Document:

Form of Sale and Servicing Agreement (senior/subordinate structure)

 Exhibit 4.6 
 SALE AND SERVICING AGREEMENT 
 dated as of
                    , 20     
 by and among 
 ACCREDITED MORTGAGE LOAN REIT TRUST, 
 as Depositor, 
 ACCREDITED HOME LENDERS, INC., 
 as Sponsor and Servicer, 
 ACCREDITED MORTGAGE
LOAN TRUST 200_-_, 
 as Issuing Entity, 
 and 
                                       
                      , 
 as
Indenture Trustee 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
		  	ARTICLE I	  	
		  	DEFINITIONS	  	
			
	 Section 1.01.
	  	Certain Defined Terms	  	1
	 Section 1.02.
	  	Provisions of General Application	  	2
			
		  	ARTICLE II	  	
		  	SALE AND CONVEYANCE OF THE MORTGAGE LOANS	  	
			
	 Section 2.01.
	  	Purchase and Sale of Mortgage Loans; Deposit of Derivatives	  	2
	 Section 2.02.
	  	Reserved	  	3
	 Section 2.03.
	  	Purchase Price	  	3
	 Section 2.04.
	  	Possession of Mortgage Files; Access to Mortgage Files	  	3
	 Section 2.05.
	  	Delivery of Mortgage Loan Documents	  	3
	 Section 2.06.
	  	Acceptance of the Trust Estate; Certain Substitutions; Certification by the Indenture Trustee	  	6
	 Section 2.07.
	  	Grant of Security Interest	  	8
	 Section 2.08.
	  	Further Action Evidencing Assignments	  	9
	 Section 2.09.
	  	Assignment of Agreement	  	9
			
		  	ARTICLE III	  	
		  	REPRESENTATIONS, WARRANTIES AND COVENANTS	  	
			
	 Section 3.01.
	  	Representations, Warranties and Covenants of the Servicer	  	10
	 Section 3.02.
	  	Representations, Warranties and Covenants of the Sponsor	  	11
	 Section 3.03.
	  	[Reserved	  	13
	 Section 3.04.
	  	Representations, Warranties and Covenants of the Indenture Trustee	  	13
	 Section 3.05.
	  	Covenants and Representations of the Sponsor and Servicer Regarding Prepayment Charges	  	14
	 Section 3.06.
	  	Representations, Warranties and Covenants of the Depositor	  	14
			
		  	ARTICLE IV	  	
		  	THE MORTGAGE LOANS	  	
			
	 Section 4.01.
	  	Representations and Warranties Concerning the Mortgage Loans	  	16
	 Section 4.02.
	  	Purchase and Substitution	  	25
			
		  	ARTICLE V	  	
		  	ADMINISTRATION AND SERVICING OF THE MORTGAGE LOANS	  	
			
	 Section 5.01.
	  	The Servicer	  	26
	 Section 5.02.
	  	Collection of Certain Mortgage Loan Payments; Collection Account	  	29
	 Section 5.03.
	  	Permitted Withdrawals from the Collection Account	  	30
	 Section 5.04.
	  	Hazard Insurance Policies; Property Protection Expenses	  	31

  

 i 

					
	 Section 5.05.
	  	Assumption and Modification Agreements	  	33
	 Section 5.06.
	  	Realization Upon Defaulted Mortgage Loans	  	34
	 Section 5.07.
	  	Indenture Trustee to Cooperate	  	34
	 Section 5.08.
	  	Servicing Compensation; Payment of Certain Expenses by Servicer	  	36
	 Section 5.09.
	  	Assessments of Compliance and Attestation Reports	  	36
	 Section 5.10.
	  	Reports Filed with Securities and Exchange Commission	  	38
	 Section 5.11.
	  	Access to Certain Documentation	  	43
	 Section 5.12.
	  	Maintenance of Fidelity Bond	  	43
	 Section 5.13.
	  	Subservicing Agreements Between the Servicer and Subservicer and Subservicers	  	43
	 Section 5.14.
	  	Reports to the Indenture Trustee; Collection Account Statements	  	44
	 Section 5.15.
	  	Optional Purchase of Defaulted Mortgage Loans	  	45
	 Section 5.16.
	  	Reports to be Provided by the Servicer	  	45
	 Section 5.17.
	  	[Reserved	  	47
	 Section 5.18.
	  	Delinquency Advances	  	47
	 Section 5.19.
	  	Indemnification; Third Party Claims	  	47
	 Section 5.20.
	  	Maintenance of Corporate Existence and Licenses; Merger or Consolidation of the Servicer	  	48
	 Section 5.21.
	  	Assignment of Agreement by Servicer; Servicer Not to Resign	  	48
	 Section 5.22.
	  	Administrative Duties	  	48
	 Section 5.23.
	  	Advance Facility	  	49
			
		  	ARTICLE VI	  	
		  	APPLICATION OF FUNDS	  	
			
	 Section 6.01.
	  	Deposits to the Payment Account	  	52
	 Section 6.02.
	  	Collection of Money	  	52
	 Section 6.03.
	  	Application of Principal and Interest	  	52
	 Section 6.04.
	  	[Reserved	  	52
	 Section 6.05.
	  	Compensating Interest	  	52
	 Section 6.06.
	  	[Reserved	  	52
			
		  	ARTICLE VII	  	
		  	SERVICER DEFAULT	  	
			
	 Section 7.01.
	  	Servicer Events of Default	  	53
	 Section 7.02.
	  	Indenture Trustee to Act: Appointment of Successor	  	55
	 Section 7.03.
	  	Waiver of Defaults	  	58
			
		  	ARTICLE VIII	  	
		  	TERMINATION	  	
			
	 Section 8.01.
	  	Termination	  	58
	 Section 8.02.
	  	Additional Termination Requirements	  	59
	 Section 8.03.
	  	Accounting Upon Termination of Servicer	  	59
	 Section 8.04.
	  	[Reserved	  	60

  

 ii 

					
		  	ARTICLE IX	  	
		  	[RESERVED]	  	
			
		  	ARTICLE X	  	
		  	MISCELLANEOUS PROVISIONS	  	
			
	 Section 10.01.
	  	Limitation on Liability	  	60
	 Section 10.02.
	  	Acts of Noteholders	  	61
	 Section 10.03.
	  	Amendment	  	61
	 Section 10.04.
	  	Recordation of Agreement	  	62
	 Section 10.05.
	  	Duration of Agreement	  	62
	 Section 10.06.
	  	Notices	  	62
	 Section 10.07.
	  	Severability of Provisions	  	63
	 Section 10.08.
	  	No Partnership	  	63
	 Section 10.09.
	  	Counterparts	  	63
	 Section 10.10.
	  	Successors and Assigns	  	63
	 Section 10.11.
	  	Headings	  	63
	 Section 10.12.
	  	No Petition	  	63
	 Section 10.13.
	  	Third Party Beneficiary	  	63
	 Section 10.14.
	  	Intent of the Parties	  	63
	 Section 10.15.
	  	GOVERNING LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL	  	64
			
	 Schedule I
	  	Mortgage Loan Schedule	  	
	 Appendix I
	  	Defined Terms	  	

 EXHIBITS 
  

			
	 Exhibit A
	  	Contents of the Mortgage File
	 Exhibit B
	  	Reserved
	 Exhibit C
	  	Indenture Trustee’s Acknowledgement of Receipt
	 Exhibit D
	  	Initial Certification of Indenture Trustee
	 Exhibit E
	  	Final Certification of Indenture Trustee
	 Exhibit F
	  	Request for Release of Documents
	 Exhibit G
	  	AHL Officer’s Certificate
	 Exhibit H
	  	Servicing Criteria to be Addressed in Assessment of Compliance
	 Exhibit I
	  	Form 10-D, Form 8-K and Form 10-K Reporting Responsibility

  

 iii 

 SALE AND SERVICING AGREEMENT, dated as of
                    , 20     (this “Agreement”), by and among ACCREDITED MORTGAGE LOAN REIT TRUST,
a Maryland real estate investment trust, as depositor (the “Depositor”), ACCREDITED HOME LENDERS, INC., a California corporation, as sponsor (the “Sponsor”), ACCREDITED MORTGAGE LOAN TRUST 200_-_, a Delaware
statutory trust, as issuing entity (the “Issuing Entity”), ACCREDITED HOME LENDERS, INC., a California corporation, as servicer (the “Servicer”), and
                                        
                            , a national banking association, as indenture trustee (the “Indenture
Trustee”). 
 W I T N E S S E T H 
 WHEREAS, the Sponsor has contributed the mortgage loans (the “Mortgage Loans”) listed on Schedule I to this Agreement to the Depositor, pursuant to the Contribution Agreement and Assignment, dated
                    , 20    , between the Sponsor and the Depositor, (the “Contribution
Agreement”); 
 WHEREAS, the Depositor desires to sell to the Issuing Entity, and the Issuing Entity desires to purchase from the
Depositor, the Mortgage Loans; 
 WHEREAS, immediately after such purchase, the Issuing Entity will pledge such Mortgage Loans to the
Indenture Trustee pursuant to the terms of an Indenture, dated as of                     , 20     (the
“Indenture”), between the Issuing Entity and the Indenture Trustee, and issue the Accredited Mortgage Loan Trust 200    -    , Asset-Backed Notes (the “Notes”);

 WHEREAS, the Servicer has agreed to service the Mortgage Loans, which constitute the principal assets of the Issuing Entity; 

WHEREAS, the Indenture Trustee will hold the Mortgage Loans and certain other assets pledged to the Indenture Trustee pursuant to the Indenture;

 WHEREAS, the Issuing Entity will enter into an interest rate swap agreement with the Swap Provider where the Issuing Entity agrees to pay
certain fixed-rate amounts to the Swap Provider and the Swap Provider agrees to pay certain floating-rate amounts to the Issuing Entity; and 
 NOW, THEREFORE, in consideration of the premises and the mutual agreements herein contained, the Depositor, the Sponsor, the Issuing Entity, the Servicer and the Indenture Trustee hereby agree as follows: 
 ARTICLE I 
 DEFINITIONS

 Section 1.01. Certain Defined Terms. Capitalized terms used herein but not defined herein shall have the meanings ascribed to
such terms in Appendix I attached hereto. 
  

 1 

 Section 1.02. Provisions of General Application. 
 (a) The terms defined herein and in Appendix I to the Indenture include the plural as well as the singular. 
 (b) The words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Agreement
as a whole. Unless otherwise noted, all references to Articles and Sections shall be deemed to refer to Articles and Sections of this Agreement. 
 (c) Any reference to statutes are to be construed as including all statutory provisions consolidating, amending or replacing the statute to which reference is made and all regulations promulgated pursuant to such
statutes. 
 (d) All calculations of interest with respect to the LIBOR Notes provided for herein shall be on the basis of a
360-day year and the actual number of days elapsed in the related Interest Accrual Period. All calculations of interest with respect to any Mortgage Loan provided for herein shall be made in accordance with the terms of the related Mortgage Note and
Mortgage or, if such documents do not specify the basis upon which interest accrues thereon, on the basis of a 360 day year consisting of twelve 30-day months, to the extent permitted by applicable law. 
 (e) Any Mortgage Loan payment is deemed to be received on the date such payment is actually received by the Servicer; provided,
however, that, for purposes of calculating payments on the Notes, prepayments with respect to any Mortgage Loan are deemed to be received on the date they are applied in accordance with Accepted Servicing Practices consistent with the terms
of the related Mortgage Note and Mortgage to reduce the outstanding Principal Balance of such Mortgage Loan on which interest accrues. 
 ARTICLE II 
 SALE AND CONVEYANCE OF THE MORTGAGE LOANS 
 Section 2.01. Purchase and Sale of Mortgage Loans; Deposit of Derivatives. 
 (a) The Sponsor hereby directs the Depositor to sell, transfer, assign, set over and convey, and the Depositor does hereby sell, transfer,
assign, set over and convey to the Issuing Entity, in each case without recourse, but subject to the terms and provisions of this Agreement, all of the right, title and interest of the Depositor in and to the Mortgage Loans, including the Cut-Off
Date Principal Balance of, and interest due on, such Mortgage Loans listed on Schedule I attached hereto, and all other assets included or to be included in the Trust Estate. 
 (b) The Depositor may cause the deposit of derivatives at any time into the Accredited Mortgage Loan Trust 200_-_ and any such deposited
derivatives shall become part of the Trust Estate. 
 (c) The parties hereto understand and agree that it is not intended that
any Mortgage Loan be included in the Issuing Entity that is a “High-Cost Home Loan” as defined by HOEPA or any other applicable predatory or abusive lending laws. 
  

 2 

 Section 2.02. Reserved. 
 Section 2.03. Purchase Price. On the Closing Date, as full consideration for the Depositor’s sale of the Mortgage Loans to the Issuing
Entity, the Underwriters, on behalf of the Issuing Entity, will deliver to, or at the direction of, the Depositor an amount in cash equal to $            . Additionally, the
Depositor will receive the Certificates issued by the Issuing Entity pursuant to the Trust Agreement. 
 Section 2.04. Possession of
Mortgage Files; Access to Mortgage Files. 
 (a) Upon the receipt by the Depositor, or its designee, of the purchase price
for the Mortgage Loans set forth in Section 2.03 hereof, the ownership of each Mortgage Note, each Mortgage and the contents of the Mortgage File related to each Mortgage Loan will be vested in the Issuing Entity, and will be pledged to the
Indenture Trustee, for the benefit of the Noteholders. 
 (b) Pursuant to Section 2.05 hereof, the Depositor has
delivered, or caused to be delivered the Indenture Trustee’s Mortgage File related to each Mortgage Loan to the Indenture Trustee. 
 (c) The Indenture Trustee will hold the Indenture Trustee’s Mortgage Files in trust pursuant to the terms of the Indenture for the benefit of all present and future Noteholders. 
 (d) Consistent with the terms of the Indenture, the Indenture Trustee shall afford the Depositor, the Sponsor, the Issuing Entity and the
Servicer reasonable access to all records and documentation regarding the Mortgage Loans relating to this Agreement, such access being afforded at customary charges, upon reasonable prior written request and during normal business hours at the
offices of the Indenture Trustee. 
 (e) No later than the fifth Business Day of each fourth month, commencing in
                    , the Indenture Trustee shall deliver to the Servicer a report dated as of the first day of such month, identifying those
Mortgage Loans for which it has not yet received (i) an original recorded Mortgage or a copy thereof certified to be true and correct by the public recording office in possession of such Mortgage or (ii) in the event that Assignments of
Mortgage are required to be recorded in accordance with the provisions of Section 2.05, an original recorded Assignment of Mortgage to the Indenture Trustee and any required intervening Assignments of Mortgage or a copy thereof certified to be
a true and correct copy by the public recording office in possession of such Assignment of Mortgage. 
 Section 2.05. Delivery of Mortgage
Loan Documents. (a) In connection with the transfer and assignment of the Mortgage Loans, the Depositor shall, on or before the Closing Date, deliver, or cause to be delivered, to the Indenture Trustee (as pledgee of the Issuing Entity
pursuant to the Indenture), the following documents or instruments constituting the Indenture Trustee’s Mortgage File with respect to each Mortgage Loan so transferred or assigned: 
 (i) the original Mortgage Note, endorsed without recourse in blank or to
“                                       
         , as Indenture Trustee under the Indenture 

  

 3 

 
dated as of                     ,
20    , Accredited Mortgage Loan Trust 200  -  ” by the Sponsor, including all intervening endorsements showing a complete chain of endorsement; 
 (ii) the related original Mortgage with evidence of recording indicated thereon or a copy thereof certified by the applicable recording
office and if the Mortgage Loan is registered on the MERS System, such Mortgage or an assignment of the mortgage shall reflect MERS as the mortgagee of record and shall include the MIN for such Mortgage Loan; 
 (iii) each intervening mortgage assignment, with evidence of recording indicated thereon or if the original is not available, a copy
thereof certified by the applicable recording office, if any, showing a complete chain of assignment from the originator of the related Mortgage Loan to the Sponsor (or to MERS, if the Mortgage Loan is registered on the MERS System), and noting the
presence of a MIN (if the Mortgage Loan is registered on the MERS System), which assignment may, at the Sponsor’s option, be combined with the assignment referred to in subpart (iv) hereof, in which case it must be in recordable form, but
need not have been previously recorded); 
 (iv) unless the Mortgage Loan is registered on the MERS System, a mortgage
assignment in recordable form (which, if acceptable for recording in the relevant jurisdiction as evidenced by an Opinion of Counsel addressed to the Indenture Trustee, may be included in a blanket assignment or assignments) of each Mortgage from
the Sponsor to the Indenture Trustee; 
 (v) originals of all assumption, modification and substitution agreements in those
instances where the terms or provisions of a Mortgage or Mortgage Note have been modified or such Mortgage or Mortgage Note has been assumed (if any); and 
 (vi) an original title insurance policy or title opinion (or (A) a copy of the title insurance policy or title opinion, or (B) the related binder, commitment or preliminary report, or copy thereof in which
case the Sponsor hereby certifies that the original Mortgage has been delivered to the title insurance company that issued such binder, commitment or preliminary report). 
 In instances where the original recorded Mortgage or any intervening mortgage assignment or a completed assignment of the Mortgage in recordable form cannot be delivered by the Sponsor to the Indenture Trustee prior
to or concurrently with the execution and delivery of this Agreement due to a delay in connection with recording, the Sponsor may: 
 (x) in lieu of delivering such original recorded Mortgage or intervening mortgage assignment, deliver to the Indenture Trustee, a copy thereof and the Sponsor hereby certifies that the original Mortgage has been delivered to a title
insurance company for recordation after receipt of its policy of title insurance or the related binder, commitment or preliminary report therefor; and 
  

 4 

 (y) with respect to clause (iv) above, in lieu of delivering the completed
assignment in recordable form, deliver to the Indenture Trustee, the assignment in recordable form, otherwise complete except for recording information. 
 The Indenture Trustee is hereby authorized and directed, upon an Event of Default and subject to subsection (b) below, with respect to each assignment described in Section 2.05(a)(iv) hereof, to endorse such assignment as follows:
“                    , as Indenture Trustee under the Indenture dated as of
                    , 20    , Accredited Mortgage Loan Trust 200  -  .”

 (b) As promptly as practicable, but in any event within thirty (30) days from the Closing Date, the Sponsor shall
promptly submit, or cause to be submitted for recording in the appropriate public office for real property records, each assignment referred to in Section 2.05(a)(iv); provided, that the Sponsor need not cause to be recorded any assignment
which (i) is registered on the MERS System, or (ii) relates to a Mortgage Loan in any jurisdiction under the laws of which, as evidenced by an Opinion of Counsel delivered by the Sponsor (at the Sponsor’s expense) to the Indenture
Trustee, acceptable to the Rating Agencies, the recordation of such assignment is not necessary to protect the Indenture Trustee’s, the Noteholders’ and the Certificates’ interest in the related Mortgage Loan. The Indenture Trustee,
shall retain a copy of each assignment submitted for recording. In the event that any such assignment is lost or returned unrecorded because of a defect therein, the Sponsor shall promptly prepare a substitute assignment or cure such defect, as the
case may be, and thereafter the Sponsor shall submit each such assignment for recording. The costs relating to the delivery and recordation of the documents in connection with the Mortgage Loans as specified in this Article II shall be borne by the
Sponsor. With respect to Mortgage Loans (i) not registered on the MERS System, or (ii) not covered by an Opinion of Counsel described in this section 2.05(b) to the extent that assignments of mortgage have not been recorded within one year
after the Closing Date, the Depositor shall, and if the Depositor fails to, then the Sponsor shall be obligated to repurchase such Mortgage Loans in accordance with the provisions of Section 4.02. 
 In connection with the assignment of any Mortgage Loan registered on the MERS System, promptly after the Closing Date, the Sponsor will cause, at its own
expense, the MERS System to indicate that such Mortgage Loan has been assigned to the Indenture Trustee for the benefit of the Noteholders by entering (a) the Indenture Trustee’s Org ID in the “Investor” field which identifies
the Indenture Trustee and (b) in the “Pool” field a code which identifies the securitization serial number of the Notes issued in connection with such Mortgage Loans. The Sponsor and the Servicer will not alter the entries referenced
in this paragraph with respect to any such Mortgage Loan during the term of this Agreement unless and until such Mortgage Loan is repurchased or otherwise in accordance with the terms of this Agreement. 
 (c) The Sponsor shall, within five (5) Business Days after the receipt thereof, deliver, or cause to be delivered, to the Indenture
Trustee: (i) the original recorded Mortgage and related power of attorney, if any, in those instances where a copy thereof certified by the Sponsor was delivered to the Indenture Trustee; (ii) the original recorded assignment of Mortgage
from the last endorsee to the Indenture Trustee, which, together with any intervening assignments of Mortgage, evidences a complete chain of assignment from the originator of the Mortgage Loan to the Indenture Trustee, in those instances where
copies of such assignments certified by the 

  

 5 

 
Sponsor were delivered to the Indenture Trustee; and (iii) the title insurance policy or title opinion required in Section 2.05(a)(vi). 

Notwithstanding anything to the contrary contained in this Section 2.05, in those instances where the public recording office retains the
original Mortgage, power of attorney, if any, assignment or assignment of Mortgage after it has been recorded or such original has been lost, the Sponsor shall be deemed to have satisfied its obligations hereunder upon delivery to the Indenture
Trustee, of a copy of such Mortgage, power of attorney, if any, assignment or assignment of Mortgage certified by the public recording office to be a true copy of the recorded original thereof. 
 From time to time the Sponsor may forward, or cause to be forwarded, to the Indenture Trustee, additional original documents evidencing any assumption or
modification of a Mortgage Loan. 
 (d) All original documents relating to the Mortgage Loans that are not required to be
delivered to the Indenture Trustee, pursuant to Section 2.05(a) hereof are, and shall be, held by the Servicer, the Sponsor or the Depositor, as the case may be, in trust for the benefit of the Indenture Trustee, on behalf of the Noteholders.
In the event that any such original document is required pursuant to the terms of this Section 2.05 to be a part of an Indenture Trustee’s Mortgage File, such document shall be delivered promptly to the Indenture Trustee. From and after
the sale of the Mortgage Loans to the Issuing Entity pursuant hereto, to the extent that the last assignee thereof retains title of record to any Mortgage Loans prior to the vesting of legal title in the Issuing Entity, such title shall be retained
in trust for the Issuing Entity as the owner of the Mortgage Loans, and the Indenture Trustee, as the pledgee of the Issuing Entity under the Indenture. In acting as custodian of any original document which is part of the Indenture Trustee’s
Mortgage Files, the Servicer agrees further that it does not and will not have or assert any beneficial ownership interest in the related Mortgage Loans or the Mortgage Files. Promptly upon the Servicer’s receipt of any such original document,
the Servicer, on behalf of the Issuing Entity, shall mark conspicuously each such original document, and its master data processing records with a legend evidencing that the Issuing Entity has purchased the related Mortgage Loan and all right and
title thereto and interest therein, and pledged such Mortgage Loan and all right and title thereto and interest therein to the Indenture Trustee, on behalf of the Noteholders. 
 Section 2.06. Acceptance of the Trust Estate; Certain Substitutions; Certification by the Indenture Trustee. (a) The Indenture Trustee is authorized
and directed to, and agrees to, do the following: 
 (i) execute and deliver to the Depositor, the Sponsor and the Servicer,
on or prior to the Closing Date with respect to each Mortgage Loan transferred on such date, an acknowledgement of receipt, in the form attached as Exhibit C hereto, of the original Mortgage Note as required to be included in the Indenture
Trustee’s Mortgage File (with any exceptions noted) and declares that it will hold such documents and any amendments, replacements or supplements thereto, as well as any other assets included in the definition of Trust Estate and delivered to
the Indenture Trustee, subject to the conditions set forth in the Indenture, for the benefit of the Noteholders. 
  

 6 

 (ii) to review (or cause to be reviewed) each Indenture Trustee’s Mortgage File
within sixty (60) days after the Closing Date (or, with respect to any Qualified Substitute Mortgage Loans, within sixty (60) days after receipt thereof), and to deliver to the Servicer, the Depositor and the Sponsor a certification, in
the form attached hereto as Exhibit D, to the effect that, except as otherwise noted, as to each Mortgage Loan listed in the related Mortgage Loan Schedule (other than any Mortgage Loan paid in full or any Mortgage Loan specifically
identified in such certification as not covered by such certification), (i) all documents specified in Section 2.05(a)(i)-(iv) and (vi) are in its possession, (ii) each such document has been reviewed by it and appears, on
its face, not to have been mutilated, damaged, torn or otherwise physically altered (handwritten additions, changes or corrections shall not constitute physical alteration if they reasonably appear to have been initialed), appears regular on its
face and relates to such Mortgage Loan, and (iii) based on its examination and only as to the foregoing documents, the information set forth on the Mortgage Loan Schedule with respect to items (i), (ii) (with respect to property address
only, excluding zip code), (iii) and (vi) of the definition of “Mortgage Loan Schedule” accurately reflects the information set forth in the Indenture Trustee’s Mortgage File delivered on such date; provided however,
no certification of the Indenture Trustee shall constitute a determination by the Indenture Trustee of the proper form, adequacy or enforceability of any document included in the Indenture Trustee’s Mortgage File. 
 (iii) to review (or cause to be reviewed) each Indenture Trustee’s Mortgage File within one hundred eighty (180) days after the
Closing Date (or, with respect to any Qualified Substitute Mortgage Loans, within one hundred eighty (180) days after receipt thereof), and to deliver to the Servicer and the Sponsor a certification in the form attached hereto as Exhibit
E to the effect that, except as otherwise noted, as to each Mortgage Loan listed in the related Mortgage Loan Schedule (other than any Mortgage Loan paid in full or any Mortgage Loan specifically identified in such certification as not covered
by such certification), (i) all documents specified in Section 2.05(a)(i)-(iv) and (vi) are in its possession, (ii) each such document has been reviewed by it and has not been mutilated, damaged, torn or otherwise physically
altered (handwritten additions, changes or corrections shall not constitute physical alteration if they reasonably appear to be initialed by the Mortgagor), appears regular on its face and relates to such Mortgage Loan, and (iii) based on its
examination and only as to the foregoing documents, the information set forth in items (i), (ii) (with respect to property address only, excluding zip code), (iii) and (vi) of the definition of “Mortgage Loan Schedule”
accurately reflects the information set forth in the Indenture Trustee’s Mortgage File delivered on such date. 
 In performing any such
review, the Indenture Trustee may conclusively rely on the Sponsor as to the purported genuineness of any such document and any signature thereon. It is understood that the scope of the Indenture Trustee’s review of the Indenture Trustee’s
Mortgage Files is limited solely to confirming that the documents listed in Section 2.05 have been executed and received and relate to the Indenture Trustee’s Mortgage Files identified in the related Mortgage Loan Schedule. The Indenture
Trustee shall be under no duty or obligation to inspect, review or examine any such documents, instruments, certificates or other papers to determine 

  

 7 

 
that they are genuine, enforceable, or appropriate for the represented purpose or that they are other than what they purport to be on their face. 

(b) If the Indenture Trustee during the process of reviewing the Indenture Trustee’s Mortgage Files finds any document
constituting a part of a Indenture Trustee’s Mortgage File which is not executed, has not been received, is unrelated to the Mortgage Loan identified in the related Mortgage Loan Schedule, or does not conform to the requirements of
Section 2.05 or the description thereof as set forth in the related Mortgage Loan Schedule, the Indenture Trustee shall promptly so notify the Servicer and the Sponsor. Upon receipt of such notice respecting such defect, the Depositor and the
Sponsor shall have a sixty (60) day period after such notice within which to correct or cure any such defect, or if the Servicer determines that the defect materially and adversely affects the value of the related Mortgage Loan or the interest
of the Noteholders in the related Mortgage Loan, to either (i) substitute in lieu of such Mortgage Loan a Qualified Substitute Mortgage Loan in the manner and subject to the conditions set forth in this Section 2.06 or (ii) purchase
such Mortgage Loan at a purchase price equal to the Loan Repurchase Price. Upon receipt by the Indenture Trustee of two copies of a certification, in the form attached hereto as Exhibit F, of a Servicing Officer of such substitution or
purchase and, in the case of a substitution, upon receipt by the Indenture Trustee, of the related Indenture Trustee’s Mortgage File, and the deposit of the Loan Repurchase Price, in the case of a purchase, or the Substitution Adjustment, if
any, in connection with a substitution, in the Collection Account, the Indenture Trustee shall release to the Servicer for release to the Depositor or the Sponsor, as applicable, the related Indenture Trustee’s Mortgage File and the Indenture
Trustee shall execute, without recourse, and deliver such instruments of transfer furnished by the Depositor or the Sponsor as may be necessary to transfer such Mortgage Loan to the Depositor or the Sponsor, as applicable. 
 Section 2.07. Grant of Security Interest. (a) It is intended that the conveyance of the Mortgage Loans and other property by the Depositor to
the Issuing Entity as provided in this Article II be, and be construed for all purposes other than tax and accounting purposes as, a sale of the Mortgage Loans and such other property by the Depositor to the Issuing Entity. It is, for all purposes
other than tax and accounting purposes further, not intended that such conveyance be deemed a pledge of the Mortgage Loans or such other property by the Depositor to the Issuing Entity to secure a debt or other obligation of the Depositor. However,
in the event that the Mortgage Loans or any of such other property are held to be property of the Depositor, or if for any reason this Agreement is held or deemed to create a security interest in the Mortgage Loans or any of such other property,
then it is intended that: (i) this Agreement shall also be deemed to be a security agreement within the meaning of the Uniform Commercial Code; (ii) the conveyance provided for in this Article II shall be deemed to be a grant by the
Depositor to the Issuing Entity of a security interest in all of the Depositor’s right, title and interest in and to the Mortgage Loans and such other property and all amounts payable to the holders of the Mortgage Loans in accordance with the
terms thereof and all proceeds of the conversion, voluntary or involuntary, of the foregoing into cash, instruments, securities or other property, including, without limitation, all amounts from time to time held or invested in the Accounts whether
in the form of cash, instruments, securities or other property; (iii) the possession by the Indenture Trustee, of the Mortgage Notes and such other items of property as constitute instruments, money, negotiable documents or chattel paper shall
be deemed to be “possession by the secured party” for purposes of perfecting the security interest pursuant to the Uniform Commercial Code; 

  

 8 

 
and (iv) notifications to persons holding such property, and acknowledgments, receipts or confirmations from persons holding such property, shall be
deemed notifications to, or acknowledgments, receipts or confirmations from financial intermediaries, bailees or agents, as applicable, of the Indenture Trustee for the purpose of perfecting such security interest under applicable law. The
Depositor, the Sponsor, the Servicer, on behalf of the Issuing Entity and the Indenture Trustee, shall, to the extent consistent with this Agreement, take such actions as may be reasonably necessary to ensure that, if this Agreement were deemed to
create a security interest in the Mortgage Loans or any of such other property, such security interest would be deemed to be a perfected security interest of first priority under applicable law and will be maintained as such throughout the term of
this Agreement. 
 (b) The Depositor, the Sponsor and the Servicer shall take no action inconsistent with the Issuing
Entity’s ownership of the Trust Estate and each shall indicate or shall cause to be indicated in its records and records held on its behalf that ownership of each Mortgage Loan and the other assets in the Trust Estate is vested in the Issuing
Entity, as owner, and is pledged to the Indenture Trustee, for the benefit of the Noteholders pursuant to the terms of the Indenture. The Indenture Trustee is authorized to act, pursuant to the terms of this Agreement for the benefit of the
Noteholders and shall be authorized to act at the direction of such parties. In addition, the Depositor, the Sponsor and the Servicer shall respond to any inquiries from third parties with respect to ownership of a Mortgage Loan or any other asset
in the Trust Estate by stating that it is not the owner of such asset and that the Issuing Entity is the owner of such Mortgage Loan or other asset in the Trust Estate, which is pledged to the Indenture Trustee, for the benefit of the Noteholders.

