Document:

Form of Sale and Servicing Agreement

 Exhibit 4.5 
  
 SALE AND SERVICING AGREEMENT 
  
 dated as of                 , 20    

  
 by and among 
  
 ACCREDITED MORTGAGE LOAN REIT TRUST, 
 as Seller, 
  
 ACCREDITED HOME LENDERS, INC., 
 as Sponsor and Servicer, 
  
 ACCREDITED MORTGAGE LOAN TRUST 200  -  ,

 as Issuer, 
  
 and 
  
                                       
                              , 
 as Indenture Trustee 

 TABLE OF CONTENTS 
  

					
	 	 	 	  	Page

	 ARTICLE I
 DEFINITIONS

			
	Section 1.01.	 	Certain Defined Terms	  	1
	Section 1.02.	 	Provisions of General Application	  	2
	
	 ARTICLE II
 SALE AND CONVEYANCE OF THE MORTGAGE LOANS

			
	Section 2.01.	 	Purchase and Sale of Mortgage Loans; Deposit of Derivatives	  	2
	Section 2.02.	 	Reserved	  	3
	Section 2.03.	 	Purchase Price	  	3
	Section 2.04.	 	Possession of Mortgage Files; Access to Mortgage Files	  	3
	Section 2.05.	 	Delivery of Mortgage Loan Documents	  	3
	Section 2.06.	 	Acceptance of the Trust Estate; Certain Substitutions; Certification by the Indenture Trustee	  	6
	Section 2.07.	 	Grant of Security Interest	  	8
	Section 2.08.	 	Further Action Evidencing Assignments	  	9
	Section 2.09.	 	Assignment of Agreement	  	9
	
	 ARTICLE III
 REPRESENTATIONS, WARRANTIES AND COVENANTS

			
	Section 3.01.	 	Representations, Warranties and Covenants of the Servicer	  	10
	Section 3.02.	 	Representations, Warranties and Covenants of the Sponsor	  	11
	Section 3.03.	 	[Reserved	  	13
	Section 3.04.	 	Representations, Warranties and Covenants of the Indenture Trustee	  	13
	Section 3.05.	 	Covenants and Representations of the Sponsor and Servicer Regarding Prepayment Charges	  	14
	Section 3.06.	 	Representations, Warranties and Covenants of the Seller	  	14
	
	 ARTICLE IV
 THE MORTGAGE LOANS

			
	Section 4.01.	 	Representations and Warranties Concerning the Mortgage Loans	  	16
	Section 4.02.	 	Purchase and Substitution	  	25
	
	 ARTICLE V
 ADMINISTRATION AND SERVICING OF THE MORTGAGE LOANS

			
	Section 5.01.	 	The Servicer	  	26
	Section 5.02.	 	Collection of Certain Mortgage Loan Payments; Collection Account	  	29
	Section 5.03.	 	Permitted Withdrawals from the Collection Account	  	30
	Section 5.04.	 	Hazard Insurance Policies; Property Protection Expenses	  	31

  

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	Section 5.05.	 	Assumption and Modification Agreements	  	32
	Section 5.06.	 	Realization Upon Defaulted Mortgage Loans	  	33
	Section 5.07.	 	Indenture Trustee to Cooperate	  	34
	Section 5.08.	 	Servicing Compensation; Payment of Certain Expenses by Servicer	  	35
	Section 5.09.	 	Annual Statement as to Compliance	  	36
	Section 5.10.	 	Annual Independent Public Accountants’ Servicing Report	  	36
	Section 5.11.	 	Access to Certain Documentation	  	36
	Section 5.12.	 	Maintenance of Fidelity Bond	  	36
	Section 5.13.	 	Subservicing Agreements Between the Servicer and Subservicer and Subservicers	  	36
	Section 5.14.	 	Reports to the Indenture Trustee; Collection Account Statements	  	38
	Section 5.15.	 	Optional Purchase of Defaulted Mortgage Loans	  	38
	Section 5.16.	 	Reports to be Provided by the Servicer	  	38
	Section 5.17.	 	[Reserved	  	40
	Section 5.18.	 	Delinquency Advances	  	40
	Section 5.19.	 	Indemnification; Third Party Claims	  	40
	Section 5.20.	 	Maintenance of Corporate Existence and Licenses; Merger or Consolidation of the Servicer	  	41
	Section 5.21.	 	Assignment of Agreement by Servicer; Servicer Not to Resign	  	41
	Section 5.22.	 	Periodic Filings with the Securities and Exchange Commission Additional Information	  	41
	Section 5.23.	 	Administrative Duties	  	43
	Section 5.24.	 	Advance Facility	  	43
	
	 ARTICLE VI
 APPLICATION OF FUNDS

			
	Section 6.01.	 	Deposits to the Payment Account	  	46
	Section 6.02.	 	Collection of Money	  	46
	Section 6.03.	 	Application of Principal and Interest	  	46
	Section 6.04.	 	[Reserved	  	46
	Section 6.05.	 	Compensating Interest	  	46
	Section 6.06.	 	[Reserved	  	47
	
	 ARTICLE VII
 SERVICER DEFAULT

			
	Section 7.01.	 	Servicer Events of Default	  	47
	Section 7.02.	 	Indenture Trustee to Act: Appointment of Successor	  	49
	Section 7.03.	 	Waiver of Defaults	  	52
	
	 ARTICLE VIII
 TERMINATION

			
	Section 8.01.	 	Termination	  	52
	Section 8.02.	 	Additional Termination Requirements	  	53
	Section 8.03.	 	Accounting Upon Termination of Servicer	  	53

  

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	Section 8.04.	 	[Reserved	  	54
	
	 ARTICLE IX
 [RESERVED]

	
	 ARTICLE X
 MISCELLANEOUS PROVISIONS

			
	Section 10.01.	 	Limitation on Liability	  	54
	Section 10.02.	 	Acts of Noteholders	  	55
	Section 10.03.	 	Amendment	  	55
	Section 10.04.	 	Recordation of Agreement	  	56
	Section 10.05.	 	Duration of Agreement	  	56
	Section 10.06.	 	Notices	  	56
	Section 10.07.	 	Severability of Provisions	  	57
	Section 10.08.	 	No Partnership	  	57
	Section 10.09.	 	Counterparts	  	57
	Section 10.10.	 	Successors and Assigns	  	57
	Section 10.11.	 	Headings	  	57
	Section 10.12.	 	No Petition	  	57
	Section 10.13.	 	Third Party Beneficiary	  	57
	Section 10.14.	 	Intent of the Parties	  	57
	Section 10.15.	 	GOVERNING LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL	  	58
		
	Schedule I	 	Mortgage Loan Schedule
	Appendix I	 	Defined Terms
	
	EXHIBITS
		
	Exhibit A	 	Contents of the Mortgage File
	Exhibit B	 	Reserved
	Exhibit C	 	Indenture Trustee’s Acknowledgement of Receipt
	Exhibit D	 	Initial Certification of Indenture Trustee
	Exhibit E	 	Final Certification of Indenture Trustee
	Exhibit F	 	Request for Release of Documents
	Exhibit G	 	AHL Officer’s Certificate

  
  

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 SALE AND SERVICING AGREEMENT, dated as of
            , 20     (this “Agreement”), by and among ACCREDITED MORTGAGE LOAN REIT TRUST, a Maryland real estate investment trust, as
seller (the “Seller”), ACCREDITED HOME LENDERS, INC., a California corporation, as sponsor (the “Sponsor”), ACCREDITED MORTGAGE LOAN TRUST 200  -  , a Delaware statutory trust, as
issuer (the “Trust”), ACCREDITED HOME LENDERS, INC., a California corporation, as servicer (the “Servicer”), and
                                        
        , a national banking association, as indenture trustee (the “Indenture Trustee”). 
  
 W I T N E S S E T H 
  
 WHEREAS, the Sponsor has contributed the mortgage loans (the “Mortgage Loans”) listed on Schedule I to this Agreement to the Seller,
pursuant to the Contribution Agreement and Assignment, dated             , 20    , between the Sponsor and the Seller, (the “Contribution
Agreement”); 
  
 WHEREAS, the Seller desires to sell to
the Trust, and the Trust desires to purchase from the Seller, the Mortgage Loans; 
  
 WHEREAS, immediately after such purchase, the Trust will pledge such Mortgage Loans to the Indenture Trustee pursuant to the terms of an Indenture, dated as of
            , 20     (the “Indenture”), between the Trust and the Indenture Trustee, and issue the Accredited Mortgage Loan Trust
200  -  , Asset-Backed Notes (the “Notes”); 
  
 WHEREAS, the Servicer has agreed to service the Mortgage Loans, which constitute the principal assets of the Trust; 
  
 WHEREAS, the Indenture Trustee will hold the Mortgage Loans and certain other assets pledged to the Indenture Trustee pursuant to the Indenture;

  
 WHEREAS, the Trust will enter into an interest rate swap
agreement with the Swap Provider where the Trust agrees to pay certain fixed-rate amounts to the Swap Provider and the Swap Provider agrees to pay certain floating-rate amounts to the Trust; and 
  
 NOW, THEREFORE, in consideration of the premises and the mutual agreements
herein contained, the Seller, the Sponsor, the Trust, the Servicer and the Indenture Trustee hereby agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 Section 1.01. Certain Defined Terms. Capitalized terms used herein but not defined herein shall have the meanings ascribed to such terms in Appendix I attached hereto. 
  

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 Section 1.02. Provisions of General Application. 
  
 (a) The terms defined herein and in Appendix I to the Indenture include the
plural as well as the singular. 
  
 (b) The words
“herein,” “hereof” and “hereunder” and other words of similar import refer to this Agreement as a whole. Unless otherwise noted, all references to Articles and Sections shall be deemed to refer to Articles and Sections
of this Agreement. 
  
 (c) Any reference to statutes are to be
construed as including all statutory provisions consolidating, amending or replacing the statute to which reference is made and all regulations promulgated pursuant to such statutes. 
  
 (d) All calculations of interest with respect to the LIBOR Notes provided for herein shall be on the basis of a 360-day year
and the actual number of days elapsed in the related Interest Accrual Period. All calculations of interest with respect to any Mortgage Loan provided for herein shall be made in accordance with the terms of the related Mortgage Note and Mortgage or,
if such documents do not specify the basis upon which interest accrues thereon, on the basis of a 360 day year consisting of twelve 30-day months, to the extent permitted by applicable law. 
  
 (e) Any Mortgage Loan payment is deemed to be received on the date such
payment is actually received by the Servicer; provided, however, that, for purposes of calculating payments on the Notes, prepayments with respect to any Mortgage Loan are deemed to be received on the date they are applied in
accordance with Accepted Servicing Practices consistent with the terms of the related Mortgage Note and Mortgage to reduce the outstanding Principal Balance of such Mortgage Loan on which interest accrues. 
  
 ARTICLE II 
  
 SALE AND CONVEYANCE OF THE MORTGAGE LOANS 
  
 Section 2.01. Purchase and Sale of Mortgage Loans; Deposit of
Derivatives. 
  
 (a) The Sponsor hereby directs the Seller to
sell, transfer, assign, set over and convey, and the Seller does hereby sell, transfer, assign, set over and convey to the Trust, in each case without recourse, but subject to the terms and provisions of this Agreement, all of the right, title and
interest of the Seller in and to the Mortgage Loans, including the Cut-Off Date Principal Balance of, and interest due on, such Mortgage Loans listed on Schedule I attached hereto, and all other assets included or to be included in the Trust Estate.

  
 (b) The Seller may cause the deposit of derivatives at any
time into the Accredited Mortgage Loan Trust 200  -   and any such deposited derivatives shall become part of the Trust Estate. 
  
 (c) The parties hereto understand and agree that it is not intended that any Mortgage Loan be included in the Trust that is
a “High-Cost Home Loan” as defined by HOEPA or any other applicable predatory or abusive lending laws. 
  

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 Section 2.02. Reserved. 
  
 Section 2.03. Purchase Price. On the Closing Date, as full consideration for the Seller’s sale of the Mortgage
Loans to the Trust, the Underwriters, on behalf of the Trust, will deliver to, or at the direction of, the Seller an amount in cash equal to $            . Additionally, the Seller
will receive the Certificates issued by the Trust pursuant to the Trust Agreement. 
  
 Section 2.04. Possession of Mortgage Files; Access to Mortgage Files. 
  
 (a) Upon the receipt by the Seller, or its designee, of the purchase price for the Mortgage Loans set forth in Section 2.03 hereof, the ownership of each
Mortgage Note, each Mortgage and the contents of the Mortgage File related to each Mortgage Loan will be vested in the Trust, and will be pledged to the Indenture Trustee, for the benefit of the Noteholders. 
  
 (b) Pursuant to Section 2.05 hereof, the Seller has delivered, or caused to
be delivered the Indenture Trustee’s Mortgage File related to each Mortgage Loan to the Indenture Trustee. 
  
 (c) The Indenture Trustee will hold the Indenture Trustee’s Mortgage Files in trust pursuant to the terms of the Indenture for the benefit of all
present and future Noteholders. 
  
 (d) Consistent with the terms
of the Indenture, the Indenture Trustee shall afford the Seller, the Sponsor, the Trust and the Servicer reasonable access to all records and documentation regarding the Mortgage Loans relating to this Agreement, such access being afforded at
customary charges, upon reasonable prior written request and during normal business hours at the offices of the Indenture Trustee. 
  
 (e) No later than the fifth Business Day of each fourth month, commencing in
                , the Indenture Trustee shall deliver to the Servicer a report dated as of the first day of such month, identifying those Mortgage Loans for which
it has not yet received (i) an original recorded Mortgage or a copy thereof certified to be true and correct by the public recording office in possession of such Mortgage or (ii) in the event that Assignments of Mortgage are required to be recorded
in accordance with the provisions of Section 2.05, an original recorded Assignment of Mortgage to the Indenture Trustee and any required intervening Assignments of Mortgage or a copy thereof certified to be a true and correct copy by the public
recording office in possession of such Assignment of Mortgage. 
  
 Section 2.05. Delivery of Mortgage Loan Documents. (a) In connection with the transfer and assignment of the Mortgage Loans, the Seller shall, on or before the Closing Date, deliver, or cause to be delivered, to the Indenture Trustee
(as pledgee of the Trust pursuant to the Indenture), the following documents or instruments constituting the Indenture Trustee’s Mortgage File with respect to each Mortgage Loan so transferred or assigned: 
  
 (i) the original Mortgage Note, endorsed without recourse in
blank or to
“                                       
     , as Indenture Trustee under the Indenture dated as of                 , 20    , Accredited Mortgage
Loan Trust 200  -  ” by the Sponsor, including all intervening endorsements showing a complete chain of endorsement; 
  

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 (ii) the related original Mortgage with evidence of recording indicated thereon or a copy
thereof certified by the applicable recording office and if the Mortgage Loan is registered on the MERS System, such Mortgage or an assignment of the mortgage shall reflect MERS as the mortgagee of record and shall include the MIN for such Mortgage
Loan; 
  
 (iii) each intervening mortgage
assignment, with evidence of recording indicated thereon or if the original is not available, a copy thereof certified by the applicable recording office, if any, showing a complete chain of assignment from the originator of the related Mortgage
Loan to the Sponsor (or to MERS, if the Mortgage Loan is registered on the MERS System), and noting the presence of a MIN (if the Mortgage Loan is registered on the MERS System), which assignment may, at the Sponsor’s option, be combined with
the assignment referred to in subpart (iv) hereof, in which case it must be in recordable form, but need not have been previously recorded); 
  
 (iv) unless the Mortgage Loan is registered on the MERS System, a mortgage assignment in recordable form (which, if acceptable for
recording in the relevant jurisdiction as evidenced by an Opinion of Counsel addressed to the Indenture Trustee, may be included in a blanket assignment or assignments) of each Mortgage from the Sponsor to the Indenture Trustee; 
  
 (v) originals of all assumption, modification and
substitution agreements in those instances where the terms or provisions of a Mortgage or Mortgage Note have been modified or such Mortgage or Mortgage Note has been assumed (if any); and 
  
 (vi) an original title insurance policy or title opinion (or
(A) a copy of the title insurance policy or title opinion, or (B) the related binder, commitment or preliminary report, or copy thereof in which case the Sponsor hereby certifies that the original Mortgage has been delivered to the title insurance
company that issued such binder, commitment or preliminary report). 
  
 In instances where the original recorded Mortgage or any intervening mortgage assignment or a completed assignment of the Mortgage in recordable form cannot be delivered by the Sponsor to the Indenture Trustee prior to or concurrently with
the execution and delivery of this Agreement due to a delay in connection with recording, the Sponsor may: 
  
 (x) in lieu of delivering such original recorded Mortgage or intervening mortgage assignment, deliver to the Indenture Trustee, a copy
thereof and the Sponsor hereby certifies that the original Mortgage has been delivered to a title insurance company for recordation after receipt of its policy of title insurance or the related binder, commitment or preliminary report therefor; and

  
 (y) with respect to clause (iv) above, in
lieu of delivering the completed assignment in recordable form, deliver to the Indenture Trustee, the assignment in recordable form, otherwise complete except for recording information. 
  

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 The Indenture Trustee is hereby authorized and directed, upon an Event of Default and subject to subsection (b) below,
with respect to each assignment described in Section 2.05(a)(iv) hereof, to endorse such assignment as follows:
“                                       
                     , as Indenture Trustee under the Indenture dated as of
            , 20    , Accredited Mortgage Loan Trust 200  -  .” 
  
 (b) As promptly as practicable, but in any event within thirty (30) days from
the Closing Date, the Sponsor shall promptly submit, or cause to be submitted for recording in the appropriate public office for real property records, each assignment referred to in Section 2.05(a)(iv); provided, that the Sponsor need not cause to
be recorded any assignment which (i) is registered on the MERS System, or (ii) relates to a Mortgage Loan in any jurisdiction under the laws of which, as evidenced by an Opinion of Counsel delivered by the Sponsor (at the Sponsor’s expense) to
the Indenture Trustee, acceptable to the Rating Agencies, the recordation of such assignment is not necessary to protect the Indenture Trustee’s, the Noteholders’ and the Certificates’ interest in the related Mortgage Loan. The
Indenture Trustee, shall retain a copy of each assignment submitted for recording. In the event that any such assignment is lost or returned unrecorded because of a defect therein, the Sponsor shall promptly prepare a substitute assignment or cure
such defect, as the case may be, and thereafter the Sponsor shall submit each such assignment for recording. The costs relating to the delivery and recordation of the documents in connection with the Mortgage Loans as specified in this Article II
shall be borne by the Sponsor. With respect to Mortgage Loans (i) not registered on the MERS System, or (ii) not covered by an Opinion of Counsel described in this section 2.05(b) to the extent that assignments of mortgage have not been recorded
within one year after the Closing Date, the Seller shall, and if the Seller fails to, then the Sponsor shall be obligated to repurchase such Mortgage Loans in accordance with the provisions of Section 4.02. 
  
 In connection with the assignment of any Mortgage Loan registered on the MERS
System, promptly after the Closing Date, the Sponsor will cause, at its own expense, the MERS System to indicate that such Mortgage Loan has been assigned to the Indenture Trustee for the benefit of the Noteholders by entering (a) the Indenture
Trustee’s Org ID in the “Investor” field which identifies the Indenture Trustee and (b) in the “Pool” field a code which identifies the securitization serial number of the Notes issued in connection with such Mortgage Loans.
The Sponsor and the Servicer will not alter the entries referenced in this paragraph with respect to any such Mortgage Loan during the term of this Agreement unless and until such Mortgage Loan is repurchased or otherwise in accordance with the
terms of this Agreement. 
  
 (c) The Sponsor shall, within five
(5) Business Days after the receipt thereof, deliver, or cause to be delivered, to the Indenture Trustee: (i) the original recorded Mortgage and related power of attorney, if any, in those instances where a copy thereof certified by the Sponsor was
delivered to the Indenture Trustee; (ii) the original recorded assignment of Mortgage from the last endorsee to the Indenture Trustee, which, together with any intervening assignments of Mortgage, evidences a complete chain of assignment from the
originator of the Mortgage Loan to the Indenture Trustee, in those instances where copies of such assignments certified by the Sponsor were delivered to the Indenture Trustee; and (iii) the title insurance policy or title opinion required in Section
2.05(a)(vi). 
  

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 Notwithstanding anything to the contrary contained in this Section 2.05, in those instances where the
public recording office retains the original Mortgage, power of attorney, if any, assignment or assignment of Mortgage after it has been recorded or such original has been lost, the Sponsor shall be deemed to have satisfied its obligations hereunder
upon delivery to the Indenture Trustee, of a copy of such Mortgage, power of attorney, if any, assignment or assignment of Mortgage certified by the public recording office to be a true copy of the recorded original thereof. 
  
 From time to time the Sponsor may forward, or cause to be forwarded, to the
Indenture Trustee, additional original documents evidencing any assumption or modification of a Mortgage Loan. 
  
 (d) All original documents relating to the Mortgage Loans that are not required to be delivered to the Indenture Trustee, pursuant to Section 2.05(a)
hereof are, and shall be, held by the Servicer, the Sponsor or the Seller, as the case may be, in trust for the benefit of the Indenture Trustee, on behalf of the Noteholders. In the event that any such original document is required pursuant to the
terms of this Section 2.05 to be a part of an Indenture Trustee’s Mortgage File, such document shall be delivered promptly to the Indenture Trustee. From and after the sale of the Mortgage Loans to the Trust pursuant hereto, to the extent that
the last assignee thereof retains title of record to any Mortgage Loans prior to the vesting of legal title in the Trust, such title shall be retained in trust for the Trust as the owner of the Mortgage Loans, and the Indenture Trustee, as the
pledgee of the Trust under the Indenture. In acting as custodian of any original document which is part of the Indenture Trustee’s Mortgage Files, the Servicer agrees further that it does not and will not have or assert any beneficial ownership
interest in the related Mortgage Loans or the Mortgage Files. Promptly upon the Servicer’s receipt of any such original document, the Servicer, on behalf of the Trust, shall mark conspicuously each such original document, and its master data
processing records with a legend evidencing that the Trust has purchased the related Mortgage Loan and all right and title thereto and interest therein, and pledged such Mortgage Loan and all right and title thereto and interest therein to the
Indenture Trustee, on behalf of the Noteholders. 
  
 Section 2.06.
Acceptance of the Trust Estate; Certain Substitutions; Certification by the Indenture Trustee. (a) The Indenture Trustee is authorized and directed to, and agrees to, do the following: 
  
 (i) execute and deliver to the Seller, the Sponsor and the Servicer, on or prior to the Closing Date with
respect to each Mortgage Loan transferred on such date, an acknowledgement of receipt, in the form attached as Exhibit C hereto, of the original Mortgage Note as required to be included in the Indenture Trustee’s Mortgage File (with any
exceptions noted) and declares that it will hold such documents and any amendments, replacements or supplements thereto, as well as any other assets included in the definition of Trust Estate and delivered to the Indenture Trustee, subject to the
conditions set forth in the Indenture, for the benefit of the Noteholders. 
  
 (ii) to review (or cause to be reviewed) each Indenture Trustee’s Mortgage File within sixty (60) days after the Closing Date (or, with respect to any Qualified Substitute Mortgage Loans, within sixty (60) days
after receipt thereof), and to 

  

 6 

 
deliver to the Servicer, the Seller and the Sponsor a certification, in the form attached hereto as Exhibit D, to the effect that, except as otherwise
noted, as to each Mortgage Loan listed in the related Mortgage Loan Schedule (other than any Mortgage Loan paid in full or any Mortgage Loan specifically identified in such certification as not covered by such certification), (i) all documents
specified in Section 2.05(a)(i)-(iv) and (vi) are in its possession, (ii) each such document has been reviewed by it and appears, on its face, not to have been mutilated, damaged, torn or otherwise physically altered (handwritten additions, changes
or corrections shall not constitute physical alteration if they reasonably appear to have been initialed), appears regular on its face and relates to such Mortgage Loan, and (iii) based on its examination and only as to the foregoing documents, the
information set forth on the Mortgage Loan Schedule with respect to items (i), (ii) (with respect to property address only, excluding zip code), (iii) and (vi) of the definition of “Mortgage Loan Schedule” accurately reflects the
information set forth in the Indenture Trustee’s Mortgage File delivered on such date; provided however, no certification of the Indenture Trustee shall constitute a determination by the Indenture Trustee of the proper form,
adequacy or enforceability of any document included in the Indenture Trustee’s Mortgage File. 
  
 (iii) to review (or cause to be reviewed) each Indenture Trustee’s Mortgage File within one hundred eighty (180) days after the
Closing Date (or, with respect to any Qualified Substitute Mortgage Loans, within one hundred eighty (180) days after receipt thereof), and to deliver to the Servicer and the Sponsor a certification in the form attached hereto as Exhibit E to
the effect that, except as otherwise noted, as to each Mortgage Loan listed in the related Mortgage Loan Schedule (other than any Mortgage Loan paid in full or any Mortgage Loan specifically identified in such certification as not covered by such
certification), (i) all documents specified in Section 2.05(a)(i)-(iv) and (vi) are in its possession, (ii) each such document has been reviewed by it and has not been mutilated, damaged, torn or otherwise physically altered (handwritten additions,
changes or corrections shall not constitute physical alteration if they reasonably appear to be initialed by the Mortgagor), appears regular on its face and relates to such Mortgage Loan, and (iii) based on its examination and only as to the
foregoing documents, the information set forth in items (i), (ii) (with respect to property address only, excluding zip code), (iii) and (vi) of the definition of “Mortgage Loan Schedule” accurately reflects the information set forth in
the Indenture Trustee’s Mortgage File delivered on such date. 
  
 In performing any such review, the Indenture Trustee may conclusively rely on the Sponsor as to the purported genuineness of any such document and any signature thereon. It is understood that the scope of the Indenture Trustee’s review
of the Indenture Trustee’s Mortgage Files is limited solely to confirming that the documents listed in Section 2.05 have been executed and received and relate to the Indenture Trustee’s Mortgage Files identified in the related Mortgage
Loan Schedule. The Indenture Trustee shall be under no duty or obligation to inspect, review or examine any such documents, instruments, certificates or other papers to determine that they are genuine, enforceable, or appropriate for the represented
purpose or that they are other than what they purport to be on their face. 
  

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 (b) If the Indenture Trustee during the process of reviewing the Indenture Trustee’s Mortgage Files
finds any document constituting a part of a Indenture Trustee’s Mortgage File which is not executed, has not been received, is unrelated to the Mortgage Loan identified in the related Mortgage Loan Schedule, or does not conform to the
requirements of Section 2.05 or the description thereof as set forth in the related Mortgage Loan Schedule, the Indenture Trustee shall promptly so notify the Servicer and the Sponsor. Upon receipt of such notice respecting such defect, the Seller
and the Sponsor shall have a sixty (60) day period after such notice within which to correct or cure any such defect, or if the Servicer determines that the defect materially and adversely affects the value of the related Mortgage Loan or the
interest of the Noteholders in the related Mortgage Loan, to either (i) substitute in lieu of such Mortgage Loan a Qualified Substitute Mortgage Loan in the manner and subject to the conditions set forth in this Section 2.06 or (ii) purchase such
Mortgage Loan at a purchase price equal to the Loan Repurchase Price. Upon receipt by the Indenture Trustee of two copies of a certification, in the form attached hereto as Exhibit F, of a Servicing Officer of such substitution or purchase
and, in the case of a substitution, upon receipt by the Indenture Trustee, of the related Indenture Trustee’s Mortgage File, and the deposit of the Loan Repurchase Price, in the case of a purchase, or the Substitution Adjustment, if any, in
connection with a substitution, in the Collection Account, the Indenture Trustee shall release to the Servicer for release to the Seller or the Sponsor, as applicable, the related Indenture Trustee’s Mortgage File and the Indenture Trustee
shall execute, without recourse, and deliver such instruments of transfer furnished by the Seller or the Sponsor as may be necessary to transfer such Mortgage Loan to the Seller or the Sponsor, as applicable. 
  
 Section 2.07. Grant of Security Interest. (a) It is intended that the
conveyance of the Mortgage Loans and other property by the Seller to the Trust as provided in this Article II be, and be construed for all purposes other than tax and accounting purposes as, a sale of the Mortgage Loans and such other property by
the Seller to the Trust. It is, for all purposes other than tax and accounting purposes further, not intended that such conveyance be deemed a pledge of the Mortgage Loans or such other property by the Seller to the Trust to secure a debt or other
obligation of the Seller. However, in the event that the Mortgage Loans or any of such other property are held to be property of the Seller, or if for any reason this Agreement is held or deemed to create a security interest in the Mortgage Loans or
any of such other property, then it is intended that: (i) this Agreement shall also be deemed to be a security agreement within the meaning of the Uniform Commercial Code; (ii) the conveyance provided for in this Article II shall be deemed to be a
grant by the Seller to the Trust of a security interest in all of the Seller’s right, title and interest in and to the Mortgage Loans and such other property and all amounts payable to the holders of the Mortgage Loans in accordance with the
terms thereof and 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 Accounts whether
in the form of cash, instruments, securities or other property; (iii) the possession by the Indenture Trustee, of the Mortgage Notes and such other items of property as constitute instruments, money, negotiable documents or chattel paper shall be
deemed to be “possession by the secured party” for purposes of perfecting the security interest pursuant to the Uniform Commercial Code; and (iv) 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 financial intermediaries, bailees or agents, as applicable, of the Indenture Trustee for the purpose of 

  

 8 

 
perfecting such security interest under applicable law. The Seller, the Sponsor, the Servicer, on behalf of the Trust and the Indenture Trustee, shall, to
the extent consistent with this Agreement, take such actions as may be reasonably necessary to ensure that, if this Agreement were deemed to create a security interest in the Mortgage Loans or any of such other property, 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. 
  
 (b) The Seller, the Sponsor and the Servicer shall take no action inconsistent with the Trust’s ownership of the Trust Estate and each shall indicate
or shall cause to be indicated in its records and records held on its behalf that ownership of each Mortgage Loan and the other assets in the Trust Estate is vested in the Trust, as owner, and is pledged to the Indenture Trustee, for the benefit of
the Noteholders pursuant to the terms of the Indenture. The Indenture Trustee is authorized to act, pursuant to the terms of this Agreement for the benefit of the Noteholders and shall be authorized to act at the direction of such parties. In
addition, the Seller, the Sponsor and the Servicer shall respond to any inquiries from third parties with respect to ownership of a Mortgage Loan or any other asset in the Trust Estate by stating that it is not the owner of such asset and that the
Trust is the owner of such Mortgage Loan or other asset in the Trust Estate, which is pledged to the Indenture Trustee, for the benefit of the Noteholders. 
  
 Section 2.08. Further Action Evidencing Assignments. (a) The Servicer agrees that, from time to time, at its expense, it shall cause the Sponsor or
Seller, as the case may be, to, and each of the Sponsor and Seller agree that it shall, promptly execute and deliver all further instruments and documents, and take all further action, that may be necessary or appropriate, or that the Servicer or
the Indenture Trustee may reasonably request, in order to perfect, protect or more fully evidence the transfer of ownership of the Mortgage Loans and other assets in the Trust Estate or to enable the Indenture Trustee, to exercise or enforce any of
its rights hereunder. Without limiting the generality of the foregoing, the Servicer, the Sponsor and the Seller shall, upon the request of the Servicer or the Indenture Trustee execute and file (or cause to be executed and filed) such real estate
filings, financing or continuation statements, or amendments thereto or assignments thereof, and such other instruments or notices, as may be necessary or appropriate. 
  
 (b) Each of the Sponsor and the Seller hereby grants to the Servicer and the Indenture Trustee powers of attorney to execute
all documents on its behalf under this Agreement as may be necessary or desirable to effectuate the foregoing. 
  
 Section 2.09. Assignment of Agreement. The Sponsor, the Seller and the Servicer hereby acknowledge and agree that the Trust may assign its interest
under this Agreement to the Indenture Trustee, for the benefit of the Noteholders, as may be required to effect the purposes of the Indenture, without further notice to, or consent of, the Sponsor or the Servicer, and the Indenture Trustee shall
succeed to such of the rights of the Trust hereunder as shall be so assigned. The Trust shall, pursuant to the Indenture, assign all of its right, title and interest in and to the Mortgage Loans and its right to exercise the remedies created by
Section 4.02 of this Agreement for breaches of the representations, warranties, agreements and covenants of the Sponsor contained in Sections 3.02 and 4.01 of this Agreement, assign such right, title and interest to the Indenture Trustee, for the
benefit of the Noteholders. The Sponsor agrees that, upon such assignment to the Indenture Trustee, such representations, warranties, agreements and 

  

 9 

 
covenants will run to and be for the benefit of the Indenture Trustee and the Indenture Trustee may enforce, without joinder of the Sponsor or the Trust, the
repurchase obligations of the Sponsor set forth herein with respect to breaches of such representations, warranties, agreements and covenants. 
  
 ARTICLE III 
  
 REPRESENTATIONS, WARRANTIES AND COVENANTS 
  
 Section 3.01. Representations, Warranties and Covenants of the Servicer. The Servicer hereby represents, warrants and covenants to the Indenture
Trustee, the Seller, the Sponsor, the Trust and the Noteholders as of the Closing Date and during the term of this Agreement that: 
  
 (a) The Servicer is duly organized, validly existing and in good standing under the laws of its state of incorporation and has the power to own its assets
and to transact the business in which it is currently engaged. The Servicer is duly qualified to do business as a foreign corporation and is in good standing in each jurisdiction in which the character of the business transacted by it or properties
owned or leased by it or the performance of its obligations hereunder requires such qualification and in which the failure so to qualify could reasonably be expected to have a material adverse effect on the business, properties, assets, or condition
(financial or other) of the Servicer or the performance of its obligations hereunder. 
  
 (b) The Servicer has the power and authority to make, execute, deliver and perform this Agreement and all of the transactions contemplated under this Agreement, and has taken all necessary corporate action to
authorize the execution, delivery and performance of this Agreement, and assuming the due authorization, execution and delivery hereof by the other parties hereto constitutes, or will constitute, the legal, valid and binding obligation of the
Servicer, enforceable in accordance with its terms, except as enforcement of such terms may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the rights of creditors generally, and by
general equity principles (regardless of whether such enforcement is considered in a proceeding in equity or at law). 
  
 (c) The Servicer is not required to obtain the consent of any other party or any consent, license, approval or authorization from, or registration or
declaration with, any governmental authority, bureau or agency which consent already has not been obtained in connection with the execution, delivery, performance, validity or enforceability of this Agreement, except such as have been obtained prior
to the Closing Date. 
  
 (d) The execution, delivery and
performance of this Agreement by the Servicer will not violate any provision of any existing law or regulation or any order or decree of any court or the charter or bylaws of the Servicer, or constitute a breach of any mortgage, indenture, contract
or other Agreement to which the Servicer is a party or by which it may be bound. 
  
 (e) Except as set forth in the Prospectus Supplement under the heading “Risk Factors,” there is no action, suit, proceeding or investigation pending or to Servicer’s knowledge 

  

 10 

 
threatened against the Servicer which, either in any one instance or in the aggregate, is, in the Servicer’s judgment, likely to result in any material
adverse change in the business, operations, financial condition, properties, or assets of the Servicer, or in any material impairment of the right or ability of the Servicer to carry on its business substantially as now conducted, or in any material
liability on the part of the Servicer, or which would draw into question the validity of this Agreement, the Notes, or the Mortgage Loans or of any action taken or to be taken in connection with the obligations of the Servicer contemplated herein or
therein, or which would be likely to impair materially the ability of the Servicer to perform its obligations hereunder. 
  
 (f) Neither this Agreement nor any statement, report, or other document furnished by the Servicer pursuant to this Agreement or in connection with the
transactions contemplated hereby, including, without limitation, the sale or placement of the Notes, contains any untrue material statement of fact provided by or on behalf of the Servicer or omits to state a material fact necessary to make the
statements provided by or on behalf of the Servicer contained herein or therein not misleading. 
  
 (g) The Servicer does not believe, nor does it have any reason or cause to believe, that it cannot perform each and every covenant contained in this
Agreement. 
  
 (h) The Servicer is not an “investment
company” or a company “controlled by an investment company,” within the meaning of the Investment Company Act of 1940, as amended. 
  
 (i) The Servicer shall take all necessary steps to maintain the Indenture Trustee’s perfection and priority in the Mortgage Loans. 
  
 (j) The Servicer will fully furnish, in accordance with the Fair Credit
Reporting Act and its implementing regulations, accurate and complete information (i.e., favorable and unfavorable) on its borrower credit files to Equifax, Experian, and Trans Union Credit Information Company (three of the credit repositories), on
a monthly basis. 
  
 (k) The 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. 
  
 It is understood and agreed that the representations, warranties and covenants set forth in this Section 3.01 shall survive
the delivery of the respective Indenture Trustee’s Mortgage Files to the Indenture Trustee and inure to the benefit of the Indenture Trustee. 
  
 Section 3.02. Representations, Warranties and Covenants of the Sponsor. The Sponsor hereby represents, warrants and covenants to the Indenture
Trustee, the Seller, the Trust and the Servicer that as of the date of this Agreement or as of such date specifically provided herein: 
  
 (a) The Sponsor is a corporation duly organized, validly existing and in good standing under the laws of the State of California. 
  
 (b) The Sponsor has the corporate power and authority to execute, deliver and
perform, and to enter into and consummate the transactions contemplated by this Agreement. 
  

 11 

 (c) This Agreement has been duly and validly authorized, executed and delivered by the Sponsor, all
requisite corporate action having been taken, and, assuming the due authorization, execution and delivery hereof by the other parties hereto, constitutes or will constitute the legal, valid and binding agreement of the Sponsor, enforceable against
the Sponsor in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the rights of creditors generally, and by general equity
principles (regardless of whether such enforcement is considered in a proceeding in equity or at law). 
  
 (d) No consent, approval, authorization or order of or registration or filing with, or notice to, any governmental authority or court is required for the
execution, delivery and performance of or compliance by the Sponsor with this Agreement or the consummation by the Sponsor of any of the transactions contemplated hereby, except as have been made on or prior to the Closing Date. 
  
 (e) None of the execution and delivery of this Agreement, the consummation of
the transactions contemplated hereby or thereby, or the fulfillment of or compliance with the terms and conditions of this Agreement, (i) conflicts or will conflict with or results or will result in a breach of, or constitutes or will constitute a
default or results or will result in an acceleration under (A) the articles of incorporation or bylaws of the Sponsor, or (B) of any term, condition or provision of any material indenture, deed of trust, contract or other agreement or instrument to
which the Sponsor or any of its subsidiaries is a party or by which it or any of its subsidiaries is bound; (ii) results or will result in a violation of any law, rule, regulation, order, judgment or decree applicable to the Sponsor of any court or
governmental authority having jurisdiction over the Sponsor or its subsidiaries; or (iii) results in the creation or imposition of any lien, charge or encumbrance which would have a material adverse effect upon the Mortgage Loans or any documents or
instruments evidencing or securing the Mortgage Loans. 
  
