Document:

EX-10.1

 Exhibit 10.1 

 
  

 
 HLSS SERVICER ADVANCE RECEIVABLES
TRUST 
 as Issuer 
 and 
 DEUTSCHE BANK NATIONAL TRUST COMPANY 

as Indenture Trustee, Calculation Agent, Paying Agent and Securities Intermediary 

and 
 HLSS
HOLDINGS, LLC, 
 as Administrator and as Servicer (on and after the MSR Transfer Date) 

and 
 OCWEN LOAN
SERVICING, LLC, 
 as a Subservicer and as Servicer (prior to the MSR Transfer Date) 

and 
 BARCLAYS
BANK PLC, 
 as Administrative Agent 
  

 
 SERIES 2012-T2

 INDENTURE SUPPLEMENT 
 Dated as of October 17, 2012 
 to 

SECOND AMENDED AND RESTATED INDENTURE 
 Dated as of September 13, 2012 
  

 
 HLSS SERVICER
ADVANCE RECEIVABLES TRUST 
 ADVANCE RECEIVABLES BACKED NOTES, 

SERIES 2012-T2 
  

 
  

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
			
	SECTION 1.	 	 CREATION OF SERIES 2012-T2 NOTES.
	  	 	1	  
			
	SECTION 2.	 	 DEFINED TERMS.
	  	 	2	  
			
	SECTION 3.	 	 FORMS OF SERIES 2012-T2 NOTES.
	  	 	10	  
			
	SECTION 4.	 	 COLLATERAL VALUE EXCLUSIONS.
	  	 	10	  
			
	SECTION 5.	 	 GENERAL RESERVE ACCOUNT.
	  	 	11	  
			
	SECTION 6.	 	 PAYMENTS; NOTE BALANCE INCREASES; EARLY
MATURITY.
	  	 	11	  
			
	SECTION 7.	 	 OPTIONAL REDEMPTION AND REFINANCING.
	  	 	12	  
			
	SECTION 8.	 	 [RESERVED].
	  	 	12	  
			
	SECTION 9.	 	 SERIES REPORTS.
	  	 	12	  
			
	SECTION 10.	 	 CONDITIONS PRECEDENT SATISFIED.
	  	 	14	  
			
	SECTION 11.	 	 REPRESENTATIONS AND WARRANTIES.
	  	 	14	  
			
	SECTION 12.	 	 AMENDMENTS.
	  	 	14	  
			
	SECTION 13.	 	 COUNTERPARTS.
	  	 	15	  
			
	SECTION 14.	 	 ENTIRE AGREEMENT.
	  	 	15	  
			
	SECTION 15.	 	 LIMITED RECOURSE.
	  	 	15	  
			
	SECTION 16.	 	 OWNER TRUSTEE LIMITATION OF
LIABILITY.
	  	 	16	  

  
 - i -

 THIS SERIES 2012-T2 INDENTURE SUPPLEMENT (this “Indenture Supplement”),
dated as of October 17, 2012, is made by and among HLSS SERVICER ADVANCE RECEIVABLES TRUST, a statutory trust organized under the laws of the State of Delaware (the “Issuer”), DEUTSCHE BANK NATIONAL TRUST COMPANY, a national
banking association, as trustee (the “Indenture Trustee”), as calculation agent (the “Calculation Agent”), as paying agent (the “Paying Agent”) and as securities intermediary (the
“Securities Intermediary”), HLSS HOLDINGS, LLC, a Delaware limited liability company (“HLSS”), as Administrator on behalf of the Issuer, as owner of the economics associated with the servicing under the Designated
Servicing Agreements, and, from and after the MSR Transfer Date (as defined below), as Servicer under the Designated Servicing Agreements, OCWEN LOAN SERVICING, LLC (“OLS”), as a Subservicer, and as Servicer prior to the MSR
Transfer Date, and BARCLAYS BANK PLC (“Barclays”), a public limited company formed under the laws of England and Wales, as Administrative Agent (as defined below). This Indenture Supplement relates to and is executed pursuant to
that certain Second Amended and Restated Indenture (as amended, supplemented, restated or otherwise modified from time to time, the “Base Indenture”) supplemented hereby, dated as of September 13, 2012, among the Issuer, the
Servicer, the Administrator and the Indenture Trustee, the Calculation Agent, the Paying Agent, the Securities Intermediary and the Administrative Agent, all the provisions of which are incorporated herein as modified hereby and shall be a part of
this Indenture Supplement as if set forth herein in full (the Base Indenture as so supplemented by this Indenture Supplement being referred to as the “Indenture”). 

Capitalized terms used and not otherwise defined herein shall have the respective meanings given them in the Base Indenture. 

PRELIMINARY STATEMENT 
 The Issuer has duly authorized the issuance of a Series of Notes, the Series 2012-T2 Notes (the “Series 2012-T2 Notes”). The parties are entering this Indenture Supplement to document the
terms of the issuance of the Series 2012-T2 Notes, which provides for the issuance of Notes in multiple series from time to time. The Series 2012-T2 Notes are issued in eight (8) Classes of Term Notes (Class A-1-T2, Class A-2-T2, Class
B-1-T2, Class B-2-T2, Class C-1-T2, Class C-2-T2, Class D-1-T2 and Class D-2-T2), with the Initial Note Balances, Stated Maturity Dates, Revolving Period, Note Interest Rates, Expected Repayment Dates and other terms as specified in this Indenture
Supplement, to be known as the Advance Receivables Backed Notes, Series 2012-T2, secured by the Trust Estate Granted to the Indenture Trustee pursuant to the Base Indenture. The Indenture Trustee shall hold the Trust Estate as collateral security
for the benefit of the Holders of the Series 2012-T2 Notes and all other Series of Notes issued under the Indenture as described therein. In the event that any term or provision contained herein shall conflict with or be inconsistent with any term
or provision contained in the Base Indenture, the terms and provisions of this Indenture Supplement shall govern to the extent of such conflict. 
  

	 	Section 1.	Creation of Series 2012-T2 Notes. 

 There are hereby created, effective as of the Issue Date, the Series 2012-T2 Notes, to be issued pursuant to the Base Indenture and this Indenture Supplement, to be known as “HLSS Servicer Advance
Receivables Trust 2012-T2 Advance Receivables Backed Notes, Series 2012-

 
T2 Notes.” The Series 2012-T2 Notes shall not be subordinated to any other Series of Notes. The Series 2012-T2 Notes are issued in eight Classes of Term Notes. The proceeds from the sale of
the Series 2012-T2 Notes shall be used to redeem in full those certain HLSS Servicer Advance Receivables Trust 2012-T1 Advance Receivables Backed Notes, Series 2012-T1 Notes issued pursuant to that certain Indenture Supplement, dated as of
September 13, 2012, among the Issuer, the Servicer, the Administrator and the Indenture Trustee, the Calculation Agent, the Paying Agent, the Securities Intermediary and the Administrative Agent and to reduce the outstanding amounts drawn on
the Series 2012-VF1 Notes, issued pursuant to that certain Indenture Supplement, dated as of September 13, 2012, among the Issuer, the Servicer, the Administrator and the Indenture Trustee, the Calculation Agent, the Paying Agent, the
Securities Intermediary and the Administrative Agent. 
  

	 	Section 2.	Defined Terms. 

 With
respect to the Series 2012-T2 Notes and in addition to or in replacement for the definitions set forth in Section 1.1 of the Base Indenture, the following definitions shall be assigned to the defined terms set forth below: 

“Administrative Agent” means, for so long as the Series 2012-T2 Notes have not been paid in full: (i) with respect
to the provisions of this Indenture Supplement, Barclays Bank PLC, or an Affiliate or successor thereto; and (ii) with respect to the provisions of the Base Indenture, and notwithstanding the terms and provisions of any other Indenture
Supplement, together, Barclays Bank PLC, Wells Fargo Securities, LLC and such other parties as set forth in any other Indenture Supplement, or a respective Affiliate or any respective successor thereto. For the avoidance of doubt, reference to
“it” or “its” with respect to the Administrative Agent in the Base Indenture shall mean “them” and “their,” and reference to the singular therein in relation to the Administrative Agent shall be construed as
if plural. 
 “Advance Rates”: On any date of determination with respect to each Receivable related to any Class of Series
2012-T2 Notes, the percentage amount based on the Advance Type of such Receivable, as set forth below; provided, that in the event the Servicer’s (prior to the MSR Transfer Date) or the related Subservicer’s (on and after the MSR
Transfer Date) sub-prime servicer rating is reduced below “Average,” the Advance Rates applicable to the Receivables related to such Class of Notes shall be equal to the Advance Rates prior to such ratings reduction minus 5.00%; and
provided, that the Advance Rates applicable to the Receivables related to any Class of Notes shall each be reduced by the Advance Rate Reduction Factor for such Class of Notes when the related Weighted Average Foreclosure Timeline exceeds
fifteen (15) months; and provided, further, that the Advance Rate for any Receivable related to any Class of Notes shall be zero if such Receivable is not a Facility Eligible Receivable. 

