Document:

Future Spread Agreement for Non-Agency Mortgage Loans

 Exhibit 10.7 
 Execution Copy 
 FUTURE SPREAD AGREEMENT FOR NON-AGENCY MORTGAGE LOANS

 by and between 
 NATIONSTAR MORTGAGE LLC 
 (Seller) 

and 

NIC MSR II LLC 
 (Purchaser) 
 Dated and effective as of March 6, 2012

 Table of Contents 

 

							
	 ARTICLE I DEFINITIONS; GENERAL INTERPRETIVE PRINCIPLES
	  	 	6	  
	 Section 1.01
	 	 Definitions
	  	 	6	  
	 Section 1.02
	 	 General Interpretive Principles
	  	 	16	  
		
	 ARTICLE II ITEMS TO BE DELIVERED
	  	 	17	  
	 Section 2.01
	 	 Items to be Delivered
	  	 	17	  
	 Section 2.02
	 	 Grant of Security Interest
	  	 	18	  
		
	 ARTICLE III REPLACEMENT OF MORTGAGE LOANS
	  	 	18	  
	 Section 3.01
	 	 Refinancing and Substitution of Mortgage Loans
	  	 	18	  
	 Section 3.02
	 	 Criteria for Mortgage Loans
	  	 	19	  
	 Section 3.03
	 	 Refinancing Incentives
	  	 	20	  
	 Section 3.04
	 	 Selection Procedures
	  	 	21	  
	 Section 3.05
	 	 Assignment of Future Excess Servicing Spread
	  	 	23	  
		
	 ARTICLE IV PAYMENTS AND DISTRIBUTIONS
	  	 	23	  
	 Section 4.01
	 	 Purchase Price
	  	 	23	  
	 Section 4.02
	 	 Payments by Purchaser
	  	 	23	  
	 Section 4.03
	 	 Accounts
	  	 	23	  
	 Section 4.04
	 	 Priority of Payments
	  	 	25	  
	 Section 4.05
	 	 Withdrawals from the Future Spread Reserve Account
	  	 	26	  
	 Section 4.06
	 	 Payment to Seller of Base Servicing Fee
	  	 	27	  
	 Section 4.07
	 	 Correction of Principal Balance Error
	  	 	27	  
	 Section 4.08
	 	 Intent and Characterization
	  	 	27	  
		
	 ARTICLE V REPRESENTATIONS AND WARRANTIES OF SELLER
	  	 	28	  
	 Section 5.01
	 	 Due Incorporation and Good Standing
	  	 	28	  
	 Section 5.02
	 	 Authority and Capacity
	  	 	28	  
	 Section 5.03
	 	 Owner Consents
	  	 	28	  
	 Section 5.04
	 	 Title to the Mortgage Servicing Rights
	  	 	28	  
	 Section 5.05
	 	 Effective Agreements
	  	 	29	  
	 Section 5.06
	 	 No Accrued Liabilities
	  	 	29	  
	 Section 5.07
	 	 Seller/Servicer Standing
	  	 	29	  
	 Section 5.08
	 	 MERS Membership
	  	 	29	  
	 Section 5.09
	 	 Owner Set-off Rights
	  	 	29	  
	 Section 5.10
	 	 Ability to Perform; Solvency
	  	 	30	  
	 Section 5.11
	 	 Obligations with Respect to Origination
	  	 	30	  
	 Section 5.12
	 	 Purchase of Mortgage Servicing Rights
	  	 	30	  
	 Section 5.13
	 	 No Actions
	  	 	30	  

  
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	 ARTICLE VI REPRESENTATIONS AND WARRANTIES AS TO MORTGAGE LOANS AND SERVICING
	  	 	30	  
	 Section 6.01
	 	 Servicing Agreements; Applicable Laws
	  	 	30	  
	 Section 6.02
	 	 Related Escrow Accounts
	  	 	30	  
	 Section 6.03
	 	 No Purchaser Responsibility
	  	 	31	  
	 Section 6.04
	 	 Location of Credit Files
	  	 	31	  
	 Section 6.05
	 	 Representations Concerning the Future Excess Servicing Spread
	  	 	31	  
		
	 ARTICLE VII REPRESENTATIONS AND WARRANTIES OF PURCHASER
	  	 	32	  
	 Section 7.01
	 	 Due Incorporation and Good Standing
	  	 	32	  
	 Section 7.02
	 	 Authority and Capacity
	  	 	32	  
	 Section 7.03
	 	 Effective Agreements
	  	 	32	  
	 Section 7.04
	 	 Sophisticated Investor
	  	 	33	  
	 Section 7.05
	 	 No Actions
	  	 	33	  
		
	 ARTICLE VIII SELLER COVENANTS
	  	 	33	  
	 Section 8.01
	 	 Servicing Obligations
	  	 	33	  
	 Section 8.02
	 	 Cooperation
	  	 	33	  
	 Section 8.03
	 	 Financing Statements
	  	 	34	  
	 Section 8.04
	 	 Supplemental Information
	  	 	34	  
	 Section 8.05
	 	 Access to Information
	  	 	34	  
	 Section 8.06
	 	 Home Affordable Modification Program
	  	 	34	  
	 Section 8.07
	 	 Distribution Date Data Tapes and Reports
	  	 	35	  
	 Section 8.08
	 	 Financial Statements and Officer’s Certificates
	  	 	36	  
	 Section 8.09
	 	 Monthly Management Calls
	  	 	37	  
	 Section 8.10
	 	 Timely Payment of Owner Obligations
	  	 	37	  
	 Section 8.11
	 	 Servicing Agreements
	  	 	37	  
	 Section 8.12
	 	 Transfer of Mortgage Servicing Rights
	  	 	37	  
	 Section 8.13
	 	 Consents to Transaction Documents
	  	 	38	  
	 Section 8.14
	 	 Accounts
	  	 	38	  
	 Section 8.15
	 	 Notification of Certain Events
	  	 	38	  
	 Section 8.16
	 	 Financing; Pledge of Future Excess Servicing Spread
	  	 	38	  
	 Section 8.17
	 	 Existence, etc
	  	 	38	  
	 Section 8.18
	 	 Consent to Sub-Servicing
	  	 	39	  
	 Section 8.19
	 	 Nonpetition Covenant
	  	 	40	  
	 Section 8.20
	 	 Schedule of Mortgage Loans
	  	 	40	  
	 Section 8.21
	 	 True Sale Opinion
	  	 	40	  
	 Section 8.22
	 	 Valuation
	  	 	40	  
	 Section 8.23
	 	 Material Documents
	  	 	40	  

  
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	 ARTICLE IX CONDITIONS PRECEDENT TO OBLIGATIONS OF PURCHASER
	  	 	40	  
	 Section 9.01
	 	 Correctness of Representations and Warranties
	  	 	40	  
	 Section 9.02
	 	 Compliance with Conditions
	  	 	41	  
	 Section 9.03
	 	 Corporate Resolution
	  	 	41	  
	 Section 9.04
	 	 No Material Adverse Change
	  	 	41	  
	 Section 9.05
	 	 Consents
	  	 	41	  
	 Section 9.06
	 	 Delivery of Transaction Documents
	  	 	41	  
	 Section 9.07
	 	 Certificate of Seller
	  	 	41	  
	 Section 9.08
	 	 Opinions of Counsel
	  	 	42	  
	 Section 9.09
	 	 Good Standing Certificate of Seller
	  	 	42	  
		
	 ARTICLE X CONDITIONS PRECEDENT TO OBLIGATIONS OF SELLER
	  	 	42	  
	 Section 10.01
	 	 Correctness of Representations and Warranties
	  	 	42	  
	 Section 10.02
	 	 Compliance with Conditions
	  	 	42	  
	 Section 10.03
	 	 Corporate Resolution
	  	 	42	  
	 Section 10.04
	 	 No Material Adverse Change
	  	 	42	  
	 Section 10.05
	 	 Certificate of Purchaser
	  	 	42	  
	 Section 10.06
	 	 Good Standing Certificate of Purchaser
	  	 	43	  
		
	 ARTICLE XI INDEMNIFICATION
	  	 	43	  
	 Section 11.01
	 	 Indemnification by Seller
	  	 	43	  
	 Section 11.02
	 	 Indemnification by Purchaser
	  	 	45	  
		
	 ARTICLE XII MISCELLANEOUS
	  	 	46	  
	 Section 12.01
	 	 Costs and Expenses
	  	 	46	  
	 Section 12.02
	 	 Confidentiality
	  	 	46	  
	 Section 12.03
	 	 Broker’s Fees
	  	 	47	  
	 Section 12.04
	 	 Relationship of Parties
	  	 	47	  
	 Section 12.05
	 	 Survival of Representations and Warranties
	  	 	47	  
	 Section 12.06
	 	 Notices
	  	 	47	  
	 Section 12.07
	 	 Waivers
	  	 	48	  
	 Section 12.08
	 	 Entire Agreement; Amendment
	  	 	48	  
	 Section 12.09
	 	 Binding Effect
	  	 	48	  
	 Section 12.10
	 	 Headings
	  	 	48	  
	 Section 12.11
	 	 Applicable Law
	  	 	48	  
	 Section 12.12
	 	 Incorporation of Exhibits
	  	 	49	  
	 Section 12.13
	 	 Counterparts
	  	 	49	  
	 Section 12.14
	 	 Severability of Provisions
	  	 	49	  
	 Section 12.15
	 	 Assignment
	  	 	49	  
	 Section 12.16
	 	 Termination
	  	 	49	  
	 Section 12.17
	 	 Third Party Beneficiaries
	  	 	50	  

  
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 EXHIBITS 
  

					
	Exhibit A	 	–	  	Form of Assignment Agreement
	Exhibit B	 	–	  	Example of Calculations of Maximum Retained Refinancing Loan Amounts
	Annex A	 		  	
	Exhibit C	 	–	  	Schedule of Mortgage Loans
	Exhibit D	 	–	  	Seller’s Officer’s Certificate
	Exhibit E	 	–	  	Purchaser’s Officer’s Certificate
	Exhibit F	 	–	  	Location of Credit Files
	Exhibit G	 	–	  	Form of Summary Remittance Report
	Exhibit H	 	–	  	Form of Delinquency Report
	Exhibit I	 	–	  	Form of Disbursement Report
	Exhibit J	 	–	  	Seller Jurisdictions and Recording Offices

  
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 FUTURE SPREAD AGREEMENT FOR NON-AGENCY MORTGAGE LOANS 

This FUTURE SPREAD AGREEMENT FOR NON-AGENCY MORTGAGE LOANS (as amended, restated, or otherwise modified and in effect from time to time,
this “Agreement”), dated as of March 6, 2012 (the “Agreement Date”), is by and between NIC MSR II LLC, a Delaware limited liability company (together with its successors and assigns, the
“Purchaser”), and Nationstar Mortgage LLC, a Delaware limited liability company (together with its successors and assigns, the “Seller”) (the Purchaser and the Seller will collectively be referred to as the
“Parties” and each, a “Party”). 
 W I T N E S S E T H: 

WHEREAS, Seller and Purchaser have entered into the Current Excess Servicing Spread Acquisition Agreement for NON-AGENCY Mortgage
Loans, dated as of the date hereof (as amended, restated, or otherwise modified and in effect, the “Current Spread Agreement”), pursuant to which Purchaser will purchase and assume all right, title and interest in the excess
servicing spread with respect to a pool of residential mortgage loans to be serviced by Seller; 
 WHEREAS, Seller
desires to retain the right to refinance the residential mortgage loans in the pool, and Purchaser is willing to grant such right, as long as the excess servicing spread with respect to the newly-originated residential mortgage loans and replacement
residential mortgage loans is assigned to the Purchaser as described herein; and 
 WHEREAS, Purchaser and Seller desire
to set forth the terms and conditions pursuant to which residential mortgage loans in the pool may be refinanced. 
 NOW,
THEREFORE, in consideration of the mutual promises, covenants and conditions and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and upon the terms and subject to the conditions set forth
herein, the Parties hereto agree as follows: 
 ARTICLE I 

DEFINITIONS; GENERAL INTERPRETIVE PRINCIPLES 
 Section 1.01 Definitions. 
 Whenever used herein, the following words and
phrases, unless the context otherwise requires, shall have the following meanings: 
 Accepted Servicing Practices: With
respect to any Mortgage Loan, those accepted and prudent mortgage servicing practices (including collection procedures) which are in accordance with the servicing practices and procedures as set forth in the applicable Servicing Agreements, and in a
manner at least equal in quality to the servicing that Seller provides to mortgage loans which it owns in its own portfolio. 

  
 6 

 Agency: The entity formerly known as the Federal Home Loan Mortgage Corporation, or
any successor thereto, the Federal National Mortgage Association, or any successor thereto, the Government National Mortgage Association, or any successor thereto. 
 Agreement: As defined in the preamble hereof. 
 Agreement Date: As
defined in the preamble hereof. 
 Ancillary Income: All incidental servicing fees (such as late fees, assignment
transfer fees, returned check fees, special services fees, amortization schedule fees, HAMP, modification and incentive income, etc.) that are supplemental to the servicing spread payable to the servicer pursuant to the Servicing Agreements.

 Applicable Law: With reference to any Person, all laws (including common law), statutes, regulations, ordinances,
treaties, judgments, decrees, injunctions, writs and orders of any court, governmental agency or authority and rules, regulations, orders, directives, licenses and permits of any Governmental Authority applicable to such Person or its property or in
respect of its operations. 
 Assignment Agreement: An assignment agreement substantially in the form of Exhibit A
to this Agreement or in such other form as mutually agreed upon by the Parties. 
 Assignment Date: With respect to a
Refinanced Mortgage Loan and its related Mortgage Loan, the Distribution Date in the third calendar month following the Refinanced Mortgage Loan’s Refinancing Date. 
 Available Portfolio: As defined in Section 3.04(a) hereof. 

Bank: Wells Fargo Bank, National Association, or another financial institution mutually agreed upon by the Parties or any
successor thereto, each in its capacity as “Bank” under the Future Spread Custodial Account Control Agreement or the Future Spread Reserve Account Control Agreement, as applicable, or any third party custodian or trustee in similar
capacity under any replacement account control agreements. 
 Base Servicing Fee: With respect to a Collection Period, an
amount equal to the product of (A) the aggregate outstanding principal balance of the Mortgage Loans as of the related Measurement Date, (B) the Base Servicing Fee Rate and (C) (i) in the case of the initial Collection Period, a
fraction, the numerator of which is the number of days in the period from and including the Closing Date to and including the last day of the initial Collection Period, and the denominator of which is 360, and (ii) in the case of all other
Collection Periods, 1/12; provided that the Base Servicing Fee with respect to any Mortgage Loan whose Servicing Agreement is terminated during a Collection Period shall be pro-rated to the actual number of days within such Collection Period
in which such Mortgage Loan was serviced by Seller. 
 Base Servicing Fee Rate: 0.06% per annum. 

  
 7 

 Business Day: Any day other than (a) a Saturday or Sunday, (b) a day on
which banking institutions in the States of Texas or New York are authorized or obligated by law or by executive order to be closed or (c) such other days as agreed upon by the Parties. 

Carryover Retained Amount: As defined in Section 3.03 hereof. 

Closing Date: The Business Day in which the purchase by Seller of the Mortgage Servicing Rights under the Residential Servicing
Business Asset Purchase Agreement has been consummated and all conditions precedent to the execution and delivery of this Agreement have been satisfied or waived. 
 Code: The Internal Revenue Code of 1986, as amended from time to time. 

Collateral: As defined in Section 2.02 hereof. 

Collection Period: With respect to any Distribution Date, the calendar month preceding the month in which such Distribution Date
occurs. 
 Consolidated Tangible Net Worth: (i) The net worth of Seller and its consolidated subsidiaries, on a
combined basis, determined in accordance with GAAP, minus (ii) all intangibles determined in accordance with GAAP (including goodwill, capitalized financing costs and capitalized administration costs but excluding originated and
purchased mortgage servicing rights or retained residual securities) and any and all advances to, investments in and receivables held from affiliates; provided, however, that the non-cash effect (gain or loss) of any mark-to-market
adjustments made directly to stockholders’ equity for fluctuation of the value of financial instruments as mandated under the Statement of Financial Accounting Standards No. 133 (or any successor statement) shall be excluded from the
calculation of Consolidated Tangible Net Worth. 
 Control: The meaning specified in Section 8-106 of the UCC.

 Credit File: Those documents, which may be originals, copies or electronically imaged, pertaining to each Mortgage
Loan, held by or on behalf of Seller in connection with the servicing of the Mortgage Loan, which may include Mortgage Loan Documents and the credit documentation relating to the origination of such Mortgage Loan, and any documents gathered during
the servicing of a Mortgage Loan. 
 Current Mortgage Loan: A residential mortgage loan that is a “Mortgage
Loan” under the Current Spread Agreement. 
 Current Spread Agreement: As defined in the recitals to this Agreement.

 Custodian: A custodian of Credit Files or any part thereof. 

Distribution Date: The 10th day of each calendar month, or if such day is not a Business Day, the prior Business Day, beginning in
the month following the first Assignment Date, or such other day as mutually agreed upon by Seller and Purchaser. 

  
 8 

 Electronic Data File: A computer tape or other electronic medium generated by or on
behalf of Seller and delivered or transmitted to or on behalf of Purchaser which provides information relating to the Mortgage Loans. 
 Eligible Servicing Agreement: A Servicing Agreement in respect of which the following eligibility requirements have been satisfied: 

(a) such Servicing Agreement is in full force and effect, and is in all respects genuine as appearing on its face or as represented in
the books and records of Seller, and no event of default, early amortization event, termination event, or other event giving any party thereto (including with notice or lapse of time or both) the right to terminate Seller as servicer thereunder for
cause has occurred and is continuing; and 
 (b) Seller has not resigned or been terminated as servicer under such Servicing
Agreement and has no actual knowledge of any pending or threatened action to terminate Seller, as servicer (whether for cause or without cause). 
 Entitlement Holder: The meaning specified in Section 8-102(a)(7) of the UCC. 
 Excess Refinancing Percentage: As defined in Section 3.03 hereof. 
 Expense Amount: As defined in Section 11.01(b) hereof. 

Expense Amount Accountant’s Letter: As defined in Section 11.01(b) hereof. 

Expense Amount Tax Opinion: As defined in Section 11.01(b) hereof. 

Expense Escrow Account: As defined in Section 11.01(b) hereof. 

FHLMC Acknowledgment Agreement: The acknowledgment agreement by and among the entity formerly known as the Federal Home Loan
Mortgage Corporation, or any successor thereto, Seller and Purchaser, in form and substance reasonably acceptable to Purchaser, dated on or before the Closing Date, pursuant to which the entity formerly known as the Federal Home Loan Mortgage
Corporation, or any successor thereto, consents to the sale of the excess servicing spread and other arrangements specified therein. 
 FNMA Acknowledgment Agreement: The acknowledgment agreement by and among the Federal National Mortgage Association, or any successor thereto, Seller and Purchaser, in form and substance reasonably
acceptable to Purchaser, dated on or before the Closing Date, pursuant to which the Federal National Mortgage Association, or any successor thereto, consents to the sale of the excess servicing spread and other arrangements specified therein.

 Future Excess Servicing Spread: The rights of Seller, severable from each (and all) of the other rights under the
applicable Servicing Agreements, to a percentage of the Total Servicing Spread, which percentage is equal to the Future Excess Servicing Spread Percentage. 
 Future Excess Servicing Spread Assignment Obligation: As defined in Section 3.01 hereof. 

