Document:

Exhibit 10.4

 

SERVICING AGREEMENT

 

among

 

CONN’S RECEIVABLES FUNDING 2022-A, LLC,

AS ISSUER,

 

CONN’S RECEIVABLES 2022-A TRUST,

AS RECEIVABLES TRUST,

 

CONN APPLIANCES, INC.,

AS SERVICER,

 

and

 

COMPUTERSHARE TRUST COMPANY, NATIONAL ASSOCIATION,

AS TRUSTEE

 

 

 

DATED AS OF JULY 21, 2022

 

     

     

    

 

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	 	7	 
	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	 	19	 
	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	 	26	 
	 	 	 	 	 
	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	 	34	 
	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 July 21, 2022 (the “Agreement”) by and among CONN’S RECEIVABLES FUNDING 2022-A, LLC, a Delaware
limited liability company, as issuer (the “Issuer”), CONN’S RECEIVABLES 2022-A TRUST, a Delaware statutory
trust, as receivables trust (the “Receivables Trust”), CONN APPLIANCES, INC., a Texas corporation (“Conn
Appliances”), as initial Servicer, and COMPUTERSHARE TRUST COMPANY, 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 July 21, 2022 between the Depositor and the Receivables
Trust;

 

WHEREAS, the Issuer is entering
into a Base Indenture and a supplement thereto, each dated as of July 21, 2022 (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 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 2022-A Notes and the aggregate unpaid principal, if any, of all of the outstanding Series 2022-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 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.

 

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(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.

 

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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 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 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.

 

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(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 2022-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 2022-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 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.

 

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

 

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(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 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.

 

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(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 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.

 

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

 

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(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 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.

 

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(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 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.

 

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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 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.

 

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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 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.

 

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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.

 

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

 

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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.

 

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(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 contemplated by this Agreement or any other Servicer Transaction Document.

 

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(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 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.

 

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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 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.

 

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

 

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(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.

 

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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), 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 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.

 

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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 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.

 

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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.

 

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(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 2022-A Notes and the aggregate unpaid Note Principal, if any, of all of the outstanding Series 2022-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.

 

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(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 Receivables on the date on which the Optional Purchase will occur over the accrued and unpaid interest then due on the Series 2022-A
Notes and the aggregate unpaid principal, if any, of all of the outstanding Series 2022-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 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.

 

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(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 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).

 

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(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 Street, Wilmington, Delaware 19890, Attention: Corporate Trust Administration
 – Conn’s Receivables 2022-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.

 

    32

     

    

 

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. This Agreement shall be valid, binding and enforceable
against a party only when executed and delivered by an authorized individual on behalf of the party by means of (i) any electronic
signature permitted by the federal Electronic Signatures in Global and National Commerce Act, state enactments of the Uniform Electronic
Transactions Act and/or any other relevant electronic signatures law, including the relevant provisions of the UCC; (ii) an original
manual signature; or (iii) a faxed, scanned, or photocopied manual signature. Each electronic signature or faxed, scanned, or photocopied
manual signature shall for all purposes have the same validity, legal effect, and admissibility in evidence as an original manual signature.
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.

 

    33

     

    

 

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.

 

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.

 

    34

     

    

 

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
    2022-A, LLC,
 as Issuer
	 	 
	 	By:	 /s/ George Bchara
	 	Name: George Bchara
	 	Title:   President
	 	 
	 	CONN’S RECEIVABLES 2022-A
    TRUST,
 as Receivables Trust
	 	 
	 	By: Wilmington Trust, National Association,
    not in its individual capacity but solely as Receivables Trust Trustee
	 	 
	 	By:	 /s/ Patrick A.  Kanar
	 	Name: Patrick A.  Kanar
	 	Title: Assistant Vice President
	 	 
	 	CONN APPLIANCES, INC.,

    as Servicer
	 	 
	 	By:	/s/ George Bchara                      
	 	Name: George Bchara
	 	Title:   Chief Financial Officer
	 	 
	 	COMPUTERSHARE TRUST COMPANY,
    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

 

[ATTACHED]

 

    	 	A-1-1	Servicing Agreement

     

    

 

Exhibit A-2

Form of Monthly Noteholders’ Statement

 

FORM OF MONTHLY NOTEHOLDERS’ STATEMENT

 

[ATTACHED]

 

 

    	 	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 July 21, 2022 (the “Servicing Agreement”) by and among Conn Appliances,
Conn’s Receivables Funding 2022-A, LLC, as issuer, Conn’s Receivables 2022-A Trust, and Computershare Trust Company,
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- 2	Servicing Agreement

     

    

 

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

 

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

 

    
	 	B- 3	Servicing Agreement

     

    

 

Schedule 2.10(i)

Litigation

 

LITIGATION

 

None

 

    Schedule 2.10(i)-1

    

850Document

Exhibit 10.1

RESTRICTED SHARE UNIT AWARD AGREEMENT
UNDER THE APOLLO GLOBAL MANAGEMENT, INC.
2019 OMNIBUS EQUITY INCENTIVE PLAN 
    This Restricted Share Unit Award Agreement (this “RSU Award Agreement”), dated as of [Grant Date] (the “Date of Grant”), is made by and between Apollo Global Management, Inc., a Delaware corporation (the “Company”), and [Participant Name] the “Participant”).  Capitalized terms not defined herein shall have the meaning ascribed to them in the Apollo Global Management, Inc. 2019 Omnibus Equity Incentive Plan, as the same may be amended, modified or supplemented from time to time (the “Plan”).  Where the context permits, references to the Company shall include any successor to the Company.  

