Document:

Parent Company Guaranty

  
 Exhibit 10.30

  
 PARENT COMPANY GUARANTY 
  
 THIS PARENT COMPANY GUARANTY (this “Guaranty”) is made as of
January 27, 2004 by Lennar Corporation, a Delaware corporation, and LNR Property Corporation, a Delaware corporation (collectively, the “Guarantors”) in favor of the Administrative Agent, for the benefit of the Lenders under the Credit
Agreement referred to below. 
  
 WITNESSETH: 
  
 WHEREAS, LandSource Communities Development LLC, a Delaware limited
liability company, and NWHL Investment LLC, a Delaware liability company (collectively, “Borrowers”) and Bank One, NA, having its principal office in Chicago, Illinois, as Administrative Agent (the “Administrative Agent”), and
certain other Lenders from time to time party thereto have entered into a certain Credit Agreement of even date herewith (as same may be amended, modified, supplemented or restated from time to time, the “Credit Agreement”), providing,
subject to the terms and conditions thereof, for extensions of credit to be made by the Lenders to the Borrowers; 
  
 WHEREAS, it is a condition precedent to the execution of the Credit Agreement by the Administrative Agent and the Lenders that each of the
Guarantors execute and deliver this Guaranty whereby each of the Guarantors shall guarantee, or otherwise agree to pay and perform, certain liabilities and obligations as herein provided; and 
  
 WHEREAS, each of the Guarantors owns (directly or indirectly) 50% of
the Equity Interests in each of the Borrowers, and in order to induce the Lenders and the Administrative Agent to enter into the Credit Agreement, and because each Guarantor has determined that executing this Guaranty is in its interest and to its
financial benefit, each of the Guarantors is willing to execute and deliver this Guaranty;  
  
 NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows: 
  
 SECTION 1.
Defined Terms. 
  
 (a) “Trigger Event” means any
one or more of the following: (i) there shall occur any willful or fraudulent misrepresentation by any of the Loan Parties under the Credit Agreement or any other Loan Document; (ii) any of the Loan Parties shall commit any fraudulent or unlawful
act in respect of the Loans or other Obligations; (iii) either of the Borrowers shall pay any dividend or make any distribution that is not a Permitted Distribution and such dividend or distribution is not repaid to the applicable Borrower within
thirty (30) days after notice from the Administrative Agent; or (iv) there shall occur any misappropriation of funds by any of the Loan Parties, including without limitation the application of any Property Award or other proceeds of Collateral in a
manner not permitted under the Loan Documents. 
  
 (b)
“Guaranteed Obligations” is defined in Section 3 below. 
  

 1 

 (c) Other capitalized terms used herein but not defined herein shall have the meaning set fort in the
Credit Agreement. 
  
 SECTION 2. Representations and
Warranties. Each of the Guarantors represents and warrants (which representations and warranties shall be deemed to have been renewed upon each Credit Extension Date under the Credit Agreement) that: 
  
 (a) It is a corporation duly incorporated, validly existing, and in good
standing under the laws of the jurisdiction of its incorporation; has the power and authority to its assets and to transact the business in which it is now engaged or proposed to be engaged in; and is duly qualified and in good standing under the
laws of each other jurisdiction in which such qualification is required. 
  
 (b) The execution, delivery and performance by it of this Guaranty have been duly authorized by all necessary corporate action, and do not and will not (1) require any consent or approval of its stockholders or
(except such consents as have been obtained as of the date hereof); (2) contravene its charter or bylaws; (3) violate, any provision of any law, rule, regulation (including, without limitation, Regulations U and X of the Board of Governors of the
Federal Reserve System), order, writ, judgment, injunction, decree, determination, or award presently in effect having applicability to it; (4) result in a breach of or constitute a default under any indenture or loan or credit agreement or any
other material agreement, lease, or instrument to which it is a party or by which it or its properties may be bound or affected; (5) result in, or require, the creation or imposition of any Lien, upon or with respect to any of the properties now
owned or hereafter acquired by it; and (6) cause it to be in default, in any material respect, under any such law, rule, regulation, order, writ, judgment, injunction, decree, determination, or award or any such indenture, agreement, lease or
instrument. 
  
 (c) This Guaranty is its legal, valid, and binding
obligation, enforceable against it, in accordance with its respective terms except to the extent that such enforcement may be limited by applicable bankruptcy, insolvency, and other similar laws affecting creditors’ rights generally. 
  
 SECTION 3. The Guaranty. 
  
 (a) Each of the Guarantors hereby absolutely and unconditionally guarantees, jointly and severally, as primary obligor and not as surety, upon the
occurrence of a Trigger Event, the full and punctual payment (whether at stated maturity, upon acceleration or early termination or otherwise, and at all times thereafter) and performance of the Obligations, including without limitation any such
Obligations incurred or accrued during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, whether or not allowed or allowable in such proceeding being referred to. Upon the occurrence of a Trigger Event and the
failure by the Borrowers to pay punctually any such amount, each of the Guarantors, jointly and severally, agrees that it shall forthwith on demand pay to the Administrative Agent for the benefit of the Lenders, the amount not so paid at the place
and in the manner specified in the Credit Agreement, any Note or any other Loan Document, as the case may be. 
  
 (b) Without limitation of any of the other provisions of this Section 3, each of the Guarantors hereby absolutely and unconditionally guarantees, jointly
and severally, as primary obligor and not as surety, upon demand by the Administrative Agent, the principal repayment of the Obligations provided for in Section 2.04(d)(ii) of the Credit Agreement, which payment shall 

  

 2 

 
be due and payable by the Guarantor, notwithstanding whether allowed or allowable during the pendency of any bankruptcy, insolvency, receivership or other
similar proceeding. 
  
 (c) Without limitation of any of the other
provisions of this Section 3, each of the Guarantors does hereby further guarantee and agree to pay, upon demand, any and all actual loss, cost, damage or expenses incurred by the Administrative Agent, any Lender or LC Issuer or any Indemnitee as a
direct or indirect result of (i) any breach of any material representation or warranty of either of the Borrowers or any of their respective Subsidiaries in the Credit Agreement or any of the Loan Documents; or (ii) any breach or default of any of
the Loan Parties of any representation, warranty, covenant, indemnity or other provision of the Credit Agreement or other Loan Documents relating to Contaminants, the Release thereof, or Environmental, Health or Safety Requirements of Law, including
without limitation Sections 4.21, 6.11, 6.12 and 13.04(a)(ii) of the Credit Agreement. The provisions of this Section 3(c) shall survive repayment of the Obligations subject to the limitations set forth in Section 13.04(d) of the Credit Agreement,
which limitation shall also apply to this paragraph 3(c). 
  
 (d)
The obligations that the Guarantors guarantee or otherwise agree to pay or perform under this Section 3 are herein referred to as the “Guaranteed Obligations.” 
  
 (e) This Guaranty is a guaranty of payment and not of collection. Each of the Guarantors waives any right to require the
Lender to sue the Borrowers, any other guarantor, or any other Person obligated for all or any part of the Guaranteed Obligations or other Obligations, or otherwise to enforce its payment against any collateral securing all or any part of the
Guaranteed Obligations. 
  
 SECTION 4. Guaranty
Unconditional. The obligations of each of the Guarantors hereunder shall be unconditional and absolute and, without limiting the generality of the foregoing, shall not be released, discharged or otherwise affected by: 
  
 (i) any extension, renewal, settlement, compromise, waiver or release in
respect of any of the Guaranteed Obligations or other Obligations, by operation of law or otherwise, or any obligation of any other guarantor of any of the Guaranteed Obligations or other Obligations, or any default, failure or delay, willful or
otherwise, in the payment or performance of the Guaranteed Obligations or other Obligations; 
  
 (ii) any modification or amendment of or supplement to the Credit Agreement, any Note or any other Loan Document; 
  
 (iii) any release, nonperfection or invalidity of any direct or indirect security for any obligation of the Borrowers or any other Loan Party under the
Credit Agreement, any Note, any other Loan Document or any obligations of any other guarantor of any of the Guaranteed Obligations or other Obligations, or any action or failure to act by the Administrative Agent, any Lender or any Affiliate of any
Lender with respect to any Collateral securing all or any part of the Guaranteed Obligations or other Obligations; 
  

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 (iv) any change in the corporate existence, structure or ownership of either of the Borrowers or any
other guarantor of any of the Guaranteed Obligations or other Obligations, or any insolvency, bankruptcy, reorganization or other similar proceeding affecting either of the Borrowers, or any other guarantor of the Guaranteed Obligations or other
Obligations, or its assets or any, resulting release or discharge of any obligation of either of the Borrowers or any other guarantor of any of the Guaranteed Obligations or other Obligations; 
  
 (v) the existence of any claim, setoff or other rights which the Guarantors
may have at any time against either of the Borrowers, any other guarantor of any of the Guarantee Obligations or other Obligations, the Administrative Agent, any Lender or any other Person, whether in connection herewith or any unrelated
transactions; 
  
 (vi) any invalidity or unenforceability
relating to or against either of the Borrowers, or any other guarantor of any of the Guaranteed Obligations or other Obligations, for any reason related to the Credit Agreement, any Note, any other Loan Document or any provision of applicable law or
regulation purporting to prohibit the payment by either of the Borrowers, or any other guarantor of the Guaranteed Obligations or other Obligations, of the principal of or interest on any Note or any other amount payable by either of the Borrowers
under the Credit Agreement, any Note or any other Loan Document; or 
  
 (vii) any other act or omission to act or delay of any kind by either of the Borrowers, any other guarantor of the Guaranteed Obligations or other Obligations, the Administrative Agent any Lender or any other Person or any other circumstance whatsoever which might, but for the provisions of this paragraph, constitute
a legal or equitable discharge of any Guarantor’s obligations hereunder. 
  
 SECTION 5. Discharge Only Upon Payment In Full: Reinstatement In Certain Circumstances. Each of the Guarantor’s obligations hereunder shall remain in full force and effect until all Guaranteed Obligations
(including any that survive repayment of the Loans) shall have been indefeasibly paid in full and the Facility LCs and Commitments under the Credit Agreement shall have terminated or expired. If at any time any payment of the principal of or
interest on any Note or any other amount payable by the Borrowers or any other party under the Credit Agreement, any Note or any other Loan Document is rescinded or must be otherwise restored or returned upon the insolvency, bankruptcy or
reorganization of either of the Borrowers or otherwise, each of the Guarantor’s obligations hereunder with respect to such payment shall be reinstated as though such payment had been due but not made at such time. 
  
 SECTION 6. Waivers. To the fullest extent permitted by applicable law,
each of the Guarantors waives any defense based on or arising out of any defense of the Borrowers or the 

  

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unenforceability of all or any par of the Guaranteed Obligations or other Obligations from any cause, or the cessation from any cause of the liability of
either of the Borrowers, other than the indefeasible payment in full in cash of the Guaranteed Obligations or other Obligations. Without limiting the generality of the foregoing, each of the Guarantors irrevocably waives acceptance hereof,
presentment, demand, protest and, to the fullest extent permitted by law, any notice not provided for herein, as well as any requirement that at any time any action be taken by any person against either of the Borrowers, any other guarantor of any
of the Guaranteed Obligations or other Obligations, or any other Person. The Administrative Agent or the Lenders may, at its or their election, foreclose on any Collateral by one or more judicial or nonjudicial sales, accept an assignment of any
such Collateral in lieu of foreclosure or otherwise act or fail to act with respect to any Collateral securing all or a part of the Guaranteed Obligations or other Obligations, compromise or adjust any par of the Guaranteed Obligations or other
Obligations, make any other accommodation with the Borrowers, any other guarantor or any other Person liable on any par of the Guaranteed Obligations or other Obligations or exercise any other right or remedy available against the Borrowers, any
other guarantor or any other Person liable on any of the Guaranteed Obligations or other Obligations without affecting or impairing in any way the liability of the Guarantors under this Guaranty except to the extent the Guaranteed Obligations or
other Obligations have been fully and indefeasibly paid in cash. To the fullest extent permitted by applicable, law, each of the Guarantors waives any defense arising out of any such election even though that election may operate, pursuant to
applicable law, to impair or extinguish any right of reimbursement or subrogation or other right or remedy of the Guarantors against the Borrowers, any other guarantor or any other Person liable on any of the Guaranteed Obligations or other
Obligations, as the case may be, or any Collateral. Notwithstanding the provisions of Section 15, the Guarantors acknowledge that, in the event and only to the extent that this Guaranty shall be construed under California law, the rights and
defenses being waived by Guarantors include, but are not limited to, any rights or defenses based upon Section 580a, 580b, 580d or 726 of the California Code of Civil Procedure. Without limiting the generality of the foregoing or any other provision
hereof: the Guarantors further expressly subordinate to the extent permitted by law, but only for as long as any
obligations remain outstanding under the Loan Documents, any and all rights and defenses, including without limit any rights of subrogation, reimbursement, indemnification and contribution, which might otherwise be available to the Guarantors under
California Civil Code Sections 2787 to 2855, inclusive, 2899 and 3433, or under California Code of Civil Procedure Sections 580a, 580b, 580d and 726, or any of such sections. 
  
 SECTION 7. Subordination; Subrogation. Each of the Guarantors hereby subordinates to the Obligations all indebtedness
or other liabilities of the Borrowers or of any of their respective Subsidiaries or of any other guarantor of the Guaranteed Obligations or other Obligations to such Guarantor. Each of the Guarantors hereby further agrees not to assert any right,
claim or cause of action, including, without limitation, a claim for subrogation reimbursement, indemnification or otherwise, against either of the Borrowers arising out of or by reason of this Guaranty or the obligations hereunder, including,
without limitation, the payment or securing or purchasing of any of the Guaranteed Obligations or other Obligations by any of the Guarantors, unless and until the Guaranteed Obligations or other Obligations are indefeasibly paid in full and all
Facility LCs and Commitments have terminated or expired. 
  
 SECTION 8. Stay of Acceleration. If acceleration of the time for payment of any of the Guaranteed Obligations is stayed upon the insolvency, bankruptcy or reorganization of either of 

  

 5 

 
the Borrowers, all such amounts otherwise subject to acceleration under the terms of the Credit Agreement, any Note or any other Loan Document shall (to the
extent the same constitute Guaranteed Obligations) nonetheless be payable by each of the Guarantors hereunder forthwith on demand by the Administrative Agent made at the request of the Required Lenders. 
  
 SECTION 9. Notices. All notices, requests, demands and other
communications to any par hereunder shall be given or made in accordance with the provisions of Section 13.01 of the Credit Agreement. The notice address for Administrative Agent shall be as provided in the Credit Agreement, and the notice address
for the Guarantors shall be as set forth below their signatures. Any party may change its notice address by notice to the other parties. 
  
 SECTION 10. No Waivers. No failure or delay by the Administrative Agent or any Lender in exercising any right, power or privilege hereunder shall
operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies provided in this Guaranty, the Credit
Agreement, any Note or the other Loan Documents shall be cumulative and not exclusive of any rights or remedies provided by law. 
  
 SECTION 11. No Duty to Advise. Each of the Guarantors assumes all responsibility for being and keeping itself informed of the Borrowers’
financial condition and assets, and of all other circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations or other Obligations and the nature, scope and extent of the risks that each of the Guarantors assumes and incurs under
this Guaranty, and agrees that neither the Administrative Agent nor any Lender has any duty to advise any of the Guarantors of information known to it regarding those circumstances or risks. 
  
 SECTION 12. Successors and Assigns. This Guaranty is for the benefit
of the Administrative Agent and the Lenders and their respective successors and permitted assigns and in the event of an assignment of any amounts payable under the Credit Agreement, any Note or any other Loan Documents, the rights hereunder, to the
extent applicable to the indebtedness so assigned, shall be transferred with such indebtedness. This Guaranty shall be binding upon each of the Guarantors and their respective successors and permitted assigns. 
  
 SECTION 13. Changes in Writing. Neither this Guaranty nor any
provision hereof may be changed, waived, discharged or terminated orally, but only in writing signed by each of the Guarantors and the Administrative Agent with the consent of the Required Lenders or, to the extent required under Section 13.06 of
the Credit Agreement, all Lenders. 
  
 SECTION 14. Costs of
Enforcement. Each of the Guarantors agrees to pay all costs and expenses including, without limitation, all court costs and attorneys’ reasonable fees and expenses paid or incurred by the Administrative Agent or any Lender or any Affiliate
of any Lender in endeavoring to collect all or any par of the Guaranteed Obligations from, or in prosecuting any action against, the Borrower, the Guarantors or any other guarantor of all or any par of the Guaranteed Obligations, unless it is
determined in a final non-appealable judgment by a court of competent jurisdiction that such Administrative Agent, Lender or Affiliate of a Lender was not entitled to any of the relief sought by it. 
  
 SECTION 15. GOVERNING LAW; SUBMISSION TO JURISDICTION; WAIVER OF JURY
TRIAL. THIS GUARANTY SHALL BE GOVERNED BY AND CONSTRUED IN 

  

 6 

 
ACCORDANCE WITH THE INTERNAL LAWS, INCLUDING SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, BUT OTHERWISE WITHOUT REGARD TO
CONFLICTS OF LAW PROVISIONS, OF THE STATE OF NEW YORK, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS. EACH OF THE GUARANTORS HEREBY SUBMITS TO THE NONEXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT SITTING IN CHICAGO,
ILLINOIS OR IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK, NEW YORK, ANY NEW YORK STATE COURT SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK, NEW YORK, OR ANY ILLINOIS STATE COURT SITTING IN CHICAGO, ILLINOIS AND FOR PURPOSES OF ALL LEGAL PROCEEDINGS ARISING OUT OF OR RELATING TO THIS GUARANTY (INCLUDING, WITHOUT LIMITATION, ANY OF THE
OTHER LOAN DOCUMENTS) OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH OF THE GUARANTORS IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH ANY OF THEM MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH
PROCEEDING BROUGHT IN SUCH A COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. EACH OF THE GUARANTORS, AND THE ADMINISTRATIVE AGENT AND THE LENDERS ACCEPTING THIS GUARANTY, HEREBY
IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS GUARANTY OR THE TRANSACTIONS CONTEMPLATED HEREBY. 
  
 SECTION 16. Taxes, etc. All payments required to be made by any of the Guarantors hereunder shall be made without
setoff or counterclaim and free and clear of and without deduction or withholding for or on account of, any present or future taxes, levies, imposts, duties or other charges of whatsoever nature imposed by any government or any political or taxing
authority thereof (excluding federal taxation of the overall income of any Lender), provided, however, that if any of the Guarantors is required by law to make such deduction or withholding, such Guarantor shall forthwith (i) pay to the
Administrative Agent or any Lender, as applicable, such additional amount as results in the net amount received by the Administrative Agent or any Lender, as applicable, equaling the full amount which would have been received by the Administrative
Agent or any Lender, as applicable, had no such deduction or withholding been made, (ii) pay the full amount deducted to the relevant authority in accordance with applicable law, and (iii) furnish to the Administrative Agent or any Lender, as
applicable, certified copies of official receipts evidencing payment of such withholding taxes within 30 days after such payment is made; provided that to the extent the Administrative Agent or any Lender is able to, and does, credit the withheld
sum against taxes that would otherwise be owed, the Administrative Agent or the Lender, as the case may be, will return to the applicable Guarantor the sum actually paid by it as required by clause (i). 
  

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 IN WITNESS WHEREOF, each of the Guarantors has caused this Guaranty to be duly executed, under seal, by
its authorized officer as of the day and year first above written. 
  