  
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 Future Excess Servicing Spread Percentage: A percentage equal to the Current Excess
Servicing Spread Percentage in the Current Spread Agreement. 
 Future Excess Servicing Spread Rights: As defined in
Section 3.01 hereof. 
 Future Spread Custodial Account Agreement: The applicable deposit account agreement
and other related account documentation governing the Third Party Controlled Future Spread Custodial Account. 
 Future
Spread Custodial Account Control Agreement: The account control agreement among Seller, Purchaser and Wells Fargo Bank, National Association, or any successor thereto, or any other institution agreed upon by the Parties, as Bank, dated as of the
Closing Date, entered into with respect to the Third Party Controlled Future Spread Custodial Account, as amended, restated, supplemented or otherwise modified from time to time. 

Future Spread Reserve Account: The account specified in the Future Spread Reserve Account Control Agreement and maintained by
Wells Fargo Bank, National Association, or any successor thereto, or another third party custodian or trustee selected by Purchaser. 
 Future Spread Reserve Account Agreement: The applicable deposit account agreement and other related account documentation governing the Future Spread Reserve Account. 

Future Spread Reserve Account Control Agreement: The account control agreement among Seller, Purchaser and Wells Fargo Bank,
National Association, or any successor thereto, or any other institution agreed upon by the Parties, as Bank, dated as of the Closing Date, entered into with respect to the Future Spread Reserve Account, as amended, restated, supplemented or
otherwise modified from time to time. 
 Future Spread Reserve Account Deposit Event: As defined in
Section 4.03(c) hereof. 
 Future Spread Reserve Account Required Amount: As defined in
Section 4.03(c) hereof. 
 GAAP: Generally accepted accounting principles in the United States of America as
in effect from time to time set forth in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and the statements and pronouncements of the Financial Accounting Standards Board,
or in such other statements by such other entity as may be in general use by significant segments of the accounting profession, that are applicable to the circumstances as of the date of determination. 

Governmental Authority: With respect to any Person, any nation or government, any state or other political subdivision, agency or
instrumentality thereof, any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government and any court or arbitrator having jurisdiction over such Person, any of its subsidiaries or any
of its properties. 
 Grant: To grant, bargain, sell, warrant, alienate, remise, demise, release, convey, assign,
transfer, mortgage, pledge, create and grant a security interest in and right of setoff against, deposit, set over or confirm. 

  
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 HAMP: As defined in Section 8.06 hereof. 

HAMP Loans: As defined in Section 8.06 hereof. 

Indemnity Loan: As defined in Section 11.01(b) hereof. 

Indemnity Loan Agreement: As defined in Section 11.01(b) hereof. 

IRS: The United States Internal Revenue Service. 
 Lien: Any mortgage, deed of trust, pledge, hypothecation, collateral assignment, charge, deposit, arrangement, encumbrance, lien (statutory or other), security interest or preference, priority or
other security agreement or preferential arrangement of any kind or nature whatsoever intended to assure payment of any indebtedness or the performance of any other obligation, including any conditional sale or other title retention agreement.

 Lockbox Account: An account maintained by Wells Fargo Bank, National Association or another third party custodian or
trustee selected by Purchaser for the purpose of receiving Servicing Spread Collections. 
 Loss or Losses: Any
and all direct, actual and out-of-pocket losses, damages, deficiencies, claims, costs or expenses, including reasonable attorneys’ fees and disbursements, excluding (i) any amounts attributable to or arising from overhead allocations,
general or administrative costs and expenses, or any cost for the time of any Party’s employees, (ii) consequential losses or damages consisting of speculative lost profits, lost investment or business opportunity, damage to reputation or
operating losses, or (iii) punitive or treble damages; provided, however, that the exclusions set forth in clauses (ii) and (iii) above do not apply if and to the extent any such amounts are actually incurred in payment
to a third party or government entity. 
 Maximum Retained Refinancing Loan Amount: As defined in
Section 3.03 hereof. 
 Measurement Date: With respect to any Collection Period, the first day of such
Collection Period. 
 MERS: Mortgage Electronic Registration Systems, Inc., or any successor thereto. 

MI: Insurance provided by private mortgage insurance companies to make payments on certain Mortgage Loans in the event that
the related Mortgagor defaults in its obligation in respect of the Mortgage. 
 Mortgage: Each of those mortgages,
deeds of trust, security deeds or deeds to secure debt creating a first lien on or an interest in real property securing a Mortgage Note and related to a Mortgage Loan. 
 Mortgage Loan: A residential mortgage loan that satisfies the conditions set forth in Section 3.02 and whose Future Excess Servicing Spread is assigned to Purchaser hereunder in
satisfaction of Seller’s Future Excess Servicing Spread Assignment Obligation. 

  
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 Mortgage Loan Documents: With respect to each Mortgage Loan, the original Mortgage
Loan documents held by a Custodian, including the Mortgage Note, and if applicable, cooperative mortgage loan related documents and a power of attorney, a New York Consolidation, Extension and Modification Agreement, or other modification document,
or as otherwise set forth under the Servicing Agreements and any other documents required to properly service, through foreclosure, any Mortgaged Property. 
 Mortgage Loan Identification Date: With respect to a Refinanced Mortgage Loan and its related replacement Mortgage Loan, the 25th day of the second calendar month following the Refinanced Mortgage
Loan’s Refinancing Date. 
 Mortgage Note: With respect to any Mortgage Loan, the note or other evidence of
indebtedness of the Mortgagor, thereunder, including, if applicable, an allonge and lost note affidavit. 
 Mortgage
Servicing Rights: The rights and responsibilities of Seller with respect to servicing the Mortgage Loans under the Servicing Agreements, including any and all of the following if and to the extent provided therein: (a) all rights to service
a Mortgage Loan; (b) all rights to receive servicing fees, additional servicing compensation (including without limitation any late fees, change fees, assumption fees, penalties (other than prepayment penalties) or similar payments with respect
to such Mortgage Loan, and income on escrow accounts or other receipts on or with respect to the Mortgage Loan), reimbursements or indemnification for servicing the Mortgage Loan, and any payments received in respect of the foregoing and proceeds
thereof; (c) the right to collect, hold and disburse escrow payments or other payments with respect to the Mortgage Loan and any amounts actually collected with respect thereto and to receive interest income on such amounts to the extent
permitted by Applicable Law; (d) all accounts and other rights to payment related to any of the property described in this paragraph; (e) possession and use of any and all Credit Files pertaining to the Mortgage Loan or pertaining to the
past, present or prospective servicing of the Mortgage Loan; (f) to the extent applicable, all rights and benefits relating to the direct solicitation of the related Mortgagors for refinance or modification of the Mortgage Loans and attendant
right, title and interest in and to the list of such Mortgagors and data relating to their respective Mortgage Loans; and (g) all rights, powers and privileges incident to any of the foregoing. 

Mortgaged Property: The Mortgagor’s real property, securing repayment of a related Mortgage Note, consisting of an interest
in a single parcel of real property, improved by a residential dwelling. 
 Mortgagor: An obligor under a residential
mortgage loan. 
 New Mortgage Loan: As defined in Section 3.02(a)(i)(1) hereof. 

Nonqualifying Income: Any amount that is treated as gross income for purposes of Section 856 of the Code and which is not
Qualifying Income. 
 Objection Notice: As defined in Section 4.03(c) hereof. 

  
 12 

 Opinion of Counsel: One or more written opinions, in form and substance reasonably
satisfactory to the recipient, of an attorney at law admitted to practice in any state of the United States or the District of Columbia, which attorney may be counsel for Seller or Purchaser, as the case may be. 

Owner: With respect to a Mortgage Loan, the owner thereof. 

Owner Consent: All agreements, including the FHLMC Acknowledgment Agreement and the FNMA Acknowledgment Agreement, if applicable,
pursuant to which an Owner approves or consents to the sale of the Future Excess Servicing Spread from Seller to Purchaser. 

Party or Parties: As defined in the preamble hereof. 

Permitted Liens: Liens in favor of an Agency required pursuant to the applicable Servicing Agreements. 

Person: Any individual, partnership, corporation, limited liability company, limited liability partnership, business entity, joint
stock company, trust, business trust, unincorporated organization, association, enterprise, joint venture, government, any department or agency of any government or any other entity of whatever nature. 

Pledge Agreement: A collateral pledge agreement, to be entered into on or before the Closing Date, between Seller and an Agency,
pursuant to which Seller pledges collateral to such Agency to secure its obligations to the Agency under the Servicing Agreement, the FHLMC Acknowledgment Agreement or FNMA Acknowledgment Agreement, if applicable, and other agreements, if required
by the Agency. 
 Priority of Payments: As defined in Section 4.04 hereof. 

Protected REIT: Any entity that (i) has elected to be taxed as a real estate investment trust pursuant to Section 856 et
seq. of the Code, (ii) owns a direct or indirect equity interest in Purchaser, and (iii) is treated for purposes of Section 856 of the Code as owning all or a portion of the assets of the Purchaser or as receiving all or a portion of
the Purchaser’s income. 
 Purchase Price: As defined in Section 4.01 hereof. 

Purchaser: As defined in the preamble hereof. 
 Purchaser Indemnitees: As defined in Section 11.01 hereof. 

Qualifying Income: Gross income that is described in Section 856(c)(2) or 856(c)(3) of the Code. 

Quarterly Collection Period: As defined in Section 3.03 hereof. 

Refinanced Mortgage Loan: A Current Mortgage Loan or a Mortgage Loan that has been refinanced in whole or in part by Seller or an
affiliate thereof. 

  
 13 

 Refinancing Date: The date on which a Current Mortgage Loan or Mortgage Loan is
refinanced by Seller or an affiliate thereof. 
 Refinancing Split Percentage: As defined in Section 3.03
hereof. 
 REIT Qualification Ruling: As defined in Section 11.01(b) hereof. 

REIT Requirements: The requirements imposed on REITs pursuant to Sections 856 through and including 860 of the Code. 

Related Collection Period: With respect to an Assignment Date, the Collection Period in the third calendar month prior to such
Assignment Date, and with respect to a Mortgage Loan Identification Date, the second calendar month prior to such Mortgage Loan Identification Date. 
 Related Escrow Accounts: Mortgage Loan escrow/impound accounts maintained by Seller relating to the Mortgage Servicing Rights, including accounts for buydown funds, real estate taxes and MI, flood
and hazard insurance premiums. 
 Release Document: As defined in Section 11.01(b) hereof. 

Remaining Expected Total Servicing Spread: As defined in Section 4.03(c) hereof. 

Replacement Portfolio: As defined in Section 3.04(a) hereof. 

Replacement Shortfall: As defined in Section 3.03 hereof. 

Requirement of Law: As to any Person, the certificate of incorporation and by-laws or other organizational or governing documents
of such Person, 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. 
 Residential Servicing Business Asset Purchase Agreement: The Residential Servicing Business Asset
Purchase Agreement, dated as of the date hereof, by and between Nationstar Mortgage LLC, as purchaser, and Aurora Bank FSB and Aurora Loan Services LLC, as sellers, as the same may be amended, supplemented or otherwise modified from time to time.

 Retained Portfolio: As defined in Section 3.04(a) hereof. 

Retained Servicing Spread: The rights of Seller, severable from each (and all) of the other rights under the applicable Servicing
Agreements, to a percentage of the Total Servicing Spread, which percentage is equal to 100% minus the Future Excess Servicing Spread Percentage. 
 Sales Proceeds: The proceeds received upon a sale (approved by the Parties) of the Total Servicing Spread, in whole or in part, including through a sale of Mortgage Servicing Rights in accordance
with Section 8.12. 

  
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 Schedule of Mortgage Loans: The list of Mortgage Loans whose Future Excess Servicing
Spread has been assigned to Purchaser pursuant to this Agreement and maintained as Exhibit C hereto. 
 Selection
Period: As defined in Section 3.04(b) hereof. 
 Seller: As defined in the preamble hereof. 

Seller Indemnitees: As defined in Section 11.02 hereof. 

Servicing: The responsibilities, with respect to servicing the Mortgage Loans, under the Servicing Agreements. 

Servicing Agreements: The servicing agreements, as amended from time to time, and any waivers, consent letters, acknowledgments
and other agreements under which Seller is the servicer of the Mortgage Loans relating to the Mortgage Servicing Rights and governing the servicing of the Mortgage Loans, or with respect to Mortgage Loans owned by the Seller, the credit and
collection standards, policies, procedures and practices of Seller relating to residential mortgage loans owned and serviced by Seller. 
 Servicing Spread Collections: For each Collection Period, the funds collected on the Mortgage Loans and allocated as the servicing compensation payable to Seller as servicer of the Mortgage Loans
with respect to such Collection Period pursuant to the applicable Servicing Agreements, other than Ancillary Income and, for the avoidance of doubt, other than reimbursements received for advances and other out-of-pocket expenditures from an Owner
by Seller in accordance with the Servicing Agreements. 
 Solvent: With respect to any Person as of any date of
determination, (a) the value of the assets of such Person is greater than the total amount of liabilities (including contingent and unliquidated liabilities) of such Person as determined in accordance with GAAP, (b) such Person is able to
pay all liabilities of such Person as such liabilities mature and (c) such Person does not have unreasonably small capital. In computing the amount of contingent or unliquidated liabilities at any time, such liabilities will be computed at the
amount that, in light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability. 
 Third Party Assignee: As defined in Section 12.15 hereof. 

Third Party Assignment: As defined in Section 12.15 hereof. 

Third Party Future Spread Agreement: As defined in Section 12.15 hereof. 

Third Party Claim: As defined in Section 11.01 and Section 11.02, as applicable. 

Third Party Controlled Future Spread Custodial Account: The account specified in the Future Spread Custodial Account Control
Agreement and maintained by Wells Fargo Bank, National Association, or any successor thereto, or another third party custodian or trustee selected by Purchaser, into which all Servicing Spread Collections, all Sales Proceeds and all Servicing
Agreement termination payments in respect of the Mortgage Loans shall be deposited. 

  
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 Total Servicing Spread: For each Collection Period on and after the Closing Date,
the sum of the following: (a) the Servicing Spread Collections received during such Collection Period and remaining after payment of the Base Servicing Fee; (b) all other amounts payable by an Owner to Seller with respect to the Mortgage
Servicing Rights for Mortgage Loans, including any termination fees paid by an Owner to Seller for terminating Seller as the servicer of any of the Mortgage Loans, but for the avoidance of doubt, excluding all Ancillary Income and reimbursements
received for advances and other out-of-pocket expenditures from an Owner by Seller in accordance with the Servicing Agreements and (c) all Sales Proceeds received during such Collection Period. 

Transaction Documents: The Future Spread Custodial Account Agreement, the Future Spread Custodial Account Control Agreement, the
Future Spread Reserve Account Agreement, the Future Spread Reserve Account Control Agreement, the Current Spread Agreement and this Agreement. 
 UCC: The Uniform Commercial Code as in effect from time to time in the applicable jurisdiction. 
 Section 1.02 General Interpretive Principles. 
 For purposes of this
Agreement, except as otherwise expressly provided or unless the context otherwise requires: 
 (a) The terms defined in this
Agreement have the meanings assigned to them in this Agreement and include the plural as well as the singular, and the use of any gender herein shall be deemed to include the other gender; 

(b) Accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting
principles; 
 (c) References herein to “Articles,” “Sections,” “Subsections,”
“Paragraphs,” and other subdivisions without reference to a document are to designated Articles, Sections, Subsections, Paragraphs and other subdivisions of this Agreement; 

(d) A reference to a Subsection without further reference to a Section is a reference to such Subsection as contained in the same
Section in which the reference appears, and this rule shall also apply to Paragraphs and other subdivisions; 
 (e) The words
“herein,” “hereof,” “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular provision; and 
 (f) The term “include” or “including” shall mean without limitation by reason of enumeration. 

  
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 ARTICLE II 
 ITEMS TO BE DELIVERED 
 Section 2.01 Items to be
Delivered. 
 (a) On the Agreement Date, subject to the satisfaction of the terms and conditions herein, each of Seller
and Purchaser shall deliver or cause to be delivered duly executed copies of the following documents to which they are a party or for which they are otherwise responsible as set forth below: 

(i) This Agreement; 
 (ii) The Current Spread Agreement and all agreements, certificates, opinions and instruments required to be delivered under the Current Spread Agreement on the Agreement Date, if any; 

(b) On the Closing Date, subject to the satisfaction of the terms and conditions herein, each of Seller and Purchaser shall deliver or
cause to be delivered duly executed copies of the following documents to which they are a party or for which they are otherwise responsible as set forth below: 
 (i) The executed Future Spread Custodial Account Agreement; 
 (ii)
The executed Future Spread Custodial Account Control Agreement; 
 (iii) The executed Future Spread Reserve
Account Agreement; 
 (iv) The executed Future Spread Reserve Account Control Agreement; 

(v) An Opinion of Counsel of Seller, reasonably acceptable to Purchaser regarding due authorization, authority, and
enforceability of the applicable Transaction Documents to which Seller is a party, and regarding no conflicts with other material Seller agreements; 
 (vi) An Opinion of Counsel of Seller, reasonably acceptable to Purchaser, regarding the characterization of the transfer of the Future Excess Servicing Spread from Seller to Purchaser as a true sale for
bankruptcy purposes; 
 (vii) An Opinion of Counsel of Seller, reasonably acceptable to Purchaser, regarding the
perfection of the security interests granted hereunder; 
 (viii) The duly executed corporate certificate of
Seller required by Section 9.07; 

  
 17 

 (ix) A certificate of good standing of Seller dated as of a date within
five (5) Business Days prior to the Closing Date to be delivered by Seller; 
 (x) A secretary’s
certificate of Seller attaching its organizational documents, board resolutions and incumbency certificates; 

(xi) The duly executed corporate certificate of Purchaser required by Section 10.05; 

(xii) A certificate of good standing of Purchaser dated as of a date within five (5) Business Days prior to the
Closing Date to be delivered by Purchaser; 
 (xiii) A draft form of a UCC-1 financing statement relating to the
sale of the Future Excess Servicing Spread and relating to the security interest of Purchaser in the Third Party Controlled Future Spread Custodial Account and the Future Spread Reserve Account, in form and substance reasonably acceptable to
Purchaser; and 
 (xiv) All agreements, certificates, opinions and instruments required to be delivered under
the Current Spread Agreement on the Closing Date. 
 (c) Seller shall provide Purchaser with executed copies of each Owner
Consents, and any amendments thereto, promptly after receipt thereof. 
 Section 2.02 Grant of Security Interest.

 In order to secure Seller’s obligations to deliver the Future Excess Servicing Spread and its obligations hereunder,
Seller hereby Grants to Purchaser a valid and continuing first priority and perfected Lien on and security interest in all of Seller’s right, title and interest in, to and under, the Third Party Controlled Future Spread Custodial Account and
the Future Spread Reserve Account, together with all amounts deposited therein from time to time and all cash and non-cash proceeds thereof, in each case, whether now owned or existing, or hereafter acquired and arising (the
“Collateral”). 
 ARTICLE III 
 REPLACEMENT OF MORTGAGE LOANS 
 Section 3.01 Refinancing and
Substitution of Mortgage Loans. 
 Subject to, and upon the terms and conditions of this Agreement, and, more
particularly, the conditions of this ARTICLE III, if Seller or any of its affiliates refinances any Current Mortgage Loan or Mortgage Loan, it shall designate a residential mortgage loan as a replacement Mortgage Loan pursuant to this
ARTICLE III and assign the Future Excess Servicing Spread with respect to such replacement Mortgage Loan on the applicable Assignment Date to Purchaser as provided in this Agreement (such obligations of Seller, the “Future Excess
Servicing Spread Assignment Obligation“), and the rights of Purchaser to such Future Excess Servicing Spread, the “Future Excess Servicing Spread Rights”). 

  
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 Section 3.02 Criteria for Mortgage Loans. 