1.    Grant of Restricted Share Units.  The Company hereby grants to the Participant [Quantity Granted] restricted share units (the “RSUs”), subject to all of the terms and conditions of this RSU Award Agreement and the Plan.  
2.    Vesting. 
(a)    Subject to the terms of the Plan and this RSU Award Agreement, the RSUs shall vest (and the Restricted Period, as defined below, will lapse) with respect to one-third (1/3) of the Award on December 31 of each of [2022], [2023] and [2024], provided the Participant remains in continuous employment or service with the Company and its Affiliates through each such vesting date.  Notwithstanding the foregoing, subject to the Participant’s (or the Participant’s personal representative’s) execution and non-revocation of a general release of claims (which shall include customary carve-outs for indemnification and vested compensatory payments), unless such release requirement is waived by the Company in its sole discretion, upon the Participant’s Termination (as defined in Section 5(c)) due to death or by the Company and its Affiliates by reason of Disability, the Participant shall also vest in 100% of the unvested RSUs that remain subject to the Award as of such Termination date.
(b)    For purposes of the Award, the Participant shall be deemed to be in continuous employment or service (and not to have experienced a Termination) until such time as the Participant dies or otherwise experiences a “separation from service” (as such term is defined in Treasury Regulation §1.409A-1(h)(1)) or, if earlier, upon the Participant providing or receiving notice that his or her employment or service with the Company and its Affiliates will terminate.  Notwithstanding the foregoing, fractional RSUs shall not be deemed vested until they accumulate to equal one whole Share. 
3.    Form, Manner and Timing of Payment.  Except as otherwise provided in the Plan, each RSU granted hereunder shall represent the right to receive one (1) Share provided that the RSU becomes vested in accordance with Section 5(b) (Shares subject to RSUs covered by this Award, “RSU Shares”).  Subject to the terms of the Plan, for each RSU that does not terminate prior to the vesting date shown in Section 2(a) pursuant to Section 5(c), the Company, or its Subsidiaries or Affiliates, shall issue to the Participant, on the applicable issuance date set forth in Section 4, one (1) RSU Share (either by delivering one or more certificates for such shares or by entering such shares in book-entry form, as determined by the Company in its discretion).  Such issuance shall constitute payment of the RSU.  References herein to issuances to the Participant shall include issuances to any Beneficial Owner or other Person to whom (or to which) the RSU Shares are issued.  The Company’s obligation to issue RSU Shares or otherwise make any payment with respect to vested RSUs is subject to the condition precedent that the Participant or other Person entitled under the Plan to receive any RSU Shares with respect to the vested RSUs deliver to the Company any representations or other documents or assurances required pursuant to Section 15 and the Company may meet any obligation to issue RSU Shares by having one or more of its Subsidiaries or Affiliates issue the RSU Shares.  The Participant shall have no further rights with respect to any RSUs that are paid or that terminate pursuant to Section 5(c).

4.    Delivery.  One (1) RSU Share shall be issued in payment of each vested RSU not later than the 15th day of the third month after the later of the last day of the Participant’s or the Company’s fiscal year in which the RSU vests, consistent with Treasury Regulation §1.409A-1(b)(4).  Fractional RSU Shares shall not be issued (or any consideration provided therefor) but shall accumulate.
5.    Restrictions.
(a)    The RSUs may not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of or encumbered.  The transfer restrictions contained in the preceding sentence shall not apply to (a) transfers to the Company, or (b) transfers of vested RSUs by will or the laws of descent and distribution, or (c) if approved by the Administrator in its sole discretion, transfers of RSUs in accordance with the requirements of Instruction A.1. (a)(5) of Form S-8 under the Securities Act or other applicable law.  The RSUs shall be subject to a risk of forfeiture as described in Section 5(c) until the lapse of the Restricted Period (as defined below) and any additional requirements or restrictions contained in this RSU Award Agreement or in the Plan have been otherwise satisfied, terminated or expressly waived by the Company in writing.
(b)    Subject to Section 5(c), the RSU Shares subject to the RSUs shall become vested hereunder in accordance with the vesting schedule set forth in Section 2(a) (the “Restricted Period”).
(c)    Except as otherwise provided under the terms of the Plan, or in the vesting schedule set forth in Section 2(a), if the Participant’s employment or service terminates for any reason (a “Termination”), then all rights of the Participant with respect to RSUs that have not vested shall immediately be forfeited without payment of any consideration, and neither the Participant nor any of his or her successors, heirs, assigns, or personal representatives shall thereafter have any further rights or interests in such RSUs.  Employment or service for only a portion of a vesting period, even if a substantial portion, will not entitle the Participant to any proportionate vesting or avoid or mitigate a termination of rights and benefits upon a Termination.
6.    Voting and Other Rights; Dividend Equivalents.  The Participant shall have no rights of a shareholder (including voting rights and the right to dividends or distributions), and will not be treated as an owner of Shares for tax purposes, except with respect to RSU Shares that have been issued.  Notwithstanding the foregoing, the Participant shall accrue rights to dividend equivalents from the Company or its Subsidiaries or Affiliates on the RSUs, whether or not vested, at the time of an ordinary cash dividend on Shares.  Any dividend equivalent so accrued in respect of a RSU shall have the same value as the ordinary cash dividend on an outstanding Share that gave rise to the dividend equivalent, and shall be paid not later than 30 days after such ordinary cash dividend is paid to the holders of Shares.  Rights to dividend equivalents on an RSU shall terminate upon the issuance or forfeiture of the underlying RSU Share or, if earlier, upon the Participant providing or receiving notice that his or her employment or service with the Company and its Affiliates will terminate.  Under no circumstances shall the Participant be entitled to receive (a) both a dividend and a dividend equivalent with respect to an RSU (or its associated RSU Share) or (b) any dividend or dividend equivalent with respect to a forfeited or fractional RSU.
7.    RSU Award Agreement Subject to Plan.  This RSU Award Agreement is made pursuant to all of the provisions of the Plan, which is incorporated herein by this reference, and is intended, and shall be interpreted in a manner, to comply therewith.  In the event of any conflict between the provisions of this RSU Award Agreement and the provisions of the Plan, the provisions of the Plan shall govern.
8.    No Rights to Continuation of Employment or Service.  Nothing in the Plan or this RSU Award Agreement shall confer upon the Participant any right to continue in the employ or service of the Company or any Subsidiary thereof or shall interfere with or restrict the right of the Company (or a Subsidiary or Affiliate or its shareholders, as the case may be) to terminate the Participant’s employment or service any time for any reason whatsoever, with or without Cause.  The Plan and this RSU Award Agreement shall not (a) form any part of any contract of employment or contract for services between the 
2

