Document:

Exhibit 4.3

 

 

 

TRUST AGREEMENT

 

between

 

WORLD OMNI AUTO RECEIVABLES LLC,

as Depositor,

 

and

 

WELLS FARGO DELAWARE TRUST COMPANY, N.A.,

as Owner Trustee

 

Dated February 7, 2018

 

 

 

     

     

    

 

TABLE OF CONTENTS

 

	 	Page
	 	 
	ARTICLE I
    Definitions	1
	Section 1.01	Capitalized Terms	1
	 	 	 
	ARTICLE II
    Organization	1
	Section 2.01	Name	1
	Section 2.02	Office	1
	Section 2.03	Purposes and Powers	1
	Section 2.04	Appointment of Owner Trustee	2
	Section 2.05	Initial Capital Contribution of Owner Trust Estate	2
	Section 2.06	Declaration of Trust	3
	Section 2.07	Liability of the Depositor and the Certificateholders	3
	Section 2.08	Title to Trust Property	3
	Section 2.09	Situs of Trust	3
	Section 2.10	Representations and Warranties of the Depositor	4
	Section 2.11	Financing Statements	5
	Section 2.12	Amended and Restated Trust Agreement	5
	 	 	 
	ARTICLE III
    Trust Certificates and Transfer of Interests	5
	Section 3.01	[Reserved]	5
	Section 3.02	The Trust Certificates	5
	Section 3.03	Authentication of Trust Certificates	5
	Section 3.04	Registration of Transfer and Exchange of Trust Certificates	6
	Section 3.05	Mutilated, Destroyed, Lost or Stolen Trust Certificates	9
	Section 3.06	Persons Deemed Owners	9
	Section 3.07	Access to List of Certificateholders’ Names and Addresses	9
	Section 3.08	Maintenance of Office or Agency	10
	Section 3.09	Appointment of Paying Agent	10
	Section 3.10	Representations of Certificateholders	10
	Section 3.11	Code Section 385 Restrictions	11
	 	 	 
	ARTICLE IV
    Actions by Owner Trustee	12
	Section 4.01	Prior Notice to Certificateholders with Respect to Certain Matters	12
	Section 4.02	Action by Certificateholders with Respect to Certain Matters	12
	Section 4.03	Action by Certificateholders with Respect to Bankruptcy	13
	Section 4.04	Restrictions on Certificateholders’ Power	13
	Section 4.05	Majority Control	13
	 	 	 
	ARTICLE V
    Application of Trust Funds; Certain Duties	13
	Section 5.01	[Reserved]	13
	Section 5.02	Application of Trust Funds	13
	Section 5.03	Method of Payment	14
	Section 5.04	No Segregation of Monies; No Interest	14
	Section 5.05	Accounting and Reports to the Certificateholders, the Internal Revenue Service and Others	15

 

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	Section 5.06	Signature on Returns	16
	 	 	 
	ARTICLE VI
    Authority and Duties of Owner Trustee	16
	Section 6.01	General Authority	16
	Section 6.02	General Duties	16
	Section 6.03	Action Upon Instruction	16
	Section 6.04	No Duties Except as Specified in this Agreement or in Instructions	17
	Section 6.05	No Action Except Under Specified Documents or Instructions	17
	Section 6.06	Restrictions	18
	Section 6.07	Execution of Notes	18
	Section 6.08	Doing Business in Other Jurisdictions	18
	 	 	 
	ARTICLE VII
    Concerning the Owner Trustee	18
	Section 7.01	Acceptance of Trusts and Duties	18
	Section 7.02	Furnishing of Documents	21
	Section 7.03	Representations and Warranties of the Owner Trustee	21
	Section 7.04	[Reserved]	21
	Section 7.05	Reliance; Advice of Counsel	22
	Section 7.06	Not Acting in Individual Capacity	22
	Section 7.07	Owner Trustee Not Liable for Trust Certificates or Receivables	22
	Section 7.08	Owner Trustee May Own Trust Certificates and Notes	23
	Section 7.09	Legal Proceedings	23
	Section 7.10	Communications Regarding Demands to Repurchase Receivables	23
	 	 	 
	ARTICLE VIII
    Compensation of Owner Trustee	24
	Section 8.01	Owner Trustee’s Fees and Expenses	24
	Section 8.02	Indemnification	24
	Section 8.03	Payments to the Owner Trustee	25
	 	 	 
	ARTICLE IX
    Termination of Trust Agreement	25
	Section 9.01	Termination of Trust Agreement	25
	 	 	 
	ARTICLE X
    Successor Owner Trustees and Additional Owner Trustees	26
	Section 10.01	Eligibility Requirements for Owner Trustee	26
	Section 10.02	Resignation or Removal of Owner Trustee	26
	Section 10.03	Successor Owner Trustee	27
	Section 10.04	Merger or Consolidation of the Owner Trustee	28
	Section 10.05	Appointment of Co-Trustee or Separate Trustee	28
	 	 	 
	ARTICLE XI
    Miscellaneous	29
	Section 11.01	Supplements and Amendments	29
	Section 11.02	No Legal Title to Owner Trust Estate in Certificateholders	30
	Section 11.03	Limitations on Rights of Others	31
	Section 11.04	Notices	31
	Section 11.05	Severability	31
	Section 11.06	Separate Counterparts	31
	Section 11.07	Successors and Assigns	31
	Section 11.08	Covenants of the Depositor	32
	Section 11.09	No Petition	32

 

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	Section 11.10	No Recourse	32
	Section 11.11	Headings	33
	Section 11.12	GOVERNING LAW	33
	Section 11.13	Compliance with Applicable Anti-Terrorism and Anti Money Laundering Regulations	33
	 	 	 
	ARTICLE XII
    COMPLIANCE WITH REGULATION AB	34
	Section 12.01	Intent of the Parties; Reasonableness	34
	Section 12.02	Information to Be Provided by the Owner Trustee	34

 

	EXHIBIT A	Form of Trust Certificate
	EXHIBIT B	Form of Certificate of Trust
	EXHIBIT C	Form of Transferor Certificate
	EXHIBIT D	Form of Investment Letter
	EXHIBIT E	Form of Receivables

 

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TRUST AGREEMENT

 

This TRUST AGREEMENT
is dated February 7, 2018, between WORLD OMNI AUTO RECEIVABLES LLC, a Delaware limited liability company, as depositor, and WELLS
FARGO DELAWARE TRUST COMPANY, N.A., a national banking association, as owner trustee.

 

ARTICLE
I

 

DEFINITIONS

 

Section
1.01       Capitalized Terms.   Certain
capitalized terms used in this Agreement shall have the respective meanings assigned to them in Part I of Appendix A
to the Sale and Servicing Agreement of even date herewith. All references herein to “the Agreement” or
“this Agreement” are to this Trust Agreement as it may be amended and supplemented from time to time, the Exhibits
hereto and the capitalized terms used herein which are defined in such Appendix A, and all references herein to Articles,
Sections and subsections are to Articles, Sections and subsections of this Agreement unless otherwise specified. The rules of
construction set forth in Part II of such Appendix A shall be applicable to this Agreement.

 

ARTICLE
II

 

ORGANIZATION

 

Section 2.01        Name. The Trust
shall be known as “World Omni Auto Receivables Trust 2018-A” in which name the Owner Trustee may conduct the
business of the Trust, make and execute contracts and other instruments on behalf of the Trust and sue and be sued. The Trust
shall obtain and maintain qualification to transact business in the State of Alabama. For the purpose of qualifying to transact
business in the State of Alabama, the Trust may adopt the fictitious name of “World Omni Auto Receivables Trust 2018-A (Inc.)”
and may conduct the business of the Trust in the State of Alabama under such fictitious name.

 

Section 2.02        Office. The
office of the Trust shall be in care of the Owner Trustee at the Corporate Trust Office or at such other address as the Owner
Trustee may designate by written notice to the Certificateholders and the Depositor.

 

Section 2.03        Purposes and Powers.
(a) The purpose of the Trust is to engage in the following activities and the Trust shall have the power and authority:

 

(i)          to
issue and cause to be authenticated the Notes pursuant to the Indenture and the Trust Certificates pursuant to this Agreement and
to transfer the Notes and the Trust Certificates to the Depositor;

 

(ii)         with
the proceeds of the sale of the Notes, to purchase the Receivables, to make deposits into and withdrawals from the Reserve Account
and to pay the organizational, start-up and transactional expenses of the Trust;

 

     

     

    

 

(iii)        to
assign, grant, transfer, pledge, mortgage and convey the Owner Trust Estate pursuant to the Indenture (including the filing of
financing statements in connection therewith) and to hold, manage and distribute to the Certificateholders pursuant to the terms
of the Sale and Servicing Agreement any portion of the Owner Trust Estate released from the Lien of, and remitted to the Trust
pursuant to, the Indenture;

 

(iv)        to
enter into and perform its obligations under the Basic Documents to which it is to be a party;

 

(v)         to
engage in those activities, including entering into agreements, that are necessary, suitable or convenient to accomplish the foregoing
or are incidental thereto or connected therewith, including entering into interest rate swaps and caps and other derivative instruments;

 

(vi)        to
give the Issuing Entity Order to the Indenture Trustee to authenticate and deliver the Notes; and

 

(vii)       subject
to compliance with the Basic Documents, to engage in such other activities as may be required in connection with conservation of
the Owner Trust Estate and the making of distributions to the Certificateholders and the Noteholders.

 

The Trust is hereby authorized
to engage in the foregoing activities. The Trust shall not engage in any activity other than in connection with the foregoing or
other than as required or authorized by the terms of this Agreement or the Basic Documents.

 

Section
2.04       Appointment of Owner Trustee.
The Depositor hereby appoints the Owner Trustee as trustee of the Trust effective as of the date hereof, to have all the rights,
powers and duties set forth herein and under the Statutory Trust Act.

 

Section 2.05        Initial Capital Contribution of Owner Trust Estate.
In accordance with Section 3802(a) of the Statutory Trust Act, the Depositor has not made, and is not required to make, a contribution
to the Trust; provided that the Depositor may make a contribution to the Trust at its discretion. The Owner Trustee hereby declares
that it will hold any such contribution, which shall constitute the initial Owner Trust Estate. Notwithstanding Section 8.01
hereof, the Depositor shall pay organizational expenses of the Trust as they may arise or shall, upon the request of the Owner
Trustee, promptly reimburse the Owner Trustee for any such expenses paid by the Owner Trustee

 

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Section 2.06        Declaration of Trust.
The Owner Trustee hereby declares that it will hold the Owner Trust Estate in trust upon and subject to the conditions set forth
herein for the use and benefit of the Certificateholders, subject to the obligations of the Trust under the Basic Documents. It
is the intention of the parties hereto that the Trust constitute a statutory trust under the Statutory Trust Act and that this
Agreement constitute the governing instrument of such statutory trust. The Trust is not intended to be a business trust within
the meaning of Section 101(9)(A)(v) of the Bankruptcy Code. It is also the intention of the parties hereto that, solely for Federal,
state and local income and franchise tax purposes, on and after the Closing Date, (a) so long as the Trust has only one Certificateholder,
the Trust shall be disregarded as a separate entity and (b) at such time as the Trust has more than one Certificateholder, the
Trust will be treated as a partnership, with the assets of the partnership being the Receivables and other assets held by the
Trust, the partners of the partnership being the Certificateholders, and the Notes being non-recourse debt of the partnership.
The Depositor (and any future Certificateholder by the purchase of the Trust Certificate will be deemed to have agreed) and the
Owner Trustee agree to take no action inconsistent with such tax treatment. The Trust shall not elect to be treated as an association
under Treasury Regulations Section 301.7701-3(a). The parties agree that, unless otherwise required by appropriate tax authorities,
the sole Certificateholder or the Trust, as applicable, will file or cause to be filed annual or other necessary returns, reports
and other forms consistent with the foregoing characterization of the Trust for such tax purposes. Effective as of the date hereof,
the Owner Trustee, shall have all rights, powers and duties set forth herein and, to the extent not inconsistent herewith, in
the Statutory Trust Act with respect to accomplishing the purposes of the Trust. Any action taken on behalf of the Trust prior
to the date hereof with respect to the filing of financing statements, the Certificate of Trust, a qualification to do business
in the State of Alabama or any other similar qualification or license in any other state or jurisdiction, if applicable, is hereby
ratified.

 

Section 2.07        Liability of the Depositor and the Certificateholders.
(a) The Depositor shall be liable directly to and will indemnify any injured party for all losses, claims, damages, liabilities
and expenses of the Trust (including Expenses, to the extent not paid out of the Owner Trust Estate) to the extent that the Depositor
would be liable if the Trust was a partnership under the Delaware Revised Uniform Limited Partnership Act in which the Depositor
was a general partner; provided, however, that the Depositor shall not be liable for any losses incurred
by a Certificateholder in the capacity of an investor in the Trust Certificates, or by a Noteholder in the capacity of an investor
in the Notes. In addition, any third party creditors of the Trust (other than in connection with the obligations described in
the preceding sentence for which the Depositor shall not be liable) shall be deemed third party beneficiaries of this Section
2.07.

 

(b)          No
Certificateholder, other than to the extent set forth in paragraph (a), shall have any personal liability for any liability
or obligation of the Trust.

 

Section 2.08        Title to Trust Property.
Legal title to all the Owner Trust Estate shall be vested at all times in the Trust as a separate legal entity except where applicable
law in any jurisdiction requires title to any part of the Owner Trust Estate to be vested in a trustee or trustees, in which case
title shall be deemed to be vested in the Owner Trustee, a co-trustee and/or a separate trustee, as the case may be.

 

Section 2.09        Situs of Trust.
The Trust will be located and administered in the State of Delaware. All bank accounts maintained by the Owner Trustee on behalf
of the Trust shall be located in the States of Delaware or Minnesota. The Trust shall not have any employees in any state other
than Delaware; provided, however, that nothing herein shall restrict or prohibit the Owner Trustee
from having employees within or outside of the State of Delaware. Payments will be received by the Trust only in Delaware or Minnesota,
and payments will be made by the Trust only from Delaware or Minnesota. The only office of the Trust shall be the principal corporate
trust office of the Owner Trustee located at its Corporate Trust Office.

 

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Section 2.10        Representations and Warranties of the Depositor.
 The Depositor hereby represents and warrants to the Owner Trustee that:

 

(a)          The
Depositor is duly organized and validly existing as a limited liability company in good standing under the laws of the State of
Delaware, with power and authority to own its properties and to conduct its business as such properties are currently owned and
such business is presently conducted.

 

(b)          The
Depositor is duly qualified to do business as a foreign limited liability company in good standing, and has obtained all necessary
material licenses and approvals, in all jurisdictions in which the ownership or lease of property or the conduct of its business
shall require such qualifications, except where the failure to be so qualified or to have obtained such licenses or approvals would
not have a material adverse effect on the Depositor’s earnings, business affairs or business prospects.

 

(c)          The
Depositor has the power and authority to execute and deliver this Agreement and to carry out its terms; the Depositor has full
power and authority to sell and assign the property to be sold and assigned to and deposited with the Trust and the Depositor has
duly authorized such sale and assignment and deposit to the Trust by all necessary action; and the execution, delivery and performance
of this Agreement have been duly authorized by the Depositor by all necessary action.

 

(d)          The
consummation of the transactions contemplated by this Agreement and the fulfillment of the terms hereof do not (i) conflict with,
result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time) a default under,
the limited liability company agreement or bylaws of the Depositor; (ii) breach, conflict with or violate any of the material terms
or provisions of, or constitute (with or without notice or lapse of time) a default under, any indenture, agreement or other instrument
to which the Depositor is a party or by which it is bound; (iii) result in the creation or imposition of any Lien upon any of its
properties pursuant to the terms of any such indenture, agreement or other instrument (other than pursuant to the Basic Documents);
or (iv) violate any law or, to the best of the Depositor’s knowledge, any order, rule or regulation applicable to the Depositor
of any court or of any federal or state regulatory body, administrative agency or other governmental instrumentality having jurisdiction
over the Depositor or its properties, except, in the case of clauses (ii), (iii) and (iv), for such breaches,
defaults, conflicts, liens or violations that would not have a material adverse effect on the Depositor’s earnings, business
affairs or business prospects.

 

(e)          To
the Depositor’s best knowledge, there are no proceedings or investigations pending or threatened before any court, regulatory
body, administrative agency or other governmental instrumentality having jurisdiction over the Depositor or its properties: (i)
asserting the invalidity of this Agreement or any of the other Basic Documents, (ii) seeking to prevent the issuance of the Trust
Certificates or the consummation of any of the transactions contemplated by this Agreement or any of the other Basic Documents,
(iii) seeking any determination or ruling that could reasonably be expected to materially and adversely affect the performance
by the Depositor of its obligations under, or the validity or enforceability of, this Agreement or any of the other Basic Documents
or (iv) involving the Depositor and which might materially and adversely affect the federal income tax or other federal, state
or local tax attributes of the Trust Certificates.

 

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Section 2.11        Financing Statements.
The Trust hereby authorizes the filing of financing statements in connection with the grant of a security interest to the Indenture
Trustee pursuant to the granting clause of the Indenture. In addition, the Trust hereby ratifies any such financing statements
filed prior to the date hereof.

 

Section 2.12        Amended and Restated Trust Agreement.
This Trust Agreement is the amended and restated trust agreement contemplated by the Trust Agreement dated as of November 28,
2017, between the Depositor and the Owner Trustee (the “Initial Trust Agreement”). This Trust Agreement amends
and restates in its entirety the Initial Trust Agreement.

 

ARTICLE
III

 

TRUST
CERTIFICATES AND TRANSFER OF INTERESTS

 

Section 3.01        [Reserved].

 

Section 3.02        The
Trust Certificates. The Trust Certificates shall represent in the aggregate a 100%
Percentage Interest in the Trust. On the date hereof, the Depositor or its designee shall be the sole Certificateholder of each
of the Trust Certificates and each of the Trust Certificates shall be registered, upon initial issuance, in the name of the Depositor
or its designee. The Trust Certificates shall be executed on behalf of the Trust by manual or facsimile signature of an Authorized
Officer of the Owner Trustee. Trust Certificates bearing the manual or facsimile signatures of individuals who were, at the time
when such signatures shall have been affixed, authorized to sign on behalf of the Owner Trustee, shall be validly issued and entitled
to the benefit of this Agreement, notwithstanding that such individuals or any of them shall have ceased to be so authorized prior
to the authentication and delivery of such Trust Certificates or did not hold such offices at the date of authentication and delivery
of such Trust Certificates.

 

A transferee of a Trust
Certificate shall become a Certificateholder and shall be entitled to the rights and subject to the obligations of a Certificateholder
hereunder upon such transferee’s acceptance of a Trust Certificate duly registered in such transferee’s name pursuant
to Section 3.04.

 

Section
3.03        Authentication of Trust Certificates.
On the Closing Date, the Owner Trustee shall cause the Trust Certificates to be executed on behalf of the Trust, authenticated
and delivered to or upon the written order of the Depositor signed by the Depositor’s president, any vice president, secretary,
treasurer or any assistant treasurer, without further company action by the Depositor. No Trust Certificate shall entitle a Certificateholder
to any benefit under this Agreement or be valid for any purpose unless there shall appear on such Trust Certificate a certificate
of authentication substantially in the form set forth in Exhibit A, executed by the Owner Trustee or the Certificate
Registrar, as its authenticating agent, by manual signature; such authentication shall constitute conclusive evidence that such
Trust Certificate shall have been duly authenticated and delivered hereunder. All Trust Certificates shall be dated the date of
their authentication.

 

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Section 3.04        Registration
of Transfer and Exchange of Trust Certificates. The certificate registrar (the
“Certificate Registrar”) shall keep or cause to be kept, at the office or agency maintained pursuant to Section 3.08,
a certificate register (the “Certificate Register”) in which, subject to such reasonable regulations as it
may prescribe, the Certificate Registrar shall provide for the registration of Trust Certificates and of transfers and exchanges
of Trust Certificates as herein provided. U.S. Bank National Association shall be the initial Certificate Registrar.

