Document:

Exhibit

Exhibit 10.1

AMENDMENT NO. 5 TO CREDIT AGREEMENT 
This Amendment No. 5 to Credit Agreement, dated as of July 30, 2020 (this “Amendment”) is among MTS SYSTEMS CORPORATION, a Minnesota corporation (the “Company”), JPMORGAN CHASE BANK, N.A., as Administrative Agent (the “Administrative Agent”) and as Swingline Lender (the “Swingline Lender”), JPMORGAN CHASE BANK, N.A., U.S. BANK NATIONAL ASSOCIATION and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Issuing Banks (collectively, the “Issuing Banks” and each, an “Issuing Bank”), and the Revolving Lenders party hereto.  Capitalized terms not otherwise defined herein having the definitions provided therefor in the Credit Agreement referenced below.
W I T N E S S E T H:
WHEREAS, the Company, the Foreign Subsidiary Borrowers from time to time party thereto, the Lenders from time to time party thereto and the Administrative Agent are parties to that certain Credit Agreement, dated as of July 5, 2016 (as amended, restated, supplemented or otherwise modified from time to time prior to the date hereof, the “Credit Agreement”; the Credit Agreement, as amended by this Amendment, the “Amended Credit Agreement”);
WHEREAS, the Company has requested that the Administrative Agent, the Swingline Lender, the Issuing Banks and the Required Revolving Lenders agree to certain amendments to the Credit Agreement; and
WHEREAS, the Administrative Agent, the Swingline Lender, the Issuing Banks and the Revolving Lenders party hereto have agreed to so amend the Credit Agreement upon the terms and subject to the conditions set forth herein.
NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants contained herein, the parties hereto agree as follows:
1.Amendments to the Credit Agreement.  Effective as of the date of satisfaction of the conditions precedent set forth in Section 2 below (such date, the “Amendment No. 5 Effective Date”), the parties hereto agree that the Credit Agreement is hereby amended as follows:
(a)Section 1.01 of the Credit Agreement is amended to insert, in the appropriate alphabetical location, the following new definitions:
““Amendment No. 5 Effective Date” means July 30, 2020.”
““Consolidated Cash Balance” means, at any time, (a) the aggregate amount of cash and cash equivalents, marketable securities, treasury bonds and bills, certificates of deposit, investments in money market funds, and commercial paper, in each case, held or owned by (either directly or indirectly), credited to the account of or would otherwise be required to be reflected as an asset on the balance sheet of the Company and its Subsidiaries less (b) Excluded Cash.”
““Excluded Cash” means (a) any restricted cash or cash equivalents to pay royalty obligations, working interest obligations, suspense payments, severance taxes, payroll, payroll taxes, other taxes, employee wage and benefit payments and trust and fiduciary obligations or other obligations of the Company and its Subsidiaries to third parties and for which the Company and its Subsidiaries have issued checks or has initiated wires or ACH transfers (or, in the Company’s discretion, will issue checks or initiate wires or ACH transfers within five (5) Business Days) in order to pay, and (b) any cash or cash equivalents constituting purchase price deposits held in escrow by an unaffiliated third party pursuant to a binding and enforceable purchase and sale agreement with an unaffiliated third party containing customary provisions regarding the payment and refunding of such deposits.”

(b)The definition of “Adjusted LIBO Rate” appearing in Section 1.01 of the Credit Agreement is hereby amended to delete the phrase “, when used in reference to the Tranche B Term Loans,” appearing therein.
(c)Clause (b) of the definition of “Applicable Rate” appearing in Section 1.01 of the Credit Agreement is hereby amended and restated in its entirety to read as follows: 
“(b)    with respect to any Eurocurrency Revolving Loan, any ABR Revolving Loan or with respect to the commitment fees or commissions on outstanding performance and commercial Letters of Credit payable hereunder on any date, as the case may be, the applicable rate per annum set forth below under the caption “Commitment Fee Rate”, “Eurocurrency Spread for Revolving Loans”, “ABR Spread for Revolving Loans” or “Performance and Commercial L/C Rate”, as the case may be, based upon the Total Leverage Ratio applicable on such date:
	
						
	 
	Total Leverage Ratio
	Commitment Fee Rate
	Eurocurrency
Spread for
Revolving
Loans
	ABR 
Spread for
Revolving
Loans
	Performance and
Commercial L/C
Rate

	Category 1:
	< 2.50 to 1.00
	0.20%
	2.00%
	1.00%
	1.00%

	Category 2:
	> 2.50 to 1.00 but 
< 3.00 to 1.00
	0.25%
	2.25%
	1.25%
	1.125%

	Category 3:
	 3.00 to 1.00 but 
< 3.50 to 1.00
	0.30%
	 2.50%
	1.50%
	1.25%

	Category 4:
	 3.50 to 1.00 but 
< 4.25 to 1.00
	0.35%
	2.75%
	1.75%
	1.375%

	Category 5:
	 4.25 to 1.00
	0.45%
	3.25%
	2.25%
	1.50%

For purposes of the foregoing,
(i) if at any time the Company fails to deliver the Financials on or before the date the Financials are due pursuant to Section 5.01, Category 5 shall be deemed applicable for the period commencing three (3) Business Days after the required date of delivery and ending on the date which is three (3) Business Days after the Financials are actually delivered, after which the Category shall be determined in accordance with the table above as applicable;
(ii) adjustments, if any, to the Category then in effect shall be effective three (3) Business Days after the Administrative Agent has received the applicable Financials (it being understood and agreed that each change in Category shall apply during the period commencing on the effective date of such change and ending on the date immediately preceding the effective date of the next such change); and
(iii) notwithstanding the foregoing, Category 5 shall be deemed to be applicable from and after the Amendment No. 5 Effective Date until the Administrative Agent’s receipt of the applicable Financials for the Company’s first fiscal quarter ending after the Amendment No. 5 Effective Date and adjustments to the Category then in effect shall thereafter be effected in accordance with the preceding paragraphs.”
(d)Section 4.02 of the Credit Agreement is hereby amended to:
		
	(i)
	insert the following new paragraph (c) immediately after paragraph (b) thereof: 

“(c)    The Consolidated Cash Balance on and as of the date of such Borrowing does not exceed $125,000,000, before and after giving effect to such Borrowing and to the application of the proceeds therefrom on or around such date, but in any event, not to exceed two Business Days after such date; provided that this paragraph (c) shall not apply to any Term Loan Borrowing.”
and

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	(ii)
	replace the phrase “the matters specified in paragraphs (a) and (b) of this Section” appearing therein with the phrase “the matters specified in paragraphs (a), (b) and, if applicable, (c) of this Section”. 

(e)Section 6.12(a) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:
“(a)  Maximum Total Leverage Ratio.  Except with the written consent of the Required Revolving Lenders, the Company will not permit the ratio (the “Total Leverage Ratio”), determined as of the end of each of its fiscal quarters ending on and after the Amendment No. 4 Effective Date, of (i) Consolidated Total Indebtedness to (ii) Consolidated EBITDA for the period of four (4) consecutive fiscal quarters ending with the end of such fiscal quarter, all calculated for the Company and its Subsidiaries on a consolidated basis, to be greater than the ratio set forth below opposite the day or the period in which such fiscal quarter ends:
	
		
	Day or Period
	Ratio

	Amendment No. 4 Effective Date through June 30, 2020
	5.00:1.00

	September 30, 2020 through December 31, 2020
	4.75:1.00

	March 31, 2021 through September 30, 2021
	4.25:1.00

	December 31, 2021 and thereafter
	3.75:1.00

Notwithstanding the foregoing, so long as (x) none of the Company or any Subsidiary shall make any Restricted Payment from and after the Amendment No. 5 Effective Date through and including June 30, 2021 and (y) none of the Company or any Subsidiary shall make any Permitted Acquisition or other acquisition from and after the Amendment No. 5 Effective Date through and including December 31, 2021 (any such action described in the foregoing clauses (x) and (y), a “Specified Event”), the Company will not permit the Total Leverage Ratio, determined as of the end of each of its fiscal quarters ending on and after the Amendment No. 5 Effective Date, to be greater than the ratio set forth below opposite the day or the period in which such fiscal quarter ends (for the avoidance of doubt, subject at all times to the immediately succeeding proviso, in lieu of the ratios set forth in the table above):
	
		
	Day or Period
	Ratio

	September 30, 2020 through March 31, 2021
	6.00:1.00

	June 30, 2021 
	5.75:1.00

	September 30, 2021 through December 31, 2021
	5.50:1.00

	March 31, 2022 through June 30, 2022
	4.75:1.00

	September 30, 2022
	4.25:1.00

	December 31, 2022 and thereafter
	3.75:1.00

; provided that it is understood and agreed that, notwithstanding anything to the contrary contained in this Agreement or any other Loan Document, immediately upon the occurrence of any Specified Event following the Amendment No. 5 Effective Date, on and after the date of the occurrence of such Specified Event, the maximum Total Leverage Ratio permitted under this Section 6.12(a) shall be determined by the first table of ratios set forth in this Section 6.12(a) (and not, for the avoidance of doubt, the second table of ratios set forth in this Section 6.12(a) set forth immediately above this proviso, which second table of ratios shall be of no further force or effect).”

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(f)Section 6.12(b) of the Credit Agreement is hereby amended to replace the grid set forth therein with the following: 
	
				
	“Day or Period
	Ratio

	Amendment No. 4 Effective Date through March 31, 2021
	3.00:1.00

	June 30, 2021 through September 30, 2021
	3.25:1.00

	December 31, 2021 and thereafter
	3.50:1.00”

2.Conditions Precedent.  The effectiveness of this Amendment is subject to the conditions precedent that the Administrative Agent shall have received:

(a)counterparts to (i) this Amendment, duly executed by each of the Company, the Administrative Agent, the Swingline Lender, each Issuing Bank and the Required Revolving Lenders and (ii) the Consent and Reaffirmation attached as Exhibit A hereto, duly executed by the Subsidiary Guarantors; and

(b)payment and/or reimbursement of the Administrative Agent’s and its affiliates’ reasonable fees and documented out-of-pocket expenses (including, to the extent invoiced no less than two (2) Business Days prior to the Amendment No. 5 Effective Date (except as otherwise reasonably agreed by the Company), reasonable fees and out-of-pocket expenses of counsel for the Administrative Agent) in connection with this Amendment and any other Loan Documents.

3.Representations and Warranties.  To induce the Administrative Agent, the Swingline Lender, the Issuing Banks and the Revolving Lenders party hereto to enter into this Amendment, the Company hereby represents and warrants to the Administrative Agent, the Swingline Lender, the Issuing Banks and the Revolving Lenders party hereto, that:

(a)This Amendment and the Credit Agreement as modified hereby constitute legal, valid and binding obligations of the Company, enforceable in accordance with their terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law; and

(b)As of the date hereof and immediately after giving effect to the terms of this Amendment, (i) no Default has occurred and is continuing, and (ii) the representations and warranties of the Company set forth in the Credit Agreement are true and correct in all material respects (provided that any representation or warranty that is qualified by materiality, Material Adverse Effect or similar language is true and correct in all respects), except to the extent that such representations and warranties specifically refer to an earlier date, in which case they were true and correct in all material respects (provided that any representation or warranty that is qualified by materiality, Material Adverse Effect or similar language was true and correct in all respects) as of such earlier date.

4.Reference to and Effect on the Credit Agreement.  

(a)Upon the effectiveness hereof, each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof,” “herein,” or words of like import, and each reference in any other Loan Document to the Credit Agreement (including, without limitation, by means of words like “thereunder,” “thereof,” and words of like import), shall mean and be a reference to the Credit Agreement as amended hereby, and this Amendment and the Credit Agreement shall be read together and construed as a single instrument referred to herein as the Amended Credit Agreement.

(b)Except as expressly amended hereby, the Credit Agreement and all other documents, instruments and agreements executed and/or delivered in connection therewith shall remain in full force and effect and are hereby reaffirmed, ratified and confirmed. 

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(c)The liens and security interests in favor of the Administrative Agent for the benefit of the Secured Parties securing payment of the Secured Obligations (and all filings with any Governmental Authority in connection therewith) are in all respects continuing and in full force and effect with respect to all Secured Obligations.
(d)Except with respect to the subject matter hereof, the execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Administrative Agent or the Lenders, nor constitute a waiver of any provision of the Credit Agreement or any other documents, instruments and agreements executed and/or delivered in connection therewith.

(e)This Amendment is a Loan Document under (and as defined in) the Credit Agreement.

5.Miscellaneous.

(a)Governing Law.  This Amendment shall be construed in accordance with and governed by the law of the State of New York.

(b)Headings.  Section headings used herein are for convenience of reference only, are not part of this Amendment and shall not affect the construction of, or be taken into consideration in interpreting, this Amendment.  

(c)Counterparts.  This Amendment may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  The words “execution,” “signed,” “signature,” “delivery,” and words of like import in or relating to this Amendment and/or any document to be signed in connection with this Amendment and the transactions contemplated hereby shall be deemed to include Electronic Signatures (as defined below), deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be.  As used herein, “Electronic Signatures” means any electronic symbol or process attached to, or associated with, any contract or other record and adopted by a person with the intent to sign, authenticate or accept such contract or record.

[Remainder of Page Intentionally Left Blank]

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their respective authorized officers as of the day and year first above written.

MTS SYSTEMS CORPORATION, as the Company

	
		
	By:
	/s/ BRIAN ROSS

Name: Brian Ross
Title: Chief Financial Officer

Signature Page to Amendment No. 5 to Credit Agreement

JPMORGAN CHASE BANK, N.A., individually as a Revolving Lender, as Swingline Lender, as an Issuing Bank and as Administrative Agent

	
		
	By:
	/s/ KRYS SZREMSKI

Name: Krys Szremski
Title: Executive Director

Signature Page to Amendment No. 5 to Credit Agreement

BANK OF AMERICA, N.A., individually as a Revolving Lender
	
		
	By:
	/s/ CHAD KARDASH

Name: Chad Kardash 
Title: Vice President

Signature Page to Amendment No. 5 to Credit Agreement

WELLS FARGO BANK, NATIONAL ASSOCIATION,
as a Revolving Lender and as an Issuing Bank

	
		
	By:
	/s/ SHARLYN REKENTHALER

Name: Sharlyn Rekenthaler
Title: Senior Vice President

Signature Page to Amendment No. 5 to Credit Agreement

U.S. BANK NATIONAL ASSOCIATION, individually as a Revolving Lender and as an Issuing Bank

	
		
	By:
	/s/ TYRONE PARKER

Name: Tyrone Parker
Title: Vice President

Signature Page to Amendment No. 5 to Credit Agreement

HSBC BANK USA, NATIONAL ASSOCIATION , as a
Revolving Lender

	
		
	By:
	/s/ SHAUN KLEINMAN

Name: Shaun Kleinman
Title: Senior Vice President

Signature Page to Amendment No. 5 to Credit Agreement

EXHIBIT A
Consent and Reaffirmation
The undersigned hereby acknowledges receipt of a copy of the foregoing Amendment No. 5 to Credit Agreement with respect to that certain Credit Agreement, dated as of July 5, 2016 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among MTS Systems Corporation, a Minnesota corporation (the “Borrower”), the Foreign Subsidiary Borrowers from time to time party thereto, the Lenders from time to time party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent (the “Administrative Agent”), which Amendment No. 5 is dated as of July 30, 2020 (the “Amendment”) and is by and among the Borrower, the Revolving Lenders party thereto and the Administrative Agent.  Capitalized terms used in this Consent and Reaffirmation and not defined herein shall have the meanings given to them in the Credit Agreement.  
Without in any way establishing a course of dealing by the Administrative Agent or any Lender, the undersigned consents to the Amendment and reaffirms the terms and conditions of the Subsidiary Guaranty and any other Loan Document executed by it and acknowledges and agrees that the Subsidiary Guaranty and each and every such Loan Document executed by the undersigned in connection with the Credit Agreement remains in full force and effect and is hereby reaffirmed, ratified and confirmed.  All references to the Credit Agreement contained in the above‐referenced documents shall be a reference to the Credit Agreement as so modified by the Amendment and as the same may from time to time hereafter be amended, modified or restated.

Dated July 30, 2020

[Signature Page Follows]

IN WITNESS WHEREOF, this Consent and Reaffirmation has been duly executed as of the day and year above written.

PCB PIEZOTRONICS, INC.
	
		
	By:
	/s/ DAVID HORE

Name: David Hore
Title: President

Signature Page to Consent and Reaffirmationsecondamendedandrestated

                                                                                                                   SECOND AMENDED AND RESTATED  MASTER REPURCHASE AGREEMENT          (for Pulte Mortgage LLC)                                 dated as of July 30, 2020                                         among                                   COMERICA BANK,     as Agent, Lead Arranger and a Buyer,                           THE OTHER BUYERS PARTY HERETO                                          and                          PULTE MORTGAGE LLC, as Seller                                                                                        Bodman_16842095_7 

 

                                   TABLE OF CONTENTS   SECOND AMENDED AND RESTATED MASTER REPURCHASE AGREEMENT ...................1   SECTION 1.    APPLICABILITY AND DEFINED TERMS ..........................................................1          1.1.  Applicability ............................................................................................................1          1.2.  Defined Terms .........................................................................................................2   SECTION 2.    THE BUYERS’ COMMITMENTS .......................................................................31          2.1.  The Buyers’ Commitments to Purchase ................................................................31          2.2.  Expiration or Termination of the Commitments ....................................................32          2.3.  Disbursement of Purchase Prices ...........................................................................32          2.4.  Swing Line Facility ................................................................................................32          2.5.  Swing Line Transactions........................................................................................33          2.6.  Optional Termination, Reduction and Increase of Buyers’ Commitments ............35   SECTION 3.    INITIATION; TERMINATION. ...........................................................................36          3.1.  Seller Request; Agent Confirmation ......................................................................36          3.2.  Request/Confirmation ............................................................................................37          3.3.  Transaction Termination; Purchase Price Decrease ..............................................37          3.4.  Place for Payments of Repurchase Prices ..............................................................38          3.5.  Withdrawals from and Credits to Operating Account ...........................................38          3.6.  [Reserved]. .............................................................................................................38          3.7.  Disbursements from Repurchase Settlement Account ...........................................38          3.8.  Delivery of Additional Mortgage Loans ................................................................39          3.9.  Application of Purchase Price Decreases ..............................................................39          3.10. Defaulting Buyers ..................................................................................................39   SECTION 4.    TRANSACTION LIMITS AND SUBLIMITS .....................................................42          4.1.  Transaction Limits .................................................................................................42          4.2.  Transaction Sublimits ............................................................................................43          4.3.  Compliance ............................................................................................................44   SECTION 5.    PRICE DIFFERENTIAL .......................................................................................44          5.1.  Pricing Rate ............................................................................................................44          5.2.  Pricing Rate for Default Pricing Rate Purchased Loans ........................................44          5.3.  Price Differential Payment Due Dates ...................................................................44          5.4.  Adjustments to Buyer’s Price Differential based on Qualifying Balances ............45   SECTION 6.    MARGIN MAINTENANCE .................................................................................45          6.1.  Margin Deficit ........................................................................................................45          6.2.  Margin Call Deadline .............................................................................................46          6.3.  Application of Cash ...............................................................................................46          6.4.  Increased Cost ........................................................................................................46          6.5.  Capital Adequacy ...................................................................................................46          6.6.  Market Valuations for Purchase Values ................................................................47          6.7.  Provisions Relating to Daily Adjusting LIBOR Rate ............................................47                                           -i-                                                                      Bodman_16842095_7 

 

     SECTION 7.    TAXES ...................................................................................................................48          7.1.  Payments to be Free of Taxes; Withholding ..........................................................48          7.2.  Other Taxes ............................................................................................................49          7.3.  Taxes Indemnity.....................................................................................................49          7.4.  Receipt ...................................................................................................................49          7.5.  Non-Exempt Buyer ................................................................................................50          7.6.  If Buyer Fails to Provide Form ..............................................................................51          7.7.  Refunds ..................................................................................................................52          7.8.  Survival ..................................................................................................................52   SECTION 8.    INCOME AND ESCROW PAYMENTS; CONTROL .........................................52          8.1.  Income and Escrow Payments ...............................................................................52          8.2.  Income and Escrow Accounts ................................................................................52          8.3.  Income and Escrow Accounts after Default ..........................................................53   SECTION 9.    FACILITY FEE; AGENT’S FEE ..........................................................................53          9.1.  Facility Fee.............................................................................................................53          9.2.  Agent’s Fees...........................................................................................................53   SECTION 10.   SECURITY INTEREST; LICENSE......................................................................53          10.1. Intent of the Parties ................................................................................................53          10.2. Remedies ................................................................................................................56   SECTION 11.   SUBSTITUTION ...................................................................................................57          11.1. Seller May Substitute Other Mortgage Loans with Notice to and Approval                of Agent .................................................................................................................57          11.2. Payment to Accompany Substitution .....................................................................57   SECTION 12.   PAYMENT AND TRANSFER .............................................................................57          12.1. Immediately Available Funds; Notice to Custodian ..............................................57          12.2. Payments to the Agent ...........................................................................................57          12.3. If Payment Not Made When Due...........................................................................58          12.4. Payments Valid and Effective ................................................................................58          12.5. Pro Rata Distribution of Payments ........................................................................58   SECTION 13.   SEGREGATION OF DOCUMENTS RELATING TO PURCHASED LOANS .58   SECTION 14.   CONDITIONS PRECEDENT ...............................................................................59          14.1. Initial Purchase.......................................................................................................59          14.2. Each Purchase ........................................................................................................60   SECTION 15.   REPRESENTATIONS, WARRANTIES AND COVENANTS ...........................62          15.1. Buyers, Agent and Seller Representations .............................................................62          15.2. Additional Seller Representations..........................................................................62          15.3. Special Representations Relating to the Purchased Loans ....................................67          15.4. Representations and Warranties Relating to Specific Transactions ......................67          15.5. Survival ..................................................................................................................68                                          -ii-                                                                      Bodman_16842095_7 

 

     SECTION 16.   AFFIRMATIVE COVENANTS ...........................................................................68          16.1. Office of Foreign Assets Control and USA Patriot Act .........................................68          16.2. Financial Statements ..............................................................................................69          16.3. Financial Statements Will Be Accurate .................................................................70          16.4. Other Reports .........................................................................................................70          16.5. Maintain Existence and Statuses; Conduct of Business ........................................71          16.6. Compliance with Applicable Laws ........................................................................71          16.7. Inspection of Properties and Books; Protection of Seller’s Proprietary                Information; Buyers’ Due Diligence of Seller .......................................................72          16.8. Notice of Suits, Etc. ...............................................................................................73          16.9. Payment of Taxes, Etc. ..........................................................................................74          16.10. Insurance; Fidelity Bond ........................................................................................75          16.11. [Reserved.] .............................................................................................................75          16.12. Subordination of Certain Indebtedness ..................................................................75          16.13. Certain Debt to Remain Unsecured .......................................................................75          16.14. Promptly Correct Escrow Imbalances ...................................................................76          16.15. MERS Covenants ...................................................................................................76          16.16. Special Affirmative Covenants Concerning Purchased Loans ..............................77          16.17. Coordination with Other Lenders/Repo Purchasers and Their Custodians ...........77          16.18. Financial Covenants ...............................................................................................78   SECTION 17.   NEGATIVE COVENANTS ..................................................................................79          17.1. No Merger ..............................................................................................................79          17.2. Limitation on Debt and Contingent Indebtedness .................................................79          17.3. Business .................................................................................................................79          17.4. Liquidations, Dispositions of Substantial Assets ...................................................80          17.5. Loans, Advances, and Investments ........................................................................80          17.6. Use of Proceeds......................................................................................................80          17.7. Transactions with Affiliates ...................................................................................81          17.8. Liens .......................................................................................................................81          17.9. ERISA Plans ..........................................................................................................81          17.10. Change of Principal Office ....................................................................................81          17.11. Distributions ...........................................................................................................81          17.12. Limitations on Payments of Certain Debt ..............................................................81          17.13. No Changes in Accounting Practices or Fiscal Year .............................................82   SECTION 18.   EVENTS OF DEFAULT; EVENT OF TERMINATION .....................................82          18.1. Events of Default ...................................................................................................82          18.2. Transaction Termination ........................................................................................84          18.3. Termination by the Agent ......................................................................................84          18.4. Remedies ................................................................................................................84          18.5. Liability for Expenses and Damages .....................................................................85          18.6. Liability for Interest ...............................................................................................85          18.7. Other Rights ...........................................................................................................86          18.8. Seller’s Repurchase Rights ....................................................................................86          18.9. Sale of Purchased Loans ........................................................................................86          18.10. Setoff ......................................................................................................................86                                          -iii-                                                                      Bodman_16842095_7 

 

     SECTION 19.   SERVICING OF THE PURCHASED LOANS ....................................................87          19.1. Servicing Released Basis .......................................................................................87          19.2. Servicing and Subservicing....................................................................................87          19.3. Escrow Payments ...................................................................................................87          19.4. Escrow and Income after Event of Default ............................................................87          19.5. Servicing Records ..................................................................................................87          19.6. Subservicer Instruction Letter ................................................................................88          19.7. Termination of Servicing .......................................................................................88          19.8. Notice from Seller ..................................................................................................89          19.9. Seller Remains Liable ............................................................................................89          19.10. Backup Servicer .....................................................................................................89          19.11. Successor Servicer .................................................................................................89   SECTION 20.   PAYMENT OF EXPENSES; INDEMNITY.........................................................90          20.1. Expenses ................................................................................................................90          20.2. Indemnity ...............................................................................................................91   SECTION 21.   SINGLE AGREEMENT ........................................................................................91   SECTION 22.   RELATIONSHIPS AMONG THE AGENT AND THE BUYERS ......................92          22.1. Appointment of Agent ...........................................................................................92          22.2. Scope of Agent’s Duties ........................................................................................92          22.3. Limitation on Duty to Disclose ..............................................................................93          22.4. Authority of Agent to Enforce this Agreement ......................................................93          22.5. Agent in its Individual Capacity ............................................................................94          22.6. Actions Requiring All Buyers’ Consent ................................................................94          22.7. Actions Requiring Required Buyers’ Consent .......................................................95          22.8. Agent’s Discretionary Actions ...............................................................................95          22.9. Buyers’ Cooperation ..............................................................................................96          22.10. Buyers’ Sharing Arrangement ...............................................................................96          22.11. Buyers’ Acknowledgment .....................................................................................96          22.12. Agent Market Value Determinations .....................................................................97          22.13. Agent’s Duty of Care, Express Negligence Waiver and Release ..........................98          22.14. Calculations of Shares of Principal and Other Sums .............................................98          22.15. Successor Agent .....................................................................................................98          22.16. Merger of the Agent ...............................................................................................99          22.17. Participation; Assignment by Buyers.....................................................................99          22.18. The Agent and the Buyers are the only Beneficiaries of this Section .................102          22.19. Knowledge of Default ..........................................................................................102          22.20. No Reliance on Agent’s Customer Identification Program .................................102          22.21. Other Titles ..........................................................................................................103          22.22. Other Agreements ................................................................................................103   SECTION 23.   NOTICES AND OTHER COMMUNICATIONS; ELECTRONIC  TRANSMISSIONS .........................................................................................................................103   SECTION 24.   MISCELLANEOUS ............................................................................................106                                          -iv-                                                                      Bodman_16842095_7 

 

             24.1. Further Assurances...............................................................................................106          24.2. Agent as Attorney in Fact ....................................................................................106          24.3. Wires to Seller......................................................................................................106          24.4. Wires to Agent .....................................................................................................106          24.5. Receipt; Available Funds .....................................................................................106          24.6. Privacy of Customer Information ........................................................................107   SECTION 25.   ENTIRE AGREEMENT; SEVERABILITY .......................................................107   SECTION 26.   NON-ASSIGNABILITY; TERMINATION; REPLACEMENT OF BUYERS .108          26.1. Limited Assignment .............................................................................................108          26.2. Remedies Exception.............................................................................................108          26.3. Agreement Termination .......................................................................................108          26.4. Replacement of Buyers. .......................................................................................108   SECTION 27.   COUNTERPARTS ..............................................................................................109   SECTION 28.   GOVERNING LAW, JURISDICTION AND VENUE ......................................109   SECTION 29.   WAIVER OF JURY TRIAL ................................................................................109   SECTION 30.   RELATIONSHIP OF THE PARTIES .................................................................110   SECTION 31.   NO WAIVERS, ETC ...........................................................................................110   SECTION 32.   USE OF EMPLOYEE PLAN ASSETS ...............................................................111          32.1. Prohibited Transactions .......................................................................................111          32.2. Audited Financial Statements Required...............................................................111          32.3. Representations ....................................................................................................111   SECTION 33.   INTENT ...............................................................................................................111          33.1. Transactions are Repurchase Agreements  and Securities Contracts ..................111          33.2. Contractual Rights, Etc. .......................................................................................111          33.3. FDIA ....................................................................................................................112          33.4. Master Netting Agreement ...................................................................................112   SECTION 34.   DISCLOSURE RELATING TO CERTAIN FEDERAL PROTECTIONS ........112          34.1. Parties not Protected by SIPA or Insured by FDIC or NCUSIF ..........................112          34.2. SIPA Does Not Protect Government Securities Broker or Dealer                Counterparty ........................................................................................................112          34.3. Transaction Funds Are Not Insured Deposits ......................................................112   SECTION 35.   USA PATRIOT ACT NOTIFICATION .............................................................112   SECTION 36.   WAIVER OF FEES, COSTS AND EXPENSES ................................................113   SECTION 37.   AMENDED AND RESTATED ..........................................................................113                                           -v-                                                                      Bodman_16842095_7 

 

   EXHIBITS AND SCHEDULES   Exhibit A         Form of Request/Confirmation  Exhibit B         Form of Compliance Certificate  Exhibit C         List of Subsidiaries of the Seller as of the Effective Date  Exhibit D         Form of Corporation Tax Treatment Certificate  Exhibit E         Form of Assignment and Assumption  Exhibit F         Form of Repurchase and Indemnification Report  Exhibit G         Form of Repurchase Settlement Account Disbursement Request   Schedule AI       Approved Investors  Schedule AR       Authorized Seller Representatives List Effective as of July 30, 2020  Schedule BC       The Buyers’ Committed Sums  Schedule BP       List of Basic Papers  Schedule DQ       Disqualifiers  Schedule EL       Eligible Loans  Schedule 1.2      Deposit Accounts  Schedule 15.2(f)  Material Adverse Changes and Contingent Liabilities  Schedule 15.2(g)  Pending Litigation  Schedule 15.2(n)  Existing Liens  Schedule 15.2(s)  Compliance Information  Schedule 15.3     Special Representations and Warranties with Respect to each Purchased                     Loan  Schedule 23       Buyers’ Addresses for Notice as of July 30, 2020                                        -vi-                                                                    Bodman_16842095_7 

 

       SECOND AMENDED AND RESTATED MASTER REPURCHASE AGREEMENT          THIS SECOND AMENDED AND RESTATED MASTER REPURCHASE   AGREEMENT is made and entered into as of July 30, 2020, between and among Pulte Mortgage   LLC, a Delaware limited liability company (the “Seller”), and Comerica Bank, as Agent and   representative of itself as a Buyer and the other Buyers (the “Agent” and sometimes “Comerica   Bank”), and the other Buyers, as defined in Section 1.2.                                         RECITALS   Section 1.  Applicability and Defined Terms.            1.1.  Applicability.  From time to time the parties hereto may enter into transactions  in which the Seller agrees to transfer to the Agent on behalf of the Buyers, Eligible Loans on a  servicing released basis against the transfer of funds by the Buyers, with a simultaneous  agreement by the Buyers to transfer to the Seller such Eligible Loans at a date certain or on  demand in the event of termination pursuant to Section 18.2 hereof, or if no demand is sooner   made, on the Termination Date, against the transfer of funds by the Seller.  Each such transaction   shall be referred to herein as a “Transaction” and shall be governed by this Agreement, as   hereinafter defined.          Comerica Bank has also agreed to provide a separate revolving swing line repurchase   facility to initially and temporarily purchase Eligible Loans pending their purchase by all of the   Buyers pursuant to this Agreement.          The parties hereby specifically declare that it is their intention that this Second Amended   and Restated Master Repurchase Agreement (as amended, restated, supplemented or otherwise   modified from time to time, the “Agreement,” which term includes the preamble above) and the   purchases of Eligible Loans made pursuant to it (under both its regular and swing line   provisions) are to be treated as repurchase transactions under the Title 11 of the United States   Code, as amended (the “Bankruptcy Code”), including all rights that accrue to the Buyers by   virtue of sections 559, 561 and 562 of the Bankruptcy Code.  This Agreement also contains lien   provisions with respect to the Purchased Loans so that if, contrary to the intent of the parties, any   court of competent jurisdiction characterizes any Transaction as a financing, rather than a   purchase, under applicable law, including the applicable provisions of the Bankruptcy Code, the   Agent is deemed to have a first priority perfected security interest in and to the Purchased Loans  to secure the payment and performance of all of the Seller’s Obligations under this Agreement  and the other Repurchase Documents.         The Buyers’ agreement to establish and continue the revolving repurchase facilities, and   Comerica Bank’s agreement to establish and continue such revolving swing line repurchase   facility, are each made upon and subject to the terms and conditions of this Agreement.  If there   is any conflict or inconsistency between any of the terms or provisions of this Agreement and   any of the other Repurchase Documents, this Agreement shall govern and control.  If there is any   conflict between any provision of this Agreement and any later supplement, amendment,   restatement or replacement of it, then the latter shall govern and control.                                                                       Bodman_16842095_7 

 

           1.2.  Defined Terms.  Except where otherwise specifically stated, capitalized terms  used in this Agreement and the other Repurchase Documents have the meanings assigned to  them below or elsewhere in this Agreement.         “Accepted Servicing Practices” means, with respect to any Mortgage Loan, (a) those  mortgage loan servicing standards and procedures in accordance with all applicable state, local  and federal laws, rules and regulations and (b)(i) the mortgage loan servicing standards and  procedures prescribed by Fannie Mae and Freddie Mac, in each case as set forth in the Fannie  Mae Servicing Guide or Freddie Mac Servicing Guide, as applicable, and in the directives or  applicable publications of such agencies, as such may be amended or supplemented from time to  time, or (ii) with respect to any Mortgage Loans and any matters or circumstances as to which no  such standard or procedure applies, the servicing standards, procedures and practices the Seller  uses with respect to its own assets as of the date of this Agreement, subject to reasonable  changes.         “Additional Purchased Loans” means Eligible Loans transferred by the Seller to the  Buyers pursuant to, and as defined in, Section 6.1(a).         “Adjusted Tangible Net Worth” means, as of any date, the sum of (a) all assets of the  Seller and the Subsidiaries on a Consolidated basis, minus (b) the sum of (i) Total Liabilities  (excluding Qualified Subordinated Debt), (ii) all assets of the Seller and the Subsidiaries that  would be classified as intangible assets under GAAP, including, but not limited to, subscribed  stock, goodwill (whether representing the excess of cost over book value of assets acquired or  otherwise), patents, trademarks, trade names, copyrights, franchises, licenses and (iii) unsecured  notes and accounts receivable due from stockholders, directors, officers, members, employees,  Affiliates or other related Persons (other than Parent and Subsidiaries), and (iv) loans held for  investment and real estate acquired by foreclosure or deed in lieu of foreclosure, net of reserves.          “Affiliate” means and includes, with respect to a specified Person, any other Person:               (a)   that directly or indirectly through one or more intermediaries Controls, is        Controlled by or is under common Control with the specified Person (in this definition        only, the term “Control” means having the power to set or direct management policies,        directly or indirectly);               (b)   that is a director, trustee, partner, member or executive officer of the        specified Person or serves in a similar capacity in respect of the specified Person;               (c)   of which the specified Person is a director, trustee, partner, member or        executive officer or with respect to which the specified Person serves in a similar        capacity and over whom the specified Person, either alone or together with one or more        other Persons similarly situated, has Control;               (d)   that, directly or indirectly through one or more intermediaries, is the        beneficial owner of ten percent (10%) or more of any class of equity securities — which        does not include any MBS — of the specified Person; or                                          2                                                                    Bodman_16842095_7 

 

                 (e)   of which the specified Person is directly or indirectly the owner of ten         percent (10%) or more of any class of equity securities of the specified Person.         “Aged Mortgage Loan” shall mean a Mortgage Loan that is an Eligible Loan, and with  respect to which each of the following statements shall be accurate and complete (and Seller by  including such Mortgage Loan in any computation of the Sublimits shall be deemed to so  represent and warrant to the Agent as of the date of such computation):               (a)   Such Mortgage Loan was originally funded in a Transaction under the        Conforming Loan Sublimit or the FHA Low FICO Score Loan Sublimit;                (b)   Immediately prior to becoming an Aged Mortgage Loan, such Mortgage        Loan was included in the Conforming Mortgage Loan Sublimit or the FHA Low FICO        Score Loan Sublimit; and               (c)   Except for the expiration of the Repurchase Date applicable to such        Mortgage Loan prior to the transfer of such Mortgage Loan to the Aged Mortgage Loan        Sublimit from the Conforming Mortgage Loan Sublimit or the FHA Low FICO Score        Loan Sublimit, as applicable, such Mortgage Loan would continue to be eligible under        the Repurchase Agreement as a Conforming Mortgage Loan or an FHA Low FICO Score         Mortgage Loan, as applicable.          “Aged Mortgage Loan Sublimit’ is defined in the table set forth in Section 4.2(c).           “Agency” means Ginnie Mae, Fannie Mae or Freddie Mac.          “Agency MBS” means MBS issued or guaranteed as to timely payment of principal and   interest by Ginnie Mae, Fannie Mae or Freddie Mac.          “Agent” is defined above.          “Agent’s Fees” is defined in Section 9.2.          “Aggregate Outstanding Purchase Price” means as of any Determination Date, an   amount equal to the sum of the Purchase Prices for all Purchased Loans included in all Open   Transactions.          “Agreement” is defined in the Recitals.          “‘Applicable Margin’ means (a) for the Daily Adjusting LIBOR Rate, 1.75% per annum,   and (b) for the Prime Reference Rate, 0.5% per annum.                  “Approved Investor” means Ginnie Mae, Fannie Mae, Freddie Mac and any of the   Persons listed on Schedule AI, as it may be supplemented or amended from time to time by   agreement of the Seller and the Agent; provided, that (a) persons listed on Schedule AI shall be   Approved Investors only with respect to the type(s) of Mortgage Loans for which they are   specified as an “Approved Investor” on Schedule AI, and (b) if the Agent shall give notice to the   Seller of the Agent’s reasonable disapproval of any Approved Investor(s) named in the notice,                                          3                                                                     Bodman_16842095_7 

 

     the Approved Investor(s) so named shall no longer be (an) Approved Investor(s) from and after   the time when the Agent sends that notice to the Seller or such later date as may be specified by   the Agent in its sole discretion.          “Approved MBS Custodian” is defined in Section 1.1 of the Custody Agreement.          “Approved MBS Custodian Account” is defined in Section 1.1 of the Custody Agreement.         “Authorized Seller Representative” means a representative of the Seller duly designated  by all requisite corporate action to execute any certificate, schedule or other document  contemplated or required by this Agreement or the Custody Agreement on behalf of the Seller  and as its act and deed.  A list of Authorized Seller Representatives current as of the Effective  Date is attached as Schedule AR.  The Seller will provide an updated list of Authorized Seller   Representatives to the Agent and the Custodian promptly following each addition to or   subtraction from such list, and the Agent, the Buyers and the Custodian shall be entitled to rely   on each such list until such an updated list is received by the Agent and the Custodian.          “Backup Servicer” means any Person designated by the Agent, in its sole discretion, to   act as a backup servicer of the Purchased Loans in accordance with Section 19.10.          “Bankruptcy Code” is defined in the Recitals.          “Basic Papers” means all of the Loan Papers that must be delivered to the Custodian (in   the case of Dry Loans, prior to the related Purchase Date and, in the case of Wet Loans, on or   before the seventh (7th) Business Day after the related Purchase Date) in order for any particular   Purchased Loan to continue to have Market Value.  Schedule BP lists the Basic Papers.          “Beneficial Ownership Certification” shall mean a certification regarding beneficial   ownership as required by the Beneficial Ownership Regulation.          “Beneficial Ownership Regulation” shall mean 31 C.F.R. § 1010.230, as amended from   time to time.           “Business Day” means any day, other than a Saturday, Sunday or any other day   designated as a holiday under Federal or applicable State statute or regulation, on which Agent is   open for all or substantially all of its domestic and international business (including dealings in   foreign exchange) in Detroit, Michigan, and, in respect of notices and determinations relating to   the Daily Adjusting LIBOR Rate, also a day on which dealings in dollar deposits are also carried   on in the London interbank market and on which banks are open for business in London,   England.          “Buyer” means Comerica Bank and such other Person from time to time party to this   agreement as a “Buyer.”  Persons who are currently Buyers on any day shall be listed as Buyers   in Schedule BC in effect for that day.          “Buyer Affiliate” means (a) with respect to any Buyer, (i) an Affiliate of such Buyer or   (ii) any entity (whether a corporation, partnership, trust or otherwise) that is engaged in making,   purchasing, holding or otherwise investing in securities and mortgage reverse repurchase                                          4                                                                     Bodman_16842095_7 

 

     agreements, bank loans and similar financial arrangements in the ordinary course of its business   and is administered or managed by such Buyer or an Affiliate of such Buyer and (b) with respect  to any Buyer that is a fund which invests in securities and mortgage reverse repurchase  agreements, bank loans and similar financial arrangements, any other fund that invests in  securities and mortgage reverse repurchase agreements, bank loans and similar financial  arrangements and is managed by the same investment advisor as such Buyer or by an Affiliate of  such investment advisor.         “Buyers’ Margin Percentage” means:               (a)   for Conforming Mortgage Loans (other than Aged Mortgage Loans),        ninety-seven percent (97%);                (b)   for FHA Low FICO Score Mortgage Loans (other than Aged Mortgage        Loans), ninety-seven percent (97%);               (c)   for Jumbo Mortgage Loans, ninety-seven percent (97%);               (d)   for Aged Mortgage Loans, ninety-seven percent (97%);               (e)   for Second Mortgage Loans, fifty percent (50%);                (f)   for Non-QM Mortgage Loans, ninety percent (90%);               (g)   for Discretionary Loans, the Buyer’s Margin Percentage for the underlying        type of Purchased Loan which would apply if such Mortgage Loan met the requirements        waived by Agent under Section 22.8; and                (h)   for Wet Loans, the Buyer’s Margin Percentage for the underlying type of         Purchased Loan which would apply if such Purchased Loan were a Dry Loan.           “Cash Equivalents” means and includes, on any day:               (a)   any evidence of debt issued by the United States government or any        agency thereof, or guaranteed as to the timely payment of principal and interest by the        United States government, and maturing ninety (90) days or less after that day; and               (b)   any demand deposit, time deposit, certificate of deposit or banker’s        acceptance maturing not more than ninety (90) days after that day and issued by a        commercial bank that either (i) is insured by the Federal Deposit Insurance Corporation        or (ii) is a member of the Federal Reserve System and has a combined unimpaired capital        and surplus and unimpaired undivided profits of not less than Two Hundred Fifty Million        Dollars ($250,000,000); and               (c)   money market and cash accounts and money market funds which are        invested in investments of the types described above or in commercial paper maturing no        more than 90 days from the date of creation thereof and which is rated at least “A-1” by        Standard & Poor’s Corporation or at least “P-1” by Moody’s Investors Service, Inc.                                          5                                                                     Bodman_16842095_7 

 

         “Central Elements” means and includes the value of a substantial part of the Purchased  Loans; the prospects for payment of each portion of the Repurchase Price, both Purchase Price  and Price Differential, when due; the validity or enforceability of this Agreement and the other  Repurchase Documents and, as to any Person referred to in any reference to the Central  Elements, such Person’s property, business operations, financial condition and ability to fulfill  and perform its obligations under this Agreement and the other Repurchase Documents to which  it is a party, each taken as a whole, and such Person’s prospects of continuing in business as a  going concern.         “Certified Copy” means a copy of an original Basic Paper or Supplemental Paper  accompanied by (or on which there is stamped) a certification by an officer of either a title  insurer or an agent of a title insurer (whether a title agency or a closing attorney) or, except  where otherwise specified below, by an Authorized Seller Representative or an officer of the  Servicer (if other than the Seller) or subservicer of the relevant Mortgage Loan, that such copy is  a true copy of the original and (if applicable) that the original has been sent to the appropriate  governmental filing office for recording in the jurisdiction where the related Mortgaged Premises  are located.  Each such certification shall be conclusively deemed to be a representation and  warranty by the certifying officer, agent, Authorized Seller Representative or officer of the  relevant Servicer or subservicer, as applicable, to the Agent, the Buyers and the Custodian upon  which each may rely.         “Change in Law” means the occurrence, after the Effective Date, of any of the following:   (a) the adoption or introduction of any applicable Legal Requirement now or hereafter in effect  and whether or not applicable to any Buyer or Agent on such date, (b) any change in any  applicable Legal Requirement or in the interpretation or application thereof by any  Governmental Authority, or (c) the issuance, making or implementation by any Governmental  Authority of any interpretation, administration, request, regulation, guideline, or directive  (whether or not having the force of law), including any risk-based capital guidelines.  For  purposes of this definition, (x) a change in any Legal Requirement or in the interpretation,  application, administration or implementation thereof, shall include, without limitation, any  change made or which becomes effective on the basis of a Legal Requirement or any  interpretation, administration or implementation thereof then in force, the effective date of which  change is delayed by the terms of such Legal Requirement or interpretation, administration or  implementation thereof, (y) the Dodd-Frank Wall Street Reform and Consumer Protection Act  (Pub. L. 111-203, H.R. 4173) and all requests, rules, regulations, guidelines, interpretations or  directives promulgated thereunder or issued in connection therewith shall be deemed to be a  “Change in Law”, regardless of the date enacted, adopted, issued or promulgated, and (z) all  requests, rules, guidelines or directives promulgated by the Bank for International Settlements,  the Basel Committee on Banking Supervision (or any successor or similar authority) or the  United States regulatory authorities, in each case pursuant to Basel III, shall each be deemed to  be a "Change in Law", regardless of the date enacted, adopted, issued or implemented.         “Change of Control” in respect of the Seller means the occurrence of Parent not owning  directly, or indirectly, 100% of the issued and outstanding ownership interests of the Seller.         “Collateral” has the meaning given the term in Section 10.1.                                         6                                                                    Bodman_16842095_7 

 

           “Combined Loan to Value” shall mean, with respect to any Second Mortgage Loan, a   fraction expressed as a percentage, (a) the numerator of which is the sum of the outstanding   principal amount of such Second Mortgage Loan plus the outstanding principal amount of the   first Mortgage Loan encumbering the subject real property, divided by (b) the appraised value of   the subject real estate encumbered thereby based on a current appraisal and by an appraiser   acceptable to Agent.          “Commitment” means, for each Buyer, its commitment under Section 2.1, subject to   reduction or increase as described in Section 2.6, to fund its Funding Share of Transactions,   limited to such Buyer’s Committed Sum.            “Committed Sum” means, for any day, the maximum total amount a Buyer is committed   to fund for the purchase from the Seller of Eligible Loans on a revolving basis pursuant to this   Agreement, on its terms and subject to its conditions.  From the Effective Date of this Agreement   through the Termination Date or such other date (if any) when all or any of them is changed by   operation of the provisions of any agreement or Legal Requirement, the Committed Sums for the   Buyers are as set forth on Schedule BC, as it may be amended and restated from time to time.          “Competitor” means an entity which (a) either (i) competes with the Parent or its   Affiliates in the home building business, or (ii) is in the business of making, purchasing, holding   or otherwise investing in residential Mortgage Loans in the ordinary course of its business, and   (b) is not in the business of making, purchasing, holding or otherwise investing in commercial   loans or similar extensions of credit in the ordinary course of its business.          “Conforming Mortgage Loan” means a first priority Single-family residential Mortgage   Loan (a) that is FHA insured, VA guaranteed, a conventional mortgage loan that fully conforms   to all Agency underwriting and other requirements, or a Housing Authority Loan, and (b) the   obligor for which has a FICO Score of not less than (i) if a Housing Authority Loan, 600, or (ii)   if not a Housing Authority Loan, 620.          “Conforming Loan Sublimit” is defined in Section 4.2(a).          “Consolidated” refers to the consolidation of any Person, in accordance with GAAP, with   its properly consolidated subsidiaries.  References herein to a Person’s Consolidated financial   statements refer to the consolidated financial statements of such Person and its properly   consolidated subsidiaries.          “Contingent Indebtedness” of any Person at a particular date means the sum (without   duplication) at such date of (a) all obligations of such Person in respect of letters of credit,   acceptances, or similar obligations issued or created for the account of such Person, (b) all   obligations of such Person under any contract, agreement or understanding of such Person   pursuant to which such Person guarantees, or in effect guarantees, any indebtedness or other   obligations of any other Person in any matter, whether directly or indirectly, contingently or   absolutely, in whole or in part (excluding such Person’s contingent liability as endorser of   negotiable instruments for collection in the ordinary course of business), (c) all liabilities secured   by any Lien on any property owned by such Person, whether or not such Person has assumed or  otherwise become liable for the payment thereof and (d) any liability of such Person or any                                          7                                                                     Bodman_16842095_7 

 