 (f)
Except as set forth in the Prospectus Supplement under the heading “Risk Factors,” there are no actions, suits or proceedings before or against or investigations of, the Sponsor pending, or to the knowledge of the Sponsor,
threatened, before any court, administrative agency or other tribunal, and no notice of any such action, which, in the Sponsor’s reasonable judgment, might materially and adversely affect the performance by the Sponsor of its obligations under
this Agreement, or the validity or enforceability of this Agreement. 
  
 (g) The Sponsor 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 that may materially and adversely affect its performance
hereunder. 
  
 It is understood and agreed that the
representations, warranties and covenants set forth in this Section 3.02 may not be waived and shall survive delivery of the respective Indenture Trustee’s Mortgage Files to the Indenture Trustee and shall inure to the benefit of the Indenture
Trustee. 
  

 12 

 Section 3.03. [Reserved.] 
  
 Section 3.04. Representations, Warranties and Covenants of the Indenture Trustee. The Indenture Trustee hereby
represents, warrants and covenants to the Trust, the Servicer, the Seller and the Sponsor that as of the date of this Agreement or as of such date specifically provided herein: 
  
 (a) The Indenture Trustee is a national banking association duly organized, validly existing and in good standing under the
laws of the United States of America. 
  
 (b) The Indenture
Trustee has the requisite power and authority to execute, deliver and perform, and to enter into and consummate transactions contemplated by this Agreement. 
  
 (c) This Agreement has been duly and validly authorized, executed and delivered by the Indenture Trustee, all requisite action having been taken, and,
assuming the due authorization, execution and delivery hereof by the other parties hereto, constitutes or will constitute the legal, valid and binding agreement of the Indenture Trustee, enforceable against the Indenture Trustee in accordance with
its terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the rights of creditors generally, and by general equity principles (regardless of whether such
enforcement is considered in a proceeding in equity or at law). 
  
 (d) No consent, approval, authorization or order of or registration or filing with, or notice to, any governmental authority or court is required for the execution, delivery and performance of or compliance by the Indenture Trustee with
this Agreement or the consummation by the Indenture Trustee of any of the transactions contemplated hereby, except as have been made on or prior to the Closing Date; 
  
 (e) None of the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby or
thereby, or the fulfillment of or compliance with the terms and conditions of this Agreement, (i) conflicts or will conflict with or results or will result in a breach of, or constitutes or will constitute a default or results or will result in an
acceleration under (A) the articles of association or bylaws of the Indenture Trustee, or (B) to the best of its knowledge, of any term, condition or provision of any material indenture, deed of trust, contract or other agreement or instrument to
which the Indenture Trustee is a party or by which it is bound; or (ii) results or will result in a violation of any statute, rule, regulation, order, judgment or decree applicable to the Indenture Trustee of any court or governmental authority
having jurisdiction over the Indenture Trustee or its subsidiaries which violation would materially and adversely affect the Indenture Trustee’s performance of its duties hereunder; and 
  
 (f) There are no actions, suits or proceedings before or against or
investigations of, the Indenture Trustee, pending or to the knowledge of the Indenture Trustee threatened, before any court, administrative agency or other tribunal, and no notice of any such action, which, in the Indenture Trustee’s reasonable
judgment, would materially and adversely affect the performance by the Indenture Trustee of its obligations under this Agreement, or the validity or enforceability of this Agreement. 
  

 13 

 It is understood and agreed that the representations, warranties and covenants set forth in this Section
3.04 shall survive delivery of the respective Indenture Trustee’s Mortgage Files to the Indenture Trustee. 
  
 Section 3.05. Covenants and Representations of the Sponsor and Servicer Regarding Prepayment Charges. 
  
 (a) The Servicer covenants that it will not waive any Prepayment Charge or
part of a Prepayment Charge unless in connection with a Mortgage Loan that is in default or for which a default is reasonably foreseeable. 
  
 (b) The Sponsor hereby represents and warrants that the information set forth in the Prepayment Charge Schedule is complete, true and correct in all
material respects at the date or dates respecting which such information is furnished and each Prepayment Charge is permissible and enforceable in accordance with its terms (except to the extent that the enforceability thereof may be limited by
bankruptcy, insolvency, moratorium, receivership and other similar laws relating to creditors’ rights generally) under applicable law. 
  
 (c) Upon discovery by the Sponsor or the Indenture Trustee of a breach of the foregoing, the party discovering such breach shall give prompt written
notice to the other parties. Within 60 days of the earlier of discovery by the Servicer or receipt of notice by the Servicer of breach, the Servicer shall cure such breach in all material respects. If the covenant made by the Servicer in clause (a)
above is breached the Servicer must pay into the Collection Account the amount of the waived Prepayment Charge. If the representation made by the Sponsor in clause (b) above is breached, the Sponsor must pay into the Collection Account the amount of
the scheduled Prepayment Charge, less any amount previously collected and paid by the Servicer into the Collection Account. The foregoing obligations of the Servicer and the Sponsor shall be the sole and exclusive remedies for a breach of this
Section 3.05(a) or (b). 
  
 Section 3.06. Representations,
Warranties and Covenants of the Seller. The Seller hereby represents, warrants and covenants to the Indenture Trustee, the Trust, the Sponsor and the Servicer that as of the date of this Agreement or as of such date specifically provided herein:

  
 (a) The Seller is a Maryland real estate investment trust
duly organized, validly existing and in good standing under the laws of the State of Maryland. 
  
 (b) The Seller has the trust power and authority to convey the Mortgage Loans and to execute, deliver and perform, and to enter into and consummate the transactions contemplated by this Agreement. 
  
 (c) This Agreement has been duly and validly authorized, executed and
delivered by the Seller, all requisite corporate action having been taken, and, assuming the due authorization, execution and delivery hereof by the other parties hereto, constitutes or will constitute the legal, valid and binding agreement of the
Seller, enforceable against the Seller in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the rights of creditors generally,
and by general equity principles (regardless of whether such enforcement is considered in a proceeding in equity or at law). 
  

 14 

 (d) No consent, approval, authorization or order of or registration or filing with, or notice to, any
governmental authority or court is required for the execution, delivery and performance of or compliance by the Seller with this Agreement or the consummation by the Seller of any of the transactions contemplated hereby, except as have been made on
or prior to the Closing Date. 
  
 (e) None of the execution and
delivery of this Agreement, the consummation of the transactions contemplated hereby or thereby, or the fulfillment of or compliance with the terms and conditions of this Agreement, (i) conflicts or will conflict with or results or will result in a
breach of, or constitutes or will constitute a default or results or will result in an acceleration under (A) the certificate of trust or bylaws of the Seller, or (B) of any term, condition or provision of any material indenture, deed of trust,
contract or other agreement or instrument to which the Seller or any of its subsidiaries is a party or by which it or any of its subsidiaries is bound; (ii) results or will result in a violation of any law, rule, regulation, order, judgment or
decree applicable to the Seller of any court or governmental authority having jurisdiction over the Seller or its subsidiaries; or (iii) results in the creation or imposition of any lien, charge or encumbrance which would have a material adverse
effect upon the Mortgage Loans or any documents or instruments evidencing or securing the Mortgage Loans. 
  
 (f) Except as set forth in the Prospectus Supplement under the heading “Risk Factors,” there are no actions, suits or proceedings before
or against or investigations of, the Seller pending, or to the knowledge of the Seller, threatened, before any court, administrative agency or other tribunal, and no notice of any such action, which, in the Seller’s reasonable judgment, might
materially and adversely affect the performance by the Seller of its obligations under this Agreement, or the validity or enforceability of this Agreement. 
  
 (g) The Seller 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 that may materially and adversely affect its performance hereunder. 
  
 (h) The Seller hereby covenants that it will file a federal income tax return for its taxable year ending December 31, 20     on Internal Revenue Service Form 1120 REIT on which the Seller
elects to be taxed as a REIT. The Seller hereby represents that it has been organized in conformity with the requirements for qualification for taxation as a REIT and hereby covenants that it at all times the Seller owns Trust Certificates, either
directly, or indirectly through one or more Qualified REIT Subsidiaries, will conduct its operations so as to qualify as a REIT. If, at any time the Seller owns Trust Certificates, either directly, or indirectly through one or more Qualified REIT
Subsidiaries, the Seller determines that is has failed to qualify as a REIT, the Seller shall, within 30 days of such discovery, notify the Indenture Trustee of such failure. 
  
 It is understood and agreed that the representations, warranties and covenants set forth in this Section 3.06 shall survive
delivery of the respective Indenture Trustee’s Mortgage Files to the Indenture Trustee and shall inure to the benefit of the Indenture Trustee. 
  

 15 

 ARTICLE IV 
  

THE MORTGAGE LOANS 
  
 Section 4.01. Representations and Warranties Concerning the Mortgage Loans. The Sponsor makes the following representations and warranties to the
Seller, the Servicer, the Indenture Trustee and the Trust as to the Mortgage Loans on which the Trust relies in accepting the Mortgage Loans in trust and executing the Notes. All uses and variations of the word “enforceable” in this
Section 4.01, shall be deemed to be qualified as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and by general principles of
equity (whether considered in a proceeding or action in equity or at law). With respect to the representations and warranties stated in Sections 4.01(i), (r), (ddd), (eee) and (fff), the Sponsor makes such representations and warranties on behalf of
itself and the Seller. Such representations, warranties and covenants are made or deemed to be made as of the Closing Date. 
  
 (a) The information with respect to each Mortgage Loan set forth in the Mortgage Loan Schedule is true and correct as of the Cut-Off Date, based on
Cut-Off Date Principal Balances. 
  
 (b) Each Mortgage Loan is
being serviced either (i) through the Servicer or (ii) a Person controlling, controlled by or under common control with the Servicer and qualified to service mortgage loans. 
  
 (c) Each Mortgage Loan was underwritten or reunderwritten pursuant to the Underwriting Guidelines which conform in all
material respects to the description thereof set forth in the Prospectus Supplement. 
  
 (d) All of the original or certified documentation required to be delivered to the Indenture Trustee pursuant to this Agreement (including all material documents related thereto) with respect to each Mortgage Loan has
been or will be delivered to the Indenture Trustee in accordance with the terms of this Agreement. Each of the documents and instruments specified to be included therein has been duly executed and in due and proper form, and each such document or
instrument is in a form generally acceptable to prudent mortgage lenders that regularly originate or purchase mortgage loans comparable to the Mortgage Loans for sale to prudent investors in the secondary market that invest in mortgage loans such as
the Mortgage Loans. 
  
 (e) [Reserved.] 
  
 (f) Each Mortgaged Property is improved by a single (one to four) family
residential dwelling, which may include condominiums, individual units in a planned unit development and townhouses but shall not include cooperatives. 
  
 (g) No Mortgage Loan had an LTV at origination in excess of 100%. 
  

(h) Each Mortgage Loan is a valid, subsisting enforceable and perfected first lien as identified on the Mortgage Loan Schedule on the Mortgaged
Property and subject in all 

  

 16 

 
cases to the exceptions to title set forth in the title insurance policy, with respect to the related Mortgage Loan, which exceptions are generally
acceptable to banking institutions in connection with their regular mortgage lending activities, and such other exceptions to which similar properties are commonly subject and which do not individually, or in the aggregate, materially and adversely
affect the benefits of the security intended to be provided by such Mortgage. At the time each Mortgage Loan was originated, the originator was a mortgagee approved by the Secretary of Housing and Urban Development pursuant to Sections 203 and 211
of the National Housing Act or a savings and loan association, a savings bank, a commercial bank or similar banking institution which was supervised and examined by a federal or state authority or a mortgage banker or broker licensed or authorized
to do business in the jurisdiction in which the related Mortgaged Property is located, applying the same standards and procedures used by the Sponsor in originating Mortgage Loans directly. 
  
 (i) Immediately prior to the transfer and assignment of the Mortgage Loans to
the Seller pursuant to the Contribution Agreement, the Sponsor held good and marketable title to, and was the sole owner of each Mortgage Loan, subject to no liens, charges, mortgages or encumbrances or rights of others, except liens of third party
warehouse lenders that will be released simultaneously with the transfer and assignment contemplated herein; and immediately prior to the transfer and assignment herein contemplated, the Seller held good and marketable title to, and was the sole
owner of, each Mortgage Loan subject to no liens, charges, mortgages, encumbrances or rights of others except liens which will be released simultaneously with such transfer and assignment; and immediately upon the transfer and assignment herein
contemplated, the Indenture Trustee will hold good and marketable title to, and be the sole owner of, each Mortgage Loan subject to no liens, charges, mortgages, encumbrances or rights of others except liens which will be released simultaneously
with such transfer and assignment. 
  
 (j) There is no delinquent
tax or assessment lien on any Mortgaged Property, and each Mortgaged Property is free of substantial damage and is in good repair. 
  
 (k) There is no valid and enforceable right of rescission, set-off, defense or counterclaim to any Mortgage Note or Mortgage, including the obligation of
the related Mortgagor to pay the unpaid principal of or interest on such Mortgage Note or the defense of usury, nor will the operation of any of the terms of the Mortgage Note or the Mortgage, or the exercise of any right thereunder, render either
the Mortgage Note or the Mortgage unenforceable in whole or in part, or subject to any right of rescission, set-off, counterclaim or defense, including the defense of usury, and no such right of rescission, set-off, counterclaim or defense has been
asserted with respect thereto. 
  
 (l) There is no mechanics’
lien or claim for work, labor or material affecting any Mortgaged Property which is or may be a lien prior to, or equal with and no rights are outstanding that under the law gives rise to such liens, the lien of the related Mortgage except those
which are insured against by any title insurance policy referred to in paragraph (n) below. 
  
 (m) Each Mortgage Loan at the time it was made complied with, and each Mortgage Loan at all times was serviced in compliance with, in each case, in all material respects, applicable local, state and federal laws and
regulations, including, without limitation, the federal Truth-in-Lending Act and other consumer protection laws, the Home Ownership and Equity Protection Act of 1994, real estate settlement procedure, usury, equal credit opportunity, disclosure and
recording laws and all applicable predatory and abusive lending laws. 
  

 17 

 (n) With respect to each Mortgage Loan, a lender’s title insurance policy, issued in standard
California Land Title Association form or American Land Title Association form, or other form acceptable in a particular jurisdiction by a title insurance company authorized to transact business in the state in which the related Mortgaged Property
is situated, in an amount at least equal to the original Principal Balance of such Mortgage Loan insuring the mortgagee’s interest under the related Mortgage Loan as the holder of a valid first mortgage lien of record on the real property
described in the related Mortgage, as the case may be, subject only to exceptions of the character referred to in paragraph (h) above, was effective on the date of the origination of such Mortgage Loan, and, as of the Closing Date such policy will
be valid and inure to the benefit of the Indenture Trustee on behalf of the Noteholders. 
  
 (o) The improvements upon each Mortgaged Property are covered by a valid and existing hazard insurance policy (which may be a blanket policy of the type described in this Agreement) with a generally acceptable carrier
that provides for fire and extended coverage representing coverage not less than the least of (i) the outstanding Principal Balance of the related Mortgage Loan, (ii) the minimum amount required to compensate for damage or loss on a replacement cost
basis or (iii) the full insurable value of the Mortgaged Property. 
  
 (p) If any Mortgaged Property is in an area identified in the Federal Register by the Federal Emergency Management Agency as having special flood hazards, a flood insurance policy (which may be a blanket policy of the type described in this
Agreement) in a form meeting the requirements of the current guidelines of the Federal Insurance Administration is in effect with respect to such Mortgaged Property with a generally acceptable carrier in an amount representing coverage not less than
the least of (i) the outstanding Principal Balance of the related Mortgage Loan (together, in the case of a second mortgage loan, with the outstanding principal balance of the first mortgage loan), (ii) the minimum amount required to compensate for
damage or loss on a replacement cost basis or (iii) the maximum amount of insurance that is available under the Flood Disaster Protection Act of 1973. 
  
 (q) Each Mortgage and Mortgage Note is the legal, valid and binding obligation of the maker thereof and is enforceable in accordance with its terms,
except only as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity (whether considered in a
proceeding or action in equity or at law), and all parties to each Mortgage Loan had full legal capacity to execute all documents relating to such Mortgage Loan and convey the estate therein purported to be conveyed. 
  
 (r) The Sponsor has directed and the Seller has caused to be performed any
and all acts required to be performed to preserve the rights and remedies of the Indenture Trustee in any Insurance Policies applicable to any Mortgage Loan delivered by the Sponsor or the Seller including, to the extent such Mortgage Loan is not
covered by a blanket policy described in this Agreement, any necessary notifications of insurers, assignments of policies or interests therein, and establishments of coinsured, joint loss payee and mortgagee rights in favor of the Indenture Trustee.

  

 18 

 (s) The Sponsor has caused or will have caused, within ten days, the filing of all appropriate financing
statements in the proper filing office in the appropriate jurisdictions under applicable law in order to perfect the security interest in the original Mortgage Note and all subsequent assignments of the original Mortgage, granted to the Indenture
Trustee hereunder, subject to the provisions of Section 2.05(b) of this Agreement. 
  
 (t) The terms of each Mortgage Note and each Mortgage have not been impaired, altered, waived or modified in any respect, except by a written instrument which has been recorded, if necessary, to protect the interest
of the Noteholders and which has been delivered to the Indenture Trustee. 
  
 (u) The proceeds of each Mortgage Loan have been fully disbursed, and there is no obligation on the part of the mortgagee to make future advances thereunder. All costs, fees and expenses incurred in making or closing
or recording such Mortgage Loans were paid. 
  
 (v) Except as
otherwise required by law or pursuant to the statute under which the related Mortgage Loan was made, the related Mortgage Note is not and has not been secured by any collateral, pledged account or other security except the lien of the corresponding
Mortgage. 
  
 (w) No Mortgage Loan was originated under a buydown
plan. 
  
 (x) No Mortgage Loan provides for negative amortization,
has a shared appreciation feature, or other contingent interest feature. 
  
 (y) Each Mortgaged Property is located in the state identified in the Mortgage Loan Schedule and consists of one or more parcels of real property with a residential dwelling erected thereon and that no residence or
dwelling is a mobile home. 
  
 (z) Each Mortgage securing a
Mortgage Note contains a provision for the acceleration of the payment of the unpaid Principal Balance of the related Mortgage Loan in the event the related Mortgaged Property is sold without the prior consent of the mortgagee thereunder.

  
 (aa) Any advances made after the date of origination of a
Mortgage Loan but prior to the Cut-Off Date, have been consolidated with the outstanding principal amount secured by the related Mortgage, and the secured principal amount, as consolidated, bears a single interest rate and single repayment term
reflected on the Mortgage Loan Schedule. The consolidated principal amount does not exceed the original principal amount of the related Mortgage Loan. No Mortgage Note permits or obligates the Seller, the Servicer, the Sponsor or any other Person to
make future advances to the related Mortgagor at the option of the Mortgagor. 
  
 (bb) There is no proceeding pending or threatened for the total or partial condemnation of any Mortgaged Property, nor is such a proceeding currently occurring, and each Mortgaged Property is undamaged by waste, fire,
earthquake or earth movement, flood, tornado or other casualty, so as to affect adversely the value of the Mortgaged Property as security for the Mortgage Loan or the use for which the premises were intended. 
  

 19 

 (cc) All of the improvements which were included for the purposes of determining the Appraised Value of
any Mortgaged Property lie wholly within the boundaries and building restriction lines of such Mortgaged Property, and no improvements on adjoining properties encroach upon such Mortgaged Property, except as stated in the related title insurance
policy and affirmatively insured. 
  
 (dd) No improvement located
on or being part of any Mortgaged Property is in violation of any applicable zoning law or regulation. As of the related date of origination, all inspections, licenses and certificates required to be made or issued with respect to all occupied
portions of each Mortgaged Property and, with respect to the use and occupancy of the same, including, but not limited to, certificates of occupancy and fire underwriting certificates, have been made or obtained from the appropriate authorities and
such Mortgaged Property is lawfully occupied under the applicable law. 
  
 (ee) With respect to each Mortgage constituting a deed of trust, a trustee, duly qualified under applicable law to serve as such, has been properly designated and currently so serves and is named in such Mortgage, and no fees or expenses
are or will become payable by the Sponsor, the Seller, or the Trust to the trustee under the deed of trust, except in connection with a trustee’s sale after default by the related Mortgagor. 
  
 (ff) [Reserved.] 
  
 (gg) [Reserved.] 
  
 (hh) Each Mortgage contains customary and enforceable provisions which render
the rights and remedies of the holder thereof adequate for the realization against the related Mortgaged Property of the benefits of the security, including (i) in the case of a Mortgage designated as a deed of trust, by trustee’s sale and (ii)
otherwise by judicial foreclosure. There is no homestead or other exemption available which materially interferes with the right to sell the related Mortgaged Property at a trustee’s sale or the right to foreclose the related Mortgage.

  
 (ii) There is no default, breach, violation or event of
acceleration existing under any Mortgage or the related Mortgage Note and no event which, with the passage of time or with notice and the expiration of any grace or cure period, would constitute a default, breach, violation or event of acceleration;
and the Seller has not waived any default, breach, violation or event of acceleration. 
  
 (jj) No instrument of release or waiver has been executed in connection with any Mortgage Loan, and no Mortgagor has been released, in whole or in part. 
  
 (kk) [Reserved.] 
  
 (ll) The Sponsor has no actual knowledge that there exists on any Mortgaged Property any hazardous substances, hazardous wastes or solid wastes, as such
terms are defined in the CERCLA, the Resource Conservation and Recovery Act of 1976, or other federal, state or local environmental legislation. 
  

 20 

 (mm) No action, error, omission, misrepresentation, negligence, fraud or similar occurrence with respect
to the origination of a Mortgage Loan has taken place on the part of any person, including, without limitation, the Mortgagor, any appraiser, any builder or developer, or any other party involved in the origination of the Mortgage Loan or in the
application of any insurance in relation to such Mortgage Loan. 
  
 (nn) The Sponsor has not solicited the Mortgagor in connection with any refinancing. 
  
 (oo) If the Mortgage Loan is an adjustable rate Mortgage Loan, all of the adjustments to the Mortgage Interest Rate, to the amount of the monthly payment, and to the principal balance have been made in accordance with
the terms of the related Mortgage Note. 
  
 (pp) The origination
and collection practices used with respect to the Mortgage Loan have been in all respects legal, proper, prudent and customary in the mortgage origination and servicing business. 
  
 (qq) An appraisal of the related Mortgaged Property was made and signed, prior to the approval of the Mortgage Loan
application, by a qualified appraiser who met the requirements of the Sponsor’s appraisal policy and procedures and who had no interest, direct or indirect in the Mortgaged Property or in any loan made on the security thereof, whose
compensation was not affected by the approval or disapproval of the Mortgage Loan. 
  
 (rr) The Mortgagor has received all disclosure materials required by applicable law with respect to the making of adjustable rate mortgage loans; and if the Mortgage Loan is a refinanced Mortgage Loan, the Mortgagor
has received all disclosure and rescission materials required by applicable law with respect to the making of a refinanced Mortgage Loan, and evidence of such receipt is and will remain in the Servicer’s file. 
  
 (ss) If the residential dwelling on the Mortgaged Property is a condominium
unit or a unit in a planned unit development (other than a de minimis planned unit development), such condominium or planned unit development project meets the Sponsor’s eligibility requirements. 
  
 (tt) None of the Mortgage Loans was more than one payment past due or had
been dishonored. None of the Mortgage Loans have been thirty or more days delinquent more than one time in the twelve months preceding the Cut-Off Date. 
  
 (uu) The Sponsor has not advanced funds, or induced, solicited or knowingly received any advance of funds by a person other than the Mortgagor, directly
or indirectly, for the payment of any amount required under the Mortgage Loan, except for interest prepaid upon the closing of the Mortgage Loan. No Mortgage Loan contains any provision pursuant to which Monthly Payments are: (i) paid or partially
paid with funds deposited in any separate account established by the Sponsor, the Mortgagor, or anyone on behalf of the Mortgagor or (ii) paid by any source other than the Mortgagor. The Mortgage Loan is not deemed a graduated payment mortgage loan
and the Mortgage Loan does not have a shared appreciation or other contingent interest feature. 
  

 21 

 (vv) No foreclosure proceedings are pending against the Mortgaged Property and the Mortgage Loan is not
subject to any pending bankruptcy or insolvency proceeding, and to the Sponsor’s best knowledge, no material litigation or material lawsuit relating to the Mortgage Loan is pending. 
  
 (ww) Principal payments on the Mortgage Loan commenced or will commence within sixty days after the proceeds of the Mortgage
Loan were disbursed. 
  
 (xx) With respect to escrow deposits, if
any, all such payments are in the possession of, or under the control of, the Servicer and there exists no deficiencies in connection therewith for which customary arrangements for repayment thereof have not been made or could be made. No escrow
deposits or escrow advances or other charges or payments due the Servicer have been capitalized under any Mortgage or the related Mortgage Note. 
  
 (yy) With respect to the conveyance of the Mortgage Loans by the Sponsor to the Seller, the Sponsor used no selection procedures that identified the
Mortgage Loans as being less desirable or valuable than other comparable mortgage loans originated or acquired by the Sponsor. The Mortgage Loans are representative of the Sponsor’s portfolio of fixed-rate or adjustable-rate mortgage loans, as
applicable. With respect to the conveyance of the Mortgage Loans pursuant to this Agreement, the Seller used no selection procedures that identified the Mortgage Loans as being less desirable or valuable than other comparable mortgage loans
originated or acquired by the Seller. The Mortgage Loans are representative of the Seller’s portfolio of fixed-rate or adjustable-rate mortgage loans, as applicable. 
  
 (zz) Each Mortgage Loan conforms, and all such Mortgage Loans in the aggregate conform in all material respects to the
description thereof set forth in the Prospectus Supplement. 
  
 (aaa) All requirements for the valid transfer of each Insurance Policy, including any assignments or notices required in each Insurance Policy, have been satisfied. 
  
 (bbb) This Agreement creates a valid and continuing security interest (as defined in the applicable UCC) in the Mortgage
Loans in favor of the Indenture Trustee, which security interest is prior to all other liens, and is enforceable as such as against creditors of and purchasers from the Seller. 
  
 (ccc) The Mortgage Loans constitute “instruments” within the meaning of the applicable UCC. 
  
 (ddd) The Sponsor received all consents and approvals required by the terms
of the Mortgage Loans to the contribution of the Mortgage Loans pursuant to the Contribution Agreement to the Seller and the Seller has received all consents and approvals required by the terms of the Mortgage Loans to the sale of the Mortgage Loans
hereunder to the Owner Trustee and the subsequent pledge to the Indenture Trustee. 
  
 (eee) Other than the security interest granted to the Indenture Trustee pursuant to the Indenture, neither the Sponsor nor the Seller has pledged, assigned, sold, granted a security interest in, or otherwise conveyed
any of the Mortgage Loans. Neither the Sponsor nor the Seller 

  

 22 

 
has authorized the filing of nor is aware of any financing statements against the Sponsor or the Seller that include a description of collateral covering the
Mortgage Loans other than any financing statement relating to the security interest granted to the Indenture Trustee hereunder or that has been terminated. Neither the Sponsor nor the Seller is aware of any judgment or tax lien filings affecting the
Mortgage Loans against either the Seller or the Sponsor. 
  
 (fff)
All financing statements filed or to be filed against the Sponsor or the Seller in favor of the Indenture Trustee in connection herewith describing the Mortgage Loans contain a statement to the following effect: “A purchase of or security
interest in any collateral described in this financing statement will violate the rights of the Indenture Trustee.” 
  
 (ggg) None of the Mortgage Loans are classified as (a) “high cost” loans under the Home Ownership and Equity Protection Act of 1994 or (b)
“high cost,” “threshold,” “covered”, “predatory” or “abusive” loans under any other applicable state, federal or local law (including without limitation any regulation or ordinance) (or a similarly
classified loan using different terminology under a law imposing heightened regulatory scrutiny or additional legal liability for residential mortgage loans having high interest rates, points and/or fees). 
  
 (hhh) No proceeds from any Mortgage Loan were used to finance single-premium
credit insurance policies; 
  
 (iii) No Mortgage Loan is a
“High Cost Home Loan” or “Covered Loan,” as applicable, (as such terms are defined in the then current Standard & Poor’s LEVELS Glossary which is now Version 5.6b Revised, Appendix E) and no Mortgage Loan originated on
or after October 1, 2002 through March 6, 2003 is governed by the Georgia Fair Lending Act. No Mortgage Loan that was originated on or after October 1, 2002 and before March 7, 2003 is secured by property located in the State of Georgia. There is no
Mortgage Loan that was originated on or after March 7, 2003 which is a “high cost home loan” as defined under the Georgia Fair Lending Act. 
  
 (jjj) No Mortgage Loan is secured by a leasehold interest, unless such leasehold interest extends 60 months beyond the stated maturity of the Mortgage
Note. 
  
 (kkk) There is no pending action or proceeding directly
involving the Mortgaged Property in which compliance with any environmental law, rule or regulation is an issue. Based upon customary and prudent residential mortgage industry underwriting standards, there is no violation of any environmental law,
rule or regulation with respect to the Mortgaged Property, and nothing further remains to be done to satisfy in full all requirements of each such law, rule or regulation constituting a prerequisite to use and enjoyment of said property. 

 
 (lll) The Mortgagor has not notified Accredited, and Accredited has no
knowledge of any relief requested or allowed to the Mortgagor under the Servicemembers Civil Relief Act or any similar state statute. 
  
 (mmm) No Mortgage Loan was made in connection with the construction (other than a “construct to perm” loan) or rehabilitation of a Mortgaged
Property or facilitating the trade in or exchange of a Mortgaged Property. 
  

 23 

 (nnn) Accredited has complied with all applicable anti money laundering laws and regulations, including
without limitation the USA Patriot Act of 2001 (collectively, the “Anti-Money Laundering Laws”). 
  
 (ooo) No Mortgage Loan imposes a Prepayment Charge for a term in excess of five years. 
  
 (ppp) No Mortgage Loan is a “High-Cost Home Loan” as defined in the New Jersey Home Ownership Act, effective as of
November 27, 2003, or the Home Loan Protection Act of New Mexico, effective as of January 1, 2004. 
  
 (qqq) No Mortgage Loan is a “High-Cost Home Loan” as defined in the Massachusetts Predatory Home Loan Practice Act effective November 7, 2004
(MA House Bill 4880); 
  
 (rrr) With respect to the Mortgage Loans
in Group     , (i) no Mortgage Loan imposes a Prepayment Charge for a term in excess of three years, (ii) the servicer for each Mortgage Loan has fully furnished (and, on a going forward basis, will fully furnish), in
accordance with the Fair Credit Reporting Act and its implementing regulations, accurate and complete information (i.e., favorable and unfavorable) on its borrower credit files to Equifax, Experian, and Trans Union Credit Information Company (three
of the credit repositories), on a monthly basis, (iii) with respect to any Mortgage Loan originated on or after August 1, 2004, neither the related mortgage nor the related mortgage note requires the borrower to submit to arbitration to resolve any
dispute arising out of or relating in any way to the mortgage loan transaction, (iv) no Mortgage Loan is covered by the Home Ownership and Equity Protection Act of 1994 (“HOEPA”), (v) no Mortgage Loan is a “high cost home,”
“covered” (excluding home loans defined as “covered home loans” in the New Jersey Home Ownership Security Act of 2002 that were originated between November 26, 2003 and July 7, 2004), “high risk home” or
“predatory” loan under any applicable state, federal or local law (or a similarly classified loan using different terminology under a law imposing heightened regulatory scrutiny or additional legal liability for residential mortgage loans
having high interest rates, points and/or fees), and (vi) the original Principal Balance of each Mortgage Loan was within Freddie Mac’s dollar amount limits for conforming one- to four-family mortgage loans, as follows: 
  

					
	 Number of Units

	  	Maximum Original Loan Amount of First Mortgage

	 	  	Continental United States or Puerto
Rico

	  	 Alaska, Guam, Hawaii or
 Virgin Islands

	 1
	  	 	  	 
	 2
	  	 	  	 
	 3
	  	 	  	 
	 4
	  	 	  	 

  
 (sss) A breach of any
one of the representations set forth in paragraphs (ggg), (hhh), (iii) and (qqq) above, will be deemed to materially and adversely affect the interests of the Noteholders and shall require a repurchase of the affected Mortgage Loan pursuant to
Section 4.02. 
  

 24 

 It is understood and agreed that the representations, warranties and covenants set forth in this Section
4.01 shall survive delivery of the respective Indenture Trustee’s Mortgage Files to the Indenture Trustee and shall inure to the benefit of the Indenture Trustee on behalf of the Noteholders. 
  
 Section 4.02. Purchase and Substitution. (a) It is understood and
agreed that the representations and warranties set forth in Section 4.01 shall survive the transfer of the Mortgage Loans by the Seller to the Trust, the subsequent pledge thereof by the Trust to the Indenture Trustee, for the benefit of the
Noteholders, and the delivery of the Notes to the Noteholders, and shall continue in full force and effect, notwithstanding any restrictive or qualified endorsement on the Mortgage Notes and notwithstanding subsequent termination of this
Agreement. 
  
 (b) Upon discovery by the Seller, the
Sponsor, the Servicer, the Indenture Trustee or a Noteholder of a breach of any of the representations and warranties in Section 4.01 which materially and adversely affects the value of any Mortgage Loan, or which materially and adversely affects
the interests of the Noteholders in the related Mortgage Loan, the party discovering such breach or failure shall promptly (and in any event within five (5) days of the discovery) give written notice thereof to the others. Within sixty (60) days of
the earlier of its discovery or its receipt of notice of any breach of a representation or warranty, the Seller shall, and if the Seller fails to, then the Sponsor shall (a) promptly cure such breach in all material respects, (b) purchase such
Mortgage Loan on a Servicer Remittance Date, in the manner and at the price specified in Section 2.06(b) and this Section 4.02, or (c) remove such Mortgage Loan from the Trust Estate (in which case it shall become a Deleted Mortgage Loan) and
substitute one or more Qualified Substitute Mortgage Loans in the manner specified in Section 2.06 and this Section 4.02. The Indenture Trustee shall deliver prompt written notice to the Rating Agencies of any repurchase or substitution made
pursuant to this Section 4.02 or Section 2.06(b). 
  
 (c) As to
any Deleted Mortgage Loan for which the Seller or the Sponsor substitutes a Qualified Substitute Mortgage Loan or Loans, the Servicer shall cause the Seller or Sponsor to effect such substitution by delivering to the Indenture Trustee a
certification, in the form attached hereto as Exhibit F, executed by a Servicing Officer, and the documents described in Sections 2.05(a)(i)-(vi) for such Qualified Substitute Mortgage Loan or Loans. 
  
 (d) The Servicer shall deposit in the Collection Account all payments
received in connection with such Qualified Substitute Mortgage Loan or Loans after the date of such substitution. Monthly Payments due with respect to Qualified Substitute Mortgage Loans in or before the Due Period in which the substitution occurs
shall not be part of the Trust Estate and will be retained by the Sponsor on the next succeeding Payment Date. For the Due Period in which the substitution occurs, distributions to Noteholders will include the Monthly Payment due on any Deleted
Mortgage Loan for such Due Period and thereafter the Sponsor shall be entitled to retain all amounts received in respect of such Deleted Mortgage Loan. The Servicer shall give written notice to the Indenture Trustee that such substitution has taken
place and shall amend the Mortgage Loan Schedule to reflect the removal of such Deleted Mortgage Loan from the terms of this Agreement and the substitution of the Qualified Substitute Mortgage Loan or Loans. Upon such substitution, such Qualified
Substitute Mortgage Loan or Loans shall be subject to the terms of this Agreement in all respects. 
  

 25 

 (e) With respect to any Mortgage Loan that has been converted to an REO Mortgage Loan, all references in
this Section 4.02 or Section 2.06 to “Mortgage Loan” shall be deemed to also refer to the REO Mortgage Loan. With respect to any Mortgage Loan that the Seller and Sponsor are required to repurchase that is or becomes a Liquidated Mortgage
Loan, in lieu of repurchasing such Mortgage Loan, the Servicer shall deposit into the Payment Account, pursuant to Section 8.01 of the Indenture, an amount equal to the amount of the Liquidated Loan Loss, if any, incurred in connection with the
liquidation of such Mortgage Loan within the same time period in which the Servicer, Seller or Sponsor would have otherwise been required to repurchase such Mortgage Loan. 
  
 (f) It is understood and agreed that the obligations of the Seller and the Sponsor set forth in Sections 2.06 and 4.02 to
cure, purchase or substitute for a defective Mortgage Loan, or to indemnify as described in Section 4.02(g) constitute the sole remedies of the Indenture Trustee and the Noteholders respecting a breach of the representations and warranties of the
Sponsor set forth in Section 4.01 of this Agreement. 
  
 (g) The
Sponsor shall be obligated to indemnify the Seller, the Indenture Trustee, the Trust, the Owner Trustee and the Noteholders for any third party claims arising out of a breach by the Sponsor of representations or warranties regarding the Mortgage
Loans. 
  
 ARTICLE V 
  
 ADMINISTRATION AND SERVICING OF THE MORTGAGE LOANS 
  
 Section 5.01. The Servicer. (a) The Servicer shall service and
administer the Mortgage Loans in accordance with this Agreement and in accordance with Accepted Servicing Practices, and shall have full power and authority, acting alone, to do or cause to be done any and all things in connection with such
servicing and administration which it may deem necessary or desirable. 
  
 (b) The Servicer shall exercise its discretion consistent with Accepted Servicing Practices and the terms of this Agreement, with respect to the enforcement of defaulted Mortgage Loans in such manner as will maximize the receipt of
principal and interest with respect thereto, including but not limited to the sale of such Mortgage Loan to a third party, the modification of such Mortgage Loan, or foreclosure upon the related property with a Mortgage and disposition thereof.

