner herein provided and for the common benefit of Certificateholders of such Class or all Classes, as the
case may be. For the protection and enforcement of the provisions of this Section 11.03, each and every Certificateholder and the Trustee shall be entitled to such relief as can be given either at law or in equity. 
  
 Section 11.04 Governing Law. 
  
 This agreement and the Certificates shall be governed by and construed in
accordance with the laws of the State of New York and the obligations, rights and remedies of the parties hereunder shall be determined in accordance with such laws. 
  

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 Section 11.05 Notices. 
  
 All demands and notices hereunder shall be in writing and shall be deemed to have been duly given if personally delivered at
or mailed by registered mail, postage prepaid (except for notices to the Trustee which shall be deemed to have been duly given only when received), to (a) in the case of the Depositor, 1221 Avenue of the Americas, New York, NY 10020, or such other
address as may hereafter be furnished to the Master Servicer and the Trustee in writing by the Depositor; (b) in the case of the Master Servicer, [WELLS FARGO NAME & ADDRESS], or such other address as may be hereafter furnished to the Depositor
and the Trustee by the Master Servicer in writing; (c) in the case of the Trustee, the Corporate Trust Office or such other address as may hereafter be furnished to the Depositor and the Master Servicer in writing by the Trustee; (d) in the case of
Standard & Poor’s, 55 Water Street, New York, New York 10041; Attention: Mortgage Surveillance or such other address as may be hereafter furnished to the Depositor, Trustee and Master Servicer by Standard & Poor’s; (e) in the case
of Moody’s, 99 Church Street, New York, New York 10007, Attention: ABS Monitoring Department, or such other address as may be hereafter furnished to the Depositor, the Trustee and the Master Servicer in writing by Moody’s, and (f) in the
case of the Hedge Agreement Provider, [HEDGE AGREEMENT PROVIDER NAME and ADDRESS], or such other address as may be hereafter furnished to the Depositor, the Trustee and the Master Servicer in writing by the Hedge Agreement Provider. Any notice
required or permitted to be mailed to a Certificateholder shall be given by first Class Mail, postage prepaid, at the address of such holder as shown in the Certificate Register. Any notice so mailed within the time prescribed in this Agreement
shall be conclusively presumed to have been duly given, whether or not the Certificateholder receives such notice. 
  
 Section 11.06 Notices to Rating Agencies. 
  
 The Depositor, the Master Servicer or the Trustee, as applicable, shall notify each Rating Agency and each Subservicer at such time as it is otherwise
required pursuant to this Agreement to give notice of the occurrence of, any of the events described in clause (a), (b), (c), (d), (g), (h), (i) or (j) below or provide a copy to each Rating Agency and each Subservicer at such time as
otherwise required to be delivered pursuant to this Agreement of any of the statements described in clauses (e) and (f) below: 
  
 (a) a material change or amendment to this Agreement, 
  
 (b) the occurrence of an Event of Default, 
  
 (c) the termination or appointment of a successor Master Servicer or Trustee or a change in the majority ownership of the Trustee, 
  
 (d) the filing of any claim under the Master Servicer’s blanket fidelity
bond and the errors and omissions insurance policy required by Section 3.12 or the cancellation or modification of coverage under any such instrument, 
  
 (e) the statement required to be delivered to the Holders of each Class of Certificates pursuant to Section 4.03, 
  

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 (f) the statements required to be delivered pursuant to Sections 3.18 and 3.19, 
  
 (g) a change in the location of the Custodial Account or the Certificate
Account, 
  
 (h) the occurrence of any monthly cash flow shortfall
to the Holders of any Class of Certificates resulting from the failure by the Master Servicer to make an Advance pursuant to Section 4.04, 
  
 (i) the occurrence of the Final Distribution Date, and 
  
 (j) the repurchase of or substitution for any Mortgage Loan, provided, however, that with respect to notice of the occurrence of the events
described in clauses (d), (g) or (h) above, the Master Servicer shall provide prompt written notice to each Rating Agency and each Subservicer of any such event known to the Master Servicer. 
  
 Section 11.07 Severability of Provisions. 
  
 If any one or more of the covenants, agreements, provisions or terms of this
Agreement shall be for any reason whatsoever held invalid, then such covenants, agreements, provisions or terms shall be deemed severable from the remaining covenants, agreements, provisions or terms of this Agreement and shall in no way affect the
validity or enforceability of the other provisions of this Agreement or of the Certificates or the rights of the Holders thereof. 
  
 Section 11.08 Supplemental Provisions for Resecuritization. 
  
