Document:

Exhibit 10.4

 

Execution Version

 

SERVICING AGREEMENT

 

among

 

CONN’S RECEIVABLES FUNDING 2020-A,
LLC,

AS ISSUER,

 

CONN’S RECEIVABLES 2020-A TRUST,

AS RECEIVABLES TRUST,

 

CONN APPLIANCES, INC.,

AS SERVICER,

 

and

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,

AS TRUSTEE

___________________________________________

 

DATED AS OF OCTOBER 16, 2020

 

     

     

    

 

TABLE OF CONTENTS

 

Page

	ARTICLE I          DEFINITIONS	 
	Section 1.01	Defined Terms	1
	Section 1.02	Definitions	4
	Section 1.03	Other Definitional Provisions	5
	ARTICLE II         ADMINISTRATION AND SERVICING OF RECEIVABLES AND RELATED SECURITY	 
	Section 2.01	Appointment of Servicer	5
	Section 2.02	Duties of Servicer	6
	Section 2.03	Purchase of Ineligible
    Receivables	13
	Section 2.04	Purchase of Returned
    and Refinanced Receivables	13
	Section 2.05	Rights After Designation
    of New Servicer	14
	Section 2.06	Servicer Default	17
	Section 2.07	Servicer Indemnification
    of Indemnified Parties	18
	Section 2.08	Grant of License	18
	Section 2.09	Servicing Compensation	19
	Section 2.10	Representations and Warranties
    of the Servicer	20
	Section 2.11	Reports and Records for
    the Trustee	22
	Section 2.12	Reports to the Commission	22
	Section 2.13	Affirmative Covenants
    of the Servicer	23
	Section 2.14	Negative Covenants of
    the Servicer	24
	Section 2.15	Sale of Defaulted Receivables	25
	Section 2.16	Deemed Collections	25
	ARTICLE III        RIGHTS OF NOTEHOLDERS AND ALLOCATION AND APPLICATION OF COLLECTIONS	 
	Section 3.01	Establishment of Accounts	26
	Section 3.02	Collections and Allocations	27
	ARTICLE IV        OTHER SERVICER POWERS	 
	Section 4.01	Appointment of Paying
    Agent	27
	Section 4.02	[Reserved.]	27
	ARTICLE V         OTHER MATTERS RELATING TO THE SERVICER	 
	Section 5.01	Liability of the Servicer	27
	Section 5.02	Limitation on Liability
    of the Servicer and Others	27
	Section 5.03	Servicer Not to Resign	28

 

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TABLE OF CONTENTS

 

Page

	Section 5.04	Waiver of Defaults	28
	ARTICLE VI        ADDITIONAL OBLIGATION OF THE SERVICER WITH RESPECT TO THE TRUSTEE	 
	Section 6.01	Successor Trustee	28
	Section 6.02	Tax Returns	29
	Section 6.03	Final Payment with Respect
    to Any Series	29
	Section 6.04	Optional Purchase of
    Receivables Trust Estate	29
	ARTICLE VII       MISCELLANEOUS PROVISIONS	 
	Section 7.01	Amendment	30
	Section 7.02	Protection of Right,
    Title and Interest to Receivables and Related Security	31
	Section 7.03	Governing Law	32
	Section 7.04	Notices	32
	Section 7.05	Severability of Provisions	33
	Section 7.06	Delegation	33
	Section 7.07	Waiver of Trial by Jury	33
	Section 7.08	Further Assurances	33
	Section 7.09	No Waiver; Cumulative
    Remedies	33
	Section 7.10	Counterparts	33
	Section 7.11	Third-Party Beneficiaries	34
	Section 7.12	Actions by Noteholders	34
	Section 7.13	Rule 144A Information	34
	Section 7.14	Merger and Integration	34
	Section 7.15	Headings	34
	Section 7.16	Rights of the Trustee	35
	Section 7.17	Sales Tax Proceeds	35
	Section 7.18	Limitation of Liability	35

 

	EXHIBITS	 	 
	Exhibit A	Form of Monthly
    Servicer Report	 
	Exhibit B	Form of Annual Servicer’s
    Certificate	 

 

	SCHEDULES	 	 
	 	 	 
	Schedule
    2.10(i)	Litigation	 

 

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SERVICING AGREEMENT
dated as of October 16, 2020 (the “Agreement”) by and among CONN’S RECEIVABLES FUNDING 2020-A,
LLC, a Delaware limited liability company, as issuer (the “Issuer”), CONN’S RECEIVABLES 2020-A
TRUST, a Delaware statutory trust, as receivables trust (the “Receivables Trust”), CONN APPLIANCES, INC.,
a Texas corporation (“Conn Appliances”), as initial Servicer, and WELLS FARGO BANK, NATIONAL ASSOCIATION,
a national banking association, as trustee under the Indenture (defined below) (in such capacity, together with its successors
and assigns in such capacity, the “Trustee”).

 

WHEREAS, the Receivables
Trust has purchased from Conn Appliances Receivables Funding, LLC (the “Depositor”), and the Depositor purchased
from Conn Credit I, LP Contracts, Receivables and other Related Security relating to such Receivables pursuant to the terms of
and subject to the conditions set forth in the Second Receivables Purchase Agreement, dated as of October 16, 2020 between
the Depositor and the Receivables Trust;

 

WHEREAS, the Issuer
is entering into a Base Indenture and a supplement thereto, each dated as of October 16, 2020 (the Base Indenture, as amended,
supplemented or otherwise modified from time to time, the “Indenture”), between the Issuer and the Trustee,
and each of the other Transaction Documents to which it is a party, pursuant to which the Issuer plans to issue Notes in order
to finance its purchase of the Receivables Trust Certificate, which represents the ownership of the Receivables Trust, which owns
the Contracts, Receivables and other Related Security relating to such Receivables;

 

WHEREAS, the Servicer
is willing to service all Receivables and other Related Security acquired by the Receivables Trust, pursuant to the terms and
subject to the conditions set forth in this Agreement;

 

NOW, THEREFORE, in consideration
of the premises and the mutual covenants herein contained, the parties hereto agree as follows:

 

ARTICLE I

 

DEFINITIONS

 

Section 1.01          Defined
Terms. As used in this Agreement, the following terms have the following meanings:

 

“Back-Up
Servicer” means Systems & Services Technologies, Inc., together with its permitted successors and assigns,
in such capacity.

 

“Back-Up
Servicing Agreement” is defined in Section 2.01(b).

 

“Conn
Appliances” is defined in the preamble.

 

“Consolidated
Net Worth” means at any date, with respect to any Person, the consolidated stockholders’ equity of such Person
and its consolidated Subsidiaries, minus (to the extent reflected in determining such consolidated stockholders’ equity)
all intangible assets (in each case, as determined in

 

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accordance with GAAP, applied on a basis consistent with the most recent
audited financial statements of such Person before the Closing Date).

 

“Custodian”
is defined in Section 2.02(a)(ii).

 

“Depositor”
is defined in the first recital.

 

“Field
Collections” is defined in Section 2.02(c).

 

“Indenture”
is defined in the second recital.

 

“In-Store
Payments” is defined in Section 2.02(c).

 

“Issuer”
is defined in the preamble.

 

“Issuer
Indemnified Parties” is defined in Section 2.07.

 

“Mail
Payments” is defined in Section 2.02(c).

 

“Optional
Purchase” is defined in Section 6.04.

 

“Optional
Purchase Price” means an amount equal to the fair market value of the Receivables on the date on which the Optional
Purchase will occur, provided, however, that the Optional Purchase Price shall not be less than the accrued and unpaid interest,
if applicable, then due on the Series 2020-A Notes and the aggregate unpaid principal, if any, of all of the outstanding
Series 2020-A Notes plus an amount sufficient to pay (A) the Servicing Fee (including to any successor servicer) for
such Payment Date and all unpaid Servicing Fees with respect to prior Payment Dates and (B) the Trustee, Receivables Trust
Trustee, Back-Up Servicer and Issuer Fees and Expenses for such Payment Date and all unpaid Trustee, Receivables Trust Trustee,
Back-Up Servicer and Issuer Fees and Expenses with respect to prior Payment Dates, after giving effect to the Available Funds
for such Payment Date).

 

“Permitted
Modification” means any change to or modification (for the avoidance of doubt, any modification made solely as required
by applicable law shall be deemed to be a “Permitted Modification”) of the terms of a Receivable, including the timing
or amount of payments on the Receivable, so long as one of the following conditions has been satisfied:

 

		a.	any change or modification, individually
                                         and collectively with any other change or modification proposed to be made with respect
                                         to the Receivable, is ministerial in nature;

 

		b.	any change or modification is (i) granted
                                         to an Obligor in accordance with the Servicer’s Credit and Collection Policies
                                         and (ii) such change or modification (including when taken together with any other
                                         prior change or modification) does not result in a Significant Modification;

 

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		c.	any change or modification where (i) the
                                         Obligor is in payment default or (ii) in the judgment of the Servicer, in accordance
                                         with the Servicer’s Credit and Collection Policies, it is reasonably foreseeable
                                         that the Obligor will default (it being understood that the Servicer may proactively
                                         contact any Obligor whom the Servicer believes may be at higher risk of a payment default
                                         under the related Receivable); or

 

		d.	any extension, deferral, amendment,
                                         modification, alteration or adjustment, including a “payment holiday” or
                                         “skip-a-pay” extension granted to an Obligor that is made (I) in accordance
                                         with the Servicer’s Credit and Collection Policies and (II) with respect to
                                         which the Servicer has delivered an Opinion of Counsel to the Issuer, the Receivables
                                         Trust, the Trustee and the Receivables Trust Trustee to the effect that such extension,
                                         deferral, amendment, modification, alteration or adjustment, including a “payment
                                         holiday” or “skip-a-pay” extension will not result in or not cause
                                         the Receivables Trust (or any part thereof) to be classified, for U.S. federal income
                                         tax purposes, as an association (or a publicly traded partnership) taxable as a corporation
                                         or as other than a fixed investment trust described in Treasury Regulation section 301.7701-4(c) that
                                         is treated as a grantor trust under subpart E, Part I of subchapter J of the Code.

 

“Post
Office Box” means post office box 815867, in Dallas, Texas, 75234, and, upon notice to Trustee, each other post office
box opened and maintained by the Receivables Trust or the Servicer for the receipt of Collections from Obligors and governed by
a Post Office Box Agreement reflecting that such post office box is in the name of the Receivables Trust, as any such post office
boxes may be closed from time to time by the Servicer with prior written notice to the Trustee (provided that (i) there shall
at all times be at least one post office box open to receive Collections, (ii) the Servicer takes customary and prudent procedures
to notify Obligors to make payments to such post office box and (iii) the closing or opening of any post office box is consistent
with the servicing standard set forth in Section 2.02(b)(ii)).

 

“Post
Office Box Agreement” means an agreement by and among the Servicer and the United States Postal Service, which is a
standard post office box agreement, specifying the rights of the parties in the Post Office Box.

 

“Purchase
Amount” shall have the meaning assigned to such term in Section 2.03.

 

“Purchase
Event” has the meaning assigned to that term in Section 2.03.

 

“Purchase
Payment” has the meaning assigned to that term in Section 2.03.

 

“Refinanced
Receivable” has the meaning assigned to that term in Section 2.04.

 

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“Returned/Refinanced
Receivables” has the meaning assigned to that term in Section 2.04.

 

“Returned
Receivable” has the meaning assigned to that term in Section 2.04.

 

“Servicer”
is defined in Section 2.01(a).

 

“Servicer
Default” is defined in Section 2.06.

 

“Servicer
Indemnified Parties” is defined in Section 2.07.

 

“Servicing
Fee” is defined in Section 2.09.

 

“Significant
Modification” means any of the following changes (taking changes that occurred prior to acquisition of the Receivables
by the Receivables Trust into account) to a Receivable:

 

		a.	lowering the principal amount of a
                                         Receivable if the reduction lowers the yield of the Receivable by more than the greater
                                         of (x) 25 basis points or (y) 5 percent of the annual yield of the unmodified
                                         Receivable;

 

		b.	making any change in interest rate
                                         of a Receivable or other payments which results in the change in the annual yield of
                                         more than the greater of (x) 25 basis points or (y) 5 percent of the annual
                                         yield of the unmodified Receivable; and

 

		c.	deferral of any payment on the Receivable
                                         beyond the due date for that payment that would result in a deferral of payments for
                                         a period of more than the lesser of 5 years or 50% of the original term of the Receivable
                                         taking into account, in the aggregate, all deferments and deferrals.

 

“Specified
Servicer Default” means any Servicer Default of the type specified in paragraph (d) of Section 2.06.

 

“SST”
means Systems & Services Technologies, Inc.

 

“Successor
Servicer” is defined in Section 2.01(b)(i).

 

“Trustee”
is defined in the preamble.

 

Section 1.02          Definitions.
Capitalized terms used but not defined herein shall have the respective meanings given to such terms in the Indenture and, to
the extent applicable, the Series Supplement.

 

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Section 1.03          Other
Definitional Provisions.

 

(a)           All
terms defined in this Agreement shall have the defined meanings when used in any certificate or other document made or delivered
pursuant hereto unless otherwise defined therein.

 

(b)           Where
the character or amount of any asset or liability or item of income or expense is required to be determined, or any accounting
computation is required to be made, for the purpose of this Agreement, such determination or calculation shall be made in accordance
with GAAP. When used herein, the term “financial statement” shall include the notes and schedules thereto. All accounting
determinations and computations hereunder or under any other Transaction Documents shall be made without duplication.

 

(c)           [Reserved.]

 

(d)           The
words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement
shall refer to this Agreement as a whole and not to any particular provision of this Agreement; and Section, subsection, Schedule
and Exhibit references contained in this Agreement are references to Sections, subsections, Schedules and Exhibits in or
to this Agreement unless otherwise specified.

 

ARTICLE II

 

ADMINISTRATION
AND SERVICING

OF RECEIVABLES AND RELATED SECURITY

 

Section 2.01          Appointment
of Servicer.

 

(a)           The
servicing, administering and collection of the Receivables shall be conducted by such Person (the “Servicer”)
so designated from time to time in accordance with this Section 2.01. Until the Trustee gives notice to Conn Appliances
of the designation of a new Servicer pursuant to this Section 2.01, Conn Appliances is hereby designated as, and hereby
agrees to perform the duties and obligations of, the Servicer pursuant to the terms hereof. The Servicer may not delegate any
of its rights, duties or obligations hereunder, or designate a substitute Servicer, without the prior written consent of the Trustee
and the Receivables Trust; provided, however, that the Servicer shall be permitted to delegate its duties hereunder
to any of its Affiliates and may use subservicers, contractors or agents but will remain obligated and liable for the performance
of any such delegated duties as if it were performing such duties itself.

 

(b)            (i) After
the occurrence of a Servicer Default, the Trustee may, and upon the direction of the Required Noteholders or in the case of a
Specified Servicer Default shall, in accordance with the provisions set forth in clause (ii) below, appoint the Back-Up
Servicer pursuant to the Back-Up Servicing Agreement dated as of the date hereof (as amended, supplemented or otherwise modified
from time

 

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to time, the “Back-Up Servicing Agreement”), among the Back-Up Servicer and the various other parties
thereto or any other successor servicer (SST, or any other successor servicer so appointed in accordance with the terms of Section 2.01(b)(ii) below,
in such capacity, the “Successor Servicer”) to succeed to Conn Appliances as Servicer hereunder.

 

(ii)           If
(x) the Back-Up Servicer, on the date of its appointment as Successor Servicer or at any time following such appointment,
fails or is unable to perform the duties of the Servicer hereunder or has previously resigned or otherwise been terminated as
Back-Up Servicer, or (y) any other Person designated Successor Servicer in accordance with this Section 2.01 resigns,
fails or is unable to perform the duties of the Servicer hereunder following its appointment as Successor Servicer,
the Trustee may with the consent of the Required Noteholders, and upon the direction of the Required Noteholders shall, appoint
as Servicer any Person to succeed the then-current Servicer on the condition in each case that any such Person so appointed shall
agree to perform the duties and obligations of the Servicer pursuant to the terms hereof. Until such time as the Person so appointed
becomes obligated to begin acting as Servicer hereunder, the then current Servicer will continue to perform all servicing functions
under this Agreement and the other Servicer Transaction Documents. If the Trustee is not able to appoint a new Servicer to succeed
Conn Appliances, the Back-Up Servicer or any other Person then acting as Servicer, within a reasonable time following the date
upon which it is required to so appoint a successor to the Servicer pursuant to this Section 2.01 (but in any event
not later than 30 days following such date), the Trustee shall at the expense of the Issuer (as Certificateholder of the Receivables
Trust) petition a court of competent jurisdiction to appoint as the Servicer hereunder any established financial institution having,
a net worth of not less than $25,000,000 and whose regular business includes the servicing of receivables comparable to the Receivables
which are the subject of this Agreement. Following any appointment of a Successor Servicer pursuant to this Section 2.01,
the Trustee will provide notice thereof to the Issuer, the Receivables Trust, the Depository, the Depositor and the Noteholders.

 

(c)           The
Trustee shall not be responsible for any differential between the Servicing Fee and any compensation paid to a Successor Servicer
hereunder.

 

Section 2.02          Duties
of Servicer.

 

(a)           (i) The
Servicer shall take or cause to be taken all such action as may be reasonably necessary or advisable to collect each Receivable
from time to time, all in accordance with applicable Laws, with reasonable care and diligence, and in accordance with the Credit
and Collection Policies and otherwise in accordance with the Servicer Transaction Documents. Each of the Receivables Trust, Issuer
(as Certificateholder of the Receivables Trust), each Noteholder by its acceptance of the related Notes and each of the other
Secured Parties, hereby appoints as its

 

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agent the Servicer, from time to time designated pursuant to Section 2.01
hereof, to enforce its respective rights and interests in and under the Contracts, Receivables and Related Security, Collections
and proceeds with respect thereto. To the extent permitted by applicable law, each of the Receivables Trust and Conn Appliances
(to the extent not then acting as Servicer hereunder) hereby grants to any Servicer appointed hereunder all rights and powers
of the Receivables Trust and/or Conn Appliances, as the case may be, under the Contracts and with respect to the Related Security,
and hereby grants an irrevocable power of attorney to take in the Receivables Trust’s and/or Conn Appliances’ name
and on behalf of the Receivables Trust or Conn Appliances any and all steps necessary or desirable, in the reasonable determination
of the Servicer, to collect all amounts due under any and all Receivables, including, without limitation, to cancel any policy
of insurance, make demands for unearned premiums, commence enforcement proceedings, exercise other powers under a Contract, execute
and deliver instruments of satisfaction or cancellation, or full or partial discharge, with respect to Receivables, endorse the
Receivables Trust’s, the Issuer’s and/or Conn Appliances’ name on checks and other instruments representing
Collections and enforce such Receivables and the related Contracts. The Servicer shall, as soon as practicable following receipt
thereof, turn over to Conn Appliances any collections of any Indebtedness of any Person which is not on account of a Receivable.
The Servicer shall not voluntarily make the Receivables Trust, the Receivables Trust Trustee, the Issuer, the Trustee, any Noteholder
or any of their respective agents a party to any litigation without the prior written consent of such Person other than any litigation
adverse to such person. Without limiting the generality of the foregoing and subject to Section 2.04, the Servicer
is hereby authorized and empowered unless such power and authority is revoked in writing by the Trustee (as designee of the Receivables
Trust) pursuant to the terms of the Servicer Transaction Documents (A) to make deposits into the Collection Account as set
forth in this Agreement and the Indenture; provided, however, that with respect to any Successor Servicer, nothing contained in
any Servicer Transaction Document shall impose an obligation on such Successor Servicer to make any withdrawals or payments from
the Collection Account or any other Trust Account, (B) to instruct the Trustee in writing, substantially in the form of the
Monthly Servicer Report, to make deposits or withdrawals and payments from the Collection Account, the Payment Account and any
Series Account, in accordance with such instructions as set forth in the Indenture, (C) to instruct or notify the Trustee
in writing as set forth in this Agreement and, the Indenture, (D) to make all calculations, allocations and determinations
required of the Servicer under the Indenture and as required herein or to establish Series Accounts, (E) to execute
and deliver, on behalf of the Receivables Trust for the benefit of the Issuer and the Noteholders, 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 Receivables and the other Contracts and Related Security and, after any delinquency in payment relating to any Receivable,
to the extent permitted under and in compliance with applicable law and regulations, to commence enforcement proceedings with
respect thereto (including cancellation of the related insurance policy) and (F) in the case of the

 

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initial Servicer only,
to make any filings, reports, notices, applications, registrations with, and to seek any consents or authorizations from, the
Securities and Exchange Commission and any state securities authority on behalf of the Issuer as may be necessary or advisable
to comply with any federal or state securities or reporting requirements.