  
 2 

																	
	 Advance Type / Class of Notes
	  	Class A-T2
Term Notes	 	 	Class B-T2
Term Notes	 	 	Class C-T2
Term Notes	 	 	Class D-T-2
Term 
Notes	 
	 P&I Advances (other than Servicing Fee Advances) in Non-Judicial States
	  	 	90.50	% 	 	 	92.00	% 	 	 	93.50	% 	 	 	94.25	% 
	 P&I Advances (other than Servicing Fee Advances) in Judicial States
	  	 	80.25	% 	 	 	86.75	% 	 	 	89.50	% 	 	 	92.25	% 
	 Servicing Fee Advances in Non-Judicial States
	  	 	80.25	% 	 	 	86.00	% 	 	 	88.75	% 	 	 	91.50	% 
	 Servicing Fee Advances in Judicial States
	  	 	45.25	% 	 	 	64.75	% 	 	 	74.50	% 	 	 	84.00	% 
	 Escrow Advances in Non-Judicial States
	  	 	89.50	% 	 	 	91.00	% 	 	 	92.50	% 	 	 	93.25	% 
	 Escrow Advances in Judicial States
	  	 	69.50	% 	 	 	79.50	% 	 	 	84.00	% 	 	 	88.50	% 
	 Corporate Advances in Non-Judicial States
	  	 	85.75	% 	 	 	88.75	% 	 	 	91.00	% 	 	 	93.00	% 
	 Corporate Advances in Judicial States
	  	 	74.25	% 	 	 	81.50	% 	 	 	85.75	% 	 	 	89.50	% 

 “Advance Rate Reduction Factor” means, for any Class of Series 2012-T2 Notes, the
product of (i) the quotient of the Note Interest Rate for such Class divided by 12, and (ii) the number of months by which the Weighted Average Foreclosure Timeline exceeds fifteen (15) months. 

“Advance Ratio” means, as of any date of determination with respect to any Designated Servicing Agreement, the ratio
(expressed as a percentage), calculated as of the last day of the calendar month immediately preceding the calendar month in which such date occurs, of (i) the related PSA Stressed Non-Recoverable Advance Amount on such date over (ii) the
aggregate monthly scheduled principal and interest payments for the calendar month immediately preceding the calendar month in which such date occurs with respect to all non-delinquent Mortgage Loans serviced under such Designated Servicing
Agreement. 
 “Applicable Rating” means the rating assigned to each Class of the Series 2012-T2 Notes by
S&P, as the Note Rating Agency, upon the issuance of such Class as set forth below: 
  

	 	(i)	Class A-1-T2 Term Notes: AAA(sf); 

  

	 	(ii)	Class A-2-T2 Term Notes: AAA(sf); 

  

	 	(iii)	Class B-1-T2 Term Notes: AA(sf); 

  

	 	(iv)	Class B-2-T2 Term Notes: AA(sf); 

  

	 	(v)	Class C-1-T2 Term Notes: A(sf); 

  

	 	(vi)	Class C-2-T2 Term Notes: A(sf); 

  

	 	(vii)	Class D-1-T2 Term Notes: BBB(sf); and 

  

	 	(viii)	Class D-2-T2 Term Notes: BBB(sf). 

 “Base Indenture” has the meaning assigned to such term in the Preamble. 

  
 3 

 “Class A-1-T2 Term Notes” means, the Term Notes, Class A-1-T2, issued
hereunder by the Issuer having an Initial Note Balance of $215,067,000, or any Term Notes issued in replacement thereof pursuant to Section 7 of this Indenture Supplement. 

“Class A-2-T2 Term Notes” means, the Term Notes, Class A-2-T2, issued hereunder by the Issuer having an Initial
Note Balance of $387,121,000. 
 “Class A-T2 Term Notes” means, either or both of the Class A-1-T2 Term
Notes or Class A-2-T2 Term Notes, as applicable. 
 “Class B-1-T2 Term Notes” means, the Term Notes, Class
B-1-T2, issued hereunder by the Issuer having an Initial Note Balance of $17,807,000, or any Term Notes issued in replacement thereof pursuant to Section 7 of this Indenture Supplement. 

“Class B-2-T2 Term Notes” means, the Term Notes, Class B-2-T2, issued hereunder by the Issuer having an Initial Note
Balance of $32,053,000. 
 “Class B-T2 Term Notes” means, either or both of the Class B-1-T2 Term Notes or
Class B-2-T2 Term Notes, as applicable. 
 “Class C-1-T2 Term Notes” means, the Term Notes, Class C-1-T2,
issued hereunder by the Issuer having an Initial Note Balance of $8,903,000, or any Term Notes issued in replacement thereof pursuant to Section 7 of this Indenture Supplement. 

“Class C-2-T2 Term Notes” means, the Term Notes, Class C-2-T2, issued hereunder by the Issuer having an Initial Note
Balance of $16,026,000. 
 “Class C-T2 Term Notes” means, either or both of the Class C-1-T2 Term Notes or
Class C-2-T2 Terms Notes, as applicable. 
 “Class D-1-T2 Term Notes” means, the Term Notes, Class D-1-T2,
issued hereunder by the Issuer having an Initial Note Balance of $8,223,000, or any Term Notes issued in replacement thereof pursuant to Section 7 of this Indenture Supplement. 

“Class D-2-T2 Term Notes” means, the Term Notes, Class D-2-T2, issued hereunder by the Issuer having an Initial Note
Balance of $14,800,000. 
 “Class D-T2 Term Notes” means, either or both of the Class D-1-T2 Term Notes or
Class D-2-T2 Term Notes, as applicable. 
 “Corporate Trust Office” means with respect to the Series 2012-T2
Notes, the office of the Indenture Trustee at which at any particular time its corporate trust business will be administered, which office at the date hereof is located at 1761 East St. Andrew Place, Santa Ana, California 92705, Attention: Trust
Administration – OC12S7. 
 “CRD” means the Capital Requirements Directive, as amended by Article 122a
(effective as of January 1, 2011) and as the same may be further amended, restated or otherwise modified. 

  
 4 

 “Expected Repayment Date” means: 

 

	 	(i)	for the Class A-1-T2 Term Notes, October 15, 2013; 

  

	 	(ii)	for the Class A-2-T2 Term Notes, October 15, 2015; 

  

	 	(iii)	for the Class B-1-T2 Term Notes, October 15, 2013; 

  

	 	(iv)	for the Class B-2-T2 Term Notes, October 15, 2015; 

  

	 	(v)	for the Class C-1-T2 Term Notes, October 15, 2013; 

  

	 	(vi)	for the Class C-2-T2 Term Notes, October 15, 2015; 

  

	 	(vii)	for the Class D-1-T2 Term Notes, October 15, 2013; and 

  

	 	(viii)	for the Class D-2-T2 Term Notes, October 15, 2015. 

 “Expense Rate” means, as of any date of determination, with respect to the Series 2012-T2 Notes, the percentage equivalent of a fraction, (i) the numerator of which equals
(A) the sum of (1) the product of the Series Allocation Percentage for such Series multiplied by the aggregate amount of Fees due and payable by the Issuer on the next succeeding Payment Date plus (2) any expenses
payable or reimbursable by the Issuer on the next succeeding Payment Date, up to the applicable Expense Limit, if any, prior to any payments to the Holders of the Series 2012-T2 Notes, pursuant to the terms and provisions of this Indenture
Supplement, the Base Indenture or any other Transaction Document that have been invoiced to the Indenture Trustee and the Administrator, plus (B) the aggregate amount of related Series Fees payable by the Issuer on the next succeeding
Payment Date and (ii) the denominator of which equals the sum of the outstanding Note Balances of all Series 2012-T2 Notes at the close of business on such date. 
 “General Reserve Required Amount” means with respect to any Payment Date or Interim Payment Date, as the case may be, for the Series 2012-T2 Notes, an amount equal to on any Payment Date
or Interim Payment Date six month’s interest calculated at the Senior Rate on the Note Balance of each Class of Series 2012-T2 Notes as of such Payment Date or Interim Payment Date, as the case may be. 