 

The Trust Certificates
have not been and will not be registered under the Securities Act and will not be listed on any exchange. No transfer of a Trust
Certificate shall be made unless such transfer is made pursuant to an effective registration statement under the Securities Act
and any applicable state securities laws or is exempt from the registration requirements under the Securities Act and such state
securities laws. In the event that a transfer is to be made in reliance upon an exemption from the Securities Act and state securities
laws, in order to assure compliance with the Securities Act and such laws, the Certificateholder desiring to effect such transfer
and such Certificateholder’s prospective transferee shall each certify to the Owner Trustee and the Depositor in writing
the facts surrounding the transfer in substantially the forms set forth in Exhibit C (the “Transferor Certificate”)
and Exhibit D (the “Investment Letter”). Except in the case of a transfer as to which the proposed transferee
has provided an Investment Letter with respect to a Rule 144A transaction, there shall also be delivered to the Certificate Registrar,
the Owner Trustee and the Depositor an opinion of counsel that such transfer may be made pursuant to an exemption from the Securities
Act and state securities laws, which opinion of counsel shall not be an expense of the Trust, the Certificate Registrar, the Owner
Trustee or the Indenture Trustee (unless it is the transferee from whom such opinion is to be obtained) or of the Depositor or
World Omni; provided that such opinion of counsel in respect of the applicable state securities laws may be a memorandum
of law rather than an opinion if such counsel is not licensed in the applicable jurisdiction. The Depositor shall provide to any
Certificateholder and any prospective transferee designated by any such Certificateholder information regarding the Certificates
and the Receivables and such other information as shall be necessary to satisfy the condition to eligibility set forth in Rule
144A(d)(4) for transfer of any such Certificate without registration thereof under the Securities Act pursuant to the registration
exemption provided by Rule 144A. Each Certificateholder desiring to effect such a transfer shall, and does hereby agree to, indemnify
the Issuing Entity, the Certificate Registrar, the Owner Trustee, the Indenture Trustee, the Depositor and World Omni (in any capacity)
against any liability that may result if the transfer is not so exempt or is not made in accordance with federal and state securities
laws.

 

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No transfer of a Trust
Certificate shall be made to any Person unless the Certificate Registrar has received (A) a certificate in the form of paragraph
3 to the Investment Letter attached hereto as Exhibit D from such Person to the effect that such Person is not and is not
acting on behalf of (i) an “employee benefit plan” as defined in Section 3(3) of the Employee Retirement Income
Security Act of 1974, as amended (“ERISA”) that is subject to Title I of ERISA, (ii) a “plan”
described in Section 4975(e)(1) of the Code subject to Section 4975 of the Code, (iii) any entity whose underlying assets
include plan assets by reason of a plan’s investment in the entity or (iv) any plan that is subject to any federal, state
or local law that is substantially similar to the foregoing provisions of ERISA or Section 4975 of the Code (“Similar
Law”) (each, a “Plan”) or (B) an opinion of counsel satisfactory to the Owner Trustee, the Certificate
Registrar and the Depositor to the effect that the purchase and holding of such Trust Certificate by such Person (i) will not result
in the assets of the Issuing Entity being deemed to be “plan assets” subject to the prohibited transactions provisions
of ERISA, Section 4975 of the Code or Similar Law and will not subject the Owner Trustee, the Indenture Trustee, the Certificate
Registrar, the Servicer or the Depositor to any obligation in addition to those undertaken in the Basic Documents and (ii) will
not constitute or result in a prohibited transaction under ERISA, Section 4975 of the Code or Similar Law. The preparation and
delivery of the certificate and opinions referred to above with respect to a proposed transfer shall not be an expense of the Issuing
Entity, the Owner Trustee, the Certificate Registrar, the Indenture Trustee, World Omni (in any capacity) or the Depositor. Any
attempted or purported transfer in violation of these transfer restrictions will be null and void and will vest no rights in any
purported transferee.

 

None of the Issuing Entity,
the sponsor, the Depositor, the Servicer, the Owner Trustee and the Certificate Registrar or any of their respective affiliates
or employees (collectively, the “Transaction Parties”) will act as a fiduciary to any Plan with respect to the
decision to acquire or hold a Trust Certificate and is not undertaking to provide impartial investment advice, or to give advice
in a fiduciary capacity, with respect to such decision. The decision to acquire and hold a Trust Certificate must be made by each
prospective Plan acquirer on an arm’s length basis. In addition, each Plan acquiring Trust Certificates that is subject to
Title I of ERISA or Section 4975 of the Code must generally be represented by a fiduciary independent of the Transaction Parties
(which may not be an IRA owner or spouse of the IRA owner, in the case of an investor that is an IRA, or a participant of a Plan
acting in such capacity) that (i) is capable of evaluating investment risks independently, both in general and with regard to the
prospective investment in the Trust Certificates, (ii) has exercised independent judgment in evaluating whether to invest the assets
of such Plan in the Trust Certificates and (iii) is a bank, an insurance carrier, a registered investment adviser, a registered
broker-dealer or an independent fiduciary with at least $50 million of assets under management or control. No transfer of a Trust
Certificate shall be made to any Person that is a Plan subject to Title I of ERISA or Section 4975 of the Code unless the Depositor,
the Owner Trustee and the Certificate Registrar have received a certificate in the form of paragraph 4 to the Investment Letter
attached hereto as Exhibit D from such Plan to the foregoing effect.

 

No transfer of a Trust
Certificate shall be made to any Person unless the Depositor, the Owner Trustee and the Certificate Registrar has received (A)
a certificate in the form of paragraph 4 to the Investment Letter attached hereto as Exhibit D from such Person to the effect
that such Person is a United States Person within the meaning of Section 7701(a)(30) of the Code and (B) the Depositor, the Certificate
Registrar, the Owner Trustee and the Indenture Trustee shall have received an opinion of counsel (which counsel is independent
from the Depositor and the Trust) that such action shall not cause the Trust to be treated as an association (or publicly traded
partnership) taxable as a corporation for federal income tax purposes and such transferee or assignee shall agree to take positions
for tax purposes consistent with the tax positions set forth in Section 2.06 of this Agreement as agreed to be taken by
the Certificateholder.

 

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The Certificate Registrar
shall cause each Certificate to contain a legend stating that transfer of the Certificates is subject to certain restrictions and
referring prospective purchasers of the Certificates to the terms of this Agreement with respect to such restrictions.

 

Upon surrender for registration
of transfer of any Trust Certificate at the office or agency maintained pursuant to Section 3.08, the Owner Trustee
shall execute, and the Owner Trustee or the Certificate Registrar shall authenticate and deliver, in the name of the designated
transferee or transferees, one or more new Trust Certificates in authorized denominations of a like aggregate amount dated the
date of authentication by the Owner Trustee or any authenticating agent. At the option of a Certificateholder, Trust Certificates
may be exchanged for other Trust Certificates of authorized denominations of a like aggregate amount upon surrender of the Trust
Certificates to be exchanged at the office or agency maintained pursuant to Section 3.08. No Certificate (other than
the Certificates issued to and held by the Depositor or its Affiliates) may be subdivided upon transfer or exchange in a manner
such that any resulting Certificate(s) or beneficial ownership of a Certificate held through a party considered a nominee for U.S.
federal income tax purposes represent(s) less than a 2.00% fractional undivided interest in the Trust (or such other amount as
the Depositor may determine in order to prevent the Trust from being treated as a “publicly traded partnership” under
Section 7704 of the Code, but in no event less than a 1.00% fractional undivided interest in the Trust).

 

Every Trust Certificate
presented or surrendered for registration of transfer or exchange shall be accompanied by a written instrument of transfer in form
satisfactory to the Owner Trustee and the Certificate Registrar duly executed by the Certificateholder or such Certificateholder’s
attorney duly authorized in writing. Each Trust Certificate surrendered for registration of transfer or exchange shall be cancelled
and subsequently disposed of by the Owner Trustee in accordance with its customary practice.

 

No service charge shall
be made for any registration of transfer or exchange of Trust Certificates, but the Owner Trustee or the Certificate Registrar
may require payment of a sum sufficient to cover any tax or governmental charge that may be imposed in connection with any transfer
or exchange of Trust Certificates.

 

The preceding provisions
of this Section notwithstanding, the Owner Trustee shall not make, and the Certificate Registrar shall not register transfers or
exchanges of, Trust Certificates for a period of 15 days preceding the due date for any payment with respect to the Trust
Certificates.

 

No transfer of a Trust
Certificate or any interest therein shall be made unless the Certificateholder shall have first surrendered such Trust Certificate
to the Certificate Registrar for registration of transfer, or if such Trust Certificate shall have been mutilated, destroyed, lost
or stolen, the Certificateholder must first comply with Section 3.05 hereof.

 

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During the period described
in 17 CFR Part 246.12(f)(1), no Certificateholder may sell, transfer, finance, assign, participate, pledge or otherwise dispose
of any Certificate until the expiration of such period; provided, that, during such period, such Certificateholder may sell, transfer,
finance, assign, participate, pledge or otherwise dispose of any Certificate to World Omni or any “majority-owned affiliate”
(as such term is defined in 17 CFR Part 246.2) of World Omni in accordance with the restrictions contained in 17 CFR Part 246.12.
Any purported transfer of a Certificate not in accordance with this paragraph of Section 3.04 shall be null and void and shall
not be given effect for any purpose whatsoever. In no event shall the Owner Trustee or the Certificate Registrar have any responsibility
to monitor compliance with or be charged with knowledge of the Credit Risk Retention Rules, nor shall either of them be liable
to any investor, Noteholder, party or any other Person whatsoever for violation of such rules or requirements or such similar provisions
now or hereafter in effect.

 

Section 3.05        Mutilated,
Destroyed, Lost or Stolen Trust Certificates. If (a) any mutilated Trust Certificate
shall be surrendered to the Certificate Registrar, or if the Certificate Registrar shall receive evidence to its satisfaction
of the destruction, loss or theft of any Trust Certificate and (b) there shall be delivered to the Certificate Registrar
and the Owner Trustee such security or indemnity as may be required by them to save each of them harmless, then in the absence
of notice that such Trust Certificate has been acquired by a protected purchaser, the Owner Trustee on behalf of the Trust shall
execute and the Owner Trustee shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost
or stolen Trust Certificate, a new Trust Certificate of like tenor and denomination. In connection with the issuance of any new
Trust Certificate under this Section, the Owner Trustee or the Certificate Registrar may require the payment of a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection therewith. Any duplicate Trust Certificate issued
pursuant to this Section shall constitute conclusive evidence of ownership in the Trust, as if originally issued, whether or not
the lost, stolen or destroyed Trust Certificate shall be found at any time.

 

Section 3.06        Persons
Deemed Owners. Prior to due presentation of a Trust Certificate for registration
of transfer, the Owner Trustee, the Certificate Registrar or any Paying Agent may treat the Person in whose name any Trust Certificate
is registered in the Certificate Register as the owner of such Trust Certificate for the purpose of receiving distributions pursuant
to Section 5.02 and for all other purposes whatsoever, and none of the Owner Trustee, the Certificate Registrar or
any Paying Agent shall be bound by any notice to the contrary.

 

Section 3.07        Access to List of Certificateholders’ Names and Addresses.
The Certificate Registrar shall furnish or cause to be furnished to the Owner Trustee, the Servicer and the Depositor, within
15 days after receipt by the Certificate Registrar of a written request therefor from the Owner Trustee, the Servicer or
the Depositor, a list, in such form as the Owner Trustee, the Servicer or the Depositor may reasonably require, of the names and
addresses of the Certificateholders as of the most recent Record Date. If three or more Certificateholders or one or more Certificateholders
of Trust Certificates evidencing not less than a 25% Percentage Interest of the Certificates apply in writing to the Certificate
Registrar, and such application states that the applicants desire to communicate with other Certificateholders with respect to
their rights under this Agreement or under the Trust Certificates and such application is accompanied by a copy of the communication
that such applicants propose to transmit, then the Certificate Registrar shall, within five Business Days after the receipt of
such application, afford such applicants access during normal business hours to the current list of Certificateholders. Each Certificateholder,
by receiving and holding a Trust Certificate, shall be deemed to have agreed not to hold any of the Depositor, the Certificate
Registrar or the Owner Trustee accountable by reason of the disclosure of its name and address, regardless of the source from
which such information was derived.

 

    	9

     

    

 

Section 3.08        Maintenance of Office or Agency.
The Owner Trustee shall maintain an office or offices or agency or agencies where notices and demands to or upon the Owner Trustee
in respect of the Basic Documents may be served, and the Certificate Registrar shall maintain an office or offices or agency or
agencies where Trust Certificates may be surrendered for registration of transfer or exchange and where notices and demands to
or upon the Certificate Registrar in respect of the Trust Certificates and Basic Documents may be served. The Owner Trustee initially
designates its Corporate Trust Office as its office for such purposes and the Indenture Trustee, as Certificate Registrar, initially
designates its Corporate Trust Office as its office for such purposes. Each of the Owner Trustee and the Certificate Registrar
shall give prompt written notice to the Depositor and to the Certificateholders of any change in the location of any such office
or agency.

 

Section 3.09        Appointment of Paying Agent.
The Paying Agent shall make distributions to Certificateholders pursuant to Section 5.02. Any Paying Agent shall have
the revocable power to withdraw funds from the Collection Account for the purpose of making the distributions referred to above.
The Owner Trustee may revoke such power and remove the Paying Agent if the Owner Trustee determines in its sole discretion that
the Paying Agent shall have failed to perform its obligations under this Agreement in any material respect. The Indenture Trustee
will be the initial Paying Agent. In the event that the Indenture Trustee shall no longer be the Paying Agent, the Depositor shall
appoint a successor to act as Paying Agent (which shall be a bank or trust company). The Depositor shall cause such successor
Paying Agent or any additional Paying Agent appointed by the Depositor to execute and deliver to the Owner Trustee an instrument
in which such successor Paying Agent or additional Paying Agent shall agree with the Owner Trustee that, as Paying Agent, such
successor Paying Agent or additional Paying Agent will hold all sums, if any, held by it for payment to the Certificateholders
in trust for the benefit of the Certificateholders entitled thereto until such sums shall be paid to such Certificateholders.
The Paying Agent shall return all unclaimed funds to the Owner Trustee and upon removal of a Paying Agent such Paying Agent shall
also return all funds in its possession to the Owner Trustee. Any reference in this Agreement to the Paying Agent shall include
any co-paying agent unless the context requires otherwise.

 

Section 3.10        Representations of Certificateholders.
Each Certificateholder, by its acceptance of a Trust Certificate issued hereunder, represents that it has, independently and without
reliance on the Owner Trustee or any other person, and based on such documents and information as it has deemed appropriate, made
its own investment decision in respect of the Trust Certificate. Each Certificateholder also represents that it will, independently
and without reliance on the Owner Trustee or any other person, and based on such documents and information as it shall deem appropriate
at the time, continue to make its own decisions in taking or not taking action under this Trust Agreement and in connection with
its Trust Certificate. Except for notices, reports and other documents expressly required to be furnished to the Certificateholders
by the Owner Trustee hereunder, the Owner Trustee shall not have any duty or responsibility to provide any Certificateholder with
any other information concerning the transactions contemplated hereby, the Trust, the Depositor or any other parties hereto or
to any related documents which may come into the possession of the Owner Trustee or any of its officers, directors, employees,
agents, representatives or attorneys-in-fact.

 

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Section 3.11        Code Section 385 Restrictions.
Unless the Trust has received an Opinion of Counsel that the restriction on the proposed acquisition of the Certificate (or interest
therein) described by this paragraph is no longer necessary to conclude that any such acquisition (and subsequent resale of the
applicable Notes described below) will not cause the Treasury Regulations under Section 385 of the Code to apply to the applicable
Notes described below in a manner that could cause an adverse effect on the Trust (including for the applicable Notes to be treated
as equity for federal income tax purposes) or the Trust to be treated as an association or a publicly traded partnership taxable
as a corporation, (A) a Section 385 Certificateholder cannot acquire a Certificate (or interest therein) if (i) a member of any
“expanded group” (as defined in Treasury Regulation Section 1.385-1(c)(4)) that includes the Section 385 Certificateholder
owns any Notes (other than Retained Notes) or (ii) a Section 385 Controlled Partnership of such expanded group owns any Notes
(other than Retained Notes) and (B) a Section 385 Certificateholder cannot hold the Certificate (or interest therein) if (i) a
member of any “expanded group” (as defined in Treasury Regulation Section 1.385-1(c)(4)) that includes the Section
385 Certificateholder acquires any Notes (other than Retained Notes) from the Trust, any Affiliate, or through the marketplace
or (ii) a Section 385 Controlled Partnership of such expanded group acquires any Notes (other than Retained Notes) from the Trust,
any Affiliate, or through the marketplace. The preceding sentence shall not apply if the holder or potential holder of the applicable
Notes is (y) a U.S. corporate member of the same U.S. corporate affiliated group (as defined in Section 1504 of the Code) filing
a consolidated federal income tax return that includes each of any applicable related Section 385 Certificateholders (including
in the case of a partnership, the relevant “expanded group partner” (as defined in Treasury Regulation Section 1.385-3(g)(12))
or (z) a partnership all the partners of which are either such U.S. corporate members as described in clause (y) or partnerships
all of the partners of which are such U.S. corporate members as described in clause (y). If a Certificateholder fails to comply
with the requirements of this paragraph, the Administrator is authorized, in the Administrator’s discretion, to compel such
Certificateholder to sell its Certificate (or interest therein) to a Person whose acquisition or holding thereof does not result
in a failure to comply with this paragraph. In no event shall the Owner Trustee or Certificate Registrar be held liable for any
default or nonperformance by the Administrator, and neither the Owner Trustee nor the Certificate Registrar shall have any responsibility
to monitor compliance with or be charged with knowledge of the foregoing restrictions, nor shall either of them be liable to any
investor, Noteholder, party or any other Person whatsoever for violation of such restrictions.

 

For the purposes of this
section, “Section 385 Certificateholder” means a holder of a Certificate (or interest therein), including such person
who would become a Section 385 Certificateholder upon the transfer of a Certificate (or interest therein) to such person, that
is (1) an entity (foreign or domestic) that is treated as a corporation for United States federal income tax purposes, (2) an entity
(foreign or domestic) that (i) is treated as a partnership for United States federal income tax purposes and 80 percent or more
of its ownership interests are controlled, directly or indirectly, by an “expanded group,” within the meaning of Treasury
Regulation Section 1.385-1(c)(4) and (ii) has an expanded group partner (as defined in Treasury Regulation Section 1.385-3(g)(12))
that is an entity (foreign or domestic) that is treated as a corporation for United States federal income tax purposes or (3) a
disregarded entity or grantor trust of an entity described in clause (1) or (2). For purposes of this section, “Section 385
Controlled Partnership” has the meaning set forth in Treasury Regulation Section 1.385-1(c)(1) for a “controlled partnership.”

 

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ARTICLE
IV

 

ACTIONS
BY OWNER TRUSTEE

 

Section 4.01        Prior Notice to Certificateholders with Respect to Certain Matters.
With respect to the following matters, the Owner Trustee shall not take action unless, at least 30 days before the taking
of such action, the Owner Trustee shall have notified the Certificateholders in writing of the proposed action and the Certificateholders
shall not have notified the Owner Trustee in writing prior to the 30th day after such notice is given that such Certificateholders
have withheld consent or provided alternative direction:

 

(a)          the
initiation of any claim or lawsuit by the Trust (except claims or lawsuits brought in connection with the collection of the Receivables)
and the compromise of any action, claim or lawsuit brought by or against the Trust (except with respect to the aforementioned claims
or lawsuits for collection of the Receivables);

 

(b)          the
election by the Trust to file an amendment to the Certificate of Trust, a conformed copy of which is attached hereto as Exhibit
B (unless such amendment is required to be filed under the Statutory Trust Act);

 

(c)          the
amendment of the Indenture by a supplemental indenture in circumstances where the consent of any Noteholder is required;

 

(d)          the
amendment of the Indenture by a supplemental indenture in circumstances where the consent of any Noteholder is not required and
such amendment would materially adversely affect the interests of the Certificateholders; or

 

(e)          the
amendment, change or modification of the Administration Agreement, except to cure any ambiguity or to amend or supplement any provision
in a manner or add any provision that would not materially adversely affect the interests of the Certificateholders.

 

Section 4.02        Action by Certificateholders with Respect to Certain Matters.
The Owner Trustee shall not have the power, except upon the written direction of the Certificateholders, to (a) remove the
Administrator under the Administration Agreement pursuant to Section 8 thereof, (b) appoint a successor Administrator
under the Administration Agreement pursuant to Section 8 thereof, (c) remove the Servicer under the Sale and
Servicing Agreement pursuant to Section 8.01 thereof, (d) except as expressly provided in the Basic Documents,
sell the Receivables after the termination of the Indenture or (e) appoint, pursuant to the Indenture, a successor Note Registrar,
Paying Agent or Indenture Trustee or, pursuant to this Agreement, a successor Certificate Registrar, or consent to the assignment
by the Note Registrar, Paying Agent or Indenture Trustee or Certificate Registrar of its obligations under the Indenture or this
Agreement, as applicable. The Owner Trustee shall take the actions referred to in the preceding sentence only upon written instructions
signed by the Certificateholders.