			
	 LENNAR CORPORATION

		
	By:	 	/s/    JONATHAN M. JAFFE        
	 	 	

	 Name
	 	Jonathan M. Jaffe
	 Title
	 	Vice President
	 	 	 
	 Address

	 
	 Lennar Corporation

	 700 N.W. 107th Avenue

	 Miami, FL 33172

	 Attention: Waynewright Malcolm, Vice President

	 Telecopy No.: (305) 227-7115

	 
	 with a copy to:

	 
	 Lennar Homes of California, Inc.,
 a California corporation

	 24800 Chrisanta

	 Mission Viejo, CA 92691

	 Attention: Jonathan M. Jaffe, Vice President

	 Telecopy No.: (949) 598-8500

	 
	LNR PROPERTY CORPORATION
		
	By:	 	/s/    SHELLY L. RUBIN        
	 	 	

	 Name
	 	Shelly L. Rubin
	 Title
	 	Vice President
	 	 	 
	Address
	 
	LNR Property Corporation
	1601 Washington Avenue, Suite 800
	 Miami Beach, FL 33139

	 Attention: Shelly Rubin, Vice President - Finance

	Telecopy No.: (305) 695-5559
	 
	 with a copy to:

	 
	LNR Property Corporation
	1601 Washington Avenue, Suite 800
	 Miami Beach, FL 33139

	Attention: Zena Dickstein, Secretary
	Telecopy No.: (305) 695-5719

  

 8Master Repurchase Agreement

 Exhibit 10.31 
  

  
 MASTER REPURCHASE AGREEMENT 
  

  
 Dated as of November 26, 2003 
  

  
 by and among 
  
 DSHI BLUE, INC. 

as Seller, 
  
 LNR PROPERTY CORPORATION, 
 as Guarantor, 
  
 and 
  
 WACHOVIA CAPITAL INVESTMENTS, INC., 
 as Buyer 
  

  
 TABLE OF CONTENTS 

 

					
	 	  	 	  	Page

	 SECTION 1
	  	DEFINITIONS	  	1
			
	 1.1
	  	Defined Terms	  	1
	 1.2
	  	Other Definitional Provisions	  	14
			
	 SECTION 2
	  	INITIATION; CONFIRMATION; TERMINATION	  	14
			
	 2.1
	  	Initiation	  	14
	 2.2
	  	Confirmation	  	14
	 2.3
	  	Termination	  	15
	 2.4
	  	Extension of Termination Date	  	15
			
	 SECTION 3
	  	AMOUNTS AND TERMS OF TRANSACTIONS	  	15
			
	 3.1
	  	Maximum Purchase Price	  	15
	 3.2
	  	Minimum Purchase Amount	  	15
	 3.3
	  	Periodic Payments of Price Differential	  	15
			
	 SECTION 4
	  	MARGIN MAINTENANCE	  	16
			
	 4.1
	  	Margin Deficit	  	16
	 4.2
	  	Transfer of Cash or Additional Purchased Assets	  	16
	 4.3
	  	Attribution of Transferred Cash or Additional Purchased Assets	  	17
	 4.4
	  	Market Value Dispute Procedure	  	17
			
	 SECTION 5
	  	INCOME PAYMENTS; REQUIREMENTS OF LAW	  	17
			
	 5.1
	  	Income Payments	  	17
	 5.2
	  	Requirements of Law	  	18
			
	 SECTION 6
	  	SECURITY INTEREST	  	19
			
	 SECTION 7
	  	PAYMENT AND TRANSFER	  	20
			
	 SECTION 8
	  	SEGREGATION	  	20
			
	 8.1
	  	Segregation of Purchased Assets	  	20
	 8.2
	  	Required Disclosure for Certain Transactions	  	21

  

 -i- 

					
			
	 SECTION 9
	  	SUBSTITUTION	  	21
			
	 SECTION 10
	  	REPRESENTATIONS AND WARRANTIES	  	21
			
	 10.1
	  	Representations and Warranties of each Party	  	21
	 10.2
	  	Additional Representations and Warranties of the Repurchase Parties	  	22
	 10.3
	  	Financial Condition	  	27
			
	 SECTION 11
	  	CONDITIONS PRECEDENT	  	28
			
	 11.1
	  	Conditions Precedent to Initial Transaction	  	28
	 11.2
	  	Conditions Precedent to all Transactions	  	29
			
	 SECTION 12
	  	AFFIRMATIVE COVENANTS	  	31
			
	 12.1
	  	Financial Statements	  	31
	 12.2
	  	Certificates; Other Information	  	32
	 12.3
	  	Payment of Obligations	  	33
	 12.4
	  	Conduct of Business and Maintenance of Existence	  	33
	 12.5
	  	Maintenance of Property; Insurance	  	34
	 12.6
	  	Inspection of Property; Books and Records; Discussions	  	34
	 12.7
	  	Notices	  	34
	 12.8
	  	ERISA	  	35
	 12.9
	  	Information Relating to Purchased Assets	  	35
	 12.10
	  	Distributions in Respect of Purchased Assets	  	35
	 12.11
	  	Further Assurances	  	35
	 12.12
	  	Intentionally Omitted	  	36
	 12.13
	  	Security Interest; Concerning Purchased Assets	  	36
	 12.14
	  	Servicing of Underlying Mortgage Loans	  	36
	 12.15
	  	Guarantor Covenants	  	37
			
	 SECTION 13
	  	NEGATIVE COVENANTS	  	37
			
	 13.1
	  	Limitation on Indebtedness	  	37
	 13.2
	  	Limitation on Liens	  	37
	 13.3
	  	Limitation on Guarantee Obligations	  	38
	 13.4
	  	T imitation on Fundamental Changes	  	38
	 13.5
	  	Limitation on Transactions with Affiliates	  	38
	 13.6
	  	Limitation on Changes in Fiscal Year	  	38
	 13.7
	  	Unrelated Activities	  	38
	 13.8
	  	Governing Documents	  	39
	 13.9
	  	Separateness	  	39
	 13.10
	  	ERISA	  	40

  

 -ii- 

					
			
	 SECTION 14
	  	EVENTS OF DEFAULT; REMEDIES	  	40
			
	 14.1
	  	Events of Default	  	40
	 14.2
	  	Remedies	  	41
			
	 SECTION 15
	  	INDEMNIFICATION	  	44
			
	 SECTION 16
	  	MISCELLANEOUS	  	45
			
	 16.1
	  	Single Agreement	  	45
	 16.2
	  	Notices and Other Communications	  	45
	 16.3
	  	No Waivers, Etc	  	45
	 16.4
	  	Entire Agreement; Severability	  	45
	 16.5
	  	Assignments and Participations; Hypothecation of Purchased Assets; Termination	  	46
	 16.6
	  	GOVERNING LAW	  	46
	 16.7
	  	SUBMISSION TO JURISDICTION; WAIVERS	  	46
	 16.8
	  	WAIVER OF JURY TRIAL	  	47
	 16.9
	  	Counterparts	  	47
	 16.10
	  	Use of Employee Plan Assets	  	47
	 16.11
	  	Intent	  	48
	 16.12
	  	Disclosure Relating to Certain Federal Protections	  	48
	 16.13
	  	Confidentiality	  	49
	 16.14
	  	Treatment of Certain Information	  	49

  

			
	SCHEDULES	  	 
		
	 Schedule 1
	  	Representations and Warranties Re: Mortgage Assets
	 Schedule 2
	  	Asset Pricing
	 Schedule 3
	  	Control Account
	 Schedule 4
	  	Mortgage Asset File
	 Schedule 5
	  	Mortgage Asset File Checklist
	 Schedule 10.2(l)
	  	Locations of Repurchase Parties
	 Schedule 10.2(r)
	  	Subsidiaries
	 Schedule 10.3(a)
	  	Contingent Liabilities
	 Schedule 13.1
	  	Permitted Indebtedness
	 Schedule 16.2
	  	Addresses for Notices
		
	 EXHIBITS
	  	 
		
	 Exhibit A
	  	Form of Guarantee
	 Exhibit B-l
	  	Form of Confirmation–Mezzanine Loan Transactions
	 Exhibit B-2
	  	Form of Confirmation–Junior Interest Transactions
	 Exhibit C
	  	Form of Summary of Purchased Asset Key Data
	 Exhibit D
	  	Form of Covenant Compliance Certificate
	 Exhibit E
	  	Form of Servicer Notice and Agreement

  

 -iii- 

			
	 Exhibit F
	  	Form of Exception Report
	 Exhibit G-l
	  	Form of Warehouse Lender’s Release Letter
	 Exhibit G-2
	  	Form of Seller’s Release Letter
	 Exhibit H
	  	Form of Account Agreement

  

 -iv- 

  
 MASTER REPURCHASE AGREEMENT

  
 MASTER REPURCHASE AGREEMENT, dated as of November 26, 2003 (as
amended, supplemented or otherwise modified from time to time, this “Agreement”), by and among DSHI BLUE, INC., a Delaware corporation (the “Seller”), LNR PROPERTY CORPORATION, a Delaware corporation (the
“Guarantor”) and WACHOVIA CAPITAL INVESTMENTS, INC. (the “Buyer”). 
  
 RECITALS 
  
 From time to time the Seller and the Buyer may enter into transactions, subject to the terms and conditions hereof, pursuant to which the Seller agrees to sell to the Buyer and the Buyer agrees to purchase from the Seller certain Mortgage
Assets (defined below) against payment by the Buyer of a purchase price, with a simultaneous agreement by the Buyer to sell to the Seller and by the Seller to repurchase from the Buyer such Mortgage Assets at a date certain, as specified in the
related Confirmation (defined below), against payment by the Seller of a Repurchase Price (as defined below). 
  
 NOW THEREFORE, the parties hereto hereby agree as follows: 
  
 Section 1. DEFINITIONS 
  
 1.1 Defined Terms. As used in this Agreement, the following terms shall have the following meanings: 
  
 “Acceptable Special Servicer”: (a) an Affiliate of the
Seller, reasonably acceptable to the Buyer, in the business of servicing distressed commercial or multifamily mortgage loans, or (b) any other Person acceptable to the Buyer in its sole discretion. 
  
 “Act of Insolvency”: with respect to any party, (i) the
commencement by such party as debtor of any case or proceeding under any bankruptcy, insolvency, reorganization, liquidation, moratorium, dissolution, delinquency or similar law, or such party seeking the appointment or election of a receiver,
conservator, trustee, custodian or similar official for such party or any substantial part of its property, or the convening of any meeting of creditors for purposes of commencing any such case or proceeding or seeking such an appointment or
election, (ii) the commencement of any such case or proceeding against such party, or another seeking such an appointment or election, or the filing against a party of an application for a protective decree under the provisions of the Securities
Investor Protection Act of 1970, which (A) is consented to or not timely contested by such party, (B) 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 (C) is not dismissed within 30 days, (iii) the making by such party of a general assignment for the benefit of creditors, or (iv) the admission in writing by such party of such party’s inability to pay such
party’s debts as they become due. 
  
 “Additional
Purchased Assets: as defined in Section 4.1. 
  

 “Affiliate”: any Person which directly or indirectly controls, or is under common
control with, or is controlled by, another Person. As used in this definition, “control” (including, with its correlative meanings, “controlled by” and “under common control with”) shall mean possession, directly or
indirectly, of power to direct or cause the direction of management or policies (whether through ownership of securities or partnership or other ownership interests, by contract or otherwise); provided that, in any event, any Person which
owns directly or indirectly 10% or more of the securities having ordinary voting power for the election of directors or other governing body of a corporation or 10% or more of the partnership or other ownership interests of any other Person (other
than as a limited partner of such other Person) will be deemed to control such corporation or other Person. 
  
 “Agreement”: this Master Repurchase Agreement, as amended, supplemented or otherwise modified from time to time. 
  
 “Alternative Market Price Quote”: The good faith
determination of the price at which a Mortgage Asset could readily be sold by a bona fide third-party broker or dealer that (a) is not the Seller, the Guarantor or any Affiliate of the Seller or the Guarantor, (b) regularly engages in the business
of buying and/or selling assets similar in type, size and structure as the Mortgage Assets and in the same jurisdiction as the related Underlying Mortgaged Property, and (c) is familiar with the market for such Mortgage Assets. 
  
 “Asset Value”: as of any date of determination for each
Eligible Asset, with respect to a Mortgage Asset of a certain Class and applicable Type of Underlying Mortgaged Property, the lesser of (x) the product of the Book Value of such Mortgage Asset times the Purchase Rate applicable thereto and (y) the
product of the Market Value of such Mortgage Asset times the LTV applicable thereto; provided, that the Asset Value shall be deemed to be zero with respect to each Mortgage Asset (i) in respect of which there is a breach of a representation
and warranty set forth in Schedule 1 (assuming each representation and warranty is made as of the date the Asset Value is determined) and (ii) in respect of which the complete Mortgage File has not been delivered to the Buyer or its designee
in accordance with Section 7 of this Agreement. 
  
 “Book
Value”: with respect to any Mortgage Asset at any time, an amount, as certified by the Seller, equal to the price which the Seller initially paid or advanced for or in respect of such Mortgage Asset as it may be marked down by the Seller
from time to time, including any loss/price adjustments, less an amount equal to the sum of all principal paydowns paid and realized losses recognized relating to such Mortgaged Asset. 
  
 “Breakage Costs”: as defined in Section 3.3(b). 

 
 “Business Day”: any day other than (i) a Saturday or
Sunday or (ii) a day on which the New York Stock Exchange, the Federal Reserve Bank of New York, Wachovia Bank, N.A. or banks in the State of Florida are authorized or obligated by law or executive order to be closed. 
  

 -2- 

 “Buyer’s Margin Amount”: with respect to any Purchased Loan as of any date, the
amount obtained by dividing the Repurchase Price for such Purchased Loan by the applicable Buyer’s Margin Percentage. 
  
 “Buyer’s Margin Percentage”: with respect to any Transaction as of any date, the “Buyer’s Margin Percentage”
specified for the applicable Type in Schedule 2 attached to this Agreement. 
  
 “Capital Stock”: any and all shares, interests, participations or other equivalents (however designated) of capital stock of a corporation, any and all equivalent equity ownership interests in a
Person which is not a corporation, including, without limitation, any and all member or other equivalent interests in any limited liability company and any and all warrants or options to purchase any of the foregoing. 
  
 “Class”: with respect to a Mortgage Asset, such Mortgage
Asset’s classification as a Junior Interest or a Mezzanine Loan. 
  
 “Closing Date”: November 26, 2003. 
  
 “Code”: the Internal Revenue Code of 1986 as amended from time to time, or any replacement or successor statute, and the regulations promulgated thereunder from time to time. 
  
 “Commercial Property”: with respect to a Mortgage Asset of
any Class, a parcel of commercial real property of a permitted Type, including all improvements, buildings and fixtures thereon. 
  
 “Commonly Controlled Entity”: an entity, whether or not incorporated, which is under common control with a Seller within the meaning of
Section 4001 of ERISA or is part of a group which includes Seller and which is treated as a single employer under Section 414 of the Code. 
  
 “Confirmation”: as defined in Section 2.2. 
  
 “Contractual Obligation”: as to any Person, any provision of any security issued by such Person or of any agreement, instrument or
undertaking to which such Person is a party or by which it or any of its property is bound. 
  
 “Control Account”: the account set forth on Schedule 3 hereto into which payments of Income with respect to the Purchased Assets will be deposited by each Servicer and trustee, as applicable.

  
 “Costs”: as defined in Section 15.

  
 “Debt Service Coverage Ratio” or
“DSCR”: with respect to any Mortgage Asset, as of any date of determination, for the period for which the following information is provided to the Seller by the obligor with respect to such Mortgage Asset pursuant to the Mortgage
Asset File documents, (a) the aggregate Net Cash Flow in respect of the Underlying Mortgaged 

  

 -3- 

 
Properties relating to such Mortgage Asset for such period to (b) the sum of (i) the aggregate amount of all amounts due for such period in respect of
all Indebtedness that was outstanding from time to time during such period that is secured, directly or indirectly, by such Underlying Mortgaged Properties (including, without limitation, by way of a pledge of the equity of the owner(s) of such
Underlying Mortgaged Properties) or that is otherwise owing by the owner(s) of such Underlying Mortgaged Properties, including, without limitation, all scheduled principal and/or interest payments due for such period in respect of each Mortgaged
Asset that is secured or supported by such Underlying Mortgaged Properties plus (ii) the amount of all ground lease payments to be made in respect of such Underlying Mortgaged Properties during such period, as any of the foregoing elements of
DSCR may be adjusted by Buyer as determined by Buyer; provided, that all such calculations shall be made taking into account any senior or pari passu debt secured directly or indirectly by the applicable Underlying Mortgaged Property.

  
 “Default”: any of the events specified in
Section 14.1, whether or not any requirement for the giving of notice, the lapse of time, or both, or any other condition, has been satisfied. 
  
 “Electronic Transmission”: the delivery of information in an electronic format acceptable to the applicable recipient thereof, which
delivery shall, in each case, be immediately followed by a written confirmation to the applicable recipient at the address specified in Schedule 16.2. 
  
 “Eligible Asset”: a Mortgage Asset which as of any date of determination meets the DSCR and LTV criteria set forth in Schedule 2
of this Agreement opposite the applicable Type of Underlying Mortgaged Property for the Purchase Rate and Pricing Rate requested by the Seller in the related Confirmation and any other security or asset acceptable to the Buyer in its sole and
absolute discretion; provided, that Eligible Assets shall in no event include: 
  
 (a) any Junior Interest that entitles the holder to payments based only or disproportionately on the interest portion of payments on the
Underlying Mortgage Loans; 
  
 (b) any Junior
Interest that entitles the holder to payments based only or disproportionately on the principal portion of payments on the Underlying Mortgage Loans; 
  
 (c) any Mortgage Asset as to which the Buyer determines in its sole discretion that such Mortgage Asset or any related Underlying Mortgage
Loan or Underlying Mortgaged Property is not acceptable; 
  
 (d) any Mortgage Asset that is in default after giving effect to applicable notice, grace and cure periods, if any; 
  
 (e) any Mortgage Asset consisting of a Junior Interest with a maturity that is five (5) years or more after the applicable Purchase Date;

  
 (f) any Mortgage Asset that is subject to a
fixed rate of interest; 
  

 -4- 

 (g) any Mortgage with an LTV in excess of the applicable percentage set forth on
Schedule 2 to this Agreement; and 
  
 (h)
any Mortgage Asset with respect to which the DSCR is less than the applicable percentage set forth in Schedule 2 to this Agreement. 
  
 “Environmental Laws”: any and all foreign, Federal, state, local or municipal laws, rules, orders, regulations, statutes, ordinances,
codes, decrees, requirements of any Governmental Authority or requirements of law (including common law) regulating, relating to or imposing liability or standards of conduct concerning protection of human health or the environment, as now or may at
any time hereafter be in effect. 
  
 “ERISA”: the
Employee Retirement Income Security Act of 1974, as amended from time to time. 
  
 “Eurodollar Rate”: with respect to each day during any calendar month a Transaction is outstanding, the rate per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) as of the first
calendar day of such month, appearing on Telerate Page 3750 (or any successor page) as the one month London interbank offered rate for deposits in U.S. Dollars at approximately 11:00 a.m., London time, in an amount comparable to the amount of the
Transactions to be outstanding on such day. If for any reason such rate is not available, the term “Eurodollar Rate” shall mean, the rate per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) as of the first calendar day of
such month, appearing on Reuters Screen LIBO Page as the one month London interbank offered rate for deposits in U.S. Dollars at approximately 11:00 a.m., London time, on such date in an amount comparable to the amount of the Transactions to be
outstanding on such day; provided, however, if more than one rate is specified on Reuters Screen LIBO Page, the applicable rate shall be the arithmetic mean of all such rates; provided further, if for any reason such rate is not
available, the term Eurodollar Rate shall mean the rate per annum (rounded upwards, if necessary, to the nearest 1/100 of 1 percent) as of the first calendar date of each month quoted by another third party source for eurodollar rate quotes
generally then used or thereafter to be used by Buyer to determine eurodollar rates for its eurodollar rate borrowing customers. 
  