  
 (c) The duties of the Servicer shall include collecting and
posting of all payments, responding to inquiries of Mortgagors or by federal, state or local government authorities with respect to the Mortgage Loans, investigating delinquencies, reporting tax information to Mortgagors in accordance with its
customary practices and accounting for collections and furnishing monthly and annual statements to the Indenture Trustee with respect to distributions, paying Compensating Interest and making Delinquency Advances and Servicing Advances pursuant
hereto. The Servicer shall follow its customary standards, policies and procedures in performing its duties as Servicer. The Servicer shall cooperate with the Indenture Trustee and furnish to the Indenture Trustee with reasonable promptness
information in its possession as may be necessary or appropriate to enable the Indenture Trustee to perform its tax reporting duties hereunder. The Indenture Trustee shall furnish the Servicer with any powers of 

  

 26 

 
attorney and other documents as the Indenture Trustee shall deem necessary or appropriate to enable the Servicer to carry out its servicing and
administrative duties hereunder; provided, however, the Servicer shall prepare for and deliver to the Indenture Trustee for its execution any such powers of attorney; provided, further, that the Indenture Trustee shall not be responsible for any
misuse of any such power of attorney. Notwithstanding anything contained herein to the contrary, the Servicer shall not, without the Indenture Trustee’s written consent, other than routine foreclosure actions: (i) initiate any action, suit or
proceeding directly relating to the servicing of the Mortgage Loan solely under the Indenture Trustee’s name without indicating the Servicer’s representative capacity, (ii) initiate any other action, suit or proceeding not directly
relating to the servicing of any Mortgage Loan (including but not limited to actions, suits or proceedings against Noteholders or Certificateholders, or against the Seller for breaches of representations and warranties) solely under the Indenture
Trustee’s name, (iii) engage counsel to represent the Indenture Trustee in any action, suit or proceeding not directly related to the servicing of any Mortgage Loan (including but not limited to actions, suits or proceedings against Noteholders
or Certificateholders, or against the Seller for breaches of representations and warranties, or (iv) prepare, execute or deliver any government filings, forms, permits, registrations or other documents or take any action with the intent to cause,
and that actually causes, the Indenture Trustee to be registered to do business in any state. 
  
 (d) [Reserved.] 
  
 (e) The
Servicer shall, in accordance with Accepted Servicing Practices, have the right to approve requests of Mortgagors for consent to (i) partial releases of Mortgage Loans and (ii) alterations, removal, demolition or division of Mortgaged Properties
subject to Mortgage Loans. No such request shall be approved by the Servicer unless: (x) the provisions of the related Mortgage Note have been complied with; (y) the LTV (which may, for this purpose, be determined at the time of any such action)
after any release does not exceed the LTV set forth for such Mortgage Loan in the Mortgage Loan Schedule; and (z) the lien priority, monthly payment, Mortgage Interest Rate or maturity date of the related Mortgage is not affected except in
accordance with Section 5.01(f); provided, however, that the foregoing requirements (x), (y) and (z) shall not apply to any such situation described in this paragraph if such situation results from any condemnation or easement activity
by a governmental entity. 
  
 (f) Notwithstanding anything else
contained herein, the Servicer may not agree to a modification or extension of any Mortgage Loan unless both (i) such Mortgage Loan is in default or a default thereon is reasonably foreseeable and (ii) such modification or extension would not result
in the Servicer agreeing to modifications or extensions on Mortgage Loans with Initial Pool Balances of the related Group of more than     % of the Maximum Collateral Amount. In addition, the Servicer may not agree to more
than (i) one modification or extension with respect to any individual Mortgage Loan in a calendar year or (ii) three modifications or extensions of an individual Mortgage Loan during the life of such Mortgage Loan. 
  
 (g) [Reserved.] 
  
 (h) Without limiting the generality of the foregoing, but subject to Sections 5.05 and 5.06, the Servicer in its own name
may be authorized and empowered pursuant to a power of attorney executed and delivered by the Indenture Trustee to execute and deliver, and 

  

 27 

 
may be authorized and empowered by the Indenture Trustee, to execute and deliver, on behalf of itself, the Noteholders and the Indenture Trustee or any of
them, (i) any and all instruments of satisfaction or cancellation or of partial or full release or discharge and all other comparable instruments with respect to the Mortgage Loans and with respect to the Mortgaged Properties, (ii) and to institute
foreclosure proceedings or obtain a deed in lieu of foreclosure so as to effect ownership of any Mortgaged Property on behalf of the Indenture Trustee, and (iii) to hold title to any Mortgaged Property upon such foreclosure or deed in lieu of
foreclosure on behalf of the Indenture Trustee; provided, however, that Section 5.07(a) shall constitute a power of attorney from the Indenture Trustee to the Servicer to execute an instrument of satisfaction (or assignment of mortgage
without recourse) with respect to any Mortgage Loan paid in full (or with respect to which payment in full has been escrowed). Subject to Sections 5.05 and 5.06, the Indenture Trustee shall furnish the Servicer with any powers of attorney and other
documents as the Servicer shall reasonably request to enable the Servicer to carry out its servicing and administrative duties hereunder; provided, however, the Servicer shall prepare for and deliver to the Indenture Trustee for its execution any
such powers of attorney; provided, further, that the Indenture Trustee shall not be responsible for any misuse of any such power of attorney. Notwithstanding anything contained herein to the contrary, the Servicer shall not, without the Indenture
Trustee’s written consent, other than routine foreclosure actions: (i) initiate any action, suit or proceeding directly relating to the servicing of the Mortgage Loan solely under the Indenture Trustee’s name without indicating the
Servicer’s representative capacity, (ii) initiate any other action, suit or proceeding not directly relating to the servicing of any Mortgage Loan (including but not limited to actions, suits or proceedings against Noteholders or
Certificateholders, or against the Seller for breaches of representations and warranties) solely under the Indenture Trustee’s name, (iii) engage counsel to represent the Indenture Trustee in any action, suit or proceeding not directly related
to the servicing of any Mortgage Loan (including but not limited to actions, suits or proceedings against Noteholders or Certificateholders, or against the Seller for breaches of representations and warranties, or (iv) prepare, execute or deliver
any government filings, forms, permits, registrations or other documents or take any action with the intent to cause, and that actually causes, the Indenture Trustee to be registered to do business in any state. 
  
 (i) The Servicer shall give prompt notice to the Indenture Trustee of any
action, of which the Servicer has actual knowledge, to (i) assert a claim against the Trust or (ii) assert jurisdiction over the Trust. 
  
 (j) Servicing Advances incurred by the Servicer in connection with the servicing of the Mortgage Loans (including any penalties in connection with the
payment of any taxes and assessments or other charges) on any Mortgaged Property shall be recoverable by the Servicer to the extent described herein. 
  
 (k) The Servicer shall be entitled to rely, and shall be fully protected in relying, upon any promissory note, writing, resolution, notice, consent,
certificate, affidavit, letter, e-mail, cablegram, telegram, telecopy, telex or teletype message, statement, order or other document reasonably believed by it to be genuine and correct and to have been signed, sent or made by the proper person or
persons and upon advice and statements of legal counsel (including, without limitation, counsel to the Mortgagor(s)), independent accountants and other experts selected by the Servicer. 
  

 28 

 (l) The Servicer shall have no liability to the Seller, the Sponsor, the Indenture Trustee, the Owner
Trustee, any Noteholder or any other Person 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 the foregoing shall not apply to any
breach of representations or warranties made by the Servicer herein, or to any specific liability imposed upon the Servicer pursuant to this Agreement or any liability that would otherwise be imposed upon the Servicer by reason of its willful
misconduct, bad faith or negligence in the performance of its duties hereunder or by reason of its failure to perform its obligations or duties hereunder. 
  
 (m) The Servicer further is authorized and empowered by the Indenture Trustee, on behalf of the Noteholders and the Indenture Trustee, when the Servicer
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 Indenture Trustee and the
Noteholders 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 Indenture Trustee and its successors and
assigns. Any expenses incurred in connection with the actions described in the preceding sentence shall be reimbursable to the Servicer as Servicing Advances. 
  

Section 5.02. Collection of Certain Mortgage Loan Payments; Collection Account. (a) The 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, follow Accepted Servicing Practices. Consistent with the foregoing, the Servicer may in its
discretion waive any assumption fees or other fees which may be collected in the ordinary course of servicing such Mortgage Loans. 
  
 (b) The Servicer shall establish and maintain, in the name of the Indenture Trustee, a segregated account (the “Collection Account”), in trust
for the benefit of the Noteholders. The Collection Account shall be established and maintained as an Eligible Account. 
  
 (c) The Servicer shall deposit in the Collection Account any amounts representing Monthly Payments on the Mortgage Loans due or to be applied as of a date
after the Cut-Off Date on each Business Day, not more than two Business Days after the date of collection, the following payments and collections received or made by it (other than in respect of monthly payments of principal on and interest of the
Mortgage Loans that were due on or before the related Cut-Off Date and Monthly Payments due on                 , 20    ): 

 
 (i) payments of interest on the Mortgage Loans including
Prepayment Charges; 
  
 (ii) payments of
principal of the Mortgage Loans, including Principal Prepayments; 
  
 (iii) the Loan Repurchase Price of Mortgage Loans repurchased pursuant to Sections 2.06(b) or 4.02; 
  

 29 

 (iv) the Substitution Adjustment received in connection with Mortgage Loans for which
Qualified Substitute Mortgage Loans are received pursuant to Sections 2.06 and 4.02; 
  
 (v) all Net REO Proceeds; 
  
 (vi) all Net Liquidation Proceeds; and 
  
 (vii) all Insurance Proceeds (including, for this purpose, any amounts required to be deposited by the Servicer pursuant to Section 5.04
hereof). 
  
 It is understood that the Servicer need not deposit
amounts representing fees, late payment charges or extension or other administrative charges (other than Prepayment Charges) payable by Mortgagors, or amounts received by the Servicer for the account of Mortgagors for application towards the payment
of taxes, insurance premiums, assessments and similar items or foreclosure proceeds to the extent payable to the related Mortgagor. 
  
 (d) The Servicer shall invest any funds in the Collection Account in Permitted Investments, which shall mature not later than the Business Day next
preceding the Servicer Remittance Date next following the date of such investment (except that any investment held by the Indenture Trustee may mature on such Servicer Remittance Date) and shall not be sold or disposed of prior to its maturity. All
net income and gain realized from any such investment shall be for the benefit of the Servicer and shall be subject to its withdrawal or order on a Servicer Remittance Date. The Servicer shall deposit from its own funds the amount of any loss, to
the extent not offset by investment income or earnings, in the Collection Account upon the realization of such loss. 
  
 Section 5.03. Permitted Withdrawals from the Collection Account. The Servicer may make withdrawals from the Collection Account, on or prior to any
Servicer Remittance Date, for the following purposes: 
  
 (a) to
pay to the Sponsor amounts received in respect of any Defective Mortgage Loan purchased or substituted for by the Sponsor to the extent that the payment of any such amounts on the Servicer Remittance Date upon which the proceeds of such purchase are
paid would make the total amount distributed in respect of any such Mortgage Loan on such Servicer Remittance Date greater than the Loan Repurchase Price or the Substitution Adjustment therefor; 
  
 (b) to reimburse the Servicer for unreimbursed Delinquency Advances and
unreimbursed Servicing Advances with respect to the Mortgage Loans for which it has made a Delinquency Advance or Servicing Advance, from late or deferred payments collected, collections other than timely Monthly Payments, Liquidation Proceeds
and/or the Loan Repurchase Price or Substitution Adjustment of or relating to such Mortgage Loans; 
  
 (c) to reimburse the Servicer for any Delinquency Advances and Servicing Advances determined in good faith to have become Nonrecoverable Advances, such
reimbursement to be made from any funds in the Collection Account; 
  

 30 

 (d) to withdraw any amount received from a Mortgagor that is recoverable and sought to be recovered as a
voidable preference by a trustee in bankruptcy pursuant to the Bankruptcy Code in accordance with a final, nonappealable order of a court having competent jurisdiction; 
  
 (e) to withdraw any funds deposited in the Collection Account that were not required to be deposited therein; 
  
 (f) to pay the Servicer the Servicing Compensation pursuant to Section 5.08
hereof to the extent not retained or paid; 
  
 (g) [Reserved];

  
 (h) without duplication, and solely out of amounts which are
payable to a former servicer pursuant to Section 7.02(g), to pay to the Indenture Trustee or any successor servicer amounts paid by them in connection with the transfer of the Servicer’s servicing obligations pursuant to Article VII hereof and
required under such Article VII to be borne by the Servicer; 
  
 (i) to withdraw income on the Collection Account as provided in Section 5.02(d); and 
  
 (j) amounts deposited into the Collection Account in respect of late fees, assumption fees and similar fees (other than Prepayment Charges). 
  
 The Servicer shall keep and maintain a separate accounting for each Mortgage Loan for the purpose of accounting for
withdrawals from the Collection Account pursuant to this Section 5.03. 
  
 Section 5.04. Hazard Insurance Policies; Property Protection Expenses. (a) The Servicer shall cause to be maintained with respect to each Mortgage Loan a hazard insurance policy with a carrier licensed in the state in which the
Mortgaged Property is located that provides for fire and extended coverage, and which provides for a recovery by the named insured of insurance proceeds relating to such Mortgage Loan in an amount not less than the least of (i) the outstanding
Principal Balance of the Mortgage Loan plus the outstanding principal balance of any mortgage loan senior to such Mortgage Loan, but in no event shall such amount be less than is necessary to prevent the Mortgagor from becoming a coinsurer
thereunder, (ii) the minimum amount required to compensate for loss or damage on a replacement cost basis and (iii) the full insurable value of the related Mortgage Property. The Servicer shall also maintain on property acquired upon foreclosure, or
by deed in lieu of foreclosure, hazard insurance with extended coverage in an amount which is at least equal to the lesser of (i) the maximum insurable value from time to time of the improvements which are a part of such property or (ii) the sum of
the Principal Balance of such Mortgage Loan and the principal balance of any mortgage loan senior to such Mortgage Loan at the time of such foreclosure plus accrued interest and the good-faith estimate of the Servicer of related Liquidation Expenses
to be incurred in connection therewith. Amounts collected by the Servicer under any such policies shall be deposited in the Collection Account to the extent that they constitute Liquidation Proceeds or Insurance Proceeds. Each hazard insurance
policy shall contain a standard mortgage clause naming the Servicer, its 

  

 31 

 
successors and assigns, as mortgagee. The Servicer shall be under no obligation to require that any Mortgagor maintain earthquake (except as provided herein)
or other additional insurance and shall be under no obligation itself to maintain any such additional insurance 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. 
  
 (b)
In the event that the Servicer shall obtain and maintain a blanket policy with an insurer which satisfies the corresponding requirements of Fannie Mae or Freddie Mac, insuring against fire, flood and hazards of extended coverage on all of the
Mortgage Loans, then, to the extent such policy names the Servicer as loss payee and provides coverage in an amount equal to the aggregate unpaid Principal Balance on the Mortgage Loans without co-insurance, and otherwise complies with the
requirements of this Section 5.04, the Servicer shall be deemed conclusively to have satisfied its obligations with respect to fire and hazard insurance coverage under this Section 5.04, it being understood and agreed that such blanket policy may
contain a deductible clause (payable by the Servicer), in which case the Servicer shall, in the event that there shall not have been maintained on the related Mortgaged Property a policy complying with the preceding paragraph of this Section 5.04,
and there shall have been a loss which would have been covered by such policy, deposit in the Collection Account from the Servicer’s own funds the difference, if any, between the amount that would have been payable under a policy complying with
the preceding paragraph of this Section 5.04 and the amount paid under such blanket policy. Upon the request of the Indenture Trustee, the Servicer shall cause to be delivered to the Indenture Trustee, a certified true copy of such policy.

  
 (c) If the Mortgage Loan at the time of origination relates to
a Mortgaged Property in an area identified in the Federal Register by the Federal Emergency Management Agency as having special flood hazards as designated to the Servicer by the Sponsor, the Servicer will cause to be maintained with respect thereto
a flood insurance policy in a form meeting the requirements of the current guidelines of the Federal Insurance Administration with a generally acceptable carrier in an amount representing coverage, and which provides for a recovery by the Servicer
on behalf of the Trust of insurance proceeds relating to such Mortgage Loan of not less than the least of (i) the outstanding Principal Balance of the related Mortgage Loan, plus the principal balance of the related first lien, if any, (ii) the
minimum amount required to compensate for damage or loss on a replacement cost basis and (iii) the maximum amount of insurance that is available under the Flood Disaster Protection Act of 1973. The Servicer shall indemnify the Trust out of the
Servicer’s own funds for any loss to the Trust resulting from the Servicer’s failure to maintain the insurance required by this Section. 
  
 Section 5.05. Assumption and Modification Agreements. When a Mortgaged Property has been or is about to be conveyed by the Mortgagor, the Servicer
shall, to the extent it has knowledge of such conveyance or prospective conveyance, exercise its rights to accelerate the maturity of the related Mortgage Loan under any “due-on-sale” clause contained in the related Mortgage or Mortgage
Note; provided, however, that the Servicer shall not exercise any such right if (i) the “due-on-sale” clause, in the reasonable belief of the Servicer, is not enforceable under applicable law or (ii) the Servicer reasonably
believes that to permit an assumption of the Mortgage Loan would not materially and adversely affect the interest of the Noteholders. In such event, the Servicer shall enter into an assumption and modification agreement with the Person to whom such
property has been or is about to be conveyed, pursuant to which such 

  

 32 

 
Person becomes liable under the Mortgage Note and, unless prohibited by applicable law or the mortgage documents, the Mortgagor remains liable thereon. If
the foregoing is not permitted under applicable law, the Servicer is authorized to enter into a substitution of liability agreement with such Person, pursuant to which the original Mortgagor is released from liability and such Person is substituted
as Mortgagor and becomes liable under the Mortgage Note. The Mortgage Loan, if assumed, shall conform in all respects to the requirements and representations and warranties of this Agreement. The Servicer shall notify the Indenture Trustee that any
applicable assumption or substitution agreement has been completed by forwarding to the Indenture Trustee the original copy of such assumption or substitution agreement, which copy shall be added by the Indenture Trustee to the related Indenture
Trustee’s Mortgage File and which shall, for all purposes, be considered a part of such Indenture Trustee’s Mortgage File to the same extent as all other documents and instruments constituting a part thereof. The Servicer shall be
responsible for promptly recording any such assumption or substitution agreements. In connection with any such assumption or substitution agreement, the required monthly payment on the related Mortgage Loan shall not be changed but shall remain as
in effect immediately prior to the assumption or substitution, the stated maturity or outstanding Principal Balance of such Mortgage Loan shall not be changed, the Mortgage Interest Rate shall not be changed nor shall any required monthly payments
of principal or interest be deferred or forgiven. Any fee collected by the Servicer for consenting to any such conveyance or entering into an assumption or substitution agreement shall be retained by or paid to the Servicer as additional servicing
compensation. 
  
 Notwithstanding the foregoing paragraph or any
other provision of this Agreement, the Servicer shall not be deemed to be in default, breach or any other violation of its obligations hereunder by reason of any assumption of a Mortgage Loan by operation of law or any assumption which the Servicer
may be restricted by law from preventing, for any reason whatsoever. 
  
 Section 5.06. Realization Upon Defaulted Mortgage Loans. (a) The Servicer shall foreclose upon or otherwise comparably effect the ownership on behalf of the Trust of Mortgaged Properties relating to defaulted Mortgage Loans as to
which no satisfactory arrangements can be made for collection of Delinquent payments and which the Sponsor has not purchased pursuant to Section 5.15, unless the Servicer reasonably believes that Net Liquidation Proceeds with respect to such
Mortgage Loan would not be increased as a result of such foreclosure or other action, in which case, such Mortgage Loan will be charged-off and will become a Liquidated Mortgage Loan. The Servicer shall have no obligation to purchase any Mortgaged
Property at any foreclosure sale. In connection with such foreclosure or other conversion, the Servicer shall exercise foreclosure procedures with the same degree of care and skill in their exercise or use, as it would ordinarily exercise or use
under the circumstances in the conduct of their own affairs. Any amounts including Liquidation Expenses, advanced by the Servicer in connection with such foreclosure or other action shall constitute Servicing Advances. 
  
 Pursuant to its efforts to sell any REO Property, the Servicer either itself
or through an agent selected by the Servicer shall manage, conserve, protect and operate such REO Property in the same manner and to such extent as is customary in the locality where such REO Property is located and may, incident to its conservation
and protection of the interests of the Servicer, rent the same, or any part thereof, as the Servicer deems to be in the best interest of the Trust for the period prior to the sale of such REO Property. The net income generated from the REO Property
and the proceeds from a sale of any REO Property shall be deposited in the Collection Account. 
  

 33 

 (b) If the Servicer has reason to believe that a Mortgaged Property which the Servicer is contemplating
acquiring in foreclosure or by deed in lieu of foreclosure contains environmental or hazardous waste risks known to the Servicer, the Servicer shall notify the Indenture Trustee prior to acquiring the Mortgaged Property. The Servicer shall not
institute foreclosure actions with respect to such a property if it reasonably believes that such action would not be consistent with the Accepted Servicing Practices, and in no event shall the Servicer be required to manage, operate or take any
other action with respect thereto which the Servicer in good faith believes will result in “clean-up” or other liability under applicable law, unless the Servicer receives an indemnity acceptable to it in its sole discretion. 

 
 (c) The Servicer shall determine, with respect to each defaulted Mortgage
Loan, when it has recovered, whether through trustee’s sale, foreclosure sale or otherwise, all amounts if any it expects to recover from or on account of such defaulted Mortgage Loan, whereupon such Mortgage Loan shall become a Liquidated
Mortgage Loan. 
  
 (d) Net Foreclosure Profits, if any, shall be
paid directly to the Sponsor. 
  
 (e) With respect to its
obligations under this Section 5.06, the Servicer shall take all such actions as it reasonably believes are consistent with Accepted Servicing Practices. 
  
 Section 5.07. Indenture Trustee to Cooperate. (a) Upon the payment in full of any Mortgage Loan or the receipt by the Servicer of a notification
that payment in full will be escrowed in a manner customary for such purposes, the Servicer shall deliver to the Indenture Trustee one copy of a Request for Release. Upon receipt of such copy of the Request for Release, the Indenture Trustee shall
promptly release the related Indenture Trustee’s Mortgage File, in trust to (i) the Servicer (ii) an escrow agent or (iii) any employee, agent or attorney of the Indenture Trustee, in each case pending its release by the Servicer, such escrow
agent or such employee, agent or attorney of the Indenture Trustee, as the case may be. Upon any such payment in full, or the receipt of such notification that such funds have been placed in escrow, the Servicer is authorized to give, as
attorney-in-fact for the Indenture Trustee and the mortgagee under the Mortgage which secured the Mortgage Note, an instrument of satisfaction (or assignment of Mortgage without recourse) regarding the Mortgaged Property relating to such Mortgage,
which instrument of satisfaction or assignment, as the case may be, shall be delivered to the Person or Persons entitled thereto against receipt therefor of payment in full, it being understood and agreed that no expense incurred in connection with
such instrument of satisfaction or assignment, as the case may be, shall be chargeable to the Collection Account. 
  
 (b) (i) From time to time and as appropriate in the servicing of any Mortgage Loan, including, without limitation, foreclosure or other comparable
conversion of a Mortgage Loan, the Indenture Trustee shall (except in the case of the payment or liquidation pursuant to which the related Indenture Trustee’s Mortgage File is released to an escrow agent or an employee, agent or attorney of the
Indenture Trustee), upon request of the Servicer and delivery to the Indenture Trustee of one copy of a Request for Release, release the related Indenture Trustee’s Mortgage File to the Servicer and shall execute such documents as shall be
necessary 

  

 34 

 
to the prosecution of any such proceedings, including, without limitation, an assignment without recourse of the related Mortgage to the Servicer. The
Indenture Trustee shall complete in the name of the Indenture Trustee any endorsement in blank on any Mortgage Note prior to releasing such Mortgage Note to the Servicer. Such receipt shall obligate the Servicer to return the Indenture
Trustee’s Mortgage File to the Indenture Trustee when the need therefor by the Servicer no longer exists unless the Mortgage Loan shall be liquidated, in which case, the Servicer shall deliver one copy of a Request for Release indicating such
loan has been paid in full. 
  
 (ii) Each Request
for Release may be delivered to the Indenture Trustee (x) via mail or courier, (y) via facsimile or (z) by such other means, including, without limitation, electronic or computer readable medium, as the Servicer and the Indenture Trustee shall
mutually agree. The Indenture Trustee shall promptly release the related Indenture Trustee’s Mortgage File(s) within five (5) Business Days of receipt of one copy of a properly completed Request for Release pursuant to clauses (x), (y) or (z)
above or such shorter period as may be agreed upon by the Servicer and the Indenture Trustee. Receipt of a Request for Release pursuant to clauses (x), (y) or (z) above shall be authorization to the Indenture Trustee to release such Indenture
Trustee’s Mortgage Files, provided the Indenture Trustee has determined that such Request for Release has been executed, with respect to clauses (x) or (y) above, or approved, with respect to clause (z) above, by a Servicing Officer of the
Servicer. If the Indenture Trustee is unable to release the Indenture Trustee’s Mortgage Files within the time frames previously specified, the Indenture Trustee shall immediately notify the Servicer, indicating the reason for such delay, but
in no event shall such notification be later than seven (7) Business Days after receipt of a Request for Release. If the Servicer, is required to pay penalties or damages due solely to the Indenture Trustee’s negligent failure to release the
related Indenture Trustee’s Mortgage File or the Indenture Trustee’s negligent failure to execute and release documents in a timely manner, the Indenture Trustee shall be liable for such penalties or damages. 
  
 (c) No costs associated with the procedures described in this Section 5.07
shall be an expense of the Trust or the Indenture Trustee and the Indenture Trustee shall have no liability or obligation whatsoever to pay or advance any such amounts, except for any penalties and damages as set forth in Section 5.07(b)(ii) above.

  
 Section 5.08. Servicing Compensation; Payment of Certain
Expenses by Servicer. The Servicer shall be entitled to receive and retain, out of collections on the Mortgage Loans for each Due Period, as servicing compensation for such Due Period, an amount (the “Servicing Fee”) equal to
the product of one-twelfth of the Servicing Fee Rate and the aggregate Stated Principal Balance of the Mortgage Loans in each Loan Group as of the beginning of such Due Period. Additional servicing compensation in the form of assumption fees, late
payment charges or extension and other administrative charges (other than Prepayment Charges) shall be retained by the Servicer. The Servicer shall be required to pay all expenses incurred by it in connection with its activities hereunder (including
payment of all other fees and expenses not expressly stated hereunder to be payable by or from another source) and shall not be entitled to reimbursement therefor except as specifically provided herein. 
  

 35 

 Section 5.09. Annual Statement as to Compliance. The Servicer will deliver to the Trust, the
Indenture Trustee, the Rating Agencies and the Sponsor on or before March 15 of each year, beginning March 15, 20    , an Officer’s Certificate of the Servicer stating that (a) a review of the activities of the
Servicer during the preceding calendar year and of its performance under this Agreement has been made under such officer’s supervision and (b) to the best of such officer’s knowledge, based on such review, the Servicer has fulfilled all
its material obligations under this Agreement throughout such year, or, if there has been a default in the fulfillment of any such obligation, specifying each such default known to such officer and the nature and status thereof. 
  
 Section 5.10. Annual Independent Public Accountants’ Servicing
Report. On or before March 15 of each year, beginning March 15, 20    , the Servicer at its expense shall cause a firm of independent public accountants that is a member of the American Institute of Certified Public
Accountants (who may also render other services to the Servicer) to furnish a report to the Trust, the Indenture Trustee, the Rating Agencies and the Sponsor to the effect that such firm has examined certain documents and records relating to the
servicing of mortgage loans under servicing agreements (including this Agreement) substantially similar to this Agreement, and that such examination, which has been conducted substantially in compliance with the Uniform Single Attestation Program
for Mortgage Bankers or the Audit Guide for Audits of HUD Approved Nonsupervised Mortgagees (to the extent that the procedures in such audit guide are applicable to the servicing obligations set forth in such agreements), has disclosed no items of
noncompliance with the provisions of this Agreement which, in the opinion of such firm, are material, except for such items of noncompliance as shall be set forth in such report. 
  
 Section 5.11. Access to Certain Documentation. The Servicer shall provide to the Indenture Trustee, the FDIC and the
supervisory agents and examiners (as required in the latter case by applicable State and federal regulations) of each of the foregoing access to the documentation regarding the Mortgage Loans, such access being afforded without charge but only upon
reasonable request and during normal business hours at the offices of the Servicer designated by it. 
  
 Upon any change in the format of the computer tape maintained by the Servicer in respect of the Mortgage Loans, the Servicer shall deliver a copy of such
computer tape to the Indenture Trustee and in addition shall provide a copy of such computer tape to the Indenture Trustee at such other times as the Indenture Trustee may reasonably request. 
  
 The Servicer shall keep confidential (including from affiliates thereof)
information concerning the Mortgage Loans, except as required by law. 
  
 Section 5.12. Maintenance of Fidelity Bond. The Servicer shall, during the term of its service as Servicer maintain in force a fidelity bond and errors and omissions insurance in respect of its officers, employees or agents. Such
bond and insurance shall comply with the requirements from time to time of Fannie Mae or Freddie Mac for Persons performing servicing for mortgage loans purchased by such association. 
  
 Section 5.13. Subservicing Agreements Between the Servicer and Subservicer and Subservicers. (a) The Servicer may
enter into subservicing agreements for any servicing and administration of Mortgage Loans with any institution which is in compliance with the laws of 

  

 36 

 
each state necessary to enable it to perform its obligations under such subservicing agreement. The Servicer shall give notice to the Indenture Trustee of
the appointment of any subservicer and shall furnish to the Indenture Trustee a copy of the subservicing agreement. The Servicer shall give notice to each Rating Agency of the appointment of any subservicer. For purposes of this Agreement, the
Servicer shall be deemed to have received payments on Mortgage Loans when any subservicer has received such payments. Any such subservicing agreement shall be consistent with and not violate the provisions of this Agreement. 
  
 (b) The Servicer may terminate any subservicing agreement in accordance with
the terms and conditions of such subservicing agreement and thereafter directly service the related Mortgage Loans itself or enter into a subservicing agreement with a successor subservicer that qualifies under Subsection (a) of this Section 5.13.
The Servicer shall give notice to each Rating Agency of the termination of any subservicer and the appointment of any successor subservicer. 
  
 (c) The Servicer shall not be relieved of its obligations under this Agreement notwithstanding any subservicing agreement or any of the provisions of this
Agreement relating to agreements or arrangements between the Servicer and a subservicer or otherwise, and the Servicer shall be obligated to the same extent and under the same terms and conditions as if it alone were servicing and administering the
Mortgage Loans. The Servicer shall be entitled to enter into any agreement with a subservicer for indemnification of the Servicer by such subservicer and nothing contained in such subservicing agreement shall be deemed to limit or modify this
Agreement. The Trust shall not indemnify the Servicer for any losses due to the Servicer’s negligence. 
  
 (d) Any subservicing agreement and any other transactions or services relating to the Mortgage Loans involving a subservicer shall be deemed to be between
the subservicer and the Servicer alone and the Indenture Trustee and the Noteholders shall not be deemed parties thereto and shall have no claims, rights, obligations, duties or liabilities with respect to any Subservicer except as set forth in
Subsection (e) of this Section 5.13 and the related Subservicing Agreement. 
  
 (e) Notwithstanding any contrary provision contained herein, in connection with the assumption of the responsibilities, duties and liabilities and of the authority, power and rights of the Servicer hereunder by the
Indenture Trustee or any other successor servicer pursuant to Section 7.02, it is understood and agreed that the Servicer’s rights and obligations under any subservicing agreement then in force between the Servicer and a subservicer may be
assumed or terminated (without cost) by the Indenture Trustee or any other successor servicer at its option as successor to the Servicer. 
  
 The Servicer shall, upon request of the Indenture Trustee, but at the expense of the Servicer, deliver to the assuming party documents and records
relating to each subservicing agreement and an accounting of amounts collected and held by it and otherwise use its best reasonable efforts to effect the orderly and efficient transfer of the subservicing agreements to the assuming party, without
the payment of any fee by the Indenture Trustee, any Noteholders, notwithstanding any contrary provision in any subservicing agreement. 
  

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 Section 5.14. Reports to the Indenture Trustee; Collection Account Statements. Not later than
twenty-five (25) days after each Payment Date, the Servicer shall provide to the Indenture Trustee a statement, certified by a Servicing Officer, setting forth the status of the Collection Account as of the close of business on the last day of the
Due Period preceding such Payment Date, stating that all payments required by this Agreement to be made by the Servicer on behalf of the Indenture Trustee have been made (or if any required payment has not been made by the Servicer, specifying the
nature and status thereof) and showing, for the period covered by such statement, the aggregate of deposits into and withdrawals from the Collection Account and the aggregate of deposits into the Payment Account as specified in Section 6.01. Such
statement shall also state the aggregate Stated Principal Balance and the aggregate unpaid principal balance of all the Mortgage Loans as of the close of business on the last day of the month preceding the month in which such Payment Date occurs.

  
 Section 5.15. Optional Purchase of Defaulted Mortgage
Loans. (a) The Seller, in its sole discretion, shall have the right to elect (by written notice sent to the Servicer and the Indenture Trustee), but shall not be obligated, to purchase for its own account from the Trust any Mortgage Loan which
is ninety (90) days or more Delinquent in the manner at the Loan Repurchase Price (except that the amount described in the definition of Loan Repurchase Price shall in no case be net of the Servicing Fee). The purchase price for any Mortgage Loan
purchased hereunder shall be deposited in the Collection Account and the Indenture Trustee, upon the Indenture Trustee’s receipt of written notice by the Servicer of such deposit, shall release or cause to be released to the purchaser of such
Mortgage Loan the related Indenture Trustee’s Mortgage File and shall execute and deliver such instruments of transfer or assignment prepared by the purchaser of such Mortgage Loan, in each case without recourse, as shall be necessary to vest
in the purchaser of such Mortgage Loan any Mortgage Loan released pursuant hereto and the purchaser of such Mortgage Loan shall succeed to all the Indenture Trustee’s right, title and interest in and to such Mortgage Loan and all security and
documents related thereto. Such assignment shall be an assignment outright and not for security. The purchaser of such Mortgage Loan shall thereupon own such Mortgage Loan, and all security and documents, free of any further obligation to the
Indenture Trustee or the Noteholders with respect thereto. 
  
 (b)
After the Seller or its Affiliate has repurchased any Mortgage Loans which are 90 days or more Delinquent in an aggregate amount equal to 1% of the Maximum Collateral Amount, then notwithstanding the foregoing, the Seller or its Affiliate may only
exercise its option pursuant to this Section 5.15 with respect to the Mortgage Loan or Mortgage Loans (including REO Mortgage Loans) that have been Delinquent for the longest period at the time of such repurchase. 
  
 (c) The Seller may not repurchase pursuant to this Section 5.15 more than 10%
of the Mortgage Loans, measured by the outstanding Principal Balance of the Mortgage Loans repurchased as a percentage of the Initial Pool Balance. 
  
 Section 5.16. Reports to be Provided by the Servicer. (a) By 3:00 p.m. eastern time on the second Business Day following the fifteenth (15th) day
of each month (the “Servicer Reporting Date”), the Servicer shall deliver to the Indenture Trustee, the Underwriter, Intex and Bloomberg a Servicer Remittance Report for the related Servicer Remittance Date in an electronic format
reporting on a loan-by-loan basis in such format as the Servicer and the 

  

 38 

 
Indenture Trustee may agree, and setting forth the following information with respect to all Mortgage Loans as well as a break out as to each Loan Group as
of the close of business on the last Business Day of the prior calendar month (except as otherwise provided in clause (v) below): 
  
 (i) the total number of Mortgage Loans and the Aggregate Principal Balances thereof, together with the number, Aggregate Principal
Balances of such Mortgage Loans and the percentage (based on the Aggregate Principal Balances of the Mortgage Loans) of the Aggregate Principal Balances of such Mortgage Loans to the Aggregate Principal Balance of all Mortgage Loans (A) 31-60 days
Delinquent, (B) 61-90 days Delinquent and (C) 91 or more days Delinquent; 
  
 (ii) the number, Aggregate Principal Balances of all Mortgage Loans and percentage (based on the Aggregate Principal Balances of the Mortgage Loans) of the Aggregate Principal Balances of such Mortgage Loans to the
Aggregate Principal Balance of all Mortgage Loans in foreclosure proceedings and the number, Aggregate Principal Balances of all Mortgage Loans and percentage (based on the Aggregate Principal Balances of the Mortgage Loans) of any such Mortgage
Loans also included in any of the statistics described in the foregoing clause (i); 
  
 (iii) the number, Aggregate Principal Balances of all Mortgage Loans and percentage (based on the Aggregate Principal Balances of the
Mortgage Loans) of the Aggregate Principal Balances of such Mortgage Loans to the Aggregate Principal Balance of all Mortgage Loans relating to Mortgagors in bankruptcy proceedings and the number, Aggregate Principal Balances of all Mortgage Loans
and percentage (based on the Aggregate Principal Balances of the Mortgage Loans) of any such Mortgage Loans also included in any of the statistics described in the foregoing clause (i); 
  
 (iv) the number, Aggregate Principal Balances of all Mortgage Loans and percentage (based on the Aggregate
Principal Balances of the Mortgage Loans) of the Aggregate Principal Balances of such Mortgage Loans to the Aggregate Principal Balance of all Mortgage Loans relating to REO Properties and the number, Aggregate Principal Balances of all Mortgage
Loans and percentage (based on the Aggregate Principal Balances of the Mortgage Loans) of any such Mortgage Loans also included in any of the statistics described in the foregoing clause (i); 
  
 (v) the weighted average Mortgage Interest Rate for the
Mortgage Loans in Loan Group I and Loan Group II, in each case, as of the Due Date occurring in the Due Period related to such Payment Date; 
  
 (vi) the weighted average remaining term to stated maturity of all Mortgage Loans; 
  
 (vii) the book value of any REO Property; 
  
 (viii) the Cumulative Realized Loss Percentage and the
Rolling Six Month Delinquency Ratio as of the related Payment Date; 
  

 39 

 (ix) with respect to each Monthly Payment, the amount of such remittance allocable to
principal (including a separate breakdown of any Principal Prepayment, including the date of such prepayment, and any Prepayment Charges); 
  
 (x) with respect to each Monthly Payment, the amount of such remittance allocable to interest; 
  
 (xi) the number and the Aggregate Principal Balance of
Mortgage Loans repurchased pursuant to Section 5.15; and 
  
 (xii) such other loan level information as either the Indenture Trustee may reasonably request to enable it to prepare the Indenture Trustee’s Remittance Report. 
  
 (b) [Reserved.] 
  
 (c) [Reserved.] 
  
 Section 5.17. [Reserved.] 
  