 

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Section 4.03        Action by Certificateholders with Respect to Bankruptcy.
To the fullest extent permitted by applicable law, the Owner Trustee shall not have any power to, and shall not, (i) institute
proceedings to have the Trust declared or adjudicated bankrupt or insolvent, (ii) consent to the institution of bankruptcy or
insolvency proceedings against the Trust, (iii) file a petition or consent to a petition seeking reorganization or relief on behalf
of the Trust under any applicable federal or state law relating to bankruptcy, (iv) consent to the appointment of a receiver,
liquidator, assignee, trustee, sequestrator (or any similar official) of the Trust or a substantial portion of the assets of the
Trust, (v) make any assignment for the benefit of the Trust’s creditors, (vi) cause the Trust to admit in writing its inability
to pay its debts generally as they become due, or (vii) take any action, or cause the Trust to take any action, in furtherance
of any of the foregoing (any of the above, a “Bankruptcy Action”). So long as the Indenture remains in effect,
no Certificateholder shall have the power to take, and shall not take, any Bankruptcy Action with respect to the Trust or direct
the Owner Trustee to take any Bankruptcy Action with respect to the Trust.

 

Section 4.04        Restrictions on Certificateholders’ Power.
The Certificateholders shall not direct the Owner Trustee to take or to refrain from taking any action if such action or inaction
would be contrary to any obligation of the Trust or the Owner Trustee under this Agreement or any of the Basic Documents or would
be contrary to Section 2.03 or contrary to applicable law, nor shall the Owner Trustee be obligated to follow any
such direction, if given.

 

Section 4.05        Majority Control.
Except as expressly provided herein, any action that may be taken by the Certificateholders under this Agreement may be taken
by the Certificateholders of Trust Certificates evidencing in the aggregate at least a majority Percentage Interest. Except as
expressly provided herein, any written notice of the Certificateholders delivered pursuant to this Agreement shall be effective
if signed by Certificateholders of Trust Certificates evidencing in the aggregate at least a majority Percentage Interest at the
time of the delivery of such notice.

 

ARTICLE
V

 

APPLICATION
OF TRUST FUNDS; CERTAIN DUTIES

 

Section 5.01        [Reserved].

 

Section 5.02        Application of Trust Funds.

 

(a)          On
each Payment Date, subject to this Section 5.02(a), the Paying Agent shall distribute to Certificateholders, on a pro rata
basis, amounts pursuant to Section 5.06(ii)(I) or (iii)(G), or Section 5.07(d) of the Sale and Servicing Agreement
with respect to such Payment Date.

 

The Certificateholders
of 100% Percentage Interest of the Certificates will have the right, but not the obligation, in their sole discretion, to instruct
the Indenture Trustee in writing on or prior to the close of business on the related Payment Determination Date to retain in the
Collection Account all or a portion of distributions otherwise payable to them pursuant to Section 5.06(ii)( I) or (iii)(G),
or Section 5.07(d) of the Sale and Servicing Agreement. If the Certificateholders make this election, these amounts will
be treated as collections during the then-current Collection Period and the Certificateholders will have no claim to such amounts
(unless distributed on a subsequent Payment Date pursuant to Section 5.06(ii)(I) of the Sale and Servicing Agreement).

 

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(b)          On
each Payment Date, the Paying Agent shall post a copy of the statement or statements provided to the Indenture Trustee by the Servicer
pursuant to Section 5.08 of the Sale and Servicing Agreement with respect to such Payment Date on its internet website
promptly following its receipt thereof, for the benefit of the Certificateholder. The Paying Agent’s internet website shall
initially be located at https://usbank.com/abs. Assistance in using the website can be obtained by calling the Paying Agent’s
customer service desk at (800) 934-6802. The Paying Agent may change the way the statements and information are posted or distributed
in order to make such distribution more convenient and/or accessible for such Certificateholders, and the Paying Agent shall provide
on the website timely and adequate notification to all parties regarding any such change.

 

Section 5.03        Method of Payment.
Subject to Section 9.01(c), distributions required to be made to Certificateholders on any Payment Date shall be made to
each Certificateholder of record on the preceding Record Date either (x) by wire transfer, in immediately available funds,
to the account of such Certificateholder at a bank or other entity having appropriate facilities therefor, if such Certificateholder
shall have provided to the Certificate Registrar appropriate written instructions no later than the Record Date prior to such
Payment Date, or (y) if such Certificateholder does not qualify under clause (x), by check mailed to such Certificateholder
at the address of such holder appearing in the Certificate Register. If there is a possibility that withholding tax is payable
with respect to a distribution (such as a distribution to a non-U.S. Certificateholder), the Owner Trustee (or the Paying Agent
on its behalf) may in its sole discretion withhold such amounts in accordance with this Section 5.03. If a Certificateholder
wishes to apply for a refund of any such withholding tax, the Owner Trustee shall reasonably cooperate with such Certificateholder
in making such claim so long as such Certificateholder agrees to reimburse the Owner Trustee for any out-of-pocket expenses incurred.

 

Section 5.04        No Segregation of Monies; No Interest.
Subject to Section 5.02, monies received by the Owner Trustee hereunder need not be segregated in any manner except to
the extent required by law or the Sale and Servicing Agreement and may be deposited under such general conditions as may be prescribed
by law, and the Owner Trustee shall not be liable for any interest thereon. The Owner Trustee may establish accounts and receive,
maintain and disburse funds in accordance with the terms hereof and the Basic Documents.

 

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Section 5.05        Accounting and Reports to the Certificateholders, the Internal
Revenue Service and Others. The Administrator shall deliver to each Certificateholder,
as may be required by the Code and applicable Treasury Regulations, or as may be requested by such Certificateholder, such information,
reports or statements as may be necessary to enable each Certificateholder to prepare its federal and state income tax returns. 
Consistent with the Trust’s characterization for tax purposes as a disregarded entity so long as the Depositor or any other
Person is the sole Certificateholder, no federal income tax return shall be filed on behalf of the Trust unless either (i) the
Owner Trustee shall be provided with an Opinion of Counsel that, based on a change in applicable law occurring after the date
hereof, or as a result of a transfer permitted by Section 3.04, the Code requires such a filing or (ii) the Internal Revenue
Service shall determine that the Trust is required to file such a return.  In the event that there shall be two or more beneficial
owners of the Trust, the Administrator shall inform the Indenture Trustee in writing of such event, (x) the Administrator shall
prepare or shall cause to be prepared federal and, if applicable, state or local partnership tax returns, with all such necessary
information provided to it, required to be filed by the Trust and shall remit such returns to the Depositor (or if the Depositor
no longer owns any Certificates, the Certificateholder designated for such purpose by the Depositor to the Owner Trustee in writing
(provided that if no such designation is made, such returns shall be remitted to the Certificateholder that holds the Certificate
representing the “eligible horizontal residual interest” (as such term is defined in the Credit Risk Retention Rules)))
at least (5) days before such returns are due to be filed, and (y) capital accounts shall be maintained by the Administrator for
each Certificateholder in accordance with the Treasury Regulations under Section 704(b) of the Code reflecting each such Certificateholder’s 
share of the income, gains, deductions, and losses of the Trust and/or guaranteed payments made by the Trust and contributions
to, and distributions from, the Trust.  The Administrator shall prepare any such return with all elections the Administrator
deems appropriate, except that no election shall be made to treat the Trust as an association taxable as a corporation. 
The Depositor (or such designee Certificateholder, as applicable) shall promptly sign such returns and deliver such returns after
signature to the Administrator and such returns shall be filed by the Administrator with the appropriate tax authorities.  In
the event that a “tax matters partner” (within the meaning of Code Section 6231(a)(7)) is required to be appointed
with respect to the Trust, the Depositor or its designee is hereby designated as tax matters partner or, if the Depositor is not
a Certificateholder, the Certificateholder selected by a majority of the Certificateholders (by Percentage Interest) shall be
designated as tax matters partner; provided that if no such selection is made, the Certificateholder that holds the Certificate
representing the “eligible horizontal residual interest” (as such term is defined in the Credit Risk Retention Rules)
shall be designated as the tax matters partner.  If the Trust is classified as a partnership for federal income tax purposes
(i) for any taxable period beginning before December 31, 2017 (or for state and local tax purposes, later taxable periods if relevant),
the “tax matters partner” shall represent the Trust in connection with all examinations of the Trust’s affairs
by tax authorities, including resulting judicial and administrative proceedings, and (ii) for any taxable period beginning after
December 31, 2017, the “tax matters partner” shall be designated as the “partnership representative” within
the meaning of Section 6223 of the Code (as amended by P.L. 114-74, the Bipartisan Budget Act of 2015) and the Trust will, to
the extent practicable, make the election described in Section 6226 of the Code (as amended by P.L. 114-74, the Bipartisan Budget
Act of 2015). If the Trust is obligated to pay any amount to a governmental agency or body or to any other Person (or otherwise
makes a payment) because of a Certificateholder’s status or otherwise specifically attributable to a Certificateholder (including
any taxes arising under P.L. 114-74, the Bipartisan Budget Act of 2015, and changes to the Code relating thereto), then such Certificateholder
shall, at the Trust’s sole election, either (i) pay the entire amount (including any interest, penalties and expenses associated
with such payment) the Trust is obligated to pay because of such Certificateholder’s status or attributable to such Certificateholder
to the Trust at least five days prior to the due date for such payment by the Trust, or (ii) promptly reimburse the Trust in full
for the entire amount any and all such amounts paid by or on behalf of the Trust (including any interest, penalties and expenses
associated with such payment).

 

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Section 5.06        Signature on Returns.

 

The Depositor (or, if
the Depositor no longer owns any of the Certificates, the Certificateholder designated for such purpose pursuant to Section
5.05) or the Administrator (if permitted by law) shall sign the tax returns of the Trust on behalf of the Trust, unless applicable
law requires the Owner Trustee to sign such documents, in which case such documents shall be signed by the Owner Trustee, as required
by applicable law.

 

ARTICLE
VI

 

AUTHORITY AND DUTIES OF OWNER TRUSTEE

 

Section 6.01        General Authority.
The Owner Trustee is authorized and directed to execute and deliver the Basic Documents to which the Trust is to be a party, the
Notes and each certificate or other document attached as an exhibit to or contemplated by the Basic Documents to which the Trust
is to be a party and, in each case, in such form as the Depositor shall approve, as evidenced conclusively by the presentation
of such documents for execution to the Owner Trustee by the Depositor or its counsel. In addition to the foregoing, the Owner
Trustee is authorized, but shall not be obligated, to take all actions required of the Trust pursuant to the Basic Documents.
The Owner Trustee is further authorized from time to time, but shall not be obligated, to take such action as the Administrator
directs in writing with respect to the Basic Documents.

 

Section 6.02        General Duties.
It shall be the duty of the Owner Trustee to discharge (or cause to be discharged) all of its responsibilities pursuant to the
terms of this Agreement and to administer the Trust in the interest of the Certificateholders, subject to the Basic Documents
and in accordance with the provisions of this Agreement. Notwithstanding the foregoing, the Owner Trustee shall be deemed to have
discharged its duties and responsibilities hereunder to the extent the Administrator has agreed in the Administration Agreement
to perform any act or to discharge any duty of the Owner Trustee or the Trust hereunder or under any Basic Document, and the Owner
Trustee shall not be held liable for the default or failure of the Administrator to carry out its obligations under the Administration
Agreement.

 

Section 6.03        Action Upon Instruction.

 

(a)          Subject
to Article IV and in accordance with the terms of the Basic Documents, the Certificateholders may by written instruction
direct the Owner Trustee in the management of the Trust. Such direction may be exercised at any time by written instruction of
the Certificateholders pursuant to Article IV.

 

(b)          The
Owner Trustee shall not be required to take any action hereunder or under any Basic Document if the Owner Trustee shall have reasonably
determined, or shall have been advised by counsel, that such action is likely to result in liability on the part of the Owner Trustee
or is contrary to the terms hereof or of any Basic Document or is otherwise contrary to law.

 

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(c)          Whenever
the Owner Trustee is unable to decide between alternative courses of action permitted or required by the terms of this Agreement
or under any Basic Document, the Owner Trustee shall promptly give notice (in such form as shall be appropriate under the circumstances)
to the Certificateholders requesting instruction as to the course of action to be adopted, and to the extent the Owner Trustee
acts in good faith in accordance with any written instruction of the Certificateholders received, the Owner Trustee shall not be
liable on account of such action to any Person. If the Owner Trustee shall not have received appropriate instruction within 10 days
of such notice (or within such shorter period of time as reasonably may be specified in such notice or may be necessary under the
circumstances) it may, but shall be under no duty to, take or refrain from taking such action not inconsistent with this Agreement
or the Basic Documents, as it shall deem necessary, and shall have no liability to any Person for such action or inaction.

 

(d)          In
the event that the Owner Trustee is unsure as to the application of any provision of this Agreement or any Basic Document or any
such provision is ambiguous as to its application, or is, or appears to be, in conflict with any other applicable provision, or
in the event that this Agreement permits any determination by the Owner Trustee or is silent or is incomplete as to the course
of action that the Owner Trustee is required to take with respect to a particular set of facts, the Owner Trustee may give notice
(in such form as shall be appropriate under the circumstances) to the Certificateholders requesting instruction and, to the extent
that the Owner Trustee acts or refrains from acting in good faith in accordance with any such instruction received, the Owner Trustee
shall not be liable, on account of such action or inaction, to any Person. If the Owner Trustee shall not have received appropriate
instruction within 10 days of such notice (or within such shorter period of time as reasonably may be specified in such notice
or may be necessary under the circumstances) it may, but shall be under no duty to, take or refrain from taking such action not
inconsistent with this Agreement or the Basic Documents, as it shall deem necessary, and shall have no liability to any Person
for such action or inaction.

 

Section 6.04        No Duties Except as Specified in this Agreement or in Instructions.
The Owner Trustee shall not have any duty or obligation to manage, make any payment with respect to, register, record, sell, dispose
of, or otherwise deal with the Owner Trust Estate, or to otherwise take or refrain from taking any action under, or in connection
with, any document contemplated hereby to which the Owner Trustee is a party, except as expressly provided by the terms of this
Agreement or in any document or written instruction received by the Owner Trustee pursuant to Section 6.03; and no
implied duties or obligations shall be read into this Agreement or any Basic Document against the Owner Trustee. The Owner Trustee
shall have no responsibility for filing any financing or continuation statement in any public office at any time or to otherwise
perfect or maintain the perfection of any security interest or lien granted to it hereunder or to prepare or file any filing,
including any Securities and Exchange Commission filing for the Trust or to record this Agreement or any Basic Document. The Owner
Trustee nevertheless agrees that it will promptly take all action as may be necessary to discharge any liens on any part of the
Owner Trust Estate that result from actions by, or claims against, the Owner Trustee that are not related to the ownership or
the administration of the Owner Trust Estate.

 

Section 6.05        No Action Except Under Specified Documents or Instructions.
The Owner Trustee shall not manage, control, use, sell, dispose of or otherwise deal with any part of the Owner Trust Estate except
(i) in accordance with the powers granted to and the authority conferred upon the Owner Trustee pursuant to this Agreement,
(ii) in accordance with the Basic Documents or (iii) in accordance with any document or instruction delivered to the
Owner Trustee pursuant to Section 6.03.

 

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Section 6.06        Restrictions.
The Owner Trustee shall not take any action (a) that is inconsistent with the purposes of the Trust set forth in Section 2.03
or (b) that, to the actual knowledge of a Trust Officer of the Owner Trustee, would result in the Trust’s becoming
taxable as a corporation for federal income tax purposes or (c) is not in accordance with applicable law. Neither the Administrator
nor Certificateholders shall direct the Owner Trustee to take action that would violate the provisions of this Section 6.06.

 

Section 6.07        Execution of Notes.
The Owner Trustee is hereby authorized and directed on behalf of the Trust to execute the Notes pursuant to the Indenture.

 

Section 6.08        Doing Business in Other Jurisdictions.
Notwithstanding anything contained herein or in any other Basic Document to the contrary, the Owner Trustee shall not be required
to take any action in any jurisdiction other than any state in which it is qualified to do business (any such state, a “State
of Qualification”) if the taking of such action may (i) require the consent, approval, authorization or order of, or
the giving of notice to, or the registration with, or the taking of any other action in respect of, any state or other governmental
authority or agency of any jurisdiction other than a State of Qualification; (ii) result in any fee, tax or other governmental
charge under the laws of any jurisdiction or any political subdivisions thereof in existence on the date hereof, other than a
State of Qualification, becoming payable by the Owner Trustee; or (iii) subject the Owner Trustee to personal jurisdiction in
any jurisdiction other than a State of Qualification for causes of action arising from acts unrelated to the consummation of the
transactions by the Owner Trustee, as the case may be, contemplated hereby or in any other Transaction Document. In the event
that the Owner Trustee does not take any action because such action may result in the consequences described in the preceding
sentence, it will appoint an additional trustee pursuant to Section 10.05 to proceed with such action.

 

ARTICLE
VII

 

CONCERNING
THE OWNER TRUSTEE

 

Section 7.01        Acceptance of Trusts and Duties.
The Owner Trustee accepts the trusts hereby created and agrees to perform its duties hereunder with respect to such trusts, but
only upon the terms of this Agreement. The Owner Trustee also agrees to disburse all monies actually received by it constituting
part of the Owner Trust Estate upon the terms of this Agreement. The Owner Trustee shall not be answerable or accountable hereunder
or under any Basic Document under any circumstances, except (i) for its own willful misconduct or negligence (including where
such willful misconduct or negligence results in non-compliance with any covenant or agreement of the Owner Trustee herein), (ii)
for liabilities arising from the failure by the Owner Trustee to perform obligations expressly undertaken by it in the last sentence
of Section 6.04 hereof, (iii) in the case of the inaccuracy of any representation or warranty contained in Section 7.03 expressly made by the Owner Trustee or (iv) for federal or state taxes, fees or other charges, based on or measured by any
fees, commissions or compensation received by the Owner Trustee in connection with any of the transactions contemplated by this
Agreement or any of the Basic Documents. In particular, but not by way of limitation (and subject to the exceptions set forth
in the preceding sentence):

 

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(a)          The
Owner Trustee shall not be liable for any error of judgment made by a Trust Officer of the Owner Trustee;

 

(b)          The
Owner Trustee shall not be liable with respect to any action taken or omitted to be taken by it in accordance with the instructions
of the Administrator or any Certificateholder (provided that the instructions have been given by the requisite Percentage Interest
of the Certificates pursuant to this Agreement or one of the Basic Documents, as applicable);

 

(c)          No
provision of this Agreement or any Basic Document shall require the Owner Trustee to expend or risk funds or otherwise incur any
financial liability in the performance of any of its rights or powers hereunder or under any Basic Document if the Owner Trustee
shall have determined that repayment of such funds or indemnity reasonably satisfactory to the Owner Trustee against such risk
or liability is not reasonably assured or provided to it;

 

(d)          Under
no circumstances shall the Owner Trustee be liable for indebtedness evidenced by or arising under any of the Basic Documents, including
the principal of and interest on the Notes;

 

(e)          The
Owner Trustee shall not be responsible for or in respect of the accuracy, validity or sufficiency of this Agreement or for the
due execution hereof by the Depositor or for the form, character, genuineness, sufficiency, value or validity of the Owner Trust
Estate, or for or in respect of the accuracy, validity or sufficiency of the Basic Documents, the Trust Certificates or any other
document supplied to the Owner Trustee other than the certificate of authentication on the Trust Certificates, and the Owner Trustee
shall not in any event assume or incur any liability, duty or obligation to any Noteholder or to any Certificateholder, the Depositor
or any other Person other than as expressly provided for herein;

 

(f)           The
Owner Trustee shall not be liable for the default or misconduct of the Administrator, the Depositor, the Indenture Trustee or the
Servicer under any of the Basic Documents or otherwise, the Owner Trustee shall not have any obligation or liability to perform
the obligations of the Trust under this Agreement or the Basic Documents that are required to be performed by the Administrator
under the Administration Agreement, the Indenture Trustee under the Indenture or the Servicer or the Depositor under the Sale and
Servicing Agreement and the Owner Trustee may assume performance by the Administrator, the Depositor, the Indenture Trustee and
the Servicer absent written notice to or actual knowledge of a Trust Officer of the Owner Trustee to the contrary;

 

(g)          The
Owner Trustee shall not be under any obligation to exercise any of the rights or powers vested in it by this Agreement, or to institute,
conduct or defend any litigation under this Agreement or otherwise or in relation to this Agreement or any Basic Document, at the
request, order or direction of any of the Certificateholders or the Administrator, unless such Certificateholders or the Administrator
have offered to the Owner Trustee reasonable security or indemnity satisfactory to the Owner Trustee against the costs, expenses
and liabilities that may be incurred by it therein or thereby. The right of the Owner Trustee to perform any discretionary act
enumerated in this Agreement or in any Basic Document shall not be construed as a duty, and the Owner Trustee shall not be answerable
for other than its negligence or willful misconduct in the performance of any such act;

 

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(h)          The
Owner Trustee shall not be liable for any losses due to forces beyond the control of the Owner Trustee, including without limitation
strikes, work stoppages, acts of war or terrorism, insurrection, revolution, nuclear or natural catastrophes or acts of God and
interruptions, loss or malfunctions of utilities or communications services;

 

(i)            In
no event shall the Owner Trustee be personally liable (i) for special, consequential, indirect or punitive damages or losses, (ii)
for the acts or omissions of its nominees, correspondents, clearing agencies or securities depositories or (iii) for the acts or
omissions of brokers or dealers;

 

(j)            Notwithstanding
anything to the contrary herein or any Basic Document, the Owner Trustee shall not be required to execute, deliver or certify on
behalf of the Trust or any other Person, any filings, certificates, affidavits or other instruments required under the Sarbanes-Oxley
Act of 2002;

 

(k)           The
Owner Trustee has not provided and will not provide in the future, any advice, counsel or opinion regarding the tax, financial
or investment implications and consequences of the formation, funding and ongoing administration of the Issuing Entity. The Owner
Trustee has no duties to the Depositor, any Certificateholder, the Issuing Entity or any other parties with respect to these matters;

 

(l)           The
Owner Trustee shall not be deemed to have knowledge or notice of any event or information, including any default or Event of Default,
or be required to act upon any event or information (including the sending of any notice), unless a Trust Officer shall have actual
knowledge of such event or information or written notice of such event or information is received by a Trust Officer and such notice
references the event or information. Absent written notice in accordance with this section, the Owner Trustee may conclusively
assume that no such event has occurred. The Owner Trustee shall have no obligation to inquire into, or investigate as to, the occurrence
of any such event (including any default or Event of Default). For purposes of determining the Owner Trustee’s responsibility
and liability hereunder, whenever reference is made in this Trust Agreement to any event (including, but not limited to, a default
or an Event of Default), such reference shall be construed to refer only to such event of which the Owner Trustee has received
notice as described in this section. Knowledge of the Owner Trustee shall not be attributed or imputed to Wells Fargo’s other
roles in the transaction; and

 

(m)          In
no event shall the Owner Trustee have any responsibility to monitor World Omni’s compliance with or be charged with knowledge
of the Credit Risk Retention Rules, nor shall it be liable to any Noteholder, Certificateholder, or any party whatsoever for violation
of such rules or requirements or such similar provisions now or hereafter in effect.