     Affiliate thereof in respect of unfunded vested benefits under any ERISA Plan, in each case   excluding any such liabilities or obligations that constitute Debt.          “Corporation Tax Treatment Certificate” is defined in Section 7.5(a).          “Currency Agreement” means any foreign exchange contract, currency swap agreement,  futures contract, option contract, synthetic cap or other similar agreement or arrangement for the  purpose of hedging the currency risk associated with the Seller’s and its Subsidiaries’ operations  and not for speculative purposes.         “Custodian” means Truist Bank, formerly known as Branch Banking and Trust   Company, as Custodian under the Custody Agreement, or any successor custodian under the   Custody Agreement acceptable to the Agent.           “Custodian’s Fees” are the fees to be paid by the Seller to the Custodian for its services   under the Custody Agreement, as provided for in the Custody Agreement or by a separate   agreement.  Such fees are separate from and in addition to other fees to be paid to the Buyers and   the Agent provided for in this Agreement.          “Custody Agreement” means the Custody Agreement dated as of February 15, 2019 by   and among the Agent, the Seller and the Custodian, as it may be supplemented, amended or   restated from time to time.           “Customer” means and includes each maker of a Mortgage Note and each cosigner,   guarantor, endorser, surety and assumptor thereof, and each mortgagor or grantor under a   Mortgage, whether or not such Person has personal liability for its payment of the Mortgage   Loan evidenced or secured thereby, in whole or in part.          “Daily Adjusting LIBOR Rate” means, for any day, a per annum interest rate which is   equal to the Applicable Margin plus quotient of the following:                (a)   for any day, the per annum rate of interest determined on the basis of the                     rate for deposits in United States Dollars for a period equal to one (1)                     month appearing on Page BBAM of the Bloomberg Financial Markets                     Information Service as of 11:00 a.m. (Detroit, Michigan time) (or as soon                     thereafter as practical) on such day, or if such day is not a Business Day,                     on the immediately preceding Business Day.  In the event that such rate                    does not appear on Page BBAM of the Bloomberg Financial Markets                    Information Service (or otherwise on such Service) on any day, the “Daily                    Adjusting LIBOR Rate” for such day shall be determined by reference to                    such other publicly available service for displaying eurodollar rates as may                    be reasonably selected by Agent, or, in the absence of such other service,                    the “Daily Adjusting LIBOR Rate” for such day shall, instead, be                    determined based upon the average of the rates at which Agent is offered                    dollar deposits at or about 11:00 a.m. (Detroit, Michigan time) (or as soon                    thereafter as practical), on such day, or if such day is not a Business Day,                    on the immediately preceding Business Day, in the interbank eurodollar                                          8                                                                     Bodman_16842095_7 

 

                     market in an amount comparable to the principal amount outstanding                    hereunder and for a period of one (1) month;               divided by               (b)   1.00 minus the maximum rate (expressed as a decimal) on such day at                    which Agent is required to maintain reserves on “Euro-currency                    Liabilities” as defined in and pursuant to Regulation D of the Board of                    Governors of the Federal Reserve System or, if such regulation or                    definition is modified, and as long as Agent is required to maintain                    reserves against a category of liabilities which includes eurodollar deposits                    or includes a category of assets which includes eurodollar loans, the rate at                    which such reserves are required to be maintained on such category.               provided, however, and notwithstanding anything to the contrary set forth in this              Agreement, if at any time the Daily Adjusting LIBOR Rate determined as              provided above would be less than the Daily Adjusting LIBOR Floor then the              Daily Adjusting LIBOR Rate shall be deemed to be the Daily Adjusting LIBOR              Floor per annum for all purposes of this Agreement. Each calculation by Agent of              the Daily Adjusting LIBOR Rate shall be conclusive and binding for all purposes,              absent manifest error.         “Daily Adjusting LIBOR Floor” shall mean seventy five hundredths of one percent  (0.75%) per annum.         “Debt” means, with respect to any Person, on any day, the sum of the following (without  duplication):               (a)   all of that Person’s debt or other obligations which, in accordance with        GAAP, should be included in determining total liabilities as shown on the liabilities side        of that Person’s balance sheet for that day;               (b)   all of that Person’s debt or other obligations for borrowed money or for        the deferred purchase price of property or services, except that non-recourse MBS Debt        arising out of transactions structured to qualify for GAAP sale treatment shall be        excluded;               (c)   all of any other Person’s debt or other obligations for borrowed money or        for the deferred purchase price of property or services in respect of which such Person is        liable, contingently or otherwise, to pay or advance money or property as guarantor,        surety, endorser or otherwise (excluding such Person’s contingent liability as endorser of        negotiable instruments for collection in the ordinary course of business), or which such        Person has agreed to purchase or otherwise acquire;               (d)   the aggregate principal balance, or repurchase price obligation, of that        Person under repurchase agreements, reverse repurchase agreements, mortgage        warehouse lines of credit, sale/buy-back agreements or like arrangements;                                         9                                                                    Bodman_16842095_7 

 

                 (e)   all debt for borrowed money or for the deferred purchase price of property         or services secured by a Lien on any property owned or being purchased by that Person         (even though that Person has not assumed or otherwise become liable for the payment of         such debt) to the extent that such debt would not be otherwise counted as a liability for         purposes of determining that Person’s net worth and to the extent that such debt is less         than or equal to the net book value of such property; and                (f)   net payment obligations of that Person in respect of any exchange traded         or over the counter derivative transaction, including any Hedge Agreement whether         entered into for hedging or speculative purposes;    provided that, for purposes of this Agreement, there shall be excluded from the calculation of   Debt for that day both (i) such Person’s obligations to pay to another Person any sums collected   and held by the subject Person (as loan servicer, escrow agent or collection agent or in a similar   capacity) for the account of such other Person, and (ii) Qualified Subordinated Debt.          “Debtor Relief Laws” means the Bankruptcy Code, and all other liquidation,  conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement,  receivership, insolvency, reorganization, or similar debtor relief laws of the United States or  other applicable jurisdictions from time to time in effect.         “Default” means the occurrence of any event or existence of any condition that, but for  the giving of notice, the lapse of time or both, would constitute an Event of Default.         “Default Pricing Rate” means, on any day and with respect to any Transaction, a rate per  annum equal to the otherwise applicable Pricing Rate plus two percent (2%) per annum.         “Defaulting Buyer” means any Buyer, as determined by the Agent, that has (a) failed to  fund any portion of its Transactions (including any Swing Line Transactions syndicated pursuant  to Section 2.5) within two Business Days of the date required to be funded by it hereunder, (b)  notified the Seller, the Agent or any Buyer in writing that it does not intend to comply with any  of its funding obligations under this Agreement or has made a public statement to the effect that  it does not intend to comply with its funding obligations under this Agreement, other mortgage  repurchase agreements or any agreements in which it commits to extend credit, (c) failed, within  two Business Days after request by the Agent, to confirm that it will comply with the terms of  this Agreement relating to its obligations to fund prospective Transactions and participations in  then outstanding Swing Line Transactions (provided that such Buyer shall cease to be a  Defaulting Buyer pursuant to this clause (c) upon receipt of such written confirmation by the  Agent), (d) otherwise failed to pay over to the Agent or any other Buyer any other amount  required to be paid by it hereunder within two Business Days of the date when due, unless the  subject of a good faith dispute, or (e) (i) become the subject of a proceeding under any Debtor  Relief Law, or (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator,  assignee for the benefit of creditors or similar Person charged with reorganization or liquidation  of its business or assets, including the Federal Deposit Insurance Corporation or any other state  or federal regulatory authority acting in such a capacity; provided that a Buyer shall not be a  Defaulting Buyer solely by virtue of the ownership or acquisition of any equity interest in that  Buyer or any direct or indirect parent company thereof by a Governmental Authority, so long as                                          10                                                                     Bodman_16842095_7 

 

     such ownership interest does not result in or provide such Buyer with immunity from the   jurisdiction of courts within the United States or from the enforcement of judgments or writs of   attachment on its assets or permit such Buyer (or such Governmental Authority) to reject,   repudiate, disavow or disaffirm any contracts or agreements made with such Buyer.  Any   determination by the Agent that a Buyer is a Defaulting Buyer under any one or more of clauses   (a) through (e) above shall be conclusive and binding absent manifest error, and such Buyer shall   be deemed to be a Defaulting Buyer upon delivery of written notice of such determination to the   Seller, Swing Line Buyer and each Buyer.          “Determination Date” means the date as of, or for, which a specified characteristic of a  Mortgage Loan or other subject matter is being determined for purposes of a provision of this  Agreement or another Repurchase Document.         “Discretionary Loans” means Mortgage Loans approved for purchase by the Agent or  with respect to which Agent has provided a waiver pursuant to Section 22.8.          “Discretionary Loan Sublimit” is defined in the table set forth in Section 4.2(c).          “Disqualifier” means any of the circumstances or events affecting Purchased Loans that   are described on Schedule DQ.          “Dry Loan” means an Eligible Loan originated by the Seller that has been closed, funded   and qualifies without exception as an Eligible Loan, including satisfying the requirement that all   of its Basic Papers have been delivered to the Custodian.          “Effective Date” means July 30, 2020.          “Electronic Agent” means MERSCORP, Inc. or its successor in interest or assigns.          “Electronic Tracking Agreement” means a written Electronic Tracking Agreement among   the Seller, the Agent, MERS and the Electronic Agent, in form and substance acceptable to the   Seller and the Agent, as it may be supplemented, amended, restated or replaced from time to   time.          “Electronic Transmission” means each document, instruction, authorization, file,   information and any other communication transmitted, posted or otherwise made or   communicated by e-mail or E-Fax, or otherwise to or from an E-System or other equivalent   service.          “Eligible Assignee” means (a) a Buyer; (b) a Buyer Affiliate; or (c) any other Person   (other than a natural person) approved by the (i) Agent and Swing Line Buyer, and (ii) unless an   Event of Default has occurred and is continuing, the Seller (each such approval not to be   unreasonably withheld or delayed); provided that (x) notwithstanding the foregoing, “Eligible   Assignee” shall not include any natural person, the Seller, or any of the Seller’s Affiliates or   Subsidiaries, (y) no assignment shall be made to a Defaulting Buyer (or a Person who would be a   Defaulting Buyer if such Person was a Buyer hereunder) without the consent of Agent and   Seller; and (z) that notwithstanding clause (c)(ii) of this definition, so long as no Event of                                          11                                                                     Bodman_16842095_7 

 

     Default has occurred and is continuing, no assignment shall be made to a Competitor without the   consent of the Seller, which consent may be withheld in its sole discretion.          “Eligible Loans” is defined on Schedule EL.          “Eligible Loans Report” is defined in the Custody Agreement.          “ERISA” means the Employee Retirement Income Security Act of 1974 and any   successor statute, as amended from time to time, and all rules and regulations promulgated under   it.          “ERISA Affiliates” means all members of the group of corporations and trades or   businesses (whether or not incorporated) that, together with the Seller, are treated as a single   employer under Section 414 of the Internal Revenue Code.          “ERISA Plan” means any pension benefit plan subject to Title IV of ERISA or   Section 412 of the Internal Revenue Code maintained or contributed to by the Seller or any   ERISA Affiliate with respect to which the Seller has a fixed or contingent liability.         “Escrow Account” means the Escrow Account established by the Seller with a bank  reasonably satisfactory to the Agent under Section 8, and subject to the control of the Agent into   which amounts paid for escrow accumulation under Purchased Loans are paid for purposes of   paying taxes, insurance and other appropriate escrow charges.            “E-System” means any electronic system and any other Internet or extranet-based site,  whether such electronic system is owned, operated or hosted by the Agent, any of its Affiliates or  any other Person, providing for access to data protected by passcodes or other security system.         “Event of Default” is defined in Section 18.1.          “Event of Insolvency” means, as to any Person:                (a)   such Person has commenced as debtor any case or proceeding under any         bankruptcy, insolvency, reorganization, moratorium, delinquency, arrangement,         readjustment of debt, liquidation, dissolution, or similar law of any jurisdiction whether         now or hereafter in effect, or consents to the filing of any petition against it under such         law, or petitions for, causes or consents to the appointment or election of a receiver,         conservator, liquidator, trustee, sequestrator, custodian or similar official for such Person         or any substantial part of its property, or an order for relief is entered under the         Bankruptcy Code; or any of such Person’s property is sequestered by court or order; or         the convening by such Person of any meeting of creditors for purposes of commencing         any such case or proceeding or seeking such an appointment or election;                (b)   the commencement of any such case or proceeding against such Person, or         another Person’s seeking an appointment or election of a receiver, conservator, liquidator,         trustee, sequestrator, custodian or similar official for such Person, or any substantial part         of its property, or the filing against the such Person of an application for a protective         decree under the provisions of SIPA which  (i) is consented to or not timely contested by                                          12                                                                     Bodman_16842095_7 

 

         such Person, (ii) results in the entry of an order for relief, such an appointment or        election, the issuance of such a protective decree, or the entry of an order having a similar        effect or (iii) is not dismissed within sixty (60) days;               (c)   the making by such Person of a general assignment for the benefit of        creditors; or               (d)   the inability of such Person to, or the admission by such Person of its        inability or its intention not to, pay its debts as they become due.         “Exception Report” is defined in the Custody Agreement.         “Excluded Swap Obligation” shall mean any obligation of Seller to any Buyer with  respect to a “swap,” as defined in Section 1a(47) of the Commodity Exchange Act (“CEA”), if  and to the extent that Seller’s guaranteeing of, or granting of a security interest or lien to secure,  such swap obligation, is or becomes illegal under the CEA, or any rule, regulation or order of the  Commodity Futures Trading Commission (or the application or official interpretation of any  thereof), by virtue of Seller’s failure for any reason to constitute an “eligible contract  participant,” as defined in Section 1a(18) of the CEA and the regulations thereunder, at the time  such guarantee or such security interest grant becomes effective with respect to such swap  obligation.  If any such swap obligation arises under a master agreement governing more than  one swap, the foregoing exclusion shall apply only to those swap obligations that are attributable  to swaps in respect of which Seller’s guaranteeing of, or granting of a security interest or lien to  secure, such swaps is or becomes illegal.        “Excluded Taxes” is defined in Section 7.5.         “Facility Fee” is defined in Section 9.1.         “Fannie Mae” means Federal National Mortgage Association and any successor thereto  or to the functions thereof.         “Federal Funds Effective Rate” shall mean, for any day, a fluctuating interest rate per  annum equal to the weighted average of the rates on overnight Federal funds transactions with  members of the Federal Reserve System arranged by Federal funds brokers, as published for  such day (or, if such day is not a Business Day, for the next preceding Business Day) by the  Federal Reserve Bank of New York, or, if such rate is not so published for any day which is a  Business Day, the average of the quotations for such day on such transactions received by Agent  from three Federal funds brokers of recognized standing selected by Agent, all as conclusively  determined by the Agent, such sum to be rounded upward, if necessary, in the discretion of the  Agent, to the nearest whole multiple of 1/100th of 1%.         “Fee Letter” means that certain letter dated as of June 13, 2019, from the Agent to the  Seller.         “FHA” means the Federal Housing Administration and any successor.                                           13                                                                    Bodman_16842095_7 

 

           “FHA Low FICO Score Mortgage Loan” means a Mortgage Loan that would be a  Conforming Mortgage Loan except that the FICO Score for the obligor of such Mortgage Loan  does not meet the requirements of Paragraph (b) of the definition of Conforming Mortgage Loan.         “FHA Low FICO Score Loan Sublimit” is defined in the table set forth in Section 4.2(c).          “Freddie Mac” means the Federal Home Loan Mortgage Corporation and any successor   thereto or to the functions thereof.          “FICA” means the Federal Insurance Contributions Act.          “FICO” means Fair Isaac Corporation and, where used in this Agreement, refers to the   credit scoring system developed by that company or to any other Customer credit scoring system   whose use by the Seller (for purposes of this Agreement and the Transactions) has been   specifically approved in writing by the Agent.          “File” means a file in the possession of the Custodian containing all of the Loan Papers   for the relevant type of Mortgage Loan. File is referred to as “Purchased Loan File” in the   Custody Agreement.          “Financial Statements” is defined in Section 15.2(f).          “Fronting Exposure” shall mean, at any time there is an Defaulting Buyer, with respect to   the Swing Line Buyer, such Defaulting Buyer’s Percentage of outstanding Swing Line   Transactions made by the Swing Line Buyer.          “Funding Account” means the Seller’s non-interest bearing demand deposit account    maintained with Comerica Bank and described in Schedule 1.2 into which the Agent may   transfer funds (funds paid by the Buyers as Purchase Price) and from which the Seller is   authorized to disburse funds in accordance with the terms and conditions of this Agreement so   long as no Event of Default exists or will result therefrom.  After the occurrence and during the   continuance of an Event of Default, Seller shall have no further access to the Funding Account,   the Funding Account shall be under the exclusive control of the Agent, and the Funding Account   shall be subject to setoff by the Agent for Pro Rata distribution to the Buyers.          “Funding Share” means, for each Buyer, that proportion of the sum of the original   Purchase Prices for the Mortgage Loans to be purchased in a Transaction that bears the same   ratio to the total amount of such sum as that Buyer’s Committed Sum bears to the Maximum   Aggregate Commitment.          “GAAP” means, for any day, generally accepted accounting principles, applied on a   consistent basis, stated in the opinions and pronouncements of the Accounting Principles Board   and the American Institute of Certified Public Accountants, or in statements and pronouncements   of the Financial Accounting Standards Board or in such other statements by another entity or   entities as may be approved by a significant segment of the accounting profession, that are   applicable to the circumstances for that day.  The requirement that such principles be applied on   a consistent basis means that the accounting principles observed in a current period shall be   comparable in all material respects to those applied in an earlier period, with the exception of                                          14                                                                     Bodman_16842095_7 

 

   changes in application to which the Seller’s independent certified public accountants have agreed  and which changes and their effects are summarized in the subject company’s financial  statements following such changes.  If (a) at any time any change in GAAP would affect the  computation of any financial ratio or requirement set forth in this Agreement and (b) the Seller or  the Required Buyers regard such change(s) as adverse to their respective interests, then upon  written notice by the Seller to Agent, or by the Agent or the Required Buyers to the Seller, the  parties to this Agreement shall negotiate in good faith to amend such ratio or requirement to  preserve the original intent thereof in light of such change in GAAP (subject to the approval of  the Required Buyers); provided that, until so amended, (i) such ratio or requirement shall  continue to be computed in accordance with GAAP prior to such change therein and (ii) the  Seller shall provide to the Agent and Buyers Seller’s financial statements and other documents  required under this Agreement or as reasonably requested hereunder setting forth a reconciliation  between calculations of such ratio or requirement made before and after giving effect to such  change in GAAP, provided that neither the Agent nor any of the Buyers shall be obligated to  commence, continue or conclude any such negotiation or to execute any such supplement or  amendment after any Event of Default has occurred (other than an Event of Default caused by  such change) that has not been cured by the Seller or that the Agent has not declared in writing to  have been waived in accordance with Section 22.         “Ginnie Mae” means the Government National Mortgage Association and any successor.         “Governmental Authority” means the government of the United States of America or any  other nation, or of any political subdivision thereof, whether state or local, and any agency,  authority, instrumentality, regulatory body, court, central bank or other entity exercising  executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or  pertaining to government (including without limitation any supranational bodies such as the  European Union or the European Central Bank) and any group or body charged with setting  financial accounting or regulatory capital rules or standards (including, without limitation, the  Financial Accounting Standards Board, the Bank for International Settlements or the Basel  Committee on Banking Supervision or any successor or similar authority to any of the  foregoing).         “Hazard Insurance Policy” means, with respect to each Purchased Loan, the policy of  fire and extended coverage insurance required to be maintained for the related Mortgaged  Premises’ improvements (and, if the related Mortgaged Premises are located in a federally- designated special flood area, federal flood insurance issued in accordance with the Flood  Disaster Protection Act of 1973, as amended from time to time, or, if repealed, any superseding  legislation governing similar insurance coverage, or similar coverage against loss sustained by  floods or similar hazards that conforms to the flood insurance requirements prescribed by Fannie  Mae guidelines, which may be provided under a separate insurance policy), which insurance may  be a blanket mortgage impairment policy.         “Hedge Agreement” means an Interest Rate Protection Agreement, a Currency  Agreement or a forward sales agreement entered into in the ordinary course of the Seller’s or any  of its Subsidiaries’ businesses to protect the Seller against changes in interest rates or the market  value of assets.                                         15                                                                    Bodman_16842095_7 

 

           “Housing Authority Loan” means a Mortgage Loan which is covered by an Investor   Commitment from a state housing authority under a government bond loan program.           “HUD” means the U.S. Department of Housing and Urban Development and any   successor.          “In Default” means that, as to any Mortgage Loan, any Mortgage Note payment or   escrow payment is unpaid for thirty (30) days or more after its due date (whether or not the Seller   has allowed any grace period or extended the due date thereof by any means) or another material   default has occurred and is continuing, including the commencement of foreclosure or the   commencement of a case in bankruptcy for any Customer in respect of such Mortgage Loan.          “Income” means, with respect to any Purchased Loan on any day, all payments of   principal, interest and other distributions thereon or proceeds thereof paid to the relevant party.          “Income Account” means a demand deposit account established by the Seller with   Comerica Bank and described in Schedule 1.2 under the provisions of Section 8, which shall be   subject to the control of the Agent.          “Indemnified Liabilities” is defined in Section 20.2.           “Indemnified Parties” is defined in Section 20.2.          “Interest Rate Protection Agreement” means, with respect to any or all of the Purchased   Loans, any short sale of any U.S. Treasury securities, futures contract, mortgage related security,   Eurodollar futures contract, options related contract, interest rate swap, cap or collar agreement   or similar arrangement providing for protection against fluctuations in interest rates or the   exchange of nominal interest obligations, either generally or under specific contingencies, that is   entered into by the Seller and a financial institution and is reasonably acceptable to the Agent.          “Internal Revenue Code” means the Internal Revenue Code of 1986 or any subsequent   federal income tax law or laws, as amended from time to time.          “Investor Commitment” means an unexpired written commitment held by the Seller from   an Approved Investor to buy Purchased Loans, and that specifies (a) the type or item(s) of  Purchased Loan, (b) a purchase date or purchase deadline date and (c) a purchase price or the   criteria by which the purchase price will be determined.          “Jumbo Mortgage Loan” means a Mortgage Loan that (a) would be a Conforming   Mortgage Loan except that the original principal amount is more than the maximum Agency loan   amount, but not more than Two Million Dollars ($2,000,000) unless approved by Agent, and (b)   the obligor of such Mortgage Loan has a FICO Score of not less than 680.          “Jumbo Loan Sublimit” is defined in Section 4.2(c).          “Legal Requirement” means any law, statute, ordinance, decree, ruling, treaty,  requirement, order, judgment, rule or regulation (or interpretation of any of them), including any  of the foregoing that relate to environmental standards or controls, energy regulations and                                          16                                                                     Bodman_16842095_7 

 

     occupational safety and health standards or controls, of any (domestic or foreign) court or other   Governmental Authority, and the terms of any license, permit, consent or approval issued by any   Governmental Authority.          “LIBOR Lending Office” means Agent's office located in the Cayman Islands, British   West Indies, or such other branch of Agent, domestic or foreign, as it may hereafter designate as   its LIBOR Lending Office by notice to the Seller.          “Lien” means any lien, mortgage, deed of trust, pledge, security interest, charge or  encumbrance of any kind (including any conditional sale or other title retention agreement, any  lease in the nature thereof and any agreement to give any security interest).          “Liquidity” means, as of any date of determination, (a) the market value, as reasonably   determined by Agent, of all cash or Cash Equivalents (including any amounts held in the   Funding Account, Operating Account or Income Account), beneficially owned by Seller as of   such date and which are not subject to any pledge, security interest, lien, mortgage,   hypothecation or other encumbrance, except (i) in favor of Agent to secure the Obligations, and   (ii) in the case of cash deposits held in a deposit account at a financial institution (other than   Agent), in favor of such financial institution to secure deposit account-related liabilities arising in  the ordinary course so long as Seller has the unrestricted right, at any time, to access, withdraw,  assign or transfer such deposits, and such deposits are not subject to any account control  agreement or other agreement under which such rights are or can be restricted (other than in  favor of the Agent), plus (b) the amount by which the aggregate Purchase Value of all Purchased   Loans at such time exceeds the aggregate Purchase Price outstanding for all Open Transactions   at such time, provided, however, for purposes of this paragraph (b), the “Purchase Value” of   Purchased Loans shall not be reduced by the proviso in subparagraph (i) of paragraph (b) of the   definition of “Purchase Value.”          “Loan Papers” means the Mortgage Note and all of the other papers related to the  establishment of a Purchased Loan and the creation, perfection and maintenance of its lien and  lien priority for such Purchased Loan, including its Basic Papers and its Supplemental Papers  and including any papers securing, guaranteeing or otherwise related to or delivered in  connection with any Purchased Loan, in a form reasonably acceptable to the Agent (including  any guaranties, lien priority agreements, security agreements, mortgages, deeds of trust,  collateral assignments of the Seller’s interest in underlying obligations or security, subordination  agreements, intercreditor agreements, negative pledge agreements, loan agreements,  management agreements, development agreements, design professional agreements, payment,  performance or completion bonds, mortgage security and insurance contracts, title, mortgage,  pool, casualty, flood and earthquake insurance policies, binders and commitments, FHA  insurance and VA guaranties, participation certificates and agreements, financing statements and  investor or purchase commitments), as any such Loan Paper may be supplemented, amended,  restated or replaced from time to time.         “Loan Records” means books, records, ledger cards, files, papers, documents,  instruments, certificates, appraisal reports, surveys, bonds, journals, reports, correspondence,  customer lists, information and data that describes, catalogs or lists such information or data,  computer printouts, media (tapes, discs, cards, drives, flash memory or any other kind of                                          17                                                                     Bodman_16842095_7 

 

     physical, electronic or virtual data or information storage media or systems) and related data   processing software (subject to any licensing restrictions) and similar items that at any time   evidence or contain information relating to any of the Purchased Loans, and other information   and data that is used or useful for managing and administering the Purchased Loans, together   with the nonexclusive right to use (in common with the Seller and any repurchase agreement   counterparty or secured party that has a valid and enforceable interest therein and that agrees that   its interest is similarly nonexclusive) the Seller’s operating systems to manage and administer   any of the Purchased Loans and any of the related data and information described above, or that   otherwise relates to the Purchased Loans, together with the media on which the same are stored   to the extent stored with material information or data that relates to property other than the   Purchased Loans (tapes, discs, cards, drives, flash memory or any other kind of physical or   virtual data or information storage media or systems), and the Seller’s rights to access the same,   whether exclusive or nonexclusive, to the extent that such access rights may lawfully be   transferred or used by the Seller’s permittees, and any computer programs that are owned by the   Seller (or licensed to the Seller under licenses that may lawfully be transferred or used by the   Seller’s permittees) and that are used or useful to access, organize, input, read, print or otherwise   output and otherwise handle or use such information and data.          “Margin Call” is defined in Section 6.1(a).          “Margin Deficit” is defined in Section 6.1(a).          “Margin Excess” is defined in Section 6.1(b).          “Margin Stock” has the meaning assigned to that term in Regulation U as in effect from   time to time.          “Market Value” means what the Agent determines as the market value of any Purchased   Loan, using a commercially reasonable methodology that is, in its sole discretion, in accordance   with standards customarily applicable in the financial industry to third party service providers   providing values on comparable assets to be used in connection with the financing of such assets,   without reference to Hedge Agreements or Investor Commitments.  The Agent’s determination   of Market Value hereunder shall be conclusive and binding upon the parties, absent manifest   error.          “Maximum Aggregate Commitment” means the maximum Aggregate Outstanding   Purchase Price that is allowed to be outstanding under this Agreement on any day, being the   amount set forth in Schedule BC in effect for that day, as decreased and increased pursuant to   Section 2.6 and Schedule BC.  If and when some or all of the Buyers then party to this   Agreement agree in writing to increase their Committed Sums — or if a new Person joins this   Agreement as a Buyer in accordance with Section 2.6, or if there is both such an increase and   such a joinder — so that the aggregate amount of Committed Sums exceeds the Maximum   Aggregate Commitment then in effect, Schedule BC shall be deemed automatically amended and   restated to reflect the new Maximum Aggregate Commitment (as an amount equal to the new   aggregate amount of Committed Sums) and the Agent shall deliver same to the Seller and the  Buyers.                                           18                                                                     Bodman_16842095_7 

 

           “MBS” means a mortgage pass-through security, collateralized mortgage obligation,   REMIC or other security that (a) is based on and backed by an underlying pool of Mortgage   Loans and (b) provides for payment by its issuer to its holder of specified principal installments   and/or a fixed or floating rate of interest on the unpaid balance and for all prepayments to be   passed through to the holder, whether issued in certificated or book-entry form and whether or  not issued, guaranteed, insured or bonded by Ginnie Mae, Fannie Mae, Freddie Mac, an  insurance company, a private issuer or any other investor.         “MBS Custodial Agreement” is defined in Section 1.1 of the Custody Agreement.         “MBS Sale Proceeds” means proceeds from the sale of Purchased Loans securitized as  MBS and the resulting securities.         “MERS” means Mortgage Electronic Registration Systems, Inc., a Delaware corporation,  or its successors or assigns.         “MERS Designated Loan” means a Purchased Loan registered to the Seller on the  MERS® System.         “MERS Procedures Manual” means the MERS Procedures Manual, as it may be  amended from time to time.         “MERS® System” means the Electronic Agent’s mortgage electronic registry system, as  more particularly described in the MERS Procedures Manual.         “Mortgage” means a mortgage, deed of trust, deed to secure debt, security deed or other  mortgage instrument or similar evidence of lien legally effective in the U.S. jurisdiction where  the relevant real property is located to create and constitute a valid and enforceable first priority  Lien or, in the case of a Second Mortgage Loan, second priority Lien, in each case subject only  to Permitted Encumbrances, on the fee simple estate in improved real property.         “Mortgage Assignment” means an assignment of a Mortgage, in form sufficient under the  Legal Requirements of the U.S. jurisdiction where the real property covered by such Mortgage is  located to give record notice of the assignment of such Mortgage, perfect the assignment and  establish its priority relative to other transactions in respect of the Mortgage assigned (no  Mortgage Assignment is required for any Mortgage that has been originated in the name of  MERS and registered under the MERS® System).         “Mortgage Loan” means any loan evidenced by a Mortgage Note and includes all right,  title and interest of the lender or mortgagee of such loan as a holder of both the beneficial and  legal title to such loan, including (a) all Loan Papers, Loan Records or other loan documents,  files and records of the lender or mortgagee for such loan, (b) the monthly payments, any  prepayments, insurance and other proceeds, (c) all Servicing Rights related to such loan and  (d) all other rights, interests, benefits, security, proceeds, remedies and claims (including,  without limitation, REO) in favor or for the benefit of the lender or mortgagee arising out of or in  connection with such loan.                                           19                                                                     Bodman_16842095_7 

 

         “Mortgage Loan Transmission File” means a file containing all information concerning  each Mortgage Loan required by the “Record Layout,” as defined and provided for in (and  attached as an exhibit to) the Custody Agreement, one of which shall be delivered by the Seller  to the Custodian for each Purchased Loan on its Purchase Date, both by electronic, computer  readable transmission in accordance with such Record Layout and, in the event such electronic  transmission is not possible, by faxing a hard copy thereof to the Custodian.         “Mortgage Note” means a promissory note secured by a Mortgage.         “Mortgaged Premises” means the Property securing a Mortgage Loan.         “Multiemployer Plan” means any “multiemployer plan,” as defined in Section 4001(a)(3)  of ERISA, which is maintained for employees of the Seller or any of the Seller’s Subsidiaries.         “Net Income” means for any period, the net income (or loss) of the Seller and the  Subsidiaries, determined on a Consolidated basis in accordance with GAAP; provided that there  shall be excluded (a) the income (or deficit) of any Person accrued prior to the date it becomes a  Subsidiary or is merged into or consolidated with the Seller or any Subsidiary, (b) the income (or  deficit) of any Person in which any Person (other than the Seller and any Subsidiaries) has a joint  interest, except to the extent that any such income is actually received by the Seller or any  Subsidiary from such Person in the form of dividends or similar distributions and (c) the  undistributed earnings of any Subsidiary to the extent that the declaration or payment of  dividends or similar distributions by such Subsidiary is not at the time permitted by the terms of  any contractual obligation or by law applicable to such Subsidiary.         “Non-excluded Taxes” is defined in Section 7.1.         “Non-Defaulting Buyer” shall mean any Buyer that is not, as of the date of relevance, a  Defaulting Buyer.        “Non-exempt Buyer” is defined in Section 7.5.         “Nonfunding Buyer” is defined in Section 2.1.         “Non-QM Mortgage Loan” means a Mortgage Loan that (a) with respect to which the  original principal amount is not more than One Million Dollars ($1,000,000) unless approved by  Agent, (b) the obligor of such Mortgage Loan has a FICO Score of not less than 680, (c) such  Mortgage Loan is not a Conforming Loan or a Jumbo Loan and (d) is a closed-end consumer  credit transaction secured by a dwelling that is subject to and meets the ability to repay  requirements of 12 CFR 1026.43(c) but is not a qualified mortgage under 12 CFR 1026.43(e).         “Non-QM Mortgage Loan Sublimit” is defined in Section 4.2(c).         “Obligations” means all of the Seller’s present and future obligations, liabilities and  indebtedness under this Agreement or any of the other Repurchase Documents, or in respect of  any Products, or any Hedge Agreement entered into with the Agent or any Buyer, whether for  Repurchase Price, Price Differential, Margin Call, premium, fees, costs, attorneys’ fees or other  obligation or liability, and whether absolute or contingent, and all renewals, extensions,                                         20                                                                    Bodman_16842095_7 

 

     modifications and increases of any of them. Notwithstanding the foregoing, the term   “Obligations” shall not be deemed to include any Excluded Swap Obligation.           “Officer’s Certificate” means a certificate executed on behalf of the Seller or another   relevant Person by a Responsible Officer.          “Open Transaction” means a Transaction in which the Buyers or the Swing Line Buyer   have purchased and paid for the related Purchased Loans but the Seller has not repurchased all of   them, such that the remaining Purchased Loans not repurchased by the Seller of the subject   Transaction would be an Open Transaction.          “Operating Account” means the Seller’s non-interest bearing demand deposit account   maintained with Agent and described on Schedule 1.2, from which the Agent is authorized   pursuant to Section 3.5 to withdraw funds on any day in an amount equal to the aggregate   Repurchase Prices of all Purchased Loans that are Past Due on that day.  The Operating Account   shall be subject to setoff by the Agent for Pro Rata distribution to the Buyers and, upon the   occurrence and during the continuance of an Event of Default, the Agent may also terminate the   Seller’s right to withdraw, or direct the payment of funds in the Operating Account until the   Obligations have been paid in full.           “Organizational Documents” means as to any Person other than a natural Person, its   articles or certificate of incorporation, organization, limited partnership or other document filed   with a Governmental Authority evidencing the organization of such entity and any bylaws,   operating agreement or other governance document governing the rights of the holders of the   ownership interests in such Person.          “Other Taxes” is defined in Section 7.2.          “Parent” means PulteGroup, Inc., a Michigan corporation.          “Parent Repurchase Agreement” means the Master Repurchase Agreement dated as of  September 30, 2009, between the Seller and Parent, as it may be supplemented, amended or  restated from time to time.         “Past Due” means that the Seller has not repurchased the subject Purchased Loan on or  before its Repurchase Date.         “Permitted Encumbrances” means, in respect of the Mortgaged Premises securing a   Purchased Loan, (a) tax Liens for real property taxes and government-improvement assessments   that are not delinquent; (b) easements and restrictions that do not materially and adversely affect   the title to, marketability of or value of such Mortgaged Premises or prohibit or interfere with the   use of such Mortgaged Premises as a one-to-four family residential dwelling; (c) reservations as   to oil, gas or mineral rights, provided such rights do not include the right to remove buildings or   other material improvements on or near the surface of such Mortgaged Premises or to mine or   drill on the surface thereof or otherwise enter the surface for purposes of mining, drilling or   exploring for, or producing, transporting or otherwise handling oil, gas or other minerals of any   kind; (d) agreements for the installation, maintenance or repair of public utilities, provided such   agreements do not create or evidence Liens on such Mortgaged Premises or authorize or permit                                          21                                                                     Bodman_16842095_7 

 

     any Person to file or acquire claims of Liens against such Mortgaged Premises; and (e) such   other exceptions (if any) as are acceptable under relevant Agency guidelines; provided that any   encumbrance that is not permitted pursuant to the standards of any relevant Investor   Commitment by which the subject Purchased Loan is covered shall not be a Permitted   Encumbrance.          “Person” means and includes natural persons, corporations, limited liability companies,   limited partnerships, registered limited liability partnerships, general partnerships, joint stock   companies, joint ventures, associations, companies, trusts, banks, trust companies, land trusts,   business trusts or other organizations, whether or not legal entities, and governments and   agencies and political subdivisions of them.          “Plan” means an employee pension benefit plan of a type described in Section 3(2) of   ERISA and that is subject to Title IV of ERISA in respect of which the Seller is an “employer”   as defined in Section 3(5) of ERISA.          “Plan Party” is defined in Section 32.1.          “Price Differential” means, with respect to any Transaction hereunder for any day, the   aggregate amount obtained by multiplication of the Pricing Rate for each day by the Purchase   Price for such Transaction, based on a three hundred sixty (360) day per year basis for the actual   number of days during the period commencing on (and including) the Purchase Date for such   Transaction and ending on (but excluding) the Determination Date, reduced by any such amount   previously paid by the Seller to the Agent (for Pro Rata distribution to the Buyers) with respect   to such Transaction.          “Pricing Rate” means the Daily Adjusting LIBOR Rate (or, if applicable under Section   6.7, the Prime Referenced Rate), or the Default Pricing Rate, as determined under this   Agreement.          “Prime Rate” means the per annum interest rate established by the Agent as its prime rate  for its borrowers, as such rate may vary from time to time, which rate is not necessarily the  lowest rate on loans made by the Agent at any such time.         “Prime Referenced Rate” shall mean the per annum rate of interest which is equal to the  Applicable Margin plus the greater of (i) the Prime Rate, or (ii) the Federal Funds Effective Rate  plus one percent (1%).          “Principal Balance” means, for any day, the advanced and unpaid principal balance of a   Purchased Loan on that day.            “Privacy Requirements” means (a) Title V of the Gramm-Leach-Bliley Act, 15 U.S.C.  6801 et seq., (b) federal regulations implementing such act codified at 12 CFR Parts 40, 216, 332  and 573, (c) the Interagency Guidelines Establishing Standards For Safeguarding Customer  Information and codified at 12 CFR Parts 30, 208, 211, 225, 263, 308, 364, 568 and 570 and (d)  any other applicable federal, state and local laws, rules, regulations and orders relating to the  privacy and security of Seller’s Customer Information, as such statutes, regulations, guidelines,  laws, rules and orders may be amended from time to time.                                          22                                                                     Bodman_16842095_7 

 

         “Pro Rata” means in accordance with the Buyers’ respective ownership interests in the  Purchased Loans.  On any day, the Buyers will each own an undivided fractional ownership  interest in and to each Purchased Loan:              (a)   if the Commitments of the Buyers are outstanding on that day, (i) whose        numerator is that Buyer’s Committed Sum for that day and (ii) whose denominator is the        Maximum Aggregate Commitment for that day; or               (b)   if the Commitments have expired or have been terminated and have not        been reinstated, (i) whose numerator is the aggregate sum of the portions of the Purchase        Prices paid by that Buyer in all Regular Transactions outstanding on that day plus such        Buyer’s Funding Share of the Purchase Prices paid by the Swing Line Buyer in all Swing        Line Transactions outstanding on that date and (ii) whose denominator is the aggregate        sum of the Purchase Prices paid by all Buyers in all such Transactions (including all        Swing Line Transactions) outstanding on the day;   subject to adjustment pursuant to Section 3.10.         “Products” means any one or more of the following types of services or facilities  extended to the Seller by the Agent or any Buyer or any Affiliate of any Buyer: (i) credit cards,  (ii) credit card processing services, (iii) debit cards, (iv) purchase cards, (v) Automated Clearing  House (ACH) transactions, (vi) cash management, including controlled disbursement services,  and (vii) establishing and maintaining deposit accounts.         “Property” means any interest of a Person in any kind of property, whether real, personal  or mixed, tangible or intangible, including the Mortgage Loans.         “Purchase Date” means, for any Transaction, the date on which the Seller is to convey  the subject Purchased Loans to the Buyers. In the case of any Aged Mortgage Loan, the Purchase  Date shall be the Purchase Date for the underlying Conforming Mortgage Loan or FHA Low  FICO Score Mortgage Loan prior to such Mortgage Loan’s inclusion in the Aged Mortgage Loan  Sublimit.          “Purchase Price” means (a) on the relevant Purchase Date, the price at which the  Purchased Loans in a Transaction are sold by the Seller to the Buyers or to the Swing Line  Buyer, such price being the Purchased Loans’ initial Purchase Value, and (b) thereafter, such  Purchased Loans’ Purchase Value decreased by the amount of any cash transferred in respect of  principal of such Purchased Loans (as determined by the Agent) by the Seller to the Agent  pursuant to Sections 3.3 and 6.1 (absent manifest error, the Agent’s determination of for which  Transaction(s) cash was transferred by the Seller to the Agent shall be conclusive and binding).         “Purchase Price Decrease” means a reduction in the outstanding Purchase Price for  Purchased Loans without a termination of a Transaction or portion thereof as described in  Section 3.3(d).          “Purchase Value” means the lesser of (a) (i) the Buyers’ Margin Percentage for a  Purchased Loan multiplied by (ii) the least of:                                         23                                                                    Bodman_16842095_7 

 

               (A)   the face principal amount of the related Mortgage Note;                (B)   the price to be paid for such Purchased Loan under an Investor        Commitment or the weighted average price under unused Investor Commitments into        which such Purchased Loan is eligible for delivery; and               (C)   the Seller’s origination or acquisition price for such Purchased Loan.   and, (b) at the discretion of the Agent, the Buyer’s Margin Percentage of the Market Value of  such Purchased Loan; provided, that (i) the Purchase Value for Purchased Loans in excess of the  sublimits set forth in Section 4.2 shall be zero and, (ii) except for Discretionary Loans, the  Purchase Value for any Purchased Loan that is not an Eligible Loan shall be zero.         “Purchased Loans” means the Eligible Loans sold by the Seller to the Buyers or the  Swing Line Buyer in Transactions, and any Eligible Loans substituted therefor in accordance  with Section 11.  The term “Purchased Loans” with respect to any Transaction at any time shall  also include Additional Purchased Loans delivered pursuant to Section 3.8 and Section 6.1.         “Purchased Loan Activity Summary Report” is defined in the Custody Agreement.         “Purchased Loans Support” means all property (real or personal) assigned, hypothecated  or securing any Purchased Loans, or otherwise pertaining to any Purchased Loans, including  without limitation:               (1)   all Loan Papers, whether now owned or hereafter acquired, related to, and        all private mortgage insurance on, any Purchased Loans, and all renewals, extensions,        modifications and replacements of any of them;               (2)   all rights, liens, security interests, guarantees, insurance agreements and        assignments accruing or to accrue to the benefit of the Seller in respect of any Purchased        Loan;               (3)   all of the Seller’s rights (including but not limited to rights to payment),        powers, privileges, benefits and remedies under each and every paper now or hereafter        securing, insuring, guaranteeing or otherwise relating to or delivered in connection with        any Purchased Loan, including all Loan Papers and Loan Records;               (4)   all of the Seller’s rights, to the extent assignable, in, to and under all        Investor Commitments and any and all other commitments issued by (i) Ginnie Mae,        Fannie Mae, Freddie Mac, another mortgage company or any other investor or any Buyer        or securities issuer to guarantee, purchase or invest in any of the Purchased Loans or any        MBS based on or backed by any of them or (ii) any broker or investor to purchase any        MBS, whether evidenced by book entry or certificate, representing or secured by any        interest in any of the Purchased Loans, together with the proceeds arising from or        pursuant to any and all such commitments; and all rights to deliver Purchased Loans to        investors or purchasers, and all rights to proceeds resulting from the disposition of such        Purchased Loans;                                         24                                                                    Bodman_16842095_7 

 

               (5)   all rights under every Hazard Insurance Policy relating to real estate        securing a Purchased Loan for the benefit of the creditor of such Purchased Loan, the        proceeds of all errors and omissions insurance policies and all rights under any blanket        hazard insurance policies to the extent they relate to any Purchased Loan or its security        and all hazard insurance or condemnation proceeds paid or payable with respect to any of        the Purchased Loans and/or any of the property securing payment of any of the Purchased        Loans or covered by any related instrument;               (6)   all present and future claims and rights of the Seller to have, demand,        receive, recover, obtain and retain payments from, and all proceeds of any nature paid or        payable by, any governmental, quasi-governmental or private mortgage guarantor or        insurer (including VA, FHA or any other Person) with respect to any of the Purchased        Loans;                (7)   all tax, insurance, maintenance fee and other escrow deposits or payments        made by the Customers under such Purchased Loans (the Buyers’ Agent and the Buyers        acknowledge that the Seller’s rights in such deposits are limited to the rights of an escrow        agent and such other rights, if any, in and to such deposits as are accorded by the        Purchased Loans and related papers); and               (8)   all monies, accounts, deposit accounts, payment intangibles and general        intangibles, however designated or maintained, constituting or representing so-called        “completion escrow” funds or “holdbacks,” and being Purchased Loans’ proceeds        recorded as disbursed but that have not been paid over to the seller of the subject        Mortgaged Premises (the purchase of which is financed by such Purchased Loan), but        that are instead being held by the Seller or by a third party escrow agent pending        completion of specified improvements or landscaping requirements for such Mortgaged        Premises.         “Qualified Subordinated Debt” means unsecured Debt of the Seller to any Person as to  which (a) the papers evidencing, securing, governing or otherwise related to such Debt are  reasonably satisfactory in form and substance to Agent and Required Buyers and (b) that is  subordinated to the Obligations pursuant to a currently effective and irrevocable Subordination  Agreement, including standstill and blockage provisions, reasonably approved by the Agent and  Required Buyers.         “Qualifying Balances” means, with respect to any Buyer, for any day, the lesser of (a) the  amount of such Buyer’s outstanding Purchase Price on Open Transactions on such day, and (b)  the sum of the collected balances in all identified non-interest bearing accounts of the Seller  and/or any of its Affiliates on behalf of the Seller maintained with such Buyer less (i) amounts  necessary to satisfy reserve and deposit requirements and (ii) amounts required to compensate  such Buyer for services rendered in accordance with such Buyer’s system of charges for services  to similar accounts.          “Recourse Servicing” means Servicing Rights under a Servicing Agreement with respect  to which the Servicer is obligated to repurchase or indemnify the holder of the related Mortgage                                          25                                                                    Bodman_16842095_7 

 

     Loans in respect of defaults on such Mortgage Loans at any time during the term of such   Mortgage Loans.          “Register” is defined in Section 22.17(d).          “Regular Transaction” means a Transaction funded by all Buyers, rather than by   Comerica Bank under the Swing Line.          “Regulation T” means Regulation T promulgated by the Board of Governors of the   Federal Reserve System, 12 C.F.R. Part 220, or any other regulation when promulgated to   replace the prior Regulation T and having substantially the same function.          “Regulation U” means Regulation U promulgated by the Board of Governors of the   Federal Reserve System, 12 C.F.R. Part 221, or any other regulation when promulgated to   replace the prior Regulation U and having substantially the same function.          “Regulation X” means Regulation X promulgated by the Board of Governors of the   Federal Reserve System, 12 C.F.R. Part 224, or any other regulation when promulgated to   replace the prior Regulation X and having substantially the same function.          “REO” means real property improved by a one-through four-family residence owned   following judicial or nonjudicial foreclosure (or conveyance by deed in lieu of foreclosure) of a   Mortgage securing a Single-family Loan.          “Repurchase Date” means the date on which the Seller is to repurchase Purchased Loans   from the Buyers, being the earlier of (a) the date when the Approved Investor is to purchase such  Purchased Loans and (b) any date determined by application of the provisions of Section 3.3 or   18.          “Repurchase Documents” means and includes this Agreement, the Custody Agreement,   any Subordination Agreement(s), any financing statements or other papers now or hereafter   authorized, executed or issued pursuant to this Agreement, the MBS Custodial Agreement, and   all other documents, instruments and agreements at any time evidencing, governing, securing or   otherwise relating to any of the Obligations, and any renewal, extension, rearrangement,   increase, supplement, modification or restatement of any of them.          “Repurchase Price” means the price at which Purchased Loans are to be resold by the   Buyers to the Seller upon termination of a Transaction (including Transactions terminable upon   demand), which will be determined in each case as the sum of (a) the Purchase Price and (b) the  Price Differential as of the date of such determination.          “Repurchase Settlement Account” means the Seller’s non-interest bearing demand deposit   account to be maintained with Comerica Bank and described on Schedule 1.2, to be used for (a)   Repurchase Price payments on Purchased Loans as provided in Section 3.4; (b) payments   required to be made by Seller to Agent under Section 3.5 or under Section 4.7(b) of the Custody   Agreement or otherwise required to be paid to the Repurchase Settlement Account under Section   24.4; (c) payments from Approved Investors for Purchased Loans for the Seller’s account as   provided in Section 4.7(a)(i) of the Custody Agreement; (d) payments from the Approved MBS                                          26                                                                     Bodman_16842095_7 

 