“Group 1 Notes” means, collectively, the Class A-1-T2 Notes, Class B-1-T2 Notes, Class C-1-T2 Notes and Class
D-1-T2 Notes. 
 “Group 2 Notes” means, collectively, the Class A-2-T2 Notes, Class B-2-T2 Notes, Class
C-2-T2 Notes and Class D-2-T2 Notes. 
 “Initial Note Balance” means, for any Note or for any Class of Notes,
the Note Balance of such Note upon issuance, as follows: 
  

	 	(i)	Class A-1-T2 Term Notes: $215,067,000; 

	 	(ii)	Class A-2-T2 Term Notes: $387,121,000; 

  

	 	(iii)	Class B-1-T2 Term Notes: $17,807,000; 

  

	 	(iv)	Class B-2-T2 Term Notes: $32,053,000; 

  

	 	(v)	Class C-1-T2 Term Notes: $8,903,000; 

  

	 	(vi)	Class C-2-T2 Term Notes: $16,026,000; 

  

	 	(vii)	Class D-1-T2 Term Notes: $8,223,000; and 

  

	 	(viii)	Class D-2-T2 Term Notes: $14,800,000. 

 “Interest Accrual Period” means, for the Series 2012-T2 Notes and any Payment Date, the period beginning on the immediately preceding Payment Date (or, in the case of the first Payment
Date with respect to any Class, the Issue Date) and ending on the day immediately preceding the current Payment Date. The Interest Payment Amount for the Series 2012-T2 Notes on any Payment Date shall be determined based on an assumed 30-day
Interest Accrual Period. 
 “Interest Day Count Convention” means 30 days divided by 360 other than with
respect to the Initial Payment Date which is 28 days divided by 360. 
 “Issue Date” means October 17,
2012. 
 “Low Threshold Servicing Agreement” means a Designated Servicing Agreement (i) for which the
underlying Mortgage Loans have an unpaid principal balance less than $10,000,000, or (ii) contain fewer than 50 Mortgage Loans, as of the end of the most recently concluded calendar month, to the extent that such Receivable Balances, when added
to the aggregate Receivable Balances of all Receivables outstanding with respect to Low Threshold Servicing Agreements, cause the total Receivable Balances attributable to Low Threshold Servicing Agreements to exceed 2.00% of the total Receivable
Balances of all Receivables included in the Facility. 
 “Market Value Ratio” means, as of any date of
determination with respect to a Designated Servicing Agreement, the ratio (expressed as a percentage) of (i) the lesser of (A) the Funded Advance Receivable Balance for such Designated Servicing Agreement on such date and (B) the
aggregate of all Facility Eligible Receivables under such Designated Servicing Agreement on such date over (ii) the aggregate Net Property Value of the Mortgaged Properties and REO Properties for Mortgage Loans that are serviced under such
Designated Servicing Agreement on such date. 
 “Middle Threshold Servicing Agreement” means a Designated
Servicing Agreement (i) for which the underlying Mortgage Loans have an unpaid principal balance greater than or equal to $10,000,000 but less than $25,000,000, or (ii) contain at least 50 but less than 125 Mortgage Loans, as of the end of
the most recently concluded calendar month, to the extent the Receivable Balance of such Receivable, when added to the aggregate Receivable Balances of all Receivables 

  
 6 

 
outstanding with respect to Middle Threshold Servicing Agreements, cause the total Receivable Balances attributable to Middle Threshold Servicing Agreements to exceed 8.00% of the aggregate of
the Receivable Balances of all Receivables included in the Facility. 
 “Monthly Reimbursement Rate” means, as
of any date of determination, the arithmetic average of the fractions (expressed as percentages), determined for each of the three (3) most recently concluded calendar months, obtained by dividing (i) the aggregate Advance Reimbursement
Amounts collected by the Servicer and deposited into the Trust Accounts during such month by (ii) the aggregate Receivable Balances funded by the Servicer using its own funds or facility funds as of the close of business on the last day of the
Monthly Advance Collection Period. 
 “MSRs” means mortgage servicing rights and/or rights to mortgage
servicing rights, as applicable. 
 “Net Proceeds Coverage Percentage” means, for any Payment Date, the
percentage equivalent of a fraction, (i) the numerator of which equals the amount of Collections on Receivables deposited into the Collection and Funding Account during the related Monthly Advance Collection Period, and (ii) the
denominator of which equals the aggregate average outstanding Note Balances of all Outstanding Notes during such Monthly Advance Collection Period. 
 “Net Property Value” means, with respect to any Mortgaged Property, (A) with respect to a Current Mortgage Loan, the market value of such Mortgaged Property as established by
OLS’s independent property valuation methodology (as established by the lesser of any appraisal, broker’s price opinion or OLS’s automated valuation model with respect to such Mortgaged Property) or (B) with respect to a
Delinquent Mortgage Loan, the product of (a) the market value of such Mortgaged Property as established by OLS’s independent property valuation methodology (as established by the lesser of any appraisal, broker’s price opinion or
OLS’s automated valuation model with respect to such Mortgaged Property), multiplied by (b) OLS’s established market and property discount value rate, minus (c) OLS’s brokerage fee and closing costs with respect to such
Mortgaged Property, plus (d) any projected mortgage insurance claim proceeds. 
 “Note Interest Rate”
means, with respect to the Series 2012-T2 Notes, the applicable Senior Rate, provided that: (i) on any day on which a Facility Early Amortization Event or an Event of Default shall have occurred and shall be continuing at the opening of
business on such day, the “Note Interest Rate” for any Class of Notes shall equal the applicable Senior Rate, plus 3.00% per annum or (ii) in the event that any Class of Notes is not refinanced on the Expected Repayment Date, the
“Note Interest Rate” of such Class of Notes shall equal the Senior Rate, plus 1.00% per annum. 
 “Note
Rating Agency” means, for the Series 2012-T2 Notes, S&P. 
 “PSA Stressed Non-Recoverable Advance
Amount” means as of any date of determination, the sum of: 

  
 7 

 (i) for all Mortgage Loans that are current as of such date, the greater of
(A) zero and (B) the excess of (1) Total Advances related to such Mortgage Loans on such date over (2) (x) in the case of Mortgage Loans secured by a first lien, the product of 50% and the sum of all of the Net Property
Values for the related Mortgaged Property or (y) in the case of Mortgage Loans secured by a second or more junior lien, zero; and 
 (ii) for all Mortgage Loans that are delinquent as of such date, but not related to property in foreclosure or REO Property, the greater of (A) zero and (B) the excess of (i) Total Advances
related to such Mortgage Loans on such date over (ii) (x) in the case of Mortgage Loans secured by a first lien, the product of 50% and the sum of all of the Net Property Values for the related Mortgaged Property or (y) in the case of
Mortgage Loans secured by a second or more junior lien, zero; and 
 (iii) for all Mortgage Loans that are
related to properties in foreclosure, the greater of (A) zero and (B) the excess of (1) Total Advances related to such Mortgage Loans on such date over (2) (x) in the case of Mortgage Loans secured by a first lien, the
product of 50% and the sum of all of the Net Property Values for the related Mortgaged Property or (y) in the case of Mortgage Loans secured by a second or more junior lien, zero; and 

(iv) for all Mortgage Loans that are related to REO Property, the greater of (A) zero and (B) the excess of
(1) Total Advances related to such Mortgage Loans on such date over (2) (x) in the case of Mortgage Loans secured by a first lien, the product of 50% and the sum of all of the Net Property Values for the related REO Property or
(y) in the case of Mortgage Loans secured by a second or more junior lien, zero. 
 “Redemption
Percentage” means, for the Series 2012-T2 Notes, 10%. 
 “Senior Rate” means, for (i) the
Class A-1-T2 Term Notes will be a rate per annum equal to 1.34%; (ii) the Class A-2-T2 Term Notes will be a rate per annum equal to 1.99%; (iii) the Class B-1-T2 Term Notes will be a rate per annum equal to 1.74%; (iv) the
Class B-2-T2 Term Notes will be a rate per annum equal to 2.48%; (v) the Class C-1-T2 Term Notes will be a rate per annum equal to 3.22%; (vi) the Class C-2-T2 Term Notes will be a rate per annum equal to 3.96%; (vii) the Class D-1-T2
Term Notes will be a rate per annum equal to 3.96%; and (viii) the Class D-2-T2 Term Notes will be a rate per annum equal to 4.94%. 
 “Senior Secured Term Loan Facility Agreement” means the Senior Secured Term Loan Facility Agreement, dated as of September 1, 2011, among OFC, as borrower, certain subsidiaries of
OFC, as subsidiary guarantors, the lenders party thereto from time to time and the Administrative Agent, as administrative agent and as collateral agent, as amended, supplemented, restated, or otherwise modified from time to time. 

“Series 2012-T2 Note Balance” means the aggregate Note Balance of the Series 2012-T2 Notes. 