 

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Section 7.02        Furnishing of Documents.
The Owner Trustee shall furnish to the Certificateholders promptly upon receipt of a written request therefor, duplicates or copies
of all reports, notices, requests, demands, certificates, financial statements and any other instruments furnished to the Owner
Trustee under the Basic Documents. The Owner Trustee (i) shall have no responsibility for the accuracy of any information provided
to the Certificateholders or any other Person that has been obtained from, or provided to the Owner Trustee, (ii) shall not be
required to investigate or reconfirm the accuracy of any such information and (iii) shall not be liable in any matter whatsoever
for any errors, inaccuracies or incorrect information resulting from the use of such information.

 

Section 7.03        Representations and Warranties of the Owner Trustee.
The Owner Trustee hereby represents and warrants to the Depositor, for the benefit of the Certificateholders, that:

 

(a)          It
is a national banking association duly formed and validly existing under the laws of the United States. It has all requisite corporate
power and authority to execute, deliver and perform its obligations under this Agreement.

 

(b)          It
has taken all corporate action necessary to authorize the execution and delivery by it of this Agreement, and this Agreement will
be executed and delivered by one of its officers who is duly authorized to execute and deliver this Agreement on its behalf.

 

(c)          Neither
the execution nor the delivery by it of this Agreement, nor the consummation by it of the transactions contemplated hereby nor
compliance by it with any of the terms or provisions hereof will (i) contravene any federal or Delaware law, governmental rule
or regulation governing the banking or trust powers of the Owner Trustee or any judgment or order binding on it, (ii) constitute
any default under its charter documents or bylaws, (iii) constitute any default under any indenture, mortgage, contract, agreement
or instrument to which it is a party or by which any of its properties may be bound or (iv) result in the creation or imposition
of any lien, charge or encumbrance on the Owner Trust Estate resulting from actions by or claims against the Owner Trustee which
are unrelated to this Agreement or the other Basic Documents.

 

(d)          It
has the power and authority to execute and deliver this Agreement; and the execution, delivery, and performance of this Agreement
by it has been duly authorized by all necessary corporate action.

 

(e)          This
Agreement constitutes the legal, valid, and binding obligation of the Owner Trustee, enforceable in accordance with its terms,
except as such enforceability may be limited by bankruptcy, insolvency, reorganization, or other similar laws affecting the enforcement
of creditors’ rights in general and by general principles of equity, regardless of whether such enforceability shall be considered
in a proceeding in equity or at law.

 

Section 7.04        [Reserved].

 

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Section 7.05        Reliance; Advice of Counsel.
(a) The Owner Trustee shall incur no liability to anyone in acting upon any signature, instrument, notice, resolution, request,
consent, order, certificate, report, opinion, bond, or other document or paper (whether in its original or facsimile form) believed
by it to be genuine and believed by it to be signed by the proper party or parties. The Owner Trustee may accept a certified copy
of a resolution of the board of directors or other governing body of any corporate party as conclusive evidence that such resolution
has been duly adopted by such body and that the same is in full force and effect. As to any fact or matter the method of determination
of which is not specifically prescribed herein, the Owner Trustee may for all purposes hereof rely on a certificate (the costs
of which shall be paid by the party requesting such action), signed by the president or any vice president or by the treasurer
or other authorized officers of an appropriate Person, as to such fact or matter, and such certificate shall constitute full protection
to the Owner Trustee for any action taken or omitted to be taken by it in good faith in reliance thereon. The Owner Trustee need
not investigate or re-calculate, evaluate, verify or independently determine the accuracy of any report, certificate, information,
statement, representation or warranty or any fact or matter stated in any such document and may conclusively rely thereon as to
the truth of the statements and the correctness of the opinions expressed therein.

 

(b)          In
the exercise or administration of the trusts hereunder and in the performance of its duties and obligations under this Agreement
or the Basic Documents, the Owner Trustee (i) may act directly or through its agents or attorneys pursuant to agreements entered
into with it, and the Owner Trustee shall not be liable for the conduct or misconduct of such agents or attorneys if such agents
or attorneys shall have been selected by the Owner Trustee with reasonable care, and (ii) may consult with counsel, accountants
and other skilled Persons to be selected with reasonable care and employed by it. The Owner Trustee shall not be liable for anything
done, suffered or omitted in good faith which it believes to be authorized or within its rights or powers, in accordance with the
opinion or advice of any such counsel, accountants or other such Persons and not to its knowledge contrary to this Agreement or
any Basic Document.

 

Section 7.06        Not Acting in Individual Capacity.
Except as provided in this Article VII, in accepting the trusts hereby created, Wells Fargo Delaware Trust Company,
N.A., acts solely as Owner Trustee hereunder and not in its individual capacity, and all Persons having any claim against the
Owner Trustee by reason of the transactions contemplated by this Agreement or any Basic Document shall look only to the Owner
Trust Estate for payment or satisfaction thereof.

 

Section 7.07        Owner Trustee Not Liable for Trust Certificates or Receivables.
The Owner Trustee makes no representations as to the validity or sufficiency of this Agreement, of any Basic Document or of the
Trust Certificates (other than the signature and countersignature of the Owner Trustee on the Trust Certificates) or the Notes,
or of any Receivable or related documents. The Owner Trustee shall not at any time have any responsibility or liability for or
with respect to the legality, validity and enforceability of any Receivable, or the perfection and priority of any security interest
created by any Receivable in any Financed Vehicle or the maintenance of any such perfection and priority, or for or with respect
to the sufficiency of the Owner Trust Estate or its ability to generate the payments to be distributed to Certificateholders under
this Agreement or the Noteholders under the Indenture, including, without limitation: the existence, condition and ownership of
any Financed Vehicle; the existence and enforceability of any insurance thereon; the existence and contents of any Receivable
on any computer or other record thereof; the validity of the assignment of any Receivable to the Trust or of any intervening assignment;
the completeness of any Receivable; the performance or enforcement of any Receivable; the compliance by the Depositor or the Servicer
with any warranty or representation made under any Basic Document or in any related document or the accuracy of any such warranty
or representation, or any action of the Administrator, the Indenture Trustee or the Servicer or any subservicer taken in the name
of the Owner Trustee.

 

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Section 7.08        Owner Trustee May Own Trust Certificates and Notes.
The Owner Trustee in its individual or any other capacity may become the owner or pledgee of Trust Certificates or Notes and may
deal with the Depositor, the Administrator, the Indenture Trustee and the Servicer in banking transactions with the same rights
as it would have if it were not Owner Trustee.

 

Section 7.09        Legal Proceedings.
As required by Regulation AB, the Owner Trustee will promptly as practicable notify the Servicer, the Depositor and the Issuing
Entity of the commencement or, if applicable, the termination of any and all legal proceedings of which any property of the Owner
Trustee is the subject, and any such proceedings known to be contemplated by governmental authorities, in each case, that is material
to the Holders of any Notes. In addition, the Owner Trustee will furnish to the Servicer, the Depositor and the Issuing Entity,
in writing, the necessary disclosure describing such proceedings required to be disclosed under Item 1117 of Regulation AB, for
inclusion in reports filed pursuant to the Exchange Act.

 

Section 7.10        Communications Regarding Demands to Repurchase Receivables.
The Owner Trustee shall provide notice to World Omni and the Depositor, as soon as practicable and in any event within five Business
Days, of all demands communicated to a Reporting Officer of the Owner Trustee for the repurchase or replacement of any Receivable
for breach of the representations and warranties concerning such Receivable. Such notices shall be provided to World Omni and
the Depositor at: (a) in the case of World Omni, World Omni Financial Corp., 190 Jim Moran Boulevard, Deerfield Beach, Florida
33442, Telecopy: (954) 429-2685, Attention: Treasurer, and (b) in the case of the Depositor, to World Omni Auto Receivables LLC,
190 Jim Moran Boulevard, Deerfield Beach, Florida 33442, Telecopy: (954) 429-2685, Attention: Treasurer, or at such other address
or by such other means of communication as may be specified by World Omni or the Depositor to the Owner Trustee from time to time.
The Owner Trustee acknowledges and agrees that the purpose of this Section 7.10 is to facilitate compliance by World Omni and
the Depositor with Rule 15Ga-1 under the Exchange Act, as amended, and Items 1104(e) and 1121(c) of Regulation AB (the “Repurchase
Rules and Regulations”). The Owner Trustee acknowledges that interpretations of the requirements of the Repurchase Rules
and Regulations may change over time, whether due to interpretive guidance provided by the Commission or its staff, consensus
among participants in the asset-backed securities markets, advice of counsel, or otherwise, and agrees to cooperate in good faith
at the sole cost and expense of World Omni or the Depositor with any reasonable request made by World Omni or the Depositor for
information which is required in order to enable World Omni or the Depositor to comply with the Repurchase Rules and Regulations.
The Owner Trustee’s reporting is limited to information delivered to a Reporting Officer of the Owner Trustee that it has
received or acquired solely in its capacity as Owner Trustee and not in any other capacity. The Owner Trustee is not a securitizer
(as defined in the Repurchase Rules and Regulations) and in no event will Wells Fargo Delaware Trust Company, N.A., (individually
or as Owner Trustee) have any responsibility or liability in connection with (i) the compliance by any person who is a securitizer
(as defined in Rule 15Ga-1) in connection with the Issuing Entity, or any other person under the Repurchase Rules and Regulations
or (ii) any filing required to be made by a securitizer under the Repurchase Rules and Regulations in connection with the information
provided pursuant to this Section 7.10. Other than any express duties or responsibilities as Owner Trustee under this Agreement,
the Owner Trustee has no duty or obligation to undertake any investigation or inquiry related to demands for the repurchase or
replacement of any Receivable or otherwise to assume any additional duties or responsibilities in respect of any transaction contemplated
in this Agreement, and no such additional obligations or duties are implied in this Agreement. The Owner Trustee will not have
any duty to conduct, and has not conducted, any affirmative investigation as to the occurrence of any conditions requiring the
repurchase or replacement of any Receivable.

 

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ARTICLE
VIII

 

COMPENSATION
OF OWNER TRUSTEE

 

Section 8.01        Owner Trustee’s Fees and Expenses.
The Owner Trustee shall receive as compensation for its services hereunder during the term of this Agreement such fees as have
been separately agreed upon in writing before the date hereof between the Administrator and the Owner Trustee, and the Owner Trustee
shall be entitled to be reimbursed by the Administrator pursuant to the Administration Agreement for its other reasonable and
documented expenses hereunder, including the reasonable and documented compensation, expenses and disbursements of such agents,
representatives, experts and counsel as the Owner Trustee may employ in connection with the exercise and performance of its rights
and its duties hereunder; provided, that reimbursement for expenses and disbursements of any legal counsel to the
Owner Trustee in connection with the Closing Date shall be subject to any limitations separately agreed upon before the date hereof
between the Depositor (or any Affiliate thereof) and the Owner Trustee. The provisions of this Section 8.01 shall survive
the resignation or removal of the Owner Trustee and the termination of this Agreement.

 

Section 8.02        Indemnification.
Pursuant to the Administration Agreement, the Administrator shall be liable as primary obligor for, and shall indemnify the Owner
Trustee and its officers, directors, stockholders, employees, successors, assigns, agents and servants (collectively, the “Indemnified
Parties”) from and against, any and all liabilities, obligations, losses, costs, damages, taxes, claims, actions and
suits, and any and all reasonable and documented costs, expenses and disbursements (including reasonable and documented legal
fees and expenses and including, without limitation, any legal fees, costs and expenses incurred in connection with any enforcement
(including any action, claim or suit brought) by the Owner Trustee or any other Indemnified Party of any indemnification or other
obligation of the Administrator) of any kind and nature whatsoever (collectively, “Expenses”) which may at
any time be imposed on, incurred by or asserted against any Indemnified Party in any way relating to or arising out of this Agreement,
the Basic Documents, the Owner Trust Estate, the administration of the Owner Trust Estate or the action or inaction of any Indemnified
Party hereunder, except only that the Administrator shall not be liable for or required to indemnify an Indemnified Party from
and against Expenses arising or resulting from any of the matters described in clauses (i), (ii), (iii) or (iv) of the third sentence
of Section 7.01. The indemnities contained in this Section shall survive the resignation or removal of the Owner Trustee
or the termination or assignment of this Agreement. In any event of any claim, action or proceeding for which indemnity is sought
pursuant to this Section, the Owner Trustee’s choice of legal counsel shall be subject to the approval of the Administrator,
which approval shall not be unreasonably withheld or delayed.

 

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Section 8.03        Payments to the Owner Trustee.
Any amounts paid to the Owner Trustee pursuant to this Article VIII shall be deemed not to be a part of the Owner
Trust Estate simultaneously with such payment.

 

ARTICLE
IX

 

TERMINATION
OF TRUST AGREEMENT

 

Section 9.01        Termination of Trust Agreement.
(a) The Trust shall be dissolved immediately prior to the final distribution by the Owner Trustee or Paying Agent of all monies
or other property or proceeds of the Owner Trust Estate in accordance with the terms of the Indenture, the Sale and Servicing
Agreement and Article V. The bankruptcy, liquidation, dissolution, death or incapacity of any Certificateholder shall
not (x) operate to terminate this Agreement or the Trust or (y) entitle such Certificateholder’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 all or any part
of the Trust or Owner Trust Estate or (z) otherwise affect the rights, obligations and liabilities of the parties hereto.

 

(b)          Except
as provided in Section 9.01(a), neither the Depositor nor any Certificateholder shall be entitled to revoke or terminate
the Trust.

 

(c)          Notice
of any termination of the Trust, specifying the Payment Date upon which Certificateholders shall surrender their Trust Certificates
to the Paying Agent for payment of the final distribution and cancellation, shall be given by the Paying Agent by letter to Certificateholders
mailed within five Business Days of receipt of actual notice of such termination from the Servicer given pursuant to Section 9.01(b)
of the Sale and Servicing Agreement, stating (i) the Payment Date upon or with respect to which final payment of the Trust
Certificates shall be made upon presentation and surrender of the Trust Certificates at the office of the Paying Agent 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, and, as a result, payments will be made only upon presentation and surrender of the Trust Certificates
by Certificateholders at the office of the Paying Agent therein specified. The Paying Agent shall give such notice to the Certificate
Registrar (if other than the Indenture Trustee) and the Owner Trustee at the time such notice is given to Certificateholders. Upon
presentation and surrender of the Trust Certificates, the Paying Agent shall cause to be distributed to Certificateholders amounts
distributable on such Payment Date pursuant to Section 5.02.

 

In the event that all
of the Certificateholders shall not surrender their Trust Certificates for cancellation within six months after the date specified
in the above-mentioned written notice, the Paying Agent shall give a second written notice to the remaining Certificateholders
to surrender their Trust Certificates for cancellation and receive the final distribution with respect thereto. If within one year
after the second notice all the Trust Certificates shall not have been surrendered for cancellation, the Owner Trustee or Paying
Agent may take appropriate steps, or may appoint an agent to take appropriate steps, to contact the remaining Certificateholders
concerning surrender of their Trust Certificates, and the cost thereof shall be paid out of the funds and other assets that shall
remain subject to this Agreement. Any funds remaining in the Owner Trust Estate after exhaustion of such remedies shall be distributed
by the Paying Agent to the Depositor subject to applicable escheat laws.

 

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(d)          Upon
the winding up of the Trust and receipt of written instruction from the Administrator, the Owner Trustee shall cause the Certificate
of Trust to be cancelled by filing a certificate of cancellation (as provided to it) with the Secretary of State of the State of
Delaware in accordance with the provisions of Section 3810 of the Statutory Trust Act and thereupon the Trust and this Trust
Agreement (other than Article VIII) shall terminate and be of no further force or effect.

 

ARTICLE
X

 

SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES

 

Section 10.01      Eligibility Requirements for Owner Trustee.
The Owner Trustee shall at all times be a corporation or other entity satisfying the provisions of Section 3807(a) of the Statutory
Trust Act and it shall at all times be authorized to exercise corporate trust powers; having a combined capital and surplus of
at least $50,000,000, subject to supervision or examination by federal or state authorities and having (or having a parent which
has) a long-term rating in any generic rating category which signifies investment grade by each Rating Agency or a rating otherwise
acceptable to each Rating Agency. If such entity shall publish reports of condition at least annually pursuant to law or to the
requirements of the aforesaid supervising or examining authority, then for the purpose of this Section, the combined capital and
surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition
so published. In case at any time the Owner Trustee shall cease to be eligible in accordance with the provisions of this Section,
the Owner Trustee shall resign promptly in the manner and with the effect specified in Section 10.02.

 

Section 10.02      Resignation or Removal of Owner Trustee.
(a) Subject to paragraph (c) of this Section, the Owner Trustee may at any time resign and be discharged from the trusts hereby
created by giving written notice thereof to the Administrator. Upon receiving such notice of resignation, the Administrator shall
promptly appoint a successor Owner Trustee by written instrument, in duplicate, one copy of which instrument shall be delivered
to the resigning Owner Trustee and one copy to the successor Owner Trustee. If no successor Owner Trustee shall have been so appointed
and have accepted appointment within 30 days after the giving of such notice of resignation, the resigning Owner Trustee, as applicable,
may petition (at the expense of the Depositor (including without limitation reasonable and documented attorneys’ fees, costs
and expenses)) any court of competent jurisdiction for the appointment of a successor Owner Trustee.