 

(ii)           Subject
to the terms and conditions of this Section 2.02(a)(ii), the Servicer shall maintain custody and possession of the
Receivable Files on behalf of, and as bailee for, the Receivables Trust (for the benefit of the Trustee, the Issuer, the Noteholders
and the other Secured Parties) (in such capacity, together with its successors and assigns, the “Custodian”).

 

(iii)          To
the extent the Servicer has any duty or obligation to title or re-title the Receivables, the Servicer shall ensure that title
is properly reflected in the name of the Receivables Trust Trustee on behalf of Conn’s Receivables 2020-A Trust, and shall
be recorded in the name of “Wilmington Trust, National Association, not in its individual capacity but solely in its capacity
as Receivables Trust Trustee of Conn’s Receivables 2020-A Trust”.

 

(A)          Custodian
agrees to maintain possession of the related Receivable Files at its offices where they are presently maintained, at the offices
of the related subcustodians or at such other offices of Custodian as shall from time to time be identified to Trustee by written
notice. Custodian shall segregate physical Receivable Files from other files maintained by Custodian and shall, to the extent
a Receivable File is stored in electronic format, maintain an authoritative electronic copy of each Receivable File on a data
tape or other electronic media in a fire-resistant safe or room. The Receivables Trust hereby appoints Conn Appliances, and Conn
Appliances hereby agrees to act, as initial Custodian hereunder. Custodian may, at the Servicer’s request, temporarily deliver
individual Receivable Files or any portion thereof to Servicer without notice as necessary to conduct collection and other servicing
activities in accordance with the Credit and Collection Policies.

 

(B)          As
custodian and bailee, Custodian shall hold the Receivable Files (by itself and/or through subcustodians) on behalf of the Receivables
Trust (for the benefit of the Trustee, the Issuer, the Noteholders and the other Secured Parties) and, by agreeing to act as Custodian,
is deemed to have received notice of the security interests of the Secured Parties in the Contracts and related Receivables. As
custodian and bailee, Custodian shall maintain accurate records pertaining to each Receivable to enable it to comply with the
terms and conditions of this Agreement, maintain a current inventory thereof and conduct periodic physical inspections of Receivable
Files held by it under this Agreement and attend to all other details in connection with maintaining custody of the Receivable
Files.

 

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(C)          In
performing its duties under this Section 2.02(a)(ii), Custodian agrees to act with reasonable care, using that degree
of skill and care that it exercises with respect to similar contracts owned and/or serviced by it. Custodian shall promptly report
to the Receivables Trust and the Trustee any material failure by it to hold the Receivable Files as herein provided and shall
promptly take appropriate action to remedy such failure. In acting as custodian of the Receivable Files, Custodian agrees further
not to assert, and shall cause each related subcustodian not to assert any beneficial ownership interests in the Receivables.
Custodian agrees to indemnify the Receivables Trust, Trustee, the Secured Parties and Issuer, and their respective officers, directors,
employees, partners and agents for any and all liabilities, obligations, losses, damages, payments, costs, or expenses of any
kind whatsoever which may be imposed on or incurred by any such Person arising from the negligence or willful misconduct of Custodian
in maintaining custody of the Receivable Files pursuant to this Section 2.02(a)(ii); provided, however,
that Custodian will not be liable to the extent that any such amount resulted from the negligence or willful misconduct of such
Person.

 

(D)          The
appointment of Custodian shall terminate upon acceptance of the appointment of a Successor Servicer in accordance with this Agreement.
The Successor Servicer, by acceptance of its appointment, shall become the successor Custodian. Promptly following the appointment
of a successor Custodian, and in any event within five days of such appointment, the then-existing Custodian shall (at such Custodian’s
sole cost and expense if a Servicer Default shall have occurred or if such Custodian shall have been removed for cause) deliver
all of the Receivable Files in its possession, and all records maintained by it with respect thereto, to such successor Custodian.

 

(b)           (i) Servicer
shall service and administer the Receivables on behalf of the Receivables Trust (for the benefit of the Issuer, the Trustee and
the other Secured Parties) and shall have full power and authority, acting alone and/or through subservicers, contractors or agents
as provided in Section 2.02(b)(iii), to do any and all things which it may deem reasonably necessary or desirable
in connection with such servicing and administration and which are consistent with this Agreement and the other Servicer Transaction
Documents. Consistent with the terms of this Agreement and the other Servicer Transaction Documents, Servicer (or any agent on
Servicer’s behalf) may waive, modify or vary any term of any Receivable or consent to the postponement of strict compliance
with any such term or in any manner, grant indulgence to any Obligor if, in Servicer’s sole discretion, such waiver, modification,
postponement or indulgence will maximize collections on such Receivable; provided, however, that Servicer (or any
agent on Servicer’s behalf) may not permit any modification with respect to any Receivable unless such modification is a
Permitted Modification, is in accordance with the Credit and Collection Policies and, in the case of any extension of the final
maturity date of a Receivable, such extension does not extend beyond the Legal Final Payment Date and the total amount of extensions
of such Receivables is not in excess of twenty-four months unless such extension is as a result of or required by applicable law
or judicial order. Without limiting the generality of the foregoing, Servicer in its own

 

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name or in the name of the Receivables
Trust is hereby authorized and empowered by the Receivables Trust when Servicer believes it appropriate in its reasonable judgment
to execute and deliver, on behalf of the Receivables Trust, 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 Receivable.

 

(ii)           Servicer
shall service and administer the Receivables by employing such procedures (including collection procedures) and degree of care,
in each case consistent with industry standards, as are customarily employed by Servicer in servicing and administering contracts
and notes owned or serviced by Servicer comparable to the Receivables.

 

(iii)          Servicer
may perform any of its duties pursuant to this Agreement, including those delegated to it pursuant to this Agreement, through
subservicers, contractors or agents appointed by Servicer. Such subservicers may include Affiliates of Servicer. Notwithstanding
any such delegation of a duty, Servicer shall remain obligated and liable for the performance of such duty as if Servicer were
performing such duty.

 

(iv)          Servicer
may take such actions as are necessary to discharge its duties as Servicer in accordance with this Agreement, including the power
to execute and deliver on behalf of Issuer such instruments and documents as may be customary, necessary or desirable in connection
with the performance of Servicer’s duties under this Agreement (including consents, waivers and discharges relating to the
Receivable).

 

(v)           Servicer
shall keep separate records covering the transactions contemplated by this Agreement including the identity and collection status
of each Receivable.

 

(c)           Collections.
(i) On or prior to the Closing Date, initial Servicer shall have established and shall maintain thereafter the following
system of collecting and processing Collections of Receivables.  Servicer shall direct the Obligors to make payments of Receivables
only (A) by check mailed to the Post Office Box (such payments, upon receipt in such Post Office Box being referred to herein
as “Mail Payments”), (B) by cash, credit card or check delivered in person or by phone at retail stores
or other business locations of initial Servicer (such payments, upon receipt by such stores, being referred to herein as “In-Store
Payments”), (C) by third party money wire transfer, ACH or other bill pay service that provides for the electronic
deposit of funds into an account of the Servicer on behalf of Obligors, (D) by utilizing the Servicer’s Webpay portal;
or (E) by cash, credit card or check delivered in person or by phone or by an agent of Conn Appliances at a service center
of Conn Appliances or, in the case of certain delinquent accounts, to employees of Conn Appliances operating out of a service
center of Conn Appliances or Servicer (such payments, upon receipt by the service center, being referred to herein as “Field
Collections”).  Notwithstanding anything to the contrary in this Section 2.02(c), any Successor Servicer
shall collect and process Collections

 

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of Receivables in any manner that is in accordance with the servicing standard set forth
herein.

 

(ii)           Servicer’s
right of access to the Post Office Box and the Collection Account shall be revocable at the option of Trustee as designee of the
Receivables Trust (acting in its own discretion or at the direction of the Required Noteholders) upon the occurrence of any Default,
Event of Default or Servicer Default. In addition, after the occurrence of any Default, Event of Default or Servicer Default,
Servicer agrees that it shall, upon the written request of Trustee, notify all Obligors under Receivables to make payment thereof
to (i) one or more bank accounts and/or post-office boxes designated by Trustee and specified in such notice or (ii) any
Successor Servicer appointed hereunder. The Trustee may, and shall at the request of the Required Noteholders, if any Default,
Event of Default or Servicer Default has occurred, require the Servicer to establish a lockbox account pursuant to a lockbox agreement
acceptable to the Trustee, and with notice to the Notice Person, to direct all Obligors under Receivables to make payments to
such lockbox account.

 

(iii)          Servicer
shall remove or cause all Mail Payments to be removed from the Post Office Box by the close of business on each Business Day.
Servicer shall process all such Mail Payments and all Field Collections on the date received by recording the amount of the payment
received from the Obligor and the applicable account number. Subject to Section 5.4(a) of the Indenture, no later
than the close of business on the second Business Day following the date on which Mail Payments are received in the Post Office
Box or Field Collections are received by Servicer, Servicer shall deposit or cause such Mail Payments and such Field Collections
to be deposited in the Collection Account. Subject to Section 5.4(a) of the Indenture, the Retailer and Servicer shall
cause all In-Store Payments to be (A) processed as soon as possible after such payments are received by the Retailer or Servicer
but in no event later than the Business Day after such receipt, and (B) deposited in the Collection Account no later than
two Business Days following the date of such receipt. Subject to Section 5.4(a) of the Indenture, Servicer shall deposit
all Recoveries into the Collection Account within two Business Days after the date of its receipt of such Recoveries.

 

(iv)          [Reserved.]

 

(v)          All
Collections received by Servicer in respect of Receivables will, pending remittance to the Collection Account as provided herein,
be held by Servicer in trust for the exclusive benefit of Trustee (on behalf of the Receivables Trust) and shall not, unless otherwise
permitted by the Servicer Transaction Documents, be commingled with any other funds or property of any Originator, Depositor or
Servicer except as otherwise permitted in accordance with Section 5.4 of the Indenture. Only

 

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Collections shall be deposited
in the Collection Account. The Servicer may cause to be withdrawn from the Collection Account such amounts that have been deposited
into the Collection Account in error not representing Collections or other proceeds of the Trust Estate and any amounts that are
deposited by Servicer that relate to checks rejected by the Obligor’s bank for insufficient funds.

 

(vi)          Each
of Depositor, the Receivables Trust, Issuer and Servicer hereby irrevocably waive any right to set off against, or otherwise
deduct from, any Collections.

 

(vii)         The
Receivables Trust, Issuer and initial Servicer hereby transfer, assign, pledge, set over and convey to Trustee all of their
right, title and interest in and to the Collection Account and the other Trust Accounts.

 

(viii)        All
payments or other amounts collected or received by Servicer in respect of a Receivable shall be applied to the Outstanding Receivables
Balance of such Receivable.

 

(d)           [Reserved.]

 

(e)           (i) (A) [Reserved.]

 

(B)          If
SST is then acting as Successor Servicer, it shall cause a firm of independent certified public accountants, which may also render
other services to SST or its affiliates, to deliver to the Issuer, the Receivables Trust, and the Trustee, within 120 days after
the end of each fiscal year thereafter, commencing in the year after SST becomes Successor Servicer, (i) an opinion by a
firm of nationally recognized independent certified public accountants on the financial position of SST at the end of the relevant
fiscal year and the results of operations and changes in financial position of SST for such year then ended on the basis of an
examination conducted in accordance with generally accepted auditing standards, and (ii) a report from such independent certified
public accountants to the effect that based on an examination of certain specified documents and records relating to the servicing
of SST’s loan portfolio conducted substantially in compliance with SSAE 16 (the “Applicable Accounting Standards”),
such firm is of the opinion that such servicing has been conducted in compliance with the Applicable Accounting Standards except
for (a) such exceptions as such firm shall believe to be immaterial and (b) such other exceptions as shall be set forth
in such statement.

 

(ii)            The
Servicer will deliver to the Trustee and each Notice Person on or before the one year anniversary of the Closing Date and on each
anniversary thereof, a certificate in substantially the form of Exhibit B of an authorized officer of the Servicer
stating that (a) a review of the activities of the Servicer during the preceding year and of its performance under this Agreement
was made under the supervision of the officer signing such certificate and (b) to the

 

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best of such officer’s knowledge,
based on such review, the Servicer has fully performed in all material respects all of its obligations under this Agreement and
each other applicable Servicer Transaction Document to which it is a party throughout such period, or, if there has been a default
in the performance of any such obligation, specifying such default known to such officer and the nature and status thereof.

 

(f)            Notwithstanding
anything to the contrary contained in this Article II, the Servicer, if not Conn Appliances or any Affiliate of Conn Appliances,
shall have no obligation to collect, enforce or take any other action described in this Article II with respect to any Indebtedness
that is not included in the Trust Estate other than to deliver to the Issuer the collections and documents with respect to any
such Indebtedness as described in Section 2.02(a) hereof.

 

Section 2.03          Purchase
of Ineligible Receivables.

 

(a)           If
the representation and warranty of the initial Servicer contained in Section 2.10(d) was not true and correct
with respect to any Contract and related Receivable as of the Cut-Off Date in any material respect that materially and adversely
impacts such Contract and the related Receivable (any such Receivable, an “Ineligible Receivable”), the initial
Servicer shall, at the request of the Trustee, purchase such Ineligible Receivable within ten (10) Business Days after demand
thereof (a “Purchase Event”) from the Receivables Trust for an amount (the “Purchase Amount”)
equal to the then Outstanding Receivables Balance of such Ineligible Receivable at the time of such purchase (any such payment,
a “Purchase Payment”).

 

(b)           The
initial Servicer and the Receivables Trust agree that after payment of the Purchase Amount for an Ineligible Receivable as provided
in clause (a) above, such Ineligible Receivable shall no longer constitute a Receivable for purposes of the Transaction
Documents.

 

(c)           Except
as expressly set forth herein, the initial Servicer shall not have any right under this Agreement, by implication or otherwise,
to purchase from the Receivables Trust any Receivables.

 

(d)           The
obligation of the initial Servicer to purchase an Ineligible Receivable pursuant to this Section 2.03 will survive
the termination of this Agreement or the earlier resignation or removal of the initial Servicer.

 

Section 2.04          Purchase
of Returned and Refinanced Receivables

 

(a)           Notwithstanding
anything to the contrary herein, the initial Servicer shall purchase any Receivable from the Receivables Trust to the extent that
(i) the Merchandise related to such Receivable is returned by an Obligor (a “Returned Receivable”), or
(ii) the Receivable is fully refinanced in connection with the purchase after the Cut-Off Date by the related Obligor of
additional Merchandise

 

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using the initial Servicer’s in-house credit (a “Refinanced Receivable,” and,
together with Returned Receivables, the “Returned/Refinanced Receivables”).

 

(b)           The
initial Servicer shall purchase any Returned/Refinanced Receivables pursuant to clause (a) for an amount equal to
the Purchase Amount for the applicable Returned/Refinanced Receivable.

 

(c)           The
initial Servicer and the Receivables Trust agree that after payment of the Purchase Amount for a Returned/Refinanced Receivables
as provided in clause (a) above, such Returned/Refinanced Receivable shall no longer constitute a Receivable for purposes
of the Transaction Documents.

 

(d)           No
more than ten (10) Business Days prior to a Receivable becoming “worthless” under the Code, the initial Servicer
will, in order to facilitate the recovery of state sales tax refunds, purchase such Receivable from the Receivables Trust in exchange
for an obligation on the part of the initial Servicer to remit any recoveries and sales tax refunds actually collected on such
Receivable to the Collection Account.

 

Section 2.05          Rights
After Designation of New Servicer. (a) At any time following the designation of a Successor Servicer (other than Conn
Appliances or an Affiliate thereof) pursuant to Section 2.01 hereof:

 

(i)           The
Trustee may, at its option, or shall, at the direction of the Required Noteholders, direct that payment of all amounts payable
under any Receivable be made directly to the Trustee or its designee.

 

(ii)           The
Receivables Trust shall, at the Trustee’s request, (A) assemble all of the records relating to the Receivables and
other Related Security, and shall make the same available to the Trustee or its designee at a place selected by the Trustee or
its designee, and (B) segregate all cash, checks and other instruments received by it from time to time constituting Collections
of Receivables in a manner acceptable to the Trustee and shall, promptly upon receipt, remit all such cash, checks and instruments,
duly endorsed or with duly executed instruments of transfer, to the Trustee or its designee.

 

(iii)          The
Receivables Trust hereby authorizes the Trustee and the Issuer (as Certificateholder of the Receivables Trust) to take any and
all steps in the Receivables Trust’s name and on behalf of the Receivables Trust necessary or desirable, in the reasonable
determination of the Trustee, to collect all amounts due under any and all Receivables, including, without limitation, endorsing
the Receivables Trust’s name on checks and other instruments representing Collections and enforcing such Receivables and
the related Contracts.

 

(iv)          Upon
delivery of a Notice of Appointment (as defined in the Back-Up Servicing Agreement) to the Back-Up Servicer, Conn Appliances

 

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shall
designate one or more employees acceptable to the Successor Servicer to assist the Successor Servicer with respect to In-Store
Payments so long as Conn Appliances continues to accept, or the Successor Servicer permits, In-Store Payments to be made
as described herein; provided, however, such employee of Conn Appliances shall in no event be deemed an employee, agent, custodian
or nominee of the Successor Servicer and the Successor Servicer shall have no responsibility or liability for any negligence or
willful misconduct of such employee or for such employee’s failure to assist the Successor Servicer (including without limitation
any acts or omissions unrelated to the transactions contemplated hereby). Upon the request of the Successor Servicer to the Trustee,
100% of the Noteholders may direct the Successor Servicer to designate an employee of Successor Servicer to be assigned to any
or all Conn Appliances stores to oversee the collection of In-Store Payments at such stores. Each such employee shall be placed
at such store at the expense of the Issuer (as Certificateholder of the Receivables Trust) at the monthly rate reflected in the
SST Fee Schedule.

 

(b)          The
Successor Servicer may accept and reasonably rely on all accounting and servicing records and other documentation provided to
the Successor Servicer by or at the direction of the predecessor Servicer, including documents prepared or maintained by any Originator,
or previous servicer, or any party providing services related to the Contracts, the Receivables and other Related Security (collectively,
 “third party”). The predecessor Servicer agrees to indemnify and hold harmless the related Successor Servicer, its
respective officers, employees and agents against any and all claims, losses, penalties, fines, forfeitures, legal fees and related
costs, judgments, and any other costs, fees and expenses that the Successor Servicer may sustain in any way related to the negligence
or willful misconduct of any third party hired by or at the direction of such predecessor Servicer, any Affiliate of such predecessor
Servicer or any of their respective agents with respect to the Contracts, the Receivables and other Related Security. The Successor
Servicer shall have no duty, responsibility, obligation or liability (collectively, “liability”) for the acts or omissions
of any such third party. If any error, inaccuracy or omission (collectively, “error”) exists in any information provided
to the Successor Servicer and such errors cause or materially contribute to the Successor Servicer making or continuing any error
(collectively, “continuing errors”), the Successor Servicer shall have no liability for such continuing errors; provided,
however, that this provision shall not protect the Successor Servicer against any liability which would otherwise be imposed by
reason of willful misconduct or negligence in discovering or correcting any error or in the performance of its duties contemplated
herein.