     Custodian of MBS Sale Proceeds as provided in the MBS Custodial Agreement and Section   4.7(a)(ii) of the Custody Agreement; (e) payments from the Approved MBS Custodian of   proceeds from sales of MBS and of other funds in the Approved MBS Custodian Account   regardless of their source; and (f) disbursements or other disposition of funds in the Repurchase   Settlement Account as provided in Section 3.7. The Repurchase Settlement Account shall be a   blocked account from which the Seller shall have no right to directly withdraw funds, but instead   such funds may be withdrawn or paid out only against the order of an authorized officer of the   Agent (acting with the requisite consent of the Buyers as provided herein).          “Repurchase Settlement Account Disbursement Request” means a certification and  request of a Responsible Officer of Seller in the form of Exhibit G.          “Request/Confirmation” means letters substantially in the form of Exhibit A, delivered   pursuant to Section 3.1 and their related Mortgage Transmission Files.          “Required Buyers” means, for any day, Buyers (a) whose Commitments comprise at least   sixty-six and two-thirds percent (66-2/3%) of the Maximum Aggregate Commitment under this   Agreement, or (b) who own at least sixty-six and two-thirds percent (66-2/3%) of the Purchased  Loans owned by the Buyers on that day if on or before that day the Commitments have expired  or have been terminated and have not been reinstated; provided however, that so long as there  are fewer than three Buyers, considering any Buyer and its Buyer Affiliates as a single Buyer,  “Required Buyers” means all Buyers.  The Commitments of, and portion of the Obligations  attributable to, any Defaulting Buyer shall be excluded for purposes of making a determination  of “Required Buyers”; provided that the amount of any participation in any Swing Line   Transaction that a Defaulting Buyer has failed to fund that has not been reallocated to and funded   by another Buyer shall be deemed to be held by the Buyer that is the Swing Line Buyer in   making a determination under this definition.          “Responsible Officer” means a duly authorized member, manager or officer of Seller   acceptable to Agent.          “Second Mortgage Loan” shall mean a second Lien Mortgage Loan, including a home   equity line of credit, which meets the following requirements: (a) such second Lien Mortgage is   subject only to a first Lien Mortgage and other Permitted Encumbrances, (b) such second Lien   Mortgage was originated by Seller at the same time as a first Lien Mortgage by Seller on the   same property and with the same obligor, and such first Lien Mortgage is a Purchased Loan, and   (c) such second Lien Mortgage Loan is covered by an Investor Commitment, and such Investor   Commitment covers both such second Lien Mortgage Loan and the first Lien Mortgage Loan by   Seller described in paragraph (b) above.          “Second Mortgage Loan Sublimit” is defined in the table set forth in Section 4.2(c).         “Seller’s Customer” means any natural person who has applied to the Seller for a  financial product or service, has obtained any financial product or service from the Seller or has  a Mortgage Loan that is serviced or subserviced by the Seller.         “Seller’s Customer Information” means any information or records in any form (written,   electronic or otherwise) containing a Seller’s Customer’s personal information or identity,                                          27                                                                     Bodman_16842095_7 

 

   including such Seller’s Customer’s name, address, telephone number, loan number, loan  payment history, delinquency status, insurance carrier or payment information, tax amount or  payment information and the fact that such Seller’s Customer has a relationship with the Seller.         “Serviced Loans” means all Mortgage Loans serviced or required to be serviced by the  Seller under any Servicing Agreement, irrespective of whether the actual servicing is done by  another Person (a subservicer) retained by the Seller for that purpose.         “Servicer” means, initially the Seller, and upon termination of the Seller’s right to service  the Purchased Loans pursuant to the provisions of Section 19.7, the Backup Servicer or such  other Person (including the Agent) as the Agent may appoint as Servicer.         “Servicing Agreement” means, with respect to any Person, the arrangement, whether or  not in writing, pursuant to which that Person acts as servicer of Mortgage Loans, whether owned  by that Person or by others.         “Servicing Functions” means, with respect to the servicing of Mortgage Loans, the  collection of payments for the reduction of principal and application of interest, collection of  amounts held or to be held in escrow for payment of taxes, insurance and other escrow items and  payment of such taxes and insurance from amounts so collected, foreclosure services, and all  other actions required to conform with Accepted Servicing Practices.         “Servicing Records” has the meaning given the term in Section 19.5 hereof.         “Servicing Rights” means the rights and obligations to administer and service a Mortgage  Loan, including, without limitation, the rights and obligations to: ensure the taxes and insurance  are paid, provide foreclosure services, provide full escrow administration and perform any other  obligations required by any owner of a Mortgage Loan, collect the payments for the reduction of  principal and application of interest, and manage and remit collected payments.         “Single-family Loan” means a Mortgage Loan that is secured by a Mortgage covering  real property improved by a one-, two-, three- or four-family residence.        “SIPA” means the Securities Investors Protection Act of 1970, 15 U.S.C. §78a et. seq., as  amended.         “Solvent” means, for any Person, that (a) the fair market value of its assets exceeds its  liabilities, (b) it has sufficient cash flow to enable it to pay its debts as they mature, and (c) it  does not have unreasonably small capital to conduct its business.         “Statement Date” means December 31, 2019.        “Statement Date Financial Statements” is defined in Section 15.2(f).         “Sublimit” means one or more (as the context requires) of the sublimits described in  Section 4.2.                                          28                                                                    Bodman_16842095_7 

 

         “Subordination Agreement” means a written subordination agreement in form and  substance satisfactory to and approved by the Agent that subordinates (a) all present and future  debts and obligations owing by the Seller to the Person signing such subordination agreement to  (b) the Obligations, in both right of payment and lien priority, including standstill and blockage  provisions approved by the Agent and Required Buyers.         “Subservicer” means any entity permitted by the Agent to act as a subservicer of the  Servicer (which permission shall not be unreasonably withheld) who shall perform Servicing  Functions under a Subservicer Instruction Letter.         “Subservicer Instruction Letter” means an instruction letter to a Subservicer in form and  substance reasonably agreed to by the Seller and the Agent.         “Subsidiary” means any corporation, association or other business entity (including a  trust) in which any Person (directly or through one or more other Subsidiaries or other types of  intermediaries), owns or controls:               (a)   more than fifty percent (50%) of the total voting power or shares of stock        entitled to vote in the election of its directors, managers or trustees; or               (b)   more than ninety percent (90%) of the total assets and more than ninety        percent (90%) of the total equity through the ownership of capital stock (which may be        non-voting) or a similar device or indicia of equity ownership.         “Supplemental Papers” means the Loan Papers for a particular Loan other than its Basic  Papers.         “Swing Line” means the short term revolving discretionary Mortgage Loans purchase  facility provided for in Section 2.4 under which Comerica Bank may, in its sole discretion, fund  (as “Swing Line Purchases”) purchases of Eligible Loans to bridge the Seller’s daily  Transactions.         “Swing Line Buyer” means Comerica Bank in its role as Buyer for Swing Line  Transactions.         “Swing Line Limit” means Fifty Million and 00/100 Dollars ($50,000,000).         “Swing Line Refunding Due Date” for each Transaction funded under the Swing Line  means the Business Day on which the Swing Line Buyer shall elect to have such Swing Line  Transaction funded by the Buyers pursuant to Section 2.5, or on the next Business Day thereafter  if the Buyers are notified of such request after 3:30 p.m. (Detroit, Michigan time) on such  Business Day, provided that the Swing Line Refunding Due Date shall occur not less frequently  than once per week.         “Swing Line Transaction” means a Transaction funded by the Swing Line Buyer under  the Swing Line.         “Taxes” is defined in Section 7.1.                                         29                                                                    Bodman_16842095_7 

 

         “Termination Date” means (a) the earlier to occur of July 29, 2021 or (b) the date when  the Buyer’s Commitments are terminated pursuant to this Agreement, by order of any  Governmental Authority or by operation of law.         “Total Liabilities” means all liabilities of the Seller and its Subsidiaries, including  nonrecourse debt and also including all contingent liabilities and obligations (including Recourse  Servicing, recourse sale and other recourse obligations, and guaranty, indemnity and mortgage  loan repurchase obligations), in each case as are reflected on the Seller’s Consolidated balance  sheet as liabilities in accordance with GAAP, but excluding Qualified Subordinated Debt.         “Transaction” is defined in the Recitals.         “UCC” means the Uniform Commercial Code or similar laws of the applicable  jurisdiction, as amended from time to time.         “VA” means the Department of Veterans Affairs and any successor.         “Wet Loan” means a Purchased Loan originated and owned by the Seller immediately  prior to being purchased by the Buyers:               (a)   that has been closed on or prior to the Business Day on which the        Purchase Price is paid therefor, by a title agency or closing attorney, and that would        qualify as an Eligible Loan except that some or all of its Basic Papers are in transit to, but        have not yet been received by, the Custodian so as to satisfy all requirements to permit        the Seller to sell it pursuant to this Agreement without restriction;               (b)   that will fully qualify as an Eligible Loan when the original Basic Papers        have been received by the Custodian;               (c)   as to which such full qualification can and will be achieved on or before        seven (7) Business Days after the relevant Purchase Date; and               (d)   for which the Seller has delivered to the Custodian a Mortgage Loan        Transmission File on or before the Purchase Date, submission of which to the Custodian        shall constitute the Seller’s certification to the Custodian, the Buyers and the Agent that a        complete File as to such Purchased Loan, including the Basic Papers, exists and that such        File is in the possession of either the title agent or closing attorney that closed such        Purchased Loan, the Seller or that such File has been or will be shipped to the Custodian.   Each Wet Loan that satisfies the foregoing requirements shall be an Eligible Loan subject to the  condition subsequent of physical delivery of its Mortgage Note, Mortgage and all other Basic  Papers, to the Custodian on or before seven (7) Business Days after the relevant Purchase Date.   Each Wet Loan sold by the Seller shall be irrevocably deemed purchased by the Buyers and shall  automatically become a Purchased Loan effective on the date of the related Transaction, and the  Seller shall take all steps necessary or appropriate to cause the sale to the Buyers and delivery to  the Custodian of such Wet Loan and its Basic Papers to be completed, perfected and continued in  all respects, including causing the original promissory note evidencing such Purchased Loan to  be physically delivered to the Custodian within seven (7) Business Days after the relevant                                         30                                                                    Bodman_16842095_7 

 

   Purchase Date, and, if requested by the Agent, to give written notice to any title agent, closing  attorney or other Person in possession of the Basic Papers for such Purchased Loan of the  Buyers’ purchase of such Purchased Loan.  Upon the Custodian’s receipt and review of the Basic  Papers relative to a Wet Loan such Purchased Loan shall no longer be considered a Wet Loan.         “Wet Loans Sublimit” is defined in Section 4.2(b).         “Whole Loan” means a Mortgage Loan sold in the form of a whole loan, as opposed to a  Mortgage Loan that has been pooled for the purpose of comprising an MBS or other type of  security.        “Whole Loan Sale Proceeds” shall mean proceeds from the sale of a Purchased Loan sold  as a Whole Loan.         Other Definitional Provisions. Accounting terms not otherwise defined shall have the  meanings given them under GAAP.               (a)   Defined terms may be used in the singular or the plural, as the context        requires.               (b)   Except where otherwise specified, all times of day used in the Repurchase        Documents are local (U.S. Eastern Time Zone) times in Detroit, Michigan.               (c)   Unless the context plainly otherwise requires (e.g., if preceded by the        word “not”), wherever the word “including” or a similar word is used in the Repurchase        Documents, it shall be read as if it were written, “including by way of example but        without in any way limiting the generality of the foregoing concept or description”.               (d)   Unless the context plainly otherwise requires, wherever the term “Agent”        is used in this Agreement (excluding Section 22), it shall be read as if it were written “the        Agent (as agent and representative of the Buyers).”   Section 2.  The Buyers’ Commitments.           2.1.  The Buyers’ Commitments to Purchase.  Subject to the terms and conditions of  this Agreement (including without limitation the terms and conditions set forth in Section 4 and  Section 14) and provided no Default or Event of Default has occurred and is continuing that has  not been waived by the Buyers or the Required Buyers, as applicable (or, if one has occurred and  not been so cured or declared waived, if all of the Buyers, in their sole discretion and with or  without waiving such Default or Event of Default, have elected in writing that Transactions  under this Agreement shall continue nonetheless), the Buyers agree to make revolving purchases  of Eligible Loans on a servicing released basis through but not including the Termination Date,  so long as the Aggregate Outstanding Purchase Price does not exceed the Maximum Aggregate  Commitment and so long as each Buyer’s Committed Sum is not exceeded.  The Buyers’  respective Committed Sums and the Maximum Aggregate Commitment are set forth on  Schedule BC in effect at the relevant time, as it may have been amended or restated pursuant to  this Agreement.  Upon the joinder of additional Buyer(s), if any, the parties agree to approve in  writing revised and updated versions of Schedule BC.  The fractions to be applied to determine                                         31                                                                    Bodman_16842095_7 

 

   the respective Funding Shares of the Buyers for any day are their respective Committed Sums  divided by the Maximum Aggregate Commitment for that day.  Each Buyer shall be obligated to  fund only that Buyer’s own Funding Share of any Transaction requested, and no Buyer shall be  obligated to the Seller or any other Buyer to fund a greater share of any Transaction.  No Buyer  shall be excused from funding its applicable Funding Share of any Transaction merely because  any other Buyer has failed or refused to fund its relevant Funding Share of that or any other  Transaction.  If any Buyer fails to fund its Funding Share of any Transaction (a “Nonfunding  Buyer”), the Agent (in its sole and absolute discretion) may choose to fund the amount that such  Nonfunding Buyer failed or refused to fund, or the Agent as a Buyer and the other Buyers who  are willing to do so may (in each of their sole and absolute discretion) do so in the proportion  that the Committed Sum of each bears to the total Committed Sums of all Buyers that have  funded (or are funding) their own Funding Shares of that Transaction and that are willing to fund  part of the Funding Share of such Nonfunding Buyer.  Should the Agent and/or any other  Buyer(s) fund any or all of the Nonfunding Buyer’s Funding Share of any Transaction, then the  Nonfunding Buyer shall have the obligation to deliver such amount to the Agent (for its own  account and/or for distribution to the Buyer(s) who funded it, as the case may be) in immediately  available funds on the next Business Day.  Regardless of whether the other Buyers fund the  Funding Share of the Nonfunding Buyer, the respective ownership interests of the Buyers in the  Transaction shall be adjusted as provided in Section 3.10.  The obligations of the Buyers  hereunder are several and not joint.           2.2.  Expiration or Termination of the Commitments.  Unless extended in writing or  terminated earlier in accordance with this Agreement, the Buyers’ Commitments (including  Comerica Bank’s Swing Line Commitment) shall automatically expire at the close of business  on the Termination Date, without any requirement for notice or any other action by the Agent,  any of the Buyers or any other Person.           2.3.  Disbursement of Purchase Prices  Subject to the terms and conditions of this  Agreement, Agent shall deposit the Purchase Prices for the Purchased Loans funded with a  Transaction under this Agreement into the Funding Account. Seller is authorized to disburse  funds from the Funding Account to fund Transactions and for Seller’s general working capital  purposes so long as, in either case, no Event of Default exists or will result from such  disbursement. After the occurrence and during the continuance of an Event of Default, Seller  shall have no further access to the Funding Account, and the Funding Account shall be subject to  setoff by the Agent for Pro Rata distribution to the Buyers.           2.4.  Swing Line Facility.  In addition to its Commitment under Section 2.1, the  Swing Line Buyer may, in its discretion, fund revolving Swing Line Transactions for aggregate  Purchase Prices which do not on any day exceed the Swing Line Limit for the purpose of  initially funding requested Transactions.                                          32                                                                    Bodman_16842095_7 

 

                  2.5.  Swing Line Transactions.         (a)   The Seller shall have the right to request a Swing Line Transaction and  Swing Line Buyer may, in its discretion, agree to fund such Swing Line Transaction:               (i)   only if such Swing Line Transaction fully qualifies in all respects        for funding as Regular Transaction under this Agreement;               (ii)  provided that no Default has occurred that has not been cured        before it has become an Event of Default, and no Event of Default has occurred        and is continuing that has not been waived by the Buyers or the Required Buyers,        as applicable and all conditions precedent in Section 14.1 (with respect to the        initial purchase hereunder) and Section 14.2 have been satisfied;               (iii) so long as (A) the Swing Line Limit is not exceeded and (B) such        Swing Line Transaction will not cause the sum of Comerica Bank’s Funding        Share of the Swing Line Transactions plus Comerica Bank’s Funding Share of all        Open Transactions to exceed Comerica Bank’s Commitment;               (iv)  so long as, after giving effect to the proposed Swing Line        Transaction, the Aggregate Outstanding Purchase Price would not exceed the        Maximum Aggregate Commitment;               (v)   provided that a Request/Confirmation has been received by the        Agent and the Swing Line Buyer by no later than 3:30 p.m. (Detroit, Michigan        time) on the Business Day such Transaction is to be funded;                (vi)  provided that the Agent has received a satisfactory Purchased Loan        Activity Summary Report and, if requested by Agent, Eligible Loans Report, from        the Custodian on such date; and               (vii) provided that the Seller is not aware of any reason why the        requested Transaction cannot or will not be fully funded by the Buyers on the first        Swing Line Refunding Due Date following the Business Day on which the Swing        Line Transaction is to be funded.         (b)   All Swing Line Transactions shall have a Price Differential from the date  funded until the date repaid and the Repurchase Price therefor shall be due and payable to  Comerica Bank at the same rate(s) as would be applicable if such Swing Line  Transactions had been funded as Regular Transactions by all Buyers, instead of having  been funded by the Swing Line Buyer alone as Swing Line Transactions.         (c)   On each Swing Line Refunding Due Date, each Swing Line Transaction  shall terminate and the Seller shall repurchase all Purchased Loans subject to such Swing  Line Transaction to the extent such Transaction is not converted to a Regular Transaction  pursuant to this Section 2.5.                                     33                                                              Bodman_16842095_7 

 

                       (d)   The Swing Line Buyer may at any time in its sole discretion with respect   to any outstanding Swing Line Transaction, require each Buyer (including the Swing   Line Buyer) to fund such Swing Line Transaction, by delivering notice to each Buyer.    Unless an Event of Default under Section 18.1(b) shall have occurred and be continuing   on such Swing Line Refunding Due Date (in which event the procedures under clause (e)   shall apply), no later than 4:00 p.m. (Detroit, Michigan time) on such Swing Line   Refunding Due Date, each Buyer shall transfer its Funding Share in immediately   available funds to Agent, at the office of Agent located at 411 W. Lafayette Blvd.   Detroit, MI  48226, which shall be paid by Agent to the Swing Line Buyer for application   against the Swing Line Transaction, whereupon the Swing Line Transaction shall be   deemed a Regular Transaction.          (e)   If, on any Swing Line Refunding Due Date, an Event of Default under   Section 18.1(b) shall have occurred and be continuing, each Buyer shall, no later than   4:00 p.m. (Detroit, Michigan time) on such Swing Line Refunding Due Date, purchase a   participation in the Swing Line Transaction by immediately transferring to the Agent, for   the benefit of the Swing Line Buyer, in immediately available funds, an amount equal to   its Funding Share of the Purchase Price of such Swing Line Transaction, and upon its   receipt thereof, the Agent shall deliver to such Buyer a certificate evidencing such   participation.          (f)   Unless a Buyer shall have notified the Swing Line Buyer, prior to any   Swing Line Transaction, that any applicable condition precedent set forth in Sections   14.1 or 14.2 had not then been satisfied, such Buyer’s obligation to convert the Swing   Line Transaction to a Regular Transaction pursuant to clause (d) of this Section 2.5 or to   purchase a participation in respect of such Swing Line Transaction pursuant to clause (e)   of this Section 2.5 shall be unconditional, continuing, irrevocable and absolute and shall   not be affected by any circumstances, including, without limitation, (i) any set-off,  counterclaim, recoupment, defense or other right which such Buyer may have against the  Agent, the Swing Line Buyer or any other Person, (ii) the occurrence or continuance of a  Default or Event of Default, (iii) any adverse change in the condition (financial or  otherwise) of the Seller, (iv) the expiration, cancellation or termination, with or without  cause of some or all of such Buyers’ Commitments or if such Commitment has been  waived, released or excused for any reason whatsoever or (v) any other circumstances,  happening or event whatsoever.  In the event that any Buyer fails to make payment to the  Agent of any amount due under this Section 2.5, the Agent shall be entitled to receive,   retain and apply against such obligation the Repurchase Prices (including Price   Differential) otherwise payable to such Buyer hereunder until the Agent receives such   payment from such Buyer or such obligation is otherwise fully satisfied.  In addition to   the foregoing, if for any reason any Buyer fails to make payment to the Agent of any   amount due under this Section 2.5, such Buyer shall be deemed, at the option of the   Agent, to have unconditionally and irrevocably purchased from the Swing Line Buyer,   without recourse or warranty, an undivided interest and participation in the applicable   Swing Line Transaction in the amount of such Buyer’s Funding Share of that   Transaction, and such interest and participation may be recovered from such Buyer   together with interest thereon at the Federal Funds Rate for each day during the period   commencing on the date of demand and ending on the date such amount is received.  On                                    34                                                               Bodman_16842095_7 

 

                the Termination Date, the Seller shall repurchase all Purchased Loans then subject to a  Swing Line Transaction.         (g)   The Agent shall disburse to the Swing Line Buyer an amount equal to the  sum of the Funding Shares funded by all of the other Buyers in respect of the refunding  of any Swing Line Transaction; provided that if a Buyer other than the Swing Line Buyer  advises the Agent by telephone and confirms the advice by fax that such Buyer has  placed all of its Funding Share on the federal funds wire to the Agent, the Agent shall  continue to keep the Swing Line Transaction outstanding to the extent of that Buyer’s  Funding Share so wired until such Buyer’s Funding Share is received by Agent, and the  Agent shall then repay the Swing Line Buyer that still-outstanding portion of the Swing  Line Transaction from such funds wired to and received by the Agent, and the Price  Differential accrued at the Pricing Rate(s) applicable to the Transaction on that Funding  Share for the period from (and including) the relevant Swing Line Refunding Due Date to  (but excluding) the date such Buyer’s Funding Share is received by the Agent shall  belong to the Swing Line Buyer.  If any Buyer fails to  fund its Funding Share to fund a  Swing Line Transaction in accordance with clause (d) of this Section 2.5, or fails to fund  its Funding Share to purchase a participation in a Swing Line Transaction in accordance  with clause (e) of this Section 2.5, then that Buyer shall also be obligated to pay to the  Swing Line Buyer interest on the Funding Share so due from such Buyer to the Swing  Line Buyer at the Federal Funds Rate from (and including) such Swing Line Refunding  Due Date to (but excluding) the date of payment of such required amount.         (h)   All accrued Price Differential on Swing Line Transactions shall be due  and payable by the Seller to the Agent (for distribution to the Swing Line Buyer) on the  Price Differential payment due date (determined under Section 5) next following the date  of the Swing Line Transaction.  All Price Differential accrued on Swing Line  Transactions through the applicable Swing Line Refunding Due Date shall be due and  payable by the Seller to the Agent (for distribution to the Swing Line Buyer) no later than  two (2) Business Days after the applicable Swing Line Refunding Due Date, but in no  than event later the Termination Date.     2.6.  Optional Termination, Reduction and Increase of Buyers’ Commitments.         (a)   The Seller may, at any time, without premium or penalty, upon not less  than five (5) Business Days prior written notice to the Agent, terminate the Maximum  Aggregate Commitment.  Upon termination in full of the Buyers’ Commitments pursuant  to this Section 2.6, the Seller shall pay to the Agent for the ratable benefit of the Buyers  the full amount of all outstanding Obligations under the Repurchase Documents.         (b)   If the Seller shall request in writing to the Agent a temporary increase in  the Maximum Aggregate Commitment, the Agent, at its discretion, shall endeavor to  obtain increased Committed Sums from existing Buyers, new Commitments from  prospective new Buyers or such combination thereof as the Agent shall elect, to achieve  such requested increase; provided that (i) after giving effect to such increases, the  Maximum Aggregate Commitment shall not exceed $480,000,000, (ii) no Buyer shall  have an obligation to increase its Committed Sum, (iii) such written request by the Seller                                   35                                                              Bodman_16842095_7 

 

           is delivered to the Agent at least thirty (30) days (or such shorter period of time as agreed         to by Agent) before the requested effective date of the increase, (iv) no Default and no         Event of Default has occurred and is continuing and (v) such increase shall only be in         effect from the date of such increase until the first date thereafter that the Maximum         Aggregate Commitment  increases or decreases in accordance with Schedule BC (each, a         “Temporary Increase Period”).  Neither the Agent nor any Buyer shall be liable to the         Seller or to any other Person in the event that the Agent determines not to endeavor to         obtain, or endeavors to obtain but fails to obtain, increased Committed Sums from         existing Buyers, new Commitments from prospective new Buyers, or any combination         thereof. In connection with any increase in the Maximum Aggregate Commitment under         this paragraph, Agent may require that this Agreement be amended to effectuate such         increase.                (c)   If an increase in the Maximum Aggregate Commitment is achieved         pursuant to clause (b) above, then (i) the Pro Rata ownership interest in the Purchased         Loans of each Buyer shall, following funding by the new or increasing Buyers and for the         duration of the applicable Temporary Increase Period, be appropriately adjusted         following the funding of new and increasing Buyers and application of such amounts         received to the other Buyers who did not increase their Committed Sums, (ii) each new         Buyer shall execute and deliver to the Agent a joinder to this Agreement in a form         acceptable to the Agent, and if requested by the Agent, an administrative questionnaire in         a form acceptable to the Agent, (iii) Schedule BC shall be updated and the updates        executed and delivered by the Agent to the Seller and each of the Buyers and, effective as        of the date specified on such updates, shall each automatically supersede and replace the         then-existing corresponding schedule for all purposes and (iv) such amendments,        acknowledgments, consents, instruments and other documents shall have been executed        and delivered and/or obtained by Seller and/or the Buyers providing the applicable        increase as required by the Agent, in its discretion.   Section 3.  Initiation; Termination.            3.1.  Seller Request; Agent Confirmation.                (a)   Subject to the terms and conditions of this Agreement (including, without         limitation, the terms and conditions set forth in Section 2.1 and Section 14), the Seller         may request a Regular Transaction and the Buyers shall fund such Regular Transaction,         subject to the following:                       (i)   Agent and Custodian shall have received a Request/Confirmation               in accordance with Section 3.2 hereof by no later than 1:00 p.m. on the proposed               Purchase Date; and                      (ii)  Agent shall have received a satisfactory Purchased Loan Activity               Summary Report and, if requested by Agent, an Eligible Loans Report, from the               Custodian on the proposed Purchase Date;                                           36                                                                     Bodman_16842095_7 

 

               Provided that if such items are received by the applicable parties on any Business        Day, but are not received by the times specified above, the Transaction may be funded on        the same day, at the Swing Line Buyer’s option, as a Swing Line Transaction (subject to        the conditions set forth in Section 2.5 above), or on the next Business Day as a Regular        Transaction, subject in each case to the other terms and conditions of this Agreement.               (b)   Upon receiving any Request/Confirmation for any Regular Transaction        under Section 3.1 hereof, Agent shall promptly notify each Buyer by wire, telex or        telephone (confirmed by wire, telecopy or telex). Unless such Buyer’s commitment to        make purchases hereunder shall have been suspended or terminated in accordance with        this Agreement, each such Buyer shall make available the amount of its respective       Funding Share of each requested Transaction in immediately available funds to the       Agent, at the office of the Agent specified in Section 2.5(d), no later than 4:00 p.m. on        the date of such Transaction. Any Buyer that fails to fund its Funding Share of any        Transaction shall be deemed to be a Nonfunding Buyer and a Defaulting Buyer under the        terms of this Agreement.           3.2.  Request/Confirmation.  Each Request/Confirmation shall identify the Agent  and the Seller and set forth:                 (a)   the Purchase Date applicable to the relevant Transaction;               (b)   for each of the Eligible Loans to be sold, the Purchase Price; and               (c)   such other information set forth on the form Request/Confirmation        attached as Exhibit A hereto.     Each Request/Confirmation shall be binding on the parties, unless written notice of objection is  received by the Agent prior to the funding of any related Transaction by any Buyer.  In the event  of any conflict between the terms of a Request/Confirmation and this Agreement, this Agreement  shall prevail.           3.3.  Transaction Termination; Purchase Price Decrease.               (a)   Automatic Termination.  Each Transaction, or applicable portion thereof,        will automatically terminate on the earlier of (i) the date or dates when the subject        Purchased Loans are purchased by Approved Investor(s) and (ii) the Termination Date.         Upon any such automatic termination, the Seller shall repurchase all applicable        Purchased Loans in accordance with Section 3.3(c).               (b)   Termination Upon Occurrence of Disqualifier.  If any Disqualifier occurs        in respect of a Purchased Loan, (i) the Buyers shall reconvey to the Seller or its designee        the applicable Purchased Loan, servicing released, and (ii) if and only to the extent of any        Margin Deficit that exists as determined in accordance with Section 6.1, the Seller shall        immediately pay the Repurchase Price with respect to the applicable Purchased Loan (but        only to the extent of the Margin Deficit) in immediately available funds to the account        referred to in Section 3.4.                                         37                                                                    Bodman_16842095_7 

 

               (c)   How Terminations will be Effected.  Termination of a Transaction (or the       applicable portion thereof) will be effected by (i) the Buyers’ reconveyance to the Seller       or its designee of applicable Purchased Loans, servicing released, and payment of any       Income in respect thereof received by the Agent and not previously either paid to the       Seller or applied as a credit to the Seller’s Obligations, and (ii) payment of the       Repurchase Price with respect to the applicable Purchased Loans in immediately       available funds to the account referred to in Section 3.4 on the Repurchase Date, so that        the Agent receives the Repurchase Price (for Pro Rata distribution to the Buyers) in        immediately available funds on that same Business Day; provided that the portion of the        Repurchase Price attributable to accrued and unpaid Price Differential for the        Repurchased Loan shall be due on the next Price Differential payment date in accordance        with Section 5.3; provided further that all accrued and unpaid Price Differential shall be        due and payable on the Termination Date.               (d)   Purchase Price Decrease.  The Seller may effectuate a Purchase Price        Decrease on any Business Day by delivery to the Agent in immediately available funds of        an amount specified by the Seller as a Purchase Price Decrease on that Business Day.  No        Purchased Loans shall be, or be deemed to be, repurchased in connection with a Purchase        Price Decrease.           3.4.  Place for Payments of Repurchase Prices.  All Repurchase Price payments  shall be paid to the Repurchase Settlement Account.           3.5.  Withdrawals from and Credits to Operating Account.  If the Seller fails for any  reason to repurchase any one or more Purchased Loans on the relevant Repurchase Date, to pay  any Price Differential or fees when due or to satisfy any Margin Call in the manner and by the  time specified in Sections 3.3 and 3.4, the Agent is hereby specifically and irrevocably  authorized to withdraw funds from the Operating Account or any other account of the Seller in  an amount equal to the sum of the Repurchase Prices of all Purchased Loans that are Past Due,  plus accrued, unpaid Price Differential or fees, plus Margin Deficit (if applicable), on that day  and cause application of such funds withdrawn to the payment of the Repurchase Prices of such  Purchased Loans, Price Differential or fees, and Margin Deficit (if applicable) in such order and  manner as the Agent may elect and, if funds in the Operating Account or any other account of  the Seller are insufficient to pay the such amounts, the Seller shall pay the amount due hereunder  on demand by wire to the Repurchase Settlement Account.           3.6.  [Reserved].           3.7.  Disbursements from Repurchase Settlement Account. Seller shall furnish to  Agent by 3:00 p.m. Eastern time on each Business Day, a Repurchase Settlement Account  Disbursement Request which details the amounts and sources of all funds in the Repurchase  Settlement Account, and requests disbursement of such funds. With respect to any Repurchase  Settlement Account Disbursement Request furnished by Seller to Agent, if, and only if, (i) no  Default has occurred unless it has been either cured by the Seller or waived in writing by the  Agent (acting with the requisite consent of the Buyers as provided in this Agreement), (ii) no  Event of Default has occurred unless it has been either cured by the Seller or waived in writing  by the Agent (acting with the requisite consent of the Buyers as provided in this Agreement), (iii)                                         38                                                                    Bodman_16842095_7 

 

   no Margin Deficit exists that would not be eliminated by disbursements in accordance with such  Repurchase Settlement Account Disbursement Request, and (iv) no Default or Event of Default  or Margin Deficit will result from the making of the disbursements requested in such Repurchase  Settlement Account Disbursement Request, then Agent shall disburse the funds in the  Repurchase Settlement Account in accordance with the Repurchase Settlement Account  Disbursement Request. After the occurrence and during the continuance of an Event of Default,  Seller shall have no further right to request disbursements of funds in the Repurchase Settlement  Account, and Agent may at any time and from time to time apply funds in the Repurchase  Settlement Account to pay Seller’s Obligations whether or not then due.            3.8.  Delivery of Additional Mortgage Loans.  The Seller may from time to time  deliver to the Custodian for and on behalf of Agent Mortgage Loans that are also Eligible Loans  without entering into a new Transaction by providing to the Custodian the documents required  under Section 3.1(a) with respect to such Mortgage Loans.  The Seller and the Buyers agree that  such Mortgage Loans delivered pursuant to this Section 3.8 shall be treated as Purchased Loans  subject to the existing Transactions hereunder from the date of such delivery.           3.9.  Application of Purchase Price Decreases .  Upon receipt by the Agent of  amounts paid or prepaid as Purchase Price Decreases (except upon the exercise of remedies  provided in Section 18) the Agent shall apply amounts so received to outstanding Purchase Price.           3.10. Defaulting Buyers.                 (a)   Notwithstanding any provision of this Agreement to the contrary, if any        Buyer becomes a Defaulting Buyer, then the following provisions shall apply for so long        as such Buyer is a Defaulting Buyer:                     (i)   The applicable fees shall cease to accrue on the unfunded portion              of the Commitment of such Defaulting Buyer pursuant to Section 9.1;                     (ii)  The Commitment of and the outstanding Purchase Prices paid by              such Defaulting Buyer shall not be included in determining whether all Buyers or              the Required Buyers have taken or may take any action hereunder (including any              consent to any amendment or waiver pursuant to Section 22), provided that (a) the              Committed Sum of any Defaulting Buyer may not be increased or extended              without the consent of such Buyer, and (b) any amendment, waiver, consent or              other action or inaction requiring the consent of all Buyers or each affected Buyer              that by its terms affects any Defaulting Buyer more adversely than the other              affected Buyers shall require the consent of such Defaulting Buyer;                     (iii) If any Swing Line Transactions shall exist at the time a Buyer              becomes a Defaulting Buyer, then the Seller shall within one Business Day              following notice by the Agent repurchase the Purchased Loans subject to such              Swing Line Transaction.               (b)   Notwithstanding any provision of this Agreement to the contrary, if the        Defaulting Buyer is a Nonfunding Buyer, and the Agent or the other Buyer(s) (electively,        in accordance with Section 2.1) fund or pay any other amounts required to be paid by it                                         39                                                                    Bodman_16842095_7 

 

                hereunder which the Nonfunding Buyer failed to fund or pay (the “Unfunded Amount”),  then                (i)   the respective ownership interests of both (A) the Nonfunding        Buyer and (B) Agent or the Buyer (or Buyers) that funded or paid the Unfunded        Amount, shall be proportionately decreased and increased, respectively, to the        same extent as if their respective Committed Sums were changed in direct        proportion to the unreimbursed balance outstanding from time to time thereafter        of the amount so funded or paid;               (ii)  the Nonfunding Buyer’s share of all subsequent distributions of        Repurchase Prices and other realizations on the Purchased Loans received shall be        paid to the Agent and/or other Buyer(s) that so funded the Unfunded Amount        until the Agent and/or such other Buyer(s) have been fully repaid the amount so        funded or paid; and                (iii) such adjustment shall remain in effect until such time as the Agent        and/or other Buyer(s) that funded or paid the Unfunded Amount have been so        fully repaid.         (c)   If no other Buyer funds or pays any of the Unfunded Amount, then the Pro  Rata ownership interests of the Buyers in the Purchased Loans shall be changed, so that  each Buyer’s Pro Rata ownership interest in the Purchased Loans is equal to the ratio of  (i) the sum of the portions of the Purchase Prices paid by that Buyer in all Open  Transactions on that day, together with all other unreimbursed amounts paid by that  Buyer under this Agreement or the other Repurchase Documents (including, without  limitation, in respect of Swing Line Transactions and under Sections 22.10(d) hereof) as  of such day to (ii) the total of the Purchase Prices paid by all Buyers in all Open  Transactions on that day, together with all other unreimbursed amounts paid by all  Buyers under this Agreement or the other Repurchase Documents (including, without  limitation, in respect of Swing Line Transactions and under Section 22.10(d) hereof) as  of such day.  The Nonfunding Buyer’s share of all subsequent distributions of any  Repurchase Price, Margin Deficit payments and other realizations on the Purchased  Loans received shall be paid to the other Buyers, pro rata among them in the ratio that the  Pro Rata ownership interest in the Purchased Loans owned by each bears to the aggregate  Pro Rata ownership interests in the Purchased Loans of all such other Buyers, and the  Buyers’ respective Pro Rata ownership interests in the Purchased Loans shall be  readjusted after each such payment, until their Pro Rata ownership interests are restored  to what they were before any Nonfunding Buyer failed to fund or pay the Unfunded  Amount.  Notwithstanding any such changes in the Buyers’ Pro Rata ownership interests  in any Purchased Loan due to Nonfunding Buyer’s failure to fund or pay an Unfunded  Amount, such failure to fund shall not diminish any Buyer’s Funding Share(s) for  subsequent Transactions.         (d)   Without limiting the foregoing, in the event that a Buyer becomes a  Nonfunding Buyer, such Nonfunding Buyer shall have no right to receive any amounts  owing to such Nonfunding Buyer under this Agreement or the other Repurchase                                   40                                                              Bodman_16842095_7 

 

                Documents until such Buyer ceases to be a Nonfunding Buyer, which shall occur: (i) in  the event that the Agent or any other Buyer(s) fund or pay the Unfunded Amount (as  described in Section 3.10(c)), at the time the Agent and/or such other Buyer(s) have been  fully repaid the amount so funded or paid; and (ii) in the event that neither the Agent nor  any other Buyer funds or pays any of the Unfunded Amount (as described in Section  3.10(c), at the time the Buyers’ Pro Rata ownership interests are restored to what they  were before such Nonfunding Buyer failed to fund or pay the Unfunded Amount.         (e)   For so long as such Buyer is a Nonfunding Buyer, all of the following  shall apply:               (i)   The amounts owing by such Nonfunding Buyer under this        Agreement and the other Repurchase Documents shall be deducted from and set        off against the amounts otherwise owing to such Nonfunding Buyer under this        Agreement and the other Repurchase Documents.               (ii)  Such Nonfunding Buyer shall immediately pay to the Agent all        sums of any kind paid to or received by such Nonfunding Buyer from the Seller        or otherwise with respect to the Facility, whether pursuant to the terms of this        Agreement or the other Repurchase Documents or in connection with the        realization of the security therefor.  Notwithstanding the fact that such        Nonfunding Buyer may temporarily hold such sums, such Nonfunding Buyer        shall be deemed to hold the same as a trustee and for the benefit of the Agent, it        being the express intention of the Buyers that the Agent shall distribute such sums        in accordance with the terms of this Agreement.         (f)   Notwithstanding anything contained herein to the contrary, if a Buyer  becomes a Defaulting Buyer hereunder, then until such Buyer ceases to be a Defaulting  Buyer, the Agent shall have the right, in its sole and absolute discretion and at such time  or times that the Agent shall determine, to apply amounts which otherwise would be  owing to such Defaulting Buyer under this Agreement and the other Repurchase  Documents to a deposit account, to be held in such account and released as appropriate to  satisfy such Defaulting Buyer’s potential future funding obligations with respect to  Transactions (including Swing Line Transactions) under this Agreement.            (g)   If any Buyer becomes a Defaulting Buyer hereunder, then the Seller may,  at its sole expense and effort, upon notice to such Buyer and the Agent, require such  Buyer to assign and delegate, without recourse (in accordance with and subject to the  restrictions set forth in Section 22.17) all its interests, rights and obligations under this  Agreement to an assignee (which assignee may be another Buyer) that shall assume such  obligations, all in accordance with the procedures and conditions set forth in Section 26.4  hereof.         (h)   In the event that the Agent, the Seller and the Swing Line Buyer each  agrees that a Defaulting Buyer has adequately remedied all matters that caused such  Buyer to be a Defaulting Buyer (“Redeemed Buyer”), then the Swing Line Exposure of  the other Buyers shall be readjusted to reflect the inclusion of such Redeemed Buyer’s                                   41                                                              Bodman_16842095_7 

 

         Commitment and on such date such Redeemed Buyer shall purchase from the other        Buyers at par a portion of the Open Transactions and take such other actions as the Agent       shall determine may be necessary in order for such Redeemed Buyer to participate in       such Open Transactions in accordance with its Pro Rata share, at which point the       Redeemed Buyer shall cease to be a Defaulting Buyer.  For purposes of this Section 3.10,        “Swing Line Exposure” means, with respect to any Buyer at any time, such Buyer’s Pro        Rata share of the aggregate Purchase Prices of all Swing Line Transactions outstanding at        such time.               (i)   Nothing contained in the foregoing shall be deemed to constitute a waiver       by the Seller of any of its rights or remedies (whether in equity or law) against any Buyer       which fails to fund any Transaction hereunder at the time or in the amount required to be       funded under the terms of this Agreement.   Section 4.  Transaction Limits and Sublimits.           4.1.  Transaction Limits.  Each Transaction shall be subject to the limitation that no  purchase will be made if at the time of or after such purchase, the Aggregate Outstanding  Purchase Price exceeds or would exceed the lesser of:               (a)   the Maximum Aggregate Commitment; or               (b)   the sum of the following, without duplication:                     (i) For Purchased Loans which are Conforming Mortgage Loans (other        than Aged Mortgage Loans), the lesser of (A) the Purchase Value all such Conforming        Mortgage Loans, or (B) the Conforming Loan Sublimit, plus                     (ii)  For Purchased Loans which are Jumbo Mortgage Loans, the lesser        of (A) the Purchase Value of all such Jumbo Mortgage Loans, or (B) the Jumbo Loan        Sublimit, plus                     (iii) For Purchased Loans which are Aged Mortgage Loans, the lesser        of (A) the Purchase Value of all such Aged Mortgage Loans, or (B) the Aged Mortgage        Loan Sublimit, plus                      (iv)  For Purchased Loans which are Second Mortgage Loans, the lesser        of (A) the Purchase Value of all such Second Mortgage Loans, or (B) the Second        Mortgage Loan Sublimit, plus                     (v)   For Purchased Loans which are FHA Low FICO Score Mortgage        Loans (other than Aged Mortgage Loans), the lesser of (A) the Purchase Value of all such        FHA Low FICO Score Mortgage Loans, or (B) the FHA Low FICO Score Loan Sublimit,        plus                     (vi)  For Purchased Loans which are Discretionary Loans, the lesser of        (A) the Purchase Value of all such Discretionary Loans, or (B) the Discretionary Loan        Sublimit, plus                                         42                                                                    Bodman_16842095_7 

 

                     (vii) For Purchased Loans which are Non-QM Mortgage Loans, the lesser        of (A) the Purchase Value of all such Non-QM Mortgage Loans, or (B) the Non-QM       Mortgage Loan Sublimit.           4.2.  Transaction Sublimits.  The following sublimits shall be applicable to the  Transactions hereunder such that after giving effect to any proposed Transaction and after giving  effect to any repurchase, addition or substitution of any Mortgage Loan hereunder, the following  shall be true:               (a)   The Aggregate Outstanding Purchase Price of Conforming Mortgage        Loans (other than Aged Mortgage Loans) may be as much as one hundred percent        (100%) of the Maximum Aggregate Commitment (the “Conforming Loan Sublimit”).              (b)   The Aggregate Outstanding Purchase Price of all Purchased Loans that are       Wet Loans shall not exceed (x) fifty percent (50%) of the Maximum Aggregate       Commitment on any of the first five (5) and last five (5) Business Days of any month or       (y) thirty-five percent (35%) of the Maximum Aggregate Commitment on any other day       (the “Wet Loans Sublimit”).               (c)   The Aggregate Outstanding Purchase Price of all Purchased Loans that are       of the type listed in the first column of the following table shall not exceed the percentage       of the Maximum Aggregate Commitment or amount listed in the second column of the       table (the name of that Sublimit is set forth in the third column).                                                        43                                                                    Bodman_16842095_7 

 

                      Type of            Maximum               Name of Sublimit                Purchased Loan    percentage/amount of                                  Maximum Aggregate                                      Commitment                 FHA Low FICO              5%            “FHA Low FICO Score Loan                Score Mortgage                                  Sublimit”                Loans (other than                 Aged Mortgage                    Loans)                 Jumbo Mortgage           30%              “Jumbo Loan Sublimit”                    Loans                  Aged Mortgage       $5,000,000.00         “Aged Mortgage Loan                    Loans                                       Sublimit”                 Second Mortgage      $5,000,000.00        “Second Mortgage Loan                    Loans                                       Sublimit”                  Discretionary       $3,000,000.00          “Discretionary Loan                    Loans                                       Sublimit”                    Non-QM                10%             “Non-QM Mortgage Loan                Mortgage Loans                                  Sublimit”                      4.3.  Compliance.  Seller shall immediately repurchase Purchased Loans necessary   to comply with all of the requirements of Section 4.1 and Section 4.2 of this Agreement.    Section 5.  Price Differential.            5.1.  Pricing Rate.  Except as otherwise provided herein with respect to the Default   Pricing Rate, the Pricing Rate to be applied to the Purchase Prices of Purchased Loans to   determine the Price Differential in all Open Transactions shall be the Daily Adjusting LIBOR   Rate (or, if applicable under Section 6.7, the Prime Referenced Rate).            5.2.  Pricing Rate for Default Pricing Rate Purchased Loans.  Notwithstanding any  contrary or inconsistent provision of this Section 5, the Pricing Rate to be multiplied by the   Purchase Prices of all Purchased Loans shall be the Default Pricing Rate from (and including)   (a) the day immediately following the Repurchase Date for any Past Due Purchased Loan and   until (but excluding) the date on which such Past Due Purchased Loan is repurchased by transfer   to the Agent (for Pro Rata distribution to the Buyers) of its full Repurchase Price in immediately   available funds; and (b) the date designated by the Agent to the Seller after the occurrence and   during the continuance of an Event of Default under Section 18.1.            5.3.  Price Differential Payment Due Dates.  Seller shall pay to Agent for Pro Rata   distribution to the Buyers and Swing Line Buyer, as applicable, on the fifth (5th) Business Day of                                          44                                                                     Bodman_16842095_7 

 

     each month before the Termination Date, Price Differential on each Open Transaction accrued   and unpaid to the end of the preceding month, whether or not such Transaction is still an Open   Transaction on such payment due date; provided that (a) all accrued and unpaid Price   Differential on all Transactions shall be due on the Termination Date, and (b) all Pricing   Differential calculated at the Default Pricing Rate shall be due on demand by Agent in its   individual capacity or at the direction of the Required Buyers.            5.4.  Adjustments to Buyer’s Price Differential based on Qualifying Balances  A   particular Buyer and the Seller may, from time to time, agree by separate agreement to   adjustments to such Buyer’s Price Differential based on Qualifying Balances (“Price Differential   Adjustment Agreement”), provided, however, that no such adjustments shall result in a Buyer   receiving more than it would have been entitled to receive with respect to any Transaction under   the terms of this Agreement.  Prior to or concurrently with the execution of any Price Differential   Adjustment Agreement, any such Buyer shall inform the Agent of the terms of any such   adjustments (such terms to be administratively acceptable to Agent).  Such Buyer shall notify   Agent of any adjustments to the Price Differential made pursuant to a Price Differential  Adjustment Agreement in accordance with this Section 5.4.  The adjustments identified in such  notice shall become effective on a date determined by Agent (but in any event shall not become  effective prior to the date such notice is received).   Section 6.  Margin Maintenance.            6.1.  Margin Deficit.                 (a)   If at any time the aggregate Purchase Value of all Purchased Loans subject        to all Transactions hereunder is less than the aggregate Repurchase Price (excluding Price        Differential), minus, without duplication, cash transfers previously made from the Seller        to the Agent in response to previous Margin Calls, if any, for all such Transactions (a        “Margin Deficit”), then by notice to the Seller (a “Margin Call”), the Agent shall require        the Seller to transfer (for the account of the Buyers) to the Agent (in the case of cash) or        the Custodian (in the case of Additional Purchased Loans, as defined below), as        appropriate, either (at the Seller’s option) cash, additional Eligible Loans reasonably        acceptable to the Agent (“Additional Purchased Loans”), or a combination of cash and        Additional Purchased Loans, so that the cash and the aggregate Purchase Value of the        Purchased Loans, including any such Additional Purchased Loans, will thereupon at least        equal the then aggregate Repurchase Price (excluding Price Differential).                 (b)   On any Business Day on which the Purchase Value of the Purchased        Loans subject to Transactions exceeds the then outstanding aggregate Repurchase Price        (excluding Price Differential) of all Transactions (a “Margin Excess”), so long as no        Default or Event of Default has occurred and is continuing or will result therefrom, the        Agent shall, upon receipt of a written request from the Seller, remit cash or authorize        Custodian to release Purchased Loans, as requested by the Seller, in either case in an        amount equal to the lesser of (i) the amount requested by the Seller and (ii) such Margin        Excess, subject always to the other limitations of this Agreement.  If cash is to be        remitted the Agent shall treat the receipt of the written request of the Seller under this        Section 6.1(b) as if it were a request for a Transaction.  To the extent the Agent remits                                          45                                                                     Bodman_16842095_7 