 

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(b)          Subject
to paragraph (c) of this Section, if at any time the Owner Trustee shall cease to be eligible in accordance with the provisions
of Section 10.01 and shall fail to resign after written request therefor by the Administrator, or if at any time the
Owner Trustee shall be legally unable to act, or shall be adjudged bankrupt or insolvent, or a receiver of the Owner Trustee or
of its property shall be appointed, or any public officer shall take charge or control of the Owner Trustee or of its property
or affairs for the purpose of rehabilitation, conservation or liquidation, then the Administrator may remove the Owner Trustee.
If the Administrator or the Depositor shall remove the Owner Trustee under the authority of the immediately preceding sentences,
the Administrator shall promptly appoint a successor Owner Trustee by written instrument, in duplicate, one copy of which instrument
shall be delivered to the outgoing Owner Trustee so removed and one copy to the successor Owner Trustee, and shall pay all fees
owed to the outgoing Owner Trustee and one copy to the Depositor, together with the basis for removal.

 

(c)          Any
resignation or removal of the Owner Trustee and appointment of a successor Owner Trustee pursuant to any of the provisions of this
Section shall not become effective until acceptance of appointment by the successor Owner Trustee pursuant to Section 10.03
and payment of all fees and expenses owed to the outgoing Owner Trustee. The Administrator shall provide notice of such resignation
or removal of the Owner Trustee to each Rating Agency.

 

Section 10.03      Successor Owner Trustee.
Any successor Owner Trustee appointed pursuant to Section 10.02 shall execute, acknowledge and deliver to the Administrator
and to its predecessor Owner Trustee an instrument accepting such appointment under this Agreement, and thereupon the resignation
or removal of the predecessor Owner Trustee shall become effective, and such successor Owner Trustee, without any further act,
deed or conveyance, shall become fully vested with all the rights, powers, duties and obligations of its predecessor under this
Agreement, with like effect as if originally named as Owner Trustee. The predecessor Owner Trustee shall upon payment of its fees
and expenses deliver to the successor Owner Trustee all documents and statements and monies held by it under this Agreement, and
the Administrator and the predecessor Owner Trustee shall execute and deliver such instruments and do such other things as may
reasonably be required for fully and certainly vesting and confirming in the successor Owner Trustee all such rights, powers,
duties and obligations.

 

No successor Owner Trustee
shall accept appointment as provided in this Section unless at the time of such acceptance such successor Owner Trustee shall be
eligible pursuant to Section 10.01.

 

Upon written acceptance
of appointment by a successor Owner Trustee pursuant to this Section, the Administrator shall mail notice thereof to all Certificateholders,
the Indenture Trustee, the Noteholders and the Rating Agencies. If the Administrator shall fail to mail such notice within 10 Business
Days after acceptance of such appointment by the successor Owner Trustee, the successor Owner Trustee shall cause such notice to
be mailed at the expense of the Administrator.

 

Any successor Owner Trustee
appointed hereunder shall promptly file an amendment to the Certificate of Trust with the Secretary of State of the State of Delaware
as required by the Statutory Trust Act.

 

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Section 10.04      Merger or Consolidation of the Owner Trustee.
Any corporation or other entity into which the Owner Trustee may be merged or converted or with which it may be consolidated,
or any corporation or other entity resulting from any merger, conversion or consolidation to which the Owner Trustee shall be
a party, or any corporation or other entity succeeding to all or substantially all of the corporate trust business of the Owner
Trustee, shall be the successor to and assume all obligations of the Owner Trustee, without the execution or filing of any assignment
or other instrument or any further act on the part of such other entity or any of the parties hereto, anything herein to the contrary
notwithstanding; provided, that such corporation or other entity shall be eligible pursuant to Section 10.01
and, provided, further, that the Owner Trustee shall mail notice of such merger, conversion
or consolidation to the Depositor, who shall promptly deliver such notice to each Rating Agency.

 

Section 10.05      Appointment of Co-Trustee or Separate Trustee.
Notwithstanding any other provisions of this Agreement, at any time, for the purpose of (i) meeting any legal requirements of
any jurisdiction in which any part of the Owner Trust Estate or any Financed Vehicle may at the time be located, (ii) facilitating
enforcement actions and (iii) mitigating conflicts of interest, the Administrator and the Owner Trustee acting jointly shall have
the power and shall execute and deliver all instruments to appoint one or more Persons approved by the Administrator and Owner
Trustee to act as co-trustee, jointly with the Owner Trustee, or as separate trustee or separate trustees, of all or any part
of the Owner Trust Estate, and to vest in such Person, in such capacity, such title to the Trust or any part thereof and, subject
to the other provisions of this Section, such powers, duties, obligations, rights and trusts as the Administrator and the Owner
Trustee may consider necessary or desirable. If the Administrator shall not have joined in such appointment within 15 days
after the receipt by it of a request so to do, the Owner Trustee alone shall have the power to make such appointment. No co-trustee
or separate trustee under this Agreement shall be required to meet the terms of eligibility as a successor Owner Trustee pursuant
to Section 10.01 and no notice of the appointment of any co-trustee or separate trustee shall be required pursuant
to Section 10.03.

 

Each separate trustee
and co-trustee shall, to the extent permitted by law, be appointed and act subject to the following provisions and conditions:

 

(a)          All
rights, powers, duties and obligations conferred or imposed upon the Owner Trustee shall be conferred upon and exercised or performed
by the Owner Trustee and such separate trustee or co-trustee jointly (it being understood that such separate trustee or co-trustee
is not an agent of the Owner Trustee and is not authorized to act separately without the Owner Trustee joining in such act), except
to the extent that, under any law of any jurisdiction in which any particular act or acts are to be performed, the Owner Trustee
shall be incompetent or unqualified to perform such act or acts, in which event such rights, powers, duties and obligations (including
the holding of title to the Owner Trust Estate or any portion thereof in any such jurisdiction) shall be exercised and performed
singly by such separate trustee or co-trustee, but solely at the direction of the Owner Trustee;

 

(b)          No
trustee under this Agreement shall be personally liable by reason of any act or omission of any other trustee under this Agreement;
and

 

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(c)          The
Administrator and the Owner Trustee acting jointly may at any time accept the resignation of or remove any separate trustee or
co-trustee without notice to any Rating Agency or any other Person.

 

Any notice, request or
other writing given to the Owner Trustee shall be deemed to have been given to each of the then separate trustees and co-trustees,
as effectively as if given to each of them. Every instrument appointing any separate trustee or co-trustee shall refer to this
Agreement and the conditions of this Article. Each separate trustee and co-trustee, upon its acceptance of the trusts conferred,
shall be vested with the estates or property specified in its instrument of appointment, either jointly with the Owner Trustee
or separately, as may be provided therein, subject to all the provisions of this Agreement, specifically including every provision
of this Agreement relating to the conduct of, affecting the liability of, or affording protection to, the Owner Trustee. Each such
instrument shall be filed with the Owner Trustee and a copy thereof given to the Administrator.

 

Any separate trustee
or co-trustee may at any time appoint the Owner Trustee as its agent or attorney-in-fact with full power and authority, to the
extent not prohibited by law, to do any lawful act under or in respect of this Agreement on its behalf and in its name. If any
separate trustee or co-trustee shall die, become incapable of acting, resign or be removed, all of its estates, properties, rights,
remedies and trusts shall vest in and be exercised by the Owner Trustee, to the extent permitted by law, without the appointment
of a new or successor co-trustee or separate trustee.

 

ARTICLE
XI

 

MISCELLANEOUS

 

Section 11.01      Supplements and Amendments.
This Agreement may be amended by the Depositor and the Owner Trustee, without the consent of any of the Noteholders or the Certificateholders,
to cure any ambiguity, to correct or supplement any provision in this Agreement (including to further prevent or help avoid the
application to the Certificates of the Treasury Regulations (or other interpretive guidance) issued under Section 385 of the Code)
or for the purpose of adding any provision to or changing in any manner or eliminating any of the provisions in this Agreement
or of modifying in any manner the rights of the Noteholders or the Certificateholders. Such amendments require: (i) satisfaction
of the Rating Agency Condition or (ii) an Officer’s Certificate of the Depositor delivered to the Issuing Entity, the Owner
Trustee and the Indenture Trustee stating that the amendment will not materially and adversely affect the interest of any Noteholder
or Certificateholder.

 

This Agreement may also
be amended from time to time by the Depositor and the Owner Trustee, with the consent of holders of at least a majority of the
Outstanding Amount of the Controlling Securities (unless (i) the interests of the Noteholders are not affected materially and adversely,
as evidenced by an Officer’s Certificate of the Depositor to that effect delivered to the Indenture Trustee and the Owner
Trustee by the Depositor or (ii) satisfaction of the Rating Agency Condition) and the consent of the Certificateholders evidencing
at least a majority Percentage Interest of the Trust Certificates (unless (i) the interests of the Certificateholders are not affected
materially and adversely and (ii) an Officer’s Certificate of the Depositor to that effect is delivered to the Owner Trustee
by the Depositor), for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of
this Agreement or of modifying in any manner the rights of the Noteholders or the Certificateholders; provided, however,
that no such amendment shall (a) increase or reduce in any manner the amount of, or accelerate or delay the timing of, collections
of payments on Receivables or distributions that shall be required to be made for the benefit of the Noteholders or the Certificateholders
or (b) reduce the aforesaid percentage of the Outstanding Amount of the Controlling Securities and the Percentage Interest
in the Trust Certificates required to consent to any such amendment, without the consent of the holders of all the Outstanding
Notes and Certificates affected thereby.

 

    	29

     

    

 

Promptly after the execution
of any such amendment or consent, the Owner Trustee shall furnish written notification of the substance of such amendment or consent
to the Administrator and the Administrator shall furnish such notice to each Certificateholder, the Indenture Trustee and each
Rating Agency.

 

It shall not be necessary
for the consent of Certificateholders, Noteholders or the Indenture Trustee pursuant to this Section to approve the particular
form of any proposed amendment or consent, but it shall be sufficient if such consent shall approve the substance thereof. The
manner of obtaining such consents (and any other consents of Certificateholders provided for in this Agreement or in any other
Basic Document) and of evidencing the authorization of the execution thereof by Certificateholders shall be subject to such reasonable
requirements as the Administrator may prescribe.

 

Promptly after the execution
of any amendment to the Certificate of Trust, the Owner Trustee shall cause the filing of such amendment with the Secretary of
State of the State of Delaware.

 

In connection with the
execution of any amendment to this Agreement or any amendment to any other agreement to which the Issuing Entity is a party, the
Owner Trustee shall be entitled to receive and conclusively rely upon an Opinion of Counsel to the effect that such amendment is
authorized or permitted by this Agreement or, as applicable such other agreement, and that all conditions precedent to the execution
and delivery thereof by the Issuing Entity or the Owner Trustee, as the case may be, have been satisfied. The Owner Trustee may,
but shall not be obligated to, enter into any such amendment that affects the Owner Trustee’s own rights, duties or immunities
under this Agreement or otherwise.

 

Section 11.02      No Legal Title to Owner Trust Estate in Certificateholders.
The Certificateholders shall not have legal title to any part of the Owner Trust Estate. The Certificateholders shall be entitled
to receive distributions with respect to their undivided ownership interest therein only in accordance with Articles V
and IX. No transfer, by operation of law or otherwise, of any right, title or interest of the Certificateholders to
and in their ownership interest in the Owner Trust Estate shall operate to terminate this Agreement or the trusts hereunder or
entitle any transferee to an accounting or to the transfer to it of legal title to any part of the Owner Trust Estate.

 

    	30

     

    

 

Section 11.03      Limitations on Rights of Others.
Except for Section 2.07, the provisions of this Agreement are solely for the benefit of the Owner Trustee, the Depositor,
the Certificateholders, the Administrator, the Servicer and, to the extent expressly provided herein, the Indenture Trustee and
the Noteholders, and nothing in this Agreement (other than Section 2.07 hereof), whether express or implied, shall
be construed to give to any other Person any legal or equitable right, remedy or claim in the Owner Trust Estate or under or in
respect of this Agreement or any covenants, conditions or provisions contained herein.

 

Section 11.04      Notices. (a)
Unless otherwise expressly specified or permitted by the terms hereof, all notices shall be in writing and shall be deemed given
upon receipt by the intended recipient or on the next Business Day after delivery if delivered by a recognized overnight courier
or upon receipt of written confirmation of receipt of facsimile, if delivered by facsimile (except that notice to the Owner Trustee
shall be deemed given only upon actual receipt by the Owner Trustee), if to the Owner Trustee, addressed to the Corporate Trust
Office, if to the Depositor, addressed to World Omni Auto Receivables LLC, 190 Jim Moran Boulevard, Deerfield Beach, Florida 33442,
telephone: (954) 429-2200, facsimile: (954) 429-2685, Attention: Treasurer; or, as to each party, at such other address or electronic
mail address as shall be designated by such party in a written notice to each other party.

 

(b)          Any
notice required or permitted to be given to a Certificateholder shall be given by first-class mail, postage prepaid, at the address
of such Certificateholder as shown in the Certificate Register. Any notice so mailed within the time prescribed in this Agreement
shall be conclusively presumed to have been duly given, whether or not the Certificateholder receives such notice.

 

(c)          The
Depositor’s obligation to deliver or provide any demand, delivery, notice, communication or instruction to any Person other
than a Noteholder shall be satisfied by the Depositor making such demand, delivery, notice, communication or instruction available
at https://via.intralinks.com/, or such other website or distribution service or provider as the Depositor shall designate by written
notice to the other parties.

 

Section 11.05      Severability.
Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition
or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

Section 11.06      Separate Counterparts. This
Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be
an original, but all such counterparts shall together constitute but one and the same instrument.

 

Section 11.07      Successors and Assigns.
All covenants and agreements contained herein shall be binding upon, and inure to the benefit of, each of the Depositor and its
permitted assignees, the Owner Trustee and its successors, and each Certificateholder and its successors and permitted assigns,
all as herein provided. Any request, notice, direction, consent, waiver or other instrument or action by a Certificateholder shall
bind the successors and assigns of such Certificateholder.

 

    	31

     

    

 

Section 11.08      Covenants of the Depositor.
In the event that any Certificateholder commences any litigation with claims in excess of $1,000,000 to which the Depositor is
a party which in the judgment of counsel to the Depositor who may be an employee of the Depositor, shall be reasonably likely
to result in a material judgment against the Depositor that the Depositor will not be able to satisfy, during the period beginning
nine months following the commencement of such litigation and continuing until such litigation is dismissed or otherwise terminated
(and, if such litigation has resulted in a final judgment against the Depositor, such judgment has been satisfied), the Depositor
shall not pay any dividend to World Omni, or make any distribution to World Omni, or repay the principal amount of any indebtedness
of the Depositor held by World Omni, unless (i) after giving effect to such dividend, distribution or repayment, the Depositor’s
liquid assets shall not be less than the amount of actual damages claimed in such litigation that are reasonably likely to equal
the amount of the judgment, if any, against the Depositor or (ii) the Rating Agency Condition shall have been satisfied with
respect to any such dividend, distribution or repayment. The Depositor will not at any time institute against the Trust any bankruptcy
proceedings under any United States federal or state bankruptcy or similar law in connection with any obligations relating to
the Trust Certificates, the Notes, the Trust Agreement or any of the Basic Documents.

 

Section 11.09      No Petition.
To the fullest extent permitted by applicable law, the Owner Trustee, by entering into this Agreement, each Certificateholder,
by accepting a Trust Certificate, and the Indenture Trustee and each Noteholder, by accepting the benefits of this Agreement,
hereby covenant and agree that they will not at any time institute against the Depositor or the Trust, or join in any institution
against the Depositor or the Trust of, any involuntary bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings,
or other proceedings under any United States Federal or state bankruptcy or similar law in connection with any obligations relating
to the Trust Certificates, the Notes, this Agreement or any of the Basic Documents.

 

Section 11.10      No Recourse.
Each Certificateholder by accepting a Trust Certificate acknowledges that such Certificateholder’s Trust Certificates represent
beneficial interests in the Trust only and do not represent interests in or obligations of the Depositor, the Servicer, the Administrator,
the Owner Trustee, the Indenture Trustee or any Affiliate thereof and no recourse may be had against such parties or their assets,
except as may be expressly set forth or contemplated in this Agreement, the Trust Certificates or the Basic Documents to which
such parties are a party.

 

In the event that a Certificateholder
(other than the Depositor) is deemed, under applicable law by any court or other authority of competent jurisdiction, to have an
interest in any assets of the Depositor or any Affiliate of the Depositor other than the beneficial interest in the Trust (“other
assets”), the parties to this Agreement and the Certificateholders acknowledge and agree that: (i) such Certifcateholder’s
Certificate represents an undivided beneficial interest in the assets of the Trust and the Trust Estate only, (ii) any such Certificateholder’s
claim against any other assets shall be, and hereby is, subject and subordinate in all respects to the rights of other Persons
to whom rights in the other assets have been expressly granted (“entitled Persons”), including to the payment in full
of all amounts owing to such entitled Persons, and (iii) the covenant set forth in the preceding clause (ii) constitutes a “subordination
agreement” within the meaning of, and subject to, Section 510(a) of the Bankruptcy Code.

 

    	32

     

    

 

Section 11.11      Headings.
The headings of the various Articles and Sections herein are for convenience of reference only and shall not define or limit any
of the terms or provisions hereof.

 

Section 11.12      GOVERNING LAW.
THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REGARD TO ANY OTHERWISE APPLICABLE
CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE
WITH SUCH LAWS; provided, however, that there shall not be applicable to the parties hereunder or this Agreement
any provision of the laws (common or statutory) of the State of Delaware pertaining to trusts that relate to or regulate, in a
manner inconsistent with the terms hereof, (a) the filing with any court or governmental body or agency of trustee accounts or
schedules of trustee fees and charges, (b) affirmative requirements to post bonds for trustees, officers, agents or employees
of a trust, (c) the necessity for obtaining court or other governmental approval concerning the acquisition, holding or disposition
of real or personal property, (d) fees or other sums payable to trustees, officers, agents or employees of a trust, (e) the allocation
of receipts and expenditures to income or principal, (f) restrictions or limitations on the permissible nature, amount or concentration
of trust investments or requirements relating to the titling, storage or other manner of holding or investing trust assets or
(g) the establishment of fiduciary or other standards of responsibility or limitations on the acts or powers of trustees that
are inconsistent with the limitations or authorities and powers of the Owner Trustee hereunder as set forth or referenced in this
Agreement. Section 3540 of Title 12 of the Delaware Code shall not apply to the Trust.

 

To the fullest extent
permitted by applicable law, each of the parties to this agreement and each Certificateholder by its acceptance thereof, hereby
irrevocably and unconditionally consents to submit to the nonexclusive jurisdiction of the courts of the State of Delaware for
purposes of any action or proceeding arising out of or in connection with this Agreement, the Certificates or the transactions
contemplated hereby or thereby.

 

EACH OF THE PARTIES HERETO,
AND EACH CERTIFICATEHOLDER BY ITS ACCEPTANCE THEREOF, IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE CERTIFICATES OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY.

 

Section 11.13      Compliance with Applicable Anti-Terrorism and Anti Money
Laundering Regulations. The parties hereto and each Certificateholder acknowledge
that in accordance with the Customer Identification Program (CIP) requirements under the USA PATRIOT Act and its implementing
regulations, the Owner Trustee and the Paying Agent, in order to help fight the funding of terrorism and money laundering, are
required to obtain, verify, and record information that identifies each person or legal entity that establishes a relationship
or opens an account with the Owner Trustee or the Paying Agent. Each party hereto and each Certificateholder by its acceptance
of a Trust Certificate agrees that it shall provide the Owner Trustee and the Paying Agent with such information as may be available
for such party as the Owner Trustee and the Paying Agent may request that will help the Owner Trustee and the Paying Agent to
identify and verify each party’s identity, including without limitation each party’s name, physical address, tax identification
number, organizational documents, certificates of good standing, licenses to do business or other pertinent identifying information.

 

    	33

     

    

 

ARTICLE
XII

 

COMPLIANCE
WITH REGULATION AB

 

Section 12.01      Intent of the Parties; Reasonableness.
The Depositor and the Owner Trustee acknowledge and agree that the purpose of this Article XII is to facilitate compliance by
the Depositor with the provisions of Regulation AB and the related rules and regulations of the Commission. The Depositor shall
not exercise its right to request delivery of information or other performance under these provisions other than in good faith,
or for purposes other than the Depositor’s compliance with the Securities Act, the Exchange Act and the rules and regulations
of the Commission thereunder (or the provision in a private offering of disclosure comparable to that required under the Securities
Act). The Owner Trustee agrees to cooperate in good faith with the Depositor and shall deliver (and cause each of its Reporting
Subcontractors, if any, to deliver) to the Depositor any information reasonably requested by the Depositor regarding the Owner
Trustee which is required in order to enable the Depositor to comply with the provisions of Items 1109(a), 1109(b), 1117 and 1119
of Regulation AB or any of its other Exchange Act reporting obligations as it relates to the Owner Trustee or to the Owner Trustee’s
obligations under this Agreement (including with respect to any of its successors or predecessors; provided, however,
that this parenthetical shall apply only to the successors or predecessors of the Owner Trustee contemplated by Section 10.04
hereof). The obligations of the Owner Trustee to provide such information shall survive the removal or resignation of the Owner
Trustee hereunder.