 Section 5.18. Delinquency Advances. If, on any Servicer Remittance Date, the Servicer determines that any Monthly Payments due during the related
Due Period have not been received as of the end of the related Due Period, the Servicer shall determine the amount of any Delinquency Advance required to be made with respect to the related Payment Date. The Servicer shall include in the amount to
be deposited in the Payment Account on such Servicer Remittance Date an amount equal to the Delinquency Advance, if any, which deposit may be made in whole or in part from funds in the Collection Account being held for future payment or withdrawal
on or in connection with Payment Dates in subsequent months, other than any such amounts which are voluntary Principal Prepayments in full. Any funds being held for future payment to Noteholders and so used shall be replaced by the Servicer from its
own funds by deposit in the Collection Account on or before the Business Day preceding any future Servicer Remittance Date to the extent that funds in the Collection Account on such Servicer Remittance Date shall be less than the Servicer Remittance
Amount for such Payment Date. 
  
 The Servicer shall designate on
its records the specific Mortgage Loans and related installments (or portions thereof) as to which such Delinquency Advance shall be deemed to have been made, such determination being conclusive for purposes of withdrawals from the Collection
Account pursuant to Section 5.03 hereof. 
  
 Section 5.19.
Indemnification; Third Party Claims. The Servicer agrees to indemnify and to hold each of the Trust, the Owner Trustee, the Seller, the Sponsor, the Indenture Trustee and each Noteholder harmless against any and all claims, losses, penalties,
fines, forfeitures, legal fees and related costs, judgments, and any other costs, fees and expenses (including attorneys’ fees and expenses) that the Trust, the Owner Trustee, the Seller, the Sponsor, the Indenture Trustee and any Noteholder
(or any director, officer, employee or agent of the foregoing) may sustain in any way related to the failure of the Servicer to perform its duties and service the Mortgage Loans in compliance with the terms of this Agreement and the other Basic
Documents and in connection with the Indenture as provided in Section 6.16 thereof. Each indemnified party and the Servicer shall immediately notify the other indemnified parties if a 

  

 40 

 
claim is made by a third party with respect to this Agreement and the other Basic Documents and the Servicer shall assume the defense of any such claim and
pay all expenses in connection therewith, including reasonable counsel fees, and promptly pay, discharge and satisfy any judgment or decree which may be entered against the Trust, the Owner Trustee, the Seller, the Sponsor, the Servicer, the
Indenture Trustee and/or a Noteholder (or any director, officer, employee or agent of the foregoing) in respect of such claim. The obligations of the Servicer under this Section 5.19 arising prior to any resignation or termination of the Servicer
hereunder shall survive the resignation or termination of the Servicer or the termination of this Agreement or the Indenture. 
  
 Section 5.20. Maintenance of Corporate Existence and Licenses; Merger or Consolidation of the Servicer. (a) The Servicer will keep in full effect
its existence, rights and franchises as a corporation, will obtain and preserve its qualification to do business as a foreign corporation in each jurisdiction necessary to protect the validity and enforceability of this Agreement or any of the
Mortgage Loans and to perform its duties under this Agreement and will otherwise operate its business so as to cause the representations and warranties under Section 3.01 hereof to be true and correct at all times under this Agreement. 

 
 (b) Any corporation into which the Servicer may be merged or converted or
with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Servicer shall be a party, or any corporation succeeding to all or substantially all of the business of the Servicer, shall be
the successor of the Servicer, hereunder, without the execution or filing of any paper or any further act on the part of any of the parties hereto provided that, such corporation meets the qualifications set forth in Section 7.02(b). The Servicer,
as applicable, shall send notice of any such merger or consolidation to the Owner Trustee, the Indenture Trustee and the Servicer, as applicable. 
  
 Section 5.21. Assignment of Agreement by Servicer; Servicer Not to Resign. The Servicer shall not assign this Agreement nor resign from the
obligations and duties hereby imposed on it except upon the determination that the Servicer’s duties hereunder are no longer permissible under applicable law and that such incapacity cannot be cured by the Servicer, without incurring
unreasonable expense. Any such determination that the Servicer’s duties hereunder are no longer permissible under applicable law permitting the resignation of the Servicer, as applicable, shall be evidenced by a written Opinion of Counsel (who
may be counsel for the Servicer) to such effect delivered to the Indenture Trustee, the Trust, the Seller, the Sponsor and the Servicer, as applicable. No such resignation of the Servicer shall become effective until a successor servicer appointed
in accordance with the terms of this Agreement has assumed the Servicer’s responsibilities and obligations hereunder in accordance with Section 7.02. The Servicer shall provide the Indenture Trustee and the Rating Agencies with 30 days’
prior written notice of its intention to resign pursuant to this Section 5.21. 
  
 Section 5.22. Periodic Filings with the Securities and Exchange Commission Additional Information. 
  
 (a) The Indenture Trustee shall reasonably cooperate with the Servicer in connection with the satisfaction of the reporting requirements under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Indenture Trustee shall prepare on behalf of the 

  

 41 

 
Trust Fund any Forms 8-K and 10-K customary for similar securities as required by the Exchange Act and the Rules and Regulations of the Securities and
Exchange Commission (the “Commission”) thereunder, and shall file (via the Commission’s Electronic Data Gathering and Retrieval System) such Forms on behalf of the Servicer. The Servicer hereby grants to the Indenture Trustee a
limited power of attorney to execute and file each such Form 8-K but only to the extent no accompanying certification is required to be filed on behalf of the Servicer. Such power of attorney shall continue until the earlier of (i) receipt by the
Indenture Trustee from the Servicer of written termination of such power of attorney and (ii) termination of the Trust Fund. The Servicer shall execute the Form 10-Ks. The Indenture Trustee shall have no liability with respect to any failure to
properly prepare or file such periodic reports resulting from or relating to the Indenture Trustee’s inability or failure to obtain any information not resulting from its own negligence or willful misconduct. 
  
 (b) Each Form 8-K shall be filed by the Indenture Trustee within 15 days
after each Payment Date, with a copy of the Indenture Trustee’s Remittance Report for such Payment Date as an exhibit thereto. Prior to March 30th of each year (or such earlier date as may be required by the Exchange Act and the Rules and
Regulations of the Commission) commencing with 20    , the Indenture Trustee shall file a Form 10-K, in substance as required by applicable law or the Commission’s staff interpretations. Such Form 10-K shall include
as exhibits the Servicer’s annual statement of compliance described under Section 5.09 and the accountant’s report described under Section 5.10, in each case to the extent they have been timely delivered to the Indenture Trustee. If they
are not so timely delivered, the Indenture Trustee shall file the incomplete Form 10-K, together with a Form 12b-25, and thereafter shall file an amended Form 10-K including such documents as exhibits reasonably promptly after they are delivered to
the Indenture Trustee. The Indenture Trustee shall have no liability with respect to any failure to properly prepare or file such periodic reports resulting from or relating to the Indenture Trustee’s inability or failure to obtain any
information not resulting from its own negligence or willful misconduct. The Form 10-K shall also include a certification in the form attached hereto as Exhibit G (the “Certification”), which shall be signed by the senior officer of
the Servicer in charge of securitization. The Indenture Trustee shall prepare and deliver each Form 10-K to the Servicer for execution no later than March 20th of each year. The Servicer shall return the executed Form 10-K and the Certification to
the Indenture Trustee for filing no later than March 25th of each year. 
  
 (c) The Servicer shall indemnify and hold harmless the Indenture Trustee and its officers, directors and affiliates from and against any losses, damages, penalties, fines, forfeitures, reasonable and necessary legal fees and related costs,
judgments and other costs and expenses arising out of or based upon a breach of the Servicer’s obligations under this Section or the Sponsor’s negligence, bad faith or willful misconduct in connection therewith. 
  
 (d) Upon any filing with the Commission, the Indenture Trustee shall promptly
deliver to the Servicer a copy of any executed report, statement or information. 
  
 (e) The Indenture Trustee shall prepare and file a voluntary suspension of filing on Form 15 as soon as it is permitted to do so under the Exchange Act and the rules and regulations of the Commission. 
  

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 Section 5.23. Administrative Duties. (a) Duties with Respect to the Basic Documents. The
Servicer shall perform all its duties and the duties of the Trust under the Basic Documents. In addition, the Servicer shall consult with the Owner Trustee as the Servicer deems appropriate regarding the duties of the Trust under the Basic
Documents. The Servicer shall monitor the performance of the Trust and shall advise the Owner Trustee when action is necessary to comply with the Trust’s duties under the Basic Documents. The Servicer shall prepare for execution by the Trust or
shall cause the preparation by other appropriate Persons of all such documents, reports, filings, instruments, certificates and opinions as it shall be the duty of the Trust to prepare, file or deliver pursuant to the Basic Documents. In furtherance
of the foregoing, the Servicer shall take all necessary action that is the duty of the Trust to take pursuant to the Basic Documents. 
  
 (b) Duties with Respect to the Trust. In addition to the duties of the Servicer set forth in this Agreement or any of the Basic Documents, the
Servicer shall perform such calculations and shall prepare for execution by the Trust or the Owner Trustee or shall cause the preparation by other appropriate Persons of all such documents, reports, filings, instruments, certificates and opinions as
it shall be the duty of the Trust or the Owner Trustee to prepare, file or deliver pursuant to this Agreement or any of the Basic Documents or under state and federal tax and securities laws and shall take all appropriate action that it is the duty
of the Trust to take pursuant to this Agreement or any of the Basic Documents. In accordance with the directions of the Trust or the Owner Trustee, the Servicer shall administer, perform, or supervise the performance of such other activities in
connection with the Basic Documents as are not covered by any of the foregoing provisions and as are expressly requested by the Trust or the Owner Trustee and are reasonably within the capability of the Servicer. 
  
 In carrying out the foregoing duties under this Agreement, the Servicer may
enter into transactions with or otherwise deal with any of its Affiliates; provided, however, that the terms of any such transactions or dealings shall be in accordance with any directions received from the Trust and shall be, in the Servicer’s
opinion, no less favorable to the Trust in any material respect. 
  
 (c) Additional Information to be Furnished to the Issuer. The Servicer shall furnish to the Owner Trustee from time to time such additional information regarding the Trust or the Basic Documents as the Owner Trustee shall reasonably
request. The Servicer shall prepare, execute and deliver all certificates or other documents required to be delivered by the Issuer pursuant to the Sarbanes-Oxley Act of 2002 or the rules and regulations promulgated thereunder. 
  
 Section 5.24. Advance Facility. 
  
 (a) The Servicer on behalf of the Trust, is hereby authorized to enter into
a facility (such an arrangement, an “Advance Facility”) with any Person which provides that such Person (an “Advancing Person”) may fund Delinquency Advances and/or Servicing Advances under this Agreement, although no such
facility shall reduce or otherwise affect the Servicer’s obligation to fund such Delinquency Advances and/or Servicing Advances. No consent of the Indenture Trustee, Noteholders or any other party shall be required before the Servicer may enter
into an Advance Facility nor shall the Indenture Trustee or the Noteholders be a third party 

  

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beneficiary of any obligation of an Advancing Person to the Servicer. If the Servicer enters into an Advance Facility, the Servicer and the related Advancing
Person shall deliver to the Indenture Trustee at the address set forth in Section 10.06 hereof a written notice (an “Advance Facility Notice”), stating (a) the identity of the Advancing Person and (b) the identity of the Person (the
“Servicer’s Assignee”) that will, subject to Section 5.24(b) hereof, have the right to make withdrawals from the Collection Account pursuant to Section 5.03(b) hereof to reimburse previously unreimbursed Delinquency Advances and/or
Servicing Advances (“Advance Reimbursement Amounts”). If the Servicer enters into such an Advance Facility pursuant to this Section 5.24, upon reasonable request of the Advancing Person, the Indenture Trustee shall execute a letter of
acknowledgment, as prepared by the Servicer confirming its receipt of written notice of the existence of such Advance Facility. To the extent that an Advancing Person purchases or funds any Delinquency Advance or any Servicing Advance and provides
the Indenture Trustee with written notice acknowledged by the Servicer that such Advancing Person is entitled to reimbursement directly from the Indenture Trustee pursuant to the terms of the Advance Facility, such Advancing Person shall be entitled
to receive reimbursement pursuant to this Agreement for such amount to the extent provided in Section 5.24(b). Such notice from the Advancing Person must specify the amount of the reimbursement, the Section of this Agreement that permits the
applicable Delinquency Advance or Servicing Advance to be reimbursed and the section(s) of the Advance Facility that entitle the Advancing Person to request reimbursement from the Indenture Trustee, rather than the Servicer, and include the
Servicer’s acknowledgment thereto or proof of an Event of Default under the Advance Facility. The Indenture Trustee shall have no duty or liability with respect to any calculation of any reimbursement to be paid to an Advancing Person and shall
be entitled to rely without independent investigation on the Advancing Person’s notice provided pursuant to this Section 5.24. For the avoidance of doubt, an Advancing Person whose obligations under the Advance Facility are limited to the
funding of Delinquency Advances and/or Servicing Advances shall not be considered to be a subservicer hereunder. 
  
 (b) Notwithstanding the foregoing, and for the avoidance of doubt, (i) the Servicer and/or the Servicer’s Assignee shall only be entitled to
reimbursement of Delinquency Advance reimbursement amounts hereunder from withdrawals from the Collection Account pursuant to Section 5.03(b) and (c) of this Agreement and shall not otherwise be entitled to make withdrawals or receive amounts that
shall be deposited in the Payment Account, and (ii) none of the Indenture Trustee or the Noteholders shall have any right to, or otherwise be entitled to, receive any Delinquency Advance reimbursement amounts to which the Servicer or Servicer’s
Assignee, as applicable, shall be entitled pursuant to Section 5.03(b) and (c) hereof. An Advance Facility may be terminated by the joint written direction of the Servicer and the related Advancing Person. Written notice of such termination shall be
delivered to the Indenture Trustee in the manner set forth in Section 10.06 hereof. Neither the Trust nor the Indenture Trustee shall, as a result of the existence of any Advance Facility, have any additional duty or liability with respect to the
calculation or payment of any Delinquency Advance reimbursement amount, nor, as a result of the existence of any Advance Facility, shall the Trust or the Indenture Trustee have any additional responsibility to track or monitor the administration of
the Advance Facility or the payment of Delinquency Advance reimbursement amounts to the Servicer’s Assignee. The Servicer shall indemnify the Indenture Trustee, any successor Servicer and the Trust for any claim, loss, liability or damage
resulting from any claim by the related Advancing Person, except to the extent that such claim, loss, liability or damage resulted from or arose out 

  

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of negligence, recklessness or willful misconduct on the part of the Indenture Trustee or any successor Servicer, as the case may be, or failure by the
successor Servicer to remit funds as required by this Agreement or the commission of an act or omission to act by the successor Servicer and the passage of any applicable cure or grace period, such that an Event of Default under this Agreement
occurs or such entity is subject to termination for cause under this Agreement. The Servicer shall maintain and provide to any successor Servicer and, upon request, the Indenture Trustee a detailed accounting on a loan-by-loan basis as to amounts
advanced by, pledged or assigned to, and reimbursed to any Advancing Person. The successor Servicer and the Indenture Trustee, as applicable, shall be entitled to rely on any such information provided by the predecessor Servicer, and the successor
Servicer and the Indenture Trustee, as applicable, shall not be liable for any errors in such information. 
  
 (c) If an Advancing Person is entitled to reimbursement for any particular Delinquency Advance or Servicing Advance as set forth in Section 5.24(a), then
the Servicer shall not be permitted to reimburse itself therefor under Section 5.03(b) and (c), but instead the Servicer shall include such amounts in the applicable remittance to the Indenture Trustee made pursuant to Section 5.02 to the extent of
amounts on deposit in the Collection Account on the related Servicer Remittance Date. The Indenture Trustee is hereby authorized to pay to an Advancing Person reimbursements for Delinquency Advances and Servicing Advances from the Payment Account to
the same extent the Servicer would have been permitted to reimburse itself for such Delinquency Advances and/or Servicing Advances in accordance with Section 5.03(b) and (c), had the Servicer made such Delinquency Advance or Servicing Advance.

  
 (d) All Delinquency Advances and Servicing Advances made
pursuant to the terms of this Agreement shall be deemed made and shall be reimbursed on a “first in first out” (FIFO) basis. In the event the Servicer’s Assignee shall have received some or all of an Delinquency Advance reimbursement
amount related to Delinquency Advances and/or Servicing Advances that were made by a Person other than the Servicer or its related Advancing Person in error, then such Servicer’s Assignee shall be required to remit any portion of such
Delinquency Advance reimbursement amount to each Person entitled to such portion of such Delinquency Advance reimbursement amount. Without limiting the generality of the foregoing, the Servicer shall remain entitled to be reimbursed pursuant to
Section 5.03(b) and (c) for all Delinquency Advances and/or Servicing Advances funded by the Servicer to the extent the related Delinquency Advance reimbursement amounts have not been assigned, sold or pledged to such Advancing Person or
Servicer’s Assignee. 
  
 (e) In the event the Servicer is
terminated pursuant to Section 7.01, the Advancing Person shall succeed to the terminated Servicer’s right of reimbursement set forth in Section 5.03(b) and (c) to the extent of such Advancing Person’s financing of Delinquency Advances or
Servicing Advances hereunder then remaining unreimbursed. 
  
 (f)
Any amendment to this Section 5.24 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 5.24, including amendments to add provisions
relating to a successor Servicer, may be entered into by the Indenture Trustee, the Sponsor, the Seller, the Trust and the Servicer without the consent of any Noteholder, provided such amendment complies with Section 10.03 hereof. All reasonable
costs and expenses (including attorneys’ 

  

 45 

 
fees) of each party hereto of any such amendment shall be borne solely by the Servicer. The parties hereto hereby acknowledge and agree that: (a) the
Delinquency Advances and/or Servicing Advances financed by, sold and/or pledged to an Advancing Person under any Advance Facility are obligations owed to the Servicer payable only from the cash flows and proceeds received under this Agreement for
reimbursement of Delinquency Advances and/or Servicing Advances only to the extent provided herein, and the Indenture Trustee and the Trust are not, as a result of the existence of any Advance Facility, obligated or liable to repay any Delinquency
Advances and/or Servicing Advances financed by the Advancing Person; (b) the Servicer will be responsible for remitting to the Advancing Person the applicable amounts collected by it as reimbursement for Delinquency Advances and/or Servicing
Advances purchased or funded by the Advancing Person, subject to the provisions of this Agreement; and (c) the Indenture Trustee shall not have any responsibility to track or monitor the administration of the financing arrangement between the
Servicer and any Advancing Person. 
  
 ARTICLE VI

  
 APPLICATION OF FUNDS 
  
 Section 6.01. Deposits to the Payment Account. By 12:00 noon (Eastern
Time) on each Servicer Remittance Date, the Servicer shall remit to the Indenture Trustee for deposit in the Payment Account, from funds on deposit in the Collection Account, an amount equal to the Servicer Remittance Amount with respect to the
related Payment Date, minus any portion thereof payable to the Servicer pursuant to Section 5.03. 
  
 Section 6.02. Collection of Money. Except as otherwise expressly provided herein, the Indenture Trustee may demand payment or delivery of all money
and other property payable to or receivable by the Indenture Trustee pursuant to this Agreement, including all payments due on the Mortgage Loans in accordance with the respective terms and conditions of such Mortgage Loans and required to be paid
over to the Indenture Trustee by the Servicer. The Indenture Trustee shall hold all such money and property received by it, as part of the Trust Estate and shall apply it as provided in the Indenture. 
  
 Section 6.03. Application of Principal and Interest. In the event that
Net Liquidation Proceeds on a Liquidated Mortgage Loan are less than the Principal Balance of the related Mortgage Loan plus accrued interest thereon, or any Mortgagor makes a partial payment of any Monthly Payment due on a Mortgage Loan, such Net
Liquidation Proceeds or partial payment shall be applied to payment of the related Mortgage Note as provided therein, and if not so provided, first to interest accrued at the Mortgage Interest Rate and then to principal. 
  
 Section 6.04. [Reserved.] 
  
 Section 6.05. Compensating Interest. Not later than the Servicer
Remittance Date, the Servicer shall remit to the Indenture Trustee (without right to reimbursement therefor) for deposit into the Payment Account, an amount equal to, for all of the Mortgage Loans, the lesser of (a) the Prepayment Interest
Shortfalls for all of the Mortgage Loans for the related Payment Date resulting from Principal Prepayments in full during the related Prepayment Period and (b) its aggregate Servicing Fee with respect to all of the Mortgage Loans for the related Due
Period (the “Compensating Interest”). 
  

 46 

 Section 6.06. [Reserved.] 
  
 ARTICLE VII 
  
 SERVICER DEFAULT 
  
 Section 7.01. Servicer Events of Default. (a) The following events shall each constitute a “Servicer Event of Default” hereunder:

  
 (i) any failure by the Servicer to remit to
the Indenture Trustee any payment required to be made by the Servicer under the terms of this Agreement (other than Servicing Advances covered by clause (ii) below and Delinquency Advances, which shall have no cure period), which continues
unremedied for one (1) Business Day after the date upon which notice of such failure, requiring the same to be remedied, shall have been given to the Servicer by the Indenture Trustee or to the Servicer and Indenture Trustee by the Noteholders
affected thereby evidencing Percentage Interests of at least 25%; provided however that any failed remittance cured within one Business Day of such failure shall include interest accrued at the Prime Rate (as set forth in the Wall Street Journal) on
the amount of such remittance from and including the date the remittance was required to be made to and including the date the remittance was actually made; 
  
 (ii) the failure by the Servicer to make any required Servicing Advance, which failure continues unremedied for a period of thirty (30)
days after the date on which written notice of such failure, requiring the same to be remedied, shall have been given to the Servicer by the Indenture Trustee or to the Servicer and the Indenture Trustee by the Noteholders affected thereby
evidencing Percentage Interests of at least 25%; 
  
 (iii) any failure on the part of the Servicer duly to observe or perform in any material respect any other of the covenants or agreements on the part of the Servicer contained in this Agreement, or the failure of any representation and
warranty made pursuant to Section 3.01(a) hereof to be true and correct which continues unremedied for a period of thirty (30) days after the date on which written notice of such failure, requiring the same to be remedied, shall have been given to
the Servicer by the Indenture Trustee or to the Servicer and the Indenture Trustee by the Noteholders affected thereby evidencing Percentage Interests of at least 25%; 
  
 (iv) a decree or order of a court or agency or supervisory authority having jurisdiction in an involuntary
case under any present or future federal or state bankruptcy, insolvency or similar law or for the appointment of a conservator or receiver or liquidation 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 Servicer and such decree or order shall have remained in force, undischarged or unstayed for a period of ninety (90) days; 
  

 47 

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

  
 (vii) if on any Payment Date the Rolling Six
Month Delinquency Ratio exceeds     %; 
  
 (viii) if on any Payment Date, the Cumulative Realized Loss Percentage exceeds the following percentages on any Payment Date during the following periods: 
  

			
	 Payment Date Occurring During

	  	Percentage

	                 -                
	  	        %
	                 -                
	  	        %
	                 -                
	  	        %
	                  and thereafter
	  	        %

  
 (ix)
the occurrence of an Event of Default under the Indenture. 
  
 So
long as a Servicer Event of Default shall have occurred and not have been remedied: (x) with respect solely to Section 7.01(a)(i), if such payment is in respect of Delinquency Advances or Compensating Interest owing by the Servicer and such payment
is not made by 12:00 noon New York time on the second Business Day prior to the applicable Payment Date, the Indenture Trustee, upon receipt of written notice or actual knowledge by a Responsible Officer of the Indenture Trustee of such failure,
shall give immediate telephonic and facsimile notice of such failure to a Servicing Officer of the Servicer and the Indenture Trustee may, and upon request of the Holders representing more than 50% of the Class Note Balance, shall, terminate all of
the rights and obligations of the Servicer under this Agreement, except for the Servicer’s indemnification obligation under Section 5.19, and the Indenture Trustee (if it is the successor servicer) or a successor servicer appointed in
accordance with Section 7.02, shall immediately make such Delinquency Advance or payment of Compensating Interest as provided in Section 7.02 and assume, pursuant to Section 7.02 hereof, the duties of a successor servicer; (y) with respect to that
portion of Section 7.01(a)(i) not referred to in the preceding clause (x) and with respect to clauses (ii), (iii), (iv), (v), (vi) and (xii) of Section 7.01(a), upon receipt of written notice or actual knowledge by a Responsible Officer of the
Indenture Trustee, the Indenture Trustee shall, but only at the direction of the Majority Noteholders, by notice in writing to the Servicer and a Responsible Officer of the Indenture Trustee, and in addition to whatever rights such Noteholders may
have at law or equity to damages, including injunctive relief and specific performance, terminate all the rights and obligations of the Servicer under this Agreement, except for the Servicer’s indemnification obligations under Section 5.19, and
in and to the Mortgage Loans and the proceeds thereof, as Servicer; and (z) with respect to clauses (vii)-(ix) of Section 7.01(a), upon receipt of written notice or actual knowledge by a Responsible 

  

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Officer of the Indenture Trustee, the Indenture Trustee shall, after notice in writing to the Servicer and a Responsible Officer of the Indenture Trustee,
terminate all the rights and obligations of the Servicer under this Agreement, except for the Servicer’s indemnification obligations under Section 5.19, and in and to the Mortgage Loans and the proceeds thereof, as Servicer. Upon receipt by the
Servicer of such written notice, all authority and power of the Servicer under this Agreement, whether with respect to the Mortgage Loans or otherwise, shall, subject to Section 7.02, pass to and be vested in another successor servicer, and another
successor servicer is hereby authorized and empowered to execute and deliver, on behalf of the Servicer, as attorney-in-fact or otherwise, at the expense of the Servicer, any and all documents and other instruments and do or cause to be done all
other acts or things necessary or appropriate to effect the purposes of such notice of termination, including, but not limited to, the transfer and endorsement or assignment of the Mortgage Loans and related documents. The Servicer agrees to
cooperate (and to pay any related costs and expenses) with the Indenture Trustee or another successor servicer in effecting the termination of the Servicer’s responsibilities and rights hereunder, including, without limitation, the transfer to
another successor servicer, for administration by it of all amounts which shall at the time be credited by the Servicer to the Collection Account or thereafter received with respect to the Mortgage Loans. The Indenture Trustee shall promptly notify
the Rating Agencies of the occurrence of a Servicer Event of Default upon discovery or receipt of notice by a Responsible Officer of the Indenture Trustee; provided, however, the Indenture Trustee shall not be obligated to monitor the
Servicer’s compliance with the terms hereof or to determine the occurrence of any Servicer Event of Default. 
  
 Section 7.02. Indenture Trustee to Act: Appointment of Successor. (a) (i) On and after the time the Servicer receives a notice of termination
pursuant to Section 7.01, or the Indenture Trustee receives the resignation of the Servicer evidenced by an Opinion of Counsel pursuant to Section 5.21, or the Servicer is removed as Servicer pursuant to this Article VII, in which event the
Indenture Trustee shall promptly notify the Rating Agencies, and except as otherwise provided in this Section 7.02, the Indenture Trustee (provided the Indenture Trustee receives 20 days’ prior written notice) or another successor servicer
shall be the successor in all respects to the Servicer in its capacity as servicer under this Agreement and the transactions set forth or provided for in this Agreement, and shall be subject to all the responsibilities, restrictions, duties,
liabilities and termination provisions relating thereto placed on the Servicer by the terms and provisions of this Agreement. The Indenture Trustee or another successor servicer and the Indenture Trustee shall take such action, consistent with this
Agreement, as shall be necessary to effect any such succession. If the Indenture Trustee or any other successor servicer is acting as Servicer hereunder, it shall be subject to termination under Section 7.01 upon the occurrence or continuation of a
Servicer Event of Default applicable to it as Servicer. The Indenture Trustee hereby agrees to act as successor servicer pursuant to the terms of this Agreement upon the termination or resignation of the Servicer as provided in this Section 7.02,
provided that the Indenture Trustee receives all of the necessary documents relating to the Mortgage Loans and computer records reflecting the status of the Mortgage Loans as of the date of such transfer of servicing. The Indenture Trustee and any
successor servicer will not be obligated to incur any expenses or costs (including, without limitation, legal fees and the preparation and recording of all intervening assignments of mortgage) in connection with the transfer of servicing of the
Mortgage Loans to the Indenture Trustee, as successor servicer, or any other successor servicer, as applicable, or to compel the performance of any obligations by any party to this Agreement. 

  

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Any successor servicer and the Indenture Trustee prior to its becoming the successor servicer shall not be liable for any actions, omissions or defaults of
any servicer prior to it or breaches of representations and warranties of the servicer prior to it. The Indenture Trustee or any other successor servicer, as successor servicer, shall be obligated to pay Compensating Interest pursuant to Section
6.05 in any event and to make Delinquency Advances pursuant to Section 5.18 unless, and only to the extent the successor servicer determines reasonably and in good faith that such advances would not be recoverable from the proceeds of the related
Mortgage Loan pursuant to Section 5.03, such determination to be evidenced by a certification of a Responsible Officer of the successor servicer delivered to the Indenture Trustee. Furthermore, neither the Indenture Trustee nor any successor
servicer shall be obligated to fund any resulting discrepancy or shortfall in the Collection Account. Upon the transfer of the servicing of the Mortgage Loans, the Indenture Trustee shall provide the successor servicer with an officer’s
certificate that contains: (i) a complete description of all Events of Default by the Servicer under the Agreement of which a Responsible Officer of the Indenture Trustee has actual knowledge, which have not been fully cured and (ii) confirmation
that the Servicer Remittance Report and the reports described in Sections 5.09 and 5.10 have been timely filed by the Servicer with the Indenture Trustee. 
  
 (ii) In the event that any successor servicer is terminated or resigns pursuant to this Agreement or otherwise becomes unable to perform
its obligations under this Agreement, the Indenture Trustee will appoint a successor servicer in accordance with the provisions of this Section 7.02; provided, that any successor servicer, shall satisfy the requirements set forth in Section 7.02(b)
and shall be approved by the Rating Agencies. 
  
 (b) Any
successor servicer hereunder (other than the Indenture Trustee) shall be a housing and home finance institution, bank or mortgage servicing institution which has been designated as an approved seller-servicer by Fannie Mae or Freddie Mac, having
equity of not less than $5,000,000 as determined in accordance with GAAP, as the successor to the Servicer hereunder in the assumption of all or any part of the responsibilities, duties or liabilities of the Servicer hereunder. 
  
 (c) In the event the Indenture Trustee is the successor servicer, it shall be
entitled to the same Servicing Compensation (including the Servicing Fee as adjusted pursuant to the definition thereof) and other funds pursuant to Section 5.08 hereof as the Servicer if the Servicer had continued to act as servicer hereunder.

  
 (d) The Indenture Trustee and any successor servicer shall
take such action, consistent with this Agreement, as shall be necessary to effectuate any such succession. The Servicer agrees to cooperate with the Indenture Trustee and any successor servicer in effecting the termination of the Servicer’s
servicing responsibilities and rights hereunder and shall promptly provide the Indenture Trustee, or such successor servicer, as applicable, at the Servicer’s cost and expense, all documents and records reasonably requested by it to enable it
to assume the Servicer’s functions hereunder and shall promptly also transfer to the Indenture Trustee, or such successor servicer, as applicable, all amounts that then have been or should have been deposited in the Collection Account by the
Servicer or that are thereafter received with respect to the Mortgage Loans, including without limitation all Liquidation Proceeds and 

  

 50 

 
Insurance Proceeds, and payments of insurance deductible amounts by the Servicer pursuant to Section 5.04(b) with respect to all insurance claims arising
during the Servicer’s tenure. Any collections received by the Servicer after such removal or resignation shall be endorsed by it to the Indenture Trustee or a successor servicer, as applicable, and remitted directly to the Indenture Trustee
(or, at the direction of the Indenture Trustee, to any other successor servicer). Neither the Indenture Trustee nor any other successor servicer shall be held liable by reason of any failure to make, or any delay in making, any payment hereunder or
any portion thereof caused by (i) the failure of the Servicer to deliver, or any delay in delivering, cash, documents or records to it, or (ii) restrictions imposed by any regulatory authority having jurisdiction over the Servicer hereunder. The
Servicer shall not resign as Servicer until a successor servicer has been appointed. 
  
 (e) In the event that the Servicer is terminated hereunder and no successor servicer has been appointed hereunder, the Indenture Trustee may appoint a successor servicer (which may be an affiliate of the Indenture
Trustee) or petition a court of competent jurisdiction to appoint a successor servicer. Pending appointment of such a successor servicer hereunder, the Indenture Trustee shall be the successor servicer and act in such capacity; provided, however,
that the Indenture Trustee, in its capacity as successor servicer pending appointment of another successor servicer, (i) shall be obligated to make Delinquency Advances or Servicing Advances only to the extent that the Indenture Trustee deems such
advances to be recoverable, (ii) shall be obligated to make Compensating Interest payments in respect of any Payment Date only to the extent of any Servicing Fee received by the Indenture Trustee in respect of such Payment Date, (iii) shall not be
obligated to perform any other duties or obligations of the Servicer hereunder until the Indenture Trustee has received all servicing records and files from the predecessor servicer and in no event later than 90 days following the termination of the
Servicer; provided, however, the Indenture Trustee shall use its reasonable efforts to perform the duties and obligations of the Servicer prior to the end of such 90 day period, (iv) shall not be obligated to perform any of the administrative duties
specified in Section 5.23 hereof, and (v) shall be entitled to payment of all Servicing Compensation. In connection with any appointment and assumption of duties of a successor servicer, the Indenture Trustee may make such arrangements for the
compensation of such successor servicer out of payments on Mortgage Loans; provided, however, that such compensation may not be in excess of that permitted the Servicer pursuant to Section 5.08, together with other Servicing Compensation. The
Servicer, the Indenture Trustee and such successor Servicer shall take such action, consistent with this Agreement, as shall be necessary to effectuate any such succession. 
  
 (f) In the event the Indenture Trustee, or any successor servicer incurs out-of-pocket expenses other than Servicing
Advances or Delinquency Advances in connection with the transfer of servicing hereunder, which expenses are required to be borne by the Servicer hereunder, and such expenses are not promptly reimbursed by the Servicer or recoverable out of amounts
reimbursable to the Servicer out of the Collection Account, the Indenture Trustee shall make such reimbursement to the applicable party out of funds in the Payment Account on any Payment Date after all Payments to Noteholders on such Payment Date
have been made but before any distribution to the Certificateholders. The right of the Indenture Trustee to reimbursement from the Payment Account for any of the Indenture Trustee’s costs and expenses in connection with the transfer of any
servicing hereunder shall be in addition to any rights of the Indenture Trustee to indemnification and reimbursement under the Indenture. 
  

 51 

 (g) In the event that the Servicer is terminated or resigns hereunder, and at such time the Servicer has
made unreimbursed Delinquency Advances or Servicing Advances out of its own funds, 
  
 (i) any such Delinquency Advances or Servicing Advances shall be allocated by the successor servicer in whole or in part to specific
Mortgage Loans which are delinquent at the time of the transfer of servicing, which allocation shall be based on loan-level accounts of the portion of each Delinquency Advance or Servicing Advance which has been funded by the Servicer from its own
funds consistently maintained by the former Servicer, or, if no such accounts exist, then in the successor servicer’s discretion; 
  
 (ii) following the transfer of servicing, the successor servicer shall reimburse the former Servicer for such Delinquency Advances and
Servicing Advances in accordance with the allocations determined in accordance with clause (i) above only out of the proceeds of the Mortgage Loans to which they relate and otherwise subject to Section 5.03, or, to the extent the successor servicer
determines any such Delinquency Advance or Servicing Advance to be a Nonrecoverable Advance, out of any funds in the Collection Account. 
  
 (h) In connection with the termination or resignation of the Servicer hereunder, the successor 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 Servicer shall
cooperate with the successor Servicer in causing the MERS System to be revised to reflect the transfer of servicing to the successor Servicer as necessary under MERS’ rules and regulations. 
  
 Section 7.03. Waiver of Defaults. The Majority Noteholders may, on
behalf of all Noteholders, waive any events permitting removal of the Servicer as servicer pursuant to this Article VII; provided, however, that the Majority Noteholders may not waive a default in making a required payment on a Note
without the consent of the Holder of such Note. Upon any waiver of a past default, such default shall cease to exist, and any Servicer Event of Default arising therefrom shall be deemed to have been remedied for every purpose of this Agreement. No
such waiver shall extend to any subsequent or other default or impair any right consequent thereto except to the extent expressly so waived. Notice of any such waiver shall be given by the Indenture Trustee to the Rating Agencies. 
  
 ARTICLE VIII 
  
 TERMINATION 
  
 Section 8.01. Termination. (a) Subject to Section 8.02, this Agreement
shall terminate upon notice to the Indenture Trustee of either: (i) the disposition of all funds with respect to the last Mortgage Loan and the remittance of all funds due hereunder and the payment of all amounts due and payable to the Indenture
Trustee or (ii) mutual consent of the Owner Trustee, on behalf of the Trust, at the direction of all the Certificateholders, the Indenture Trustee, the Servicer, the Swap Provider (if the Swap Agreement is still outstanding) and all Noteholders in
writing. 
  

 52 

 (b) In addition, subject to Section 8.02, the Sponsor may, at its sole option, cost and expense,
terminate the Trust in accordance with the terms of Section 10.01 of the Indenture. 
  
 (c) If on any date, the Servicer determines that there are no outstanding Mortgage Loans and no other funds or assets in the Trust Estate other than funds in the Payment Account, the Servicer shall send a final
payment notice promptly to the Indenture Trustee, who shall forward notice to each Noteholder in accordance with Section 8.01(d). 
  
 (d) Notice of any termination, specifying the Payment Date upon which the Trust will terminate and the Noteholders shall surrender their Notes to the
Indenture Trustee for final payment and cancellation, shall be given promptly by the Servicer to the Indenture Trustee, who shall forward the notice by letter to Noteholders mailed during the month of such final payment before the Servicer
Remittance Date in such month, specifying (i) the Payment Date upon which final payment of the Notes will be made upon presentation and surrender of Notes at the office of the Indenture Trustee therein designated, (ii) the amount of any such final
payment and (iii) that the Record Date otherwise applicable to such Payment Date is not applicable, payments being made only upon presentation and surrender of the Notes at the office of the Indenture Trustee therein specified. 
  