 

         cash to the Seller, such cash shall be (A) additional Purchase Price with respect to the        Transactions, and (B) subject in all respects to the provisions and limitations of this        Agreement.  Each Buyer shall fund its Pro Rata share of such additional Purchase Price        as if the remission of such Margin Excess were the initiation of a Transaction hereunder.           6.2.  Margin Call Deadline.  If the Agent delivers a Margin Call to the Seller at or  before 11:00 a.m. (Detroit, Michigan time) on any Business Day, then the Seller shall transfer  cash and/or Additional Purchased Loans as provided in Section 6.1 on the same Business Day.  If  the Agent delivers a Margin Call to the Seller after 11:00 a.m. (Detroit, Michigan time) on any  Business Day, then the Seller shall transfer cash and/or Additional Purchased Loans by no later  than 11:00 a.m. (Detroit, Michigan time) on the next following Business Day.           6.3.  Application of Cash.  Any cash transferred to the Agent (for Pro Rata  distribution to the Buyers) pursuant to this Section 6 shall be applied by the Buyers on receipt  from the Agent which shall occur on the date received from the Seller or the next Business Day  if received after 1:00 p.m. (Detroit, Michigan time).           6.4.  Increased Cost.  If any Change in Law:                (a)   shall subject such Buyer (or its LIBOR Lending Office) to any tax, duty or        other charge with respect to this Agreement or any Transaction or change the basis of        taxation of payments to the Buyer in respect thereof (except for changes in the rate of tax        on the overall net income of Buyer or its LIBOR Lending Office imposed by the        jurisdiction in which Buyer's principal executive office or LIBOR Lending Office is        located);                (b)   shall impose, modify or deem applicable any reserve (including, without        limitation, any imposed by the Board of Governors of the Federal Reserve System),        special deposit or similar requirement against assets of, deposits with or for the account        of, or credit extended by Buyer (or its LIBOR Lending Office), or shall impose on Buyer        (or its LIBOR Lending Office) or the foreign exchange and interbank markets any other        condition affecting this Agreement or the making or maintaining of Transactions        hereunder; or               (c)   shall impose on the Buyer any other condition:    and the result of any of the foregoing is to increase the cost to such Buyer, by an amount which  the Buyer deems to be material, of entering, continuing or maintaining any Transaction or to  reduce any amount due or owing hereunder in respect thereof, then in any such case, the Seller  shall promptly pay the Agent (for distribution to such Buyer) such additional amount or amounts  as calculated by the Buyer in good faith as will compensate the Buyer for such increased cost or  reduced amount. A certificate of a Buyer, prepared in good faith and in reasonable detail by such  Buyer and submitted to the Seller and the Agent, setting forth the basis for determining such  additional amount or amounts necessary to compensate such Buyer shall be conclusive and  binding for all purposes, absent manifest error.           6.5.  Capital Adequacy.  If any Change in Law affects or would affect the amount of  capital or liquidity required or expected to be maintained by such Buyer (or any corporation                                         46                                                                    Bodman_16842095_7 

 

   controlling such Buyer), and such Buyer determines that the amount of such capital is increased  by or based upon the existence of any its obligations hereunder or the maintaining of any  Transactions, and such increase has the effect of reducing the rate of return on such Buyer's (or  such controlling corporation's) capital as a consequence of such obligations or the maintaining of  such Transactions to a level below that which such Buyer (or such controlling corporation) could  have achieved but for such circumstances (taking into consideration its policies with respect to  capital adequacy), then the Seller shall pay to such Buyer, within fifteen (15) days of the Seller’s  receipt of written notice from such Buyer demanding such compensation, additional amounts as  are sufficient to compensate such Buyer (or such controlling corporation) for any increase in the  amount of capital and reduced rate of return which Buyer reasonably determines to be allocable  to the existence of any obligations of the Buyer hereunder or to maintaining any Transactions  hereunder.  A certificate of a Buyer as to the amount of such compensation, prepared in good  faith and in reasonable detail by the Buyer and submitted to the Seller, shall be conclusive and  binding for all purposes absent manifest error.           6.6.   Market Valuations for Purchase Values.  In the discretion of the Agent or  Required Buyers if it or they reasonably determine that market conditions warrant (except that  the Agent shall have no obligation to make such determination more frequently than once per  day), the Agent may (a) notify Custodian that Agent desires to re-calculate the Purchase Values  of all or a portion of the Purchased Loans using the Market Values of such Purchased Loans,  which notice shall include the Market Values determined by Agent for such Purchased Loans,  and (b) obtain from Custodian an updated Purchased Loan Collateral Activity Summary Report  taking into account such Market Values.           6.7.  Provisions Relating to Daily Adjusting LIBOR Rate.                 (a)   If the Agent or the Required Buyers (after consultation with the Agent)        shall determine in good faith that, (i) it is or they are unable to determine or ascertain the       Daily Adjusting LIBOR Rate, or (ii) by reason of circumstances affecting the foreign       exchange and interbank markets generally, deposits in eurodollars in the applicable       amounts or for the relative maturities are not being offered to Agent or such Buyers, or        (iii) the Daily Adjusting LIBOR Rate will not accurately or fairly cover or reflect the cost        of making, maintaining or funding any Transaction based upon the Daily Adjusting        LIBOR Rate, then Agent shall forthwith give notice thereof to the Seller.  Thereafter,        until Agent notifies the Seller that such conditions or circumstances no longer exist, the        Prime Referenced Rate shall be the applicable Pricing Rate for all Transactions during        such period of time, and each Transaction which bears interest at or by reference to the        Daily Adjusting LIBOR Rate shall automatically be converted into a Transaction with a        Pricing Rate determined by reference to the Prime Referenced Rate.               (b)   If any Change in Law shall make it unlawful or impossible for any of the       Buyers (or any of their respective LIBOR Lending Offices) to honor its obligations       hereunder to make or maintain any Transaction which bears interest at or by reference to       the Daily Adjusting LIBOR Rate, such Buyer shall give notice thereof to the Seller and       the Agent. Thereafter, until such Buyer notifies the Seller that such conditions or        circumstances no longer exist, the Prime Referenced Rate shall be the applicable Pricing        Rate for all Transactions hereunder during such period of time, and if any of the Buyers                                         47                                                                    Bodman_16842095_7 

 

           may not lawfully continue to maintain any existing Transaction with a Pricing Rate         determined at or by reference to the Daily Adjusting LIBOR Rate, the applicable         Transaction shall immediately be converted to a Transaction with a Pricing Rate        determined by reference to the Prime Referenced Rate. For purposes of this Section, a         change in law, rule, regulation, interpretation or administration shall include, without         limitation, any change made or which becomes effective on the basis of a law, rule,        regulation, interpretation or administration presently in force, the effective date of which        change is delayed by the terms of such law, rule, regulation, interpretation or        administration.                (c)   If at any time the Agent or the Required Buyers (after consultation with         the Agent) shall determine (which determination shall be conclusive absent manifest         error) that (i) the circumstances set forth in Section 6.7(a)(ii) have arisen and such         circumstances are unlikely to be temporary or (ii) the circumstances set forth in Section         6.7(a)(ii) have not arisen but the supervisor for the administrator of eurodollar rates or a         Governmental Authority having jurisdiction over the Agent has made a public statement         identifying a specific date after which eurodollar rates shall no longer be used for         determining interest rates for loans, then the Agent and Seller shall endeavor to establish        an alternative to the Daily Adjusting LIBOR Rate (together with any spread adjustment         thereto) that gives due consideration to the then prevailing market convention for         determining a rate of interest for syndicated loans in the United States at such time, and         shall enter into an amendment to this Agreement to reflect such alternate rate (together         with any spread adjustment thereto) and such other related changes to this Agreement as         may be applicable (but for the avoidance of doubt, such related changes shall not include         a reduction of the Applicable Margin unless agreed to by all Buyers in accordance with         Section 22.6); provided that, if such alternate rate shall be less than seventy-five         hundredths of one percent (.75%) per annum, such rate shall be deemed to be seventy-        five hundredths of one percent (.75%) per annum for the purposes of this Agreement.        Notwithstanding anything to the contrary in Section 22.6, such amendment shall become        effective without any further action or consent of any other party to this Agreement so        long as the Agent shall not have received, within ten (10) Business Days of the date         notice of such alternate rate is provided to the Buyers, a written notice from the Required         Buyers stating that such Required Buyers object to such amendment. Until an alternate        rate shall be determined in accordance with this paragraph (c), the Prime Referenced Rate        shall be the applicable Pricing Rate for all Transactions.    Section 7.  Taxes.            7.1.  Payments to be Free of Taxes; Withholding.  Any and all payments by the   Seller under or in respect of this Agreement or any other Repurchase Documents to which the   Seller is a party shall be made free and clear of, and without deduction or withholding for or on   account of, any and all present or future taxes, levies, imposts, deductions, charges or   withholdings, and all liabilities (including penalties, interest and additions to tax) with respect   thereto, whether now or hereafter imposed, levied, collected, withheld or assessed by any   taxation authority or other Governmental Authority (collectively, “Taxes”), unless required by  any Legal Requirement.  If the Seller shall be required under any applicable Legal Requirement  to deduct or withhold any Taxes from or in respect of any sum payable under or in respect of this                                          48                                                                     Bodman_16842095_7 

 

   Agreement or any of the other Repurchase Documents to the Agent (for the account of the  Buyers), (a) the Seller shall make all such deductions and withholdings in respect of Taxes,  (b) the Seller shall pay the full amount deducted or withheld in respect of Taxes to the relevant  taxation authority or other Governmental Authority in accordance with any applicable Legal  Requirement and (c) the sum payable by the Seller shall be increased as may be necessary so that  after the Seller has made all required deductions and withholdings (including deductions and  withholdings applicable to additional amounts payable under this Section 7) each Buyer receives  an amount equal to the sum it would have received had no such deductions or withholdings been  made in respect of Non-excluded Taxes.  For purposes of this Agreement the term “Non- excluded Taxes” means Taxes other than, in the case of any Person, Taxes that are imposed on its  overall net income (and franchise taxes imposed in lieu thereof) by the jurisdiction under the  laws of which such Person is organized or of its applicable lending office, or any political  subdivision thereof.           7.2.  Other Taxes.  In addition, the Seller hereby agrees to pay any present or future  stamp, recording, documentary, excise, property or value-added taxes, or similar taxes, charges  or levies (including any interest or penalties arising in connection therewith) that arise from any  payment made under or in respect of this Agreement or any other Repurchase Document or from  the execution, delivery or registration of, any performance under, or otherwise with respect to,  this Agreement or any other Repurchase Documents (collectively, “Other Taxes”).           7.3.  Taxes Indemnity.  The Seller hereby agrees to indemnify the Buyers and the  Agent for, and to hold each of them harmless against, the full amount of Non-excluded Taxes  and Other Taxes, and the full amount of Taxes (other than Taxes that are imposed on its overall  net income (and franchise taxes imposed in lieu thereof) by the jurisdiction under the laws of  which such Person is organized or of its applicable lending office, or any political subdivision  thereof) of any kind imposed by any jurisdiction on amounts payable under this Section 7  imposed on or paid by the Buyers or the Agent and any liability (including penalties, additions to  tax, interest and expenses) arising therefrom or with respect thereto.  The indemnity by the Seller  provided for in this Section 7.3 shall apply and be made whether or not the Non-excluded Taxes  or Other Taxes for which indemnification hereunder is sought have been correctly or legally  asserted.  Amounts payable by the Seller under the indemnity set forth in this Section 7.3 shall be  paid within fifteen (15) days from the date on which the Agent or any Buyer makes written  demand therefor.             7.4.  Receipt.  Within thirty (30) days after the date of any payment of Taxes, the  Seller (or any Person making such payment on behalf of the Seller) shall furnish to the Agent for  each Buyer’s account a certified copy of the original official receipt evidencing payment thereof.                                            49                                                                    Bodman_16842095_7 

 

           7.5.  Non-Exempt Buyer.  For purposes of this Section 7.5, the terms “United States”  and “United States person” shall have the meanings specified in Section 7701 of the Internal  Revenue Code.  Each Buyer (including, for avoidance of doubt, any assignee, successor or  participant) that either (x) is not incorporated under the laws of the United States, any State  thereof or the District of Columbia or (y) whose name does not include “Incorporated”, “Inc.”,  “Corporation”, “Corp.”, “P.C.”, “insurance company” or “assurance company” (a “Non-Exempt  Buyer”) shall deliver or cause to be delivered to the Agent two originals of each of the following  properly completed and duly executed documents:               (a)   in the case of a Non-Exempt Buyer that is not a United States person, (i) a        complete and executed (A) U.S. Internal Revenue Form W-8BEN with Part II completed        in which the Buyer claims the benefits of a tax treaty with the United States providing for        a zero or reduced rate of withholding (or any successor forms thereto), including all        appropriate attachments or (B) U.S. Internal Revenue Service Form W-8ECI (or any       successor forms thereto) and (ii) if such Non-Exempt Buyer is treated as a corporation for       United States federal tax purposes, a certificate substantially in the form of Exhibit D (a        “Corporation Tax Treatment Certificate”); or               (b)   in the case of an individual, (i) a complete and executed U.S. Internal        Revenue Service Form W-8BEN (or any successor forms thereto) and a Corporation Tax        Treatment Certificate or (ii) a complete and executed U.S. Internal Revenue Service        Form W-9 (or any successor forms thereto); or               (c)   in the case of a Non-Exempt Buyer that is organized under the laws of the        United States, any State thereof, or the District of Columbia, (i) a complete and executed        U.S. Internal Revenue Service Form W-9 (or any successor forms thereto), including all        appropriate attachments, and (ii) if such Non-Exempt Buyer is treated as a corporation for        United States federal tax purposes, a Corporation Tax Treatment Certificate; or               (d)   in the case of a Non-Exempt Buyer that (i) is not organized under the laws       of the United States, any State thereof, or the District of Columbia and (ii) is treated as a       corporation for U. S. federal income tax purposes, a complete and executed U.S. Internal       Revenue Service Form W-8BEN claiming a zero rate of withholding (or any successor       forms thereto) and a Corporation Tax Treatment Certificate; or              (e)   in the case of a Non-Exempt Buyer that (i) is treated for U.S. federal       income tax purposes as a partnership or other non-corporate entity, and (ii) is not       organized under the laws of the United States, any State thereof, or the District of       Columbia, (A)(1) a complete and executed U.S. Internal Revenue Service Form W-8IMY       (or any successor forms thereto) (including all required documents and attachments) and       (2) a Corporation Tax Treatment Certificate, and (ii) without duplication, with respect to       each of its beneficial owners and the beneficial owners of such beneficial owners looking       through chains of owners to individuals or entities that are treated as corporations for       U.S. federal income tax purposes (all such owners, “Beneficial Owners”), the documents       that would be required by this Section 7.5 with respect to each such Beneficial Owner if        such Beneficial Owner were a Buyer, provided that no such documents will be required        with respect to a Beneficial Owner to the extent the actual Buyer is determined to be in                                         50                                                                    Bodman_16842095_7 

 

           compliance with the requirements for certification on behalf of its Beneficial Owner as         may be provided in applicable U.S. Treasury regulations, or the requirements of this         Section 7.5 are otherwise determined to be unnecessary, all such determinations under         this Section 7.5 to be made in the sole discretion of the Seller, provided that each such         Buyer shall be provided an opportunity to establish such compliance as reasonable; or                (f)   in the case of a Non-Exempt Buyer that is disregarded for U.S. federal        income tax purposes, the document that would be required by this Section 7.5 with         respect to its Beneficial Owner if such Beneficial Owner were a Buyer; or                (g)   in the case of a Non-Exempt Buyer that (i) is not a United States person        and (ii) is acting in the capacity as an “intermediary” (as defined in U.S. Treasury        regulations), (A)(1) a U.S. Internal Revenue Service Form W-8IMY (or any successor        form thereto) (including all required documents and attachments) and (2) a Corporation        Tax Treatment Certificate, and (B) if the intermediary is a “non-qualified intermediary”        (as defined in U.S. Treasury regulations), from each person upon whose behalf the “non-       qualified intermediary” is acting the documents that would be required by this Section 7.5         with respect to each such person if each such person were a Buyer.    If the forms referred to in this Section 7.5 that are provided by a Buyer at the time such Buyer   first becomes a party to this Agreement, a successor to a Buyer or, with respect to a permitted   assignment of or a grant of a participation in the interests of a Buyer hereunder, the effective date   thereof, indicate a United States interest withholding tax rate in excess of zero, withholding tax   at such rate shall be treated as Taxes other than Non-excluded Taxes (“Excluded Taxes”) and   shall not qualify as Non-Excluded Taxes unless and until such Buyer provides the appropriate   form certifying that a lesser rate applies, whereupon withholding tax at such lesser rate shall be   considered Excluded Taxes solely for the periods governed by such form.  If, however, on the   date a Person becomes an assignee, successor or participant to this Agreement, the Buyer   transferor was entitled to indemnification or additional amounts under this Section 7, then the   Buyer assignee, successor or participant shall be entitled to indemnification or additional   amounts to the extent (and only to the extent), that the Buyer transferor was entitled to such   indemnification or additional amounts for Non-excluded Taxes, and the Buyer assignee,   successor or participant shall be entitled to additional indemnification or additional amounts for  any other or additional Non-excluded Taxes.            7.6.  If Buyer Fails to Provide Form.  For any period with respect to which a Buyer   required to do so has failed to provide the Seller with the appropriate form, certificate or other   document described in Section 7.5 (other than (a) if such failure is due to a change in any   applicable Legal Requirement, or in the interpretation or application thereof, occurring after the   date on which a form, certificate or other document originally was required to be provided, (b) if   such form, certificate or other document otherwise is not required under Section 7.5 or (c) if it is   legally inadvisable or otherwise commercially disadvantageous for such Buyer to deliver such   form, certificate or other document), such Buyer shall not be entitled to indemnification or   additional amounts under Section 7.2 or Section 7.3 with respect to Non-excluded Taxes   imposed by the United States by reason of such failure; provided that should a Buyer become   subject to Non-excluded Taxes because of its failure to deliver a form, certificate or other                                          51                                                                     Bodman_16842095_7 

 

     document required hereunder, the Seller shall take such steps as such Buyer shall reasonably   request, to assist such Buyer in recovering such Non-excluded Taxes.            7.7.  Refunds.  If the Agent or any Buyer, in its sole opinion, determines that it has   finally and irrevocably received or been granted a refund in respect of any Taxes paid as to   which indemnification has been paid by the Seller pursuant to this Section, it shall promptly   remit such refund, net of all reasonable out of pocket costs and expenses, to the Seller; provided,  that the Seller agrees to promptly return any such refund to the Agent or such Buyer, as  applicable, if such person is required to repay such refund to the relevant taxing authority.   Nothing contained herein shall impose an obligation on the Agent or any Buyer to apply for any  such refund.            7.8.  Survival.  Without prejudice to the survival of any other agreement of the  Seller hereunder, the agreements and obligations of the Seller contained in this Section 7 shall   survive the termination of this Agreement.  Nothing contained in this Section 7 shall require the   Buyer to make available any of its tax returns or any other information that it deems to be   confidential or proprietary.    Section 8.  Income and Escrow Payments; Control.            8.1.  Income and Escrow Payments.  Notwithstanding that the Buyers, the Agent   and the Seller intend that the Transactions be sales to the Buyers of the Purchased Loans, where   a particular Transaction’s term extends over an Income payment date on the Purchased Loans   subject to that Transaction, all payments and distributions, whether in cash or in kind, made on   or with respect to the Purchased Loans shall be paid directly to the Seller or its designee by the   relevant Customer, and the Agent (and the Buyers) shall have no obligation to collect or apply   any Income to prevent or reduce any Margin Deficit, unless the Seller (a) arranges for such   Income to be paid to the Agent (for Pro Rata distribution to the Buyers), (b) requests that the   Agent apply such Income when received against the Seller’s Margin Deficit(s) and   (c) concurrently transfers to the Agent either (i) cash or (ii) at the Agent’s option and with the   Agent’s written approval, Additional Purchased Loans, sufficient to eliminate such Margin   Deficit.  Amounts paid to the Seller by the relevant Customer shall be deposited by the Seller   into the Income Account within two (2) Business Days of receipt by the Seller and, as to   amounts so paid to the Seller for escrow payments, into the Escrow Account.  The Income   Account and the Escrow Account shall be maintained by the Seller with Comerica Bank and   shall be subject to the control of the Agent. The Income Account and Escrow Account may be   interest bearing accounts if allowed or required by applicable law.  At all times, other than during   the existence of an Event of Default, the Seller may have full use of all Income and amounts on   deposit in the Income Account, subject to the provisions of Section 8.2.             8.2.  Income and Escrow Accounts.  Other than during the existence of an Event of   Default and so long as the Seller is also the Servicer, the Seller shall make payments from the   Escrow Account of all appropriate amounts payable with respect to each Purchased Loan for   taxes, insurance and other purposes for which the funds are paid into the Escrow Account.    Subject to Section 8.3, amounts on deposit in the Income Account shall be used by the Seller to   pay its fees as Servicer while it serves in such capacity, and may be used to pay to the Agent                                           52                                                                     Bodman_16842095_7 

 

   amounts due under this Agreement for Margin Deficit or Price Differential and for any other  lawful purpose.           8.3.  Income and Escrow Accounts after Default.  Upon the occurrence and during  the continuation of an Event of Default, the Seller shall have no right to direct withdrawal or  application of funds in the Income Account and the Escrow Account unless authorized to do so  in writing by the Agent.  The Agent may cause all amounts on deposit in the Income Account to  be paid to it or its designee for application as provided in Section 18.4.  The Agent or its  designee shall direct payments from the Escrow Account for the purposes for which such funds  are deposited into the Escrow Account and shall comply with all Legal Requirements applicable  to the operation of the Income Account and the Escrow Account, including any Agency  guidelines with respect thereto.   Section 9.  Facility Fee; Agent’s Fee.           9.1.  Facility Fee.  The Seller agrees to pay to the Agent (for Pro Rata distribution to  the Buyers) a facility fee (the “Facility Fee”) on the Maximum Aggregate Commitment at a rate  of ten hundredths of one percent (0.10%) per annum, computed on the actual number of days  elapsed using a year of 360 days.  The Facility Fee shall be payable in arrears within ten (10)  days after the end of each calendar quarter, commencing with the quarter ending September 30,  2020, and on the Termination Date.  The calculation by Agent of the Amount of the Facility Fee  shall be conclusive and binding absent manifest error.  Such fee shall be deemed fully earned  upon receipt by Agent and shall not be refundable for any reason.           9.2.  Agent’s Fees.  The Seller agrees to pay to the Agent the fees set forth in the  Fee Letter.   Section 10. Security Interest; License.           10.1. Intent of the Parties.  The parties intend that all Transactions hereunder be  sales and purchases (other than for accounting and tax purposes) and not loans; nonetheless, as a  security agreement under the UCC and as a security agreement or other arrangement or other  credit enhancement related to this Agreement and transactions hereunder as provided for in  Section 101(47) (A)(v) of the Bankruptcy Code, the Seller hereby pledges to the Agent for the  benefit of the Buyers as security for the performance by the Seller of the Obligations and hereby  grants, assigns and pledges to the Agent for the benefit of the Buyers a fully perfected first  priority security interest in all of the following, whether now owned or hereafter acquired,  wherever located (the “Collateral”):         (a)   Purchased Loans: All of the Purchased Loans and all Income and proceeds from              the Purchased Loans, including all of the property, rights and other items              described in the definition of “Mortgage Loan” in Section 1.2 for each such              Purchased Loan and all rights to have, receive and retain the return or refund of              funds transferred from any account with the Agent to any title company, title              agent, escrow agent or other Person for the purpose of originating or funding a              Mortgage Loan that did not close (for any reason) and that would have been a              Purchased Loan if it had closed (all funds so transferred continuously remain the                                         53                                                                    Bodman_16842095_7 

 

                      property of the Agent and the Buyers until disbursed by such agent to or for the        account of the related Customer upon the closing of his or her Mortgage Loan);   (b)   With respect to Purchased Loans: With respect to the Purchased Loans:         (i)   all Purchased Loans Support;         (ii)  all of the Seller’s right, title and interest in all Mortgaged Premises related  to the Purchased Loans;         (iii) all rights to deliver Purchased Loans to investors and other purchasers and  all proceeds resulting from the disposition of Purchased Loans pursuant thereto, including  the Seller’s right and entitlement to receive the entire purchase price paid for Purchased  Loans sold;         (iv)  all Hedge Agreements relating to or constituting any and all of the  foregoing or relating to the Obligations, including all rights to payment arising under  such Hedge Agreements;         (v)   all Servicing Rights and Servicing Records in respect of any of the  Purchased Loans; and         (vi)  all of the Seller’s rights now or hereafter existing in, to or under any MBS  secured by, created from or representing any interest in any of the Purchased Loans,  whether now owned or hereafter acquired by the Seller, and whether such MBS are  evidenced by book entry or certificate (the Agent’s ownership interest and security  interest in each MBS created from, based on or backed by Purchased Loans shall  automatically exist in, attach to, cover and affect all of the Seller’s right, title and interest  in that MBS when issued and its proceeds and the Agent’s ownership interest and  security interest in the Purchased Loans from which such MBS was so created shall  automatically terminate and be released when such MBS is issued, subject to automatic  reinstatement if such issuance is voided or set aside by any court of competent  jurisdiction), all right to the payment of monies and non-cash distributions on account of  any of such MBS and all new, substituted and additional securities at any time issued  with respect thereto;   (c)   Related Accounts, Payment Intangibles, General Intangibles:         (i)   all accounts, payment intangibles, general intangibles, documents  (including documents of title), chattel paper (including without limit electronic chattel  paper and tangible chattel paper), contract rights and proceeds, whether now or hereafter  existing (including all of the Seller’s present and future rights to have and receive interest  and other compensation, whether or not yet accrued, earned, due or payable, and all other  rights to payment), under or arising out of or relating to any of the Purchased Loans or  any of the MBS described in Section 10.1(b)(vi) above;         (ii)  all instruments, documents or writings evidencing any such accounts,  payment intangibles, general intangibles, instruments, chattel paper, contract rights or                                   54                                                              Bodman_16842095_7 

 

           proceeds or evidencing any monetary obligation under, or security interest in, any of the         Purchased Loans, all other papers delivered to the Agent or the Custodian, and all other         rights transferred to the Agent, in respect of any of the Purchased Loans or any of the         MBS described in Section 10.1(b)(vi) above, including, without limitation, the right to        collect, have and receive all insurance proceeds (including, but not limited to, casualty        insurance, mortgage insurance, pool insurance and title insurance proceeds) and        condemnation awards or payments in lieu of condemnation that may be or become        payable in respect of the Mortgaged Premises securing or intended to secure any        Purchased Loan, and other personal property of whatever kind relating to any of the        Purchased Loans or any of the MBS described in Section 10.1(b)(vi) above, in each case         whether now existing or hereafter arising, accruing or acquired;                (iii) all security for or claims against others in respect of any of the Purchased         Loans or any of the MBS described in Section 10.1(b)(vi) above; and                (iv)  all proceeds and rights to proceeds of any sale or other disposition of any         of the Purchased Loans or any of the MBS described in Section 10.1(b)(vi) above;          (d)   Repurchase Settlement Account, Operating Account, Funding Account and other   accounts: the Repurchase Settlement Account, the Operating Account, the Funding Account, the   Income Account, the Escrow Account, the Approved MBS Custodian Account and all cash and   all securities and other property from time to time on deposit in each such account;         (e)   Loan Records: all Loan Records;         (f)   Other Rights: all rights to have and receive any of the Purchased Loans or MBS  described above, all accessions or additions to and substitutions for any of such Purchased Loans   or MBS, together with all renewals and replacements of any of such Purchased Loans or MBS,   all other rights and interests now owned or hereafter acquired by the Seller in, under or relating   to any of such Purchased Loans or MBS or referred to above and all proceeds of any of such   Purchased Loans or MBS;          (g)   Other Property in Possession of Agent: all goods, instruments (including, without   limit, promissory notes), documents (including, without limit, negotiable instruments), policies   and certificates of insurance, deposit accounts, and money or other property which are now or   later in possession of Agent, or as to which Agent now or later controls possession by documents   or otherwise; and          (h)   Proceeds: all replacements, substitutions, renewals, interest, dividends,   distributions, rights of any kind, products, proceeds and rights to proceeds with respect to any   and all the foregoing.          The Seller agrees to do such things as applicable law requires to maintain the security   interest of the Agent in all of the Purchased Loans with respect to all such Transactions and all   Income and proceeds from the Purchased Loans that are the subject matter of such Transactions   and all of the other Collateral as a perfected first priority Lien at all times.  The Seller hereby   authorizes the Agent to file any financing or continuation statements under the applicable UCC   to perfect or continue such security interest in any and all applicable filing offices.  The Seller                                          55                                                                     Bodman_16842095_7 

 

   shall pay all customary fees and expenses associated with perfecting such security interest  including the costs of filing financing and continuation statements under the UCC and recording  assignments of Mortgages as and when required by the Agent in its reasonable discretion.           10.2. Remedies.  If an Event of Default shall have occurred and be continuing, the  Agent shall have the following rights and remedies (in addition to the other rights and remedies  under in this Agreement or any other Repurchase Document or applicable law):               (a)   all of the rights and remedies of a secured party under the UCC (whether        or not the UCC applies to the affected Collateral) and the Agent may also, without        previous demand or notice except as specified herein or required by applicable law, sell,        lease or otherwise dispose of the Collateral, or any part thereof, in one or more parcels at        public or private sale or sales, at the Agent’s offices or elsewhere, for cash, on credit or        for future delivery, and upon such other terms as the Agent may, in its reasonable        discretion, deem commercially reasonable or otherwise as may be permitted by law;        collect, receive or take possession of the Collateral or any part thereof, and the Agent        and, subject to the terms of this Agreement, each of the Buyers shall have the right at any        public sale or sales, and, to the extent permitted by applicable law, at any private sale or        sales, to bid (which bid may be, in whole or in part, in the form of cancellation of        indebtedness) and become a purchaser of the Collateral or any part thereof free of any        right of redemption on the part of the Seller, which right of redemption is hereby        expressly waived and released by the Seller to the extent permitted by applicable law.         The Seller agrees that, in the event that applicable law requires such notice, the Agent        shall not be obligated to give more than ten (10) days prior written notice of the time and        place of any public sale or of the time after which any private sale may take place and        that such notice shall constitute reasonable notice of such matters.  The Agent shall not be        obligated to make any sale of Collateral if, in the exercise of its reasonable discretion, it        shall determine not to do so, regardless of the fact that notice of sale of Collateral may        have been given.  On any sale of the Collateral, the Agent is hereby authorized to comply        with any limitation or restriction with which compliance is necessary (based on a        reasoned opinion of the Agent’s counsel) in order to avoid any violation of applicable law        or in order to obtain any required approval of the purchaser or purchasers by any        applicable Governmental Authority. The Agent shall apply the proceeds from the sale of        the Collateral hereunder against the Obligations as set forth in Section 18.4;                (b)   The Agent may cause any or all of the Collateral held by it to be        transferred into the name of the Agent or the name or names of the Agent’s nominee or        nominees.               (c)   The Agent may exercise any and all rights and remedies of the Seller        under or in respect of the Collateral, including, without limitation, any and all rights of        the Seller to demand or otherwise require payment of any amount under, or performance        of any provision of any of the Collateral.              (d)   The Agent may direct any parties liable for any payment under any of the       Collateral to make payment of any and all monies due and to become due thereunder       directly to the Agent or as the Agent shall direct.                                         56                                                                    Bodman_16842095_7 

 

     Section 11. Substitution.            11.1. Seller May Substitute Other Mortgage Loans with Notice to and Approval of     Agent.  So long as no Event of Default has occurred and is continuing and no Margin Deficit   exists or occurs as a consequence thereof, the Seller may request to substitute Mortgage Loans   for any substantially similar Purchased Loans by giving notice to the Agent and Custodian on or   before 12:00 noon (Detroit, Michigan time) on a Business Day, and delivering to the Custodian   the Mortgage Loan Transmission File with respect to the Mortgage Loans to be substituted and   other documents required to be delivered in connection with any new Transaction.  Upon receipt   of such request, and an updated Eligible Loans Report from the Custodian that takes into account   the requested substitution of Mortgage Loans, the Agent may elect in its sole discretion, by 5:00   p.m. (Detroit, Michigan time) on the Business Day notice is received or by 5:00 p.m. (Detroit,   Michigan time) on the next Business Day if notice is given after 12:00 noon (Detroit, Michigan   time), to accept such substitution.  If such substitution is accepted by the Agent, such substitution   shall be made by the Seller’s transfer to the Agent of such other Mortgage Loans on a servicing   released basis and the Agent’s transfer to the Seller of the Purchased Loans to be replaced, and   after such substitution, the substituted Mortgage Loans shall be deemed to be Purchased Loans.    If the Agent elects not to accept such substitution, the Seller shall offer the Agent and the Buyers   the right to terminate the related Transaction.  If Agent, in its sole discretion, accepts such offer,   then the Transaction shall be terminated as if a Disqualifier had occurred with respect to such   Transaction in accordance with Section 3.3(b).            11.2. Payment to Accompany Substitution.  If a substitution of Mortgage Loans or   termination of a Transaction occur under this Section 11, the Seller shall be obligated to pay to   the Agent (for Pro Rata distribution to the Buyers) by the close of the Business Day on the date   of such substitution or termination, as the case may be, an amount equal to the sum of (a) actual   cost (including all customary fees, expenses and commissions) to the Agent and the Buyers of   (i) entering into replacement Transactions; (ii) entering into or terminating hedge transactions   and/or (iii) terminating Transactions or substituting securities in like transactions with third   parties in connection with or as a result of such substitution or termination, and (b) to the extent   the Agent determines not to enter into replacement Transactions, the loss incurred by the Agent   and the Buyers directly arising or resulting from such substitution or termination.  The foregoing   amounts shall be solely determined and calculated by the Agent and the applicable Buyers in   good faith.    Section 12. Payment and Transfer.            12.1. Immediately Available Funds; Notice to Custodian.  All transfers of funds  hereunder shall be in immediately available funds.  All Mortgage Loans transferred by one party  hereto to any other party shall be transferred by notice to the Custodian to the effect that the  Custodian is then holding for the benefit of the transferee the related documents and assignment  forms delivered to it under the Custody Agreement.            12.2. Payments to the Agent.  Except as otherwise specifically provided in this  Agreement, all payments required by this Agreement or the other Repurchase Documents to be  made to the Agent shall be paid to the Agent by no later than 1:00 p.m. (Detroit, Michigan time)  on the day when due (funds received after 1:00 p.m. (Detroit, Michigan time) shall be                                          57                                                                     Bodman_16842095_7 

 

   conclusively deemed to have been paid by the Seller on the next following Business Day unless  the Agent shall agree otherwise) and without set-off, counterclaim or deduction, in lawful money  of the United States of America in immediately available funds as provided in Section 24.4, or at  such other place as the Agent shall designate from time to time.  Whenever any payment to be  made under this Agreement or any of the other Repurchase Documents shall be stated to be due  on a day that is not a Business Day, the due date for that payment shall be automatically  extended to the next day that is a Business Day, and (if applicable) Price Differential at the  applicable rate (determined in accordance with this Agreement) shall continue to accrue during  the period of such extension.             12.3. If Payment Not Made When Due.  If and to the extent any payment is not made  when due under this Agreement or any of the other Repurchase Documents, the Seller authorizes  the Agent and each Buyer (for the Pro Rata account and benefit of all of the Buyers) then or at  any time thereafter to charge any amounts so due and unpaid against any or all of the Seller’s  accounts with the Agent or any of the Buyers; provided that such right to charge the Seller’s  accounts shall not apply to any escrow, trust or other deposit accounts designated as being held  by the Seller on behalf of third party owners of the escrowed funds other than Affiliates of the  Seller.  The Agent and each Buyer agrees to use reasonable efforts to promptly advise the Seller  of any charge made pursuant to this Section 12.3, but the failure to do so will not affect the  validity or collectability of such charge.  Neither the Agent nor any Buyer shall have any  obligation to charge any Seller account, merely the right to do so.           12.4. Payments Valid and Effective.  Each payment received by the Agent in  accordance with this Agreement is valid and effective to satisfy and discharge the Seller’s  liability under the Repurchase Documents to the extent of the payment.           12.5. Pro Rata Distribution of Payments.  The Agent shall distribute all payments of  Repurchase Price (whether voluntary or involuntary and from whatever source) received to the  Buyers Pro Rata with their respective ownership interests in the Purchased Loans on the next  Swing Line Refunding Due Date.  The distribution from the Agent to each Buyer shall be made  by the Agent’s initiating a federal funds wire transfer by 3:00 p.m. (Detroit, Michigan time) on  such Swing Line Refunding Due Date, in immediately available funds directly to such Buyer or  to such account at another financial institution as is designated from time to time by such Buyer  in writing.           Section 13. Segregation of Documents Relating to Purchased Loans.         All documents relating to Purchased Loans in the possession of the Seller or its designee  (including its agent, or any subservicer) shall be segregated from other documents and securities  in its or its designee’s possession and shall be identified as being owned by the Buyers and held  by the Agent on behalf of the Buyers (which shall be referenced in the relevant books and  records as “Comerica Bank, Agent”) and subject to this Agreement.  Segregation may be  accomplished by appropriate identification of ownership on the books and records of the holder  of such documents, including MERS, a documents custodian, a financial or securities  intermediary, or a clearing corporation.  All of the Seller’s interest in the Purchased Loans shall  pass to the Buyers on the Purchase Date and nothing in this Agreement shall preclude the Agent  and the Buyers, in each case with the Buyers’ consent, from engaging with others in repurchase                                         58                                                                    Bodman_16842095_7 

 

   transactions with the Purchased Loans or otherwise selling, transferring, pledging, or  hypothecating the Purchased Loans, but no such transaction shall relieve the Buyers of their  obligations to transfer Purchased Loans to the Seller pursuant to Section 2.6 or 18, or of the  Agent’s obligation to credit or pay Income to, or apply Income to the obligations of, the Seller  pursuant to Section 8.   Section 14. Conditions Precedent.           14.1. Initial Purchase.  The obligations of the Buyers (and the Agent on the Buyers’  behalf) to make the initial purchase under this Agreement are subject to the Seller’s fulfillment  of the following conditions precedent:               (a)   the Agent shall have received (or be satisfied that it will receive by such        deadline as the Agent shall specify) the following, all of which must be satisfactory in        form and content to the Agent:                     (i)   this Agreement duly executed by the parties;                     (ii)  a UCC financing statement with respect to the Collateral;                      (iii) a current UCC search report of a UCC filings search in the office              of the Secretary of State of the State of Delaware;                     (iv)  (A) the completed Beneficial Ownership Certification from the              Seller and (B) all other documentation and other information required by bank              regulatory authorities under applicable “know your customer” and anti-money              laundering rules and regulations, including USA Patriot Act, and a properly              completed and signed IRS Form W-8 or W-9, as applicable, for the Seller and any              Person who provides guaranty or collateral support for all or any of the              Obligations;                      (v)   a copy of the member resolution (or equivalent thereof) of the              Seller authorizing the execution, delivery and performance of the Repurchase              Documents, certified as of the date of this Agreement by a Responsible Officer of              the Seller;                     (vi)  an incumbency certificate showing the names and titles and              bearing the signatures of the Responsible Officer(s) of the Seller authorized to              execute the Repurchase Documents, certified as of the date of this Agreement by              a Responsible Officer of Seller;                     (vii) a copy of the Operating Agreement of the Seller, certified as of the              date of this Agreement by the Secretary or an Assistant Secretary of the Seller;                     (viii) a copy of the Articles of Organization of the Seller with all              amendments thereto, certified by the appropriate governmental official of the              jurisdiction of its incorporation as of a date acceptable to the Agent in its sole              discretion;                                         59                                                                    Bodman_16842095_7 

 

                     (ix)  a certificate of good standing (or the equivalent thereof) for the              Seller in the jurisdiction of its incorporation, certified by the appropriate              governmental officials as of a date acceptable to the Agent in its sole discretion;                     (x)   evidence reasonably satisfactory to the Agent (i) as to the due              filing and recording in all appropriate offices of all financing statements, (ii) if              there are any Purchased Loans that require the Buyers’ interest to be noted by              book entry, that such book entry has been duly made and (iii) if there is any              “investment property” under the UCC of the State of Michigan or other applicable              law, that such instruments as are necessary to give the Agent “control” of such              investment property have been duly executed by the Seller and the relevant              securities intermediary;                     (xi)  copies of an errors and omissions insurance policy or mortgage              impairment insurance policy and blanket bond coverage policy, or certificates in              lieu of policies, providing such insurance coverage as is customary for members              of the Seller’s industry; and                     (xii) payment to the Agent or the Custodian, as applicable, of the              Facility Fee, the Agent’s Fee, the Custodian’s Fee and all other fees and expenses              (including the disbursements and reasonable fees of the Agent’s attorneys) of the              Agent and the Buyers payable by the Seller pursuant to Section 9 accrued and              billed for to the date of the Seller’s execution and delivery of this Agreement.               (b)   Except with respect to (i) any mortgage warehouse loans from or        repurchase transactions with Parent permitted pursuant to Section 17.2(c) and (ii)        obligations to remit loan proceeds to Parent or its Affiliates arising out of a sale of homes        by Parent or such Affiliate financed by the Seller, all members and managers of the Seller        and all Affiliates of the Seller, to whom or which the Seller is indebted as of the date of        this Agreement in excess of One Million Dollars ($1,000,000), either for borrowed        money or for any other obligation, excluding salary, bonus or other compensation        obligations, shall have caused such Debt to be Qualified Subordinated Debt, by executing        and causing to be delivered to the Agent a Subordination Agreement and taking all other        steps, if any, required to cause such Debt to be Qualified Subordinated Debt, and a        Responsible Officer of the Seller shall have certified each such Subordination Agreement        executed to satisfy the requirements of this Section 14.1(b) to be true, complete and in        full force and effect as of the date of the initial purchase.           14.2. Each Purchase.  The obligations of the Buyers (and the Agent on the Buyers’  behalf) to make any purchase (including the initial purchase) under this Agreement are also  subject to the satisfaction, as of each Purchase Date, of the following additional conditions  precedent:               (a)   The Seller shall have delivered to the Agent and the Custodian the related        Mortgage Loan Transmission Files for the new Mortgage Loans to be purchased.                                          60                                                                    Bodman_16842095_7 

 

                      (b)   Unless the requested Transaction is for the purchase of only Wet Loans,  the Custodian shall have issued its Exception Report relating to the Purchased Loans then  owned by the Buyers.         (c)   The representations and warranties of the Seller contained in this  Agreement and the other Repurchase Documents shall be true and correct in all material  respects as if made on and as of each Purchase Date unless specifically stated to relate to  an earlier date.         (d)   The Seller shall have performed all agreements to be performed by it  under this Agreement, the Custody Agreement and all other Repurchase Documents, as  well as under all Investor Commitments that the Seller has represented to the Agent and  the Buyers cover any of the Purchased Loans, and after the requested Transaction shall  have been executed, no Default or Event of Default has occurred and is continuing that  has not been waived by the Buyers or the Required Buyers, as applicable, nor will any  default exist under any such Investor Commitments.         (e)   The Seller shall not have incurred any liabilities (whether or not in the  ordinary course of business) that adversely and materially affect any of the Central  Elements in respect of the Seller or any of its Subsidiaries since the dates of the Seller’s  Financial Statements most recently theretofore delivered to the Buyers.         (f)   The Seller shall have paid the Agent’s Fee then due and payable in  accordance with Section 9.2.         (g)   Prior to the execution of the requested Transaction, no Default or Event of  Default shall have occurred and be continuing, or will occur after giving effect to such  Transaction, that has not been waived by the Buyers or the Required Buyers, as  applicable.         (h)   The requested Transaction will not result in the violation of any applicable  Legal Requirement.         (i)   The Agent and each Buyer shall have received such other documents, if  any, as shall be specified by the Agent or any Buyer.         (j)   No Margin Deficit exists or will exist after giving effect to such  Transaction.         (k)   The Termination Date shall not have occurred.         (l)   After giving effect to such Transaction, none of the sublimits set forth in  Section 4.2 shall be exceeded.                                     61                                                              Bodman_16842095_7 

 

     Section 15. Representations, Warranties and Covenants.            15.1. Buyers, Agent and Seller Representations.  The Buyers, the Agent and the  Seller each represents and warrants, and shall on and as of the Purchase Date of any Transaction  be deemed to represent and warrant, to the others that:               (a)   it is duly authorized to execute and deliver this Agreement, to enter into        the Transactions and to perform its obligations hereunder and has taken all necessary        action to authorize such execution, delivery and performance;               (b)   it will engage in such Transactions as principal (or, in the case of the        Agent, and in respect of any other party if agreed in writing in advance of any        Transaction by the other parties hereto, as agent for a disclosed principal);               (c)   the person signing this Agreement on its behalf is duly authorized to do so        on its behalf (or on behalf of any such disclosed principal);               (d)   it has obtained all authorizations of any governmental body required in        connection with this Agreement and the Transactions and such authorizations are in full        force and effect; and               (e)   the execution, delivery and performance of this Agreement and the        Transactions hereunder will not violate any law, ordinance, charter, by-law or rule        applicable to it or any agreement by which it is bound or by which any of its assets are        affected.            15.2. Additional Seller Representations.  With regard to:               (i)   Purchased Loans, on and as of the Purchase Date of any Transaction;               (ii)  Eligible Loans substituted pursuant to Section 11, on and as of the date of         their substitution; and                (iii) Additional Purchased Loans submitted pursuant to Section 6.1, on and as         of the date of their transfer to the Custodian,    the Seller hereby represents and warrants to the Buyers and the Agent as follows:                (a)   Documents Genuine.  The documents delivered or disclosed by the Seller         to the Agent or the Buyers pursuant to this Agreement or the Custody Agreement are         either original documents or genuine and true copies thereof.                (b)   No Securities to be Acquired with Purchased Loan Sale Proceeds.  None         of the Purchase Price for any Eligible Loan will be used either directly or indirectly to         acquire any security, as that term is defined in Regulation T, and the Seller has not taken         any action that might cause any Transaction to violate Regulation of T, Regulation U or         Regulation X.                                           62                                                                     Bodman_16842095_7 

 

                       (c)   Organization; Good Standing; Subsidiaries.  The Seller is a limited   liability company duly organized, validly existing and in good standing under the laws of   the State of Delaware, and each of the Seller’s Subsidiaries is a corporation or limited   liability company duly formed, validly existing and in good standing under the laws of   the jurisdiction of its incorporation or organization.  The Seller has furnished to the Agent   a true and complete copy of its Organizational Documents as in effect as of the date of   this Agreement, including all amendments thereto, and agrees to furnish to the Agent a   true and complete copy of any amendment adopted after the Effective Date promptly   after it is adopted.  The Seller and its Subsidiaries each has the requisite limited liability   company or corporate power and authority to own its properties and to carry on its   business as currently conducted and each is duly qualified to do business as a foreign   corporation or a limited liability company and in good standing in each jurisdiction in   which the ownership of its property or the transaction of its business makes such   qualification necessary, except in jurisdictions, if any, where a failure to be qualified,   licensed or in good standing could not reasonably be expected to have a material adverse   effect on any of the Central Elements in respect of the Seller.  The Seller does not have   any Subsidiaries as of the Effective Date except as set forth on Exhibit C or as have been   disclosed by the Seller to the Agent in writing after the Effective Date.  Exhibit C states   the name of each such Subsidiary as of the Effective Date, place of organization, each   state in which it is qualified as a foreign entity and the percentage ownership of the   capital stock or other indicia of equity of each such Subsidiary by the Seller.          (d)   Authorization and Enforceability.  The Seller has the requisite limited   liability company power and authority to execute, deliver and perform this Agreement,   the Custody Agreement and all other Repurchase Documents to which it is a party or in   which it joins or has joined.  The execution, delivery and performance by the Seller of   this Agreement, the Custody Agreement and all other Repurchase Documents to which it   is a party have each been duly and validly authorized by all necessary limited liability   company action on the part of the Seller (none of which has been modified or rescinded,   and all of which are in full force and effect) and do not and will not (i) conflict with or   violate any Legal Requirement, (ii) conflict with or violate the Organizational Documents   of the Seller, (iii) conflict with or result in a breach of or constitute a default under any   agreement, instrument or indenture binding on the Seller or (iv) require any consent   under any such agreement, instrument or indenture, where the conflict, violation, breach,  default or nonconsent could reasonably be expected to have a material adverse effect on  any of the Central Elements in respect of the Seller, or result in the creation of any Lien  upon any property or assets of the Seller, or result in or permit the acceleration of any  debt of the Seller pursuant to any agreement, instrument or indenture to which the Seller  is a party or by which the Seller or its property may be bound or affected.  This  Agreement, the Custody Agreement and all other Repurchase Documents constitute the  legal, valid, and binding obligations of the Seller enforceable in accordance with their  respective terms, except as limited by bankruptcy, insolvency or other such laws affecting  the enforcement of creditors’ rights generally, and subject to the general principles of  equity.         (e)   Approvals.  Neither the execution and delivery of this Agreement, the  Custody Agreement and all other Repurchase Documents nor the performance of the                                    63                                                               Bodman_16842095_7 

 

                 Seller’s obligations under such Repurchase Documents requires any license, consent,   approval or other action of any state or federal agency or governmental or regulatory   authority other than (i) those that have been obtained or will be obtained by the time   required and that remain in full force and effect, (ii) those for which the Seller’s failure to  obtain them could not reasonably be expected to have a material adverse effect on any of  the Central Elements in respect of the Seller and (iii) the filing of any financing  statements.          (f)   Financial Condition.  The Consolidated balance sheet of the Seller (and,   to the extent applicable, the Seller’s Consolidated Subsidiaries) and the related statements   of income, changes in stockholders’ equity, cash flows and Mortgage Loan production   (“Financial Statements”) for the fiscal year ended on the Statement Date (the “Statement   Date Financial Statements”), heretofore furnished to the Agent and the Buyers, fairly   present the financial condition of the Seller (and the Seller’s Consolidated Subsidiaries)   as of the Statement Date and the results of their operations for the fiscal period ended on   the Statement Date.  On the Statement Date, the Seller did not have either any known   material liabilities, direct or indirect, fixed or contingent, matured or unmatured, other   than the contingent liabilities (if any) set forth on Schedule 15.2(f) and contingent   liability on endorsements of negotiable instruments for deposit or collection in the   ordinary course of business, or any known material liabilities for sales, long-term leases  or unusual forward or long-term commitments, which are not disclosed by the Statement  Date Financial Statements or reserved against in them or that have not been otherwise  disclosed to the Buyers in writing.  Each of the Seller and each of its Subsidiaries is  Solvent, and since the Statement Date, (i) there has been no material adverse change in  any of the Central Elements in respect of the Seller, nor is the Seller aware of any state of  facts which (with or without notice, the lapse of time or both) would or could reasonably  be expected to result in any such material adverse change, and (ii) there have been no  unrealized or anticipated losses from any loans, advances or other commitments of the  Seller that have resulted in a material adverse change in the Central Elements in respect  of the Seller, except for the material adverse changes and losses (if any) that are  summarized in Schedule 15.2(f).          (g)   Litigation.  Except as disclosed on Schedule 15.2(g) or except as disclosed   in the Statement Date Financial Statements or the most recent Financial Statements   furnished to the Agent and the Buyers (whichever is more current), there are no actions,   claims, suits or proceedings pending, or to the knowledge of the Seller, threatened in   writing against the Seller or any of its Subsidiaries in any court, before any other   Governmental Authority or before any arbitrator or in any other dispute resolution forum   that could reasonably be expected to result in a material adverse effect on any of the   Central Elements in respect of the Seller.          (h)   Licensing.  The Seller and any subservicer of its Mortgage Loans are duly   registered as mortgage lenders, bankers or servicers in each state in which Mortgage   Loans have been or are from time to time originated, to the extent such registration is   required by any applicable Legal Requirement, except where the failure to register could   not reasonably be expected to result in a material adverse effect on any of the Central   Elements in respect of the Seller or such subservicer.                                    64                                                               Bodman_16842095_7 