 

Section 12.02      Information to Be Provided by the Owner Trustee.
The Owner Trustee shall (i) on or before the fifth Business Day following a written request of the Depositor, provide to
the Depositor, in writing, such information regarding the Owner Trustee as is requested for the purpose of compliance with Item 1117
of Regulation AB, and (ii) pursuant to Section 7.09 hereof as promptly as practicable following notice to or discovery by
the Owner Trustee of any changes to such information, provide to the Depositor, in writing, updated information necessary for
compliance with Item 1117 of Regulation AB.

 

The Owner Trustee shall
(i) on or before the fifth Business Day following a written request of the Depositor in connection with the preparation of
any required quarterly or annual report, provide to the Depositor such information regarding the Owner Trustee as is requested
for the purpose of compliance with Items 1109(a), 1109(b) and 1119 of Regulation AB, and (ii) as promptly as practicable following
notice to or discovery by the Owner Trustee of any changes to such information, provide to the Depositor, in writing, updated information.
Such information shall include, at a minimum:

 

(a)          the
Owner Trustee’s name and form of organization;

 

    	34

     

    

 

(b)          a
description of the extent to which the Owner Trustee has had prior experience serving as a trustee for asset-backed securities
transactions involving receivables of the same type as the Receivables;

 

(c)          a
description of any affiliation between the Owner Trustee and any of the following parties to a Securitization Transaction, as such
parties are identified to the Owner Trustee by the Depositor in writing in advance of such Securitization Transaction:

 

(i)          the
sponsor;

 

(ii)         any
depositor;

 

(iii)        the
issuing entity;

 

(iv)        any
servicer;

 

(v)         any
trustee;

 

(vi)        any
originator;

 

(vii)       any
significant obligor;

 

(viii)      any
enhancement or support provider, including any swap or cap counterparty;

 

(ix)         any
asset representations reviewer; and

 

(x)          any
other material transaction party.

 

In connection with the above-listed parties,
a description of whether there is, and if so the general character of, any business relationship, agreement, arrangement, transaction
or understanding that is entered into outside the ordinary course of business or is on terms other than would be obtained in an
arm’s length transaction with an unrelated third party, apart from the asset-backed securities transaction, that currently
exists or that existed during the past two years and that is material to an investor’s understanding of the asset-backed
securities.

 

* * * * * *

    	35

     

    

 

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

 

	 	WORLD OMNI AUTO RECEIVABLES LLC,
	 	as Depositor
	 	 	 
	 	By:	/s/ Bryan Romano
	 	 	Name:  Bryan Romano
	 	 	Title:    Assistant Treasurer
	 	 
	 	WELLS FARGO DELAWARE TRUST COMPANY, N.A, not in its individual capacity, but solely as Owner Trustee,
	 	 	 
	 	By:	/s/ Tracy M. McLamb
	 	 	Name:  Tracy M. McLamb
	 	 	Title:    Vice President

 

U.S. BANK NATIONAL ASSOCIATION acknowledges
and accepts, as of the date first above written, its appointment as Paying Agent and Certificate Registrar in accordance with the
terms of this Agreement and agrees to be bound by the terms of this Agreement applicable to the Paying Agent and Certificate Registrar.

 

	By:	/s/ Christopher J. Nuxoll	 
	Name:	Christopher J. Nuxoll	 
	Title:	Vice President	 

 

     

     

    

 

EXHIBIT A

 

FORM OF TRUST CERTIFICATE

 

THIS CERTIFICATE IS SUBORDINATED TO THE
NOTES, AS AND TO THE EXTENT SET FORTH IN THE SALE AND SERVICING AGREEMENT.

 

THIS CERTIFICATE HAS NOT BEEN AND WILL
NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR UNDER THE SECURITIES OR BLUE SKY
LAWS OF ANY STATE IN THE UNITED STATES OR ANY FOREIGN SECURITIES LAWS. BY ITS ACCEPTANCE OF THIS CERTIFICATE THE HOLDER HEREOF
IS DEEMED TO REPRESENT TO THE DEPOSITOR AND THE OWNER TRUSTEE (i) THAT IT IS AN “ACCREDITED INVESTOR” AS DEFINED
IN RULE 501(a)(1), (2), (3) OR (7) OF REGULATION D PROMULGATED UNDER THE 1933 ACT (AN “ACCREDITED INVESTOR”) AND THAT
IT IS ACQUIRING THIS CERTIFICATE FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A FIDUCIARY OR AGENT FOR OTHERS
(WHICH OTHERS ALSO ARE ACCREDITED INVESTORS UNLESS THE HOLDER IS A BANK ACTING IN ITS FIDUCIARY CAPACITY) FOR INVESTMENT AND NOT
WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, THE PUBLIC DISTRIBUTION HEREOF, (ii) THAT IT IS A “QUALIFIED
INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE 1933 ACT (A “QUALIFIED INSTITUTIONAL BUYER”) AND IS ACQUIRING
SUCH CERTIFICATE FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS ALSO
ARE QUALIFIED INSTITUTIONAL BUYERS) OR (iii) THAT IT IS AN INVESTOR THAT IS OTHERWISE PERMITTED TO ACQUIRE THIS CERTIFICATE UNDER
THE TRUST AGREEMENT.

 

NO SALE, PLEDGE OR OTHER TRANSFER OF THIS
CERTIFICATE MAY BE MADE BY ANY PERSON UNLESS EITHER (i) SUCH SALE, PLEDGE OR OTHER TRANSFER IS MADE TO THE DEPOSITOR, (ii) SUCH
SALE, PLEDGE OR OTHER TRANSFER IS MADE TO AN ACCREDITED INVESTOR THAT EXECUTES A CERTIFICATE, SUBSTANTIALLY IN THE FORM SPECIFIED
IN THE TRUST AGREEMENT, TO THE EFFECT THAT IT IS AN ACCREDITED INVESTOR ACTING FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF
OTHERS) OR AS A FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE ACCREDITED INVESTORS UNLESS THE HOLDER IS A BANK ACTING IN
ITS FIDUCIARY CAPACITY), (iii) SO LONG AS THIS CERTIFICATE IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE 1933 ACT,
SUCH SALE, PLEDGE OR OTHER TRANSFER IS MADE TO A PERSON WHO THE PROSPECTIVE TRANSFEROR REASONABLY BELIEVES AFTER DUE INQUIRY IS
A QUALIFIED INSTITUTIONAL BUYER, ACTING FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A FIDUCIARY OR AGENT FOR
OTHERS (WHICH OTHERS ALSO ARE QUALIFIED INSTITUTIONAL BUYERS) TO WHOM NOTICE IS GIVEN THAT THE SALE, PLEDGE OR TRANSFER IS BEING
MADE IN RELIANCE ON RULE 144A, OR (iv) SUCH SALE, PLEDGE OR OTHER TRANSFER IS OTHERWISE MADE IN A TRANSACTION EXEMPT FROM THE REGISTRATION
REQUIREMENTS OF THE 1933 ACT, IN WHICH CASE THE OWNER TRUSTEE SHALL REQUIRE THAT BOTH THE PROSPECTIVE TRANSFEROR AND THE PROSPECTIVE
TRANSFEREE CERTIFY TO THE OWNER TRUSTEE AND THE DEPOSITOR IN WRITING THE FACTS SURROUNDING SUCH TRANSFER, WHICH CERTIFICATION SHALL
BE IN FORM AND SUBSTANCE SATISFACTORY TO THE OWNER TRUSTEE AND THE DEPOSITOR. EXCEPT IN THE CASE OF A TRANSFER DESCRIBED IN CLAUSES
(i) OR (iii) ABOVE, THE OWNER TRUSTEE, THE DEPOSITOR AND THE CERTIFICATE REGISTRAR SHALL REQUIRE A WRITTEN OPINION OF COUNSEL (WHICH
SHALL NOT BE AT THE EXPENSE OF THE DEPOSITOR, ANY AFFILIATE OF THE DEPOSITOR OR THE OWNER TRUSTEE) SATISFACTORY TO THE DEPOSITOR
AND THE OWNER TRUSTEE TO THE EFFECT THAT SUCH TRANSFER WILL NOT VIOLATE THE 1933 ACT.

 

    	Ex. A-1

     

    

 

EACH SECURITYHOLDER, BY ITS ACCEPTANCE
OF THIS SECURITY, COVENANTS AND AGREES THAT SUCH SECURITYHOLDER, SHALL NOT, PRIOR TO THE DATE THAT IS ONE YEAR AND ONE DAY AFTER
THE TERMINATION OF THE TRUST AGREEMENT, ACQUIESCE, PETITION OR OTHERWISE INVOKE OR CAUSE THE TRUST OR THE DEPOSITOR TO INVOKE THE
PROCESS OF ANY COURT OR GOVERNMENTAL AUTHORITY FOR THE PURPOSE OF COMMENCING OR SUSTAINING AN INVOLUNTARY CASE AGAINST THE TRUST
OR THE DEPOSITOR UNDER ANY FEDERAL OR STATE BANKRUPTCY, INSOLVENCY, REORGANIZATION OR SIMILAR LAW, OR APPOINTING A RECEIVER, LIQUIDATOR,
ASSIGNEE, TRUSTEE, CUSTODIAN, SEQUESTRATOR OR OTHER SIMILAR OFFICIAL OF THE TRUST OR THE DEPOSITOR OR ANY SUBSTANTIAL PART OF ITS
PROPERTY, OR ORDERING THE WINDING UP OR LIQUIDATION OF THE AFFAIRS OF THE TRUST OR THE DEPOSITOR.

 

NO TRANSFER OF THIS CERTIFICATE SHALL BE
MADE TO ANY PERSON UNLESS THE CERTIFICATE REGISTRAR HAS RECEIVED (A) A CERTIFICATE IN THE FORM OF PARAGRAPH 3 TO THE INVESTMENT
LETTER ATTACHED TO THE TRUST AGREEMENT AS EXHIBIT D FROM SUCH PERSON TO THE EFFECT THAT SUCH PERSON IS NOT AND IS NOT ACTING
ON BEHALF OF (I) AN “EMPLOYEE BENEFIT PLAN” AS DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY
ACT OF 1974, AS AMENDED (“ERISA”) THAT IS SUBJECT TO TITLE I OF, (II) A “PLAN” DESCRIBED IN
SECTION 4975(E)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) THAT IS SUBJECT TO SECTION 4975
OF THE CODE, (III) ANY ENTITY WHOSE UNDERLYING ASSETS INCLUDE PLAN ASSETS BY REASON OF A PLAN’S INVESTMENT IN THE ENTITY
OR (IV) ANY PLAN THAT IS SUBJECT TO ANY FEDERAL, STATE OR LOCAL LAW THAT IS SUBSTANTIALLY SIMILAR TO THE FOREGOING PROVISIONS OF
ERISA OR SECTION 4975 OF THE CODE (“SIMILAR LAW”) (EACH, A “PLAN”) OR (B) AN OPINION OF COUNSEL
SATISFACTORY TO THE OWNER TRUSTEE, THE CERTIFICATE REGISTRAR AND THE DEPOSITOR TO THE EFFECT THAT THE PURCHASE AND HOLDING OF THIS
CERTIFICATE BY SUCH PERSON (I) WILL NOT RESULT IN THE ASSETS OF THE ISSUING ENTITY BEING DEEMED TO BE “PLAN ASSETS”
SUBJECT TO THE PROHIBITED TRANSACTIONS PROVISIONS OF ERISA, SECTION 4975 OF THE CODE OR SIMILAR LAW AND WILL NOT SUBJECT THE OWNER
TRUSTEE, THE INDENTURE TRUSTEE, THE CERTIFICATE REGISTRAR, THE SERVICER OR THE DEPOSITOR TO ANY OBLIGATION IN ADDITION TO THOSE
UNDERTAKEN IN THE BASIC DOCUMENTS AND (II) WILL NOT CONSTITUTE OR RESULT IN A PROHIBITED TRANSACTION UNDER ERISA, SECTION 4975
OF THE CODE OR SIMILAR LAW. IN ADDITION, NO TRANSFER OF THIS CERTIFICATE SHALL BE MADE TO ANY PERSON THAT IS A PLAN SUBJECT TO
TITLE I OF ERISA OR SECTION 4975 OF THE CODE UNLESS THE CERTIFICATE REGISTRAR HAS RECEIVED A CERTIFICATE IN THE FORM OF PARAGRAPH
4 TO THE INVESTMENT LETTER ATTACHED TO THE TRUST AGREEMENT AS EXHIBIT D THAT THE PERSON SATISFIES CERTAIN OTHER REQUIREMENTS.
THE PREPARATION AND DELIVERY OF THE CERTIFICATE AND OPINIONS REFERRED TO ABOVE WITH RESPECT TO A PROPOSED TRANSFER SHALL NOT BE
AN EXPENSE OF THE ISSUING ENTITY, THE OWNER TRUSTEE, THE CERTIFICATE REGISTRAR, THE INDENTURE TRUSTEE, WORLD OMNI (IN ANY CAPACITY)
OR THE DEPOSITOR. ANY ATTEMPTED OR PURPORTED TRANSFER IN VIOLATION OF THESE TRANSFER RESTRICTIONS WILL BE NULL AND VOID AND WILL
VEST NO RIGHTS IN ANY PURPORTED TRANSFEREE.

 

    	Ex. A-2

     

    

 

THIS CERTIFICATE WILL NOT BE REGISTERED
FOR TRANSFER UNLESS THE CERTIFICATE REGISTRAR RECEIVES (A) A CERTIFICATION FROM THE TRANSFEREE OF SUCH CERTIFICATE TO THE EFFECT
THAT SUCH TRANSFEREE IS A UNITED STATES PERSON WITHIN THE MEANING OF SECTION 7701(a)(30) OF THE CODE AND (B) THE OWNER TRUSTEE,
THE CERTIFICATE REGISTRAR, THE DEPOSITOR AND THE INDENTURE TRUSTEE SHALL HAVE RECEIVED AN OPINION OF COUNSEL (WHICH COUNSEL IS
INDEPENDENT FROM THE DEPOSITOR AND THE TRUST) THAT SUCH ACTION SHALL NOT CAUSE THE TRUST TO BE TREATED AS AN ASSOCIATION (OR PUBLICLY
TRADED PARTNERSHIP) TAXABLE AS A CORPORATION FOR FEDERAL INCOME TAX PURPOSES AND SUCH TRANSFEREE OR ASSIGNEE SHALL AGREE TO TAKE
POSITIONS FOR TAX PURPOSES CONSISTENT WITH THE TAX POSITIONS SET FORTH IN SECTION 2.06 OF THE TRUST AGREEMENT AS AGREED
TO BE TAKEN BY THE CERTIFICATEHOLDER.

 

    	Ex. A-3

     

    

 

NO.:

 

WORLD OMNI AUTO RECEIVABLES TRUST 2018-A

TRUST CERTIFICATE

 

evidencing a fractional undivided beneficial
interest in the Trust, as defined below, the property which consists of retail installment sale contracts for new and used automobiles
and light-duty trucks (transferred to the Trust on the Closing Date (the “Receivables”), all monies received
on or after the Cutoff Date; any proceeds with respect to the Receivables from claims on any physical damage, credit life or disability,
theft, mechanical breakdown or “guaranteed auto protection” insurance policies relating to Financed Vehicles or Obligors;
any Financed Vehicle that shall have secured a Receivable and shall have been acquired by or on behalf of the Depositor, the Servicer,
or the Trust; the Receivables Purchase Agreement; the Sale and Servicing Agreement, including the right of the Depositor to cause
World Omni to purchase Receivables under certain circumstances; the Trust Accounts; and certain other rights under the Trust Agreement
and Sale and Servicing Agreement and all proceeds of the foregoing (but excluding the Notes and Trust Certificates).

 

THIS TRUST CERTIFICATE DOES NOT REPRESENT
AN INTEREST IN OR OBLIGATION OF WORLD OMNI AUTO RECEIVABLES LLC, WORLD OMNI FINANCIAL CORP. OR ANY OF THEIR RESPECTIVE AFFILIATES.

 

THIS CERTIFIES THAT ________________
is the registered owner of ___% nonassessable, fully-paid, fractional undivided beneficial interest in World Omni Auto Receivables
Trust 2018-A (the “Trust”), formed by World Omni Auto Receivables LLC, a Delaware limited liability company
(the “Depositor”).

 

OWNER TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the Trust Certificates referred
to in the within-mentioned Trust Agreement.

 

	WELLS FARGO DELAWARE TRUST COMPANY, N.A.,

not in its individual capacity but solely as Owner Trustee	 	WELLS FARGO DELAWARE TRUST COMPANY, N.A., not in its individual capacity but solely as Owner Trustee
	 	OR	 
	 	 	By: U.S. BANK NATIONAL ASSOCIATION, as Authenticating Agent
	 	 	 	 	 
	By:	 	 	By:	 
	 	Name:	 	 	Name:
	 	Title:	 	 	Title:

 

    	Ex. A-4

     

    

 

The Trust was created
pursuant to a Trust Agreement dated November 28, 2017 (as amended and restated on February 7, 2018, and as may be amended, restated
or supplemented from time to time, the “Trust Agreement”), between the Depositor and Wells Fargo Delaware Trust
Company, N.A., as owner trustee (the “Owner Trustee”), a summary of certain of the pertinent provisions of which
is set forth below. To the extent not otherwise defined herein, the capitalized terms used herein have the meanings assigned to
them in the Trust Agreement or the Sale and Servicing Agreement, dated as of February 7, 2018 (as amended and supplemented from
time to time, the “Sale and Servicing Agreement”), among the Trust, the Depositor and World Omni Financial Corp.,
as servicer (the “Servicer”), as applicable.

 

This Certificate is one
of the duly authorized Certificates designated as “Trust Certificates” (herein called the “Trust Certificates”).
Also issued under an Indenture, dated as of February 7, 2018 (the “Indenture”), between the Trust and U.S. Bank
National Association, as indenture trustee, are the Notes designated as “Asset-Backed Notes” (the “Notes”).
This Trust Certificate is issued under and is subject to the terms, provisions and conditions of the Trust Agreement, to which
Trust Agreement the Certificateholder of this Trust Certificate by virtue of its acceptance hereof assents and by which such Certificateholder
is bound. The property of the Trust consists of retail installment sale contracts for new and used automobiles and light-duty trucks
transferred to the Trust on the Closing Date (the “Receivables”), all monies received after the Cutoff Date;
any proceeds with respect to the Receivables from claims on any physical damage, credit life or disability, theft, mechanical breakdown
or “guaranteed auto protection” insurance policies relating to Financed Vehicles or Obligors; any Financed Vehicle
that shall have secured a Receivable and shall have been acquired by or on behalf of the Depositor, the Servicer, or the Trust;
the Receivables Purchase Agreement; the Sale and Servicing Agreement, including the right of the Depositor to cause World Omni
to purchase Receivables under certain circumstances; the Trust Accounts; and certain other rights under the Trust Agreement and
Sale and Servicing Agreement and all proceeds of the foregoing (but excluding the Notes and Trust Certificates). The rights of
the Certificateholders are subordinated to the rights of the Noteholders, as and to the extent set forth in the Sale and Servicing
Agreement and the Indenture.

 

Under the Trust Agreement,
there will be distributed on the 15th of each month of each year or, if such day is not a Business Day, the immediately
following Business Day (each, a “Payment Date”), commencing on March 15, 2018, to the Person in whose name this
Trust Certificate is registered at the close of business on the Business Day immediately preceding such Payment Date (the “Record
Date”), such Certificateholder’s fractional undivided interest in the amount to be distributed to Certificateholders
on such Payment Date. No distributions will be made on any Certificate on any Payment Date until the full amount of interest and
principal payable on the Notes on such Payment Date has been paid in full and the Reserve Account has been replenished to its required
amount, if necessary.

 

The Certificateholder
of this Trust Certificate acknowledges and agrees that its rights to receive distributions in respect of this Trust Certificate
are subordinated to the rights of the Noteholders as described in the Sale and Servicing Agreement and the Indenture.