 Section 2.08. Further Action Evidencing Assignments. (a) The Servicer agrees that, from time to time, at its expense, it shall
cause the Sponsor or Depositor, as the case may be, to, and each of the Sponsor and Depositor agree that it shall, promptly execute and deliver all further instruments and documents, and take all further action, that may be necessary or appropriate,
or that the Servicer or the Indenture Trustee may reasonably request, in order to perfect, protect or more fully evidence the transfer of ownership of the Mortgage Loans and other assets in the Trust Estate or to enable the Indenture Trustee, to
exercise or enforce any of its rights hereunder. Without limiting the generality of the foregoing, the Servicer, the Sponsor and the Depositor shall, upon the request of the Servicer or the Indenture Trustee execute and file (or cause to be executed
and filed) such real estate filings, financing or continuation statements, or amendments thereto or assignments thereof, and such other instruments or notices, as may be necessary or appropriate. 
 (b) Each of the Sponsor and the Depositor hereby grants to the Servicer and the Indenture Trustee powers of attorney to execute all
documents on its behalf under this Agreement as may be necessary or desirable to effectuate the foregoing. 
 Section 2.09. Assignment of
Agreement. The Sponsor, the Depositor and the Servicer hereby acknowledge and agree that the Issuing Entity may assign its interest under this Agreement to the Indenture Trustee, for the benefit of the Noteholders, as may be required to effect
the purposes of the Indenture, without further notice to, or consent of, the Sponsor or the Servicer, and the Indenture Trustee shall succeed to such of the rights of the Issuing Entity hereunder as shall be so assigned. The Issuing Entity shall,
pursuant to the Indenture, assign all 

  

 9 

 
of its right, title and interest in and to the Mortgage Loans and its right to exercise the remedies created by Section 4.02 of this Agreement for
breaches of the representations, warranties, agreements and covenants of the Sponsor contained in Sections 3.02 and 4.01 of this Agreement, assign such right, title and interest to the Indenture Trustee, for the benefit of the Noteholders. The
Sponsor agrees that, upon such assignment to the Indenture Trustee, such representations, warranties, agreements and covenants will run to and be for the benefit of the Indenture Trustee and the Indenture Trustee may enforce, without joinder of the
Sponsor or the Issuing Entity, the repurchase obligations of the Sponsor set forth herein with respect to breaches of such representations, warranties, agreements and covenants. 
 ARTICLE III 
 REPRESENTATIONS, WARRANTIES AND COVENANTS 
 Section 3.01. Representations, Warranties and Covenants of the Servicer. The Servicer hereby represents, warrants and covenants to the Indenture
Trustee, the Depositor, the Sponsor, the Issuing Entity and the Noteholders as of the Closing Date and during the term of this Agreement that: 
 (a) The Servicer is duly organized, validly existing and in good standing under the laws of its state of incorporation and has the power to own its assets and to transact the business in which it is currently engaged.
The Servicer is duly qualified to do business as a foreign corporation and is in good standing in each jurisdiction in which the character of the business transacted by it or properties owned or leased by it or the performance of its obligations
hereunder requires such qualification and in which the failure so to qualify could reasonably be expected to have a material adverse effect on the business, properties, assets, or condition (financial or other) of the Servicer or the performance of
its obligations hereunder. 
 (b) The Servicer has the power and authority to make, execute, deliver and perform this
Agreement and all of the transactions contemplated under this Agreement, and has taken all necessary corporate action to authorize the execution, delivery and performance of this Agreement, and assuming the due authorization, execution and delivery
hereof by the other parties hereto constitutes, or will constitute, the legal, valid and binding obligation of the Servicer, enforceable in accordance with its terms, except as enforcement of such terms may be limited by bankruptcy, insolvency,
reorganization, moratorium or other similar laws relating to or affecting the rights of creditors generally, and by general equity principles (regardless of whether such enforcement is considered in a proceeding in equity or at law). 
 (c) The Servicer is not required to obtain the consent of any other party or any consent, license, approval or authorization from, or
registration or declaration with, any governmental authority, bureau or agency which consent already has not been obtained in connection with the execution, delivery, performance, validity or enforceability of this Agreement, except such as have
been obtained prior to the Closing Date. 
 (d) The execution, delivery and performance of this Agreement by the Servicer will
not violate any provision of any existing law or regulation or any order or decree of any court or the charter or bylaws of the Servicer, or constitute a breach of any mortgage, indenture, contract or other Agreement to which the Servicer is a party
or by which it may be bound. 
  

 10 

 (e) Except as set forth in the Prospectus Supplement under the heading “Risk
Factors,” there is no action, suit, proceeding or investigation pending or to Servicer’s knowledge threatened against the Servicer which, either in any one instance or in the aggregate, is, in the Servicer’s judgment, likely to
result in any material adverse change in the business, operations, financial condition, properties, or assets of the Servicer, or in any material impairment of the right or ability of the Servicer to carry on its business substantially as now
conducted, or in any material liability on the part of the Servicer, or which would draw into question the validity of this Agreement, the Notes, or the Mortgage Loans or of any action taken or to be taken in connection with the obligations of the
Servicer contemplated herein or therein, or which would be likely to impair materially the ability of the Servicer to perform its obligations hereunder. 
 (f) Neither this Agreement nor any statement, report, or other document furnished by the Servicer pursuant to this Agreement or in connection with the transactions contemplated hereby, including, without limitation,
the sale or placement of the Notes, contains any untrue material statement of fact provided by or on behalf of the Servicer or omits to state a material fact necessary to make the statements provided by or on behalf of the Servicer contained herein
or therein not misleading. 
 (g) The Servicer 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. 
 (h) The Servicer is not an “investment
company” or a company “controlled by an investment company,” within the meaning of the Investment Company Act of 1940, as amended. 
 (i) The Servicer shall take all necessary steps to maintain the Indenture Trustee’s perfection and priority in the Mortgage Loans. 
 (j) The Servicer will fully furnish, in accordance with the Fair Credit Reporting Act and its implementing regulations, accurate and
complete information (i.e., favorable and unfavorable) on its borrower credit files to Equifax, Experian, and Trans Union Credit Information Company (three of the credit repositories), on a monthly basis. 
 (k) The Servicer is a member of MERS in good standing, and will comply in all material respects with the rules and procedures of MERS in
connection with the servicing of the Mortgage Loans that are registered with MERS. 
 It is understood and agreed that the representations,
warranties and covenants set forth in this Section 3.01 shall survive the delivery of the respective Indenture Trustee’s Mortgage Files to the Indenture Trustee and inure to the benefit of the Indenture Trustee. 
 Section 3.02. Representations, Warranties and Covenants of the Sponsor. The Sponsor hereby represents, warrants and covenants to the Indenture
Trustee, the Depositor, the Issuing Entity and the Servicer that as of the date of this Agreement or as of such date specifically provided herein: 
 (a) The Sponsor is a corporation duly organized, validly existing and in good standing under the laws of the State of California. 
  

 11 

 (b) The Sponsor has the corporate power and authority to execute, deliver and perform,
and to enter into and consummate the transactions contemplated by this Agreement. 
 (c) This Agreement has been duly and
validly authorized, executed and delivered by the Sponsor, all requisite corporate action having been taken, and, assuming the due authorization, execution and delivery hereof by the other parties hereto, constitutes or will constitute the legal,
valid and binding agreement of the Sponsor, enforceable against the Sponsor in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting
the rights of creditors generally, and by general equity principles (regardless of whether such enforcement is considered in a proceeding in equity or at law). 
 (d) No consent, approval, authorization or order of or registration or filing with, or notice to, any governmental authority or court is
required for the execution, delivery and performance of or compliance by the Sponsor with this Agreement or the consummation by the Sponsor of any of the transactions contemplated hereby, except as have been made on or prior to the Closing Date.

 (e) None of the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby or
thereby, or the fulfillment of or compliance with the terms and conditions of this Agreement, (i) conflicts or will conflict with or results or will result in a breach of, or constitutes or will constitute a default or results or will result in
an acceleration under (A) the articles of incorporation or bylaws of the Sponsor, or (B) of any term, condition or provision of any material indenture, deed of trust, contract or other agreement or instrument to which the Sponsor or any of
its subsidiaries is a party or by which it or any of its subsidiaries is bound; (ii) results or will result in a violation of any law, rule, regulation, order, judgment or decree applicable to the Sponsor of any court or governmental authority
having jurisdiction over the Sponsor or its subsidiaries; or (iii) results in the creation or imposition of any lien, charge or encumbrance which would have a material adverse effect upon the Mortgage Loans or any documents or instruments
evidencing or securing the Mortgage Loans. 
 (f) Except as set forth in the Prospectus Supplement under the heading
“Risk Factors,” there are no actions, suits or proceedings before or against or investigations of, the Sponsor pending, or to the knowledge of the Sponsor, threatened, before any court, administrative agency or other tribunal, and
no notice of any such action, which, in the Sponsor’s reasonable judgment, might materially and adversely affect the performance by the Sponsor of its obligations under this Agreement, or the validity or enforceability of this Agreement.

 (g) The Sponsor is not in default with respect to any order or decree of any court or any order, regulation or demand of
any federal, state, municipal or governmental agency that may materially and adversely affect its performance hereunder. 
 It is understood
and agreed that the representations, warranties and covenants set forth in this Section 3.02 may not be waived and shall survive delivery of the respective Indenture Trustee’s Mortgage Files to the Indenture Trustee and shall inure to the
benefit of the Indenture Trustee. 
  

 12 

 Section 3.03. [Reserved.] 
 Section 3.04. Representations, Warranties and Covenants of the Indenture Trustee. The Indenture Trustee hereby represents, warrants and covenants to the Issuing Entity, the Servicer, the Depositor and the
Sponsor that as of the date of this Agreement or as of such date specifically provided herein: 
 (a) The Indenture Trustee is
a national banking association duly organized, validly existing and in good standing under the laws of the United States of America. 
 (b) The Indenture Trustee has the requisite power and authority to execute, deliver and perform, and to enter into and consummate transactions contemplated by this Agreement. 
 (c) This Agreement has been duly and validly authorized, executed and delivered by the Indenture Trustee, all requisite action having been
taken, and, assuming the due authorization, execution and delivery hereof by the other parties hereto, constitutes or will constitute the legal, valid and binding agreement of the Indenture Trustee, enforceable against the Indenture Trustee in
accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the rights of creditors generally, and by general equity principles (regardless
of whether such enforcement is considered in a proceeding in equity or at law). 
 (d) No consent, approval, authorization or
order of or registration or filing with, or notice to, any governmental authority or court is required for the execution, delivery and performance of or compliance by the Indenture Trustee with this Agreement or the consummation by the Indenture
Trustee of any of the transactions contemplated hereby, except as have been made on or prior to the Closing Date; 
 (e) None
of the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby or thereby, or the fulfillment of or compliance with the terms and conditions of this Agreement, (i) conflicts or will conflict with or
results or will result in a breach of, or constitutes or will constitute a default or results or will result in an acceleration under (A) the articles of association or bylaws of the Indenture Trustee, or (B) to the best of its knowledge,
of any term, condition or provision of any material indenture, deed of trust, contract or other agreement or instrument to which the Indenture Trustee is a party or by which it is bound; or (ii) results or will result in a violation of any
statute, rule, regulation, order, judgment or decree applicable to the Indenture Trustee of any court or governmental authority having jurisdiction over the Indenture Trustee or its subsidiaries which violation would materially and adversely affect
the Indenture Trustee’s performance of its duties hereunder; and 
 (f) There are no actions, suits or proceedings before
or against or investigations of, the Indenture Trustee, pending or to the knowledge of the Indenture Trustee threatened, before any court, administrative agency or other tribunal, and no notice of any such action, which, in the Indenture
Trustee’s reasonable judgment, would materially and adversely 

  

 13 

 
affect the performance by the Indenture Trustee of its obligations under this Agreement, or the validity or enforceability of this Agreement. 
 It is understood and agreed that the representations, warranties and covenants set forth in this Section 3.04 shall survive delivery of the
respective Indenture Trustee’s Mortgage Files to the Indenture Trustee. 
 Section 3.05. Covenants and Representations of the Sponsor
and Servicer Regarding Prepayment Charges. 
 (a) The Servicer covenants that it will not waive any Prepayment Charge or
part of a Prepayment Charge unless in connection with a Mortgage Loan that is in default or for which a default is reasonably foreseeable. 
 (b) The Sponsor hereby represents and warrants that the information set forth in the Prepayment Charge Schedule is complete, true and correct in all material respects at the date or dates respecting which such
information is furnished and each Prepayment Charge is permissible and enforceable in accordance with its terms (except to the extent that the enforceability thereof may be limited by bankruptcy, insolvency, moratorium, receivership and other
similar laws relating to creditors’ rights generally) under applicable law. 
 (c) Upon discovery by the Sponsor or the
Indenture Trustee of a breach of the foregoing, the party discovering such breach shall give prompt written notice to the other parties. Within 60 days of the earlier of discovery by the Servicer or receipt of notice by the Servicer of breach, the
Servicer shall cure such breach in all material respects. If the covenant made by the Servicer in clause (a) above is breached the Servicer must pay into the Collection Account the amount of the waived Prepayment Charge. If the representation
made by the Sponsor in clause (b) above is breached, the Sponsor must pay into the Collection Account the amount of the scheduled Prepayment Charge, less any amount previously collected and paid by the Servicer into the Collection Account. The
foregoing obligations of the Servicer and the Sponsor shall be the sole and exclusive remedies for a breach of this Section 3.05(a) or (b). 
 Section 3.06. Representations, Warranties and Covenants of the Depositor. The Depositor hereby represents, warrants and covenants to the Indenture Trustee, the Issuing Entity, the Sponsor and the Servicer that as of the date of this
Agreement or as of such date specifically provided herein: 
 (a) The Depositor is a Maryland real estate investment trust
duly organized, validly existing and in good standing under the laws of the State of Maryland. 
 (b) The Depositor has the
trust power and authority to convey the Mortgage Loans and to execute, deliver and perform, and to enter into and consummate the transactions contemplated by this Agreement. 
 (c) This Agreement has been duly and validly authorized, executed and delivered by the Depositor, all requisite corporate action having
been taken, and, assuming the due authorization, execution and delivery hereof by the other parties hereto, constitutes or will constitute the legal, valid and binding agreement of the Depositor, enforceable against the 

  

 14 

 
Depositor in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws
relating to or affecting the rights of creditors generally, and by general equity principles (regardless of whether such enforcement is considered in a proceeding in equity or at law). 
 (d) No consent, approval, authorization or order of or registration or filing with, or notice to, any governmental authority or court is
required for the execution, delivery and performance of or compliance by the Depositor with this Agreement or the consummation by the Depositor of any of the transactions contemplated hereby, except as have been made on or prior to the Closing Date.

 (e) None of the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby or
thereby, or the fulfillment of or compliance with the terms and conditions of this Agreement, (i) conflicts or will conflict with or results or will result in a breach of, or constitutes or will constitute a default or results or will result in
an acceleration under (A) the certificate of trust or bylaws of the Depositor, or (B) of any term, condition or provision of any material indenture, deed of trust, contract or other agreement or instrument to which the Depositor or any of
its subsidiaries is a party or by which it or any of its subsidiaries is bound; (ii) results or will result in a violation of any law, rule, regulation, order, judgment or decree applicable to the Depositor of any court or governmental
authority having jurisdiction over the Depositor or its subsidiaries; or (iii) results in the creation or imposition of any lien, charge or encumbrance which would have a material adverse effect upon the Mortgage Loans or any documents or
instruments evidencing or securing the Mortgage Loans. 
 (f) Except as set forth in the Prospectus Supplement under the
heading “Risk Factors,” there are no actions, suits or proceedings before or against or investigations of, the Depositor pending, or to the knowledge of the Depositor, threatened, before any court, administrative agency or other
tribunal, and no notice of any such action, which, in the Depositor’s reasonable judgment, might materially and adversely affect the performance by the Depositor of its obligations under this Agreement, or the validity or enforceability of this
Agreement. 
 (g) The Depositor is not in default with respect to any order or decree of any court or any order, regulation or
demand of any federal, state, municipal or governmental agency that may materially and adversely affect its performance hereunder. 
 (h) The Depositor hereby covenants that it has filed a federal income tax return for its taxable year ending December 31, 20     on Internal Revenue Service Form 1120 REIT on which the Depositor elected to be
taxed as a REIT. The Depositor hereby represents that it has been organized in conformity with the requirements for qualification for taxation as a REIT and hereby covenants that it at all times the Depositor owns Trust Certificates, either
directly, or indirectly through one or more Qualified REIT Subsidiaries, will conduct its operations so as to qualify as a REIT. If, at any time the Depositor owns Trust Certificates, either directly, or indirectly through one or more Qualified REIT
Subsidiaries, the Depositor determines that is has failed to qualify as a REIT, the Depositor shall, within 30 days of such discovery, notify the Indenture Trustee of such failure. 
  

 15 

 It is understood and agreed that the representations, warranties and covenants set forth in this
Section 3.06 shall survive delivery of the respective Indenture Trustee’s Mortgage Files to the Indenture Trustee and shall inure to the benefit of the Indenture Trustee. 
 ARTICLE IV 
 THE MORTGAGE LOANS 
 Section 4.01. Representations and Warranties Concerning the Mortgage Loans. The Sponsor makes the following representations and warranties to the
Depositor, the Servicer, the Indenture Trustee and the Issuing Entity as to the Mortgage Loans on which the Issuing Entity relies in accepting the Mortgage Loans in trust and executing the Notes. All uses and variations of the word
“enforceable” in this Section 4.01, shall be deemed to be qualified as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights
generally and by general principles of equity (whether considered in a proceeding or action in equity or at law). With respect to the representations and warranties stated in Sections 4.01(i), (r), (ddd), (eee) and (fff), the Sponsor makes such
representations and warranties on behalf of itself and the Depositor. Such representations, warranties and covenants are made or deemed to be made as of the Closing Date. 
 (a) The information with respect to each Mortgage Loan set forth in the Mortgage Loan Schedule is true and correct as of the Cut-Off Date,
based on Cut-Off Date Principal Balances. 
 (b) Each Mortgage Loan is being serviced either (i) through the Servicer or
(ii) a Person controlling, controlled by or under common control with the Servicer and qualified to service mortgage loans. 
 (c) Each Mortgage Loan was underwritten or reunderwritten pursuant to the Underwriting Guidelines which conform in all material respects to the description thereof set forth in the Prospectus Supplement. 
 (d) All of the original or certified documentation required to be delivered to the Indenture Trustee pursuant to this Agreement (including
all material documents related thereto) with respect to each Mortgage Loan has been or will be delivered to the Indenture Trustee in accordance with the terms of this Agreement. Each of the documents and instruments specified to be included therein
has been duly executed and in due and proper form, and each such document or instrument is in a form generally acceptable to prudent mortgage lenders that regularly originate or purchase mortgage loans comparable to the Mortgage Loans for sale to
prudent investors in the secondary market that invest in mortgage loans such as the Mortgage Loans. 
 (e) [Reserved.]

 (f) Each Mortgaged Property is improved by a single (one to four) family residential dwelling, which may include
condominiums, individual units in a planned unit development and townhouses but shall not include cooperatives. 
  

 16 

 (g) No Mortgage Loan had an LTV at origination in excess of 100%. 
 (h) Each Mortgage Loan is a valid, subsisting enforceable and perfected first lien as identified on the Mortgage Loan Schedule on the
Mortgaged Property and subject in all cases to the exceptions to title set forth in the title insurance policy, with respect to the related Mortgage Loan, which exceptions are generally acceptable to banking institutions in connection with their
regular mortgage lending activities, and such other exceptions to which similar properties are commonly subject and which do not individually, or in the aggregate, materially and adversely affect the benefits of the security intended to be provided
by such Mortgage. At the time each Mortgage Loan was originated, the originator was a mortgagee approved by the Secretary of Housing and Urban Development pursuant to Sections 203 and 211 of the National Housing Act or a savings and loan
association, a savings bank, a commercial bank or similar banking institution which was supervised and examined by a federal or state authority or a mortgage banker or broker licensed or authorized to do business in the jurisdiction in which the
related Mortgaged Property is located, applying the same standards and procedures used by the Sponsor in originating Mortgage Loans directly. 
 (i) Immediately prior to the transfer and assignment of the Mortgage Loans to the Depositor pursuant to the Contribution Agreement, the Sponsor held good and marketable title to, and was the sole owner of each
Mortgage Loan, subject to no liens, charges, mortgages or encumbrances or rights of others, except liens of third party warehouse lenders that will be released simultaneously with the transfer and assignment contemplated herein; and immediately
prior to the transfer and assignment herein contemplated, the Depositor held good and marketable title to, and was the sole owner of, each Mortgage Loan subject to no liens, charges, mortgages, encumbrances or rights of others except liens which
will be released simultaneously with such transfer and assignment; and immediately upon the transfer and assignment herein contemplated, the Indenture Trustee will hold good and marketable title to, and be the sole owner of, each Mortgage Loan
subject to no liens, charges, mortgages, encumbrances or rights of others except liens which will be released simultaneously with such transfer and assignment. 
 (j) There is no delinquent tax or assessment lien on any Mortgaged Property, and each Mortgaged Property is free of substantial damage and
is in good repair. 
 (k) There is no valid and enforceable right of rescission, set-off, defense or counterclaim to any
Mortgage Note or Mortgage, including the obligation of the related Mortgagor to pay the unpaid principal of or interest on such Mortgage Note or the defense of usury, nor will the operation of any of the terms of the Mortgage Note or the Mortgage,
or the exercise of any right thereunder, render either the Mortgage Note or the Mortgage unenforceable in whole or in part, or subject to any right of rescission, set-off, counterclaim or defense, including the defense of usury, and no such right of
rescission, set-off, counterclaim or defense has been asserted with respect thereto. 
 (l) There is no mechanics’ lien
or claim for work, labor or material affecting any Mortgaged Property which is or may be a lien prior to, or equal with and no rights are outstanding that under the law gives rise to such liens, the lien of the related Mortgage except those which
are insured against by any title insurance policy referred to in paragraph (n) below. 
  

 17 

 (m) Each Mortgage Loan at the time it was made complied with, and each Mortgage Loan at
all times was serviced in compliance with, in each case, in all material respects, applicable local, state and federal laws and regulations, including, without limitation, the federal Truth-in-Lending Act and other consumer protection laws, the Home
Ownership and Equity Protection Act of 1994, real estate settlement procedure, usury, equal credit opportunity, disclosure and recording laws and all applicable predatory and abusive lending laws. 
 (n) With respect to each Mortgage Loan, a lender’s title insurance policy, issued in standard California Land Title Association form
or American Land Title Association form, or other form acceptable in a particular jurisdiction by a title insurance company authorized to transact business in the state in which the related Mortgaged Property is situated, in an amount at least equal
to the original Principal Balance of such Mortgage Loan insuring the mortgagee’s interest under the related Mortgage Loan as the holder of a valid first mortgage lien of record on the real property described in the related Mortgage, as the case
may be, subject only to exceptions of the character referred to in paragraph (h) above, was effective on the date of the origination of such Mortgage Loan, and, as of the Closing Date such policy will be valid and inure to the benefit of the
Indenture Trustee on behalf of the Noteholders. 
 (o) The improvements upon each Mortgaged Property are covered by a valid
and existing hazard insurance policy (which may be a blanket policy of the type described in this Agreement) with a generally acceptable carrier that provides for fire and extended coverage representing coverage not less than the least of
(i) the outstanding Principal Balance of the related Mortgage Loan, (ii) the minimum amount required to compensate for damage or loss on a replacement cost basis or (iii) the full insurable value of the Mortgaged Property. 

(p) If any Mortgaged Property is in an area identified in the Federal Register by the Federal Emergency Management Agency as having
special flood hazards, a flood insurance policy (which may be a blanket policy of the type described in this Agreement) in a form meeting the requirements of the current guidelines of the Federal Insurance Administration is in effect with respect to
such Mortgaged Property with a generally acceptable carrier in an amount representing coverage not less than the least of (i) the outstanding Principal Balance of the related Mortgage Loan (together, in the case of a second mortgage loan, with
the outstanding principal balance of the first mortgage loan), (ii) the minimum amount required to compensate for damage or loss on a replacement cost basis or (iii) the maximum amount of insurance that is available under the Flood
Disaster Protection Act of 1973. 
 (q) Each Mortgage and Mortgage Note is the legal, valid and binding obligation of the
maker thereof and is enforceable in accordance with its terms, except only as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally
and by general principles of equity (whether considered in a proceeding or action in equity or at law), and all parties to each Mortgage Loan had full legal capacity to execute all documents relating to such Mortgage Loan and convey the estate
therein purported to be conveyed. 
 (r) The Sponsor has directed and the Depositor has caused to be performed any and all
acts required to be performed to preserve the rights and remedies of the Indenture Trustee in any Insurance Policies applicable to any Mortgage Loan delivered by the Sponsor or 

  

 18 

 
the Depositor including, to the extent such Mortgage Loan is not covered by a blanket policy described in this Agreement, any necessary notifications of
insurers, assignments of policies or interests therein, and establishments of coinsured, joint loss payee and mortgagee rights in favor of the Indenture Trustee. 
 (s) The Sponsor has caused or will have caused, within ten days, the filing of all appropriate financing statements in the proper filing
office in the appropriate jurisdictions under applicable law in order to perfect the security interest in the original Mortgage Note and all subsequent assignments of the original Mortgage, granted to the Indenture Trustee hereunder, subject to the
provisions of Section 2.05(b) of this Agreement. 
 (t) The terms of each Mortgage Note and each Mortgage have not been
impaired, altered, waived or modified in any respect, except by a written instrument which has been recorded, if necessary, to protect the interest of the Noteholders and which has been delivered to the Indenture Trustee. 
 (u) The proceeds of each Mortgage Loan have been fully disbursed, and there is no obligation on the part of the mortgagee to make future
advances thereunder. All costs, fees and expenses incurred in making or closing or recording such Mortgage Loans were paid. 
 (v) Except as otherwise required by law or pursuant to the statute under which the related Mortgage Loan was made, the related Mortgage Note is not and has not been secured by any collateral, pledged account or other security except the
lien of the corresponding Mortgage. 
 (w) No Mortgage Loan was originated under a buydown plan. 
 (x) No Mortgage Loan provides for negative amortization, has a shared appreciation feature, or other contingent interest feature.

 (y) Each Mortgaged Property is located in the state identified in the Mortgage Loan Schedule and consists of one or more
parcels of real property with a residential dwelling erected thereon and that no residence or dwelling is a mobile home. 
 (z) Each Mortgage securing a Mortgage Note contains a provision for the acceleration of the payment of the unpaid Principal Balance of the related Mortgage Loan in the event the related Mortgaged Property is sold without the prior consent
of the mortgagee thereunder. 
 (aa) Any advances made after the date of origination of a Mortgage Loan but prior to the
Cut-Off Date, have been consolidated with the outstanding principal amount secured by the related Mortgage, and the secured principal amount, as consolidated, bears a single interest rate and single repayment term reflected on the Mortgage Loan
Schedule. The consolidated principal amount does not exceed the original principal amount of the related Mortgage Loan. No Mortgage Note permits or obligates the Depositor, the Servicer, the Sponsor or any other Person to make future advances to the
related Mortgagor at the option of the Mortgagor. 
  

 19 

 (bb) There is no proceeding pending or threatened for the total or partial condemnation
of any Mortgaged Property, nor is such a proceeding currently occurring, and each Mortgaged Property is undamaged by waste, fire, earthquake or earth movement, flood, tornado or other casualty, so as to affect adversely the value of the Mortgaged
Property as security for the Mortgage Loan or the use for which the premises were intended. 
 (cc) All of the improvements
which were included for the purposes of determining the Appraised Value of any Mortgaged Property lie wholly within the boundaries and building restriction lines of such Mortgaged Property, and no improvements on adjoining properties encroach upon
such Mortgaged Property, except as stated in the related title insurance policy and affirmatively insured. 
 (dd) No
improvement located on or being part of any Mortgaged Property is in violation of any applicable zoning law or regulation. As of the related date of origination, all inspections, licenses and certificates required to be made or issued with respect
to all occupied portions of each Mortgaged Property and, with respect to the use and occupancy of the same, including, but not limited to, certificates of occupancy and fire underwriting certificates, have been made or obtained from the appropriate
authorities and such Mortgaged Property is lawfully occupied under the applicable law. 
 (ee) With respect to each Mortgage
constituting a deed of trust, a trustee, duly qualified under applicable law to serve as such, has been properly designated and currently so serves and is named in such Mortgage, and no fees or expenses are or will become payable by the Sponsor, the
Depositor, or the Issuing Entity to the trustee under the deed of trust, except in connection with a trustee’s sale after default by the related Mortgagor. 
 (ff) [Reserved.] 
 (gg) [Reserved.] 
 (hh) Each Mortgage contains customary and enforceable provisions which render the rights and
remedies of the holder thereof adequate for the realization against the related Mortgaged Property of the benefits of the security, including (i) in the case of a Mortgage designated as a deed of trust, by trustee’s sale and
(ii) otherwise by judicial foreclosure. There is no homestead or other exemption available which materially interferes with the right to sell the related Mortgaged Property at a trustee’s sale or the right to foreclose the related
Mortgage. 
 (ii) There is no default, breach, violation or event of acceleration existing under any Mortgage or the related
Mortgage Note and no event which, with the passage of time or with notice and the expiration of any grace or cure period, would constitute a default, breach, violation or event of acceleration; and the Depositor has not waived any default, breach,
violation or event of acceleration. 
 (jj) No instrument of release or waiver has been executed in connection with any
Mortgage Loan, and no Mortgagor has been released, in whole or in part. 
 (kk) [Reserved.] 
  

 20 

 (ll) The Sponsor has no actual knowledge that there exists on any Mortgaged Property any
hazardous substances, hazardous wastes or solid wastes, as such terms are defined in the CERCLA, the Resource Conservation and Recovery Act of 1976, or other federal, state or local environmental legislation. 
 (mm) No action, error, omission, misrepresentation, negligence, fraud or similar occurrence with respect to the origination of a Mortgage
Loan has taken place on the part of any person, including, without limitation, the Mortgagor, any appraiser, any builder or developer, or any other party involved in the origination of the Mortgage Loan or in the application of any insurance in
relation to such Mortgage Loan. 
 (nn) The Sponsor has not solicited the Mortgagor in connection with any refinancing.