 “Extension Fee”: shall have the meaning set forth in the Fee Letter. 
  
 “Extension Period”: shall have the meaning set forth in Section 2.4 of this Agreement. 
  
 “Event of Default”: as defined in Section 14.1. 

 
 “Fee Letter”: the Fee Letter, dated November 26, 2003,
between the Buyer and the Seller, as amended, supplemented or otherwise modified from time to time. 
  
 “Fitch”: Fitch Investors Service, L.P., or any successor thereto. 
  
 “GAAP”: generally accepted accounting principles as in effect from time to time in the United States.

  

 -5- 

 “Governing Documents”: as to any Person, the articles or certificate of incorporation
and by-laws or other organizational or governing documents of such Person. 
  
 “Governmental Authority”: any nation or government, any state or other political subdivision thereof and any entity exercising executive, legislative, judicial, regulatory or administrative functions
of or pertaining to government and any court or arbitrator having jurisdiction over Seller, any of its Subsidiaries or any of their properties. 
  
 “Guarantee”: the guarantee made by the Guarantor in favor of the Buyer, dated as of the date hereof, in the form of Exhibit A
attached hereto. 
  
 “Guarantee Obligation”: as
to any Person (the “guaranteeing person”), any obligation (determined without duplication) of the guaranteeing person (or any other Person including any bank under any letter of credit if the guaranteeing person has issued a
reimbursement, counter indemnity or similar obligation in favor of such other Person) guaranteeing or in effect guaranteeing any Indebtedness, leases, dividends or other obligations (the “primary obligations”) of any other third
Person (the “primary obligor”) in any manner, whether directly or indirectly, including any obligation of the guaranteeing person, whether or not contingent, (i) to purchase any such primary obligation or any property constituting
direct or indirect security therefor, (ii) to advance or supply funds (1) for the purchase or payment of any such primary obligation or (2) to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth
or solvency of the primary obligor, (iii) to purchase property, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such primary obligation or
(iv) otherwise to assure or hold harmless the owner of any such primary obligation against loss in respect thereof; provided, however, that the term Guarantee Obligation shall not include endorsements of instruments for deposit or
collection in the ordinary course of business. The amount of any Guarantee Obligation of any guaranteeing person shall be deemed to be the maximum stated amount of the primary obligation relating to such Guarantee Obligation (or, if less, the
maximum stated liability set forth in the instrument embodying such Guarantee Obligation), provided, however, that in the absence of any such stated amount or stated liability, the amount of such Guarantee Obligation shall be such
guaranteeing person’s maximum reasonably anticipated liability in respect thereof as reasonably determined by the Guarantor in good faith, subject to the Seller’s approval. 
  
 “Guarantor”: as defined in the introductory paragraph hereof. 
  
 “Income”: with respect to any Mortgage Asset at any time,
any principal thereof and all interest, dividends or other distributions thereon. 
  
 “Indebtedness”: of any Person at any date means, without duplication, (a) all indebtedness of such Person for borrowed money, (b) all obligations of such Person for the deferred purchase price of
property or services (other than trade liabilities and other accounts payable and accrued expenses incurred in the ordinary course of business and payable in accordance with customary practices, which are not sixty (60) days or more past due), to
the extent such obligations constitute indebtedness for the purposes of GAAP, (c) any other indebtedness of such Person which is evidenced by a note, bond, debenture or similar instrument, 

  

 -6- 

 
(d) all obligations of such Person under financing leases and capital leases, (e) all obligations of such Person in respect of acceptances issued or created
for the account of such Person, (f) all Guarantee Obligations of such Person (excluding in any calculation of consolidated indebtedness of the Guarantor, Guarantee Obligations of the Guarantor in respect of primary obligations of any Subsidiary),
(g) all reimbursement obligations of such Person for letters of credit and other similar contingent liabilities, (h) all liabilities secured by any Lien (other than Liens for taxes not yet due and payable) on any property owned by such Person even
though such Person has not assumed or otherwise become liable for the payment thereof, (i) any repurchase obligation or liability of such Person or any of its Subsidiaries with respect to accounts or notes receivable sold by such Person or any of
its Subsidiaries, (j) Senior Preferred Stock, (k) such Person’s pro rata share of recourse debt of Special Investment Affiliates and any recourse loans where such Person is liable as a general partner or otherwise, and (1) all obligations to
make advances and contributions to Investment Affiliates. 
  
 “Indemnified Party”: as defined in Section 15. 
  
 “Independent Director”: a natural Person who is not at the time of initial appointment as Independent Director, and may not have been at any time during the five years preceding such initial
appointment or at any time while serving as Independent Director, (i) a stockholder (with the exception of the direct or indirect ownership of a relatively incidental number of shares in the indirect parent of the Seller by such Independent Director
or an Industry Company providing such Independent Director), director (with the exception of serving as the Independent Director of the Seller), officer, employee, partner, member, attorney or counsel of the Seller or any Affiliate; (ii) a creditor,
customer, supplier or other person who derives any of its purchases or revenues from its activities with the Seller or any Affiliate; (iii) a natural Person controlling or under common control with any Person that would be excluded from serving as
an Independent Director under (i) or (ii), above; or (iv) a member of the immediate family of a natural Person excluded from servicing as an Independent Director under (i) or (ii), above; provided, however, (v) a natural Person who
satisfies the foregoing definition other than under (ii), above, shall not be disqualified from serving as an Independent Director of the Seller if such individual is an independent director provided by an Industry Company, and (vi) a natural Person
who otherwise satisfies the foregoing definition except for being a past, existing or future director of an Affiliate of the Seller who shall otherwise be employed by an Industry Company that is providing, has provided or shall provide a director of
an Affiliate of the Seller, shall be permitted to serve as an Independent Director of the Seller for so long as such individual is an independent director provided by an Industry Company and is not at the time of initial appointment, or at any time
while serving as such Independent Director, an Independent Director of an Affiliate whose organizational documents contain restrictions on its activities substantially similar to those set forth in Section 9 of the Certificate of Incorporation of
the Guarantor and that holds a direct or indirect equity interest in the Seller. 
  
 “Industry Company”: a nationally recognized company that provides professional independent directors and other corporate services in the ordinary course of its business. 
  
 “Insolvency”: with respect to any Multiemployer Plan, the
condition that such Plan is insolvent within the meaning of Section 4245 of ERISA. 
  

 -7- 

 “Insolvent”: at any time, a Multiemployer Plan is insolvent within the meaning of
Section 4245 of ERISA. 
  
 “Interest Rate Protection
Agreement”: with respect to any or all of the Mortgage Assets, any short sale of US Treasury securities, or futures contract, or options related contract, or 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 and acceptable to Buyer. 
  
 “Junior Interest”: a junior participation interest or rated certificate in a performing commercial real
estate loan or a “B note” in an “A/B structure” in a performing commercial real estate loan for which the combined DSCR is not less than that set forth in Schedule 2, taking into account, in the calculation of the LTV and
the DSCR of such Junior Interest, any senior or pari passu debt secured directly or indirectly by the applicable Underlying Mortgaged Property. 
  
 “Junior Interest Note”: the original executed promissory note or other evidence of a Junior Interest, which shall bear a floating rate of
interest and shall mature within five (5) years after the applicable Purchase Date of the related Junior Interest. 
  
 “Lien”: any mortgage, pledge, hypothecation, deposit arrangement, preference, priority, security interest, collateral assignment,
statutory or consensual lien, charge, restriction or other encumbrance of any kind (including any repurchase agreement, any conditional sale or other title retention agreement or lease in the nature thereof, any filing or agreement to file a
financing statement as debtor under the Uniform Commercial Code on any property leased to any Person under a lease which is not in the nature of a conditional sale or title retention agreement, or any subordination agreement in favor of another
Person). For purposes of this Agreement, a Lien on the Capital Stock of any Person shall be deemed to constitute a Lien on the assets of said Person. 
  
 “Loan-to-Value Ratio” or “LTV”: with respect to any Mortgage Asset, the ratio of the outstanding principal amount of such
Mortgage Asset at the time of a Transaction for such Mortgage Asset to the Market Value of the related Underlying Mortgaged Property at such time; provided, that all such calculations shall be made taking into account any senior or pari
passu debt secured directly or indirectly by the applicable Underlying Mortgaged Property. 
  
 “Margin Deficit: as defined in Section 4.1. 
  
 “Market Value”: as of any date in respect of any Mortgage Asset, the price at which such Mortgage Asset could readily be sold, which shall be determined by a third-party appraiser selected by the
Buyer in its sole discretion, as such determination of price may be adjusted by the Buyer as determined by the Buyer, which price may be determined to be zero. 
  

“Material Adverse Effect”: a material adverse effect on (a) the property, business, operations, financial condition or prospects of
the Seller or the Guarantor, (b) the ability of the Seller to perform its obligations under this Agreement or the Guarantor to perform its obligations under the Guarantee, (c) the validity or enforceability of either this Agreement or the Guarantee,
(d) the rights and remedies of the Buyer under this Agreement or the Guarantee, or (e) the timely 

  

 -8- 

 
payment of the Repurchase Price or any Price Differential or other amounts payable in connection therewith. 
  
 “Materials of Environmental Concern”: any mold, any
petroleum (including crude oil or any fraction thereof) or petroleum products (including, without limitation, gasoline) or any hazardous or toxic substances, materials or wastes, defined as such in or regulated under any Environmental Law,
including, without limitation, asbestos, polychlorinated biphenyls, and urea-formaldehyde insulation. 
  
 “Maximum Purchase Price”: $100,000,000. 
  
 “Mezzanine Loan”: a performing mezzanine loan secured by pledges of the entire equity ownership interests in the entities that own
directly or indirectly the Underlying Mortgaged Property. 
  
 “Mezzanine Note”: a note or other evidence of Mezzanine Loan indebtedness. 
  
 “Minimum Purchase Amount”: $250,000. 
  
 “Moody’s”: Moody’s Investors Service, Inc., or any successor thereto. 
  
 “Mortgage Asset”: a Junior Interest or a Mezzanine Loan
having an Underlying Mortgaged Property of a permitted Type. 
  
 “Mortgage Asset File”: as defined in Section 7.1 (c). 
  
 “Mortgage Asset File Checklist”: as to each Mortgage Asset, the document checklist attached hereto as Schedule 5. 
  
 “Multiemployer Plan”: a Plan which is a multiemployer plan as defined as such in Section 4001(a)(3) of
ERISA. 
  
 “Net Cash Flow”: with respect to any
Underlying Mortgaged Property, for any period, the net income (or deficit) attributable to such property for such period, determined in accordance with GAAP less the amount of all (a) capital expenditures incurred, (b) reserves established,
(c) leasing commissions paid and (d) tenant improvements paid during such period, in each case attributable to such property, plus all non-cash charges deducted in the calculation of such net income. 
  
 “Non-Wachovia Assets”: any Mortgage Asset issued or extended
by a Person other than Wachovia Capital Investments, Inc. or an Affiliate of Wachovia Capital Investments, Inc. 
  
 “Original Purchase Date”: the date a Purchased Asset was purchased by the Seller or its Affiliates from Wachovia Capital Investments,
Inc. or its Affiliates other than pursuant to this Agreement. 
  

 -9- 

 “PBGC”: the Pension Benefit Guaranty Corporation established pursuant to Subtitle A of
Title IV of ERISA. 
  
 “Periodic Advance Repurchase
Payment”: as defined in Section 3.3(a). 
  
 “Person”: any legal person, including any individual, corporation, limited liability company, partnership, joint venture, estate, association, joint stock company, trust, unincorporated organization or government or any
agency or political subdivision thereof, or any other entity. 
  
 “Plan”: at any time, any employee benefit plan which is covered by ERISA and in respect of which the Seller or a Commonly Controlled Entity is (or, if such plan were terminated at such time, would under Section 4069 of
ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA. 
  
 “Pledge Agreement”: that certain Pledge Agreement, dated as of November 26, 2003, made by Seller for the benefit of Buyer. 
  
 “Price Differential”: with respect to any Transaction as of any date, the aggregate amount obtained by
daily application of the Pricing Rate for such Transaction to the Purchase Price for such Transaction on a 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 date of determination (reduced by any amount of such Price Differential previously paid by Seller to Buyer with respect to such Transaction). 
  
 “Pricing Rate”: as of any date, with respect to a Transaction involving a Purchased Loan of any Type, the
rate per annum equal to the sum of the Eurodollar Rate plus the rate set forth in Schedule 2 attached to this Agreement in the column corresponding to the applicable Type; provided however, that during the continuance of Event
of Default, the Pricing Rate for each Type shall be increased by an additional three hundred basis points (3.0%). 
  
 “Prime Rate”: the prime rate announced to be in effect from time to time by Buyer as its prime rate. The prime rate is not intended to be
the lowest general rate of interest charged by Buyer to its customers. 
  
 “Promissory Note”: that certain Demand Promissory Note, dated as of November 26, 2003, made by Guarantor in favor of Seller. 
  
 “Purchase Date”: the date on which Purchased Assets are to be transferred by the Seller to the Buyer or the Buyer’s designee.

  
 “Purchase Price”: on each Purchase Date, the
price at which Mortgage Assets are transferred by the Seller to the Buyer or the Buyer’s designee, which price shall equal the Asset Value for such Mortgage Assets on the Purchase Date. 
  
 “Purchase Rate”: with respect to a Mortgage Asset of a
certain Class, the “Purchase Rate” set forth on Schedule 2 opposite the applicable Type of Underlying Mortgaged Property. 
  

 -10- 

 “Purchased Assets”: Eligible Assets transferred by the Seller to the Buyer in a
Transaction hereunder, and any Eligible Assets substituted therefor in accordance with Section 9 hereof. The term “Purchased Assets” with respect to any Transaction at any time shall also include Additional Purchased Assets delivered
pursuant to Section 4 hereof. 
  
 “Rating”: in
respect of any Mortgage Asset, if applicable, a rating assigned by S&P, Moody’s, Fitch or another nationally recognized rating agency acceptable to the Buyer. Unless otherwise noted, a rating shall reference the rating designations used by
S&P. Any reference to a rating assigned by any rating agency other than S&P shall refer to the rating which is the nearest equivalent to the designation used by S&P. 
  
 “Related Documents”: the Guarantee, the Pledge Agreement, the Promissory Note, each Confirmation, and any
other document executed in connection with this Agreement. 
  
 “Replacement Assets”: as defined in Section 14.2(e)(ii). 
  
 “Repurchase Date”: for each Transaction, 5:00 p.m., New York City time, on the Termination Date, or if such date is not a Business Day, the next succeeding Business Day, or such earlier date as the
related Purchased Assets may be repurchased as agreed to between Seller and Buyer or pursuant to Section 2.3, Section 4.1 or Section 14.2 of this Agreement. 
  
 “Repurchase Parties”: the collective reference to the Seller and the Guarantor. 
  
 “Repurchase Price”: the price at which Purchased Assets are
to be transferred from the Buyer or its designee to the Seller upon termination of a Transaction, which will be determined in each case (including Transactions terminable upon demand) as the sum of the Purchase Price and the Price Differential as of
the date of such determination decreased the amount of by all cash, Income and Periodic Advance Repurchase Payments actually received by the Buyer. 
  
 “Reorganization”: at any time, a Multiemployer Plan is in reorganization within the meaning of Section 4241 of ERISA. 
  
 “Reportable Event”: any of the events set forth in Section
4043(c) of ERISA or the regulations thereunder, other than those events as to which the thirty day notice period is waived under subsections .21, .22, .23, .26, .27 or .28 of PBGC Reg. § 4043. 
  
 “Requirement of Law”: as to any Person, the Governing
Documents of such Person, if applicable, and any law, treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which
such Person or any of its property is subject. 
  
 “Responsible Officer”: as to any Repurchase Party, each of the chief executive officer and the president, or, with respect to financial matters, the chief financial officer, chief accounting officer or controller of such
entity, as applicable. 
  
 “Revolving Credit
Agreement”: the Third Amended and Restated Revolving Credit Agreement, dated as of November 27, 2002, among Guarantor, the Lenders named 

  

 -11- 

 
therein, Bank of America, N.A., as administrative agent, Guaranty Bank, as syndication agent, and Fleet National Bank and U.S. Bank, National Association, as
co-documentation agents with Bank of America Securities LLC, as sole lead arranger and sole book manager. 
  
 “S&P”: Standard & Poor’s Ratings Group, a division of The McGraw-Hill Companies, Inc., or any successor thereto. 

 
 “SEC”: the Securities and Exchange Commission or any
successor thereto. 
  
 “Servicer”: as defined in
Section 12.14. 
  
 “Servicer Notice and
Agreement”: as defined in Section 12.14. 
  
 “Servicing Standard”: with respect to any Servicer the servicing and administration of the Underlying Mortgage Loans, Underlying Mortgaged Properties or Mezzanine Loans, if applicable, for which it is responsible (a) in the
same manner in which, and with the same care, skill, prudence and diligence with which, the Servicer, generally services and administers similar mortgage loans, mezzanine loans, or properties with similar borrowers (i) for other third-parties,
giving due consideration to customary and usual standards of practice of prudent institutional commercial mortgage lenders or mezzanine lenders, as applicable, servicing their own loans or properties or (ii) held in its own portfolio, whichever
standard is higher, (b) with a view to the maximization of the recovery on the Underlying Mortgage Loan, Mezzanine Loan, or Underlying Mortgaged Property, with a view towards the maximization of recovery on the Underlying Mortgage Loan or Mezzanine
Loan to the Mezzanine Note Holder certificateholders and the related Junior Interest holder (as a collective whole) or the holder of the Mezzanine Note, as applicable, and (c) without regard to (i) any relationship that the Servicer or any Affiliate
thereof may have with the related mortgagor, any mortgage loan seller or any other party to the transaction or any of their Affiliates; (ii) the ownership of any Junior Interest or Mezzanine Loan or other interests by the Servicer or by any
Affiliate thereof; (iii) the right of the Servicer to receive compensation or other fees for its services; (iv) the obligations of the Servicer to make advances; (v) the ownership, servicing or management by the Servicer or any Affiliate thereof for
others of any other mortgage loans or mezzanine loans or mortgaged property; (vi) any obligation of the Servicer or any Affiliate of the Servicer to cure a breach of a representation and warranty with respect to an Underlying Mortgage Loan or
Mezzanine Loan; and (vii) any debt the Servicer or any Affiliate of either has extended to any mortgagor, obligor, or any Affiliate of such mortgagor or obligor. 
  
 “Subordinated Debt”: Indebtedness of the Guarantor and its Subsidiaries that is contractually subordinated
in right of payment and otherwise to the Indebtedness under this Agreement and the Related Documents, such subordination to be on terms acceptable to the Buyer. 
  

“Subsidiary”: as to any Person, a corporation, partnership or other entity of which shares of stock or other ownership interests
having ordinary voting power (other than stock or such other ownership interests having such power only by reason of the happening of a contingency) to elect a majority of the board of directors or other managers of such corporation, partnership or
other entity are at the time owned, or the management of which is otherwise 

  

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controlled, directly or indirectly through one or more intermediaries, or both, by such Person, and provided such corporation, partnership or other
entity is consolidated with such Person for financial reporting purposes under GAAP. 
  