(a) As of the applicable Assignment Date, unless otherwise agreed upon by Seller and Purchaser, either: 

(i) The Mortgage Loan shall satisfy the following criteria: 

(1) The proceeds of such Mortgage Loan (the “New Mortgage Loan”) were use to repay the Refinanced
Mortgage Loan in whole or in part; 
 (2) All consents, if any, required by the applicable Owner to assign the
related Future Excess Servicing Spread with respect to the New Mortgage Loan shall have been obtained; 
 (3)
The servicing fee rate for the New Mortgage Loan is not less than 0.25% per annum; and 
 (4) The New
Mortgage Loan is secured by the same property as the Refinanced Mortgage Loan; or 
 (ii) if Seller is unable to
satisfy the conditions in Section 3.02(a)(i) after using commercially reasonable efforts, Seller shall use its best efforts to substitute the New Mortgage Loan with a Mortgage Loan satisfying the following criteria: 

(1) The servicing fee rate for the Mortgage Loan is equal to or greater than the servicing fee rate of the New Mortgage
Loan and, in any event, not less than 0.25% per annum; 
 (2) The interest accrual rate per annum on the
Mortgage Loan is within 12.5 basis points per annum of the interest accrual rate on the New Mortgage Loan; 

(3) The final maturity date of the Mortgage Loan is within six months of the final maturity date of the New Mortgage
Loan; 
 (4) The principal balance of the Mortgage Loan is no less than the principal balance of the Refinanced
Mortgage Loan; 
 (5) The remaining credit characteristics of the Mortgage Loan (other than as specified in
clauses (1), (2), (3) and (4) above) are substantially the same as the credit characteristics of the New Mortgage Loan; 
 (6) The Mortgage Loan is current as of the applicable Assignment Date; and 

  
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 (7) The Mortgage Loan is not subject to any foreclosure or similar
proceeding as of the applicable Assignment Date; is not in process of any modification, workout or other loss mitigation process; and is not involved in litigation. 
 (b) If a New Mortgage Loan would otherwise meet the criteria set forth in Section 3.02(a)(i) and is still owned by Seller as of the Mortgage Loan Identification Date, in lieu of a substitution
pursuant to Section 3.02(a)(ii) above, the Seller may include such New Mortgage Loan as a Mortgage Loan in the Available Portfolio; provided (i) the servicing fee rate for such Mortgage Loan shall be deemed to be 0.30% per
annum and (ii) if at any time such Mortgage Loan fails to otherwise meet the criteria set forth in Section 3.02(a)(i) (i.e. the Mortgage Loan is sold to an Agency), the Seller shall be required to substitute a loan for such New
Mortgage Loan pursuant to Section 3.02(a)(ii) above. 
 (c) Notwithstanding the provisions of
Section 3.02(a)(ii)(4), Seller shall not be in breach of Section 3.01 on any Assignment Date if, after using best efforts to select residential mortgage loans to substitute New Mortgage Loans pursuant to
Section 3.02(a)(ii), the aggregate outstanding principal balance of the residential mortgage loans in the Available Portfolio as of such Assignment Date is equal to or greater than 90% of the aggregate outstanding principal balance of
the New Mortgage Loans during the Related Collection Period as measured on the opening of business on their respective Refinancing Date. 
 Section 3.03 Refinancing Incentives. 
 For any Assignment Date
beginning with the Assignment Date in the sixth calendar month after the Closing Date, Seller shall not be required to designate residential mortgage loans as replacement Mortgage Loans pursuant to Section 3.01 in an aggregate principal
amount up to the Maximum Retained Refinancing Loan Amount. For purposes of this Section 3.03, the following definitions shall apply: 
 Replacement Shortfall: With respect to any Assignment Date and the Related Collection Period, the aggregate outstanding principal balance of the New Mortgage Loans that were originated by Seller or
an affiliate thereof during the Related Collection Period as measured on the opening of business on their respective Refinancing Date, minus the aggregate outstanding principal balance of the residential mortgage loans in the Available
Portfolio as of such Assignment Date. 
 Excess Refinancing Percentage: With respect to any Assignment Date, a percentage
equal to the excess, if any, of (a) a fraction, expressed as a percentage, the numerator of which is equal to the aggregate principal balance of New Mortgage Loans that were originated by Seller or an affiliate thereof over the Related
Collection Period and the two Collection Periods immediately prior to such Related Collection Period (the “Quarterly Collection Period”) as measured on the opening of business on their respective Refinancing Date, minus the
aggregate Replacement Shortfall over such Quarterly Collection Period, and the denominator of which is the aggregate principal balance of all voluntary prepayments received on the Mortgage Loans over the Quarterly Collection Period,
over (b) 35%. 

  
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 Refinancing Split Percentage: With respect to any Assignment Date, the Refinancing
Split Percentage shown in the column of the table below corresponding to the Excess Refinancing Percentage therein: 
  

					
	 Three Month Average Recapture
Percentage
	 	 Excess Refinancing

Percentage
	 	 Refinancing Split

Percentage

	 35% or Less
	 	0%	 	0%
	 > 35%, <= 40%
	 	>0.00% and <=5.00%	 	25%
	 > 40%, <= 45%
	 	>5.00% and <=10.00%	 	30%
	 > 45%, <= 50%
	 	>10.00% and <=15.00%	 	35%
	 > 50%, <= 55%
	 	>15.00% and <=20.00%	 	40%
	 > 55%, <= 60%
	 	>20.00% and <=25.00%	 	45%
	 Greater than 60%
	 	>25.00%	 	50%

 Maximum Retained Refinancing Loan Amount: With respect to any Assignment Date, an amount, not less
than zero, equal to the sum of (a) the product of (i) the Refinancing Split Percentage, if any, applicable to such Assignment Date, (ii) the Excess Refinancing Percentage applicable to such Assignment Date and
(iii) the aggregate principal balance of New Mortgage Loans that were refinanced with Seller or an affiliate thereof during the Related Collection Period, plus (b) the Carryover Retained Amount, minus (c) the applicable
Replacement Shortfall. 
 Carryover Retained Amount: With respect to any Assignment Date beginning with the Assignment
Date in the seventh calendar month after the Closing Date, the excess, if any, of the Maximum Retained Refinancing Loan Amount for the prior Assignment Date over the aggregate outstanding principal balance of the Mortgage Loans that
were retained by Seller pursuant to this Section 3.03 on the prior Assignment Date. 
 Section 3.04 Selection
Procedures. 
 (a) Not later than the Mortgage Loan Identification Date, Seller shall (i) notify Purchaser of the
identity of each Current Mortgage Loan and each Mortgage Loan that became a Refinanced Mortgage Loan during the Related Collection Period, (ii) calculate the Excess Refinancing Percentage, the Refinancing Split Percentage, the Maximum Retained
Refinancing Loan Amount and the Carryover Retained Amount for the following Assignment Date, and notify Purchaser of such amounts in writing, (iii) provide Purchaser with a list of potential Mortgage Loans (the “Available
Portfolio”), selected on the basis that the Excess Refinancing Percentage is equal to zero, and (iv) provide Purchaser with a list of residential mortgage loans selected from the Available Portfolio to be designated as Mortgage Loans
(the “Replacement Portfolio”) on the following Assignment Date and a list of residential mortgage loans selected from the Available Portfolio to be excluded from the pool of Mortgage Loans (the “Retained Portfolio”)
on the following Assignment Date in accordance with Section 3.03. 

  
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 (b) Purchaser may submit an objection to the proposed Available Portfolio, the proposed
Replacement Portfolio or the proposed Retained Portfolio not later than five Business Days following receipt of the notice of the proposed portfolios pursuant to Section 3.04(a). If Purchaser submits an objection, Seller and Buyer shall
work together in good faith over the next five Business Days (the “Selection Period”) to mutually agree on the Replacement Portfolio and the Retained Portfolio. During the Selection Period, Seller may suggest alternative Mortgage
Loans that meet the criteria of Section 3.02. If Seller and Purchaser are unable to agree on a Replacement Portfolio and a Retained Portfolio (if applicable) by close of business on the Business Day prior to the Assignment Date, Seller
and Purchaser may modify the percentages in the definitions of Future Excess Servicing Spread and Retained Servicing Spread and in the Priority of Payments, as applicable, to reflect the relative values that Seller and Purchaser would have had in
the Future Excess Servicing Spread and Retained Servicing Spread but for the inability of Seller and Purchaser to mutually agree on such portfolios. 
 (c) Unless mutually agreed upon by Seller and Purchaser, the Retained Portfolio and the Replacement Portfolio with respect to any Assignment Date shall satisfy the following criteria: 

(i) The aggregate outstanding principal balance of the residential mortgage loans in the Retained Portfolio shall not
exceed the Maximum Retained Refinancing Loan Amount; 
 (ii) The weighted average servicing fee rate for the
residential mortgage loans in the Retained Portfolio shall be substantially equal to the weighted average servicing fee rate for the Mortgage Loans in the Replacement Portfolio; 

(iii) The weighted average interest accrual rate per annum of the residential mortgage loans in the Retained Portfolio
shall be within 12.5 basis points per annum of the weighted average interest rate of the Mortgage Loans in the Replacement Portfolio; 
 (iv) The weighted average final maturity date of the residential mortgage loans in the Retained Portfolio shall be within six months of the weighted average final maturity date of the Mortgage Loans in
the Replacement Portfolio; and 
 (v) The remaining credit characteristics of the pool of residential mortgage
loans in the Retained Portfolio (other than as specified in clauses (ii), (iii) and (iv) above) shall be substantially the same as the credit characteristics of the pool of Mortgage Loans in the Replacement Portfolio.

 (d) Exhibit D provides an example of the calculations to be made pursuant to this Section 3.04.

  
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 Section 3.05 Assignment of Future Excess Servicing Spread. 

Subject to the satisfaction of the terms and conditions in this Agreement, on each Assignment Date, Seller shall execute and deliver an
Assignment Agreement for the Future Excess Servicing Spread to be assigned on such Assignment Date with respect to the Mortgage Loans included in the applicable Replacement Portfolio; provided, however, that 

(a) Purchaser shall be entitled to all Future Excess Servicing Spread and Seller shall be entitled to all Retained Servicing Spread
arising with respect to each such Mortgage Loan on and after the Refinancing Date with respect to the related Refinanced Mortgage Loan, 
 (b) Seller shall deposit all Servicing Spread Collections received with respect to such Mortgage Loans on and after the Refinancing Date with respect to the related Refinanced Mortgage Loans into the
Third Party Controlled Future Spread Custodial Account not later than the Assignment Date, and 
 (c) for each Mortgage Loan
that was originated on or after the Refinancing Date of the related Refinanced Mortgage Loan, Seller shall deposit all Servicing Spread Collections with respect to amounts prepaid at the time of closing of such Mortgage Loan, if applicable, into the
Third Party Controlled Future Spread Custodial Account not later than the Assignment Date. 
 ARTICLE IV 

PAYMENTS AND DISTRIBUTIONS 
 Section 4.01 Purchase Price. 
 In full consideration for
Purchaser’s right to receive any Future Excess Servicing Spread assigned to Purchaser, and upon the terms and conditions of this Agreement, Purchaser shall pay to Seller an amount (the “Purchase Price”) that shall be determined
by the Parties on the Closing Date in accordance with Section 3.01 of the Current Spread Agreement. 
 Section 4.02
Payments by Purchaser. 
 Payment shall be made by Purchaser to Seller by wire transfer of immediately available
federal funds, to an account designated by Seller. 
 Section 4.03 Accounts. 

(a) Lockbox Account. Seller shall inform the Mortgagors of Mortgage Loans to remit their mortgage payments to the Lockbox
Account. Payments of all Servicing Spread Collections received on and after the first Assignment Date shall be transferred from the Lockbox Account to the Third Party Controlled Future Spread Custodial Account within one Business Day of receipt and
identification thereof and in any event, within two Business Days of receipt thereof. 

  
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 (b) Third Party Controlled Future Spread Custodial Account. 

(i) The Third Party Controlled Future Spread Custodial Account will be established with Wells Fargo Bank, National
Association or with such other third party custodian or trustee selected by Purchaser, for the sole purpose of receiving and disbursing all Servicing Spread Collections, Sales Proceeds and Servicing Agreement termination payments with respect to the
Mortgage Loans. The Third Party Controlled Future Spread Custodial Account will be established pursuant to the Future Spread Custodial Account Control Agreement with respect to which Purchaser is an Entitlement Holder with Control. So long as
permitted by the Future Spread Custodial Account Control Agreement, Seller may direct the disposition of funds in the Third Party Controlled Future Spread Custodial Account strictly in accordance with the Priority of Payments. Upon any material
breach of a representation, warranty or covenant by Seller hereunder, Purchaser may elect to exercise Control over the Third Party Controlled Future Spread Custodial Account. Seller agrees to take all actions reasonably necessary, including the
filing of appropriate financing statements, to protect Purchaser’s interest in the Third Party Controlled Future Spread Custodial Account. 
 (ii) Seller shall inform each Owner to remit the applicable portion of any Servicing Agreement termination payments payable with respect to the Mortgage Loans directly to the Third Party Controlled Future
Spread Custodial Account. Any termination payment to be directed to the Third Party Controlled Future Spread Custodial Account shall be equal to the pro rata amount by which the Mortgage Loans affected by such termination bear to all mortgage
loans of Seller affected by such termination, based upon the method in which such termination payments are calculated in accordance with the applicable Servicing Agreement. 

(iii) If Seller is to receive any Sales Proceeds, Seller shall direct the Person making such payments to deposit such
payments into the Third Party Controlled Future Spread Custodial Account. 
 (iv) If Seller receives any amounts
required to be deposited into the Third Party Controlled Future Spread Custodial Account in error, Seller shall promptly remit such funds to the Third Party Controlled Future Spread Custodial Account. 

(c) Future Spread Reserve Account. The Future Spread Reserve Account will be established with Wells Fargo Bank, National
Association or with such other third party custodian or trustee selected by Purchaser. The Future Spread Reserve Account will be established pursuant to the Future Spread Reserve Account Control Agreement with respect to which Purchaser is an
Entitlement Holder with Control. So long as permitted by the Future Spread Reserve Account Control Agreement, Seller may direct the disposition of funds in the Future Spread Reserve Account strictly in accordance with Section 4.05.
Seller agrees to take all actions reasonably necessary, including the filing of appropriate financing statements, to protect Purchaser’s interest in the Future Spread Reserve Account. 

If at any time Seller’s Consolidated Tangible Net Worth falls below the sum of (x) $150,000,000 and (y) 50% of the
proceeds from any issuance of equity by Seller, Nationstar Mortgage Holdings Inc. or any of Seller’s consolidated subsidiaries or if Seller defaults in any 

  
 24 

 
indebtedness in excess of $10,000,000 (each, a “Future Spread Reserve Account Deposit Event”), Seller shall immediately notify Purchaser in writing that a Future Spread Reserve
Account Deposit Event has occurred. On each Distribution Date upon which a Future Spread Reserve Account Deposit Event has occurred and is continuing, Seller shall be required to transfer funds in the Third Party Controlled Future Spread Custodial
Account to the Future Spread Reserve Account in accordance with the Priority of Payments until the amount of funds in the Future Spread Reserve Account is equal to the Future Spread Reserve Account Required Amount. The “Future Spread Reserve
Account Required Amount” is equal to 25% of the fair market value as of the date the Future Spread Reserve Account Deposit Event that is then-continuing first occurred of the Total Servicing Spread expected to be paid over the expected
remaining life of the Mortgage Loans (the “Remaining Expected Total Servicing Spread”) determined in accordance with the following paragraph. Seller shall immediately notify Purchaser in writing if a Future Spread Reserve Account
Deposit Event is no longer continuing. Any funds in the Future Spread Reserve Account in excess of the Future Spread Reserve Account Required Amount shall be released to Seller. 

For purposes of determining the fair market value of the Remaining Expected Total Servicing Spread, Purchaser shall submit its claim for
determination of the fair market value of the Remaining Expected Total Servicing Spread, together with such back-up information it deems appropriate to justify such fair market value (which value shall be considered the fair market value of the
Remaining Expected Total Servicing Spread for purposes of calculating the Future Spread Reserve Account Required Amount until the final determination of such fair market value in accordance with this paragraph). Within five (5) Business Days of
Seller’s receipt of such determination, Seller shall notify Purchaser in writing of its acceptance or any objection to such determination of such fair market value, and if Seller objects to such determination, together with its own
determination of such fair market value and any back-up information as it deems appropriate to justify such fair market value (an “Objection Notice”). In the event an Objection Notice is delivered, the parties shall negotiate in
good faith a resolution to such objection. In the event that Seller and Purchaser are unable to resolve such objection within five (5) Business Days of the delivery of such Objection Notice, Seller and Purchaser shall appoint a mutually
acceptable nationally recognized valuation expert to determine such fair market value of the Remaining Expected Total Servicing Spread. The determination of such valuation expert shall be binding on Seller and Purchaser and the fees of such
valuation expert shall be borne by Seller. 
 Section 4.04 Priority of Payments. 

On each Business Day, subject to the terms and conditions of the Future Spread Custodial Account Control Agreement, Seller (or, after the
deliver of an access termination notice pursuant to the Future Spread Custodial Account Control Agreement, Purchaser) will direct the Bank to apply the monies in the Third Party Controlled Future Spread Custodial Account in the following order of
priority (the “Priority of Payments”), in every case, after giving effect to each prior item in the Priority of Payments on such Distribution Date: 
 (a) first, from amounts in the Third Party Controlled Future Spread Custodial Account attributable to Servicing Agreement termination payments paid by an Owner with respect to any Mortgage Loans,
pro rata, (A) the Future Excess Servicing Spread Percentage of such termination payments to Purchaser, and (B) the Retained Excess Servicing Spread Percentage of such termination payments to Seller; 

  
 25 

 (b) second, on any Business Day from and including the first Business Day of a
calendar month to but excluding the Distribution Date in such calendar month, at the option of Seller, the Base Servicing Fee payable with respect to a prior Collection Period for the Mortgage Loans to Seller; 

(c) third, on each Distribution Date, to the extent not previously paid to Seller in accordance with Section 4.04(b),
any accrued and unpaid Base Servicing Fee to Seller; 
 (d) fourth, on each Distribution Date, pro rata,
(A) to Purchaser, any Future Excess Servicing Spread for the prior Collection Period (other than the portion thereof consisting of termination payments paid pursuant to Section 4.04(a)); and (B) to Seller, any Retained
Servicing Spread for the prior Collection Period (other than the portion thereof consisting of termination payments paid pursuant to Section 4.04(a)); provided, that (I) prior to the distribution to Purchaser of any Future
Excess Servicing Spread pursuant to clause (A), the Future Excess Servicing Spread shall be applied to the payment of any indemnity payments then due and payable to a Seller Indemnitee pursuant to Section 11.02, and (II) prior to
the distribution to Seller of any Retained Servicing Spread pursuant to clause (B), the Retained Servicing Spread shall be applied first, to the payment of any indemnity payments then due and payable to a Purchaser Indemnitee
pursuant to Section 11.01 and second, for deposit to the Future Spread Reserve Account to the extent necessary to cause the amount of funds on deposit in the Future Spread Reserve Account to equal the Future Spread Reserve
Account Required Amount; and 
 (e) fifth, on each Distribution Date, to Seller, any other amounts remaining on deposit
in the Third Party Controlled Future Spread Custodial Account. 
 All payments to Purchaser or Seller shall be made by wire
transfer of immediately available federal funds to an account designated by Purchaser or Seller, as applicable. 
 Section 4.05
Withdrawals from the Future Spread Reserve Account. 
 On any Business Day, at the instruction of Purchaser,
Seller shall direct the Bank to apply funds in the Future Spread Reserve Account, if any, to the payment of indemnity payments payable to a Purchaser Indemnitee pursuant to Section 11.01. If on any Business Day a Future Spread Reserve
Account Deposit Event is not then continuing and all outstanding indemnity payments payable to Purchaser Indemnitees have been paid in full, Seller may direct the Bank to distribute any remaining funds in the Future Spread Reserve Account to, or as
directed by, Seller. If there are any funds remaining in the Future Spread Reserve Account after the Future Excess Servicing Spread and all indemnity payments payable to Purchaser Indemnitees have been paid in full, Seller shall direct the Bank to
distribute such remaining funds to, or as directed by, Seller. 