 (a) This Agreement may be supplemented by means of the addition of a separate Article hereto (a “Supplemental
Article”) for the purpose of resecuritizing any of the Certificates issued hereunder, under the following circumstances. With respect to any Class or Classes of Certificates issued hereunder, or any portion of any such Class, as to which
the Depositor or any of its Affiliates (or any designee thereof) is the registered Holder (the “Resecuritized Certificates”), the Depositor may deposit such Resecuritized Certificates into a new REMIC, grantor trust or custodial
arrangement (a ”Restructuring Vehicle”) to be held by the Trustee pursuant to a Supplemental Article. The instrument adopting such Supplemental Article shall be executed by the Depositor, the Master Servicer and the
Trustee; provided, that neither the Master Servicer nor the Trustee shall withhold their consent thereto if their respective interests would not be materially adversely affected thereby. To the extent that the terms of the Supplemental
Article do not in any way affect any provisions of this Agreement as to any of the Certificates initially issued hereunder, the adoption of the Supplemental Article shall not constitute an “amendment” of this Agreement.
Each Supplemental Article shall set forth all necessary provisions relating to the holding of the Resecuritized Certificates by the Trustee, the establishment of the Restructuring Vehicle, the issuing of various classes of new certificates
by the Restructuring Vehicle and the distributions to be made thereon, and any other provisions necessary to the purposes thereof. In connection with each Supplemental Article, the Depositor shall deliver to the Trustee an Opinion of Counsel
to the effect that (i) the Restructuring Vehicle will qualify as a REMIC, grantor trust or other entity not subject to taxation for federal income tax purposes and (ii) the adoption of the Supplemental Article will not endanger the
status of any REMIC created hereunder as a REMIC or result in the imposition of a tax upon the Trust Fund (including but not limited to the tax on prohibited transaction as defined in Section 860F(a)(2) of the Code and the tax on
contributions to a REMIC as set forth in Section 860G(d) of the Code. 
  

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 ARTICLE XII 
 COMPLIANCE WITH REGULATION AB 
  
 Section 12.01 Intent of the Parties; Reasonableness. 
  
 The Depositor, the Trustee and the Master Servicer acknowledge and agree that the purpose of this Article XII is to facilitate compliance by the Depositor with the provisions of Regulation AB and related rules and
regulations of the Commission. The Depositor shall not exercise its right to request delivery of information or other performance under these provisions other than in good faith, or for purposes other than compliance with the Securities Act, the
Exchange Act and the rules and regulations of the Commission under the Securities Act and the Exchange Act. Each of the Master Servicer and the Trustee acknowledges that interpretations of the requirements of Regulation AB may change over time,
whether due to interpretive guidance provided by the Commission or its staff, consensus among participants in the mortgage-backed securities markets, advice of counsel, or otherwise, and agrees to comply with requests made by the Depositor in good
faith for delivery of information under these provisions on the basis of evolving interpretations of Regulation AB. Each of the Master Servicer and the Trustee shall cooperate fully with the Depositor to deliver to the Depositor (including any of
its assignees or designees), any and all statements, reports, certifications, records and any other information necessary in the good faith determination of the Depositor to permit the Depositor to comply with the provisions of Regulation AB,
together with such disclosures relating to the Master Servicer, the Trustee and the Mortgage Loans, or the servicing of the Mortgage Loans, reasonably believed by the Depositor to be necessary in order to effect such compliance. 
  
 Section 12.02 Additional Representations and Warranties of the
Trustee. 
  
 (a) The Trustee shall be deemed to represent to
the Depositor as of the date on which information is first provided to the Depositor under Section 12.03 that, except as disclosed in writing to the Depositor prior to such date: (i) it is not aware and has not received notice that any
default, early amortization or other performance triggering event has occurred as to any other Securitization Transaction due to any act or failure to act of the Trustee; (ii) it has not been terminated as trustee in a securitization of
mortgage loans; (iii) there are no aspects of its financial condition that could have a material adverse effect on the performance by it of its trustee obligations under this Agreement or any other Securitization Transaction; (iv) there
are no material legal or governmental proceedings pending (or known to be contemplated) against it; and (v) there are no affiliations, relationships or transactions relating to the Trustee with respect to the Depositor or any sponsor, issuing
entity, servicer, trustee, originator, significant obligor, enhancement or support provider or other material transaction party (as such terms are used in Regulation AB) relating to the Securitization Transaction contemplated by the Agreement (each,
a “Transaction Party”). 
  
 (b) If so requested by the
Depositor on any date following the date on which information is first provided to the Depositor under Section 12.03, the Trustee shall, within five Business Days following such request, confirm in writing the accuracy of the representations
and 
  

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 warranties set forth in paragraph (a) of this Section or, if any such representation and warranty is not accurate as
of the date of such request or such confirmation, provide reasonably adequate disclosure of the pertinent facts, in writing, to the requesting party. 
  
 Section 12.03 Information to Be Provided by the Trustee. 
  
 (a) If so requested by the Depositor for the purpose of satisfying its reporting obligation under the Exchange Act with
respect to any class of Securities, the Trustee shall (i) notify the Depositor in writing of (A) any material litigation or governmental proceedings pending against the Trustee and (B) any affiliations or relationships that develop
following the Closing Date between the Trustee and any Transaction Party, and (ii) provide to the Depositor a written description of such proceedings, affiliations or relationships. 
  
 (b) In addition to such information as the Trustee is obligated to provide pursuant to other provisions of this Agreement,
if so requested by the Depositor, the Trustee shall provide such information reasonably available to the Trustee regarding the performance or servicing of the Mortgage Loans as is reasonably required to facilitate preparation of distribution reports
in accordance with Item 1121 of Regulation AB. 
  