 “Termination Date”: November 26, 2007, as such date may be extended pursuant to Section 2.4. 
  
 “Transaction”: a transfer of Eligible Assets, made pursuant to a Confirmation and in accordance with the terms and conditions of this
Agreement, from the Seller to the Buyer against payment by the Buyer of the Purchase Price, with a simultaneous agreement by the Buyer and the Seller that such securities shall be repurchased by the Seller from the Buyer on the Repurchase Date
against payment by the Seller of the Repurchase Price. 
  
 “Transaction Period”: the period from and including the date hereof to, but not including, the Termination Date. 
  
 “Transferee”: as defined in Section 16.5. 
  
 “True Sale Opinion”: a “true sale/nonconsolidation” opinion of outside counsel to Buyer in form and substance satisfactory to
Buyer. 
  
 “Type”: with respect to a Commercial
Property or an Underlying Mortgaged Property, such property’s classification as one of the following: multifamily, retail, office, industrial, hotel or self storage. 
  
 “Underlying Mortgage Loan”: a mortgage loan secured by an Underlying Mortgaged Property. 
  
 “Underlying Mortgaged Property”: (a) in the case of a Junior
Interest, the Commercial Property securing such Junior Interest (if the Junior Interest is of the type described in clause (a) of the definition thereof), or the Commercial Property securing the Mortgage Loan in which such Junior Interest represents
a junior participation (if the Junior Interest is of the type described in clause (b) of the definition thereof) and (b) in the case of a Mezzanine Loan, the Commercial Property that is held by the Person the Capital Stock of which is pledged as
collateral security for such Mezzanine Loan. 
  
 “Underwriting Package”: any internal document prepared by the Seller for its evaluation of a Junior Interest or Mezzanine Loan, to include at a minimum the data required in the relevant Confirmation. In addition, with
respect to any Mortgage Asset, the Underwriting Package shall include, to the extent applicable,: (i) a copy of the appraisal, (ii) the current rent roll, (iii) a minimum of two years of property level financial statements to the extent available,
(iv) current financial statement of the obligor on the Underlying Mortgage Loan, and if applicable, the Mezzanine Loan, (v) the form of Junior Interest Note, participation agreement or Mezzanine Note, (vi) a copy of the intercreditor agreement with
the first lienholder, or the intercreditor agreement between the Mezzanine Loan holder and the Underlying Mortgage Loan holder, as applicable, and/or the participation agreement (as applicable), (vii) any financial analysis, site inspection, market
studies, and any other diligence conducted by the Seller and (viii) such further documents or information as the Buyer may reasonably request. 
  

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 “Wachovia Assets”: any Mortgage Asset issued or extended by Wachovia Capital
Investments, Inc. or an Affiliate of Wachovia Capital Investments, Inc. 
  
 1.2 Other Definitional Provisions. 
  
 (a) As used
herein, and any certificate or other document made or delivered pursuant hereto, accounting terms relating to any Repurchase Party not defined in Section 1.1, and accounting terms partly defined in Section 1.1, to the extent not defined, shall have
the respective meanings given to them under GAAP. 
  
 (b) The
words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and section, schedule and
exhibit references are to this Agreement unless otherwise specified. 
  
 (c) The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms. 
  
 Section 2. INITIATION; CONFIRMATION; TERMINATION 
  
 2.1 Initiation. An agreement to enter into a Transaction may be made during the Transaction Period in writing at the initiation of the Seller. On
the Purchase Date for the Transaction, provided that no Default or Event of Default has occurred and is then continuing, the Purchased Assets shall be transferred to the Buyer or its agent against the transfer of the Purchase Price to an
account of the Seller on the books of the Buyer in its offices as set forth on Schedule 16.2, or by wire transfer of such funds to another account designated in writing by the Seller. 
  
 2.2 Confirmation. 
  
 (a) The Seller shall promptly deliver to the Buyer a written confirmation of
each Transaction, substantially in the form of Exhibit B-1 or Exhibit B-2, as applicable, attached hereto (a “Confirmation”), which Confirmation must be received by the Buyer prior to 11:00 a.m., New York City
time, three (3) Business Days prior to the requested Purchase Date. The Confirmation shall specify any additional terms or conditions of the Transaction not inconsistent with this Agreement. In the event of any conflict between the terms of such
Confirmation and this Agreement, the terms of this Agreement shall prevail. 
  
 (b) For each proposed Transaction, the Seller shall deliver the Underwriting Package to the Buyer not less than ten (10) Business Days prior to the date of the requested Purchase Date in the case of Non-Wachovia
Assets and five (5) Business Days in the case of all other Eligible Assets, and the Buyer shall have the right to approve or disapprove each such Eligible Asset in its sole discretion. The Buyer agrees that it shall notify the Seller of its approval
or disapproval of (i) each proposed Eligible Non-Wachovia Assets within ten (10) Business Days and all other Eligible Assets within five (5) Business Days from, in each case, its receipt of the complete Underwriting Package and any supplemental
requests (requested orally or in writing) relating to such proposed Non-Wachovia Asset or other Eligible Asset. Unless the Buyer notifies the Seller of its approval of such Eligible Asset within the applicable aforesaid time period, the 

  

 -14- 

 
Buyer shall be deemed not to have approved such proposed Eligible Asset. For purposes of this Section 2.2(b), any Underwriting Package received by the Buyer
after 1:00 p.m., New York City time, shall be deemed to be received on the following Business Day. 
  
 2.3 Termination. In the case of individual Transactions terminable upon demand, such demand shall be made by the Buyer or the Seller, no later than
such time as is customary in accordance with market practice, by telephone or otherwise on or prior to the business day on which such termination will be effective. On the date specified in such demand, or on the date fixed for termination in the
case of Transactions having a fixed term, termination of the Transaction will be effected by transfer to the Seller or its agent of the Purchased Assets and any Income in respect thereof received by the Buyer (and not previously credited or
transferred to, or applied to the obligations of, the Seller pursuant to Section 5 hereof) against the transfer of the Repurchase Price to an account of the Buyer. 
  
 2.4 Extension of Termination Date. The Seller may, by written request delivered to the Buyer no earlier than the date
that is six (6) months and one day after the date hereof, but not less than thirty (30) days prior to the Termination Date, request that the Termination Date be extended by one year. Upon receipt of any such request, and provided that (a) no
Default or Event of Default shall have occurred and then be continuing, (b) the Extension Fee shall have been paid to the Buyer and (c) the Buyer shall have approved the extension in its sole discretion, the Buyer shall extend the Termination Date
to November 26, 2008 (the “Extension Period”); provided, however, that during the Extension Period, no new Transactions shall be entered into, and the aggregate Repurchase Price for all Transactions then outstanding,
together with all other amounts owing to the Buyer by the Seller pursuant to this Agreement or any Related Document, shall be payable in four equal installments, commencing on January         , 2009 and
on each three (3) month anniversary thereafter, through and including the Termination date as hereby extended. 
  
 Section 3. AMOUNTS AND TERMS OF TRANSACTIONS 
  
 3.1 Maximum Purchase Price. The aggregate Purchase Price of all Transactions outstanding at any time shall not exceed the Maximum Purchase Price.

  
 3.2 Minimum Purchase Amount. On the Purchase Date, the
aggregate Purchase Price of the Purchased Assets transferred by the Seller to the Buyer in a Transaction shall not be less than the Minimum Purchase Amount. 
  
 3.3 Periodic Payments of Price Differential. 
  
 (a) Notwithstanding that Buyer and Seller intend that the Transactions hereunder be sales to Buyer of the Purchased Assets, Seller shall pay to Buyer the
accreted value of the Price Differential of each Transaction through but not including the Payment Calculation Date (each such payment, a “Periodic Advance Repurchase Payment”) on each Payment Date. Buyer shall deliver to Seller,
via Electronic Transmission, notice of the required Periodic Advance Repurchase Payment on or prior to the second Business Day preceding each Payment Date. 
  
 (b) If the Seller repurchased Purchased Assets for which the Pricing Rate is a fixed rate on any day prior to the last day of the thirty (30) day period
for which such rate is fixed 

  

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or if the Seller repurchases Purchased Assets on any day which is not a Repurchase Date for such Purchased Assets, the Seller shall indemnify the Buyer and
hold the Buyer harmless from any losses, costs and/or expenses which the Buyer may sustain or incur arising from the reemployment of funds obtained by the Buyer hereunder or from fees payable to terminate the deposits from which such funds were
obtained (“Breakage Costs”), in each case for the remainder of the thirty (30) day period. The Buyer shall deliver to the Seller a statement setting forth the amount and basis of determination of any Breakage Costs in such detail as
determined in good faith by the Buyer to be adequate, it being agreed that such statement and the method of its calculation shall be conclusive and binding upon the Seller absent manifest error. This Section 3.3(b) shall survive termination of this
Agreement and repurchase of all Purchased Assets subject to Transactions hereunder. 
  
 Section 4. MARGIN MAINTENANCE 
  
 4.1 Margin Deficit. If at any time the aggregate Market Value of all Purchased Assets subject to all Transactions in which a particular party hereto is acting as the Buyer is less than the aggregate Buyer’s Margin Amount for all
such Transactions (a “Margin Deficit”), then the Buyer may by notice to the Seller require the Seller in such Transactions, at the Seller’s option, to (i) transfer to the Buyer cash, additional Mortgage Assets reasonably
acceptable to the Buyer (“Additional Purchased Assets”) or a letter of credit in form and substance satisfactory to the Buyer in its sole discretion, (ii) repurchase the Purchased Assets at the Repurchase Price, (iii) make a payment
in reduction of the Repurchase Price or (iv) choose any combination of the foregoing, so that the cash and aggregate Market Value of the Purchased Assets, including any such Additional Purchased Assets or letter of credit, will thereupon equal or
exceed such aggregate Buyer’s Margin Amount (decreased by the amount of any Margin Deficit as of such date arising from any Transactions in which the Buyer is acting as the seller). 
  
 (b) To the extent any such Margin Deficit is the result of a reduction in the Market Value of any Mortgage Asset, the Seller
may dispute the determination of such Market Value by the Buyer pursuant to the provisions of Section 4.4 of this Agreement; provided, that no such dispute shall relieve, waive or delay the Seller’s obligation to timely satisfy the
Margin Deficit in accordance with Section 4.1 (a). The failure of the Seller to timely satisfy the Margin Deficit shall constitute an Event of Default and shall preclude the Seller from disputing the Margin Base determined by the Buyer. If (i) the
Seller satisfies the Margin Deficit on a timely basis, (ii) the Seller timely satisfies the provisions set forth in Section 4.4 of this Agreement with respect to a dispute of the determination of the Market Value of any Mortgage Asset, and (iii)
pursuant to the terms of such Section 4.4, a revised Market Value for such Mortgage Asset is determined which (if used in lieu of the Market Value used by Buyer in determining the Buyer’s Margin Amount) would have resulted in a reduction of the
Margin Deficit paid by the Seller, then the Buyer shall promptly remit the difference to the Seller without any interest or other amounts due thereon. 
  
 4.2 Transfer of Cash or Additional Purchased Assets. If any notice is given by the Buyer pursuant to Section 4.1 on any Business Day, the Seller
shall transfer cash, Additional Purchased Assets or letter of credit as provided in Section 4.1 no later than 5:00 p.m., New York City time, on the next succeeding Business Day after such notice is given. 
  

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 4.3 Attribution of Transferred Cash or Additional Purchased Assets. Any cash, Additional Purchased
Assets or letter of credit transferred pursuant to this Section 4 shall be attributed to such Transaction as the Buyer shall determine, in its sole discretion, exercised in good faith. 
  
 4.4 Market Value Dispute Procedure. 
  
 If the Seller has a good faith basis to dispute any determination of the Market Value by the Buyer, the Seller may notify
the Buyer of such dispute within three (3) Business Days after any such determination thereof by the Buyer. The Seller may, at its sole cost and expense, (A) if the dispute involves the appraised value of an Underlying Mortgaged Property used by the
Buyer in determining the Market Value of a Mortgage Asset, within thirty (30) days after such notice of dispute to the Buyer, deliver a new FIRREA Appraisal of such Underlying Mortgaged Property, in which case the appraised value set forth in such
new FIRREA Appraisal shall be used in lieu of the disputed appraised value in the determining the Market Value of such Mortgage Asset, and (B) if the dispute involves the price at which a Mortgage Asset could readily be sold used by the Buyer in
determining the Market Value of such Mortgage Asset, within three (3) Business Days after such notice of dispute to Buyer, deliver up to three (3) written Alternative Market Price Quotes, in which case the average of such alternative market price
quotes on the one hand and the market price used by the Buyer on the other shall be used in lieu of the disputed market price in the determination of the Market Value of such Mortgage Asset. Notwithstanding anything to the contrary herein, in the
event that the Seller fails to timely deliver to the Buyer any notice of dispute within such three (3) Business Day period or fails to deliver such appraisal or such Alternative Market Price Quotes, as the case may be, within the specified period,
the Buyer’s determination of the Market Value shall be final and conclusive. 
  
 Section 5. INCOME PAYMENTS; REQUIREMENTS OF LAW 
  
 5.1 Income Payments. The Seller shall be entitled to receive an amount equal to all Income paid or distributed on or in respect of the Mortgage Assets that is not otherwise received by the Seller, to the full
extent it would be so entitled if the Mortgage Assets had not been sold to the Buyer. The Seller hereby agrees to instruct each applicable trustee and Servicer to transfer all Income with respect to the Purchased Assets directly to the Buyer for
deposit into the Control Account. Each calendar month, upon receipt by the Buyer of the accrued and unpaid Price Differential pursuant to Section 3.3(a) hereof and provided that no Margin Deficit, Default or Event of Default has occurred and
is continuing, the Buyer shall transfer all collected and available balances in the Control Account to the account of the Seller, Account Number 2000014827196, Wachovia Bank, N.A. by the end of the Business Day during such calendar month on which
such request is made by notice of such request to the Buyer; provided such request is received prior to 2:00 p.m., Charlotte, North Carolina time, on a Business Day, or if such request is received after such time on a Business Day, not later
than 11:00 a.m., Charlotte, North Carolina time, on the next following Business Day. Following the occurrence and during the continuation of any Event of Default, all Income in respect of any Purchased Assets shall be paid to and retained by the
Buyer to the extent of and applied immediately to the payment of the Repurchase Price and no amounts shall be transferred to the Seller as aforesaid until all amounts owing by the Seller hereunder have been paid in full or any such Event of Default
has been cured or waived. 
  

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 5.2 Requirements of Law. (a) If any Requirement of Law (other than with respect to any amendment
made to Buyer’s certificate of incorporation and by-laws or other organizational or governing documents) or any change in the interpretation or application thereof or compliance by Buyer with any request or directive (whether or not having the
force of law) from any central bank or other Governmental Authority made subsequent to the date hereof: 
  
 (i) shall subject Buyer to any tax of any kind whatsoever with respect to this Agreement or any Transaction (excluding net income taxes)
or change the basis of taxation of payments to Buyer in respect thereof; 
  
 (ii) shall impose, modify or hold applicable any reserve, special deposit, compulsory loan or similar requirement against assets held by, deposits or other liabilities in or for the account of, advances, or other
extensions of credit by, or any other acquisition of funds by, any office of Buyer which is not otherwise included in the determination of the Eurodollar Rate hereunder; 
  
 (iii) shall impose on Buyer any other condition; 
  
 and the result of any of the foregoing is to increase the cost to Buyer, by an amount which
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, Seller shall promptly pay Buyer such additional amount or amounts as
calculated by Buyer in good faith as will compensate Buyer for such increased cost or reduced amount receivable. 
  
 (b) If Buyer shall have determined that the adoption of or any change in any Requirement of Law (other than with respect to any amendment made to
Buyer’s certificate of incorporation and by-laws or other organizational or governing documents) regarding capital adequacy or in the interpretation or application thereof or compliance by Buyer or any corporation controlling Buyer with any
request or directive regarding capital adequacy (whether or not having the force of law) from any Governmental Authority made subsequent to the date hereof shall have the effect of reducing the rate of return on Buyer’s or such
corporation’s capital as a consequence of its obligations hereunder to a level below that which Buyer or such corporation could have achieved but for such adoption, change or compliance (taking into consideration Buyer’s or such
corporation’s policies with respect to capital adequacy) by an amount deemed by Buyer to be material, then from time to time, Seller shall promptly pay to Buyer such additional amount or amounts as will compensate Buyer for such reduction.

  
 (c) Any payments made by Seller to Buyer shall be free and
clear of, and without deduction or withholding for, any taxes; provided, however, that if Seller shall be required by law to deduct or withhold any taxes from any sums payable to Buyer, then Seller shall (A) make such deductions or
withholdings and pay such amounts to the relevant authority in accordance with applicable law, (B) pay to Buyer the sum that would have been payable had such deduction or withholding not been made, and (C) at the time the Price Differential is paid,
pay to Buyer all additional amounts as specified by Buyer to preserve the after-tax yield Buyer would have been received had such tax not been imposed. 
  

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 (d) If Buyer becomes entitled to claim any additional amounts pursuant to this Section, it shall promptly
notify Seller of the event by reason of which it has become so entitled. A certificate as to any additional amounts payable pursuant to this Section 5.2 submitted by Buyer to Seller shall be conclusive in the absence of manifest error. 

 
 Section 6. SECURITY INTEREST 
  
 (a) Each of the following items or types of property, whether now owned or
hereafter acquired, now existing or hereafter created and wherever located, is hereinafter referred to as (the “Purchased Items”): all Mortgage Assets, all mortgage asset files, including without limitation all promissory notes, all
servicing records relating to the Mortgage Assets, all servicing agreements relating to the Mortgage Assets and any other collateral pledged or otherwise relating to such Mortgage Assets, together with all files, documents, instruments, surveys,
certificates, correspondence, appraisals, computer programs, computer storage media, accounting records and other books and records relating thereto, all mortgage guaranties and insurance (issued by governmental agencies or otherwise) and any
mortgage insurance certificate or other document evidencing such mortgage guaranties or insurance relating to any Mortgage Asset, all servicing fees to which such Seller is entitled and servicing and other rights relating to the Mortgage Assets, all
servicer accounts established pursuant to any servicing agreement and all amounts on deposit therein, from time to time, the Control Account and all monies from time to time on deposit in the Control Accounts, all Interest Rate Protection
Agreements, if any, all “general intangibles”, “accounts”, “chattel paper”, “deposit accounts” and “investment property” as defined in the Uniform Commercial Code as in effect from time to time
relating to or constituting any and all of the foregoing, and any and all replacements, substitutions, distributions on or proceeds of any and all of the foregoing. 
  
 (b) Buyer and Seller intend that the Transactions hereunder be sales to Buyer of the Purchased Assets and not loans from
Buyer to Seller secured by the Purchased Assets. However, in order to preserve Buyer’s rights under this Agreement in the event that a court or other forum recharacterizes the Transactions hereunder as loans and as security for the performance
by Seller of all of Seller’s obligations to Buyer hereunder and the Transactions entered into hereunder (“Repurchase Obligations”) and the Seller-Related Obligations, Seller hereby assigns, pledges and grants a security
interest in all of its right, title and interest in, to and under the Purchased Items and the Purchased Assets to Buyer to secure the Repurchase Obligations and the Seller-Related Obligations, including without limitation the repayment of all
amounts owing to Buyer hereunder. The assignment, pledge and grant of security interest contained herein shall be, and Seller hereby represents and warrants to Buyer that it is, a first priority perfected security interest. Seller agrees to mark its
computer records and tapes to evidence the interests granted to Buyer hereunder. All Purchased Items shall secure the payment of all obligations of Seller now or hereafter existing under this Agreement, including, without limitation, Seller’s
obligation to repurchase Purchased Assets, or if such obligation is so recharacterized as a loan, to repay such loan, for the Repurchase Price and to pay any and all other amounts owing to Buyer hereunder. 
  