  
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 Section 4.06 Payment to Seller of Base Servicing Fee. 

(a) Seller shall be entitled to payment of the Base Servicing Fee only to the extent funds are available therefor in the Third Party
Controlled Future Spread Custodial Account in accordance with the Priority of Payments. Under no circumstances shall Purchaser be liable to Seller for payment of the Base Servicing Fee. In the event servicing of the Mortgage Loans is transferred to
sub-servicers for any reason, the servicing fees and expenses of such sub-servicers shall be paid by Seller and in no event will the amount of Servicing Spread Collections or termination payments otherwise allocable to the Future Excess Servicing
Spread be reduced due to the payment of sub-servicing fees and expenses. 
 (b) The Base Servicing Fee with respect to a
Mortgage Loan shall begin to accrue as of the Collection Period prior to the applicable Assignment Date. In no event shall Base Servicing Fees accrue concurrently on any day for a Refinanced Mortgage Loan and for a Mortgage Loan. 

Section 4.07 Correction of Principal Balance Error. 

If, subsequent to the payment of any amounts due hereunder to either party, the outstanding principal balance of any Mortgage Loan is
found to be in error, the party benefiting from the error shall pay an amount sufficient to correct and reconcile such amounts and shall provide a reconciliation statement and other such documentation to reasonably satisfy the other party concerning
the accuracy of such reconciliation. Such amounts shall be paid by the proper party within ten (10) Business Days from receipt of satisfactory written verification of amounts due. Any such request must be received by either party within 180
days of payment of such amounts. 
 Section 4.08 Intent and Characterization. 

(a) Seller and Purchaser intend that the assignments of the Future Excess Servicing Spread pursuant to this Agreement and each
Assignment Agreement constitute valid sales of such Future Excess Servicing Spread from Seller to Purchaser, conveying good title thereto free and clear of any Lien, and that the beneficial interest in and title to such Future Excess Servicing
Spread not be part of Seller’s estate in the event of the bankruptcy of Seller. Seller and Purchaser intend and agree to treat the transfer and assignment of the Future Excess Servicing Spread as an absolute sale for tax purposes, and as an
absolute and complete conveyance of title for property law purposes. Except for financial accounting purposes, neither party intends the transactions contemplated hereby to be characterized as a loan from Purchaser to Seller. 

(b) In the event (but only in the event) that the conveyance of the Future Excess Servicing Spread is characterized by a court or
governmental authority as security for a loan rather than a sale, Seller will be deemed to have granted to Purchaser, and Seller hereby grants to Purchaser, a security interest in all of its right, title and interest in, to and under the Future
Excess Servicing Spread and all proceeds thereof as security for a loan in an amount equal to the Aggregate Purchase Price (as defined in the Current Spread Agreement). 

  
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 ARTICLE V 
 REPRESENTATIONS AND WARRANTIES OF SELLER 
 As an inducement to
Purchaser to enter into this Agreement, Seller represents and warrants to Purchaser as of the Agreement Date, the Closing Date and as of each Assignment Date as follows (or as of the date specified below, as applicable): 

Section 5.01 Due Incorporation and Good Standing. 
 Seller is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware. Seller is qualified to transact business in each jurisdiction in which
such qualification is deemed necessary to service the Mortgage Loans. Seller has, in full force and effect (without notice of possible suspension, revocation or impairment), all required permits, approvals, licenses, and registrations to conduct all
activities in all states in which its activities with respect to the Mortgage Loans or the Mortgage Servicing Rights require it to be licensed, registered or approved in order to service the Mortgage Loans and own the Mortgage Servicing Rights,
unless the failure to obtain such permits, approvals, licenses and registrations would not reasonably be expected to have a material adverse effect on Seller’s ability to perform its obligations under this Agreement or the other Transaction
Documents to which it is a party. 
 Section 5.02 Authority and Capacity. 

Seller has all requisite corporate power, authority and capacity to enter into this Agreement and each other Transaction Document to
which it is a party and to perform the obligations required of it hereunder and thereunder. The execution and delivery of this Agreement and each other Transaction Document and the consummation of the transactions contemplated hereby and thereby
have each been duly and validly authorized by all necessary corporate action. This Agreement constitutes, and each other applicable Transaction Document to which Seller is a party constitutes or will constitute, a valid and legally binding agreement
of Seller enforceable in accordance with its terms, and no offset, counterclaim or defense exists to the full performance by Seller of this Agreement or such other Transaction Document, except as the same may be limited by bankruptcy, insolvency,
reorganization and similar laws affecting the enforcement of creditors’ rights generally and by general equity principles. 

Section 5.03 Owner Consents. 
 Prior to an Assignment Date, Seller has obtained all necessary and applicable Owner Consents. 
 Section 5.04 Title to the Mortgage Servicing Rights. 
 As of an
Assignment Date, Seller will be the lawful owner of the Mortgage Servicing Rights, will be responsible for the maintenance of the Related Escrow Accounts, and will have the sole right and authority to transfer the Future Excess Servicing Spread as
contemplated hereby. The transfer, assignment and delivery of the Future Excess Servicing Spread shall be free and clear of any and all claims, charges, defenses, offsets, Liens and encumbrances of any kind or nature whatsoever other than Permitted
Liens. 

  
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 Section 5.05 Effective Agreements. 

The execution, delivery and performance of this Agreement and each other Transaction Document by Seller, compliance with the terms hereof
and thereof and the consummation of the transactions contemplated hereby and thereby did not, and will not, violate, conflict with, result in a breach of, constitute a default under, be prohibited by or require any additional approval under its
certificate of incorporation or bylaws, any instrument or agreement to which it is a party or by which it is bound or which affects the Future Excess Servicing Spread, or any state or federal law, rule or regulation or any judicial or administrative
decree, order, ruling or regulation applicable to it or to the Future Excess Servicing Spread. 
 Section 5.06 No Accrued
Liabilities. 
 There are no accrued liabilities of Seller with respect to the Mortgage Loans or the Mortgage Servicing
Rights or circumstances under which such accrued liabilities will arise against Purchaser as purchaser of the Future Excess Servicing Spread. 
 Section 5.07 Seller/Servicer Standing. 
 As of the applicable
Assignment Date, Seller is approved by each applicable Agency as a seller/servicer in good standing with the requisite financial criteria and adequate resources to complete the transactions contemplated hereby on the conditions stated herein.

 Section 5.08 MERS Membership. 
 Seller is a member in good standing under the MERS system or another similar system reasonable acceptable to the Purchaser. 
 Section 5.09 Owner Set-off Rights. 
 Seller has no actual notice,
including any notice received from an Owner, or any reason to believe, that, other than in the normal course of Seller’s business, any circumstances exist that would result in Seller being liable to an Owner for any amount due by reason of:
(i) any breach of servicing obligations or breach of mortgage selling warranty to an Owner under servicing agreements relating to Seller’s entire servicing portfolio for such Owner (including without limitation any unmet mortgage
repurchase obligation), (ii) any unperformed obligation with respect to mortgage loans that Seller is servicing for an Owner under the regular servicing option or other mortgages subject to recourse agreements, (iii) any loss or damage to
an Owner by reason of any inability to transfer to a purchaser of the servicing rights Seller’s selling and servicing representations, warranties and obligations, or (iv) any other unmet obligations to an Owner under a servicing contract
relating to Seller’s entire servicing portfolio with such Owner. 

  
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 Section 5.10 Ability to Perform; Solvency. 

Seller does not believe, nor does it have any reason or cause to believe, that it cannot perform each and every covenant contained in
this Agreement. Seller is Solvent and the sale of the Future Excess Servicing Spread will not cause Seller to become insolvent. The sale of the Future Excess Servicing Spread is not undertaken to hinder, delay or defraud any of the creditors of
Seller. The consideration received by Seller upon the sale of the Future Excess Servicing Spread constitutes fair consideration and reasonably equivalent value therefor. 
 Section 5.11 Obligations with Respect to Origination. 
 Seller shall
remain liable for all obligations with respect to the origination of each Mortgage Loan and, if applicable, for all obligations with respect to the sale of such Mortgage Loan to the applicable Owner. 

Section 5.12 Purchase of Mortgage Servicing Rights. 

Each agreement or arrangement that Seller enters into to purchase Mortgage Servicing Rights shall be entered into on an arm’s length
contractual basis in the ordinary course of business and shall have market terms applicable for the type of Mortgage Servicing Rights to be acquired thereby. Seller shall not enter into any agreement or arrangement with a third party intended to
encourage the refinancing of any Mortgage Loan by any Person other than Seller. 
 Section 5.13 No Actions.

 There have not been commenced or, to the best of Seller’s knowledge, threatened any action, suit or proceeding which
will likely materially and adversely affect the consummation of the transactions contemplated by any Transaction Document. 

ARTICLE VI 

REPRESENTATIONS AND WARRANTIES AS TO MORTGAGE 
 LOANS AND SERVICING 
 As further inducement to Purchaser to enter
into this Agreement, Seller represents and warrants to Purchaser, as of each Assignment Date (or as of the date specified below, as applicable), as follows: 
 Section 6.01 Servicing Agreements; Applicable Laws. 
 Seller, the
originator of the Mortgage Loan and each prior owner of the Mortgage Servicing Rights has each performed its obligations in all material respects in accordance with the terms of the related Mortgage Note, Mortgage, Servicing Agreements and
Applicable Law. 
 Section 6.02 Related Escrow Accounts. 

All Related Escrow Accounts are being, and have been, maintained in accordance with Applicable Law and in accordance with the Servicing
Agreements and the terms of the related Mortgages and other Mortgage Loan documents; and, except as to payments which are past due under Mortgage Notes, all balances required by the Mortgages or other Mortgage Loan Documents to be paid to Seller for
the account of the Mortgagors are on deposit in the appropriate Related Escrow Account. 

  
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 Section 6.03 No Purchaser Responsibility. 

Purchaser shall have no responsibility, liability or other obligation whatsoever under any Servicing Agreement or with respect to any
Mortgage Loan, or to make any advance thereunder, or to pay any servicing fees. 
 Section 6.04 Location of Credit
Files. 
 All of the Mortgage Loan Documents are held by custodians in the locations specified in Exhibit F,
unless temporarily removed for enforcement purposes in the normal course of servicing. Seller will notify Purchaser in writing of any changes in locations of the Mortgage Loan Documents in Exhibit F. 

Section 6.05 Representations Concerning the Future Excess Servicing Spread. 

(a) Seller has not assigned, pledged, conveyed, or encumbered the Future Excess Servicing Spread to any other Person (other than
Permitted Liens) and immediately prior to the sale of the Future Excess Servicing Spread, Seller was the sole owner of the Future Excess Servicing Spread and had good and marketable title thereto (subject to the rights of the applicable Owner under
the Servicing Agreements), free and clear of all Liens (other than Permitted Liens), and no Person, other than Purchaser, has any Lien (other than Permitted Liens) on the Future Excess Servicing Spread. No security agreement, financing statement,
equivalent security or lien instrument or continuation statement covering all or any part of the Future Excess Servicing Spread which has been signed by Seller or which Seller has authorized any other Person to sign or file or record, is on file or
of record with any public office, except such as may have been terminated or filed by or on behalf of Purchaser. 
 (b) The
grant of a security interest by Seller to Purchaser on the Future Excess Servicing Spread does not and will not violate any Requirement of Law, the effect of which violation is to render void or voidable such assignment. 

(c) As contemplated under Section 4.08(b), upon the filing of financing statements on Form UCC-1 naming Purchaser as
“Secured Party” and Seller as “Debtor”, and describing the Future Excess Servicing Spread, in the jurisdictions and recording offices listed on Exhibit H attached hereto, the security interests granted hereunder in the Future
Excess Servicing Spread will constitute perfected first priority security interests under the UCC in all right, title and interest of Purchaser in, to and under the Future Excess Servicing Spread. 

(d) Purchaser has and will continue to have the full right, power and authority to pledge the Future Excess Servicing Spread, and the
Future Excess Servicing Spread may be further assigned without any requirement, in each case, subject only to applicable Owner Consents. 

  
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 (e) Each Servicing Agreement (other than with respect to Mortgage Loans owned by Seller)
constitutes an Eligible Servicing Agreement. 
 ARTICLE VII 

REPRESENTATIONS AND WARRANTIES OF PURCHASER 
 As an inducement to Purchaser to enter into this Agreement, Purchaser and warrants to Seller as of the Agreement Date, the Closing Date and as of each Assignment Date as follows (or as of the date
specified below, as applicable): 
 Section 7.01 Due Incorporation and Good Standing. 

Purchaser is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware.
Purchaser is qualified to transact business in each jurisdiction in which such qualification is deemed necessary. 
 Section
7.02 Authority and Capacity. 
 Purchaser has all requisite corporate power, authority and capacity to enter into
this Agreement and each other Transaction Document to which it is a party and to perform the obligations required of it hereunder and thereunder. The execution and delivery of this Agreement and each other Transaction Document to which it is a party
and the consummation of the transactions contemplated hereby and thereby have each been duly and validly authorized by all necessary corporate action. This Agreement constitutes, and each other applicable Transaction Document to which Purchaser is a
party constitutes or will constitute, a valid and legally binding agreement of Purchaser enforceable in accordance with its terms, and no offset, counterclaim or defense exists to the full performance by Purchaser of this Agreement or such other
Transaction Document, except as the same may be limited by bankruptcy, insolvency, reorganization and similar laws affecting the enforcement of creditors’ rights generally and by general equity principles. 

Section 7.03 Effective Agreements. 
 The execution, delivery and performance of this Agreement and each other Transaction Document to which it is a party by Purchaser, its compliance with the terms hereof and thereof and the consummation of
the transactions contemplated hereby and thereby will not violate, conflict with, result in a breach of, constitute a default under, be prohibited by or require any additional approval under its certificate of incorporation or bylaws, any instrument
or agreement to which it is a party or by which it is bound, or any state or federal law, rule or regulation or any judicial or administrative decree, order, ruling or regulation applicable to it, in each case which violation, conflict, breach or
requirement would reasonably be expected to have a material adverse effect on Purchaser’s ability to perform its obligations under this Agreement and any other Transaction Document to which it is a party. 

  
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 Section 7.04 Sophisticated Investor. 

Purchaser is a sophisticated investor and its decision to acquire the Future Excess Servicing Spread is based upon Purchaser’s own
independent experience, knowledge, due diligence and evaluation of this transaction. Purchaser has relied solely on such experience, knowledge, due diligence and evaluation and has not relied on any oral or written information provided by Seller
other than the representations and warranties made by Seller herein. 
 Section 7.05 No Actions 

There shall not have been commenced or, to the best of Purchaser’s knowledge, threatened any action, suit or proceeding against the
Purchaser that will likely materially and adversely affect the consummation of the transactions contemplated hereby. 

ARTICLE VIII 
 SELLER COVENANTS 
 Seller covenants and agrees as follows:

 Section 8.01 Servicing Obligations. 
 (a) Seller shall pay, perform and discharge all liabilities and obligations relating to the Servicing, including all liabilities and obligations under the Mortgage Loan Documents, Applicable Law and the
Servicing Agreements; and shall pay, perform and discharge all the rights, obligations and duties with respect to the Related Escrow Accounts as required by the Servicing Agreements, the Mortgage Loan Documents, all Applicable Law and, with respect
to any Mortgage Loans owned by an Agency, such Agency. 
 (b) Under no circumstances shall Purchaser be responsible for the
Servicing acts and omissions of Seller or any other servicer or any originator of the Mortgage Loans, or for any servicing related obligations or liabilities of any servicer in the Servicing Agreements or of any Person under the Mortgage Loan
Documents, or for any other obligations or liabilities of Seller. 
 (c) Upon termination of any Servicing Agreement, Seller
shall remain liable to Purchaser and the applicable Owner for all liabilities and obligations incurred by the servicer or its designee while Seller or its designee was acting as the servicer thereunder. 

Section 8.02 Cooperation. 
 Seller shall cooperate with and assist Purchaser, as reasonably requested, in carrying out the purposes of this Agreement. Seller will cooperate and assist Purchaser, as reasonably requested and at the
reasonable expense of Purchaser, in obtaining consents from any Owner as may be required or advisable to assign, transfer, deliver, hypothecate, pledge, subdivide, finance or otherwise deal with the Future Excess Servicing Spread. If Seller is
terminated under any Servicing Agreement, Seller shall cooperate fully and at its own expense in transferring such Servicing. If Purchaser assigns its Future Excess Servicing Rights or its other rights under this Agreement to a Third Party Assignee,
Seller will cooperate and assist any Third Party Assignee in drafting and entering into a Third Party Future Spread Agreement in accordance with Section 12.15. 

  
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 Section 8.03 Financing Statements. 

Seller hereby authorizes the filing of any financing statements or continuation statements, and amendments to financing statements, in
any jurisdictions and with any filing offices as Purchaser may determine, in its sole discretion, are necessary or advisable to perfect the sale of the Future Excess Servicing Spread and the security interests granted to Purchaser in connection
herewith. Seller agrees to execute financing statements in form reasonably acceptable to Purchaser and Seller at the request of Purchaser in order to reflect Purchaser’s interest in the Future Excess Servicing Spread, the Third Party Controlled
Future Spread Custodial Account and the Future Spread Reserve Account. 
 Section 8.04 Supplemental Information.

 From time to time after the applicable Assignment Date with respect to each Mortgage Loan, Seller promptly shall furnish
Purchaser such incidental information, which is reasonably available to Seller, supplemental to the information contained in the documents and schedules delivered pursuant to this Agreement, as may reasonably be requested to monitor performance of
the Mortgage Loans and the payment of the Future Excess Servicing Spread. 
 Section 8.05 Access to Information.

 From time to time, at such times as are reasonably convenient to Seller, Purchaser or its designees may conduct audits or
visit and inspect any of the Mortgage Loans or places where the Credit Files are located, to examine the Credit Files, internal controls and procedures maintained by Seller and its agents, and take copies and extracts therefrom, and to discuss
Seller’s affairs with its officers, employees and, upon notice to Seller, independent accountants. Seller hereby authorizes such officers, employees and independent accountants to discuss with Purchaser the affairs of Seller. Any audit provided
for herein will be conducted in accordance with Seller’s rules respecting safety and security on its premises, in accordance with applicable privacy and confidentiality laws and without materially disrupting operations. 

Section 8.06 Home Affordable Modification Program. 

With respect to any Mortgage Loans that have been modified or that are or will be in a modification trial period as part of the U.S.
Department of the Treasury’s Home Affordable Modification Program (“HAMP”) (such Mortgage Loans, the “HAMP Loans”), Seller represents and warrants that it will continue to service such HAMP Loan in accordance
with the HAMP terms and will ensure the timely compliance and filing of any appropriate HAMP documentation with the applicable regulator. 

  
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 Section 8.07 Distribution Date Data Tapes and Reports. 