 

It is the intention of
the Depositor, the Servicer and the Certificateholders that, solely for Federal, state and local income and franchise tax purposes,
(a) so long as the Trust has only one Certificateholder, the Trust will be disregarded as a separate entity and (b) at such time
as the Trust has more than one Certificateholder, the Trust will be treated as a partnership. Neither the Servicer nor the Depositor
or any Certificateholder will take any action to the contrary.

 

    	Ex. A-5

     

    

 

Each Certificateholder,
by its acceptance of a Trust Certificate, covenants and agrees that such Certificateholder will not at any time institute against
the Depositor, or join in any institution against the Depositor of, any involuntary bankruptcy, reorganization, arrangement, insolvency
or liquidation proceedings, or other proceedings under any United States federal or state bankruptcy or similar law in connection
with any obligations relating to the Trust Certificates, the Notes, the Trust Agreement or any of the Basic Documents.

 

Distributions on this
Trust Certificate will be made as provided in the Trust Agreement by the Paying Agent by wire transfer or check mailed to the Certificateholder
without the presentation or surrender of this Trust Certificate or the making of any notation hereon. Except as otherwise provided
in the Trust Agreement and notwithstanding the above, the final distribution on this Trust Certificate will be made after due notice
by the Owner Trustee or Paying Agent of the pendency of such distribution and only upon presentation and surrender of this Trust
Certificate at the office or agency maintained for that purpose by the Owner Trustee.

 

Reference is hereby made
to the further provisions of this Trust Certificate set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

 

Unless the certificate
of authentication hereon shall have been executed by an Authorized Officer of the Owner Trustee, by manual signature, this Trust
Certificate shall not entitle the Certificateholder hereof to any benefit under the Trust Agreement or the Sale and Servicing Agreement
or be valid for any purpose.

 

THIS TRUST CERTIFICATE
SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REGARD TO ANY OTHERWISE APPLICABLE CONFLICT OF
LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

    	Ex. A-6

     

    

 

IN WITNESS WHEREOF, the
Owner Trustee, on behalf of the Trust and not in its individual capacity, has caused this Trust Certificate to be duly executed.

 

	 	WORLD OMNI AUTO RECEIVABLES TRUST 2018-A
	 	 	 
	 	By:	WELLS FARGO DELAWARE TRUST COMPANY, N.A., not in its individual capacity but solely as Owner Trustee
	 	 	 
	Dated:  	 	 	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	Ex. A-7

     

    

 

[REVERSE OF TRUST CERTIFICATE]

 

The Trust Certificates
do not represent an obligation of, or an interest in, the Depositor, the Servicer, the Owner Trustee, or any affiliates of any
of them and no recourse may be had against such parties or their assets, except as expressly set forth or contemplated herein or
in the Trust Agreement or the Basic Documents. In addition, this Trust Certificate is not guaranteed by any governmental agency
or instrumentality and is limited in right of payment to certain collections and recoveries with respect to the Receivables (and
certain other amounts), all as more specifically set forth herein and in the Sale and Servicing Agreement. A copy of each of the
Sale and Servicing Agreement and the Trust Agreement may be examined by any Certificateholder upon written request during normal
business hours at the principal office of the Depositor and at such other places, if any, designated by the Depositor.

 

The Trust Agreement permits,
with certain exceptions therein provided, the amendment thereof and the modification of the rights and obligations of the Depositor
and the rights of the Certificateholders under the Trust Agreement at any time by the Depositor and the Owner Trustee with the
consent of the Certificateholders of at least a majority Percentage Interest in the Trust Certificates and holders of at least
a majority of the Outstanding Amount of the Controlling Securities. Any such consent by the Certificateholder of this Trust Certificate
shall be conclusive and binding on such Certificateholder and on all future Certificateholders of this Trust Certificate and of
any Trust Certificate issued upon the transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such
consent is made upon this Trust Certificate. The Trust Agreement also permits the amendment thereof, in certain limited circumstances,
without the consent of the Certificateholders of any of the Trust Certificates.

 

As provided in the Trust
Agreement and subject to certain limitations therein set forth, the transfer of this Trust Certificate is registerable in the Certificate
Register upon surrender of this Trust Certificate for registration of transfer at the offices or agencies of the Certificate Registrar
maintained by the Indenture Trustee, accompanied by a written instrument of transfer in form satisfactory to the Owner Trustee
and the Certificate Registrar duly executed by the Certificateholder hereof or such Certificateholder’s attorney duly authorized
in writing, and thereupon one or more new Trust Certificates of authorized denominations evidencing the same aggregate interest
in the Trust will be issued to the designated transferee. The initial Certificate Registrar appointed under the Trust Agreement
is U.S. Bank National Association.

 

Except as provided in
the Trust Agreement, the Trust Certificates shall be issued in a 100% Percentage Interest. As provided in the Trust Agreement and
subject to certain limitations therein set forth, Trust Certificates are exchangeable for new Trust Certificates of authorized
denominations evidencing the same aggregate denomination, as requested by the Certificateholder surrendering the same. No service
charge will be made for any such registration of transfer or exchange, but the Owner Trustee or the Certificate Registrar may require
payment of a sum sufficient to cover any tax or governmental charge payable in connection therewith.

 

    	Ex. A-8

     

    

 

The Owner Trustee, the
Certificate Registrar and any agent of the Owner Trustee or the Certificate Registrar may treat the Person in whose name this Certificate
is registered as the owner hereof for all purposes, and none of the Owner Trustee, the Certificate Registrar or any such agent
shall be affected by any notice to the contrary.

 

The obligations and responsibilities
created by the Trust Agreement and the Trust created thereby shall terminate upon the payment to Certificateholders of all amounts
required to be paid to them pursuant to the Trust Agreement and the Sale and Servicing Agreement and the disposition of all property
held as part of the Owner Trust Estate. The Servicer may at its option purchase the Owner Trust Estate at a price specified in
the Sale and Servicing Agreement, and such purchase of the Receivables and other property of the Trust will effect early retirement
of the Notes and the Trust Certificates; however, such right of purchase is exercisable only as of the last day of any Collection
Period as of which the Pool Balance is 10% or less of the Aggregate Starting Principal Balance of all Receivables transferred to
the Trust.

 

    	Ex. A-9

     

    

 

ASSIGNMENT

 

FOR VALUE RECEIVED the
undersigned hereby sells, assigns and transfers unto

 

PLEASE INSERT SOCIAL SECURITY OR

 

OTHER IDENTIFYING NUMBER OF ASSIGNEE

 

 

 

(Please print or type name and address,
including postal zip code, of assignee)

 

the within Trust Certificate, and all rights
thereunder, and hereby irrevocably constitutes and appoints ________________________, attorney, to transfer said Trust Certificate
on the books of the Certificate Registrar, with full power of substitution in the premises.

Dated:

	 	*/
	 	 
	 	Signature Guaranteed:
	 	 
	 	*/	 

 

 

*/ NOTICE: The signature to this
assignment must correspond with the name as it appears upon the face of the within Trust Certificate in every particular, without
alteration, enlargement or any change whatever. Such signature must be guaranteed by a member firm of the New York Stock Exchange
or a commercial bank or trust company.

 

    	Ex. A-10

     

    

 

EXHIBIT B

 

CERTIFICATE OF TRUST OF

WORLD OMNI AUTO RECEIVABLES TRUST 2018-A

 

THIS Certificate of
Trust of WORLD OMNI AUTO RECEIVABLES TRUST 2018-A (the “Trust”), is being duly executed and filed by the undersigned,
not in its individual capacity but solely as trustee, to form a statutory trust under the Delaware Statutory Trust Act (12 Del.
C. § 3801 et seq.) (the “Act”).

 

1.          Name.
The name of the statutory trust formed hereby is World Omni Auto Receivables Trust 2018-A.

 

2.          Delaware
Trustee. The name and business address of the trustee of the Trust in the State of Delaware are Wells Fargo Delaware Trust
Company, N.A., 919 N. Market Street, Suite 1600, Wilmington, Delaware 19801.

 

3.          Effective
Date. This Certificate of Trust shall be effective upon filing.

 

* * * * *

 

    	Ex. B-1

     

    

 

IN WITNESS WHEREOF, the
undersigned, being the sole trustee of the Trust, has executed this Certificate of Trust in accordance with Section 3811(a) of
the Act.

 

	 	WELLS FARGO DELAWARE TRUST COMPANY, N.A., not in its individual capacity but solely as Owner Trustee
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	Ex. B-2

     

    

 

EXHIBIT C

 

FORM OF TRANSFEROR CERTIFICATE

 

[DATE]

 

World Omni Auto Receivables LLC

190 Jim Moran Boulevard

Deerfield Beach, FL 33442

 

Wells Fargo Delaware Trust Company, N.A.

as Owner Trustee of World Omni Auto Receivables Trust 2018-A

919 N. Market St.

Suite 1600, 7th Floor

Wilmington, Delaware 19801

Attn: Corporate Trust Services

 

U.S. Bank National Association

190 South LaSalle Street, 7th floor

Chicago, Illinois 60603

Attention: Corporate Trust Services, WOART 2018-A

 

		Re:	World Omni Auto Receivables Trust 2018-A

Trust Certificates

 

Ladies and Gentlemen:

 

In connection with our
disposition of the above-referenced Trust Certificates (the “Certificates”) we certify that (a) we understand
that the Certificates have not been registered under the Securities Act of 1933, as amended (the “Act”), and
are being transferred by us in a transaction that is exempt from the registration requirements of the Act and (b) we have not offered
or sold any Certificates to, or solicited offers to buy any Certificates from, any person, or otherwise approached or negotiated
with any person with respect thereto, in a manner that would be deemed, or taken any other action which would result in, a violation
of Section 5 of the Act.

 

	 	Very truly yours,
	 	 
	 	[NAME OF TRANSFEROR]
	 	 	 
	 	By:	 
	 	 	Authorized Officer

 

    	Ex. C

     

    

 

EXHIBIT D

 

FORM OF INVESTMENT LETTER

 

World Omni Auto Receivables LLC

190 Jim Moran Boulevard

Deerfield Beach, FL 33442

 

Wells Fargo Delaware Trust Company, N.A.

as Owner Trustee of World Omni Auto Receivables Trust 2018-A

919 N. Market St.

Suite 1600, 7th Floor

Wilmington, Delaware 19801

Attn: Corporate Trust Services

U.S. Bank National Association

190 South LaSalle Street, 7th floor

Chicago, Illinois 60603

Attention: Corporate Trust Services, WOART 2018-A

 

Ladies and Gentlemen:

 

In connection with our
proposed purchase of Trust Certificates (the “Certificates”) of World Omni Auto Receivables Trust 2018-A (the
“Issuing Entity”), we confirm that:

 

1.            We
understand that the Certificates have not been registered under the Securities Act of 1933, as amended (the “1933 Act”),
and may not be sold except as permitted in the following sentence. We understand and agree, on our own behalf and on behalf of
any accounts for which we are acting as hereinafter stated, (x) that such Certificates are being offered only in a transaction
not involving any public offering within the meaning of the 1933 Act and (y) that such Certificates may be resold, pledged or transferred
only (i) to the Depositor, (ii) to an “accredited investor” as defined in Rule 501(a)(1),(2),(3) or (7) of
Regulation D under the 1933 Act (an “Accredited Investor”) acting for its own account (and not for the account
of others) or as a fiduciary or agent for others (which others also are Accredited Investors unless the holder is a bank acting
in its fiduciary capacity) that executes a certificate substantially in the form hereof, (iii) so long as such Certificate
is eligible for resale pursuant to Rule 144A under the 1933 Act (“Rule 144A”), to a person whom we reasonably believe
after due inquiry is a “qualified institutional buyer” as defined in Rule 144A, acting for its own account (and not
for the account of others) or as a fiduciary or agent for others (which others also are “qualified institutional buyers”)
to whom notice is given that the resale, pledge or transfer is being made in reliance on Rule 144A or (iv) in a sale, pledge
or other transfer made in a transaction otherwise exempt from the registration requirements of the 1933 Act, in which case the
Owner Trustee shall require that both the prospective transferor and the prospective transferee certify to the Owner Trustee and
the Depositor in writing the facts surrounding such transfer, which certification shall be in form and substance satisfactory to
the Owner Trustee and the Depositor. Except in the case of a transfer described in clauses (i) or (iii) above, the Owner Trustee
shall require that a written opinion of counsel (which will not be at the expense of the Depositor, any affiliate of the Depositor
or the Owner Trustee) satisfactory to the Depositor and the Owner Trustee be delivered to the Depositor and the Owner Trustee to
the effect that such transfer will not violate the 1933 Act, and will be effected in accordance with any applicable securities
laws of each state of the United States. We will notify any purchaser of the Certificates from us of the above resale restrictions,
if then applicable. We further understand that in connection with any transfer of the Certificates by us that the Depositor and
the Owner Trustee may request, and if so requested we will furnish, such certificates and other information as they may reasonably
require to confirm that any such transfer complies with the foregoing restrictions.

 

    	Ex. D-1

     

    

 

2.            [CHECK
ONE]

 

		 ̈	(a)We are an Accredited Investor acting for our own account (and not for the account of others)
or as a fiduciary or agent for others (which others also are Accredited Investors unless we are a bank acting in its fiduciary
capacity). We have such knowledge and experience in financial and business matters as to be capable of evaluating the merits and
risks of our investment in the Certificates, and we and any accounts for which we are acting are each able to bear the economic
risk of our or their investment for an indefinite period of time. We are acquiring the Certificates for investment and not with
a view to, or for offer and sale in connection with, a public distribution.

 

		 ̈	(b)We are a “qualified institutional buyer” as defined under Rule 144A under the 1933
Act and are acquiring the Certificates for our own account (and not for the account of others) or as a fiduciary or agent for others
(which others also are “qualified institutional buyers”). We are familiar with Rule 144A under the 1933 Act and are
aware that the seller of the Certificates and other parties intend to rely on the statements made herein and the exemption from
the registration requirements of the 1933 Act provided by Rule 144A.

 

3.            We
are not and are not acting on behalf of (i) an “employee benefit plan” as defined in Section 3(3) of the Employee
Retirement Income Security Act of 1974, as amended (“ERISA”) that is subject to Title I of ERISA, (ii) a
“plan” described in Section 4975(e)(1) of the Internal Revenue Code of 1986, as amended (the “Code”)
that is subject to Section 4975 of the Code, (iii) any entity whose underlying assets include plan assets by reason of a plan’s
investment in the entity (each of clause (i) through (iii), a “Plan”) or (iv) any plan that is subject to any
federal, state or local law that is, to a material extent, similar to the foregoing provisions of ERISA or the Code (“Similar
Law”). We hereby acknowledge that no transfer of any Certificate shall be permitted to be made to any person unless the
Trustee has received (i) a certificate from such transferee to the effect of the preceding sentence or (ii) an opinion of counsel
satisfactory to the Owner Trustee, the Certificate Registrar and the Depositor to the effect that the purchase and holding of any
such Certificate by such person (A) will not result in the assets of the Issuing Entity being deemed to be “plan assets”
and subject to the prohibited transaction provisions of ERISA, Section 4975 of the Code or Similar Law and will not subject the
Certificate Registrar, the Owner Trustee, the Indenture Trustee, the Servicer or the Depositor to any obligation in addition to
those undertaken in the Basic Documents with respect to the Certificates and (B) will not constitute or result in a prohibited
transaction under ERISA, Section 4975 of the Code or Similar Law.

 

    	Ex. D-2

     

    

 

4.             If
we are a Plan, (a) our decision to purchase and hold of any the Certificates has been made on arms’ length basis by a duly
authorized fiduciary (each, a “Plan Fiduciary”) who is independent of the Issuing Entity, the sponsor, the Certificate
Registrar, the Owner Trustee, the Servicer or the Depositor and their affiliates and employees, which Plan Fiduciary (A) is a fiduciary
under ERISA or the Code, or both, with respect to our decision to acquire and hold such Certificates, (B) is not an IRA owner or
spouse of the IRA owner (in the case of an IRA) or a participant in a Plan acting in such capacity, (C) is capable of evaluating
investment risks independently, both in general and with regard to our prospective investment in such Certificates, (D) has exercised
independent judgment in evaluating whether to invest the assets of the Plan in such Certificates, and (E) is either (i) a bank
as defined in Section 202 of the Investment Advisers Act of 1940, as amended (the “Advisers Act”), or similar
institution that is regulated and supervised and subject to periodic examination by a U.S. state or U.S. federal agency, (ii) an
insurance carrier which is qualified under the laws of more than one U.S. state to perform the services of managing, acquiring
or disposing of assets of a plan, (iii) an investment adviser registered under the Advisers Act, or, if not registered an as investment
adviser under the Advisers Act by reason of paragraph (1) of Section 203A of the Advisers Act, is registered as an investment adviser
under the laws of the U.S. state in which it maintains its principal office and place of business, (iv) a broker-dealer registered
under the U.S. Securities Exchange Act of 1934, as amended, or (v) holds, or has under its management or control, total assets
of at least U.S. $50 million; provided, however, that we shall not be deemed to make the representation in this section to the
extent that the regulations under Section 3(21) of ERISA issued by the U.S. Department of Labor on April 8, 2016 are rescinded
or otherwise are not implemented in their current form. We hereby acknowledge that no transfer of any Certificate shall be permitted
to be made to any person that is a Plan unless the Trustee has received a certificate from such transferee to the effect of the
preceding sentence.

 

5.            We
are a United States Person (within the meaning of Section 7701(a)(30) of the Internal Revenue Code), and acknowledge that unless
the Owner Trustee and the Indenture Trustee shall have received an opinion of counsel (which counsel is independent from the Depositor
and the Trust) that such action shall not cause the Trust to be treated as an association (or publicly traded partnership) taxable
as a corporation for federal income tax purposes, no purchase of any Certificate shall be permitted to be made to any Person who
is not a United States Person and any such purported purchase or transfer in violation of these restrictions shall be null and
void.

 

6.            We
understand that the Depositor, the Trust and others will rely upon the truth and accuracy of the foregoing acknowledgments, representations
and agreements, and we agree that if any of the acknowledgments, representations and warranties deemed to have been made by us
by our purchase of the Certificates, for our own account or for one or more accounts as to each of which we exercise sole investment
discretion, are no longer accurate, we shall promptly notify the Depositor.

 

    	Ex. D-3

     

    

 

7.            You
are entitled to rely upon this letter and you are irrevocably authorized to produce this letter or a copy hereof to any interested
party in any administrative or legal proceeding or official inquiry with respect to the matters covered hereby.

 

	 	Very truly yours,
	 	 
	 	[NAME OF PURCHASER]
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	 	Date:	 

 

    	Ex. D-4

     

    

 

EXHIBIT E

 

FORM OF RECEIVABLES

 

Documents on file at:

 

Kirkland & Ellis LLP

300 North LaSalle Street

Chicago, IL 60654

 

    	Ex. EEx. 10.1 - PLS_CS LSA

		
			Exhibit 10.1
		

		
			EXECUTION COPY
		

		
			 
		

		
			LOAN AND SECURITY AGREEMENT
		

		
			among
		

		
			PENNYMAC LOAN SERVICES, LLC,
		

		
			 as Borrower,
		

		
			PRIVATE NATIONAL MORTGAGE ACCEPTANCE COMPANY, LLC,
		

		
			 as Guarantor,
		

		
			and
		

		
			CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH,
		

		
			 as Lender
		

		
			Dated as of February 1, 2018
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

 

		

		
			TABLE OF CONTENTS
		

		
			 
		

			
					
						 

					
					
						Page

				
	
					
						 

					
					
						 

				
	
					
						ARTICLE I      DEFINITIONS AND ACCOUNTING MATTERS

					
1
				
	
					
						Section 1.01      Definitions; Construction

					
1
				
	
					
						Section 1.02      Accounting Matters

					
2
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE II     LOANS, BORROWING, PREPAYMENT

					
2
				
	
					
						Section 2.01      Loans

					
2
				
	
					
						Section 2.02      Note

					
2
				
	
					
						Section 2.03      Borrower Electronic Files and Funding Requests

					
2
				
	
					
						Section 2.04      Borrowing Base Reports

					
3
				
	
					
						Section 2.05      Interest

					
3
				
	
					
						Section 2.06      Increased Capital Costs

					
4
				
	
					
						Section 2.07      Alternate Rate of Interest

					
4
				
	
					
						Section 2.08      Mandatory Repayment of Loans

					
4
				
	
					
						Section 2.09      Optional Prepayment

					
5
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE III    PAYMENTS; COMPUTATIONS; TAXES; FEES

					
5
				
	
					
						Section 3.01      Payments and Computations, Etc. 