 (c) Unless an Event of Default shall have occurred and be continuing and the,
the Seller shall be permitted to make all servicing and other decisions with respect to the Purchased Assets; provided, however, that no action shall be taken which would impair the 

  

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Purchased Items or which would be inconsistent with or result in any violation of any provision of this Agreement or any related documents. 
  
 Section 7. PAYMENT AND TRANSFER 
  
 (a) Unless otherwise mutually agreed, all transfers of funds hereunder shall
be in U.S. Dollars, in immediately available funds, without deduction, set-off or counterclaim to Buyer at the following account maintained by Buyer: Account No. 4659360000127, for the account of the Buyer, ABA No. 053000219, Attn: Securitizations
Group, not later than 3:00 p.m., New York City time, on the date on which such payment shall become due (and each such payment made after such time shall be deemed to have been made on the next succeeding Business Day). Seller acknowledges that it
has no rights of withdrawal from the foregoing account. 
  
 (b) On
the Purchase Date for each Transaction, ownership of the Purchased Assets shall be transferred to Buyer or its designee against the simultaneous transfer of the Purchase Price not later than 6:00 p.m., New York City time, simultaneously with the
delivery to Buyer or its designee of the Purchased Assets relating to each Transaction. Seller hereby sells, transfers, conveys and assigns to Buyer or its designee without recourse, but subject to the terms of this Agreement, all the right, title
and interest of Seller in and to the Purchased Assets together with all right, title and interest in and to the proceeds of any related Purchased Items. 
  
 (c) In connection with such sale, transfer, conveyance and assignment, on or prior to each Purchase Date, Seller shall deliver or cause to be delivered
and released to Buyer or its designee (i) the Mortgage Asset File Checklist and (ii) the documents identified on Schedule 5 attached to this Agreement (the “Mortgage Asset File”). 
  
 (d) Any Mortgage Asset Files not delivered to Buyer or its designee are and
shall be held in trust by Seller or its designee for the benefit of Buyer as the owner thereof. Seller or its designee shall maintain a copy of the Mortgage Asset File and the originals of the Mortgage Asset File not delivered to Buyer or its
designee. The possession of the Mortgage Asset File by Seller or its designee is at the will of Buyer for the sole purpose of servicing the related Purchased Asset, and such retention and possession by Seller or its designee is in a custodial
capacity only. Each Mortgage Asset File retained or held by Seller or its designee shall be segregated on Seller’s books and records from the other assets of Seller or its designee and the books and records of Seller or its designee shall be
marked appropriately to reflect clearly the sale of the related Purchased Asset to Buyer. Seller or its designee shall release its custody of the Mortgage Asset File only in accordance with written instructions from Buyer, unless such release is
required as incidental to the servicing of the Purchased Assets or is in connection with a repurchase of any Purchased Asset by Seller. 
  
 Section 8. SEGREGATION 
  
 8.1 Segregation of Purchased Assets. To the extent required by applicable law, all Purchased Assets in the possession of the Seller shall be
segregated from other securities in its possession and shall be identified as subject to this Agreement. Segregation may be accomplished by appropriate identification on the books and records of the holder, including a financial or securities
intermediary or a clearing corporation. All of the Seller’s interest in the 

  

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Purchased Assets shall pass to the Buyer on the Purchase Date and, subject to the conditions set forth in Section 16.5 unless otherwise agreed by the Buyer
and the Seller, nothing in this Agreement shall preclude the Buyer from engaging in repurchase transactions with the Purchased Assets or otherwise selling, transferring, pledging or hypothecating the Purchased Assets, but no such transaction shall
relieve the Buyer (or any applicable Transferee) of its obligations to transfer Purchased Assets to the Seller pursuant to Sections 3, 4 or 14 hereof, or of the Buyer’s (or any applicable Transferee’s) obligation to credit or pay Income
to, or apply Income to the obligations of, the Seller pursuant to Section 5 hereof. 
  
 8.2 Required Disclosure for Certain Transactions. The Buyer has granted the right, pursuant to, among other things, Section 9 hereof, to substitute other Eligible Assets for those subject to this Agreement,
which means that the Buyer’s securities will likely be commingled with the Seller’s own securities during the trading day. The Buyer is advised that, during any trading day that the Buyer’s securities are commingled with the
Seller’s securities, they may be subject to liens granted by the Seller to third parties and may be used by the Seller for deliveries on other securities transactions. Whenever the securities are commingled, the Seller’s ability to
resegregate substitute securities for the Buyer will be subject to the Seller’s ability to satisfy any lien or to obtain substitute securities. 
  
 Section 9. SUBSTITUTION 
  
 The Seller may, subject to agreement with and acceptance by the Buyer, substitute other Mortgage Assets for any Purchased Assets. Such substitution shall
be made by transfer to the Buyer of such other Mortgage Assets and transfer to the Seller of such Purchased Assets. After substitution, the substituted Mortgage Assets shall be deemed to be Purchased Assets. 
  
 Section 10. REPRESENTATIONS AND WARRANTIES 
  
 10.1 Representations and Warranties of each Party. Each of the Buyer
and the Seller represents and warrants to the other that: 
  
 (a)
it is duly authorized to execute and deliver this Agreement, to enter into Transactions contemplated hereunder 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, if
agreed in writing, in the form of an annex hereto or otherwise, in advance of any Transaction by the other party 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, if any, and the Transactions hereunder and such authorizations are in full force and effect; 
  

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 (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; 
  
 (f) it is acting for its own account, and it has made its own independent decisions to enter into each Transaction and as to whether each Transaction is
appropriate or proper for it based upon its own judgment and upon advice from such advisers as it has deemed necessary. It is not relying on any communication (written or oral) of the other party as investment adviser or as a recommendation to enter
into any Transaction; it being understood that information and explanations related to the terms and conditions of any Transaction shall not be considered investment advice or a recommendation to enter into such Transaction. No communication
(written or oral) received from the other party shall be deemed to be an assurance or guarantee as to the expected results of any Transaction; 
  
 (g) it is capable of assessing the merits of and understands (on its own behalf or through independent professional advice), and accepts, the terms,
conditions and risks of each Transaction. It is also capable of assuming, and assumes, the risks of each Transaction; and 
  
 (h) the other party is not acting as a fiduciary for or an adviser to it in respect of any Transaction. 
  
 10.2 Additional Representations and Warranties of the Repurchase
Parties. In addition to the representations and warranties set forth in Section 10.1, each Repurchase Party additionally represents and warrants to the Buyer on the date hereof and on the date of each transaction that: 
  
 (a) Eligible Assets. Each Purchased Asset is an Eligible Asset.

  
 (b) Valid Title; No Encumbrances. Upon transfer of the
Purchased Assets to the Buyer, the Buyer shall (i) be the owner, and entitlement holder with respect thereto, of such Purchased Assets free and clear of all pledges, Liens, security interests, encumbrances, charges and other adverse claims, other
than any adverse claims or proceedings caused by the actions or inactions of the Buyer or its Affiliates in connection with the related Securitization Transaction, and (ii) obtain a valid, perfected first priority security interest in such Purchased
Assets free and clear of all pledges, Liens, security interests, encumbrances, charges and other adverse claims, subject only to Liens caused by the actions or inactions of the Buyer or its Affiliates in connection with any related securitization
transaction in the event that any Transaction is construed as a financing and not a sale. 
  
 (c) Corporate Existence; Compliance with Law. It (i) is duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation, (ii) has the corporate power and authority,
and the legal right, to own and operate its property, to lease the property it operates as lessee and to conduct the business in which it is currently engaged, (iii) is in compliance in all material respects with all Requirements of Law, and (iv) is
duly qualified as a foreign corporation and in good standing under the laws of each jurisdiction where its ownership, lease or operation of property or the conduct of its business requires such qualification except to 

  

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the extent that the failure to be so qualified and in good standing could not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect. 
  
 (d) Corporate Power; Consent; Enforceable
Obligations, (i) It has the corporate power and authority and the legal right to make, deliver and perform this Agreement and has taken all necessary corporate action to authorize the execution, delivery and performance of this Agreement and the
transactions contemplated hereby; 
  
 (ii) no
consent or authorization of, filing with or other act by or in respect of any Governmental Authority or any other Person is required in connection with the execution, delivery, performance, validity or enforceability of this Agreement, except for
consents, authorizations and filings which have been obtained or made, as the case may be, and are in full force and effect; and 
  
 (iii) this Agreement has been duly executed and delivered by each of the Repurchase Parties and constitutes the legal, valid and binding
obligation of each of the Repurchase Parties, enforceable against the Repurchase Parties in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
the enforcement of creditors’ rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law); 
  
 (e) No Legal Bar. The execution, delivery and performance by the Repurchase Parties of this Agreement will not violate any Requirement of Law or
any Contractual Obligation of any Repurchase Party and will not result in, or require, the creation or imposition of any Lien on any of its or their properties or revenues pursuant to any such Requirement of Law or Contractual Obligation (other than
the Liens created hereby in favor of the Buyer). 
  
 (f) No
Material Litigation. No litigation, investigation or proceeding of or before any arbitrator or Governmental Authority is pending or, to the best knowledge of each Repurchase Party, threatened by or against any Repurchase Party or against any of
its properties or revenues (i) with respect to this Agreement or any of the transactions contemplated hereby, or (ii) which could reasonably be expected to have a Material Adverse Effect. 
  
 (g) No Default. No Repurchase Party is in default under or with respect to any Contractual Obligation in any respect
which could reasonably be expected to have a Material Adverse Effect. No Event of Default has occurred and is continuing. 
  
 (h) No Burdensome Restrictions. No Contractual Obligation of any Repurchase Party and no Requirement of Law applicable to any Repurchase Party
could reasonably be expected to have a Material Adverse Effect. 
  
 (i) Taxes. Each Repurchase Party has filed or caused to be filed all tax returns which are required to be filed and has paid all taxes shown to be due and payable on said returns or on any assessments made against it or any of its
property and all other taxes, fees or other charges imposed on it or any of its property by any Governmental Authority (other than those the amount or validity of which is currently being contested in good faith by appropriate proceedings, with
respect to which reserves in conformity with GAAP have been provided on the books of the 

  

 -23- 

 
applicable Repurchase Party, and which, if such contest were adversely determined, could not reasonably be expected to have a Material Adverse Effect); and
no tax liens have been filed and, to the best knowledge of each Repurchase Party, no claims are being asserted with respect to any such taxes, fees or other charges. 
  
 (j) Federal Regulations. No part of the proceeds of any Transaction hereunder will be used for “purchasing”
or “carrying” any “margin stock” within the respective meanings of each of the quoted terms under Regulation U of the Board of Governors of the Federal Reserve System as now and from time to time hereafter in effect or for any
purpose which violates, or which would be inconsistent with, the provisions of the Regulations of such Board of Governors. 
  
 (k) Solvency. Each Repurchase Party is solvent as of the date hereof; and neither will be rendered insolvent by the transactions contemplated by
this Agreement and the Guarantee, nor be left with an unreasonably small amount of capital with which to engage in its business; neither Repurchase Party intends to incur, or believes that it has incurred, debts beyond its ability to pay such debts
as they mature; neither Repurchase Party contemplates the commencement of insolvency, bankruptcy, liquidation or consolidation proceedings or the appointment of a receiver, liquidator, conservator, trustee or similar official in respect of any
Repurchase Party or any of its assets. 
  
 (l) Locations of
Repurchase Parties. The principal place of business, chief executive office and jurisdiction of incorporation of each Repurchase Party and the location of books and records regarding the Purchased Assets is set forth in Schedule 10.2(1).

  
 (m) Purchased Assets. (i) There are no outstanding
rights, options, warrants or agreements for the purchase, sale or issuance of the Purchased Assets created by, through, or as a result of the Seller’s actions or inactions of any Repurchase Party in connection with the related Securitization
Transaction; (ii) there are no agreements on the part of any Repurchase Party to issue, sell or distribute the Purchased Assets, other than this Agreement, and (iii) the Seller has no obligation (contingent or otherwise) to purchase, redeem or
otherwise acquire any securities or any interest therein or to pay any dividend or make any distribution in respect of the Purchased Assets; 
  
 (n) Investment Company Act; Public Utility Holding Company Act. The Seller is not or will it become as a result of the transactions contemplated
hereby or by any Securitization Transaction, (i) an “investment company” or a company “controlled” by an “investment company,” within the meaning of the Investment Company Act of 1940, as amended; or (ii) a
“holding company” within the meaning of the Public Utility Holding Company Act of 1935, as amended. 
  
 (o) No Change. Since June 30, 2003 there has been no development or event, nor any prospective development or event, which has had or could
reasonably be expected to have a Material Adverse Effect. 
  
 (p)
ERISA. (i) None of the Repurchase Parties or any of their Subsidiaries is an entity deemed to hold “plan assets” within the meaning of ERISA or any regulations promulgated thereunder of an employee benefit plan (as defined in
Section 3(3) of ERISA) which is subject to Title I of ERISA or any plan within the meaning of Section 4975 of the Code, and (ii) the 

  

 -24- 

 
execution of this Agreement and the Related Documents and the transactions contemplated hereby and thereby shall not give rise to any prohibited transaction
within the meaning of Section 406 of ERISA or Section 4975 of the Code. 
  
 (q) Insurance. The Seller has, with respect to its properties and business, insurance meeting the requirements of Section 12.5. 
  
 (r) Subsidiaries. The Seller is an indirect subsidiary of LNR Property Corporation and Schedule 10.2(r) sets forth the name of each direct
or indirect Subsidiary of the Seller, its form of organization, its jurisdiction of organization, the total number of issued and outstanding shares or other interests of Capital Stock thereof, the classes and number of issued and outstanding shares
or other interests of Capital Stock of each such class, the name of each holder of Capital Stock thereof and the number of shares or other interests of such Capital Stock held by each such holder and the percentage of all outstanding shares or other
interests of such class of Capital Stock held by such holders. 
  
 (s) Accuracy and Completeness of Information. 
  
 (i) Neither this Agreement nor any financial statements, reports, certificates or other information furnished by any Repurchase Party or any of their officers to the Buyer in connection with this Agreement or any
other financing between any Repurchase Party and the Buyer contains any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements contained herein or therein not misleading; there is no fact
known to the executive officers of any Repurchase Party which has resulted in, or is likely to result in, a Material Adverse Effect which has not been set forth in this Agreement or otherwise disclosed to the Buyer; and 
  
 (ii) all projections with respect to the Repurchase Parties
furnished by or on behalf of a Repurchase Party to the Buyer were prepared and presented in good faith by or on behalf of such Repurchase Party. No fact is known to a Repurchase Party which materially and adversely affects or in the future is
reasonably likely (so far as such Repurchase Party can reasonably foresee) to have a Material Adverse Effect which has not been set forth in the financial statements referred to in Section 10.3 or in such information, reports, papers and data or
otherwise disclosed in writing to the Buyer prior to the Closing Date. 
  
 (t) Labor Relations. No Repurchase Party is engaged in any unfair labor practice which could reasonably be expected to have a Material Adverse Effect. There is (i) no unfair labor practice compliant pending or, to the best knowledge
of each Repurchase Party and each of the Subsidiaries, threatened against a Repurchase Party before the National Labor Relations Board which could reasonably be expected to have a Material Adverse Effect and no grievance or arbitration proceeding
arising out of or under a collective bargaining agreement is so pending or threatened; (ii) no strike, labor dispute, slowdown or stoppage pending or, to the best knowledge of each Repurchase Party, threatened against a Repurchase Party; and (iii)
no union representation question existing with respect to the employees of a Repurchase Party and no union organizing activities are taking place with respect to any thereof. 
  

 -25- 

 (u) Separateness. As of the date hereof, the Seller (a) owns no assets, and does not engage in any
business, other than the assets and transactions specifically contemplated by this Repurchase Agreement; (b) has not incurred any indebtedness or obligation, secured or unsecured, direct or indirect, absolute or contingent (including guaranteeing
any obligation), other than pursuant hereto; (c) has not made any loans or advances to any third party other than loans to Guarantor, and has not acquired obligations or securities of its Affiliates; (d) has paid its debts and liabilities
(including, as applicable, shared personnel and overhead expenses) only from its own assets; (e) complies with the provisions of its organizational documents; (f) does all things necessary to observe organizational formalities and to preserve its
existence, and has not amended, modified or otherwise changed its organizational documents, or suffered same to be amended, modified or otherwise changed; (g) maintains all of its books, records, financial statements and bank accounts separate from
those of its Affiliates; (h) is, and at all times holds itself out to the public as, a legal entity separate and distinct from any other entity (including any Affiliate), corrects any known misunderstanding regarding its status as a separate entity,
conducts business in its own name, does not identify itself or any of its Affiliates as a division or part of the other; (i) maintains adequate capital for the normal obligations reasonably foreseeable in a business of its size and character and in
light of its contemplated business operations; (j) does not engage in or suffer any change of ownership, dissolution, winding up, liquidation, consolidation or merger in whole or in part; (k) does not commingle its funds or other assets with those
of any Affiliate or any other Person; (1) maintains its assets in such a manner that it will not be costly or difficult to segregate, ascertain or identify its individual assets from those of any Affiliate or any other person; (m) does not hold
itself out to be responsible for the debts or obligations of any other Person; (n) has not (i) filed or consented to the filing of any bankruptcy, insolvency or reorganization case or proceeding with respect to the Seller; instituted any proceedings
under any applicable insolvency law or otherwise sought any relief under any laws relating to the relief from debts or the protection of debtors generally with respect to the Seller; (ii) sought or consented to the appointment of a receiver,
liquidator, assignee, trustee, sequestrator, custodian or any similar official for the Seller or a substantial portion of its properties; or (iii) made any assignment for the benefit of the Seller’s creditors; and (o) has at least one (1)
Independent Director for purposes of voting on the matters described in Section 13.9(n) only. 
  
 (v) Asset Level Representations. With respect to each Purchased Asset, each of the representations and warranties on Schedule 1 is true and correct. 
  
 (w) Compliance with Anti-Money Laundering Laws. Seller has complied
with all applicable anti-money laundering laws and regulations, including without limitation the USA Patriot Act of 2001 (collectively, the “Anti-Money Laundering Laws”); Seller has established an adequate anti-money laundering
compliance program as required by the Anti-Money Laundering Laws, has conducted the requisite due diligence in connection with the origination of each Mortgage Asset for purposes of the Anti-Money Laundering Laws, including with respect to the
legitimacy of the applicable Mortgagor and the origin of the assets used by the said Mortgagor to purchase the property in question, and maintains, and will maintain, sufficient information to identify the applicable Mortgagor for purposes of the
Anti-Money Laundering Laws. 
  

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 (x) Environmental Matters. 
  