Seller shall deliver the following to Purchaser two Business Days prior to each Distribution Date: 

(a) An Electronic Data File in form and substance acceptable to Purchaser containing, for each Current Mortgage Loan and each Mortgage
Loan, principal, interest and Servicing Spread Collections, and delinquency status (i.e. 30, 60, 90, FCL, REO) as of the last day of the prior Collection Period; 
 (b) A Summary Activity Report with respect to each of the pool of Current Mortgage Loans and the pool of Mortgage Loans with respect to the prior Collection Period containing: 

(i) Aggregate Beginning Principal Balance as of the first and last date of the Collection Period, 

(ii) Aggregate Regular Principal Collected, 

(iii) Aggregate Noncash Principal, 

(iv) Aggregate Interest Collected, 

(v) Aggregate Liquidation Principal, 

(vi) Aggregate Curtailments, 
 (vii) Liquidations, 
 (viii) Short Sales, 

(ix) Aggregate Principal Balance of Refinanced Mortgage Loans, and (1) for each Refinanced Mortgage Loan, the
Principal Balance, the applicable Servicing Spread, the final maturity date, the mortgage interest rate, the loan-to-value ratio and the FICO score, and (2) for each Current Mortgage Loan and each Mortgage Loan that was refinanced by a lender
other than Seller or an affiliate thereof, to the extent such information is known to Seller in the ordinary course of business and the collection and delivery of such information does not impose any additional and undue burden on Seller, the name
of such lender and the mortgage interest rate of the newly originated residential mortgage loan; 
 (c) A Delinquency Report
with respect to the Current Mortgage Loans and Mortgage Loans containing: 
 (i) The aggregate outstanding
principal balance of the pool of Current Mortgage Loans and the pool of Mortgage Loans and percentages of the aggregate outstanding principal balance of the pool of Current Mortgage Loans and the pool of Mortgage Loans in each of the following
categories as of the last day of the prior Collection Period: 
 (1) Non-delinquent Mortgage Loans, 

(2) 0-29 days delinquent, 

  
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 (3) 30-59 days delinquent, 

(4) 60-89 days delinquent, 
 (5) 90 days or more delinquent, 
 (6) Current Mortgage Loans and Mortgage Loans
in Foreclosure, 
 (7) Current Mortgage Loans and Mortgage Loans with respect to which the related Mortgaged Properties have
become real estate owned properties, and 
 (8) Current Mortgage Loans and Mortgage Loans in which the Mortgagor is in
bankruptcy; 
 (ii) For each of the above categories, a roll report showing the migration of Current Mortgage Loans and
Mortgage Loans in such category from the last day of the second prior Collection Period; 
 (d) A Disbursement Report for such
Distribution Date containing: 
 (i) The Servicing Spread Collections for the prior Collection Period,

 (ii) The Base Servicing Fee paid to Seller, 

(iii) The amount of the Future Excess Servicing Spread paid to Purchaser, 

(iv) The amount of funds, if any, transferred to the Future Spread Reserve Account, 

(v) The amount of Purchaser Indemnitees, if any, paid from each of the Third Party Controlled Future Spread Custodial
Account or the Future Spread Reserve Account, and 
 (vi) The amount of funds paid to Seller from the Future
Spread Reserve Account. 
 Section 8.08 Financial Statements and Officer’s Certificates. 

(a) If Seller’s financial statements are not filed with the U.S. Securities and Exchange Commission and are not publicly available,
Seller shall deliver to Purchaser copies of Seller’s most recent audited quarterly financial statements within 45 days of the end of each of Seller’s fiscal quarters and its most recent audited annual financial statements within 90 days of
the end of each of Seller’s fiscal years. 

  
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 (b) Within 45 days of the end of each of Seller’s fiscal quarters, Seller shall
deliver to Purchaser a certificate from a duly authorized officer of Seller certifying whether or not Seller has a Consolidated Tangible Net Worth of at least the sum of (x) $150,000,000 and (y) 50% of the proceeds from any issuance of
equity by Seller, Nationstar Mortgage Holdings Inc. or any of Seller’s consolidated subsidiaries (and shall provide a calculation of its determination of its Consolidated Tangible Net Worth) and whether or not Seller is in default in any
indebtedness in excess of $10,000,000. 
 Section 8.09 Monthly Management Calls. 

Within five Business Days after each Distribution Date, Seller shall make its management team and other appropriate officers and
employees available to Purchaser to discuss by telephone the performance of the Current Mortgage Loans and Mortgage Loans and the performance of the parties under the Transaction Documents. 

Section 8.10 Timely Payment of Owner Obligations. 
 Seller shall pay all of its obligations to an Owner in a timely manner so as to avoid exercise of any right of set-off by any Owner against Seller. 

Section 8.11 Servicing Agreements. 
 Seller will service the Mortgage Loans in accordance with Accepted Servicing Practices and will perform its obligations in all material respects in accordance with the Servicing Agreements and Applicable
Law. In particular, Servicer shall comply with any advancing obligation under the Servicing Agreements. Without the express written consent of Purchaser (which consent may be withheld in its absolute discretion), Seller shall not (a) terminate
or amend any Mortgage Servicing Rights, (b) expressly provide any required consent to any termination, amendment or modification of any Servicing Agreements either verbally or in writing, or (c) expressly provide any required consent to
any termination, amendment or modification of any other servicing agreements or enter into any other agreement or arrangement with the applicable Owner that may be reasonably material to Purchaser either verbally or in writing. Seller shall conduct
its business and perform its obligations under the Servicing Agreements in a manner such that the applicable Owner will not have cause to terminate any Servicing Agreement. Notwithstanding the foregoing, in no event will the prohibitions contained
in this Section 8.11 apply to any amendments or modifications of the Servicing Agreements applicable to Current Mortgage Loans or Mortgage Loans owned by Seller which do not affect the Future Excess Servicing Spread with respect to such
Current Mortgage Loans or Mortgage Loans. 
 Section 8.12 Transfer of Mortgage Servicing Rights. 

If Seller intends to assign, transfer or sell any of its Mortgage Servicing Rights to a replacement servicer, to the extent permitted by
applicable law, (a) Seller shall consult with Purchaser and Purchaser shall participate in the assignment, transfer and sale of such Mortgage Servicing Rights, and (b) Seller shall obtain the written consent of Purchaser prior to any
assignment, transfer or sale thereof. 

  
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 Section 8.13 Consents to Transaction Documents. 

Seller shall not terminate, amend, amend and restate, modify or waive any conditions or provisions of any Transaction Document without the
express written consent of Purchaser, which consent shall not be unreasonably withheld, delayed or conditioned. 
 Section 8.14
Accounts. 
 Seller shall inform the Mortgagors of Mortgage Loans at its own expense to remit their mortgage
payments to the Lockbox Account, and any change in such instructions shall only be permitted with the express written consent of Purchaser. 
 Section 8.15 Notification of Certain Events. 
 Seller shall promptly
notify Purchaser of any event which, with the passage of time, could reasonably be expected to result in a termination of any servicing agreement between Seller and any Owner. Seller shall provide Purchaser with copies of any notices from the
applicable Owner of any breach, potential breach, default or potential default by Seller under any servicing agreement between Seller and the applicable Owner, and with copies of any notices from any Owner of any termination, potential termination
or threatened termination of any servicing agreement entered into between Seller and that Owner. Seller shall promptly forward copies of any material notices received from any Owner or from any Governmental Authority with respect to the Mortgage
Loans. Seller shall provide Purchaser with (a) copies of all amendments to the Transaction Documents, the Servicing Agreements (other than with respect to Mortgage Loans owned by Seller) and the agreements relating to Seller’s acquisition
of the Mortgage Servicing Rights, (b) with respect to Mortgage Loans owned by Seller, copies of all material amendments to the Servicing Agreements, and (c) copies of any other agreements Seller enters into with any Owner that may be
reasonably material to Purchaser, in each case, promptly after execution thereof. 
 Section 8.16 Financing; Pledge of
Future Excess Servicing Spread. 
 Seller shall not pledge, obtain Seller financing for, or otherwise permit any Lien of
any creditor of Seller to exist on, any portion of the Servicing Spread Collections without the prior written consent of Purchaser. Seller’s financial statements shall contain footnotes indicating that the Future Excess Servicing Spread has
been sold, and Seller does not maintain any ownership interest therein. 
 Section 8.17 Existence, etc.

 Seller shall: 
 (a) preserve and maintain its legal existence and all of its material licenses required to service the Mortgage Loans; 
 (b) comply with the requirements of all Applicable Laws, rules, regulations and orders of Governmental Authorities (including, without limitation, truth in lending and real estate settlement procedures)
if failure to comply with such requirements could be reasonably likely (either individually or in the aggregate) to have a material adverse effect on its ability to perform its obligations hereunder or under any other Transaction Document;

  
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 (c) keep adequate records and books of account, in which complete entries will be made in
accordance with GAAP consistently applied, and maintain adequate accounts and reserves for all taxes (including income taxes), all depreciation, depletion, obsolescence and amortization of its properties, all contingencies, and all other reserves;

 (d) not move its chief executive office or chief operating office from the addresses referred to in Exhibit H unless
it shall have provided Purchaser not less than thirty (30) days prior written notice of such change; 
 (e) pay and
discharge all material taxes, assessments and governmental charges or levies imposed on it or its income or profits or on any of its property prior to the date on which penalties attach thereto, except for any such tax, assessment, charge or levy
the payment of which is being contested in good faith and by proper proceedings and against which adequate reserves are being maintained. Seller and its subsidiaries shall file on a timely basis all federal, and material state and local tax and
information returns, reports and any other information statements or schedules required to be filed by or in respect of it; 

(f) keep in full force and effect the provisions of its charter documents, by-laws, operating agreements or similar organizational
documents in each case to the extent reasonably necessary to perform its obligations hereunder or under any other Transaction Documents; 
 (g) keep in full force and effect all agreements and instruments by which it or any of its properties may be bound and all applicable decrees, orders and judgments, in each case to the extent reasonably
necessary to perform its obligations hereunder or under any other Transaction Document; and 
 (h) comply with its obligations
under the Transaction Documents to which it is a party and each other agreement entered into with an Owner. 
 Section 8.18
Consent to Sub-Servicing. 
 Subject to the rights of the Owners, Seller will not permit any Person other than
Seller to service or sub-service the Mortgage Loans without the prior written consent of Purchaser, in each case other than third-party vendors customarily employed by servicers in the ordinary course of business in accordance with prudent mortgage
servicing practices. 

  
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 Section 8.19 Nonpetition Covenant. 

Seller shall not, prior to the date that is one year and one day after the payment in full of the Future Excess Servicing Spread,
petition or otherwise invoke the process of any court or governmental authority for the purpose of commencing or sustaining a case against Purchaser under any insolvency law or appointing a receiver, liquidator, assignee, trustee, custodian,
sequestrator or other similar official of Purchaser or any substantial part of its property, or ordering the winding up or liquidation of the affairs of Purchaser. 
 Section 8.20 Schedule of Mortgage Loans. 
 Seller shall maintain the
Schedule of Mortgage Loans, which shall be updated as of each Assignment Date. The information in the Schedule of Mortgage Loans pertaining to the Mortgage Loans and the Mortgage Servicing Rights will be true and correct in all material respects as
of the date specified. 
 Section 8.21 True Sale Opinion. 

Seller shall cause a written opinion of counsel to be furnished, in form and substance satisfactory to Purchaser, dated the Closing Date
with respect to the characterization of the transfer of the Future Excess Servicing Spread by Seller to Purchaser as a true sale. Purchaser may request additional opinions regarding such characterization subsequent to the Closing Date as advised by
Purchaser’s counsel in light of changes in law and other circumstances. To the extent Seller is unable to provide such opinions with respect to any Mortgage Loans, Seller shall substitute such Mortgage Loans with residential mortgage loans have
substantially the same credit characteristics. 
 Section 8.22 Valuation. 

As of the Closing Date, Purchaser shall have received an opinion reasonably satisfactory to Purchaser that the Base Servicing Fee of the
Mortgage Loans and the Purchase Price of the Future Excess Servicing Spread is fair and reasonable. 
 Section 8.23
Material Documents. 
 Seller shall provide Purchaser with executed copies of all material agreements and
documents, and any amendments thereto, as of each Assignment Date relating to Seller’s acquisition of the related Mortgage Servicing Rights and the servicing of the Mortgage Loans assigned. 

ARTICLE IX 

CONDITIONS PRECEDENT TO OBLIGATIONS OF PURCHASER 
 The obligations of Purchaser under this Agreement are subject to the satisfaction of the following conditions as of the Closing Date: 

Section 9.01 Correctness of Representations and Warranties. 

The representations and warranties made by Seller in this Agreement and each other Transaction Document to which Seller is a party to be
made on or prior to the Closing Date are true and correct in all material respects. 

  
 40 

 Section 9.02 Compliance with Conditions. 

All of the terms, covenants, conditions and obligations of this Agreement and each other Transaction Document required to be complied
with and performed by Seller on or prior to the Closing Date shall have been duly complied with and performed in all material respects. 
 Section 9.03 Corporate Resolution. 
 Purchaser shall have received
from Seller a certified copy of its corporate resolution approving the execution and delivery of this Agreement and the other Transaction Documents and the consummation of the transactions contemplated hereby and thereby, together with such other
certificates of incumbency and other evidences of corporate authority as Purchaser or its counsel may reasonably request. 

Section 9.04 No Material Adverse Change. 
 From the Agreement Date, there shall not have been any change to Seller’s financial or operating condition or in the Mortgage Servicing Rights, the Mortgage Loans, the Related Escrow Accounts or to
Seller’s relationship with, or authority from, the Agency that in each case will likely materially and adversely affect the consummation of the transactions contemplated hereby or the Future Excess Servicing Spread. 

Section 9.05 Consents. 
 The Seller shall have obtained all consents, approvals or other requirements of third parties required for the consummation of the transactions contemplated by the Transaction Documents that are to be
obtained on or prior to the Closing Date. 
 Section 9.06 Delivery of Transaction Documents. 

Seller shall have delivered copies of each executed Transaction Document that is to be entered on or prior to the Closing Date.

 Section 9.07 Certificate of Seller. 
 Seller shall have provided Purchaser a certificate, substantially in the form attached hereto as Exhibit D, signed by an authorized officer of Seller dated as of such date, applicable to the
transactions contemplated by this Agreement, to the effect that: (a) each of Seller’s representations and warranties made in this Agreement and each other Transaction Document to which Seller is a party is true and correct in all material
respects as of such date; (b) all of the terms, covenants, conditions and obligations of this Agreement and each other Transaction Document to which Seller is a party that are required to be complied with and performed by Seller at or prior to
the Agreement Date have been duly complied with and performed in all material respects; (c) the condition set forth in Section 9.04 has been satisfied and (d) as of the Closing Date, Seller has a Consolidated Tangible Net Worth
of at least the sum of (x) $150,000,000 and (y) 50% of the proceeds from any issuance of equity by Seller, Nationstar Mortgage Holdings Inc. or any of Seller’s consolidated subsidiaries, and is not in default in any indebtedness in
excess of $10,000,000. 

  
 41 

 Section 9.08 Opinions of Counsel. 

Seller’s counsel shall have delivered the Opinions of Counsel required pursuant to Section 2.01(b)(v),
Section 2.01(b)(vi) and Section 2.01(b)(vii). 
 Section 9.09 Good Standing Certificate of
Seller. 
 Seller shall have provided Purchaser a certificate of good standing of Seller, dated as of a date within five
(5) Business Days prior to the Closing Date. 
 ARTICLE X 

CONDITIONS PRECEDENT TO OBLIGATIONS OF SELLER 
 The obligations of Seller under this Agreement are subject to the satisfaction of the following conditions as of the Closing Date: 
 Section 10.01 Correctness of Representations and Warranties. 
 The
representations and warranties made by Purchaser in this Agreement to be made on or prior to the Closing Date are true and correct in all material respects. 
 Section 10.02 Compliance with Conditions. 
 All of the terms,
conditions, covenants and obligations of this Agreement required to be complied with and performed by Purchaser on or prior to the Closing Date shall have been duly complied with and performed in all material respects. 

Section 10.03 Corporate Resolution. 
 Seller shall have received from Purchaser a certified copy of its corporate resolution approving the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby,
together with such other certificates of incumbency and other evidences of corporate authority as Seller or its counsel may reasonably request. 
 Section 10.04 No Material Adverse Change. 
 Since the Agreement
Date, there shall not have been any change to Purchaser’s financial condition that will likely materially and adversely affect the consummation of the transactions contemplated hereby. 

Section 10.05 Certificate of Purchaser. 
 Purchaser shall have provided Seller a certificate, substantially in the form attached hereto as Exhibit E, signed by an authorized officer of Purchaser dated as of such date, applicable to the
transactions contemplated by this Agreement, to the effect that: (a) each of Purchaser’s representations and warranties made in this Agreement is true and correct in all material respects as of such date; (b) all of the terms,
covenants, conditions and obligations of 

  
 42 

 
this Agreement required to be complied with and performed by Purchaser at or prior to the Agreement Date have been duly complied with and performed in all material respects; and (c) the
condition set forth in Section 10.04 has been satisfied. 
 Section 10.06 Good Standing Certificate of
Purchaser. 
 Purchaser shall have provided Seller a certificate of good standing of Purchaser, dated as of a date
within five (5) Business Days prior to the Closing Date. 
 ARTICLE XI 

INDEMNIFICATION 
 Section 11.01 Indemnification by Seller. 
 (a) Seller shall
indemnify, defend and hold Purchaser, its affiliates and its and their respective directors, managers, officers, employees, agents, representatives and advisors (the “Purchaser Indemnitees”) harmless from and shall reimburse the
applicable Purchaser Indemnitee for any Losses suffered or incurred by any Purchaser Indemnitee after the Agreement Date which result from: 
 (i) Any material breach of a representation or warranty by Seller, or non-fulfillment of any covenant or obligation of Seller, contained in this Agreement; 

(ii) Any servicing act or omission of any prior servicer relating to any Mortgage Loan and any act or omission of any party related to
the origination of any Mortgage Loan; 
 (iii) Any act, error or omission of Seller in servicing any of the Mortgage Loans,
including improper action or failure to act when required to do so; 
 (iv) Any exercise of any rights of setoff or other
netting arrangements by any Owner against Seller that results in a decrease in Servicing Agreements termination payments due to Seller with respect to the Mortgage Loans from such Owner or in a shortfall of funds to pay the Future Excess Servicing
Spread; and 
 (v) Litigation, proceedings, governmental investigations, orders, injunctions or decrees resulting from any of
the items described in Section 11.01(a)(i)-(iv) above; 
 provided, however, that the applicable Purchaser
Indemnitee has taken all commercially reasonable and appropriate actions to mitigate any such losses, damages, deficiencies, claims, causes of action or expenses as reasonably requested by Seller, which such failure of mitigation shall not relieve
Seller of its indemnification obligations in this Section 11.01(a) but may affect 

  
 43 

 
the amount of such obligation; and further provided, that any Losses incurred by the Purchaser Indemnitee pursuant to any attempt to mitigate any such losses, damages, deficiencies,
claims, causes of action or expenses shall be reimbursed by Seller as part of its indemnification obligations in this Section 11.01(a). Purchaser shall notify Seller promptly after receiving written notice of the assertion of any
litigation, proceedings, governmental investigations, orders, injunctions, decrees or any third party claims subject to indemnification under this Agreement (each, a “Third Party Claim”). Upon receipt of such notice of a Third Party
Claim, Seller shall have the right to assume the defense of such Third Party Claim using counsel of its choice reasonably satisfactory to the applicable Purchaser Indemnitee, but may not enter into any settlement without the prior written consent of
the applicable Purchaser Indemnitee, which shall not be unreasonably withheld. A Purchaser Indemnitee shall have the right to select separate counsel and to otherwise separately defend itself at its own expense but shall not consent to the entry of
a judgment or enter into any settlement with respect to the Third Party Claim without the prior written consent of Seller, which consent shall not be unreasonably withheld. Any exercise of such rights by a Purchaser Indemnitee shall not relieve
Seller of its obligations and liabilities under this Section 11.01(a) or any other provision of this Agreement. With respect to any Third Party Claim subject to indemnification under this Agreement, the applicable Purchaser Indemnitee
shall be required to cooperate in good faith with Seller to ensure the proper and adequate defense of such Third-Party Claim. For the avoidance of doubt, Seller’s obligations for Purchaser Indemnitees shall not be limited to funds available in
the Third Party Controlled Future Spread Custodial Account or the Future Spread Reserve Account. 
 (b) REIT
Requirements. Notwithstanding anything in Section 11.01(a), in the event that counsel or independent accountants for the Protected REIT determine that there exists a material risk that any amounts due to Purchaser under
Section 11.01(a) hereof would be treated as Nonqualifying Income upon the payment of such amounts to Purchaser, the amount paid to Purchaser pursuant to this Agreement in any tax year shall not exceed the maximum amount that can be paid
to Purchaser in such year without causing the Protected REIT to fail to meet the REIT Requirements for such year, determined as if the payment of such amount were Nonqualifying Income as determined by such counsel or independent accountants to the
Protected REIT. If the amount payable for any tax year under the preceding sentence is less than the amount which Seller would otherwise be obligated to pay to Purchaser pursuant to Section 11.01 of this Agreement (the “Expense
Amount”), then: (1) Seller shall place the Expense Amount into an escrow account (the “Expense Escrow Account”) using an escrow agent and agreement reasonably acceptable to Purchaser and shall not release any portion
thereof to Purchaser, and Purchaser shall not be entitled to any such amount, unless and until Purchaser delivers to Seller, at the sole option of the Protected REIT, (i) an opinion (an “Expense Amount Tax Opinion”) of the
Protected REIT’s tax counsel to the effect that such amount, if and to the extent paid, would not constitute Nonqualifying Income, (ii) a letter (an “Expense Amount Accountant’s Letter”) from the Protected REIT’s
independent accountants indicating the maximum amount that can be paid at that time to Purchaser without causing the Protected REIT to fail to meet the REIT Requirements for any relevant taxable year, or (iii) a private letter ruling issued by
the IRS to the Protected REIT indicating that the receipt of any Expense Amount hereunder will not cause the Protected REIT to fail to satisfy the REIT Requirements (a “REIT Qualification Ruling” and, collectively with an Expense
Amount Tax Opinion and an Expense Amount Accountant’s Letter, a “Release Document”); and (2) pending the delivery of a Release 

  
 44 

 
Document by Purchaser to Seller, Purchaser shall have the right, but not the obligation, to borrow the Expense Amount from the Escrow Account pursuant to a loan agreement (an “Indemnity
Loan Agreement”) reasonably acceptable to Purchaser that (i) requires Seller to lend Purchaser immediately available cash proceeds in an amount equal to the Expense Amount (an “Indemnity Loan”), and (ii) provides
for (A) a commercially reasonable interest rate and commercially reasonable covenants, taking into account the credit standing and profile of Purchaser or any guarantor of Purchaser, including the Protected REIT, at the time of such Loan, and
(B) a 15 year maturity with no periodic amortization. 
 Section 11.02 Indemnification by Purchaser.