Company or any past or present Subsidiary thereof and any directors, officers or employees of those companies, (b) confer any legal or equitable rights (other than those constituting the Awards themselves) against the Company or any past or present Subsidiary thereof, directly or indirectly, or (c) give rise to any cause of action in law or in equity against the Company or any past or present Subsidiary thereof.
9.    Restrictive Covenants.  The Participant agrees that the restrictive covenants applicable to the Participant pursuant to any written arrangement with the Company or any of its Subsidiaries are incorporated herein by reference as if contained herein.  Nothing contained herein shall reduce or limit the application or scope of any restrictive covenants in favor of the Company or any of its Subsidiaries or Affiliates (for example, with respect to competition, solicitation, confidentiality, intellectual property, subsequent engagement, interference or disparagement) to which the Participant is otherwise subject.  The Participant acknowledges that the Company would not have granted this Award if the Participant had not agreed to be bound by such restrictive covenants, as the same may be amended from time to time.  Nothing in this RSU Award Agreement or any other agreement or arrangement of the Company or any of its Affiliates to which the Participant is subject will (a) prohibit the Participant from making reports of possible violations of U.S. federal law or regulation to any governmental agency or entity in accordance with Section 21F of the Securities Exchange Act of 1934, Section 806 of the Sarbanes-Oxley Act of 2002, or any other whistleblower protection provisions of U.S. federal law or regulation, or (b) require notification or prior approval by the Company or any of its Affiliates of any such reporting.
10.    Tax Withholding.  The Participant is responsible for all taxes and any tax-related penalties the Participant incurs in connection with the Award.  The Company or its Subsidiaries or Affiliates shall be entitled to require a cash payment by or on behalf of the Participant and/or to deduct, from other compensation payable to the Participant, any sums required by U.S. federal, state or local law (or by any tax authority outside of the United States) to be withheld or accounted for by the Company or its Subsidiaries or Affiliates with respect to any RSU.  The Company in its discretion may alternatively reduce the number of shares to be issued by the appropriate number of whole Shares, valued at their then Fair Market Value, or require any other available method, to satisfy any withholding or tax obligations of the Company or its Subsidiaries or Affiliates with respect to the RSUs at the applicable rates. 
11.    Section 409A Compliance.  This Award is intended to be exempt from, or comply with, Section 409A and to be interpreted in a manner consistent therewith.  Notwithstanding anything to the contrary contained in this RSU Award Agreement, to the extent that the Administrator determines that the Plan or an RSU is subject to Section 409A and fails to comply with the requirements of Section 409A, the Administrator reserves the right (without any obligation to do so or to indemnify the Participant for failure to do so), without the consent of the Participant, to amend or terminate the Plan and RSU Award Agreement and/or to amend, restructure, terminate or replace the RSU in order to cause the RSU to either not be subject to Section 409A or to comply with the applicable provisions of such section.  To the extent necessary to avoid the imposition of tax or penalty under Section 409A, any payment by the Company or any Subsidiary or Affiliate to the Participant (if the Participant is then a “specified employee” as defined in Code Section 409A(a)(2)(B)(i) and Treasury Regulation §1.409A-1(i)(1)) of “deferred compensation,” whether pursuant to the Plan or otherwise, arising solely due to a “separation from service” (and not by reason of the lapse of a “substantial risk of forfeiture”), as such terms are used in Section 409A, shall be delayed (to the extent otherwise payable prior to such date) and paid on the first day following the six-month period beginning on the date of the Participant’s separation from service under Section 409A (or, if earlier, upon the Participant’s death).  Each payment or installment due to the Participant from the Company or any of its Affiliates, whether under this RSU Award Agreement or otherwise, is intended to constitute a “separate payment” for purposes of Section 409A.  In no event shall the Company or any Subsidiary or Affiliate (or any agent thereof) have any liability to the Participant or any other Person due to the failure of the Award to satisfy the requirements of Section 409A.  
12.    Governing Law; Arbitration; Waiver of Jury Trial.  
3