 (i) No properties owned or leased by the Seller and, to the knowledge of the Seller, no properties formerly
owned or leased by the Seller, its predecessors, or any former subsidiaries or predecessors thereof (the “Properties”), contain, or have previously contained, any Materials of Environmental Concern in amounts or concentrations which
constitute or constituted a violation of, or reasonably could be expected to give rise to liability under, Environmental Laws; 
  
 (ii) The Seller is in compliance, and has in the last five years been in compliance, with all applicable Environmental Laws, and there is
no violation of any Environmental Laws which reasonably could be expected to interfere with the continued operations of the Seller; 
  
 (iii) The Seller has not received any notice of violation, alleged violation, non-compliance, liability or potential liability under any
Environmental Law, nor does the Seller have knowledge that any such notice will be received or is being threatened; 
  
 (iv) Materials of Environmental Concern have not been transported or disposed by the Seller in violation of, or in a manner or to a
location which reasonably could be expected to give rise to liability under, any applicable Environmental Law, nor has any of them generated, treated, stored or disposed of at, on or under any of the Properties in violation of, or in a manner that
reasonably could be expected to give rise to liability under, any applicable Environmental Law; 
  
 (v) no judicial proceedings or governmental or administrative action is pending, or, to the knowledge of the Seller, threatened, under any
Environmental Law which Seller is or will be named as a party, nor are there any consent decrees or other decrees, consent orders, administrative orders or other orders, or other administrative or judicial requirements arising out of judicial
proceedings or governmental or administrative actions, outstanding under any Environmental Law to which the Seller is a party; 
  
 (vi) there has been no release or, to the best knowledge of the Seller, threat of release of Materials of Environmental Concern in
violation of or in amounts or in a manner that reasonably could be expected to give rise to liability under any Environmental Law for which the Seller may become liable; and 
  
 (vii) to the best knowledge of the Seller, each of the representations and warranties set forth in the
preceding clauses (i) through (vi) is true and correct with respect to each parcel of real property owned or operated by the Seller. 
  
 On the Purchase Date for any Transaction the Buyer and each Repurchase Party shall each be deemed to repeat all of the foregoing representations made by
it. 
  
 10.3 Financial Condition. 
  
 (a) The audited consolidated balance sheet of the Guarantor and its
consolidated Subsidiaries as at the fiscal year end November 30, 2002 and the related audited consolidated statements of income and retained earnings and of cash flows for the fiscal year then ended, setting 

  

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forth in each case in comparative form the figures for the previous year, reported on without a “going concern” or like qualification or exception,
or qualification arising out of the scope of the audit, by Deloitte and Touche, LLP, copies of which have heretofore been furnished to the Buyer are complete and correct and present fairly the consolidated financial condition of the Guarantor and
its consolidated Subsidiaries as at such date, and the consolidated results of their operations and their consolidated cash flows for the fiscal year then ended. All such financial statements, including the related schedules and notes thereto, have
been prepared in accordance with GAAP applied consistently throughout the periods involved (except as disclosed therein). Except as set forth on Schedule 10.3(a) attached hereto, neither the Guarantor nor any of its consolidated Subsidiaries
had, at the date of the most recent balance sheet referred to above, any material Guarantee Obligation, contingent liability or liability for taxes, or any long term lease or unusual forward or long term commitment, including, without limitation,
any interest rate or foreign currency swap or exchange transaction or other financial derivative, which is not reflected in the foregoing statements or in the notes thereto. During the period from August 31, 2003 to and including the date hereof
there has been no sale, transfer or other disposition by the Guarantor or any of its consolidated Subsidiaries of any material part of its business or property and no purchase or other acquisition of any business or property (including any Capital
Stock of any other Person) material in relation to the consolidated financial condition of the Guarantor and its consolidated Subsidiaries on the date hereof. 
  

(b) The operating forecast and cash flow projections of the Guarantor and its consolidated Subsidiaries, copies of which have heretofore been furnished
to the Buyer, have been prepared in good faith under the direction of a Responsible Officer of the Seller, and in accordance with GAAP. The Seller has no reason to believe that as of the date of delivery thereof such operating forecast and cash flow
projections are materially incorrect or misleading in any material respect, or omit to state any material fact which would render them misleading in any material respect. 
  
 Section 11. CONDITIONS PRECEDENT 
  
 11.1 Conditions Precedent to Initial Transaction. The Buyer’s obligation to enter into the initial Transaction hereunder is subject to the
satisfaction, immediately prior to or concurrently with the making of such Transaction, of the condition precedent that the Buyer shall have received from the Seller any fees and expenses payable hereunder and pursuant to the Fee Letter, and all of
the following documents, each of which shall be satisfactory in form and substance to the Buyer and its counsel: 
  
 (a) the Buyer shall have received this Agreement, executed and delivered by a duly authorized officer of each of the parties hereto; 
  
 (b) the Buyer shall have received the Pledge Agreement, executed and
delivered by a duly authorized officer of the Seller; 
  
 (c) the
Buyer shall have received the Guarantee, executed and delivered by a duly authorized officer of the Guarantor; 
  

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 (d) the Buyer shall have received the Promissory Note, executed and delivered by a duly authorized
officer of the Guarantor; 
  
 (e) the Buyer shall have received
the Account Agreement, executed and delivered by a duly authorized officer of the Seller; 
  
 (f) the Buyer shall have received the Fee Letter, executed and delivered by a duly authorized officer of the Seller and the Guarantor; 
  
 (g) the Buyer shall have received any and all consents and waivers applicable to the Seller or to the Mortgage Assets;

  
 (h) the Buyer shall have received financing statements of the
Seller (Form UCC-1 or Form UCC-3, as appropriate), naming the Seller, as “debtor,” the Buyer, as “secured party,” and describing the Purchased Assets as the “collateral” to be filed in all jurisdictions designated by
the Buyer; 
  
 (i) the Buyer shall have received evidence
satisfactory to the Buyer that the Seller has delivered an irrevocable instruction to each trustee and Servicer, as applicable, to pay Income with respect to the Purchased Securities directly to the Control Account, which instruction may not be
modified without the prior consent of the Buyer; 
  
 (j) the Buyer
shall have received opinions of counsel of the Seller and the Guarantor (including, without limitation, an opinion with respect to the perfection of the Buyer’s security interest and an opinion that the execution, delivery and performance by
each of the Seller and the Guarantor of this Agreement and by Guarantor of the Guarantee will not result in a breach or violation of any term or provision of, or constitute a default under any material indenture or other agreement or instrument to
which it is a party or by which it is bound), in form and substance satisfactory to the Buyer; 
  
 (k) the Buyer shall have received certified copies of the charter and by-laws (or equivalent documents) of the Seller (which shall be reasonably acceptable to the Buyer) and of all corporate or other authority for the
Seller with respect to the execution, delivery and performance of this Agreement and the Related Documents (and the Buyer may conclusively rely on such certificate until it receives notice in writing from the Seller to the contrary); 
  
 (l) the Seller shall have reimbursed the Buyer for all reasonable
out-of-pocket costs and expenses incurred by the Buyer in connection with the development, preparation and execution of this Agreement, the other Repurchase Documents and any other documents prepared in connection herewith or therewith; and

  
 (m) the Buyer shall have received such other documents as the
Buyer or counsel to the Buyer may reasonably request, each in form and substance satisfactory to the Buyer. 
  
 11.2 Conditions Precedent to all Transactions. The Buyer’s obligation to enter into each Transaction (including the initial Transaction) is
subject to the satisfaction of the following further conditions precedent, both immediately prior to entering into such Transaction 

  

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and also after giving effect to the consummation thereof and the intended use of the proceeds of the sale: 
  
 (a) the Buyer shall have received a Confirmation via Electronic Transmission,
substantially in the form of Exhibit B-l or Exhibit B-2 attached hereto, with respect to each Mortgage Asset to be purchased on the related Purchased Date, and the Buyer shall have approved the purchase of the Mortgage Asset to be
included in such Transaction in its sole and absolute discretion and shall have obtained all necessary internal credit approvals for such Transaction; 
  
 (b) no Default or Event of Default shall have occurred and be continuing under the Repurchase Documents; 
  
 (c) after giving effect to the requested Transaction, the aggregate
outstanding Purchase Price of the Transactions outstanding shall not exceed the Maximum Amount; 
  
 (d) both immediately prior to the requested Transaction and also after giving effect thereto and to the intended use thereof, the representations and
warranties made by the Seller in Section 10, shall be true, correct and complete on and as of such Purchase Date in all material respects with the same force and effect as if made on and as of such date (or, if any such representation or warranty is
expressly stated to have been made as of a specific date, as of such specific date); 
  
 (e) the Buyer shall have received the complete Mortgage File with respect to each Purchased Asset; 
  
 (f) the Buyer shall have completed its due diligence review of the Mortgage File and the Underwriting Package for each Purchased Asset, and such other
documents, records, agreements, instruments, mortgaged properties or information relating to such Purchased Asset as Buyer in its sole discretion deems appropriate to review and such review shall be satisfactory to Buyer in its sole discretion;

  
 (g) the Buyer shall have received the Special Servicing
Agreement(s), each certified as a true, correct and complete copy of the original together with a fully executed Servicer Notice and Agreement consenting to termination of such Servicing Agreement upon the occurrence of an Event of Default;

  
 (h) the Buyer shall have received the fees to be received on
the Closing Date referred to in the Fee Letter; 
  
 (i) none of
the following shall have occurred and/or be continuing: 
  
 (i) an event or events shall have occurred in the good faith determination of Buyer resulting in the effective absence of a “repo market” or related “lending market” for a period of at least 2
consecutive Business Days respecting loans or mortgage-backed or asset-backed securities such that the Buyer is unable to finance or fund purchases under this Agreement through the “repo market” or the Buyer’s customers; or 

  

 -30- 

 (ii) an event or events shall have occurred resulting in the effective absence of a
“securities market” for securities backed by Mortgage Assets or an event or events shall have occurred resulting in Buyer not being able to sell securities backed by Mortgage Assets at prices which would have been reasonable prior to such
event or events; or 
  
 (iii) there shall have
occurred a material adverse change in the financial condition of Buyer which affects (or can reasonably be expected to affect) materially and adversely the ability of Buyer to fund its obligations under this Agreement; 
  
 (j) the Buyer shall have received from Seller a Warehouse Lender’s
Release Letter substantially in the form of Exhibit G-1 hereto (or such other form acceptable to Buyer), if applicable, or a Seller’s Release Letter substantially in the form of Exhibit G-2 hereto (or such other form acceptable to
Buyer) covering each Eligible Asset to be sold to Buyer; 
  
 (k)
prior to the purchase of any Mortgage Asset acquired (by purchase or otherwise) by Seller from any Affiliate of Seller, Buyer shall have received a True Sale Opinion; 
  
 (l) the Buyer shall not have determined that the introduction of, or a change in, any Requirement of Law or in the
interpretation or administration of any Requirement of Law applicable to Buyer has made it unlawful, and no Governmental Authority shall have asserted that it is unlawful, for Buyer to enter into Transactions; 
  
 (m) the Repurchase Date for such Transaction is not later than the
Termination Date; and 
  
 (n) each Confirmation delivered by
Seller hereunder shall constitute a certification by Seller that all the conditions set forth in this Section 11.2 have been satisfied (both as of the date of such notice or request and as of the date of such purchase). 
  
 Section 12. AFFIRMATIVE COVENANTS 
  
 While there is an outstanding Transaction, each of the Repurchase Parties
hereby agrees that it shall: 
  
 12.1 Financial Statements.
Furnish to the Buyer: 
  
 (a) as soon as available, but in any
event (i) within 120 days after the end of the fiscal year of the Guarantor, a copy of the audited consolidated balance sheet of the Guarantor and its consolidated Subsidiaries as at the end of such year and the related audited consolidated
statements of income and retained earnings and of cash flows for such year, setting forth in each case in comparative form the figures for the previous year, reported on without a “going concern” or like qualification or exception, or
qualification arising out of the scope of the audit, by Deloitte and Touche, LLP or other independent certified public accountants of nationally recognized standing and (ii) within 120 days after the end of the fiscal year of the Seller, a copy of
the unaudited consolidated balance sheet of the Seller and its consolidated Subsidiaries as at the end of such year and the related unaudited consolidated statements of income and retained earnings and of cash flows for such year, setting forth in
each case in comparative form the figures for the previous year, certified by a Responsible Officer as being fairly stated in all material respects; 
  

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 (b) as soon as available, but in any event not later than sixty (60) days after the end of each of the
first three (3) quarterly periods of each fiscal year of the Guarantor, (i) the unaudited consolidated balance sheet of each Repurchase Party and their respective consolidated Subsidiaries as at the end of such quarter and the related unaudited
consolidated statements of income and retained earnings and (ii) consolidated statements of cash flows of the Guarantor for such quarter and the portion of the fiscal year through the end of such quarter, setting forth in each case in comparative
form the figures for the previous year, certified by a Responsible Officer of each applicable Repurchase Party as being fairly stated in all material respects (subject to normal year end audit adjustments); 
  
 (c) with respect to each Mortgage Asset, as soon as available and to the
extent provided to the Seller by the obligor under the Mortgage Asset, but in any event not later than sixty (60) days after the end of each fiscal quarter of the Seller, the operating statement and rent roll for each Underlying Mortgaged Property
securing such Mortgage Asset; 
  
 (d) with respect to each
Mortgage Asset, if provided to the Seller by the obligor under the Mezzanine Loan or the obligor under any Underlying Mortgage Loan, as soon as available, but in any event not later than thirty (30) days after receipt thereof, the annual balance
sheet with respect to such obligor; 
  
 (e) with respect to each
Mortgage Asset, as soon as available but in any event not later than thirty (30) days after receipt thereof, (i) the related monthly securitization report, if any, and (ii) within thirty (30) days after the end of each month, a copy of the standard
monthly exception report, substantially in the form of Exhibit F attached hereto, prepared by the Seller in the ordinary course of its business in respect of the related Underlying Mortgage Loan or Underlying Mortgaged Property. 

 
 (f) all such financial statements shall be complete and correct in all
material respects and shall be prepared in reasonable detail and in accordance with GAAP applied consistently throughout the periods reflected therein and with prior periods (except as approved by such accountants or officer, as the case may be, and
disclosed therein); provided, that any financial statements delivered by the Seller with respect to the obligor under any Underlying Mortgage Loan shall be delivered to the Buyer in the form received by the Seller. 
  
 12.2 Certificates; Other Information. Furnish to the Buyer:

  
 (a) concurrently with the delivery of the financial statements
referred to in Sections 12.1(a)(i) above, a certificate of the independent certified public accountants reporting on such financial statements stating that in making the examination necessary therefor no knowledge was obtained of any Default or
Event of Default, except as specified in such certificate; 
  
 (b)
concurrently with the delivery of the financial statements referred to in Sections 12.1(a) and (b) above and with the delivery of each Confirmation, a certificate of a Responsible Officer, substantially in the form of Exhibit D attached
hereto (i) stating that, to the best of such Officer’s knowledge, each Repurchase Party during such period has observed or performed all of its covenants and other agreements, and satisfied every condition, contained in this Agreement and the
Related Documents to be observed, performed or satisfied by it, and that 

  

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such Officer has obtained no knowledge of any Default or Event of Default except as specified in such certificate and (ii) showing in detail the calculations
supporting such Officer’s certification of each Repurchase Party’s compliance with the requirements of Section 13.1 and the Guarantor’s compliance with the requirements of the Guarantee; 
  
 (c) as soon as available, but in any event not later than ninety (90) days
after the end of each fiscal year of the Guarantor, a copy of the projections of the Guarantor of the operating budget and cash flow budget of the Guarantor and its Subsidiaries for the succeeding fiscal year, such projections to be accompanied by a
certificate of a Responsible Officer certifying that such projections have been prepared in good faith based upon reasonable assumptions; 
  
 (d) no later than the fifteenth (15th) day of each month, with respect to each Purchased Asset, a Summary of Purchased Asset Key Data, substantially in the form of Exhibit C, properly completed; 
  
 (e) promptly upon receipt thereof, copies of all reports submitted to any Repurchase Party or any Subsidiary by independent
certified public accountants in connection with each annual, interim or special audit of the books and record of such Repurchase Party or such Subsidiary made by such accountants, including, without limitation, any management letter commenting on
such Repurchase Party’s internal controls submitted by such accountants to management in connection with their annual audit; 
  
 (f) within fifteen (15) days after the same are sent, copies of all financial statements and reports which a Repurchase Party sends to its stockholders,
and within fifteen (15) days after the same are filed, copies of all financial statements and reports which a Repurchase Party may make to, or file with, the Securities and Exchange Commission or any successor or analogous Governmental Authority;

  
 (g) no later than sixty (60) days after the end of each fiscal
quarter of the Seller, an updated list of all Subsidiaries of the Seller as of such time; 
  
 (h) promptly, such additional financial and other information as the Buyer may from time to time reasonably request. 
  
 12.3 Payment of Obligations. Pay, discharge or otherwise satisfy at or before maturity or before they become delinquent, as the case may be, all
its obligations of whatever nature, except where the amount or validity thereof is currently being contested in good faith by appropriate proceedings and reserves in conformity with GAAP with respect thereto have been provided on the books of any
Repurchase Party or its Subsidiaries, as the case may be. 
  
 12.4
Conduct of Business and Maintenance of Existence. Continue to engage in business of the same general type as now conducted by it and preserve, renew and keep in full force and effect its corporate existence and take all reasonable action to
maintain all rights, privileges and franchises necessary or desirable in the normal conduct of its business except as otherwise permitted pursuant to Section 13.4; comply with all Contractual Obligations and Requirements of Law except to the extent
that failure to comply therewith could not, in the aggregate, be reasonably expected to have a Material Adverse Effect. 
  

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 12.5 Maintenance of Property; Insurance. Keep all property useful and necessary in its business in
good working order and condition; maintain with financially sound and reputable insurance companies insurance on all its property in at least such amounts and against at least such risks as are usually insured against in the same general area by
companies engaged in the same or a similar business, and furnish to the Buyer, upon written request, full information as to the insurance carried. 
  
 12.6 Inspection of Property; Books and Records; Discussions. Keep proper books of records and account in which full, true and correct entries in
conformity with GAAP and all Requirements of Law shall be made of all dealings and transactions in relation to its business and activities; and permit representatives of the Buyer to visit and inspect any of its properties and examine and make
abstracts from any of its books and records at any reasonable time one time per calendar year at the expense of the Seller and the cost thereof to Seller shall not exceed $10,000, and otherwise as often as may reasonably be desired at the sole
expense of the Buyer and to discuss the business, operations, properties and financial and other condition of any Repurchase Party and its Subsidiaries with officers and employees of any such Repurchase Party and its Subsidiaries and with its
independent certified public accountants. 
  