 Purchaser shall indemnify, defend and hold Seller, its affiliates and its and their respective directors, managers, officers,
employees, agents, representatives and advisors (the “Seller Indemnitees”) harmless from and shall reimburse the applicable Seller Indemnitee for any Losses suffered or incurred by any Seller Indemnitee which result from:

 (a) Any material breach of a representation or warranty by Purchaser, or non-fulfillment of any covenant or obligation of
Purchaser contained in this Agreement; and 
 (b) Litigation, proceedings, governmental investigations, orders, injunctions or
decrees, the basis for which occurred after the Agreement Date, resulting from any of the items described in Section 11.02(a) above; 
 provided, however, that the applicable Seller Indemnitee has taken all commercially reasonable and appropriate actions to mitigate any such losses, damages, deficiencies, claims, causes of
action or expenses as reasonably requested by Purchaser, which such failure of mitigation shall not relieve Purchaser of its indemnification obligations in this Section 11.02 but may affect the amount of such obligation; and further
provided, that any Losses incurred by the Seller Indemnitee pursuant to any attempt to mitigate any such losses, damages, deficiencies, claims, causes of action or expenses shall be reimbursed by Purchaser as part of its indemnification
obligations in this Section 11.02. Seller shall notify Purchaser promptly after receiving written notice of the assertion of any litigation, proceedings, governmental investigations, orders, injunctions, decrees or any third party claims
subject to indemnification under this Agreement (each, a “Third Party Claim”). Upon receipt of such notice of a Third Party Claim, Purchaser shall have the right to assume the defense of such Third Party Claim using counsel of its
choice reasonably satisfactory to the applicable Seller Indemnitee, but may not enter into any settlement without the prior written consent of Purchaser, which shall not be unreasonably withheld. A Seller Indemnitee shall have the right to select
separate counsel and to otherwise separately defend itself but shall not consent to the entry of a judgment or enter into any settlement with respect to the Third Party Claim without the prior written consent of Purchaser, which consent shall not be
unreasonably withheld. Any exercise of such rights by a Seller Indemnitee shall not relieve Purchaser of its obligations and liabilities under this Section 11.02 or any other provision of this Agreement. With respect to any Third Party
Claim subject to indemnification under this Agreement, the applicable Seller Indemnitee shall be required to cooperate in good faith with Purchaser to ensure the proper and adequate defense of such Third-Party Claim. 

  
 45 

 ARTICLE XII 
 MISCELLANEOUS 
 Section 12.01 Costs and Expenses.

 Purchaser and Seller shall each pay the expenses incurred by it or its affiliates pursuant to the Current Spread Agreement in
connection with the transactions contemplated hereby. 
 Section 12.02 Confidentiality. 

Each Party understands that in connection with this transaction, it has been furnished and will be furnished Non-Public Personal
Information and/or Personally Identifiable Financial Information (as those terms are defined in Sections 573.3(n) and (o) of the Office of Thrift Supervision Regulations on Privacy of Consumer Information published at 12 C.F.R. Chapter V
implementing Title V of the Gramm-Leach-Bliley Act), and other information regarding the policies and plans of the other Party and its affiliates that is and has been designated as confidential and proprietary, and each Party agrees that it will
maintain the confidentiality of such information and will not disclose it to others (except for its affiliates and its and their respective directors, managers, officers, employees, financing sources, agents, representatives and advisors), or use it
except in connection with the proposed acquisition contemplated by this Agreement, without the prior written consent of the Party furnishing such information. Information which is generally known in the industry concerning a Party or among such
Party’s creditors generally or which has been disclosed to the other Party by third parties who have a right to do so shall not be deemed confidential or proprietary information for these purposes. If Purchaser, any of its affiliates or any
officer, director, employee or agent of any of the foregoing is at any time requested or required to disclose any information supplied to it in connection with the transactions contemplated hereby, Purchaser agrees to provide Seller with prompt
notice of such request(s) so that Seller may seek an appropriate protective order and/or waive Purchaser’s compliance with the terms of this Section 12.02. If Seller, any of its affiliates or any officer, director, employee or agent
of any of the foregoing is at any time requested or required to disclose any information supplied to it in connection with the transactions contemplated hereby, Seller agrees to provide Purchaser with prompt notice of such request(s) so that
Purchaser may seek an appropriate protective order and/or waive Seller’s compliance with the terms of this Section 12.02. Notwithstanding the terms of this Section 12.02, if, in the absence of a protective order or the
receipt of a waiver hereunder, Purchaser or Seller is nonetheless, in the opinion of its counsel, compelled to disclose information concerning the other Party to any tribunal or else stand liable for contempt or suffer other censure or penalty,
Purchaser or Seller may disclose such information to such tribunal without liability hereunder. If the proposed acquisition is not consummated, each Party agrees to promptly return to the other, promptly upon request, all confidential materials, and
all copies thereof, which have been furnished to it in connection with the transactions contemplated hereby. For the avoidance of doubt, either Party may provide its shareholders and creditors with a general description of this Agreement and any
related transactions, and, subject to the provisions of this Section 12.02, information obtained from the reports provided by Seller pursuant to Section 8.07. 

  
 46 

 Section 12.03 Broker’s Fees. 

Each party hereto represents and warrants to the other that it has made no agreement to pay any finder’s, agent’s,
broker’s or originator’s fee arising out of or in connection with the subject matter of this Agreement. In the event Purchaser has entered or enters into an agreement to pay any finder’s, agent’s, broker’s, advisor’s or
originator’s fee arising out of or in connection with the subject matter of this Agreement, Purchaser shall be solely responsible for all such fees. The parties hereto shall indemnify and hold each other harmless from and against any such
obligation or liability and any expense incurred in investigating or defending (including reasonable attorneys’ fees) any claim based upon the other party’s actions in connection with such obligation. 

Section 12.04 Relationship of Parties. 
 The Parties intend that the transactions contemplated in the Transaction Documents constitute arms-length transactions among third parties. Nothing contained in the Transaction Documents will establish
any fiduciary, partnership, joint venture or similar relationship between or among the Parties except to the extent otherwise expressly stated therein. 
 Section 12.05 Survival of Representations and Warranties. 
 Each
party hereto covenants and agrees that the representations and warranties in this Agreement, and in any document delivered or to be delivered pursuant hereto, shall survive the Agreement Date and each applicable Assignment Date. 

Section 12.06 Notices. 
 All notices, requests, demands and other communications which are required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been given if personally delivered
or sent by registered or certified mail, return receipt requested, postage prepaid or by prepaid overnight delivery service: 

(a) If to Purchaser, to: 
 Fortress Investment Group 
 1345 Avenue of the Americas 

New York, NY 10105 
 Attn: Brian Sigman 
 Chief Financial Officer 

(212) 479-5343 
 (b) If to Seller, to: 
 Nationstar Mortgage LLC 

350 Highland Drive 
 Lewisville, Texas 75067 
 Attn: Amar Patel 

  
 47 

 or to such other address as Purchaser or Seller shall have specified in writing to the
other. 
 Section 12.07 Waivers. 
 Either Purchaser or Seller may, by written notice to the other: 
 (a) Extend the
time for the performance of any of the obligations or other transactions of the other; and 
 (b) Waive compliance with or
performance of any of the terms, conditions, covenants or obligations required to be complied with or performed by the other hereunder. 
 The waiver by Purchaser or Seller of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any other subsequent breach. 

Section 12.08 Entire Agreement; Amendment. 
 This Agreement and the related Transaction Documents constitute the entire agreement between the parties with respect to the transactions contemplated hereby and supersede all prior agreements with
respect thereto. This Agreement may be amended only in a written instrument signed by both Seller and Purchaser. 
 Section
12.09 Binding Effect. 
 This Agreement shall inure to the benefit of and be binding upon the Parties and their
successors and assigns. Nothing in this Agreement, express or implied, is intended to confer on any Person other than the Parties and their successors and assigns, any rights, obligations, remedies or liabilities. 

Section 12.10 Headings. 
 Headings on the Articles and Sections in this Agreement are for reference purposes only and shall not be deemed to have any substantive effect. 

Section 12.11 Applicable Law. 
 This Agreement shall be construed in accordance with the laws of the State of New York and the obligations, rights and remedies of the parties hereunder shall be determined in accordance with the laws of
the State of New York, except to the extent preempted by Federal law. This Agreement shall constitute a security agreement under the laws of the State of New York. In addition to any other rights available under this Agreement or otherwise available
at law or in equity but subject to the terms hereof, Purchaser shall have all rights and remedies of a secured party with respect to the Collateral under the laws of the State of New York and under any other applicable law to enforce the assignments
and security interests contained herein and, in addition, shall have the right, subject to compliance with any mandatory requirements of applicable law and the terms of this Agreement, to sell or apply any rights and other interests

  
 48 

 
with respect to the Collateral assigned or pledged hereby in accordance with the terms hereof at public and private sale in accordance with the terms of this Agreement. The parties agree to waive
trial by jury in the event of any dispute under this Agreement. 
 Section 12.12 Incorporation of Exhibits.

 The Exhibits attached hereto shall be incorporated herein and shall be understood to be a part hereof as though included in
the body of this Agreement. 
 Section 12.13 Counterparts. 

This Agreement may be executed in counterparts, each of which, when so executed and delivered, shall be deemed to be an original and all
of which, taken together, shall constitute one and the same agreement. 
 Section 12.14 Severability of
Provisions. 
 If any one or more of the covenants, agreements, provisions or terms of this Agreement shall be for any
reason whatsoever held invalid, then such covenants, agreements, provisions or terms shall be deemed severable from the remaining covenants, agreements, provisions or terms of this Agreement and shall in no way affect the validity or enforceability
of the other provisions of this Agreement or of the rights of the parties hereto. 
 Section 12.15 Assignment.

 Seller may not assign, transfer, sell or subcontract all or any part of this Agreement, any interest herein, or any of the
Seller’s interest in the Servicing Spread Collections, other than the interest in the Total Servicing Spread sold hereby, without the prior written consent of Purchaser, provided that any successor to Seller must assume Seller’s
obligations under this Agreement. Purchaser shall have the unrestricted right to further assign, transfer, deliver, hypothecate, pledge, subdivide or otherwise deal with its rights under this Agreement on whatever terms Purchaser shall determine
without the consent of Seller; including the right to assign all or any portion of the Future Excess Servicing Spread and to assign Future Excess Servicing Spread Rights. If Purchaser assigns any rights under this Agreement to a third party (a
“Third Party Assignment”), such third party (a “Third Party Assignee”) shall enter into a new agreement (a “Third Party Future Spread Agreement”) with Seller or Seller’s assignee that provides
such Third Party Assignee with the same rights with respect to the Future Excess Servicing Spread Rights that Purchaser would have had under this Agreement if the Third Party Assignment had not occurred. 

Section 12.16 Termination. 
 If the Current Spread Agreement is terminated on or prior to the Closing Date, this Agreement shall terminate and neither Party shall have any further obligations to the other Party hereunder.

  
 49 

 Section 12.17 Third Party Beneficiaries. 

This Agreement does not and is not intended to confer any rights or remedies upon any person or entity other than Purchaser and Seller,
except as provided in Section 11.01 and in Section 11.02, provided that Purchaser and Seller reserve the right to modify any term of, or terminate, this Agreement, without the consent of any Purchaser Indemnitee or Seller
Indemnitee. 

  
 50 

 IN WITNESS WHEREOF, each of the undersigned parties to this Agreement has caused this
Agreement to be duly executed in its corporate name by one of its duly authorized officers, all as of the date first above written. 
  

			
	 NIC MSR II LLC

	Purchaser
		
	 By:
	 	NIC MSR LLC, as Member
		
	 By:
	 	/s/ Brian Sigman
	 Name:
	 	Brian Sigman
	 Title:
	 	Chief Financial Officer
	
	 NATIONSTAR MORTGAGE LLC

	Seller	 	
		
	 By:
	 	/s/ Amar Patel
	 Name:
	 	Amar Patel
	 Title:
	 	Executive Vice President

  
 51 

 EXHIBIT A 

FORM OF ASSIGNMENT AGREEMENT FOR MORTGAGE LOANS 
 Subject to, and upon the terms and conditions of the Future Spread Agreement for Non-Agency Mortgage Loans, dated as of March 6, 2012 (the “Agreement”), by and between Nationstar
Mortgage LLC, a Delaware limited liability company (together with its successors and assigns, the “Seller”) and NIC MSR II LLC, a Delaware limited liability company (together with its successors assigns, the
“Purchaser”), as may be amended, restated, or otherwise modified and in effect from time to time, Seller hereby assigns, transfers and delivers to Purchaser all of Seller’s right, title and interest in and to Future Excess
Servicing Spread for each of the Mortgage Loans set forth in Annex A attached hereto and all proceeds thereof, and agrees that as of the applicable Assignment Date, the applicable Mortgage Loan shall be deemed to be a “Mortgage Loan” for
all purposes of the Agreement. Capitalized terms used in this Assignment Agreement have the meanings given to such terms in, or incorporated by reference into, the Agreement. 
 In the event (but only in the event) that the conveyance of the Future Excess Servicing Spread is characterized by a court or governmental authority as security for a loan rather than a sale, Seller will
be deemed to have granted to Purchaser, and Seller hereby grants to Purchaser, a security interest in all of its right, title and interest in, to and under the Future Excess Servicing Spread and all proceeds thereof as security for a loan in an
amount of the Purchase Price. 
 All of the terms, covenants, conditions and obligations of the Agreement required to be
complied with and performed by Seller on or prior to the date hereof have been duly complied with and performed in all material respects. 
  

			
	NATIONSTAR MORTGAGE LLC
	 Seller
	 	
		
	 By:
	 	  

	Name:	 	  

	 Title:
	 	  

  
 52 

 Annex A 
 [ATTACH ANNEX A, WHICH MAY BE ON COMPUTER TAPE, COMPACT DISK, OR MICROFICHE, CONTAINING THE INFORMATION SET FORTH BELOW] 

 

																	
	 (a)
	 	 (b)
	 	 (c)
	  	(d)	  	(e)	  	(g)	  	(h)	  	(i)
(column (g) 
–
column (h))	  	(j)
([    ]% of 
column
(i))
	 Refinancing
Date
	 	 Loan #
of
Refinanced
Mortgage
Loan
	 	 Principal
Balance of
Refinanced
Mortgage
Loan
	  	Loan # of
Mortgage
Loan	  	Principal
Balance of
Mortgage
Loan as of the
Assignment
Date	  	Servicing
Fee Rate	  	Base Servicing
Fee Rate	  	Net Servicing Fee
Rate	  	Future
Excess
Servicing
Spread
		 		 		  		  		  		  		  		  	
		 		 		  		  		  		  		  		  	
		 		 		  		  		  		  		  		  	
		 		 		  		  		  		  		  		  	
		 		 		  		  		  		  		  		  	

  
 53 

 EXHIBIT B 

Example of calculations of Maximum Retained Refinancing Loan Amounts 

 

							
	 Recaptured Loan Incentive
	 	 Range of Loans Retained as a Percentage of Total
Recapture

	 3 Month Avg Recapture
	  	Retained
Percentage(1)	 	 Nationstar
	  	 Portfolio

	 35% or Less
	  	0%	 	0.00%	  	100.00%
	 > 35%, <= 40%
	  	25%	 	0.00% to 1.25%	  	100.00% to 98.75%
	 > 40%, <= 45%
	  	30%	 	1.50% to 3.00%	  	98.50% to 97.00%
	 > 45%, <= 50%
	  	35%	 	3.50% to 5.25%	  	96.50% to 94.75%
	 > 50%, <= 55%
	  	40%	 	6.00% to 8.00%	  	94.00% to 92.00%
	 > 55%, <= 60%
	  	45%	 	9.00% to 11.25%	  	91.00% to 88.75%
	 > 60%, <= 65%
	  	50%	 	12.50% to 15.00%	  	87.50% to 85.00%
	 > 65%, <= 70%
	  	50%	 	15.00% to 17.50%	  	85.00% to 82.50%
	 > 70%, <= 75%
	  	50%	 	17.50% to 20.00%	  	82.50% to 80.00%
	 Greater than 75%
	  	50%	 	20.00% to 32.50%	  	80.00% to 67.50%

  

	1 	 Represents the percentage of loans Seller retains above 35% recapture. 

  
 54 

 EXHIBIT C 

SCHEDULE OF MORTGAGE LOANS 
 [SEPARATELY DELIVERED] 

 EXHIBIT D 

SELLER’S OFFICER’S CERTIFICATE (To be supplied on the Closing Date) 

I,                     , a [Vice
President] of Nationstar Mortgage LLC (the “Company”), pursuant to Section 9.07 of the Future Spread Agreement for Non-Agency Mortgage Loans by and between NIC MSR II LLC and the Company, dated as of March 6, 2012
(the “Agreement”), hereby certify on behalf of the Company that: 
 (i) Each of the
Company’s representations and warranties made in the Agreement is true and correct in all material respects as of the date hereof; 
 (ii) All of the terms, covenants, conditions and obligations of the Agreement required to be complied with and performed by the Company at or prior to the date hereof have been duly complied with and
performed in all material respects; 
 (iii) The condition set forth in Section 9.04 have been
satisfied; and 
 (iv) As of the date hereof, the Company has a Consolidated Tangible Net Worth (as defined in
the Agreement) of at least the sum of (x) $150,000,000 and (y) 50% of the proceeds from any issuance of equity by Seller, Nationstar Mortgage Holdings Inc. or any of Seller’s consolidated subsidiaries, and is not in default in any
indebtedness in excess of $10,000,000. 
 IN WITNESS WHEREOF, the undersigned has executed this Certificate as of
[            ] 
  

			
	By:	 	  

 EXHIBIT E 
 PURCHASER’S OFFICER’S CERTIFICATE 
 (To be supplied on the Closing
Date) 
 I,
                    , [POSITION] of NIC MSR LLC, the sole member of NIC MSR II LLC (the “Company”), pursuant to
Section 10.05 of the Future Spread Agreement for Non-Agency Mortgage Loans by and between the Company and Nationstar Mortgage LLC, dated as of March 6, 2012 (the “Agreement”), hereby certify on behalf of the Company
that: 
 (i) Each of the Company’s representations and warranties made in the Agreement is true and correct
in all material respects as of the date hereof; and 
 (ii) All of the terms, covenants, conditions and
obligations of the Agreement required to be complied with and performed by the Company at or prior to the date hereof have been duly complied with and performed in all material respects; and 

(iii) The condition set forth in Section 10.04 have been satisfied. 