 (oo) If the Mortgage Loan is an adjustable rate Mortgage Loan, all of the adjustments to the Mortgage Interest Rate, to the
amount of the monthly payment, and to the principal balance have been made in accordance with the terms of the related Mortgage Note. 
 (pp) The origination and collection practices used with respect to the Mortgage Loan have been in all respects legal, proper, prudent and customary in the mortgage origination and servicing business. 
 (qq) An appraisal of the related Mortgaged Property was made and signed, prior to the approval of the Mortgage Loan application, by a
qualified appraiser who met the requirements of the Sponsor’s appraisal policy and procedures and who had no interest, direct or indirect in the Mortgaged Property or in any loan made on the security thereof, whose compensation was not affected
by the approval or disapproval of the Mortgage Loan. 
 (rr) The Mortgagor has received all disclosure materials required by
applicable law with respect to the making of adjustable rate mortgage loans; and if the Mortgage Loan is a refinanced Mortgage Loan, the Mortgagor has received all disclosure and rescission materials required by applicable law with respect to the
making of a refinanced Mortgage Loan, and evidence of such receipt is and will remain in the Servicer’s file. 
 (ss) If
the residential dwelling on the Mortgaged Property is a condominium unit or a unit in a planned unit development (other than a de minimis planned unit development), such condominium or planned unit development project meets the Sponsor’s
eligibility requirements. 
 (tt) None of the Mortgage Loans was more than one payment past due or had been dishonored. None
of the Mortgage Loans have been thirty or more days delinquent more than one time in the twelve months preceding the Cut-Off Date. The number of Mortgage Loans which are more than 30 days delinquent do not exceed 20% of the Initial Pool Balance of
the Mortgage Loans. 
 (uu) The Sponsor has not advanced funds, or induced, solicited or knowingly received any advance of
funds by a person other than the Mortgagor, directly or indirectly, for the payment of any amount required under the Mortgage Loan, except for interest prepaid upon 

  

 21 

 
the closing of the Mortgage Loan. No Mortgage Loan contains any provision pursuant to which Monthly Payments are: (i) paid or partially paid with funds
deposited in any separate account established by the Sponsor, the Mortgagor, or anyone on behalf of the Mortgagor or (ii) paid by any source other than the Mortgagor. The Mortgage Loan is not deemed a graduated payment mortgage loan and the
Mortgage Loan does not have a shared appreciation or other contingent interest feature. 
 (vv) No foreclosure proceedings are
pending against the Mortgaged Property and the Mortgage Loan is not subject to any pending bankruptcy or insolvency proceeding, and to the Sponsor’s best knowledge, no material litigation or material lawsuit relating to the Mortgage Loan is
pending. 
 (ww) Principal payments on the Mortgage Loan commenced or will commence within sixty days after the proceeds of
the Mortgage Loan were disbursed. 
 (xx) With respect to escrow deposits, if any, all such payments are in the possession of,
or under the control of, the Servicer and there exists no deficiencies in connection therewith for which customary arrangements for repayment thereof have not been made or could be made. No escrow deposits or escrow advances or other charges or
payments due the Servicer have been capitalized under any Mortgage or the related Mortgage Note. 
 (yy) With respect to the
conveyance of the Mortgage Loans by the Sponsor to the Depositor, the Sponsor used no selection procedures that identified the Mortgage Loans as being less desirable or valuable than other comparable mortgage loans originated or acquired by the
Sponsor. The Mortgage Loans are representative of the Sponsor’s portfolio of fixed-rate or adjustable-rate mortgage loans, as applicable. With respect to the conveyance of the Mortgage Loans pursuant to this Agreement, the Depositor used no
selection procedures that identified the Mortgage Loans as being less desirable or valuable than other comparable mortgage loans originated or acquired by the Depositor. The Mortgage Loans are representative of the Depositor’s portfolio of
fixed-rate or adjustable-rate mortgage loans, as applicable. 
 (zz) Each Mortgage Loan conforms, and all such Mortgage Loans
in the aggregate conform in all material respects to the description thereof set forth in the Prospectus Supplement. 
 (aaa)
All requirements for the valid transfer of each Insurance Policy, including any assignments or notices required in each Insurance Policy, have been satisfied. 
 (bbb) This Agreement creates a valid and continuing security interest (as defined in the applicable UCC) in the Mortgage Loans in favor of
the Indenture Trustee, which security interest is prior to all other liens, and is enforceable as such as against creditors of and purchasers from the Depositor. 
 (ccc) The Mortgage Loans constitute “instruments” within the meaning of the applicable UCC. 
 (ddd) The Sponsor received all consents and approvals required by the terms of the Mortgage Loans to the contribution of the Mortgage
Loans pursuant to the Contribution 

  

 22 

 
Agreement to the Depositor and the Depositor has received all consents and approvals required by the terms of the Mortgage Loans to the sale of the Mortgage
Loans hereunder to the Owner Trustee and the subsequent pledge to the Indenture Trustee. 
 (eee) Other than the security
interest granted to the Indenture Trustee pursuant to the Indenture, neither the Sponsor nor the Depositor has pledged, assigned, sold, granted a security interest in, or otherwise conveyed any of the Mortgage Loans. Neither the Sponsor nor the
Depositor has authorized the filing of nor is aware of any financing statements against the Sponsor or the Depositor that include a description of collateral covering the Mortgage Loans other than any financing statement relating to the security
interest granted to the Indenture Trustee hereunder or that has been terminated. Neither the Sponsor nor the Depositor is aware of any judgment or tax lien filings affecting the Mortgage Loans against either the Depositor or the Sponsor. 

(fff) All financing statements filed or to be filed against the Sponsor or the Depositor in favor of the Indenture Trustee in
connection herewith describing the Mortgage Loans contain a statement to the following effect: “A purchase of or security interest in any collateral described in this financing statement will violate the rights of the Indenture Trustee.”

 (ggg) None of the Mortgage Loans are classified as (a) “high cost” loans under the Home Ownership and Equity
Protection Act of 1994 or (b) “high cost,” “threshold,” “covered”, “predatory” or “abusive” loans under any other applicable state, federal or local law (including without limitation any
regulation or ordinance) (or a similarly classified loan using different terminology under a law imposing heightened regulatory scrutiny or additional legal liability for residential mortgage loans having high interest rates, points and/or fees).

 (hhh) No proceeds from any Mortgage Loan were used to finance single-premium credit insurance policies. With respect to
each Mortgage Loan, no borrower obtained a prepaid single-premium credit-life, credit-disability, credit unemployment or credit property insurance policy in connection with the origination of the mortgage loan. 
 (iii) No Mortgage Loan is a “High Cost Home Loan” or “Covered Loan,” as applicable, (as such terms are defined in the
then current Standard & Poor’s LEVELS Glossary which is now Version 5.6c Revised, Appendix E) and no Mortgage Loan originated on or after October 1, 2002 through March 6, 2003 is governed by the Georgia Fair Lending Act. No
Mortgage Loan that was originated on or after October 1, 2002 and before March 7, 2003 is secured by property located in the State of Georgia. There is no Mortgage Loan that was originated on or after March 7, 2003 which is a
“high cost home loan” as defined under the Georgia Fair Lending Act. 
 (jjj) No Mortgage Loan is secured by a
leasehold interest, unless such leasehold interest extends 60 months beyond the stated maturity of the Mortgage Note. 
 (kkk)
There is no pending action or proceeding directly involving the Mortgaged Property in which compliance with any environmental law, rule or regulation is an issue. Based upon customary and prudent residential mortgage industry underwriting standards,
there is no violation of any environmental law, rule or regulation with respect to the Mortgaged Property, 

  

 23 

 
and nothing further remains to be done to satisfy in full all requirements of each such law, rule or regulation constituting a prerequisite to use and
enjoyment of said property. 
 (lll) The Mortgagor has not notified Accredited, and Accredited has no knowledge of any relief
requested or allowed to the Mortgagor under the Servicemembers Civil Relief Act or any similar state statute. 
 (mmm) No
Mortgage Loan was made in connection with the construction (other than a “construct to perm” loan) or rehabilitation of a Mortgaged Property or facilitating the trade in or exchange of a Mortgaged Property. 
 (nnn) Accredited has complied with all applicable anti money laundering laws and regulations, including without limitation the USA Patriot
Act of 2001 (collectively, the “Anti-Money Laundering Laws”). 
 (ooo) No Mortgage Loan imposes a Prepayment Charge
for a term in excess of five years. 
 (ppp) No Mortgage Loan is a “High-Cost Home Loan” as defined in the New
Jersey Home Ownership Act, effective as of November 27, 2003, or the Home Loan Protection Act of New Mexico, effective as of January 1, 2004. 
 (qqq) No Mortgage Loan is a “High-Cost Home Loan” as defined in the Massachusetts Predatory Home Loan Practice Act effective November 7, 2004 (MA House Bill 4880); 
 (rrr) With respect to the Mortgage Loans in Group __, (i) no Mortgage Loan imposes a Prepayment Charge for a term in excess of three
years, (ii) the servicer for each Mortgage Loan has fully furnished (and, on a going forward basis, will fully furnish), in accordance with the Fair Credit Reporting Act and its implementing regulations, accurate and complete information (i.e.,
favorable and unfavorable) on its borrower credit files to Equifax, Experian, and Trans Union Credit Information Company (three of the credit repositories), on a monthly basis, (iii) with respect to any Mortgage Loan originated on or after
August 1, 2004, neither the related mortgage nor the related mortgage note requires the borrower to submit to arbitration to resolve any dispute arising out of or relating in any way to the mortgage loan transaction, (iv) no Mortgage Loan
is covered by the Home Ownership and Equity Protection Act of 1994 (“HOEPA”), (v) no Mortgage Loan is a “high cost home,” “covered” (excluding home loans defined as “covered home loans” in the New Jersey
Home Ownership Security Act of 2002 that were originated between November 26, 2003 and July 7, 2004), “high risk home” or “predatory” loan under any applicable state, federal or local law (or a similarly classified loan
using different terminology under a law imposing heightened regulatory scrutiny or additional legal liability for residential mortgage loans having high interest rates, points and/or fees), (vi) each Mortgage Loan is a “qualified
mortgage” under Section 860G(a)(3) of the Code, and (vii) the original Principal Balance of each Mortgage Loan was within Freddie Mac’s dollar amount limits for conforming one- to four-family mortgage loans, as follows:

  

					
	 Number of Units
	  	 Maximum Original Loan Amount of First
Mortgage

	 	  	 Continental United States or
 Puerto Rico
	  	 Alaska, Guam,
 Hawaii or Virgin Islands

	 1
	  		  	
	 2
	  		  	
	 3
	  		  	
	 4
	  		  	

  

 24 

 (sss) A breach of any one of the representations set forth in paragraphs (ggg), (hhh),
(iii) and (qqq) above, will be deemed to materially and adversely affect the interests of the Noteholders and shall require a repurchase of the affected Mortgage Loan pursuant to Section 4.02. 
 It is understood and agreed that the representations, warranties and covenants set forth in this Section 4.01 shall survive delivery of the
respective Indenture Trustee’s Mortgage Files to the Indenture Trustee and shall inure to the benefit of the Indenture Trustee on behalf of the Noteholders. 
 Section 4.02. Purchase and Substitution. (a) It is understood and agreed that the representations and warranties set forth in Section 4.01 shall survive the transfer of the Mortgage Loans by the
Depositor to the Issuing Entity, the subsequent pledge thereof by the Issuing Entity to the Indenture Trustee, for the benefit of the Noteholders, and the delivery of the Notes to the Noteholders, and shall continue in full force and effect,
notwithstanding any restrictive or qualified endorsement on the Mortgage Notes and notwithstanding subsequent termination of this Agreement. 
 (b) Upon discovery by the Depositor, the Sponsor, the Servicer, the Indenture Trustee or a Noteholder of a breach of any of the representations and warranties in Section 4.01 which materially and adversely
affects the value of any Mortgage Loan, or which materially and adversely affects the interests of the Noteholders in the related Mortgage Loan, the party discovering such breach or failure shall promptly (and in any event within five (5) days
of the discovery) give written notice thereof to the others. Within sixty (60) days of the earlier of its discovery or its receipt of notice of any breach of a representation or warranty, the Depositor shall, and if the Depositor fails to, then
the Sponsor shall (a) promptly cure such breach in all material respects, (b) purchase such Mortgage Loan on a Servicer Remittance Date, in the manner and at the price specified in Section 2.06(b) and this Section 4.02, or
(c) remove such Mortgage Loan from the Trust Estate (in which case it shall become a Deleted Mortgage Loan) and substitute one or more Qualified Substitute Mortgage Loans in the manner specified in Section 2.06 and this Section 4.02.
The Indenture Trustee shall deliver prompt written notice to the Rating Agencies of any repurchase or substitution made pursuant to this Section 4.02 or Section 2.06(b). 
 (c) As to any Deleted Mortgage Loan for which the Depositor or the Sponsor substitutes a Qualified Substitute Mortgage Loan or Loans, the
Servicer shall cause the Depositor or Sponsor to effect such substitution by delivering to the Indenture Trustee a certification, in the form attached hereto as Exhibit F, executed by a Servicing Officer, and the documents described in
Sections 2.05(a)(i)-(vi) for such Qualified Substitute Mortgage Loan or Loans. 
  

 25 

 (d) The Servicer shall deposit in the Collection Account all payments received in
connection with such Qualified Substitute Mortgage Loan or Loans after the date of such substitution. Monthly Payments due with respect to Qualified Substitute Mortgage Loans in or before the Due Period in which the substitution occurs shall not be
part of the Trust Estate and will be retained by the Sponsor on the next succeeding Payment Date. For the Due Period in which the substitution occurs, distributions to Noteholders will include the Monthly Payment due on any Deleted Mortgage Loan for
such Due Period and thereafter the Sponsor shall be entitled to retain all amounts received in respect of such Deleted Mortgage Loan. The Servicer shall give written notice to the Indenture Trustee that such substitution has taken place and shall
amend the Mortgage Loan Schedule to reflect the removal of such Deleted Mortgage Loan from the terms of this Agreement and the substitution of the Qualified Substitute Mortgage Loan or Loans. Upon such substitution, such Qualified Substitute
Mortgage Loan or Loans shall be subject to the terms of this Agreement in all respects. 
 (e) With respect to any Mortgage
Loan that has been converted to an REO Mortgage Loan, all references in this Section 4.02 or Section 2.06 to “Mortgage Loan” shall be deemed to also refer to the REO Mortgage Loan. With respect to any Mortgage Loan that the
Depositor and Sponsor are required to repurchase that is or becomes a Liquidated Mortgage Loan, in lieu of repurchasing such Mortgage Loan, the Servicer shall deposit into the Payment Account, pursuant to Section 8.01 of the Indenture, an
amount equal to the amount of the Liquidated Loan Loss, if any, incurred in connection with the liquidation of such Mortgage Loan within the same time period in which the Servicer, Depositor or Sponsor would have otherwise been required to
repurchase such Mortgage Loan. 
 (f) It is understood and agreed that the obligations of the Depositor and the Sponsor set
forth in Sections 2.06 and 4.02 to cure, purchase or substitute for a defective Mortgage Loan, or to indemnify as described in Section 4.02(g) constitute the sole remedies of the Indenture Trustee and the Noteholders respecting a breach of the
representations and warranties of the Sponsor set forth in Section 4.01 of this Agreement. 
 (g) The Sponsor shall be
obligated to indemnify the Depositor, the Indenture Trustee, the Issuing Entity, the Owner Trustee and the Noteholders for any third party claims arising out of a breach by the Sponsor of representations or warranties regarding the Mortgage Loans.

 ARTICLE V 
 ADMINISTRATION AND SERVICING OF THE MORTGAGE LOANS 
 Section 5.01. The Servicer. (a) The Servicer shall service
and administer the Mortgage Loans in accordance with this Agreement and in accordance with Accepted Servicing Practices, and shall have full power and authority, acting alone, to do or cause to be done any and all things in connection with such
servicing and administration which it may deem necessary or desirable. 
 (b) The Servicer shall exercise its discretion
consistent with Accepted Servicing Practices and the terms of this Agreement, with respect to the enforcement of defaulted Mortgage Loans in such manner as will maximize the receipt of principal and interest with 

  

 26 

 
respect thereto, including but not limited to the sale of such Mortgage Loan to a third party, the modification of such Mortgage Loan, or foreclosure upon
the related property with a Mortgage and disposition thereof. 
 (c) The duties of the Servicer shall include collecting and
posting of all payments, responding to inquiries of Mortgagors or by federal, state or local government authorities with respect to the Mortgage Loans, investigating delinquencies, reporting tax information to Mortgagors in accordance with its
customary practices and accounting for collections and furnishing monthly and annual statements to the Indenture Trustee with respect to distributions, paying Compensating Interest and making Delinquency Advances and Servicing Advances pursuant
hereto. The Servicer shall follow its customary standards, policies and procedures in performing its duties as Servicer. The Servicer shall cooperate with the Indenture Trustee and furnish to the Indenture Trustee with reasonable promptness
information in its possession as may be necessary or appropriate to enable the Indenture Trustee to perform its tax reporting duties hereunder. The Indenture Trustee shall furnish the Servicer with any powers of attorney and other documents as the
Indenture Trustee shall deem necessary or appropriate to enable the Servicer to carry out its servicing and administrative duties hereunder; provided, however, the Servicer shall prepare for and deliver to the Indenture Trustee for its execution any
such powers of attorney; provided, further, that the Indenture Trustee shall not be responsible for any misuse of any such power of attorney. Notwithstanding anything contained herein to the contrary, the Servicer shall not, without the Indenture
Trustee’s written consent, other than routine foreclosure actions: (i) initiate any action, suit or proceeding directly relating to the servicing of the Mortgage Loan solely under the Indenture Trustee’s name without indicating the
Servicer’s representative capacity, (ii) initiate any other action, suit or proceeding not directly relating to the servicing of any Mortgage Loan (including but not limited to actions, suits or proceedings against Noteholders or
Certificateholders, or against the Depositor for breaches of representations and warranties) solely under the Indenture Trustee’s name, (iii) engage counsel to represent the Indenture Trustee in any action, suit or proceeding not directly
related to the servicing of any Mortgage Loan (including but not limited to actions, suits or proceedings against Noteholders or Certificateholders, or against the Depositor for breaches of representations and warranties, or (iv) prepare,
execute or deliver any government filings, forms, permits, registrations or other documents or take any action with the intent to cause, and that actually causes, the Indenture Trustee to be registered to do business in any state. 
 (d) [Reserved.] 
 (e) The Servicer shall, in accordance with Accepted Servicing Practices, have the right to approve requests of Mortgagors for consent to (i) partial releases of Mortgage Loans and (ii) alterations, removal, demolition or division
of Mortgaged Properties subject to Mortgage Loans. No such request shall be approved by the Servicer unless: (x) the provisions of the related Mortgage Note have been complied with; (y) the LTV (which may, for this purpose, be determined
at the time of any such action) after any release does not exceed the LTV set forth for such Mortgage Loan in the Mortgage Loan Schedule; and (z) the lien priority, monthly payment, Mortgage Interest Rate or maturity date of the related
Mortgage is not affected except in accordance with Section 5.01(f); provided, however, that the foregoing requirements (x), (y) and (z) shall not apply to any such situation described in this paragraph if such situation
results from any condemnation or easement activity by a governmental entity. 
  

 27 

 (f) Notwithstanding anything else contained herein, the Servicer may not agree to a
modification or extension of any Mortgage Loan unless both (i) such Mortgage Loan is in default or a default thereon is reasonably foreseeable and (ii) such modification or extension would not result in the Servicer agreeing to
modifications or extensions on Mortgage Loans with Initial Pool Balances of the related Group of more than             % of the Maximum Collateral Amount. In addition, the Servicer
may not agree to more than (i) one modification or extension with respect to any individual Mortgage Loan in a calendar year or (ii) three modifications or extensions of an individual Mortgage Loan during the life of such Mortgage Loan.

 (g) [Reserved.] 
 (h) Without limiting the generality of the foregoing, but subject to Sections 5.05 and 5.06, the Servicer in its own name may be authorized and empowered pursuant to a power of attorney executed and delivered by the
Indenture Trustee to execute and deliver, and may be authorized and empowered by the Indenture Trustee, to execute and deliver, on behalf of itself, the Noteholders and the Indenture Trustee or any of them, (i) any and all instruments of
satisfaction or cancellation or of partial or full release or discharge and all other comparable instruments with respect to the Mortgage Loans and with respect to the Mortgaged Properties, (ii) and to institute foreclosure proceedings or
obtain a deed in lieu of foreclosure so as to effect ownership of any Mortgaged Property on behalf of the Indenture Trustee, and (iii) to hold title to any Mortgaged Property upon such foreclosure or deed in lieu of foreclosure on behalf of the
Indenture Trustee; provided, however, that Section 5.07(a) shall constitute a power of attorney from the Indenture Trustee to the Servicer to execute an instrument of satisfaction (or assignment of mortgage without recourse) with
respect to any Mortgage Loan paid in full (or with respect to which payment in full has been escrowed). Subject to Sections 5.05 and 5.06, the Indenture Trustee shall furnish the Servicer with any powers of attorney and other documents as the
Servicer shall reasonably request to enable the Servicer to carry out its servicing and administrative duties hereunder; provided, however, the Servicer shall prepare for and deliver to the Indenture Trustee for its execution any such powers of
attorney; provided, further, that the Indenture Trustee shall not be responsible for any misuse of any such power of attorney. Notwithstanding anything contained herein to the contrary, the Servicer shall not, without the Indenture Trustee’s
written consent, other than routine foreclosure actions: (i) initiate any action, suit or proceeding directly relating to the servicing of the Mortgage Loan solely under the Indenture Trustee’s name without indicating the Servicer’s
representative capacity, (ii) initiate any other action, suit or proceeding not directly relating to the servicing of any Mortgage Loan (including but not limited to actions, suits or proceedings against Noteholders or Certificateholders, or
against the Depositor for breaches of representations and warranties) solely under the Indenture Trustee’s name, (iii) engage counsel to represent the Indenture Trustee in any action, suit or proceeding not directly related to the
servicing of any Mortgage Loan (including but not limited to actions, suits or proceedings against Noteholders or Certificateholders, or against the Depositor for breaches of representations and warranties, or (iv) prepare, execute or deliver
any government filings, forms, permits, registrations or other documents or take any action with the intent to cause, and that actually causes, the Indenture Trustee to be registered to do business in any state. 
  

 28 

 (i) The Servicer shall give prompt notice to the Indenture Trustee of any action, of
which the Servicer has actual knowledge, to (i) assert a claim against the Issuing Entity or (ii) assert jurisdiction over the Issuing Entity. 
 (j) Servicing Advances incurred by the Servicer in connection with the servicing of the Mortgage Loans (including any penalties in connection with the payment of any taxes and assessments or other charges) on any
Mortgaged Property shall be recoverable by the Servicer to the extent described herein. 
 (k) The Servicer shall be entitled
to rely, and shall be fully protected in relying, upon any promissory note, writing, resolution, notice, consent, certificate, affidavit, letter, e-mail, cablegram, telegram, telecopy, telex or teletype message, statement, order or other document
reasonably believed by it to be genuine and correct and to have been signed, sent or made by the proper person or persons and upon advice and statements of legal counsel (including, without limitation, counsel to the Mortgagor(s)), independent
accountants and other experts selected by the Servicer. 
 (l) The Servicer shall have no liability to the Depositor, the
Sponsor, the Indenture Trustee, the Owner Trustee, any Noteholder or any other Person for any action taken, or for refraining from the taking of any action, in good faith pursuant to this Agreement, or for errors in judgment; provided, however, that
the foregoing shall not apply to any breach of representations or warranties made by the Servicer herein, or to any specific liability imposed upon the Servicer pursuant to this Agreement or any liability that would otherwise be imposed upon the
Servicer by reason of its willful misconduct, bad faith or negligence in the performance of its duties hereunder or by reason of its failure to perform its obligations or duties hereunder. 
 (m) The Servicer further is authorized and empowered by the Indenture Trustee, on behalf of the Noteholders and the Indenture Trustee,
when the Servicer believes it is appropriate in its best judgment to register any Mortgage Loan on the MERS System, or cause the removal from the registration of any Mortgage Loan on the MERS System, to execute and deliver, on behalf of the
Indenture Trustee and the Noteholders or any of them, any and all instruments of assignment and other comparable instruments with respect to such assignment or re-recording of a Mortgage in the name of MERS, solely as nominee for the Indenture
Trustee and its successors and assigns. Any expenses incurred in connection with the actions described in the preceding sentence shall be reimbursable to the Servicer as Servicing Advances. 
 Section 5.02. Collection of Certain Mortgage Loan Payments; Collection Account. (a) The Servicer shall make reasonable efforts to collect all
payments called for under the terms and provisions of the Mortgage Loans, and shall, to the extent such procedures shall be consistent with this Agreement, follow Accepted Servicing Practices. Consistent with the foregoing, the Servicer may in its
discretion waive any assumption fees or other fees which may be collected in the ordinary course of servicing such Mortgage Loans. 
 (b) The Servicer shall establish and maintain, in the name of the Indenture Trustee, a segregated account (the “Collection Account”), in trust for the benefit of the Noteholders. The Collection Account shall be established and
maintained as an Eligible Account. 
  

 29 

 (c) The Servicer shall deposit in the Collection Account any amounts representing Monthly
Payments on the Mortgage Loans due or to be applied as of a date after the Cut-Off Date on each Business Day, not more than two Business Days after the date of collection, the following payments and collections received or made by it (other than in
respect of monthly payments of principal on and interest of the Mortgage Loans that were due on or before the related Cut-Off Date and Monthly Payments due on             , 20__):

 (i) payments of interest on the Mortgage Loans including Prepayment Charges; 
 (ii) payments of principal of the Mortgage Loans, including Principal Prepayments; 
 (iii) the Loan Repurchase Price of Mortgage Loans repurchased pursuant to Sections 2.06(b) or 4.02; 
 (iv) the Substitution Adjustment received in connection with Mortgage Loans for which Qualified Substitute Mortgage Loans are received
pursuant to Sections 2.06 and 4.02; 
 (v) all Net REO Proceeds; 
 (vi) all Net Liquidation Proceeds; and 
 (vii) all Insurance Proceeds (including, for this purpose, any amounts required to be deposited by the Servicer pursuant to Section 5.04 hereof). 
 It is understood that the Servicer need not deposit amounts representing fees, late payment charges or extension or other administrative charges (other
than Prepayment Charges) payable by Mortgagors, or amounts received by the Servicer for the account of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items or foreclosure proceeds to the extent
payable to the related Mortgagor. 
 (d) The Servicer shall invest any funds in the Collection Account in Permitted
Investments, which shall mature not later than the Business Day next preceding the Servicer Remittance Date next following the date of such investment (except that any investment held by the Indenture Trustee may mature on such Servicer Remittance
Date) and shall not be sold or disposed of prior to its maturity. All net income and gain realized from any such investment shall be for the benefit of the Servicer and shall be subject to its withdrawal or order on a Servicer Remittance Date. The
Servicer shall deposit from its own funds the amount of any loss, to the extent not offset by investment income or earnings, in the Collection Account upon the realization of such loss. 
 Section 5.03. Permitted Withdrawals from the Collection Account. The Servicer may make withdrawals from the Collection Account, on or prior to any
Servicer Remittance Date, for the following purposes: 
 (a) to pay to the Sponsor amounts received in respect of any
Defective Mortgage Loan purchased or substituted for by the Sponsor to the extent that the payment of any such amounts on the Servicer Remittance Date upon which the proceeds of such purchase are paid would make the total amount distributed in
respect of any such Mortgage Loan on such Servicer Remittance Date greater than the Loan Repurchase Price or the Substitution Adjustment therefor; 
  

 30 

 (b) to reimburse the Servicer for unreimbursed Delinquency Advances and unreimbursed
Servicing Advances with respect to the Mortgage Loans for which it has made a Delinquency Advance or Servicing Advance, from late or deferred payments collected, collections other than timely Monthly Payments, Liquidation Proceeds and/or the Loan
Repurchase Price or Substitution Adjustment of or relating to such Mortgage Loans; 
 (c) to reimburse the Servicer for any
Delinquency Advances and Servicing Advances determined in good faith to have become Nonrecoverable Advances, such reimbursement to be made from any funds in the Collection Account; 
 (d) to withdraw any amount received from a Mortgagor that is recoverable and sought to be recovered as a voidable preference by a trustee
in bankruptcy pursuant to the Bankruptcy Code in accordance with a final, nonappealable order of a court having competent jurisdiction; 
 (e) to withdraw any funds deposited in the Collection Account that were not required to be deposited therein; 
 (f) to pay the Servicer the Servicing Compensation pursuant to Section 5.08 hereof to the extent not retained or paid; 
 (g) [Reserved]; 
 (h) without duplication, and solely out of amounts which are payable to a
former servicer pursuant to Section 7.02(g), to pay to the Indenture Trustee or any successor servicer amounts paid by them in connection with the transfer of the Servicer’s servicing obligations pursuant to Article VII hereof and required
under such Article VII to be borne by the Servicer; 
 (i) to withdraw income on the Collection Account as provided in
Section 5.02(d); and 
 (j) amounts deposited into the Collection Account in respect of late fees, assumption fees and
similar fees (other than Prepayment Charges). 
 The Servicer shall keep and maintain a separate accounting for each Mortgage Loan for the
purpose of accounting for withdrawals from the Collection Account pursuant to this Section 5.03. 
 Section 5.04. Hazard Insurance
Policies; Property Protection Expenses. (a) The Servicer shall cause to be maintained with respect to each Mortgage Loan a hazard insurance policy with 

  

 31 

 
a carrier licensed in the state in which the Mortgaged Property is located that provides for fire and extended coverage, and which provides for a recovery by
the named insured of insurance proceeds relating to such Mortgage Loan in an amount not less than the least of (i) the outstanding Principal Balance of the Mortgage Loan plus the outstanding principal balance of any mortgage loan senior to such
Mortgage Loan, but in no event shall such amount be less than is necessary to prevent the Mortgagor from becoming a coinsurer thereunder, (ii) the minimum amount required to compensate for loss or damage on a replacement cost basis and
(iii) the full insurable value of the related Mortgage Property. The Servicer shall also maintain on property acquired upon foreclosure, or by deed in lieu of foreclosure, hazard insurance with extended coverage in an amount which is at least
equal to the lesser of (i) the maximum insurable value from time to time of the improvements which are a part of such property or (ii) the sum of the Principal Balance of such Mortgage Loan and the principal balance of any mortgage loan
senior to such Mortgage Loan at the time of such foreclosure plus accrued interest and the good-faith estimate of the Servicer of related Liquidation Expenses to be incurred in connection therewith. Amounts collected by the Servicer under any such
policies shall be deposited in the Collection Account to the extent that they constitute Liquidation Proceeds or Insurance Proceeds. Each hazard insurance policy shall contain a standard mortgage clause naming the Servicer, its successors and
assigns, as mortgagee. The Servicer shall be under no obligation to require that any Mortgagor maintain earthquake (except as provided herein) or other additional insurance and shall be under no obligation itself to maintain any such additional
insurance on property acquired in respect of a Mortgage Loan, other than pursuant to such applicable laws and regulations as shall at any time be in force and as shall require such additional insurance. 
 (b) In the event that the Servicer shall obtain and maintain a blanket policy with an insurer which satisfies the corresponding
requirements of Fannie Mae or Freddie Mac, insuring against fire, flood and hazards of extended coverage on all of the Mortgage Loans, then, to the extent such policy names the Servicer as loss payee and provides coverage in an amount equal to the
aggregate unpaid Principal Balance on the Mortgage Loans without co-insurance, and otherwise complies with the requirements of this Section 5.04, the Servicer shall be deemed conclusively to have satisfied its obligations with respect to fire
and hazard insurance coverage under this Section 5.04, it being understood and agreed that such blanket policy may contain a deductible clause (payable by the Servicer), in which case the Servicer shall, in the event that there shall not have
been maintained on the related Mortgaged Property a policy complying with the preceding paragraph of this Section 5.04, and there shall have been a loss which would have been covered by such policy, deposit in the Collection Account from the
Servicer’s own funds the difference, if any, between the amount that would have been payable under a policy complying with the preceding paragraph of this Section 5.04 and the amount paid under such blanket policy. Upon the request of the
Indenture Trustee, the Servicer shall cause to be delivered to the Indenture Trustee, a certified true copy of such policy. 
 (c) If the Mortgage Loan at the time of origination relates to a Mortgaged Property in an area identified in the Federal Register by the Federal Emergency Management Agency as having special flood hazards as designated to the Servicer by
the Sponsor, the Servicer will cause to be maintained with respect thereto a flood insurance policy in a form meeting the requirements of the current guidelines of the Federal Insurance Administration with a generally acceptable carrier in an amount
representing coverage, and which provides for a recovery by the Servicer on behalf of the Issuing Entity of insurance proceeds relating to such 

  

 32 

 
Mortgage Loan of not less than the least of (i) the outstanding Principal Balance of the related Mortgage Loan, plus the principal balance of the
related first lien, if any, (ii) the minimum amount required to compensate for damage or loss on a replacement cost basis and (iii) the maximum amount of insurance that is available under the Flood Disaster Protection Act of 1973. The
Servicer shall indemnify the Issuing Entity out of the Servicer’s own funds for any loss to the Issuing Entity resulting from the Servicer’s failure to maintain the insurance required by this Section. 
 Section 5.05. Assumption and Modification Agreements. When a Mortgaged Property has been or is about to be conveyed by the Mortgagor, the Servicer
shall, to the extent it has knowledge of such conveyance or prospective conveyance, exercise its rights to accelerate the maturity of the related Mortgage Loan under any “due-on-sale” clause contained in the related Mortgage or Mortgage
Note; provided, however, that the Servicer shall not exercise any such right if (i) the “due-on-sale” clause, in the reasonable belief of the Servicer, is not enforceable under applicable law or (ii) the Servicer
reasonably believes that to permit an assumption of the Mortgage Loan would not materially and adversely affect the interest of the Noteholders. In such event, the Servicer shall enter into an assumption and modification agreement with the Person to
whom such property has been or is about to be conveyed, pursuant to which such Person becomes liable under the Mortgage Note and, unless prohibited by applicable law or the mortgage documents, the Mortgagor remains liable thereon. If the foregoing
is not permitted under applicable law, the Servicer is authorized to enter into a substitution of liability agreement with such Person, pursuant to which the original Mortgagor is released from liability and such Person is substituted as Mortgagor
and becomes liable under the Mortgage Note. The Mortgage Loan, if assumed, shall conform in all respects to the requirements and representations and warranties of this Agreement. The Servicer shall notify the Indenture Trustee that any applicable
assumption or substitution agreement has been completed by forwarding to the Indenture Trustee the original copy of such assumption or substitution agreement, which copy shall be added by the Indenture Trustee to the related Indenture Trustee’s
Mortgage File and which shall, for all purposes, be considered a part of such Indenture Trustee’s Mortgage File to the same extent as all other documents and instruments constituting a part thereof. The Servicer shall be responsible for
promptly recording any such assumption or substitution agreements. In connection with any such assumption or substitution agreement, the required monthly payment on the related Mortgage Loan shall not be changed but shall remain as in effect
immediately prior to the assumption or substitution, the stated maturity or outstanding Principal Balance of such Mortgage Loan shall not be changed, the Mortgage Interest Rate shall not be changed nor shall any required monthly payments of
principal or interest be deferred or forgiven. Any fee collected by the Servicer for consenting to any such conveyance or entering into an assumption or substitution agreement shall be retained by or paid to the Servicer as additional servicing
compensation. 
 Notwithstanding the foregoing paragraph or any other provision of this Agreement, the Servicer shall not be deemed to be in
default, breach or any other violation of its obligations hereunder by reason of any assumption of a Mortgage Loan by operation of law or any assumption which the Servicer may be restricted by law from preventing, for any reason whatsoever.