 

                       (i)   Compliance with Applicable Laws.  Neither the Seller nor any of its   Subsidiaries is in violation of any Legal Requirement, or any judgment, award, rule,   regulation, order, decree, writ or injunction of any court, other Governmental Authority   or public regulatory body that could reasonably be expected to have a material adverse   effect on any of the Central Elements in respect of the Seller.          (j)   Regulation U.  The Seller is not engaged principally, or as one of its   important activities, in the business of extending credit for the purpose of purchasing or   carrying Margin Stock, and no part of the proceeds of any Transactions directly or   indirectly made available to or received by the Seller or for its account will be used,   directly or indirectly, for the purpose of purchasing or carrying any Margin Stock or to   extend credit to others for the purpose of purchasing or carrying any Margin Stock or for   the purpose of reducing or retiring any debt that was originally incurred to purchase or   carry any Margin Stock or to extend credit to others for the purpose of purchasing or   carrying any Margin Stock or that would constitute this transaction a “purpose credit”   within the meaning of Regulation U, as now or hereafter in effect.          (k)   Investment Company Act.  The Seller is not required to be registered as an   “investment company” within the meaning of the Investment Company Act of 1940, as   amended.          (l)   Payment of Taxes.  All material tax returns required to be filed by the   Seller and each Subsidiary in any jurisdiction have been filed or extended and all taxes,   assessments, fees and other governmental charges upon the Seller and each Subsidiary or   upon any of its properties, income or franchises shown to be due thereon have been paid   prior to the time that such taxes could give rise to a Lien thereon, unless protested in good   faith by appropriate proceedings and with respect to which reserves in conformity with   GAAP have been established on the books of the Seller or such Subsidiary.  Neither the   Seller nor any Subsidiary has any knowledge of any proposed tax assessment against the   Seller or any Subsidiary.          (m)   Agreements.  Neither the Seller nor any of its Subsidiaries is a party to any  agreement, instrument or indenture or subject to any restriction, in each case materially  and adversely affecting any of the Central Elements in respect of the Seller except as  disclosed in (i) the Statement Date Financial Statements, or (ii) Schedule 15.2(f).  Neither   the Seller nor any Subsidiary is in default in the performance, observance or fulfillment   of any of its obligations, covenants or conditions contained in any agreement, instrument   or indenture that could reasonably be expected to have a material adverse effect on any of   the Central Elements in respect of the Seller.  No holder of the Seller’s or any such   Subsidiary’s debt or other obligations has given written notice of any default that could   reasonably be expected to have a material adverse effect on any of the Central Elements   in respect of the Seller.  No liquidation or dissolution of the Seller is pending or, to the   Seller’s knowledge, threatened and no liquidation or dissolution of any Subsidiary is   pending or threatened that could reasonably be expected to have a material adverse effect   on any of the Central Elements in respect of the Seller.  No receivership, insolvency,   bankruptcy, reorganization or other similar proceedings relative to the Seller or any of its   properties is pending, or to the Seller’s knowledge, threatened.  No receivership,                                    65                                                               Bodman_16842095_7 

 

                 insolvency, bankruptcy, reorganization or other similar proceedings relative to any   Subsidiary of the Seller or any of its properties is pending, or to the Seller’s knowledge,   threatened that could reasonably be expected to have a material adverse effect on any of   the Central Elements in respect of the Seller.          (n)   Title to Properties.  The Seller and each of its Subsidiaries has good, valid,   insurable (in the case of real property) and marketable title to all of its material Properties   and assets (whether real or personal, tangible or intangible) that are reflected on or   referred to in the Statement Date Financial Statements or in the more current Financial   Statements (if any) most recently furnished to the Buyer after the Effective Date, except   for such properties and assets as have been disposed of since the date of such current   Financial Statements either in the ordinary course of business or because they were no   longer used or useful in the conduct of its business, and all such Properties and assets are   free and clear of all Liens except for (i) the lien of current (nondelinquent) real and  personal property taxes and assessments, (ii) covenants, conditions and restrictions, rights  of way, easements and other matters to which like properties are commonly subject that  do not materially interfere with the use of the property as it is currently being used and  (iii) such other Liens, if any, that are permitted pursuant to Section 17.8.         (o)   The Seller’s Address.  The Seller’s chief executive office and principal  place of business are at 7390 South Iola, Englewood, CO 80112, or at such other address  as shall have been set forth in a written notice to the Agent given subsequent to the  Effective Date and at least ten (10) Business Days before such notice’s effective date.          (p)   ERISA.  The Seller does not maintain any ERISA Plans and shall not adopt   or agree to maintain or contribute to an ERISA Plan.  The Seller shall promptly notify the   Agent and each Buyer in writing in the event an ERISA Affiliate adopts an ERISA Plan.    The Seller is not an employer under any Multiemployer Plan or any other Plan subject to   Title IV of ERISA.          (q)   Commissions.  Neither the Seller nor any of its Affiliates have dealt with   any broker, investment banker, agent or other person, except for the Agent and the   Buyers, who may be entitled to any commissions or compensation in connection with the   sale of Purchased Loans pursuant to this Agreement.          (r)   Full Disclosure.  All information previously furnished by the Seller and its   Subsidiaries to the Agent in connection with the Repurchase Documents was and all   information furnished in the future by the Seller and its Subsidiaries to the Agent or the   Buyers will be true and accurate in all material respects or based on reasonable estimates   on the date the information is stated or certified.  To the best knowledge of the Seller,   neither the financial statements referred to in Section 15.2(f), nor any   Request/Confirmation, officer’s certificate or any other report or statement delivered by   the Seller and its Subsidiaries to the Agent in connection with this Agreement, contains   any untrue statement of material fact.          (s)   Corporate Documents and Corporate Existence.  As to the Seller and each   Subsidiary of Seller, (i) it is an organization as described on Schedule 15.2(s) hereto and                                    66                                                               Bodman_16842095_7 

 

         has provided the Agent and the Buyers with complete and correct copies of its articles of        organization, operating agreements, and all other applicable charter and other        organizational documents, and, if applicable, a good standing certificate and (ii) as of the        Effective Date, its correct legal name, business address, type of organization and        jurisdiction of organization, tax identification number and other relevant identification        numbers are set forth on Schedule 15.2(s) hereto.  The Agent and the Buyers        acknowledge that the Seller intends to dissolve and liquidate its wholly-owned        subsidiary, Joliet Mortgage Reinsurance Corporation, and hereby consent to such actions.               (t)   Beneficial Ownership.  As of the Effective Date, to the best knowledge of       the Seller, the information included in the Beneficial Ownership Certification provided       on or prior to the Effective Date to Agent or any Buyer in connection with this        Agreement is true and correct in all respects.           15.3. Special Representations Relating to the Purchased Loans.  The representations  and warranties concerning each Purchased Loan, as set forth on Schedule 15.3 hereto, are  incorporated herein.             15.4. Representations and Warranties Relating to Specific Transactions.  At the time  each Request/Confirmation is provided to the Agent, the Buyers and/or the Custodian, the  following are true with respect to each of the Mortgage Loans listed on the Mortgage Loan  Transmission Files attached to such Request/Confirmation or submitted in connection with such  Request/Confirmation:               (a)   the Basic Papers have been or will be executed and delivered by all        appropriate Persons;               (b)   the Seller is electronically communicating to the Custodian a complete        Mortgage Loan Transmission File, and the information stated for such Mortgage Loan in        such standard Mortgage Loan Transmission File is correct and complete in accordance        with the Record Layout;               (c)   such Mortgage Loan has been, or will be concurrent with funding of the        Purchase Price for such Mortgage Loan, originated, closed, funded and (if applicable)        negotiated and assigned to the Seller;               (d)   for each such Mortgage Loan being offered as a Dry Loan, the Basic        Papers are being concurrently delivered to the Custodian;               (e)   for each Mortgage Loan being offered as a Wet Loan, the complete File       for such Mortgage Loan, including all Basic Papers and all Supplemental Papers, is or       will be in the possession of either that Mortgage Loan’s closer, or the Seller, its Basic       Papers are in the process of being delivered to the Custodian and such Basic Papers will       be delivered to the Custodian on or before seven (7) Business Days after the Purchase       Date specified above and without limitation of the foregoing, the Seller will promptly       deliver (or cause to be delivered) to the Custodian either the original recordation receipts       or the original recorded Mortgage or Mortgage Assignment included in the Purchased       Loans showing the recordation data thereon;                                         67                                                                    Bodman_16842095_7 

 

               (f)   no Default or Event of Default has occurred and is continuing and there        has been no material adverse change in any of the Central Elements in respect of the        Seller since the date of the Seller’s most recent annual audited Financial Statements that        have been delivered to the Agent and the Buyers;              (g)   all items that the Seller is required to furnish to the Buyers, the Agent or        the Custodian in connection with the requested Transaction and otherwise have been        delivered, or will be delivered before the Purchase Date specified in the applicable        Request/Confirmation, in all respects as required by this Agreement and the other        Repurchase Documents.  All documentation described or referred to in the Mortgage        Loan Transmission File submitted to the Agent in connection with the applicable        Request/Confirmation conforms in all respects with all applicable requirements of this        Agreement and the other Repurchase Documents; and               (h)   none of the Purchased Loans (including, but not limited to, the Purchased        Loans identified in the applicable Request/Confirmation) has been sold to any Person        other than the Buyers  (except for Purchased Loans previously sold to the Parent under        the Parent Repurchase Agreement, provided that the Parent Custodian has released all        Liens and other right, title and interest in and to said Purchased Loans in connection with        such Repurchase), is pledged to any Person other than the Agent, for the benefit of itself        and the Buyers, or supports any borrowing or repurchase agreement funding other than        purchases under this Agreement.           15.5. Survival.  All representations and warranties by the Seller shall survive  delivery of the Repurchase Documents and the sales of the Purchased Loans, and any  investigation at any time made by or on behalf of the Buyers or the Agent shall not diminish any  Buyer’s or the Agent’s right to rely on them.   Section 16. Affirmative Covenants.         The Seller agrees that, until all of Seller’s Obligations (other than contingent  reimbursement and indemnification obligations as to which no claim has been asserted) have  been paid or performed in full, all Purchased Loans have been repurchased and the Agent and the  Buyers have no further Commitments or other obligations under this Agreement or the other  Repurchase Documents:           16.1. Office of Foreign Assets Control and USA Patriot Act.               (a)   The Seller will not knowingly directly or indirectly use any of the        proceeds from the sale of the Purchased Loans, or lend, contribute or otherwise make        available any such proceeds to any subsidiary, joint venture partner or other person or        entity, for the purpose of financing the activities of any person or entity that is subject to        sanctions under any program administered by the Office of Foreign Assets Control of the        United States Department of the Treasury, including those implemented by regulations        codified in Subtitle B, Chapter V, of Title 31, Code of Federal Regulations.               (b)   The Seller will not (i) be or become subject at any time to any law,        regulation or list of any government agency (including the U.S. Office of Foreign Asset                                         68                                                                    Bodman_16842095_7 

 

           Control list) that prohibits or limits the Buyers or the Agent from entering into any         Transaction with the Seller or from otherwise conducting business with the Seller, or         (ii) fail to provide documentary and other evidence of the Seller’s identity as may be         requested by the Agent or any Buyer at any time to enable the Agent and the Buyers to         verify the Seller’s identity or to comply with any applicable law or regulation, including         Section 326 of the USA Patriot Act of 2001, 31 U.S.C. Section 5318.            16.2. Financial Statements.  The Seller will deliver to the Agent, and Agent shall  promptly after receipt thereof make available to Buyers by electronic communication (including  email and Internet or intranet websites) pursuant to procedures determined by Agent:               (a)   As soon as available and in any event within thirty (30) days after the end        of each month (including each quarter end month), other than each year end month, and        within forty-five (45) days after the end of each year end month, Financial Statements for        the Seller and its Subsidiaries for the month just ended, all in reasonable detail, and        certified by a Responsible Officer of the Seller that such Financial Statements were        prepared in accordance with GAAP and present fairly in all material respects the Seller’s        and its Consolidated Subsidiaries’ financial condition as of the date thereof and the        results of their operations for the period covered, subject, however, to normal year-end        audit adjustments and the omission of notes and schedules to the Financial Statements.               (b)   As soon as available and in any event within one hundred (120) days after        the close of each of the Seller’s fiscal years, audited Consolidated Financial Statements        for the Seller and its Consolidated Subsidiaries, for such year, and the related balance        sheet as at the end of such year (setting forth in comparative form the corresponding        figures as of the end of and for the preceding fiscal year), all in reasonable detail,        prepared in accordance with GAAP and with all notes, and accompanied by:                     (i)   a report and unqualified opinion of a firm of independent certified              public accountants of recognized standing selected by the Seller and reasonably              acceptable to the Agent (as of the Effective Date, Ernst & Young is acceptable to              the Agent), stating that such accountants have audited such Financial Statements              in accordance with generally accepted auditing standards and that, in their              opinion, such Financial Statements present fairly, in all material respects, the              Consolidated financial condition of the Seller and its Consolidated Subsidiaries,              as of the date thereof and the Consolidated results of its operations and cash flows              for the periods covered thereby in conformity with GAAP; and                     (ii)  a certificate signed by a Responsible Officer of the Seller stating              that said Financial Statements fairly present the Consolidated financial condition              and results of operations (for the Seller and its Consolidated Subsidiaries) as at              the end of, and for, such year.         The Seller also agrees to provide to the Agent and the Buyers such other information        related to such annual reports or concerning the Seller’s finances or operations as the        Agent or any Buyer may from time to time reasonably request.                                           69                                                                     Bodman_16842095_7 

 

                 (c)   Responsible Officer’s Certificate.  Together with each of the monthly and        annual Financial Statements required by Sections 16.2(a) , and (b) above, a certificate of         a Responsible Officer of Seller in the form of Exhibit B, among other things, (i) setting         forth in reasonable detail all calculations necessary to show whether the Seller is in         compliance with the requirements of Sections 16.18 of this Agreement or, if the Seller is         not in compliance, showing the extent of noncompliance and specifying the period of         noncompliance and what actions the Seller proposes to take with respect thereto and         (ii) stating that the terms of this Agreement have been reviewed by such Responsible         Officer or under his or her supervision, and that he or she has made or caused to be made         under his or her supervision, a review in reasonable detail of the transactions and the         condition of the Seller during the accounting period covered by such Financial         Statements and that such review does not disclose the existence during or at the end of         such accounting period and that such Responsible Officer does not have knowledge of         the existence as of the date of the Officer’s Certificate of any Event of Default or Default         or, if any Event of Default or Default existed or exists, specifying the nature and period         of its existence and what action the Seller has taken, is taking and proposes to take with         respect to it.            16.3. Financial Statements Will Be Accurate.  The Seller agrees that all Financial  Statements and reports of auditors furnished to the Agent and the Buyers will be prepared in  accordance with GAAP, applied on a basis consistent with that applied in preparing the  Statement Date Financial Statements as at the date thereof and for the period then ended, subject,  however for Financial Statements other than year-end statements to year-end audit adjustments  and the omission of footnotes and schedules.            16.4. Other Reports.  The Seller will promptly furnish to the Agent from time to time  information regarding the business and affairs of the Seller (and, upon the written request of any  Buyer, such information reasonably requested by such Buyer), including the following and such   other information as the Agent may from time to time reasonably request (each report required   must be signed by a Responsible Officer of the Seller, and the Agent and the Buyers will have no   responsibility to verify or track any of the items referenced or conclusions stated in such reports   or to verify the authority of its signer):                (a)   [Reserved].                (b)   Such reports by the Seller in respect of the Purchased Loans, in such detail         and at such times as the Agent or any Buyer in its reasonable discretion may request at         any time or from time to time.                (c)   Within thirty (30) days after request by the Agent, but no sooner than         ninety (90) days after the beginning of each fiscal year of the Seller, projected financial         information for such fiscal year consisting of income statements and loan production         estimates for each month in such fiscal year and a projected balance sheet of the Seller as         at the end of each month, together with supporting assumptions, all in reasonable detail         and reasonably satisfactory in scope to the Agent.                                            70                                                                     Bodman_16842095_7 

 

                 (d)   Promptly provide Agent and the Buyers with any information and         documentation reasonably requested by the Agent or any Buyer for purposes of         compliance with applicable “know your customer” anti-money laundering rules and         regulations, including under the USA Patriot Act and any the Beneficial Ownership         Regulation.                (e)   As soon as available and in any event within thirty (30) days after the end         of each month, other than each year end month, and within forty-five (45) days after the         end of each year end month, a monthly report detailing compliance with the transaction         limits and transaction sublimits set forth in Section 4.1 and Section 4.2, in form and detail         reasonably satisfactory to Agent.                (f)   Within 15 days after request by the Agent, a copy of each agency audit,         including audits of HUD, any Agency and any other Approved Investors, and copies of        Seller’s responses within 15 days of filing or submission.                (g)   As soon as available and in any event within thirty (30) days after and as         of the end of each calendar quarter, other than each year end month, and within forty-five         (45) days after the end of each year end month, commencing with the quarter ending June         30, 2020, a repurchase, settlement and indemnification report in the form attached as         Exhibit F;                (h)   As soon as available, and in any event within thirty (30) days after and as         of the end of each month, other than each year end month, and within forty-five (45) days         after the end of each year end month, a secondary marketing report (including a monthly         pipeline position report) in form and detail reasonably satisfactory to Agent;                (i)   as soon as available, and in any event within thirty (30) days after and as         of the end of each month, other than each year end month, and within forty-five (45) days         after the end of each year end month, a loan production report in form and detail         reasonably satisfactory to Agent.            16.5. Maintain Existence and Statuses; Conduct of Business.  The Seller agrees to   preserve and maintain its existence in good standing and all of its rights, privileges, licenses and   franchises necessary or desirable in the normal conduct of its business except where the failure to   maintain such rights, privileges, licenses or franchises could not reasonably be expected to have   a material adverse effect on any of the Central Elements in respect of the Seller, and the Seller   will continue in the residential mortgage lending business as its principal and core business.            16.6. Compliance with Applicable Laws.  The Seller and its Subsidiaries will comply  with all applicable Legal Requirements, the breach of which could reasonably be expected to  materially adversely affect any of the Central Elements with respect to the Seller and its  Subsidiaries, taken as a whole, except where contested in good faith.                                           71                                                                     Bodman_16842095_7 

 

                      16.7. Inspection of Properties and Books; Protection of Seller’s Proprietary  Information; Buyers’ Due Diligence of Seller.             (a)   The Seller agrees to permit the Agent and the Buyers, subject to the      provisions of Section 24.6, to perform continuing loan level due diligence reviews with      respect to the Purchased Loans, for purposes of verifying compliance with the      representations, warranties and specifications made in this Agreement or otherwise, and      the Seller agrees that upon three (3) Business Days prior notice to the Seller, the Agent or      their authorized representatives will be permitted timely and reasonable access to      examine, inspect, and make copies and extracts of the related mortgage loan files and any      and all documents, records, agreements, instruments or information relating to such      Purchased Loans in the possession or under the control of the Seller, any Servicer or the      Custodian.  The Seller also shall make available to the Agent a knowledgeable financial      or accounting officer for the purpose of answering questions respecting the mortgage loan      files and the Purchased Loans.  Without limiting the generality of the foregoing, the      Seller acknowledges that the Buyers may purchase Eligible Loans from the Seller based      solely upon the information provided by the Seller to the Agent in the Mortgage Loan      Transmission File and the representations, warranties and covenants contained in this      Agreement, and that the Agent and the Buyers, at their option, have the right at any time      upon three (3) Business Days prior notice to the Seller to conduct a partial or complete      due diligence review on some or all of the Purchased Loans prior to or following their      purchase in a Transaction, including ordering new credit reports and new appraisals on      any property securing any Purchased Loan and otherwise re-generating the information     used to originate such Purchased Loan.  Notwithstanding any provision to the contrary     herein regarding three (3) Business Days prior notice to the Seller, if an Event of Default     shall have occurred and be continuing, then the Agent, upon notice to the Seller, shall     have the right to immediate access and review of the Seller and the loan information     contemplated in this Section 16.7(a), provided that to the extent that the Seller does not      have possession of such loan information, the Seller shall cause the applicable Servicer or      subservicer to provide the Agent and the Buyers with access and review of such loan      information within a reasonable period of time, but not to exceed any prior notification      time provided under the related Servicing Agreement with such Servicer or subservicer.       The Agent may conduct the due diligence review of such Purchased Loans itself or      engage a third party underwriter selected by the Agent to perform such review.  The      Seller agrees to, and to cause any relevant Servicer and its subservicer to, reasonably      cooperate with the Agent and any third party underwriter in connection with such due      diligence review, including providing the Agent and any third party underwriter with      access to any and all documents, records, agreements, instruments or information relating      to such Purchased Loans in the possession, or under the control, of the Seller, such      Servicer and such subservicer.  The Seller agrees to pay all reasonable out-of-pocket     costs and expenses of the Agent in connection with up to two (2) inspections, visits and     reviews under this Section 16.7(a) per calendar year, unless a Default or Event of Default      has occurred and is continuing, in which case all such costs and expenses of the Agent      and any Buyer incurred in the exercise of their rights pursuant to this Section 16.7(a)      shall be paid by the Seller.  Such visits shall be coordinated by the Agent.                                        72                                                                  Bodman_16842095_7 

 

               (b)   The Seller agrees to permit authorized representatives of the Agent and        each Buyer to discuss onsite the business, operations, assets and financial condition of the        Seller and its Subsidiaries with their respective officers, employees and independent        accountants and to examine their books of account and make copies or extracts of them,        all at such reasonable times, and upon three (3) Business Days prior notice (or, if an        Event of Default shall have occurred and be continuing, immediately following notice to        the Seller) as the Agent or any Buyer may request, for any or all of the purposes of        ordinary diligence, performing the Buyers’ duties (and any of the Seller’s duties that the        Seller has not performed) and enforcing the Buyers’ and the Agent’s rights under this        Agreement.  The Agent or the Buyer acting will notify the Seller before contacting the        Seller’s accountants and the Seller may have its representatives in attendance at any        meetings between the officers or other representatives of the Agent or any Buyer and        such accountants held in accordance with this authorization. The Agent and each Buyer        agrees that it will prevent disclosure by itself or its authorized representatives to third        parties of any proprietary information it has received pursuant to this Agreement and will        maintain the confidential nature of such material; provided that this restriction shall not        apply to information  that (i) at the time in question has already entered the public        domain, (ii) is required to be disclosed by any Legal Requirement (including pursuant to       any examination, inspection or investigation by any Governmental Authority having       regulatory jurisdiction over any Buyer or the Agent), (iii) that is furnished by the Agent        or any Buyer to purchasers or prospective purchasers of participations or interests in the        Purchased Loans so long as such purchasers and prospective purchasers have agreed to        be subject to restrictions substantially identical to those contained in this sentence,        (iv) the disclosure of which the Agent and the Buyers deem necessary to market or sell        Purchased Mortgage Loans or to enforce or exercise their rights under any Repurchase        Document as long as any recipients have agreed to be subject to restrictions substantially        similar to those in this sentence, or (v) is disclosed by any Buyer to its attorneys,        employees, agents and auditors during the performance of their respective duties, subject        to the restrictions set forth in this sentence.           16.8. Notice of Suits, Etc..  The Seller will, as soon as reasonably practical and in any  case no later than three (3) Business Days next following the day when the Seller first learns of  it, give written notice to the Agent and the Buyers of:               (a)   any material action, suit or proceeding instituted by or against the Seller or        any of its Subsidiaries in any federal or state court or before any commission, regulatory        body or Governmental Authority, or if any such proceedings are threatened against the        Seller or any of its Subsidiaries, in a writing containing the applicable details;               (b)   the filing, recording or assessment of any material federal, state or local        tax lien against the Seller or any of its Subsidiaries or any assets of any of them;              (c)   the occurrence of any Event of Default;              (d)   the occurrence of any Default;                                          73                                                                    Bodman_16842095_7 

 

               (e)   the termination of, or the occurrence of any event that, with or without        notice or lapse of time or both, would constitute a default under the Custody Agreement        or MBS Custodial Agreement;               (f)   any material adverse finding under any agency audit, including audits of        HUD, any Agency and any other Approved Investors, conducted with respect to the        Seller and/or any of its assets;               (g)   the occurrence of:                     (i)   any event that, with or without notice or lapse of time or both,              would constitute a default under, or permit the acceleration or termination of, any              other agreement, instrument or indenture to which the Seller or any of its              Subsidiaries is a party or to which any of them or any of their properties or assets              may be subject if either (A) the effect of any such default is or if uncured and              unwaived after notice, the lapse of time or both, would be to cause, or to permit              any other party to such agreement, instrument or indenture (or a trustee on behalf              of such a party) to cause, Debt for borrowed money (including, but not limited to,              Debt under a repurchase agreement, reverse repurchase agreement, mortgage              warehouse line of credit, sale/buy-back agreement or like arrangement) of the              Seller or any of its Subsidiaries in excess of $1,000,000 in the aggregate, and/or              other Debt of the Seller or any of its Subsidiaries in excess of $2,000,000 in the              aggregate to become or be declared due before its stated maturity or (B) such              default, if uncured and unwaived after any relevant notice, the lapse of time or              both, could reasonably be expected to result in a material adverse effect on any of              the Central Elements in respect of the Seller;                     (ii)  any other action, event or condition of any nature (excluding              general economic conditions) that, if unremedied after any relevant notice, lapse              of time or both, could reasonably be expected to result in either (A) the Seller’s              being in breach of or out of compliance with any provision of Section 16.18              (Financial Covenants) or (B) a material adverse effect on any of the Central              Elements in respect of the Seller; or                     (iii) any Prohibited Transaction with respect to any Plan, specifying the              nature of the Prohibited Transaction and what action the Seller proposes to take              with respect to it.           16.9. Payment of Taxes, Etc.  The Seller will, and will cause each of its Subsidiaries  to, pay and discharge or cause to be paid and discharged promptly all taxes, assessments and  governmental charges or levies imposed upon it or its Subsidiaries or upon their respective  income, receipts or properties before they become past due, as well as all lawful claims for labor,  materials and supplies or other things that, if unpaid, could reasonably be expected to become (or  result in the placement of) a Lien or charge upon any part of such properties; provided that it and  its affected Subsidiaries shall not be required to pay taxes, assessments or governmental charges  or levies or claims for labor, materials or supplies that are being contested in good faith and by  proper proceedings being reasonably and diligently pursued, execution or enforcement of which                                         74                                                                    Bodman_16842095_7 

 

     has been effectively stayed (by the posting of a bond or other security sufficient to achieve that   result, or by any other fully effective means), and for which reserves determined to be adequate   (in accordance with GAAP in all material respects) have been set aside on its books.            16.10. Insurance; Fidelity Bond.  The Seller will, and will cause each of its  Subsidiaries to:               (a)    maintain liability insurance protecting the Seller and its Subsidiaries        against fire and other hazard insurance on its respective properties from which it conducts        its business, with responsible insurance companies, in such amounts and against such        risks as is customarily carried by similar businesses operating in the same vicinity.         Copies of such policies shall be furnished to the Agent without charge upon the Agent’s        request made from time to time; and               (b)   obtain and maintain at its own expense and keep in full force and effect a        blanket fidelity bond and an errors and omissions insurance policy covering the Seller's        officers and employees and other persons acting on behalf of the Seller.  The amount of        coverage shall be at least equal to the coverage that would be required by Fannie Mae or        Freddie Mac, whichever is greater, with respect to the Seller if the Seller were servicing        and administering the Mortgage Loans for Fannie Mae or Freddie Mac.  In the event that        any such bond or policy ceases to be in effect, the Seller shall obtain a comparable        replacement bond or policy, as the case may be, meeting the requirements of this        Section 16.10(b).  Coverage of the Seller under any policy or bond obtained by an         Affiliate of the Seller and providing the coverage required by this Section 16.10(b) shall         satisfy the requirements of this Section 16.10(b).  Such bond and insurance policies shall         name Agent as an additional insured and loss payee.  Upon the request of the Agent, the         Seller shall cause to be delivered to the  Buyer evidence of such fidelity bond and         insurance policies.            16.11. [Reserved.]            16.12. Subordination of Certain Indebtedness.  The Seller will cause any and all debt   and obligations of the Seller to any Affiliate or any member, manager, stockholder, director or   officer of the Seller or any Affiliate in excess of One Million Dollars ($1,000,000) (excluding (x)   debt for directors’ or officers’ salary, bonuses, directors’ fees or other compensation for service,   (y) any mortgage warehouse loans from or repurchase transactions with Parent permitted   pursuant to Section 17.2(c) and (z) obligations to remit loan proceeds to Parent or its Affiliates   arising out of a sale of homes by Parent or such Affiliate financed by the Seller) to be Qualified   Subordinated Debt by the execution and delivery by such Affiliate or member, manager,   stockholder, director or officer, as applicable, to the Agent of a Subordination Agreement and the   taking of all other steps (if any) required to cause such Debt to be Qualified Subordinated Debt   and deliver to the Agent an executed copy of that Subordination Agreement, certified by the   corporate secretary or assistant secretary of the Seller to be true and complete and in full force   and effect, as to all such present and future debts and obligations of the Seller.            16.13. Certain Debt to Remain Unsecured.  Except for obligations of Seller to Parent   under the Parent Repurchase Agreement with respect to Mortgage Loans (other than Purchased                                          75                                                                     Bodman_16842095_7 

 

   Loans) purchased by Parent from Seller, the Seller will cause any and all obligations of the Seller  to any shareholder, officer or Affiliate of the Seller, whether such debt exists as of the Effective  Date or is incurred in the future, to remain at all times unsecured.           16.14. Promptly Correct Escrow Imbalances.  By no later than seven (7) Business  Days after learning (from any source) of any material imbalance in any escrow account(s)  maintained by the Seller (or any subservicer for it), the Seller will fully and completely correct  and eliminate such imbalance.           16.15. MERS Covenants.  The Seller will:               (a)   be a “Member” (as defined in the MERS Agreements) of MERSCORP;               (b)   maintain the Electronic Tracking Agreement in full force and effect and        timely perform all of its obligations thereunder;               (c)   provide the Agent with copies of any new MERS Agreement or any        amendment, supplement or other modification of any MERS Agreement (other than the        Electronic Tracking Agreement);               (d)   not amend, terminate or revoke, or enter into any agreement that is        inconsistent with or contradicts any provision of the Electronic Tracking Agreement;               (e)   identify to the Agent each Purchased Loan that is registered in the MERS        System, at the earlier of the time it is so registered or the time it is purchased or deemed        purchased hereunder, as so registered;               (f)   at the request of the Agent, take such actions as may be requested by the        Agent to:                     (i)   transfer beneficial ownership of any Purchased Loan to the Agent              on behalf of the Buyers on the MERS System; or                     (ii)  de-register or re-register any Purchased Loan on, or withdraw any              Purchased Loan from, the MERS System;               (g)   provide the Agent with copies of any or all of the following reports with        respect to the Purchased Loans registered on the MERS System at the request of the        Agent:                     (i)   Change Notification Report (VB);                     (ii)  MIN Milestones Report (VA); and                     (iii) such other reports as the Agent may reasonably request to verify              the status of any Purchased Loan on the MERS System;                                          76                                                                    Bodman_16842095_7 

 

               (h)   notify the Agent of any withdrawal or deemed withdrawal of the Seller’s        membership in the MERS System or any deregistration of any Purchased Loan        previously registered on the MERS System; and               (i)   obtain the prior written consent of the Agent before entering into an        electronic tracking agreement (other than the Electronic Tracking Agreement) with any        other Person.           16.16. Special Affirmative Covenants Concerning Purchased Loans.               (a)   Until both (i) all of the Purchased Loans shall have been repurchased by        the Seller and (ii) the Buyers have no obligation to purchase any additional Mortgage        Loans hereunder or provide any other financial accommodations to the Seller under or        otherwise in respect of this Agreement, the Seller warrants and will defend the right, title        and interest of the Buyers and the Agent in and to the Purchased Loans against the claims        and demands of all persons whomsoever.               (b)   The Seller shall maintain, at its principal office or in a regional office        reasonably approved by the Agent, or in the office of a computer service bureau engaged        by the Seller and reasonably approved by the Agent, and upon request shall make        available to the Agent and the Custodian the originals of all Loan Papers and related        instruments, and all files, surveys, certificates, correspondence, appraisals, computer        programs, tapes, discs, cards, accounting records and other information and data relating        to the Purchased Loans that are held by or under the direction or control of the Seller or        any of its Affiliates and that have not already been provided to the Agent or the        Custodian.               (c)   The Seller shall ensure that, if a Mortgage Loan that is to be funded and       sold to the Buyers as a Wet Loan does not close on the proposed Purchase Date, all       amounts remitted by the Agent for the payment of the Purchase Price shall be returned       promptly within two (2) Business Days to the Agent for the benefit of the Buyers and if        such funds are not so returned, the Seller shall pay promptly within two (2) Business        Days a like amount to the Agent for the benefit of the Buyers plus any accrued Price        Differential.  The Seller acknowledges that until such time as the Mortgage Loan is        deemed to have been sold to the Buyers, the Seller has no interest in, nor any claim to        such amounts and shall, if it receives such amounts, hold such amounts in trust for the        Buyers and shall promptly remit such funds to the Agent for disbursement to the Buyers.           16.17. Coordination with Other Lenders/Repo Purchasers and Their Custodians.  The  Seller will provide to the Agent the current name, address and contact information concerning  each of the Seller’s other mortgage warehouse credit and repurchase facilities, will update such  information provided to the Agent as changes to the facilities or such name, address or contact  information occurs, and will cooperate and assist the Agent in exchanging information with such  others (and their document custodians or trustees) to prevent conflicting claims to and interests in  Purchased Loans between or among repurchase facilities counterparties or lenders, and promptly  correct such conflicting claims as may arise from time to time.  The Seller will execute and  deliver to the Agent any intercreditor agreement the Agent may require pursuant to Section 17.8.                                         77                                                                    Bodman_16842095_7 

 

                   16.18. Financial Covenants.  Seller shall:           (a)   Adjusted Tangible Net Worth.  Maintain at all times, Seller’s Adjusted   Tangible Net Worth in an amount no less than $70,000,000.          (b)   Adjusted Tangible Net Worth Ratio.  Maintain at all times, the ratio of (i)   Total Liabilities plus, to the extent not otherwise included in Total Liabilities, off balance  sheet liabilities (including but not limited to recourse servicing, recourse sale and other  recourse obligations, guaranty, indemnity and mortgage loan repurchase obligations) to  (ii) the Adjusted Tangible Net Worth of not less than 8.0 to 1.0.            (c)   Liquidity.  Maintain at all times, Liquidity of not less than $40,000,000.          (d)   Net Income. Maintain as of the last day of each month, commencing with   the month ending June 30, 2020, the Seller’s Net Income for the 12 month period then   ending, of not less than $1.          (e)   Seller Cure Right. If the Seller fails to comply with Section 16.18(d) of   this Agreement for any calendar month, then, until the expiration of the period (the “Cure   Period”) commencing on the last day of any month and ending on the date occurring on   the thirtieth (30th) day (the “Cure Date”) subsequent to the earlier of (x) the date that the   compliance certificate for such calendar month is required to be delivered pursuant to   Section 16.2(c) hereof and (y) the date that such compliance certificate for such calendar   month is actually delivered to the Agent, it shall not be deemed to be a Default or Event  of Default hereunder if the Seller provides notice (the “Cure Notice”) to the Agent on a  date (the “Cure Notification Date”) occurring within three (3) Business Days of the  earlier of the dates described in clauses (x) and (y) above (the “Cure Notification Period”)  that it intends to exercise the cure right under this Section 16.18(e) (the “Cure Right) and   the Seller receives from Parent an amount not less than the difference between the actual   amount of the Seller’s Net Income for such month and the amount of Net Income the   Seller was required to have for such month under Section 16.18(d), plus $1.00 (the   “Contribution Amount”) on or prior to the Cure Date; provided that the Seller may   exercise the Cure Right only one (1) time during the then-current term of this Agreement.    For purposes of any month as to which the Seller exercised a cure right under this Section   16.18(e), the Contribution Amount shall be reflected in the determination of the Seller’s   Net Income for such month.  Notwithstanding anything in this Agreement to the contrary,   any noncompliance with Section 16.18(d) of this Agreement shall not constitute a Default   or an Event of Default until the earlier of (A) the day after the Cure Notification Date, if   no Cure Notification has been delivered within the Cure Notification Period, and (B) the   Cure Date, if the Contribution Amount has not been applied on or prior to the Cure Date   as described above; provided further that, during the Cure Notification Period, and during   the Cure Period if a Cure Notice has been delivered within the Cure Notification Period,   the Seller shall not be permitted to request any Transactions.                                     78                                                               Bodman_16842095_7 

 

     Section 17. Negative Covenants.          The Seller agrees that, until all of Seller’s Obligations (other than contingent  reimbursement or indemnification obligations as to which no claim has been asserted) have been  paid or performed in full, all Purchased Loans have been repurchased and the Agent and the  Buyers have no further Commitments or other obligations under this Agreement or the other  Repurchase Documents, the Seller shall not, and shall not permit any Subsidiary to, either  directly or indirectly, do any of the following, without the prior written consent of the Required  Buyers:            17.1. No Merger.  Merge or consolidate with or into any Person.             17.2. Limitation on Debt and Contingent Indebtedness.  At no time shall the Seller or   any Subsidiary incur, create, contract, assume, have outstanding, guarantee or otherwise be or   become, directly or indirectly, liable in respect of any Debt or Contingent Indebtedness except:                (a)   the Obligations;               (b)   trade debt (including, without limitation, trade debt for services provided        by an Affiliate), equipment leases, loans for the purchase of equipment used in the         ordinary course of the Seller’s business and other accounts payable and accruals arising         in the ordinary course of the Seller’s business and indebtedness for taxes and assessments         not yet due and payable owed in the ordinary course of business;                 (c)   Debt under the Parent Repurchase Agreement;                (d)   Debt under mortgage warehousing facilities, mortgage repurchase         facilities or off-balance sheet indebtedness under other financing arrangements, other         than under the Parent Repurchase Agreement or this Agreement, in an aggregate amount         at any one time not to exceed One Hundred Fifty Million Dollars ($150,000,000);                (e)   liabilities to its Affiliates (including without limitation obligations to remit         loan proceeds to the Parent or its Affiliates arising out of a sale of homes by Parent or         such Affiliate financed by the Seller) incurred in the ordinary course of business as         currently conducted;                (f)   Debt in respect of any exchange traded or over the counter derivative         transaction or any Hedge Agreement entered into in the ordinary course of business and         not for speculative purposes; and                (g)   contingent repurchase obligations arising out of loan sale representations         and warranties.            17.3. Business.  The Seller shall not, directly or indirectly, engage in any businesses   that differ materially from those currently engaged in by the Seller or any other businesses   customarily engaged in by other Persons in the mortgage banking business.                                           79                                                                     Bodman_16842095_7 

 

             17.4. Liquidations, Dispositions of Substantial Assets.  Except as expressly provided   below in this Section 17.4, neither the Seller nor any Subsidiary (other than Joliet Mortgage   Reinsurance Corporation) shall dissolve or liquidate or sell, transfer, lease or otherwise dispose   of any material portion of its property or assets or business.  Except as provided herein for the   Purchased Loans, the Seller and the Subsidiaries may sell other Mortgage Loans and the right to   service such other Mortgage Loans in the ordinary course of their business pursuant to other   repurchase facilities or mortgage warehousing facilities allowed hereunder, any Subsidiary may   sell its property, assets or business to the Seller or another Subsidiary, and any Subsidiary may   liquidate or dissolve if at the time thereof and immediately thereafter, the Seller and the   Subsidiaries are in compliance with all covenants set forth in the Repurchase Documents and no   Default or Event of Default shall have occurred and be continuing.            17.5. Loans, Advances, and Investments.  Neither the Seller nor any Subsidiary shall   make any loan (other than Mortgage Loans), advance, or capital contribution to, or investment in   (including any investment in any Subsidiary, joint venture or partnership), or purchase or   otherwise acquire any of the capital stock, securities, ownership interests, or evidences of   indebtedness of, any Person (collectively, “Investment”), or otherwise acquire any interest in, or  control of, another Person, except for the following:               (a)   Cash Equivalents;               (b)   Any acquisition of securities or evidences of indebtedness of others when        acquired by the Seller in settlement of accounts receivable or other debts arising in the        ordinary course of its business, so long as the aggregate amount of any such securities or        evidences of indebtedness is not material to the business or condition (financial or        otherwise) of the Seller;               (c)   Mortgage Loans acquired in the ordinary course of the Seller’s business;                (d)   Investment in any existing Subsidiary; provided that at the time any such        investment is made and immediately thereafter, the Seller and the Subsidiaries are in        compliance with all covenants set forth in the Repurchase Documents and no Default or        Event of Default shall have occurred and be continuing;               (e)   Investments in Affiliates incurred in the ordinary course of business as        currently conducted;                (f)   Investments in Subsidiaries acquired by Parent or the Seller as a result of        the Parent’s merger with Centex Corporation, provided that at the time any such        investment is made and immediately thereafter, the Seller and such Subsidiaries are in        compliance with all covenants set forth in the Repurchase Documents and no Default or        Event of Default exists or would result therefrom; and               (g)   Investments arising in connection with the Hedge Agreements entered into        in the ordinary course of business and not for speculative purposes.             17.6. Use of Proceeds.  The Seller shall not, directly or indirectly, use any of the  proceeds of the Transactions for the purpose, whether immediate, incidental or ultimate, of                                          80                                                                     Bodman_16842095_7 

 

     buying any “margin stock” or of maintaining, reducing or retiring any Debt or Contingent   Indebtedness originally incurred to purchase a stock that is currently any “margin stock”, or for   any other purpose that might constitute this transaction a “purpose credit”, in each case within   the meaning of Regulation U or otherwise take or permit to be taken any action that would   involve a violation of Regulation U, Regulation T or Regulation X.            17.7. Transactions with Affiliates.  The Seller shall not enter into any transactions   including, without limitation, any purchase, sale, lease or exchange of property or the rendering   of any service, with any Affiliate unless such transactions are otherwise permitted under this   Agreement (including, without limitation, the transactions permitted under Section 17.2 or   Section 17.5) and are in the ordinary course of the Seller’s business.            17.8. Liens.  The Seller shall not grant, create, incur, assume, permit or suffer to exist  any Lien upon any of its Mortgage Loans or any other property related thereto, including but not  limited to the related Mortgage Notes and the Mortgages securing such Mortgage Notes and the  proceeds of such Mortgage Notes, including without limitation, any of the Collateral under  Section 10, other than (a) Liens granted to the Agent for the benefit of the Buyers under this   Agreement and (b) except with respect to any Collateral, Liens under warehouse or repurchase   facilities permitted under Section 17.2(c) or Section 17.2(d).            17.9. ERISA Plans.  Neither the Seller nor any Subsidiary shall adopt or agree to   maintain or contribute to an ERISA Plan.  The Seller shall promptly notify the Agent and each   Buyer in writing in the event an ERISA Affiliate adopts an ERISA Plan.            17.10. Change of Principal Office.  The Seller shall not change its jurisdiction of   organization.  The Seller shall not change its legal name or move its principal office, executive   office or principal place of business from any address set forth in this Agreement, without prior   written notice to the Agent and each Buyer.            17.11. Distributions.  The Seller shall make no payment of dividends or distributions   to its shareholders if either before or after giving effect thereto a Default or an Event of Default   exists or shall be caused thereby.            17.12. Limitations on Payments of Certain Debt.  Make any prepayment, repurchase,   redemption, defeasance or any other payment in respect of any Debt of the Seller owing to any   members and managers of the Seller and all Affiliates of the Seller, including Parent (except with   respect to (i) any mortgage warehouse loans from or repurchase transactions with Parent   permitted pursuant to Section 17.2(c) and (ii) obligations to remit loan proceeds to Parent or its   Affiliates arising out of a sale of homes by Parent or such Affiliate financed by the Seller), to   whom or which the Seller is indebted as of the date of this Agreement in excess of One Million   Dollars ($1,000,000), either for borrowed money or for any other obligation, excluding salary,   bonus or other compensation obligations, if, at the time of such prepayment, repurchase,   redemption, defeasance or any other payment a Default or Event of Default exists or would result  from such payment, except to the extent permitted under the terms of any applicable  Subordination Agreement, or, if no Subordination Agreement exists, if permitted by the   Required Buyers.                                            81                                                                     Bodman_16842095_7 

 

             17.13. No Changes in Accounting Practices or Fiscal Year.  The Seller shall not make  any significant change in accounting treatment or reporting practices, except as required or  permitted by GAAP, or change its fiscal year.   Section 18. Events of Default; Event of Termination.            18.1. Events of Default.  The following events shall constitute events of default (each  an “Event of Default”) hereunder:               (a)   The Seller shall default in the payment of (i) the Repurchase Price for any        Purchased Loans on the applicable Repurchase Date, (ii) any Price Differential, Facility        Fees or Agent’s Fees when due and fail to cure such default within one (1) Business Day,        (iii) any amount required to be paid or transferred or paid to eliminate any Margin Deficit        within the time period specified in Section 6.2 or (iv) any other Obligation, when the         same shall become due and payable, whether at the due date thereof, or by acceleration or         otherwise, and the Seller fails to pay any such other Obligation within three (3) Business         Days of the due date therefor.                (b)   An Event of Insolvency occurs with respect to (i) the Parent, (ii) the Seller         or (iii) a Subsidiary, but only if the Event of Insolvency as to such Subsidiary causes a         material adverse effect on the Central Elements of the Seller.                (c)   Any representation or warranty made by the Seller under any Repurchase         Document shall have been incorrect or untrue in any material respect when made or         repeated or deemed to have been made or repeated, provided that, notwithstanding the         foregoing, solely with respect to a breach of the representations or warranties in Section         15.3 hereunder which was not willful or fraudulent, such breach shall not constitute a         Default or Event of Default hereunder if such breach does not result in a Margin Deficit         under Section 6 hereof, or if such breach does result in a Margin Deficit under Section 6         hereof, Seller performs its obligations under Section 6 hereof with respect to the resulting         Margin Call in accordance with the provisions thereof.                (d)   Any covenant contained in Sections 16.1, 16.2, 16.3, 16.4, 16.8, 16.9,         16.11, 16.14, 16.15, 16.16, 16.18 or 17 (except for the covenants contained in Sections         17.10 and 17.13) shall have been breached and, solely in the case of breach of the         covenant contained in Section 16.18(d), expiration of the Cure Right under Section         16.18(e) to the extent applicable under the terms thereof without cure by Seller.                (e)   Any covenant contained in Sections 16, 17.10 or 17.13 (except for the         covenants contained in Sections 16.1, 16.2, 16.3, 16.4, 16.8, 16.9, 16.11, 16.14, 16.15,         16.16, and 16.18) shall have been breached or any other covenant or agreement contained         in any Repurchase Document is breached, and in each case, such breach is not cured         within thirty (30) calendar days of the earlier of the Seller’s knowledge of such breach or         the Seller’s receipt of notice of such breach from any source.                (f)   Failure of the Seller or any of its Subsidiaries to pay any other Debt when         due, or any default in the payment when due of any principal or interest on any other         Debt or in the payment when due of any contingent obligation (other than nonrecourse                                          82                                                                     Bodman_16842095_7 

 

                MBS Debt of any Affiliate formed for the purpose of issuing such Debt), or any breach or  default with respect to any other material term of any other debt or of any promissory  note, bond, loan agreement, reimbursement agreement, mortgage, indenture, repurchase  agreement or financing agreement or other agreement relating thereto, if the effect of any  such failure, default, breach or event referred to in this Section 18.1(f) is to cause, or to  permit, with or without the giving of notice or lapse of time or both, the holder or holders  of such obligation (or a trustee on behalf of such holder or holders) to cause, (i) Debt for  borrowed money (including, but not limited to, Debt under a repurchase agreement,  reverse repurchase agreement, mortgage warehouse line of credit, sale/buy-back  agreement or like arrangement) of the Seller or any of its Subsidiaries in the aggregate  amount of One Million Dollars ($1,000,000) or more to become or be declared due  before its stated maturity or (ii) any other Debt of the Seller or any of its Subsidiaries in  the aggregate amount of Two Million Dollars ($2,000,000) or more to become or be  declared due before its stated maturity.         (g)   A Change of Control shall occur.         (h)   A material adverse change shall occur in any of the Central Elements  relative to the Seller.         (i)   The Seller shall repudiate or purport to disavow its obligations under any  of the Repurchase Documents or shall contest their validity or enforceability.         (j)   This Agreement shall cease to be in full force and effect or its  enforceability is disputed or challenged by the Seller.         (k)   The Seller shall take or omit to take any action (i) that would result in the  suspension or loss of any of its statuses, once achieved or any of such statuses of any of  its subservicers, if any, of any Ginnie Mae, Fannie Mae or Freddie Mac Mortgage Loans  pools for which the Seller is Servicer as an FHA- and VA-approved lender and  mortgagee and a Ginnie Mae-, Fannie Mae- and Freddie Mac-approved issuer and  servicer, or (ii) after which the Seller or any such relevant subservicer would no longer be  in good standing as such, or (iii) after which the Seller or any such relevant subservicer  would no longer currently satisfy all applicable Ginnie Mae, Fannie Mae and Freddie  Mac net worth requirements, if both (A) all of the material effects of such act or omission  shall have not been cured by the Seller or waived by the relevant Person (Ginnie Mae,  Fannie Mae or Freddie Mac) before termination of such status and (B) it could reasonably  be expected to have a material adverse effect on any of the Central Elements in respect of  the Seller.         (l)   Any money judgment, writ or warrant of attachment, or similar process  involving in any case an amount in excess of One Million Dollars ($1,000,000) (in excess  of relevant insurance coverage reasonably satisfactory to the Agent in its discretion) shall  be entered or filed against the Seller or any of its Subsidiaries or any of their respective  assets and shall remain undischarged, unvacated, unbonded or unstayed for a period of  thirty (30) days or in any event later than five (5) days before the date of any proposed  sale thereunder (unless, in respect of any such case, the judgment debtor or the subject of                                   83                                                              Bodman_16842095_7 