(a)    This RSU Award Agreement shall be governed by, interpreted under and construed and enforced in accordance with the laws of the State of Delaware (without regard to any conflicts of laws principles thereof that would give effect to the laws of another jurisdiction), and any dispute, controversy, suit, action or proceeding (“Proceeding”) arising out of or relating to this Award or any other Award, other than the injunctive relief described below in this paragraph, will, notwithstanding anything to the contrary contained in Section 14(e) of the Plan, be settled exclusively by arbitration, conducted before a single arbitrator in New York County, New York (applying Delaware law) in accordance with, and pursuant to, the Employment Arbitration Rules and Procedures of JAMS (“JAMS”).  The decision of the arbitrator will be final and binding upon the parties hereto.  Any arbitral award may be entered as a judgment or order in any court of competent jurisdiction.  Either party may commence litigation in court to obtain injunctive relief in aid of arbitration, to compel arbitration, or to confirm or vacate an award, to the extent authorized by the U.S. Federal Arbitration Act or the New York Arbitration Act.  The arbitrator may grant interim injunctive relief and the Company or its successors or assigns may commence litigation in court to obtain injunctive relief or an order requiring specific performance to enforce, or prevent any violations of, the covenants referenced in Section 9.  The Company and the Participant will share the JAMS administrative fees, the arbitrator’s fee and expenses.  Each party shall be responsible for such party’s attorneys’ fees.  
(b)    IF THIS AGREEMENT TO ARBITRATE IS HELD INVALID OR UNENFORCEABLE THEN, TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW THAT CANNOT BE WAIVED, THE PARTICIPANT AND THE COMPANY WAIVE AND COVENANT THAT THE PARTICIPANT AND THE COMPANY WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE) ANY RIGHT TO TRIAL BY JURY IN ANY ACTION ARISING IN WHOLE OR IN PART UNDER OR IN CONNECTION WITH AN AWARD UNDER THE PLAN OR ANY MATTERS CONTEMPLATED THEREBY, WHETHER NOW OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AND AGREE THAT ANY OF THE COMPANY OR ANY OF ITS AFFILIATES OR THE PARTICIPANT MAY FILE A COPY OF THIS PARAGRAPH WITH ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY AND BARGAINED-FOR AGREEMENT AMONG THE COMPANY AND ITS AFFILIATES, ON THE ONE HAND, AND THE PARTICIPANT, ON THE OTHER HAND, IRREVOCABLY TO WAIVE THE RIGHT TO TRIAL BY JURY IN ANY PROCEEDING WHATSOEVER BETWEEN SUCH PARTIES ARISING OUT OF OR RELATING TO AN AWARD UNDER THE PLAN AND THAT ANY PROCEEDING PROPERLY HEARD BY A COURT UNDER AN AWARD AGREEMENT UNDER THE PLAN WILL INSTEAD BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A JURY.  
13.    RSU Award Agreement Binding on Successors.  The terms of this RSU Award Agreement shall be binding upon the Participant and upon the Participant’s heirs, executors, administrators, personal representatives, transferees, assignees and successors in interest and upon the Company, its Affiliates and its and their successors and assignees, subject to the terms of the Plan.
14.    No Assignment.  Subject to the second sentence of Section 5(a), neither this RSU Award Agreement nor any rights granted herein shall be assignable by the Participant other than (with respect to any rights that survive the Participant’s death) by will or the laws of descent and distribution.  No purported sale, assignment, mortgage, hypothecation, transfer, pledge, encumbrance, gift, transfer in trust (voting or other) or other disposition of, or creation of a security interest in or lien on, any RSUs or RSU Shares by any holder thereof in violation of the provisions of this RSU Award Agreement or the Plan will be valid, and the Company will not transfer any of said RSUs or RSU Shares on its books nor will any RSU Shares be entitled to vote, nor will any distributions be paid thereon, unless and until there has been full compliance with said provisions to the satisfaction of the Company.  The foregoing restrictions are in addition to and not in lieu of any other remedies, legal or equitable, available to enforce said provisions.  
15.    Necessary Acts.  The Participant hereby agrees to perform all acts, and to execute and deliver any documents, that may be reasonably necessary to carry out the provisions of this RSU Award Agreement, including but not limited to all acts and documents related to compliance with securities, tax and other applicable laws and regulations.  
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16.    Limitation on the Participant’s Rights; Not a Trust.  Participation in the Plan confers no rights or interests other than as herein provided.  This RSU Award Agreement creates only a contractual obligation on the part of the Company as to amounts payable and shall not be construed as creating a trust.  Neither the Plan nor any underlying program, in and of itself, has any assets, and the RSUs shall not be treated as property or as a trust fund of any kind.  The RSUs shall be used solely as a device for the determination of the payments to eventually be made to the Participant if the RSUs vest pursuant to Section 2 and Section 5.  The Participant shall have only the rights of a general unsecured creditor of the Company with respect to amounts credited and benefits payable, if any, with respect to the RSUs, and rights no greater than the right to receive the RSU Shares as a general unsecured creditor with respect to RSUs, as and when payable hereunder.  