IN WITNESS WHEREOF, the undersigned has executed this Certificate as of
[            ]. 
  

			
	NIC MSR II LLC
		
	 By:
	 	NIC MSR LLC, as member
		
	By:	 	  

 EXHIBIT F 
 LOCATION OF CREDIT FILES 
 350 Highland Drive Lewisville, Texas 75067

 EXHIBIT G 
 FORM OF SUMMARY REMITTANCE REPORT 
 [SEPARATELY DELIVERED] 

 EXHIBIT H 
 FORM OF DELINQUENCY REPORT 
 [SEPARATELY DELIVERED] 

 EXHIBIT I 

FORM OF DISBURSEMENT REPORT 
 [SEPARATELY DELIVERED] 

 EXHIBIT J 

SELLER JURISDICTIONS AND RECORDING OFFICES 
 Chief Executive Office: 
 350 Highland Drive 

Lewisville, Texas 75067 

Recording Office: 
 Secretary of
State, State of DelawareBP Plan 2011

 Exhibit 4.2 
 BP p.l.c. 
 RULES OF THE BP PLAN 2011 

 

			
	Adoption:	  	7 September 2011

 Table of Contents 

 

							
	Contents	  	Page	 
			
	 1
	 	 Grant of Options
	  	 	1	  
			
	 2
	 	 Option Price
	  	 	2	  
			
	 3
	 	 Adjustment of Options
	  	 	2	  
			
	 4
	 	 Exercise and lapse – general rules
	  	 	3	  
			
	 5
	 	 Exercise and lapse in other circumstances – personal events
	  	 	4	  
			
	 6
	 	 Exercise and lapse in other circumstances – corporate events
	  	 	5	  
			
	 7
	 	 Exchange of Options
	  	 	6	  
			
	 8
	 	 Exercise of Options
	  	 	7	  
			
	 9
	 	 General
	  	 	9	  
			
	 10
	 	 Changing the Plan and termination
	  	 	11	  
			
	 11
	 	 Governing law and jurisdiction
	  	 	11	  
			
	 12
	 	 Meanings of words used
	  	 	11	  
		
	 Schedule 1
	  	 	14	  

 Rules of the BP Plan 2011 

 

	1	Grant of Options 

  

	1.1	Grant of Options 

  

	 	1.1.1	The Designated Corporate Officer may resolve to grant to any Eligible Employee an Option to acquire such number of Shares as the Designated Corporate Officer may
determine. 

  

	 	1.1.2	Unless the Designated Corporate Officer decides otherwise in any particular case, Options must not be granted to an Eligible Employee who has given or received notice
of termination of employment with a Member of the Group, whether or not such termination is lawful. 

  

	1.2	Time when Options may be granted 

 Options may be granted at any time, subject to the application of Dealing Restrictions. 
  

	1.3	Conditions 

 When granting
an Option, the Designated Corporate Officer may make its exercise conditional on the satisfaction of any condition(s). Conditions may be different for different Optionholders. If conditions apply, an Optionholder will be notified of the conditions
in such manner as the Designated Corporate Officer decides. Any condition must be specified at the Date of Grant and may provide that an Option will lapse if it is not satisfied. The Designated Corporate Officer may waive or change a condition in
any way he sees fit. 
  

	1.4	Notification of grant of Options 

 The Designated Corporate Officer will notify the grant of Options to Optionholders in such manner as he determines. 
  

	1.5	No payment 

 Optionholders
are not required to pay for the grant of any Option. 
  

	1.6	Disclaimer of Option 

 Any
Optionholder may disclaim all or part of his Option within 80 days after the Date of Grant by notice in writing to the Company. If this happens, the Option will be deemed never to have been granted under the Plan. Optionholders are not required to
pay for the disclaimer. 
  

	1.7	Restriction on disposal of interests and hedging 

  

	 	1.7.1	Subject to rule 1.7.2, an Optionholder may not sell, transfer, assign, hedge, charge or otherwise dispose of an Option (or part of or any interest in an Option) and
must not enter into any transaction which transfers the risk of price movements with regard to the Shares subject to an Option. If he does, whether voluntarily or involuntarily, then the Designated Corporate Officer may determine that the whole of
the Option lapses. 

  

	 	1.7.2	Rule 1.7.1 does not apply: 

  

	 	(i)	to the transmission of an Option on the death of an Optionholder to his personal representatives; or 

  
  

1 

	 	(ii)	to the assignment of an Option, with the prior consent of the Designated Corporate Officer, subject to any terms and conditions the Designated Corporate Officer
imposes. 

  

	1.8	Issue of Shares 

 Shares
may not be issued or transferred from treasury to satisfy Options without prior approval of this Plan by shareholders of the Company. 
  

	1.9	Options over ADSs 

 The
Designated Corporate Officer may decide to grant options in the form of an Option to acquire ADSs and references in these rules Share, Option, Price etc. shall be construed accordingly. Upon the exercise of any Option to acquire ADSs the Company
will make arrangements for the Optionholder to acquire ADSs. 
  

	2	Option Price 

  

	2.1	Setting the Option Price 

The Option Price will be not less than the Market Value of a Share on the Date of Grant. 

 

	2.2	Market Value 

“Market Value” on any particular day means: 

 

	 	(i)	the closing middle market quotation of a Share (taken from the Daily Official List of the London Stock Exchange) on the immediately preceding Business Day or, in the
case of an ADS listed on the New York Stock Exchange, the closing price quoted on the New York Stock Exchange for that preceding Business Day; or 

  

	 	(ii)	if the Designated Corporate Officer so decides, the average of the closing middle market quotations of a Share (taken from the Daily Official List of the London Stock
Exchange) or, in the case of an ADS listed on the New York Stock Exchange, the closing price quoted on the New York Stock Exchange, over the immediately preceding three or five Business Days; 

 

	3	Adjustment of Options 

  

	3.1	Power to adjust 

 If there
is: 
  

	 	(i)	a variation in the equity share capital of the Company, including a capitalisation or rights issue, sub-division, consolidation or reduction of share capital;

  

	 	(ii)	a demerger (in whatever form) or exempt distribution by virtue of Section 1075 of the Corporation Taxes Act 2010; 

 

	 	(iii)	a special dividend or distribution 

 the Designated Corporate Officer may adjust the number of Shares comprised in each Option and the Option Price in any way (including retrospective adjustments) which the Designated Corporate Officer
considers appropriate. 

  
  

2 

	3.2	Nominal value 

 The Option
Price may not be adjusted to a price less than the nominal value of a Share. 
  

	3.3	Notice 

 The Designated
Corporate Officer may notify Optionholders of any adjustment made under this rule 3. 
  

	4	Exercise and lapse – general rules 

  

	4.1	Exercise 

 An Optionholder
may exercise his Option at any time during the Option Period (subject to any Dealing Restriction) following Vesting and subject to any conditions being satisfied in accordance with rule 1.3. 

 

	4.2	Lapse 

 An Option will
lapse at the end of the Option Period or, if earlier, on the earliest of: 
  

	 	4.2.1	the date the Optionholder ceases to be an employee; 

  

	 	4.2.2	the end of the last day on which the Option can be exercised in any circumstance referred to in rules 5.1, 5.2, 5.3 or 6; or 

 

	 	4.2.3	the date when any circumstance referred to in rule 1.7, occurs. 

  

	4.3	Priority 

 If an Option
becomes exercisable under more than one provision of the rules of the Plan, the provision which results in the shortest Exercise Period of the Option will prevail. 
  

	4.4	Forfeiture 

  

	 	4.4.1	Notwithstanding any other rules of the Plan (including, without limitation, rules 5.1, 5.2 or 5.3), if the Designated Corporate Officer determines that an Optionholder
has engaged in personal conduct (including, but not limited to, a violation of the BP Code of Conduct) which the Designated Corporate Officer considers was contrary to the legitimate expectations of the Company for an employee in the
Optionholder’s position then the Designated Corporate Officer may reduce the number of Shares subject to an Option (including to zero) or if an Option has already been exercised but Shares have not yet been transferred (because of, for example,
any Dealing Restrictions), transfer to the Optionholder a reduced number of Shares or no Shares at all. 

  

	 	4.4.2	Where an Optionholder has ceased to be an employee but has retained his Option as a consequence of rule 5.1, the Designated Corporate Officer retains the right to lapse
his Option if, prior to the Option being exercised, the Optionholder joins a Competitor Organisation of any Member of the Group within 12 months of ceasing to be an employee. The Designated Corporate Officer will have the sole discretion to
determine the definition of “Competitor Organisation”. 

  

	4.5	Ceasing to be an employee 

For the purposes of these rules, an Optionholder will not be treated as ceasing to be an employee of a Member of the Group: 

 

	 	4.5.1	until he ceases to be an employee of all Members of the Group; or 

  
  

3 

	 	4.5.2	unless the Designated Corporate Officer decides otherwise, if he recommences employment with, or becomes a director of, a Member of the Group within seven days.

  

	5	Exercise and lapse in other circumstances – personal events 

 This rule 5 sets out exceptions to the general rules of exercise and lapse in rule 4. 
  

	5.1	Leaving in exceptional circumstances 

  

	 	5.1.1	If an Optionholder ceases to be an employee for any of the reasons set out below at least one year after the Date of Grant, his Options will not lapse and he may
exercise them in accordance with rule 5.1.2. The reasons are: 

  

	 	(i)	redundancy; 

  

	 	(ii)	ill-health, injury, disability; 

  

	 	(iii)	the Optionholder’s employing company ceasing to be a Member of the Group; 

 

	 	(iv)	a transfer of the undertaking, or the part of the undertaking, in which the Optionholder works to a person which is neither under the Control of the Company nor a
Member of the Group; and 

  

	 	(v)	any other reason, if the Designated Corporate Officer so decides in any particular case. 

 

	 	5.1.2	Where rule 5.1.1 applies, if the Optionholder ceases to be an employee: 

  

	 	(i)	before Vesting, he may exercise his Option within one year of Vesting, 

  

	 	(ii)	on or after Vesting, he may exercise his Option within one year of the date he ceases to be an employee. 

The Option is only exercisable to the extent that any condition has been satisfied. 

 

	 	5.1.3	In addition, if either of rules 5.1.1(i), 5.1.1(iii) or 5.1.1(iv) apply unless the Designated Corporate Officer decides otherwise, the extent to which the Option is
exercisable will be reduced pro rata to reflect any period during which the Optionholder was not an employee between the Date of Grant and Vesting. 

  

	 	5.1.4	The Designated Corporate Officer must exercise any discretion provided for in rule 5.1.1(v) within 80 days after cessation of the relevant Optionholder’s
employment. If the Designated Corporate Officer allows an Optionholder to exercise his Option in accordance with rule 5.1.1(v) he will set the period during which the Option can be exercised but this may not be longer than one year from the date the
Optionholder ceases to be an employee, unless the Designated Corporate Officer determines otherwise in any particular case. The Designated Corporate Office may also impose any other conditions. 

 

	5.2	Death 

 If an Optionholder
dies, his Options may be exercised by his personal representatives in full up to one year from his death. 

  
  

4 

	5.3	Career breaks 

  

	 	5.3.1	If an Optionholder is on a Career Break on the date that his Option would Vest under the Plan, then unless the Designated Corporate Officer determines otherwise
in any particular case, the Option will only become exercisable after the Designated Corporate Officer determines that the Optionholder has returned to normal employment at the end of the Career Break and has continued to be in his normal employment
for a period of three months from the date of return, and in that period has not given or received notice of termination of employment. 

  

	 	5.3.2	Unless any of the reasons set out in rules 5.1, 5.2 or 6 apply, if the Optionholder ceases to be an employee of any Member of the Group before having returned to
normal employment at the end of the Career Break or during the three month period referred to in rule 5.3.1, then his Option will lapse on cessation of employment. If any of the reasons set out in rules 5.1, 5.2 or 6 do apply, his Option will become
exercisable in accordance with those rules. 

  

	5.4	Overseas transfer 

 This
rule applies if an Optionholder is transferred to work in another country, and, as a result of that transfer, the Optionholder may either: 
  

	 	5.4.1	suffer a tax disadvantage in relation to his Options (this being shown to the satisfaction of the Designated Corporate Officer); or 

 

	 	5.4.2	become subject to restrictions on his ability to exercise his Options or to hold or deal in the Shares or the proceeds of the sale of the Shares acquired on
exercise because of the security laws or exchange control laws of the country to which he is transferred. 

 If the
Optionholder continues to hold an office or employment with a Member of the Group, the Designated Corporate Officer may permit the Optionholder to exercise the Option to such extent as he determines and during the period starting three months before
and ending three months after the transfer takes place. If the Optionholder does not exercise his Options, following this rule 5.4, the usual exercise rules will apply to him at the appropriate times. 

 

	6	Exercise and lapse in other circumstances – corporate events 

  

	6.1	Takeovers 

  

	 	6.1.1	This rule 6.1 does not apply if Options are to be replaced in accordance with rule 6.4. 

 

	 	6.1.2	This rule applies where a person (or a group of persons acting in concert) obtains Control of the Company as a result of making an offer to acquire Shares.

  

	 	6.1.3	When this rule applies, Options may be exercised (subject to any condition set in accordance with rule 1.3) until the earlier of: 

 

	 	(i)	the date six months after the date on which the person making the offer has obtained Control of the Company; and 

 

	 	(ii)	six weeks after the date on which a notice to acquire Shares under Section 979 of the Companies Act 2006 or any other equivalent local legislation is first served.

  
  

5 

	6.2	Company reconstructions 

  

	 	6.2.1	This rule does not apply if Options are to be replaced in accordance with rule 6.4. 

 

	 	6.2.2	This rule applies when, under Section 899 of the Companies Act 2006 or any other equivalent local legislation: 

 

	 	(i)	a court sanctions a compromise or arrangement in connection with the acquisition of Shares; or 

 

	 	(ii)	there is any other local equivalent to that sanction procedure. 

  

	 	6.2.3	When this rule applies, Options may be exercised (subject to any condition set in accordance with rule 1.3) within six months after the date of the sanction. Any Option
not so exercised will lapse at the end of that period. 

  

	6.3	Demergers and other significant distributions 

 This rule does not apply if Options are to be replaced in accordance with rule 6.4. 

If the Designated Corporate Officer becomes aware that the Company is or is expected to be affected by any demerger, dividend in
specie, super dividend or other transaction not falling within rule 6.1 or 6.2 which, in the opinion of the Designated Corporate Officer, would affect the current or future value of any Option, the Designated Corporate Officer may, acting
fairly, reasonably and objectively, in his discretion, allow some or all Options to be exercised (subject to any condition set in accordance with rule 1.3). The Designated Corporate Officer will specify the period of exercise of such Options,
whether the Options will lapse at the end of the period 
 The Designated Corporate Officer will notify any Optionholder who is
affected by the Designated Corporate Officer exercising his discretion under this rule. 
  

	6.4	Mergers and reorganisations 

 If, as a result of events specified in rules 6.1 to 6.2.3, a company (the “Acquiring Company”) obtains Control of the Company and: 

 

	 	6.4.1	the shareholders of the Acquiring Company, immediately after it has obtained Control, are substantially the same as the shareholders of the Company before then; or

  

	 	6.4.2	the obtaining of Control is pursuant to a merger with the Company; and 

  

	 	6.4.3	the Company and the Acquiring Company consent to the replacement of Options under this rule 6.4, 

then Options will not become exercisable. Instead, all rights under the Plan will be replaced in accordance with rule 7.3.

  

	6.5	Designated Corporate Officer 

 In rules 6.1, 6.2 and 6.2.3, “Designated Corporate Officer” means the person who was the Designated Corporate Officer immediately before the relevant event. 

 

	7	Exchange of Options 

  

	7.1	Application 

 This rule 7
applies to all Options if any of the following occur: 
  

	 	7.1.1	a person (or a group of persons acting in concert) has obtained Control of the Company as a result of making an offer to acquire Shares; 

  
  

6 

	 	7.1.2	a court sanctions a scheme of arrangement under Section 899 of the Companies Act 2006 (or equivalent local legislation) in connection with the acquisition of
Shares or there is a local equivalent to that sanction procedure; 

  

	 	7.1.3	any person becomes entitled or bound to acquire Shares under Section 981 of the Companies Act 2006 (or equivalent legislation); or 

 

	 	7.1.4	the Company and the Acquiring Company consent to the replacement of Options in accordance with rule 6.4. 

 

	7.2	Agreement to exchange 

 If
this rule 7 applies, Options may be exchanged during the period of six months after the relevant event and with the agreement of the company offering the exchange. 
  

	7.3	Exchange terms 

 Where an
Option is to be exchanged, the Optionholder will be granted a new option to replace it. 
 Where an Optionholder is granted a new
option: 
  

	 	7.3.1	the new option will be in respect of shares in any body corporate determined by the company offering the exchange; 

 

	 	7.3.2	the new option will be equivalent to the Option that was exchanged; 

  

	 	7.3.3	the new option will be treated as having been acquired at the same time as the Option that was exchanged and will be exercisable in the same manner and at the same
time; 

  

	 	7.3.4	the new option will be subject to the rules as they last had effect in relation to the Option that was exchanged; and 

 

	 	7.3.5	with effect from the exchange, the rest of the rules will be construed in relation to the new option as if references to Shares were references to the shares over which
the new option is granted and references to the Company were references to the body corporate determined under rule 7.3.1. 

  

	8	Exercise of Options 

  

	8.1	Exercise 

 An Optionholder
can exercise his Option validly only in the way described in, and subject to, this rule 8. 
  

	8.2	Part exercise 

 Subject to
any other restriction in the rules, an Option may be exercised in respect of all the Shares under the Option or only some of those Shares. The Designated Corporate Officer may set a minimum limit in respect of which an Option can be exercised.

  

	8.3	Manner of exercise 

Options must be exercised in a form specified by the Company and must be accompanied by correct payment in full of the Option Price for
the number of Shares being acquired or details of arrangements agreed between the Optionholder and the Company made for the payment of the Option Price for the number of Shares being acquired. 

  
  

7 

	8.4	Option exercise date 

  

	 	8.4.1	Subject to rules 8.4.2, the “Option Exercise Date” will be the date of receipt by the Company or other duly appointed agent of the notice and, if
appropriate, documents and the payment referred to in rule 8.3. 