  

 33 

 Section 5.06. Realization Upon Defaulted Mortgage Loans. (a) The Servicer shall foreclose
upon or otherwise comparably effect the ownership on behalf of the Issuing Entity of Mortgaged Properties relating to defaulted Mortgage Loans as to which no satisfactory arrangements can be made for collection of Delinquent payments and which the
Sponsor has not purchased pursuant to Section 5.15, unless the Servicer reasonably believes that Net Liquidation Proceeds with respect to such Mortgage Loan would not be increased as a result of such foreclosure or other action, in which case,
such Mortgage Loan will be charged-off and will become a Liquidated Mortgage Loan. The Servicer shall have no obligation to purchase any Mortgaged Property at any foreclosure sale. In connection with such foreclosure or other conversion, the
Servicer shall exercise foreclosure procedures with the same degree of care and skill in their exercise or use, as it would ordinarily exercise or use under the circumstances in the conduct of their own affairs. Any amounts including Liquidation
Expenses, advanced by the Servicer in connection with such foreclosure or other action shall constitute Servicing Advances. 
 Pursuant to
its efforts to sell any REO Property, the Servicer either itself or through an agent selected by the Servicer shall manage, conserve, protect and operate such REO Property in the same manner and to such extent as is customary in the locality where
such REO Property is located and may, incident to its conservation and protection of the interests of the Servicer, rent the same, or any part thereof, as the Servicer deems to be in the best interest of the Issuing Entity for the period prior to
the sale of such REO Property. The net income generated from the REO Property and the proceeds from a sale of any REO Property shall be deposited in the Collection Account. 
 (b) If the Servicer has reason to believe that a Mortgaged Property which the Servicer is contemplating acquiring in foreclosure or by
deed in lieu of foreclosure contains environmental or hazardous waste risks known to the Servicer, the Servicer shall notify the Indenture Trustee prior to acquiring the Mortgaged Property. The Servicer shall not institute foreclosure actions with
respect to such a property if it reasonably believes that such action would not be consistent with the Accepted Servicing Practices, and in no event shall the Servicer be required to manage, operate or take any other action with respect thereto
which the Servicer in good faith believes will result in “clean-up” or other liability under applicable law, unless the Servicer receives an indemnity acceptable to it in its sole discretion. 
 (c) The Servicer shall determine, with respect to each defaulted Mortgage Loan, when it has recovered, whether through trustee’s
sale, foreclosure sale or otherwise, all amounts if any it expects to recover from or on account of such defaulted Mortgage Loan, whereupon such Mortgage Loan shall become a Liquidated Mortgage Loan. 
 (d) Net Foreclosure Profits, if any, shall be paid directly to the Sponsor. 
 (e) With respect to its obligations under this Section 5.06, the Servicer shall take all such actions as it reasonably believes are
consistent with Accepted Servicing Practices. 
 Section 5.07. Indenture Trustee to Cooperate. (a) Upon the payment in full of
any Mortgage Loan or the receipt by the Servicer of a notification that payment in full will be escrowed in a manner customary for such purposes, the Servicer shall deliver to the Indenture Trustee one copy of a Request for Release. Upon receipt of
such copy of the Request for 

  

 34 

 
Release, the Indenture Trustee shall promptly release the related Indenture Trustee’s Mortgage File, in trust to (i) the Servicer (ii) an
escrow agent or (iii) any employee, agent or attorney of the Indenture Trustee, in each case pending its release by the Servicer, such escrow agent or such employee, agent or attorney of the Indenture Trustee, as the case may be. Upon any such
payment in full, or the receipt of such notification that such funds have been placed in escrow, the Servicer is authorized to give, as attorney-in-fact for the Indenture Trustee and the mortgagee under the Mortgage which secured the Mortgage Note,
an instrument of satisfaction (or assignment of Mortgage without recourse) regarding the Mortgaged Property relating to such Mortgage, which instrument of satisfaction or assignment, as the case may be, shall be delivered to the Person or Persons
entitled thereto against receipt therefor of payment in full, it being understood and agreed that no expense incurred in connection with such instrument of satisfaction or assignment, as the case may be, shall be chargeable to the Collection
Account. 
 (b) (i) From time to time and as appropriate in the servicing of any Mortgage Loan, including, without limitation,
foreclosure or other comparable conversion of a Mortgage Loan, the Indenture Trustee shall (except in the case of the payment or liquidation pursuant to which the related Indenture Trustee’s Mortgage File is released to an escrow agent or an
employee, agent or attorney of the Indenture Trustee), upon request of the Servicer and delivery to the Indenture Trustee of one copy of a Request for Release, release the related Indenture Trustee’s Mortgage File to the Servicer and shall
execute such documents as shall be necessary to the prosecution of any such proceedings, including, without limitation, an assignment without recourse of the related Mortgage to the Servicer. The Indenture Trustee shall complete in the name of the
Indenture Trustee any endorsement in blank on any Mortgage Note prior to releasing such Mortgage Note to the Servicer. Such receipt shall obligate the Servicer to return the Indenture Trustee’s Mortgage File to the Indenture Trustee when the
need therefor by the Servicer no longer exists unless the Mortgage Loan shall be liquidated, in which case, the Servicer shall deliver one copy of a Request for Release indicating such loan has been paid in full. 
 (ii) Each Request for Release may be delivered to the Indenture Trustee (x) via mail or courier, (y) via facsimile or
(z) by such other means, including, without limitation, electronic or computer readable medium, as the Servicer and the Indenture Trustee shall mutually agree. The Indenture Trustee shall promptly release the related Indenture Trustee’s
Mortgage File(s) within five (5) Business Days of receipt of one copy of a properly completed Request for Release pursuant to clauses (x), (y) or (z) above or such shorter period as may be agreed upon by the Servicer and the Indenture
Trustee. Receipt of a Request for Release pursuant to clauses (x), (y) or (z) above shall be authorization to the Indenture Trustee to release such Indenture Trustee’s Mortgage Files, provided the Indenture Trustee has determined that
such Request for Release has been executed, with respect to clauses (x) or (y) above, or approved, with respect to clause (z) above, by a Servicing Officer of the Servicer. If the Indenture Trustee is unable to release the Indenture
Trustee’s Mortgage Files within the time frames previously specified, the Indenture Trustee shall immediately notify the Servicer, indicating the reason for such delay, but in no event shall such notification be later than seven
(7) Business Days after receipt of a Request for Release. If the Servicer, is required to pay penalties or damages due solely to the Indenture Trustee’s negligent failure to release the related Indenture Trustee’s Mortgage File or the
Indenture Trustee’s 

  

 35 

 
negligent failure to execute and release documents in a timely manner, the Indenture Trustee shall be liable for such penalties or damages. 
 (c) No costs associated with the procedures described in this Section 5.07 shall be an expense of the Issuing Entity or the Indenture
Trustee and the Indenture Trustee shall have no liability or obligation whatsoever to pay or advance any such amounts, except for any penalties and damages as set forth in Section 5.07(b)(ii) above. 
 Section 5.08. Servicing Compensation; Payment of Certain Expenses by Servicer. The Servicer shall be entitled to receive and retain, out of
collections on the Mortgage Loans for each Due Period, as servicing compensation for such Due Period, an amount (the “Servicing Fee”) equal to the product of one-twelfth of the Servicing Fee Rate and the aggregate Stated Principal
Balance of the Mortgage Loans in each Loan Group as of the beginning of such Due Period. Additional servicing compensation in the form of assumption fees, late payment charges or extension and other administrative charges (other than Prepayment
Charges) shall be retained by the Servicer. The Servicer shall be required to pay all expenses incurred by it in connection with its activities hereunder (including payment of all other fees and expenses not expressly stated hereunder to be payable
by or from another source) and shall not be entitled to reimbursement therefor except as specifically provided herein. 
 Section 5.09.
Annual Statement as to Compliance. The Servicer and the Indenture Trustee will deliver to the Issuer, the Indenture Trustee, the Rating Agencies and the Sponsor on or before March 1st of each year, beginning March 1st, 20[__], an
Officer’s Certificate (an “Annual Statement of Compliance”) stating, as to each signatory thereof, that (a) a review of the activities of each such party, during the preceding calendar year and of its performance under this
Agreement has been made under such officer’s supervision and (b) to the best of such officers’ knowledge, based on such review, each such party has fulfilled all of its material obligations under this Agreement in all material
respects throughout such year, or, if there has been a default in the fulfillment of any such obligation, specifying each such default known to such officer and the nature and status thereof. Such Annual Statement of Compliance shall contain no
restrictions or limitations on its use. In the event that the Indenture Trustee or the Servicer has delegated any servicing responsibilities with respect to the Mortgage Loans to a subservicer or subcontractor that meets the criteria in
Item 1108(a)(2)(i) through (iii) of Regulation AB, the Servicer, the Indenture Trustee or the related servicer (as the case may be) shall deliver a similar Annual Statement of Compliance by that subservicer or subcontractor to the
Indenture Trustee as described above as and when required with respect to the servicer. 
 Assessments of Compliance and Attestation
Reports. The Servicer shall service and administer the Mortgage Loans in accordance with all applicable requirements of the Servicing Criteria. Pursuant to Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122(d) of Regulation AB, each
of the Servicer [and the Indenture Trustee] (each, an “Attesting Party”) shall deliver to the Indenture Trustee on or before March 10th (with a 5 calendar day cure period) of each calendar year beginning in 20[__], a report regarding
such Attesting Party’s assessment of compliance (an “Assessment of Compliance”) with the Servicing Criteria during the preceding calendar year. The Assessment of Compliance, as set forth in Item 1122(d) of Regulation AB, must contain
the following: 
 (a) A statement by such officer of its responsibility for assessing compliance with the Servicing Criteria applicable to
the related Attesting Party; 
  

 36 

 (b) A statement by such officer that such Attesting Party used the Servicing Criteria attached as Exhibit
H hereto, and which will also be attached to the Assessment of Compliance, to assess compliance with the Servicing Criteria applicable to the related Attesting Party; 
 (c) An assessment by such officer of the related Attesting Party’s compliance with the applicable Servicing Criteria for the period consisting of the preceding calendar year, including disclosure of any material
instance of noncompliance with respect thereto during such period, which assessment shall be based on the activities such Attesting Party performs with respect to asset-backed securities transactions taken as a whole involving the Servicer, that are
backed by the same asset type as the Mortgage Loans; 
 (d) A statement that a registered public accounting firm has issued an attestation
report on the related Attesting Party’s Assessment of Compliance for the period consisting of the preceding calendar year; and 
 (e) A
statement as to which of the Servicing Criteria, if any, are not applicable to such Attesting Party, which statement shall be based on the activities such Attesting Party performs with respect to asset-backed securities transactions taken as a whole
involving such Attesting Party, that are backed by the same asset type as the Mortgage Loans. 
 Such report at a minimum shall address each
of the Servicing Criteria specified on Exhibit H hereto which are indicated as applicable to the related Attesting Party. 
 On or before
March 1st of each calendar year beginning in 20[__], each Attesting Party specified in this Section shall furnish to the Indenture Trustee and the Depositor a report (an “Attestation Report”) by a registered public accounting firm
that attests to, and reports on, the Assessment of Compliance made by the Servicer, as required by Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122(b) of Regulation AB, which Attestation Report must be made in accordance with standards
for attestation reports issued or adopted by the Public Company Accounting Oversight Board. 
 The Servicer [or the Indenture Trustee, as the
case may be] shall cause any subservicer, and each subcontractor determined by the it to be “participating in the servicing function” within the meaning of Item 1122 of Regulation AB, to deliver to the Indenture Trustee and the
Depositor an Assessment of Compliance and Attestation Report as and when provided above along with an indication of what Servicing Criteria are addressed in such assessment. 
 Such Assessment of Compliance, as to any subservicer, shall at a minimum address each of the Servicing Criteria specified on Exhibit H hereto which are
indicated as applicable to any “primary servicer.” The Indenture Trustee shall confirm that the assessments, taken as a whole, address all of the Servicing Criteria and taken individually address the Servicing Criteria for each party as
set forth on Exhibit H and notify the Depositor of any exceptions. Notwithstanding the foregoing, as to any subcontractor (as defined in the related servicing agreement), an 

  

 37 

 
Assessment of Compliance is not required to be delivered unless it is required as part of a Form 10-K with respect to the Issuing Entity. 
 [The Indenture Trustee shall also provide an Assessment of Compliance and Attestation Report, as and when provided above, which shall at a minimum
address each of the Servicing Criteria specified on Exhibit H hereto which are indicated as applicable to the “Indenture Trustee.” In addition, the Indenture Trustee shall deliver to the Sponsor and the Depositor an Assessment of
Compliance and Attestation Report, as and when provided above, which shall at a minimum address each of the Servicing Criteria specified on Exhibit H hereto which are indicated as applicable to a “custodian.”] 
 Section 5.10. Reports Filed with Securities and Exchange Commission. 
 (a) (i) (A) Within 15 days after each Distribution Date, the Indenture Trustee shall, in accordance with industry standards, file
with the Commission via the Electronic Data Gathering and Retrieval System (“EDGAR”), a Form 10-D, signed by the Servicer, with a copy of the monthly statement to be furnished by the Indenture Trustee to the Noteholders for such
Distribution Date and detailing all data elements specified in Item 1121(a) of Regulation AB; provided that the Indenture Trustee shall have received no later than five (5) calendar days after the related Distribution Date, all information
required to be provided to the Indenture Trustee as described in clause (a)(iv) below. Any disclosure in addition to the Monthly Statement that is required to be included on Form 10-D (“Additional Form 10-D Disclosure”) shall be approved
by the Depositor. 
 Within five (5) calendar days after the related Distribution Date, (i) the parties set forth in Exhibit [__]
shall be required to provide, pursuant to section 5.11(a)(iv) below, to the Indenture Trustee and the Depositor, to the extent known, in EDGAR-compatible format, or in such other form as otherwise agreed upon by the Indenture Trustee and the
Depositor and such party, the form and substance of any Additional Form 10-D Disclosure, if applicable, and (ii) the Depositor will approve, as to form and substance, or disapprove, as the case may be, the inclusion of the Additional Form 10-D
Disclosure on Form 10-D. The Depositor will be responsible for any reasonable fees and expenses assessed or incurred by the Indenture Trustee in connection with including any Additional Form 10-D Disclosure on Form 10-D pursuant to this Section.

 (B) After preparing the Form 10-D, the Indenture Trustee shall forward electronically a draft copy of the Form 10-D to the Depositor and
the Servicer for review. No later than two (2) Business Days prior to the 15th calendar day after the related
Distribution Date, a senior officer of the Servicer in charge of the servicing function shall sign the Form 10-D and return an electronic or fax copy of such signed Form 10-D (with an original executed hard copy to follow by overnight mail) to the
Indenture Trustee. If a Form 10-D cannot be filed on time or if a previously filed Form 10-D needs to be amended, the Indenture Trustee will follow the procedures set forth in Section 5.11(a)(v). Promptly (but no later than one
(1) Business Day) after filing with the Commission, the Indenture Trustee will make available on its internet website a final executed copy of each Form 10-D. The signing party at the Servicer can be contacted as set forth in Section
[            ]. The parties to this Agreement acknowledge that the performance by the Indenture Trustee of its duties under Sections 5.11(a)(i) and (v) related to the timely
preparation and filing of Form 10-D is contingent upon such parties strictly observing all 

  

 38 

 
applicable deadlines in the performance of their duties under such Sections. The Indenture Trustee shall have no liability for any loss, expense, damage,
claim arising out of or with respect to any failure to properly prepare and/or timely file such Form 10-D, where such failure results from the Indenture Trustee’s inability or failure to receive, on a timely basis, any information from any
other party hereto needed to prepare, arrange for execution or file such Form 10-D, not resulting from its own negligence, bad faith or willful misconduct. 
 (ii) (A) Within four (4) Business Days after the occurrence of an event requiring disclosure on Form 8-K (each such event, a “Reportable Event”), the Indenture Trustee shall prepare and file
on behalf of the Issuing Entity any Form 8-K, as required by the Exchange Act, provided that the Depositor shall file the initial Form 8-K in connection with the issuance of the Notes. Any disclosure or information related to a Reportable
Event or that is otherwise required to be included on Form 8-K (“Form 8-K Disclosure Information”) shall be approved by and prepared at the direction of the Depositor. 
 (B) For so long as the Issuing Entity is subject to the Exchange Act reporting requirements, no later than 12:00 p.m. Eastern Standard time on the 2nd
Business Day after the occurrence of a Reportable Event (i) the parties set forth in Exhibit [__] shall be required pursuant to Section 5.11(a)(iv) below to provide to the Indenture Trustee and the Depositor, to the extent known, in
EDGAR-compatible format, or in such other form as otherwise agreed upon by the Indenture Trustee and the Depositor and such party, the form and substance of any Form 8-K Disclosure Information, if applicable, and (ii) the Depositor will
approve, as to form and substance, or disapprove, as the case may be, the inclusion of the Form 8-K Disclosure Information on Form 8-K. The Depositor will be responsible for any reasonable fees and expenses assessed or incurred by the Indenture
Trustee in connection with including any Form 8-K Disclosure Information on Form 8-K pursuant to this Section. 
 (C) After preparing the
Form 8-K, the Indenture Trustee shall forward electronically a draft copy of the Form 8-K to the Depositor and the Servicer for review. No later than the end of business New York City time on the 3rd Business Day after the Reportable Event, a senior officer of the Servicer in charge of the servicing function shall sign the Form 8-K and return an electronic
or fax copy of such signed Form 8-K (with an original executed hard copy to follow by overnight mail) to the Indenture Trustee. If a Form 8-K cannot be filed on time or if a previously filed Form 8-K needs to be amended, the Indenture Trustee will
follow the procedures set forth in Section 5.11(a)(v). Promptly (but no later than 1 Business Day) after filing with the Commission, the Indenture Trustee will, make available on its internet website a final executed copy of each Form
8-K. The signing party at the Servicer can be contacted as set forth in Section [__]. The parties to this Agreement acknowledge that the performance by the Indenture Trustee of its duties under this Section 5.11(a)(ii) related to the timely
preparation and filing of Form 8-K is contingent upon such parties strictly observing all applicable deadlines in the performance of their duties under this Section 5.11(a)(ii). The Indenture Trustee shall have no liability for any loss,
expense, damage, claim arising out of or with respect to any failure to properly prepare and/or timely file such Form 8-K, where such failure results from the Indenture Trustee’s inability or failure to receive, on a timely basis, any
information from any other party hereto needed to prepare, arrange for execution or file such Form 8-K, not resulting from its own negligence, bad faith or willful misconduct. 
  

 39 

 (iii) (A) Within 90 days after the end of each fiscal year of the Trust or such earlier date as may
be required by the Exchange Act (the “10-K Filing Deadline”) (it being understood that the fiscal year for the Issuing Entity ends on December 31st of each year), commencing in March 20[__], the Indenture Trustee shall prepare and file on behalf of the Issuing Entity a Form 10-K, in form and substance as required by the Exchange Act. Each
such Form 10-K shall include the following items, in each case to the extent they have been delivered to the Indenture Trustee within the applicable time frames set forth in this Agreement, (i) an annual compliance statement for the Servicer,
each Servicer and any subservicer, as described under Section 5.09, the annual reports on assessment of compliance with Servicing Criteria for the Servicer, each subservicer and subcontractor participating in the Servicing Function, each
Servicing Function Participant, the Indenture Trustee and each custodian, as described under Section 5.10, and (B) if the Servicer’s, or the Indenture Trustee’s report on assessment of compliance with servicing criteria described
under Section 5.10 identifies any material instance of noncompliance, disclosure identifying such instance of noncompliance, or if the Servicer’s, or the Indenture Trustee’s report on assessment of compliance with Servicing Criteria
described under Section 5.10 is not included as an exhibit to such Form 10-K, disclosure that such report is not included and an explanation why such report is not included, (iii)(A) the registered public accounting firm attestation report for
the Servicer, and the Indenture Trustee, as described under Section 5.10, and (B) if any registered public accounting firm attestation report described under Section 5.10 identifies any material instance of noncompliance, disclosure
identifying such instance of noncompliance, or if any such registered public accounting firm attestation report is not included as an exhibit to such Form 10-K, disclosure that such report is not included and an explanation why such report is not
included, and (iv) a Sarbanes-Oxley Certification (“Sarbanes-Oxley Certification”) as described in this Section 5.11 (a)(iii)(D) below. Any disclosure or information in addition to (i) through (iv) above that is
required to be included on Form 10-K (“Additional Form 10-K Disclosure”) shall be determined and prepared by and approved by the Depositor. 
 (B) No later than March 1 (with a 10 calendar day cure period) of each year that the Issuing Entity is subject to the Exchange Act reporting requirements, commencing in [__], (i) the parties set forth in
Exhibit [__] shall be required to provide pursuant to Section 5.11(a)(iv) below to the Indenture Trustee and the Depositor, to the extent known, in EDGAR-compatible format, or in such other form as otherwise agreed upon by the Indenture Trustee
and the Depositor and such party, the form and substance of any Additional Form 10-K Disclosure, if applicable, and (ii) the Depositor will approve, as to form and substance, or disapprove, as the case may be, the inclusion of the Additional
Form 10-K Disclosure on Form 10-K. The Depositor will be responsible for any reasonable fees and expenses assessed or incurred by the Indenture Trustee in connection with including any Additional Form 10-K Disclosure on Form 10-K pursuant to this
Section. 
 (C) After preparing the Form 10-K, the Indenture Trustee shall forward electronically a draft copy of the Form 10-K to the
Depositor and the Servicer for review. No later than 12:00 p.m. Eastern Standard time on the 4th Business Day prior to the 10-K Filing Deadline, a senior officer of the Servicer in charge of the servicing function shall sign the Form 10-K and return
an electronic or fax copy of such signed Form 10-K (with an original executed hard copy to follow by overnight mail) to the Indenture Trustee. If a Form 10-K cannot be filed on time or if a previously filed Form 10-K needs to be amended, the
Indenture Trustee will follow the procedures set forth in Section 5.11(a)(v). Promptly (but no later than 1 Business Day) after 

  

 40 

 
filing with the Commission, the Indenture Trustee will make available on its internet website a final executed copy of each Form 10-K. The signing party at
the Servicer can be contacted as set forth in Section [__]. The parties to this Agreement acknowledge that the performance by the Indenture Trustee of its duties under Sections 5.11(a)(iii) and (v) related to the timely preparation and filing
of Form 10-K is contingent upon such parties strictly observing all applicable deadlines in the performance of their duties under such Section 5.09 and Section 5.10. The Indenture Trustee shall have no liability for any loss, expense,
damage, claim arising out of or with respect to any failure to properly prepare and/or timely file such Form 10-K, where such failure results from the Indenture Trustee’s inability or failure to receive, on a timely basis, any information from
any other party hereto needed to prepare, arrange for execution or file such Form 10-K, not resulting from its own negligence, bad faith or willful misconduct. 
 (D) Each Form 10-K shall include a certification (the “Sarbanes-Oxley Certification”), required to be included therewith pursuant to the Sarbanes-Oxley Act. The Servicer and the Indenture Trustee,
shall and the Servicer shall cause any subservicer or subcontractor engaged by it to, provide to the Person who signs the Sarbanes-Oxley Certification (the “Certifying Person”), by March 10 of each year in which the Issuing
Entity is subject to the reporting requirements of the Exchange Act and otherwise within a reasonable period of time upon request, a certification (each, a “Back-Up Certification”), in the form attached hereto as Exhibit [__], upon
which the Certifying Person, the entity for which the Certifying Person acts as an officer, and such entity’s officers, directors and Affiliates (collectively with the Certifying Person, “Certification Parties”) can reasonably
rely. The senior officer of the Servicer shall serve as the Certifying Person on behalf of the Issuing Entity. Such officer of the Certifying Person can be contacted as set forth in Section [__]. In the event the Indenture Trustee is terminated or
resigns pursuant to the terms of this Agreement, the Indenture Trustee shall provide a Back-Up Certification to the Certifying Person pursuant to this Section 5.11(a)(iii) with respect to the period of time it was subject to this Agreement.

 (iv) With respect to any Additional Form 10-D Disclosure, Additional From 10-K Disclosure or any Form 8-K Disclosure Information
(collectively, the “Additional Disclosure”) relating to the Trust Fund, the Indenture Trustee’s obligation to include such Additional Information in the applicable Exchange Act report is subject to receipt from the entity that is
indicated in Exhibit [__] as the responsible party for providing that information, if other than the Indenture Trustee, as and when required as described in Section 5.11(a)(i) through (iii) above. Each of the Servicer, Sponsor, and
Depositor hereby agree to notify and provide to the extent known to the Indenture Trustee and the Depositor all Additional Disclosure relating to the Trust Fund, with respect to which such party is indicated in Exhibit [__] as the responsible party
for providing that information. 
 (v) (A) On or prior to January 30 of the first year in which the Indenture Trustee is able to do
so under applicable law, the Indenture Trustee shall file a Form 15 relating to the automatic suspension of reporting in respect of the Issuing Entity under the Exchange Act. 
 (B) In the event that the Indenture Trustee is unable to timely file with the Commission all or any required portion of any Form 8-K, 10-D or 10-K
required to be filed by this Agreement because required disclosure information was either not delivered to it or delivered to it after the delivery deadlines set forth in this Agreement or for any other reason, the Indenture Trustee will 

  

 41 

 
immediately notify the Depositor and the Servicer. In the case of Form 10-D and 10-K, the Depositor, Servicer and Indenture Trustee will cooperate to prepare
and file a Form 12b-25 and a 10-DA and 10-KA as applicable, pursuant to Rule 12b-25 of the Exchange Act. In the case of Form 8-K, the Indenture Trustee will, upon receipt of all required Form 8-K Disclosure Information and upon the approval and
direction of the Depositor, include such disclosure information on the next Form 10-D. In the event that any previously filed Form 8-K, 10-D or 10-K needs to be amended, the Indenture Trustee will notify the Depositor and the Servicer and such
parties will cooperate to prepare any necessary 8-KA, 10-DA or 10-KA. Any Form 15, From 12b-25 or any amendment to Form 8-K, 10-D or 10-K shall be signed by a senior officer of the Servicer. The Depositor and Servicer acknowledge that the
performance by the Indenture Trustee of its duties under this Section 5.11(a)(v) related to the timely preparation and filing of Form 15, a Form 12b-25 or any amendment to Form 8-K, 10-D or 10-K is contingent upon the Servicer and the Depositor
performing their duties under this Section. The Indenture Trustee shall have no liability for any loss, expense, damage, claim arising out of or with respect to any failure to properly prepare and/or timely file any such Form 15, Form 12b-25 or any
amendments to Forms 8-K, 10-D or 10-K, where such failure results from the Indenture Trustee’s inability or failure to receive, on a timely basis, any information from any other party hereto needed to prepare, arrange for execution or file such
Form 15, Form 12b-25 or any amendments to Forms 8-K, 10-D or 10-K, not resulting from its own negligence, bad faith or willful misconduct. 
 The Depositor agrees to promptly furnish to the Indenture Trustee, from time to time upon request, such further information, reports and financial statements within its control related to this Agreement, the Mortgage Loans as the Indenture
Trustee reasonably deems appropriate to prepare and file all necessary reports with the Commission. The Indenture Trustee shall have no responsibility to file any items other than those specified in this Section 5.11; provided, however, the
Indenture Trustee will cooperate with the Depositor in connection with any additional filings with respect to the Issuing Entity as the Depositor deems necessary under the Exchange Act. Copies of all reports filed by the Indenture Trustee under the
Exchange Act shall be sent to: the Depositor c/o [            ]. 
 (b) In
connection with the filing of any 10-K hereunder, the Indenture Trustee shall sign a certification (a “Form of Back-Up Certification to Form 10-K Certificate,” substantially in the form attached hereto as Exhibit [__]) for the Depositor
regarding certain aspects of the Form 10-K certification signed by the Depositor, provided, however, that the Indenture Trustee shall not be required to undertake an analysis of any accountant’s report attached as an exhibit to the Form 10-K.