17.    Severability.  Should any provision of this RSU Award Agreement be held by an arbitrator or court of competent jurisdiction to be unenforceable, or enforceable only if modified, such holding shall not affect the validity of the remainder of this RSU Award Agreement, the balance of which shall continue to be binding upon the parties hereto with any such modification (if any) to become a part hereof and treated as though contained in this original RSU Award Agreement.  Moreover, if one or more of the provisions contained in this RSU Award Agreement shall for any reason be held to be excessively broad as to scope, activity, subject or otherwise so as to be unenforceable, then in lieu of severing such unenforceable provision or provisions, it or they shall be construed by the appropriate judicial body or arbitral tribunal by limiting or reducing it or them, so as to be enforceable to the maximum extent compatible with the applicable law as it shall then appear, and such determination by a judicial body or arbitral tribunal shall not affect the enforceability of such provisions or provisions in any other jurisdiction.
18.    Failure to Enforce Not a Waiver.  The failure of the Company to enforce at any time any provision of this RSU Award Agreement shall in no way be construed to be a waiver of that provision or of any other provision hereof.  
19.    Entire Agreement.  This RSU Award Agreement and the Plan contain the entire agreement and understanding among the parties as to the subject matter hereof and supersede all prior writings or understandings with respect to the grant of RSUs covered by this Award.  The Participant acknowledges that any summary of the Plan or this RSU Award Agreement provided by the Company is subject in its entirety to the terms of the Plan and this RSU Award Agreement.  
20.    Headings.  Headings are used solely for the convenience of the parties and shall not be deemed to be a limitation upon or description of the contents of any Section.
21.    Counterparts.  This RSU Award Agreement may be executed in any number of counterparts, including via facsimile or PDF, each of which shall be deemed to be an original and all of which together shall be deemed to be one and the same instrument.
22.    Amendment.  Except as otherwise provided in the Plan or Section 11, no amendment or modification hereof shall be valid unless it shall be in writing and signed by all parties hereto.
23.    Disposition of Shares Issued.  Subject to applicable law, the Participant may dispose of vested RSU Shares granted under this Award during any “window period” in which sales by Company personnel are permitted, or otherwise pursuant to the terms of a 10b5-1 plan on the same terms as apply to the use of such plans by other Company personnel, subject to approval by the Company’s compliance department.  All dispositions of RSU Shares are subject to compliance with the Company’s Share Ownership Policy as in effect from time to time.
24.    Acknowledgements and Representations.  The Participant is acquiring the RSUs and, if and when the RSUs vest, will acquire the RSU Shares covered thereby solely for the Participant’s own account, for investment purposes only, and not with a view to or an intent to sell or distribute, or to offer for resale in connection with any unregistered distribution, all or any portion of the RSUs or RSU Shares 
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within the meaning of the Securities Act and/or any applicable state securities laws.  The Participant has had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions of the Award and the restrictions imposed on the RSUs and the RSU Shares.  The Participant has been furnished with, and/or has access to, such information as he or she considers necessary or appropriate for deciding whether to accept the Award.  However, in evaluating the merits and risks of an investment in the Company, the Participant has and will rely upon the advice of his/her own legal counsel, tax advisors, and/or investment advisors.  The Participant is aware that RSU Shares may be of no practical value.  The Participant has read and understands the restrictions and limitations set forth in the Plan and this RSU Award Agreement, which are imposed on the RSUs and the RSU Shares.  The Participant confirms that the Participant has not relied on any warranty, representation, assurance or promise of any kind whatsoever in entering into this RSU Award Agreement other than as expressly set out in this RSU Award Agreement or in the Plan. 
25.    Electronic Delivery.  The Company may, in its sole discretion, decide to deliver any documents related to the Award (or future Awards that may be granted under the Plan) and participation in the Plan by electronic means or to request the Participant’s consent to participate in the Plan by electronic means.  The Participant hereby consents to receive such documents by electronic delivery and, if requested, to agree to participate in the Plan through an online or electronic system established and maintained by the Company or a third party designated by the Company.    
26.    Recoupment. The Participant, by accepting the Award, hereby acknowledges and agrees that the Participant will be subject to any policy adopted by the Company that provides for the repayment or forfeiture of incentive compensation (including but not limited to Awards and amounts payable thereunder), including, without limitation, as a result of a detrimental activity or a required accounting restatement.
 [Signature page follows]
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    IN WITNESS WHEREOF, the parties hereto have executed this RSU Award Agreement as of the date set forth above.
APOLLO GLOBAL MANAGEMENT, INC.
    