  

	 	8.4.2	If an option exercise notice is delivered at a time when there is a Dealing Restriction, the Option Exercise Date will be the date when the Optionholder is permitted to
exercise an Option following the lifting of such Dealing Restriction provided, however, this rule does not extend any period in which an Option is exercisable. 

 

	 	8.4.3	If an Option lapses before the Option Exercise Date, any attempted exercise of that Option is invalid. No employee has any right to compensation if an Option becomes
exercisable under the Plan but lapses before the Option Exercise Date. 

  

	8.5	Transfer of Shares 

Subject to rule 8.7 (Consents) following the exercise of an Option, the Designated Corporate Officer will procure that the Shares
are transferred to the Optionholder within 30 days of the Option Exercise Date. 
  

	8.6	Rights 

 Optionholders
will be entitled to all rights attaching to the Shares by reference to a record date on or after the transfer date. They will not be entitled to rights before that date. 

 

	8.7	Consents 

 All transfers
of Shares will be subject to any necessary consents under any relevant enactments or regulations for the time being in force in the United Kingdom or elsewhere. 
  

	8.8	Articles of association 

Any Shares acquired on the exercise of Options are subject to the articles of association of the Company from time to time in force.

  

	8.9	Cash alternative 

 The
Designated Corporate Officer may at any time determine not to procure the transfer of Shares to an Optionholder who exercises his Option, but instead to pay to him (subject to the withholding provisions in rule 8.10) a cash amount. This cash amount
must be equal to the amount by which the market value of the Shares in respect of which the Option is exercised exceeds the Option Price. Alternatively, the Designated Corporate Officer may procure the transfer of Shares to the value of that cash
amount. If the Designated Corporate Officer so determines, the Optionholder need not pay the Option Price or, if he has paid it, the Company will repay the Option Price to him. 

 

	8.10	Withholding, deduction and offsets 

  

	 	8.10.1	Any Member of the Group, duly appointed agent or trustee of any employee benefit trust may withhold such amount and make such arrangements as it considers
necessary to meet any liability to taxation or social security contributions in respect of Options. These arrangements may include the sale or reduction in number of any Shares or the Optionholder discharging the liability himself.

  
  

8 

	 	8.10.2	In addition, it shall be a condition of exercise that any Member of the Group, duly appointed agent or trustee may deduct from and set off against the Shares
(whether payable in cash or Shares and whenever payable) any debt, obligation, liability, or other amount owed by the Optionholder to a Member of the Group, including but not limited to amounts under an expatriate tax policy (as currently in effect
or as amended from time to time), or amounts advanced on behalf of the Optionholder with respect to employment taxes, as determined in the sole discretion of the Designated Corporate Officer. 

 

	9	General 

  

	9.1	Notices 

  

	 	9.1.1	Any notice or other document which has to be given to an Eligible Employee or Optionholder under or in connection with the Plan may be: 

 

	 	(i)	delivered or sent by post to him at his home address according to the records of the Member of the Group employing him; 

 

	 	(ii)	sent by e-mail or fax to any e-mail address or fax number which according to the records of the Member of the Group is used by him; or 

 

	 	(iii)	posted on the Company’s website 

 or in the case of (i) or (ii) above, such other address which the Company considers appropriate. 
  

	 	9.1.2	Any notice or other document which has to be given to the Company or other duly appointed agent under or in connection with the Plan may be delivered or sent by post to
it at its respective registered office (or such other place as the Designated Corporate Officer or duly appointed agent may from time to time decide and notify to Optionholders) or sent by e-mail or fax to any e-mail address or fax number notified
to the sender. 

  

	 	9.1.3	Notices sent by post will be deemed to have been given on the earlier of the date of actual receipt and the second day after the date of posting. However, notices sent
by or to an Optionholder who is working overseas will be deemed to have been given on the earlier of the date of actual receipt and the seventh day after the date of posting. 

 

	 	9.1.4	Notices sent by e-mail or fax, in the absence of evidence of non-delivery, will be deemed to have been received on the day after sending. 

 

	9.2	Documents sent to shareholders 

 The Company, if it considers appropriate, may send to Optionholders copies of any documents or notices normally sent to the holders of its Shares at or around the same time as issuing them to the holders
of its Shares. 
  

	9.3	Designated Corporate Officer’ decisions final and binding 

 The decision of the Designated Corporate Officer on the interpretation of the rules or in any dispute relating to an Option or matter relating to the Plan will be final and conclusive. 

  
  

9 

	9.4	Costs 

 The Company will
pay the costs of introducing and administering the Plan. The Company may ask an Optionholder’s employer to bear the costs in respect of an Option granted to that Optionholder. 

 

	9.5	Regulations 

 The
Designated Corporate Officer has the power from time to time to make or vary regulations for the administration and operation of the Plan, but these must be consistent with the rules. 

 

	9.6	Terms of employment 

  

	 	9.6.1	For the purposes of this rule, “Employee” means any employee of a Member of the Group. 

 

	 	9.6.2	This rule 9.6 applies during an Employee’s employment and after the termination of an Employee’s employment, whether or not the termination is lawful.

  

	 	9.6.3	Where a contract of employment exists for an Optionholder, nothing in the rules or the operation of the Plan forms part of the contract of employment of an Employee.
Where no contract of employment exists, nothing in the rules or the operation of the Plan creates in whole or in part a contract of employment. The rights and obligations arising from the employment relationship between the Employee and his employer
are separate from, and are not affected by, the Plan. Participation in the Plan does not create any right to, or expectation of, continued employment. 

  

	 	9.6.4	No employee has a right to participate in the Plan. Participation in the Plan or the grant of Options on a particular basis in any year does not create any right to or
expectation of participation in the Plan or the grant of Options on the same basis, or at all, in any future year. 

  

	 	9.6.5	The terms of the Plan do not entitle the Employee to the exercise of any discretion in his favour. 

 

	 	9.6.6	The Employee will have no claim or right of action in respect of any decision, omission or discretion which may operate to the disadvantage of the Employee even if it
is unreasonable, irrational or might otherwise be regarded as being in breach of the duty of trust and confidence (and/or any other implied duty) between the Employee and his employer. 

 

	 	9.6.7	No Employee has any right to compensation for any loss in relation to the Plan, including any loss in relation to: 

 

	 	(i)	any loss or reduction of rights or expectations under the Plan in any circumstances (including lawful or unlawful termination of employment); 

 

	 	(ii)	any exercise of a discretion or a decision taken in relation to an Option or to the Plan, or any failure to exercise a discretion or take a decision; or

  

	 	(iii)	the operation, suspension, termination or amendment of the Plan. 

  

	 	9.6.8	Participation in the Plan is permitted only on the basis that the Optionholder accepts all the provisions of the rules, including this rule 9.6. By participating in the
Plan, an Employee waives all rights under the Plan, other than the right to exercise an Option subject to and in accordance with the express terms of the rules. 

  
  

10 

	 	9.6.9	Nothing in this Plan confers any benefit, right or expectation on a person who is not an Employee. No such third party has any rights under the Contracts (Rights of
Third Parties) Act 1999 to enforce any term of this Plan. This does not affect any other right or remedy of a third party which may exist. 

  

	9.7	Employee trust 

 The
Company and any Member of the Group may provide money to the trustee of any trust or any other person to enable them or him to acquire shares to be held for the purposes of the Plan, or enter into any guarantee or indemnity for those purposes, to
the extent permitted by Section 682 of the Companies Act 2006. 
  

	9.8	Data protection 

 By
participating in the Plan, the Optionholder consents to the holding and processing of personal data provided by the Optionholder to any Member of the Group, trustee or third party service provider for all purposes relating to the operation of the
Plan. These include, but are not limited to: 
  

	 	9.8.1	administering and maintaining Optionholder records; 

  

	 	9.8.2	providing information to Members of the Group, trustees of any employee benefit trust, registrars, brokers or third party administrators of the Plan;

  

	 	9.8.3	providing information to future purchasers of the Company or the business in which the Optionholder works; and 

 

	 	9.8.4	transferring information about the Optionholder to a country or territory outside the European Economic Area that may not provide the same statutory protection for the
information as the Optionholder’s home country. 

  

	10	Changing the Plan and termination 

  

	10.1	Designated Corporate Officer’s powers 

 The Designated Corporate Officer may change or terminate the Plan at any time with or without prior notification to the Optionholders. However, Options granted before such termination will continue to be
valid and will be exercisable as described in these rules. 
  

	10.2	Notice 

 The Designated
Corporate Officer may give written notice of any changes made to or termination of the Plan to any Optionholder affected. 
  

	11	Governing law and jurisdiction 

 English law governs the Plan and all Options and their construction. The English courts have non-exclusive jurisdiction in respect of disputes arising under or in connection with the Plan or any Option.

  

	12	Meanings of words used 

In these rules: 

“ADS” means an American depositary share representing ordinary shares of the Company; 

  
  

11 

 “Business Day” means a day on which the London Stock Exchange (or, if
relevant and if the Designated Corporate Officer determines, any stock exchange nominated by the Designated Corporate Officer on which the Shares are traded) is open for the transaction of business; 

“Career Break” means an extended period of unpaid leave from normal work, without ceasing to be an employee or director
of any Member of the Group, with the agreement of the Company and which is designated by the Designated Corporate Officer as a Career Break for the purposes of these rules; 
 “Company” means BP p.l.c.; 
 “Control” has the
meaning given to it by Section 995 of the Income Tax Act 2007; 
 “Date of Grant” means the date which the
Designated Corporate Officer sets for the grant of an Option; 
 “Dealing Restrictions” means restrictions
imposed by statute, order, regulation or Government directive, or by the Model Code or any code adopted by the Company based on the Model Code and for this purpose the Model Code means the Model Code on dealings in securities set out in Listing Rule
9, annex 1 (of the London Stock Exchange), as varied from time to time; 
 “Designated Corporate Officer” means
the Group Chief Executive or other appropriate Corporate Officer or employee authorised under BP’s System of Internal Control and associated delegations; 
 “Eligible Employee” means any person who is an employee of a Member of the Group but excludes an executive director of the Company; 

“Exercise Period” means the period between the vesting of an Option and its lapse. 

“Listing Rules” means the rules relating to admission to the Official List; 

“London Stock Exchange” means London Stock Exchange plc or its successor; 

“Member of the Group” means: 
  

	 	(i)	the Company; 

  

	 	(i)	its Subsidiaries from time to time; or 

  

	 	(ii)	any other company which is associated with the Company and is so designated by the Designated Corporate Officer; 

“Model Code” means the Model Code on dealings in securities set out in Listing Rule 9, annex 1; 

“Official List” means the list maintained by the Financial Services Authority for the purpose of section 74(1) of the
Financial Services and Markets Act 2000; 
 “Option” means a right to acquire Shares granted under the Plan
which is subject to the rules; 
 “Optionholder” means a person holding an Option or his personal
representatives; 
 “Option Period” means a period starting on the Date of Grant of an Option and ending at the
end of the day before the tenth anniversary of the Date of Grant, or such shorter period as may be specified on the Date of Grant; 

  
  

12 

 “Option Price” means the amount payable for each Share on the exercise of
an Option calculated as described in rule 2; 
 “Plan” means these rules known as “The BP Plan 2011”,
as changed from time to time; 
 “Regulatory Information Service” means a service that is approved by the
Financial Services Authority as meeting the Primary Information Provider criteria and is on the list of Regulatory Information Services maintained by the Financial Services Authority; 

“Shares” means fully paid ordinary shares in the capital of the Company; 

“Subsidiary” means a company which is a subsidiary of the Company within the meaning of Section 1159 of the
Companies Act 2006; and 
 “Vesting” means the date on which an Option ordinarily becomes exercisable as set by
the Designated Corporate Officer on the Date of Grant and “Vest” shall be construed accordingly. 

  
  

13 

 Schedule 1 
 US 
 This United States (“US”) Schedule has been adopted by the Company and shall
vary the terms of the Plan (and any other related documents) accordingly for all US Optionholders. For the purposes of this Schedule 1, a “US Optionholder” means an Optionholder who is: 

 

	(i)	a US citizen; 

  

	(ii)	a US permanent resident (as may be evidenced by a so-called “green card” and/or participation in a US tax-qualified pension plan sponsored by a Member
of the Group); 

  

	(iii)	a non-US citizen who is posted to the United States as of a Vesting Date and who is (or expected to become) subject to US taxation as a resident alien; or

  

	(iv)	a non-US citizen subject to US taxation, including a non-resident alien taxpayer of the United States, but only to the extent that his or her grant, Vesting or Exercise
of Options, in whole or in part, is deemed to be income from a US source subject to taxation under the Internal Revenue Code of 1986, as amended (the “Code”). 

 Rule 1.3 shall be varied by adding the following: 
 For purposes of Rule 1.3, the Designated
Corporate Officer may not waive or change conditions for a US Optionholder in a manner which would waive or change Rules 4.2 and/or 4.4.1. 

Rule 1.7.2(ii) shall be varied by removing the following: 
 Rule 1.7.2 (ii): This subsection shall not apply. 
 Rule 2.2 shall be varied by adding the
following: 
 If such an average is used for Options granted to US Optionholders, the Designated Corporate Officer shall designate the US
Optionholder receiving the Options, the number of Shares or ADSs subject to the Options and the method for determining the Option Price, including the period over which the averaging will occur, before the beginning of the specified averaging
period. 
 Rule 3.1 shall be varied by adding the following: 
 The Designated Corporate Officer may, in his/her discretion, modify such adjustment with respect to Options held by US Optionholders to the extent necessary to avoid non-compliance with Section 409A
of the Code. 
 Rule 5.1.1 shall be replaced in its entirety to read as follows: 

 

	5.1.1	Leaving in exceptional circumstances 

 If a US Optionholder ceases to be employed by any Member of the Group before the Vesting date but at least one year after the Date of Grant for any of the reasons set out below, his Options do not lapse
and will Vest on the Vesting date and can be exercised as provided in 5.1.2. The reasons are: 
 (i) Disability. For the purposes
of this Rule, a US Optionholder will be considered Disabled if he is (a) unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can
be expected to last for a continuous period of not less than 12 months; or (b) by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of
not less 

  
  

14 

 
than 12 months, receiving income replacement benefits for a period of not less than 3 months under an accident and health plan covering employees of a Member of the Group; or (c) otherwise
disabled within the meaning of Section 409A of the Code; 
 (ii) a US Optionholder’s involuntary termination of
employment with any Member of the Group, other than due to such Optionholder’s conduct or performance. For avoidance of doubt, the following circumstances will be considered an involuntary termination of employment: (a) termination of a US
Optionholder’s employment by his or her employer with no anticipated return to employment with a Member of the Group, or a termination considered by the Designated Corporate Officer to have been initiated by the US Optionholder’s employer
with no anticipated return to employment with a Member of the Group, in both cases where the termination is not based on the US Optionholder’s conduct or performance; or (b) termination of a US Optionholder’s employment as a result of
a Change in Control. A transfer of employment from one Member of the Group to another will not be considered a termination of employment, nor will a reduction in hours, unless such is considered an involuntary termination of employment within the
meaning of Section 409A of the Code. 
 Rule 5.1.3 shall be replaced in its entirety to read as follows: 

In addition, if rule 5.1 of this US schedule applies, the extent to which the Option is exercisable will be reduced pro rata to reflect any period during
which the Optionholder was not an employee between the Date of Grant and Vesting. 
 Rule 5.1.4 shall be varied as follows: 

Rule 5.1.4 shall not apply 
 Rule 5.2 shall
be varied by adding the following: 
 In relation to any deceased US Optionholder, an Option may not be exercised under this rule 5.2 until
all relevant US securities filings have been made and any other relevant US securities laws’ requirements have been satisfied in respect of the Plan. 
 Rule 5.3 shall be varied by adding the following: 
 Rule 5.3 is not intended to be applied
to a Optionholder who is considered a US Optionholder. If applicable non-US law requires the general application of Rule 5.3 to any US Optionholder, Rule 5.3 will be applied in a manner consistent with the provisions of Rule 5.1 of this US
Schedule. 
 Rule 5.4 shall be varied by adding the following: 
 Rule 5.4 is not intended to be applied to a US Optionholder. 
 Rule 6 shall be varied by adding
the following: 
 This Rule 6 will only apply to US Optionholders and Options issued to them when there is a Change in Control, as defined
herein. 
 Rule 7 shall be varied by adding the following: 
 This Rule 7 will only apply to US Optionholders and Options issued to them when there is a Change in Control, as defined herein. 
 Rule 7.3 shall be varied by adding the following: 
 The Designated Corporate Officer may, in
his/her discretion, modify the terms of any exchange made under the Rule 7 with respect to Options held by US Optionholders ot the extent necessary to avoid non-compliance with Section 409A of the Code. 

  
  

15 

 Rule 9.2 shall be varied as follows: 
 The Company will send to US Optionholders copies of any documents or notices required to be sent to US Optionholders in accordance with the rules and regulations of the US securities laws. 

Rule 9.7 shall be varied as follows: 

Rule 9.7 shall not apply, but only to avoid non-compliance with Section 409A of the Code. 
 Rule 11 shall be varied by adding the following: 
  

	11	Governing law and jurisdiction 

  

	11.1	Compliance with Section 409A and Other Applicable Laws 

 To the extent that the grant of Options results in the deferral of compensation under Section 409A of the Code: (i) the intent of all terms used by the Plan is to comply with Section 409A
and its implementing regulations, as currently in effect or as hereafter may be amended; (ii) for US Optionholders the delivery of Shares or other property will not occur until the earliest date permitted under Section 409A(a)(2) and
(a)(3) of the Code; and (iii) the Plan shall be unfunded for the purposes of Section 409A of the Code. 

Notwithstanding any provision of this Plan to the contrary, including but not limited to rule 10.1 the Designated Corporate Officer may
amend or terminate the grant, Vesting and/or exercise of Options under this Plan at any time and without prior notice if he determines in his sole discretion that such action is necessary or advisable to avoid or mitigate potential non-compliance
with applicable law or if compliance would create unreasonable administrative burdens. If the terms of a grant, Vesting or exercise of Options are amended or terminated, the Company is under no obligation to provide any consideration or remuneration
in lieu of the grant, Vesting and/or exercise of Options. 
 All taxes, penalties, or interest imposed on any Optionholder due to
any failure to comply with Section 409A of the Code or other tax rule shall be the Optionholder’s responsibility and no Member of the Group shall have any obligation to keep the Optionholder whole. The Company shall not be liable for any
action or determination made with respect to the Plan or any action or determination with respect to an Option or Options that results in such Options (individually or entirely) becoming subject to taxation or penalties under Section 409A of
the Code. 
 Rule 12 shall be varied by adding the following: 
 “Change of Control” shall mean a change in the ownership of the Company, change in effective control of the Company or change in the ownership of a substantial portion of the Company’s
assets, as such phrases are specifically defined by United States Treasury Regulations Section 1.409A-2(i)5(v), (vi) and (vii), as applicable to the terms herein and as may hereafter be amended. 

Rule 12, definition of “Career Break” shall be varied by adding the following: 
 For US Optionholders, a Career Break shall only be recognized for purposes of this Plan if the Optionholder is reasonably expected to return to work with a Member of the Group after the expiration of the
break and such break is approved by a Member of the Group in advance of the break’s onset. The maximum recognized period for a Career Break will be six (6) months (or such longer period if the Optionholder has a legal or contractual right
to return to work with a Member of the Group immediately following the expiration of the break), with a voluntary termination of employment considered to have taken place for purposes of the Plan for any such longer period. 

  
  

16 

 Rule 12, subsection (iii) of the definition of “Member of the Group” shall be amended to
read as follows: 
 (iii) Any other company which is associated with the Company, is so designated by the Designated Corporate Officer and is
permitted to be included as an employer of US Optionholders for purposes of any relevant US securities laws’ registration statements. 

  
  

17

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