 (e) In the event that all of the Noteholders do not surrender their Notes for
cancellation within six (6) months after the time specified in the above-mentioned written notice, the Indenture Trustee shall give a second written notice to the remaining Noteholders to surrender their Notes for cancellation and receive the final
payment with respect thereto. If within six (6) months after the second notice, all of the Notes shall not have been surrendered for cancellation, the Indenture Trustee may take appropriate steps, or may appoint an agent to take appropriate steps,
to contact the remaining Noteholders concerning surrender of their Notes and the cost thereof shall be paid out of the funds and other assets which remain subject hereto. If within nine (9) months after the second notice all the Notes shall not have
been surrendered for cancellation, the Certificateholders shall be entitled to all unclaimed funds and other assets which remain subject hereto and the Indenture Trustee upon transfer of such funds shall be discharged of any responsibility for such
funds and the Noteholders shall look only to the Certificateholders for payment. Such funds shall remain uninvested. 
  
 Section 8.02. Additional Termination Requirements. By their acceptance of the Notes, the Holders thereof hereby agree to appoint the Servicer as
their attorney in fact to: (i) adopt a plan of complete liquidation (and the Noteholders hereby appoint the Indenture Trustee as their attorney in fact to sign such plan) as appropriate and (ii) to take such other action in connection therewith as
may be reasonably required to carry out such plan of complete liquidation all in accordance with the terms hereof. 
  
 Section 8.03. Accounting Upon Termination of Servicer. Upon termination of the Servicer, the Servicer shall, at its expense: 
  
 (a) deliver to the successor servicer or, if none shall yet have been
appointed, to the Indenture Trustee, the funds in any Account administered by the Servicer; 
  

 53 

 (b) deliver to the successor servicer or, if none shall yet have been appointed, to the Indenture Trustee
all Mortgage Files and related documents and statements held by it hereunder and a Mortgage Loan portfolio computer tape; 
  
 (c) deliver to the successor servicer, or, if none shall yet have been appointed, to the Indenture Trustee a full accounting of all funds, including a
statement showing the Monthly Payments collected by it and a statement of monies held in trust by it for the payments or charges with respect to the Mortgage Loans; and 
  
 (d) execute and deliver such instruments and perform all acts reasonably requested in order to effect the orderly and
efficient transfer of servicing of the Mortgage Loans to the successor servicer and to more fully and definitively vest in such successor all rights, powers, duties, responsibilities, obligations and liabilities of the Servicer under this Agreement.

  
 Section 8.04. [Reserved.] 
  
 ARTICLE IX 
  
 [RESERVED] 
  
 ARTICLE X 
  
 MISCELLANEOUS PROVISIONS 
  
 Section 10.01. Limitation on Liability. (a) None of the Trust, the Owner Trustee, the Seller, the Sponsor, the Servicer, the Indenture Trustee or
any of the directors, officers, employees or agents of such Persons shall be under any liability to the Trust, the Noteholders 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 Trust, the Owner Trustee, the Seller, the Sponsor, the Servicer, the Indenture Trustee or any such Person against liability for any breach of warranties
or representations made herein by such party, or against any specific liability imposed on each such party pursuant to this Agreement or against any liability which would otherwise be imposed upon such party by reason of willful misfeasance, bad
faith or negligence in the performance of duties or by reason of failure to perform its obligations or duties hereunder. The Trust, the Owner Trustee, the Seller, the Sponsor, the Servicer, the Indenture Trustee and any director, officer, employee
or agent of such Person may rely in good faith on any document of any kind which, prima facie, is properly executed and submitted by any appropriate Person respecting any matters arising hereunder. 
  
 (b) It is expressly understood and agreed by the parties hereto that (i) this
Agreement is executed and delivered by
                                        
                        , not individually or personally but solely as Owner Trustee under the Trust Agreement, in the
exercise of the powers and authority conferred and vested in it under the Trust Agreement, (ii) each of the representations, undertakings and agreements herein made on the part of the Trust is made and intended not as personal representations,
undertakings and agreements by                              but 

  

 54 

 
is made and intended for the purpose for binding only the Trust, (iii) nothing herein contained shall be construed as creating any liability on
                                    , individually or
personally, to perform any covenant either expressed or implied contained herein, all such liability, if any, being expressly waived by the parties hereto and by any Person claiming by, through or under the parties hereto and (iv) under no
circumstances shall                                      be
personally liable for the payment of any indebtedness or expenses of the Trust or be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Trust under this Agreement or any other related
documents. 
  
 Section 10.02. Acts of Noteholders. (a)
Subject to Section 7.04 and except as otherwise specifically provided herein, whenever Noteholder action, consent or approval is required under this Agreement, such action, consent or approval shall be deemed to have been taken or given on behalf
of, and shall be binding upon, all Noteholders if the Majority Noteholders agree to take such action or give such consent or approval. 
  
 (b) The death or incapacity of any Noteholder shall not operate to terminate this Agreement or the Trust, nor entitle such Noteholder’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, nor otherwise affect the rights, obligations and liabilities of the parties hereto or any of them.

  
 (c) No Noteholder shall have any right to vote (except as
expressly provided for herein) or in any manner otherwise control the operation and management of the Trust, or the obligations of the parties hereto, nor shall anything herein set forth, or contained in the terms of the Notes, be construed so as to
constitute the Noteholders from time to time as partners or members of an association; nor shall any Noteholder 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. 
  
 Section 10.03. Amendment. (a) This Agreement
may be amended from time to time by the Owner Trustee, on behalf of the Trust, the Servicer, the Seller, Sponsor and the Indenture Trustee by written agreement, without notice to or consent of the Noteholders and without the consent of the Swap
Provider to cure any ambiguity, to correct or supplement any provisions herein, to comply with any changes in the Code, or to make any other provisions with respect to matters or questions arising under this Agreement which shall not be inconsistent
with the provisions of this Agreement; provided, however, that such action shall not adversely affect in any material respect the interests of any Noteholder or the Swap Provider and will not prevent the Notes from being characterized
as debt for United States federal income tax purposes or cause the Issuer to be subject to federal income tax, as evidenced by (i) an Opinion of Counsel, at the expense of the party requesting the change, delivered to the Indenture Trustee to such
effect or (ii) a letter from each Rating Agency confirming that such action will not result in the reduction, qualification or withdrawal of the then-current ratings on the Notes. The Indenture Trustee shall give prompt written notice to the Rating
Agencies of any amendment made pursuant to this Section 10.03. 
  
 (b) This Agreement may be amended from time to time by the Owner Trustee, on behalf of the Trust, the Servicer, the Seller, the Sponsor and the Indenture Trustee, with the consent of the Noteholders representing more than 50% of the
outstanding Principal Balance of 

  

 55 

 
the Notes of each affected Class and all of the Certificateholders and with the consent of the Swap Provider (if the Swap Agreement is still outstanding and
affected); provided, however, that no such amendment shall reduce in any manner the amount of, or delay the timing of, payments received on Mortgage Loans which are required to be paid on any Class of Notes without the consent of the
Holders of such Class of Notes or reduce the percentage for the Holders of which are required to consent to any such amendment without the consent of the Holders of 100% of such Class of Notes affected thereby. 
  
 (c) It shall not be necessary for the consent of Holders under this Section
10.03 to approve the particular form of any proposed amendment, but it shall be sufficient if such consent shall approve the substance thereof. 
  
 (d) In executing, or accepting the additional trusts created by, any supplemental indenture permitted by Article IX of the Indenture or the modifications
thereby of the trusts created by the Indenture, the Indenture Trustee shall be entitled to receive, and (subject to Section 6.01 of the Indenture) shall be fully protected in relying upon, an Opinion of Counsel stating that the execution of such
supplemental indenture is authorized or permitted by the Indenture. The Indenture Trustee may, but shall not be obligated to, enter into any such supplemental indenture that affects the Indenture Trustee’s own rights, duties or immunities under
the Indenture or otherwise. The Servicer, on behalf of the Trust, shall cause executed copies of any supplemental indentures to be delivered to the Rating Agencies. 
  
 Section 10.04. Recordation of Agreement. To the extent permitted by applicable law, this Agreement, or a memorandum
thereof if permitted under applicable law, is subject to recordation in all appropriate public offices for real property records in all of 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 Servicer at the Noteholders’ expense on direction and at the expense of Majority Noteholders requesting such recordation,
but only when accompanied by an Opinion of Counsel to the effect that such recordation materially and beneficially affects the interests of the Noteholders or is necessary for the administration or servicing of the Mortgage Loans. 
  
 Section 10.05. Duration of Agreement. This Agreement shall continue in
existence and effect until terminated as herein provided. 
  
 Section 10.06. Notices. All demands, notices and communications hereunder shall be in writing and shall be deemed to have been duly given when delivered to (i) in the case of the Servicer, Accredited Home Lenders, Inc., 15090 Avenue
of Science, San Diego, California 92128, Attention: Director of Operations with a copy to General Counsel; (ii) in the case of the Trust, Accredited Mortgage Loan Trust 200  -  , c/o the Owner Trustee at its
Corporate Trust Office, Attention: Corporate Trust Administration; (iii) in the case of the Indenture Trustee,
                                        
                    , Attn:
                                    ; (iv) in the case of the
Sponsor, Accredited Home Lenders, Inc., 15090 Avenue of Science, San Diego, California 92128, Attention: Investor Reporting; (v) in the case of the Underwriter,
                                        
                     (vi) in the case of [Rating Agencies]; (vii) in the case of
[                                 Attention: ]; (viii) in the case of
[                                ]; (ix) in the case of the Seller, Accredited
Mortgage Loan REIT Trust, 15090 Avenue of Science, 

  

 56 

 
San Diego, California 92128, Attention: General Counsel; (x) [in the case of the Swap Provider,
                                        
        ] and (xi) in the case of the Noteholders, as set forth in the Note Register. Any such notices shall be deemed to be effective with respect to any party hereto upon the receipt of such notice by
such party, except that notices to the Noteholders shall be effective upon mailing or personal delivery. 
  
 Section 10.07. Severability of Provisions. If any one or more of the covenants, agreements, provisions or terms of this Agreement shall be held
invalid for any reason whatsoever, 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 covenants, agreements, provisions or terms of this Agreement. 
  
 Section 10.08. No Partnership. Nothing herein contained shall be deemed or construed to create a co-partnership or joint venture between the parties hereto and the services of the Servicer shall be rendered as
an independent contractor and not as agent for the Noteholders. 
  
 Section 10.09. Counterparts. This Agreement may be executed in one or more counterparts and by the different parties hereto on separate counterparts, each of which, when so executed, shall be deemed to be an original; such
counterparts, together, shall constitute one and the same agreement. 
  
 Section 10.10. Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the Trust, the Servicer, the Seller, the Sponsor, the Indenture Trustee and the Noteholders and their respective successors and
permitted assigns. 
  
 Section 10.11. Headings. The
headings of the various sections of this Agreement have been inserted for convenience of reference only and shall not be deemed to be part of this Agreement. 
  
 Section 10.12. No Petition. The Servicer, by entering into this Agreement hereby covenants and agrees, and the Noteholders, by the acceptance of
their Notes are deemed to covenant and agree, that they will not at any time institute against the Trust, or join in any institution against the Trust of, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings under any United States Federal or state bankruptcy law in connection with any obligations relating to the Certificates, the Notes, this Agreement or any of the other Basic Documents. 
  
 This Section 10.12 will survive for one year and one day following the
termination of this Agreement. 
  
 Section 10.13. Third Party
Beneficiary. The parties agree that each of the Owner Trustee and the Swap Provider (if the Swap Agreement is still outstanding) is intended and shall have all rights of a third-party beneficiary of this Agreement. 
  
 Section 10.14. Intent of the Parties. It is the intent of the parties
hereto and Noteholders that, for federal income taxes, state and local income or franchise taxes and other taxes imposed on or measured by income, the Notes be treated as debt. The parties to this Agreement and the 

  

 57 

 
Holder of each Note, by acceptance of its Note, and each Beneficial Owner thereof, agree to treat, and to take no action inconsistent with the treatment of,
the related Notes in accordance with the preceding sentence for purposes of federal income taxes, state and local income and franchise taxes and other taxes imposed on or measured by income. 
  
 Section 10.15. GOVERNING LAW; CONSENT TO JURISDICTION; WAIVER OF JURY
TRIAL. (a) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS (AS OPPOSED TO CONFLICT OF LAWS PROVISIONS) OF THE STATE OF NEW YORK. 
  
 (b) THE TRUST, THE SERVICER, THE SELLER, THE SPONSOR, THE INDENTURE TRUSTEE HEREBY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION
OF THE COURTS OF THE STATE OF NEW YORK AND THE UNITED STATES DISTRICT COURT LOCATED IN THE BOROUGH OF MANHATTAN IN NEW YORK CITY, AND WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS UPON IT AND CONSENTS THAT ALL SUCH SERVICE OF PROCESS BE MADE BY
REGISTERED MAIL DIRECTED TO THE ADDRESS SET FORTH IN SECTION 10.06 HEREOF AND SERVICE SO MADE SHALL BE DEEMED TO BE COMPLETED FIVE (5) DAYS AFTER THE SAME SHALL HAVE BEEN DEPOSITED IN THE U.S. MAILS, POSTAGE PREPAID. THE TRUST, THE SELLER, THE
SPONSOR, THE SERVICER AND THE INDENTURE TRUSTEE EACH HEREBY WAIVE ANY OBJECTION BASED ON FORUM NON CONVENIENS, AND ANY OBJECTION TO VENUE OF ANY ACTION INSTITUTED HEREUNDER AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED
APPROPRIATE BY THE COURT. NOTHING IN THIS SECTION 10.15 SHALL AFFECT THE RIGHT OF THE TRUST, THE SELLER, THE SPONSOR, THE SERVICER OR THE INDENTURE TRUSTEE TO SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR AFFECT ANY OF THEIR RIGHTS TO
BRING ANY ACTION OR PROCEEDING IN THE COURTS OF ANY OTHER JURISDICTION. 
  
 (c) THE TRUST, THE SELLER, THE SPONSOR, THE SERVICER, THE INDENTURE TRUSTEE AND THE SWAP PROVIDER EACH HEREBY WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE ARISING OUT
OF, CONNECTED WITH, RELATED TO, OR IN CONNECTION WITH THIS AGREEMENT. INSTEAD, ANY DISPUTE WILL BE RESOLVED IN A BENCH TRIAL WITHOUT A JURY. 
  
 [Remainder of Page Intentionally Left Blank] 
  

 58 

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

					
	 ACCREDITED HOME LENDERS, INC.,
   as Sponsor and Servicer

		
	By:	 	  

	Name:	 	David E. Hertzel
	Title:	 	GC, AVP & Ass’t Sec’y
	
	ACCREDITED MORTGAGE LOAN TRUST 200  -  
		
	By:	 	  

	 	 	________, not in its individual capacity, but solely as Owner Trustee under the Trust Agreement
			
	 	 	By:	 	  

	 	 	Name:	 	 
	 	 	Title:	 	 
	
	 ACCREDITED MORTGAGE LOAN REIT TRUST
   as Seller

		
	By:	 	  

	Name:	 	Melissa Dant
	Title:	 	Senior Secondary Markets Counsel, Ass’t Vice President, and Ass’t Secretary
	
	 ____________________________________________,
 as Indenture Trustee

		
	By:	 	  

	Name:	 	 
	Title:	 	 
		
	By:	 	  

	Name:	 	 
	Title:	 	 

  
 [Signature Page
to Sale and Servicing Agreement] 
  

 59 

 SCHEDULE I 
  
 MORTGAGE LOAN SCHEDULE 
  
  

 A-1 

 APPENDIX I 
  
 DEFINED TERMS 
  
 “Accepted Servicing Practices”: The Servicer’s normal servicing practices, which in general will conform to the mortgage servicing
practices of prudent mortgage lending institutions which service, for their own account, mortgage loans of the same type as the Mortgage Loans in the jurisdictions in which the related Mortgaged Properties are located. 
  
 “Account”: Any of the Collection Account or the Payment
Account. 
  
 “Accountant”: A Person engaged in
the practice of accounting who (except when the Indenture provides that an Accountant must be Independent) may be employed by or affiliated with the Trust or an Affiliate of the Trust. 
  
 “Accrued Note Interest”: As to any Payment Date and each Class of Notes, the amount of interest accrued
during the related Interest Accrual Period on the related Class Note Balance immediately prior to such Payment Date at the related Note Rate, as reduced by any Net Prepayment Interest Shortfalls and any shortfalls resulting from the application of
the Servicemembers Civil Relief Act (or any similar state statutes), [provided, however, that in the case of any Class M Note, such amount shall be reduced by the amount of Deferred Interest for such class.] 
  
 “Act”: With respect to any Noteholder, as defined in Section
11.03 of the Indenture. 
  
 “Affiliate”: With
respect to any Person, any other Person directly or indirectly controlling, controlled by, or under direct or indirect common control with such specified Person. For the purposes of this definition, “control” when used with respect to any
specified Person 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. 
  
 “Agent”: Any Note Registrar or Authenticating Agent. 
  
 “Appraised Value”: As to any Mortgaged Property, the appraised value of the Mortgaged Property based upon the appraisal made in connection with the origination of the Mortgage Loan and, in the case of
a Mortgaged Property that was purchased with the proceeds of the Mortgage Loan or within twelve months preceding the origination of the Mortgage Loan, the sales price of the Mortgaged Property, if such sales price is less than such appraised value.

  
 “Assignment of Mortgage”: With respect to
each Mortgage Loan, an assignment of the Mortgage, notice of transfer or equivalent instrument sufficient under the laws of the jurisdiction wherein the related Mortgaged Property is located to reflect of record the conveyance of the Mortgage to the
Indenture Trustee, for the benefit of the Noteholders. 
  
 “Authenticating Agent”: The Person, if any, appointed as Authenticating Agent by the Owner Trustee on behalf of the Trust, acting at the direction of the Certificateholders, 

 
pursuant to Section 6.14 of the Indenture, until any successor Authenticating Agent for the Notes is named, and thereafter “Authenticating Agent”
shall mean such successor. The initial Authenticating Agent shall be the Indenture Trustee. Any Authenticating Agent other than the Indenture Trustee shall sign an instrument under which it agrees to be bound by all of the terms of this Indenture
applicable to the Authenticating Agent. 
  
 “Authorized
Denominations”: Each Class of Notes is issuable only in the minimum Percentage Interest corresponding to a minimum denomination of $25,000 and integral multiples of $1,000 in excess thereof; provided, however, that one Note of
each Class is issuable in a denomination equal to any such multiple plus an additional amount such that the aggregate denomination of all Notes of such Class shall be equal to the Original Note Principal Balance of such Class. 
  
 “Authorized Officer”: With respect to (i) the Indenture
Trustee, any Responsible Officer, (ii) the Owner Trustee, the president, any vice president, any assistant vice president, the secretary, any assistant secretary, the treasurer, any assistant treasurer, any trust officer, any financial services
officer or any other officer of the Owner Trustee customarily performing functions similar to those performed by the above officers and (iii) any other Person, the chairman, chief operating officer, president or any vice president of such Person.

  
 “Available Funds”: As for any Payment Date,
the sum of the following amounts: (i) the Servicer Remittance Amount, (ii) the proceeds from repurchases of Mortgage Loans, (iii) any Net Swap Payment received from the Swap Provider and (iv) all proceeds received with respect to any optional
termination pursuant to Section 10.01 of the Indenture. 
  
 “Balloon Mortgage Loan”: A Mortgage Loan that provides for the payment of the unamortized principal balance of such Mortgage Loan in a single payment at the maturity of such Mortgage Loan that is greater than the preceding
Monthly Payment. 
  
 “Balloon Payment”: A payment
of the unamortized principal balance of a Mortgage Loan in a single payment at the maturity of such Mortgage Loan that is greater than the preceding Monthly Payment. 
  
 “Bankruptcy Code”: The Bankruptcy Reform Act of 1978 (Title 11 of the United States Code), as amended.

  
 “Basic Documents”: The Indenture, the Trust
Agreement, the Sale and Servicing Agreement, the Contribution Agreement and Assignment and the Swap Agreement. 
  
 “Basic Principal Distribution Amount”: As to any Payment Date, the excess of (i) the aggregate Principal Remittance Amount over (ii) the
Excess Subordinated Amount, if any. 
  
 “Basis Risk Carry
Forward Amount”: As to any Payment Date and any Class of Notes, the sum of: (i) the excess, if any, of interest that would otherwise be due on such Class of Notes at such Notes’ applicable Note Rate (without regard to the Loan Group I
Cap, Loan Group II Cap or the WAC Cap, as applicable) over interest due on such Class of Notes at a rate determined pursuant to clause (ii) of the applicable definition of Note Rate, (ii) any Basis Risk Carry Forward Amount for such Class remaining
unpaid from prior Payment Dates and (iii) interest on the amount in clause (ii) at such Notes’ applicable Note Rate (without regard to the Loan Group I Cap, Loan Group II Cap or the WAC Cap, as applicable). 
  

 A-2 

 “Beneficial Owner”: With respect to a Book-Entry Note, the Person who is the beneficial
owner of such Note as reflected on the books of the Clearing Agency for the Notes or on the books of a Person maintaining an account with such Clearing Agency (as either a Direct Participant or an Indirect Participant, in accordance with the rules
of such Clearing Agency). 
  
 “Best Efforts”:
Efforts determined to be in good faith and reasonably diligent by the Person performing such efforts, specifically the Trust or the Servicer or any other agent of the Trust, as the case may be, in its reasonable discretion. Such efforts do not
require the Trust or the Servicer or any other agent of the Trust, as the case may be, to enter into any litigation, arbitration or other legal or quasi-legal proceeding, nor do they require the Trust or the Servicer or any other agent of the Trust,
as the case may be, to advance or expend fees or sums of money in addition to those specifically set forth in the Indenture and the Sale and Servicing Agreement. 
  
 “Book-Entry Notes”: Any Notes registered in the name of the Clearing Agency or its nominee, ownership of
which is reflected on the books of the Clearing Agency or on the books of a person maintaining an account with such Clearing Agency (as either a Direct Participant or an Indirect Participant in accordance with the rules of such Clearing Agency).

  
 “Business Day”: Any day other than (i) a
Saturday or Sunday or (ii) a day that is either a legal holiday or a day on which banking institutions in the State of New York, the State of Delaware, the State of California, or the state in which the Indenture Trustee’s office from which
payments will be made to Noteholders, are authorized or obligated by law, regulation or executive order to be closed. 
  
 “CERCLA”: The Comprehensive Environmental Response, Compensation and Liability Act of 1980. 
  
 “Certificates”: Each Trust Certificate issued pursuant to
the Trust Agreement and which represents ownership in the Trust. 
  
 “Class A Notes”: The [Class A-1 Notes and Class A-2] Notes. 
  
 “Class A-1 Notes”: The [Class A-1A Notes and Class A-1B] Notes. 
  
 “Class A-2 Notes”: The [Class A-2A Notes, Class A-2B Notes and Class A-2C Notes.] 
  
 “Class A Principal Allocation Percentage”: As to any Payment
Date, the percentage equivalent of a fraction, determined as follows: (i) in the case of the Class A-1 Notes, the numerator of which is (x) the portion of the Principal Remittance Amount for such Payment Date that is attributable to principal
received or advanced on the Group I Mortgage Loans and the denominator of which is (y) the Principal Remittance Amount for such Payment Date; and (ii) in the case of the Class [A-2] Notes, the numerator of which is (x) the portion of the Principal
Remittance Amount for such Payment Date that is attributable to principal received or advanced on the Group II Mortgage Loans and the denominator of which is (y) the Principal Remittance Amount for such Payment Date. 
  

 A-3 

 “Class A Principal Distribution Amount”: As to any Payment Date, an amount equal to the
excess of: (x) the aggregate Class Note Balance of the Class A Notes immediately prior to such Payment Date, over (y) the lesser of: (A) the product of (i)             % and (ii) the
aggregate scheduled Principal Balance of the Mortgage Loans on the last day of the related Due Period, and (B) the excess, if any, of the aggregate scheduled Principal Balance of the Mortgage Loans on the last day of the related Due Period over
            % of the aggregate scheduled Principal Balance of the Mortgage Loans as of the Cut-Off Date. 
  
 “Class A-1 Principal Distribution Allocation”: As to any Payment Date (i) if a Group I Sequential Trigger
Event is not in effect, pro rata among the Class A-1 Notes, based on the Class Note Balance of each class of Class A-1 Notes immediately prior to such Payment Date or (ii) if a Group I Sequential Trigger Event is in effect, such distribution will be
allocated first to the Class A-1A Notes, until their Class Note Balance has been reduced to zero, and second to the Class A-1B Notes, until their Class Note Balance has been reduced to zero. 
  
 “Class M Notes”: The [Class M-1 Notes, Class M-2 Notes,
Class M-3 Notes, Class M-4 Notes, Class M-5 Notes and Class M-6 Notes]. 
  
 “Class M-1 Principal Distribution Amount”: As to any Payment Date, an amount equal to the excess of: (x) the sum of: (A) the aggregate Class Note Balance of the Class A Notes (after taking into account the payment of the
Class A Principal Distribution Amount on such Payment Date) and (B) the Class Note Balance of the Class M-1 Notes immediately prior to such Payment Date, over (y) the lesser of: (A) the product of (i)
            % (ii) the aggregate scheduled Principal Balance of the Mortgage Loans on the last day of the related Due Period, and (B) the excess, if any, of the aggregate scheduled
Principal Balance of the Mortgage Loans on the last day of the related Due Period over             % of the aggregate scheduled Principal Balance of the Mortgage Loans as of the
Cut-Off Date. 
  
 “Class M-2 Principal Distribution
Amount”: As to any Payment Date, an amount equal to the excess of: (x) the sum of: (A) the aggregate Class Note Balance of the Class A Notes (after taking into account the payment of the Class A Principal Distribution Amount on such Payment
Date), (B) the Class Note Balance of the Class M-1 Notes (after taking into account the payment of the Class M-1 Principal Distribution Amount on such Payment Date), and (C) the Class Note Balance of the Class M-2 Notes immediately prior to such
Payment Date, over (y) the lesser of: (A) the product of (i)             % and (ii) the aggregate scheduled Principal Balance of the Mortgage Loans on the last day of the related Due
Period, and (B) the excess, if any, of the aggregate scheduled Principal Balance of the Mortgage Loans on the last day of the related Due Period over             % of the aggregate
scheduled Principal Balance of the Mortgage Loans as of the Cut-Off Date. 
  
 “Class M-3 Principal Distribution Amount”: As to any Payment Date, an amount equal to the excess of: (x) the sum of: (A) the aggregate Class Note Balance of the Class A Notes (after taking into
account the payment of the Class A Principal Distribution Amount on such Payment Date), (B) the Class Note Balance of the Class M-1 Notes (after taking into account the 

  

 A-4 

 
payment of the Class M-1 Principal Distribution Amount on such Payment Date), (C) the Class Note Balance of the Class M-2 Notes (after taking into account
the payment of the Class M-2 Principal Distribution Amount on such Payment Date), and (D) the Class Note Balance of the Class M-3 Notes immediately prior to such Payment Date, over (y) the lesser of: (A) the product of (i)
            % and (ii) the aggregate scheduled Principal Balance of the Mortgage Loans on the last day of the related Due Period, and (B) the excess, if any, of the aggregate
scheduled Principal Balance of the Mortgage Loans on the last day of the related Due Period over             % of the aggregate scheduled Principal Balance of the Mortgage Loans as
of the Cut-Off Date. 
  
 “Class M-4 Principal Distribution
Amount”: As to any Payment Date, an amount equal to the excess of: (x) the sum of: (A) the aggregate Class Note Balance of the Class A Notes (after taking into account the payment of the Class A Principal Distribution Amount on such Payment
Date), (B) the Class Note Balance of the Class M-1 Notes (after taking into account the payment of the Class M-1 Principal Distribution Amount on such Payment Date), (C) the Class Note Balance of the Class M-2 Notes (after taking into account the
payment of the Class M-2 Principal Distribution Amount on such Payment Date), (D) the Class Note Balance of the Class M-3 Notes (after taking into account the payment of the Class M-3 Principal Distribution Amount on such Payment Date), and (E) the
Class Note Balance of the Class M-4 Notes immediately prior to such Payment Date, over (y) the lesser of: (A) the product of (i)             % and (ii) the aggregate scheduled
Principal Balance of the Mortgage Loans on the last day of the related Due Period, and (B) the excess, if any, of the aggregate scheduled Principal Balance of the Mortgage Loans on the last day of the related Due Period over
            % of the aggregate scheduled Principal Balance of the Mortgage Loans as of the Cut-Off Date. 
  
 “Class M-5 Principal Distribution Amount”: As to any Payment Date, an amount equal to the excess of: (x)
the sum of: (A) the aggregate Class Note Balance of the Class A Notes (after taking into account the payment of the Class A Principal Distribution Amount on such Payment Date), (B) the Class Note Balance of the Class M-1 Notes (after taking into
account the payment of the Class M-1 Principal Distribution Amount on such Payment Date), (C) the Class Note Balance of the Class M-2 Notes (after taking into account the payment of the Class M-2 Principal Distribution Amount on such Payment Date),
(D) the Class Note Balance of the Class M-3 Notes (after taking into account the payment of the Class M-3 Principal Distribution Amount on such Payment Date), (E) the Class Note Balance of the Class M-4 Notes (after taking into account the payment
of the Class M-4 Principal Distribution Amount on such Payment Date), and (F) the Class Note Balance of the Class M-5 Notes immediately prior to such Payment Date, over (y) the lesser of: (A) the product of (i)
            % and (ii) the aggregate scheduled Principal Balance of the Mortgage Loans on the last day of the related Due Period, and (B) the excess, if any, of the aggregate
scheduled Principal Balance of the Mortgage Loans on the last day of the related Due Period over             % of the aggregate scheduled Principal Balance of the Mortgage Loans as
of the Cut-Off Date. 
  
 “Class M-6 Principal Distribution
Amount”: As to any Payment Date, an amount equal to the excess of: (x) the sum of: (A) the aggregate Class Note Balance of the Class A Notes (after taking into account the payment of the Class A Principal Distribution Amount on such Payment
Date), (B) the Class Note Balance of the Class M-1 Notes (after taking into account the payment of the Class M-1 Principal Distribution Amount on such Payment Date), (C) the Class Note Balance of the Class M-2 Notes (after taking into account the
payment of the Class M-2 

  

 A-5 

 
Principal Distribution Amount on such Payment Date), (D) the Class Note Balance of the Class M-3 Notes (after taking into account the payment of the Class
M-3 Principal Distribution Amount on such Payment Date), (E) the Class Note Balance of the Class M-4 Notes (after taking into account the payment of the Class M-4 Principal Distribution Amount on such Payment Date), (F) the Class Note Balance of the
Class M-5 Notes (after taking into account the payment of the Class M-5 Principal Distribution Amount on such Payment Date), and (G) the Class Note Balance of the Class M-6 Notes immediately prior to such Payment Date, over (y) the lesser of: (A)
the product of (i)             % and (ii) the aggregate scheduled Principal Balance of the Mortgage Loans on the last day of the related Due Period, and (B) the excess, if any, of
the aggregate scheduled Principal Balance of the Mortgage Loans on the last day of the related Due Period over             % of the aggregate scheduled Principal Balance of the
Mortgage Loans as of the Cut-Off Date. 
  
 “Class Note
Balance”: As of any date of determination, the Original Note Principal Balance of any Class of Notes as listed below, minus the sum of all amounts applied in reduction of such amount on all prior Payment Dates. 
  

				
	 Class

	  	 Original Note Principal
 Balance

	 	  	$	 
	 	  	$	 
	 	  	$	 
	 	  	$	 
	 	  	$	 
	 	  	$	 
	 	  	$	 
	 	  	$	 
	 	  	$	 
	 	  	$	 
	 	  	$	 

  
 “Clean-Up Call
Date”: Any Payment Date when the aggregate Class Note Balance of the Notes is equal to or less than 10% of the Original Note Principal Balance, in each case after giving effect to distributions on that Payment Date. 
  
 “Clearing Agency”: An organization registered as a
“clearing agency” pursuant to Section 17A of the Securities Exchange Act of 1934, as amended, and the regulations of the Commission thereunder and shall initially be The Depository Trust Company of New York, the nominee for which is Cede
& Co. 
  
 “Clearing Agency Participants”: The
entities for whom the Clearing Agency will maintain book-entry records of ownership and transfer of Book-Entry Notes, which may include securities brokers and dealers, banks and trust companies and clearing corporations and certain other
organizations. 
  

 A-6 

 “Closing Date”:
                    , 200  . 
  
 “Code”: The Internal Revenue Code of 1986, as amended. 
  
 “Collection Account”: The Eligible Account established and maintained by the Servicer pursuant to Section
5.02(b) of the Sale and Servicing Agreement. 
  
 “Collection Period”: With respect to each Payment Date, the calendar month preceding the related Payment Date. 
  
 “Commission”: The United States Securities and Exchange Commission. 
  
 “Compensating Interest”: As defined in Section 6.05 of the Sale and Servicing Agreement. 
  
 “Contribution Agreement and Assignment”: The Contribution
Agreement and Assignment, dated as of                     , 200  , between the Sponsor and the Seller. 
  
 “Corporate Trust Office”: With respect to (y) the Indenture
Trustee, the principal office of the Indenture Trustee at which at any particular time its corporate trust business shall be principally administered, which office at the date of the execution of the Basic Documents is located at:
                                        
                                        
                                        
         Attn:                     , where it conducts its trust administration services; and (z)
the Owner Trustee, the office of the Owner Trustee at which at any particular time its corporate trust business shall be administered, which office at the date of the execution of the Basic Documents is located at
                                , Attention:
                    . 
  
 “Curtailment”: With respect to a Mortgage Loan, any payment of principal received in advance of its Monthly Payment and which is not
accompanied by an amount as to interest representing scheduled interest due on any date or dates in any month or months subsequent to the month of prepayment. 
  

“Cut-Off Date”: With respect to the mortgage loans originated on or before
                    , 200  , the close of business on
                    , 200  . With respect to the mortgage loans originated after
                    , 200  , the origination date of such mortgage loan. 
  
 “Cut-Off Date Principal Balance”: Means as to any Mortgage
Loan, the unpaid principal balance of such Mortgage Loan as of the related Cut-Off Date as specified in the amortization schedule at the time relating thereto (before any adjustment to such amortization schedule by reason of any moratorium or
similar waiver or grace period) (or, with respect to Mortgage Loans which were originated after the Cut-Off Date, as of the date of origination) and after giving effect to any previous Curtailments and Liquidation Proceeds allocable to principal
(other than with respect to any Liquidated Mortgage Loan), irrespective of any delinquency in payment by the related Mortgagor. 
  

 A-7 

 “Debt Service Reduction”: With respect to any Mortgage Loan, a reduction by a court of
competent jurisdiction of the Monthly Payment due on such Mortgage Loan in a proceeding under the Bankruptcy Code, except such a reduction that constitutes a Deficient Valuation or that results in a permanent forgiveness of principal. 
  
 “Default”: Any occurrence that is, or with notice or the
lapse of time or both would become, an Event of Default. 
  
 “Defaulted Swap Termination Payment”: Any termination payment required to be made by the trust to the Swap Provider pursuant to the Swap Agreement as a result of an “Event of Default” with respect to which the
Swap Provider is the “Defaulting Party” or a “Termination Event” (other than “Illegality” or “Tax Event”) (each as defined in the Interest Rate Swap Agreement) with respect to which the Swap Provider is the
sole “Affected Party” or with respect to a termination resulting from a Downgrade Terminating Event. 
  
 “Deferred Interest”: For any class of Class M Notes and any Payment Date, the sum of (a) the aggregate amount of interest accrued at the
applicable Note Rate during the related Interest Accrual Period on the portion of the Principal Deficiency Amount allocated to that class, (b) any amounts described in clause (a) for such class for prior Payment Dates that remain unpaid, and (c)
interest accrued for the Accrual Period related to such Payment Date on the amount in clause (b) at the Note Rate applicable to such class. 
  
 “Deficient Valuation”: With respect to any Mortgage Loan, a valuation of the related Mortgaged Property by a court of competent
jurisdiction in an amount less than the then outstanding Principal Balance of the Mortgage Loan, or that results in a permanent forgiveness of principal, which valuation in either case results from a proceeding initiated under the Bankruptcy Code.

  
 “Definitive Notes”: Notes other than
Book-Entry Notes. 
  
 “Deleted Mortgage Loan”: A
Mortgage Loan replaced or to be replaced by a Qualified Substitute Mortgage Loan. 
  
 “Delinquency Advance”: The aggregate of the advances required to be made by the Servicer on any Servicer Remittance Date pursuant to Section 5.18 of the Sale and Servicing Agreement, the amount of any
such advances being equal to the sum of: 
  
 (i) with respect to
each Mortgage Loan, other than an REO Mortgage Loan, that was Delinquent as of the close of business on the last day of the Due Period preceding the related Servicer Remittance Date, the aggregate amount of Monthly Payments (with interest thereon
calculated at the Mortgage Interest Rate (or at such lower rate as may be in effect for such Mortgage Loan pursuant to application of the Relief Act, any Deficient Valuation and/or any Debt Service Reduction), net of the related Servicing Fee) due
during the related Due Period, and 
  
 (ii) with respect to each
REO Property which was acquired during or prior to the related Collection Period and as to which an REO Disposition did not occur during the related Collection Period, an amount equal to the excess, if any, of (i) interest on the Principal Balance
of the related REO Mortgage Loan at the Mortgage Interest Rate (or at such lower rate as may be 

  

 A-8 

 
in effect for such Mortgage Loan pursuant to application of the Relief Act, any Deficient Valuation and/or any Debt Service Reduction) for such REO Mortgage
Loan net of the related Servicing Fee, for the most recently ended Due Period over (ii) the Net REO Proceeds transferred to the Payment Account for such Payment Date; 
  
 provided, however, that in each such case such advance has not been determined by the Servicer to be a Nonrecoverable Advance.
For purposes of the preceding sentence, the Monthly Payment on each Balloon Mortgage Loan with a delinquent Balloon Payment is equal to the assumed monthly payment that would have been due on the related Due Date based on the original principal
amortization schedule for such Balloon Mortgage Loan. 
  
 “Delinquency Ratio”: With respect to any Due Period, the percentage equivalent of a fraction (a) the numerator of which equals the Aggregate Principal Balances of all Mortgage Loans that are sixty (60) or more days
Delinquent (whether or not such Mortgage Loans are in bankruptcy), in foreclosure or converted to REO Property as of the close of business on the last day of such Due Period and (b) the denominator of which is the Pool Balance as of the close of
business on the last day of such Due Period. 
  