 12.7 Notices.
Promptly give notice to the Buyer of: 
  
 (a) the occurrence of
any Default or Event of Default; 
  
 (b) any (i) default or event
of default under any Contractual Obligation of any Repurchase Party or any of its Subsidiaries or (ii) litigation, investigation or proceeding which may exist at any time between any Repurchase Party or any of its Subsidiaries and any Governmental
Authority, which in either case, if not cured or if adversely determined, as the case may be, could reasonably be expected to have a Material Adverse Effect; 
  
 (c) any litigation or proceeding affecting the Seller or any of its Subsidiaries (i) in which the amount involved is $250,000 or more and not covered by
insurance or bonded or (ii) in which injunctive or similar relief is sought and where, if adversely determined, such litigation or proceeding could reasonably be expected to have a Material Adverse Effect; 
  
 (d) the following events, as soon as possible and in any event within 30 days
after the Seller knows or has reason to know thereof: (i) the occurrence or expected occurrence of any Reportable Event with respect to any Plan, a failure to make any required contribution to a Plan, the creation of any Lien in favor of the PBGC or
a Plan or any withdrawal from, or the termination, Reorganization or Insolvency of, any Multiemployer Plan or (ii) the institution of proceedings or the taking of any other action by the PBGC or the Seller or any Commonly Controlled Entity or any
Multiemployer Plan with respect to the withdrawal from, or the terminating, Reorganization or Insolvency of, any Plan; and 
  
 (e) the resignation or termination of any Acceptable Special Servicer under any Special Servicing Agreement with respect to any Purchased Asset;

  
 (f) the conveyance, sale, lease, assignment, transfer or other
disposition (any such transaction, or related series of transactions, a “Sale”) of any property, business or assets (“Property”) of the Seller whether now owned or hereafter acquired, with the exception of any Sale 

  

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of Property by the Seller which is not material to the conduct of its business and is effected in the ordinary course of business; 
  
 (g) the establishment of a rating assigned to the long-term unsecured debt
issued by the Guarantor by Moody’s or S&P (or other rating agency acceptable to the Buyer), and of any downgrade in such rating once established; 
  
 (h) any loss or expected loss in respect of any Purchased Asset, or any other event or change in circumstances or expected event or change in
circumstances that could be reasonably be expected to result in a material decline in value or cash flow of any Purchased Asset; and 
  
 (i) any event or change in circumstances which could reasonably be expected to have a Material Adverse Effect; 
  
 (j) any amendment, waiver, supplement or other modification to Article VII of
the Revolving Credit Agreement or related definitions; and 
  
 (k)
any change in the outstanding principal amount of the Promissory Note. 
  
 Each notice pursuant to this Section shall be accompanied by a statement of a Responsible Officer setting forth details of the occurrence referred to therein and stating what action the Seller proposes to take with respect thereto.

  
 12.8 ERISA. The Seller shall, and shall cause each of
its Subsidiaries to, comply in all material respects with all requirements of ERISA applicable with respect to each Plan. 
  
 12.9 Information Relating to Purchased Assets. The Seller shall promptly deliver or cause to be delivered to the Buyer (i) any report or notice
received by the Seller from any obligor under the Purchased Assets promptly following receipt thereof and (ii) any other such document or information relating to the Purchased Assets as the Buyer may reasonably request in writing from time to time.

  
 12.10 Distributions in Respect of Purchased Assets. If
the Seller shall receive any rights, whether in addition to, in substitution of, as a conversion of, or in exchange for any Purchased Assets, or otherwise in respect thereof, the Seller shall accept the same as the Buyer’s agent, hold the same
in trust for the Buyer and deliver the same forthwith to the Buyer in the exact form received, together with duly executed instruments of transfer or assignment in blank and such other documentation as the Buyer shall reasonably request. If any sums
of money or property are paid or distributed in respect of the Purchased Assets and received by the Seller, the Seller shall promptly pay or deliver such money or property to the Buyer and, until such money or property is so paid or delivered to the
Buyer, hold such money or property in trust for the Buyer, segregated from other funds of the Seller. 
  
 12.11 Further Assurances. At any time and from time to time, upon the written request of the Buyer, and at the sole expense of the Seller, the
Seller will promptly and duly execute and deliver such further instruments and documents and take such further actions as the 

  

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Buyer may reasonably request for the purposes of obtaining or preserving the full benefits of this Agreement, the Offering Documents and of the rights and
powers therein granted, including, without limitation, any offering documents, private placement memoranda or prospectuses relating to the Purchased Assets in order to facilitate the sale thereof. 
  
 12.12 Intentionally Omitted. 
  
 12.13 Security Interest; Concerning Purchased Assets. 
  
 (a) The Seller shall do all things necessary to preserve the Purchased Assets
so that they remain subject to a first-priority perfected security interest hereunder in the event any such Transactions are deemed to be loans, and the Seller shall be deemed to have pledged to the Buyer as security for the performance by the
Seller of its obligations under each such Transaction, and shall be deemed to have granted to the Buyer a security interest in, all of the Purchased Assets with respect to all Transactions hereunder and all Income thereon and other proceeds thereof
pursuant to Section 6 hereof. 
  
 (b) The Seller will comply with
all rules, regulations and other laws of any Governmental Authority and shall cause the Purchased Assets to comply with all applicable rules, regulations and other laws. The Seller shall not allow any default for which the Seller is responsible to
occur under any Underlying Mortgage Loan documents or Offering Documents and the Seller shall fully perform or cause to be performed when due all of its obligations under any Underlying Mortgage Loan documents or Offering Documents. 
  
 12.14 Servicing of Underlying Mortgage Loans. The Seller shall cause
one or more Acceptable Special Servicers (each, a “Servicer”) to service, or cause to be serviced, all Underlying Mortgage Loans in respect of which a Junior Interest was created, and, as applicable, Properties underlying the Eligible
Assets in accordance with any and all applicable laws, the terms of this Agreement, the terms of the respective Underlying Mortgage Loan documents and, to the extent consistent with the foregoing, in accordance with the Servicing Standard. The
Seller shall notify the Servicer(s) of the Buyer’s interest hereunder and the Seller shall notify the Buyer of the name and address of all Servicers. The Buyer shall have the right to approve each Servicer and the form and substance of all
servicing agreements or servicing side letter agreements. The Seller shall cause the Servicer(s) to hold or cause to be held all escrow funds collected with respect to such Underlying Mortgage Loans in trust accounts and shall apply the same for the
purposes for which such funds were collected. The Seller shall provide to the Buyer a letter from each Servicer substantially in the form of Exhibit E hereto (a “Servicer Notice and Agreement”) to the effect that upon the occurrence
of an Event of Default, the Lender may terminate any Special Servicing Agreement and in any event transfer servicing to the Buyer’s designee, at no cost or expense to the Buyer, it being agreed that the Seller will pay any and all fees required
to terminate a Special Servicing Agreement and to effectuate the transfer of servicing to the designee of the Buyer. Upon the Buyer’s request, the Seller shall provide promptly to the Buyer a letter addressed to and agreed by each Servicer, in
form and substance satisfactory to the Buyer, advising such Servicer of such matters as the Buyer may reasonably request. If the Seller should discover that, for any reason, the Seller or any entity responsible to the Seller by contract for managing
or servicing any such Underlying Mortgage Loan or Mezzanine Loan has failed to perform fully Seller’s obligations under this Agreement or the 

  

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Related Documents or any of the obligations of such entities with respect to the Commercial Properties, the Underlying Mortgage Loans or the Mortgage Assets,
the Seller shall promptly notify the Buyer. 
  
 12.15 Guarantor
Covenants. The Guarantor shall at all times comply with the covenants set forth in Sections 7.2 through Section 7.7, Section 9.3, Section 9.6 and Section 9.8 of the Revolving Credit Agreement, as the same shall be amended, waived, supplemented
or otherwise modified from time to time; provided, that for purposes of calculating compliance with financial covenants pursuant to this Agreement, the Buyer shall not give effect to any amendment, waiver or other modification to Article VII
of the Revolving Credit Agreement or related definitions executed for the purpose or with the effect of avoiding or waiving a Default or Event of Default (other than with respect to a Default resulting from changes in legal requirements by any
Governmental Authority and/or to GAAP). 
  
 Section 13. NEGATIVE
COVENANTS 
  
 Each Repurchase Party, as applicable, hereby agrees
that, so long as any of the Commitments remain in effect or any amount is owing to the Buyer hereunder or under any Related Document, it shall not, and, to the extent applicable, shall not permit any of its Subsidiaries to, directly or indirectly:

  
 13.1 Limitation on Indebtedness. Create, incur, assume
or suffer to exist any Indebtedness of the Seller, except: 
  
 (a)
Indebtedness of the Seller under this Agreement; 
  
 (b)
Indebtedness of the Seller to any Subsidiary and of any Subsidiary to the Seller or any other Subsidiary; 
  
 (c) Indebtedness of the Seller outstanding on the date hereof and listed on Schedule 13.1; 
  
 (d) additional Indebtedness of the Seller not exceeding $3,500,000 in
aggregate principal amount at any one time outstanding. 
  
 13.2
Limitation on Liens. Create, incur, assume or suffer to exist any Lien upon any of the Seller’s property, assets or revenues, whether now owned or hereafter acquired, except for: 
  
 (a) Liens for taxes not yet due or which are being contested in good faith by
appropriate proceedings, provided that adequate reserves with respect thereto are maintained on the books of the Seller or its Subsidiaries, as the case may be, in conformity with GAAP; 
  
 (b) deposits to secure the performance of bids, trade contracts (other than
for borrowed money), leases, statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature incurred in the ordinary course of business; 
  

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 (c) easements, rights of way, restrictions and other similar encumbrances incurred in the ordinary course
of business which, in the aggregate, are not substantial in amount and which do not in any case materially detract from the value of the property subject thereto or materially interfere with the ordinary conduct of the business of the Seller or any
Subsidiary; 
  
 (d) Liens in existence on the date hereof securing
Indebtedness permitted by Section 13.1(c); provided, that no such Lien is spread to cover any additional property after the date of this Agreement and that the amount of Indebtedness secured thereby is not increased; 
  
 (e) Liens (not otherwise permitted hereunder) which secure obligations not
exceeding (as to the Seller and all of its Subsidiaries) $3,000,000 in aggregate amount at any time outstanding; and 
  
 (f) Liens created pursuant to this Agreement or any Related Document. 
  
 13.3 Limitation on Guarantee Obligations. Create, incur, assume or suffer to exist any Guarantee Obligation of the
Seller. 
  
 13.4 Limitation on Fundamental Changes. With
respect to the Seller, enter into any merger, consolidation or amalgamation, or liquidate, wind up or dissolve itself (or suffer any liquidation or dissolution), or convey, sell, lease, assign, transfer or otherwise dispose of, all or substantially
all of its property, business or assets, or make any material change in its present method of conducting business, except: 
  
 (a) any Subsidiary of the Seller may be merged or consolidated with or into the Seller (provided that the Seller shall be the continuing or
surviving corporation) or with or into any one or more wholly owned Subsidiaries of the Seller (provided that the wholly owned Subsidiary or Subsidiaries shall be the continuing or surviving corporation); and 
  
 (b) any wholly owned Subsidiary may sell, lease, transfer or otherwise
dispose of any or all of its assets (upon voluntary liquidation or otherwise) to the Seller or any other wholly owned Subsidiary of the Seller. 
  
 13.5 Limitation on Transactions with Affiliates. With respect to the Seller, enter into any transaction, including, without limitation, any
purchase, sale, lease, loan or exchange of property or the rendering of any service, with any Affiliate unless such transaction is (a) otherwise permitted under this Agreement, (b) in the ordinary course of the Seller’s or such
Subsidiary’s business and (c) upon fair and reasonable terms no less favorable to the Seller or such Subsidiary, as the case may be, than it would obtain in a comparable arm’s length transaction with a Person which is not an Affiliate;
provided, however, that loans made to the Guarantor as permitted under this Agreement shall be deemed to be on commercially reasonable terms to the extent made at a prevailing rate of interest. 
  
 13.6 Limitation on Changes in Fiscal Year. Permit the fiscal year to
end on a day other than November 30. 
  
 13.7 Unrelated
Activities. With respect to the Seller, engage in any activity other than activities specifically permitted by this Section 13, including, but not limited to, 

  

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investment in real estate related assets, and the purchasing, financing and holding of commercial mortgage-backed securities and activities incident thereto.

  
 13.8 Governing Documents. With respect to the Seller,
amend its certificate of incorporation (except to increase the number of authorized shares of common stock), partnership agreement or other Governing Documents, without the prior written consent of the Buyer, which shall not be unreasonably withheld
or delayed. 
  
 13.9 Separateness. With respect to the
Seller, (a) own no assets, and will not engage in any business, other than the assets and transactions specifically contemplated by this Agreement; (b) not incur any indebtedness or obligation, secured or unsecured, direct or indirect, absolute or
contingent (including guaranteeing any obligation), other than (i) pursuant hereto and under the agreements and documents evidencing, securing or in any other way related to the Purchased Assets, (ii) customary representations, warranties,
indemnities and other agreements in connection with the origination, acquisition, servicing, collection, enforcement, financing, participation, securitization, sale or other disposition of the Purchased Assets, and (iii) obligations under zoning and
other governmental regulations, rules, prohibitions and ordinances and proposed restrictions, covenants, conditions, limitations, easements, rights-of-way and other matters existing of public record or proposed to be recorded or filed in the future
governing or affecting mortgaged real property or that may otherwise require the consent of or joinder by a mortgagee; (c) not make any loans or advances to any third party other than loans to the Guarantor, and shall not acquire obligations or
securities of its Affiliates; (d) pay its debts and liabilities (including, as applicable, shared personnel and overhead expenses) only from its own assets; (e) comply with the provisions of its organizational documents; (f) do all things necessary
to observe organizational formalities and to preserve its existence, and will not amend, modify or otherwise change Sections 3, 7 or 9 of its certificate of incorporation or any other provision of its organizational documents in a manner that
conflicts with the provisions of said Sections 3, 7 or 9 of its certificate of incorporation, and shall inform Buyer of any other amendment to its organizational documents; (g) maintain all of its books, records, financial statements and bank
accounts separate from those of its Affiliates (except that such financial statements may be consolidated to the extent consolidation is required under United States generally accepted accounting principles consistently applied as in effect from
time to time or as a matter of law) and file its own tax returns (except to the extent consolidation is required or permitted under applicable law); (h) be, and at all times will hold itself out to the public as, a legal entity separate and distinct
from any other entity (including any Affiliate), shall correct any known misunderstanding regarding its status as a separate entity, shall conduct business in its own name, shall not identify itself or any of its Affiliates as a division of the
other; (i) maintain adequate capital for the normal obligations reasonably foreseeable in a business of its size and character and in light of its contemplated business operations; (j) not engage in or suffer any change of ownership, dissolution,
winding up, liquidation, consolidation or merger in whole or in part; (k) not commingle its funds or other assets with those of any Affiliate or any other Person; (l) maintain its assets in such a manner that it will not be costly or difficult to
segregate, ascertain or identify its individual assets from those of any Affiliate or any other Person; (m) not and will not hold itself out to be responsible for the debts or obligations of any other Person; (n) shall not, without the vote of its
Independent Director, (i) file or consent to the filing of any bankruptcy, insolvency or reorganization case or proceeding with respect to the Seller; institute any proceedings under any applicable insolvency law or otherwise seek any relief under
any laws 

  

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relating to the relief from debts or the protection of debtors generally with respect to the Seller; (ii) seek or consent to the appointment of a receiver,
liquidator, assignee, trustee, sequestrator, custodian or any similar official for the Seller or a substantial portion of its properties; or (iii) make any assignment for the benefit of the Seller’s creditors; and (o) shall have at least one
(1) Independent Director for purposes of voting on the matters described in Section 13.9(n) only. 
  
 13.10 ERISA. None of the Repurchase Parties shall become an entity deemed to hold “plan assets” within the meaning of ERISA or any
regulations promulgated thereunder of an employee benefit plan (as defined in Section 3(3) of ERISA) which is subject to Title I of ERISA or any plan within the meaning of Section 4975 of the Code. 
  
 Section 14. EVENTS OF DEFAULT; REMEDIES 
  
 14.1 Events of Default. Each of the following shall constitute an
event of default (an “Event of Default”): 
  
 (a)
the Seller fails to transfer Purchased Assets upon the applicable Purchase Date; 
  
 (b) the Seller fails to repurchase Purchased Assets upon the applicable Repurchase Date; 
  
 (c) the Seller fails to comply with Section 4 hereof; 
  
 (d) an Act of Insolvency occurs with respect to the Seller or the Guarantor; 
  
 (e) any representation made by any Repurchase Party shall have been incorrect or untrue in any material respect when made or
repeated or deemed to have been made or repeated; 
  
 (f) the
Seller shall admit to the other its inability to, or its intention not to, perform any of its obligations hereunder; 
  
 (g) to the extent any that any Transaction is deemed a sale and not a financing, this Agreement shall for any reason not cause, or shall cease to cause,
the Buyer to be the owner free and clear of any pledge, Lien, security interest, encumbrance, charge or other adverse claim of any of the Purchased Assets, or in the event that any Transaction is deemed a financing and not a sale, this Agreement
shall for any reason not create, or shall cease to create, a valid, perfected first priority security interest in favor of the Buyer in any of the Purchased Assets and cause the Buyer to be the entitlement holder with respect thereto; 
  
 (h) the Seller shall fail to perform or comply with, admit its inability to
perform or state its intention not to perform or comply with its obligations and covenants under this Agreement or any Related Document; 
  
 (i) the Guarantor shall fail to perform or comply with, admit its inability to perform or state its intention not to perform or comply with its
obligations and covenants under the Guarantee or any Related Document; 
  

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 (j) the Seller or the Guarantor shall (i) default in any payment of principal of or interest of any
Indebtedness or in the payment of any Guarantee Obligation, in each case involving payment in respect of Indebtedness of the Seller of $3,000,000 or more (“Seller Indebtedness” or “Seller Guarantee Obligation”) as
applicable, or Indebtedness of the Guarantor of $5,000,000 or more (“Guarantor Indebtedness” or “Guarantor Guarantee Obligation”), as applicable, in each case beyond the period of grace (not to exceed 30 days), if
any, provided in the instrument or agreement under which such Seller Indebtedness or Guarantor Indebtedness or Seller Guarantee Obligation or Guarantor Guarantee Obligation was created; or (ii) default in the observance or performance of any other
agreement or condition relating to any such Seller Indebtedness or Guarantor Indebtedness, beyond the period of grace (not to exceed 30 days), or Seller Guarantee Obligation or Guarantor Guarantee Obligation beyond the period of grace (not to exceed
30 days), or contained in any instrument or agreement evidencing, securing or relating thereto, or any other event shall occur or condition exist, the effect of which default or other event or condition is to cause, or to permit the holder or
holders of such Seller Indebtedness or Guarantor Indebtedness or beneficiary or beneficiaries of such Seller Guarantee Obligation or Guarantor Guarantee Obligation (or a trustee or agent on behalf of such holder or holders or beneficiary or
beneficiaries) to cause, with the giving of notice if required, such Seller Indebtedness or Guarantor Indebtedness to become due prior to its stated maturity or such Seller Guarantee Obligation or Guarantor Guarantee Obligation to become payable;

  
 (k) the occurrence of any “Event of Default”,
however defined, under any Indebtedness, credit agreement or repurchase agreement between the Seller or the Guarantor, on the one hand, and the Buyer or any of its Affiliates, on the other hand; 
  
 (l) one or more judgments or decrees shall be entered against the Seller or
the Guarantor involving in the aggregate a liability (not paid or fully covered by insurance) of $5,000,000 or more and all such judgments or decrees shall not have been vacated, discharged, stayed or bonded pending appeal within sixty (60) days
from the entry thereof; 
  
 (m) (i) the Seller ceases to be an
indirect wholly-owned subsidiary of LNR Property Corporation, or (ii) LNR Property Corporation ceases to be the holder, directly or indirectly, of all issued and outstanding shares of the common stock of the Seller; or 
  
 (n) any event or circumstance shall occur which has had or could reasonably
be expected to have a Material Adverse Effect. 
  
 14.2
Remedies. (a) In making a determination as to whether an Event of Default has occurred, either party shall be entitled to rely on reports published or broadcast by media sources believed by either party to be generally reliable and on
information provided to it by any other sources believed by it to be generally reliable, provided that either party reasonably and in good faith believes such information to be accurate and has taken such steps as may be reasonable in the
circumstances to attempt to verify such information. 
  