“Series 2012-T2 Placement Agency Agreement” means that certain Placement Agency Agreement, dated October 10, 2012,
by and among the Issuer, the Receivables Seller Barclays, as Placement Agent and Wells Fargo Securities, LLC as Placement Agent. 

  
 8 

 “Stated Maturity Date” means October 15, 2043 for the Group 1 Notes
and October 15, 2045 for the Group 2 Notes. 
 “Stressed Time” means, as of any date of determination, the
percentage equivalent of a fraction, the numerator of which is one (1), and the denominator of which equals the related Stressed Time Percentage times the Monthly Reimbursement Rate on such date. 

“Stressed Time Percentage” means, for the Series 2012-T2 Notes, Class A-T2 Term Notes: 9.00%, Class B-T2 Term
Notes: 12.00%, Class C-T2 Term Notes: 16.00% and Class D-T2 Term Notes: 22.00%. 
 “Target Amortization
Amounts” means, for each Class of the Series 2012-T2 Notes, 1/6 of the Note Balance at the close of business on the last day of its Revolving Period. 
 “Target Amortization Event” for any Class of the Series 2012-T2 Notes, means the earlier of (A) the related Expected Repayment Date for such Class or (B) the occurrence of any
of the following conditions or events, which is not waived by 100% of the Holders of the Series 2012-T2 Notes: 

(i) on any Payment Date, the arithmetic average of the Net Proceeds Coverage Percentage determined for such Payment Date
and the two preceding Payment Dates is less than five times the percentage equivalent of a fraction (A) the numerator of which equals the sum of the accrued Interest Payment Amounts for each Class of all Outstanding Notes on such date and
(B) the denominator of which equals the aggregate average Note Balances of each Class of Outstanding Notes during the related Monthly Advance Collection Period; 

(ii) the occurrence of one or more Servicer Termination Events under Designated Servicing Agreements representing 15% or
more (by Mortgage Loan balance as of the date of termination) of all the Designated Servicing Agreements then included in the Facility, but not including any Servicer Termination Events that are solely due to the breach of one or more Collateral
Performance Tests or a Servicer Ratings Downgrade or the transfer of subservicing of any such Designated Servicing Agreement without the prior written consent of the Administrative Agent; 

(iii) the Monthly Reimbursement Rate is less than 8.00%; or 

(iv) the rating assigned to any Class of Notes is reduced below the Applicable Rating assigned to such Class of Notes.

 “Transaction Documents” means, in addition to the documents set forth in the definition thereof in the Base
Indenture, this Indenture Supplement and the Series 2012-T2 Placement Agency Agreement, each as amended, supplemented, restated or otherwise modified from time to time. 
 “Trigger Advance Rate” means, for any Class within the Series 2012-T2 Notes, as of any date, the rate equal to (1) 100% minus (2) the product of (a) one-twelfth of the
weighted average interest rates for all Classes of Series 2012-T2 Notes, as of such date plus the related Expense Rate as of such date, multiplied by (b) the related Stressed Time for such Class as of such date. 

  
 9 

 “UPB Ratio” means, as of any date of determination with respect to a
Designated Servicing Agreement, the ratio (expressed as a percentage) of (i) the lesser of (A) the Funded Advance Receivable Balance for such Designated Servicing Agreement on such day, and (B) the aggregate of the Receivable Balances
of Facility Eligible Receivables under such Designated Servicing Agreement on such date over (ii) the aggregate of the unpaid principal balances of the Mortgage Loans serviced under such Designated Servicing Agreement on such date. 

“Weighted Average Foreclosure Timeline” means, as of any Determination Date, calculated as of the end of the preceding
calendar month, the six-month rolling average of the number of months (calculated consistently with then current Fannie Mae state foreclosure timeline guidance) elapsed from the initiation of foreclosure through the foreclosure sale of each Mortgage
Loan serviced under the Designated Servicing Agreements (with each Mortgage Loan weighted equally). 
  

	 	Section 3.	Forms of Series 2012-T2 Notes. 

 The form of the Rule 144A Global Note and of the Regulation S Global Notes that may be used to evidence the Series 2012-T2 Term Notes in the circumstances described in Section 5.4(c) of the Base
Indenture are attached to the Base Indenture as Exhibits A-1 and A-3, respectively. For the avoidance of doubt, and subject to the terms and provisions of Section 5.4 of the Base Indenture, the Series 2012-T2 Term Notes are to be
issued Book-Entry Notes. 
  

	 	Section 4.	Collateral Value Exclusions. 

 For purposes of calculating “Collateral Value” in respect of the Series 2012-T2 Notes, the Collateral Value shall be zero for any Receivable that: 

(i) is attributable to any Designated Servicing Agreement to the extent that the related Receivable Balance, when added to
the aggregate Receivable Balance already outstanding with respect to such Designated Servicing Agreement, would cause the related Advance Ratio to be equal to or greater than 100%; 

(ii) is attributable to any Designated Servicing Agreement to the extent that such Receivable Balance, when added to the
aggregate Receivable Balance already outstanding with respect to such Designated Servicing Agreement, would cause the related UPB Ratio to exceed 20%; 
 (iii) is attributable to any Designated Servicing Agreement to the extent that the related Receivable Balance, when added to the aggregate Receivable Balance already outstanding with respect to such
Designated Servicing Agreement, would cause the related Market Value Ratio to exceed 20%; 
 (iv) is attributable
to a Designated Servicing Agreement that is a Low Threshold Servicing Agreement; 

  
 10 

 (v) is attributable to a Designated Servicing Agreement that is a Middle
Threshold Servicing Agreement; 
 (vi) is attributable to a Designated Servicing Agreement, to the extent that
the Receivable Balance of such Receivable, when added to the aggregate Receivable Balance outstanding with respect to that same Designated Servicing Agreement, would cause the total Receivable Balances attributable to such Designated Servicing
Agreement to exceed 15% of the aggregate of the Receivable Balances of all Receivables included in the Trust Estate; and 
 (vii) until Wells Fargo Securities, LLC, as Administrative Agent under the Base Indenture, shall have provided its written consent (in its sole and absolute discretion), and notwithstanding satisfaction
of clauses (xi) and (xii) of the definition of “Facility Eligible Receivable” and clause (viii) of the definition of “Facility Eligible Servicing Agreement” in the Base Indenture, is a Servicing Fee Advance
Receivable. 
  

	 	Section 5.	General Reserve Account. 

In accordance with the terms and provisions of this Section 5 and Section 4.6 of the Base Indenture, the Indenture Trustee shall
establish and maintain a General Reserve Account with respect to the Series 2012-T2 Term Notes for the benefit of the Series 2012-T2 Noteholders. 
  

	 	Section 6.	Payments; Note Balance Increases; Early Maturity. 

 The Paying Agent shall make payments of interest on the Series 2012-T2 Notes on each Payment Date in accordance with Section 4.5 of the Base Indenture and any payments of interest, Cumulative
Interest Shortfall Amounts, or Fees allocated to the Series 2012-T2 Notes shall be paid first to the Class A-T2 Term Notes, pro rata, thereafter to the Class B-T2 Term Notes, pro rata, thereafter to the Class C-T2 Term Notes, pro rata, and
thereafter to the Class D-T2 Term Notes, pro rata. The Paying Agent shall make payments of principal on the Series 2012-T2 Notes on each Payment Date in accordance with Section 4.5 of the Base Indenture during any Target Amortization Period or
in any Full Amortization Period. 
 The Series 2012-T2 Notes are subject to optional redemption in accordance with the terms of
Section 13.1 of the Base Indenture and each of the Class A-1-T2 Term Notes, Class B-1-T2 Term Notes, Class C-1-T2 Term Notes and Class D-1-T2 Term Notes are subject to redemption and refinancing pursuant to Section 7 of this Indenture
Supplement. 
 Any payments of principal allocated to the Series 2012-T2 Notes during a Full Amortization Period shall be
applied in the following order of priority, first, to the Class A-T2 Term Notes, pro rata, until their Note Balance has been reduced to zero, second, to the Class B-T2 Term Notes, pro rata. until their Note Balance has been
reduced to zero, third, to the Class C-T2 Term Notes, pro rata, until their Note Balance has been reduced to zero, and fourth, to the Class D-T2 Term Notes, pro rata, until their Note Balance has been reduced to zero. 

Notwithstanding anything to the contrary in Section 8.1(a)(i) of the Base Indenture, an Event of Default under Section 8.
1(a)(i) shall exist on the Series 2012-T2 Notes only if there 

  
 11 

 
is a default (which default continues for a period of two (2) Business Days following written or electronic notice from the Indenture Trustee or the Administrative Agent), in the
payment of any principal, Senior Interest Amount or any Fees due and owing on any Payment Date (including without limitation the full aggregate amount of any Target Amortization Amounts due on such Payment Date). 