 (c) The Indenture Trustee shall indemnify and hold harmless the Depositor and its officers, directors and affiliates from and against any
losses, damages, penalties, fines, forfeitures, reasonable and necessary legal fees and related costs, judgments and other costs and expenses arising out of or based upon a breach of the Indenture Trustee’s obligations under this
Section 5.11 or the Indenture Trustee’s negligence, bad faith or willful misconduct in connection therewith. 
 The Depositor shall
indemnify and hold harmless the Indenture Trustee and its officers, directors and affiliates from and against any losses, damages, penalties, fines, forfeitures, reasonable and necessary legal fees and related costs, judgments and other costs and
expenses 

  

 42 

 
arising out of or based upon a breach of the obligations of the Depositor under this Section 5.11 or the Depositor’s negligence, bad faith or
willful misconduct in connection therewith. 
 The Servicer shall indemnify and hold harmless the Indenture Trustee and the Depositor and
their respective officers, directors and affiliates from and against any losses, damages, penalties, fines, forfeitures, reasonable and necessary legal fees and related costs, judgments and other costs and expenses arising out of or based upon a
breach of the obligations of the Servicer under this Section 5.11 or the Servicer’s negligence, bad faith or willful misconduct in connection therewith. 
 If the indemnification provided for herein is unavailable or insufficient to hold harmless the Depositor or the Indenture Trustee, as applicable, then the defaulting party, in connection with a breach of its
respective obligations under this Section 5.11 or its respective negligence, bad faith or willful misconduct in connection therewith, agrees that it shall contribute to the amount paid or payable by the other parties as a result of the losses,
claims, damages or liabilities of the other party in such proportion as is appropriate to reflect the relative fault and the relative benefit of the Depositor on the one hand and the Indenture Trustee on the other. 
 (d) Notwithstanding the provisions of Section 10.03, this Section 5.11 may be amended without the consent of the Noteholders. 
 Section 5.11. Access to Certain Documentation. The Servicer shall provide to the Indenture Trustee, the FDIC and the supervisory agents and
examiners (as required in the latter case by applicable State and federal regulations) of each of the foregoing access to the documentation regarding the Mortgage Loans, such access being afforded without charge but only upon reasonable request and
during normal business hours at the offices of the Servicer designated by it. 
 Upon any change in the format of the computer tape
maintained by the Servicer in respect of the Mortgage Loans, the Servicer shall deliver a copy of such computer tape to the Indenture Trustee and in addition shall provide a copy of such computer tape to the Indenture Trustee at such other times as
the Indenture Trustee may reasonably request. 
 The Servicer shall keep confidential (including from affiliates thereof) information
concerning the Mortgage Loans, except as required by law. 
 Section 5.12. Maintenance of Fidelity Bond. The Servicer shall, during
the term of its service as Servicer maintain in force a fidelity bond and errors and omissions insurance in respect of its officers, employees or agents. Such bond and insurance shall comply with the requirements from time to time of Fannie Mae or
Freddie Mac for Persons performing servicing for mortgage loans purchased by such association. 
 Section 5.13. Subservicing Agreements
Between the Servicer and Subservicer and Subservicers. (a) The Servicer may enter into subservicing agreements for any servicing and administration of Mortgage Loans with any institution which is in compliance with the laws of each state
necessary to enable it to perform its obligations under such subservicing agreement. The Servicer shall give notice to the Indenture Trustee of the appointment of any subservicer and shall furnish to the Indenture Trustee a copy of the subservicing
agreement. The Servicer shall 

  

 43 

 
give notice to each Rating Agency of the appointment of any subservicer. For purposes of this Agreement, the Servicer shall be deemed to have received
payments on Mortgage Loans when any subservicer has received such payments. Any such subservicing agreement shall be consistent with and not violate the provisions of this Agreement. 
 (b) The Servicer may terminate any subservicing agreement in accordance with the terms and conditions of such subservicing agreement and
thereafter directly service the related Mortgage Loans itself or enter into a subservicing agreement with a successor subservicer that qualifies under Subsection (a) of this Section 5.13. The Servicer shall give notice to each Rating
Agency of the termination of any subservicer and the appointment of any successor subservicer. 
 (c) The Servicer shall not
be relieved of its obligations under this Agreement notwithstanding any subservicing agreement or any of the provisions of this Agreement relating to agreements or arrangements between the Servicer and a subservicer or otherwise, and the Servicer
shall be obligated to the same extent and under the same terms and conditions as if it alone were servicing and administering the Mortgage Loans. The Servicer shall be entitled to enter into any agreement with a subservicer for indemnification of
the Servicer by such subservicer and nothing contained in such subservicing agreement shall be deemed to limit or modify this Agreement. The Issuing Entity shall not indemnify the Servicer for any losses due to the Servicer’s negligence.

 (d) Any subservicing agreement and any other transactions or services relating to the Mortgage Loans involving a
subservicer shall be deemed to be between the subservicer and the Servicer alone and the Indenture Trustee and the Noteholders shall not be deemed parties thereto and shall have no claims, rights, obligations, duties or liabilities with respect to
any Subservicer except as set forth in Subsection (e) of this Section 5.13 and the related Subservicing Agreement. 
 (e) Notwithstanding any contrary provision contained herein, in connection with the assumption of the responsibilities, duties and liabilities and of the authority, power and rights of the Servicer hereunder by the Indenture Trustee or any
other successor servicer pursuant to Section 7.02, it is understood and agreed that the Servicer’s rights and obligations under any subservicing agreement then in force between the Servicer and a subservicer may be assumed or terminated
(without cost) by the Indenture Trustee or any other successor servicer at its option as successor to the Servicer. 
 The Servicer shall,
upon request of the Indenture Trustee, but at the expense of the Servicer, deliver to the assuming party documents and records relating to each subservicing agreement and an accounting of amounts collected and held by it and otherwise use its best
reasonable efforts to effect the orderly and efficient transfer of the subservicing agreements to the assuming party, without the payment of any fee by the Indenture Trustee, any Noteholders, notwithstanding any contrary provision in any
subservicing agreement. 
 Section 5.14. Reports to the Indenture Trustee; Collection Account Statements. Not later than twenty-five
(25) days after each Payment Date, the Servicer shall provide to the Indenture Trustee a statement, certified by a Servicing Officer, setting forth the status of the 

  

 44 

 
Collection Account as of the close of business on the last day of the Due Period preceding such Payment Date, stating that all payments required by this
Agreement to be made by the Servicer on behalf of the Indenture Trustee have been made (or if any required payment has not been made by the Servicer, specifying the nature and status thereof) and showing, for the period covered by such statement,
the aggregate of deposits into and withdrawals from the Collection Account and the aggregate of deposits into the Payment Account as specified in Section 6.01. Such statement shall also state the aggregate Stated Principal Balance and the
aggregate unpaid principal balance of all the Mortgage Loans as of the close of business on the last day of the month preceding the month in which such Payment Date occurs. 
 Section 5.15. Optional Purchase of Defaulted Mortgage Loans. (a) The Depositor, in its sole discretion, shall have the right to elect (by
written notice sent to the Servicer and the Indenture Trustee), but shall not be obligated, to purchase for its own account from the Issuing Entity any Mortgage Loan which is ninety (90) days or more Delinquent in the manner at the Loan
Repurchase Price (except that the amount described in the definition of Loan Repurchase Price shall in no case be net of the Servicing Fee). The purchase price for any Mortgage Loan purchased hereunder shall be deposited in the Collection Account
and the Indenture Trustee, upon the Indenture Trustee’s receipt of written notice by the Servicer of such deposit, shall release or cause to be released to the purchaser of such Mortgage Loan the related Indenture Trustee’s Mortgage File
and shall execute and deliver such instruments of transfer or assignment prepared by the purchaser of such Mortgage Loan, in each case without recourse, as shall be necessary to vest in the purchaser of such Mortgage Loan any Mortgage Loan released
pursuant hereto and the purchaser of such Mortgage Loan shall succeed to all the Indenture Trustee’s right, title and interest in and to such Mortgage Loan and all security and documents related thereto. Such assignment shall be an assignment
outright and not for security. The purchaser of such Mortgage Loan shall thereupon own such Mortgage Loan, and all security and documents, free of any further obligation to the Indenture Trustee or the Noteholders with respect thereto. 

(b) After the Depositor or its Affiliate has repurchased any Mortgage Loans which are 90 days or more Delinquent in an aggregate amount
equal to 1% of the Maximum Collateral Amount, then notwithstanding the foregoing, the Depositor or its Affiliate may only exercise its option pursuant to this Section 5.15 with respect to the Mortgage Loan or Mortgage Loans (including REO
Mortgage Loans) that have been Delinquent for the longest period at the time of such repurchase. 
 (c) The Depositor may not
repurchase pursuant to this Section 5.15 more than 10% of the Mortgage Loans, measured by the outstanding Principal Balance of the Mortgage Loans repurchased as a percentage of the Initial Pool Balance. 
 Section 5.16. Reports to be Provided by the Servicer. (a) By 3:00 p.m. eastern time on the second Business Day following the fifteenth
(15th) day of each month (the “Servicer Reporting Date”), the Servicer shall deliver to the Indenture Trustee, the Underwriter, Intex and Bloomberg a Servicer Remittance Report for the related Servicer Remittance Date in an
electronic format reporting on a loan-by-loan basis in such format as the Servicer and the Indenture Trustee may agree, and setting forth the following information with respect to all Mortgage Loans as well as a break out as to each Loan Group as of
the close of business on the 

  

 45 

 
last Business Day of the prior calendar month (except as otherwise provided in clause (v) below): 
 (i) the total number of Mortgage Loans and the Aggregate Principal Balances thereof, together with the number, Aggregate Principal
Balances of such Mortgage Loans and the percentage (based on the Aggregate Principal Balances of the Mortgage Loans) of the Aggregate Principal Balances of such Mortgage Loans to the Aggregate Principal Balance of all Mortgage Loans (A) 31-60
days Delinquent, (B) 61-90 days Delinquent and (C) 91 or more days Delinquent; 
 (ii) the number, Aggregate
Principal Balances of all Mortgage Loans and percentage (based on the Aggregate Principal Balances of the Mortgage Loans) of the Aggregate Principal Balances of such Mortgage Loans to the Aggregate Principal Balance of all Mortgage Loans in
foreclosure proceedings and the number, Aggregate Principal Balances of all Mortgage Loans and percentage (based on the Aggregate Principal Balances of the Mortgage Loans) of any such Mortgage Loans also included in any of the statistics described
in the foregoing clause (i); 
 (iii) the number, Aggregate Principal Balances of all Mortgage Loans and percentage (based on
the Aggregate Principal Balances of the Mortgage Loans) of the Aggregate Principal Balances of such Mortgage Loans to the Aggregate Principal Balance of all Mortgage Loans relating to Mortgagors in bankruptcy proceedings and the number, Aggregate
Principal Balances of all Mortgage Loans and percentage (based on the Aggregate Principal Balances of the Mortgage Loans) of any such Mortgage Loans also included in any of the statistics described in the foregoing clause (i); 
 (iv) the number, Aggregate Principal Balances of all Mortgage Loans and percentage (based on the Aggregate Principal Balances of the
Mortgage Loans) of the Aggregate Principal Balances of such Mortgage Loans to the Aggregate Principal Balance of all Mortgage Loans relating to REO Properties and the number, Aggregate Principal Balances of all Mortgage Loans and percentage (based
on the Aggregate Principal Balances of the Mortgage Loans) of any such Mortgage Loans also included in any of the statistics described in the foregoing clause (i); 
 (v) the weighted average Mortgage Interest Rate for the Mortgage Loans in Loan Group I and Loan Group II, in each case, as of the Due Date
occurring in the Due Period related to such Payment Date; 
 (vi) the weighted average remaining term to stated maturity of
all Mortgage Loans; 
 (vii) the book value of any REO Property; 
 (viii) the Cumulative Realized Loss Percentage and the Rolling Six Month Delinquency Ratio as of the related Payment Date; 
  

 46 

 (ix) with respect to each Monthly Payment, the amount of such remittance allocable to
principal (including a separate breakdown of any Principal Prepayment, including the date of such prepayment, and any Prepayment Charges); 
 (x) with respect to each Monthly Payment, the amount of such remittance allocable to interest; 
 (xi) the number and the Aggregate Principal Balance of Mortgage Loans repurchased pursuant to Section 5.15; and 
 (xii) such other loan level information as either the Indenture Trustee may reasonably request to enable it to prepare the Indenture Trustee’s Remittance Report. 
 (b) [Reserved.] 
 (c) [Reserved.] 
 Section 5.17. [Reserved.] 
 Section 5.18. Delinquency Advances. If, on any Servicer Remittance Date, the Servicer determines that any Monthly Payments due during the related Due Period have not been received as of the end of the related
Due Period, the Servicer shall determine the amount of any Delinquency Advance required to be made with respect to the related Payment Date. The Servicer shall include in the amount to be deposited in the Payment Account on such Servicer Remittance
Date an amount equal to the Delinquency Advance, if any, which deposit may be made in whole or in part from funds in the Collection Account being held for future payment or withdrawal on or in connection with Payment Dates in subsequent months,
other than any such amounts which are voluntary Principal Prepayments in full. Any funds being held for future payment to Noteholders and so used shall be replaced by the Servicer from its own funds by deposit in the Collection Account on or before
the Business Day preceding any future Servicer Remittance Date to the extent that funds in the Collection Account on such Servicer Remittance Date shall be less than the Servicer Remittance Amount for such Payment Date. 
 The Servicer shall designate on its records the specific Mortgage Loans and related installments (or portions thereof) as to which such Delinquency
Advance shall be deemed to have been made, such determination being conclusive for purposes of withdrawals from the Collection Account pursuant to Section 5.03 hereof. 
 Section 5.19. Indemnification; Third Party Claims. The Servicer agrees to indemnify and to hold each of the Issuing Entity, the Owner Trustee, the
Depositor, the Sponsor, the Indenture Trustee and each Noteholder harmless against any and all claims, losses, penalties, fines, forfeitures, legal fees and related costs, judgments, and any other costs, fees and expenses (including attorneys’
fees and expenses) that the Issuing Entity, the Owner Trustee, the Depositor, the Sponsor, the Indenture Trustee and any Noteholder (or any director, officer, employee or agent of the foregoing) may sustain in any way related to the failure of the
Servicer to perform its duties and service the Mortgage Loans in compliance with the terms of this Agreement and the other Basic Documents and in connection with the Indenture as provided in Section 6.16 thereof. Each indemnified party and the
Servicer shall immediately notify the other 

  

 47 

 
indemnified parties if a claim is made by a third party with respect to this Agreement and the other Basic Documents and the Servicer shall assume the
defense of any such claim and pay all expenses in connection therewith, including reasonable counsel fees, and promptly pay, discharge and satisfy any judgment or decree which may be entered against the Issuing Entity, the Owner Trustee, the
Depositor, the Sponsor, the Servicer, the Indenture Trustee and/or a Noteholder (or any director, officer, employee or agent of the foregoing) in respect of such claim. The obligations of the Servicer under this Section 5.19 arising prior to
any resignation or termination of the Servicer hereunder shall survive the resignation or termination of the Servicer or the termination of this Agreement or the Indenture. 
 Section 5.20. Maintenance of Corporate Existence and Licenses; Merger or Consolidation of the Servicer. (a) The Servicer will keep in full
effect its existence, rights and franchises as a corporation, will obtain and preserve its qualification to do business as a foreign corporation in each jurisdiction necessary to protect the validity and enforceability of this Agreement or any of
the Mortgage Loans and to perform its duties under this Agreement and will otherwise operate its business so as to cause the representations and warranties under Section 3.01 hereof to be true and correct at all times under this Agreement.

 (b) Any corporation into which the Servicer may be merged or converted or with which it may be consolidated, or any
corporation resulting from any merger, conversion or consolidation to which the Servicer shall be a party, or any corporation succeeding to all or substantially all of the business of the Servicer, shall be the successor of the Servicer, hereunder,
without the execution or filing of any paper or any further act on the part of any of the parties hereto provided that, such corporation meets the qualifications set forth in Section 7.02(b). The Servicer, as applicable, shall send notice of
any such merger or consolidation to the Owner Trustee, the Indenture Trustee and the Servicer, as applicable. 
 Section 5.21. Assignment
of Agreement by Servicer; Servicer Not to Resign. The Servicer shall not assign this Agreement nor resign from the obligations and duties hereby imposed on it except upon the determination that the Servicer’s duties hereunder are no longer
permissible under applicable law and that such incapacity cannot be cured by the Servicer, without incurring unreasonable expense. Any such determination that the Servicer’s duties hereunder are no longer permissible under applicable law
permitting the resignation of the Servicer, as applicable, shall be evidenced by a written Opinion of Counsel (who may be counsel for the Servicer) to such effect delivered to the Indenture Trustee, the Issuing Entity, the Depositor, the Sponsor and
the Servicer, as applicable. No such resignation of the Servicer shall become effective until a successor servicer appointed in accordance with the terms of this Agreement has assumed the Servicer’s responsibilities and obligations hereunder in
accordance with Section 7.02. The Servicer shall provide the Indenture Trustee and the Rating Agencies with 30 days’ prior written notice of its intention to resign pursuant to this Section 5.21. 
 (a) [Reserved.] 
 Section
5.22. Administrative Duties. (a) Duties with Respect to the Basic Documents. The Servicer shall perform all its duties and the duties of the Issuing Entity under the Basic Documents. In addition, the Servicer shall consult with
the Owner Trustee as the Servicer deems appropriate regarding the duties of the Issuing Entity under the Basic Documents. The Servicer 

  

 48 

 
shall monitor the performance of the Issuing Entity and shall advise the Owner Trustee when action is necessary to comply with the Issuing Entity’s
duties under the Basic Documents. The Servicer shall prepare for execution by the Issuing Entity or shall cause the preparation by other appropriate Persons of all such documents, reports, filings, instruments, certificates and opinions as it shall
be the duty of the Issuing Entity to prepare, file or deliver pursuant to the Basic Documents. In furtherance of the foregoing, the Servicer shall take all necessary action that is the duty of the Issuing Entity to take pursuant to the Basic
Documents. 
 (b) Duties with Respect to the Issuing Entity. In addition to the duties of the Servicer set forth in
this Agreement or any of the Basic Documents, the Servicer shall perform such calculations and shall prepare for execution by the Issuing Entity or the Owner Trustee or shall cause the preparation by other appropriate Persons of all such documents,
reports, filings, instruments, certificates and opinions as it shall be the duty of the Issuing Entity or the Owner Trustee to prepare, file or deliver pursuant to this Agreement or any of the Basic Documents or under state and federal tax and
securities laws and shall take all appropriate action that it is the duty of the Issuing Entity to take pursuant to this Agreement or any of the Basic Documents. In accordance with the directions of the Issuing Entity or the Owner Trustee, the
Servicer shall administer, perform, or supervise the performance of such other activities in connection with the Basic Documents as are not covered by any of the foregoing provisions and as are expressly requested by the Issuing Entity or the Owner
Trustee and are reasonably within the capability of the Servicer. 
 In carrying out the foregoing duties under this Agreement, the Servicer
may enter into transactions with or otherwise deal with any of its Affiliates; provided, however, that the terms of any such transactions or dealings shall be in accordance with any directions received from the Issuing Entity and shall be, in the
Servicer’s opinion, no less favorable to the Issuing Entity in any material respect. 
 (c) Additional Information to
be Furnished to the Issuing Entity. The Servicer shall furnish to the Owner Trustee from time to time such additional information regarding the Issuing Entity or the Basic Documents as the Owner Trustee shall reasonably request. The Servicer
shall prepare, execute and deliver all certificates or other documents required to be delivered by the Issuing Entity pursuant to the Sarbanes-Oxley Act of 2002 or the rules and regulations promulgated thereunder. 
 Section 5.23. Advance Facility. 
 (a) The Servicer on behalf of the Issuing Entity, is hereby authorized to enter into a facility (such an arrangement, an “Advance Facility”) with any Person which provides that such Person (an
“Advancing Person”) may fund Delinquency Advances and/or Servicing Advances under this Agreement, although no such facility shall reduce or otherwise affect the Servicer’s obligation to fund such Delinquency Advances and/or Servicing
Advances. No consent of the Indenture Trustee, Noteholders or any other party shall be required before the Servicer may enter into an Advance Facility nor shall the Indenture Trustee or the Noteholders be a third party beneficiary of any obligation
of an Advancing Person to the Servicer. If the Servicer enters into an Advance Facility, the Servicer and the related Advancing Person shall deliver to the Indenture Trustee at the address set forth in Section 10.06 hereof a written notice

  

 49 

 
(an “Advance Facility Notice”), stating (a) the identity of the Advancing Person and (b) the identity of the Person (the
“Servicer’s Assignee”) that will, subject to Section 5.24(b) hereof, have the right to make withdrawals from the Collection Account pursuant to Section 5.03(b) hereof to reimburse previously unreimbursed Delinquency Advances
and/or Servicing Advances (“Advance Reimbursement Amounts”). If the Servicer enters into such an Advance Facility pursuant to this Section 5.24, upon reasonable request of the Advancing Person, the Indenture Trustee shall execute a
letter of acknowledgment, as prepared by the Servicer confirming its receipt of written notice of the existence of such Advance Facility. To the extent that an Advancing Person purchases or funds any Delinquency Advance or any Servicing Advance and
provides the Indenture Trustee with written notice acknowledged by the Servicer that such Advancing Person is entitled to reimbursement directly from the Indenture Trustee pursuant to the terms of the Advance Facility, such Advancing Person shall be
entitled to receive reimbursement pursuant to this Agreement for such amount to the extent provided in Section 5.24(b). Such notice from the Advancing Person must specify the amount of the reimbursement, the Section of this Agreement that
permits the applicable Delinquency Advance or Servicing Advance to be reimbursed and the section(s) of the Advance Facility that entitle the Advancing Person to request reimbursement from the Indenture Trustee, rather than the Servicer, and include
the Servicer’s acknowledgment thereto or proof of an Event of Default under the Advance Facility. The Indenture Trustee shall have no duty or liability with respect to any calculation of any reimbursement to be paid to an Advancing Person and
shall be entitled to rely without independent investigation on the Advancing Person’s notice provided pursuant to this Section 5.24. For the avoidance of doubt, an Advancing Person whose obligations under the Advance Facility are limited
to the funding of Delinquency Advances and/or Servicing Advances shall not be considered to be a subservicer hereunder. 
 (b)
Notwithstanding the foregoing, and for the avoidance of doubt, (i) the Servicer and/or the Servicer’s Assignee shall only be entitled to reimbursement of Delinquency Advance reimbursement amounts hereunder from withdrawals from the
Collection Account pursuant to Section 5.03(b) and (c) of this Agreement and shall not otherwise be entitled to make withdrawals or receive amounts that shall be deposited in the Payment Account, and (ii) none of the Indenture Trustee
or the Noteholders shall have any right to, or otherwise be entitled to, receive any Delinquency Advance reimbursement amounts to which the Servicer or Servicer’s Assignee, as applicable, shall be entitled pursuant to Section 5.03(b) and
(c) hereof. An Advance Facility may be terminated by the joint written direction of the Servicer and the related Advancing Person. Written notice of such termination shall be delivered to the Indenture Trustee in the manner set forth in
Section 10.06 hereof. Neither the Issuing Entity nor the Indenture Trustee shall, as a result of the existence of any Advance Facility, have any additional duty or liability with respect to the calculation or payment of any Delinquency Advance
reimbursement amount, nor, as a result of the existence of any Advance Facility, shall the Issuing Entity or the Indenture Trustee have any additional responsibility to track or monitor the administration of the Advance Facility or the payment of
Delinquency Advance reimbursement amounts to the Servicer’s Assignee. The Servicer shall indemnify the Indenture Trustee, any successor Servicer and the Issuing Entity for any claim, loss, liability or damage resulting from any claim by the
related Advancing Person, except to the extent that such claim, loss, liability or damage resulted from or arose out of negligence, recklessness or willful misconduct on the part of the Indenture Trustee or any successor Servicer, as the case may
be, or failure by the successor Servicer to remit funds as required by this Agreement or the commission of an act or 

  

 50 

 
omission to act by the successor Servicer and the passage of any applicable cure or grace period, such that an Event of Default under this Agreement occurs
or such entity is subject to termination for cause under this Agreement. The Servicer shall maintain and provide to any successor Servicer and, upon request, the Indenture Trustee a detailed accounting on a loan-by-loan basis as to amounts advanced
by, pledged or assigned to, and reimbursed to any Advancing Person. The successor Servicer and the Indenture Trustee, as applicable, shall be entitled to rely on any such information provided by the predecessor Servicer, and the successor Servicer
and the Indenture Trustee, as applicable, shall not be liable for any errors in such information. 
 (c) If an Advancing
Person is entitled to reimbursement for any particular Delinquency Advance or Servicing Advance as set forth in Section 5.24(a), then the Servicer shall not be permitted to reimburse itself therefor under Section 5.03(b) and (c), but
instead the Servicer shall include such amounts in the applicable remittance to the Indenture Trustee made pursuant to Section 5.02 to the extent of amounts on deposit in the Collection Account on the related Servicer Remittance Date. The
Indenture Trustee is hereby authorized to pay to an Advancing Person reimbursements for Delinquency Advances and Servicing Advances from the Payment Account to the same extent the Servicer would have been permitted to reimburse itself for such
Delinquency Advances and/or Servicing Advances in accordance with Section 5.03(b) and (c), had the Servicer made such Delinquency Advance or Servicing Advance. 
 (d) All Delinquency Advances and Servicing Advances made pursuant to the terms of this Agreement shall be deemed made and shall be
reimbursed on a “first in first out” (FIFO) basis. In the event the Servicer’s Assignee shall have received some or all of an Delinquency Advance reimbursement amount related to Delinquency Advances and/or Servicing Advances that were
made by a Person other than the Servicer or its related Advancing Person in error, then such Servicer’s Assignee shall be required to remit any portion of such Delinquency Advance reimbursement amount to each Person entitled to such portion of
such Delinquency Advance reimbursement amount. Without limiting the generality of the foregoing, the Servicer shall remain entitled to be reimbursed pursuant to Section 5.03(b) and (c) for all Delinquency Advances and/or Servicing Advances
funded by the Servicer to the extent the related Delinquency Advance reimbursement amounts have not been assigned, sold or pledged to such Advancing Person or Servicer’s Assignee. 
 (e) In the event the Servicer is terminated pursuant to Section 7.01, the Advancing Person shall succeed to the terminated
Servicer’s right of reimbursement set forth in Section 5.03(b) and (c) to the extent of such Advancing Person’s financing of Delinquency Advances or Servicing Advances hereunder then remaining unreimbursed. 
 (f) Any amendment to this Section 5.24 or to any other provision of this Agreement that may be necessary or appropriate to effect the
terms of an Advance Facility as described generally in this Section 5.24, including amendments to add provisions relating to a successor Servicer, may be entered into by the Indenture Trustee, the Sponsor, the Depositor, the Issuing Entity and
the Servicer without the consent of any Noteholder, provided such amendment complies with Section 10.03 hereof. All reasonable costs and expenses (including attorneys’ fees) of each party hereto of any such amendment shall be borne solely
by the Servicer. The parties hereto hereby acknowledge and agree that: (a) the Delinquency Advances and/or Servicing Advances financed by, sold and/or pledged to an Advancing Person under any 

  

 51 

 
Advance Facility are obligations owed to the Servicer payable only from the cash flows and proceeds received under this Agreement for reimbursement of
Delinquency Advances and/or Servicing Advances only to the extent provided herein, and the Indenture Trustee and the Issuing Entity are not, as a result of the existence of any Advance Facility, obligated or liable to repay any Delinquency Advances
and/or Servicing Advances financed by the Advancing Person; (b) the Servicer will be responsible for remitting to the Advancing Person the applicable amounts collected by it as reimbursement for Delinquency Advances and/or Servicing Advances
purchased or funded by the Advancing Person, subject to the provisions of this Agreement; and (c) the Indenture Trustee shall not have any responsibility to track or monitor the administration of the financing arrangement between the Servicer
and any Advancing Person. 
 ARTICLE VI 
 APPLICATION OF FUNDS 
 Section 6.01. Deposits to the Payment Account. By 12:00 noon (Eastern
Time) on each Servicer Remittance Date, the Servicer shall remit to the Indenture Trustee for deposit in the Payment Account, from funds on deposit in the Collection Account, an amount equal to the Servicer Remittance Amount with respect to the
related Payment Date, minus any portion thereof payable to the Servicer pursuant to Section 5.03. 
 Section 6.02. Collection of
Money. Except as otherwise expressly provided herein, the Indenture Trustee may demand payment or delivery of all money and other property payable to or receivable by the Indenture Trustee pursuant to this Agreement, including all payments due
on the Mortgage Loans in accordance with the respective terms and conditions of such Mortgage Loans and required to be paid over to the Indenture Trustee by the Servicer. The Indenture Trustee shall hold all such money and property received by it,
as part of the Trust Estate and shall apply it as provided in the Indenture. 
 Section 6.03. Application of Principal and Interest.
In the event that Net Liquidation Proceeds on a Liquidated Mortgage Loan are less than the Principal Balance of the related Mortgage Loan plus accrued interest thereon, or any Mortgagor makes a partial payment of any Monthly Payment due on a
Mortgage Loan, such Net Liquidation Proceeds or partial payment shall be applied to payment of the related Mortgage Note as provided therein, and if not so provided, first to interest accrued at the Mortgage Interest Rate and then to principal.

 Section 6.04. [Reserved.] 
 Section 6.05. Compensating Interest. Not later than the Servicer Remittance Date, the Servicer shall remit to the Indenture Trustee (without right to reimbursement therefor) for deposit into the Payment Account, an amount equal to,
for all of the Mortgage Loans, the lesser of (a) the Prepayment Interest Shortfalls for all of the Mortgage Loans for the related Payment Date resulting from Principal Prepayments in full during the related Prepayment Period and (b) its
aggregate Servicing Fee with respect to all of the Mortgage Loans for the related Due Period (the “Compensating Interest”). 
 Section 6.06. [Reserved.] 
  