 

In the event the Successor
Servicer becomes aware of errors and/or continuing errors that, in the opinion of the Successor Servicer, impair its ability to
perform its obligations hereunder, the Successor Servicer shall promptly notify the other parties hereto of such errors and/or
continuing errors. The Successor Servicer may undertake to reconstruct any data or records appropriate to correct such errors
and/or continuing errors and to prevent future continuing errors. The Successor Servicer shall be entitled to recover its costs
thereby expended from the predecessor Servicer.

 

Neither the Successor
Servicer nor any of the directors or officers or employees or agents of the Successor Servicer shall be under any liability to
the other parties hereto except as provided in this Agreement for any action taken or for refraining from the taking of any action
in good faith

 

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pursuant to this Agreement; provided, however, that this provision shall not protect the Successor Servicer
or any such Person against any liability that would otherwise be imposed by reason of willful misconduct, bad faith or negligence
in the performance of duties, by reason of reckless disregard of obligations and duties under this Agreement or any violation
of law by the Successor Servicer or such Person, as the case may be. The Successor Servicer and any director, officer, employee
or agent of the Successor Servicer may rely in good faith on the advice of counsel or on any document of any kind prima facie
properly executed and submitted by any Person respecting any matters arising under this Agreement.

 

The Successor Servicer
will not be responsible for delays attributable to the predecessor Servicer’s failure to deliver information, defects in
the information supplied by such predecessor Servicer or other circumstances beyond the reasonable control of the Successor Servicer.
In addition, the Successor Servicer (and in the case of clauses (A) and (C) below, if a Servicing Officer of the Successor
Servicer has actual knowledge of errors, which in the reasonable opinion of the Successor Servicer impair its ability to perform
its services hereunder, after reasonable inquiry), shall have no responsibility and shall not be in default hereunder or incur
any liability for any act or omission, failure, error, malfunction or any delay in carrying out any of its duties under this Agreement
for: (A) any such failure or delay that results from the Successor Servicer acting in accordance with information prepared
or supplied by a Person other than any Person hired by the Successor Servicer, the Successor Servicer or the failure of any such
other Person (including without limitation the predecessor Servicer, but excluding any Person hired by the Successor Servicer)
to prepare or provide such information or other circumstances beyond the control of the Successor Servicer; (B) any act or
failure to act by any third party (other than those hired by the Successor Servicer), including without limitation the predecessor
Servicer, the Receivables Trust, the Issuer and the Trustee; (C) any inaccuracy or omission in a notice or communication
received by the Successor Servicer from any third parties (other than those hired by the Successor Servicer); (D) the invalidity
or unenforceability of any Contracts, the Receivables and Related Security under applicable law; (E) the breach or inaccuracy
of any representation or warranty made with respect to the Contracts, the Receivables and Related Security; or (F) the acts
or omissions of any predecessor or successor Servicer.

 

The Servicer, the
Issuer and the Receivables Trust agree to reasonably cooperate with the Successor Servicer in effecting the assumption of its
responsibilities and rights under this Agreement. The Servicer shall provide to the Successor Servicer all necessary servicing
files and records relating to the Contracts, the Receivables and Related Security (as deemed necessary by the Successor Servicer
at such time on a reasonable basis) and the initial Servicer shall use all commercially reasonable efforts to provide to the Successor
Servicer access to and transfer of records and use by the Successor Servicer of all licenses, servicing system, software, hardware,
equipment, telephony, personnel, employees, facilities or other accommodations necessary or desirable to collect the Contracts,
in all cases, subject to the terms of the Intercreditor Agreement, if applicable. The departing Servicer (if SST, only upon termination
for cause) shall be obligated to pay the costs associated with the transfer of servicing files and records to the Successor Servicer.
The Receivables Trust, the Issuer and the Trustee, and the Successor Servicer shall take such action, consistent with this Agreement,
as shall be necessary to effectuate any such succession.

 

Indemnification by
the Servicer under this Article shall be paid solely by the Servicer and not from the Trust Estate, and shall include, without
limitation, reasonable fees and expenses of

 

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counsel and expenses of litigation. If the indemnifying party has made any indemnity
payments pursuant to this Section 2.05(b) and the recipient thereafter collects any of such amounts from others,
the recipient shall promptly repay such amounts collected to the indemnifying party, without interest.

 

Section 2.06           Servicer
Default. The occurrence of any one or more of the following events shall constitute a Servicer default (each, a “Servicer
Default”):

 

(a)           failure
by the Servicer (or, for so long as Conn Appliances is the Servicer, Conn Appliances) to make any payment, transfer or deposit
under this Agreement or any other Servicer Transaction Document or to provide the Monthly Servicer Report to the Trustee to make
such payment, transfer, or deposit or any withdrawal on or before the date occurring five (5) days after the date such payment,
transfer or deposit is required to be made or given, as the case may be, under the terms of this Agreement or any other Servicer
Transaction Document (or in the case of a payment, transfer or deposit to be made or given with respect to any Interest Period,
by the related Payment Date);

 

(b)           failure
on the part of the Servicer (or, for so long as the Servicer is Conn Appliances, Conn Appliances) to duly observe or perform any
other covenants or agreements of the Servicer set forth in this Agreement or any other Servicer Transaction Document, which failure
continues unremedied for a period of thirty (30) days after the earlier of discovery by the Servicer or the date on which written
notice of such failure, requiring the same to be remedied, shall have been given to the Servicer by the Trustee, the Receivables
Trust, the Receivables Trust Trustee or the Issuer; or the Servicer shall assign its duties under this Agreement, except as permitted
by Article II;

 

(c)           any
representation, warranty or certification made by the Servicer in this Agreement or any other Servicer Transaction Document or
in any certificate delivered pursuant to this Agreement or any other Servicer Transaction Document shall prove to have been incorrect
when made and which continues unremedied for a period of thirty (30) days after the date on which the Servicer has actual knowledge
thereof or on which written notice thereof, requiring the same to be remedied, shall have been given to the Servicer by the Trustee,
the Issuer, the Receivables Trust or the Receivables Trust Trustee;

 

(d)           the
Servicer shall become the subject of any Event of Bankruptcy or shall voluntarily suspend payment of its obligations;

 

(e)           for
so long as Conn Appliances is the Servicer, the failure of Consolidated Parent to maintain Consolidated Net Worth of at least
the sum of $250,000,000; or

 

(f)            at
any time that Conn Appliances is Servicer, a final judgment or judgments for the payment of money in excess of $7,500,000 in the
aggregate shall have been rendered against the Issuer or Conn Appliances and the same shall have

 

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remained unsatisfied and in effect,
without stay of execution, for a period of thirty (30) consecutive days after the period for appellate review shall have elapsed.

 

Section 2.07          Servicer
Indemnification of Indemnified Parties. (A) The Servicer (if other than SST as successor Servicer) will indemnify, defend
and hold harmless the Trustee, the Receivables Trust Trustee, the Issuer, the Receivables Trust, the Back-Up Servicer, the successor
Servicer and the Noteholders, and (B) SST as successor Servicer will indemnify and hold harmless the Trustee, on behalf of
the Noteholders, the Receivables Trust Trustee, on behalf of the holder of the Receivables Trust Certificate, the Issuer and the
Receivables Trust (in each case, together with their respective successors and permitted assigns) and each of their respective
agents, officers, members and employees (each, a “Servicer Indemnified Party” and, collectively, the “Servicer
Indemnified Parties”), from and against any claim, action, suit, loss, liability, expense, damage or injury suffered
or sustained by reason of such Servicer’s negligence in the performance of (or failure to perform) its duties or obligations
under the Servicer Transaction Documents or Servicer’s willful misconduct or breach by the Servicer of any of its representations
or warranties contained in this Agreement, including any judgment, award, settlement, reasonable attorneys’ fees and other
costs or expenses reasonably incurred in connection with the defense of any actual action, proceeding or claim and fees and expenses
incurred in connection with the enforcement of indemnification rights; provided, however, that the Servicer shall
not indemnify any Servicer Indemnified Party for any such acts or omissions attributable to the negligence or willful misconduct
of such Servicer Indemnified Party. Any indemnification pursuant to this Section shall be had only from the assets of the
Servicer and shall not be payable from Collections except to the extent such Collections are released to the Servicer in accordance
with Section 5.15 of the Indenture in respect of the Servicing Fee. The provisions of such indemnity shall run directly
to and be enforceable by such Servicer Indemnified Parties.

 

The Issuer (as Certificateholder
of the Receivables Trust) will indemnify, defend and hold harmless the Servicer and its officers, directors, employees, representatives
and agents (each, an “Issuer Indemnified Party” and, collectively, the “Issuer Indemnified Parties”),
from and against and reimburse the Servicer for any and all claims, expenses, obligations, liabilities, losses, damages, injuries
(to person, property, or natural resources), penalties, stamp or other similar taxes, actions, suits, judgments, reasonable costs
and expenses (including reasonable attorney’s and agent’s fees and expenses) of whatever kind or nature regardless
of their merit, demanded, asserted or claimed against the Servicer directly or indirectly relating to, or arising from, claims
against the Servicer by reason of its participation in the transactions contemplated hereby, including without limitation all
reasonable costs required to be associated with claims for damages to persons or property, and reasonable attorneys’ and
consultants’ fees and expenses and court costs and fees and expenses incurred in connection with the enforcement of indemnification
rights; provided, however, that the Issuer shall not indemnify any Issuer Indemnified Party for any such acts or omissions attributable
directly or indirectly to the negligence or willful misconduct of such Issuer Indemnified Party or, other than with respect to
SST as successor Servicer, for any breach by the Servicer of any of the Servicer Transaction Documents. The provisions of this
section shall survive the termination of this Agreement or the earlier resignation or removal of the Servicer.

 

Section 2.08           Grant
of License. For the purpose of enabling the Back-Up Servicer or any other Successor Servicer to perform the functions of servicing
and collecting the Receivables upon a Servicer Default, Conn Appliances hereby (i) assigns, to the extent not

 

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prohibited
by law or the terms of any agreement to which Conn Appliances is a party or by which it is deemed bound (by the terms thereof
or by acceptance of a license), to the Trustee for the benefit of the Secured Parties and shall be deemed to assign to the Trustee
for the benefit of the Secured Parties, the Back-Up Servicer or any other Successor Servicer all rights owned or hereinafter acquired
by Conn Appliances (by license, sublicense, lease, easement or otherwise) in and to any equipment used for servicing (or reasonable
access thereto) together with a copy of any software used in connection with the performance of its duties as Servicer and relating
to the Servicing and collecting of Receivables, (ii) agrees to use all reasonable efforts to assist the Trustee for the benefit
of the Secured Parties, the Back-Up Servicer or any other Successor Servicer to arrange licensing agreements with all software
vendors and other applicable persons in a manner and to the extent reasonably appropriate to effectuate the servicing of the Receivables,
(iii) agrees to deliver to the Trustee, the Back-Up Servicer or any Successor Servicer executed copies of any landlord waivers
that may be necessary to grant to the Trustee, the Back–Up Servicer or any other Successor Servicer access to any leased
premises of Conn Appliances for which the Trustee, the Back-Up Servicer or any other Successor Servicer may require access to
perform the collection and administrative functions to be performed by the Trustee, the Back-Up Servicer or any Successor Servicer
under the Servicer Transaction Documents and (iv) agrees that it will terminate its activities as Servicer hereunder in a
manner which the Trustee the Back-Up Servicer or any Successor Servicer reasonably believes will facilitate the transition of
the performance of such activities to the Back-Up Servicer or any other designated Successor Servicer, as applicable, and shall
use commercially reasonable efforts to assist the Trustee, the Back-Up Servicer or any Successor Servicer in such transition.
The terms of this Section 2.08 shall all be subject to the limitations on the Servicer’s rights as set forth in the
Intercreditor Agreement.

 

Section 2.09          Servicing
Compensation. As compensation for its servicing and custodial activities hereunder and reimbursement for its expenses (in
the case of Conn Appliances only) as set forth in the immediately following paragraph, the Servicer shall be entitled to receive
a servicing fee (the “Servicing Fee”) as set forth in the Transaction Documents (including, with regards to
SST as Successor Servicer, as set forth on the SST Fee Schedule) prior to the Indenture Termination Date as described in Section 12.1
of the Indenture. The Servicing Fee shall be payable, with respect to each Series, at the times and subject to the limitations
set forth in the Indenture; provided, that, amounts withdrawn from the Reserve Account may not be used to pay the Servicing Fee
for so long as Conn Appliances is the Servicer.

 

The initial Servicer’s
expenses include expenses incurred by the initial Servicer in connection with its activities hereunder; provided, that
the initial Servicer in its capacity as such shall not be liable for any liabilities, costs or expenses of the Receivables Trust,
the Issuer, the Noteholders or the Note Owners arising under any tax law, including without limitation any federal, state or local
income or franchise taxes or any other tax imposed on or measured by income or gross receipts (or any interest or penalties with
respect thereto or arising from a failure to comply therewith) except to the extent that such liabilities, taxes or expenses arose
as a result of the breach by the initial Servicer of its obligations under Section 6.02 hereof. In such case, the
initial Servicer shall be required to pay such expenses for its own account and shall not be entitled to any payment therefor
other than the Servicing Fee. The payment of the expenses of SST, as Successor Servicer, which with respect to SST are set forth
in the SST Fee Schedule attached to the Back-Up Servicing Agreement, shall be distributed on each Payment Date to the extent of
funds available therefor in accordance with Section 5.15 of the Indenture and the SST Fee Schedule. The provisions of this

 

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Section 2.09
shall survive the termination of this Agreement and the earlier resignation or removal of the Servicer.

 

Section 2.10         Representations
and Warranties of the Servicer. The Servicer hereby represents, warrants and covenants to and for the benefit of the Receivables
Trust, the Issuer, the Trustee, the Back-Up Servicer, the Successor Servicer and the Noteholders as of the date of this Agreement
and, in the case of the initial Servicer, as of the Closing Date and, in the case of any Successor Servicer, as of the date of
its appointment as Servicer:

 

(a)          Organization
and Good Standing, etc. Servicer has been duly organized and is validly existing and in good standing under the laws of
its state of organization, with power and authority to own its properties and to conduct its business as such properties are presently
owned and such business are presently conducted. Servicer is duly licensed or qualified to do business as a foreign entity in good
standing in the jurisdiction where its principal place of business and chief executive office are located and in each other jurisdiction
in which the failure to be so licensed or qualified would be reasonably likely to have a Material Adverse Effect.

 

(b)          Power
and Authority; Due Authorization. Servicer has (i) all necessary power, authority and legal right to execute, deliver
and perform, as applicable, its obligations under this Agreement and each of the other Servicer Transaction Documents, and (ii) duly
authorized, by all necessary action, the execution, delivery and performance, as applicable, of this Agreement and the other Servicer
Transaction Documents. Servicer has and in the case of the initial Servicer only, had at all relevant times, and now has, all necessary
power, authority and legal right to perform its duties as Servicer.

 

(c)          No
Violation. The consummation of the transactions contemplated by this Agreement and the other Servicer Transaction Documents
and the fulfillment of the terms hereof will not (i) conflict with, result in any breach of any of the terms and provisions
of, or constitute (with or without notice or lapse of time or both) a default under, (A) the organizational documents of Servicer,
or (B) (in the case of SST as successor Servicer, without investigation or inquiry) any material indenture, loan agreement,
pooling and servicing agreement, receivables purchase and sale agreement, mortgage, deed of trust, or other agreement or instrument
to which Servicer is a party or by which any of them or any of their respective properties is bound, (ii) in the case of the
initial Servicer only, result in or require the creation or imposition of any Adverse Claim upon any of its properties pursuant
to the terms of any such indenture, loan agreement, pooling and servicing agreement, receivables purchase and sale agreement, mortgage,
deed of trust, or other agreement or instrument, other than pursuant to the terms of the Servicer Transaction Documents, or (iii) violate
any law or any order, rule, or regulation applicable to Servicer or of any court or of any federal, state or foreign regulatory
body, administrative agency, or other governmental instrumentality having jurisdiction over Servicer or any of its properties.

 

    	 	20	 

     

    

 

(d)          Eligible
Receivable. Solely in the case of the initial Servicer, all Receivables in the Trust Estate are Eligible Receivables as of
the Cut-Off Date.

 

(e)          Validity
and Binding Nature. This Agreement is, and the other Servicer Transaction Documents when duly executed and delivered, as applicable,
by Servicer and the other parties thereto will be, the legal, valid and binding obligation of Servicer enforceable in accordance
with their respective terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium
or similar law affecting creditors’ rights generally and by general principles of equity.

 

(f)           Government
Approvals. No authorization or approval or other action by, and no notice to or filing with, any governmental authority or
regulatory body required for the due execution, delivery or performance by Servicer of any Servicer Transaction Document to which
it is a party remains unobtained or unfiled, except in the case of the initial Servicer for the filing of the financing statements
referred to in Section 7.02(a).

 

(g)          Margin
Regulations. Initial Servicer is not engaged in the business of extending credit for the purpose of purchasing or carrying
margin stock, and no proceeds of any Class A Notes, directly or indirectly, will be used for a purpose that violates, or would
be inconsistent with, Regulations T, U and X promulgated by the Federal Reserve Board from time to time.

 

(h)          Compliance
with Applicable Laws. Servicer is in compliance with the requirements of all applicable laws, rules, regulations, and orders
of all governmental authorities, a breach of any of which, individually or in the aggregate, would be reasonably likely to have
a Material Adverse Effect.

 

(i)           No
Proceedings. Except as described in Schedule 2.10(i), provided that such schedule shall only apply to the initial Servicer,

 

(i)             there
is no order, judgment, decree, injunction, stipulation or consent order of or with any court or other government authority to which
Servicer is subject, and there is no action, suit, arbitration, regulatory proceeding or investigation pending, or, to the actual
knowledge of Servicer, threatened, before or by any court, regulatory body, administrative agency or other tribunal or governmental
instrumentality, against Servicer that, individually or in the aggregate, is reasonably likely to have a Material Adverse Effect;
and

 

(ii)            there
is no action, suit, proceeding, arbitration, regulatory or governmental investigation, pending or, to the actual knowledge of Servicer,
threatened, before or by any court, regulatory body, administrative agency, or other tribunal or governmental instrumentality (A) asserting
the invalidity of this Agreement or any other Servicer Transaction Document, or (B) seeking to prevent the consummation of
any of the other transactions

 

    	 	21	 

     

    

 

contemplated by this Agreement or any other Servicer Transaction Document.

 

(j)           Accuracy
of Information. All information heretofore furnished by, or on behalf of, Servicer to the Receivables Trust, the Issuer, the
Trustee or any Noteholder in connection with any Servicer Transaction Document, or any transaction contemplated thereby, is true
and accurate in every material respect.

 

If SST is acting as Successor
Servicer, with respect to the representations set forth in Sections 2.10(a), 2.10(i) and 2.10(j), when determining whether
any Material Adverse Effect has occurred with respect to any matter described in such sections, clauses (ii) and (iii) of
the definition of “Material Adverse Effect” shall apply without reference to the effect of such matter on Depositor
or on any Servicer (other than SST as Successor Servicer).