 

	 	Section 7.	Optional Redemption and Refinancing. 

 The Class A-1-T2 Term Notes, the Class B-1-T2 Term Notes, the Class C-1-T2 Term Notes and the Class D-1-T2 Term Notes are subject to optional redemption by the Issuer pursuant to
Section 13.1 of the Base Indenture, in whole but not in part with respect to such group of Classes, using the proceeds of the issuance and sale of one or more new Classes of Series 2012-T2 Notes issued pursuant to a supplement to this
Indenture Supplement, on any Business Day after the date on which the related Revolving Period ends or on any Business Day within 10 days prior to the end of such Revolving Period upon 10 days’ prior notice to the Indenture Trustee. In
anticipation of a redemption of any Class or group of Classes of Notes at the end of its Revolving Period, the Issuer may issue a new Series or one or more Classes of Notes within the 90 day period prior to the end of such Revolving Period and
reserve the cash proceeds of the issuance for the sole purpose of paying the principal balance and all accrued and unpaid interest on the Class or Classes to be redeemed, on the last day of their Revolving Period. Any supplement to this Indenture
Supplement executed to effect an optional redemption may be entered into without consent of the Holders of any of the Notes pursuant to Section 12(a)(iv) of the Base Indenture. Any Notes issued in replacement for the Class A-1-T2 Term
Notes, the Class B-1-T2 Term Notes, the Class C-1-T2 Term Notes and the Class D-1-T2 Term Notes will have the same rights and privileges as the Class of Series 2012-T2 Note that was refinanced with the related proceeds thereof. 

 

	 	Section 8.	[RESERVED]. 

  

	 	Section 9.	Series Reports. 

 (a)
Series Calculation Agent Report. The Calculation Agent shall deliver a report of the following items together with each Calculation Agent Report pursuant to Section 3.1 of the Base Indenture to the extent received from the Servicer, with
respect to the Series 2012-T2 Notes: 
 (i) the unpaid principal balance of the Mortgage Loans subject to any Low
Threshold Servicing Agreement and Middle Threshold Servicing Agreement; 
 (ii) the Advance Ratio for each
Designated Servicing Agreement, and whether the Advance Ratio for such Designated Servicing Agreement exceeds 100%; 
 (iii) the Market Value Ratio for each Designated Servicing Agreement, and whether the Market Value Ratio for such Designated Servicing Agreement exceeds 20%; 

(iv) the UPB Ratio for each Designated Servicing Agreement, and whether the UPB Ratio for such Designated Servicing
Agreement exceeds 20%; 

  
 12 

 (v) for each Middle Threshold Servicing Agreement, as of the end of the most
recently concluded calendar month, the aggregate of the Funded Advance Receivable Balances of all Receivables attributable to such Designated Servicing Agreement as a percentage of the aggregate of the Funded Advance Receivable Balances of all
Receivables included in the Trust Estate; 
 (vi) for each Low Threshold Servicing Agreement, as of the end of
the most recently concluded calendar month, the aggregate of the Funded Advance Receivable Balances of all Receivables attributable to such Designated Servicing Agreement as a percentage of the aggregate of the Funded Advance Receivable Balances of
all Receivables included in the Trust Estate; 
 (vii) the Weighted Average Foreclosure Timeline as of the
Determination Date for the most recently ended calendar month; 
 (viii) a list of each Target Amortization Event
for the Series 2012-T2 Notes and presenting a yes or no answer beside each indicating whether each such Target Amortization Event has occurred as of the end of the Monthly Advance Collection Period preceding the upcoming Payment Date or the Advance
Collection Period preceding the upcoming Interim Payment Date. 
 (ix) whether any Receivable, or any portion of
the Receivables, attributable to a Designated Servicing Agreement, has zero Collateral Value by virtue of the definition of “Collateral Value” or Section 4 of this Indenture Supplement; 

(x) a calculation of the Net Proceeds Coverage Percentage in respect of each of the three preceding Monthly Advance
Collection Periods (or each that has occurred since the date of this Indenture Supplement, if less than three), and the arithmetic average of the three; 
 (xi) the Monthly Reimbursement Rate for the upcoming Payment Date or Interim Payment Date; 
 (xii) whether any Target Amortization Amount that has become due and payable has been paid; 
 (xiii) the PSA Stressed Non-Recoverable Advance Amount for the upcoming Payment Date or Interim Payment Date; and 
 (xiv) the Trigger Advance Rate for each Class. 
 In addition to the information provided in the
above Calculation Agent Report, to the extent the following information is specifically provided to the Calculation Agent by HLSS or OLS, the Calculation Agent shall promptly, from time to time, provide such other financial or non-financial
information, documents, records or reports with respect to the Receivables or the condition or operations, financial or otherwise, of HLSS or OLS, including any information available to HLSS or OLS, as the Administrative Agent or any Noteholder may
from time to time reasonably request in order to assist the Administrative Agent or such Noteholder in 

  
 13 

 
complying with the requirements of Article 122a(4) and (5) of the CRD as may be applicable to the Administrative Agent or such Noteholder; provided, that this Section 9(a)(xv) shall be
applicable to any and all other Series of Notes issued under the Base Indenture. 
 (b) Series Payment Date Report. In
conjunction with each Payment Date Report, the Indenture Trustee shall also report the Stressed Time Percentage. 
 (c)
Limitation on Indenture Trustee Duties. The Indenture Trustee shall have no independent duty to verify: (i) the occurrence of any of the events described in clause (ii) of the definition of “Target Amortization Event,” or
(ii) compliance with clause (vi) of the definition of “Facility Eligible Servicing Agreement.” 
  

	 	Section 10.	Conditions Precedent Satisfied. 

 The Issuer hereby represents and warrants to the Holders of the Series 2012-T2 Notes and the Indenture Trustee that, as of the related Issuance Date, each of the conditions precedent set forth in the Base
Indenture, including but not limited to those conditions precedent set forth in Section 6.10(b) and Article XII thereof and Section 12 hereof, as applicable, have been satisfied. 

 

	 	Section 11.	Representations and Warranties. 

 The Issuer, the Administrator, the Servicer and the Indenture Trustee hereby restate as of the related Issuance Date, or as of such other date as is specifically referenced in the body of such
representation and warranty, all of the representations and warranties set forth in Sections 9.1, 10.1 and 11.14, respectively, of the Base Indenture. 
  

	 	Section 12.	Amendments. 

 (a)
Notwithstanding any provisions to the contrary in Article XII of the Base Indenture, and in addition to and otherwise subject to the provisions set forth in Sections 12.1 and 12.3 of the Base Indenture, without the consent of the Holders of any
Notes or any other Person but with the consent of the Issuer (evidenced by its execution of such amendment), the Indenture Trustee, the Administrator, the Servicer, the Subservicer (whose consent shall be required only to the extent that such
amendment would materially affect the Subservicer) and the Administrative Agent, and with prior notice to the applicable Note Rating Agency, at any time and from time to time, upon delivery of an Issuer Tax Opinion and upon delivery by the Issuer to
the Indenture Trustee of an Officer’s Certificate to the effect that the Issuer reasonably believes that such amendment will not have an Adverse Effect, may amend this Indenture Supplement for any of the following purposes: (i) to correct
any mistake or typographical error or cure any ambiguity, or to cure, correct or supplement any defective or inconsistent provision herein or any other Transaction Document; (ii) to correct, modify or supplement any provision herein that may be
defective or may be inconsistent with any provision in the final Private Placement Memorandum dated October 16, 2012, as it may be amended or supplemented from time to time; (iii) to take any action necessary to maintain the rating
currently assigned by the applicable Note Rating Agency and/or to avoid such Class of Notes being placed on negative watch by such Note Rating Agency; (iv) to issue additional Classes of Series 2012-T2 Notes in accordance with
Section 7 of this Indenture Supplement; or (v) to amend any other provision of this Indenture Supplement. 

  
 14 

 (b) Notwithstanding any provisions to the contrary in Section 6.10 or Article XII of
the Base Indenture, no supplement, amendment or indenture supplement entered into with respect to the issuance of a new Series of Notes or pursuant to the terms and provisions of Section 12.2 of the Base Indenture may, without the consent 100%
of the Series 2012-T2 Notes, supplement, amend or revise any term or provision of this Indenture Supplement. 
  

	 	Section 13.	Counterparts. 

 This
Indenture Supplement may be executed in any number of counterparts, by manual or facsimile signature, each of which so executed shall be deemed to be an original, but all of such counterparts shall together constitute but one and the same
instrument. 
  