 “Delinquent”: A Mortgage Loan is “delinquent” if any payment due thereon is not made by the close of business on the day such payment is scheduled to be due. A Mortgage Loan is “30 days delinquent” if
such payment has not been received by the close of business on the corresponding day of the month immediately succeeding the month in which such payment was due, or, if there is no such corresponding day (e.g., as when a 30-day month follows
a 31-day month in which a payment was due on the 31st day of such month) then on the last day of such immediately succeeding month. Similarly for “60 days delinquent,” “90 days delinquent” and so on. 
  
 “Delivery”: When used with respect to Permitted Investments
means: 
  
 (a) with respect to bankers’ acceptances,
commercial paper, negotiable certificates of deposit and other obligations that constitute “instruments” within the meaning of Section 9-102(a)(47) of the Uniform Commercial Code and are susceptible of physical delivery (except with
respect to Permitted Investments consisting of certificated securities (as defined in Section 8-102(a)(4) of the Uniform Commercial Code)), physical delivery to the Indenture Trustee or its custodian endorsed to the Indenture Trustee or its
custodian or endorsed in blank; 
  
 (b) with respect to a
certificated security (as defined in Section 8-102(a)(4) of the Uniform Commercial Code) (i) delivery of such certificated security, not containing any evidence of a right or interest inconsistent with the Indenture Trustee’s interest therein,
endorsed to, or registered in the name of, the Indenture Trustee or endorsed in blank to a securities intermediary (as defined in Section 8-102(a)(14) of the Uniform Commercial Code) and the making by such securities intermediary of appropriate
entries in its records identifying such certificated securities as credited to the securities account (as defined in Section 8-501(a) of the Uniform Commercial Code) of the Indenture Trustee, or (ii) by delivery thereof to a “clearing
corporation” (as defined in Section 8-102(5) of the Uniform Commercial Code) and the making by such clearing corporation of appropriate entries in its records crediting the securities account of a securities intermediary by the amount of such
certificated security and the making by such 

  

 A-9 

 
securities intermediary of appropriate entries in its records identifying such certificated securities as credited to the securities account of the Indenture
Trustee (all Permitted Investments described in subsections (a) and (b), and “Physical Property”); and, in any event, any such Physical Property in registered form shall be registered in the name of the Indenture Trustee or its nominee or
custodian; and such additional or alternative procedures as may hereafter become appropriate to effect the complete transfer of ownership of any such Permitted Investments to the Indenture Trustee or its nominee or custodian, consistent with then
applicable law or regulations or the interpretation thereof; and 
  
 (c) with respect to any security issued by the U.S. Treasury, Fannie Mae or Freddie Mac that is a book-entry security held through the Federal Reserve System pursuant to federal book-entry regulations, the following procedures, all in
accordance with applicable law, including applicable federal regulations and Articles 8 and 9 of the Uniform Commercial Code: the making by a Federal Reserve Bank of an appropriate entry crediting such Permitted Investment to an account of a
securities intermediary that is also a “participant” pursuant to applicable federal regulations; the making by such securities intermediary of appropriate entries in its records crediting such book-entry security held through the Federal
Reserve System pursuant to federal book-entry regulations and Articles 8 and 9 of the Uniform Commercial Code to the securities account of the Indenture Trustee; and such additional or alternative procedures as may hereafter become appropriate to
effect complete transfer of ownership of any such Permitted Investments to the Indenture Trustee or its nominee or custodian, consistent with then applicable law or regulations or the interpretation thereof. 
  
 “Distributable Interest Amount”: With respect to either
Group of Mortgage Loans, as to any Payment Date, the portion of the Interest Remittance Amount derived from the Mortgage Loans of such Group plus any Group Swap Payment received by the Trust from the Swap Provider and less any Group Swap Payment
paid by the Trust to the Swap Provider, in each case with respect to such Payment Date. 
  
 “Direct Participant”: Any broker-dealer, bank or other financial institution for which the Clearing Agency holds Notes from time to time as a securities depositary. 
  
 [“Dominion”: Dominion Bond Rating Service, Inc., a
corporation organized and existing under Delaware law, or any successor thereto and if such corporation no longer for any reason performs the services of a securities rating agency, “Dominion” shall be deemed to refer to any other
nationally recognized rating agency.] 
  
 “Downgrade
Terminating Event”: The Swap Agreement may be terminated if (x) either of [S&P or Moody’s] downgrades the Swap Provider or its guarantor below the Required Swap Counterparty Rating (but the Swap Provider or its guarantor has a
rating of at least [“BBB-]” or [“A-3”] (if applicable) by [S&P]) or either of [S&P or Moody’s] withdraws its rating of the Swap Provider or its guarantor and (y) at least one of the following events has not occurred:

  
 (i) within the time period specified in the Swap Agreement
with respect to such downgrade, the Swap Provider shall transfer the Swap Agreement, in whole, but not in part, to a counterparty that satisfies the Required Swap Counterparty Rating, subject to the satisfaction of the Rating Agency Condition;

  

 A-10 

 (ii) within the time period specified in the Swap Agreement with respect to such downgrade, the Swap
Provider shall collateralize its exposure to the Trust pursuant to an ISDA Credit Support Annex, subject to the satisfaction of the Rating Agency Condition; provided that such ISDA Credit Support Annex shall be made a credit support document for the
Swap Provider pursuant to an amendment to the Swap Agreement in a form acceptable to the Indenture Trustee; 
  
 (iii) within the time period specified in the Swap Agreement with respect to such downgrade, the obligations of such Swap Provider under the Swap
Agreement shall be guaranteed by a person or entity that satisfies the Required Swap Counterparty Rating, subject to the satisfaction of the Rating Agency Condition; or 
  
 (iv) within the time period specified in the Swap Agreement with respect to such downgrade, such Swap Provider shall take
such other steps, if any, to enable the Trust to satisfy the Rating Agency Condition. 
  
 It shall also be an Additional Termination Event if the Swap Provider or its guarantor has a rating of less than [“BBB-”] or [“A-3”] (if applicable) by [S&P] and within the time period specified in the interest rate
swap agreement, the swap provider, while collateralizing its exposure to the trust, fails to transfer the interest rate swap agreement at its sole cost and expense, in whole, but not in part, to a counterparty that satisfies the Required Swap
Counterparty Rating, subject to satisfaction of the Rating Agency Condition. 
  
 “Due Date”: With respect to any Mortgage Loan and any Monthly Payment, the date on which such Monthly Payment is due from the related Mortgagor. 
  
 “Due Period”: With respect to any Payment Date, the period
commencing on the second day of the month preceding the month in which such Payment Date occurs and ending on the first day of the month in which such Payment Date occurs. 
  
 “Eligible Account”: Either (A) an account or accounts (including any sub-account or sub-accounts)
maintained with an institution (which may include the Indenture Trustee; provided, that the Indenture Trustee otherwise meets these requirements) whose deposits are insured by the FDIC, the unsecured and uncollateralized debt obligations of
which institution shall be rated “AA-” or better by S&P and “Aa2” or better by Moody’s and in the highest short term rating by S&P and Moody’s, and which is (i) a federal savings and loan association duly
organized, validly existing and in good standing under the federal banking laws, (ii) an institution (including the Indenture Trustee) duly organized, validly existing and in good standing under the applicable banking laws of any state, (iii) a
national banking association duly organized, validly existing and in good standing under the federal banking laws, (iv) a principal subsidiary of a bank holding company, or (v) approved in writing by the Rating Agencies or (B) a trust account or
accounts maintained with the trust department of a federal or state chartered depository institution or trust company (which may include the Indenture Trustee; provided, that the Indenture Trustee otherwise meets these requirements), having
capital and surplus of not less than $50,000,000, acting in its fiduciary capacity. 
  
 “ERISA”: The Employee Retirement Income Security Act of 1974, as amended. 
  

 A-11 

 “Event of Default”: As defined in Section 5.01 of the Indenture. 
  
 “Excess Interest”: For any Payment Date is equal to the
excess of (x) the Distributable Interest Amount over (y) the sum (without duplication) of the amounts distributed pursuant to clauses (i) through (iii) under Section 8.01(b) of the Indenture. 
  
 “Excess Subordinated Amount”: As to any Payment Date, the
excess, if any of (i) the Overcollateralization Amount over (ii) the Target Overcollateralization Amount for such Payment Date. 
  
 “Exchange Act”: Means the Securities Exchange Act of 1934, as amended. 
  
 “Extra Principal Distribution Amount”: As to any Payment Date, the lesser of (i) Excess Interest and (ii)
the Overcollateralization Deficiency for such Payment Date. 
  
 “Fannie Mae”: Fannie Mae, formerly known as, The Federal National Mortgage Association, and any successor thereto. 
  
 “FDIC”: The Federal Deposit Insurance Corporation, and any successor thereto. 
  
 “Final Certification”: A certification as to the
completeness of each Indenture Trustee’s Mortgage File prepared by the Indenture Trustee, and provided by the Indenture Trustee within one hundred eighty (180) days of the Closing Date pursuant to Section 2.06(b)(iii) of the Sale and Servicing
Agreement. 
  
 “Final Stated Maturity Date”: The
Payment Date occurring in                         . 
  
 “Foreclosure Profits”: As to any Servicer Remittance Date, the excess, if any, of (i) Net Liquidation
Proceeds in respect of each Mortgage Loan that became a Liquidated Mortgage Loan during the Collection Period immediately preceding such Servicer Remittance Date over (ii) the sum of the unpaid Principal Balance of each such Liquidated Mortgage Loan
plus accrued and unpaid interest at the applicable Mortgage Interest Rate on the unpaid Principal Balance thereof from the Due Date on which interest was last paid by the Mortgagor (or, in the case of a Liquidated Mortgage Loan that had been an REO
Mortgage Loan, from the Due Date on which interest was last deemed to have been paid pursuant to Section 5.06 of the Sale and Servicing Agreement) to the next succeeding Due Date following the date such Loan became a Liquidated Mortgage Loan, plus
any amounts required by applicable law to be paid to the related Mortgagors. 
  
 “Freddie Mac”: Freddie Mac, formerly known as The Federal Home Loan Mortgage Corporation, and any successor thereto. 
  
 “GAAP”: Generally accepted accounting principles, consistently applied. 
  
 “Governmental Plan”: A governmental plan within the meaning
of Section 3(32) of ERISA. 
  

 A-12 

 “Grant”: To assign, transfer, mortgage, pledge, create and grant a security interest in,
deposit, set-over and confirm. A Grant of a Mortgage Loan and the related Mortgage Files, a Permitted Investment, the Sale and Servicing Agreement, or any other instrument shall include all rights, powers and options (but none of the obligations) of
the Granting party thereunder, including, without limitation, the immediate and continuing right to claim for, collect, receive and give receipts for principal and interest payments thereunder, Loan Repurchase Prices and all other moneys payable
thereunder and all proceeds thereof, to give and receive notices and other communications, to make waivers or other agreements, to exercise all rights and options, to bring Proceedings in the name of the Granting party or otherwise, and generally to
do and receive anything that the Granting party is or may be entitled to do or receive thereunder or with respect thereto. 
  
 “Group”: With respect to the Mortgage Loans, either Loan Group I or Loan Group II, as the context requires. 
  
 “Group I Principal Distribution Amount”: As to any Payment
Date, the portion of the Principal Distribution Amount attributable to the Group I Mortgage Loans, determined in accordance with the Class A Principal Allocation Percentage for the Class A-1 Notes. 
  
 “Group I Sequential Trigger Event”: A Group I Sequential
Trigger Event is in effect on any Payment Date if, before the [25]th Payment Date, the aggregate amount of Realized Losses incurred from the Cut-off Date through the last day of the related Prepayment Period divided by the aggregate Stated Principal
Balance of the Mortgage Loans as of the Cut-off Date exceeds             %, or if, on or after the [25]th Payment Date, a Trigger Event is in effect. 
  
 “Group I Swap Payment”: The meaning set forth in Section
8.01(a) of the Indenture. 
  
 “Group II Collateral Loss
Amount”: An amount equal to the product of (a) a fraction, the numerator of which is the Realized Losses for the Group II Mortgage Loans, and the denominator of which is the Realized Losses for all of the Mortgage Loans, (b) the remaining
Realized Losses to be allocated after the reduction of excess spread and overcollateralization, and (c) a fraction, the numerator of which is the sum of the Class Note Balances of the [Class A-2A Notes, the Class A-2B Notes and the Class A-2C Notes]
and the denominator of which is the Class Note Balance of the Class A-2 Notes. 
  
 “Group II Principal Distribution Amount”: As to any Payment Date, the portion of the Principal Distribution Amount attributable to the Group II Mortgage Loans, determined in accordance with the Class
A Principal Allocation Percentage for the Class A-2 Notes. 
  
 “Group II Swap Payment”: The meaning set forth in Section 8.01(a) of the Indenture. 
  
 “Group Swap Payment” means, with respect to Group I and any Payment Date, the related Group I Swap Payment and with respect to Group II
and any Payment Date, the related Group II Swap Payment. 
  

 A-13 

 “Highest Lawful Rate”: As defined in Section 11.19 of the Indenture. 
  
 “Indenture”: The Indenture, dated as of
                    , 200  , between the Trust and the Indenture Trustee, relating to the issuance of the Notes. 

 
 “Indenture Trustee”:
                                        
                                , or its successor-in-interest, or any successor
Indenture Trustee appointed as provided for in Section 6.09 of the Indenture. 
  
 “Indenture Trustee Fee”: As to any Payment Date, the fee payable to the Indenture Trustee in respect of its services as Indenture Trustee pursuant to Section 6.16 of the Indenture as set forth in a
separate fee agreement. 
  
 “Indenture Trustee’s
Mortgage File”: The documents delivered to the Indenture Trustee, pursuant to Section 2.05 of the Sale and Servicing Agreement. 
  
 “Indenture Trustee’s Remittance Report”: The statement prepared pursuant to Section 2.08(d) of the Indenture, containing the
following information with respect to each Class: 
  
 (a) the
amount of the payment with respect to each Class of Notes and Certificates; 
  
 (b) the amount of such payments allocable to principal, separately identifying the aggregate amount of any Principal Prepayments or other unscheduled recoveries of principal included therein and separately identifying
any Overcollateralization Increase Amounts; 
  
 (c) the amount of
such payments allocable to interest and the calculation thereof; 
  
 (d) the Unpaid Interest Shortfall Amount and the Basis Risk Carry-Forward Amount (if applicable); 
  
 (e) the Class Note Balance of each Class of Notes as of such Payment Date, together with the Class Note Balance of each Class of Notes (based on a Note in
an original Class Note Balance of $1,000) then outstanding, in each case after giving effect to any payment of principal on such Payment Date; 
  
 (f) the total of any Substitution Adjustments and any Loan Repurchase Price amounts included in such payment; 
  
 (g) the amounts, if any, of any Realized Losses for the related Collection
Period and cumulative Realized Losses since the Closing Date; 
  
 (h) LIBOR for such Payment Date, if applicable; 
  
 (i)
the related Pool Balance of the Mortgage Loans for the following Payment Date; 
  

 A-14 

 (j) the amount of the aggregate Servicing Fees paid to or retained by the Servicer with respect to such
Payment Date; 
  
 (k) for each of the preceding 12 calendar
months, or all calendar months since the related Cut-off Date, whichever is less, the aggregate dollar amount of the Scheduled Payments (A) due on all outstanding Mortgage Loans on each of the Due Dates in each such month and (B) delinquent 60 days
or more on each of the Due Dates in each such month; 
  
 (l)
whether a Trigger Event has occurred and is continuing (including the calculation of thereof and the related Rolling Three-Month Delinquency Ratio); 
  
 (m) the Overcollateralization Amount and Target Overcollateralization Amount; 
  
 (n) whether a Group I Sequential Trigger Event has occurred and is continuing; 
  
 (o) Prepayment Charges collected and paid by the Servicer; and 
  
 (p) the Net Swap Payment, if any, for such Payment Date. 
  
 Items (a), (b) and (c) above shall, with respect to each Class of Notes, be
presented on the basis of a Note having a $1,000 denomination. 
  
 “Independent”: When used with respect to any specified Person, means such a Person who (i) is in fact independent of the Trust and any other obligor upon the Notes, (ii) does not have any direct financial interest or any
material indirect financial interest in the Trust or in any such other obligor or in an Affiliate of the Trust or such other obligor, and (iii) is not connected with the Trust or any such other obligor as an officer, employee, promoter, underwriter,
trustee, partner, director or person performing similar functions. Whenever it is herein provided that any Independent Person’s opinion or certificate shall be furnished to the Indenture Trustee, such Person shall be appointed by a Trust Order
and such opinion or certificate shall state that the signer has read this definition and that the signer is Independent within the meaning hereof. 
  
 “Indirect Participant”: Any financial institution for whom any Direct Participant holds an interest in a Note. 
  
 “Individual Note”: A Note of an Original Note Principal
Balance of $25,000; a Note of an Original Note Principal Balance in excess of $25,000 shall be deemed to be a number of Individual Notes equal to the quotient obtained by dividing such Original Note Principal Balance amount by $25,000. 

 
 “Initial Certification”: A certification as to the
completeness of each Indenture Trustee’s Mortgage File prepared by the Indenture Trustee, and provided by the Indenture Trustee within sixty (60) days of the Closing Date pursuant to Section 2.06(b)(ii) of the Sale and Servicing Agreement.

  

 A-15 

 “Initial Pool Balance”: The aggregate Cut-Off Date Principal Balance of the Mortgage
Loans as of the Cut-Off Date. When used in reference to a Group of Mortgage Loans, “Initial Pool Balance” refers to the aggregate Cut-Off Date Principal Balance of the Mortgage Loans included in such Group. 
  
 “Insurance Proceeds”: Proceeds paid by any insurer pursuant
to any insurance policy covering a Mortgage Loan to the extent such proceeds are not applied to the restoration of the related Mortgaged Property or released to the related Mortgagor in accordance with the express requirements of law or in
accordance with prudent and customary servicing practices. 
  
 “Interest Accrual Period”: [With respect to the LIBOR Notes and for each Payment Date, the period from and including the prior Payment Date (or, in the case of the first Payment Date, from the Closing Date) to, but
excluding the current Payment Date; interest will accrue on the LIBOR Notes on the basis of a 360-day year and the actual number of days elapsed in the interest accrual period. ] 
  
 “Interest Determination Date”: With respect to any Interest Accrual Period for the LIBOR Notes, the second
London Business Day prior to the immediately preceding Payment Date; provided, however, that with respect to the
                     Payment Date, the Interest Determination Date shall be
                    , 200  . 
  
 “Interest Payment Amount”: For any Payment Date and Class of Notes, an amount equal to the Accrued Note Interest for such Class of Notes
on such Payment Date, plus the Unpaid Interest Shortfall Amount for such Class of Notes as of such Payment Date. 
  
 “Interest Remittance Amount”: For any Payment Date, an amount equal to that portion of the Servicer Remittance Amount for the related
Servicer Remittance Date, which relates to interest, together with: 
  
 (i) the interest portion of the proceeds received by the Indenture Trustee upon the exercise by the Seller of its option to call the Notes; and 
  
 (ii) the interest portion of the proceeds received by the Indenture Trustee on any termination of the Trust. 
  
 “Letter Agreement”: The Letter of Representations to the
Clearing Agency from the Indenture Trustee and the Trust dated                     , 200  . 
  
 “LIBOR”: With respect to any Interest Accrual Period, the
rate determined by the Indenture Trustee on the related Interest Determination Date on the basis of the posted rate U.S. dollar deposits for one month which appears on Telerate Page 3750, as of 11:00 a.m. (London time) on such Interest Determination
Date. If no such posted rate appears, LIBOR will be determined on the basis of the offered quotation of the Reference Banks for U.S. dollar deposits for one month to prime banks in the London interbank market as of 11:00 a.m. London time, on such
date. If fewer than two Reference Banks provide such offered quotations on that date, LIBOR will be calculated as the offered rate which one or more leading banks in The City of New York selected by the Indenture Trustee (after consultation with the
Servicer) are quoting as of 11:00 a.m., New York City time, on such date to leading European banks for U.S. dollar 

  

 A-16 

 
deposits for one month; provided, however, that if such banks are not quoting as described above, LIBOR will be equal to the value calculated
for the immediately preceding Interest Accrual Period. 
  
 In any
event, LIBOR is calculated as the arithmetic mean (rounded, if necessary, to the nearest 1/100th of a percent
(0.0001), with upwards rounding of amounts equal to or in excess of 5/1,000th of a percent (0.00005) of all such
quotations. 
  
 “LIBOR Notes”: The Class A Notes
and the Class M Notes. 
  
 “Liquidated Mortgage
Loan”: A Mortgage Loan with respect to which the related Mortgaged Property has been acquired, liquidated or foreclosed and with respect to which the Servicer determines that all Liquidation Proceeds which it expects to recover have been
recovered and for which the Servicer has so designated on its Servicer Remittance Report. 
  
 “Liquidation Expenses”: Expenses incurred by the Servicer in connection with the liquidation of any defaulted Mortgage Loan or property acquired in respect thereof (including, without limitation,
legal fees and expenses, committee or referee fees, and, if applicable, brokerage commissions and conveyance taxes), any unreimbursed amount expended by the Servicer pursuant to Sections 5.04 and 5.06 of the Sale and Servicing Agreement respecting
the related Mortgage Loan and any unreimbursed expenditures for real property taxes or for property restoration or preservation of the related Mortgaged Property. Liquidation Expenses shall not include any previously incurred expenses in respect of
an REO Mortgage Loan which have been netted against related REO Proceeds. 
  
 “Liquidation Proceeds”: The amount received by the Servicer in connection with (i) the taking of all or a part of a Mortgaged Property by exercise of the power of eminent domain or condemnation, (ii)
the liquidation of a defaulted Mortgage Loan through an Indenture Trustee’s sale, foreclosure sale, REO Disposition or otherwise or (iii) the liquidation of any other security for such Mortgage Loan, including, without limitation, pledged
equipment, inventory and working capital and assignments of rights and interests made by the related Mortgagor. 
  
 “Loan Group”: Any of Loan Group I or Loan Group II. 
  
 “Loan Group I”: The pool of Mortgage Loans identified in the Mortgage Loan Schedule for Group I.

  
 “Loan Group I Cap”: As to any Payment Date, a
per annum rate equal to the product of (i) 30 divided by the actual number of days in the Interest Accrual Period for the Class A Notes and (ii) the sum of (A) the weighted average gross coupon of the Group I Mortgage Loans in effect on the
beginning of the related Due Period less the Servicing Fee Rate and the Trustee Fee Rate and (B) the Net Swap Payment into the Trust allocable to the Group I Mortgage Loans, if any, less the Senior Swap Payment out of the Trust allocable to the
Group I Mortgage Loans, if any, divided by the Group I Pool Balance at the beginning of the related Due Period multiplied by 12. 
  
 “Loan Group II”: The pool of Mortgage Loans identified in the Mortgage Loan Schedule for Group II. 
  

 A-17 

 “Loan Group II Cap”: As to any Payment Date, a per annum rate equal to the product of
(i) 30 divided by the actual number of days in the Interest Accrual Period for the Class A Notes and (ii) the sum of (A) the weighted average gross coupon of the Group II Mortgage Loans in effect on the beginning of the related Due Period less the
Servicing Fee Rate and the Trustee Fee Rate and (B) the Net Swap Payment into the Trust allocable to the Group II Mortgage Loans, if any, less the Senior Swap Payment out of the Trust allocable to the Group II Mortgage Loans, if any, divided by the
Group II Pool Balance at the beginning of the related Due Period multiplied by 12. 
  
 “Loan Repurchase Price”: With respect to any Mortgage Loan, the Principal Balance of such Mortgage Loan as of the date of repurchase, plus the greater of (x) all accrued and unpaid interest thereon
and (y) thirty (30) days’ interest thereon, computed, as of the next succeeding Due Date for such repurchased Mortgage Loan, at the Mortgage Interest Rate, plus the amount of any unreimbursed Delinquency Advances and Servicing Advances made by
the Servicer with respect to such Mortgage Loan, plus any costs and damages incurred by the Trust in connection with any violation by such mortgage loan of any predatory or abusive lending law, which purchase price shall be deposited in the
Collection Account on the next succeeding Servicer Remittance Date, after deducting therefrom any amounts received in respect of such repurchased Mortgage Loan or Loans and being held in the Collection Account for future payment to the extent such
amounts have not yet been applied to principal or interest on such Mortgage Loan. 
  
 “Loan-to-Value Ratio” or “LTV”: With respect to any Mortgage Loan as of its date of origination, the ratio on such date borne by the original Principal Balance of the Mortgage Loan to
the Appraised Value of the related Mortgaged Property. 
  
 “London Business Day”: A day on which banking institutions in the City of London, England, are not required or authorized to be closed. 
  
 “Majority Noteholders”: With respect to the Notes, the Holder or Holders of Notes evidencing Percentage
Interests in excess of 51% in the aggregate. 
  
 “Maximum
Collateral Amount”: With respect to each Loan Group or both Loan Groups, the Cut-Off Date Aggregate Principal Balance for the related Loan Group or both Loan Groups, as required by the context. 
  
 “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. 
  
 “MOM
Loan”: A Mortgage Loan for which MERS is 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. 
  

 A-18 

 “Monthly Payment”: As to any Mortgage Loan (including any REO Mortgage Loan) and any Due
Date, the payment of principal and interest due thereon as specified for such Due Date in the related amortization schedule at the time applicable thereto (after adjustment for any Curtailments and Deficient Valuations occurring prior to such Due
Date but before any adjustment to such amortization schedule by reason of any bankruptcy, other than Deficient Valuations, or similar proceeding or any moratorium or similar waiver or grace period). 
  
 [“Moody’s”: Moody’s Investors Service, Inc., a
corporation organized and existing under Delaware law, or any successor thereto and if such corporation no longer for any reason performs the services of a securities rating agency, “Moody’s” shall be deemed to refer to any other
nationally recognized rating agency.] 
  
 “Mortgage”: The mortgage, deed of trust or other instrument creating a first or second lien on the Mortgaged Property. 
  
 “Mortgage File”: As described in Exhibit A to the Sale and Servicing Agreement. 
  
 “Mortgage Interest Rate”: As to any Mortgage Loan, the per
annum rate at which interest accrues on the unpaid Principal Balance thereof. 
  
 “Mortgage Loan Schedule”: The schedule of Mortgage Loans as of the Cut-Off Date attached as Schedule I to the Indenture, which will be deemed to be modified automatically to reflect any replacement,
sale, substitution, liquidation, transfer or addition of any Mortgage Loan. The Mortgage Loan Schedule sets forth as to each Mortgage Loan: (i) its identifying number and the name of the related Mortgagor; (ii) the billing address, mailing address
and property address for the related Mortgaged Property including the state and zip code; (iii) its date of origination; (iv) the original number of months to stated maturity; (v) a designation indicating whether or not such Mortgage Loan is a
Balloon Loan; (vi) the original Principal Balance; (vii) its Principal Balance as of the applicable Cut-Off Date and its Cut-Off Date Principal Balance; (viii) the Mortgage Interest Rate and margin; (ix) the scheduled monthly payment of principal
and interest; (x) a Group designation; (xi) the LTV; and (xii) if the Mortgage Loan is registered with MERS on the MERS System, the MIN. 
  
 “Mortgage Loans”: The Mortgage Loans (together with any Qualified Substitute Mortgage Loans substituted therefor in accordance with the
Basic Documents, as from time to time are held as a part of the Trust), so being identified in the Mortgage Loan Schedule on the Closing Date. When used in respect of any Payment Date, the term Mortgage Loans shall mean all Mortgage Loans (including
those in respect of which the Indenture Trustee has acquired the related Mortgaged Property) which have not been repaid in full prior to the related Due Period, did not become Liquidated Mortgage Loans prior to such related Due Period or were not
repurchased or replaced by the Sponsor prior to such related Due Period. 
  
 “Mortgage Note”: The original, executed note or other evidence of any indebtedness of a Mortgagor under a Mortgage Loan. 
  
 “Mortgaged Property”: The underlying property or properties securing a Mortgage Loan, consisting of a fee
simple or leasehold interest in one or more parcels of land. 
  

 A-19 

 “Mortgagor”: The obligor on a Mortgage Note. 
  
 “Net Foreclosure Profits”: As to any Servicer Remittance
Date, the excess, if any, of (i) the aggregate Foreclosure Profits with respect to such Servicer Remittance Date over (ii) Realized Losses with respect to such Servicer Remittance Date. 
  
 “Net Liquidation Proceeds”: As to any Liquidated Mortgage Loan, Liquidation Proceeds net of Liquidation
Expenses and net of any unreimbursed Delinquency Advances and Servicing Advances made by the Servicer with respect to such Liquidated Mortgage Loan. For all purposes of the Basic Documents, Net Liquidation Proceeds shall be allocated first to
accrued and unpaid interest on the related Mortgage Loan and then to the unpaid Principal Balance thereof. 
  
 “Net Monthly Excess Cashflow” With respect to any Payment Date, the sum of (i) the amount of Available Funds for such Payment Date
remaining after making all payments described in Section 8.01(b) and (c) of the Indenture and (ii) the Excess Subordinated Amount. 
  
 “Net Prepayment Interest Shortfalls”: For any Payment Date and either Group of Mortgage Loans, the amount by which the aggregate
Prepayment Interest Shortfalls for such Group during the related Prepayment Period exceeds available Compensating Interest for such Group. 
  
 “Net REO Proceeds”: As to any REO Mortgage Loan, REO Proceeds net of any related expenses of the Servicer. 
  
 “Net Swap Payment”: With respect to each Payment Date, the
net payment required to be made pursuant to the terms of the Swap Agreement which is calculated by netting the amount of any payment that would otherwise be received by the Trust and the amount of any payment that would otherwise be made by the
Trust to the Swap Provider, which net payment shall not take into account any Swap Termination Payment. 
  
 “Nonrecoverable Advances”: Means, with respect to any Mortgage Loan, (a) any Delinquency Advance or Servicing Advance previously made and
not reimbursed pursuant to Section 5.03 of the Sale and Servicing Agreement, or (b) a Delinquency Advance proposed to be made in respect of a Mortgage Loan or REO Property either of which, in the good faith business judgment of the Servicer, as
evidenced by an Officer’s Certificate delivered to the Indenture Trustee no later than the Business Day following such determination, would not ultimately be recoverable pursuant to Section 5.03 of the Sale and Servicing Agreement. 

 
 “Note”: Any Class A Note or Class M Note executed by the
Owner Trustee on behalf of the Trust and authenticated by the Indenture Trustee. 
  
 “Note Rate”: For each class of Notes, the applicable annual rate described below: 
  
 • Class A-1A Notes, the lesser of (i)             %
(            % after the first Payment Date that is a Clean-Up Call Date) per annum and (ii) the Loan Group I Cap. 
  

 A-20 

 • Class A-1B Notes, the lesser of (i)
            % (            % after the first Payment Date that is a Clean-Up Call Date) per annum and (ii) the Loan
Group I Cap. 
  
 • Class A-2A Notes, the lesser of (i)
            % (            % after the first Payment Date that is a Clean-Up Call Date) per annum and (ii) the Loan
Group II Cap. 
  
 • Class A-2B Notes, the lesser of (i)
            % (            % after the first Payment Date that is a Clean-Up Call Date) per annum and (ii) the Loan
Group II Cap. 
  
 • Class A-2C Notes, the lesser of (i)
            % (            % after the first Payment Date that is a Clean-Up Call Date) per annum and (ii) the Loan
Group II Cap. 
  
 • Class M-1 Notes, the lesser of (i)
            % (            % after the first Payment Date that is a Clean-Up Call Date) per annum and (ii) the WAC
Cap. 
  
 • Class M-2 Notes, the lesser of (i)
            % (            % after the first Payment Date that is a Clean-Up Call Date) per annum and (ii) the WAC
Cap. 
  
 • Class M-3 Notes, the lesser of (i)
            % (            % after the first Payment Date that is a Clean-Up Call Date) per annum and (ii) the WAC
Cap. 
  
 • Class M-4 Notes, the lesser of (i)
            % (            % after the first Payment Date that is a Clean-Up Call Date) per annum and (ii) the WAC
Cap. 
  
 • Class M-5 Notes, the lesser of (i)
            % (            % after the first Payment Date that is a Clean-Up Call Date) per annum and (ii) the WAC
Cap. 
  
 • Class M-6 Notes, the lesser of (i)
            % (            % after the first Payment Date that is a Clean-Up Call Date) per annum and (ii) the WAC
Cap. 
  
 “Noteholder” or
“Holder”: Each Person in whose name a Note is registered in the Note Register, except that, solely for the purposes of giving any consent, waiver, request or demand pursuant to the Indenture, any Note registered in the name of the
Servicer or the Sponsor, or any Affiliate of any of them, shall be deemed not to be outstanding and the undivided Percentage Interest evidenced thereby shall not be taken into account in determining whether the requisite percentage of Notes
necessary to effect any such consent, waiver, request or demand has been obtained. For purposes of any consent, waiver, request or demand of Noteholders pursuant to the Indenture, upon the Indenture Trustee’s request, the Servicer and the
Sponsor shall provide to the Indenture Trustee a notice identifying any of their respective Affiliates that is a Noteholder as of the date(s) specified by the Indenture Trustee in such request. 
  

 A-21 

 “Note Register”: As defined in Section 2.06 of the Indenture. 
  
 “Note Registrar”: As defined in Section 2.06 of the
Indenture. 
  
 “Officer’s Certificate”: A
certificate signed by the chairman of the board, the president or a vice president and the treasurer, the secretary or one of the assistant treasurers or assistant secretaries of the Sponsor, the Servicer, or, with respect to the Trust, a
certificate signed by a Responsible Officer of the Owner Trustee, at the direction of the Certificateholders as required by any Basic Document. 
  
 “Opinion of Counsel”: A written opinion of counsel, who may, without limitation, be counsel for the Sponsor, the Servicer, the Indenture
Trustee, the Owner Trustee, a Noteholder or a Noteholder’s prospective transferee (including except as otherwise provided herein, in-house counsel) reasonably acceptable to each addressee of such opinion and experienced in matters relating to
the subject of such opinion. 
  
 “Original Note Principal
Balance”: As of the Closing Date and as to each Class of Notes, as follows. The Certificates do not have an “Original Note Principal Balance.” 
  

				
	 Class

	  	Original Note Principal Balance

	 	  	$	 
	 	  	$	 
	 	  	$	 
	 	  	$	 
	 	  	$	 
	 	  	$	 
	 	  	$	 
	 	  	$	 
	 	  	$	 
	 	  	$	 
	 	  	$	 

  
 “Outstanding”: As of the date of determination, all Notes theretofore authenticated and delivered under the Indenture except: 
  
 (i) Definitive Notes theretofore canceled by the Note Registrar or delivered to the Note Registrar for cancellation; 
  
 (ii) Notes or portions thereof for whose payment or redemption money in the
necessary amount has been theretofore deposited with the Indenture Trustee in trust for the Holders of such Notes; provided, however, that if such Notes are to be redeemed, notice of such redemption has been duly given pursuant to this
Indenture or provision therefor, satisfactory to the Indenture Trustee, has been made; 
  

 A-22 

 (iii) Notes in exchange for or in lieu of which other Notes have been authenticated and delivered
pursuant to this Indenture unless proof satisfactory to the Indenture Trustee is presented that any such Notes are held by a bona fide purchaser (as defined by the Uniform Commercial Code of the applicable jurisdiction); and 
  
 (iv) Notes alleged to have been destroyed, lost or stolen that have been paid
as provided for in Section 2.07 of the Indenture; 
  
 provided,
however, that in determining whether the Holders of the requisite percentage of the Class Note Balance of the Outstanding Notes have given any request, demand, authorization, direction, notice, consent or waiver hereunder, Notes owned by the
Trust, any other obligor upon the Notes or any Affiliate of the Trust, the Servicer or the Sponsor or such other obligor shall be disregarded and deemed not to be Outstanding, except that, in determining whether the Indenture Trustee shall be
protected in relying upon any such request, demand, authorization, direction, notice, consent or waiver, only Notes that a Responsible Officer of the Indenture Trustee has actual knowledge to be so owned shall be so disregarded. Notes so owned that
have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction of the Indenture Trustee the pledgee’s right so to act with respect to such Notes and that the pledgee is not the Trust, any other
obligor upon the Notes or any Affiliate of the Trust, the Servicer or the Sponsor or such other obligor. 
  
 “Overcollateralization Amount”: As to any Payment Date will be equal to the amount, if any, by which (x) the Pool Balance as of the end
of the related Due Period exceeds (y) the aggregate Class Note Balances of the Notes, after giving effect to payments on such Payment Date. 
  
 “Overcollateralization Deficiency”: As to any Payment Date will be equal to the amount, if any, by which (x) the Target
Overcollateralization Amount for such Payment Date exceeds (y) the Overcollateralization Amount for such Payment Date, calculated for this purpose after giving effect to the reduction on such Payment Date of the Class Note Balances of the Notes
resulting from the payment of the Principal Remittance Amount on such Payment Date. 
  
 “Owner-Occupied Mortgaged Property”: A Residential Dwelling as to which (a) the related Mortgagor represented an intent to occupy as such Mortgagor’s primary residence at the origination of the
Mortgage Loan, and (b) the Sponsor has no actual knowledge that such Residential Dwelling is not so occupied. 
  
 “Ownership Interest”: As to any Note, any ownership or security interest in such Note, including any interest in such Note as the Holder
thereof and any other interest therein, whether direct or indirect, legal or beneficial, as owner or as pledgee. 
  
 “Owner Trustee”:
                                        
                                        
    , a
                                        
                                        
    , not in its individual capacity, but solely as owner trustee under the Trust Agreement, and any successor owner trustee thereunder. 
  

“Owner Trustee Fee”: As defined in Section 9.01 of the Trust Agreement. 
  

 A-23 

 “Payahead”: Any payment made by a mortgagor during a Due Period which is intended by the
mortgagor to be an early payment of one or more scheduled monthly payments due with respect to subsequent Due Periods, and not as a curtailment to be applied in full as a reduction in the principal balance of the related mortgage loan. 

 
 “Paying Agent”: The Indenture Trustee or any other
depository institution or trust company that is authorized by the Trust pursuant to Section 3.03 of the Indenture to pay the principal of, or interest on, any Notes on behalf of the Trust, which agent, if not the Indenture Trustee, shall have signed
an instrument agreeing to be bound by the terms of the Indenture applicable to such Paying Agent. 
  
 “Payment Account”: With respect to the Groups, the segregated trust account, which shall be an Eligible Account, established and
maintained pursuant to Section 8.01(a) of the Indenture and entitled
“                                       
                                        
     ”, as Indenture Trustee for Accredited Mortgage Loan Trust 200  -   Asset-Backed Notes, Series 200  -  , Payment Account,” on behalf of
the Noteholders. 
  