 

Section 2.11         Reports
and Records for the Trustee. In addition to each of the reports required to be prepared and delivered by the Servicer pursuant
to Section 2.02(e) hereof, the Servicer shall prepare and deliver in accordance with this Section 2.11
each of the following reports and notices:

 

(a)          Periodic
Reports. The Servicer shall prepare and forward to the Receivables Trust, the Issuer, the Back-Up Servicer and the Trustee
(i) on or prior to the Series Transfer Date with respect to each calendar month, a Monthly Servicer Report in substantially
the form set forth on Exhibit A-1 attached hereto as of the last day of the immediately preceding calendar month, and
(ii) as soon as reasonably practicable, from time to time, such other information in its possession as the Receivables Trust,
the Trustee or the Back-Up Servicer may reasonably request.

 

(b)          Monthly
Noteholders’ Statement. Unless otherwise stated in the Series Supplement, on each Determination Date the Servicer
shall forward to the Receivables Trust, the Trustee and the Back-Up Servicer a Monthly Noteholders’ Statement substantially
in the form set forth on Exhibit A-2 attached hereto prepared by the Servicer.

 

(c)          Issuer
Reports. The Servicer shall prepare and deliver the reports applicable to it and comply with all the provisions applicable
to it under Section 4.3 of the Indenture.

 

(d)          Series Reports.
The initial Servicer shall prepare and deliver any reports required to be prepared and delivered by the Servicer by the terms of
any agreements of the Issuer or the Servicer relating to the issuance or purchase of any of the Notes.

 

Section 2.12         Reports
to the Commission. The Issuer, the Receivables Trust and/or Conn Appliances, if the Issuer, the Receivables Trust and/or Conn
Appliances or any Affiliate of either of them is not acting as Servicer, shall, at the expense of the Issuer or Conn Appliances,
as applicable, cooperate in any reasonable request of the Trustee in connection with

 

    	 	22	 

     

    

 

any filings required to be filed by the Trustee
under the provisions of the Securities Exchange Act of 1934 or pursuant to Section 4.3 of the Indenture.

 

Section 2.13         Affirmative
Covenants of the Servicer. At all times from the date hereof to the date on which the outstanding principal balance of all
Notes shall be equal to zero, unless the Required Noteholders shall otherwise consent in writing:

 

(a)          Credit
and Collection Policies. The Servicer will comply in all material respects with the Credit and Collection Policies in regard
to each Receivable and the related Contract.

 

(b)          Collections
Received. Subject to Section 5.4(a) of the Indenture, the Servicer shall set aside and deposit as soon as
reasonably practicable (but in any event no later than two (2) Business Days following its receipt thereof) into the Collection
Account all Collections received from time to time by the Servicer.

 

(c)          Notice
of Defaults, Events of Default, Potential Pay Out Event or Servicer Defaults. Within five (5) Business Days after the
Servicer obtains actual knowledge or receives written notice of the occurrence of each Default, Event of Default or Servicer Default,
the Servicer will furnish to the Trustee and each Rating Agency a statement of a Responsible Officer of the Servicer, setting forth
to the extent actually known by the Servicer, details of such Default, Event of Default or Servicer Default, and the action which
the Servicer, the Issuer or the Depositor proposes to take with respect thereto.

 

(d)          Conduct
of Business. The Servicer will do all things necessary to remain duly incorporated, validly existing and in good standing in
its jurisdiction of organization and maintain all requisite authority to conduct its business in each jurisdiction in which its
business is conducted to the extent that the failure to maintain such would have a Material Adverse Effect.

 

(e)          Compliance
with Laws. The Servicer will comply in all respects with all laws with respect to the Receivables to the extent that any non-compliance
would have a Material Adverse Effect.

 

(f)           Further
Information. The Servicer shall furnish or cause to be furnished to the Receivables Trust, the Trustee such other information
relating to the Receivables and readily available public information regarding the financial condition of the Servicer, as soon
as reasonably practicable, and in such form and detail, as the Trustee or the Receivables Trust may reasonably request.

 

(g)          Furnishing
of Information and Inspection of Records. The Servicer will furnish to the Receivables Trust, the Trustee and the Issuer from
time to time such information in its possession with respect to the Receivables as such Person may reasonably request, including,
without limitation, listings identifying the Outstanding Receivables Balance for each Receivable, together with an aging of Receivables.
The Servicer will, at any time and from time to time during regular business hours and, upon reasonable notice, permit the Trustee,
the Issuer, or its

 

    	 	23	 

     

    

 

agents or representatives, (i) to examine and make copies of and abstracts from all Records relating to
the Receivables and (ii) to visit the offices and properties of the Servicer for the purpose of examining such Records, and
to discuss matters relating to Receivables or the Servicer’s performance hereunder and under the other Servicer Transaction
Documents with any Servicing Officer of the Servicer having knowledge of such matters. Upon a Default, Event of Default or Servicer
Default, the Trustee and the Issuer may have, without notice, reasonable access to all records and the offices and properties of
the Servicer.

 

(h)          Risk
Retention. The Servicer, in its capacity as “sponsor” within the meaning of 17 C.F.R. Part 246 (“Regulation
RR”), shall cause the Depositor to retain the “eligible horizontal residual interest” (as defined by Regulation
RR (the “Retained Interest”)) on the Closing Date and the Servicer will cause the Depositor and each Affiliate
of the Servicer not to sell, transfer, finance or hedge the Retained Interest in violation of Regulation RR.  This Section 2.13(h) shall
survive the termination of this Agreement, and any resignation by, or termination of, the Servicer.

 

If SST is acting as
Successor Servicer, with respect to the covenants set forth in Sections 2.13(d), 2.13(e) and 2.14(c),
when determining whether any Material Adverse Effect has occurred with respect to any matter described in such sections, clauses
(ii) and (iii) of the definition of “Material Adverse Effect” shall apply without reference to the effect
of such matter on Depositor or on any Servicer (other than SST as Successor Servicer).

 

Section 2.14         Negative
Covenants of the Servicer. At all times from the date hereof to the date on which the outstanding principal balance of all
Notes shall be equal to zero, unless the Required Noteholders shall otherwise consent in writing:

 

(a)          Modifications
of Receivables or Contracts. The Servicer shall not extend, amend, forgive, discharge, compromise, waive, cancel or otherwise
modify the terms of any Receivable or amend, modify or waive any term or condition of any Contract related thereto; except in accordance
with Section 2.02(b).

 

(b)          Merger
or Consolidation of, or Assumption of the Obligations of, the Servicer. (I) The Servicer shall not consolidate with or
merge into any other corporation or convey or transfer its properties and assets substantially as an entirety to any Person, unless:

 

(i)             the
entity formed by such consolidation or into which the Servicer is merged or the Person which acquires by conveyance or transfer
the properties and assets of the Servicer substantially as an entirety shall be an entity organized and existing under the laws
of the United States of America or any State or the District of Columbia and, if the Servicer is not the surviving entity, such
corporation shall expressly assume, by an agreement supplemental hereto executed and delivered to the Trustee, and with the satisfaction
of the Rating Agency Condition, the performance of

 

    	 	24	 

     

    

 

every covenant and obligation of the Servicer under the Servicer Transaction
Documents; and

 

(ii)            the
Servicer has delivered to the Trustee, each Notice Person and the Receivables Trust (if requested by such Person) an Opinion of
Counsel stating that such consolidation, merger, conveyance or transfer comply with this paragraph (b) and that all conditions
precedent herein provided for relating to such transaction have been complied with (and if an agreement supplemental hereto has
been executed as contemplated by clause (i) above, such opinion of counsel shall state that such supplemental agreement is
a legal, valid and standing obligation of the Servicer enforceable against the Servicer in accordance with its terms, subject to
bankruptcy, insolvency, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’
rights and to general equity principles).

 

(II)  If SST is acting as
Servicer, any corporation or other entity into which SST may be merged or converted or with which it may be consolidated, or any
corporation or other entity resulting from any merger, conversion or consolidation to which SST shall be a party, or any corporation
or other entity succeeding to the business of SST must be the successor of SST hereunder without the execution or filing of any
paper with any party hereto or any further act on the part of any of the parties hereto except where an instrument of transfer
or assignment is required by law to effect such succession, anything herein to the contrary notwithstanding, and SST will not merge,
convert or consolidate if the resulting entity would not be the successor of SST hereunder.

 

(c)          No
Change in Business or the Credit and Collection Policies. The Servicer will not make any change in the character of its business
or in the Credit and Collection Policies, which change would, in either case, impair the collectability of any Receivable or otherwise
have a Material Adverse Effect, except to the extent such change is required as a result of a change in applicable Requirements
of Law.

 

Section 2.15         Sale
of Defaulted Receivables. The initial Servicer may sell, on behalf of the Receivables Trust, Defaulted Receivables that have
been Defaulted Receivables for no less than six months, as to which the initial Servicer shall have determined eventual payment
in full is unlikely, to an unaffiliated third party for the greatest market price available, if in its good faith judgment it determines
that the proceeds ultimately recoverable with respect to such Receivables would be increased by such sale. Notwithstanding the
foregoing, in no event may the aggregate sales of Defaulted Receivables (by Outstanding Receivables Balance of such Defaulted Receivable
as of the Cut-Off Date) pursuant to this Section 2.15 exceed 10% of the Outstanding Receivables Balance on the Cut-Off
Date.

 

Section 2.16         Deemed
Collections. In the event that there is any breach of any of the representations, warranties or covenants of the initial Servicer
contained in Section 2.10(d),

 

    	 	25	 

     

    

 

Section 2.13(a), Section 2.13(e), and Section 2.14(a) with
respect to any Receivable, and such Receivable becomes a Defaulted Receivable or the rights of the Secured Parties in, to or under
such Receivable or its proceeds are impaired or the proceeds of such Receivable are not available to the Trustee for the benefit
of the Secured Parties or the initial Servicer has released any Merchandise securing a Receivable from the lien created by such
Receivable (except as specifically provided in the Servicer Transaction Documents), then the initial Servicer shall be deemed to
have received on such day a collection of such Receivable in full, and the initial Servicer shall, on the Distribution Date, deposit
into the Collection Account, subject to Section 5.4(a) of the Indenture, an amount equal to the Outstanding Receivables
Balance of such Receivable, and such amount shall be allocated and applied by the initial Servicer as a Collection allocable to
the Receivables or Related Security in accordance with Section 5.11 (or the applicable section relating to allocation of Collections)
of the Indenture. In the event that the initial Servicer has paid to or for the benefit of the Noteholders or any other applicable
Secured Party the full Outstanding Receivables Balance of any Receivable pursuant to this paragraph, the Receivables Trust shall
release and convey all of such Person’s right, title and interest in and to the related Receivable to the initial Servicer,
without representation or warranty, but free and clear of all liens created by such Person, as applicable.

 

ARTICLE III

 

RIGHTS
OF NOTEHOLDERS AND ALLOCATION

AND APPLICATION OF COLLECTIONS

 

Section 3.01         Establishment
of Accounts.

 

(a)          The
Collection Account. The initial Servicer, for the benefit of the Secured Parties, shall establish and the Servicer shall maintain
the Collection Account in the state of New York or in the city in which the Corporate Trust Office is located, with a Qualified
Institution in the name of the Trustee, on behalf of the Secured Parties as designee of the Receivables Trust, a non-interest bearing
segregated account bearing a designation clearly indicating that the funds deposited therein are held in trust for the benefit
of the Secured Parties. Pursuant to authority granted to it pursuant to subsection 2.02(a), the Servicer shall have
the revocable power to cause to be withdrawn funds from the Collection Account for the purposes of carrying out its duties hereunder
and under the Indenture.

 

(b)          Series Accounts.
If so provided in the Series Supplement, the initial Servicer shall cause to be established and the Servicer shall maintain
in the name of the Trustee for the benefit of the Noteholders and the other Secured Parties as designee of the Receivables Trust,
one or more Series Accounts. Each such Series Account shall bear a designation clearly indicating that the funds deposited
therein are held for the benefit of the Noteholders and the other Secured Parties, to the extent applicable. Each such Series Account
will be a trust account, if so provided in the Series Supplement, and will have the other features and be applied as set forth
in the Series Supplement.

 

    	 	26	 

     

    

 

Section 3.02         Collections
and Allocations.

 

(a)          Collections.
Subject to subsection 5.4(a) of the Indenture, the Servicer shall deposit all Collections in the Collection Account
as promptly as possible after the date of receipt of such Collections, but in no event later than the second Business Day following
such date of receipt.

 

The Servicer shall allocate
such amounts in accordance with this Article III and Article 5 of the Indenture and the initial Servicer shall cause
to be withdrawn the required amounts from the Collection Account or pay such amounts to the Noteholders or other Persons entitled
thereto in accordance with this Article III and Article 5 of the Indenture, in both cases as modified by the Series Supplement.
The initial Servicer shall make such deposits or payments on the date indicated therein by wire transfer or as otherwise provided
in the Series Supplement.

 

ARTICLE IV

 

OTHER
SERVICER POWERS

 

Section 4.01         Appointment
of Paying Agent. Subject to Section 2.7 of the Indenture, the Servicer may, but shall not be obligated to, revoke
the power of the Paying Agent to withdraw funds from any account maintained for the benefit of the Secured Parties pursuant to
the Indenture and remove the Paying Agent, if the Servicer determines in its reasonable discretion that the Paying Agent shall
have failed to perform its obligations under the Indenture in any material respect or for other good cause. The Issuer shall promptly
notify each Rating Agency of the removal of any Paying Agent.

 

Section 4.02        [Reserved.]

 

ARTICLE V

 

OTHER
MATTERS RELATING

TO THE SERVICER

 

Section 5.01         Liability
of the Servicer. The Servicer hereby agrees to perform any and all duties and obligations set forth in the Indenture that are
specifically identified therein as duties of the Servicer. Subject to the foregoing, the Servicer shall be liable in accordance
herewith only to the extent of the obligations specifically undertaken by it or required to be taken by it in such capacity herein
and in the other Servicer Transaction Documents.

 

Section 5.02         Limitation
on Liability of the Servicer and Others. The directors, officers, employees or agents who are natural persons of the Servicer
shall not be under any liability to the Issuer, the Receivables Trust, the Trustee, the Noteholders or any other Person hereunder
or pursuant to any document delivered hereunder for any action taken or for refraining from the taking of any action, it being
expressly understood that all such liability is expressly waived and released as a condition of, and as consideration for, the
execution of this Agreement and any supplement hereto. Except as provided in this Section 5.02 with respect to the
Issuer, the Receivables Trust, and the Trustee, and their respective officers, directors, employees and agents, the Servicer shall
not be under any liability to the Issuer, the Receivables Trust, the Trustee, their

 

    	 	27	 

     

    

 

respective officers, directors, employees and
agents, the Noteholders or any other Person for any action taken or for refraining from the taking of any action in its capacity
as Servicer pursuant to this Agreement or any supplement hereto; provided, however, that this provision shall not
protect the Servicer against any liability which would otherwise be imposed by reason of (x) willful misconduct, bad faith
or negligence in the performance of duties or by reason of its reckless disregard of its obligations and duties hereunder or under
the Series Supplement or (y) breach of the express terms of any Servicer Transaction Document. The Servicer may rely
in good faith on any document of any kind prima facie properly executed and submitted by any Person respecting any matters
arising hereunder. The Servicer shall not be under any obligation to appear in, prosecute or defend any legal action which is not
incidental to its duties to service the Receivables or the other property in the Trust Estate in accordance with this Agreement,
the Indenture and the Series Supplement that in its reasonable opinion may involve it in any expense or liability.

 

Section 5.03         Servicer
Not to Resign. The Servicer shall not resign from the obligations and duties hereby imposed on it except upon determination
that (i) the performance of its duties hereunder is no longer permissible under applicable law and (ii) there is no reasonable
action which such Servicer could take to make the performance of its duties hereunder permissible under applicable law. Any such
determination permitting the resignation of any Servicer shall be evidenced as to clause (i) above by an Opinion of Counsel
and as to clause (ii) by a Conn Officer’s Certificate of the Servicer (or, if the Servicer is not Conn Appliances or
an Affiliate thereof, a certificate of a responsible officer of such Servicer), each to such effect delivered, and satisfactory
in form and substance, to the Trustee. No such resignation shall become effective until a Successor Servicer shall have assumed
the responsibilities and obligations of such Servicer in accordance with Section 2.01 hereof and the Rating Agency
Condition shall have been satisfied.

 

Section 5.04         Waiver
of Defaults. Any default by the Servicer in the performance of its obligations hereunder and its consequences may be waived
pursuant to Section 7.01. Upon any such waiver of a default, such default shall cease to exist, and any 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 thereon except to the extent expressly so waived.

 

ARTICLE VI

 

ADDITIONAL
OBLIGATION OF THE

SERVICER WITH RESPECT TO THE TRUSTEE

 

Section 6.01         Successor
Trustee.

 

(a)          If
the Trustee resigns or is removed pursuant to the terms of the Indenture or if a vacancy exists in the office of the Trustee for
any reason, the Servicer (or, if Conn Appliances is not the Servicer, the Issuer) shall promptly appoint a successor Trustee meeting
the requirements of Section 11.9 of the Indenture, by written instrument, in duplicate, one copy of which instrument
shall be delivered to the resigning Trustee and one copy to the successor Trustee.

 

    	 	28	 

     

    

 

(b)          The
Servicer and the Issuer agree to execute and deliver such instruments and do such other things as may reasonably be required
for fully and certainly vesting and confirming in the successor Trustee all rights, powers, duties and obligations under the Indenture
and hereunder.

 

Section 6.02         Tax
Returns. The initial Servicer, on behalf of Issuer, or the Issuer shall prepare or shall cause to be prepared all tax information
required by law to be distributed to Noteholders and shall deliver such information to the Trustee at least five days prior to
the date it is required by law to be distributed to Noteholders. Except to the extent the initial Servicer or the Issuer breaches
its obligations or covenants contained in this Section 6.02, in no event shall the initial Servicer or the Issuer be
liable for any liabilities, costs or expenses of the Noteholders or the Note Owners arising under any tax law, including without
limitation federal, state, local or foreign income or excise taxes or any other tax imposed on or measured by income or gross receipts
(or any interest or penalty with respect thereto or arising from a failure to comply therewith).

 

Section 6.03         Final
Payment with Respect to Any Series. The initial Servicer or the Issuer shall provide any notice of termination as specified
for the Issuer in Section 12.5(a) of the Indenture and in accordance with the procedures set forth therein.

 

Section 6.04         Optional
Purchase of Receivables Trust Estate.

 

(a)          The
initial Servicer will have the option to purchase (the “Optional Purchase”) the Receivables Trust Estate (other
than the Reserve Account) for an amount equal to the Optional Purchase Price from the Issuer on any Business Day if, as of the
last day of the previous Monthly Period, the Outstanding Receivables Balance has declined to 10% or less of the Outstanding Receivables
Balance as of the Cut-Off Date. The Optional Purchase Price will not be less than an amount sufficient to pay accrued and unpaid
interest then due on the Series 2020-A Notes and the aggregate unpaid Note Principal, if any, of all of the outstanding Series 2020-A
Notes. The fair market value of the Receivables Trust Estate will be calculated based upon a reasonable valuation or appraisal
of the Receivables Trust Estate delivered at least five (5) Business Days prior to any exercise of the Optional Purchase by
the initial Servicer prepared by a nationally recognized third-party appraisal services firm or independent accounting firm in
form and substance satisfactory to the Trustee, which appraisal or other valuation report states (with supporting data and calculations)
the fair market value of the Receivables Trust Estate. To exercise such option, the initial Servicer shall deposit the Optional
Purchase Price into the Collection Account on the Redemption Date. The initial Servicer shall furnish written notice of its election
to exercise the Optional Purchase to the Trustee not later than twenty (20) days prior to the Optional Purchase date. If the initial
Servicer exercises the Optional Purchase, all Notes shall be due and payable under the Indenture and the Notes shall be redeemed
and in each case in whole but not in part on the Redemption Date for the Redemption Price.