By     
Name:    
Title:     
    The undersigned hereby accepts and agrees to all of the terms and provisions of this RSU Award Agreement.
PARTICIPANT
By    
Name:  [Participant Name]

                
                                [Acceptance Date]

    

RESTRICTIVE COVENANTS AGREEMENT

This restrictive covenants agreement (this “Restrictive Covenants Agreement”) is made by and between Apollo Global Management, Inc., a Delaware corporation (the “Company”), and [Participant Name] (the “Participant”).  Where the context permits, references to the Company shall include any successor to the Company.  The execution of this Restrictive Covenants Agreement by Participant is a condition to the Company’s grant, and the Participant’s receipt, of the restricted share units pursuant to the Restricted Share Unit Award Agreement under the Apollo Global Management, Inc. 2019 Omnibus Equity Incentive Plan dated [date] between the parties hereto (the “RSU Award Agreement”).  If this Restrictive Covenants Agreement is not executed by Participant, the RSU Award Agreement will be null and void ab initio and the Participant will have no rights thereunder.  Capitalized terms not defined herein shall have the meanings ascribed to them in the Apollo Global Management, Inc. 2019 Omnibus Equity Incentive Plan, as the same may be amended, modified or supplemented from time to time (the “Plan”).  The Participant acknowledges that the Company would not have granted the RSU Award Agreement had the Participant not agreed to be bound by the restrictive covenants contained in this Restrictive Covenants Agreement.  Accordingly, as consideration for the Participant’s receipt of the RSU Award Agreement and other good and valuable consideration, the receipt of which is hereby acknowledged, the Participant voluntarily covenants and agrees as set forth in this Restrictive Covenants Agreement.  
1.    Confidential Information.  
a.    Participant shall not disclose or use at any time any Confidential Information (as defined below) of which Participant is or becomes aware, whether or not such information is developed by Participant, except to the extent that such disclosure or use is directly related to and required by Participant’s performance in good faith of duties for Athene Holding Ltd. (“Athene”), its Subsidiaries, the Asset Management Company or their respective Affiliates. Participant shall take all appropriate steps to safeguard Confidential Information in Participant’s possession and to protect it against disclosure, misuse, espionage, loss and theft. Participant shall deliver to Athene upon Participant’s Termination of Relationship, or at any time Athene may request, all memoranda, notes, plans, records, reports, computer tapes and software and other documents and data (and copies thereof) relating to the Confidential Information or the business of Athene, its Subsidiaries, the Asset Management Company or any of their respective Affiliates that Participant may then possess or have under his or her control. Notwithstanding the foregoing, Participant may truthfully respond to a lawful and valid subpoena or other legal process, but shall give Athene the earliest possible notice thereof, shall, as much in advance of the return date as possible, make available to Athene and its counsel the documents and other information sought, and shall assist Athene and such counsel in resisting or otherwise responding to such process. As used in this Restrictive Covenants Agreement, the term “Confidential Information” means information that is not generally known to the public and that is used, developed or obtained by Athene, its Subsidiaries, the Asset Management Company or their respective Affiliates in connection with their businesses, including, but not limited to, information, observations and data obtained by Participant while providing services to Athene, its Subsidiaries, the Asset Management Company, their respective Affiliates or any predecessors thereof (including those obtained prior to the date hereof) concerning (i) the business or affairs of Athene, its Subsidiaries, the Asset Management Company or their respective Affiliates (or such predecessors), (ii) products or services, (iii) fees, costs and pricing structures, (iv) designs, (v) analyses, (vi) drawings, photographs and reports, (vii) computer software, including operating systems, applications and program listings, (viii) flow charts, manuals and documentation, (ix) data bases, (x) accounting and business methods, (xi) inventions, devices, new developments, methods and processes, whether patentable or unpatentable and whether or not reduced to practice, (xii) customers and clients and customer or client lists, (xiii) other copyrightable works, (xiv) all production methods, processes, technology and trade secrets, and (xv) all similar and related information in whatever form. Confidential Information will not include any information that has been published (other than a disclosure by Participant in breach of this Restrictive Covenants Agreement) in a form generally available to the public prior to the date Participant 