	 	Section 14.	Entire Agreement. 

 This
Indenture Supplement, together with the Base Indenture incorporated herein by reference, constitutes the entire agreement among the parties hereto with respect to the subject matter hereof, and fully supersedes any prior or contemporaneous
agreements relating to such subject matter. 
  

	 	Section 15.	Limited Recourse. 

Notwithstanding any other terms of this Indenture Supplement, the Series 2012-T2 Notes, any other Transaction Documents or otherwise, the
obligations of the Issuer under the Series 2012-T2 Notes, this Indenture Supplement and each other Transaction Document to which it is a party are limited recourse obligations of the Issuer, payable solely from the Trust Estate, and following
realization of the Trust Estate and application of the proceeds thereof in accordance with the terms of this Indenture Supplement, none of the Holders of Series 2012-T2 Notes, the Indenture Trustee or any of the other parties to the Transaction
Documents shall be entitled to take any further steps to recover any sums due but still unpaid hereunder or thereunder, all claims in respect of which shall be extinguished and shall not thereafter revive. No recourse shall be had for the payment of
any amount owing in respect of the Series 2012-T2 Notes or this Indenture Supplement or for any action or inaction of the Issuer against any officer, director, employee, shareholder, stockholder or incorporator of the Issuer or any of their
successors or assigns for any amounts payable under the Series 2012-T2 Notes or this Indenture Supplement. It is understood that the foregoing provisions of this Section 15 shall not (a) prevent recourse to the Trust Estate for the
sums due or to become due under any security, instrument or agreement which is part of the Trust Estate or (b) save as specifically provided therein, constitute a waiver, release or discharge of any indebtedness or obligation evidenced by the
Series 2012-T2 Notes or secured by this Indenture Supplement. It is further understood that the foregoing provisions of this Section 15 shall not limit the right of any Person to name the Issuer as a party defendant in any proceeding or
in the exercise of any other remedy under the Series 2012-T2 Notes or this Indenture Supplement, so long as no judgment in the nature of a deficiency judgment or seeking personal liability shall be asked for or (if obtained) enforced against any
such Person or entity. 

  
 15 

	 	Section 16.	Owner Trustee Limitation of Liability. 

 It is expressly understood and agreed by the parties hereto that (a) this Indenture Supplement is executed and delivered by Wilmington Trust Company, not individually or personally, but solely as
Owner Trustee of the Issuer under the Trust Agreement, in the exercise of the powers and authority conferred and vested in it, (b) each of the representations, undertakings and agreements herein made on the part of the Issuer is made and
intended not as a personal representation, undertaking and agreement by Wilmington Trust Company but is made and intended for the purpose of binding only the Issuer, (c) nothing herein contained shall be construed as creating any liability on
Wilmington Trust Company, 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 (d) under no circumstances shall Wilmington Trust Company be personally liable for the payment of any indebtedness or expenses of the Issuer or be liable for the breach or failure of any obligation, representation, warranty
or covenant made or undertaken by the Issuer under this Indenture Supplement or the other Transaction Documents. 

  
 16 

 IN WITNESS WHEREOF, HLSS Servicer Advance Receivables Trust, as Issuer, HLSS
Holdings, LLC (as Administrator on behalf of the Issuer and as Servicer (on and after the MSR Transfer Date)), Ocwen Loan Servicing, LLC (as Servicer (prior to the MSR Transfer Date)), Deutsche Bank National Trust Company, as Indenture Trustee,
Calculation Agent, Paying Agent and Securities Intermediary, and Barclays Bank PLC, as Administrative Agent, have caused this Indenture Supplement relating to the Series 2012-T2 Notes, to be duly executed by their respective officers thereunto duly
authorized and their respective signatures duly attested all as of the day and year first above written. 
  

									
	 HLSS SERVICER ADVANCE
 RECEIVABLES TRUST, as Issuer
	 		 	 DEUTSCHE BANK NATIONAL TRUST
 COMPANY, as Indenture Trustee, Calculation
 Agent, Paying Agent and Securities

Intermediary and not in its individual capacity

	  
 By: Wilmington Trust Company, not in its

individual capacity but solely as Owner Trustee
	 		 
					
	By:	 	/s/ Yvette L. Howell	 		 	By:	 	/s/ Amy McNulty
		 	Name: Yvette L. Howell	 		 		 	Name: Amy McNulty
		 	Title: Assistant Vice President	 		 		 	Title: Associate
					
		 		 		 	By:	 	/s/ Ronaldo Reyes
		 		 		 		 	Name: Ronaldo Reyes
		 		 		 		 	Title: Vice President
			
	 HLSS HOLDINGS, LLC,
 as Administrator and as Servicer (on or after
 the MSR Transfer Date)
	 		 	 OCWEN LOAN SERVICING, LLC,
 as a Subservicer and as Servicer (prior to the
 MSR Transfer Date)

					
	By:	 	/s/ James E. Lauter	 		 	By:	 	/s/ Ronald M. Faris
		 	Name: James E. Lauter	 		 		 	Name: Ronald M. Faris
		 	Title: SVP and CEO	 		 		 	Title: President and CEO
				
	 BARCLAYS BANK PLC,

as Administrative Agent
	 		 		 	
					
	By:	 	/s/ Diane Rinnovatore	 		 		 	
		 	Name: Diane Rinnovatore	 		 		 	
		 	Title: Managing Director	 		 		 	

 [Signature Page to Indenture Supplement – HLSS Series 2012-T2 Notes]FORM OF EXECUTIVE OFFICER INCENTIVE PLAN

 Exhibit 10.18 
 EXECUTIVE OFFICER INCENTIVE PLAN 
 STOCK AWARD AGREEMENT UNDER 

THE MICROSOFT CORPORATION 2001 STOCK PLAN 
 Award Number <<GrantIdentifier>>  
 This Award Agreement sets forth the terms and
conditions of an award (the “Award”) of performance-based Stock Awards (“SAs”) awarded to <<FullName>> (“Awardee”) by Microsoft Corporation (hereinafter the “Company”) in the exercise of its
sole discretion under the Microsoft Corporation 2001 Stock Plan (the “Plan”) and pursuant to the Microsoft Corporation Executive Officer Incentive Plan (the “EOIP”) on <<GrantDate>> (the “Award
Date”). Capitalized terms used but not defined in this Award Agreement shall have the meanings assigned to them in the Plan. 
 1.
Award. 
 (a) The number of SAs initially subject to the Award (the “GrantedSAs”) is <<Granted SAs>>.
The performance period of the Award (the “Performance Period”) is the Company’s <<Year>> fiscal year. At the end of the Performance Period, the Committee (as that term is defined in Section 2(f) of the Plan)
will determine the number of SAs earned under the Award as set forth in Section 2 and advise Awardee of the number (these earned SAs are the “Earned SAs”). 
 (b) The Earned SAs represent the Company’s unfunded and unsecured promise to issue Common Shares at a future date, subject to the terms of this Award Agreement and the Plan. Awardee has no rights under the
Earned SAs other than the rights of a general unsecured creditor of the Company. 
 2. Performance Goal; Earned SAs. 

(a) Not later than 90 days after the beginning of the Performance Period, the Committee shall determine the performance goal (the “Performance
Goal”) for the Performance Period under the EOIP, which shall apply to this Award and shall be set forth in Schedule A. 
 (b) Within
a reasonable time after the close of the Performance Period, and in no event later than 90 days following the close of the Performance Period, the Committee shall determine whether the Performance Goal has been met and, if applicable, certify in
accordance with the requirements of Code Section 162(m) to its satisfaction. The date the Committee makes this determination is the “Determination Date”. If the Performance Goal has not been met, the number of Earned SAs will be zero.
If the Performance Goal has been met, the number of Earned SAs will be determined by the Committee in accordance with Schedule A. 