 Section 12.04 Report on Assessment of Compliance and Attestation. 
  
 On or before March 15 of each calendar year, the Trustee shall: 
  
 (a) deliver to the Depositor a report (in form and substance reasonably satisfactory to the Depositor) regarding the Trustee’s assessment of
compliance with the Servicing Criteria during the immediately preceding calendar year, as required under Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122 of Regulation AB. Such report shall be addressed to the Depositor and signed by
an authorized officer of the Trustee, and shall address each of the Servicing Criteria specified on a certification substantially in the form of Exhibit V hereto; and 
  
 (b) deliver to the Depositor a report of a registered public accounting firm reasonably acceptable to the Depositor that
attests to, and reports on, the assessment of compliance made by the Trustee and delivered pursuant to the preceding paragraph. Such attestation shall be in accordance with Rules 1-02(a)(3) and 2-02(g) of Regulation S-X under the Securities Act and
the Exchange Act. 
  

 143 

 Section 12.05 Indemnification; Remedies. 
  
 (a) The Trustee shall indemnify the Depositor, each affiliate of the
Depositor, the Master Servicer and each broker dealer acting as underwriter, placement agent or initial purchaser of the Securities or each Person who controls any of such parties (within the meaning of Section 15 of the Securities Act and
Section 20 of the Exchange Act); and the respective present and former directors, officers, employees and agents of each of the foregoing, and shall hold each of them harmless from and against any losses, damages, penalties, fines, forfeitures,
legal fees and expenses and related costs, judgments, and any other costs, fees and expenses that any of them may sustain arising out of or based upon: 
  
 (i) (A) any untrue statement of a material fact contained or alleged to be contained in any information, report, certification,
accountants’ letter or other material provided under this Article XII by or on behalf of the Trustee (collectively, the “Trustee Information”), or (B) the omission or alleged omission to state in the Trustee Information a
material fact required to be stated in the Trustee Information or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided, by way of clarification, that clause
(B) of this paragraph shall be construed solely by reference to the Trustee Information and not to any other information communicated in connection with a sale or purchase of securities, without regard to whether the Trustee Information or any
portion thereof is presented together with or separately from such other information; 
  
 (ii) any failure by the Trustee to deliver any information, report, certification, accountants’ letter or other material when and as
required under this Article XII; or 
  
 (iii) any breach by the Trustee of a representation or warranty set forth in Section 12.02(a) or in a writing furnished pursuant to Section 12.02(b). 
  
 (b) In the case of any failure of performance described in clause (ii) of this Section, the Trustee shall promptly
reimburse the Depositor for all costs reasonably incurred by each such party in order to obtain the information, report, certification, accountants’ letter or other material not delivered as required by the Trustee. 
  

 144 

 IN WITNESS WHEREOF, the Depositor, the Master Servicer and the Trustee have caused their names to be
signed hereto by their respective officers thereunto duly authorized as of the day and year first above written. 
  

			
	SG MORTGAGE SECURITIES, LLC
		
	By:	 	  

	Name:	 	 
	Title:	 	 
	
	[WELLS FARGO]
		
	By:	 	  

	Name:	 	 
	Title:	 	 
	
	 [TRUSTEE]
 as Trustee

		
	By:	 	  

	Name:	 	 
	Title:	 	 

					
	STATE OF                     	  	)	  	 
	 	  	)	  	    ss.:
	COUNTY OF                     	  	)	  	 

  
 On the
             day of                     , 20    
before me, a notary public in and for said State, personally appeared                     , known to me to be a Vice President of SG Mortgage
Securities, LLC, one of the entities that executed the within instrument, and also known to me to be the person who executed it on behalf of said company, and acknowledged to me that such company executed the within instrument. 
  
 IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal
the day and year in this certificate first above written. 
  

	
	Notary Public
	
	  

  
 [Notarial Seal] 

					
	STATE OF                     	  	)	  	 
	 	  	)	  	    ss.:
	COUNTY OF                     	  	)	  	 

  
 On the
             day of                     , 20    
before me, a notary public in and for said State, personally appeared                     , known to me to be an Associate of [Wells Fargo],
one of the entities 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 and affixed my official seal
the day and year in this certificate first above written. 
  

	
	Notary Public
	
	  

  
 [Notarial Seal] 

					
	STATE OF                     	  	)	  	 
	 	  	)	  	    ss.:
	COUNTY OF                     	  	)	  	 

  
 On the
             day of                     , 20    
before me, a notary public in and for said State, personally appeared                     , known to me to be a Vice President of [TRUSTEE], a
[national banking association] organized under the laws of the United States that executed the within instrument, and also known to me to be the person who executed it on behalf of said banking corporation and acknowledged to me that such banking
corporation executed the within instrument. 
  
 IN WITNESS
WHEREOF, I have hereunto set my hand and affixed my official seal the day and year in this certificate first above written. 
  

	
	Notary Public
	
	  

  
 [Notarial Seal]

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