 “Payment Date”: The [25]th
day of any month or if such [25]th day is not a Business Day, the first Business Day immediately following, commencing in
                    . 
  
 “Percentage Interest”: With respect to a Note of any Class, the portion evidenced by such Note, expressed as a percentage rounded to four
decimal places, equal to a fraction the numerator of which is the denomination represented by original principal balance of such Note and the denominator of which is the Original Note Principal Balance of such Class. With respect to the
Certificates, the portion evidenced thereby as stated on the face of such Certificate. 
  
 “Permitted Investments”: As used herein, Permitted Investments shall include the following: 
  
 (i) obligations of, or guaranteed as to timely payments of 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 three months from the date of acquisition thereof, provided that the unsecured obligations of the party agreeing to repurchase
such obligations are at the time rated at least A-l+ by S&P and in one of the two highest ratings by Moody’s; 
  
 (iii) certificates of deposit, time deposits and bankers’ acceptances (which, in the case of bankers’ acceptances, shall in no event have an
original maturity of more than 365 days) of any U.S. depository institution or trust company, incorporated under the laws of the United States or any state; provided, that the debt obligations of such depository institution or trust company
at the date of acquisition thereof have been rated in one of the two highest ratings by Moody’s and S&P. 
  
 (iv) commercial paper (having original maturities of not more than 270 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 in the highest short-term rating by each of the Rating Agencies; and 
  

 A-24 

 (v) units of money market funds registered under the Investment Company Act of 1940, investing in
any of the foregoing, including any funds managed or advised by the Indenture Trustee or any affiliate of the Indenture Trustee; provided, such money market funds are at the time rated at least “AAAm” or “AAAm-G” by
S&P, and in one of the two highest short-term ratings by Moody’s; 
  
 provided, that no instrument described hereunder shall evidence either the right to receive (x) only interest with respect to the obligations underlying such instrument or (y) both principal and interest payments derived from
obligations underlying such instrument and the interest and principal payments with respect to such instrument provided a yield to maturity at par greater than 120% of the yield to maturity at par of the underlying obligations; and provided,
further, that no instrument described hereunder may be purchased at a price greater than par if such instrument may be prepaid or called at a price less than its purchase price prior to stated maturity. 
  
 “Person”: Any individual, corporation, partnership, limited
liability company, joint venture, association, joint-stock company, trust, national banking association, unincorporated organization or government or any agency or political subdivision thereof. 
  
 “Physical Property”: As defined in clause (b) of the
definition of “Delivery.” 
  
 “Plan”:
Either (i) an employee benefit plan (within the meaning of Section 3(3) of ERISA) that is subject to Title I of ERISA, (ii) a plan (within the meaning of Section 4975(e)(1) of the Code) that is subject to Section 4975 of the Code or (iii) a
Governmental Plan that is subject to any federal, state or local law that is, to a material extent, similar to Title I of ERISA or Section 4975 of the Code. 
  
 “Pool Balance”: For any date and with respect to the Mortgage Loans or a Group of Mortgage Loans, the Aggregate Principal Balances of the
related Mortgage Loans as of such date. 
  
 “Pool
Subordinate Amount”: As to any Payment Date and a Group of Mortgage Loans, the excess of the Pool Balance for such Group for the immediately preceding Payment Date over the aggregate Class Note Balance of the Class A-1 Notes (in the case of
the Group I Mortgage Loans) or the aggregate Class Note Balance of the Class A-2 Notes (in the case of Group II Mortgage Loans), in each case immediately prior to the related Payment Date. 
  
 “Predecessor Notes”: With respect to any particular Note,
every previous Note evidencing all or a portion of the same debt as that evidenced by such particular Note; and, for the purpose of this definition, any Note authenticated and delivered under Section 2.07 of the Indenture in lieu of a lost,
destroyed or stolen Note shall be deemed to evidence the same debt as the lost, destroyed or stolen Note. 
  
 “Preference Claim”: As defined in Section 8.03(f) of the Indenture. 
  

 A-25 

 “Prepayment Charge”: As to a Mortgage Loan, any charge paid by a Mortgagor in connection
with Principal Prepayment made within the related Prepayment Charge Period, the Prepayment Charges with respect to each applicable Mortgage Loan so held by the Trust being identified in a Prepayment Charge Schedule (other than any Servicer
Prepayment Charge Payment Amount). 
  
 “Prepayment Charge
Period”: As of any Mortgage Loan, the period of time, if any, during which a Prepayment Charge may be imposed. 
  
 “Prepayment Charge Schedule”: As of any date, the list of Prepayment Charges on the Mortgage Loans included in the Trust on such date,
attached as Exhibit H to the Sale and Servicing Agreement. The Prepayment Charge Schedule shall set forth the following information with respect to each Prepayment Charge: 
  
 (i) the Mortgage Loan identifying number; 
  
 (ii) a code indicating the term of the Prepayment Charge; 
  
 (iii) the state of origination of the related Mortgage Loan; 
  
 (iv) the date on which the first Monthly Payment was due on the related Mortgage Loan; 
  
 (v) the term of the related Mortgage Loan; and 
  
 (vi) the Cut-Off Date Principal Balance of the related Mortgage Loan.

  
 “Prepayment Interest Shortfall”: With respect
to any Payment Date, for each Mortgage Loan that was the subject during the related Prepayment Period of a Principal Prepayment in full, an amount equal to the excess, if any, of (a) 30 days’ interest on the Principal Balance of such Mortgage
Loan at a per annum rate equal to (i) the Mortgage Interest Rate (or at such lower rate as may be in effect for such Mortgage Loan pursuant to application of the Relief Act, any Deficient Valuation and/or any Debt Service Reduction) minus
(ii) the Servicing Fee Rate, over (b) the amount of interest actually remitted by the related Mortgagor in connection with such Principal Prepayment in full, less the Servicing Fee for such Mortgage Loan in such month. 
  
 “Prepayment Period”: With respect to any Payment Date and
Principal Prepayments in full, the period commencing on the 16th day of the month preceding the month in which such
Payment Date occurs (or, in the case of the first Payment Date, the day following the Cut-Off Date) and ending on the 15th day of the month in which such Payment Date occurs. 
  
 “Principal Balance”: As to any Mortgage Loan and any date of determination, the outstanding principal balance of such Mortgage Loan as of such date of determination. 
  
 “Principal Deficiency Amount”: For any Payment Date, the
Principal Deficiency Amount shall equal the excess of the aggregate Class Note Balance of all classes of Notes immediately prior to such Payment Date over the aggregate scheduled principal balance of the 

  

 A-26 

 
Mortgage Loans as of the first day of the related Due Period. On any Payment Date, the total Principal Deficiency Amount shall be allocated among the classes
of Class M Notes in reverse order of their seniority. Thus, for instance, the Principal Deficiency Amount for any Payment Date will first be allocated to the Class M-6 Notes and, to the extent the Principal Deficiency Amount for such Payment Date
exceeds the aggregate Class Note Balance of the Class M-6 Notes, such excess Principal Deficiency Amount shall be allocated to the Class M-5 Notes, and so on. 
  

“Principal Distribution Amount”: As to any Payment Date, the sum of (i) the Basic Principal Distribution Amount and (ii) the Extra
Principal Distribution Amount. 
  
 “Principal
Prepayment”: Any payment of principal made by the Mortgagor on a Mortgage Loan which is received in advance of its scheduled Due Date. 
  
 “Principal Remittance Amount”: For any Payment Date, an amount equal to that portion of the Servicer Remittance Amount for the related
Servicer Remittance Date which relates to principal, together with: 
  
 (i) the principal portion of the proceeds received by the Indenture Trustee upon the exercise by the Seller of its option to call the Notes; 
  
 (ii) the principal portion of the proceeds received by the Indenture Trustee on any termination of the Trust; and 
  
 (iii) the Subsequent Recoveries received. 
  
 “Proceeding”: Any suit in equity, action at law or other
judicial or administrative proceeding. 
  
 “Prospectus
Supplement”: The Prospectus Supplement dated                     , 200   relating to the Notes filed with the
Commission in connection with the Registration Statement heretofore filed or to be filed with the Commission pursuant to Rule 424(b)(5). 
  
 “Qualified Appraiser”: An appraiser, duly appointed by the Sponsor, who had no interest, direct or indirect, in the Mortgaged Property or
in any loan made on the security thereof, and whose compensation is not affected by the approval or disapproval of the Mortgage Loan, and such appraiser and the appraisal made by such appraiser both satisfy the requirements of Title XI of the
Federal Institutions Reform, Recovery and Enforcement Act of 1989 and the regulations promulgated thereunder, all as in effect on the date the Mortgage Loan was originated. 
  
 “Qualified REIT Subsidiary”: Has the meaning set forth in Section 856(i) of the Code. 
  
 “Qualified Substitute Mortgage Loan”: A mortgage loan or
mortgage loans substituted for a Deleted Mortgage Loan pursuant to Section 2.06 or 4.02(b) of the Sale and Servicing Agreement, which (a) has or have an interest rate greater than or equal to those applicable to the Deleted Mortgage Loan, (b)
relates or relate to a detached one- to four-family 

  

 A-27 

 
residence and has or have the same or a better lien priority as the Deleted Mortgage Loan and has or have the same occupancy status as the Deleted Mortgage
Loan or is or are Owner-Occupied Mortgaged Property(ies), (c) matures or mature no later than (and not more than one year earlier than) the Deleted Mortgage Loan, (d) has or have a Loan-to-Value Ratio or Loan-to-Value Ratios at the time of such
substitution no higher than the Loan-to-Value Ratio of the Deleted Mortgage Loan, (e) has or have a Stated Principal Balance or Stated Principal Balances, 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 principal balance) not more than the Stated Principal Balance of the Deleted Mortgage Loan as of such date and (f) complies or
comply as of the date of substitution with each representation and warranty set forth in Section 4.01 of the Sale and Servicing Agreement. 
  
 “Rating Agency”:
                                        
                                        
    . 
  
 “Rating Agency
Condition”: Means, with respect to any action to which a Rating Agency Condition applies, that each Rating Agency shall have been given ten (10) days (or such shorter period as is acceptable to each Rating Agency) prior notice thereof and
that each of the Rating Agencies shall have notified the Indenture Trustee, the Servicer, the Sponsor, the Seller and the Trust in writing that such action will not result in a reduction, qualification or withdrawal of the then current
“implied” rating of the Notes that it maintains. 
  
 “Realized Loss”: The amount determined by the Servicer, in accordance with its standard procedure, in connection with any Mortgage Loan equal to: 
  
 (i) with respect to any Mortgage Loan which has been liquidated, the excess of the Principal Balance of that Mortgage Loan
plus interest thereon at a rate equal to the applicable mortgage rate less the Servicing Fee Rate from the Due Date as to which interest was last paid or advanced up to the Due Date next succeeding such liquidation over proceeds, if any, received in
connection with such liquidation, after application of all withdrawals permitted to be made by the Servicer from the Collection Account with respect to such Mortgage Loan, 
  
 (ii) with respect to any Mortgage Loan which has become the subject of a Deficient Valuation, the excess of the Principal
Balance of the Mortgage Loan over the Principal Amount as reduced in connection with the proceedings resulting in the Deficient Valuation or 
  
 (iii) with respect to any Mortgage Loan which has become the subject of a Debt Service Reduction, the present value of all monthly Debt Service Reductions
on such Mortgage Loan, assuming that the Mortgagor pays each scheduled monthly payment on the applicable due date and that no Prepayments are received with respect to such Mortgage Loan, discounted monthly at the applicable mortgage rate.

  
 “Record Date”: [With respect to the Notes,
the last Business Day immediately preceding the related Payment Date so long as the Notes are in book-entry form and for Notes in definitive form, the last Business Day of the month immediately preceding the month in which the Payment Date occurs.]

  

 A-28 

 “Redemption Date”: The Payment Date, if any, on which the related Notes are redeemed, in
each case, pursuant to Article X of the Indenture, which date may occur on or after the related Clean-Up Call Date. 
  
 “Reference Banks”: Citibank, Barclay’s Bank PLC, The Bank of Tokyo-Mitsubishi and National Westminster Bank PLC; provided,
that if any of the foregoing banks are not suitable to serve as a Reference Bank, then any leading banks selected by the Indenture Trustee (after consultation with the Servicer) which are engaged in transactions in Eurodollar deposits in the
international Eurocurrency market (i) with an established place of business in London, (ii) not controlling, under the control of or under common control with the Servicer or the Indenture Trustee or any affiliate thereof and (iii) whose quotations
appear on the Telerate Page 3750 on the relevant Interest Determination Date. 
  
 “Relief Act”: The Servicemembers Civil Relief Act. 
  
 “Relief Act Interest Shortfall”: With respect to any Payment Date, for any Mortgage Loan as to which there has been a reduction in the
amount of interest collectible thereon for the most recently ended Due Period as a result of the application of the Relief Act or similar state law, the amount, if any, by which (a) interest collectible on such Mortgage Loan during the most recently
ended calendar month is less than (b) one month’s interest on the Principal Balance of such Mortgage Loan, calculated at a rate equal to the related Mortgage Interest Rate. 
  
 “REIT”: A real estate investment trust within the meaning of section 856(a) of the Code that satisfies the
requirements of section 857(a). 
  
 “REO
Disposition”: The final sale by the Servicer of a REO Property acquired by the Servicer in foreclosure or by deed in lieu of foreclosure. 
  
 “REO Mortgage Loan”: Any Mortgage Loan which is not a Liquidated Mortgage Loan and as to which the indebtedness evidenced by the related
Mortgage Note is discharged and the related Mortgaged Property is held as part of the Trust. 
  
 “REO Proceeds”: Proceeds received in respect of any REO Mortgage Loan (including, without limitation, proceeds from the rental of the related Mortgaged Property). 
  
 “REO Property”: A Mortgaged Property acquired by the
Servicer in the name of the Indenture Trustee on behalf of the Noteholders through foreclosure or deed-in-lieu of foreclosure. 
  
 “Request for Release”: A request for release in substantially the form attached as Exhibit F of the Sale and Servicing Agreement.

  
 “Required Swap Counterparty Rating”: With
respect to a counterparty or entity guaranteeing the obligations of such counterparty, (x) either (i) if such counterparty or entity has only a long-term rating by [Moody’s], a long-term senior, unsecured debt obligation rating, financial
program rating or other similar rating (as the case may be, the “Long-Term Rating”) of at least [“Aa3”] by [Moody’s] and if rated [“Aa3”] by [Moody’s] is not on negative credit watch 

  

 A-29 

 
by [Moody’s] or (ii) if such counterparty or entity has a Long-Term Rating and a short-term rating by [Moody’s], a Long-Term Rating of at least
[“A1”] by [Moody’s] and a short-term rating of [“P-1”] by [Moody’s] and, in each case, such rating is not on negative credit watch by [Moody’s] and (y) (i) a short-term rating of at least [“A-1”] by
[S&P] or (ii) if such counterparty or entity does not have a short-term rating by [S&P], a Long-Term Rating of at least [“A+” by S&P.] 
  
 “Residential Dwelling”: A one- to four-family dwelling, a unit in a planned unit development, a unit in a condominium development or a
townhouse. 
  
 “Responsible Officer”: When used
with respect to the Indenture Trustee or the Owner Trustee, any officer assigned to the Corporate Trust Office (or any successor thereto), including any Vice President, Second or Assistant Vice President, Senior Trust Officer, Trust Officer,
Assistant Trust Officer, any Assistant Secretary, associate, any trust officer or any other officer of the Indenture Trustee or the Owner Trustee customarily performing functions similar to those performed by any of the above designated officers and
to whom, with respect to a particular matter, such matter is referred because of such officer’s knowledge of and familiarity with the particular subject. When used with respect to the Sponsor or the Servicer, the chief executive officer, the
president or any vice president, assistant vice president, or any secretary or assistant secretary. 
  
 “Rolling Three Month Delinquency Ratio”: With respect to any Payment Date, the average of the Delinquency Ratios for the three (or one
and two, in the case of the first and second Payment Dates, respectively) immediately preceding Due Periods. 
  
 “Rolling Six Month Delinquency Ratio”: For any Payment Date, the fraction, expressed as a percentage, equal to the average of the
Delinquency Ratio for each of the six immediately preceding Collection Periods (or for each Payment Date starting in                     
through                     , the corresponding number of preceding Collection Periods). 
  
 “Sale”: The meaning specified in Section 5.17 of the
Indenture. 
  
 “Sale and Servicing Agreement”:
The Sale and Servicing Agreement, dated as of                     , 200  , among the Trust, the Servicer, the Sponsor, the
Seller, and the Indenture Trustee, providing for, among other things, the sale of the Mortgage Loans from the Seller to the Trust and the servicing of the Mortgage Loans. 
  
 “Securities Act”: Means the Securities Act of 1933, as amended. 
  
 “Seller”: Accredited Mortgage Loan REIT Trust, a Maryland
real estate investment trust. 
  
 “Senior Credit
Enhancement Percentage”: For any Payment Date and with respect to any Class of Notes, the percentage obtained by dividing (x) the aggregate Class Note Balance of the Notes that are subordinate in right of payment to such Class of Notes
(including any overcollateralization and taking into account the distributions of the Principal Distribution Amount for such Payment Date) by (y) the aggregate scheduled Principal Balance of the Mortgage Loans as of the last day of the related Due
Period. 
  

 A-30 

 “Senior Swap Payment”: The amount, if any, payable by the Trust to the Swap Provider,
pursuant to Section 8.01(b)(i) of the Indenture, other than a Defaulted Swap Termination Payment. 
  
 “Servicer”: Accredited Home Lenders, Inc., a California corporation, or any successor appointed as provided in the Sale and Servicing
Agreement. 
  
 “Servicer Event of Default”: As
defined in Section 7.01 of the Sale and Servicing Agreement. 
  
 “Servicer Prepayment Charge Amount”: The amounts payable by the Servicer in respect of any waived Prepayment Charges pursuant to Section 3.05 of the Sale and Servicing Agreement. 
  
 “Servicer Remittance Amount”: For a Servicer Remittance Date
is equal to the sum, without duplication, of: 
  

	 	•	 	all scheduled collections of principal of and interest on the mortgage loans collected by the servicer during the related Due Period, 

  

	 	•	 	all partial prepayments of principal and other amounts collected on account of principal, including Net REO Proceeds, Net Liquidation Proceeds, Insurance Proceeds and Subsequent
Recoveries, if any, collected by the servicer during the previous calendar month, other than Payaheads, 

  

	 	•	 	all principal prepayments in full, including prepayment penalties, collected by the servicer during the related Prepayment Period, 

  

	 	•	 	all Delinquency Advances made, and Compensating Interest paid, by the servicer with respect to payments due to be received on the mortgage loans during the related Due Period, and

  

	 	•	 	any other amounts required to be placed in the collection account by the servicer pursuant to the sale and servicing agreement, 

  
 but excluding the following: 
  

	 	(a)	amounts received on a mortgage loan, other than timely scheduled payments of principal and interest, and including late payments, Liquidation Proceeds, and Insurance Proceeds, to
the extent the servicer has previously made an unreimbursed Delinquency Advance or a Servicing Advance with regard to such mortgage loan; 

  

	 	(b)	for such Servicer Remittance Date, the aggregate servicing fees; 

  

	 	(c)	all net income from eligible investments that is held in the collection account for the account of the servicer; 

  

 A-31 

	 	(d)	all amounts actually recovered by the servicer in respect of late fees, assumption fees and similar fees; 

  

	 	(e)	Net Foreclosure Profits; 

  

	 	(f)	Payaheads; 

  

	 	(g)	all amounts previously advanced by the servicer as Delinquency Advances or Servicing Advances that are determined in good faith by the servicer to be unrecoverable from the proceeds
of the particular mortgage loan to which they relate; and 

  

	 	(h)	certain other amounts which are reimbursable to the servicer, as provided in the sale and servicing agreement. 

  
 The amounts described above may be withdrawn by the servicer from the
collection account on or prior to each Servicer Remittance Date. 
  
 “Servicer Remittance Date”: With respect to any Payment Date, the second Business Day preceding the Payment Date. 
  
 “Servicer Remittance Report”: The monthly report prepared by the Servicer and delivered to the parties specified in Section 5.16(a) of
the Sale and Servicing Agreement. 
  
 “Servicer Reporting
Date”: As defined in Section 5.16(a) of the Sale and Servicing Agreement. 
  
 “Servicing Advances”: All reasonable and customary “out-of-pocket” costs and expenses incurred in the performance by the Servicer of its servicing obligations, including, but not limited to,
the cost of (a) the preservation, restoration and protection of the Mortgaged Property, including, without limitation, real estate taxes, (b) any enforcement, collection and judicial proceedings, including foreclosures and liquidations, (c) the
management and liquidation of the REO Property, including reasonable fees paid to any independent contractor in connection therewith, (d) compliance with the obligations under Sections 5.04 and 5.06 of the Sale and Servicing Agreement, all of which
reasonable and customary out-of-pocket costs and expenses are reimbursable to the Servicer to the extent provided in Sections 5.03 and 5.06 of the Sale and Servicing Agreement and (e) expenses incurred in connection with any Mortgage Loan being
registered on the MERS System. 
  
 “Servicing
Compensation”: The Servicing Fee and other amounts to which the Servicer is entitled pursuant to Section 5.08 of the Sale and Servicing Agreement. 
  
 “Servicing Fee”: As defined in Section 5.08 of the Sale and Servicing Agreement. 
  
 “Servicing Fee Rate”: The product of (i)
            % per annum and (ii) the stated principal balance of the Mortgage Loans at the beginning of the related Due Period. 
  

 A-32 

 “Servicing Officer”: Any officer of the Servicer involved in, or responsible for, the
administration and servicing of the Mortgage Loans whose name and specimen signature appear on a list of servicing officers furnished to the Indenture Trustee by the Servicer, as such list may from time to time be amended. 
  
 “Sponsor”: Accredited Home Lenders, Inc., a California
corporation. 
  
 [“Standard & Poor’s” or
“S&P”: Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. or any successor thereto and if such corporation no longer for any reason performs the services of a securities rating agency,
“S&P” shall be deemed to refer to any other nationally recognized statistical rating organization.] 
  
 “Stated Principal Balance”: As to any Mortgage Loan and Payment Date, the unpaid principal balance of such Mortgage Loan as of the Due
Date in the related Collection Period as specified in the amortization schedule at the time relating thereto (before any adjustment to such amortization schedule by reason of any moratorium or similar waiver or grace period) after giving effect to
(i) any previous Principal Prepayments in full received during the related Prepayment Period, (ii) any previous Curtailments and Liquidation Proceeds allocable to principal received during the prior calendar month (other than with respect to any
Liquidated Mortgage Loan) and (iii) the payment of principal due on the Due Date in the related Collection Period and irrespective of any delinquency in payment by the related Mortgagor. 
  
 “Statutory Trust Statute”: Chapter 38 of Title 12 of the Delaware Code, 12 Del. Code § 3801 et seq.,
as the same may be amended from time to time. 
  
 “Step-Down Date”: the earlier of (A) the date on which the aggregate Class Note Balances of the Class A Notes have been reduced to zero and (B) the later to occur of: 
  
 (x) the Payment Date occurring in
                    , and 
  
 (y) the first Payment Date on which the Senior Credit Enhancement Percentage (calculated for this purpose after giving effect to payments or other
recoveries on the Mortgage Loans during the related Due Period, but before giving effect to payments on any of the notes on such Payment Date for the Class A Notes would be greater than or equal to
            %. 
  
 “Subsequent Recovery”: With respect to any Mortgage Loan that had previously been the subject of a Realized Loss, any amounts (net of Reimbursable Expenses) subsequently received in connection with
such Mortgage Loan. 
  
 “Substitution
Adjustment”: As to any date on which a substitution occurs pursuant to Sections 2.06 or 4.02(b) of the Sale and Servicing Agreement, the amount (if any) by which the aggregate principal balances (after application of principal payments
received on or before the date of substitution) of any Qualified Substitute Mortgage Loans as of the date of substitution, are less than the aggregate Stated Principal Balance of the related Deleted Mortgage Loans (after application of the scheduled
principal portion of the Monthly Payments due in the month of substitution) together with 30-days’ interest thereon at the Mortgage Interest Rate, plus any costs and damages incurred by the Trust in connection with any violation by such
mortgage loan of any predatory or abusive lending law. 
  

 A-33 

 “Swap Agreement”: The interest rate swap agreement, dated as of
                    , 200  , between the Trust and the Swap Provider. 
  
 “Swap Default”: Any of the circumstances constituting an
“Event of Default” under the Swap Agreement. 
  
 “Swap Provider”: The counterparty to the Swap Agreement either (a) entitled to receive payments from the Trust or (b) required to make payments to the Trust, in either case pursuant to the terms of the Swap Agreement, and
any successor in interest or assign. Initially, the Swap Provider shall be                     . 
  
 “Swap Termination Payment”: Upon the designation of an
“Early Termination Date” as defined in the Swap Agreement, the payment to be made by the Trust to the Swap Provider, or by the Swap Provider to the Trust, as applicable, pursuant to the terms of the Swap Agreement. 
  
 “Target Overcollateralization Amount”: As to any Payment
Date (a) prior to the Step-down Date, will be equal to approximately $                     and (b) on or after the Step-down Date, so long as
a Trigger Event is not in effect, approximately             % of the Pool Balance as of the last day of the related Due Period, subject to a floor equal to
            % of the Initial Pool Balance. If a Trigger Event is in effect, then the Target Overcollateralization Amount will be equal to the Target Overcollateralization Amount as
of the prior Payment Date. 
  
 “Telerate Page
3750”: The display designated as Telerate Page 3750 on the Telerate Service (or such other page as may replace the Telerate page on that service for the purpose of displaying London interbank offered rates of major banks). 
  
 “Termination Event”: As defined in the Swap Agreement.

  
 “Termination Price”: The greater of (A) the
sum of (i) 100% of the aggregate Class Note Balance of the Notes, (ii) the aggregate amount of accrued and unpaid interest on such Notes through the related Due Period (including with respect to any related Basis Risk Carry Forward Amount), (iii)
any related Indenture Trustee’s fees and expenses, (iv) any related Owner Trustee Fees or Expenses that have not been paid by the Sponsor, (v) any related unreimbursed advances due and owing to the Servicer, (vii) any costs and damages incurred
by the Trust in connection with any violation by such mortgage loan of any predatory or abusive lending law, and (viii) the Swap Termination Payment, if any, payable to the Swap Provider as a result of the exercise of the optional termination
pursuant to Section 10.01 of the Indenture and (B) the fair market value of the Mortgage Loans. 
  
 “Trigger Event”: A Trigger Event is in effect on any Payment Date if (i) on that Payment Date the Rolling Three Month Delinquency Ratio
equals or exceeds             % of the prior period’s Senior Credit Enhancement Percentage or (ii) during such period, the aggregate amount of Realized Losses incurred since the
Cut-off Date through the last day of the related Prepayment Period, less any Subsequent Recoveries, divided by the Initial Pool Balance (the “Cumulative Realized Loss Percentage”) exceeds the amounts set forth below: 
  

 A-34 

			
	 Payment Date

	  	 Cumulative Realized Loss Percentage

	 	  	            % for the first month, plus an additional 1/12th of
            % for each month thereafter (e.g., approximately             % in
                    )
	 	  	            % for the first month, plus an additional 1/12th of
            % for each month thereafter (e.g., approximately             % in
                    )
	 	  	            % for the first month, plus an additional 1/12th of
            % for each month thereafter (e.g., approximately
                    % in             )
	 	  	            % for the first month, plus an additional 1/12th of
            % for each month thereafter (e.g., approximately             % in
                    )
	                     and thereafter	  	            %

  
 “Trust”: Accredited Mortgage Loan Trust 200  -  , a Delaware statutory trust. 
  
 “Trust Agreement”: The Trust Agreement, dated as of
                    , 200  , as amended and restated as of
                    , 200  , between the Sponsor, the Seller and the Owner Trustee, relating to the establishment of the
Trust. 
  
 “Trust Certificate”: A certificate
evidencing the beneficial interest of the Trust Certificateholder in the Trust substantially in the form of Exhibit A to the Trust Agreement. 
  
 “Trust Certificateholder,” “Certificateholder” or “Holder”: A Person in whose name a Trust Certificate
is registered. 
  
 “Trust Estate”: All money,
instruments and other property subject or intended to be subject to the lien of the Indenture, for the benefit of the Noteholders, as of any particular time, including, without limitation, all property and interests, including all proceeds thereof,
granted to the Indenture Trustee, for the benefit of the Noteholders, pursuant to the Granting Clauses of the Indenture. 
  
 “Trust Indenture Act” or “TIA”: The Trust Indenture Act of 1939, as it may be amended from time to time. 
  
 “Trust Order” and “Trust Request”: A
written order or request of the Trust signed on behalf of the Trust by an Authorized Officer of the Owner Trustee, at the direction of the Certificateholders and delivered to the Indenture Trustee or the Authenticating Agent, as applicable.

  
 “Underwriters”:
                                        
                                        
    .. 
  
 “Underwriting
Guidelines”: The underwriting guidelines of the Sponsor. 
  
 “United States Person”: A citizen or resident of the United States, a corporation, a partnership or other entity treated as a corporation or a partnership organized in or under the laws of, the United States or any state
thereof including the District of Columbia, or an estate or trust whose income from sources without the United States is includible in gross income for United States federal income tax purposes regardless of its connection with the conduct of a

  

 A-35 

 
trade or business within the United States or a trust if a court within the United States can exercise primary jurisdiction over its administration and at
least one United States Person has the authority to control all substantial decisions of the trust. Notwithstanding the last clause of the preceding sentence, to the extent provided in Treasury Regulations, certain trusts in existence on August 20,
1996 and treated as United States Persons prior to such date, may elect to continue to be United States Persons. 
  
 “Unpaid Interest Shortfall Amount”: For any Payment Date and Class of Notes, the sum of (a) the amount, if any, by which (x) the Interest
Payment Amount with respect to such Class as of the immediately preceding Payment Date exceeded (y) the amount of interest actually paid to the holders of such Class of Notes on such immediately preceding Payment Date and (b) interest for (i) thirty
days for the Class M-6 Notes, or (ii) interest for the actual number of days in the interest accrual period for the LIBOR Notes, on the amount described in clause (a), calculated at an interest rate equal to the Note Rate applicable to the related
interest accrual period. 
  
 “WAC Cap”: As to any
Payment Date, the weighted average of the Loan Group I Cap and the Loan Group II Cap, weighted on the basis of the Pool Subordinate Amount for each Group; provided, however, on any Payment Date after the Class Note Balance of the Class A Notes
related to either Group has been reduced to zero, such weighting will be on the basis of each Group’s Pool Balance rather than the related Pool Subordinate Amount. 
  

 A-36 

 EXHIBIT A 
  
 CONTENTS OF THE MORTGAGE FILE 
  
 With respect to each Mortgage Loan, the Mortgage File shall include each of the following items (copies to the extent the originals have been delivered to
the Indenture Trustee for the benefit of the Noteholders, pursuant to Section 2.05 of the Sale and Servicing Agreement), all of which shall be available for inspection by the Noteholders, to the extent required by applicable laws: 
  
 1. the original Mortgage Note, endorsed without recourse in blank from the
last endorsee thereof, including all intervening endorsements showing a complete chain of endorsement; 
  
 2. the related original Mortgage with evidence of recording indicated thereon or a copy thereof certified by the applicable recording office and if the
Mortgage Loan is registered on the MERS System, such Mortgage or an assignment of the Mortgage shall reflect MERS as the mortgagee of record and shall include the MIN for such Mortgage Loan; 
  
 3. each intervening mortgage assignment, with evidence of recording indicated
thereon or if the original is not available, a copy thereof certified by the applicable recording office, if any, showing a complete chain of assignment from the last assignee thereof of the related Mortgage Loan to the Sponsor (or to MERS, if the
Mortgage Loan is registered on the MERS System), and noting the presence of a MIN (if the Mortgage Loan is registered on the MERS System) (which assignment may, at the Sponsor’s option, be combined with the assignment referred to in subpart (4)
hereof, in which case it must be in recordable form, but need not have been previously recorded); 
  
 4. Unless the Mortgage Loan is recorded on the MERS System, a mortgage assignment in recordable form (which, if acceptable for recording in the relevant
jurisdiction as evidenced by an Opinion of Counsel addressed to the Indenture Trustee, may be included in a blanket assignment or assignments) of each Mortgage from the Sponsor to the Indenture Trustee; 
  
 5. originals of all assumption, modification and substitution agreements in
those instances where the terms or provisions of a Mortgage or Mortgage Note have been modified or such Mortgage or Mortgage Note has been assumed (if any); and 
  

6. an original title insurance policy or title opinion (or (A) a copy of the title insurance policy or title opinion, or (B) the related binder,
commitment or preliminary report, or copy thereof in which case the Sponsor hereby certifies that the original Mortgage has been delivered to the title insurance company that issued such binder, commitment or preliminary report). 
  
 In instances where the original recorded Mortgage or any intervening mortgage
assignment or a completed assignment of the Mortgage in recordable form cannot be delivered by the Sponsor to the Indenture Trustee prior to or concurrently with the execution and delivery of this Agreement, due to a delay in connection with
recording, the Sponsor may: 
  

 A-1 

 (a) with respect to item (3) above, in lieu of delivering such original recorded Mortgage or intervening
mortgage assignment, deliver to the Indenture Trustee, a copy thereof; provided, that the Sponsor certifies that the original Mortgage has been delivered to a title insurance company for recordation after receipt of its policy of title insurance or
the related binder, commitment or preliminary report; and 
  
 (b)
in lieu of delivering the completed assignment in recordable form, deliver to the Indenture Trustee, the assignment in recordable form, otherwise complete except for recording information. 
  
  

 A-2 

 EXHIBIT B 
  
 [RESERVED] 
  
  

 B-1 

 EXHIBIT C 
  
 INDENTURE TRUSTEE’S ACKNOWLEDGEMENT OF RECEIPT 
  
                 ,
20                         
  

			
	 [Lead Underwriter]
 ________________________
 ________________________
	  	 Accredited Home Lenders, Inc.
 15090 Avenue of Science
 San Diego, California 92128

		
	 Accredited Mortgage Loan REIT Trust
 15090 Avenue of Science
 San Diego, California 92128
	  	 

  

			
	Re:	  	 Sale and Servicing Agreement, dated as of                 ,
20    
 among Accredited Home Lenders, Inc., as Sponsor and Servicer,
 Accredited Mortgage Loan REIT Trust, as seller, Accredited
 Mortgage Loan Trust 200  -  ,
and
                                       
 ,
 as Indenture
Trustee                                       
 

  
 Ladies and Gentlemen:

  
 In accordance with Section 2.06(b)(i) of the above-captioned
Sale and Servicing Agreement, the undersigned, as Indenture Trustee, hereby acknowledges receipt by it in good faith without notice of adverse claims, subject to the provisions of Sections 2.04 and 2.05 of the Sale and Servicing Agreement (as such
provisions relate to the Mortgage Loan), of, with respect to each Mortgage Loan, a Mortgage File containing the original Mortgage Note, except with respect to the list of exceptions attached hereto, and based on its examination and only as to the
foregoing, the information set forth in items (i), (ii) (with respect to property address only, excluding zip code), (iii) and (vi) of the definition of the “Mortgage Loan Schedule” accurately reflects information set forth in the Mortgage
Note, and declares that it holds and will hold such documents and the other documents delivered to it constituting the Indenture Trustee’s Mortgage Files, and that it holds or will hold all such assets and such other assets included in the
definition of “Trust Estate” that are delivered to it for the exclusive use and benefit of all present and future Noteholders. 
  
 The Indenture Trustee has made no independent examination of any such documents beyond the review specifically required in the above-referenced Sale and
Servicing Agreement. The Indenture Trustee makes no representations as to: (i) the validity, legality, recordability, sufficiency, perfection, priority, enforceability or genuineness of any such documents or any of the Mortgage Loans identified on
the Mortgage Loan Schedule, or (ii) the collectability, insurability, effectiveness or suitability of any such Mortgage Loan. 

 The Mortgage Loan Schedule is attached to this Receipt. 
  
 Capitalized words and phrases used herein shall have the respective meanings
assigned to them in Appendix I to the Indenture, dated as of                 , 20    , by and between Accredited Mortgage Loan Trust
200  -   and the Indenture Trustee. 
  

			
	                                       
                                        
                  ,

	 as Indenture Trustee

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

 EXHIBIT D 
  
 INITIAL CERTIFICATION OF INDENTURE TRUSTEE 
  
                 ,
2005                     
  

			
	 [Lead Underwriter]
 ________________________

________________________
	  	 Accredited Home Lenders, Inc.
 15090 Avenue of
Science
 San Diego, California 92128

		
	 Accredited Mortgage Loan REIT Trust
 15090 Avenue of
Science
 San Diego, California 92128
	  	 

  

			
	Re:	  	 Sale and Servicing Agreement, dated as of                 ,
20    
 among Accredited Home Lenders, Inc., as Sponsor and Servicer,
 Accredited Mortgage Loan REIT Trust, as seller, Accredited
 Mortgage Loan Trust 200  -  ,
and
                                       
 ,
 as Indenture Trustee

  
 Ladies and Gentlemen: 
  
 In accordance with the provisions of Section 2.06(b)(ii) of the
above-referenced Sale and Servicing Agreement, the undersigned, as Indenture Trustee, hereby certifies that as to each Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage Loan paid in full or any Mortgage Loan listed on the
attachment hereto), it has reviewed the documents delivered to it pursuant to Section 2.05(a) of the Sale and Servicing Agreement and has determined that, except as noted on the attachment hereto, (i) all documents required to be delivered to it
pursuant to Section 2.05(a)(i)-(iv) and (vi) of the above-referenced Sale and Servicing Agreement are in its possession, (ii) such documents have been reviewed by it and appear regular on their face and have not been mutilated, damaged, torn or
otherwise physically altered (handwritten additions, changes or corrections do not constitute physical alteration if they reasonably appear to have been initialed by the Mortgagor) and relates to such Mortgage Loan and (iii) based on its examination
and only as to the foregoing documents, the information set forth in the Mortgage Loan Schedule as to the information in clauses (i), (ii) (with respect to property address only, excluding zip code), (iii) and (vi) of the definition of
“Mortgage Loan Schedule” respecting such Mortgage Loan accurately reflects the information set forth in Indenture Trustee’s Mortgage File. The Indenture Trustee has made no independent examination of such documents beyond the review
specifically required in the above-referenced Sale and Servicing Agreement. The Indenture Trustee makes no representations as to: (x) the validity, legality, recordability, sufficiency, perfection, priority, enforceability or genuineness of any such
documents contained in each or any of the Mortgage Loans identified on the Mortgage Loan Schedule, or (y) the collectability, insurability, effectiveness or suitability of any such Mortgage Loan. 
  