 52 

 ARTICLE VII 
 SERVICER DEFAULT 
 Section 7.01. Servicer Events of Default. (a) The following events
shall each constitute a “Servicer Event of Default” hereunder: 
 (i) any failure by the Servicer to remit to the
Indenture Trustee any payment required to be made by the Servicer under the terms of this Agreement (other than Servicing Advances covered by clause (ii) below and Delinquency Advances, which shall have no cure period), which continues
unremedied for one (1) Business Day after the date upon which notice of such failure, requiring the same to be remedied, shall have been given to the Servicer by the Indenture Trustee or to the Servicer and Indenture Trustee by the Noteholders
affected thereby evidencing Percentage Interests of at least 25%; provided however that any failed remittance cured within one Business Day of such failure shall include interest accrued at the Prime Rate (as set forth in the Wall Street Journal) on
the amount of such remittance from and including the date the remittance was required to be made to and including the date the remittance was actually made; 
 (ii) the failure by the Servicer to make any required Servicing Advance, which failure continues unremedied for a period of thirty
(30) days after the date on which written notice of such failure, requiring the same to be remedied, shall have been given to the Servicer by the Indenture Trustee or to the Servicer and the Indenture Trustee by the Noteholders affected thereby
evidencing Percentage Interests of at least 25%; 
 (iii) any failure on the part of the Servicer duly to observe or perform
in any material respect any other of the covenants or agreements on the part of the Servicer contained in this Agreement, or the failure of any representation and warranty made pursuant to Section 3.01(a) hereof to be true and correct which
continues unremedied for a period of thirty (30) days after the date on which written notice of such failure, requiring the same to be remedied, shall have been given to the Servicer by the Indenture Trustee or to the Servicer and the Indenture
Trustee by the Noteholders affected thereby evidencing Percentage Interests of at least 25%; 
 (iv) a decree or order of a
court or agency or supervisory authority having jurisdiction in an involuntary case under any present or future federal or state bankruptcy, insolvency or similar law or for the appointment of a conservator or receiver or liquidation in any
insolvency, readjustment of debt, marshalling of assets and liabilities or similar proceedings, or for the winding-up or liquidation of its affairs, shall have been entered against the Servicer and such decree or order shall have remained in force,
undischarged or unstayed for a period of ninety (90) days; 
 (v) the Servicer shall consent to the appointment of a
conservator or receiver or liquidator in any insolvency, readjustment of debt, marshalling of assets and liabilities or similar proceedings of or relating to the Servicer or of or relating to all or substantially all of the Servicer’s property;

  

 53 

 (vi) the Servicer shall admit in writing its inability generally to pay its debts as they
become due, file a petition to take advantage of any applicable insolvency or reorganization statute, make an assignment for the benefit of its creditors, or voluntarily suspend payment of its obligations; 
 (vii) if on any Payment Date the Rolling Six Month Delinquency Ratio exceeds       %; 
 (viii) if on any Payment Date, the Cumulative Realized Loss Percentage exceeds the following percentages on any Payment Date during the
following periods: 
  

				
	 Payment Date Occurring During
	  	Percentage	 
	 __________ - __________
	  	____	%
	 __________ - __________
	  	____	%
	 __________ - __________
	  	____	%
	 __________ and thereafter
	  	____	%

 (ix) the occurrence of an Event of Default under the Indenture. 
 So long as a Servicer Event of Default shall have occurred and not have been remedied: (x) with respect solely to Section 7.01(a)(i), if such
payment is in respect of Delinquency Advances or Compensating Interest owing by the Servicer and such payment is not made by 12:00 noon New York time on the second Business Day prior to the applicable Payment Date, the Indenture Trustee, upon
receipt of written notice or actual knowledge by a Responsible Officer of the Indenture Trustee of such failure, shall give immediate telephonic and facsimile notice of such failure to a Servicing Officer of the Servicer and the Indenture Trustee
may, and upon request of the Holders representing more than 50% of the Class Note Balance, shall, terminate all of the rights and obligations of the Servicer under this Agreement, except for the Servicer’s indemnification obligation under
Section 5.19, and the Indenture Trustee (if it is the successor servicer) or a successor servicer appointed in accordance with Section 7.02, shall immediately make such Delinquency Advance or payment of Compensating Interest as provided in
Section 7.02 and assume, pursuant to Section 7.02 hereof, the duties of a successor servicer; (y) with respect to that portion of Section 7.01(a)(i) not referred to in the preceding clause (x) and with respect to clauses
(ii), (iii), (iv), (v), (vi) and (xii) of Section 7.01(a), upon receipt of written notice or actual knowledge by a Responsible Officer of the Indenture Trustee, the Indenture Trustee shall, but only at the direction of the Majority
Noteholders, by notice in writing to the Servicer and a Responsible Officer of the Indenture Trustee, and in addition to whatever rights such Noteholders may have at law or equity to damages, including injunctive relief and specific performance,
terminate all the rights and obligations of the Servicer under this Agreement, except for the Servicer’s indemnification obligations under Section 5.19, and in and to the Mortgage Loans and the proceeds thereof, as Servicer; and
(z) with respect to clauses (vii)-(ix) of Section 7.01(a), upon receipt of written notice or actual knowledge by a Responsible Officer of the Indenture Trustee, the Indenture Trustee shall, after notice in writing to the Servicer and
a Responsible Officer of the Indenture Trustee, terminate all the rights and obligations of the Servicer under this Agreement, except for the Servicer’s indemnification obligations under Section 5.19, and in and to the Mortgage Loans and
the proceeds thereof, as Servicer. Upon receipt by the Servicer of such written notice, all authority and power of the 

  

 54 

 
Servicer under this Agreement, whether with respect to the Mortgage Loans or otherwise, shall, subject to Section 7.02, pass to and be vested in another
successor servicer, and another successor servicer is hereby authorized and empowered to execute and deliver, on behalf of the Servicer, as attorney-in-fact or otherwise, at the expense of the Servicer, any and all documents and other instruments
and do or cause to be done all other acts or things necessary or appropriate to effect the purposes of such notice of termination, including, but not limited to, the transfer and endorsement or assignment of the Mortgage Loans and related documents.
The Servicer agrees to cooperate (and to pay any related costs and expenses) with the Indenture Trustee or another successor servicer in effecting the termination of the Servicer’s responsibilities and rights hereunder, including, without
limitation, the transfer to another successor servicer, for administration by it of all amounts which shall at the time be credited by the Servicer to the Collection Account or thereafter received with respect to the Mortgage Loans. The Indenture
Trustee shall promptly notify the Rating Agencies of the occurrence of a Servicer Event of Default upon discovery or receipt of notice by a Responsible Officer of the Indenture Trustee; provided, however, the Indenture Trustee shall not be obligated
to monitor the Servicer’s compliance with the terms hereof or to determine the occurrence of any Servicer Event of Default. 
 Section
7.02. Indenture Trustee to Act: Appointment of Successor. (a) (i) On and after the time the Servicer receives a notice of termination pursuant to Section 7.01, or the Indenture Trustee receives the resignation of the Servicer
evidenced by an Opinion of Counsel pursuant to Section 5.21, or the Servicer is removed as Servicer pursuant to this Article VII, in which event the Indenture Trustee shall promptly notify the Rating Agencies, and except as otherwise provided
in this Section 7.02, the Indenture Trustee (provided the Indenture Trustee receives 20 days’ prior written notice) or another successor servicer shall be the successor in all respects to the Servicer in its capacity as servicer under this
Agreement and the transactions set forth or provided for in this Agreement, and shall be subject to all the responsibilities, restrictions, duties, liabilities and termination provisions relating thereto placed on the Servicer by the terms and
provisions of this Agreement. The Indenture Trustee or another successor servicer and the Indenture Trustee shall take such action, consistent with this Agreement, as shall be necessary to effect any such succession. If the Indenture Trustee or any
other successor servicer is acting as Servicer hereunder, it shall be subject to termination under Section 7.01 upon the occurrence or continuation of a Servicer Event of Default applicable to it as Servicer. The Indenture Trustee hereby agrees
to act as successor servicer pursuant to the terms of this Agreement upon the termination or resignation of the Servicer as provided in this Section 7.02, provided that the Indenture Trustee receives all of the necessary documents relating to
the Mortgage Loans and computer records reflecting the status of the Mortgage Loans as of the date of such transfer of servicing. The Indenture Trustee and any successor servicer will not be obligated to incur any expenses or costs (including,
without limitation, legal fees and the preparation and recording of all intervening assignments of mortgage) in connection with the transfer of servicing of the Mortgage Loans to the Indenture Trustee, as successor servicer, or any other successor
servicer, as applicable, or to compel the performance of any obligations by any party to this Agreement. Any successor servicer and the Indenture Trustee prior to its becoming the successor servicer shall not be liable for any actions, omissions or
defaults of any servicer prior to it or breaches of representations and warranties of the servicer prior to it. The Indenture Trustee or any other successor servicer, as successor servicer, shall be obligated to pay Compensating Interest pursuant to
Section 6.05 in any event and to make Delinquency Advances pursuant to Section 

  

 55 

 
5.18 unless, and only to the extent the successor servicer determines reasonably and in good faith that such advances would not be recoverable from the
proceeds of the related Mortgage Loan pursuant to Section 5.03, such determination to be evidenced by a certification of a Responsible Officer of the successor servicer delivered to the Indenture Trustee. Furthermore, neither the Indenture
Trustee nor any successor servicer shall be obligated to fund any resulting discrepancy or shortfall in the Collection Account. Upon the transfer of the servicing of the Mortgage Loans, the Indenture Trustee shall provide the successor servicer with
an officer’s certificate that contains: (i) a complete description of all Events of Default by the Servicer under the Agreement of which a Responsible Officer of the Indenture Trustee has actual knowledge, which have not been fully cured
and (ii) confirmation that the Servicer Remittance Report and the reports described in Sections 5.09 and 5.10 have been timely filed by the Servicer with the Indenture Trustee. 
 (ii) In the event that any successor servicer is terminated or resigns pursuant to this Agreement or otherwise becomes unable to perform
its obligations under this Agreement, the Indenture Trustee will appoint a successor servicer in accordance with the provisions of this Section 7.02; provided, that any successor servicer, shall satisfy the requirements set forth in
Section 7.02(b) and shall be approved by the Rating Agencies. 
 (b) Any successor servicer hereunder (other than the
Indenture Trustee) shall be a housing and home finance institution, bank or mortgage servicing institution which has been designated as an approved seller-servicer by Fannie Mae or Freddie Mac, having equity of not less than $5,000,000 as determined
in accordance with GAAP, as the successor to the Servicer hereunder in the assumption of all or any part of the responsibilities, duties or liabilities of the Servicer hereunder. 
 (c) In the event the Indenture Trustee is the successor servicer, it shall be entitled to the same Servicing Compensation (including the
Servicing Fee as adjusted pursuant to the definition thereof) and other funds pursuant to Section 5.08 hereof as the Servicer if the Servicer had continued to act as servicer hereunder. 
 (d) The Indenture Trustee and any successor servicer shall take such action, consistent with this Agreement, as shall be necessary to
effectuate any such succession. The Servicer agrees to cooperate with the Indenture Trustee and any successor servicer in effecting the termination of the Servicer’s servicing responsibilities and rights hereunder and shall promptly provide the
Indenture Trustee, or such successor servicer, as applicable, at the Servicer’s cost and expense, all documents and records reasonably requested by it to enable it to assume the Servicer’s functions hereunder and shall promptly also
transfer to the Indenture Trustee, or such successor servicer, as applicable, all amounts that then have been or should have been deposited in the Collection Account by the Servicer or that are thereafter received with respect to the Mortgage Loans,
including without limitation all Liquidation Proceeds and Insurance Proceeds, and payments of insurance deductible amounts by the Servicer pursuant to Section 5.04(b) with respect to all insurance claims arising during the Servicer’s
tenure. Any collections received by the Servicer after such removal or resignation shall be endorsed by it to the Indenture Trustee or a successor servicer, as applicable, and remitted directly to the Indenture Trustee (or, at the direction of the
Indenture Trustee, to any other successor servicer). Neither 

  

 56 

 
the Indenture Trustee nor any other successor servicer shall be held liable by reason of any failure to make, or any delay in making, any payment hereunder
or any portion thereof caused by (i) the failure of the Servicer to deliver, or any delay in delivering, cash, documents or records to it, or (ii) restrictions imposed by any regulatory authority having jurisdiction over the Servicer
hereunder. The Servicer shall not resign as Servicer until a successor servicer has been appointed. 
 (e) In the event that
the Servicer is terminated hereunder and no successor servicer has been appointed hereunder, the Indenture Trustee may appoint a successor servicer (which may be an affiliate of the Indenture Trustee) or petition a court of competent jurisdiction to
appoint a successor servicer. Pending appointment of such a successor servicer hereunder, the Indenture Trustee shall be the successor servicer and act in such capacity; provided, however, that the Indenture Trustee, in its capacity as successor
servicer pending appointment of another successor servicer, (i) shall be obligated to make Delinquency Advances or Servicing Advances only to the extent that the Indenture Trustee deems such advances to be recoverable, (ii) shall be
obligated to make Compensating Interest payments in respect of any Payment Date only to the extent of any Servicing Fee received by the Indenture Trustee in respect of such Payment Date, (iii) shall not be obligated to perform any other duties
or obligations of the Servicer hereunder until the Indenture Trustee has received all servicing records and files from the predecessor servicer and in no event later than 90 days following the termination of the Servicer; provided, however, the
Indenture Trustee shall use its reasonable efforts to perform the duties and obligations of the Servicer prior to the end of such 90 day period, (iv) shall not be obligated to perform any of the administrative duties specified in
Section 5.23 hereof, and (v) shall be entitled to payment of all Servicing Compensation. In connection with any appointment and assumption of duties of a successor servicer, the Indenture Trustee may make such arrangements for the
compensation of such successor servicer out of payments on Mortgage Loans; provided, however, that such compensation may not be in excess of that permitted the Servicer pursuant to Section 5.08, together with other Servicing Compensation. The
Servicer, the Indenture Trustee and such successor Servicer shall take such action, consistent with this Agreement, as shall be necessary to effectuate any such succession. 
 (f) In the event the Indenture Trustee, or any successor servicer incurs out-of-pocket expenses other than Servicing Advances or
Delinquency Advances in connection with the transfer of servicing hereunder, which expenses are required to be borne by the Servicer hereunder, and such expenses are not promptly reimbursed by the Servicer or recoverable out of amounts reimbursable
to the Servicer out of the Collection Account, the Indenture Trustee shall make such reimbursement to the applicable party out of funds in the Payment Account on any Payment Date after all Payments to Noteholders on such Payment Date have been made
but before any distribution to the Certificateholders. The right of the Indenture Trustee to reimbursement from the Payment Account for any of the Indenture Trustee’s costs and expenses in connection with the transfer of any servicing hereunder
shall be in addition to any rights of the Indenture Trustee to indemnification and reimbursement under the Indenture. 
 (g)
In the event that the Servicer is terminated or resigns hereunder, and at such time the Servicer has made unreimbursed Delinquency Advances or Servicing Advances out of its own funds, 
  

 57 

 (i) any such Delinquency Advances or Servicing Advances shall be allocated by the
successor servicer in whole or in part to specific Mortgage Loans which are delinquent at the time of the transfer of servicing, which allocation shall be based on loan-level accounts of the portion of each Delinquency Advance or Servicing Advance
which has been funded by the Servicer from its own funds consistently maintained by the former Servicer, or, if no such accounts exist, then in the successor servicer’s discretion; 
 (ii) following the transfer of servicing, the successor servicer shall reimburse the former Servicer for such Delinquency Advances and
Servicing Advances in accordance with the allocations determined in accordance with clause (i) above only out of the proceeds of the Mortgage Loans to which they relate and otherwise subject to Section 5.03, or, to the extent the successor
servicer determines any such Delinquency Advance or Servicing Advance to be a Nonrecoverable Advance, out of any funds in the Collection Account. 
 (h) In connection with the termination or resignation of the Servicer hereunder, the successor Servicer shall represent and warrant that it is a member of MERS in good standing and shall agree to comply in all
material respects with the rules and procedures of MERS in connection with the servicing of the Mortgage Loans that are registered with MERS, in which case the predecessor Servicer shall cooperate with the successor Servicer in causing the MERS
System to be revised to reflect the transfer of servicing to the successor Servicer as necessary under MERS’ rules and regulations. 
 Section 7.03. Waiver of Defaults. The Majority Noteholders may, on behalf of all Noteholders, waive any events permitting removal of the Servicer as servicer pursuant to this Article VII; provided, however, that the
Majority Noteholders may not waive a default in making a required payment on a Note without the consent of the Holder of such Note. Upon any waiver of a past default, such default shall cease to exist, and any Servicer Event of Default arising
therefrom shall be deemed to have been remedied for every purpose of this Agreement. No such waiver shall extend to any subsequent or other default or impair any right consequent thereto except to the extent expressly so waived. Notice of any such
waiver shall be given by the Indenture Trustee to the Rating Agencies. 
 ARTICLE VIII 
 TERMINATION 
 Section 8.01.
Termination. (a) Subject to Section 8.02, this Agreement shall terminate upon notice to the Indenture Trustee of either: (i) the disposition of all funds with respect to the last Mortgage Loan and the remittance of all funds
due hereunder and the payment of all amounts due and payable to the Indenture Trustee or (ii) mutual consent of the Owner Trustee, on behalf of the Issuing Entity, at the direction of all the Certificateholders, the Indenture Trustee, the
Servicer, the Swap Provider (if the Swap Agreement is still outstanding) and all Noteholders in writing. 
  

 58 

 (b) In addition, subject to Section 8.02, the Sponsor may, at its sole option, cost
and expense, terminate the Issuing Entity in accordance with the terms of Section 10.01 of the Indenture. 
 (c) If on
any date, the Servicer determines that there are no outstanding Mortgage Loans and no other funds or assets in the Trust Estate other than funds in the Payment Account, the Servicer shall send a final payment notice promptly to the Indenture
Trustee, who shall forward notice to each Noteholder in accordance with Section 8.01(d). 
 (d) Notice of any
termination, specifying the Payment Date upon which the Issuing Entity will terminate and the Noteholders shall surrender their Notes to the Indenture Trustee for final payment and cancellation, shall be given promptly by the Servicer to the
Indenture Trustee, who shall forward the notice by letter to Noteholders mailed during the month of such final payment before the Servicer Remittance Date in such month, specifying (i) the Payment Date upon which final payment of the Notes will
be made upon presentation and surrender of Notes at the office of the Indenture Trustee therein designated, (ii) the amount of any such final payment and (iii) that the Record Date otherwise applicable to such Payment Date is not
applicable, payments being made only upon presentation and surrender of the Notes at the office of the Indenture Trustee therein specified. 
 (e) In the event that all of the Noteholders do not surrender their Notes for cancellation within six (6) months after the time specified in the above-mentioned written notice, the Indenture Trustee shall give a
second written notice to the remaining Noteholders to surrender their Notes for cancellation and receive the final payment with respect thereto. If within six (6) months after the second notice, all of the Notes shall not have been surrendered
for cancellation, the Indenture Trustee may take appropriate steps, or may appoint an agent to take appropriate steps, to contact the remaining Noteholders concerning surrender of their Notes and the cost thereof shall be paid out of the funds and
other assets which remain subject hereto. If within nine (9) months after the second notice all the Notes shall not have been surrendered for cancellation, the Certificateholders shall be entitled to all unclaimed funds and other assets which
remain subject hereto and the Indenture Trustee upon transfer of such funds shall be discharged of any responsibility for such funds and the Noteholders shall look only to the Certificateholders for payment. Such funds shall remain uninvested.

 Section 8.02. Additional Termination Requirements. By their acceptance of the Notes, the Holders thereof hereby agree to appoint
the Servicer as their attorney in fact to: (i) adopt a plan of complete liquidation (and the Noteholders hereby appoint the Indenture Trustee as their attorney in fact to sign such plan) as appropriate and (ii) to take such other action in
connection therewith as may be reasonably required to carry out such plan of complete liquidation all in accordance with the terms hereof. 
 Section 8.03. Accounting Upon Termination of Servicer. Upon termination of the Servicer, the Servicer shall, at its expense: 
 (a) deliver to the successor servicer or, if none shall yet have been appointed, to the Indenture Trustee, the funds in any Account administered by the Servicer; 
  

 59 

 (b) deliver to the successor servicer or, if none shall yet have been appointed, to the
Indenture Trustee all Mortgage Files and related documents and statements held by it hereunder and a Mortgage Loan portfolio computer tape; 
 (c) deliver to the successor servicer, or, if none shall yet have been appointed, to the Indenture Trustee a full accounting of all funds, including a statement showing the Monthly Payments collected by it and a
statement of monies held in trust by it for the payments or charges with respect to the Mortgage Loans; and 
 (d) execute and
deliver such instruments and perform all acts reasonably requested in order to effect the orderly and efficient transfer of servicing of the Mortgage Loans to the successor servicer and to more fully and definitively vest in such successor all
rights, powers, duties, responsibilities, obligations and liabilities of the Servicer under this Agreement. 
 Section 8.04. [Reserved.]

 ARTICLE IX 
 [RESERVED] 
 ARTICLE X 
 MISCELLANEOUS PROVISIONS 
 Section 10.01. Limitation on Liability. (a) None of the
Issuing Entity, the Owner Trustee, the Depositor, the Sponsor, the Servicer, the Indenture Trustee or any of the directors, officers, employees or agents of such Persons shall be under any liability to the Issuing Entity, the Noteholders for any
action taken, or for refraining from the taking of any action, in good faith pursuant to this Agreement, or for errors in judgment; provided, however, that this provision shall not protect the Issuing Entity, the Owner Trustee, the
Depositor, the Sponsor, the Servicer, the Indenture Trustee or any such Person against liability for any breach of warranties or representations made herein by such party, or against any specific liability imposed on each such party pursuant to this
Agreement or against any liability which would otherwise be imposed upon such party by reason of willful misfeasance, bad faith or negligence in the performance of duties or by reason of failure to perform its obligations or duties hereunder. The
Issuing Entity, the Owner Trustee, the Depositor, the Sponsor, the Servicer, the Indenture Trustee and any director, officer, employee or agent of such Person may rely in good faith on any document of any kind which, prima facie, is properly
executed and submitted by any appropriate Person respecting any matters arising hereunder. 
 (b) It is expressly understood
and agreed by the parties hereto that (i) this Agreement is executed and delivered by
                                        
                            , not individually or personally but solely as Owner Trustee under the Trust
Agreement, in the exercise of the powers and authority conferred and vested in it under the Trust Agreement, (ii) each of the representations, undertakings and agreements herein made on the part of the Issuing Entity is made and intended not as
personal representations, undertakings and agreements by
                                        
         but is made and intended for the purpose for binding only the Issuing Entity, 

  

 60 

 
(iii) nothing herein contained shall be construed as creating any liability on
            , individually or personally, to perform any covenant either expressed or implied contained herein, all such liability, if any, being expressly waived by the parties
hereto and by any Person claiming by, through or under the parties hereto and (iv) under no circumstances shall              be personally liable for the payment of any
indebtedness or expenses of the Issuing Entity or be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Issuing Entity under this Agreement or any other related documents. 

Section 10.02. Acts of Noteholders. (a) Subject to Section 7.04 and except as otherwise specifically provided herein, whenever
Noteholder action, consent or approval is required under this Agreement, such action, consent or approval shall be deemed to have been taken or given on behalf of, and shall be binding upon, all Noteholders if the Majority Noteholders agree to take
such action or give such consent or approval. 
 (b) The death or incapacity of any Noteholder shall not operate to terminate
this Agreement or the Issuing Entity, nor entitle such Noteholder’s legal representatives or heirs to claim an accounting or to take any action or proceeding in any court for a partition or winding up of the Issuing Entity, nor otherwise affect
the rights, obligations and liabilities of the parties hereto or any of them. 
 (c) No Noteholder shall have any right to
vote (except as expressly provided for herein) or in any manner otherwise control the operation and management of the Issuing Entity, or the obligations of the parties hereto, nor shall anything herein set forth, or contained in the terms of the
Notes, be construed so as to constitute the Noteholders from time to time as partners or members of an association; nor shall any Noteholder be under any liability to any third person by reason of any action taken by the parties to this Agreement
pursuant to any provision hereof. 
 Section 10.03. Amendment. (a) This Agreement may be amended from time to time by the Owner
Trustee, on behalf of the Issuing Entity, the Servicer, the Depositor, Sponsor and the Indenture Trustee by written agreement, without notice to or consent of the Noteholders and without the consent of the Swap Provider to cure any ambiguity, to
correct or supplement any provisions herein, to comply with any changes in the Code, or to make any other provisions with respect to matters or questions arising under this Agreement which shall not be inconsistent with the provisions of this
Agreement; provided, however, that such action shall not adversely affect in any material respect the interests of any Noteholder or the Swap Provider and will not prevent the Notes from being characterized as debt for United States
federal income tax purposes or cause the Issuing Entity to be subject to federal income tax, as evidenced by (i) an Opinion of Counsel, at the expense of the party requesting the change, delivered to the Indenture Trustee to such effect or
(ii) a letter from each Rating Agency confirming that such action will not result in the reduction, qualification or withdrawal of the then-current ratings on the Notes. The Indenture Trustee shall give prompt written notice to the Rating
Agencies of any amendment made pursuant to this Section 10.03. 
 (b) This Agreement may be amended from time to time by
the Owner Trustee, on behalf of the Issuing Entity, the Servicer, the Depositor, the Sponsor and the Indenture 

  

 61 

 
Trustee, with the consent of the Noteholders representing more than 50% of the outstanding Principal Balance of the Notes of each affected Class and all of
the Certificateholders and with the consent of the Swap Provider (if the Swap Agreement is still outstanding and affected); provided, however, that no such amendment shall reduce in any manner the amount of, or delay the timing of,
payments received on Mortgage Loans which are required to be paid on any Class of Notes without the consent of the Holders of such Class of Notes or reduce the percentage for the Holders of which are required to consent to any such amendment without
the consent of the Holders of 100% of such Class of Notes affected thereby. 
 (c) It shall not be necessary for the consent
of Holders under this Section 10.03 to approve the particular form of any proposed amendment, but it shall be sufficient if such consent shall approve the substance thereof. 
 (d) In executing, or accepting the additional trusts created by, any supplemental indenture permitted by Article IX of the Indenture or
the modifications thereby of the trusts created by the Indenture, the Indenture Trustee shall be entitled to receive, and (subject to Section 6.01 of the Indenture) shall be fully protected in relying upon, an Opinion of Counsel stating that
the execution of such supplemental indenture is authorized or permitted by the Indenture. The Indenture Trustee may, but shall not be obligated to, enter into any such supplemental indenture that affects the Indenture Trustee’s own rights,
duties or immunities under the Indenture or otherwise. The Servicer, on behalf of the Issuing Entity, shall cause executed copies of any supplemental indentures to be delivered to the Rating Agencies. 
 Section 10.04. Recordation of Agreement. To the extent permitted by applicable law, this Agreement, or a memorandum thereof if permitted under
applicable law, is subject to recordation in all appropriate public offices for real property records in all of the counties or other comparable jurisdictions in which any or all of the properties subject to the Mortgages are situated, and in any
other appropriate public recording office or elsewhere, such recordation to be effected by the Servicer at the Noteholders’ expense on direction and at the expense of Majority Noteholders requesting such recordation, but only when accompanied
by an Opinion of Counsel to the effect that such recordation materially and beneficially affects the interests of the Noteholders or is necessary for the administration or servicing of the Mortgage Loans. 
 Section 10.05. Duration of Agreement. This Agreement shall continue in existence and effect until terminated as herein provided. 
 Section 10.06. Notices. All demands, notices and communications hereunder shall be in writing and shall be deemed to have been duly given when
delivered to (i) in the case of the Servicer, Accredited Home Lenders, Inc., 15090 Avenue of Science, San Diego, California 92128, Attention: Director of Operations with a copy to General Counsel; (ii) in the case of the Issuing Entity,
Accredited Mortgage Loan Trust 200  -  , c/o the Owner Trustee at its Corporate Trust Office, Attention: Corporate Trust Administration; (iii) in the case of the Indenture Trustee,
                                        
                                , Attn:
                                    ; (iv) in the case of
the Sponsor, Accredited Home Lenders, Inc., 15090 Avenue of Science, San Diego, California 92128, Attention: Investor Reporting; (v) in the case of the Underwriter,
                                        
                     (vi) in the case of [Rating Agencies]; (vii) in the case of
[                                        
Attention: ]; (viii) in the case of
[                                       
 ]; 

  

 62 

 
(ix) in the case of the Depositor, Accredited Mortgage Loan REIT Trust, 15090 Avenue of Science, San Diego, California 92128, Attention: General Counsel;
(x) [in the case of the Swap Provider,
                                        
                    ] and (xi) in the case of the Noteholders, as set forth in the Note Register. Any such notices shall be deemed to be
effective with respect to any party hereto upon the receipt of such notice by such party, except that notices to the Noteholders shall be effective upon mailing or personal delivery. 
 Section 10.07. Severability of Provisions. If any one or more of the covenants, agreements, provisions or terms of this Agreement shall be held
invalid for any reason whatsoever, 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 covenants, agreements, provisions or terms of this Agreement. 
 Section 10.08. No Partnership. Nothing
herein contained shall be deemed or construed to create a co-partnership or joint venture between the parties hereto and the services of the Servicer shall be rendered as an independent contractor and not as agent for the Noteholders. 
 Section 10.09. Counterparts. This Agreement may be executed in one or more counterparts and by the different parties hereto on separate
counterparts, each of which, when so executed, shall be deemed to be an original; such counterparts, together, shall constitute one and the same agreement. 
 Section 10.10. Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the Issuing Entity, the Servicer, the Depositor, the Sponsor, the Indenture Trustee and the Noteholders
and their respective successors and permitted assigns. 
 Section 10.11. Headings. The headings of the various sections of this
Agreement have been inserted for convenience of reference only and shall not be deemed to be part of this Agreement. 
 Section 10.12. No
Petition. The Servicer, by entering into this Agreement hereby covenants and agrees, and the Noteholders, by the acceptance of their Notes are deemed to covenant and agree, that they will not at any time institute against the Issuing Entity, or
join in any institution against the Issuing Entity of, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any United States Federal or state bankruptcy law in connection with any
obligations relating to the Certificates, the Notes, this Agreement or any of the other Basic Documents. 
 This Section 10.12 will
survive for one year and one day following the termination of this Agreement. 
 Section 10.13. Third Party Beneficiary. The parties
agree that each of the Owner Trustee and the Swap Provider (if the Swap Agreement is still outstanding) is intended and shall have all rights of a third-party beneficiary of this Agreement. 
 Section 10.14. Intent of the Parties. It is the intent of the parties hereto and Noteholders that, for federal income taxes, state and local
income or franchise taxes and other taxes imposed 

  

 63 

 
on or measured by income, the Notes be treated as debt. The parties to this Agreement and the Holder of each Note, by acceptance of its Note, and each
Beneficial Owner thereof, agree to treat, and to take no action inconsistent with the treatment of, the related Notes in accordance with the preceding sentence for purposes of federal income taxes, state and local income and franchise taxes and
other taxes imposed on or measured by income. 
 Section 10.15. GOVERNING LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL.
(a) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS (AS OPPOSED TO CONFLICT OF LAWS PROVISIONS) OF THE STATE OF NEW YORK. 
 (b) THE ISSUING ENTITY, THE SERVICER, THE DEPOSITOR, THE SPONSOR, THE INDENTURE TRUSTEE HEREBY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION
OF THE COURTS OF THE STATE OF NEW YORK AND THE UNITED STATES DISTRICT COURT LOCATED IN THE BOROUGH OF MANHATTAN IN NEW YORK CITY, AND WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS UPON IT AND CONSENTS THAT ALL SUCH SERVICE OF PROCESS BE MADE BY
REGISTERED MAIL DIRECTED TO THE ADDRESS SET FORTH IN SECTION 10.06 HEREOF AND SERVICE SO MADE SHALL BE DEEMED TO BE COMPLETED FIVE (5) DAYS AFTER THE SAME SHALL HAVE BEEN DEPOSITED IN THE U.S. MAILS, POSTAGE PREPAID. THE ISSUING ENTITY, THE
DEPOSITOR, THE SPONSOR, THE SERVICER AND THE INDENTURE TRUSTEE EACH HEREBY WAIVE ANY OBJECTION BASED ON FORUM NON CONVENIENS, AND ANY OBJECTION TO VENUE OF ANY ACTION INSTITUTED HEREUNDER AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE
RELIEF AS IS DEEMED APPROPRIATE BY THE COURT. NOTHING IN THIS SECTION 10.15 SHALL AFFECT THE RIGHT OF THE ISSUING ENTITY, THE DEPOSITOR, THE SPONSOR, THE SERVICER OR THE INDENTURE TRUSTEE TO SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW
OR AFFECT ANY OF THEIR RIGHTS TO BRING ANY ACTION OR PROCEEDING IN THE COURTS OF ANY OTHER JURISDICTION. 
 (c) THE ISSUING
ENTITY, THE DEPOSITOR, THE SPONSOR, THE SERVICER, THE INDENTURE TRUSTEE AND THE SWAP PROVIDER EACH HEREBY WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE ARISING OUT OF,
CONNECTED WITH, RELATED TO, OR IN CONNECTION WITH THIS AGREEMENT. INSTEAD, ANY DISPUTE WILL BE RESOLVED IN A BENCH TRIAL WITHOUT A JURY. 
 [Remainder of Page Intentionally Left Blank] 
  

 64 

 IN WITNESS WHEREOF, the Servicer, the Issuing Entity, the Indenture Trustee, the Depositor and the
Sponsor have caused their names to be signed hereto by their respective officers thereunto duly authorized as of the day and year first above written. 
  