 

           the writ or warrant of attachment or similar process is one of the Seller’s Subsidiaries or         such Subsidiary’s property, and such order, case commencement, consent, assignment,         inability or failure or admission could not reasonably be expected to have a material         adverse effect on any of the Central Elements in respect of the Seller or any of its         Subsidiaries).                (m)   The Seller shall have failed to comply in any material respect with its         obligations under the Custody Agreement or MBS Custodial Agreement; provided, that         in the case of any such failure affecting particular Purchased Loans, such failure shall not         constitute an Event of Default if, after determining the Purchase Value of the Purchased         Loans without taking into account the Purchased Loans with respect to which the failure         occurred, no other Event of Default shall have occurred and be continuing.               (n)   The Seller, as Servicer, shall fail to service the Purchased Loans in        conformance in all material respects with Accepted Servicing Practices.                 (o)   Any audited financial statement of the Parent or the Seller is issued subject        to any “going concern” or like qualification or exception.            18.2. Transaction Termination.  If an Event of Default shall have occurred and be  continuing, then, at the option of the Agent (which option shall be deemed to have been  exercised, even if no notice has been given, upon the occurrence of an Event of Default under  Section 18.1(b)), the Agent may, or at the direction of the Required Buyers shall, declare the  Repurchase Date for any or all Transactions hereunder to be deemed immediately to occur.            18.3. Termination by the Agent.  If the Agent has exercised or is deemed to have  exercised the option to terminate any Transactions pursuant to Section 18.2, (a) the Seller’s   obligations hereunder to repurchase all Purchased Loans in such Transactions shall thereupon   become immediately due and payable, (b) to the extent permitted by applicable law, the   Repurchase Price with respect to each such Transaction shall be increased by the aggregate   amount obtained by daily multiplication of (i) the greater of the Pricing Rate for such   Transaction and the Default Pricing Rate by (ii) the Purchase Price for such Transaction as of the   Repurchase Date as declared by Agent pursuant to Section 18.2 (decreased as of any day by   (A) any amounts retained by the Buyers with respect to such Purchase Price pursuant to   clause (c) of this Section 18.3, (B) any proceeds from the sale of Purchased Loans pursuant to   clause (a) of Section 18.4, and (C) any amounts credited to the account of the Seller pursuant to   clause (b) of Section 18.4) on a three hundred sixty (360) day per year basis for the actual   number of days during the period from and including the date of the Event of Default giving rise   to such option to but excluding the date of payment of the Repurchase Price as so increased,   (c) all Income paid after such exercise or deemed exercise shall be payable to and retained by the   Agent and applied to the aggregate unpaid Repurchase Prices owed by the Seller and (d) the   Seller shall immediately deliver or cause the Custodian to deliver to the Agent any documents   relating to Purchased Loans subject to such Transactions then in the Custodian’s, the Seller’s, its   Servicer’s or its subservicer’s possession.            18.4. Remedies.  Upon the occurrence and during the continuance of an Event of   Default, the Agent, without prior notice to the Seller, may (and, at the direction of the Required                                          84                                                                     Bodman_16842095_7 

 

     Buyers, shall) (a) immediately sell, in a recognized market at such price or prices as the Agent   may deem satisfactory, any or all Purchased Loans subject to such Transactions on a servicing   released or servicing retained basis and apply the proceeds thereof to the aggregate unpaid   Repurchase Prices and any other amounts owing by the Seller hereunder, (b)  in lieu of selling all   or a portion of such Purchased Loans, give the Seller credit for such Purchased Loans in an   amount equal to the Market Value therefor on such date against the aggregate unpaid Repurchase   Prices and any other amounts owing by the Seller hereunder, (c) terminate and replace the Seller   as Servicer (or any other Servicer or Subservicer) at the cost and expense of the Seller, (d)   exercise its rights under Section 8 regarding the Income Account and Escrow Account, (e) by   notice to the Seller, declare the Termination Date to have occurred, except that in the case of any   event described in Section 18.1(b), the Termination Date shall be deemed to have occurred   automatically upon the occurrence of such event, and (f) deliver a “Notice of Default” (as   defined in the Electronic Tracking Agreement) to MERS and the Electronic Agent and exercise   any rights as a result thereof.  The proceeds of any disposition in clause (a) or (b) above shall be   applied first to the reasonable out-of-pocket costs and expenses incurred by the Agent to the   extent reimbursable by the Seller hereunder; second to the reasonable out-of-pocket costs and   expenses incurred by the Buyers in connection with or as a result of an Event of Default   (including legal fees, consulting fees, accounting fees, file transfer fees, inventory fees and costs   and expenses incurred in respect of a transfer of the servicing of the Purchased Loans and costs   and expenses of disposition of such Purchased Loans); third to the aggregate Price Differential   owed hereunder (after taking into account any adjustments to the Price Differential made in   accordance with Section 5.4); fourth to the remaining aggregate Repurchase Prices owed   hereunder; fifth to any other accrued and unpaid Obligations (other than in respect of any Hedge   Agreements or Products of the Buyers or Affiliates of the Buyers) of the Seller hereunder and   under the other Repurchase Documents (after taking into account any waiver or reduction in any   fees or other amount owing by Seller made in accordance with Section 36); sixth to any Servicer   or Subservicer (other than the Seller) for payment of any servicing fees due and payable as of   such date; seventh to the net obligations of the Seller under any Hedge Agreements related to the   Purchased Loans; eighth to the obligations of the Seller under any Products; and ninth any   remaining proceeds to the Seller.              18.5. Liability for Expenses and Damages.  The Seller shall be liable to the Buyers   for (a) the amount of all reasonable out-of-pocket legal or other expenses incurred by the Buyers   in connection with or as a result of an Event of Default, including such legal and other expenses   of in-house or outside counsel, (b) damages in an amount equal to the reasonable out-of-pocket  cost (including all fees, expenses and commissions) of entering into replacement transactions and  entering into or terminating hedge transactions in connection with or as a result of an Event of  Default and (c) any other reasonable loss, damage, out-of-pocket cost or expense directly arising  or resulting from the occurrence of an Event of Default in respect of a defaulting party.            18.6. Liability for Interest.  To the extent permitted by applicable law, the Seller  shall be liable to the Buyers for interest on any amounts owing by the Seller hereunder, from the  date the Seller becomes liable for such amounts hereunder until such amounts are (a) paid in full  by the Seller or (b) satisfied in full by the exercise of the Buyers’ rights hereunder.  Interest on  any sum payable by the Seller under this Section 18.6 shall be at a rate equal to the greater of the   Pricing Rate for the relevant Transaction or the Prime Referenced Rate.                                          85                                                                     Bodman_16842095_7 

 

           18.7. Other Rights.  In addition to its rights hereunder, the Buyers shall have any  rights otherwise available to them under any other agreement or applicable law.             18.8. Seller’s Repurchase Rights.  For avoidance of doubt, subject to the terms and  conditions of this Agreement, the Seller may repurchase Purchased Loans, on a servicing  released basis, and resell such Purchased Loans; provided that upon the occurrence and during  the continuance of an Event of Default, the Seller may repurchase Purchased Loans by payment  of the Repurchase Price therefor only upon approval of the Agent in its discretion exercised in  accordance with the provisions of Section 22.           18.9. Sale of Purchased Loans.  The parties acknowledge and agree that (a) the  Purchased Loans subject to any Transaction hereunder are instruments traded in a recognized  market, (b) in the absence of a generally recognized source for prices or bid or offer quotations  for any Purchased Loans, the Agent may establish the source therefor, (c) all prices, bids and  offers shall be determined together with accrued Income (except to the extent contrary to market  practice with respect to the relevant Purchased Loans) and (d) in soliciting price, bid and offer  quotations for any Purchased Loan, it is reasonable for the Agent to use only the information  provided by the Seller pursuant to Section 16.4(d).  The parties further recognize that it may not  be possible to purchase or sell all of the Purchased Loans on a particular Business Day, or in a  transaction with the same purchaser, or in the same manner because the market for such  Purchased Loans may not be liquid at such time.  In view of the nature of the Purchased Loans,  the parties agree that liquidation of a Transaction or the underlying Purchased Loans does not  require a public purchase or sale and that a good faith private purchase or sale shall be deemed to  have been made in a commercially reasonable manner.  Accordingly, the Agent may elect the  time and manner of liquidating any Purchased Loan and nothing contained herein shall obligate  the Agent to liquidate any Purchased Loan on the occurrence of an Event of Default or to  liquidate all Purchased Loans in the same manner or on the same Business Day and no such  exercise of any right or remedy shall constitute a waiver of any other right or remedy of the  Agent or the Buyers.           18.10. Setoff.  Each of the Agent and any Buyer may set off against the Obligations  any funds or debts owing to the Seller by the Agent or such Buyer, as applicable, including, but  not limited to, any funds in any deposit account, savings certificate or other instrument now or  hereafter maintained by, and for the sole benefit of, the Seller with the Agent or such Buyer, or  any of the Agent’s or such Buyer’s Affiliates.  The Seller hereby confirms the Agent’s and each  Buyer’s right of lien and setoff and nothing in this Agreement shall be deemed to constitute any  waiver or prohibition thereof.  Notwithstanding the foregoing, in the event that a Defaulting  Buyer shall exercise any such right of setoff, (a) all amounts so set off shall be paid over  immediately to the Agent for further application in accordance with the provisions of Section  3.10 and, pending such payment, shall be segregated by such Defaulting Buyer from its other  funds and deemed held in trust for the benefit of the Agent, the Swing Line Buyer and the other  Buyers, and (b) such Defaulting Buyer shall provide promptly to the Agent a statement  describing in reasonable detail the obligations owing to such Defaulting Buyer as to which it  exercised such right of setoff.                                           86                                                                    Bodman_16842095_7 

 

     Section 19. Servicing of the Purchased Loans.            19.1. Servicing Released Basis.  Consistent with the Buyers’ purchase of the   Purchased Loans on a servicing-released basis, the Seller shall have no ownership right   whatsoever as to any of the Purchased Loans or the servicing rights related thereto, unless and   until such Purchased Loans are repurchased by the Seller.  Rather, the Seller shall have only   servicing responsibilities with respect to the Purchased Loans that are subject to termination in   accordance with Section 19.7.  The Seller and the Buyers hereby acknowledge and agree that the   provisions contained in this Section 19 are intended to be for the benefit of the Buyers and are an   essential part of this Agreement, and that the nature and purpose of the purchase and sale  obligations and the servicing obligations hereunder are interrelated.  The Seller acknowledges  that if an Event of Default has occurred and is continuing, the Agent for the benefit of the Buyers  may, upon written notice to the Seller, without payment of any termination fee or other amount  to the Seller, sell any or all of the Purchased Loans on a servicing released basis at the cost and  expense of the Seller.            19.2. Servicing and Subservicing.  The Seller hereby agrees, for the benefit of the   Buyers, to service or contract with Subservicers to service the Purchased Loans in accordance   with this Agreement and  Accepted Servicing Practices.  The Seller’s fees for its duties as   Servicer, until terminated under Section 19.7, shall be twenty-five (25) basis points per annum   on the unpaid principal balance of each Purchased Loan, payable from Income in accordance   with the provisions of Section 8.2.  The Servicer shall, and shall cause each Subservicer to,   (a) comply with all applicable Federal, State and local laws and regulations in all material   respects, (b) maintain all state and federal licenses necessary for it to perform its servicing   responsibilities hereunder and (c) not impair the rights of the Buyers in any Purchased Loans or   any payment thereunder.  The Agent may terminate the servicing of any Purchased Loan with the   then existing Servicer in accordance with Section 19.7.  The Seller shall not be entitled to any   servicing fee or other compensation in connection with its performance of the servicing   responsibilities with respect to the Purchased Loans except to the extent that the Seller is   Servicer.  Nothing in this Section 19.2 shall be deemed to impair the rights of any Subservicer to   fees and other compensation to which it is entitled under the applicable Servicing Agreement.            19.3. Escrow Payments.  The Seller shall cause Servicer and any Subservicers to   hold or cause to be held all escrow payments collected by the Seller with respect to any   Purchased Loans in trust accounts and shall apply the same for the purposes for which such   funds were collected.            19.4. Escrow and Income after Event of Default.  After the occurrence and during   the continuance of an Event of Default, (a) all funds received on or in connection with a   Purchased Loan shall be received and held by the Seller, Servicer and each Subservicer in trust   for the benefit of the Agent on behalf of the Buyers as owner of the Purchased Loans, and (b)   neither the Seller nor Servicer shall be deemed to have any rights or ownership interest in such   funds prior to their being remitted to the Agent on behalf of the Buyers.            19.5. Servicing Records.  The Seller agrees that the Agent, on behalf of the Buyers,   is the owner of all servicing records, including but not limited to any and all servicing   agreements, files, documents, records, data bases, computer tapes, copies of computer tapes,                                          87                                                                     Bodman_16842095_7 

 

   proof of insurance or guaranty coverage, insurance or guaranty policies, appraisals, other closing  documentation, payment history records, and any other records relating to or evidencing the  servicing of Purchased Loans (the “Servicing Records”).  The Servicing Records are and shall be  held in trust by the Seller, Servicer and each Subservicer for the benefit of the Agent as the  owner thereof on behalf of the Buyers.  Upon notice from the Agent after the occurrence and  during the continuance of an Event of Default, the Seller will cause Servicer and each  Subservicer to (a) designate the Buyers as the owner of each Purchased Loan in its collateral  tracking system, (b) segregate such Servicing Records from any and all servicing agreements,  files, documents, records, data bases, computer tapes, copies of computer tapes, proof of  insurance coverage, insurance policies, appraisals, other closing documentation, payment history  records, and any other records relating to or evidencing the servicing of assets that are not  Purchased Loans, (c) safeguard such Servicing Records and (d) deliver them promptly to the  Agent or its designee (including the Custodian) at the Agent’s request.             19.6. Subservicer Instruction Letter.  The Seller shall, prior to the initial Purchase  Date of Purchased Loans serviced by any Subservicer, provide to the Buyers a Subservicer  Instruction Letter addressed to and agreed to by such Subservicer of the related Purchased Loans.           19.7. Termination of Servicing.  At any time during the existence of a Default or an  Event of Default in the Agent’s sole discretion, the Agent may, and at the direction of the  Required Buyers, shall (a) terminate the Seller’s rights as Servicer, and any Subservicer’s rights,  if any, and obligations with respect to servicing of the Purchased Loans without payment of any  penalty or termination fee (i) immediately with respect to the Seller and (ii) with respect to any  Servicer (other than the Seller) or Subservicer, as promptly as possible subject to the terms and  conditions of the applicable Servicing Agreement and Subservicer Instruction Letter; provided  that any such termination shall be deemed to have occurred automatically upon the occurrence of  an Event of Default set forth in Section 18.1(b), (b) require the Seller to enforce its rights and  remedies, as agent for and for the benefit of the Buyers in accordance with the Agent’s  commercially reasonable instructions, with respect to any Purchased Loans under any Servicing  Agreement, and (c) succeed to the rights and remedies of the Seller with respect to any  Purchased Loans under any Servicing Agreement to the extent permitted by, and subject to, the  terms of such Servicing Agreement (but not the obligations or liabilities of the Seller incurred  prior to the date of such succession) and related Subservicer Instruction Letter.  Upon any such  termination, the Seller shall, and shall cause each Subservicer to, (A) perform the servicing  responsibilities with respect to the Purchased Loans in accordance with the terms of this  Agreement until the transfer of servicing responsibilities is effectuated and (B) cooperate, at the  Seller’s expense, in transferring such servicing responsibilities with respect to the Purchased  Loans to a successor Servicer appointed by the Agent in its sole discretion.  Upon termination of  the Seller as Servicer and without limiting the generality of the foregoing, the Seller shall, in the  manner and at such times as the successor servicer or the Agent shall request, (1) promptly  transfer all data in the Servicing Records relating to the Purchased Loans to the successor  servicer in such electronic format as the successor servicer may reasonably request, (2) promptly  transfer to the successor servicer, the Agent or its designee, all other files, records  correspondence and documents relating to the Purchased Loans and (3) use commercially  reasonable efforts to cooperate and coordinate with the successor servicer and the Agent to  comply with any applicable so-called “goodbye” letter requirements or other applicable  requirements of the Real Estate Settlement Procedures Act or other applicable legal or regulatory                                         88                                                                    Bodman_16842095_7 

 

     requirement associated with the transfer of the servicing of the Purchased Loans.  Servicer   acknowledges and agrees that if it fails to cooperate with the Agent or any successor servicer in   effecting the termination of the Seller as Servicer of any Purchased Loan or the transfer of all   authority to service such Purchased Loan to such successor servicer in accordance with the terms   hereof, the Agent and the Buyers will be irreparably harmed and entitled to injunctive relief.            19.8. Notice from Seller.  If the Seller should discover that, for any reason  whatsoever, any entity responsible to the Seller by contract for managing or servicing any  Purchased Loan has failed to perform in any material respects the Seller’s obligations under the  Repurchase Documents or any of the material obligations of such entities with respect to the  Purchased Loans, the Seller shall promptly notify the Agent.            19.9. Seller Remains Liable.  Notwithstanding any Servicing Agreement or the  provisions of this Agreement relating to agreements or arrangements between the Seller and a  Subservicer or reference to actions taken through a Subservicer or otherwise, and unless the  Agent has terminated the Seller’s rights pursuant to Section 19.7, the Seller shall remain  obligated and primarily liable to the Buyers for servicing and administering of the Purchased  Loans in accordance with the provisions hereof without diminution of such obligation or liability  by virtue of such Servicing Agreements or arrangements or by virtue of indemnification from a  Subservicer and to the same extent and under the same terms and conditions as if the Seller alone  were servicing and administering the Purchased Loans.  All actions of each Subservicer  performed pursuant to the related Servicing Agreement shall be performed as an agent of the  Seller with the same force and effect as if performed directly by the Seller and the Buyers shall  have no obligations, duties or liabilities with respect to any Subservicer including no obligation,  duty or liability of the Buyers to pay any Subservicer’s fees and expenses, provided, however,  that each Subservicer may retain any amounts collected by it that it is entitled to retain pursuant  to the applicable Servicing Agreement or Subservicer Instruction Letter.  The Seller shall be  entitled to enter into any agreement with each Subservicer for indemnification of the Seller by  the Subservicer and nothing contained in this Repurchase Agreement shall be deemed to limit or  modify such indemnification.            19.10. Backup Servicer.  The Agent shall have the right, in its sole discretion, to  appoint a Backup Servicer that will (a) serve as a backup servicer of the Purchased Loans until  such time as the Agent shall appoint a successor servicer of the Purchased Loans and (b) become  the successor servicer of the Purchased Loans at the Agent’s option.  In connection with the  appointment of a Backup Servicer as provided in the preceding sentence, the Agent may make   such arrangements for the compensation of the Backup Servicer out of Income on the Mortgage   Loans or otherwise as the Agent and such Backup Servicer shall agree.  The Seller shall provide   Backup Servicer with such data, files and information, in form, format and content as the Backup   Servicer may request, in order to permit the Backup Servicer to service the Mortgage Loans in   accordance with Accepted Servicing Practices; all such data, files and information shall be   updated by the Seller on a monthly basis as required by the Backup Servicer.            19.11. Successor Servicer.  If the Backup Servicer or any other Person is appointed by   the Agent to act as a successor servicer of the Purchased Loans pursuant to the preceding section,   the Seller (in its capacity as Servicer hereunder) shall, and shall cause each Subservicer to,   subject to such Subservicer’s rights under any applicable Servicing Agreement, and Subservicer                                          89                                                                     Bodman_16842095_7 

 

   Instruction Letter, discharge its servicing duties and responsibilities during the period from the  date it acquires knowledge of such transfer of servicing until the effective date thereof with the  same degree of diligence and prudence that it is obligated to exercise under this Agreement, and  shall take no action whatsoever that might impair or prejudice the rights or financial condition of  the successor Servicer.  Within five (5) Business Days of the appointment of a successor Servicer  of the Purchased Loans, the Seller shall, and shall cause each Subservicer to, prepare, execute  and deliver to such successor Servicer any and all documents and other instruments, place in  such successor’s possession all Servicing Records, and do or cause to be done all other acts or  things necessary or appropriate to effect the transfer of servicing to the successor Servicer,  including but not limited to the transfer and endorsement of the Mortgage Notes and related  documents, and the preparation and recordation of assignments of Mortgage.  The Seller shall  (and shall cause each Subservicer to) cooperate with the Agent and the successor Servicer in  effecting the transfer of servicing responsibilities to the Backup Servicer, including execution  and delivery of servicing transfer notices to Mortgagors, MERS (if applicable), taxing authorities  and insurance companies, the transfer to the Backup Servicer or successor Servicer for  administration by it of all Income with respect to the Purchased Loans that shall at the time be  held or received by the Seller or any Subservicer.  The Seller shall deliver immediately to the  successor Servicer all Purchased Loan documents and related documents and statements held by  it or any Subservicer hereunder and the Seller shall account for all funds and shall execute and  deliver such instruments and do such other things as may reasonably be required to more fully  and definitively vest in the successor Servicer all such rights, powers, duties, responsibilities,  obligations and liabilities of the Seller as servicer of the Purchased Loans.   Section 20. Payment of Expenses; Indemnity.           20.1. Expenses.               (a)   The Seller shall pay on demand all of the Agent’s reasonable out-of-      pocket fees and expenses (including the fees and expenses for legal services of in-house       or outside counsel) incurred by the Agent, the Custodian and the Approved MBS       Custodian in connection with this Agreement, the Custody Agreement, the MBS       Custodial Agreement and the Transactions contemplated hereby and thereby, whether or       not any Transactions are entered into hereunder, including the reasonable out-of-pocket       fees and expenses incurred in connection with (i) the preparation, reproduction and       distribution of this Agreement, the Custody Agreement, the MBS Custodial Agreement       and any opinions of counsel, certificates of officers or other documents contemplated by       the aforementioned agreements, (ii) any Transaction under this Agreement, (iii) the       administration and syndication of this Agreement and of any Transaction and (iv) any       amendments and waivers regarding any of the foregoing.  The obligation of the Seller to       pay such fees and expenses incurred prior to or in connection with the termination of this       Agreement shall survive the termination of this Agreement.              (b)   The Seller shall pay all of the Agent’s and each Buyer’s reasonable out-of-      pocket costs and expenses, including attorneys’ fees of in-house or outside counsel, after       the occurrence of any Default or Event of Default in connection with the enforcement of       this Agreement, the Custody Agreement, the MBS Custodial Agreement and the other       Repurchase Documents, including in connection with any (i) bankruptcy, (ii) other                                         90                                                                    Bodman_16842095_7 

 

           insolvency proceeding, or (iii) any workout or consultation involving the Buyers’ rights         and remedies, the purchase and repurchase of the Purchased Loans and the payment of         Price Differential in connection therewith.                (c)   The Seller shall pay, and hold the Agent, the Buyers and any other owners         or holders of any of the Obligations harmless from and against, any and all present and         future stamp, documentary and other similar taxes with respect to the foregoing matters         and save them each harmless from and against any and all liabilities with respect to or         resulting from any delay or omission to pay such taxes.                (d)   The Seller shall pay all of the Agent’s Fees and any other fees payable by         the Seller under this Agreement and the other Repurchase Documents.            20.2. Indemnity.  The Seller shall pay, and indemnify, defend and hold harmless the   Agent, the Buyers and any of their respective officers, directors, employees, agents, advisors and   Affiliates (collectively “Indemnified Parties” and each an “Indemnified Party”) from and against,   the “Indemnified Liabilities”, which means any and all claims, liabilities, obligations, losses,   damages, penalties, judgments, suits, disbursements and reasonable out-of-pocket costs and  expenses (including attorneys’ fees and disbursements of in-house or outside counsel) of any   kind whatsoever that may be imposed upon, incurred by or asserted against any of the   Indemnified Parties in any way relating to or arising out of any of the Repurchase Documents or   any of the transactions contemplated thereby or the use of proceeds or proposed use of proceeds   thereof, including, but not limited to, (a) Seller’s failure to comply with, or breach of, any   provision of any of the Repurchase Documents, (b) the failure of Seller, any Indemnified Party   or any Purchased Loan to comply with, observe or perform any Legal Requirement with respect   to any Purchased Loan and (c) the use of telephone or Electronic Transmissions or E-Systems   under or in connection with this Agreement or any of the other Repurchase Documents;   provided, however, that to the extent, if any, that any Indemnified Liabilities are caused by any   Indemnified Party’s gross negligence or willful misconduct, the indemnity payable to that   Indemnified Party shall be equitably and proportionately reduced, although (i) to the full extent   permitted under applicable law, such indemnity shall not be reduced on account of such claims,   liabilities, etc. to any extent (x) owed, in whole or in part, under any claim or theory of strict   liability, or (y) caused or contributed to by any Indemnified Party’s sole or concurrent ordinary   negligence that does not amount to gross negligence or willful misconduct, it being the Seller’s   intention to hereby indemnify the Indemnified Parties against their own strict liability and their   own sole or concurrent ordinary negligence, and (ii) such gross negligence and willful   misconduct exception to the foregoing indemnity shall, in the case of any failure under paragraph   (b) above, only be applicable to a failure which first occurs subsequent to termination by Agent   of Seller’s rights as Servicer under Section 19.7 hereof.    Section 21. Single Agreement.          The Buyers, the Agent and the Seller acknowledge that, and have entered into this   Agreement and will enter into each Transaction hereunder in consideration of and in reliance   upon the fact that, all Transactions hereunder constitute a single business and contractual   relationship and have been made in consideration of each other.  Accordingly, each of the Agent,   the Buyers and the Seller agrees (a) to perform all of its obligations in respect of each                                          91                                                                     Bodman_16842095_7 

 

   Transaction hereunder, and that a default in the performance of any such obligations shall  constitute a default by it in respect of all Transactions hereunder, (b) that each of them shall be  entitled to set off claims and apply property held by them in respect of any Transaction against  obligations owing to them in respect of any other Transactions hereunder and (c) that payments,  deliveries and other transfers made by any of them in respect of any Transaction shall be deemed  to have been made in consideration of payments, deliveries and other transfers in respect of any  other Transactions hereunder, and the obligations to make any such payments, deliveries and  other transfers may be applied against each other and netted.   Section 22. Relationships among the Agent and the Buyers.           22.1. Appointment of Agent.  Each Buyer irrevocably appoints and authorizes the  Agent to act on behalf of such Buyer or holder under this Agreement and the other Repurchase  Documents and to exercise such powers hereunder and thereunder as are specifically delegated  to Agent by the terms hereof and thereof, together with such powers as may be reasonably  incidental thereto, including without limitation the power to execute or authorize the execution of  financing or similar statements or notices, and other documents. In performing its functions and  duties under this Agreement, the Agent shall act solely as agent of the Buyers and does not  assume and shall not be deemed to have assumed any obligation towards or relationship of  agency or trust with or for the Seller or any other Person.           22.2. Scope of Agent’s Duties.                 (a)   The Agent shall have no duties or responsibilities except those expressly        set forth herein, and shall not, by reason of this Agreement or otherwise, have a fiduciary        relationship with any Buyer (and no implied covenants or other obligations shall be read        into this Agreement against the Agent). None of Agent, its Affiliates nor any of their        respective directors, officers, employees or agents shall be liable to any Buyer for any        action taken or omitted to be taken by it or them under this Agreement or any document        executed pursuant hereto, or in connection herewith or therewith with the consent or at        the request of the Required Buyers (or all of the Buyers for those acts requiring consent        of all of the Buyers) (except for its or their own willful misconduct or gross negligence),        nor be responsible for or have any duties to ascertain, inquire into or verify (a) any        recitals or warranties made by the Seller or any Affiliate of the Seller, or any officer        thereof contained herein or therein, (b) the effectiveness, enforceability, validity or due        execution of this Agreement or any document executed pursuant hereto or any security        thereunder, (c) the performance by the Seller of its obligations hereunder or thereunder,        or (d) the satisfaction of any condition hereunder or thereunder, including without        limitation in connection with the making of any Transaction. The Agent and its Affiliates        shall be entitled to rely upon any certificate, notice, document or other communication        (including any cable, telegraph, telex, facsimile transmission or oral communication)        believed by it to be genuine and correct and to have been sent or given by or on behalf of        a proper person. The Agent may employ agents and may consult with legal counsel,        independent public accountants and other experts selected by it and shall not be liable to        the Buyers (except as to money or property received by them or their authorized agents),        for the negligence or misconduct of any such agent selected by it with reasonable care or                                         92                                                                    Bodman_16842095_7 

 

           for any action taken or omitted to be taken by it in good faith in accordance with the         advice of such counsel, accountants or experts.                (b)   Except as otherwise expressly provided herein, whenever the Agent is        authorized and empowered hereunder on behalf of the Buyers to give any approval or         consent, or to make any request, or to take any other action on behalf of the Buyers         (including without limitation the exercise of any right or remedy hereunder or under the         other Repurchase Documents), the Agent shall be required to give such approval or         consent, or to make such request or to take such other action only when so requested in         writing by the Required Buyers or the Buyers, as applicable hereunder. Action that may        be taken by the Required Buyers, any other specified Percentage of the Buyers or all of        the Buyers, as the case may be (as provided for hereunder) may be taken (i) pursuant to a        vote of the requisite percentages of the Buyers as required hereunder at a meeting (which        may be held by telephone conference call), provided that Agent exercises good faith,        diligent efforts to give all of the Buyers reasonable advance notice of the meeting, or (ii)        pursuant to the written consent of the requisite percentages of the Buyers as required        hereunder, provided that all of the Buyers are given reasonable advance notice of the        requests for such consent.               (c)   Except as otherwise expressly provided under this Agreement or in any of        the other Repurchase Documents and subject to the terms hereof, Agent will take such        action, assert such rights and pursue such remedies under this Agreement and the other        Repurchase Documents as the Required Buyers or all of the Buyers, as the case may be        (as provided for hereunder), shall direct; provided, however, that the Agent shall not be        required to act or omit to act if, in the reasonable judgment of the Agent, such action or        omission may expose the Agent to personal liability for which Agent has not been        satisfactorily indemnified hereunder or is contrary to this Agreement, any of the        Repurchase Documents or applicable law. Except as expressly provided above or        elsewhere in this Agreement or the other Repurchase Documents, no Buyer (other than        the Agent, acting in its capacity as agent) shall be entitled to take any enforcement action        of any kind under this Agreement or any of the other Repurchase Documents.            22.3. Limitation on Duty to Disclose.  Except as expressly set forth herein, the Agent  shall not have any duty to disclose, and shall not be liable for the failure to disclose, any  information relating to the Seller or any of its Subsidiaries or Affiliates that is communicated to  or obtained by the bank serving as Agent or any of its Affiliates in any capacity.            22.4. Authority of Agent to Enforce this Agreement.  Each Buyer, subject to the terms  and conditions of this Agreement, grants the Agent full power and authority as attorney-in-fact to   institute and maintain actions, suits or proceedings for the collection and enforcement of any   Indebtedness outstanding under this Agreement or any other Repurchase Document and to file   such proofs of debt or other documents as may be necessary to have the claims of the Buyers   allowed in any proceeding relative to the Seller, or its creditors or affecting its properties, and to  take such other actions which Agent considers to be necessary or desirable for the protection,  collection and enforcement of this Agreement or the other Repurchase Documents.                                           93                                                                     Bodman_16842095_7 

 

           22.5. Agent in its Individual Capacity.  Comerica Bank and its Affiliates, successors  and assigns shall each have the same rights and powers hereunder as any other Buyer and may  exercise or refrain from exercising the same as though such Buyer were not the Agent. Comerica  Bank and its Affiliates may (without having to account therefor to any Buyer) accept deposits  from, lend money to, and generally engage in any kind of banking, trust, financial advisory or  other business with the Seller as if such Buyer were not acting as the Agent hereunder, and may  accept fees and other consideration therefor without having to account for the same to the  Buyers.           22.6. Actions Requiring All Buyers’ Consent.  No amendment or waiver of, or any  action with respect to, any provision of this Agreement or any of the Repurchase Documents  shall in any event be effective unless the same shall be in writing signed by all the Buyers with  respect to any amendment or waiver or any action that:               (a)   Increases the Maximum Aggregate Commitment or increases any Buyer’s        Commitment (it being understood that, for the purposes of this Section 22.6(a), the        Buyers’ execution of this Agreement evidences such Buyers’ consent to increasing the        Maximum Aggregate Commitment and Buyer’s Commitment in accordance with the        provisions of Section 2.6 hereof).               (b)   Agrees to any reduction in any Pricing Rate, Repurchase Price or fee        provisions of this Agreement, excluding the provisions relating to the Agent’s Fee and        other fees owing to the Agent only.               (c)   Acknowledges termination of the Buyers’ ownership interest in the        Purchased Loans or releases all or a material portion of the Liens held under the        Repurchase Documents other than in accordance with the Repurchase Documents.               (d)   Changes any Buyer’s Pro Rata share of ownership of the Purchased Loans        other than in accordance with the express provisions of the Repurchase Documents.               (e)   Agrees to any change in the nature of the Buyers’ respective        Commitments from several to joint, in whole or in part.               (f)   Agrees to any change to the definition of “Required Buyers” or to any        provisions of this Agreement or any of the other Repurchase Documents that requires the        consent, approval or satisfaction of all of the Buyers or each of the Buyers.               (g)   Extends the Termination Date or the due date of any required payment        other than in accordance with the express provisions of the Repurchase Documents.               (h)   Agrees to any change in this Section 22.6.               (i)   Agrees to any change in the Buyer’s Margin Percentage rates.               (j)   Releases the Seller from any of its obligations other than in accordance        with the express conditions of the Repurchase Documents.                                         94                                                                    Bodman_16842095_7 

 

                 (k)   Modifies the sharing provisions of Section 22.10.                  (l)   Modifies Section 4.1, Section 4.2, Schedule EL, Schedule DQ or Schedule         15.3.    In the event of any conflict between the provisions of this Section 22.6 and any other provisions   of this Agreement or the other Repurchase Documents, this Section 22.6 shall govern.            22.7. Actions Requiring Required Buyers’ Consent.  All amendments hereto, waivers  or actions taken hereunder that are not described in Section 6 and Section  22.8 require the   written consent or ratification of the Required Buyers except for actions that are specifically   reserved to the Agent under Sections 6.1 and 6.6 or elsewhere in this Agreement or the other   Repurchase Documents; provided that no amendments, waivers or actions taken hereunder that   relate to the rights or obligations of the Agent shall be effective without the prior written consent   of the Agent.  The Agent will, at the direction of the Required Buyers, take any enforcement   action or exercise any remedies under this Agreement and the Repurchase Documents that arise   after the occurrence of an Event of Default.            22.8.  Agent’s Discretionary Actions.  Subject to the limitations of Sections 22.6 and   22.7, in its capacity as Agent and without seeking or obtaining the consent of any of the other   Buyers (although it may elect to obtain such consent before acting it if deems that desirable), the   Agent may:                (a)   With respect to Purchased Loans having an aggregate Purchase Value of         not more than the Discretionary Loan Sublimit at any time, (i) waive one or more         Disqualifiers for Purchased Loans, waive one or more of the representations or warranties         concerning Purchased Loans under Section 15.3, or waive any other requirements for         Purchased Loans set forth in this Agreement, so that in the case of each such waiver such         Purchased Loan is included as a Discretionary Loan, and (ii) include as Discretionary         Loans, Purchased Loans which, if added to a Sublimit under Section 4.2(b) or Section         4.2(c) other than the Discretionary Loan Sublimit (a “Non-Discretionary Loan         Sublimit”), would cause such Non-Discretionary Loan Sublimit to exceed the maximum         percentage/amount for such Non-Discretionary Loan Sublimit set forth in Section 4.2(b)         or Section 4.2(c;                (b)   reconvey, or exchange, in whole or in part, any Purchased Loans that are         required to be reconveyed, or exchanged in accordance with the Repurchase Documents;                 (c)   approve any new Approved Investor proposed by the Seller (and the         Agent will promptly provide to any Buyer that requests it a current list of Approved         Investors); and                (d)   do or perform any act or thing that, in the Agent’s reasonable judgment, is         necessary or appropriate to enable the Agent to properly discharge and perform its duties         under this Agreement, the Custody Agreement or the MBS Custodial Agreement or that         in its reasonable judgment is necessary or appropriate to preserve or protect the validity,         integrity or enforceability of the Purchased Loans and/or the Repurchase Documents, the         Buyers’ Pro Rata undivided ownership interests in and to the Purchased Loans, the Lien                                          95                                                                     Bodman_16842095_7 

 

         created by this Agreement and its priority, or any of the Central Elements in respect of        the Seller or any of its Subsidiaries, or to preserve and protect the interest of the Buyers        in any of the foregoing.           22.9. Buyers’ Cooperation.  The Buyers agree to cooperate among themselves and  with the Agent and from time to time upon the Agent’s request, to execute and deliver such  papers as may be reasonably necessary to enable the Agent, in its capacity as Agent, to  effectively administer this Agreement and the other Repurchase Documents, the Purchased  Loans and each Buyer’s Pro Rata undivided ownership interest in the Purchased Loans in the  manner contemplated by this Agreement.             22.10. Buyers’ Sharing Arrangement.                 (a)   Each of the Buyers agrees that if it should receive any amount (whether by        voluntary payment, realization upon security, the exercise of the right of set-off, or        otherwise) that is applicable to the payment of Repurchase Price, Margin Deficit, Price        Differential or any fees, that with respect to the related sum or sums received (or        receivable) by the other Buyers is in greater proportion than that Buyer’s Pro Rata        ownership of the Purchased Loans (after taking into account any waiver or adjustments in        the Price Differential or fee owing to such Buyer in accordance with Sections 5.4 and 36        of this Agreement), then such Buyer receiving such excess amount shall purchase from       the other Buyers a participation interest in the Purchased Loans in such amount as shall       result in Pro Rata participation and ownership by all of the Buyers in such excess       amount; provided that if all or any portion of such excess amount is thereafter recovered       from such Buyer, such purchase shall be rescinded and the purchase price restored to the       extent of such recovery; and provided further that the provisions of this Section 22.10       shall not apply to any fees that the Agent may be entitled to from time to time or to any       fees that the Custodian or any successor custodian might be paid pursuant to the Custody       Agreement.              (b)   To the extent that the Seller fails to pay any amount required to be paid to       the Agent under Section 20, each Buyer severally agrees to pay to the Agent such Buyer's        Funding Share (determined as of the time that the unreimbursed expense or indemnity        payment is sought) of such unpaid amount; provided, that the unreimbursed expense or        indemnified payment, claim, damage, liability or related expense, as the case may be, was        incurred by or asserted against the Agent in its capacity as such.           22.11. Buyers’ Acknowledgment.           (a)   Each Buyer other than Comerica Bank hereby acknowledges that Comerica Bank  has made no representations or warranties with respect to any Purchased Loan other than as  expressly set forth in this Agreement and that Comerica Bank shall have no responsibility (in its  capacity as a Buyer, the Agent, or any other capacity or role) for:                     (i)   the marketability or collectability of the Purchased Loans;                                          96                                                                    Bodman_16842095_7 

 

                       (ii)  the genuineness, validity, likelihood of performance as and when               due or enforceability of any Investor Commitment or the solvency or performance               record of any Approved Investor;                      (iii) the validity, enforceability or any legal effect of any of the               Repurchase Documents, any Loan Papers or any insurance, bond or similar device               purportedly protecting any obligation to the Buyers or any Purchased Loans; or                      (iv)  the financial condition of the Seller or any of its Subsidiaries or               Affiliates, the status, health or viability of any industry in which any of them is               involved, the prospects for repurchase of the Purchased Loans, the genuineness,               validity or enforceability of any warehousing facility or repurchase agreement               between the Seller and any other lender or repurchase agreement counterparty, the               value of any Purchased Loans, the effectiveness of any of the provisions of the               Repurchase Documents (including the financial covenants, tests and hedging               requirements) or any aspect of their implementation or administration at any time               to reduce or control risks of any type, to produce returns, profits, yields or spreads               or to reduce or control losses or the accuracy of any information supplied by or to               be supplied in connection with any of the Seller or any of its Subsidiaries or               Affiliates, or otherwise with respect to this Agreement, any Purchased Loans or               any source of equity or other financing for any of the Seller, any of its Affiliates               or any other warehouse lender or repurchase agreement counterparty.          (b)   Each Buyer acknowledges that it has, independently of Agent and each other         Buyer and based on the financial statements of Seller and such other documents,         information and investigations as it has deemed appropriate, made its own credit decision         to extend credit hereunder from time to time. Each Buyer also acknowledges that it will,         independently of Agent and each other Buyer and based on such other documents,        information and investigations as it shall deem appropriate at any time, continue to make        its own credit decisions as to exercising or not exercising from time to time any rights        and privileges available to it under this Agreement, any Repurchase Document or any         other document executed pursuant hereto.            22.12.  Agent Market Value Determinations.  The parties hereto agree and  acknowledge that, in determining the Market Value of the Purchased Loans, the Agent (a) shall  determine Market Value as a third party service provider, in accordance with standards  customarily applicable in the financial industry to third party service providers providing values  on comparable assets to be used in connection with the financing of such assets, and (b) shall not  be obligated to do that same or similar amount of work or analysis as if it were valuing its own  assets, or as if it were valuing such assets for the purchase or sale thereof by it or any other party.   The parties hereto agree and acknowledge that any asset valuation information produced by the  Agent is intended to be and should be used solely for the limited uses specified in this  Agreement and the other Repurchase Documents, and is not intended to be and should not be  used by any Person for any other purpose.  The parties hereto further agree and acknowledge that   the Agent may elect to determine the Market Value for any Purchased Loan by determining the   market bid price for a portfolio containing all Purchased Loans and allocating such portfolio   market bid price among each individual Purchased Loan.                                          97                                                                     Bodman_16842095_7 

 

             22.13.  Agent’s Duty of Care, Express Negligence Waiver and Release.  At all times  until all Purchased Loans have all been repurchased by the Seller and the Buyers have no further  commitments or other obligations under this Agreement and the other Repurchase Documents,  the Agent shall exercise the same degree of care in handling the Purchased Loans as Comerica  Bank exercises with respect to loans that are held solely by Comerica Bank for its own account,  and the Agent, in its capacity as Agent shall have no responsibility to the Buyers other than to  exercise such standard of care and, in any event, Comerica Bank shall have no liability with  respect to any other Buyer’s Pro Rata interest in the Purchased Loans except for Comerica  Bank’s own fraud, gross negligence or willful misconduct.  Except in the case of its own fraud,  gross negligence or willful misconduct, neither the Agent, any Buyer, nor any of their officers,  directors, employees, attorneys or agents shall be liable for any action taken or omitted to be  taken by it or them under this Agreement, the Custody Agreement, the MBS Custodial  Agreement or any of the other Repurchase Documents reasonably believed by it or them to be  within the discretion or power conferred upon it or them by the Repurchase Documents or be  responsible for consequences of any error of judgment, the Buyers expressly intending to hereby  waive and release all present and future claims and rights against the Agent (a) owed, in whole or  in part, under any claim or theory of strict liability or (b) for damages or injuries caused or  contributed to by any Indemnified Party’s sole or concurrent ordinary negligence that does not  amount to gross negligence or willful misconduct.  Except as otherwise specifically and  expressly set forth in this Agreement, the Agent shall not be responsible in any manner to anyone  for the effectiveness, enforceability, genuineness, validity or due execution of this Agreement,  any supplement, amendment or restatement of it or of any other Repurchase Documents or for  any representation, warranty, document, certificate, report or statement made or furnished in,  under or in connection with this Agreement or any of the other Repurchase Documents or be  under any obligation to anyone to ascertain or to inquire as to the performance or observation of  any of the terms, covenants or conditions of this Agreement or of the other Repurchase  Documents on the part of the Seller or anyone else.  Without limiting the generality of the  foregoing provisions of this Section 22.13, the Agent, in its capacity as Agent, may seek and rely   upon the advice of legal counsel in taking or refraining to take any action under any of the   Repurchase Documents or otherwise in respect of any Purchased Loans, this Agreement and its   parties, and shall be fully protected in relying upon such advice.            22.14. Calculations of Shares of Principal and Other Sums.  Except as provided to the   contrary in Section 6.4 (“Increased Cost”), Section 6.5 (“Capital Adequacy”), Section 7.1   (“Payments to be free of Taxes; Withholding”), Section 7.3 (“Taxes Indemnity”), Section 9.2   (“Agent’s Fee”), and Section 20 (“Payment of Expenses; Indemnity”), Comerica Bank’s and each   other Buyer’s respective shares of Repurchase Prices and other sums received by the Agent on   account of the Purchased Loans or with respect to them shall be calculated on the basis of each   Buyer’s (including Comerica Bank’s) respective Pro Rata ownership interests in the Purchased   Loans from time to time.            22.15. Successor Agent.   Agent may resign as such at any time upon at least thirty   (30) days prior notice to the Seller and each of the Buyers. If Agent at any time shall resign or if   the office of Agent shall become vacant for any other reason, Required Buyers shall, by written   instrument, appoint successor agent(s) (“Successor Agent”) satisfactory to such Required Buyers  and, so long as no Default or Event of Default has occurred and is continuing, approved by the  Seller (which approval shall not be unreasonably withheld or delayed). Such Successor Agent                                          98                                                                     Bodman_16842095_7 

 

     shall thereupon become the Agent hereunder, as applicable, and Agent shall deliver or cause to   be delivered to any successor agent such documents of transfer and assignment as such   Successor Agent may reasonably request. If a Successor Agent is not so appointed or does not   accept such appointment before the resigning Agent’s resignation becomes effective, the   resigning Agent may appoint a temporary successor to act until such appointment by the   Required Buyers and, if applicable, the Seller, is made and accepted, or if no such temporary   successor is appointed as provided above by the resigning Agent, the Required Buyers shall   thereafter perform all of the duties of the resigning Agent hereunder until such appointment by   the Required Buyers and, if applicable, the Seller, is made and accepted. Such Successor Agent  shall succeed to all of the rights and obligations of the resigning Agent as if originally named.  The resigning Agent shall duly assign, transfer and deliver to such Successor Agent all moneys  at the time held by the resigning Agent hereunder after deducting therefrom its expenses for  which it is entitled to be reimbursed hereunder. Upon such succession of any such Successor  Agent, the resigning Agent shall be discharged from its duties and obligations, in its capacity as  Agent hereunder, except for its gross negligence or willful misconduct arising prior to its  resignation hereunder, and the provisions of this Article 12 shall continue in effect for the benefit  of the resigning Agent in respect of any actions taken or omitted to be taken by it while it was  acting as Agent.            22.16. Merger of the Agent.  Any Person into which the Agent may be merged or   converted or with which it may be consolidated, or any Person surviving or resulting from any   merger, conversion or consolidation to which the Agent shall be a party or any Person   succeeding to the commercial banking business of the Agent shall be the successor Agent   without the execution or filing of any paper or any further act on the part of any of the parties.            22.17. Participation; Assignment by Buyers.                (a)   Assignments.  Any Buyer may at any time assign in such Buyer’s rights         and obligations hereunder and under the other Repurchase Documents by way of         assignment to any Eligible Assignee in accordance with clause (d) of this Section 22.17,         (and any other attempted assignment or transfer by any Buyer shall be deemed to be null         and void).  Each assignment by a Buyer of all or any portion of its rights and obligations         hereunder and under the other Repurchase Documents, shall be subject to the following         terms and conditions: (i) each such assignment shall be in a minimum amount of the         lesser of (x) Five Million Dollars ($5,000,000) or such lesser amount as the Agent shall         agree and (y) the entire remaining amount of assigning Buyer’s Committed Sum;         provided however that, after giving effect to such assignment, in no event shall the entire         remaining amount (if any) of assigning Buyer’s Committed Sum be less than $5,000,000;         (ii) each partial assignment shall be made as an assignment of a proportionate part of all         the assigning Buyer’s rights and obligations under this Agreement, and (iii) the parties to         any assignment shall execute and deliver to Agent an Assignment and Assumption          substantially (as determined by Agent) in the form attached hereto as Exhibit E (with         appropriate insertions acceptable to Agent), together with a processing and recordation         fee in the amount, if any, required as set forth in the Assignment and Assumption. Until         the Assignment and Assumption becomes effective in accordance with its terms, and         Agent has confirmed that the assignment satisfies the requirements of this Section 22.17,         the Seller and the Agent shall be entitled to continue to deal solely and directly with the                                          99                                                                     Bodman_16842095_7 