proposes to disclose or use such information. Confidential Information will not be deemed to have been published merely because individual portions of the information have been separately published, but only if all material features comprising such information have been published in combination.
b.    Participant understands that nothing contained in this Restrictive Covenants Agreement limits Participant’s ability to report possible violations of law or regulation to, or file a charge or complaint with, the Securities and Exchange Commission, the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the Department of Justice, the Congress, any Inspector General, or any other federal, state or local governmental agency or commission (“Government Agencies”). Participant further understands that this Restrictive Covenants Agreement does not limit Participant’s ability to communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to Athene or the Company. Nothing in this Restrictive Covenants Agreement shall limit Participant’s ability under applicable United States federal law to (i) disclose in confidence trade secrets to federal, state, and local government officials, or to an attorney, for the sole purpose of reporting or investigating a suspected violation of law or (ii) disclose trade secrets in a document filed in a lawsuit or other proceeding, but only if the filing is made under seal and protected from public disclosure.
2.    Restriction on Competition.  
a.    Participant acknowledges that, in the course of his or her service with Athene, its Subsidiaries, the Asset Management Company and/or their predecessors (the “Protected Companies”), he or she has become familiar, or will become familiar, with the Protected Companies’ trade secrets and with other confidential and proprietary information concerning the Protected Companies and that his or her services have been and will be of special, unique and extraordinary value to the Protected Companies. Participant agrees that if Participant were to become employed by, or substantially involved in, the business of a competitor of the Protected Companies during the Restricted Period, it would be very difficult for Participant not to rely on or use the Protected Companies’ trade secrets and confidential information. Thus, to avoid the inevitable disclosure of the Protected Companies’ trade secrets and confidential information, and to protect such trade secrets and confidential information and the Protected Companies’ relationships and goodwill with customers, during the Restricted Period, Participant will not directly or indirectly through any other Person engage in, enter the employ of, render any services to, have any ownership interest in, nor participate in the financing, operation, management or control of, any Competing Business. For purposes of this Restrictive Covenants Agreement, the phrase “directly or indirectly through any other Person engage in” shall include, without limitation, any direct or indirect ownership or profit participation interest in such enterprise, whether as an owner, stockholder, member, partner, joint venturer or otherwise, and shall include any direct or indirect participation in such enterprise as an employee, consultant, director, officer or licensor of technology. For purposes of this Restrictive Covenants Agreement, “Restricted Area” means anywhere in the United States, Bermuda and elsewhere in the world where the Protected Companies engage in business, including, without limitation, jurisdictions where any of the Protected Companies reasonably anticipate engaging in business on the date of Participant’s Termination of Relationship (provided that as of the date of Participant’s Termination of Relationship, to the knowledge of Participant, such area has been discussed as a market that the Protected Companies reasonably contemplate engaging in within the twelve (12) month period following the date of Participant’s Termination of Relationship). For purposes of this Restrictive Covenants Agreement, “Competing Business” means a Person that at any time during Participant’s period of service has competed, or any time during the twelve (12) month period following the date of Participant’s Termination of Relationship begins competing with the Protected Companies anywhere in the Restricted Area and in the business of (i) retail annuities, (ii) annuity reinsurance, focusing on contracts reinsuring a quota share of future premiums of various fixed annuity product lines, (iii) reinsuring blocks of existing annuity business, (iv) issuing funding agreements or participating in a funding agreement backed note program, (v) pension risk transfer transactions, (vi) managing investments held by ceding companies pursuant to funds withheld and/or modified coinsurance contracts with their affiliates, (vii) managing investments in the life insurance 
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industry, or (viii) any other significant business conducted by the Protected Companies as of the date of Participant’s Termination of Relationship and any significant business the Protected Companies conduct in the twelve (12) month period after Participant’s Termination of Relationship (provided that as of the date of Participant’s Termination of Relationship, to the knowledge of Participant, such business has been discussed as a business that the Protected Companies reasonably contemplate engaging in within such twelve (12) month period). For purposes of this Restrictive Covenants Agreement, “Restricted Period” means Participant’s period of service until his or her Termination of Relationship, and thereafter through and including: (A) twelve (12) months following Participant’s Termination of Relationship with respect to any Participant with a title of CEO, President or EVP at the time of the Termination of Relationship; (B) nine (9) months following Participant’s Termination of Relationship with respect to any Participant with a title of SVP at the time of the Termination of Relationship and (C) six (6) months following Participant’s Termination of Relationship with respect to any Participant with a title of VP at the time of the Termination of Relationship.
b.    Nothing herein shall prohibit Participant from (i) being a passive owner of not more than 1% of the outstanding stock of any class of a corporation which is publicly traded, so long as Participant has no active participation in the business of such corporation, or (ii) providing services to a subsidiary, division or affiliate of a Competing Business if such subsidiary, division or affiliate is not itself engaged in a Competing Business and Participant does not provide services to, or have any responsibilities regarding, the Competing Business.
3.    Non-Solicitation of Employees and Consultants.  During Participant’s period of service and for a period of twelve (12) months after the date of Participant’s Termination of Relationship, Participant shall not directly or indirectly through any other Person (a) induce or attempt to induce any employee or independent contractor of the Protected Companies to leave the employ or service, as applicable, of the Protected Companies, or in any way interfere with the relationship between the Protected Companies, on the one hand, and any employee or independent contractor thereof, on the other hand, or (b) hire any person who was an employee of the Protected Companies, in each case, until six (6) months after such individual’s employment relationship with the Protected Companies has been terminated.
4.    Non-Solicitation of Customers.  During Participant’s period of service and for a period of twelve (12) months after the date of Participant’s Termination of Relationship, Participant shall not directly or indirectly through any other Person influence or attempt to influence customers, vendors, suppliers, licensors, lessors, joint venturers, ceding companies, associates, consultants, agents, or partners of the Protected Companies to divert their business away from the Protected Companies, and Participant will not otherwise interfere with, disrupt or attempt to disrupt the business relationships, contractual or otherwise, between the Protected Companies, on the one hand, and any of their customers, suppliers, vendors, lessors, licensors, joint venturers, associates, officers, employees, consultants, managers, partners, members or investors, on the other hand (collectively, “Protected Company Clients”); provided, however, that this provision shall not apply to any Protected Company Clients for whom Participant does not in the course of Participant’s services to Athene or any of the other Protected Company (a) perform services on behalf of the Athene or any of the other Protected Companies, or (b) have contact or acquire or have access to confidential information or other competitively advantageous information as a result of or in connection with Participant’s services to Athene.