 (b) Upon
the occurrence of any Event of Default, the nondefaulting party may, at its option (which option shall be deemed to have been exercised immediately upon the occurrence of an Act of Insolvency) declare an Event of Default to have occurred hereunder
and, upon the exercise or deemed exercise of such option, the Repurchase Date for each Transaction 

  

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hereunder shall, if it has not already occurred, be deemed immediately to occur (except that, in the event that the Purchase Date for any Transaction has not
yet occurred as of the date of such exercise or deemed exercise, such Transaction shall be deemed immediately canceled). The nondefaulting party shall (except upon the occurrence of an Act of Insolvency) give notice to the defaulting party of the
exercise of such option as promptly as practicable. 
  
 (c) In all
Transactions in which the defaulting party is acting as Seller, if the nondefaulting party exercises or is deemed to have exercised the option referred to in paragraph (b) of this Section 14.2, (i) the defaulting party’s obligations in such
Transactions to repurchase all Purchased Assets, at the Repurchase Price therefor on the Repurchase Date determined in accordance with paragraph (b) of this Section 14.2, shall thereupon become immediately due and payable, (ii) all Income paid after
such exercise or deemed exercise shall be retained by the nondefaulting party and applied to the aggregate unpaid Repurchase Prices and any other amounts owing by the defaulting party hereunder, and (iii) the defaulting party shall immediately
deliver to the nondefaulting party any Purchased Assets subject to such Transactions then in the defaulting party’s possession or control. 
  
 (d) In all Transactions in which the defaulting party is acting as Buyer, upon tender by the nondefaulting party of payment of the aggregate Repurchase
Prices for all such Transactions, all right, title and interest in and entitlement to all Purchased Assets subject to such Transactions shall be deemed transferred to the nondefaulting party, and the defaulting party shall deliver all such Purchased
Assets to the nondefaulting party. 
  
 (e) If the nondefaulting
party exercises or is deemed to have exercised the option referred to in paragraph (b) of this Section 14.2, the nondefaulting party, without prior notice to the defaulting party, may: 
  
 (i) as to Transactions in which the defaulting party is acting as Seller, (A) immediately sell, in a
recognized market (or otherwise in a commercially reasonable manner) at such price or prices as the nondefaulting party may reasonably deem satisfactory, any or all Purchased Assets subject to such Transactions and apply the proceeds thereof to the
aggregate unpaid Repurchase Prices and any other amounts owing by the defaulting party hereunder or (B) in its sole discretion elect, in lieu of selling all or a portion of such Purchased Assets, to give the defaulting party credit for such
Purchased Assets in an amount equal to the price therefor on such date, obtained from a generally recognized source or the most recent closing bid quotation from such a source, against the aggregate unpaid Repurchase Prices and any other amounts
owing by the defaulting party hereunder; and 
  
 (ii) as to Transactions in which the defaulting party is acting as Buyer, (A) immediately purchase, in a recognized market (or otherwise in a commercially reasonable manner) at such price or prices as the nondefaulting party may reasonably
deem satisfactory, Mortgage Assets (“Replacement Assets”) of the same class and amount as any Purchased Assets that are not delivered by the defaulting party to the nondefaulting party as required hereunder or (B) in its sole
discretion elect, in lieu of purchasing Replacement Assets, to be deemed to have purchased Replacement Assets at the price 

  

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therefor on such date, obtained from a generally recognized source or the most recent closing offer quotation from such a source. 
  
 In the absence of a generally recognized source for prices or bid or offer
quotations for any Purchased Asset, the nondefaulting party may establish the source therefor in its sole discretion and 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 Mortgage Assets). 
  
 (f) For
purposes of this Section 14, the Repurchase Price for each Transaction hereunder in respect of which the defaulting party is acting as Buyer shall not increase above the amount of such Repurchase Price for such Transaction determined as of the date
of the exercise or deemed exercise by the nondefaulting party of the option referred to in paragraph (b) of this Section 14.2. 
  
 (g) The defaulting party shall be liable to the nondefaulting party for (i) the amount of all reasonable legal or other expenses incurred by the
nondefaulting party in connection with or as a result of an Event of Default, (ii) damages in an amount equal to the 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 (iii) any other loss, damage, cost or expense directly arising or resulting from the occurrence of an Event of Default in respect of a Transaction. 
  
 (h) To the extent permitted by applicable law, the defaulting party shall be
liable to the nondefaulting party for interest on any amounts owing by the defaulting party hereunder, from the date the defaulting party becomes liable for such amounts hereunder until such amounts are (i) paid in full by the defaulting party or
(ii) satisfied in full by the exercise of the nondefaulting party’s rights hereunder. Interest on any sum payable by the defaulting party to the nondefaulting party under this Section 14.2(j) shall be at a rate equal to the greater of the
Pricing Rate for the relevant Transaction or the Prime Rate. 
  
 (i) In addition to the rights under this Section 14.2, upon an Event of Default the Buyer shall no longer be obligated to enter into any additional Transactions pursuant to any outstanding Confirmation and the Buyer shall have the following
additional rights if an Event of Default occurs with respect to the Seller: 
  
 (i) The Buyer and the Seller agree and acknowledge that the Purchased Assets constitute collateral that may decline rapidly in value. Accordingly, notwithstanding anything to the contrary in this Agreement, the Buyer
shall not be required to give notice to the Seller or any other Repurchase Party prior to exercising any remedy in respect of an Event of Default. If no prior notice is given, the Buyer shall give notice to the Seller of the remedies effected by the
Buyer promptly thereafter. The Buyer shall act in good faith in exercising its rights pursuant to this paragraph. 
  
 (ii) The Buyer may, in its sole discretion, elect to hold any Purchased Asset for its own account and earn the related interest on the
full face amount thereof. 
  

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 (j) The nondefaulting party shall have, in addition to its rights hereunder, any rights otherwise
available to it under any other agreement or applicable law. 
  
 Section 15. INDEMNIFICATION 
  
 (a) The Seller agrees to
hold the Buyer, and its Affiliates and their officers, directors, employees, agents and advisors (each an “Indemnified Party”) harmless from and indemnify any Indemnified Party against all liabilities, losses, damages, judgments,
costs and expenses of any kind which may be imposed on, incurred by or asserted against such Indemnified Party (collectively, the “Costs”) relating to or arising out of this Agreement, the Related Documents (to the extent arising
from actions or inactions of the Seller) or any transaction contemplated hereby or thereby, or any amendment, supplement or modification of, or any waiver or consent under or in respect of, this Agreement, the Guarantee or any transaction
contemplated hereby or thereby, that, in each case, results from anything other than any Indemnified Party’s gross negligence or willful misconduct or, with respect to any Purchased Asset which is a Wachovia Asset, for or in connection with any
matters arising from events which occurred prior to the Original Purchase Date. Without limiting the generality of the foregoing, the Seller agrees to hold any Indemnified Party harmless from and indemnify such Indemnified Party against all Costs
with respect to all Purchased Assets relating to or arising out of any violation or alleged violation of, noncompliance with or liability under any law, rule or regulation (including without limitation, Environmental Laws) that, in each case,
results from anything other than such Indemnified Party’s gross negligence or willful misconduct. In any suit, proceeding or action brought by an Indemnified Party in connection with any Purchased Asset for any sum owing thereunder, or to
enforce any provisions of any Purchased Asset, the Seller will save, indemnify and hold such Indemnified Party harmless from and against all expense, loss or damage suffered by reason of any defense, set-off, counterclaim, recoupment or reduction or
liability whatsoever of the account debtor or obligor thereunder, arising out of a breach by the Seller of any obligation thereunder or arising out of any other agreement, indebtedness or liability at any time owing to or in favor of such account
debtor or obligor or its successors from the Seller. The Seller also agree to reimburse an Indemnified Party as and when billed by such Indemnified Party for all such Indemnified Party’s costs and expenses incurred in connection with the
enforcement or the preservation of such Indemnified Party’s rights under this Agreement or any transaction contemplated hereby or thereby, including without limitation the reasonable fees and disbursements of its counsel. Notwithstanding
anything to the contrary in this Section 15, the Seller shall not be liable for any Costs relating to the Related Documents or the transactions contemplated thereby arising from the material actions or inactions of the Buyer. This indemnity shall
continue in full force and effect regardless of the termination of this Agreement. 
  
 (b) The Seller agrees to pay as and when billed by the Buyer all of the reasonable out-of-pocket costs and expenses incurred by the Buyer in connection with the development, preparation and execution of, and any
amendment, supplement or modification to, this Agreement, the Guarantee or any other documents prepared in connection herewith or therewith. The Seller agrees to pay as and when billed by the Buyer all of the out-of-pocket costs and expenses
incurred in connection with the consummation and administration of the transactions contemplated hereby and thereby including without limitation (i) all the reasonable fees, disbursements and expenses of counsel to the Buyer, (ii) all the due
diligence, inspection, testing and review costs and expenses incurred by the Buyer with respect to Mortgage Assets submitted 

  

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by Seller for purchase under this Agreement (provided, that such fees (not including fees and expenses of counsel, if any) shall not exceed $2,500 per
Underlying Mortgaged Property) or otherwise with respect to the Purchased Assets under this Agreement (other than in connection with the initial closing of the Securitization Transaction relating to the Purchased Assets), including, but not limited
to, those costs and expenses incurred by the Buyer and reimbursable by the Seller pursuant to Section 15(a) of this Agreement and (iii) all of the fees and expenses of counsel with respect to review of Non-Wachovia Mortgage Assets submitted by
Seller for purchase under this Agreement (provided, that Buyer shall provide notice to Seller if such fees are projected to exceed $1,250 per Mortgage Asset). 
  

Section 16. MISCELLANEOUS 
  
 16.1 Single Agreement. The Buyer and the Seller acknowledge that, and have entered hereinto 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 Buyer and the Seller agrees (i) to
perform all of its obligations in respect of each 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, (ii) 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 (iii) that payments, deliveries and other transfers made by either 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. 
  
 16.2
Notices and Other Communications. Any and all notices, statements, demands or other communications hereunder may be given by a party to the other by mail, facsimile, telegraph, messenger or otherwise to the address specified in Schedule
16.2, or so sent to such party at any other place specified in a notice of change of address hereafter received by the other. All notices, demands and requests hereunder may be made orally, to be confirmed promptly in writing, or by other
communication as specified in the preceding sentence. 
  
 16.3
No Waivers, Etc. No express or implied waiver of any Event of Default by either 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 both of the
parties hereto. Without limitation on any of the foregoing, the failure to give a notice pursuant to Section 4.1 will not constitute a waiver of any right to do so at a later date. 
  
 16.4 Entire Agreement; Severability. This Agreement shall supersede any existing agreements between the parties
containing general terms and conditions for repurchase transactions. 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. 
  

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 16.5 Assignments and Participations; Hypothecation of Purchased Assets; Termination. 

 
 (a) The Seller may not assign any of its rights or obligations under this
Agreement without the prior written consent of the Buyer and any attempt by the Seller to assign any of its rights or obligations under this Agreement without the prior written consent of the Buyer shall be null and void; provided,
however, that Seller may assign any of its rights or obligations under this Agreement to an Affiliate of the Seller with the prior written consent of the Buyer, which consent not to be unreasonably withheld. The Buyer may upon notice to the
Seller and without consent of the Seller, sell to any other person participating interests in any Transaction, its interest in the Purchased Assets, or any other interest of the Buyer under this Agreement (any such purchasing participant, a
“Transferee”); provided, that any transfer effected pursuant to this Section 16.5(a) shall be in respect of Purchased Assets with a minimum Purchase Price of $1,000,000 (other than in the case of (a) a transfer of all of the
interests then held by the Buyer (or a Transferee) or (b) a transfer to an Affiliate of the Buyer (or a Transferee)). The Seller agrees to cooperate with the Buyer in connection with any such assignment, transfer or sale of participating interest
and to enter into such restatements of, and amendments, supplements and other modifications to, this Agreement in order to give effect to such assignment, transfer or sale. 
  
 (b) The Buyer shall have free and unrestricted use of all Purchased Assets and nothing in this Agreement shall preclude the
Buyer from engaging in repurchase transactions with the Purchased Assets or otherwise pledging, transferring, hypothecating, or rehypothecating the Purchased Assets; provided, however, that the Buyer shall transfer the Purchased Assets
to the Seller on the applicable Repurchase Date free and clear of any pledge, Lien, security interest, encumbrance, charge or other adverse claim on any of the Purchased Assets. Nothing contained in this Agreement shall obligate the Buyer to
segregate any Purchased Assets transferred to the Buyer by the Seller. 
  
 (c) This Agreement may be terminated by either party upon giving written notice to the other, except that this Agreement shall, notwithstanding such notice, remain applicable to any Transactions then outstanding. 
  
 Subject to the foregoing, this Agreement and any Transactions shall be
binding upon and shall inure to the benefit of the parties and their respective successors and assigns. 
  
 16.6 GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 
  
 16.7
SUBMISSION TO JURISDICTION; WAIVERS. EACH REPURCHASE PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY: 
  
 (a) SUBMITS FOR ITSELF AND ITS PROPERTY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THE AGREEMENT OR FOR RECOGNITION AND ENFORCEMENT OF ANY JUDGMENT IN
RESPECT THEREOF, TO THE NONEXCLUSIVE GENERAL JURISDICTION OF THE COURTS OF THE STATE OF NEW 

  

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YORK, THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK, AND APPELLATE COURTS FROM ANY THEREOF; 
  
 (b) CONSENTS THAT ANY SUCH ACTION OR PROCEEDING MAY BE BROUGHT IN SUCH COURTS
AND, TO THE EXTENT PERMITTED BY LAW, WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION OR PROCEEDING WAS BROUGHT IN AN INCONVENIENT COURT AND AGREES NOT TO
PLEAD OR CLAIM THE SAME; 
  
 (c) AGREES THAT SERVICE OF PROCESS IN
ANY SUCH ACTION OR PROCEEDING MAY BE EFFECTED BY MAILING A COPY THEREOF BY REGISTERED OR CERTIFIED MAIL (OR ANY SUBSTANTIALLY SIMILAR FORM OF MAIL), POSTAGE PREPAID, TO ITS ADDRESS SET FORTH UNDER ITS SIGNATURE BELOW OR AT SUCH OTHER ADDRESS OF
WHICH THE BUYER SHALL HAVE BEEN NOTIFIED; AND 
  
 (d) AGREES THAT
NOTHING HEREIN SHALL AFFECT THE RIGHT TO EFFECT SERVICE OF PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT TO SUE IN ANY OTHER JURISDICTION. 
  
 16.8 WAIVER OF JURY TRIAL. EACH OF THE REPURCHASE PARTIES AND THE BUYER HEREBY IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THE AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. 
  
 16.9 Counterparts. The Agreement and all other documents relating
thereto may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument, and any of the parties hereto may execute this Agreement or such other document by signing any such counterpart.

  
 16.10 Use of Employee Plan Assets, (a) If assets of an
employee benefit plan subject to any provision of the Employee Retirement Income Security Act of 1974 (“ERISA”) are intended to be used by either party hereto (the “Plan Party”) in a Transaction, the Plan Party
shall so notify the other party prior to the Transaction. The Plan Party shall represent in writing to the other party that the Transaction does not constitute a prohibited transaction under ERISA or is otherwise exempt therefrom, and the other
party may proceed in reliance thereon but shall not be required so to proceed. 
  
 (b) Subject to the last sentence of Section 16.10(a) above, any such Transaction shall proceed only if Seller furnishes or has furnished to Buyer its most recent available audited statement of its financial condition
and its most recent subsequent unaudited statement of its financial condition. 
  
 (c) By entering into a Transaction pursuant to this Section 16.10, Seller shall be deemed (i) to represent to Buyer that since the date of Seller’s latest such financial statements, there has been no material
adverse change in Seller’s financial condition which Seller has not 

  

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disclosed to Buyer, and (ii) to agree to provide Buyer with future audited and unaudited statements of its financial condition as they are issued, so long as
it is a Seller in any outstanding Transaction involving a Plan Party. 
  
 16.11 Intent. (a) The parties recognize that each Transaction is a “repurchase agreement” as that term is defined in Section 101 of Title 11 of the United States Code, as amended (except insofar as the type of Mortgage
Asset 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 Title 11 of the United States Code, as amended (except
insofar as the type of assets subject to such Transaction would render such definition inapplicable). 
  
 (b) It is understood that either party’s right to liquidate Purchased Assets delivered to it in connection with Transactions hereunder or to exercise
any other remedies pursuant to Section 14.2 is a contractual right to liquidate such Transaction as described in Sections 555 and 559 of Title 11 of the United States Code, as amended. 
  
 (c) The parties agree and acknowledge that 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). 
  
 (d) It is understood that this Agreement 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 one or both of the parties is not a “financial institution” as that term is defined in FDICIA). 
  
 16.12 Disclosure Relating to Certain Federal Protections. The parties
acknowledge that they have been advised that: 
  
 (a) 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 the Securities Investor Protection Act of 1970 (“SIPA”) do not protect the other party with respect to any Transaction hereunder; 
  
 (b) 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; 
  
 (c) in the case of Transactions in which one of the parties is a financial
institution, funds held by the financial institution pursuant to a Transaction hereunder are not a deposit and therefore are not insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund, as applicable;
and 
  

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 (d) in the case of Transactions in which one of the parties is an “insured depository
institution” as that term is defined in Section 1813(c)(2) of Title 12 of the United States Code, as amended, funds held by the financial institution pursuant to a Transaction hereunder are not a deposit and therefore are not insured by the
Federal Deposit Insurance Corporation, the Savings Association Insurance Fund or the Bank Insurance Fund, as applicable. 
  
 16.13 Confidentiality. Each party hereto agrees to keep confidential any written information provided to it by or on behalf of any other par hereto
pursuant to or in connection with this Agreement or obtained by the Buyer based on a review of the books and records of the Repurchase Parties; provided that nothing herein shall prevent any such par from disclosing any such information (i)
to any other par to this Agreement, (ii) to any Transferee or potential Transferee which agrees to comply with the provisions of this Section 16.13, (iii) to its employees, directors, agents, attorneys, accountants and other professional advisors,
(iv) upon the request or demand of any examiner or other Governmental Authority, (v) in response to any order of any court or other Governmental Authority or as may otherwise be required pursuant to any Requirement of Law, (vi) which has been
publicly disclosed other than in breach of this Agreement, or (vii) in connection with the exercise of any remedy hereunder. 
  
 16.14 Treatment of Certain Information. Notwithstanding anything to the contrary contained herein or in any related document, all Persons may
disclose to any and all Persons, without limitation of any kind, the federal income tax treatment of any of the transactions contemplated by this Repurchase Agreement or any other related document, any fact relevant to understanding the federal tax
treatment of such transactions and all materials of any kind (including opinions or other tax analyses) relating to such federal income tax treatment. 
  
 [SIGNATURE PAGE FOLLOWS] 
  

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

			
	SELLER
	  
 DSHI BLUE, INC.

		
	By:	 	/s/    MARK T. BRIGGS        
	 	 	

	 Name:
 Title:
	 	 MARK T. BRIGGS
 VICE PRESIDENT

  

			
	GUARANTOR
	  
 LNR PROPERTY CORPORATION

		
	By:	 	/s/    MARK T. BRIGGs        
	 	 	

	 Name:
 Title:
	 	 MARK T. BRIGGS
 VICE PRESIDENT

  

			
	BUYER
	  
 WACHOVIA CAPITAL INVESTMENTS,
INC.

		
	By:	 	/s/    MARIANNE HICKMAN        
	 	 	

	 Name:
 Title:
	 	 MARIANNE HICKMAN
 DIRECTOR

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