 

                assigning Buyer in connection with the interest so assigned.  From and after the effective  date of each Assignment and Assumption that satisfies the requirements of this Section  22.17, the assignee thereunder shall be deemed to be a party to this Agreement, such  assignee shall have the rights and obligations of a Buyer under this Agreement and the  other Repurchase Documents (including without limitation the right to receive fees  payable hereunder in respect of the period following such assignment) and the assigning  Buyer shall relinquish its rights and be released from its obligations under this Agreement  and the other Repurchase Documents.  Upon request, the Seller shall execute and deliver  to the Agent, documents reasonably necessary to such assignment process;         (b)   Participations.  The Seller and the Agent acknowledge that each of the  Buyers may at any time and from time to time, subject to the terms and conditions hereof,  sell participations in all or any part of such Buyer’s Commitment and Pro Rata ownership  share of the Purchased Loans to any Person (other than a natural person or to the Seller or  any of the Seller’s Affiliates or Subsidiaries); provided that any participation permitted  hereunder shall comply with all applicable laws and shall be subject to a participation  agreement that incorporates the following restrictions:               (i)   such Buyer shall remain the holder of the notes issued hereunder, if       any, notwithstanding any such participation;              (ii)  a participant shall not reassign or transfer, or grant any sub-      participations in its participation interest hereunder or any part thereof; and               (iii) such Buyer shall retain the sole right and responsibility to enforce        the obligations of the Seller relating to this Agreement and the other Repurchase        Documents, including, without limitation, the right to proceed against any        Guarantors, or cause the Agent to do so (subject to the terms and conditions        hereof), and the right to approve any amendment, modification or waiver of any        provision of this Agreement without the consent of the participant (unless such        participant is a Buyer Affiliate), except to the extent such amendment,        modification or waiver requires the consent of all Buyers under Section 22.6.  In        those cases (if any) where a Buyer grants rights to any of its participants to        approve amendments, modifications or waivers of any Repurchase Documents        pursuant to the immediately preceding sentence, such Buyer must include a voting        mechanism as to all such approval rights in the relevant participation        agreement(s) whereby a readily-determinable fraction of such Buyer’s portion of       the Purchased Loans (whether held by such Buyer or participated) shall control       the vote for all of such Buyer’s portion of the Purchased Loans; provided that if       no such voting mechanism is provided for or is fully and immediately effective,       then the vote of such Buyer itself shall be the vote for all of such Buyer’s portion       of the Purchased Loans; and provided further that a participant may exercise       approval rights over such matters only on an indirect basis, acting through such       Buyer, and the Seller, Agent and the other Buyers may continue to deal directly       with such Buyer in connection with such Buyer’s rights and duties hereunder.       Notwithstanding the foregoing, however, in the case of any participation granted       by any Buyer hereunder, the participant shall not have any rights under this                                  100                                                              Bodman_16842095_7 

 

                      Agreement or any of the other Repurchase Documents against the Agent, any        other Buyer or the Seller; provided, however that the participant may have rights        against such Buyer in respect of such participation as may be set forth in the        applicable participation agreement and all amounts payable by the Seller        hereunder shall be determined as if such Buyer had not sold such participation.         Each such participant shall be entitled to the benefits of Sections 6.4, 6.5, and 7.1        of this Agreement to the same extent as if it were a Buyer and had acquired its        interest by assignment pursuant to clause (a) of this Section 22.17, provided that        no participant shall be entitled to receive any greater amount pursuant to such the        provisions of Sections 6.4, 6.5 and 7.1 than the issuing Buyer would have been        entitled to receive in respect of the amount of the participation transferred by such        issuing Buyer to such participant had no such transfer occurred and each such        participant shall also be entitled to the same rights of set-off as though it were a        Buyer, provided that such participant agrees to be subject to Section 22.10 hereof        as though it were a Buyer.         (c)   Other Permitted Transfers.  Any Buyer may at any time pledge,  collaterally assign or grant a security interest in any or all of its interests under this  Agreement and in the Purchased Loans to any Federal Reserve Bank or to any other  Person to secure obligations of such Buyer, including any pledge or assignment to secure  obligations to a Federal Reserve Bank; provided that no such pledge or assignment shall  release such Buyer from any of its obligations hereunder or substitute any such pledge or  assignee for such Buyer as a party hereto.         (d)   Register.  The Agent shall maintain at its principal office a copy of each  Assignment Agreement delivered to it and a register (the “Register”) for the recordation  of the names and addresses of the Buyers and the Committed Sum of, and amount owing  to, each Buyer. The entries in the Register shall be conclusive evidence, absent manifest  error, and the Seller, the Agent, and the Buyers may treat each Person whose name is  recorded in the Register as the owner of the Advances recorded therein for all purposes of  this Agreement. The Register shall be available for inspection by the Seller or any Buyer  (but only with respect to any entry relating to such Buyer’s Committed Sum) upon  reasonable notice to the Agent and a copy of such information shall be provided to any  such party on their prior written request. The Agent shall give prompt written notice to  the Seller of the making of any entry in the Register or any change in such entry.         (e)   Disclosure of Seller Information.  The Seller authorizes each Buyer to  disclose to any prospective assignee or participant which has satisfied the requirements  hereunder, any and all financial information in such Buyer’s possession concerning the  Seller which has been delivered to such Buyer pursuant to this Agreement, provided that  each such prospective assignee or participant shall execute a confidentiality agreement  consistent with the terms of Section 24.6 hereof or shall otherwise agree to be bound by  the terms thereof.         (f)   Nothing in this Agreement or the other Repurchase Documents, expressed  or implied, is intended to or shall confer on any Person other than the respective parties  hereto and thereto and their successors and assignees and participants permitted                                  101                                                              Bodman_16842095_7 

 

           hereunder and thereunder any benefit or any legal or equitable right, remedy or other         claim under this Agreement or the other Repurchase Documents.                (g)   If any interest in this Agreement is so transferred to any Person that is        organized under the Legal Requirements of any jurisdiction other than the United States        of America or any State thereof, the transferor Buyer shall cause such Person,        concurrently with the effectiveness of such transfer, to comply with the relevant        provisions of Section 7.5.                (h)   The Seller shall not be required to incur any cost or expense incident to         any sale to a Person of any interest in the Repurchase Documents and the Purchased         Loans pursuant to this Section 22.17 and all such costs and expenses shall be for the         account of the Buyer selling its rights in the Purchased Loans to such Person.            22.18. The Agent and the Buyers are the only Beneficiaries of this Section.  Other than   the provisions of Section 22.15 and Section 22.17, this Section 22 is intended to bind and benefit   only Comerica Bank and the other Buyers, and does not benefit and shall not be enforceable by   the Seller or any other Person whatsoever.            22.19. Knowledge of Default. It is expressly understood and agreed that the Agent  shall be entitled to assume that no Default or Event of Default has occurred and is continuing,  unless the officers of the Agent immediately responsible for matters concerning this Agreement  shall have received a written notice from a Buyer or the Seller specifying such Default or Event  of Default and stating that such notice is a “notice of default”. Upon receiving such a notice, the  Agent shall promptly notify each Buyer of such Default or Event of Default and provide each  Buyer with a copy of such notice and shall endeavor to provide such notice to the Buyers within  three (3) Business Days (but without any liability whatsoever in the event of its failure to do so).  The Agent shall also furnish the Buyer, promptly upon receipt, with copies of all other notices or  other information required to be provided by the Seller hereunder.            22.20. No Reliance on Agent’s Customer Identification Program.           (a)   Each Buyer acknowledges and agrees that neither such Buyer, nor any of its  Affiliates, participants or assignees, may relay on the Agent to carry out such Buyer’s,  Affiliate’s, participant’s or assignee’s customer identification program, or other obligations  required or imposed under or pursuant to the USA Patriot Act or the regulations thereunder,  including the regulations contained in 31 CFR 103.121 (as hereafter amended or replaced, the  “CIP Regulations”), or any other Anti-Terrorism Law, including any programs involving any of  the following items relating to or in connection with Seller or any of its Subsidiaries, any of their  respective Affiliates or agents, the Repurchase Documents or the transactions hereunder: (i) any  identify verification procedures, (ii) any record keeping, (iii) any comparisons with government  lists, (iv) any customer notices or (v) any other procedures required under the CIP Regulations or  such other laws.         (b)   Each Buyer or assignee or participant of a Buyer that is not organized under the  laws of the United States or a state thereof (and is not excepted from the certification  requirement contained in Section 313 of the USA Patriot Act and the applicable regulations                                         102                                                                     Bodman_16842095_7 

 

   because it is both (i) an affiliate of a depository institution or foreign bank that maintains a  physical presence in the United States or foreign country, and (ii) subject to supervision by a  banking authority regulating such affiliated depository institution or foreign bank) shall deliver  to the Agent the certification, or, if applicable, recertification, certifying that such Buyer is not a  “shell” and certifying to other matters as required by Section 313 of the USA Patriot Act and the  applicable regulations: (x) within 10 days after the Effective Date, and (y) at such other times as  are required under the USA Patriot Act.           22.21. Other Titles.  Any Buyer identified on the facing page or signature page of this  Agreement or in any amendment hereto or as designated with consent of the Agent in any  assignment agreement as Lead Arranger, Documentation Agent, or any similar titles, shall not  have any right, power, obligation, liability, responsibility or duty under this Agreement as a  result of such title other than those applicable to all Buyers as such. Without limiting the  foregoing, the Buyers so identified shall not have or be deemed to have any fiduciary  relationship with any Buyer as a result of such title. Each Buyer acknowledges that it has not  relied, and will not rely, on the Buyer so identified in deciding to enter into this Agreement or in  taking or not taking action hereunder.           22.22. Other Agreements.  Each Buyer hereby irrevocably appoints, designates and  authorizes Agent to enter into any Subordination Agreement, the Custody Agreement, the MBS  Custodial Agreement and the Electronic Tracking Agreement, on its behalf and to take such  action on its behalf under the provisions of any such agreement.  Each Buyer further agrees to be  bound by the terms and conditions of each such Subordination  Agreement, Custody Agreement,  MBS Custodial Agreement and Electronic Tracking Agreement.    Section 23. Notices and Other Communications; Electronic Transmissions.         (a)   Except as expressly provided otherwise in this Agreement (and except as  provided in clause (b) below), all notices and other communications provided to any party hereto  under this Agreement or any other Repurchase Document shall be in writing and shall be given  by personal delivery, by mail, by reputable overnight courier or by facsimile and addressed or  delivered to it at its address set forth below or at such other address as may be designated by  such party in a notice to the other parties that complies as to delivery with the terms of this  Section 23 or posted to an E-System set up by or at the direction of Agent (as set forth below).  Any notice, if personally delivered or if mailed and properly addressed with postage prepaid and  sent by registered or certified mail, shall be deemed given when received or when delivery is  refused; any notice, if given to a reputable overnight courier and properly addressed, shall be  deemed given two (2) Business Days after the date on which it was sent, unless it is actually  received sooner by the named addressee; and any notice, if transmitted by facsimile, shall be  deemed given when received. The Agent may, but, except as specifically provided herein, shall  not be required to, take any action on the basis of any notice given to it by telephone, but the  giver of any such notice shall promptly confirm such notice in writing or by facsimile, and such  notice will not be deemed to have been received until such confirmation is deemed received in  accordance with the provisions of this Section set forth above. If such telephonic notice conflicts  with any such confirmation, the terms of such telephonic notice shall control.                                          103                                                                    Bodman_16842095_7 

 

         (b)   Notices and other communications provided to the Agent and the Buyers party  hereto under this Agreement or any other Repurchase Document may be delivered or furnished  by electronic communication (including email and Internet or intranet websites) pursuant to  procedures approved by the Agent.  The Agent or the Seller may, in its discretion, agree to  accept notices and other communications to it hereunder by electronic communications  (including email and any E-System) pursuant to procedures approved by it.  Unless otherwise  agreed to in a writing by and among the parties to a particular communication, (i) notices and  other communications sent to an email address shall be deemed received upon the intended  recipient’s receipt of such notice or other communication and (ii) notices and other  communications posted to any E-System shall be deemed received upon the deemed receipt by  the intended recipient at its email address as described in the foregoing clause (i) of notification  that such notice or other communication is available and identifying the website address  therefore.                If to the Seller:                            Pulte Mortgage LLC              7390 South Iola               Englewood, CO 80112              Attention: Ralph Nowicki              Telephone: 303-493-2596              Facsimile: 303-409-5249              Email: Ralph.Nowicki@pulte.com               With a copy to:               Honigman Miller Schwartz and Cohn LLP              2290 First National Building              Detroit, Michigan 48226             Attention: Norman H. Beitner              Telephone: 313-465-7320              Facsimile: 313-465-7321              Email: nbeitner@honigman.com               If to Comerica Bank as Agent or as a Buyer, as to all notices hereunder:                Comerica Bank              Comerica Bank Tower              1717 Main Street              4th Floor              Dallas, Texas 75201              Attention: Trey Worley              Telephone: (214) 462-4279             Fax: (214) 462-4280              Email: tworley@comerica.com               And                                        104                                                                    Bodman_16842095_7 

 

                 Comerica Bank               411 W. Lafayette Blvd.               Detroit, MI  48226               Attention: Scott M. Helmer               Telephone: (313) 222.5717               Fax: (313) 222.9434               Email: smhelmer@comerica.com                 with a copy of all Request/Confirmations to be delivered to the following email               addresses:                corpfinadmin@comerica.com               tworley@comerica.com               pgdufault@comerica.com               smhelmer@comerica.com               megetz@comerica.com               ahshafer@comerica.com                                 with a copy to:                              Nicholas P. Scavone, Jr.               BODMAN PLC              6th Floor at Ford Field               1901 St. Antoine Street               Detroit, Michigan 48226              Phone: 313-393-7580                Facsimile: 313-393-7579                Email: nscavone@bodmanlaw.com                If to the other Buyers, at the addresses shown on Schedule 23.          (d)   Each of the Agent, the Seller, the Buyers, and each of their Affiliates is authorized   (but not required) to transmit, post or otherwise make or communicate, in its sole discretion,   Electronic Transmissions in connection with any Repurchase Document and the transactions   contemplated therein.  The Seller hereby acknowledges and agrees that the use of Electronic   Transmissions is not necessarily secure and that there are risks associated with such use,   including risks of interception, disclosure and abuse and each indicates it assumes and accepts   such risks by hereby authorizing the transmission of Electronic Transmissions.          (d)   All uses of an E-System shall be governed by and subject to, in addition to this   Section 23, separate terms and conditions posted or referenced in such E-System and related  contractual obligations executed by the Agent, the Seller and the Buyers in connection with the  use of such E-System.         (e)   All E-Systems and Electronic Transmissions shall be provided “as is” and “as  available”.  None of the Agent or any of its Affiliates warrants the accuracy, adequacy or  completeness of any E-Systems or Electronic Transmission, and each disclaims all liability for                                         105                                                                     Bodman_16842095_7 

 

     errors or omissions therein.  No warranty of any kind is made by the Agent or any of its   Affiliates in connection with any E Systems or Electronic Transmission, including any warranty   of merchantability, fitness for a particular purpose, non-infringement of third-party rights or   freedom from viruses or other code defects.  The Agent, the Seller and the Buyers agree that the   Agent has no responsibility for maintaining or providing any equipment, software, services or   any testing required in connection with any Electronic Transmission or otherwise required for   any E-System.    Section 24. Miscellaneous.            24.1. Further Assurances.  At any time and from time to time, at the sole expense of   the Seller, the Seller or the Servicer shall promptly provide such further reasonable assurances,   documents and agreements and undertake such actions as the Agent may reasonably request in   order to effect the purposes of this Agreement, including the assignment, conveyance and   transfer of all right, title and interest of each Purchased Loan from the Seller to the Agent, or to   otherwise obtain or preserve the benefits or rights granted under this Agreement.  In the event the   Seller, Servicer or any subservicer, in the performance of the Servicing Functions shall foreclose   any Mortgage for which the Agent and the Buyers have not received the Repurchase Price, all   such actions shall be taken in the name of the Agent for the benefit of the Buyers and in   accordance with Accepted Servicing Practices.            24.2.  Agent as Attorney in Fact.  The Agent is hereby appointed the attorney-in-fact  of the Seller for the purpose of carrying out the provisions of this Agreement and taking any  action and executing any instruments or documents that the Agent may deem reasonably  necessary or advisable to accomplish the purposes hereof, which appointment as attorney-in-fact  is irrevocable and coupled with an interest, although the Agent agrees not to exercise its rights  under this power of attorney unless, in its opinion or the opinion of its legal counsel, an Event of  Default has occurred that has not been cured by the Seller or that the Agent has not declared in  writing to have been waived in accordance with Section 22.  Without limiting the generality of   the foregoing, but subject to Section 18.3, the Agent shall have the right and power during the   occurrence and continuation of any Event of Default to receive, endorse, collect and control all   checks or instruments made payable to the order of the Seller and all other forms of payment to   the Seller that represent any payment on account of the principal of or interest on or proceeds   from any of the Purchased Loans and to give full discharge for the same.            24.3. Wires to Seller.  Any amounts to be transferred by the Agent to the Seller   hereunder (other than Purchases Prices for the Purchased Loans) shall be sent by journal entry   (or wire transfer) in immediately available funds to the Operating Account.            24.4. Wires to Agent.  Except as may be otherwise expressly provided herein, any   amounts to be transferred by the Seller to the Agent hereunder shall be sent by wire transfer in   immediately available funds to the Repurchase Settlement Account.            24.5. Receipt; Available Funds.  Amounts received after 1:00 p.m. (Detroit,   Michigan time) on any Business Day shall be deemed to have been paid and received on the next   succeeding Business Day.  All payments and transfers of cash pursuant to this Agreement shall                                          106                                                                     Bodman_16842095_7 

 

   be made (only if the paying and receiving accounts are with the same financial institution) by  journal entries, or (otherwise) by wire transfer, of immediately available funds in U.S. dollars.           24.6. Privacy of Customer Information.  The Seller’s Customer Information in the  possession of the Agent or the Buyers, other than information independently obtained by the  Agent or the Buyers and not derived in any manner from or using information obtained under or  in connection with this Agreement, is and shall remain confidential and proprietary information  of the Seller.  Except in accordance with this Section 24.6, the Agent and the Buyers shall not  use any Seller’s Customer Information for any purpose, including the marketing of products or  services to, or the solicitation of business from, Customers, or disclose any Seller’s Customer  Information to any Person, including any of the Agent’s or the Buyers’ employees, agents or  contractors or any third party not affiliated with the Agent or a Buyer.  The Agent and the Buyers  may use or disclose the Seller’s Customer Information only to the extent necessary (a) for  examination and audit of the Agent’s or the Buyers’ respective activities, books and records by  their regulatory authorities, (b)  to market or sell Purchased Mortgage Loans or to enforce or  exercise their rights under any Repurchase Document, (c) to carry out the Agent’s, the Buyers’,  the Custodian’s and the Approved MBS Custodian’s express rights and obligations under this  Agreement and the other Repurchase Documents (including providing the Seller’s Customer  Information to Approved Investors), or (d) in connection with an assignment or participation as  authorized by Section 22 or in connection with any hedging transaction related to the Purchased  Loans and for no other purpose; provided that the Agent and the Buyers may also use and  disclose the Seller’s Customer Information as expressly permitted by the Seller in writing, to the  extent that such express permission is in accordance with the Privacy Requirements.  The Agent  and the Buyers shall ensure that each Person to which the Agent or a Buyer intends to disclose  Seller’s Customer Information, before any such disclosure of information, agrees to keep  confidential any such Seller’s Customer Information and to use or disclose such Seller’s  Customer Information only to the extent necessary to protect or exercise the Agent’s, the  Buyers’, the Custodian’s and the Approved MBS Custodian’s rights and privileges, or to carry  out the Agent’s, the Buyers’, the Custodian’s and the Approved MBS Custodian’s express  obligations under this Agreement and the other Repurchase Documents (including providing the  Seller’s Customer Information to Approved Investors).  The Agent agrees to maintain an  Information Security Program and to assess, manage and control risks relating to the security and  confidentiality of the Seller’s Customer Information pursuant to such program in the same  manner as the Agent does in respect of its own customers’ information, and shall implement the  standards relating to such risks in the manner set forth in the Interagency Guidelines Establishing  Standards for Safeguarding Company Customer Information set forth in 12 CFR Parts 30, 208,  211, 225, 263, 308, 364, 568 and 570.  Without limiting the scope of the foregoing sentence, the  Agent and the Buyers shall use at least the same physical and other security measures to protect  all of the Seller’s Customer Information in their possession or control as each of them uses for its  own customers’ confidential and proprietary information.      Section 25. Entire Agreement; Severability.         This Agreement supersedes any existing agreements between the parties containing  general terms and conditions for repurchase transactions.  This Agreement may not be amended,                                        107                                                                    Bodman_16842095_7 

 

   modified or supplemented except in accordance with the provisions of Section 22 and such  amendment, modification or supplement must be set forth in a writing signed by the parties  required to do so in accordance with Section 22.  Each provision and agreement herein shall be  treated as separate and independent from any other provision or agreement herein and shall be  enforceable notwithstanding the unenforceability of any such other provision or agreement.   Section 26. Non-assignability; Termination; Replacement of Buyers.           26.1. Limited Assignment.  Except with respect to any repurchase transaction, sale,  transfer, pledge or hypothecation by the Agent or any Buyer pursuant to Section 22.17, the rights  and obligations of the parties under this Agreement and under any Transaction shall not be  assigned by any party without the prior written consent of the other parties and any such  assignment without the prior written consent of the other parties shall be null and void.  Subject  to the foregoing, this Agreement and any Transactions shall bind and benefit the parties and their  respective successors and assigns.           26.2. Remedies Exception.  Section 26.1 shall not preclude a party from assigning,  charging or otherwise dealing with all or any part of its interest in any sum payable to it under  Section 18.           26.3. Agreement Termination.  This Agreement shall terminate, automatically and  without any requirement for notice, on the date after the Termination Date on which all  Obligations (other than contingent reimbursement or indemnification obligations as to which no  claim has been asserted) have been indefeasibly paid in full, provided, that the provisions of  Sections 6.4, 6.5, 7 and 20 shall survive the termination of this Agreement, provided further, that  this Agreement and any Open Transactions may be extended by mutual agreement of the Buyers,  the Agent and the Seller; and provided further, that no such party shall be obligated to agree to  such an extension.           26.4. Replacement of Buyers.                (a)   If any Buyer becomes a Defaulting Buyer hereunder, or any Buyer does  not consent to a modification or waiver of the terms of this Agreement or the other Facility  Papers requested by the Agent, or otherwise fails to give its consent to an action requested by the  Seller hereunder and, in each case, the Required Buyers have given their consent then, provided  no Default or Event of Default has occurred and is continuing, the Seller may, at its sole expense  and effort, upon notice to such Buyer and the Agent, require such Buyer to assign and delegate,  without recourse (in accordance with and subject to the restrictions set forth in Section 22.17) all  its interests, rights and obligations under this Agreement to an assignee (which assignee may be  another Buyer) that shall assume such obligations; provided, that (x) the Seller shall have  received the prior written consent of the Agent, which consent shall not be unreasonably  withheld and (y) such Buyer shall have received payment of an amount equal to the Repurchase  Price of all Transactions funded by it together with accrued Fees and all other amounts payable  to it hereunder, from the assignee (in the case of such Repurchase Price and Fees) and from the  Seller (in the case of all other amounts).  A Buyer shall not be required to make any such  assignment and delegation if, prior thereto, as a result of a waiver by such Buyer or otherwise,  the circumstances entitling the Seller to require such assignment and delegation cease to apply                                        108                                                                    Bodman_16842095_7 

 

                 (b)   The Agent shall reasonably cooperate in effectuating the replacement of   any Buyer under this Section 26.4 but at no time shall the Agent be obligated to initiate any such   replacement.      Section 27. Counterparts.          This Agreement may be executed in any number of counterparts, each of which   counterparts shall be deemed to be an original, and such counterparts shall constitute but one and   the same instrument.    Section 28. Governing Law, Jurisdiction and Venue.          THIS AGREEMENT (INCLUDING THIS CHOICE-OF-LAW PROVISION) AND   THE OTHER REPURCHASE DOCUMENTS SHALL BE GOVERNED BY AND   CONSTRUED AND ALL CONTROVERSIES AND DISPUTES ARISING UNDER, IN   CONNECTION WITH OR RELATING TO THIS AGREEMENT AND THE OTHER   REPURCHASE DOCUMENTS SHALL BE RESOLVED, IN ACCORDANCE WITH   THE LAWS OF THE STATE OF MICHIGAN AND THE UNITED STATES OF   AMERICA APPLICABLE TO CONTRACTS MADE AND TO BE WHOLLY   PERFORMED WITHIN SUCH STATE.  THE SELLER, THE AGENT AND THE   BUYERS EACH HEREBY IRREVOCABLY SUBMITS TO THE NONEXCLUSIVE   JURISDICTION AND VENUE OF THE UNITED STATES DISTRICT COURT FOR   THE EASTERN DISTRICT OF MICHIGAN OR, IF SUCH COURT DOES NOT HAVE   JURISDICTION, MICHIGAN STATE COURT SITTING IN DETROIT, FOR THE   PURPOSE OF ANY ACTION OR OTHER PROCEEDING ARISING UNDER, IN   CONNECTION WITH OR RELATING TO THE REPURCHASE DOCUMENTS OR   ANY RELATED TRANSACTION.  Seller irrevocably consents to the service of any and all   process in any such action or proceeding brought in any court in or of the State of Michigan by   the delivery of copies of such process to it at the applicable addresses specified on in Section 23    in a notice to the other parties that complies as to delivery with the terms of Section 23. Nothing   in this Section 28 shall affect the right of the Buyers and the Agent to serve process in any other   manner permitted by law or limit the right of the Buyers or the Agent (or any of them) to bring   any such action or proceeding against Seller or any of their property in the courts with subject   matter jurisdiction of any other jurisdiction. Seller irrevocably waives any objection to the laying   of venue of any such suit or proceeding in the above described courts.    Section 29. Waiver of Jury Trial.          EACH OF THE SELLER (IN ITS CAPACITY AS SELLER AND SERVICER),   THE BUYERS AND THE AGENT HEREBY (a) COVENANTS AND AGREES NOT TO   ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY A JURY, AND   (b) WAIVES ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY  SUCH RIGHT SHALL NOW OR HEREAFTER EXIST.  THIS WAIVER OF RIGHT TO  TRIAL BY JURY IS SEPARATELY GIVEN, KNOWINGLY AND VOLUNTARILY, BY  EACH OF THE SELLER, THE BUYERS AND THE AGENT, AND THIS WAIVER IS  INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE  AS TO WHICH THE RIGHT OF A JURY TRIAL WOULD OTHERWISE ACCRUE.                                          109                                                                     Bodman_16842095_7 

 

   THE AGENT IS HEREBY AUTHORIZED AND REQUESTED TO SUBMIT THIS  AGREEMENT TO ANY COURT HAVING JURISDICTION OVER THE SUBJECT  MATTER AND THE PARTIES HERETO, SO AS TO SERVE AS CONCLUSIVE  EVIDENCE OF THE FOREGOING WAIVER OF THE RIGHT TO JURY TRIAL.   FURTHER, THE SELLER HEREBY CERTIFIES THAT NO REPRESENTATIVE OR  AGENT OF THE BUYERS OR THE AGENT HAS REPRESENTED, EXPRESSLY OR  OTHERWISE, TO ANY STOCKHOLDER, DIRECTOR, OFFICER, AGENT OR  REPRESENTATIVE OF THE SELLER THAT THE BUYERS OR THE AGENT WILL  NOT SEEK TO ENFORCE THIS WAIVER OF RIGHT TO JURY TRIAL PROVISION.   Section 30. Relationship of the Parties.         This Agreement provides for the sale by the Seller and the purchase by the Buyers (acting  through their agent and representative, the Agent) of Eligible Loans and the obligation of the  Seller to repurchase them upon termination of each Transaction.  The relationship between the  Seller and the Buyers (and the Agent) is limited to that of seller and repurchaser on the one hand  and buyers and resellers (and the Agent as the Buyers’ agent and representative) on the other.   The provisions in this Agreement and the other Repurchase Documents for compliance with  financial covenants and delivery of financial statements are intended solely for the benefit of the  Buyers and the Agent, to protect the interests of the Buyers as buyers, including the Buyers’ and  the Agent’s interest in assuring repurchase of Purchased Loans at the termination of each  Transaction, and nothing contained in this Agreement or any of the other Repurchase Documents  shall be construed as permitting or obligating any Buyer or the Agent to act as a financial or  business advisor or consultant to the Seller, as permitting or obligating any Buyer or the Agent to  control the Seller or to conduct the Seller’s operations, as creating any fiduciary obligation on the  part of the Buyers or the Agent to the Seller, or as creating any joint venture, agency or other  relationship between the parties other than as explicitly and specifically stated in this Agreement.   The Seller acknowledges that it has had the opportunity to obtain the advice of experienced  counsel of its own choosing in connection with the negotiation and execution of this Agreement  and the other Repurchase Documents and to obtain the advice of such counsel with respect to all  matters contained in the Repurchase Documents including the provision for waiver of trial by  jury.  The Seller further acknowledges that it is experienced with respect to financial and credit  matters and has made its own independent decisions to apply to the Buyers and the Agent to  enter into this Agreement, and to execute and deliver this Agreement and the other Repurchase  Documents.   Section 31. No Waivers, Etc.         No express or implied waiver of any Event of Default by any party shall constitute a  waiver of any other Event of Default and no exercise of any remedy hereunder by any party shall  constitute a waiver of its right to exercise any other remedy hereunder.  No modification or  waiver of any provision of this Agreement and no consent by any party to a departure herefrom  shall be effective unless and until such shall be in writing and duly executed by the Seller and the  parties required to do so pursuant to Section 23.  Without limitation on any of the foregoing, the  failure to give a notice pursuant to Section 23 will not constitute a waiver of any right to do so at  a later date.  The rights and remedies of the Buyers hereunder shall be cumulative and not  exclusive of any rights and remedies that the Buyers would otherwise have.  No failure or delay                                        110                                                                    Bodman_16842095_7 

 

     on the part of the Buyers in exercising any right, power or privilege hereunder shall operate as a   waiver thereof, nor shall any single or partial exercise of any right, power or privilege hereunder   preclude any other or further exercise thereof or the exercise of any other right, power or   privilege.    Section 32. Use of Employee Plan Assets.            32.1. Prohibited Transactions.  If assets of an employee benefit plan subject to any   provision of ERISA are intended to be used by any party hereto (the “Plan Party”) in a  Transaction, the Plan Party shall so notify the other parties prior to the Transaction.  The Plan  Party shall represent in writing to the other parties that the Transaction does not constitute a  prohibited transaction under ERISA or is otherwise exempt therefrom, and the other parties may  proceed in reliance thereon but shall not be required so to proceed.            32.2. Audited Financial Statements Required.  Subject to the last sentence of Section   32.1, any such Transaction shall proceed only if the Seller furnishes or has furnished to the   Agent its most recent available audited statement of its financial condition and its most recent   subsequent unaudited statement of its financial condition.            32.3. Representations.  By entering into a Transaction pursuant to this Section 32,   the Seller shall be deemed (a) to represent to the Buyers and the Agent that since the date of the   Seller’s latest such financial statements, there has been no material adverse change in the Seller’s   financial condition that the Seller has not disclosed to the Agent, and (b) to agree to provide the   Agent with future audited and unaudited statements of its financial condition as they are issued,   so long as it is a Seller in any Open Transaction involving a Plan Party.    Section 33. Intent.            33.1. Transactions are Repurchase Agreements  and Securities Contracts.  The   parties intend and acknowledge that each Transaction is a “repurchase agreement” and a “master   netting agreement” as such terms are defined in Section 101 of the Bankruptcy Code (except   insofar as the type of Mortgage Loans subject to such Transaction or the term of such   Transaction would render such definition inapplicable), and a “securities contract” as that term is   defined in Section 741 of the Bankruptcy Code (except insofar as the type of assets subject to   such Transaction would render such definition inapplicable).  This Agreement also constitutes a   “netting contract” as defined in and subject to Title IV of the Federal Deposit Insurance   Corporation Improvement Act of 1991 (“FDICIA”) and each payment entitlement and payment   obligation under any Transaction hereunder shall constitute a “covered contractual payment   entitlement” or “covered contractual payment obligation,” respectively, as defined in and subject   to FDICIA (except insofar as any or all of the parties is not a “financial institution” as that term   is defined in FDICIA).  The Seller hereby agrees that it shall not challenge the characterization   of this Agreement as a “repurchase agreement” as that term is defined in Section 101 of the   Bankruptcy Code, or as a “securities contract” as that term is defined in Section 741 of the   Bankruptcy Code in any dispute or proceeding.            33.2. Contractual Rights, Etc.Any party’s right to liquidate Mortgage Loans   delivered to it in connection with Transactions hereunder or to exercise any other remedies                                         111                                                                     Bodman_16842095_7 

 

   pursuant to Section 18 is a contractual right to liquidate, terminate or accelerate such Transaction  as described in Sections 555, 559 and 561 of the Bankruptcy Code.           33.3. FDIA.  If a party hereto is an “insured depository institution,” as such term is  defined in the Federal Deposit Insurance Act, as amended (“FDIA”), then each Transaction  hereunder is a “qualified financial contract,” as that term is defined in FDIA and any rules,  orders or policy statements thereunder (except insofar as the type of assets subject to such  Transaction would render such definition inapplicable).           33.4. Master Netting Agreement.  It is understood and agreed that this Agreement  constitutes a “master netting agreement” as that term is defined in Section 101 of the Bankruptcy  Code, and that a party’s right to cause the termination, liquidation, or acceleration of, or to offset  net termination values, payment amounts or other transfer obligations arising under or in  connection with, this Agreement or any Transaction is a contractual right to cause the  termination, liquidation, or acceleration of, or to offset net termination values, payment amounts  or other transfer obligations arising under or in connection with, this Agreement or any  Transaction as described in Section 561 of the Bankruptcy Code.   Section 34. Disclosure Relating to Certain Federal Protections.   The parties acknowledge that they have been advised that:           34.1. Parties not Protected by SIPA or Insured by FDIC or NCUSIF.  In the case of  Transactions in which one of the parties is a broker or dealer registered with the Securities and  Exchange Commission (“SEC”) under Section 15 of the Securities Exchange Act of 1934 (“1934  Act”), the Securities Investor Protection Corporation has taken the position that the provisions of  SIPA do not protect the other party with respect to any Transaction hereunder.           34.2. SIPA Does Not Protect Government Securities Broker or Dealer Counterparty.   In the case of Transactions in which one of the parties is a government securities broker or a  government securities dealer registered with the SEC under Section 15C of the 1934 Act, SIPA  will not provide protection to the other party with respect to any Transaction hereunder.           34.3. Transaction Funds Are Not Insured Deposits.  In the case of Transactions in  which one of the parties is a financial institution, funds held by such financial institution  pursuant to a Transaction hereunder are not a deposit and therefore are not insured by the Federal  Deposit Insurance Corporation (through either the Bank Insurance Fund or the Savings  Association Insurance Fund) or the National Credit Union Share Insurance Fund, as applicable.   Section 35. USA Patriot Act Notification.          Pursuant to Section 326 of the USA Patriot Act, the Agent and the Buyers hereby notify  the Seller that if they or any of their Subsidiaries open an account, including any loan, deposit  account, treasury management account, or other extension of credit with Agent or any Buyer, the  Agent or the applicable Buyer will request the applicable Person’s name, tax identification  number, business address and other information necessary to identify such Person (and may  request such Person’s organizational documents or other identifying documents) to the extent  necessary for the Agent and the applicable Buyer to comply with the USA Patriot Act.                                         112                                                                    Bodman_16842095_7 

 

     Section 36. Waiver of Fees, Costs and Expenses.            Agent, Custodian, Approved MBS Custodian and each Buyer shall have the right, in   their sole discretion, at any time and from time to time, to waive or reduce (but not increase) any   fees (including the Facility Fee, the Agent’s Fee, and Custodian Fees) owing to it by the Seller,   and/or any costs and expenses (including without limitation attorney's fees and third party audit   fees) incurred by Agent, Custodian, Approved MBS Custodian or such Buyer for which the   Seller is obligated to reimburse Agent, Custodian, Approved MBS Custodian or such Buyer.    Custodian and each Buyer shall promptly inform the Agent of any waiver of all or any portion of   the Facility Fee, Custodian Fees, account-related charges or fees, or any other fees, costs or   expenses (including without limitation attorney's fees and third party audit fees) owing by Seller   to such Buyer or Custodian under this Agreement.  Such Buyer shall notify Seller and Agent of   any waiver or reduction in the amount of the Facility Fee or other costs and expenses payable by   the Seller to such Buyer.  The waivers and adjustments identified in such notice shall become   effective on a date determined by Agent (but in any event shall not become effective prior to the   date such notice is received). The Seller hereby acknowledges and agrees that nothing in this   Section 36 shall obligate any Buyer to grant any such waiver or reduction.    Section 37. Amended and Restated.            This Agreement amends, restates, replaces and supersedes in its entirety the Amended   and Restated Master Repurchase Agreement between Seller, Comerica Bank, as agent, lead   arranger and a buyer, and certain other buyers dated September 4, 2015 (as amended or   otherwise modified from time to time, the “Prior Agreement”); provided, however, nothing   contained herein shall impair the liens, security interests and other rights established or continued   by the Prior Agreement, which liens, security interests and other rights shall continue in full   force and effect. All “Purchased Loans” (as defined in the Prior Agreement) (the “Existing   Purchased Loans”), shall be Purchased Loans under this Agreement as if originally funded under  this Agreement so long as such Existing Purchased Loans meet all of the requirements for  eligibility and inclusion under this Agreement, provided, however, (a) the determination of the  Purchase Date under paragraph 9 of Schedule DQ under this Agreement shall be calculated  based on the original Purchase Date as determined under the Prior Agreement, and (b) such  Existing Purchased Loans shall be deemed to comply with the requirement of paragraph 8 of  Schedule EL under this Agreement if the date of each underlying Mortgage Note for such  Existing Purchased Loans was not earlier than 30 days prior to the date such Existing Purchased   Loan was purchased under the Prior Agreement.  On the Effective Date, each Buyer shall (i)  have Committed Sums equal to the applicable amounts set forth in Schedule BC hereto and (ii)  have funded its Funding Share of all Transactions (and participation in Swing Line Transactions)  outstanding on the Effective Date. To facilitate the foregoing, each Buyer which as a result of the  adjustments of Committed Sums and Funding Shares evidenced by Schedule BC hereto is to  have a greater principal amount of the Transactions outstanding than such Buyer had outstanding  under the Prior Agreement immediately prior to the Effective Date, shall deliver to the Agent  immediately available funds to cover such Transactions (and the Agent shall, to the extent of the  funds so received, disburse funds to each Buyer which, as a result of the adjustment of the  Funding Shares, is to have a lesser principal amount of Transactions outstanding than such Buyer  had under the Prior Agreement).  The Buyers agree that any Price Differential, Facility Fees and  other fees accrued under the Prior Agreement shall constitute the property of the Buyers which                                         113                                                                     Bodman_16842095_7 

 

     were parties to the Prior Agreement and shall be distributed (to the extent received from the  Seller) to such Buyers on the basis of the Funding Shares in effect under the Prior Agreement.  Furthermore, it is acknowledged and agreed that all fees paid under the Prior Agreement shall  not be recalculated, redistributed or reallocated by Agent among the Buyers.             The remainder of this page is intentionally blank; signature pages follow.                                          114                                                                     Bodman_16842095_7 

 

   EXECUTED as of the Effective Date.                                           PULTE MORTGAGE LLC                                          as Seller and Servicer                                                                                                                               By:  \s\ Ralph Nowicki                                                           Name:  Ralph Nowicki                                                             Title:  SVP/CFO                                                                                                                                                                                                                                Bodman_16842095_7 

 

                COMERICA BANK  as Agent, Lead Arranger and a Buyer       By:  \s\ Arthur Shafer                  Name:  Art Shafer                       Title:  Senior Vice President                                                Bodman_16842095_7 

 

                BMO HARRIS BANK N.A.      By:  \s\ Matt Witt                      Name:  Matt Witt                        Title:  Assistant VP                                                     Bodman_16842095_7 

 

                               TRUIST BANK, formerly known as  BRANCH BANKING AND TRUST  COMPANY      By:  \s\ Chad Cain                      Name:  Chad Cain                        Title:  VP                                                            Bodman_16842095_7 

 

                                      EXHIBIT A                           To Master Repurchase Agreement                                                                 FORM OF REQUEST/CONFIRMATION    To:                                       From:   Comerica Bank, Agent                      Pulte Mortgage LLC    Comerica Bank Tower                          1717 Main Street                             4th Floor                                    Dallas, Texas 75201                          Attention: Trey Worley                    Attention:                             Phone: (214) 462-4279                     Phone:                                 Fax:  (214) 462-4280                      Fax:                                   Email:  tworley@comerica.com              Email:                                    And       Comerica Bank, Agent   411 W. Lafayette  Detroit, MI 48226   Attention: Sandy Fields   Telephone: (313) 222-5265   Fax: (313) 222-5272    Email: corpfinadmin@comerica.com            Please refer to the Second Amended and Restated Master Repurchase Agreement dated   as of July 30, 2020 among Pulte Mortgage LLC (the “Seller”), the buyers from time to time party   thereto (the “Buyers”) and Comerica Bank, as agent to the Buyers (in such capacity, the “Agent”)   (as it may have been or may hereafter be supplemented, amended, restated or otherwise modified   from time to time, the “Current Repurchase Agreement”).  Any term defined in the Current   Repurchase Agreement and used in this request shall have the meaning given to it in the Current   Repurchase Agreement.          The Seller currently qualifies under the Current Repurchase Agreement for, and hereby   requests, purchases of Eligible Loans as set forth below (the “Requested Purchases”) to be made   on the following Purchase Date:  ____________________, 202_____ (which must be a Business   Day).                                      Regular Transaction Swing Line Transaction             Previous Day Aggregate                                   Outstanding Purchase Price              Purchase Price Advanced                                  (Eligible Loans)                                         A-1                                                                     Bodman_16842095_7 

 

              Repurchase Price Paid                                     Aggregate Outstanding Purchase                           Price       After giving effect to the Requested Purchases, the Aggregate Outstanding Purchase Price will   not exceed the Maximum Aggregate Commitment.          The Seller has delivered to the Custodian today multiple Mortgage Loan Transmission   Files.  All Mortgage Loans listed in such Mortgage Loan Transmission Files and included in the   foregoing calculations (the “Purchased Loans”) are Eligible Loans.  For each of the Purchased   Loans the representations set forth in Section 15.3 and 15.4 of the Current Repurchase   Agreement are true and correct.          Pursuant to the terms of the Custody Agreement and acknowledging and agreeing that   new value, as that term is used in the Michigan Uniform Commercial Code, has been given in   reliance thereon, the Seller hereby sells, negotiates and transfers to the Buyers the Mortgage   Loans listed on the attached Schedule of Mortgage Loans.  The Seller acknowledges that the   Agent and the Buyers will rely on the truth of each statement in this Request/Confirmation and   the Mortgage Loan Transmission Files in purchasing the Purchased Loans referred to herein.          The Purchase Prices for the Purchased Loans should be deposited in the Funding Account  to be accessed and disbursed as provided in, and subject to the terms and conditions of, the  Current Repurchase Agreement.           No Default has occurred under the Repurchase Documents that has not been cured by the   Seller or declared in writing by the Agent to have been waived in accordance with Section 22,   and no Event of Default has occurred under the Repurchase Documents that the Agent has not   declared in writing to have been waived (in accordance with Section 22).  There has been no   material adverse change in any of the Central Elements in respect of the Seller since the date of   the Seller’s most recent annual audited Financial Statements that have been delivered to the   Agent and the Buyers.          All items that the Seller is required to furnish to the Buyers, the Agent or the Custodian in   connection with the Requested Purchases have been delivered in all respects as required by the   Current Repurchase Agreement and the other Repurchase Documents.  All documentation   described or referred to in the Mortgage Loan Transmission Files conform in all material   respects with all applicable requirements of the Current Repurchase Agreement and the other   Repurchase Documents.          The Seller hereby warrants and represents to the Buyers and the Agent that none of the   Purchased Loans has been sold to any Person other than the Buyers (except for Purchased Loans   previously sold to the Parent under the Parent Repurchase Agreement, provided that the Parent   Custodian has released all Liens and other right, title and interest in and to said Purchased Loans   in connection with such repurchase), is pledged to any Person other than the Agent, for the   benefit of itself and the Buyers, or supports any borrowing or repurchase agreement funding   other than purchases under the Current Repurchase Agreement.                                           A-2                                                                     Bodman_16842095_7 

 

         The undersigned Seller Representative hereby certifies that all of the Seller’s  representations and warranties (a) in the Current Repurchase Agreement and all of the other  Repurchase Documents (except only to the extent that (i) such a representation or warranty  speaks to a specific date or (ii) the facts on which a representation or warranty is based have been  changed by transactions or conditions contemplated or expressly permitted by the Repurchase  Documents) and (b) in this request, are true and correct in all material respects on the date of this  request; and that conditions to the Requested Purchases set forth in the Current Repurchase  Agreement have been or will be satisfied contemporaneously herewith.                                                                                              PULTE MORTGAGE LLC                                          By:  ________________________                                          Name:  ________________________                                          Title:  ________________________                                           A-3                                                                    Bodman_16842095_7 

 

                                      EXHIBIT B                           To Master Repurchase Agreement                                                      FORM OF OFFICER’S CERTIFICATE WITH COMPUTATIONS               TO SHOW COMPLIANCE OR NON-COMPLIANCE WITH                        CERTAIN FINANCIAL COVENANTS                                                                      OFFICER’S CERTIFICATE   AGENT:      Comerica Bank   SELLER:     Pulte Mortgage LLC    SUBJECT PERIOD:                ended         , 202__    DATE:                   , 202__          This certificate is delivered to the Agent and the Buyers under the Second Amended and   Restated Master Repurchase Agreement dated as of July 30, 2020 (as supplemented, amended or   restated from time to time, the “Current Repurchase Agreement”), among the Seller, the Agent   and the Buyers from time to time party thereto.  Unless they are otherwise defined in this   request, terms defined in the Current Repurchase Agreement have the same meanings here as   there.          The undersigned officer of the Seller certifies to the Agent that on the date of this   certificate that:          1.    The undersigned is an incumbent officer of the Seller, holding the title stated   below the undersigned’s signature below.          2.    The Seller’s Financial Statements that are attached to this certificate were   prepared in accordance with GAAP (except that interim, i.e. other than annual, Financial   Statements exclude notes to Financial Statements and statements of changes to stockholders’   equity and are subject to year-end adjustments) and (subject to the aforesaid proviso as to interim   Financial Statements) present fairly the Seller’s financial condition and results of operations as   of _________________ for that month (the “Subject Period”) and for the year to that date.          3.    The undersigned officer of the Seller supervised a review of the Seller’s activities   during the Subject Period in respect of the following matters and has determined the following:             (a)      except to the extent that a representation or warranty speaks to a specific         date, the representations and warranties of the Seller in the Current Repurchase         Agreement and the other Repurchase Documents are true and correct in all material         respects, other than the changes, if any, described on the attached Annex A;              (b)      no event has occurred that could reasonably be expected to have a         materially adverse effect on any of the Central Elements of the Seller;                                         B-1                                                                     Bodman_16842095_7 

 

                    (c)      the Seller has complied with all of its obligations under the Repurchase   Documents, other than the deviations, if any, described on the attached Annex A;        (d)     no Default or Event of Default has occurred and is continuing, other than  those Events of Default and/or Defaults, if any, described on the attached Annex A; and        (e)      compliance by the Seller with the financial covenants in Section 16.18, of   the Current Repurchase Agreement is accurately calculated on the attached Annex A.                                                ____________________                                                                                                                                                     By:__________________________                                              Name:                                                                        Title:                                                                                                          B-2                                                               Bodman_16842095_7 

 

                       ANNEX A TO OFFICER’S CERTIFICATE         1.    Describe changes from representations and warranties, if any — clause 3(a) of  attached Officer’s Certificate — if none, so state:          2.    Describe deviations from compliance with obligations, if any — clause 3(b) of  attached Officer’s Certificate — if none, so state:          3.    Describe Defaults or Events of Default, if any — clause 3(c) of attached Officer’s  Certificate — if none, so state:          4.    Calculate compliance with covenants in Section 16.18 of Current Repurchase  Agreement:               (a)   Adjusted Tangible Net Worth.  The Seller’s Adjusted Tangible Net        Worth as of the last day of the month ended __________ is $____________________        (the minimum under Section 16.18(a) is $70,000,000.)                                    Adjusted Tangible Net Worth           Consolidated Assets:                          $ _________________                                                                        Minus Total Liabilities (excluding Qualified $ _________________                Subordinated Debt):                                      Minus Intangible Assets (including Capitalized $ _________________                Servicing Rights):                                       Minus Receivables due from Affiliates   $ _________________                                                                        Minus Loans held for Investment and REO, $ _________________                Net of Reserves                                                ADJUSTED TANGIBLE NET             $ _________________                      WORTH:                                                                 Annex A-1 to Ex B                                                                    Bodman_16842095_7 

 

                      (b)   Adjusted Tangible Net Worth Ratio. The ratio of the Liabilities to  Adjusted Tangible Net Worth Ratio as of the last day of the month ended  ________________________ is ___ to 1.0 (the maximum ratio under Section 16.18(b) is  8.0:1.0).                                   Leverage Ratio      Total Liabilities (excluding Qualified Subordinated Debt): $ ____________                                                            Adjusted Tangible Net Worth:                      $ ____________                                                                  LEVERAGE RATIO:                                   ___ to 1.0                                                                              (c)   Liquidity.  The Seller’s Liquidity, as of the last day of the month ended  __________________, 202__ was $_____________ (the minimum under Section  16.18(c) is $40,000,000).                                      Liquidity      Unencumbered cash and cash equivalents: $ _______________                                               Plus Unused availability against Purchased      Loans (Purchase Value – Purchase Price): $ _______________                                                     LIQUIDITY:                     $ _______________                       (d)   Net Income.  As of the last day of the month ended ______________, the  Seller’s Net Income for the 12 month period then ending was $______________ (the  minimum under Section 16.18(d) is $1).                             Annex A-2 to Ex B                                                              Bodman_16842095_7 

 

                                    EXHIBIT C                          To Master Repurchase Agreement                                                          List of Subsidiaries of the Seller as of the Effective Date          Subsidiary     Place of organization   States where        The Seller’s                                         qualified as a foreign percentage of capital                                             organization       stock or equity                                                                  ownership  PCIC Corporation   Michigan                  California           100%                                             Massachusetts                                               Michigan                                               New York                                             North Carolina                                                 Ohio                                              Pennsylvania                                             South Carolina                                                Texas                                               Virginia                                                                                                                                             C-1                                                                    Bodman_16842095_7 

 