5.    Understanding of Covenants.  Participant represents and agrees that he or she (a) is familiar with and carefully considered the foregoing covenants set forth in Sections 2, 3 and 4 (together, the “Restrictive Covenants”), (b) is fully aware of his or her obligations hereunder, (c) agrees to the reasonableness of the length of time, scope and geographic coverage, as applicable, of the Restrictive Covenants, (d) agrees that the Restrictive Covenants are necessary to protect the Protected Companies’ confidential and proprietary information, good will, stable workforce and customer relations, and (e) agrees that the Restrictive Covenants will continue in effect for the applicable periods set forth above in Sections 2, 3 and 4 regardless of whether Participant is then entitled to receive severance pay or benefits from any of the Protected Companies. Participant understands that the Restrictive Covenants may limit his or her 
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ability to earn a livelihood in a business similar to the business of the Protected Companies, but he or she nevertheless believes that he or she has received and will receive sufficient consideration and other benefits as an employee of or other service provider to Athene and as otherwise provided hereunder to clearly justify such restrictions that, in any event (given his or her education, skills and ability), Participant does not believe would prevent him or her from otherwise earning a living. Participant agrees that the Restrictive Covenants do not confer a benefit upon the Protected Companies disproportionate to the detriment of Participant.
6.    Enforcement.  Participant agrees that Participant’s services are unique and that he or she has access to Confidential Information. Accordingly, Participant agrees that a breach by Participant of any of the Restrictive Covenants would cause immediate and irreparable harm to Athene and the Company that would be difficult or impossible to measure, and that damages to Athene and the Company for any such injury would therefore be an inadequate remedy for any such breach. Therefore, Participant agrees that in the event of any breach or threatened breach of any provision of this Restrictive Covenants Agreement, Athene and/or the Company shall be entitled, in addition to and without limitation upon all other remedies Athene and the Company may have under this Agreement, at law or otherwise, to obtain specific performance, injunctive relief and/or other appropriate relief (without posting any bond or deposit) in order to enforce or prevent any violations of the provisions of this Restrictive Covenants Agreement, as the case may be, or require Participant to account for and pay over to Athene or the Company all compensation, profits, moneys, accruals, increments or other benefits derived from or received as a result of any transactions constituting a breach of this Restrictive Covenants Agreement, if and when final judgment of a court of competent jurisdiction is so entered against Participant. Participant further agrees that the applicable period of time any Restrictive Covenant is in effect following the date of Participant’s Termination of Relationship, as determined pursuant to the foregoing provisions of this Restrictive Covenants Agreement, shall be extended by the same amount of time that Participant is in breach of any Restrictive Covenant.
7.    Governing Law; Arbitration; Waiver of Jury Trial. 
a.    This Restrictive Covenants Agreement shall be governed by, interpreted under and construed and enforced in accordance with the laws of the State of Delaware (without regard to any conflicts of laws principles thereof that would give effect to the laws of another jurisdiction), and any dispute, controversy, suit, action or proceeding (“Proceeding”) arising out of or relating to this Restrictive Covenant Agreement will, notwithstanding anything to the contrary contained in Section 14(e) of the Plan, be settled by arbitration in accordance with the procedures set forth in Paragraph 12(a) of the RSU Award Agreement, including with the carve-out for the right to receive injunctive relief for the enforcement of any restrictive covenants, which is incorporated by reference as if set forth in their entirety herein.  
b.    IF AN AGREEMENT TO ARBITRATE IS HELD INVALID OR UNENFORCEABLE THEN, TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW THAT CANNOT BE WAIVED, THE PARTICIPANT WAIVES AND COVENANTS THAT THE PARTICIPANT WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE) ANY RIGHT TO TRIAL BY JURY IN ANY ACTION ARISING IN WHOLE OR IN PART UNDER OR IN CONNECTION WITH THIS RESTRICTIVE COVENANTS AGREEMENT OR ANY MATTERS CONTEMPLATED THEREBY, WHETHER NOW OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AND AGREE THAT ANY OF THE COMPANY OR ANY OF ITS AFFILIATES OR THE PARTICIPANT MAY FILE A COPY OF THIS PARAGRAPH WITH ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY AND BARGAINED-FOR AGREEMENT AMONG THE COMPANY AND ITS AFFILIATES, ON THE ONE HAND, AND THE PARTICIPANT, ON THE OTHER HAND, IRREVOCABLY TO WAIVE THE RIGHT TO TRIAL BY JURY IN ANY PROCEEDING WHATSOEVER BETWEEN SUCH PARTIES ARISING OUT OF OR RELATING TO THIS RESTRICTIVE COVENANTS AGREEMENT AND THAT ANY PROCEEDING PROPERLY HEARD BY A COURT UNDER THIS RESTRICTIVE COVENANTS 
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AGREEMENT UNDER THE PLAN WILL INSTEAD BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A JURY.  
8.    Successors. The terms of this Restrictive Covenants Agreement shall be binding upon the Participant and upon the Participant’s heirs, executors, administrators, personal representatives, transferees, assignees and successors in interest and upon the Company, its Affiliates and its and their successors and assignees, subject to the terms of the Plan.
9.    Severability and Modification. Should any provision of this Restrictive Covenant Agreement be held by an arbitrator or court of competent jurisdiction to be unenforceable even following any modification as set forth in the previous sentence, or enforceable only if modified, such holding shall not affect the validity of the remainder of this Restrictive Covenants Agreement, the balance of which shall continue to be binding upon the parties hereto with any such modification (if any) to become a part hereof and treated as though contained in this original Restrictive Covenants Agreement.  Moreover, if one or more of the provisions contained in this Restrictive Covenants Agreement shall for any reason be held to be excessively broad as to scope, activity, subject or otherwise so as to be unenforceable, then in lieu of severing such unenforceable provision or provisions, it or they shall be construed by the appropriate judicial body or arbitral tribunal by limiting or reducing it or them, so as to be enforceable to the maximum extent compatible with the applicable law as it shall then appear, and such determination by a judicial body or arbitral tribunal shall not affect the enforceability of such provisions or provisions in any other jurisdiction.
10.    Failure to Enforce Not a Waiver.  The failure of the Company or any of its Affiliates to enforce at any time any provision of this Restrictive Covenants Agreement shall in no way be construed to be a waiver of that provision or of any other provision hereof.  
11.    Entire Agreement. The RSU Award Agreement, the Plan, and this Restrictive Covenants Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede all prior writings or understandings with respect to the grant of RSUs covered by the RSU Award.
12.    Headings.  Headings are used solely for the convenience of the parties and shall not be deemed to be a limitation upon or description of the contents of any Section.

13.    Amendment.  Except as otherwise provided in Section 9 above, no amendment or modification hereof shall be valid unless it shall be in writing and signed by all parties hereto.

[Signature page follows]
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IN WITNESS WHEREOF, the parties hereto have executed this Restrictive Covenants Agreement as of the date set forth above.

APOLLO GLOBAL MANAGEMENT, INC.

By                                  
Name:     
Title:     
    

The undersigned hereby accepts and agrees to all of the terms and provisions of this Restrictive Covenants Agreement.

PARTICIPANT

[Electronic Signature]
By    
Name:  [Participant Name]

                
                                [Acceptance Date]

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