 

(b)          Upon
exercise of the Optional Purchase, the Class R Notes will receive a final distribution equal to any excess of the fair market
value of the

 

    	 	29	 

     

    

 

Receivables on the date on which the Optional Purchase will occur over the accrued and unpaid interest then due on
the Series 2020-A Notes and the aggregate unpaid principal, if any, of all of the outstanding Series 2020-A Notes plus
an amount sufficient to pay (i) the Servicing Fee (including to any successor servicer) for such Payment Date and all unpaid
Servicing Fees with respect to prior Payment Dates (provided, that, any amounts withdrawn from the Reserve Account may not be used
to pay the Servicing Fee for so long as Conn Appliances is the Servicer) and (ii) the Trustee, Receivables Trust Trustee,
Back-Up Servicer and Issuer Fees and Expenses for such Payment Date and all unpaid Trustee, Receivables Trust Trustee, Back-Up
Servicer and Issuer Fees and Expenses with respect to prior Payment Dates, after giving effect to the Available Funds (other than
any amounts on deposit in the Reserve Account) for such Payment Date. After such Payment Date, the Class R Noteholders will
not be entitled to any additional distributions. Any amount on deposit in the Reserve Account on such Payment Date (after giving
effect to the applicable priority of payments on such Payment Date) will be distributed to the Depositor.

 

ARTICLE VII

 

MISCELLANEOUS
PROVISIONS

 

Section 7.01         Amendment.

 

(a)          This
Agreement may be amended in writing from time to time by the Issuer, the Receivables Trust, the Servicer and the Trustee,
without the consent of any of the Noteholders, to cure any ambiguity, to correct or supplement any provisions herein which may be
inconsistent with any other provisions herein, or in the Offering Memorandum, or to add 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,
that such action, as evidenced to the Trustee by (i) an Opinion of Counsel, (ii) Conn’s Officer Certificate or
(iii) satisfaction of the Rating Agency Condition, shall not adversely affect in any material respect the interests of any
Noteholder; provided, further such action shall not adversely affect in any material respect the interests of the Back-Up Servicer
(including as Successor Servicer) without its prior written consent.

 

(b)          Any
provision of this Agreement may also be amended, supplemented, modified or waived in writing from time to time by the Issuer,
the Receivables Trust, the Servicer and the Trustee with the consent of the Required Noteholders for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of this Agreement or modifying in any manner the rights
of Noteholders of any Series then issued and outstanding; provided, however, that no such amendment, supplement,
modification or waiver shall (i) reduce in any manner the amount of, or delay the timing of, distributions which are required
to be made on any Notes without the consent of each Holder of Notes so affected, (ii) change the definition of or the manner
of calculating the Note Principal without the consent of each Holder of Notes, (iii) reduce the aforesaid percentage

 

    	 	30	 

     

    

 

required
to consent to any such amendment, without the consent of each Holder of Notes adversely affected, (iv) adversely affect in
any material respect the interests of the Back-Up Servicer (including as Successor Servicer) without its prior written consent.
The Trustee may, but shall not be obligated to, enter into any such amendment which adversely affects the Trustee’s rights,
duties or immunities under this Agreement, the Indenture or otherwise.

 

(c)          Promptly
after the execution of any such amendment, the Issuer shall furnish notification of the substance of such amendment to each Rating
Agency.

 

(d)          Notwithstanding
anything herein to the contrary, no amendment to this Agreement shall be effective that would result in or cause (i) the Receivables
Trust or the Issuer to be classified as an association or publicly traded partnership taxable as a corporation, or (ii) the
Receivables Trust to be classified, for United States federal income tax purposes, as other than a fixed investment trust described
in Treasury Regulation Section 301.7701-4(c) that is treated as a grantor trust under Subpart E, Part I of subchapter
J, Chapter I of Subtitle A of the Code.

 

(e)          It
shall not be necessary for the consent of Noteholders under this Section 7.01 to approve the particular form of any
proposed amendment, but it shall be sufficient if such consent shall approve the substance thereof. The manner of obtaining such
consents and of evidencing the authorization of the execution thereof by Noteholders shall be subject to such reasonable requirements
as the Trustee may prescribe.

 

(f)           In
connection with any amendment, the Trustee shall be entitled to receive an Opinion of Counsel (from an external law firm) from
the Issuer to the effect that the amendment complies with all requirements of this Agreement and the Indenture, except that such
counsel shall not be required to opine on factual matters.

 

(g)          Any
amendment which affects the rights, duties, immunities or liabilities of the Receivables Trust Trustee shall require the Receivable
Trust Trustee’s written consent.

 

Section 7.02         Protection
of Right, Title and Interest to Receivables and Related Security.

 

(a)          Conn
Appliances or the Issuer (if Conn Appliances is not the Servicer) shall cause this Agreement, the Indenture and the Series Supplement,
all amendments hereto and/or all financing statements and any other necessary documents covering the Noteholders’ and the
Trustee’s right, title and interest to the Trust Estate and the Receivables Trust’s right, title and interest in the
Receivables Trust Estate to be promptly recorded, registered and filed, and at all times to be kept recorded, registered and filed,
all in such manner and in such places as may be required by law fully to preserve and protect the Trustee’s Lien (granted

 

    	 	31	 

     

    

 

pursuant to the Indenture for the benefit of the Secured Parties) on the property comprising the Trust Estate and the Receivables
Trust’s interest in the Receivables Trust Estate. Conn Appliances or the Issuer shall deliver to the Trustee file-stamped
copies of, or filing receipts for, any document recorded, registered or filed as provided above, as soon as available following
such recording, registration or filing. The Depositor shall cooperate fully with the Conn Appliances or the Issuer, as applicable,
in connection with the obligations set forth above and will execute any and all documents reasonably required to fulfill the intent
of this subsection 7.02(a).

 

(b)          The
Servicer will give the Trustee prompt written notice of any relocation of any office from which it services the Receivables and
Related Security or keeps records concerning such items or of its principal executive office and, in the case of the initial Servicer,
prompt written notice of whether, as a result of such relocation, the applicable provisions of the UCC would require the filing
of any amendment of any previously filed financing statement or of any new financing statement and shall file such financing statements
or amendments as may be necessary to continue the Trustee’s security interest in the Trust Estate and the proceeds thereof
for the benefit of the Secured Parties. The Servicer will at all times maintain each office from which it performs custody, collection
and/or customer service obligations with respect to the Receivables, Related Security and other property in its possession and
part of the Trust Estate and its principal executive office within the United States of America.

 

Section 7.03         Governing
Law. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO ITS CONFLICT
OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES
OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. EACH OF THE PARTIES TO THIS SERVICING AGREEMENT HEREBY
AGREES TO THE NON-EXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND ANY APPELLATE
COURT HAVING JURISDICTION TO REVIEW THE JUDGMENT THEREOF. EACH OF THE PARTIES HEREBY WAIVES ANY OBJECTION BASED ON FORUM NON
CONVENIENS AND ANY OBJECTION TO VENUE OF ANY ACTION INSTITUTED HEREUNDER IN ANY OF THE AFOREMENTIONED COURTS AND CONSENTS TO
THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT.

 

Section 7.04         Notices.
All demands, notices and communications hereunder shall be in writing and shall be deemed to have been duly given if personally
delivered at, sent by facsimile to, sent by courier (overnight or hand-delivered) at or mailed by registered mail, return receipt
requested, to (a) in the case of the Issuer, to 2445 Technology Forest Blvd., Suite 800, The Woodlands, TX, 77381, (b) in
the case of the initial Servicer or Conn Appliances, to 2445 Technology Forest Blvd., Suite 800, The Woodlands, TX, 77381,
(c) in the case of the Trustee, to the Corporate Trust Office, (d) in the case of the Receivables Trust, to c/o Wilmington
Trust, National Association, as Receivables Trust Trustee, Rodney Square North, 1100 North Market

 

    	 	32	 

     

    

 

Street, Wilmington, Delaware
19890, Attention: Corporate Trust Administration – Conn’s Receivables 2020-A Trust and (e) in the case of each
Rating Agency, the address specified in the Series Supplement; or, as to each party, at such other address as shall be designated
by such party in a written notice to each other party. Unless otherwise provided in the Series Supplement or otherwise expressly
provided herein, any notice required or permitted to be mailed to a Noteholder shall be given by first class mail, postage prepaid,
at the address of such Noteholder as shown in the Note Register. Any notice so mailed or published, as the case may be, within
the time prescribed in this Agreement shall be conclusively presumed to have been duly given, whether or not the Noteholder receives
such notice.

 

Section 7.05         Severability
of Provisions. If any one or more of the covenants, agreements, provisions or terms of this Agreement shall for any reason
whatsoever be held invalid, then such covenants, agreements, provisions or terms shall be deemed severable from the remaining covenants,
agreements, provisions or terms of this Agreement and shall in no way affect the validity or enforceability of the other provisions
of this Agreement.

 

Section 7.06         Delegation.
Except as provided in Section 2.01, 2.02 or 2.14(b), the Servicer may not delegate any of its obligations
under this Agreement.

 

Section 7.07         Waiver
of Trial by Jury. To the extent permitted by applicable law, each of the parties hereto irrevocably waives all right of trial
by jury in any action, proceeding or counterclaim arising out of or in connection with this Agreement or the Transaction Documents
or any matter arising hereunder or thereunder.

 

Section 7.08         Further
Assurances. The Servicer agrees to do and perform, from time to time, any and all acts and to execute any and all further
instruments required or reasonably requested by the Trustee more fully to effect the purposes of this Agreement.

 

Section 7.09         No
Waiver; Cumulative Remedies. No failure to exercise and no delay in exercising, on the part of the Trustee, the Issuer, the
Receivables Trust, the Servicer, or the Noteholders, any right, remedy, power or privilege hereunder, shall operate as a waiver
thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further
exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein
provided are cumulative and not exhaustive of any rights, remedies, powers and privileges provided by law.

 

Section 7.10         Counterparts.
This Agreement may be executed in two or more counterparts (and by different parties on separate counterparts), each of which
shall be an original, but all of which together shall constitute one and the same instrument. Any signature (including, without
limitation, (x) any electronic symbol or process attached to, or associated with, a contract or other record and adopted by
a person with the intent to sign, authenticate or accept such contract or record and (y) any facsimile or .pdf signature)
hereto or to any other certificate, agreement or document related to this transaction, and any contract formation or record-keeping,
in each case, through electronic means, shall have the same legal validity and enforceability as a manually executed signature
or use of a paper-based record-keeping system to the fullest extent permitted by applicable law, including the Federal Electronic
Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any similar state
law based on

 

    	 	33	 

     

    

 

the Uniform Electronic Transactions Act, and the parties hereto hereby waive any objection to the contrary. Each party
hereto shall be entitled to conclusively rely upon, and shall have no liability with respect to, any faxed, scanned, or photocopied
manual signature, or other electronic signature, of any other party (whether such signature is with respect to this Agreement or
any notice, officer’s certificate or other ancillary document delivered pursuant to or in connection with this Agreement)
and shall have no duty to investigate, confirm or otherwise verify the validity or authenticity thereof.

 

Section 7.11         Third-Party
Beneficiaries. This Agreement will inure to the benefit of and be binding upon the parties hereto, the Secured Parties, the
Receivables Trust Trustee and their respective successors and permitted assigns. Except as provided in this Section 7.11,
no other Person will have any right or obligation hereunder; provided that the Issuer shall have the right to enforce all rights
of the Receivables Trust.

 

Section 7.12         Actions
by Noteholders.

 

(a)          Wherever
in this Agreement a provision is made that an action may be taken or a notice, demand or instruction given by Noteholders,
such action, notice or instruction may be taken or given by any Noteholder, unless such provision requires a specific percentage
of Noteholders or unless otherwise provided in the Series Supplement, in each case, as certified by such Noteholder. Notwithstanding
anything in this Agreement to the contrary, neither the Servicer nor any Affiliate thereof shall have any right to vote with respect
to any Note except as specifically provided in the Indenture.

 

(b)          Any
request, demand, authorization, direction, notice, consent, waiver or other act by a Noteholder shall bind such Noteholder and
every subsequent holder of such Note issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof
in respect of anything done or omitted to be done by the Trustee or the Servicer in reliance thereon, whether or not notation of
such action is made upon such Note.

 

Section 7.13         Rule 144A
Information. For so long as any of the Notes are “restricted securities” within the meaning of Rule 144(a)(3) under
the Securities Act, the Issuer and the Trustee (if such information is in the Trustee’s possession) agree to provide to any
Noteholders and to any prospective purchaser of Notes designated by such a Noteholder upon the request of such Noteholder or prospective
purchaser, any information required to be provided to such holder or prospective purchaser to satisfy the condition set forth in
Rule 144A(d)(4) under the Securities Act, and the Servicer agrees to reasonably cooperate with the Issuer and the Trustee
in connection with the foregoing.

 

Section 7.14         Merger
and Integration. Except as specifically stated otherwise herein, this Agreement sets forth the entire understanding of the
parties relating to the subject matter hereof, and all prior understandings, written or oral, are superseded by this Agreement.

 

Section 7.15         Headings.
The headings herein are for purposes of reference only and shall not otherwise affect the meaning or interpretation of any provision
hereof.

 

    	 	34	 

     

    

 

Section 7.16         Rights
of the Trustee. The Trustee shall be entitled to all rights, powers, protection, privileges and immunities conferred on it
by the terms of the Indenture as if specifically set forth herein, and shall not be liable for any loss arising in connection with
the exercise of any such rights, powers, protections, privileges and immunities.

 

Section 7.17         Sales
Tax Proceeds. For the avoidance of doubt, (1) the initial Servicer hereby notifies each of the parties hereto that the
Receivables Trust, the R Noteholders, the Depositor, the Seller and the Issuer are each “assignees” of the right to
receive the Texas bad debt deduction for all applicable defaults as per Section 151.426(c) of the Texas Tax Code and
(2) each of the initial Servicer, the Depositor, the Seller, the Receivables Trust, the Class R Noteholders, the Issuer,
and the Retailer of the Merchandise will cooperate to obtain the Texas bad deduction for the assignees.

 

Section 7.18         Limitation
of Liability. It is expressly understood and agreed by the parties hereto that (a) this Agreement is executed and delivered
by Wilmington Trust, National Association (“WTNA”), not individually or personally but solely as Receivables
Trust Trustee of the Receivables Trust, 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 Receivables Trust is made and intended not as personal
representations, undertakings and agreements by WTNA but is made and intended for the purpose of binding only the Receivables Trust,
(c) nothing herein contained shall be construed as creating any liability on WTNA individually or personally, to perform any
covenant either expressed or implied contained herein of the Receivables Trust, all such liability, if any, being expressly waived
by the parties hereto and by any Person claiming by, through or under the parties herein, (d) WTNA has made no investigation
as to the accuracy or completeness of any representations and warranties made by the Receivables Trust in this Agreement and (e) under
no circumstances shall WTNA be personally liable for the payment of any indebtedness or expenses of the Receivables Trust or be
liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Receivables
Trust under this Agreement or any other related documents.

 

    	 	35	 

     

    

 

IN WITNESS WHEREOF, the
Issuer, the Servicer and the Trustee have caused this Servicing Agreement to be duly executed by their respective officers as of
the day and year first above written.

 

	 	CONN’S RECEIVABLES FUNDING 2020-A, LLC,

                                                                     as Issuer

	 	 
	 	 
	 	By:	/s/ Melissa Allen
	 	Name: Melissa Allen
	 	Title: Vice President and Treasurer

 

 

	 	CONN’S RECEIVABLES 2020-A TRUST,

                                                                     as Receivables Trust

	 	 
	 	 
	 	By: Wilmington Trust, National Association, not in its
individual capacity but solely as Receivables Trust Trustee
	 	 
	 	 
	 	By:	/s/ Clarice Wright
	 	Name: Clarice Wright
	 	Title: Vice President

 

 

	 	CONN APPLIANCES, INC.,

                                                                     as Servicer

	 	 
	 	 
	 	By:	 /s/ George Bchara
	 	Name:	 George Bchara
	 	Title:	 Chief Financial Officer

 

 

	 	WELLS FARGO BANK, NATIONAL ASSOCIATION,

    not in its individual capacity, but solely as Trustee
	 	 
	 	 
	 	By:	 /s/ G. Brad Martin
	 	Name: G. Brad Martin
	 	Title: Vice President

 

    	 	S-1	Servicing Agreement

     

    

 

Exhibit A-1

Form of Monthly
Servicer Report

 

FORM OF MONTHLY SERVICER REPORT

 

CONN’S RECEIVABLES
FUNDING 2020-A, LLC

Monthly Noteholders' Statement
and Servicer Report

 

	Monthly
    Period Beginning:	 
	Monthly
    Period Ending:	 
	Previous
    Payment Date/Close Date:	 
	Payment
    Date:	 
	30/360
    Days:	 

 