 3. Vesting of SAs. 
 (a) Subject to the terms of this Award Agreement and the Plan and provided that Awardee remains continuously employed through the vesting dates set out below, the Earned SAs shall vest as follows: 

 

					
	Vesting Date	  	Percentage
of Earned
SAs	 
	
	

		
	 [Insert last business day in August following the Award Approval Effective Date – for FY13, this is 8/31/13 (“Initial
Vest Date”)
	  	 	25	% 
	 [1st anniversary of Initial Vest Date]
	  	 	25	% 
	 [2nd anniversary of Initial Vest Date]
	  	 	25	% 
	 [3rd anniversary of Initial Vest Date]
	  	 	25	% 

 Vesting will not occur before the first NASDAQ Stock Market regular trading day that is on or after the applicable
vesting date. 
 (b) Awardee agrees that the SAs subject to this Award Agreement, and other incentive or performance-based compensation
Awardee receives or has received from the Company, shall be subject to the Company’s executive compensation recovery policy, as amended from time to time. 
 (c) AWARDEE’S RIGHTS IN THE SAs SHALL BE AFFECTED, WITH REGARD TO BOTH VESTING SCHEDULE AND TERMINATION, BY LEAVES OF ABSENCE, CHANGES IN THE NUMBER OF HOURS WORKED, PARTIAL DISABILITY, AND OTHER CHANGES IN
AWARDEE’S EMPLOYMENT STATUS AS PROVIDED IN THE COMPANY’S CURRENT POLICIES FOR THESE MATTERS. ACCOMPANYING THIS AWARD AGREEMENT IS A CURRENT COPY OF THESE POLICIES. THESE POLICIES MAY CHANGE FROM TIME TO TIME WITHOUT NOTICE IN THE
COMPANY’S SOLE DISCRETION, AND AWARDEE’S RIGHTS WILL BE GOVERNED BY THE POLICIES IN EFFECT AT THE TIME OF ANY EMPLOYMENT STATUS CHANGE. E-MAIL “BENEFITS” FOR A COPY OF THE MOST CURRENT POLICIES. 

4. Termination.    Unless terminated earlier under Section 5, 6 or 7 below, an Awardee’s rights under this
Award Agreement with respect to the SAs under this Award Agreement shall terminate at the time the SAs are converted into Common Shares and distributed to Awardee. 
 5. Termination of Awardee’s Status as a Participant.    Except as otherwise specified in Section 6, 7 and 8 below, in the event of termination of Awardee’s Continuous
Status as a Participant (as that term is defined in Section 2(j) of the Plan), Awardee’s rights under this Award Agreement in any unvested SAs shall terminate. For the avoidance of doubt, an Awardee’s Continuous Status as a
Participant terminates at the time Awardee’s actual employer ceases to be the Company or a “Subsidiary” of the Company, as that term is defined in Section 2(y) of the Plan, and except as otherwise specified in Section 6, 7
and 8 below, no person shall have any rights as an Awardee under this Award Agreement unless he or she is in Continuous Status as a Participant on the Award Date. 
 6. Disability of Awardee.    Notwithstanding the provisions of Section 5 above, in the event of termination of Awardee’s Continuous Status as a Participant as a result of total
and permanent disability (as that term is defined in Section 12(c) of the Plan and the policies referenced in Section 3(c) above), outstanding unvested Earned SAs shall become immediately vested. 

 7. Death of Awardee.    Notwithstanding the provisions of Section 5
above, if Awardee is, at the time of death, in Continuous Status as a Participant, outstanding unvested Earned SAs shall become immediately vested. 
 8. Retirement of Awardee.    Notwithstanding the provisions of Section 5 above, in the event of Awardee’s Retirement, Awardee shall be treated as continuously employed through
the vesting periods in Section 3(a) above. For this purpose, “Retirement” means termination of employment with the Company or a Subsidiary after the earlier of (a) age 65, or (b) attaining age 55 and 15 years of Continuous
Service, provided that immediately prior to termination of employment Awardee is employed by Microsoft (or a Subsidiary) in the United States. 
 This Section 8 will only apply to a Retirement if (a) the Retirement occurs more than one year after the Award Date, (b) Awardee executes a release in conjunction with the Retirement in the form
provided by the Company, and (c) Awardee’s employment does not terminate due to misconduct (as determined in the sole discretion of the Company’s senior corporate officer in charge of the Human Resources department), including but not
limited to misconduct in violation of Company policy and misconduct that adversely affects the Company’s interests or reputation. 

For purposes of this Section 8, “Continuous Service” means that Awardee has continuously remained an employee of the Company or a
Subsidiary, measured from Awardee’s “most recent hire date” as reflected in the Company records. For an Awardee who became an employee of the Company following the acquisition of his or her employer by the Company or a Subsidiary,
service with the acquired employer shall count toward Continuous Service, and Continuous Service shall be measured from Awardee’s acquired company hire date as reflected in the Company’s records. 

9. Value of Unvested SAs.    In consideration of the award of these SAs, Awardee agrees that upon and following
termination of Awardee’s Continuous Status as a Participant for any reason (whether or not in breach of applicable laws), and regardless of whether Awardee is terminated with or without cause, notice, or pre-termination procedure or whether
Awardee asserts or prevails on a claim that Awardee’s employment was terminable only for cause or only with notice or pre-termination procedure, any unvested SAs under this Award Agreement shall be deemed to have a value of zero dollars
($0.00). 
  

	10.	 Conversion of SAs to Common Shares; Responsibility for Taxes. 

(a) Provided Awardee has satisfied the requirements of Section 10(b) below, on the vesting of any Earned SAs, the vested Earned SAs shall be
converted into an equivalent number of Common Shares that will be distributed to Awardee within 90 days after the date of the vesting event (but in no event prior to the Determination Date), or in the event of Awardee’s death, to Awardee’s
legal representative within 90 days after date of death (but in no event prior to the Determination Date). Notwithstanding the foregoing, if accelerated vesting of an SA occurs pursuant to a provision of the Plan not addressed in this Award
Agreement, distribution of the related Common Share shall not occur until the date distribution would have occurred under this Award Agreement absent this accelerated vesting. The distribution to Awardee, or in the case of Awardee’s death, to
Awardee’s legal representative, of Common Shares in respect of the vested Earned SAs shall be evidenced by means that the Company determines to be appropriate. In the event ownership or issuance of Common Shares is not feasible due to
applicable exchange controls, securities regulations, tax laws or other provisions of applicable law, as determined by the Company in its sole discretion, Awardee, or in the event of Awardee’s death, Awardee’s legal representative, shall
receive cash proceeds in an amount equal to the value of the Common Shares otherwise distributable to Awardee, as determined by the Company in its sole discretion, net of amounts withheld in satisfaction of the requirements of Section 10(b)
below. 
 (b) Regardless of any action the Company or Awardee’s actual employer takes with respect to any or all income tax
(including federal, state and local taxes), social insurance, payroll tax, payment on account, or other tax-related withholding items (“Tax-Related Items”) that arise in connection with the SAs, Awardee acknowledges and agrees that the
ultimate liability for any Tax-Related Items determined by the 

 
Company in its discretion to be legally due by Awardee, is and remains Awardee’s responsibility. Awardee acknowledges and agrees that the Company and/or Awardee’s actual employer
(i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the SAs, including the grant of the SAs, the vesting of Earned SAs, the conversion of Earned SAs into Common Shares or
the receipt of an equivalent cash payment, the subsequent sale of any Common Shares acquired and the receipt of any dividends; and (ii) do not commit to and are under no obligation to structure the terms of the grant or any aspect of the SAs to
reduce or eliminate Awardee’s liability for any Tax-Related Items. 
 Prior to the relevant taxable or tax-withholding event, as
applicable, Awardee shall pay, or make adequate arrangements satisfactory to the Company or to Awardee’s actual employer (in their sole discretion) to satisfy all obligations for Tax-Related Items. In this regard, Awardee authorizes the Company
or Awardee’s actual employer to withhold all applicable Tax-Related Items from Awardee’s wages or other cash compensation payable to Awardee by the Company or Awardee’s actual employer. Alternatively, or in addition, the Company or
Awardee’s actual employer may, in their sole discretion, and without notice to or authorization by Awardee, (i) sell or arrange for the sale of Common Shares to be issued upon the vesting of Earned SAs or other event to satisfy the
withholding obligation, and/or (ii) withhold in Common Shares, provided that the Company and Awardee’s actual employer shall withhold only the amount of shares necessary to satisfy the minimum withholding amount or such other amount
determined by the Company as not resulting in negative accounting consequences for the Company. Awardee will be deemed to have been issued the full number of Common Shares subject to the Earned SAs, notwithstanding that a number of whole vested
Common Shares are held back solely for the purpose of paying the Tax-Related Items. Awardee shall pay to the Company or to Awardee’s actual employer any amount of Tax-Related Items that the Company or Awardee’s actual employer may be
required to withhold as a result of Awardee’s receipt of SAs, the vesting of Earned SAs, or the conversion of vested Earned SAs to Common Shares that cannot be satisfied by the means described in this paragraph. Except where applicable legal or
regulatory provisions prohibit and notwithstanding anything in the Plan to the contrary, the standard process for the payment of an Awardee’s Tax-Related Items shall be for the Company or Awardee’s actual employer to withhold in Common
Shares only to the amount of shares necessary to satisfy the minimum withholding amount or such other amount determined by the Company as not resulting in negative accounting consequences for the Company. The Company may refuse to deliver Common
Shares to Awardee if Awardee fails to comply with Awardee’s obligation in connection with the Tax-Related Items as described in this section 10. 
 (c) In lieu of issuing fractional Common Shares, on the vesting of a fraction of an Earned SA, the Company shall round the shares down to the nearest whole share and any such share that represents a fraction
of a SA will be included in a subsequent vest date. 
 (d) Until the distribution to Awardee of the Common Shares in respect of the
vested Earned SAs is evidenced by deposit in Awardee’s brokerage account, Awardee shall have no right to vote or receive dividends or any other rights as a shareholder with respect to such Common Shares, notwithstanding the vesting of Earned
SAs. No adjustment will be made for a dividend or other right for which the record date is prior to the date Awardee is recorded as the owner of the Common Shares, except as provided in Section 14 of the Plan. 