 D-1 

 Capitalized words and phrases used herein shall have the respective meanings assigned to them in the
above-captioned Sale and Servicing Agreement. 
  

			
	                                       
                                        
              ,

	 as Indenture Trustee

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

  
  

 D-2 

 EXHIBIT E 
  
 FINAL CERTIFICATION OF INDENTURE TRUSTEE 
  
                 ,
20                                       
          
  

			
	 [Lead Underwriter]
 ________________________

________________________
	  	 Accredited Home Lenders, Inc.
 15090 Avenue of
Science
 San Diego, California 92128

		
	 Accredited Mortgage Loan REIT Trust
 15090 Avenue of
Science
 San Diego, California 92128
	  	 

  

			
	Re:	  	 Sale and Servicing Agreement, dated as of                 ,
20    
 among Accredited Home Lenders, Inc., as Sponsor and Servicer,
 Accredited Mortgage Loan REIT Trust, as seller, Accredited
 Mortgage Loan Trust 200  -  ,
and
                                       
 ,
 as Indenture Trustee

  
 Ladies and Gentlemen: 
  
 In accordance with the provisions of Section 2.06(b)(iii) of the
above-referenced Sale and Servicing Agreement, the undersigned, as Indenture Trustee, hereby certifies that as to each Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage Loan paid in full or any Mortgage Loan listed on the
attachment hereto), it has reviewed the documents delivered to it pursuant to Section 2.05(a) of the Sale and Servicing Agreement and has determined that (i) all documents required to be delivered to it pursuant to Section 2.05(a)(i)-(iv) and (vi)
of the above referenced Sale and Servicing Agreement are in its possession, (ii) such documents have been reviewed by it and appear regular on their face and have not been mutilated, damaged, torn or otherwise physically altered (handwritten
additions, changes or corrections do not constitute physical alteration if they reasonably appear to have been initialed by the Mortgagor) and relates to such Mortgage Loan and (iii) based on its examination and only as to the foregoing documents,
the information set forth in items (i), (ii) (with respect to property address only, excluding zip code), (iii) and (vi) of the definition of the Mortgage Loan Schedule respecting such Mortgage Loan that can be determined from the face of such
documents accurately reflects the information set forth in the Indenture Trustee’s Mortgage File. The Indenture Trustee has made no independent examination of such documents beyond the review specifically required in the above-referenced Sale
and Servicing Agreement. The Indenture Trustee makes no representations as to: (x) the validity, legality, recordability, sufficiency, perfection, priority, enforceability or genuineness of any such documents contained in each or any of the Mortgage
Loans identified on the Mortgage Loan Schedule, or (y) the collectability, insurability, effectiveness or suitability of any such Mortgage Loan. 
  

 E-1 

 Capitalized words and phrases used herein shall have the respective meanings assigned to them in the
above-captioned Sale and Servicing Agreement. 
  

			
	                                       
                                        
          ,

	 as Indenture Trustee

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

  

 E-2 

 EXHIBIT F 
  
 REQUEST FOR RELEASE OF DOCUMENTS 
  
 To: [Indenture Trustee] 
  

			
	Re:	  	 Sale and Servicing Agreement, dated as of                 ,
20    
 among Accredited Home Lenders, Inc., as Sponsor and Servicer,
 Accredited Mortgage Loan REIT Trust, as seller, Accredited
 Mortgage Loan Trust 200  -  ,
and
                                       
 ,
 as Indenture Trustee (“Custodian/Indenture Trustee”)

  
 In connection with the
administration of the Mortgage Loans held by you as Indenture Trustee for the Issuer pursuant to the above-captioned Sale and Servicing Agreement, we request the release, and hereby acknowledge receipt, of the Indenture Trustee’s Mortgage File
for the Mortgage Loan described below, for the reason indicated. 
  
 Mortgage
Loan Number: 
  
 Mortgagor Name, Address & Zip Code: 

 
 Reason for Requesting Documents (check one): 
  

							
	 ̈	  	1.	  	Mortgage Paid in Full	  	 
				
	 ̈	  	2.	  	Foreclosure	  	 
				
	 ̈	  	3.	  	Substitution	  	 
				
	 ̈	  	4.	  	Other Liquidation (Repurchases, etc.)	  	 
				
	 ̈	  	5.	  	Nonliquidation Reason:	  	Reason:                         

  
 Address to which
Indenture Trustee should 
  

					
	Deliver the Mortgage File:	  	  

	 	  	  

	 	  	  

			
	 	  	By:	 	  

	 	  	 	 	                        (authorized signer)
	 	  	Issuer:	 	  

	 	  	Address:	 	  

	 	  	 	 	  

	 	  	Date:	 	  

 EXHIBIT G 
  
 ACCREDITED HOME LENDERS, INC. 
 OFFICER’S CERTIFICATE 
  
 I,
                    , certify that: 
  

	1.	I have reviewed this annual report on Form 10-K, and all reports on Form 8-K containing distribution or servicing reports filed in respect of periods included in the year covered by
this annual report, of Accredited Mortgage Loan Trust 200_-_; 

  

	2.	Based on my knowledge, the information in these reports, taken as a whole, does not contain any untrue statement of a material fact or omit to state a material fact necessary to
make the statements made, in light of the circumstances under which such statements were made, not misleading as of the last day of the period covered by this annual report; 

  

	3.	Based on my knowledge, the distribution or servicing information required to be provided to the trustee by the servicer under the pooling and servicing, or similar, agreement is
included in these reports; 

  

	4.	Based on my knowledge and upon the annual compliance statement included in the report and required to be delivered to the trustee in accordance with the terms of the pooling and
servicing, or similar, agreement, and except as disclosed in the reports, the servicer has fulfilled its obligations under the servicing agreement; and 

  

	5.	The reports disclose all significant deficiencies relating to the servicer’s compliance with the minimum servicing standards based upon the report provided by an independent
public accountant, after conducting a review in compliance with the Uniform Single Attestation Program for Mortgage Bankers or similar procedure, as set forth in the pooling and servicing, or similar, agreement that is included in these reports.

  
 In giving the certifications above, I have reasonably relied on
information provided to me by the following unaffiliated parties:                     . 
  
 Date: 
  

	
	  

	Name:
	Title:CAPITAL SOLUTIONS I, INC.
                           2005 EQUITY INCENTIVE PLAN

                                    SECTION 1
                                     PURPOSE

The purpose of the Capital Solutions I, Inc. 2005 Equity Incentive Plan is to
provide a means whereby Capital Solutions I, Inc., a Delaware corporation (the
"Corporation"), may attract able persons to remain in or to enter the employ of
the Corporation, a Parent Corporation, or a Subsidiary and to provide a means
whereby those employees, officers, and other individuals or entities upon whom
the responsibilities of the successful administration, management, planning,
and/or organization of the Corporation may rest, and whose present and potential
contributions to the welfare of the Corporation, a Parent Corporation or a
Subsidiary are of importance, can acquire and maintain stock ownership, thereby
strengthening their concern for the long-term welfare of the Corporation. A
further purpose of the Plan is to provide such employees and individuals or
entities with additional incentive and reward opportunities designed to enhance
the profitable growth of the Corporation over the long term. Accordingly, the
Plan provides for granting Common Stock, Incentive Stock Options, options which
do not constitute Incentive Stock Options, or any combination of the foregoing,
as is best suited to the circumstances of the particular employees and
individuals or entities as provided herein.

                                    SECTION 2
                                   DEFINITIONS

The following definitions shall be applicable during the term of the Plan unless
specifically modified by any paragraph:

(a) Award means, individually or collectively, any Option granted pursuant to
the Plan.

(b) Board means the board of directors of the Corporation.

(c) Change of Control Value means the amount determined in Clause (i), (ii) or
(iii), whichever is applicable, as follows: (i) the per share price offered to
stockholders of the Corporation in any merger, consolidation, sale or assets or
dissolution transaction, (ii) the price per share offered to stockholders of the
corporation in any tender offer or exchange offer whereby a Corporate Change
takes place or (iii) if a Corporate Change occurs other than as described in
Clause (i) or Clause (ii), the

<PAGE>

fair market value per share determined by the Board as of the date determined by
the Board to be the date of cancellation and surrender of an Option. If the
consideration offered to stockholders of the Corporation in any transaction
described in this Paragraph or Paragraphs (d) and (e) of Section 8 consists of
anything other than cash, the Board shall determine the fair cash equivalent of
the portion of the consideration offered which is other than cash.

(d) Code means the Internal Revenue Code of 1986, as amended. Reference in the
Plan to any Section of the Code shall be deemed to include any amendments or
successor provisions to such Section and any regulations under such Section.

(e) Committee shall mean the Compensation Committee of the Board or any other
committee of the Board meeting the requirements of Rule 16b-3 and designated by
the Board to administer the Plan.

(f) Common Stock means the common stock of the Corporation.

(g) Corporation means Capital Solutions I, Inc.

(h) Corporate Change means one of the following events:

         (i) the merger, consolidation or other reorganization of the
Corporation in which the outstanding Common Stock is converted into or exchanged
for a different class of securities of the Corporation, a class of securities of
any other issuer (except common stock of a Subsidiary or Parent Corporation),
cash or other property other than: (a) a merger, consolidation or reorganization
of the Corporation which would result in the voting stock of the Corporation
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity), in combination with the ownership of any trustee or other
fiduciary holding securities under an employee benefit plan of the Corporation,
at least sixty percent (60%) of the combined voting power of the voting stock of
the Corporation or such surviving entity outstanding immediately after such
merger, consolidation or reorganization of the Corporation; or (b) merger,
consolidation or reorganization of the Corporation effected to implement a
recapitalization of the Corporation (or similar transaction) in which no person
acquires more than forty-nine percent (49%) of the combined voting power of the
Corporation's then outstanding stock;

                                       2
<PAGE>

    (ii) the sale, lease or exchange of all or substantially all of the assets
of the Corporation to any other corporation or entity (except common stock of a
Subsidiary or Parent Corporation);

    (iii) the adoption by the stockholders of the Corporation of a plan of
liquidation and dissolution;

    (iv) the acquisition (other than acquisition pursuant to any other clause of
this definition) by any person or entity, including without limitation a "group"
as contemplated by Section 13(d)(3) of the Exchange Act, of beneficial
ownership, as contemplated by such Section, of more than twenty-five percent
(25%) (based on voting power) of the Corporation's outstanding capital stock
whose beneficial membership prior to such acquisition was less than twenty-five
percent(25%) or acquisition by a person or entity who currently has beneficial
ownership of at least twenty-five percent (25%) which increases such person's or
entity's beneficial ownership to fifty percent (50%) or more (based on voting
power) of the Corporation's outstanding capital stock; or (v) as a result of or
in connection with a contested election of directors, the persons who were
directors of the Corporation before such election shall cease to constitute a
majority of the Board.

Notwithstanding the provisions of clause (iv) above, a Corporate
Change shall not be considered to have occurred upon the acquisition (other than
acquisition pursuant to any other clause in the preceding list) by any person or
entity, including without limitation a "group" as contemplated by Section
13(d)(3) of the Exchange Act, of beneficial ownership, as contemplated by such
Section, of more than twenty-five percent (25%) (based on voting power) of the
Corporation's outstanding capital stock or the requisite percentage to increase
their ownership to fifty percent (50%)resulting from a public offering of
securities of the Corporation under the Securities Act of 1933, as amended.

(i) Designated Officer means an officer of the Corporation, such as the
President or Chief Operating Officer, who is given authority by the Board or the
Committee of the Board to grant options or make stock grants under the Plan.

(j) Exchange Act means the Securities Exchange Act of 1934, as amended.

(k) Fair Market Value means, as of any specified date, the closing price of the
Common Stock on the NASDAQ (or, if the Common

                                       3
<PAGE>

Stock is not listed on such exchange, such other national securities exchange on
which the Common Stock is then listed) on that date, or if no prices are
reported on that date, on the last preceding date on which such prices of the
Common Stock are so reported. If the Common Stock is not then listed on any
national securities exchange but is traded over the counter at the time
determination of its Fair Market Value is required to be made hereunder, its
Fair Market Value shall be deemed to be equal to the average between the
reported high and low sales prices of Common Stock on the most recent date on
which Common Stock was publicly traded. If the Common Stock is not publicly
traded at the time a determination of its value is required to be made
hereunder, the determination of its Fair Market Value shall be made by the Board
in such manner as it deems appropriate (such determination will be made in
good-faith as required by Section 422(c)(1) of the Code and may be based on the
advice of an independent investment banker or appraiser recognized to be expert
in making such valuations).

(l) Grant means individually or collectively, any Common Stock granted pursuant
to the Plan.

(m) Grantee means an employee, officer, other individual or entity who has been
granted Common Stock pursuant to the Plan.

(n) Holder means an individual or entity who has been granted an Award.

(o) Incentive Stock Option means an Option that qualifies as an "incentive stock
option" under Section 422 of the Code.

(p) Nonqualified Stock Option means an Option other than an Incentive Stock
Option.

(q) Non-Employee Director means a director of the Corporation that qualifies as
a "non-employee director" for purposes of Rule 16b-3.

(r) Option means an Award granted under Section 7 of the Plan and includes both
Incentive Stock Options to purchase Common Stock and Nonqualified Stock Options
to purchase Common Stock.

(s) Option Agreement means a written agreement between the Corporation and an
employee with respect to an Option.

(t) Optionee means an employee, officer, entity or individual who has been
granted an Option.

                                       4
<PAGE>

(u) Parent Corporation shall have the meaning set forth in Section 424(e) of the
Code.

(v) Participants means individuals who are entitled to receive Grants or Awards
under this Plan.

(w) Plan means the Capital Solutions I, Inc. 2005 Equity Incentive Plan.

(x) Rule 16b-3 means Rule 16b-3 of the General Rules and Regulations of the
Securities and Exchange Commission under the Exchange Act, as such rule is
currently in effect or as hereafter modified or amended.

(y) Stock Appreciation Right or SAR shall mean any right granted to a
Participant pursuant to Section 7 hereof to receive, upon exercise by the
Participant, the excess of (i) the Fair Market Value of one Share on the date of
exercise or, if the Committee shall so determine in the case of any such right
other than one related to any incentive Stock Option, at any time during a
specified period before the date of exercise over (ii) the grant price of the
right on the date of grant, or if granted in connection with an outstanding
Option on the date of grant of the related Option, as specified by the Committee
in its sole discretion, which shall not be less than the Fair Market Value of
one Share on such date of grant of the right, or the related Option, as the case
may be. Any payment, by the Company in respect of such right may be made in
cash, Shares, other property, or any combination thereof, as the Committee, in
its sole discretion, shall determine.

(z) Subsidiary means a company (whether a corporation, partnership, joint
venture or other form of entity) in which the Corporation, or a corporation in
which the Corporation owns a majority of the shares of capital stock, directly
or indirectly, owns an equity interest of more than fifty percent(50%), except
solely with respect to the issuance of Incentive Stock Options the term
"Subsidiary" shall have the same meaning as the term "subsidiary corporation" as
defined in Section 424(f) of the Code.

                                    SECTION 3
                     EFFECTIVE DATE AND DURATION OF THE PLAN

The Plan shall be effective as of the date of its adoption by the Board,
provided that the Plan is approved by the stockhold-

                                       5
<PAGE>

ers of the Corporation within twelve (12) months before or thereafter and on or
prior to the date of the first annual meeting of stockholders of the Corporation
held subsequent to the acquisition of an equity security by a Holder under this
Plan for which exemption is claimed under Rule 16b-3.

The Plan shall be terminated and no further Awards or Grants may be made under
the Plan after ten (10) years from the date the Plan is adopted by the Board or
the date the Plan is approved by the Corporation's shareholders, whichever is
earlier. Subject to the provisions of Section 9, the Plan shall remain in effect
until all Options granted under the Plan have been exercised or have expired by
reason of lapse of time and all restrictions imposed upon restricted stock
awards have lapsed.

Any Grant or option exercised before shareholder approval is obtained shall not
receive the tax benefits attendant thereto if shareholder approval is not
obtained within twelve (12) months before or after the Plan is adopted. Such
shares shall not be counted in determining whether such approval is granted.

                                    SECTION 4
                                 ADMINISTRATION

(a) Administration of Plan by the Board; Delegation to Committee. The Plan shall
be administered by the Board in compliance with Rule 16b-3, and the Board may
designate the Committee to administer the Plan, provided that at all times that
it is administering the Plan, the Committee shall be composed solely of two or
more Non-Employee Directors and shall meet all other requirements that may be
applicable, from time to time, to the Committee under Rule 16b-3. Members of the
Board or Committee shall abstain from participating in and deciding matters that
directly affect their individual ownership interests under the Plan.

(b) Powers. Subject to the terms of the Plan, the Board and Committee each shall
have authority, in its discretion, to determine which employees, officers,
individuals or entities shall receive an Award or Grant, the time or times when
such Award or Grant shall be made, whether Common Stock, an Incentive Stock
Option or Nonqualified Option shall be granted and the number of shares of
Common Stock which may be issued under each Option. In making such
determinations, the Board or Committee may take into account the nature of the
services rendered by the recipients of Grants or Awards, their present and
potential contribution to the success of the Corporation, a Parent Corporation
or a Sub-

                                       6
<PAGE>

sidiary, and such other factors as the Board or Committee, in its discretion,
shall deem relevant. To the extent consistent with applicable law, the Board or
Committee may authorize one or more Designated Officers to make Awards or Grants
to a designated class of eligible persons, within limits specifically prescribed
by the Board or Committee; provided, however, that no such Designated Officer
shall have or obtain authority to make Awards or Grants to himself or herself or
to any person subject to Section 16 of the Exchange Act.

(c) Additional Powers. The Board and Committee each shall have such additional
powers as are delegated to it by the other provisions of the Plan. Subject to
the express provisions of the Plan, the Board and Committee each is authorized
in its sole discretion, exercised in a nondiscriminatory manner, to construe and
interpret the Plan and the respective agreements executed thereunder, to
prescribe such rules and regulations relating to the Plan as it may deem
advisable to carry out the Plan, and to determine the terms, restrictions and
provisions of each Award or Grant, including such terms, restrictions and
provisions as shall be requisite in the judgment of the Board or Committee to
cause designated Options to qualify as Incentive Stock Options, and to make all
other determinations necessary or advisable for administering the Plan. The
Board or Committee may correct any defect or supply any omission or reconcile
any inconsistency in any agreement relating to an Award or Grant in the manner
and to the extent it shall deem expedient to carry it into effect. The
determination of the Board or Committee on the matters referred to in this
Section 4 shall be conclusive.

(d) Compliance With Code Section 162(m). If, and for so long as, the
Corporation, a Parent Corporation or a Subsidiary is a "publicly-held
corporation" as defined in Section 162(m)(2) of the Code, the Corporation may
establish a Committee composed of outside directors who meet the requirements of
Code Section 162(m) to (i) approve the grant of Options which might reasonably
be anticipated to result in the payment of employee remuneration that would
otherwise exceed the limit on employee remuneration deductible for income tax
purposes by the Corporation pursuant to Code Section 162(m) and (ii) administer
the Plan. In addition, Options under the Plan shall be granted upon satisfaction
of the conditions to such grants provided pursuant to Code Section 162(m) and
any Treasury Regulations promulgated thereunder.

(e) Committee's Authority. In the event a Committee qualifying under Rule 16b-3
and, if applicable, Code Section 162(m) is ad-

                                       7
<PAGE>

ministering the Plan, all powers reserved to the Board under the Plan shall be
exercised by the Committee.

                                    SECTION 5
                 GRANT OF OPTIONS AND STOCK SUBJECT TO THE PLAN

(a) Award Limits. The Board or Committee may from time to time grant Awards
and/or make Grants to one or more employees, officers, individuals or entities
determined by it to be eligible for participation in the Plan in accordance with
the provisions of Section 6 of the Plan. The aggregate number of shares of
Common Stock that may be issued under the Plan shall not exceed fifty million
(50,000,000) shares. In addition, no Options shall be granted under the Plan
that would cause the total number of shares issuable upon exercise of all
outstanding Options to exceed a number of shares which is equal to ten (10%) of
the then outstanding shares of Common Stock of the Corporation. Any of such
shares which remain unissued and which are not subject to outstanding Options
and/or Grants at the termination of the Plan shall cease to be subject to the
Plan but, until termination of the Plan, the Corporation shall at all times
reserve a sufficient number of shares to meet the requirements of the Plan.
Shares shall be deemed to have been issued under the Plan only to the extent
actually issued and delivered pursuant to an Award or Grant. To the extent that
an Award or Grant lapses or the rights of its Holder or Grantee terminate, any
shares of Common Stock subject to such Award or Grant shall again be available
for the grant of an Award or making of a Grant. The aggregate number of shares
which may be issued under the Plan shall be subject to adjustment in the same
manner as provided in Section 8 of the Plan with respect to shares of Common
Stock subject to Options then outstanding. Separate stock certificates shall be
issued by the Corporation for those shares acquired pursuant to a Grant, the
exercise of an Incentive Stock Option and for those shares acquired pursuant to
the exercise of any Nonqualified Stock Option.

(b) Stock Offered. The stock to be offered pursuant to an Award or Grant may be
authorized but unissued Common Stock or Common Stock previously issued and
outstanding and reacquired by the Corporation.

                                    SECTION 6
                                   ELIGIBILITY

An Incentive Stock Option Award made pursuant to the Plan may be granted only to
an individual who, at the time of grant, is an

                                       8
<PAGE>

employee of the Corporation, a Parent Corporation or a Subsidiary. An Award of
an Option which is not an Incentive Stock Option or a Grant of Common Stock may
be made to an individual who, at the time of Award or Grant, is an employee of
the Corporation, a Parent Corporation or a Subsidiary, or, subject to the
restrictions of applicable law, to any individual who has been identified by the
Board or Designated Officer or Director to receive an Award or Grant due to
their contribution or service to the Corporation, including service to members
of the Board of Directors of the Corporation, a Parent Corporation or a
Subsidiary. An Award or Grant made pursuant to the Plan may be made on more than
one occasion to the same person, and such Award or Grant may include a Common
Stock Grant, an Incentive Stock Option, a Nonqualified Stock Option, or any
combination thereof. Each Award or Grant shall be evidenced by a written
instrument duly executed by or on behalf of the Corporation.

                                    SECTION 7
                              STOCK OPTIONS/GRANTS

(a) Stock Option Agreement. Each Option shall be evidenced by an Option
Agreement between the Corporation and the Optionee which shall contain such
terms and conditions as may be approved by the Board or Committee and agreed
upon by the Holder. The terms and conditions of the respective Option Agreements
need not be identical. Each Option Agreement shall specify the effect of
termination of employment, total and permanent disability, retirement or death
on the exercisability of the Option. Under each Option Agreement, a Holder shall
have the right to appoint any individual or legal entity in writing as his or
her beneficiary under the Plan in the event of his death. Such designation may
be revoked in writing by the Holder at any time and a new beneficiary may be
appointed in writing on the form provided by the Board for such purpose. In the
absence of such appointment, the beneficiary shall be the legal representative
of the Holder's estate.

(b) Option Period. The term of each Option shall be as specified by the Board or
Committee at the date of grant and shall be stated in the Option Agreement;
provided, however, that an Option may not be exercised more than one hundred
twenty (120) months from the date it is granted.

(c) Limitations on Exercise of Option. Any Option granted hereunder shall be
exercisable at such times and under such conditions as determined by the Board
or Committee and as shall be permissible under the terms of the Plan, which
shall be speci-

                                       9
<PAGE>

fied in the Option Agreement evidencing the Option; provided, however, that an
Option shall be exercisable at the rate of at least twenty percent (20%) per
year over five (5) years from the date it is granted. An Option may not be
exercisable for fractional shares.

(d) Special Limitations on Incentive Stock Options. To the extent that the
aggregate Fair Market Value (determined at the time the respective Incentive
Stock Option is granted) of Common Stock with respect to which Incentive Stock
Options are exercisable for the first time by an individual during any calendar
year under all incentive stock option plans of the Corporation (and any Parent
Corporation or Subsidiary) exceeds One Hundred Thousand Dollars ($100,000)
(within the meaning of Section 422 of the Code), such excess Incentive Stock
Options shall be as Nonqualified Stock Options. The Board or Committee shall
determine, in accordance with applicable provisions of the Code, Treasury
Regulations and other administrative pronouncements, which of an Optionee's
Options will constitute Nonqualified Stock Options because of such limitation
and shall notify the Optionee of such determination as soon as practicable after
such determination. No Incentive Stock Option shall be granted to an individual
if, at the time the Option is granted, such individual owns stock possessing
more than ten percent (10%) of the total combined voting power of all classes of
stock of the Corporation or of its Parent Corporation or a Subsidiary, within
the meaning of Section 422(b)(6) of the Code, unless (i) at the time such Option
is granted, the Option price is at least one hundred ten percent (110%) of the
Fair Market Value of the Common Stock subject to the Option, and (ii) such
Option by its terms, is not exercisable after the expiration of five (5) years
from the date of grant.

(e) Option Price. The purchase price of Common Stock issued under each Option
shall be determined by the Board or Committee and shall be stated in the Option
Agreement, but such purchase price shall, in the case of Incentive Stock
Options, not be less than the Fair Market Value of Common Stock subject to the
Option on the date the Option is granted, and, in the case of Nonqualified Stock
Options, not be less than the Fair Market Value of the stock at the time the
option is granted, except that the price shall be one hundred ten percent (110%)
of the Fair Market Value in the case of any person or entity who owns stock
comprising more than ten percent (10%) of the total combined voting power of all
classes of stock of the Corporation or its Parent Corporation or Subsidiary.

                                       10
<PAGE>

(f) Options and Rights in Substitution for Stock Options Made by Other
Corporations. Options may be granted under the Plan from time to time in
substitution for stock options held by employees of corporations who become, who
became prior to the effective date of the Plan, employees of the Corporation, of
any Parent Corporation or of any Subsidiary as a result of (i) a merger or
consolidation of the employing corporation with the Corporation, such Parent
Corporation or such Subsidiary, or (ii) the by the Corporation, a Parent
Corporation or a Subsidiary of all or a portion of the assets of the employing
corporation, or (iii) the acquisition by the Corporation, a Parent Corporation
or a Subsidiary of stock of the employing corporation with the result that such
employing corporation becomes a Subsidiary.

                                    SECTION 8
                       RECAPITALIZATION OR REORGANIZATION

(a) Except as hereinafter otherwise provided, Awards or Grants shall be subject
to adjustment by the Board and Committee, each at its discretion, as to the
number and price of shares of Common Stock in the event of changes in the
outstanding Common Stock by reason of stock dividends, stock splits, reverse
stock splits, reclassifications, recapitalizations, reorganizations, mergers,
consolidations, combinations, exchanges or other relevant changes in
capitalization occurring after the date of the grant of any such Options or
Common Stock.

(b) The existence of the Plan and the Awards and/or Grants made hereunder shall
not affect in any way the right or power of the Board or the stockholders of the
Corporation to make or authorize any adjustment, recapitalization,
reorganization or other change in the capital structure of the Corporation, a
Parent Corporation or a Subsidiary or their business, any merger or
consolidation of the Corporation, a Parent Corporation or a Subsidiary, any
issue of debt or equity securities having any priority or preference with
respect to or affecting Common Stock or the rights thereof, the dissolution or
liquidation of the Corporation, a Parent Corporation or a Subsidiary, or any
sale, lease, exchange or other disposition of all or any part of their assets or
business or any other corporate act or proceeding.

(c) The shares with respect to which Options may be granted are shares of Common
Stock as presently constituted, but if and whenever, prior to the expiration of
an Option theretofore granted, the Corporation shall effect a subdivision or
consolidation of shares of Common Stock or the payment of a stock dividend on
Common Stock without receipt of consideration

                                       11
<PAGE>

by the Corporation, the number of shares of Common Stock with respect to which
such Option may thereafter be exercised (i) in the event of an increase in the
number of outstanding shares, shall be proportionately increased, and the
purchase price per share shall be proportionately reduced, and (ii) in the event
of a reduction in the number of outstanding shares, shall be proportionately
reduced, and the purchase price per share shall be proportionately increased.

(d) If the Corporation recapitalizes or otherwise changes its capital structure,
thereafter upon any exercise of an Option theretofore granted, the Optionee
shall be entitled to purchase under such Option, in lieu of the number of shares
of Common Stock as to which such Option shall then be exercisable, the number
and class of shares of stock and securities, and the cash and other property to
which the Optionee would have been entitled pursuant to the terms of the
recapitalization if, immediately prior to such recapitalization, the Optionee
had been the holder of such record of the number of shares of Common Stock then
covered by such Option.

(e) In the event of a Corporate Change, unless otherwise deemed to be
impractical by the Board, then no later than (i) two business days prior to any
Corporate Change referenced in Clause (i), (ii), (iii), (v) or (vi) of the
definition thereof or (ii) ten business days after any Corporate Change
referenced in (iv) of the definition thereof, the Board, acting in its sole
discretion without the consent or approval of any Optionee or Grantee, shall act
to effect the following alternatives with respect to outstanding Options, which
acts may vary among individual Optionees and, with respect to acts taken
pursuant to Clause (i) above, may be contingent upon effectuation of the
Corporate Change: (A) in the event of a Corporate Change referenced in Clauses
(i), (ii) and (vi), acceleration of exercise for all Options then outstanding so
that such Options may be exercised in full for a limited period of time on or
before a specified date (before or after such Corporate Change) fixed by the
Board, after which specified date all unexercised Options and all rights of
Optionees thereunder shall terminate; (B) in the event of a Corporate Change
referenced in Clauses (iii), (iv) and (v) require the mandatory surrender to the
Corporation by Optionees of some or all of the outstanding Options held by such
Optionees (irrespective of whether such Options are then exercisable under the
provisions of the Plan) as of a date (before or after such Corporate Change)
specified by the Board, in which event the Board shall thereupon cancel such
Options and pay to each Optionee an amount of cash per share equal to the
excess, if any,

                                       12
<PAGE>

of the Change of Control Value of the shares subject to such Option over the
exercise price(s) under such Options for such shares; (C) in the event of a
Corporate Change referenced in Clauses (iii), (iv) and (v), make such
adjustments to Options then outstanding as the Board deems appropriate to
reflect such Corporate Change (provided, however, that the Board may determine
in its sole discretion that no adjustment is necessary to Options then
outstanding); (D) in the event of a Corporate change referenced in Clauses
(iii), (iv) and (v), provide that Thereafter upon any exercise of an Option
theretofore granted the Optionee shall be entitled to purchase under such
Option, in lieu of the number of shares of Common Stock as to which such Option
shall then be exercisable, the number and class of shares of stock or other
securities or property(including, without limitation, cash) to which the
Optionee would have been entitled pursuant to the terms of the agreement of
merger, consolidation or sale of assets or plan of liquidation and dissolution
if, immediately prior to such merger, consolidation or sale of assets or any
distribution in liquidation and dissolution of the Corporation, the Optionee had
been the holder of record of the number of shares of Common Stock then covered
by such Option; or (E) in the event of a Corporate Change referenced in Clauses
(iii), (iv) and (v), cancel the Options granted if the Fair Market Value of the
Common Stock underlying the Options is below the Option exercise price.

(f) Except as herein expressly provided, issuance by the Corporation of shares
of stock of any class or securities convertible into shares of stock of any
class, for cash, property, labor or services, upon direct sale, upon the
exercise of rights or warranty to subscribe therefore, or upon conversion of
shares or obligations of the Corporation convertible into such shares or other
securities, and in any case whether or not for fair value, shall not affect, and
no adjustment by reason thereof shall be made with respect to, the number of
shares of Common Stock subject to Options theretofore granted, or the purchase
price per share of Common Stock subject to Options.

                                    SECTION 9
                            STOCK APPRECIATION RIGHTS

Stock Appreciation Rights may be granted hereunder to Participants, either alone
or in addition to other Awards granted under the Plan and may, but need not,
relate to a specific Option granted under Section 6. The provisions of Stock
Appreciation Rights need not be the same with respect to each recipient. Any

                                       13
<PAGE>

Stock Appreciation Right related to a Nonstatutory Stock Option may be granted
at the same time such Option is granted or at any time thereafter before
exercise or expiration of such Option. Any Stock Appreciation Right related to
an Incentive Stock Option must be granted at the same time such Option is
granted. In the case of any Stock Appreciation Right related to any Option, the
Stock Appreciation Right or applicable portion thereof shall terminate and no
longer be exercisable upon the termination or exercise of the related Option,
except that a Stock Appreciation Right granted with respect to less than the
full number of Shares covered by a related Option shall not be reduced until the
exercise or termination of the related Option exceeds the number of shares not
covered by the Stock Appreciation Right. Any Option related to any Stock
Appreciation Right shall no longer be exercised. The Board or Committee may
impose such conditions or restrictions on the exercise of any Stock Appreciation
Right as it shall deem appropriate.

                                   SECTION 10
                      AMENDMENT OR TERMINATION OF THE PLAN

The Board or Committee, each in its discretion, may terminate the Plan or any
Option or Grant or alter or amend the Plan or any part thereof or any Option
from time to time; provided that no change in any Award or Grant previously made
may be made which would impair the rights of the Holder or Grantee without the
consent of the Holder or Grantee, and provided further, that the Board may not,
without approval of the stockholders, amend the Plan:

(a) to increase the aggregate number of shares which may be issued pursuant to
the provisions of the Plan upon exercise or surrender of Options or upon Grants;

(b) to change the minimum Option exercise price;

(c) to change the class of employees eligible to receive Awards or Grants, or
increase materially the benefits accruing to employees under the Plan;

(d) to extend the maximum period during which Awards may be granted or Grants
may be made under the Plan;

(e) to modify materially the requirements as to eligibility for participation in
the Plan; or

                                       14
<PAGE>

(f) to decrease any authority granted to the Board hereunder in contravention of
Rule 16b-3.

                                   SECTION 11
                                      OTHER

(a) No Right to an Award or Grant. Neither the adoption of the Plan nor any
action of the Board, Committee or Designated Officer shall be deemed to give an
employee any right to be granted an Option to purchase Common Stock, to receive
a Grant or to any other rights hereunder except as may be evidenced by an Option
Agreement duly executed on behalf of the Corporation, and then only to the
extent of and on the terms and conditions expressly set forth therein. The Plan
shall be unfunded. The Corporation shall not be required to establish any
special or separate fund or to make any other segregation of funds or assets to
assure the payment of any Award or Grant.

(b) No Employment Rights Conferred. Nothing contained in the Plan or in any
Award or Grant made hereunder shall (i) confer upon any employee any right with
respect to continuation of employment with the Corporation or any Parent
Corporation or Subsidiary, or (ii) interfere in any way with the right of the
Corporation or any Parent Corporation or Subsidiary to terminate his or her
employment at any time.

(c) Other Laws; Withholding. The Corporation shall not be obligated to issue any
Common Stock pursuant to any Award granted or any Grant made under the Plan at
any time when the offering of the shares covered by such Award has not been
registered (or exempted) under the Securities Act of 1933 and such other state
and federal laws, rules or regulations as the Corporation or the Board deems
applicable and, in the opinion of legal counsel for the Corporation, there is no
exemption from the registration requirements of such laws, rules or regulations
available for the issuance and sale of such shares. No fractional shares of
Common Stock shall be delivered, nor shall any cash in lieu of fractional shares
be paid. The Corporation shall have the right to deduct, in connection with all
Awards or Grants, any taxes required by law to be withheld and to require from
Grantees and Holders any payments necessary to enable the Corporation to satisfy
its withholding obligations as to such Grantee or Holder. The Board or its
Committee may, under certain circumstances, permit the Holder of an Award or
Grant to elect to surrender, or authorize the Corporation to withhold shares of
Common Stock (valued at their Fair Market Value on the date of surrender or

                                       15
<PAGE>

withholding of such shares) in satisfaction of the Corporation's withholding
obligation, subject to such restrictions as the Board deems necessary to satisfy
the requirements of Rule 16b-3 and the Sarbanes-Oxley Act of 2002.

(d) No Restriction of Corporate Action. Nothing contained in the Plan shall be
construed to prevent the Corporation or any Parent Corporation or Subsidiary
from taking any corporate action which is deemed by the Corporation or such
Parent Corporation or Subsidiary to be appropriate or in its best interest,
whether or not such action would have an adverse effect on the Plan or any Award
made under the Plan. No employee, beneficiary or other person shall have any
claim against the Corporation or any Parent Corporation or Subsidiary as a
result of such action.

(e) Restrictions on Transfer. An Award shall not be transferable otherwise than
by will or the laws of descent and distribution and shall be exercisable during
the lifetime of the Holder only by such Holder or the Holder's guardian or legal
representative.

(f) Effect of Death, Disability or Termination of Employment. The Option
Agreement or other written instrument evidencing an Award shall specify the
effect of the death, disability or termination of employment of the Holder on
the Award; provided, however, that an Optionee shall be entitled to exercise his
Options (i) at least six (6) months from the date of termination of employment
with the Corporation if such termination is caused by death or disability, or
(ii) at least thirty (30) days from the date of termination of employment with
the Corporation if such termination is caused by reasons other than death or
disability. All outstanding Incentive Stock Options will automatically be
converted to a nonqualified Stock Option if the Optionee does not exercise the
Incentive Stock Option (i) within three (3) months of the date of termination
caused by reasons other than death or disability; or (ii) within twelve (12)
months of the date of termination caused by disability.

(g) Information to Employees. Optionees and Grantees under the Plan shall
receive financial statements annually regarding the Corporation during the
period the options are outstanding. The financial statements shall not
necessarily be prepared in accordance with Delaware law or generally acceptable
accounting principle.

(h) Rule 16b-3. It is intended that the Plan and any grant of an Award made to a
person subject to Section 16 of the Exchange Act meet all of the requirements of
Rule 16b-3. If any provisions of

                                       16
<PAGE>

the Plan or any such Award would disqualify the Plan or such Award hereunder, or
would otherwise not comply with Rule 16b-3, such provision or Award shall be
construed or deemed amended to conform to Rule 16b-3.

(i) Governing Law. The Plan and securities issued under the Plan shall by
construed in accordance with the laws of the State of Delaware and all
applicable federal law.

ADOPTED BY CAPITAL SOLUTIONS I, INC.'s BOARD OF DIRECTORS: April 25, 2005.

APPROVED BY THE SHAREHOLDERS:  ____________, 2005.

                                       17

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