	I.	OUTSTANDING RECEIVABLES BALANCE CALCULATION	 	 
	{1}	Beginning
    of period Outstanding Receivables Balance	 	 	 	 	 	 	 	 	 	{1}	 	 
	 	Monthly
    principal amounts	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	{2}	Principal
    payments	 	 	 	 	 	 	 	 	 	{2}	 	 	 
	 	{3}	Outstanding
    Receivables that became Defaulted Receivables	 	 	 	 	 	 	 	 	{3}	 	 	 
	 	{4}	Reversal
    of Earned Finance Charges for Cash Option & EPNI Receivables	 	 	 	 	 	 	 	{4}	 	 	 
	 	{5}	Repurchased
    Receivables (Rep. and Warranty Breaches)	 	 	 	 	 	 	 	 	{5}	 	 	 
	 	{6}	Total Change
    in Outstanding Receivables Balance	 	 	 	 	 	 	 	 	 	{6}	 	 
	{7}	End of
    period Outstanding Receivables Balance	 	 	 	 	 	 	 	 	 	{7}	 	 
	{8}	Pool Factor
    (End of period Outstanding Receivables Balance/ Cut-off Date Outstanding Receivables Balance)	 	 	 	 	 	{8}	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	II.	NOTE
    BALANCE CALCULATION	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Class A	Class B	Class C	 	 
	 	 	 	 	 	 	$	 	Note Factor	$	 	Note Factor	$	Note Factor	 	 
	{9}	Original Note Balance	 	 	 	{9}	 	 	 	 	 	 	 	 	 	 
	{10}	Beginning
    of period Note Balance	 	 	{10}	 	 	 	 	 	 	 	 	 	 
	{11}	Principal
    Distribution Allocation	 	 	{11}	 	 	 	 	 	 	 	 	 	 
	{12}	End of
    period Note Balance	 	 	{12}	 	 	 	 	 	 	 	 	 	 
	{13}	Total Distribution
    (Principal and Interest) for the Monthly Period	 	 	{13}	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	III.	RECONCILIATION
    OF COLLECTION ACCOUNT	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Available Funds	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	{14}	Total Principal
    Payments (including repurchased receivables + Reversal of Earned Finance Charges for Cash Option & EPNI Receivables)	 	 	 	{14}	 	 	 
	{15}	Recoveries	 	 	 	 	 	 	 	 	 	 	{15}	 	 	 
	{16}	Finance
    Charges (less reversal of Earned Financed Charges for Cash Option Receivables)	 	 	 	 	 	 	 	 	{16}	 	 	 
	{17}	Other amounts received	 	 	 	 	 	 	 	 	 	{17}	 	 	 
	{18}	Reserve
    Fund and Collection Account Interest	 	 	 	 	 	 	 	 	 	{18}	 	 	 
	{19}	Total Available Funds	 	 	 	 	 	 	 	 	 	 	{19}	 	 
	 	Recoveries	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	{20}	Principal
    recoveries received (net of recovery expenses)	 	 	 	 	 	 	 	 	 	{20}	 	 	 
	{21}	RSA refunds received	 	 	 	 	 	 	 	 	 	 	{21}	 	 	 
	{22}	Sales tax
    refunds received	 	 	 	 	 	 	 	 	 	{22}	 	 	 
	{23}	Total Recoveries	 	 	 	 	 	 	 	 	 	 	 	{23}	 	 
	 	Distributions	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	{24}	(i) Trustee
    fees and expenses (cap of $50,000 per annum for expenses and indemnities, unless the Notes have been accelerated)	 	 	 	 	 	{24}	 	 	 	 	 
	{25}	Receivables
    Trust Trustee fees and expenses (cap of $50,000 per annum for expenses and indemnities, unless the Notes have been accelerated)	 	 	 	{25}	 	 	 	 	 
	{26}	Back-Up
    Servicer fees and expenses (cap of $50,000 per annum for expenses and indemnities, unless the Notes have been accelerated)	 	 	 	{26}	 	 	 	 	 
	{27}	Servicer
    Transition Costs up to $115,000	 	 	 	 	 	 	 	{27}	 	 	 	 	 
	{28}	Trustee,
    Receivable Trust Trustee and Back-Up Servicer Fees and Expenses	 	 	 	 	 	 	 	 	{28}	 	 	 
	{29}	(ii) Servicing Fee	 	 	 	 	 	 	 	 	 	{29}	 	 	 
	 	(iii) Class A Interest	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 Class	Beginning Note Balance 	 Interest Rate	Days 	 	Days Basis 	 	Calculated Interest 	Deficiency Amount 	 	Additional
    Interest 	 	 	 
	{30}	A	$0.00	1.71%	0	30
    / 360	$0.00	$0.00	$0.00	{30}	 	 	 
	{31}	(iv) First
    Priority Principal Distribution Amount	 	 	 	 	 	 	 	 	 	{31}	 	 	 
	 	(v)
    Class B Interest	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 Class	Beginning Note Balance 	 Interest Rate	Days 	 	Days Basis 	 	Calculated Interest 	Deficiency Amount  	 	Additional Interest 	 	 	 
	{32}	B	$0.00	4.27%	0	30
    / 360	$0.00	$0.00	$0.00	{32}	 	 	 
	{33}	(vi) Second Priority Principal Distribution Amount	 	 	 	 	 	 	 	 	{33}	 	 	 
	 	(vii) Class C Interest	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 Class	Beginning Note Balance 	 Interest Rate	Days 	 	Days Basis 	 	Calculated Interest 	Deficiency Amount  	 	Additional Interest  	 	 	 
	{34}	C	$0.00	7.10%	0	30
    / 360	$0.00	$0.00	$0.00	{34}	 	 	 
	{35}	(viii)
    Third Priority Principal Distribution Amount	 	 	 	 	 	 	 	 	 	{35}	 	 	 
	{36}	(iv) Reserve Account, the amount needed (if any) to bring to the Specified Reserve Account Balance	{36}	 	 	 
	{37}	(x) Regular
    Principal Distribution Amount	 	 	 	 	 	 	 	 	 	{37}	 	 	 
	{38}	(xi) Additional fee and expenses to the Trustee, the Receivables Trust Trustee, the Back-Up Servicer, and any successor Servicer to the extent not paid in (i)	{38}	 	 	 
	{39}	(xii) Remaining amounts to holders of Class R Notes	 	 	 	 	 	 	{39}	 	 	 
	{40}	Principal Distribution Allocation (iv)+(vi)+(viii)+(x)	 	 	 	 	 	 	 	 	{40}	 	 
	{41}	Total
    Distribution Amount	 	 	 	 	 	 	 	 	 	{41}	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	IV.	RECONCILIATION
    OF RESERVE FUND	 	 	 	 	 	 	 	 	 	 	 	 	 
	{42}	Beginning
    of period Reserve Fund balance	 	 	 	 	 	 	 	{42}	 	 	 	 	 
	{43}	Deposit
    to Reserve Fund (including interest)	 	 	 	 	 	 	 	{43}	 	 	 	 	 
	{44}	Release
    from Reserve Fund (including interest)	 	 	 	 	 	 	 	{44}	 	 	 	 	 
	{45}	End of
    period Reserve Fund balance	 	 	 	 	 	 	 	 	 	{45}	 	 

 

 

    	 	A-1-1	Servicing Agreement

     

    

 

Exhibit A-2

Form of Monthly
Noteholders’ Statement

 

FORM OF MONTHLY NOTEHOLDERS’
STATEMENT

 

CONN’S RECEIVABLES
FUNDING 2020-A, LLC

Monthly Noteholders' Statement
and Servicer Report

 

	Monthly
    Period Beginning:	 
	Monthly
    Period Ending:	 
	Previous
    Payment Date/Close Date:	 
	Payment
    Date:	 
	30/360
    Days:	 

 

	{46}	Reserve Fund Required Amount (1.50% of the Pool Balance as of the Cut-Off Date, 1.25% once OC≥30%<35%, 1.00% once OC≥35%)	{46}	 	 
	{47}	Change in Reserve Fund
    balance from prior period	 	 	 	 	{47}	 	 
	 	 	 	 	 	 	 	 	 
	V.	OVERCOLLATERALIZATION	 	 	 	 	 	 	 
	{48}	End of
    period Outstanding Receivables Balance	 	 	{48}	 	 	 
	 	 	 	 	 
	{49}	End of period Note
    Balance	 	 	{49}	 	 	 
	{50}	Overcollateralization
    amount at the end of the Monthly Period	 	 	 	 	{50}	 	 
	{51}	Overcollateralization
    % of Outstanding Receivables Balance at the end of the Monthly Period	 	 	 	 	{51}	 	 
	 	Overcollateralization
    Deficiency	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	VI.	STATISTICAL
    DATA	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	{52}
    Outstanding Receivables Balance	 	 	{52}	At
    closing	Previous
    Month	Current
    Month	 
	 	 	 	 	 	 
	{53}
    Weighted average APR	 	 	{53}	 	 	 	 
	{54}
    Weighted average Age	 	 	{54}	 	 	 	 
	{55}
    Weighted average Remaining Term	 	 	{55}	 	 	 	 
	{56}
    Number of Receivables	 	 	{56}	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	Cash Option Receivables	 	 	 	At
    closing	Previous
    Month	Current
    Month	 
	{57}
    Number of Cash Option Receivable Accounts that exercised Cash Option during current Monthly Period	 	 	{57}	 	 	 	 
	{58}
    Aggregate previous Earned Finance Charges of exercised Cash Option Receivables	 	 	{58}	 	 	 	 
	{59}
    Outstanding Receivables Balance of Cash Option Receivables	 	 	{59}	 	 	 	 
	{60}
    Number of Cash Option Receivables	 	 	{60}	 	 	 	 
	{61}
    % of Eligible Receivables that are Cash Option Receivables as of End of current Monthly Period	 	 	{61}	 	 	 	 
	{62}
    Weighted average Age of Cash Option Receivables	 	 	{62}	 	 	 	 
	{63}
    Weighted average Remaining Term of Cash Option Receivables	 	 	{63}	 	 	 	 
	 	 	 	 	 	 	 	 	 
	VII.	DELINQUENCY
    DATA	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Outstanding	 	 
	{64}
    Current	 	 	{64}	Receivables
    Balance	%
    Total	 
	 	 	 	 	 
	{65}
    31-60 days delinquent	 	 	{65}	 	 	 
	{66}
    61-90 days delinquent	 	 	{66}	 	 	 
	{67}
    91-120 days delinquent	 	 	{67}	 	 	 
	{68}
    121-150 days delinquent	 	 	{68}	 	 	 
	{69}
    151-180 days delinquent	 	 	{69}	 	 	 
	{70}
    181-209 days delinquent	 	 	{70}	 	 	 
	{71}
    Total Delinquencies	 	 	{71}	 	 	 
	 	 	 	 	 	 	 	 	 
	{72}
    Count and Balance of loans that have ever been Re-aged	 	 	{72}	#
    of Accounts	Balance	 
	 	 	 	 	 
	{73} Count and Balance of loans that have ever been Re-aged - current month	 	 	{73}	 	 	 
	 	 	 	 	 	 	 	 	 
	VIII.	PERFORMANCE
    DATA	 	 	 	 	 	 	 
	{74}
    Total Outstanding Receivables Balance that became Defaulted Receivables during current Monthly Period	{74}	 	 	 	 	 	 
	{75}
    Total Recoveries received during current Monthly Period	{75}	 	 	 	 	 	 
	{76}
    Aggregate Net Investor Loss Amount for Current Monthly Period	{76}	 	 	% Cut-off
    Balance	 	 	 
	{77}
    Cumulative Outstanding Receivables Balance that became Defaulted Receivables	{77}	 	 	Trigger
    Threshold	Trigger
    Event	 
	 	 	 	 
	{78}
    Cumulative Aggregate Net Investor Loss Amount	{78}	 	 	 	 	 	 
	{79}
    3mo Average Annualized Net Loss	{79}	 	 	 	 	 	 
	{80}	Current Monthly Period	{80}	 	 	 	 	 	 
	{81}	Last Month	{81}	 	 	 	 	 	 
	{82}	Two Months Prior	{82}	 	 	 	Trigger
    Threshold	Trigger
    Event	 
	{83}
    Recovery Rate	{83}	 	 	 	 	 	 
	{84}	Current
    Monthly Period	{84}	Recovery	 	Defaults	 	 	 
	 	 	 	 	 	 
	{85}	Last Month	{85}	 	 	 	 	 	 
	{86}	Two Months Prior	{86}	 	 	 	 	 	 

 

	 	CONN APPLIANCES,
    INC, as Servicer
	 	 
	 	 
	 	 	 
	 	Name:
	 	Title:

 

    	 	A-2-1	Servicing Agreement

     

    

 

Exhibit B

Form of Annual
Servicer’s Certificate

 

FORM OF ANNUAL SERVICER’S
CERTIFICATE

 

CONN APPLIANCES, INC.

 

The undersigned, a
duly authorized representative of Conn Appliances, Inc. (“Conn Appliances”), as Servicer pursuant to the
Servicing Agreement, dated as of October 16, 2020 (the “Servicing Agreement”) by and among Conn Appliances,
Conn’s Receivables Funding 2020-A, LLC, as issuer, Conn’s Receivables 2020-A Trust, Wells Fargo Bank, National Association,
as trustee (the “Trustee”), does hereby certify that:

 

1.            Conn
Appliances is a Servicer under the Servicing Agreement.

 

2.            The
undersigned is duly authorized pursuant to the Servicing Agreement to execute and deliver this certificate to the Trustee.

 

3.            This
certificate is delivered pursuant to Section 2.02(e)(ii) of the Servicing Agreement.

 

4.            A
review of the activities of the Servicer during (the period from the Closing Date until) (the twelve month period ended) _______,
20__ and of its performance under the Servicing Agreement was conducted under my supervision.

 

5.            Based
on such review, the Servicer has, to the best of my knowledge, fully performed in all material respects all of its obligations
under the Servicing Agreement and each other applicable Transaction Document to which it is a party throughout such period and
no default in the performance of such obligations has occurred or is continuing except as set forth in paragraph 6 below.

 

6.            The
following is a description of each default in the performance of the Servicer’s obligations under the provisions of the Servicing
Agreement and each other applicable Transaction Document to which it is a party, known to me to have been made during such period
which sets forth in detail (i) the nature of each such default, (ii) the action taken by the Servicer, if any, to remedy
each such default and (iii) the current status of each such default:

 

[If applicable, insert “None.”]

 

7.            Capitalized
terms used but not defined herein shall have the respective meanings given to such terms in the Servicing Agreement.

 

[signature page follows]

 

    	 	B-1	Servicing Agreement

     

    

 

IN WITNESS WHEREOF, the undersigned has
duly executed this certificate this ___ day of _______, ____.

 

	 	CONN APPLIANCES, INC.,
	 	 	 
	 	 	 
	 	By:	 
	 		Name:
	 		Title:

 

    	 	B-2	Servicing Agreement

     

    

 

Schedule 2.10(i)

Litigation

 

LITIGATION

 

None

 

    	 	Schedule 2.10(i)-1Document

Exhibit 4.3

Execution Version

AMENDMENT NO. 3 TO
AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT

This AMENDMENT NO. 3 TO AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT (this “Amendment”), dated as of October 14, 2020, is by and among XHR LP, a Delaware limited partnership (the “Borrower”), the other Loan Parties party hereto, JPMORGAN CHASE BANK, N.A. (“JPMorgan”), in its capacity as administrative agent (the “Administrative Agent”) for the Lenders, and the Lenders party hereto.
PRELIMINARY STATEMENTS:
(1) The Borrower, the Lenders, the Administrative Agent and the other financial institutions party thereto entered into that certain Amended and Restated Revolving Credit Agreement dated as of January 11, 2018, as amended by Amendment No. 1 to Amended and Restated Revolving Credit Agreement dated as of June 30, 2020 and Amendment No. 2 to Amended and Restated Revolving Credit Agreement dated as of July 30, 2020 (the “Credit Agreement”, and as further amended by this Amendment, the “Amended Credit Agreement”).  Capitalized terms not otherwise defined in this Amendment have the same meanings as specified in the Amended Credit Agreement;
(2) The Administrative Agent, the Borrower and Lenders party hereto (constituting the Required Lenders) wish to amend the Credit Agreement to address certain changes to the terms thereof as set forth below; 
(3) Each Lender party hereto that is identified on Annex I hereto as having an Extended Revolving Commitment (each, an “Extending Lender”) has agreed to an extension of the Revolving Maturity Date for their existing Loans and existing Revolving Commitments on the terms and subject to the conditions set forth herein as are applicable to Extended Loans (as defined herein) and Extended Revolving Commitments (as defined herein); 
(4) The existing Loans and existing Revolving Commitments of each Lender that is not an Extending Lender (each, a “Non-Extending Lender”) shall remain in effect with the same Revolving Maturity Date and same Applicable Rate that applied to such existing Loans and existing Revolving Commitments prior to giving effect to this Amendment, but in any event shall be subject to the other amendments set forth herein (which shall become effective with the consent of the Required Lenders on the Amendment Effective Date (as defined in Section 5 below)); and
(5) The Borrower, the Administrative Agent and the Lenders party hereto have agreed pursuant to Section 9.02 of the Credit Agreement to amend the Credit Agreement on the terms and subject to the conditions hereinafter set forth.
SECTION 1.Amendments to the Credit Agreement.  The Credit Agreement is, upon the occurrence of the Amendment Effective Date, hereby amended as follows:

(a)Schedule 2.01A to the Credit Agreement shall be replaced in its entirety with Annex I hereto.  
(b)The definition of “Applicable Rate” in Section 1.01 of the Credit Agreement is amended by restating paragraph (a) thereof in its entirety to read as follows:
“(a)    (i) From and after the Effective Date and until the Debt Rating Pricing Election Date, the “Eurodollar - Applicable Rate” or the “ABR - Applicable Rate”, as the case may be, applicable to Non-Extending Loans shall be determined by the range into which the Leverage Ratio falls in the table below; provided, however, that from and after the Amendment Effective Date until the Covenant Compliance Date, the Applicable Rate for Non-Extending Loans shall be based on Level VI (and, following the Covenant Compliance Date, the Applicable Rate shall revert to the applicable Level in the table below):
												
	RATIO LEVEL	LEVERAGE RATIO	EURODOLLAR - APPLICABLE
RATE
	ABR - 
APPLICABLE
RATE

	Level I	< 4.0 to 1.0	1.50%	0.50%
	Level II	> 4.0 to 1.0 and
< 4.5 to 1.0
	1.60%	0.60%
	Level III	> 4.5 to 1.0 and 
< 5.0 to 1.0
	1.65%	0.65%
	Level IV	> 5.0 to 1.0 and 
< 5.5 to 1.0
	1.80%	0.80%
	Level V	> 5.5 to 1.0 and 
< 6.0 to 1.0
	1.95%	0.95%
	Level VI	> 6.0 to 1.0
	2.25%	1.25%

    (ii)  From and after the Amendment No. 3 Effective Date and until the Debt Rating Pricing Election Date, the “Eurodollar - Applicable Rate” or the “ABR - Applicable Rate”, as the case may be, applicable to Extended Loans shall be determined by the range into which the Leverage Ratio falls in the table below; provided, however, that from and after the Amendment Effective Date until the Covenant Compliance Date, the Applicable Rate for Extended Loans shall be based on Level VI (and, following the Covenant Compliance Date, the Applicable Rate shall revert to the applicable Level in the table below):
												
	RATIO LEVEL	LEVERAGE RATIO	EURODOLLAR - APPLICABLE
RATE
	ABR - 
APPLICABLE
RATE

	Level I	< 4.0 to 1.0	1.50%	0.50%
	Level II	> 4.0 to 1.0 and
< 4.5 to 1.0
	1.60%	0.60%
	Level III	> 4.5 to 1.0 and 
< 5.0 to 1.0
	1.75%	0.75%
	Level IV	> 5.0 to 1.0 and 
< 5.5 to 1.0
	2.00%	1.00%
	Level V	> 5.5 to 1.0 and 
< 6.0 to 1.0
	2.25%	1.25%
	Level VI	> 6.0 to 1.0
	2.75%	1.75%