(e) By accepting the Award of SAs evidenced by this Award Agreement, Awardee agrees not to sell any of the Common Shares received on account
of vested Earned SAs at a time when applicable laws or Company policies prohibit a sale. This restriction shall apply so long as Awardee is an Employee, Consultant or outside director of the Company or a Subsidiary of the Company. 

11. Non-Transferability of SAs.    Awardee’s right in the SAs awarded under this Award Agreement and any interest
therein may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner, other than by will or by the laws of descent or distribution. SAs shall not be subject to execution, attachment or other process. 

 12. Acknowledgment of Nature of Plan and SAs.    In accepting the Award,
Awardee acknowledges that: (a) the Plan is established voluntarily by the Company, it is discretionary in nature and may be modified, amended, suspended or terminated by the Company at any time, as provided in the Plan; 

(b) the Award of SAs is voluntary and occasional and does not create any contractual or other right to receive future awards of SAs or other
awards, or benefits in lieu of SAs even if SAs have been awarded repeatedly in the past; 
 (c) all decisions with respect to SAs or
other future awards, if any, will be at the sole discretion of the Company; 
 (d) Awardee’s participation in the Plan is
voluntary; 
 (e) the future value of the underlying Common Shares is unknown and cannot be predicted with certainty; 

(f) if Awardee receives Common Shares, the value of the Common Shares acquired on vesting of Earned SAs may increase or decrease in value;

 (g) notwithstanding any terms or conditions of the Plan to the contrary and consistent with Section 5 above, in the event of
termination of Awardee’s Continuous Status as a Participant under circumstances where Section 8 above does not apply (whether or not in breach of applicable laws), Awardee’s right to receive SAs and vest under the Plan, if any, will
terminate effective as of the date that Awardee is no longer actively employed and will not be extended by any notice period mandated under applicable law. Awardee’s right to receive Common Shares pursuant to any Earned SAs after termination of
Continuous Status as a Participant, if any, will be calculated as of the date of termination of Awardee’s active employment and will not be extended by any notice period mandated under applicable law. The senior corporate officer in charge of
the Human Resources department shall have the exclusive discretion to determine when Awardee is no longer actively employed for purposes of the award of SAs; and 
 (h) Awardee acknowledges and agrees that, regardless of whether Awardee is terminated with or without cause, notice or pre-termination procedure or whether Awardee asserts or prevails on a claim that
Awardee’s employment was terminable only for cause or only with notice or pre-termination procedure, Awardee has no right to, and will not bring any legal claim or action for, (a) any damages for any portion of any Earned SAs that have
been vested and converted into Common Shares, or (b) termination of any unvested SAs under this Award Agreement. 
 13. No
Employment Right.    Awardee acknowledges that neither the fact of this Award of SAs nor any provision of this Award Agreement or the Plan or the policies adopted pursuant to the Plan shall confer upon Awardee any right with
respect to employment or continuation of current employment with the Company or with Awardee’s actual employer, or to employment that is not terminable at will. Awardee further acknowledges and agrees that neither the Plan nor this Award of SAs
makes Awardee’s employment with the Company or Awardee’s actual employer for any minimum or fixed period, and that this employment is subject to the mutual consent of Awardee and the Company or Awardee’s actual employer, and may be
terminated by either Awardee or the Company or Awardee’s actual employer at any time, for any reason or no reason, with or without cause or notice or any kind of pre- or post-termination warning, discipline or procedure. 

14. Administration.    Except as otherwise expressly provided in the Plan, the authority to manage and control the
operation and administration of this Award Agreement shall be vested in the Committee, and the Committee shall have all powers and discretion with respect to this Award Agreement as it has with respect to the Plan. Any interpretation of the Award
Agreement by the Committee and any decision made by the Committee with respect to the Award Agreement shall be final and binding on all parties. References to the Committee in this Award Agreement shall be read to include a reference to any delegate
of the Committee acting within the scope of his or her delegation. 

 15. Plan Governs.    Except as provided in Schedule A, this Award
Agreement shall be subject to the terms of the Plan and the EOIP, and this Award Agreement is subject to all interpretations, amendments, rules and regulations promulgated by the Committee from time to time pursuant to the Plan and the EOIP.

 16. Notices.    Any written notices provided for in this Award Agreement that are sent by mail shall be
deemed received three business days after mailing, but not later than the date of actual receipt. Notices shall be directed, if to Awardee, at Awardee’s address indicated by the Company’s records and, if to the Company, at the
Company’s principal executive office. 
 17. Electronic Delivery.    The Company may, in its sole
discretion, decide to deliver any documents related to SAs awarded under the Plan or future SAs that may be awarded under the Plan by electronic means or request Awardee’s consent to participate in the Plan by electronic means. Awardee hereby
consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the Company. 

18. Acknowledgment.    By Awardee’s acceptance of this Award Agreement in accordance with procedures established by
the Company, Awardee acknowledges that Awardee has received and has read, understood and accepted all the terms, conditions and restrictions of this Award Agreement, the Plan, and the current policies referenced in Section 3(b) above. Awardee
understands and agrees that this Award Agreement is subject to all the terms, conditions, and restrictions stated in this Award Agreement and in the other documents referenced in the preceding sentence, as the latter may be amended from time to time
in the Company’s sole discretion. 
 19. Board Approval.    These SAs have been awarded pursuant to the
Plan and accordingly this Award of SAs is subject to approval by an authorized committee of the Board of Directors. If this Award of SAs has not already been approved, the Company agrees to submit this Award for approval as soon as practical. If
this approval is not obtained, this award is null and void. 
 20. Governing Law and Venue.    This Award
Agreement shall be governed by the laws of the State of Washington, U.S.A., without regard to Washington laws that might cause other law to govern under applicable principles of conflicts of law. The venue for any litigation related to this Award
Agreement will be in King County, Washington. 
 21. Severability.    If one or more of the provisions of this
Award Agreement shall be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby and the invalid, illegal or unenforceable
provisions shall be deemed null and void; however, to the extent permissible by law, any provisions that could be deemed null and void shall first be construed, interpreted or revised retroactively to permit this Award Agreement to be construed so
as to foster the intent of this Award Agreement and the Plan. 
 22. Complete Award Agreement and
Amendment.    This Award Agreement (including the policies referenced in Section 3(b)) and the Plan constitute the entire agreement between Awardee and the Company regarding SAs. Any prior agreements, commitments or
negotiations concerning these SAs are superseded. This Award Agreement may be amended only by written agreement of Awardee and the Company, without consent of any other person, provided that no consent is necessary to an amendment that in the
reasonable judgment of the Committee confers a benefit on Awardee. Awardee agrees not to rely on any oral information regarding this Award of SAs or any written materials not identified in this Section 22. 

23. Code Section 409A.    This Award Agreement shall be interpreted, operated, and administered in a manner so as not to
subject Awardee to the assessment of additional taxes or interest under Code section 409A, and this Award Agreement shall be amended as the Company, in its sole discretion, determines is necessary and appropriate to avoid the application of any such
taxes or interest. 

 24. Code Section 162(m).    The Award is intended to satisfy the
applicable requirements for the performance-based compensation exception under Code section 162(m) and applicable IRS guidance issued thereunder, and it is intended that the Award be interpreted, operated and administered to meet such requirements.

 MICROSOFT CORPORATION 
 Lisa Brummel, 

<<LisaBrummelSig02.jpg>> 

Chief People Officer 

AWARDEE’S ACCEPTANCE: 
 I have
read and fully understood this Award Agreement and, as referenced in Section 18 above, I accept and agree to be bound by all of the terms, conditions and restrictions contained in this Award Agreement and the other documents referenced in it. I
intend to express my acceptance of the Award and this Award Agreement by typing my name in Awardee acceptance window provided in “step 2” of the award acceptance checklist, and I further intend the typing of my name to have the same force
and effect in all respects as a handwritten signature.

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