					
	ACCREDITED HOME LENDERS, INC.,
as Sponsor and Servicer
		
	 By:
	 	  
		 	 Name:
	 	 David E. Hertzel

		 	 Title:
	 	 GC, AVP & Ass’t Sec’y

	
	 ACCREDITED MORTGAGE LOAN TRUST 200  -  

		
	 By:
	 	  
		 	            , not in its individual capacity, but solely as Owner Trustee under the Trust
Agreement
			
		 	 By:
	 	  
		 		 	 Name:

		 		 	 Title:

	
	ACCREDITED MORTGAGE LOAN REIT TRUST
as Depositor
			
	 By:
	 	  	 	  
		 	Name:	 	Melissa Dant
		 	Title:	 	Senior Secondary Markets Counsel, Ass’t Vice President, and Ass’t Secretary
	
	 __________________________________________,

	 as Indenture Trustee

			
	 By:
	 	  	 	  
		 	Name:	 	
		 	Title:	 	
			
		 		 	
			
	 By:
	 	  	 	  
		 	Name:	 	
		 	Title:	 	

 [Signature Page to Sale and Servicing Agreement] 
  

 65 

 SCHEDULE I 
 MORTGAGE LOAN SCHEDULE 
  

 A-1 

 APPENDIX I 
 DEFINED TERMS 

 EXHIBIT A 
 CONTENTS OF THE MORTGAGE FILE 
 With respect to each Mortgage Loan, the Mortgage File shall include each of
the following items (copies to the extent the originals have been delivered to the Indenture Trustee for the benefit of the Noteholders, pursuant to Section 2.05 of the Sale and Servicing Agreement), all of which shall be available for
inspection by the Noteholders, to the extent required by applicable laws: 
 1. the original Mortgage Note, endorsed without recourse in
blank from the last endorsee thereof, including all intervening endorsements showing a complete chain of endorsement; 
 2. the related
original Mortgage with evidence of recording indicated thereon or a copy thereof certified by the applicable recording office and if the Mortgage Loan is registered on the MERS System, such Mortgage or an assignment of the Mortgage shall reflect
MERS as the mortgagee of record and shall include the MIN for such Mortgage Loan; 
 3. each intervening mortgage assignment, with evidence
of recording indicated thereon or if the original is not available, a copy thereof certified by the applicable recording office, if any, showing a complete chain of assignment from the last assignee thereof of the related Mortgage Loan to the
Sponsor (or to MERS, if the Mortgage Loan is registered on the MERS System), and noting the presence of a MIN (if the Mortgage Loan is registered on the MERS System) (which assignment may, at the Sponsor’s option, be combined with the
assignment referred to in subpart (4) hereof, in which case it must be in recordable form, but need not have been previously recorded); 
 4. Unless the Mortgage Loan is recorded on the MERS System, a mortgage assignment in recordable form (which, if acceptable for recording in the relevant jurisdiction as evidenced by an Opinion of Counsel addressed to the Indenture Trustee,
may be included in a blanket assignment or assignments) of each Mortgage from the Sponsor to the Indenture Trustee; 
 5. originals of all
assumption, modification and substitution agreements in those instances where the terms or provisions of a Mortgage or Mortgage Note have been modified or such Mortgage or Mortgage Note has been assumed (if any); and 
 6. an original title insurance policy or title opinion (or (A) a copy of the title insurance policy or title opinion, or (B) the related
binder, commitment or preliminary report, or copy thereof in which case the Sponsor hereby certifies that the original Mortgage has been delivered to the title insurance company that issued such binder, commitment or preliminary report). 

 

 A-1 

 In instances where the original recorded Mortgage or any intervening mortgage assignment or a completed
assignment of the Mortgage in recordable form cannot be delivered by the Sponsor to the Indenture Trustee prior to or concurrently with the execution and delivery of this Agreement, due to a delay in connection with recording, the Sponsor may:

 (a) with respect to item (3) above, in lieu of delivering such original recorded Mortgage or intervening mortgage assignment, deliver
to the Indenture Trustee, a copy thereof; provided, that the Sponsor certifies that the original Mortgage has been delivered to a title insurance company for recordation after receipt of its policy of title insurance or the related binder,
commitment or preliminary report; and 
 (b) in lieu of delivering the completed assignment in recordable form, deliver to the Indenture
Trustee, the assignment in recordable form, otherwise complete except for recording information. 
  

 A-2 

 EXHIBIT B 
 [RESERVED] 
  

 B-1 

 EXHIBIT C 
 INDENTURE TRUSTEE’S ACKNOWLEDGEMENT OF RECEIPT 
                     , 20     
  

			
	 [Lead Underwriter]
 ________________________________
 ________________________________
	  	 Accredited Home Lenders, Inc.
 15090 Avenue of Science
 San Diego, California 92128

		
	 Accredited Mortgage Loan REIT Trust
 15090 Avenue of Science
 San Diego, California 92128
	  	

  

	 	Re:	Sale and Servicing Agreement, dated as of                     ,
20     among Accredited Home Lenders, Inc., as 

	 	 	Sponsor and Servicer, Accredited Mortgage Loan REIT Trust, as depositor, Accredited 

	 	 	Mortgage Loan Trust 200    -    , and
                    , as Indenture Trustee 

 Ladies and Gentlemen: 
 In accordance with Section 2.06(b)(i) of the above-captioned Sale and Servicing Agreement, the
undersigned, as Indenture Trustee, hereby acknowledges receipt by it in good faith without notice of adverse claims, subject to the provisions of Sections 2.04 and 2.05 of the Sale and Servicing Agreement (as such provisions relate to the Mortgage
Loan), of, with respect to each Mortgage Loan, a Mortgage File containing the original Mortgage Note, except with respect to the list of exceptions attached hereto, and based on its examination and only as to the foregoing, the information set forth
in items (i), (ii) (with respect to property address only, excluding zip code), (iii) and (vi) of the definition of the “Mortgage Loan Schedule” accurately reflects information set forth in the Mortgage Note, and declares
that it holds and will hold such documents and the other documents delivered to it constituting the Indenture Trustee’s Mortgage Files, and that it holds or will hold all such assets and such other assets included in the definition of
“Trust Estate” that are delivered to it for the exclusive use and benefit of all present and future Noteholders. 
 The Indenture
Trustee has made no independent examination of any such documents beyond the review specifically required in the above-referenced Sale and Servicing Agreement. The Indenture Trustee makes no representations as to: (i) the validity, legality,
recordability, sufficiency, perfection, priority, enforceability or genuineness of any such documents or any of 

 
the Mortgage Loans identified on the Mortgage Loan Schedule, or (ii) the collectability, insurability, effectiveness or suitability of any such Mortgage
Loan. 
 The Mortgage Loan Schedule is attached to this Receipt. 
 Capitalized words and phrases used herein shall have the respective meanings assigned to them in Appendix I to the Indenture, dated as of
                    , 20    , by and between Accredited Mortgage Loan Trust
200  -   and the Indenture Trustee. 
  

			
	                                       
                                        
  ,

	 as Indenture Trustee

		
	 By:
	 	  
		 	 Name:

		 	 Title:

 EXHIBIT D 
 INITIAL CERTIFICATION OF INDENTURE TRUSTEE 
                     , 2005 
  

			
	 [Lead Underwriter]
 _______________________________
 _______________________________
	  	 Accredited Home Lenders, Inc.
 15090 Avenue of Science
 San Diego, California 92128

		
	 Accredited Mortgage Loan REIT Trust
 15090 Avenue of Science
 San Diego, California 92128
	  	

  

	 	Re:	Sale and Servicing Agreement, dated as of                     ,
20     among Accredited Home Lenders, Inc., as 

	 	 	Sponsor and Servicer, Accredited Mortgage Loan REIT Trust, as depositor, Accredited 

	 	 	Mortgage Loan Trust 200    -    , and
                    , as Indenture Trustee. 

 Ladies and Gentlemen: 
 In accordance with the provisions of Section 2.06(b)(ii) of the
above-referenced Sale and Servicing Agreement, the undersigned, as Indenture Trustee, hereby certifies that as to each Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage Loan paid in full or any Mortgage Loan listed on the
attachment hereto), it has reviewed the documents delivered to it pursuant to Section 2.05(a) of the Sale and Servicing Agreement and has determined that, except as noted on the attachment hereto, (i) all documents required to be delivered
to it pursuant to Section 2.05(a)(i)-(iv) and (vi) of the above-referenced Sale and Servicing Agreement are in its possession, (ii) such documents have been reviewed by it and appear regular on their face and have not been
mutilated, damaged, torn or otherwise physically altered (handwritten additions, changes or corrections do not constitute physical alteration if they reasonably appear to have been initialed by the Mortgagor) and relates to such Mortgage Loan and
(iii) based on its examination and only as to the foregoing documents, the information set forth in the Mortgage Loan Schedule as to the information in clauses (i), (ii) (with respect to property address only, excluding zip code),
(iii) and (vi) of the definition of “Mortgage Loan Schedule” respecting such Mortgage Loan accurately reflects the information set forth in Indenture Trustee’s Mortgage File. The Indenture Trustee has made no independent
examination of such documents beyond the review specifically required in the above-referenced Sale and Servicing Agreement. The Indenture Trustee makes no representations as to: (x) the validity, legality, recordability, sufficiency,
perfection, priority, enforceability or genuineness of any such documents contained in each or any of the Mortgage Loans identified on the Mortgage Loan Schedule, or (y) the collectability, insurability, effectiveness or suitability of any such
Mortgage Loan. 
  

 D-1 

 Capitalized words and phrases used herein shall have the respective meanings assigned to them in the
above-captioned Sale and Servicing Agreement. 
  

			
	                                       
                                        
  ,

	 as Indenture Trustee

		
	 By:
	 	  
		 	 Name:

		 	 Title:

  

 D-2 

 EXHIBIT E 
 FINAL CERTIFICATION OF INDENTURE TRUSTEE 
                     , 20     
  

			
	 [Lead Underwriter]
 _____________________________
 _____________________________
	  	 Accredited Home Lenders, Inc.
 15090 Avenue of Science
 San Diego, California 92128

		
	 Accredited Mortgage Loan REIT Trust
 15090 Avenue of Science
 San Diego, California 92128
	  	

  

	 	Re:	Sale and Servicing Agreement, dated as of                     ,
20     among Accredited Home Lenders, Inc., as 

	 	 	Sponsor and Servicer, Accredited Mortgage Loan REIT Trust, as depositor, Accredited 

	 	 	Mortgage Loan Trust 200    -    , and
                    , as Indenture Trustee. 

 Ladies and Gentlemen: 
 In accordance with the provisions of Section 2.06(b)(iii) of the
above-referenced Sale and Servicing Agreement, the undersigned, as Indenture Trustee, hereby certifies that as to each Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage Loan paid in full or any Mortgage Loan listed on the
attachment hereto), it has reviewed the documents delivered to it pursuant to Section 2.05(a) of the Sale and Servicing Agreement and has determined that (i) all documents required to be delivered to it pursuant to
Section 2.05(a)(i)-(iv) and (vi) of the above referenced Sale and Servicing Agreement are in its possession, (ii) such documents have been reviewed by it and appear regular on their face and have not been mutilated, damaged, torn
or otherwise physically altered (handwritten additions, changes or corrections do not constitute physical alteration if they reasonably appear to have been initialed by the Mortgagor) and relates to such Mortgage Loan and (iii) based on its
examination and only as to the foregoing documents, the information set forth in items (i), (ii) (with respect to property address only, excluding zip code), (iii) and (vi) of the definition of the Mortgage Loan Schedule respecting
such Mortgage Loan that can be determined from the face of such documents accurately reflects the information set forth in the Indenture Trustee’s Mortgage File. The Indenture Trustee has made no independent examination of such documents beyond
the review specifically required in the above-referenced Sale and Servicing Agreement. The Indenture Trustee makes no representations as to: (x) the validity, legality, recordability, sufficiency, perfection, priority, enforceability or
genuineness of any such documents contained in each or any of the Mortgage Loans identified on the Mortgage Loan Schedule, or (y) the collectability, insurability, effectiveness or suitability of any such Mortgage Loan. 
  

 E-1 

 Capitalized words and phrases used herein shall have the respective meanings assigned to them in the
above-captioned Sale and Servicing Agreement. 
  

			
	                                       
                                        
  ,

	 as Indenture Trustee

		
	 By:
	 	  
		 	 Name:

		 	 Title:

  

 E-2 

 EXHIBIT F 
 REQUEST FOR RELEASE OF DOCUMENTS 
  

	To:	[Indenture Trustee] 

  

	 	Re:	Sale and Servicing Agreement, dated as of                     ,
20     among Accredited Home Lenders, Inc., as 

	 	 	Sponsor and Servicer, Accredited Mortgage Loan REIT Trust, as depositor, Accredited 

	 	 	Mortgage Loan Trust 200    -    , and
                    , as Indenture Trustee (“Custodian/Indenture Trustee”). 

 In connection with the administration of the Mortgage Loans held by you as Indenture Trustee for the Issuing Entity pursuant to the above-captioned Sale
and Servicing Agreement, we request the release, and hereby acknowledge receipt, of the Indenture Trustee’s Mortgage File for the Mortgage Loan described below, for the reason indicated. 
 Mortgage Loan Number: 
 Mortgagor Name, Address & Zip
Code: 
 Reason for Requesting Documents (check one): 
  

							
	 ̈	 	1.	  	 Mortgage Paid in Full
	  	
				
	 ̈	 	2.	  	 Foreclosure
	  	
				
	 ̈	 	3.	  	 Substitution
	  	
				
	 ̈	 	4.	  	 Other Liquidation (Repurchases, etc.)
	  	
				
	 ̈	 	5.	  	 Nonliquidation Reason:
	  	 Reason: ________________________

 Address to which Indenture Trustee should 
  

									
	 Deliver the Mortgage File:
	 		 	_______________________________________
		 		 	_______________________________________
		 		 	_______________________________________
					
		 		 		 	 By: 
	 	  
		 		 		 		 	(authorized signer)
		 		 		 	 Issuing Entity: _______________________________________

		 		 		 	 Address:  ___________________________________________

		 		 		 	        ___________________________________________

		 		 		 	 Date:        ___________________________________________

 EXHIBIT G 
 ACCREDITED HOME LENDERS, INC. 
 OFFICER’S CERTIFICATE 
 I,                     , certify that: 
  

	1.	I have reviewed this annual report on Form 10-K, and all reports on Form 8-K containing distribution or servicing reports filed in respect of periods included in the year covered by
this annual report, of Accredited Mortgage Loan Trust 200_-_; 

  

	2.	Based on my knowledge, the information in these reports, taken as a whole, does not contain any untrue statement of a material fact or omit to state a material fact necessary to
make the statements made, in light of the circumstances under which such statements were made, not misleading as of the last day of the period covered by this annual report; 

  

	3.	Based on my knowledge, the distribution or servicing information required to be provided to the trustee by the servicer under the pooling and servicing, or similar, agreement is
included in these reports; 

  

	4.	Based on my knowledge and upon the annual compliance statement included in the report and required to be delivered to the trustee in accordance with the terms of the pooling and
servicing, or similar, agreement, and except as disclosed in the reports, the servicer has fulfilled its obligations under the servicing agreement; and 

  

	5.	The reports disclose all significant deficiencies relating to the servicer’s compliance with the minimum servicing standards based upon the report provided by an independent
public accountant, after conducting a review in compliance with the Uniform Single Attestation Program for Mortgage Bankers or similar procedure, as set forth in the pooling and servicing, or similar, agreement that is included in these reports.

 In giving the certifications above, I have reasonably relied on information provided to me by the following unaffiliated parties:
                    . 
  

	
	 Date:

	
	   
	 Name:

	 Title:

 EXHIBIT H 
 SERVICING CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE 
 Where there are multiple checks for criteria the attesting
party will identify in their management assertion that they are attesting only to the portion of the distribution chain they are responsible for in the related transaction agreements. 
 Key: X – obligation 
  

							
	 Reg AB
Reference
	  	 Servicing Criteria
	  	Servicer	  	Indenture
Trustee
	 	  	General Servicing Considerations	  	 	  	 
				
	 1122(d)(1)(i)
	  	Policies and procedures are instituted to monitor any performance or other triggers and events of default in accordance with the transaction agreements.	  	X	  	X
				
	 1122(d)(1)(ii)
	  	If any material servicing activities are outsourced to third parties, policies and procedures are instituted to monitor the third party’s performance and compliance with such servicing
activities.	  	If applicable	  	If applicable
				
	 1122(d)(1)(iii)
	  	Any requirements in the transaction agreements to maintain a back-up servicer for the Pool Assets are maintained.	  	If become
contractually
obligated	  	If become
contractually
obligated
				
	 1122(d)(1)(iv)
	  	A fidelity bond and errors and omissions policy is in effect on the party participating in the servicing function throughout the reporting period in the amount of coverage required by and
otherwise in accordance with the terms of the transaction agreements.	  	X	  	
				
		  	Cash Collection and Administration	  		  	
				
	 1122(d)(2)(i)
	  	Payments on pool assets are deposited into the appropriate custodial bank accounts and related bank clearing accounts no more than two business days following receipt, or such other number of
days specified in the transaction agreements.	  	X	  	X
				
	 1122(d)(2)(ii)
	  	Disbursements made via wire transfer on behalf of an obligor or to an investor are made only by authorized personnel	  	X	  	X
				
	 1122(d)(2)(iii)
	  	Advances of funds or guarantees regarding collections, cash flows or distributions, and any interest or other fees charged for such advances, are made, reviewed and approved as specified in the
transaction agreements.	  	X	  	X

  

 H-1 

							
	 Reg AB
Reference
	  	 Servicing Criteria
	  	Servicer	  	Indenture
Trustee
				
	 1122(d)(2)(iv)
	  	The related accounts for the transaction, such as cash reserve accounts or accounts established as a form of over collateralization, are separately maintained (e.g., with respect to commingling
of cash) as set forth in the transaction agreements.	  	X	  	X
				
	 1122(d)(2)(v)
	  	Each custodial account is maintained at a federally insured depository institution as set forth in the transaction agreements. For purposes of this criterion, “federally insured depository
institution” with respect to a foreign financial institution means a foreign financial institution that meets the requirements of Rule 13k-1(b)(1) of the Securities Exchange Act.	  	X	  	X
				
	 1122(d)(2)(vi)
	  	Unissued checks are safeguarded so as to prevent unauthorized access	  	X	  	X
				
	 1122(d)(2)(vii)
	  	Reconciliations are prepared on a monthly basis for all asset-backed securities related bank accounts, including custodial accounts and related bank clearing accounts. These reconciliations are
(A) mathematically accurate; (B) prepared within 30 calendar days after the bank statement cutoff date, or such other number of days specified in the transaction agreements; (C) reviewed and approved by someone other than the person who prepared the
reconciliation; and (D) contain explanations for reconciling items. These reconciling items are resolved within 90 calendar days of their original identification, or such other number of days specified in the transaction agreements.	  	X	  	X

  

 H-2 

							
	 Reg AB
Reference
	  	 Servicing Criteria
	  	Servicer	  	Indenture
Trustee
		  	Investor Remittances and Reporting	  		  	
				
	 1122(d)(3)(i)
	  	Reports to investors, including those to be filed with the Commission, are maintained in accordance with the transaction agreements and applicable Commission requirements. Specifically, such
reports (A) are prepared in accordance with timeframes and other terms set forth in the transaction agreements; (B) provide information calculated in accordance with the terms specified in the transaction agreements; (C) are filed with the
Commission as required by its rules and regulations; and (D) agree with investors’ or the trustee’s records as to the total unpaid principal balance and number of Pool Assets serviced by the Servicer.	  	X	  	X
				
	 1122(d)(3)(ii)
	  	Amounts due to investors are allocated and remitted in accordance with timeframes, distribution priority and other terms set forth in the transaction agreements.	  	X	  	X
				
	 1122(d)(3)(iii)
	  	Disbursements made to an investor are posted within two business days to the Servicer’s investor records, or such other number of days specified in the transaction agreements.	  	X	  	X
				
	 1122(d)(3)(iv)
	  	Amounts remitted to investors per the investor reports agree with cancelled checks, or other form of payment, or custodial bank statements.	  	X	  	X
				
		  	Pool Asset Administration	  		  	
				
	 1122(d)(4)(i)
	  	Collateral or security on pool assets is maintained as required by the transaction agreements or related pool asset documents.	  	X	  	X
				
	 1122(d)(4)(ii)
	  	Pool assets and related documents are safeguarded as required by the transaction agreements	  		  	X
				
	 1122(d)(4)(iii)
	  	Any additions, removals or substitutions to the asset pool are made, reviewed and approved in accordance with any conditions or requirements in the transaction agreements.	  	X	  	X
				
	 1122(d)(4)(iv)
	  	Payments on pool assets, including any payoffs, made in accordance with the related pool asset documents are posted to the Servicer’s obligor records maintained no more than two business
days after receipt, or such other number of days specified in the transaction agreements, and allocated to principal, interest or other items (e.g., escrow) in accordance with the related pool asset documents.	  	X	  	

  

 H-3 

							
	 Reg AB
 Reference
	  	 Servicing Criteria
	  	Servicer	  	Indenture
Trustee
				
	 1122(d)(4)(v)
	  	The Servicer’s records regarding the pool assets agree with the Servicer’s records with respect to an obligor’s unpaid principal balance.	  	X	  	
				
	 1122(d)(4)(vi)
	  	Changes with respect to the terms or status of an obligor’s pool assets (e.g., loan modifications or reagings) are made, reviewed and approved by authorized personnel in accordance with the
transaction agreements and related pool asset documents.	  	X	  	
				
	 1122(d)(4)(vii)
	  	Loss mitigation or recovery actions (e.g., forbearance plans, modifications and deeds in lieu of foreclosure, foreclosures and repossessions, as applicable) are initiated, conducted and
concluded in accordance with the timeframes or other requirements established by the transaction agreements.	  	X	  	
				
	 1122(d)(4)(viii)
	  	Records documenting collection efforts are maintained during the period a pool asset is delinquent in accordance with the transaction agreements. Such records are maintained on at least a
monthly basis, or such other period specified in the transaction agreements, and describe the entity’s activities in monitoring delinquent pool assets including, for example, phone calls, letters and payment rescheduling plans in cases where
delinquency is deemed temporary (e.g., illness or unemployment).	  	X	  	
				
	 1122(d)(4)(ix)
	  	Adjustments to interest rates or rates of return for pool assets with variable rates are computed based on the related pool asset documents.	  	X	  	
				
	 1122(d)(4)(x)
	  	Regarding any funds held in trust for an obligor (such as escrow accounts): (A) such funds are analyzed, in accordance with the obligor’s pool asset documents, on at least an annual basis,
or such other period specified in the transaction agreements; (B) interest on such funds is paid, or credited, to obligors in accordance with applicable pool asset documents and state laws; and (C) such funds are returned to the obligor within 30
calendar days of full repayment of the related pool assets, or such other number of days specified in the transaction agreements.	  	X	  	

  

 H-4 

							
	 Reg AB
 Reference
	  	 Servicing Criteria
	  	Servicer	  	Indenture
Trustee
				
	 1122(d)(4)(xi)
	  	Payments made on behalf of an obligor (such as tax or insurance payments) are made on or before the related penalty or expiration dates, as indicated on the appropriate bills or notices for such
payments, provided that such support has been received by the servicer at least 30 calendar days prior to these dates, or such other number of days specified in the transaction agreements.	  	X	  	
				
	 1122(d)(4)(xii)
	  	Any late payment penalties in connection with any payment to be made on behalf of an obligor are paid from the Servicer’s funds and not charged to the obligor, unless the late payment was
due to the obligor’s error or omission.	  	X	  	
				
	 1122(d)(4)(xiii)
	  	Disbursements made on behalf of an obligor are posted within two business days to the obligor’s records maintained by the servicer, or such other number of days specified in the transaction
agreements.	  	X	  	
				
	 1122(d)(4)(xiv)
	  	Delinquencies, charge-offs and uncollectible accounts are recognized and recorded in accordance with the transaction agreements.	  	X	  	
				
	 1122(d)(4)(xv)
	  	Any external enhancement or other support, identified in Item 1114(a)(1) through (3) or Item 1115 of Regulation AB, is maintained as set forth in the transaction agreements.	  	X	  	

  

 H-5 

 EXHIBIT I 
 FORM 10-D, FORM 8-K AND FORM 10-K 
 REPORTING RESPONSIBILITY 
 As to each item described below, the entity indicated as the Responsible Party shall be primarily responsible for reporting the information to the party identified as
responsible for preparing the Securities Exchange Act Reports pursuant to Section 5.11 of the Sale and Servicing Agreement. 
 Under Item 1 of Form
10-D: a) items marked “8.06 statement” are required to be included in the periodic reports prepared by the Indenture Trustee under Section 8.06 of the Indenture, provided by the Indenture Trustee based on information received from the
Servicer; and b) items marked “Form 10-D report” are required to be in the Form 10-D report but not the 8.06 statement, provided by the party indicated. Information under all other Items of Form 10-D is to be included in the Form 10-D
report. All such information and any other Items of Form 8-K and Form 10-K set forth in this exhibit shall be sent to the Indenture Trustee and the Depositor, as applicable as set forth in Section 5.11 of the Sale and Servicing Agreement.

  

															
	 Form
	  	Item	  	 Description
	  	Servicer	  	Indenture
Trustee	 	Owner
Trustee	  	Depositor	  	Sponsor
			
	10-D	  	Must be filed within 15 days of the distribution date for the asset-backed securities.	  	
								
		  	1	  	Distribution and Pool Performance Information	  		  		 		  		  	
								
		  		  	 Item 1121(a) – Distribution and Pool Performance Information
	  		  		 		  		  	
								
		  		  	  
 (1) Any applicable record dates, accrual dates, determination dates for
calculating distributions and actual distribution dates for the distribution period.
	  		  	  