                                      EXHIBIT D                           To Master Repurchase Agreement                                                       FORM OF CORPORATION TAX TREATMENT CERTIFICATE          Reference is hereby made to the Second Amended and Restated Master Repurchase   Agreement dated as of July 30, 2020 (as supplemented, amended or restated, supplemented from   time to time, the “Agreement”), among Pulte Mortgage LLC (the “Seller”), Comerica Bank   (“Comerica”), as a buyer and as agent for the other buyers party thereto from time to time (the  “Agent”) and such other buyers (collectively with Comerica, the “Buyers”).  Pursuant to the   provisions of Article 7 of the Agreement, the undersigned hereby certifies that:          1.    It is (one must be checked)                 ___ a natural individual person                ___  treated as a corporation for U.S. federal income tax purposes                 ___ disregarded for federal income tax purposes (in which case a copy of this                   Corporation Tax Treatment Certificate is attached in respect of its sole                   beneficial owner)                 ___  treated as a partnership for U.S. federal income tax purposes.          2.    It is the beneficial owner of amounts received pursuant to the Agreement.          3.    It is not a bank, as such term is used in Section 881(c)(3)(A) of the Internal   Revenue Code of 1986, as amended (the “Internal Revenue Code”).          4.    It is not a 10-percent stockholder of the Seller within the meaning of Section   871(h)(3) or 881(c)(3)(B) of the Internal Revenue Code.          5.    It is not a controlled foreign corporation that is related to the Seller within the   meaning of Section 881(c)(3)(C) of the Internal Revenue Code.          6.    Amounts paid to it under the Repurchase Documents are not effectively   connected with its conduct of a trade or business in the United States.                                              __________________________________                                                                                                                                       By:  ____________________________                                             Name:  ____________________________                                             Title:  ____________________________                                                                                          Date:  _________________                                         D-1                                                                     Bodman_16842095_7 

 

                                      EXHIBIT E                           To Master Repurchase Agreement                        FORM OF ASSIGNMENT AND ASSUMPTION                                                                    ASSIGNMENT AND ASSUMPTION          This Assignment and Assumption (the “Assignment and Assumption”) is dated as of the   Effective Date set forth below and is entered into by and between [Insert name of Assignor] (the   “Assignor”) and [Insert name of Assignee] (the “Assignee”).  Capitalized terms used but not   defined herein shall have the meanings given to them in the Master Repurchase Agreement   identified below (as amended, the “Repurchase Agreement”), receipt of a copy of which is   hereby acknowledged by the Assignee.  The Standard Terms and Conditions set forth in Annex 1   attached hereto are hereby agreed to and incorporated herein by reference and made a part of this   Assignment and Assumption as if set forth herein in full.          For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the   Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor,   subject to and in accordance with the Standard Terms and Conditions and the Repurchase   Agreement, as of the Effective Date inserted by the Agent as contemplated below, (i) all of the   Assignor’s rights and obligations in its capacity as a Buyer under the Repurchase Agreement and   any other documents or instruments delivered pursuant thereto to the extent related to the amount   and percentage interest identified below of all of such outstanding rights and obligations of the   Assignor under the respective facilities identified below (including any Swing Line Transactions   included in such facilities) and (ii) to the extent permitted to be assigned under applicable law,   all claims, suits, causes of action and any other right of the Assignor (in its capacity as a Buyer)   against any Person, whether known or unknown, arising under or in connection with the   Repurchase Agreement, any other documents or instruments delivered pursuant thereto or the   Transactions governed thereby or in any way based on or related to any of the foregoing,   including Purchased Loans, contract claims, tort claims, malpractice claims, statutory claims and   all other claims at law or in equity related to the undivided ownership interest in Purchased   Loans and the other rights and obligations sold and assigned pursuant to clause (i) above (the   undivided ownership interest in Purchased Loans and all other rights and obligations sold and   assigned pursuant to clauses (i) and (ii) above being referred to herein collectively as the   “Assigned Interest”).  Such sale and assignment is without recourse to the Assignor and, except  as expressly provided in this Assignment and Assumption, without representation or warranty by  the Assignor.    1.    Assignor:                                     2.    Assignee:                                                                                                             [and is a Buyer Affiliate of [identify Buyer]]    3.    Seller:        ____________________                                         E-1                                                                     Bodman_16842095_7 

 

   4.    Agent:         Comerica Bank, as the agent and representative of the Buyers under  the Repurchase Agreement.   5.    Repurchase Agreement:  The Second Amended and Restated Master Repurchase  Agreement dated as of July 30, 2020 among Pulte Mortgage LLC and its affiliates (collectively,  the “Seller”), Comerica Bank (“Comerica”), as a buyer and as agent for the other buyers party  thereto from time to time (the “Agent”) and such other buyers (collectively with Comerica, the  “Buyers”).   6.    Assigned Interest:      Aggregate Amount of            Amount of            Percentage Assigned of  Commitment/Transactions    Commitment/Transactions    Commitment/Transactions        for all Buyers               Assigned  $                         $                          $     Effective Date:  _______________ ____, 202____ [TO BE INSERTED BY THE AGENT AND  WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE  REGISTER THEREFOR.]   The terms set forth in this Assignment and Assumption are hereby agreed to:                                             ASSIGNOR                                                                                        [NAME OF ASSIGNOR]                                                                                                                                    By:  _____________________________                                            Title:  _____________________________                                                                                          ASSIGNEE                                                                                        [NAME OF ASSIGNEE]                                                                                                                                    By:  _____________________________                                            Title:  _____________________________                                         E-2                                                                    Bodman_16842095_7 

 

   [Consented to and] Accepted:    Comerica Bank, as Agent      By:                                   Title:                                 [Consented to:]    [NAME OF RELEVANT PARTY]      By:                                   Title:                                                                       E-3                                                                    Bodman_16842095_7 

 

                                             ANNEX 1                                                  STANDARD TERMS AND CONDITIONS FOR                   ASSIGNMENT AND ASSUMPTION    1.    Representations and Warranties.          1.1   Assignor.  The Assignor (a) represents and warrants that (i) it is the legal   and beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear   of any lien, encumbrance or other adverse claim other than Seller’s obligation to   repurchase the relevant Purchased Loans and (iii) it has full power and authority, and has   taken all action necessary, to execute and deliver this Assignment and Assumption and to   consummate the transactions contemplated hereby; and (b) assumes no responsibility   with respect to (i) any statements, warranties or representations made in or in connection  with the Repurchase Agreement or any other Repurchase Documents, (ii) the execution,   legality, validity, enforceability, genuineness, sufficiency or value of the Repurchase   Documents or any Transactions thereunder, (iii) the financial condition of the Seller, any   of its Subsidiaries or Affiliates or any other Person obligated in respect of any   Repurchase Documents or (iv) the performance or observance by the Seller, any of its   Subsidiaries or Affiliates or any other Person of any of their respective obligations under   any Repurchase Document.                  1.2.  Assignee.  The Assignee (a) represents and warrants that (i) it has full   power and authority, and has taken all action necessary, to execute and deliver this   Assignment and Assumption and to consummate the transactions contemplated hereby   and to become a Buyer under the Repurchase Agreement, (ii) it satisfies the  requirements, if any, specified in the Repurchase Agreement that are required to be  satisfied by it in order to acquire the Assigned Interest and become a Buyer, (iii) from  and after the Effective Date, it shall be bound by the provisions of the Repurchase  Agreement as a Buyer thereunder and, to the extent of the Assigned Interest, shall have  the obligations of a Buyer thereunder, (iv) it has received a copy of the Repurchase  Agreement, together with copies of the most recent financial statements referred to in  Section 15.2(f) thereof or delivered pursuant to Section 16.3 thereof, as applicable, and   such other documents and information as it has deemed appropriate to make its own   credit analysis and decision to enter into this Assignment and Assumption and to   purchase the Assigned Interest on the basis of which it has made such analysis and   decision independently and without reliance on the Agent, the assignor or any other  Buyer, and (v) if it is a Person that is organized under the Legal Requirements of any  jurisdiction other than the United States of America or any State thereof, attached to this  Assignment and Assumption is any documentation required to be delivered by it pursuant  to the terms of the Repurchase Agreement, duly completed and executed by the Assignee;  and (b) agrees that (i) it will, independently and without reliance on the Agent, the  Assignor or any other Buyer, and based on such documents and information as it shall  deem appropriate at the time, continue to make its own credit decisions in taking or not  taking action under the Repurchase Documents, and (ii) it will perform in accordance                             Annex 1-1 to Ex E                                                               Bodman_16842095_7 

 

         with their terms all of the obligations that by the terms of the Repurchase Documents are        required to be performed by it as a Buyer.                      2.    Payments.  From and after the Effective Date, the Agent shall make all payments  in respect of the Assigned Interest (including payments of Repurchase Price, Price Differential,  fees and other amounts) to the Assignor for amounts that have accrued to but excluding the  Effective Date and to the Assignee for amounts that have accrued from and after the Effective  Date.         3.    General Provisions.  This Assignment and Assumption shall be binding upon, and  inure to the benefit of, the parties hereto and their respective successors and assigns.  This  Assignment and Assumption may be executed in any number of counterparts, which together  shall constitute one instrument.  Delivery of an executed counterpart of a signature page of this  Assignment and Assumption by telecopy shall be effective as delivery of a manually executed  counterpart of this Assignment and Assumption.  This Assignment and Assumption shall be  governed by, and construed in accordance with, the law of the State of Michigan.                                            Annex 1-2 to Ex E                                                                    Bodman_16842095_7 

 

                                             EXHIBIT F                                                                                              REPURCHASE / INDEMNIFICATION REPORT                                                                                 COMPANY NAME: Pulte Mortgage LLC                                                                                     DATE:  _______________________                                                    I.  Repurchase / Indemnification Issues Exposure with All Investors:           Repurchases                    UPB              # of Loans     Actual or Estimated                                                                              Losses  Open repurchase requests as of                                                   now  Open repurchases that are being                                                  contested  Repurchases settled in 202___                                                      Repurchases settled YTD in                                                       202___      Loan Loss Reserve balance as of period PRIOR to date of                  Financial Statements  Provision (from P & L) for loan losses for period of                     Financial Statements  Loan Loss Reserve settlements and transfers for the period of            Financial Statements  Loan Loss Reserve balance as of period of Financial                      Statements    II.  Loans Held for Investment Portfolio Detail as of:  _________________           LHFI              Unpaid Principal      Allowances for Loan      Net Book Value                               Balance                 Losses  1st Lien Performing                                                              2nd Lien Performing                                                              1st Lien Delinquent                                                              2nd Lien Delinquent                                                                 Total Portfolio                                                                 III.  REO Portfolio as of:   _________________        # of Properties           Cost Basis          Reserves / Write Downs       Net Book Value                                                                                                                                                                                                                                 F-1                                                                                    Bodman_16842095_7 

 

       IN WITNESS WHEREOF, the undersigned has hereunto signed his/her name on  _____________________, 202___.                                             PULTE MORTGAGE LLC                                             By:                                                                             Its:                                                                         F-2                                                                    Bodman_16842095_7 

 

                                      EXHIBIT G                           To Master Repurchase Agreement                                             FORM OF REPURCHASE SETTLEMENT ACCOUNT DISBURSEMENT REQUEST        To:                                       From:   Comerica Bank, Agent                      Pulte Mortgage LLC    Comerica Bank Tower                          1717 Main Street                             4th Floor                                    Dallas, Texas 75201                          Attention: Trey Worley                    Attention:                             Phone: (214) 462-4279                     Phone:                                 Fax:  (214) 462-4280                      Fax:                                   Email:  tworley@comerica.com              Email:                                    And       Comerica Bank, Agent   411 W. Lafayette  Detroit, MI 48226   Attention: Sandy Fields   Telephone: (313) 222-5265   Fax: (313) 222-5272    Email: corpfinadmin@comerica.com            Please refer to the Second Amended and Restated Master Repurchase Agreement dated   as of _______________, 2020 among Pulte Mortgage LLC (the “Seller”), the buyers from time  to time party thereto (the “Buyers”) and Comerica Bank, as agent to the Buyers (in such capacity,  the “Agent”) (as it may have been or may hereafter be supplemented, amended, restated or  otherwise modified from time to time, the “Current Repurchase Agreement”).  Any term defined  in the Current Repurchase Agreement and used in this request shall have the meaning given to it  in the Current Repurchase Agreement.         Seller hereby represents and warrants to Agent that the amounts and sources of the funds  currently in the Repurchase Settlement Account are set forth on the spreadsheet attached as  Annex 1 hereto.          Pursuant to Section 3.7 of the Current Repurchase Agreement, Seller hereby requests that  Agent disburse the funds in the Repurchase Settlement Account in accordance with the  instructions attached as Annex 2 hereto.                                          G-1                                                                     Bodman_16842095_7 

 

           Seller represents and warrants to Agent that all of the conditions to disbursement set forth   in Section 3.7 of the Current Repurchase Agreement have been satisfied for this Repurchase   Settlement Account Disbursement Request.           Without limiting the foregoing, (i) no Default has occurred unless it has been either cured   by the Seller or waived in writing by the Agent (acting with the requisite consent of the Buyers   as provided in this Agreement), (ii) no Event of Default has occurred unless it has been either   cured by the Seller or waived in writing by the Agent (acting with the requisite consent of the   Buyers as provided in this Agreement), (iii) no Margin Deficit exists that would not be   eliminated by disbursements in accordance with such Repurchase Settlement Account   Disbursement Request, and (iv) no Default or Event of Default or Margin Deficit will result from   the making of the disbursements requested in such Repurchase Settlement Account   Disbursement Request. There has been no material adverse change in any of the Central   Elements in respect of the Seller since the date of the Seller’s most recent annual audited   Financial Statements that have been delivered to the Agent and the Buyers.         The undersigned Seller Representative hereby certifies that all of the Seller’s  representations and warranties (a) in the Current Repurchase Agreement and all of the other  Repurchase Documents (except only to the extent that (i) such a representation or warranty  speaks to a specific date or (ii) the facts on which a representation or warranty is based have been  changed by transactions or conditions contemplated or expressly permitted by the Repurchase  Documents) and (b) in this request, are true and correct in all material respects on the date of this  request.                                               PULTE MORTGAGE LLC                                           By:  ________________________                                           Name:  ______________________                                           Title:  _______________________                                             G-2                                                                     Bodman_16842095_7 

 

                             ANNEX 1   AMOUNTS AND SOURCES OF FUNDS                                Annex 1-1 to Exhibit G                                               Bodman_16842095_7 

 

                           ANNEX 2   DISBURSEMENT INSTRUCTIONS          Annex 2-1 to Exhibit G                                             Bodman_16842095_7 

 

                                                          SCHEDULE AI                                 APPROVED INVESTORS LIST                                                                                                                                           FHLMC – Federal Home Loan Mortgage Corporation (Freddie Mac)        FNMA – Federal National Mortgage Association (Fannie Mae)                                                                      GNMA – Government National Mortgage Association (Ginnie Mae) –  Current Investor                                                    GNMA – Government National Mortgage Association (Ginnie Mae) –  Old Citicorp Pools                                                                                                                               Parent                                                                    American International  AIG (formerly Connective)                                         Group, Inc.  Alliant Credit Union                                                Ally Bank                                                         Ally Financial Inc.  Bank of America Correspondent Lending Division                    Bank of America Corporation  Bank of America Mortgage                                          Bank of America Corporation                                                                    Bank of New York Mellon  Bank of New York Mellon                                           Corp.  Branch Banking & Trust (BB&T)                                     Truist Financial Corporation  Carrington Mortgage Services                                        Chase Financial Corporation                                       JPMorgan Chase & Co.  Chase Manhattan Mortgage Corporation                              JPMorgan Chase & Co.  CMG Mortgage Inc.                                                   Citicorp Mortgage, Inc.                                           Citigroup Inc.                                                                    PNC Financial Services  Fidelity Bankshares, Inc.                                         Group, Inc.  Fifth Third Bank                                                    GMAC Mortgage LLC                                                 Ally Financial Inc.  Morgan Stanley (Dealer)                                             Mr. Cooper                                                          NASA Federal Credit Union                                           Northpointe Bank                                                  Northpointe Bancshares, Inc.  PennyMac Mortgage Investment Trust                                  Planet Home Lending, LLC                                            Pulte Corporation                                                   Redwood Trust                                                     Redwood Trust, Inc.  SunTrust                                                          Truist Financial Corporation  TIAA Bank (formerly EverBank)                                     TIAA  US Bank                                                           U.S. Bancorp  Wells Fargo Home Mortgage, Inc.                                   Wells Fargo & Company                                                                                                                                      AI-1                                                                                   Bodman_16842095_7 

 

                                                     Housing Bond   Programs  Colorado Housing Finance Authority  Sold servicing released to Inter Mountain Mortgage    Illinois Housing Development Agency  Sold servicing released to Dovenmuehle Mortgage, Inc.    Minnesota Housing Finance Authority  Sold servicing released to FBS Mortgage Corporation    Nevada Housing Division (NHD)  Servicing released to US Bank    Nevada Rural Housing  Servicing released to US Bank    North Carolina Housing Finance Authority  Sold servicing released to Servi Solutions (Alabama Housing)    Texas Department of Housing and Community affairs (TDHCA)  Sold servicing released to Idaho Housing    Washington State Housing Finance (WSHFC)  Sold servicing released to Bank of America    Illinois Housing Development Authority IHDA  Sold servicing released to U.S. Bank     South Carolina Development Authority SCSHFDA  Sold servicing released to US Bank    Missouri Housing Development Commission MHDC  Sold servicing released to ServiSolutions    Indiana Housing & Community Development Authority IHCDA  Sold servicing released to US Bank    Georgia Housing and Finance Authority GHFA  Sold directly to GHFA    Texas State Affordable Housing Corporation TSAHC  Sold servicing released to Lakeview    Tennessee Housing Development Authority THDA  Loan sold to THDA.  Servicing sold to US Bank.    California State Teacher's Retirement System CALSTRS     Michigan State Housing Development Authority MI-MSHDA                                                  AI-2                                                                                   Bodman_16842095_7 

 

                   New Jersey Housing and Mortgage Finance Agency NJHMFA  Sold directly to NJ Housing    CRHMFA Home Buyers Fund    Orange County Housing Finance Authority (Florida)  Sold servicing released to US Bank    Arizona Housing Finance Authority (AZHFA)  Sold servicing released to US Bank    Industrial Development Authority County of Maricopa (IDACM)  Sold servicing released to US Bank    Kentucky Housing Corporation (KHC)  Sold directly to KY Housing    Maryland Department of Housing and Community Development    OHFA  -  Ohio Housing Finance Agency  Sold servicing released to US Bank    CalHFA  -  California Housing Finance Agency  Sold servicing released to Lakeview    Golden State Finance Authority (California)  Servicing released to US Bank    MassHousing - Massachusetts Housing Finance Authority  Sold directly to MA Housing    Florida Housing Finance Corporation  Servicing released to US Bank    Lee County (Florida)  Servicing released to US Bank    Maricopa Phoenix (AZMP)  Servicing released to US Bank    New Jersey Housing and Finance Authority  Servicing released to Cenlar    Southeast Texas Housing Finance Corporation 5 Star (SETH)  Servicing released to US Bank      Southeast Texas Housing Finance Corporation Gold Star (SETH)  Servicing released to Gateway    Virginia Housing and Development Authority VHDA                                                AI-3                                                                                   Bodman_16842095_7 

 

                     New Mexico Mortgage Finance Authority   Sold servicing released to Idaho Housing    CAHFA - Capital Area Housing Finance Corp.    TCHFC - Travis County Housing Finance Corp.  Servicing released to US Bank    TVLB - Texas Veterans Land Board  Servicing released to Gateway     Newest approvals/Changes are in bold.                                                                                                                                                              AI-4                                                                                   Bodman_16842095_7 

 

                                       SCHEDULE AR                                                               AUTHORIZED SELLER REPRESENTATIVES                       LIST EFFECTIVE AS OF JULY 30, 2020  John D'Agostino  Ricky Weigand  Mark Hultgren  Jeff Kremer  Irina Shokhrin  Ralph Nowicki                                        AR-1                                                                     Bodman_16842095_7 

 

                                    SCHEDULE BC                          TO Master Repurchase Agreement                                                                       The Buyers’ Committed Sums                                     (in dollars)   From July 30, 2020 through and including December 27, 2020                                Buyer                               Committed Sum   Comerica Bank                                                      $120,002,400   BMO Harris Bank N.A.                                               $119,998,800   Truist Bank                                                        $119,998,800   Maximum Aggregate Commitment                                       $360,000,000       From December 28, 2020 through and including January 14, 2021                                Buyer                               Committed Sum   Comerica Bank                                                      $140,002,800   BMO Harris Bank N.A.                                               $139,998,600   Truist Bank                                                        $139,998,600   Maximum Aggregate Commitment                                       $420,000,000      From January 15, 2021 through and including March 25, 2021                                Buyer                               Committed Sum   Comerica Bank                                                       $76,668,200   BMO Harris Bank N.A.                                                $76,665,900   Truist Bank                                                         $76,665,900   Maximum Aggregate Commitment                                       $230,000,000      From March 26, 2021 through and including May 24, 2021                                Buyer                               Committed Sum   Comerica Bank                                                       $93,335,200   BMO Harris Bank N.A.                                                $93,332,400   Truist Bank                                                         $93,332,400   Maximum Aggregate Commitment                                       $280,000,000       From May 25, 2021 until the Termination Date                                Buyer                               Committed Sum   Comerica Bank                                                      $125,002,500   BMO Harris Bank N.A.                                               $124,998,750   Truist Bank                                                        $124,998,750   Maximum Aggregate Commitment                                       $375,000,000                                                                                  BC-1                                                                     Bodman_16842095_7 

 

                                    SCHEDULE BP                           To Master Repurchase Agreement                                                                        LIST OF BASIC PAPERS          The following are the Basic Papers for Purchased Loans:          (a)   the original Mortgage Note, bearing all intervening endorsements to negotiate it   from the original payee named therein to the Seller and endorsed by the Seller as follows:                                  Pay To The Order Of                                  Without Recourse                                                                          ____________________                                                                                                                                                            ________________________                                     [signature]                                     [name, title]                                                    (b)   the recorded original or a Certified Copy of the power of attorney for each maker   of the Mortgage Note who (if any) did not personally execute the Mortgage Note and for whom   the Mortgage Note was executed by an attorney-in-fact;         (c)   the recorded original or a Certified Copy of the Mortgage securing such Mortgage  Note;          (d)   originals or Certified Copies of all intervening assignments (if any) reflecting a   complete chain of assignment of such Mortgage from the original mortgagee to the Seller;   provided that intervening assignments are not required for any Mortgage that has been originated   in the name of MERS and registered under the MERS® System; and          (e)   the signed original of a Mortgage Assignment assigning the Mortgage in blank in   a form that is complete so as to be recordable in the jurisdiction where the Mortgaged Premises   are located without the need for completion of any blanks or supplying of any other information;   provided that no Mortgage Assignment is required for any Mortgage that has been originated in   the name of MERS and registered under the MERS® System with Comerica as “Gestation-  Warehouse Lender”.                                         BP-1                                                                     Bodman_16842095_7 

 

                                    SCHEDULE DQ                           To Master Repurchase Agreement                                                                            DISQUALIFIERS          “Disqualifier” means any of the following events; after the occurrence of any   Disqualifier, unless it shall have been waived or cured in writing in accordance with the terms of   the Agreement, the Market Value of the affected Purchased Loan shall be deemed to be zero, and   the Agent shall be deemed to have marked such Purchased Loan to market:          1.    Any event occurs, or is discovered to have occurred, after which the affected   Purchased Loan fails to satisfy any element of the definition of “Eligible Loan”.          2.    In respect of any Purchased Loan, for any reason whatsoever any of the Seller’s   special representations concerning Purchased Loans set forth in Section 15.3 applicable to that   type of Purchased Loan shall become untrue, or shall be discovered to be untrue, in any respect.          3.    Any Purchased Loan shall become In Default.          4.    Seven (7) Business Days shall have elapsed after the Purchase Date upon which a   Wet Loan has been sold to the Buyers without all of the Wet Loan’s Basic Papers having been   received by the Custodian.          5.    For any Purchased Loan, any Basic Paper shall have been sent to the Seller or its   designee for correction, collection or other action and shall not have been returned to the   Custodian on or before twenty-one (21) days after it was so sent to the Seller.          6.    Any Purchased Loan shall be assumed by (or otherwise become the liability of),   or the real property securing it shall become owned by, any corporation, partnership or any other   entity that is not a natural person or a trust for natural persons unless payment in full of such  Purchased Loan is guaranteed by a natural person.  The Agent, the Buyers and the Custodian  may rely on the Seller’s representation and warranty that no Purchased Loans have been so  assumed by (or otherwise become the liability of) such a Person except as otherwise specified by  written notice(s) to the Custodian.         7.    Any Purchased Loan shall be assumed by (or otherwise become the liability of),  or the real property securing it shall become owned by, an Affiliate of the Seller or any of the  Seller’s or its Affiliates’ directors, members or appointed officers, provided, however, nothing  herein shall be deemed to disqualify any Purchased Loans made to an employee or officer of  Seller in the ordinary course of Seller’s business.  The Agent, the Buyers and the Custodian may  rely on the Seller’s representation and warranty that no Purchased Loans have been so assumed  by (or otherwise become the liability of) such a Person except as otherwise specified by written  notice(s) to the Custodian.         8.    Any Purchased Loan shipped to an Approved Investor shall not be paid for or  returned to the Custodian or the Agent (whichever shipped it) on or before forty-five (45) days   after it is shipped.                                        DQ-1                                                                     Bodman_16842095_7 

 

           9.    More than sixty (60) days shall have elapsed since the Purchase Date of any   Conforming Mortgage Loan (other than any Aged Mortgage Loan), more than sixty (60) days   shall have elapsed since the Purchase Date of any FHA Low FICO Score Mortgage Loan (other   than any Aged Mortgage Loan), more than forty-five (45) days shall have elapsed since the   Purchase Date of any Jumbo Mortgage Loan, Second Mortgage Loan or Non-QM Mortgage   Loan, or more than ninety (90) days, but not less than sixty one (61) days, shall have elapsed   since the Purchase Date of any Aged Mortgage Loan.          10.   Any Purchased Loan that is shipped to the Seller for correction of one or more   Basic Documents when the Market Value of all Purchased Loans so shipped to the Seller   exceeds five (5%) of the Maximum Aggregate Commitment (or such greater amount as approved   by the Agent in its sole discretion).           11.   Any Purchased Loan is listed on an Exception Report and the Agent has not   exercised its discretion to exclude such Purchased Loan from the list of Disqualifiers under   Section 22.8(a) (for the avoidance of doubt, this means a Purchased Loan is subject to   discrepancies, inconsistencies or has documents that are incomplete).           12.   The terms and conditions of any Purchased Loan has been amended, modified or   waived (except to correct errors or omissions in Loan Papers), or any claim in respect of any  Purchased Loan has been settled or compromised, or Seller has accepted other than cash or the  exchange of comparable Purchased Loans (which is concurrently sold by the Seller to the  Buyers) in liquidation of any Purchased Loan, in each case without the written consent of the  Agent given on a case-by-case basis.         13.   Agent has notified Seller that such Purchased Loan is, for any other reason in  Agent’s good faith, reasonable (from the perspective of a residential mortgage loan warehouse  facility provider) business judgment, ineligible.                                         DQ-2                                                                     Bodman_16842095_7 

 

                                          SCHEDULE EL                      To Master Repurchase Agreement                                                              ELIGIBLE LOANS         “‘Eligible Loans’ means Single-family Loans that are amortizing Conforming  Mortgage Loans, FHA Low FICO Score Mortgage Loans, Jumbo Mortgage Loans, Aged  Mortgage Loans, Non-QM Mortgage Loans, Second Mortgage Loans and Wet Loans that  satisfy all criteria for Eligible Loans set forth on this Schedule EL and are not subject to a  Disqualifier. Each Mortgage Loan must be secured by a first priority Lien on its related  Mortgaged Premises (or, with respect to any Second Mortgage Loans, by a second  priority Lien on its related Mortgaged Premises). It may bear interest at a fixed interest  rate, at a fluctuating interest rate or at a fixed or fluctuating interest rate for part of its  term followed, respectively, by a fluctuating or fixed interest rate for the remainder of its  term.  No Mortgage Loan shall be an Eligible Loan at any time:               (1)      If the Mortgaged Premises securing it is a mobile home, manufactured   housing, or cooperative housing unit.       (2)     That contains or is otherwise subject to any contractual restriction or  prohibition on the free transferability of such Mortgage Loan, all Liens securing it and all  related rights (other than Legal Requirements requiring notification to its obligor(s) of  any transfer of it or of its servicing or administration), either absolutely or as security.       (3)      If any of its owners-mortgagors is a corporation, partnership or any other   entity that is not a natural person or a trust for natural persons unless its full payment   when due is guaranteed by a natural person.       (4)      If any of its owner-mortgagors is an Affiliate of the Seller or any of the  Seller’s or any such Affiliate’s directors, members or appointed officers, provided,   however, nothing herein shall be deemed to disqualify any Purchased Loans made to an   employee or officer of Seller in the ordinary course of Seller’s business.       (5)     Whose related Mortgaged Premises are not covered by a Hazard Insurance  Policy.       (6)     That is a construction, rehabilitation or commercial loan.  The Agent, the  Buyers and the Custodian may rely on the Seller’s representation and warranty that no  Purchased Loan is such a loan.       (7)     Reserved.        (8)     That was originated more than forty-five (45) days before its Purchase   Date.       (9)      That is In Default or ever was In Default.                                  EL-1                                                               Bodman_16842095_7 

 

                   (10)      That contains any term or condition such that the repayment schedule   results in the outstanding principal balance increasing over time, rather than amortizing,   whether or not such Mortgage Loan is deemed to be an “option ARM”, “negative   amortization” or “graduated payment” loan.  The Agent, the Buyers and the Custodian   may rely on the Seller’s representation and warranty that any Mortgage Loan duly sold to   the Buyers amortizes over time.      (11)      In connection with the origination of which a policy of single-premium   life insurance on the life of a mortgagor, borrower or guarantor was purchased.      (12)      That (i) is subject to the special Truth-in-Lending disclosure requirements   imposed by Section 32 of Regulation Z of the Federal Reserve Board (12 C.F.R. §   226.32) or any similar state or local Legal Requirement relating to high interest rate  credit or lending transactions or (ii) contains any term or condition, or involves any loan  origination practice, that (a) has been defined as “high cost”, “high risk”, “predatory”,  “covered”, “threshold” or a similar term under any such applicable federal, state or local  law, (b) has been expressly categorized as an “unfair” or “deceptive” term, condition or  practice in any such applicable federal, state or local law (or the regulations promulgated  thereunder) or (c) by the terms of such Legal Requirement exposes assignees of  Mortgage Loans to possible civil or criminal liability or damages or exposes any Buyer or  the Agent to regulatory action or enforcement proceedings, penalties or other sanctions.   The Agent, the Buyers and the Custodian may rely on the Seller’s representation and  warranty that no Purchased Loan is such a loan.      (13)     That the Seller or any Affiliate has previously warehoused with any other  Person, whether under a lending arrangement or an arrangement involving a sale in  contemplation of a subsequent further sale to (or securitization by) a secondary mortgage  market purchaser, whether with or without the Seller’s having any conditional repurchase  or other recourse obligation, and that was rejected or became ineligible or disqualified to  be lent against or purchased and held by such other Person, except for Purchased Loans  previously sold to the Parent under the Parent Repurchase Agreement, provided that the  Parent Custodian has released all Liens and other right, title and interest in and to said  Purchased Loans in connection with such repurchase.  The Agent, the Buyers and the  Custodian may rely on the Seller’s representation and warranty that no Purchased Loan is  such a loan.      (14)     That the Seller or any Affiliate sold and transferred, or attempted to sell  and transfer, to any other Person.      (15)     That has a loan to value ratio greater than (x) ninety five percent (95%)  with respect to Non-QM Mortgage Loans and (y) eighty percent (80%) with respect to  other Mortgage Loans unless such Mortgage Loan is guaranteed by VA or is insured by  FHA or private mortgage insurance provided by a provider acceptable to the Agent  provided, however, that a Conforming Mortgage Loan or Jumbo Mortgage Loan may  have a loan-to-value ratio greater than 80% (but not more than 100%), so long as the  portion of such Conforming Mortgage Loan or Jumbo Mortgage Loan in excess of 80%                                   EL-2                                                               Bodman_16842095_7 

 

                 of the value of the related Mortgaged Premises is covered by mortgage insurance   acceptable to Agent.      (16)      Reserved.      (17)     Unless all of the Seller’s right, title and interest in and to the Purchased  Loan is subject to a first priority perfected security interest in favor of the Agent for the  benefit of the Buyers subject to no other liens, security interests, charges or  encumbrances other than the Seller’s right to repurchase the Purchased Loan hereunder.      (18)      Unless all the representations and warranties set forth in this Agreement,   including, without limitation, Section 15.3 and Schedule 15.4, are true and correct with   respect to such Purchased Loan at all times on and after the related Purchase Date.      (19)      That is not covered by an Investor Commitment or Hedge Agreement.      (20)      That has an original term to stated maturity of more than thirty (30) years.      (21)      As to which any Disqualifier exists.      (22)      That was previously a Purchased Loan (except as a Wet Loan).      (23)     In the case of a Second Mortgage Loan, (i) the face amount of such  Mortgage Loan exceeds One Hundred Thousand Dollars ($100,000), (ii) such Mortgage  Loan has a Combined Loan to Value at origination of greater than ninety percent (90%),  or (iii) the obligor of such Mortgage Loan shall have a FICO Score of less than 720.                                                  EL-3                                                               Bodman_16842095_7 

 

                                          SCHEDULE 1.2                                         DEPOSIT ACCOUNTS         Funding Account                          1852538576        Operating Account                         1852503992   Repurchase Settlement Account                  1852538634         Escrow Account                           1852538618         Income Account                           1852538402                                                 Sch 1.2-1                                                              Bodman_16842095_7 

 

                                 SCHEDULE 15.2(f)                                                  MATERIAL ADVERSE CHANGES AND CONTINGENT LIABILITIES   None.                                        15.2(f)-1                                                                    Bodman_16842095_7 

 

                                   SCHEDULE 15.2(g)                                    LITIGATION   As a mortgage lender in multiple states, the company is involved in litigation from time to time  in the ordinary course of its business.  Pulte Mortgage currently is a party to one case in which  the liability may amount to 5% or more of the company’s net worth.  The case is EMC Mortgage  LLC v. Pulte Mortgage LLC, No. 1:19-CV-01574-WJM (D. Colo., filed May 1, 2019).   EMC  Mortgage LLC seeks indemnification for alleged breach of representations and warranties  relating to the sale of mortgage loans by Pulte Mortgage to EMC. Pulte Mortgage is the  defendant and denies all liability. The case is in the discovery phase and the amount involved  and probable outcome are not known at this time, although plaintiff’s original demand was for  $40 million.                                       15.2(g)-1                                                                     Bodman_16842095_7 

 

                                 SCHEDULE 15.2(n)                                                                         EXISTING LIENS     None.                                        15.2(n)-1                                                                    Bodman_16842095_7 

 

                                       SCHEDULE 15.2(s)                                                                         COMPLIANCE INFORMATION                                                                                                                           Correct Legal Name       Address          Type of    Jurisdiction  Tax identification                                           Organization     of       number and other                                                        Organization   identification                                                                         numbers                                                                      Pulte Mortgage LLC 7390 South Iola      Limited       Delaware    42-1554181                     Englewood, CO 80112  Liability                                          Company  PCIC Corporation   7390 South Iola      Corporation   Michigan    38-3351966                     Englewood, CO 80112                                               15.2(s)-1                                                                       Bodman_16842095_7 

 

                                    SCHEDULE 15.3                       TO MASTER REPURCHASE AGREEMENT                                                SPECIAL REPRESENTATIONS AND WARRANTIES WITH RESPECT TO EACH                                 PURCHASED LOAN         As of the related Purchase Date, for each Purchased Loan the Seller makes the following  representations and warranties:             (a)     The information with respect to each Purchased Loan set forth in the        related Mortgage Loan Transmission File is true and correct as of the date specified in all        material respects.             (b)     The Seller is the sole legal and equitable owner of such Purchased Loan        (except in the case of MERS Designated Loans, as to which MERS, as nominee for the        Seller and its successors and assigns, is the record owner), such Purchased Loan is a first        priority Lien or, in the case of a Second Mortgage Loan, a second priority Lien, free and        clear of all Liens other than Permitted Encumbrances, and Seller has full right to sell such        Purchased Loan to the Buyers.             (c)     All Purchased Loans, including Wet Loans, have been duly authorized and        validly created.             (d)     Each of the Purchased Loans sold to the Buyers by the Seller complies        with all of the requirements of this Agreement and the Custody Agreement and is genuine        and what it purports to be.             (e)     All information concerning each item or grouping of Purchased Loans        listed in any Loan Schedule or in a Mortgage Loan Transmission File sent to the Agent or        the Custodian was, is and/or shall be (as applicable) true and complete in all material        respects as of the date of such Loan Schedule or Mortgage Loan Transmission File.             (f)     The Seller has complied and will continue to comply in all material        respects with all Legal Requirements relating to each Purchased Loan.             (g)     Each Mortgage Note and Mortgage related to a Purchased Loan, including        Wet Loans, has been duly (i) endorsed or assigned to the Seller and (ii) endorsed or        assigned by the Seller in blank (assignment of the Mortgage in blank is not required when        MERS is designated in the Mortgage as the original mortgagee or the nominee of the        original mortgagee, its successors and assigns) and delivered (or in the case of Wet Loans        are in the process of being delivered) to the Custodian.             (h)     All Basic Papers for each Purchased Loan (except Wet Loans) will be        transmitted to the Custodian with the Mortgage Loan Transmission File with which it is        submitted for purchase.              (i)    Each assignment to the Agent of the Lien securing any Purchased Loan        will be in proper and sufficient form for recording in the appropriate government office in                                      Sch 15.3 - 1                                                                     Bodman_16842095_7 

 

                 the U.S. jurisdiction where the related Mortgaged Premises are located (no such   assignment is required for any Mortgage that has been originated in the name of MERS   and registered under the MERS® System).        (j)    The Seller has and will continue to have the requisite limited liability  company, power and authority to sell the Purchased Loans to the Buyers, and the  Purchased Loans sold and to be sold to the Buyers by the Seller under this Agreement or  pursuant to it may be further sold, resold, assigned and reassigned to any Person or  Persons without any requirement for the further consent of the Seller or the consent of  any other party to any of the Loan Papers or obligated in respect of the Purchased Loans.       (k)     Each Purchased Loan is secured by a Lien having the priority represented  by the Seller to the Agent or the Custodian, subject only to the Permitted Encumbrances,  until that Purchased Loan shall have been repurchased by the Seller.        (l)    Each Purchased Loan is covered by an ALTA mortgage title insurance   policy or such other form of title insurance as is acceptable to Fannie Mae or Freddie   Mac, issued by and constituting the valid and binding obligation of a title insurer that is   generally acceptable to prudent mortgage lenders who regularly originate or purchase   Mortgage Loans comparable to the Purchased Loans that are for sale to prudent investors   in the secondary market in which investors invest in Mortgage Loans such as the   Purchased Loan insuring the Seller, its successors and assigns, as to the first priority of   the Lien of the Mortgage on the related Mortgaged Premises, in an amount equal to the   original principal amount of such Purchased Loan.  The Seller is the named insured of   such mortgage title insurance policy as a first lien mortgage holder (or, in the case of a  Second Mortgage Loan, the Seller is the named insured as the second lien mortgage  holder along with the first lien mortgage loan holder), the assignment to the Agent of the  Seller’s interest in such policy does not require the consent of or notice to the insurer (or  such consent has been obtained or notice given), and such policy is and will be in full  force and effect and inure to the benefit of the Agent as and when such Purchased Loan is  sold to the Buyers.  No claims have been made under such policy and no prior holder of  the Purchased Loan, including the Seller, has done, by act or omission, anything that  would impair the coverage of such policy.       (m)     The improvements on the Mortgaged Premises consist of a completed  single family residence, and the Mortgaged Premises securing each Purchased Loan are  capable of being lawfully occupied under applicable Legal Requirements, all inspections,  licenses and certificates required to be made or issued with respect to all occupied  portions of such Mortgaged Premises and, with respect to the use and occupancy of the  same, including certificates of occupancy and fire underwriting certificates, have been  made or obtained from the appropriate Governmental Authority.       (n)     The Seller has no knowledge of any circumstances or conditions with  respect to the Mortgage, the Mortgaged Premises or the Customer in respect of any  Purchased Loan (other than the Customer’s credit standing) that can reasonably be  expected to cause private institutional investors that regularly invest in Mortgage Loans  similar to such Purchased Loan to regard such Purchased Loan as an unacceptable                                Sch 15.3 - 2                                                               Bodman_16842095_7 

 

                 investment or adversely affect the value or marketability of such Purchased Loan to other   similar institutional investors.       (o)     Each Purchased Loan’s Mortgage contains an enforceable provision for  acceleration of the maturity of the unpaid principal balance thereof in the event that the  Mortgaged Premises are sold or transferred without the prior written consent of the  holder thereof.       (p)     No Purchased Loan is a graduated payment Mortgage Loan or has a  shared appreciation or other contingent interest feature.       (q)     All interest rate adjustments, if any, in respect of each Purchased Loan  have been made in compliance with applicable Legal Requirement and the terms of the  related Mortgage Note, and any interest required to be paid pursuant to applicable Legal  Requirement has been properly paid and credited.       (r)     No Customer in respect of any Purchased Loan has notified the Seller, and  the Seller has no knowledge, of any relief requested by or allowed to such Customer  under the Servicemembers’ Civil Relief Act of 2003.       (s)     The Seller used no selection procedures that identified the Eligible Loans  relating to a Transaction as being less desirable or valuable than other comparable assets  in the Seller’s portfolio on the related Purchase Date, and no Purchased Loan was  selected for inclusion in a Transaction on any basis that was intended to have a material  adverse effect on the Buyers or the Agent.        (t)    No Purchased Loan is subject to a bankruptcy plan.       (u)     Each Purchased Loan is a “qualified mortgage” within the meaning of  §860G(a)(3) of the Internal Revenue Code.       (v)     All Purchased Loans and all related papers included in the Purchased  Loans:              1      were originated by the Seller, a duly licensed mortgage lender in        the ordinary course of its business;              2      have been made in compliance with all applicable requirements of        the Real Estate Settlement Procedures Act, the Equal Credit Opportunity Act, the        federal Truth-In-Lending Act, the Fair Credit Billing Act, the Fair Credit        Reporting Act, related statutes and regulations and all applicable Legal        Requirements under usury, truth-in-lending, equal credit opportunity and all other        Legal Requirements, and the continued compliance of the Purchased Loans is not        affected by their sale to the Buyers;              3      are the legal, valid and binding obligations of the respective        Customers who entered into them and are and will continue to be valid and        enforceable in accordance with their terms, without any claim, right of rescission,                                Sch 15.3 - 3                                                               Bodman_16842095_7 

 

                 counterclaim, defense or offset, including any claim or defense of usury, except as   such enforceability may be limited by bankruptcy and other laws affecting the   rights of creditors generally and by principles of equity, excepting rights that, by   applicable law, cannot be waived, and neither the operation of any of their  respective contract terms nor the exercise of any right thereunder will render any  of them partly or wholly unenforceable or subject to any such claim, right of  rescission, counterclaim, defense or offset, and no such claim, right of rescission,  counterclaim, defense or setoff has been asserted;        4      have not been modified or amended and none of their requirements  has been waived, except as expressly and completely reflected in the applicable  Loan Papers furnished to the Custodian;        5      have fair market values equal to or greater than the Purchase Price  respectively attributed or allocated to them under this Agreement on the Purchase  Date;        6      comply and will continue to comply with the terms of this  Agreement and the Custody Agreement;        7      were not originated in, and are not subject to the laws of, any  jurisdiction whose laws (i) make unlawful their sale to the Buyers pursuant to this  Agreement, or (ii) render the Purchased Loans unenforceable;        8      are in full force and effect and have not been satisfied or  subordinated in whole or in part or rescinded, and the residential real property  securing each Purchased Loan has not been partially or completely released from  the Lien of such Purchased Loan;        9      evidence and are each secured by a valid first Lien in favor of the  Seller on real property securing the amount owed by the Customer(s) under the   related Mortgage, subject only to Permitted Encumbrances or, with respect to any   Second Mortgage Loan, subject only to Permitted Encumbrances and a first   priority Mortgage on its related Mortgaged Premises;        10      are each executed in full accordance with all requirements of the   applicable Legal Requirements of the jurisdiction in which the related Mortgaged   Premises are located, with the Mortgage for each being (i) duly acknowledged   and sealed by such official and in such manner and form as to be both recordable   and effective under such Legal Requirements to give such constructive notice to   all Persons as shall be necessary to establish and continue the Lien of such   Mortgage with the priority that the Seller represents it has to the Agent and (ii) so   recorded (or in the process of being recorded), and with the Mortgage Note,   Mortgage and all related papers executed with the genuine original signature(s) of   the Customer(s) obligated on such Purchased Loan, and all parties to each such   Purchased Loan had full legal capacity to execute it;                           Sch 15.3 - 4                                                         Bodman_16842095_7 

 

                           11      are secured by real property improved by a one-, two-, three- or        four-family residence;             12      are the subject of a Current Appraisal or a Current Broker’s Price        Opinion of which the Seller has possession and will make available to the        Custodian on request, and the Seller has in its possession and will make available        to the Custodian on request evidence of the Mortgaged Premises’ value and how        it was determined;             13      are not subject to the Home Ownership and Equity Protection Act        of 1994;       (w)     As to each Purchased Loan and its Loan Papers:              1      the Loan Papers contain customary and enforceable provisions so        as to render the rights and remedies of their holder adequate for the realization        against the Purchased Loan of the benefits of the security intended to be provided        by it;              2      there is only one original executed Mortgage Note, and, except in        the case of Wet Loans, that original has been delivered to the Custodian;              3      none of its makers or mortgagors is an Affiliate of the Seller or any        of its or its Subsidiaries’ directors, members or appointed officers; and              4      they do not contain any term or condition such that the repayment        schedule results in the outstanding principal balance increasing over time, rather        than amortizing, whether or not such Purchased Loan is deemed to be an “option        ARM”, “negative amortization” or “graduated payment” loan.  The Agent and the        Custodian may rely on the Seller’s representation and warranty that any        Purchased Loan amortizes over time.                (x)     Each Mortgage is a Lien on the premises and property described in it  having the priority represented to the Agent, and the description of the Mortgaged  Premises in each Mortgage is legally adequate and, except in the case of a Second  Mortgage Loan which is a home equity line of credit, each Purchased Loan has been fully  advanced in its face amount.       (y)     No Purchased Loan is In Default except as to which the Seller has given  notice to the Agent (by reporting Purchased Loans that are delinquent Mortgage Loans).       (z)     The Mortgaged Premises in each Mortgage is insured by a fire and  extended perils insurance policy and such other hazards as are customary in the area  where the Mortgaged Property is located or customary under the Seller’s servicing  procedures and the amount of the insurance is in the amount of the full insurable value of  the Mortgaged Property on a replacement cost basis or the unpaid balance of the  Mortgage Loans, whichever is less.  If the Mortgaged Property is in an area identified by  any federal governmental authority as having special flood hazards, and flood insurance                                Sch 15.3 - 5                                                               Bodman_16842095_7 

 

           is available, a flood insurance policy meeting the current guidelines of the Federal         Insurance Administration is in effect.  All such insurance policies (collectively, the         “hazard insurance policy”) contain a standard mortgage clause naming the originator and         its successors and assigns (including subsequent owners of the Mortgage Loan), as         mortgagee.            (aa)      Each Purchased Loan is covered by an Investor Commitment or Hedge        Agreement.                                     * * * * * * * *         As used in the this Schedule 15.3, the following terms have the following meanings:         “Appraisal” means an appraisal by a licensed appraiser selected in accordance with  Agency guidelines and not identified to the Seller as an unacceptable appraiser by an Agency,  and who is recognized and experienced in estimating the value of property of that same type in  the community where it is located, and who, unless approved by the Agent on a case-by-case  basis, is not a member, manager, director, officer or employee of the Seller or any Affiliate of the  Seller, or related as a parent, sibling, child or first cousin to any of the Seller’s or any such  Affiliate’s respective directors or officers or any of their spouses, a signed copy of the written  report of which appraisal is in the possession of the Seller or the applicable Servicer.         “Broker’s Price Opinion” means the written opinion of the value of a tract or parcel of  real property improved by a one-, two-, three- or four-family residence securing a Mortgage  Loan, issued by a real estate broker duly licensed as such by the jurisdiction in which the subject  property is located that is reasonably acceptable to the Agent and that is not an Affiliate of the  Seller or a director, member, manager, officer or employee of the Seller or any of its Affiliates,  selected reasonably and in good faith by the Seller.         “Current Appraisal” means an Appraisal dated no earlier than ninety (90) days (or such  longer period, if any, as the Agent shall approve) before the relevant Determination Date.         “Current Broker’s Price Opinion” means a Broker’s Price Opinion dated no earlier than  ninety (90) days (or such longer period, if any, as the Agent shall approve) before the relevant  Determination Date.                                       Sch 15.3 - 6                                                                     Bodman_16842095_7 

 

                                     SCHEDULE 23                          TO Master Repurchase Agreement                                                                       Buyers’ Addresses for Notice                                 As of July 30, 2020    Comerica Bank:                             Comerica Bank’s address appears in Article   23.      Truist Bank   Attention: Chad Cain   102 W. Pineloch Avenue, Suite 18   Orlando, FL 32806   Phone:  (407) 835-6681   Email:  chad.cain@bbandt.com      BMO Harris Bank N.A.  Attention: Catherine Blaesing  115 S. LaSalle Street 19W  Chicago, IL 60603  Phone:  (312) 461-7875  Email: catherine.blaeasing@harrisbank.com                                                                                                                                          Sch 23 - 1                                                                     Bodman_16842095_7

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