2

For purposes of this clause (a), any increase or decrease in the Applicable Rate resulting from a change in the Leverage Ratio (or the occurrence of the Covenant Compliance Date) shall become effective as of the first Business Day immediately following the date a compliance certificate is delivered in accordance with Section 5.01(d); provided, however, that if such compliance certificate is not delivered in accordance with Section 5.01(d) and has not been delivered within thirty (30) days after notice from the Administrative Agent or the Required Lenders to the Borrower notifying the Borrower of the failure to deliver such compliance certificate on the date when due in accordance with Section 5.01(d), then the Applicable Rate shall be the percentage that would apply to the Level VI Ratio and it shall apply as of the first Business Day after the date on which such compliance certificate was required to have been delivered and shall remain in effect until such compliance certificate is delivered.  
If at any time the financial statements upon which the Applicable Rate was determined were incorrect (whether based on a restatement, fraud or otherwise), the Borrower shall be required to retroactively pay any additional amount that the Borrower would have been required to pay if such financial statements had been accurate at the time they were delivered.
(c)Section 1.01 of the Credit Agreement is amended by restating the following definitions in their entirety to read as follows:
““Availability Period” means, with respect to any Revolving Commitments, the period from and including the Effective Date to but excluding the earlier of (i) the Revolving Maturity Date applicable to such Revolving Commitments and (ii) the date of termination of such Revolving Commitments.
“Covenant Compliance Date” shall mean the earlier of (i) the date on which the Borrower delivers a compliance certificate in accordance with Section 5.01(d) demonstrating compliance with the financial covenants set forth in Section 6.12 (as modified as of the Amendment Effective Date and thereafter) for the fiscal quarter ending March 31, 2022 and (ii) the date the Borrower shall, in its sole discretion, deliver both (a) a compliance certificate in accordance with Section 5.01(d) with respect to any fiscal quarter ending after the Amendment Effective Date but prior to March 31, 2022 reflecting compliance with the financial covenants in effect from and after the Covenant Waiver Period and (b) written notice to the Administrative Agent electing to terminate the Covenant Waiver Period concurrently with the delivery of such compliance certificate.
“Covenant Waiver Period” shall mean the period commencing with the fiscal quarter ending June 30, 2020 and ending on the earlier of (i) the date the Borrower shall be required to deliver the compliance certificate to be delivered 
3

with respect to the fiscal quarter ending March 31, 2022 in accordance with Section 5.01(d) and (ii) the Covenant Compliance Date.
“Permitted Capital Markets Indebtedness” means any Debt Issuance pursuant to any debt capital markets transaction (other than convertible debt securities), including any issuance of one or more series of secured or unsecured notes pursuant to public or 144a private placements or other substantially similar placements of Indebtedness; provided that (a) such Indebtedness (i) shall be either (x) unsecured or (y) secured only by the Covenant Waiver Period Collateral, to the extent securing the Obligations, and on a pari passu or junior basis with the Covenant Waiver Period Collateral securing the Obligations (including any additional collateral granted to secure the Obligations prior to such Debt Issuance) and subject to the Intercreditor Agreement or, in the case of junior lien Permitted Capital Markets Indebtedness, a customary junior lien intercreditor agreement in form and substance reasonably acceptable to the Administrative Agent, provided that any such pari passu secured Indebtedness shall not exceed the aggregate principal amount of $600,000,000 (including, without limitation, $300,000,000 of Permitted Capital Markets Indebtedness consisting of the 6.375% Senior Secured Notes due 2025 initially issued pursuant to the indenture dated August 18, 2020), (ii) shall have no guarantors or obligors other than the Guarantors and the Borrower party to the Loan Documents, and (iii) shall not have any scheduled amortization or mature prior to the 6-month anniversary of the maturity date of the KeyBank 2017 Credit Agreement, and (b) the Net Cash Proceeds of such Indebtedness shall be applied, subject to the Intercreditor Agreement, in accordance with Section 2.11(b).
“Permitted Variations Period” means the period commencing with the final fiscal quarter occurring during the Covenant Waiver Period (which shall in no event be later than the fiscal quarter ending March 31, 2022) and ending on the earlier of (i) the date on which the Borrower delivers a compliance certificate in accordance with Section 5.01(d) demonstrating compliance with the financial covenants set forth in Section 6.12 (as modified as of the Amendment Effective Date) for the fiscal quarter ending March 31, 2023 and (ii) the date the Borrower shall, in its sole discretion, deliver both (a) a compliance certificate in accordance with Section 5.01(d) with respect to any fiscal quarter ending after the Covenant Waiver Period but prior to March 31, 2023 reflecting compliance with the financial covenants without giving effect to the Permitted Variations and (b) written notice by the Borrower to the Administrative Agent electing to terminate the Permitted Variations Period concurrently with the delivery of such compliance certificate.
“Revolving Maturity Date” means (a) solely with respect to the Non-Extending Loans and Non-Extending Revolving Commitments, the Initial Revolving Maturity Date and (b) for all other purposes (including in respect of any Swingline Loan or Letter of Credit), the Extended Revolving Maturity Date.
4

“Revolving Percentage” means, with respect to any Revolving Lender, the percentage of the total Revolving Commitments represented by such Lender’s Revolving Commitment.  If the Non-Extended Revolving Commitments have terminated or expired, the Revolving Percentages shall be determined based on the Extended Revolving Commitments then in effect.  If all Revolving Commitments have terminated or expired, the Revolving Percentages shall be determined based upon the Revolving Commitments most recently in effect, giving effect to any assignments.”
(d)Section 1.01 of the Credit Agreement is amended by inserting the following new definitions in the appropriate order:
““Additional Senior Secured Notes” means any senior secured notes offered and issued by the Borrower that (x) constitute “Permitted Capital Markets Indebtedness” and (y) are in addition to the $300,000,000 of 6.375% Senior Secured Notes due 2025 issued pursuant to the indenture dated August 18, 2020.
“Allocated Amount” has the meaning assigned to it in Section 2.11(c).
“Amendment No. 3” means Amendment No. 3 to Amended and Restated Credit Agreement, dated as of October 14, 2020, among the Borrower, the other Loan Parties party thereto, the Administrative Agent and the Lenders party thereto.  
“Amendment No. 3 Effective Date” means the “Amendment Effective Date” as defined in Amendment No. 3.  
“Extended Loans” means all Revolving Loans made by an Extending Lender to the Borrower pursuant to Section 2.01 (whether such Revolving Loan was made prior to, on or after the Amendment No. 3 Effective Date).  
“Extended Revolving Commitments” means the Revolving Commitment of any Extending Lender.  
“Extended Revolving Maturity Date” means February 28, 2024.  
“Extending Lender” has the meaning assigned to such term in Amendment No. 3.  
“Initial Revolving Maturity Date” means February 28, 2022.  
“Non-Extended Loans” means all Revolving Loans made by a Non-Extending Lender to the Borrower pursuant to Section 2.01 (whether such Revolving Loan was made prior to, on or after the Amendment No. 3 Effective Date).  
5

“Non-Extended Revolving Commitments” means the Revolving Commitment of any Non-Extending Lender.  
“Non-Extending Lender” has the meaning assigned to such term in Amendment No. 3.” 
(e)Section 2.01 of the Credit Agreement is restated in its entirety to read as follows:
    “Commitments.  Subject to the terms and conditions set forth herein, each Lender severally agrees to make Revolving Loans to the Borrower from time to time in U.S. Dollars during the applicable Availability Period in an aggregate principal amount that will not result (after giving effect to any application of proceeds of such Borrowing pursuant to Section 2.10) in (a) such Lender’s Revolving Credit Exposure exceeding such Lender’s Revolving Commitment or (b) the sum of the total Revolving Credit Exposures exceeding the total Revolving Commitments.  Within the foregoing limits and subject to the terms and conditions set forth herein, the Borrower may borrow, prepay and reborrow Revolving Loans.  For the avoidance of doubt, with respect to any borrowing of Revolving Loans during the period in which both the Non-Extended Revolving Commitments and the Extended Revolving Commitments are in effect, the Non-Extended Revolving Commitments and the Extended Revolving Commitments shall be utilized ratably for such borrowing.”

(f)Section 2.09(a) of the Credit Agreement is restated in its entirety to read as follows:
    “(a) Unless previously terminated, (i) the Non-Extended Revolving Commitments shall terminate on the Initial Revolving Maturity Date and (ii) the Extended Revolving Commitments shall terminate on the Extended Revolving Maturity Date.”
(g)Section 2.10(a) of the Credit Agreement is restated in its entirety to read as follows:
    “(a) The Borrower hereby unconditionally promises to pay (i) to the Administrative Agent for the account of each Non-Extending Lender, the then unpaid principal amount of each Non-Extended Loan on the Initial Revolving Maturity Date, (ii) to the Administrative Agent for the account of each Extending Lender, the then unpaid principal amount of each Extended Loan on the Extended Revolving Maturity Date and (iii) to the Administrative Agent for the account of the Swingline Lenders the then unpaid principal amount of each Swingline Loan on the earlier of the Extended Revolving Maturity Date and the fifth Business Day after such Swingline Loan is made; provided that (x) on each date that a Revolving Borrowing is made, the Borrower shall repay all Swingline Loans then outstanding and the proceeds of any such Revolving Borrowing shall be applied by the Administrative Agent to repay any Swingline Loans outstanding and (y) on 
6

the Initial Revolving Maturity Date, the Swingline Exposure (if any) of any Non-Extending Lender shall, so long as the Extended Revolving Commitments remain outstanding, be reallocated among the Extending Revolving Lenders in accordance with their respective Revolving Percentages (determined after giving effect to the termination of the Non-Extending Revolving Commitments) up to an aggregate amount not to exceed the Extended Revolving Commitment of such Extending Lender (it being understood that the participating interests of the Non-Extending Lenders therein shall be correspondingly released and terminated).”
(h)Section 2.11(b) of the Credit Agreement is hereby amended to replace each reference therein to “Applicable Percentage” with “Allocated Amount”. 

(i)Section 2.11(c) of the Credit Agreement is restated in its entirety to read as follows:
“(c)    Notice; Manner of Payment. Upon the occurrence of any Mandatory Prepayment Event, the Borrower shall promptly deliver notice thereof to the Administrative Agent and upon receipt of such notice, the Administrative Agent shall promptly so notify the Lenders.  Unless otherwise agreed by the Borrower and the Required Lenders after the Amendment Effective Date, “Allocated Amount” shall mean the amount that is required to be applied to a prepayment of the Loans as set forth below in this subsection (c) with respect to the specified Mandatory Prepayment Event.
Unless otherwise agreed by the Borrower and the Required Lenders after the Amendment Effective Date, the Net Cash Proceeds of any Mandatory Prepayment Event shall be applied to the prepayment of the loans under the Credit Facilities as follows:
(a)    if the aggregate Revolving Credit Exposure immediately prior to the application of such Net Cash Proceeds on the applicable Net Cash Proceeds Receipt Date is equal to or less than $350,000,000, (i) until the loans (if any) under the Wells Fargo Credit Agreement and the KeyBank 2015 Credit Agreement have been repaid in full on the Amendment No. 3 Effective Date, 100% of such Net Cash Proceeds shall be applied to the loans outstanding under the Wells Fargo Credit Agreement and the KeyBank 2015 Credit Agreement, on a pro rata basis, and (ii) thereafter, 50% of such Net Cash Proceeds shall be applied to the prepayment of any Loans (without a corresponding permanent reduction of the Revolving Commitments, and without any requirement to apply any amount to the loans outstanding under each of the other Credit Facilities) until the outstanding amount of the Loans is reduced to zero, with any remaining portion of such Net Cash Proceeds being retained by the Borrower; and 
7

(b)    if the aggregate Revolving Credit Exposure immediately prior to the application of such Net Cash Proceeds on the applicable Net Cash Proceeds Receipt Date is greater than $350,000,000, (i) until the loans (if any) outstanding under the Wells Fargo Credit Agreement and the KeyBank 2015 Credit Agreement have been repaid in full on the Amendment No. 3 Effective Date, 100% of such Net Cash Proceeds shall be applied to the loans outstanding under the Wells Fargo Credit Agreement and the KeyBank 2015 Credit Agreement, on a pro rata basis, and (ii) thereafter, 100% of such Net Cash Proceeds shall be applied on a pro rata basis to Loans and the loans outstanding under each of the other Credit Facilities (without a corresponding permanent reduction of the Revolving Commitments);
provided that, notwithstanding the foregoing, if (i) the aggregate Net Cash Proceeds received from the incurrence of all Indebtedness secured by a Lien on any Unencumbered Property after the Amendment Effective Date exceeds $250,000,000 (such Net Cash Proceeds in excess of $250,000,000, the “Excess Lien Proceeds”) or (ii) the aggregate Net Cash Proceeds received from all Asset Dispositions after the Amendment Effective Date exceeds $500,000,000 (such Net Cash Proceeds in excess of $500,000,000, the “Excess Sale Proceeds”), then, in each case, 100% of such Excess Lien Proceeds and Excess Sale Proceeds shall be applied first only to the prepayment of the term loans outstanding under the Credit Facilities (and not to the Loans) on a pro rata basis until such term loans are paid in full and thereafter to the prepayment of any Loans (without any corresponding reduction of the Revolving Commitments).  
    In addition, notwithstanding anything to the contrary herein, the Borrower may apply a portion of the Net Cash Proceeds otherwise required to make prepayments pursuant to Section 2.11(b)(iii) to repay a ratable portion of Permitted Capital Markets Indebtedness that is secured by liens on a pari passu basis with the Obligations in respect of which a prepayment (or offer of prepayment) is required to be made with such Net Cash Proceeds pursuant to the terms of such Permitted Capital Markets Indebtedness (determined on the basis of the aggregate outstanding principal amount of the Loans, the outstanding term loans under the other Credit Facilities and the outstanding Permitted Capital Markets Indebtedness at such time).
    Each prepayment shall be accompanied by any amount required to be paid pursuant to Section 2.16.”
(j)Section 2.21 of the Credit Agreement is restated in its entirety to read as follows:
8

    “Section 2.21.  Extension of Non-Extending Revolving Commitments.  From time to time after the date hereof and prior to the Initial Revolving Maturity Date, pursuant to a written agreement between the Borrower and any Non-Extending Lender (but without the consent of any other Lender), any Non-Extending Lender may agree, in its sole discretion, to extend and convert its Non-Extending Loans and Non-Extending Revolving Commitments into Extended Loans and Extended Revolving Commitments, respectively, having the terms set forth herein (each such extension and conversion, a “Subsequent Extension”), subject to satisfaction of the following conditions:  (i) no Default or Event of Default has occurred and is continuing as of the effective date of such Subsequent Extension; (ii) the representations and warranties made or deemed made by the Borrower in any Loan Document shall be true and correct in all material respects (other than any representation or warranty qualified as to “materiality”, “Material Adverse Effect” or similar language, which shall be true and correct in all respects) as of the effective date of such Subsequent Extension, except to the extent that such representations and warranties expressly relate solely to an earlier date (in which case such representations and warranties shall have been true and correct in all material respects (other than any representation or warranty qualified as to “materiality”, “Material Adverse Effect” or similar language, which shall be true and correct in all respects) on and as of such earlier date), (iii) the Amendment No. 3 Effective Date shall have occurred; and (iv) the Borrower shall have paid to such Non-Extending Lender any extension fee (if any) as may be agreed between the Borrower and such Non-Extending Lender. 
(k)A new Section 2.22 is added to the Credit Agreement as follows:
    “Section 2.22.  Reallocation of Participations on the Initial Revolving Maturity Date.  On the Initial Revolving Maturity Date, after giving effect to the repayment of all Non-Extending Loans and the termination of all Non-Extending Revolving Commitments on such date, (a) if any Letters of Credit exist on such date, then the participations in each Letter of Credit granted to and acquired by the Non-Extending Lenders shall, so long as the Extended Revolving Commitments remain outstanding, be reallocated to the Extending Lenders in accordance with such Extending Lenders’ Revolving Percentages (determined after giving effect to the termination of the Non-Extending Revolving Commitments) up to an aggregate amount not to exceed the Extended Revolving Commitment of such Extending Lender, (b) any Swingline Exposure shall be reallocated in accordance with Section 2.10(a), and (c) the Administrative Agent shall administer any other necessary reallocation of the Revolving Credit Exposures (without regard to any minimum borrowing, pro rata borrowing and/or pro rata payment requirements contained elsewhere in this Agreement).  The Borrower shall pay any amounts required pursuant to Section 2.16 in connection with any such reallocations.”   
(l)Section 6.12(a) of the Credit Agreement is restated in its entirety to read as follows:
9

    “(a)    Leverage Ratio.  The ratio of Total Indebtedness as of such date to Consolidated EBITDA for the period of four (4) consecutive quarters then ended (subject to Section 6.12(h)) (the “Leverage Ratio”), commencing with the final fiscal quarter occurring during the Covenant Waiver Period (which shall in no event be later than the fiscal quarter ending March 31, 2022) to exceed 6.0 to 1.0; provided that the Leverage Ratio may exceed 6.0 to 1.0 during the Permitted Variations Period (which shall in no event be later than the fiscal quarter ending March 31, 2023), so long as the Leverage Ratio does not exceed (i) 8.50 to 1.00 as at the end of the final fiscal quarter occurring during the Covenant Waiver Period (which shall in no event be later than the fiscal quarter ending March 31, 2022) and the next fiscal quarter thereafter, (ii) 8.00 to 1.00 as at the end of each of the subsequent two fiscal quarters thereafter, (iii) 7.50 to 1.00 as at the end of the subsequent fiscal quarter thereafter (which shall in no event be later than the fiscal quarter ending March 31, 2023) (each of the foregoing clauses (i) – (iii), a “Permitted Leverage Variation”); provided further that (x) the Leverage Ratio may exceed 6.0 to 1.0 following a Major Acquisition so long as (A) the Leverage Ratio does not exceed 6.0 to 1.0 as of the end of more than two (2) consecutive fiscal quarters following such Major Acquisition and (B) the Leverage Ratio does not exceed 6.5 to 1.0 as of any such date of determination and (y) for purposes of calculating the Leverage Ratio, not more than 25% of the aggregate Consolidated EBITDA may be attributable to assets consisting of investments in Investment Affiliates, income-producing Real Estate Assets other than hotels or similar hospitality properties, Development Properties, Unimproved Land, Real Estate Assets undergoing Major Renovations, and Mortgage Notes receivable.”
(m)Section 6.12(d) of the Credit Agreement is restated in its entirety to read as follows:
“(d)    Fixed Charge Coverage Ratio.  Commencing with the final fiscal quarter occurring during the Covenant Waiver Period (which shall in no event be later than the fiscal quarter ending March 31, 2022), for any period of four consecutive fiscal quarters of the Borrower then ended (subject to Section 6.12(h)), the ratio of Consolidated EBITDA for such period to Consolidated Fixed Charges for such period to be less than 1.50 to 1.0.”

(n)Section 6.12(f) of the Credit Agreement is restated in its entirety to read as follows:
“(f)    Unsecured Interest Coverage Ratio.  Commencing with the final fiscal quarter occurring during the Covenant Waiver Period (which shall in no event be later than the fiscal quarter ending March 31, 2022), the ratio of Unencumbered Adjusted Net Operating Income for any period of four consecutive fiscal quarters of the Company then ended to Unsecured Interest Expense for such period (subject to Section 6.12(h)) to be less than 2.0 to 1.0; provided that such ratio may be less than 2.0 to 1.0 during the Permitted 
10

Variations Period, so long as such ratio is not less than 1.60 to 1.0 (the “Permitted Unsecured Interest Coverage Variation” and, together with the Permitted Leverage Variation, the “Permitted Variations”).”
(o)Section 6.12(h) of the Credit Agreement is restated in its entirety to read as follows:
    “(h)    Annualized Calculations.  For the period commencing with the final fiscal quarter occurring during the Covenant Waiver Period (which shall in no event be later than the fiscal quarter ending March 31, 2022) and the next two fiscal quarters thereafter, for the purposes of calculating the Leverage Ratio, Fixed Charge Coverage Ratio, and Unsecured Interest Coverage Ratio described in the foregoing clauses (a), (d), and (f), “Consolidated EBITDA” and “Unencumbered Adjusted Net Operating Income” shall be determined on an annualized basis as follows:
(i)    For the final fiscal quarter occurring during the Covenant Waiver Period (which shall in no event be later than the fiscal quarter ending March 31, 2022), “Consolidated EBITDA” and “Unencumbered Adjusted Net Operating Income” shall be calculated using the one (1) fiscal quarter then ended multiplied by four (4);
(ii)    For the next fiscal quarter thereafter, “Consolidated EBITDA” and “Unencumbered Adjusted Net Operating Income” shall be calculated using the two (2) fiscal quarters then ended multiplied by two (2);
(iii)    For the next fiscal quarter thereafter, “Consolidated EBITDA” and “Unencumbered Adjusted Net Operating Income” shall be calculated using the three (3) fiscal quarters then ended multiplied by four-thirds (4/3); and
(iv)    Thereafter, “Consolidated EBITDA” and “Unencumbered Adjusted Net Operating Income” shall be calculated using the four (4) fiscal quarters then ended.  
Notwithstanding that the Borrower shall make such calculations on an annualized basis for purposes of determining compliance with such financial covenants, the Borrower shall also provide calculations of such financial covenants using “Consolidated EBITDA” and “Unencumbered Adjusted Net Operating Income” for the four (4) fiscal quarters then ended in its compliance certificate delivered pursuant to Section 5.01(d).”
SECTION 2.Representations and Warranties.  In order to induce the Lenders and the Administrative Agent to enter into this Amendment, each Loan Party hereby represents and warrants that:
(a)    the execution, delivery and performance by each Loan Party of this Amendment are within each Loan Party’s corporate, partnership, limited liability company or other 
11

organizational powers and have been duly authorized by all necessary corporate, partnership, limited liability company or other organizational action.  This Amendment has been duly executed and delivered by each Loan Party party hereto and constitutes a legal, valid and binding obligation of such Loan Party, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law;
(b)    the entry by each Loan Party into this Amendment (a) does not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority, except such as have been obtained or made and are in full force and effect, (b) will not violate any applicable law or regulation or the charter, by-laws or other organizational documents of the Company, the Borrower or any of its Subsidiaries or any order, judgment or decree of any Governmental Authority, in each case to the extent such violation of applicable law or regulation or such violation of the charter, by-laws or other organizational documents of a Subsidiary could reasonably be expected to have a Material Adverse Effect, (c) will not violate or result in a default under any indenture, agreement or other instrument binding upon the Company, the Borrower or any of its Subsidiaries or its assets, or give rise to a right thereunder to require any payment to be made by the Company, the Borrower or any of its Subsidiaries, in each case to the extent that such violation or default could reasonably be expected to have a Material Adverse Effect, and (d) will not result in the creation or imposition of any Lien on any asset of the Company, the Borrower or any of its Subsidiaries (other than Liens arising under the Loan Documents);
(c)    there are no actions, suits or proceedings by or before any arbitrator or Governmental Authority pending against or, to the knowledge of the Borrower, threatened in writing against the Company, the Borrower or any of its Subsidiaries that involve this Amendment; 
(d)    the representations and warranties of the Borrower set forth in Article III of the Amended Credit Agreement are and shall be true and correct in all material respects (other than any representation or warranty qualified as to “materiality”, “Material Adverse Effect” or similar language, which shall be true and correct in all respects) on and as of the Amendment Effective Date (except to the extent that any such representation and warranty expressly relates to an earlier date, in which case such representation and warranty shall be true and correct in all material respects (other than any representation or warranty qualified as to “materiality”, “Material Adverse Effect” or similar language, which shall be true and correct in all respects) as of such earlier date); and
(e)    no Default or Event of Default has occurred and is continuing, or would result from the entering into of this Amendment by any Loan Party.
SECTION 3.Extension of Revolving Commitments.  As evidenced by its signature hereto, each Extending Lender hereby (i) consents and agrees to the extension of the Revolving Maturity Date applicable to its existing Loans and existing Revolving Commitments to February 28, 2024, (ii) agrees that, on and after the Amendment Effective Date, its Loans and 
12