 X
  
 (8.06
Statement)
	 		  		  	
								
		  		  	(2) Cash flows received and the sources thereof for distributions, fees and expenses.	  		  	X  
 (8.06
Statement)
	 		  		  	
								
		  		  	(3) Calculated amounts and distribution of the flow of funds for the period itemized by type and priority of payment, including:	  		  	X  
 (8.06
Statement)
	 		  		  	

  

 I-1 

															
	Form	  	Item	  	 Description
	  	Servicer	  	Indenture
Trustee	  	Owner
Trustee	  	Depositor	  	Sponsor
								
		  		  	 (i) Fees or expenses accrued and paid, with an identification of the general purpose of such fees and the party receiving such fees or expenses.
	  		  	X  
 (8.06
Statement)
	  		  		  	
								
		  		  	 (ii) Payments accrued or paid with respect to enhancement or other support identified in Item 1114 of Regulation AB (such as insurance premiums or other
enhancement maintenance fees), with an identification of the general purpose of such payments and the party receiving such payments.
	  		  	X  
 (8.06
Statement)
	  		  		  	
								
		  		  	 (iii) Principal, interest and other distributions accrued and paid on the asset-backed securities by type and by class or series and any principal or interest
shortfalls or carryovers.
	  		  	X  
 (8.06
Statement)
	  		  		  	
								
		  		  	 (iv) The amount of excess cash flow or excess spread and the disposition of excess cash flow.
	  		  	X  
 (8.06
Statement)
	  		  		  	
								
		  		  	(4) Beginning and ending principal balances of the asset-backed securities.	  		  	X  
 (8.06
Statement)
	  		  		  	
								
		  		  	(5) Interest rates applicable to the pool assets and the asset-backed securities, as applicable. Consider providing interest rate information for pool assets in appropriate distributional groups
or incremental ranges.	  		  	X  
 (8.06
Statement)
	  		  		  	

  

 I-2 

															
	 Form
	  	 Item
	  	 Description
	  	Servicer	  	 Indenture
 Trustee
	  	Owner
Trustee	  	 Depositor
	  	Sponsor
								
		  		  	(6) Beginning and ending balances of transaction accounts, such as reserve accounts, and material account activity during the period.	  		  	 X
  
 (8.06 Statement)
	  		  		  	
								
		  		  	(7) Any amounts drawn on any credit enhancement or other support identified in Item 1114 of Regulation AB, as applicable, and the amount of coverage remaining under any such enhancement, if
known and applicable.	  		  	 X
  
 (8.06 Statement as to first portion)
	  		  	X (as to the amount of coverage remaining under any such enhancement)	  	
								
		  		  	(8) Number and amount of pool assets at the beginning and ending of each period, and updated pool composition information, such as weighted average coupon, weighted average remaining term, pool
factors and prepayment amounts.	  		  	 X
  
 (8.06 Statement)
	  		  	Updated pool composition information fields to be as specified by Depositor from time to time	  	
								
		  		  	(9) Delinquency and loss information for the period.	  		  	 X
  
 (8.06 Statement)
	  		  		  	
								
		  		  	In addition, describe any material changes to the information specified in Item 1100(b)(5) of Regulation AB regarding the pool assets. (methodology)	  	X	  		  		  		  	
								
		  		  	(10) Information on the amount, terms and general purpose of any advances made or reimbursed during the period, including the general use of funds advanced and the general source of funds for
reimbursements.	  		  	 X
  
 (8.06 Statement)
	  		  		  	

  

 I-3 

															
	 Form
	  	 Item
	  	 Description
	  	Servicer	  	 Indenture
Trustee
	  	Owner
Trustee	  	 Depositor
	  	Sponsor
								
		  		  	(11) Any material modifications, extensions or waivers to pool asset terms, fees, penalties or payments during the distribution period or that have cumulatively become material over
time.	  	X	  		  		  	X	  	X
								
		  		  	(12) Material breaches of pool asset representations or warranties or transaction covenants.	  	X	  		  		  	X	  	X
								
		  		  	(13) Information on ratio, coverage or other tests used for determining any early amortization, liquidation or other performance trigger and whether the trigger was met.	  		  	 X
  
 (8.06 Statement)
	  		  		  	
								
		  		  	(14) Information regarding any new issuance of asset-backed securities backed by the same asset pool,	  		  		  		  	X	  	X
								
		  		  	Information regarding any pool asset changes (other than in connection with a pool asset converting into cash in accordance with its terms), such as additions or removals in connection with a
prefunding or revolving period and pool asset substitutions and repurchases (and purchase rates, if applicable), and cash flows available for future purchases, such as the balances of any prefunding or revolving accounts, if applicable.	  	X	  		  		  	X	  	

  

 I-4 

															
	 Form
	  	Item	  	 Description
	  	Servicer	  	Indenture
Trustee	  	Owner
Trustee	  	 Depositor
	  	Sponsor
								
		  		  	Disclose any material changes in the solicitation, credit-granting, underwriting, origination, acquisition or pool selection criteria or procedures, as applicable, used to originate, acquire or
select the new pool assets.	  		  		  		  	X	  	X
								
		  		  	 Item 1121(b) – Pre-Funding or Revolving Period Information
  
 Updated pool information as required under Item 1121(b).
	  		  		  		  	X	  	
								
		  	2	  	Legal Proceedings	  		  		  		  		  	
								
		  		  	Item 1117 – Legal proceedings pending against the following entities, or their respective property, that is material to Noteholders, including proceedings known to be contemplated by
governmental authorities:	  		  		  		  		  	
								
		  		  	Sponsor	  		  		  		  		  	X
								
		  		  	Depositor	  		  		  		  	X	  	
								
		  		  	Owner Trustee	  		  		  	X	  		  	
								
		  		  	Issuing entity	  		  		  		  	X	  	
								
		  		  	Servicer, other Servicer servicing 20% or more of pool assets at time of report, other material servicers	  	X	  		  		  		  	
								
		  		  	Indenture Trustee	  		  	X	  		  		  	
								
		  		  	Custodian	  		  	X	  		  		  	

  

 I-5 

															
	 Form
	  	Item	  	 Description
	  	 Servicer
	  	 Indenture
Trustee
	  	Owner
Trustee	  	 Depositor
	  	 Sponsor

								
		  	3	  	Sales of Securities and Use of Proceeds	  		  		  		  		  	
								
		  		  	 Information from Item 2(a) of Part II of Form 10-Q:
  
 With respect to any sale of securities by the sponsor, depositor or issuing entity, that are backed by the same asset pool or are otherwise issued by the issuing entity,
whether or not registered, provide the sales and use of proceeds information in Item 701 of Regulation S-K. Pricing information can be omitted if securities were not registered.
	  		  		  		  	X	  	
								
		  	4	  	Defaults Upon Senior Securities	  		  		  		  		  	
								
		  		  	 Information from Item 3 of Part II of Form 10-Q:
  
 Report the occurrence of any Event of Default (after expiration of any grace period and provision of any required notice)
	  		  	X	  		  	X	  	X
								
		  	5	  	Submission of Matters to a Vote of Noteholders	  		  		  		  		  	
								
		  		  	Information from Item 4 of Part II of Form 10-Q	  	X (to the extent initiated by the Servicer)	  	X (to the extent initiated by the Indenture Trustee)	  		  	X (to the extent initiated by the Depositor)	  	X (to the extent initiated by the Sponsor)
								
		  	6	  	Significant Obligors of Pool Assets	  		  		  		  		  	
								
		  		  	Item 1112(b) – Significant Obligor Financial Information*	  		  		  		  	X	  	
								
		  		  	 *  This information need only be reported on the Form 10-D for the distribution period in which updated information is required
pursuant to the Item.
	  		  		  		  		  	

  

 I-6 

															
	 Form
	  	Item	  	 Description
	  	 Servicer
	  	 Indenture
Trustee
	  	 Owner
Trustee
	  	 Depositor
	  	 Sponsor

								
		  	7	  	Significant Enhancement Provider Information	  		  		  		  		  	
								
		  		  	Item 1114(b)(2) – Credit Enhancement Provider Financial Information*	  		  		  		  		  	
								
		  		  	 Determining applicable disclosure threshold
	  		  		  		  		  	X
								
		  		  	 Requesting required financial information or effecting incorporation by reference
	  		  		  		  		  	X
								
		  		  	Item 1115(b) – Derivative Counterparty Financial Information*	  		  		  		  		  	
								
		  		  	 Determining current maximum probable exposure
	  		  		  		  		  	X
								
		  		  	 Determining current significance percentage
	  		  		  		  		  	X
								
		  		  	 Requesting required financial information or effecting incorporation by reference
	  		  		  		  		  	X
								
		  		  	 *  This information need only be reported on the Form 10-D for the distribution period in which updated information is required
pursuant to the Items.
	  		  		  		  		  	
								
		  	8	  	Other Information	  		  		  		  		  	
				
		  		  	Disclose any information required to be reported on Form 8-K during the period covered by the Form 10-D but not reported	  	The Responsible Party for the applicable Form 8-K item as indicated below.

  

 I-7 

															
	 Form
	  	Item	  	 Description
	  	 Servicer
	  	 Indenture
Trustee
	  	 Owner
Trustee
	  	 Depositor
	  	 Sponsor

								
		  	9	  	Exhibits	  		  		  		  		  	
								
		  		  	Distribution Report	  		  	X	  		  		  	
								
		  		  	Exhibits required by Item 601 of Regulation S-K, such as material agreements	  		  		  		  	X	  	
			
	8-K	  	Must be filed within four business days of an event reportable on Form 8-K.	  	
								
		  	1.01	  	Entry into a Material Definitive Agreement	  		  		  		  		  	
								
		  		  	 Disclosure is required regarding entry into or amendment of any definitive agreement that is material to the securitization, even if depositor is not
a party.
  
 Examples: servicing agreement, custodial agreement.
  
 Note: disclosure not required as to definitive agreements that are fully disclosed in the
prospectus
	  	X	  		  		  	X	  	X
								
		  	1.02	  	Termination of a Material Definitive Agreement	  		  		  		  		  	
								
		  		  	 Disclosure is required regarding termination of any definitive agreement that is material to the securitization (other than expiration in accordance
with its terms), even if depositor is not a party.
  
 Examples: servicing agreement,
custodial agreement.
	  	X	  	X (only to the extent initiated by the Indenture Trustee)	  		  	X	  	X

  

 I-8 

															
	 Form
	  	Item	  	 Description
	  	 Servicer
	  	 Indenture
Trustee
	  	 Owner
Trustee
	  	 Depositor
	  	 Sponsor

								
		  	1.03	  	Bankruptcy or Receivership	  		  		  		  		  	
								
		  		  	 Disclosure is required regarding the bankruptcy or receivership, if known to the Depositor, Indenture Trustee, Sponsor or Servicer, with respect to
any of the following:
  
 Sponsor, Depositor, Servicer, affiliated Servicer, other Servicer
servicing 20% or more of pool assets at time of report, other material servicers, Indenture Trustee, significant obligor, credit enhancer (10% or more), derivatives counterparty, custodian
	  	X	  	X (as to itself)	  		  	X	  	X
								
		  	2.04	  	Triggering Events that Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement	  		  		  		  		  	
								
		  		  	 Includes an early amortization, performance trigger or other event, including event of default, that would materially alter the payment
priority/distribution of cash flows/amortization schedule.
  
 Disclosure will be made of
events other than waterfall triggers which are disclosed in the 8.06 statement
	  		  		  		  	X	  	
								
		  	3.03	  	Material Modification to Rights of Noteholders	  		  		  		  		  	
								
		  		  	Disclosure is required of any material modification to documents defining the rights of Noteholders, including the Sale and Servicing Agreement	  		  		  		  	X	  	X

  

 I-9 

															
	 Form
	  	Item	  	 Description
	  	 Servicer
	  	 Indenture
Trustee
	  	 Owner
Trustee
	  	 Depositor
	  	 Sponsor

								
		  	5.03	  	Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year	  		  		  		  		  	
								
		  		  	Disclosure is required of any amendment “to the governing documents of the issuing entity”	  		  		  		  	X	  	
								
		  	5.06	  	Change in Shell Company Status	  		  		  		  		  	
								
		  		  	[Not applicable to ABS issuers]	  		  		  		  	X	  	
								
		  	6.01	  	ABS Informational and Computational Material	  		  		  		  		  	
								
		  		  	[Not included in reports to be filed under Section 3.19]	  		  		  		  	X	  	
								
		  	6.02	  	Change of Servicer or Trustee	  		  		  		  		  	
								
		  		  	Requires disclosure of any removal, replacement, substitution or addition of any servicer, affiliated servicer, other servicer servicing 10% or more of pool assets at time of report, other
material servicers, or trustee.	  	X	  		  		  	X	  	
								
		  		  	Reg AB disclosure about any new servicer is also required.	  	X (the successor)	  		  		  		  	
								
		  		  	Reg AB disclosure about any new trustee is also required.	  		  	X (the successor)	  		  	X (the successor)	  	

  

 I-10 

															
	 Form
	  	Item	  	 Description
	  	 Servicer
	  	 Indenture
Trustee
	  	 Owner
Trustee
	  	 Depositor
	  	 Sponsor

								
		  	6.03	  	Change in Credit Enhancement or Other External Support	  		  		  		  		  	
								
		  		  	Covers termination of any enhancement in manner other than by its terms, the addition of an enhancement, or a material change in the enhancement provided. Applies to external credit enhancements
as well as derivatives.	  		  		  		  	X	  	X
								
		  		  	Reg AB disclosure about any new enhancement provider is also required.	  		  		  		  	X	  	
								
		  	6.04	  	Failure to Make a Required Distribution	  		  	X	  		  		  	
								
		  	6.05	  	Securities Act Updating Disclosure	  		  		  		  		  	
								
		  		  	If any material pool characteristic differs by 5% or more at the time of issuance of the securities from the description in the final prospectus, provide updated Reg AB disclosure about the
actual asset pool.	  		  		  		  	X	  	
								
		  		  	If there are any new servicers or originators required to be disclosed under Regulation AB as a result of the foregoing, provide the information called for in Items 1108 and 1110
respectively.	  		  		  		  	X	  	
								
		  	7.01	  	Regulation FD Disclosure	  	X	  		  		  	X	  	X
								
		  	8.01	  	Other Events	  		  		  		  		  	
								
		  		  	Any event, with respect to which information is not otherwise called for in Form 8-K, that the registrant deems of importance to Noteholders.	  		  		  		  	X	  	X
				
		  	9.01	  	Financial Statements and Exhibits	  	The Responsible Party applicable to reportable event.

  

 I-11 

															
	 Form
	  	Item	  	 Description
	  	Servicer	  	Indenture
Trustee	  	Owner
Trustee	  	Depositor	  	Sponsor
			
	10-K	  	Must be filed within 90 days of the fiscal year end for the registrant.	  	
								
		  	9B	  	Other Information	  		  		  		  		  	
				
		  		  	Disclose any information required to be reported on Form 8-K during the fourth quarter covered by the Form 10-K but not reported	  	The Responsible Party for the applicable
Form 8-K Item as indicated above.
								
		  	15	  	Exhibits and Financial Statement Schedules	  		  		  		  		  	
								
		  		  	Item 1112(b) – Significant Obligor Financial Information	  		  		  		  	X	  	
								
		  		  	Item 1114(b)(2) – Credit Enhancement Provider Financial Information	  		  		  		  		  	
								
		  		  	 Determining applicable disclosure threshold
	  		  		  		  		  	X
								
		  		  	 Requesting required financial information or effecting incorporation by reference
	  		  		  		  		  	X
								
		  		  	Item 1115(b) – Derivative Counterparty Financial Information	  		  		  		  		  	
								
		  		  	 Determining current maximum probable exposure
	  		  		  		  		  	X
								
		  		  	 Determining current significance percentage
	  		  		  		  		  	X
								
		  		  	 Requesting required financial information or effecting incorporation by reference
	  		  		  		  		  	X

  

 I-12 

															
	 Form
	  	Item	  	 Description
	  	Servicer	  	Indenture
Trustee	  	Owner
Trustee	  	Depositor	  	Sponsor
								
		  		  	Item 1117 – Legal proceedings pending against the following entities, or their respective property, that is material to Noteholders, including proceedings known to be contemplated by
governmental authorities:	  		  		  		  		  	
								
		  		  	Sponsor	  		  		  		  		  	X
								
		  		  	Depositor	  		  		  		  	X	  	
								
		  		  	Owner Trustee	  		  		  	X	  		  	
								
		  		  	Issuing entity	  		  		  		  	X	  	
								
		  		  	Servicer, affiliated Servicer, other Servicer servicing 20% or more of pool assets at time of report, other material servicers	  	X	  		  		  		  	
								
		  		  	Indenture Trustee	  		  	X	  		  		  	
								
		  		  	Custodian	  		  	X	  		  		  	
								
		  		  	Item 1119 – Affiliations and relationships between the following entities, or their respective affiliates, that are material to Noteholders:	  		  		  		  		  	
								
		  		  	Sponsor	  		  		  		  		  	X
								
		  		  	Depositor	  		  		  		  	X	  	
								
		  		  	Owner Trustee	  		  		  	X	  		  	
								
		  		  	Servicer, affiliated Servicer, other Servicer servicing 20% or more of pool assets at time of report, other material servicers	  	X	  		  		  		  	
								
		  		  	Indenture Trustee	  		  	X	  		  		  	
								
		  		  	Custodian	  		  	X	  		  		  	
								
		  		  	Credit Enhancer/Support Provider	  		  		  		  	X	  	
								
		  		  	Significant Obligor	  		  		  		  	X	  	
								
		  		  	Item 1122 – Assessment of Compliance with Servicing Criteria	  	X	  	X	  		  		  	
								
		  		  	Item 1123 – Servicer Compliance Statement	  	X	  		  		  		  	

  

 I-13Amendment Number One to the Amended and Restated Wafer Supply Agreement

 EXHIBIT 10.22 
 [Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. The omitted
portions are indicated by “****.”] 
 AMENDMENT NUMBER ONE 
 TO 
 AMENDED AND RESTATED WAFER SUPPLY AGREEMENT 
 This Amendment Number One (the “Amendment”), effective as of August 11, 2004 (“Amendment Date”), amends the Amended and Restated
Wafer Supply Agreement effective as of April 1, 2003 (the “OKI Agreement”), by and between OKI Electric Industry Co., Ltd. (“OKI ELECTRIC”), a Japanese corporation having its registered head office at 7-12, Toranomon
1-chome, Minato-ku, Tokyo 105-8460, Japan, and Power Integrations, Inc., (“PI”) a Delaware corporation having its principal place of business at 5245 Hellyer Avenue, San Jose, CA U.S.A. 95138. Unless specifically designated otherwise,
capitalized terms used herein shall have the same meanings given them in the OKI Agreement. 
 RECITALS 
 WHEREAS, pursuant to the terms of the OKI Agreement, PI grants to OKI ELECTRIC licenses of certain of PI’s intellectual property for the sole
purpose of PI acquiring from OKI ELECTRIC the fabrication and supply of wafers of certain power IC products; and 
 WHEREAS, PI and OKI
ELECTRIC desire to amend the terms of the OKI Agreement; and 
 WHEREAS, in accordance with Section 18.10 of the OKI Agreement, the OKI
Agreement may be amended only by an instrument in writing duly executed by authorized officers of OKI ELECTRIC and PI. 
 NOW, THEREFORE, in
consideration of the mutual promises, covenants and agreements of the parties contained herein, the parties hereby agree to amend the Agreement only as follows: 
  

 AGREEMENT 
 I. On page 1, substitute the following paragraphs for the paragraphs beginning with “The parties to this Agreement,” and ending with “this 1st day of April, 2003 (the “Effective Date”), as
follows.”: 
 The parties to this Agreement are 
  

	 	(1)	POWER INTEGRATIONS INTERNATIONAL LTD., a Cayman Islands corporation having its principal place of business at P.O. Box 219, Strathvale House, North Church Street, George Town, Grand
Cayman, Cayman Islands; 

 and 
  

	 	(2)	OKI ELECTRIC INDUSTRY CO., LTD., a Japanese corporation having its registered head office at 7-12, Toranomon 1-chome, Minato-ku, Tokyo 105-8460, Japan (“OKI ELECTRIC”).

 POWER INTEGRATIONS, INC., a state of Delaware corporation, and OKI ELECTRIC entered into the Wafer Supply Agreement
(“WSA”) on the 1st day of October, 1998 and desire to amend and restate the WSA in this Amended and Restated Wafer Supply Agreement (“Agreement”), which is made and entered into by and between the above parties as of this 1st day
of April, 2003 (the “Effective Date”), as follows. 
 II. Delete Section 1.2 and substitute therefor: 
 1.2 WAFER(S): Non-probed four (4), five (5) and **** inch silicon wafers produced during the PILOT PRODUCTION and the VOLUME PRODUCTION
which meet the COMMON SPECIFICATIONS. 
 III. Delete Section 1.12 and substitute therefor: 
 1.12 PI: POWER INTEGRATIONS INTERNATIONAL LTD. 
 IV. Delete
Section 1.22 and substitute therefor: 
 1.22 SC WAFER(S): Non-probed four (4) inch and five(5) inch WAFERS that are
processed in accordance with the SC WAFER COMMON SPECIFICATION. 
 V. Insert the following new definitions: 
 1.24 VC WAFER(S): Non-probed **** inch WAFERS that are processed in accordance with the VC WAFER COMMON SPECIFICATION. 
 VI. Delete Section 3.3 in its entirety and substitute therefor: 
 3.3 The WAFERS sold hereunder shall be SC WAFERS processed at OKI’s **** plant and /or **** plant, DC WAFERS processed at OKI’s **** plant, and VC WAFERS processed at OKI’s **** plant or other plants of OKI as mutually agreed
in writing by OKI and PI. 
 VII. Delete Section 9.1 in its entirety and substitute therefor: 
 9.1 The prices of the WAFERS, whether produced in the PILOT PRODUCTION or the VOLUME PRODUCTION are set forth in EXHIBIT B attached hereto. Any
modifications thereto must be agreed upon by OKI and PI in writing, either as an amendment to EXHIBIT B or as part of an INDIVIDUAL 
  

 2 

 SALES CONTRACT. The VC WAFERS BASE_PRICE for VC WAFERS will include the additional cost of the ****
starting wafer (“VC STARTING WAFER”), which cost will be subject to written agreement of the parties as to cost of and vendor for the VC STARTING WAFER. OKI and PI may jointly review and revise the VC WAFERS’ price no earlier than the
earlier of (i) the date **** VC WAFERS have been purchased and accepted by PI, and (ii) **** years after the start of VC WAFER VOLUME PRODUCTION. Subject to the previous sentence, OKI and PI may jointly review and revise the WAFERS price,
by WAFER TYPE, within **** days of the close of each half of OKI’s fiscal year or upon a material change to the COMMON SPECIFICATIONS. 
 VIII. Delete
Section 13.11 in its entirety and substitute therefor: 
 Notwithstanding any termination or expiration of this Agreement, the provisions
of Articles 1, 11, and 12, Sections 13.7, 13.8, 13.9, 13.10, this Section 13.11, Sections 16.4 and 19.9, and Articles 14, 15, and 18 shall survive this Agreement. 
 IX. Delete Section 18.14 **** in its entirety and substitute therefor: 
 18.14 **** 
 X. Insert the following new articles: 
 Article 19.
(VC WAFER MANUFACTURING) 
 19.1 PI will purchase and loan to OKI, **** the equipment defined below (the “VC PURCHASED EQUIPMENT”):

  

			
	 Name of VC
 PURCHASED EQUIPMENT
	  	****
	 Name of Manufacturer
	  	****
	 Quantity
	  	One (1) unit
	 Serial Number
	  	****

 19.2 The purchase price of the VC PURCHASED EQUIPMENT will include the installation, connection and
testing fees charged by the equipment sellers, the 5% Consumption Tax, and the Fixed Property Tax levied annually on the VC PURCHASED EQUIPMENT (collectively the “VC PURCHASED EQUIPMENT COST”), the total not to exceed ****. The Fixed
Property tax will be paid to the local tax office in Japan through OKI, which payment will be reimbursed to OKI by PI. The VC PURCHASED EQUIPMENT COST will be recovered by PI through the VC PURCHASED EQUIPMENT DISCOUNT defined in Section 19.8.
Until the date title to the VC PURCHASED EQUIPMENT is transferred to OKI in accordance with Section 19.9, PI will own the VC PURCHASED EQUIPMENT and pay the Fixed Property Tax levied annually on the VC PURCHASED EQUIPMENT as set forth above in
this Section 19.2. OKI shall not lend or transfer the VC PURCHASED EQUIPMENT to any third party or encumber the VC PURCHASED EQUIPMENT with any lien or other security interest while the same is owned by PI, without PI’s prior written
consent. 
 19.3 The VC PURCHASED EQUIPMENT will be delivered and installed in OKI’s wafer fabrication facility in ****. OKI will be
responsible for overseeing full installation, connection to existing 
  

 3 

 equipment, and testing of the VC PURCHASED EQUIPMENT performed by the equipment sellers. Qualification
will be performed by OKI in accordance with a qualification plan mutually agreed upon in writing between OKI and PI. Qualification shall not be complete until the date PI reasonably agrees in writing that the foregoing qualification plan has been
met. 
 19.4 OKI shall keep the VC PURCHASED EQUIPMENT in operating condition and available for VOLUME PRODUCTION during the Term of this
Agreement. OKI shall be responsible for the maintenance and operation of the VC PURCHASED EQUIPMENT. OKI will pay for all repairs of the VC PURCHASED EQUIPMENT. Any repairs should be completed in reasonable time provided, however, that if a repair
cannot be completed within ten (10) calendar days from discovery of the need for such repair, then OKI shall give immediate written notice to PI describing (1) the problem preventing repair in such ten (10) day period, and (2) a
firm schedule for completing the repair. In addition, OKI will buy insurance for the VC PURCHASED EQUIPMENT. 
 19.5 OKI shall not modify the
VC PURCHASED EQUIPMENT without the prior written approval of PI. PI shall determine whether the approved modification requires re-qualification of the VC PURCHASED EQUIPMENT. The parties will mutually agree who will pay for such modifications. OKI
agrees to re-qualify the VC PURCHASED EQUIPMENT, if so determined, in accordance with a mutually agreed-to, written qualification plan. Such re-qualification will be at OKI’s expense. 
 19.6 The VC PURCHASED EQUIPMENT will be used for manufacturing VC WAFERS for PI. Subject to Section 4.5, any other use is permitted as long as
delivery and FOUNDRY CAPACITY commitments by OKI to PI are met. 
 19.7 The VC PURCHASED EQUIPMENT will not be re-located without PI’s
prior written consent. OKI will provide PI a minimum of **** month’s advance notice of a plan to move the VC PURCHASED EQUIPMENT. The terms of any VC PURCHASED EQUIPMENT move will be negotiated in good faith, mutually agreed upon in writing,
and should at least anticipate: (a) adequate WAFER inventory to maintain VOLUME PRODUCTION deliveries during the duration of the move and re-qualification, (b) a plan to re-qualify the VC PURCHASED EQUIPMENT at the new location, and
(c) that OKI would pay all costs of the move if such move is solely for OKI’s benefit. 
 19.8 On and after the date OKI receives
the VC PURCHASED EQUIPMENT and until title to the VC PURCHASED EQUIPMENT is transferred to OKI in accordance with Section 19.9 below, the price of each VC WAFER purchased and accepted by PI shall be a price that is discounted from the VC WAFERS
BASE PRICE by **** or by any other amount agreed to in writing by the parties (“VC PURCHASED EQUIPMENT DISCOUNT”). 
  

 4 

 19.9 When the total VC PURCHASED EQUIPMENT DISCOUNT received by PI for VC WAFERS purchased and accepted
by PI equals **** of the VC PURCHASED EQUIPMENT COST, OKI will pay the remaining **** of the VC PURCHASED EQUIPMENT COST, and all right, title and interest in such VC PURCHASED EQUIPMENT shall then automatically be transferred from PI to OKI and
such VC PURCHASED EQUIPMENT will not thereafter be returned to PI. Notwithstanding the foregoing, should this Agreement terminate or expire before such transfer, OKI will assist PI, free of charge, in the removal and the return to PI of the VC
PURCHASED EQUIPMENT. All packing and shipping cost for such return shall be borne by PI. Article 20. (ADDITIONAL VC PURCHASED EQUIPMENT) 
 20.1 If the parties agree by further amendment of this Agreement, OKI will purchase unique production equipment required for OKI to meet PI’s VOLUME PRODUCTION requirements for VC WAFERS at the price set forth
in, and under the terms agreed to in, such agreement. 
 XI. Delete EXHIBIT A (OKI FOUNDRY CAPACITY and PI ANNUAL FORECAST) and substitute therefor:

 EXHIBIT A 
 OKI FOUNDRY
CAPACITY and PI ANNUAL FORECAST 
 1. OKI FOUNDRY CAPACITY 
 The following FOUNDRY CAPACITY will be effective from the Amendment Date: 
 SC WAFERS = **** WAFERS /
month 
 DC WAFERS = **** WAFERS / month 
 The following will be the initial FOUNDRY CAPACITY for VC WAFERS: 
 VC WAFERS = **** WAFERS/month after purchase,
installation and qualification of the VC PURCHASED EQUIPMENT. 
 2. PI’s projected PI ANNUAL FORECAST of WAFER orders (non-binding) 
  

											
	 OKI Fiscal Year
	  	2003	  	2004	  	2005	  	2006	  	2007
	 SC WAFERS
	  	****	  	****	  	****	  	****	  	****
	 DC WAFERS
	  	****	  	****	  	****	  	****	  	****

 XII. Delete EXHIBIT B (WAFERS PRICE) and substitute therefor: 
  

 5 

 EXHIBIT B 
 WAFERS PRICE 
 SC WAFERS BASE_PRICE (manufactured at ****) = **** 
 SC WAFERS BASE_PRICE (manufactured at ****) = **** 
 DC WAFERS BASE_PRICE = **** 
 VC WAFERS BASE_PRICE = **** plus cost of VC STARTING WAFER 
 F/X_BASE = **** 
 Initial F/X_RATE = **** 
 A new F/X_RATE is
only established at the time of placing a PO for WAFERS if the Previous Month’s Average daily exchange rate is equal to or greater than **** from the current F/X_RATE. The new F/X_RATE will be set to the Previous Month’s Average exchange
rate and will remain in effect for at least the month it was established. 
 The actual WAFERS PURCHASE_PRICE, by WAFER
TYPE, used at the time of order will be calculated by the following formula: 
 PURCHASE_PRICE = 
 **** 
 Examples: For SC WAFERS with a
BASE_PRICE of **** 
  

	 	1)	Nominal F/X Rate Example: F/X_RATE = **** 

 PURCHASE_PRICE
= **** 
  

	 	2)	Higher F/X Rate Example: New F/X_RATE = **** 

 PURCHASE_PRICE = **** 
  

	 	3)	Lower F/X Rate Example: New F/X_RATE = **** 

 PURCHASE_PRICE = **** 
 The term of validity for the DC WAFERS BASE PRICE above shall be from the Effective Date until **** years from the
Effective Date of this Agreement or until the date on which **** DC WAFERS have been accepted by PI under this Agreement, provided, however, that both parties shall review the DC WAFERS BASE_PRICE at any time during such **** year period upon
request of either party, if either party considers that the quantity of DC WAFERS to be purchased by PI during such **** year period does not reach **** WAFERS. After such term of validity, DC WAFERS BASE PRICE shall be ****. 
  

 6 

 If PI purchases VC PURCHASED EQUIPMENT pursuant to Article 20 (“VC PURCHASED EQUIPMENT”) then, effective as of
the date OKI receives the VC PURCHASED EQUIPMENT, the VC WAFERS BASE_PRICE shall be discounted by the VC PURCHASED EQUIPMENT DISCOUNT until such time as the number of VC WAFERS thereafter purchased and accepted by PI multiplied by the VC PURCHASED
EQUIPMENT DISCOUNT equals the VC PURCHASED EQUIPMENT PRICE. Thereafter, there shall be no further VC PURCHASED EQUIPMENT DISCOUNT from the VC WAFERS BASE_PRICE. 
 XIII. The following changes are only to correct various minor clerical errors and do not change the intent or the meaning of the agreement. 
 a.  In Section 2.2, line 8, change “plant” to “plants.” 
 b.  In Section 2.2, line 12, after **** insert “percent.” 
 c.  In Section 5.1.1, line 2, delete (**** pilot lot)”. 
 d.  In Section 5.2.1, line 2, delete (**** lot)”. 
 e.  In Section 6.2, line 3, change “1990” to “2000.” 
 f.  In
Section 8.3, line 6, change “Joint Improvement” to “JOINT IMPROVEMENT”. 
 g.  In Section 10.2, line
1, change “PI” to “POWER INTEGRATIONS, INC.”. 
 h.  In Section 16.2 change all instances of
“IMPLANTER” to “CONSIGNED EQUIPMENT”. In Section 18.16 change all instances of “subsidiary” to “SUBSIDIARY” and all instances of “subsidiaries” to “SUBSIDIARIES”. 
 i.  Amend “Article 18 (Miscellaneous Provisions)” to become “Article 21 (Miscellaneous Provisions).” and amend
the numbering of all sections of Article 21 (“Miscellaneous Provisions”) to become sections numbered 21. 
  

 7 

 By their signatures, the authorized representatives of the parties acknowledge the parties’ acceptance of this
Agreement: 
  

									
	OKI ELECTRIC INDUSTRY CO., LTD.	 		 	POWER INTEGRATIONS, INC.
					
	By:	 	 /s/
	 		 	By:	 	 /s/

					
	Name:	 	  
	 		 	Name:	 	Clifford J. Walker
					
	Title:	 	  
	 		 	Title:	 	Vice President Corporate Development
				
		 		 		 	POWER INTEGRATIONS INTERNATIONAL, LTD.
					
		 		 		 	By:	 	 /s/

					
		 		 		 	Name:	 	John L Tomlin
					
		 		 		 	Title:	 	President

  

 8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}]]