Revolving Commitments shall constitute Extended Loans and Extended Revolving Commitments, (iii) acknowledges that the Non-Extending Loans shall be repaid in full and the Non-Extending Revolving Commitments shall terminate in full on the Initial Revolving Maturity Date and (iv) expressly waives any right it may have to share in any payment made to any Non-Extending Lender on the Initial Revolving Maturity Date (including, without limitation, any right to purchase a participation in any such payment) pursuant to Section 2.18(c) of the Credit Agreement. 
SECTION 4.Reaffirmation of Guaranty.  Each of the undersigned Guarantors has read this Amendment and consents to the terms hereof and further hereby confirms and agrees that, notwithstanding the effectiveness of this Amendment, the obligations of such Guarantor under each of the Loan Documents to which such Guarantor is a party shall not be impaired and each of the Loan Documents to which such Guarantor is a party is, and shall continue to be, in full force and effect and is hereby confirmed and ratified in all respects.
The Company hereby acknowledges and agrees that the “Guarantied Obligations” under, and as defined in, the Amended and Restated Parent Guaranty dated as of January 11, 2018, by the Company in favor of the Administrative Agent (the “Parent Guaranty”) will include all Obligations under, and as defined in, the Amended Credit Agreement.
Each of the undersigned Subsidiary Guarantors hereby acknowledges and agrees that the “Guarantied Obligations” under, and as defined in, the Amended and Restated Subsidiary Guaranty dated as of January 11, 2018, as supplemented by the Joinders thereto, by the Subsidiary Guarantors in favor of the Administrative Agent (the “Subsidiary Guaranty”, and together with the Parent Guaranty, the “Guaranties”) will include all Obligations under, and as defined in, the Amended Credit Agreement.
SECTION 5.Conditions of Effectiveness.  This Amendment shall become effective as of the first date (the “Amendment Effective Date”) on which, and only if, each of the following conditions precedent shall have been satisfied (or waived by the Required Lenders):
(a)    The Administrative Agent shall have received, in form and substance satisfactory to the Administrative Agent, counterparts of this Amendment executed by each of the Loan Parties, each of the Extending Lenders, Lenders (including the Extending Lenders) that constitute the Required Lenders and the Administrative Agent.
(b)    All loans and other obligations owing by the Borrower under the KeyBank 2015 Credit and the Wells Fargo Credit Agreement shall have been, or substantially concurrently with the Amendment Effective Date shall be, paid in full.
(c)    Since September 28, 2020 and on or prior to the Amendment Effective Date, the Borrower and its Subsidiaries shall have received Net Cash Proceeds in an aggregate amount of no less than $95,000,000 from one or more Asset Dispositions, issuances of Equity Interests, Debt Issuances (including any issuance of Additional Senior Secured Notes (as defined in Section 1)) and/or other Mandatory Prepayment Events.
13

(d)    The Administrative Agent shall have received, in form and substance satisfactory to the Administrative Agent, an amendment to each of the KeyBank 2017 Credit Agreement and the PNC Bank Credit Agreement, it being understood that, in each case, any such amendment that is in substantially the same form as this Amendment or otherwise substantially consistent with the summary of amendment terms previously approved by the Administrative Agent shall be deemed satisfactory.
(e)    The Administrative Agent shall have received a favorable written opinion (addressed to the Administrative Agent and the Lenders and dated the Amendment Effective Date) of Latham & Watkins LLP, counsel for the Borrower and the other Loan Parties and Venable LLP, special Maryland counsel to the Company, in each case, in form and substance reasonably acceptable to the Administrative Agent and covering such other matters relating to the Loan Parties and this Amendment as the Required Lenders shall reasonably request.  The Borrower hereby requests such counsel to deliver such opinion.
(f)    The Administrative Agent shall have received the following items from the Borrower:
(i)    Certificates of good standing for the Borrower and the Company from the states of organization of such Person, certified by the appropriate governmental officer and dated not more than thirty (30) days prior to the Amendment Effective Date;
(ii)    Copies of the formation documents of the Borrower and the Company certified by an officer of such Person, together with all amendments thereto;
(iii)    Incumbency certificates, executed by officers of the Borrower and the Company, which shall identify by name and title and bear the signature of the Persons authorized to sign the Loan Documents on behalf of such Person, upon which certificate the Administrative Agent and the Lenders shall be entitled to rely until informed of any change in writing by the Borrower; and
(iv)    Copies, certified by a Secretary or an Assistant Secretary of the Borrower and the Company of the resolutions (and resolutions of other bodies, if any are reasonably deemed necessary by counsel for the Administrative Agent) authorizing the transactions contemplated by this Amendment, and the execution, delivery and performance of the Loan Documents to be executed and delivered by such Persons.
(g)    (i) The extension fees and the other fees separately agreed by the Administrative Agent and the Borrower, and (ii) to the extent invoiced to the Borrower at least one (1) Business Day prior to the Amendment Effective Date, all of the reasonable out-of-pocket expenses of the Administrative Agent (including the reasonable fees and expenses of one  firm of counsel for the Administrative Agent) due and payable on the Amendment Effective Date shall have been paid in full.
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SECTION 6.Reference to and Effect on the Credit Agreement, the Notes and the other Loan Documents.    (a)    This Amendment is a Loan Document.  On and after the effectiveness of this Amendment, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Credit Agreement, and each reference in the Notes and each of the other Loan Documents to “the Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement, shall mean and be a reference to the Amended Credit Agreement.  
(b)    The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of any Lender or the Administrative Agent under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents.
(c)    This Amendment shall not extinguish the obligations for the payment of money outstanding under the Credit Agreement.  Nothing herein contained shall be construed as a substitution or novation of the obligations outstanding under the Credit Agreement, which shall remain in full force and effect, except to any extent modified by this Amendment.  Nothing implied in this Amendment or in any other document contemplated hereby shall be construed as a release or other discharge of any of the Loan Parties from the Loan Documents, as modified by this Amendment.
SECTION 7.Ratification.  Except as modified by this Amendment and the transactions contemplated hereby, the Credit Agreement and each of the other Loan Documents (including the Collateral Documents) are and shall continue to be in full force and effect and are hereby in all respects ratified and confirmed.  Except as expressly provided in this Amendment, the execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of any Lender or the Administrative Agent under the Credit Agreement or any of the other Loan Documents, nor constitute a waiver of any provision of the Credit Agreement or any of the other Loan Documents.  
SECTION 8.Costs and Expenses.  The Borrower agrees to pay, promptly after receipt of a demand therefore, all reasonable out-of-pocket costs and expenses of the Administrative Agent in connection with the preparation, execution, delivery and administration, modification and amendment of this Amendment and the other instruments and documents to be delivered hereunder (including, without limitation, the reasonable fees and expenses of one firm of counsel for the Administrative Agent) in accordance with the terms of Section 9.03 of the Credit Agreement.
SECTION 9.Execution in Counterparts.  This Amendment may be executed in any number of counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute but a single contract.  Delivery of an executed counterpart of a signature page of this Amendment by telecopy, emailed pdf. or any other electronic means that reproduces an image of the actual executed signature page shall be effective as delivery of a manually executed counterpart of this Amendment.  The words “execution,” “signed,” “signature,” “delivery,” and words of like import in or relating to this Amendment and/or any document to be signed in connection with 
15

this Amendment and the transactions contemplated hereby shall be deemed to include Electronic Signatures (as defined below), deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be.  As used herein, “Electronic Signatures” means any electronic symbol or process attached to, or associated with, any contract or other record and adopted by a person with the intent to sign, authenticate or accept such contract or record.
SECTION 10.Governing Law.  This Amendment shall be governed by, and construed in accordance with, the laws of the State of New York.
[Balance of page intentionally left blank.]

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by their respective officers thereunto duly authorized as of the date first written above.
XHR LP

By:    XHR GP, Inc.,
its general partner

By: /s/ Taylor C. Kessel    
    Name: Taylor C. Kessel
Title: Senior Vice President, General Counsel and Secretary

[Signature Page – Amendment No. 3 to XHR Revolving Credit Agreement]
DB3/ 203498901.8

PARENT GUARANTOR: 

XENIA HOTELS & RESORTS, INC.,
as a Guarantor

By: /s/ Taylor C. Kessel    
Name: Taylor C. Kessel
Title: Senior Vice President, General Counsel and Secretary

[Signature Page – Amendment No. 3 to XHR Revolving Credit Agreement]
DB3/ 203498901.8

SUBSIDIARY GUARANTORS: 

IA LODGING KEY WEST, L.L.C.
IA LODGING SALT LAKE CITY, L.L.C.
IA LODGING ALEXANDRIA KING, L.L.C.
IA LODGING NAPA SOLANO, L.L.C.
IA LODGING SAN DIEGO, L.L.C.
IA LODGING SAVANNAH BARNARD, L.L.C.
IA LODGING CHICAGO WABASH, L.L.C.
XHR BOSTON COMMONWEALTH LLC
XHR PORTLAND LLC
XHR SANTA BARBARA LLC
XHR ORLANDO CYPRESS LLC
XHR PHOENIX PALMS LLC
XHR SCOTTSDALE RANCH LLC
XHR CARLSBAD LLC
XHR PITTSBURGH MARKET LLC
IA LODGING CELEBRATION, L.L.C.
IA LODGING SAVANNAH, L.L.C.
XHR CHARLESTON MEETING LLC
XHR MOUNTAIN BROOK LLC
IA LODGING SANTA CLARA, L.L.C.
IA LODGING NEW ORLEANS, L.L.C.
IA LODGING CHARLESTON LEE, L.L.C.
XHR DENVER CURTIS LLC
XHR ATLANTA PEACHTREE LLC
IA LODGING DENVER CHAMPA, L.L.C.
XHR PORTLAND OCC LLC, each as a Guarantor

By:    XHR LP, the sole member of each of the foregoing limited liability companies

By:    XHR GP, Inc., its general partner

By: /s/ Taylor C. Kessel    
    Name: Taylor C. Kessel
Title: Senior Vice President, General Counsel and Secretary

[Signature Page – Amendment No. 3 to XHR Revolving Credit Agreement]
DB3/ 203498901.8

IA LODGING DALLAS AKARD GP, L.L.C.
IA LODGING DALLAS AKARD LP, L.L.C.
IA LODGING AUSTIN ARBORETUM GP, L.L.C.
IA LODGING AUSTIN ARBORETUM LP, L.L.C.
IA LODGING WOODLANDS GP, L.L.C.
IA LODGING WOODLANDS LP, L.L.C.
IA LODGING HOUSTON GALLERIA GP, L.L.C.
IA LODGING HOUSTON GALLERIA LP, L.L.C.
IA LODGING HOUSTON OAKS GP, L.L.C.
IA LODGING HOUSTON OAKS LP, L.L.C., each as a Guarantor

By:    XHR LP, the sole member of each of the foregoing limited liability companies

By:    XHR GP, Inc., its general partner

By: /s/ Taylor C. Kessel    
    Name: Taylor C. Kessel
Title: Senior Vice President, General Counsel and Secretary

[Signature Page – Amendment No. 3 to XHR Revolving Credit Agreement]
DB3/ 203498901.8

IA LODGING AUSTIN ARBORETUM LP, as a Guarantor

By:    IA Lodging Austin Arboretum GP, L.L.C., its general partner
By:    XHR LP, its sole member
By:    XHR GP, Inc., its general partner

By: /s/ Taylor C. Kessel    
    Name: Taylor C. Kessel
Title: Senior Vice President, General Counsel and Secretary

IA LODGING WOODLANDS LP, as a Guarantor

By:    IA Lodging Woodlands GP, L.L.C., its general partner
By:    XHR LP, its sole member
By:    XHR GP, Inc., its general partner

By: /s/ Taylor C. Kessel    
    Name: Taylor C. Kessel
Title: Senior Vice President, General Counsel and Secretary

IA LODGING DALLAS AKARD LP, as a Guarantor

By:    IA Lodging Dallas Akard GP, L.L.C., its general partner
By:    XHR LP, its sole member
By:    XHR GP, Inc., its general partner

By: /s/ Taylor C. Kessel    
    Name: Taylor C. Kessel
Title: Senior Vice President, General Counsel and Secretary

[Signature Page – Amendment No. 3 to XHR Revolving Credit Agreement]
DB3/ 203498901.8

IA LODGING HOUSTON GALLERIA LP, as a Guarantor

By:    IA Lodging Houston Galleria GP, L.L.C., its general partner
By:    XHR LP, its sole member
By:    XHR GP, Inc., its general partner

By: /s/ Taylor C. Kessel    
    Name: Taylor C. Kessel
Title: Senior Vice President, General Counsel and Secretary

IA LODGING HOUSTON OAKS LP, as a Guarantor

By:    IA Lodging Houston Oaks GP, L.L.C., its general partner
By:    XHR LP, its sole member
By:    XHR GP, Inc., its general partner

By: /s/ Taylor C. Kessel    
    Name: Taylor C. Kessel
Title: Senior Vice President, General Counsel and Secretary

[Signature Page – Amendment No. 3 to XHR Revolving Credit Agreement]
DB3/ 203498901.8

ADMINISTRATIVE AGENT AND LENDERS: 

JPMORGAN CHASE BANK, N.A.,
as Administrative Agent and as a Lender 

By: /s/ Christian Lunt    
Name: Christian Lunt
Title: Executive Director

[Signature Page – Amendment No. 3 to XHR Credit Agreement]
DB3/ 203498901.8

WELLS FARGO BANK, NATIONAL ASSOCIATION, as a Lender 

By: /s/ Shahin Shariff    
    Name: Shahin Shariff
    Title:   Vice President

[Signature Page – Amendment No. 3 to XHR Credit Agreement]
DB3/ 203498901.8

KEYBANK NATIONAL ASSOCIATION, as a Lender

By: /s/ Thomas Z. Schmitt    
    Name: Thomas Z. Schmitt
    Title: Vice President

[Signature Page – Amendment No. 3 to XHR Credit Agreement]
DB3/ 203498901.8

BANK OF AMERICA, N.A., as a Lender

By: /s/ Jack Redhead    
    Name: Jack Redhead
    Title: Senior Vice President

[Signature Page – Amendment No. 3 to XHR Credit Agreement]
DB3/ 203498901.8

CITIBANK, N.A., as a Lender 

By: /s/ Christopher J. Albano    
    Name: Christopher J. Albano
    Title: Authorized Signatory

[Signature Page – Amendment No. 3 to XHR Credit Agreement]
DB3/ 203498901.8

CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK, as a Lender 

By: /s/ David Bowers    
    Name: David Bowers
    Title: Managing Director

/s/ Adam Jenner
    Adam Jenner
    Director

[Signature Page – Amendment No. 3 to XHR Credit Agreement]
DB3/ 203498901.8

FIFTH THIRD BANK, NATIONAL ASSOCIATION, as a Lender

By: /s/ James Beltz    
    Name: James Beltz
    Title: Vice President

[Signature Page – Amendment No. 3 to XHR Credit Agreement]
DB3/ 203498901.8

GOLDMAN SACHS BANK USA, as a Lender

By: /s/ Thomas Manning    
    Name: Thomas Manning
    Title: Authorized Signatory

[Signature Page – Amendment No. 3 to XHR Credit Agreement]
DB3/ 203498901.8

MORGAN STANLEY BANK, N.A., as a Lender

By: /s/ Michael King    
    Name: Michael King
    Title: Authorized Signatory

[Signature Page – Amendment No. 3 to XHR Credit Agreement]
DB3/ 203498901.8

RAYMOND JAMES BANK, N.A., as a Lender

By: /s/ Matt Stein    
    Name: Matt Stein
    Title: Senior Vice President

[Signature Page – Amendment No. 3 to XHR Credit Agreement]
DB3/ 203498901.8

BMO HARRIS BANK, N.A., as a Lender 

By: /s/ Gwendolyn Gatz    
    Name: Gwendolyn Gatz
    Title: Director

[Signature Page – Amendment No. 3 to XHR Credit Agreement]
DB3/ 203498901.8

PNC BANK, NATIONAL ASSOCIATION, as a Lender

By: /s/ Andrew T. White    
    Name: Andrew T. White
    Title: Senior Vice President

[Signature Page – Amendment No. 3 to XHR Credit Agreement]
DB3/ 203498901.8

REGIONS BANK, as a Lender 

By: /s/ Ghi S. Gavin    
    Name: Ghi S. Gavin
    Title: Senior Vice President

:
[Signature Page – Amendment No. 3 to XHR Credit Agreement]
DB3/ 203498901.8

Annex I

SCHEDULE 2.01A

LENDERS; COMMITMENTS

Non-Extended Revolving Commitments

						
	Non-Extending Lender Name	Non-Extended Revolving Commitment

	U.S. Bank National Association

	$43,000,000.00
	TD Bank, N.A.

	$30,000,000.00
		
	TOTAL:	$73,000,000.00

Extended Revolving Commitments

						
	Extending Lender Name	Extended Revolving Commitment

	JPMorgan Chase Bank, N.A.

	$58,000,000.00
	Wells Fargo Bank, National Association

	$58,000,000.00
	KeyBank National Association

	$58,000,000.00
	Citibank, N.A.

	$43,000,000.00
	Bank of America, N.A.

	$30,000,000.00
	BMO Harris Bank, N.A.

	$30,000,000.00
	Credit Agricole Corporate and Investment Bank

	$30,000,000.00
	Fifth Third Bank, an Ohio banking corporation

	$30,000,000.00
	PNC Bank, National Association

	$30,000,000.00
	Regions Bank

	$30,000,000.00
	Goldman Sachs Bank USA

	$10,000,000.00
	Morgan Stanley Bank, N.A.

	$10,000,000.00
	Raymond James Bank, N.A.	$10,000,000.00
		
	TOTAL:	$427,000,000.00

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