					
5
				
	
					
						Section 3.02      Taxes

					
6
				
	
					
						Section 3.03      Fees and Expenses

					
7
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE IV   SECURITY INTEREST

					
7
				
	
					
						Section 4.01      Security Interest

					
7
				
	
					
						Section 4.02      Provisions Regarding Pledge of Servicing Rights to Be Included In Financing Statements

					
8
				
	
					
						Section 4.03      Authorization of Financing Statements

					
9
				
	
					
						Section 4.04      Lender’s Appointment as Attorney In Fact

					
9
				
	
					
						Section 4.05      Release of Security Interest

					
10
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE V     CONDITIONS PRECEDENT

					
11
				
	
					
						Section 5.01      Conditions Precedent

					
11
				
	
					
						Section 5.02      Further Conditions Precedent

					
11
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE VI    REPRESENTATIONS AND WARRANTIES

					
11
				
	
					
						Section 6.01      Representations and Warranties of Each Borrower Party

					
11
				
	
					
						Section 6.02      Representations Concerning the Collateral

					
15
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE VII   COVENANTS

					
17
				
	
					
						Section 7.01      Covenants of Borrower

					
17
				
	
					
						Section 7.02      Notice of Certain Occurrences

					
23
				

		
			 
		

		
			
		

		

		 

		

			-i-

		

 

	
					
						

					
						ARTICLE VIII   EVENTS OF DEFAULT

					
25
				
	
					
						Section 8.01      Events of Default

					
25
				
	
					
						Section 8.02      Remedies

					
27
				
	
					
						Section 8.03      Application of Proceeds

					
29
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE IX     ASSIGNMENT

					
29
				
	
					
						Section 9.01      Restrictions on Assignments

					
29
				
	
					
						Section 9.02      Evidence of Assignment; Endorsement on Note

					
30
				
	
					
						Section 9.03      Rights of Assignee

					
30
				
	
					
						Section 9.04      Permitted Participants; Effect

					
30
				
	
					
						Section 9.05      Voting Rights of Participants

					
31
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE X      INDEMNIFICATION

					
31
				
	
					
						Section 10.01    Indemnities by the Borrower

					
31
				
	
					
						Section 10.02    General Provisions

					
32
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE XI     MISCELLANEOUS

					
32
				
	
					
						Section 11.01    Amendments, Etc. 

					
32
				
	
					
						Section 11.02    Notices, Etc. 

					
32
				
	
					
						Section 11.03    No Waiver; Remedies

					
32
				
	
					
						Section 11.04    Binding Effect; Assignability

					
33
				
	
					
						Section 11.05    GOVERNING LAW; SUBMISSION TO JURISDICTION

					
33
				
	
					
						Section 11.06    Entire Agreement

					
33
				
	
					
						Section 11.07    Acknowledgement

					
33
				
	
					
						Section 11.08    Captions and Cross References

					
34
				
	
					
						Section 11.09    Execution in Counterparts

					
34
				
	
					
						Section 11.10    Confidentiality

					
34
				
	
					
						Section 11.11    Survival

					
34
				
	
					
						Section 11.12    Set-Off

					
35
				
	
					
						Section 11.13    Guaranty

					
35
				

		
			 
		

		
			 
		

			
					
						Schedules

					
					
						 

				
	
					
						Schedule I

					
					
						Definitions

				
	
					
						Schedule 5.01

					
					
						Conditions Precedent to the Effectiveness of this Agreement

				
	
					
						Schedule 5.02

					
					
						Conditions Precedent to each Loan

				
	
					
						Schedule 6.01(s)

					
					
						Borrower’s Existing Financing Facilities

				
	
					
						Schedule 6.02

					
					
						Eligibility Criteria with respect to the Mortgage Loans

				
	
					
						Schedule 7.01(bb)

					
					
						Credit Suisse AG, Cayman Islands Branch Required Investor Reports

				
	
					
						Schedule 11.02

					
					
						Notices

				

		
			 
		

			
					
						Exhibits

					
					
						 

				
	
					
						Exhibit 2.02(a)

					
					
						Form of Note

				
	
					
						Exhibit 2.03

					
					
						Form of Borrower Funding Request

				
	
					
						Exhibit 2.08(a)

					
					
						Form of Repayment Notice

				
	
					
						Exhibit 2.08(b)

					
					
						Form of Prepayment Notice

				

		
			 
		

		
			 
		

		
			

		 

		

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			This LOAN AND SECURITY AGREEMENT (as amended or supplemented from time to time, this “Agreement”) dated as of February 1, 2018, is among PENNYMAC LOAN SERVICES, LLC (the “Borrower” or the “Servicer”), PRIVATE NATIONAL MORTGAGE ACCEPTANCE COMPANY, LLC (the “Guarantor”) and CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH (the “Lender”).
		

		
			BACKGROUND
		

		
			The Borrower wishes to obtain financing from time to time to provide funding for the origination or acquisition of certain Eligible Servicing Rights (as defined herein), which Eligible Servicing Rights shall secure Loans (as defined herein) to be made by the Lender hereunder.
		

		
			The Lender has agreed, subject to the terms and conditions of this Agreement, to provide such financing to the Borrower.
		

		
			Accordingly, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:
		

		
			ARTICLE I
		

		
			DEFINITIONS AND ACCOUNTING MATTERS
		

		
			Section 1.01    Definitions; Construction.
		

		
			(a)        Capitalized terms used herein and not otherwise defined herein shall have the meanings specified in Schedule I.
		

		
			(b)        All terms used in Article 9 of the UCC, and not specifically defined herein, are used herein as defined in such Article 9.
		

		
			(c)        Unless otherwise stated in this Agreement, in the computation of a period of time from a specified date to a later specified date, the word “from” means “from and including” and the words “to” and “until” each means “to but excluding”.
		

		
			(d)        The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined.
		

		
			(e)        Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.
		

		
			(f)        The words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”. The word “will” shall be construed to have the same meaning and effect as the word “shall”.
		

		
			(g)        Unless the context requires otherwise (i) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or
		

		
			 
		

		
			 
		

		
			

		 

 

		

		
			otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (ii) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (iii) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (iv) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement, and (v) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.
		

		
			Section 1.02    Accounting Matters.  Except as otherwise expressly provided herein, all accounting terms used herein shall be interpreted, and all financial statements and certificates and reports as to financial matters required to be delivered to the Lender hereunder shall be prepared in accordance with GAAP.
		

		
			ARTICLE II
		

		
			LOANS, BORROWING, PREPAYMENT
		

		
			Section 2.01    Loans. On the terms and subject to the conditions set forth in this Agreement, the Lender shall make loans in an aggregate amount not to exceed the Available Facility Amount (each such loan, a “Loan”) to the Borrower from time to time. The Lender shall distribute the proceeds of such Loan to the Borrower no later than 1:00 p.m. (New York City time) on the related Funding Date in accordance with Section 2.03.
		

		
			Section 2.02    Note.
		

		
			(a)        The Loans made by the Lender shall be evidenced by a single promissory note of the Borrower substantially in the form of Exhibit 2.02(a) hereto (the “Note”), dated the date hereof, payable to the Lender in a principal amount not to exceed an amount equal to the Available Facility Amount as originally in effect and otherwise duly completed.
		

		
			(b)        The date, amount, and interest rate of each Loan made by the Lender to the Borrower, and each payment made on account of the principal thereof, shall be recorded by the Lender on its books and, prior to any transfer of the Note, noted by the Lender on the grid attached to the Note or any continuation thereof, provided, that failure of the Lender to make any such recordation or notation shall not affect the obligations of the Borrower to make payments when due of any amount hereunder or under the Note in respect of the Loans.
		

		
			Section 2.03    Borrower Electronic Files and Funding Requests.
		

		
			(a)        On any Funding Notice Date prior to the Wind Down Date, the Borrower may request the Lender to make a Loan on the Funding Date specified in the related Borrower Funding Request by delivering to the Lender an irrevocable Borrower Funding Request no later than 3:00 p.m. (New York City time) on such Funding Notice Date. The amount of any Loan requested pursuant to a Borrower Funding Request shall be not greater than the related Available Loan Amount and, with respect to the Initial Borrower Funding request, shall not be less than $5
		

		
			
		

		
			

		 

		

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			million. The Borrower may request a Funding Date on any Business Day; provided, however, a Funding Date that involves the addition of new Collateral may not fall on any of the five (5) last Business Days in any calendar month unless otherwise agreed by Lender. Any Borrower Funding Request that relates to the addition of new Collateral shall include an Electronic File describing all Eligible Servicing Rights that constitute the Collateral hereunder.
		

		
			(b)        Regardless whether the Borrower intends to deliver a Borrower Funding Request during any calendar month, the Borrower shall deliver to the Lender on the fifteenth (15th) calendar day of each month (or, if such day is not a Business Day, the following Business Day) (any such day, a “Collateral Reporting Date”), an Electronic File with respect to all Eligible Servicing Rights that constitute the Collateral hereunder, which shall include all updates to the Collateral since the date of the preceding Electronic File.
		

		
			(c)        In Lender’s determination of Collateral Value for any of the Servicing Rights hereunder, it shall apply the MSR Value of the Servicing Rights in a related Borrowing Base Report. Any excess of the amount funded on such Loan over the Collateral Value shall result in a Borrowing Base Deficiency as set forth in Section 2.08(b). Notwithstanding anything to the contrary contained in this Section 2.03, the Lender shall have the right to determine MSR Value at any time in its sole discretion.
		

		
			(d)        By delivering a Borrower Funding Request, the Borrower represents and warrants to the Lender that, after taking into account the amount of the requested Loan, all conditions precedent to such Loan specified in Section 5.02 have been satisfied.
		

		
			Section 2.04    Borrowing Base Reports. With respect to each Funding Date, the Lender shall determine the MSR Value of the Eligible Servicing Rights to be pledged as security for a Loan on such Funding Date and shall communicate such determination by providing Borrower with a Borrowing Base Report prior to such Funding Date. For purposes of preparing each Borrowing Base Report, the Lender shall calculate the Collateral Value of the Eligible Servicing Rights described in the Relevant Electronic File.
		

		
			Section 2.05    Interest. Interest shall accrue on each Loan for each day during a related Interest Period at a per annum rate equal to the product of (x) the outstanding principal balance of such Loan on such day, multiplied by (y) the sum of (i) the applicable LIBOR Rate for such day and (ii) the Applicable Margin. Interest shall be payable on each Monthly Settlement Date in arrears with respect to each Loan through the final day of each Interest Period (regardless whether such day is a Business Day), such amount to be payable on each Monthly Settlement Date. The Lender shall determine the LIBOR Rate for each Loan, which may be reset on a daily basis, as set forth in the definition of “LIBOR Rate” and provide notice of such determination to the Borrower. The Lender shall also calculate the amount of interest or other amounts due to be paid by the Borrower from time to time hereunder (including in connection with any prepayment or repayment of Loans permitted hereunder) and shall provide a written statement thereof to the Borrower at least two Business Days prior to the due date of such payments (or the relevant repayment or prepayment after having received a notice thereof); provided, that failure to provide such statements on a timely basis shall not relieve the Borrower of the obligation to pay any interest and principal due on the applicable payment date (based upon its good faith calculation of the amount
		

		
			
		

		
			

		 

		

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			due, such amount to be promptly reconciled after receipt of a subsequent statement from the Lender) and other such amounts hereunder promptly upon receipt of such statement.
		

		
			Section 2.06    Increased Capital Costs. If Lender determines in its sole discretion that any Change in Law or any change in accounting rules regarding capital requirements has the effect of reducing the rate of return on Lender’s capital under this Agreement as a consequence of such Change in Law or change in accounting rules, then from time to time Borrower will compensate Lender for such reduced rate of return suffered as a consequence of such Change in Law or change in accounting rules on terms similar to those imposed by Lender. Further, if due to the introduction of, any change in, or the compliance by Lender with (i) any eurocurrency reserve requirement, or (ii) the interpretation of any law, regulation or any guideline or request from any central bank or other Governmental Authority whether or not having the force of law, there shall be an increase in the cost to Lender as a consequence of the Loans or other advances of funds made by Lender pursuant to this Agreement or any of the Facility Documents relating to fundings or commitments under this Agreement, then Borrower shall, from time to time and upon demand by Lender, compensate Lender for such increased costs, and such amounts shall be deemed a part of the Obligations hereunder. Lender shall provide Borrower with notice as to any such Change in Law, change in accounting rules or change in compliance promptly following Lender’s receipt of actual knowledge thereof.
		

		
			Section 2.07   Alternate Rate of Interest. If on any Business Day, the Lender determines (which determination shall be conclusive absent manifest error) (a) that adequate and reasonable means do not exist for ascertaining the LIBOR Rate; or (b) that the LIBOR Rate will not adequately and fairly reflect the cost to the Lender of making or maintaining its Loan; or (c) that it has become unlawful for it to honor its obligation to make or maintain Loans hereunder using the LIBOR Rate, or maintaining its Loans (or its Loan) included in any advance, then the Lender shall give notice thereof to the Borrower by telephone, facsimile, or other electronic means as promptly as practicable thereafter and, until the Lender notifies the Borrower that the circumstances giving rise to such notice no longer exist, any Borrower Funding Request that requests that Lender make a new Loan, subject to the timely approval of the Borrower after receipt of notice of such revised rate, at a rate per annum that the Lender determines in its reasonable discretion adequately reflects the cost to the Lender of making or maintaining the Loan.
		

		
			Section 2.08    Mandatory Repayment of Loans.
		

		
			(a)        On each Loan Repayment Date (or, if such day is not a Business Day, the following Business Day) from and after the Wind Down Date, and continuing until the Outstanding Aggregate Loan Amount shall be reduced to zero, the Borrower shall repay an amount equal to at least one-twelfth (1/12) of the Outstanding Aggregate Loan Amount as of the Wind Down Date with respect to all Loans and all other amounts due under this Agreement.  Loans may be prepaid in accordance with the terms of Section 2.09 hereof and, to the extent prepaid, provided the Wind Down Date shall not have occurred, may be re-borrowed hereunder in accordance with the terms hereof (including satisfaction of all conditions precedent contained in Section 5.02). Notwithstanding the foregoing, all amounts owing under the Facility shall be immediately due and payable on the Termination Date.
		

		
			
		

		
			

		 

		

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			(b)        If, on any Business Day (a “Borrowing Base Shortfall Day”), the Lender provides written notice to the Borrower that the Lender has determined in its sole reasonable discretion based on the Borrowing Base Report most recently delivered by the Lender pursuant to Section 2.04 that the Outstanding Aggregate Loan Amount on such day exceeds the lesser of (i) the Borrowing Base and (ii) the Available Facility Amount on such day (such circumstance, a “Borrowing Base Deficiency”), the Borrower (i) on the same day if the Lender notifies Borrower by 11:00 a.m. (New York time) of such Borrowing Base Deficiency, or (ii) if the notice is received later than 11:00 a.m. (New York time), then within one (1) Business Day after the Borrowing Base Shortfall Day, shall repay outstanding Loans (including accrued Interest thereon), in an amount equal to the amount of the Borrowing Base Deficiency specified in the notice provided to the Borrower by the Lender (such requirement a “Margin Call”).
		

		
			Section 2.09   Optional Prepayment. The Borrower may, at its option, prepay any Loan advanced hereunder in full or in part on any date, but not more than once per month; provided, however, that the Borrower shall be permitted at any time, without limitation, to prepay any Loan in connection with a Margin Call (any such date, an “Optional Prepayment Date”). Any such prepayment received by the Lender by 3:00 p.m. (New York City time) on such Optional Prepayment Date shall be applied by the Lender on such Business Day. Any such prepayment received by the Lender after 3:00 p.m. (New York City time) on such Optional Prepayment Date shall be applied by the Lender on the following Business Day. For the avoidance of doubt, any optional prepayment in full shall not result in the termination of this Agreement unless such termination is declared in writing by the Borrower, acting in its discretion.
		

		
			ARTICLE III
		

		
			PAYMENTS; COMPUTATIONS; TAXES; FEES
		

		
			Section 3.01    Payments and Computations, Etc.
		

		
			(a)        Unless otherwise expressly stated herein, all amounts to be paid or deposited hereunder shall be paid or deposited in accordance with the terms hereof no later than 4:00 p.m. (New York City time) on the day when due in lawful money of the United States of America in same day funds.
		

		
			(b)        The Borrower shall, to the extent permitted by law, pay interest on all amounts (including principal, interest and fees) due but not paid on the date such payment is due hereunder as provided herein, for the period from, and including, such due date until, but excluding, the date paid, at the applicable Default Rate, payable on demand; provided,  however that such interest rate shall not at any time exceed the maximum rate permitted by applicable law.
		

		
			(c)        All computations of interest and fees hereunder shall be made on the basis of a year of 360 days for the actual number of days elapsed (including the first day but excluding the last day) occurring in the period for which payable.
		

		
			(d)        The Borrower agrees that the principal of and interest on the Loans shall be recourse obligations of the Borrower.
		

		
			
		

		
			

		 

		

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			(e)        All payments made by the Borrower under this Agreement shall be made without set-off or counterclaim.
		

		
			Section 3.02    Taxes.
		

		
			(a)        All payments made by Borrower under this Agreement shall be made free and clear of, and without deduction or withholding for or on account of, any present or future taxes, levies, imposts, deductions, charges or withholdings, and all liabilities (including penalties, interest and additions to tax) with respect thereto imposed by any Governmental Authority therewith or thereon, excluding income taxes, branch profits taxes, franchise taxes or any other tax imposed on net income by the United States, a state or a foreign jurisdiction under the laws of which the Lender is organized or of its applicable lending office, or a state or foreign jurisdiction with respect to which Lender has a present or former connection (other than any connection arising from executing, delivering, being party to, engaging in any transaction pursuant to, performing its obligations under or enforcing any Facility Document), or any political subdivision thereof (collectively, such non-excluded taxes are hereinafter called “Taxes”), all of which shall be paid by Borrower for its own account not later than the date when due. If Borrower is required by law or regulation to deduct or withhold any Taxes from or in respect of any amount payable hereunder, it shall: (a) make such deduction or withholding, (b) pay the amount so deducted or withheld to the appropriate Governmental Authority not later than the date when due, (c) deliver to the Lender, promptly, original tax receipts and other evidence satisfactory to Lender of the payment when due of the full amount of such Taxes; and (d) except as otherwise expressly provided in Section 3.02(d) below, pay to the Lender such additional amounts (including all taxes imposed by any Governmental Authority on such additional amounts) as may be necessary so that the Lender receives, free and clear of all Taxes, a net amount equal to the amount it would have received under this Agreement, as if no such deduction or withholding had been made.
		

		
			(b)        In addition, Borrower agrees to pay to the relevant Governmental Authority in accordance with applicable law any current or future stamp or documentary taxes or any other excise or property taxes, charges or similar levies (including, without limitation, mortgage recording taxes, transfer taxes and similar fees) imposed by any taxing authority that arise from any payment made hereunder or from the execution, delivery or registration of, or otherwise with respect to, this Agreement (“Other Taxes”).
		

		
			(c)        Borrower agrees to indemnify Lender for the full amount of Taxes (including additional amounts with respect thereto) and Other Taxes, and the full amount of taxes of any kind imposed by any jurisdiction on amounts payable under this Section 3.02, and any liability (including penalties, interest and expenses arising thereon or with respect thereto) arising therefrom or with respect thereto, provided that Lender shall have provided Borrower with evidence, reasonably satisfactory to Borrower, of payment of Taxes or Other Taxes, as the case may be.
		

		
			(d)        Any Lender that either (i) is not incorporated under the laws of the United States, any State thereof, or the District of Columbia or (ii) whose name does not include “Incorporated,” “Inc.,” “Corporation,” “Corp.,” “P.C.,” “insurance company,” or “assurance company” (a “Foreign Purchaser”) shall provide Borrower with original properly completed and duly executed United States Internal Revenue Service (“IRS”) Forms W-8BEN or W-8ECI or any
		

		
			
		

		
			

		 

		

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			successor form prescribed by the IRS, certifying that such Person is either (1) entitled to benefits under an income tax treaty to which the United States is a party which eliminates or (2) otherwise fully exempt from United States withholding tax under Sections 1441 through 1442 of the Code on payments to it on or prior to the date upon which each such Foreign Lender becomes a Lender. Each Foreign Lender will resubmit the appropriate form eliminating withholding tax on payments to it on the earliest of (A) the third anniversary of the prior submission, or (B) on or before the expiration of thirty (30) days after there is a “change in circumstances” with respect to such Person as defined in Treas. Reg. Section 1.1441-1(e)(4)(ii)(D). For any period with respect to which the Foreign Lender has failed to provide Borrower with the appropriate form or other relevant document (x) as expressly required under this Section 3(d) (unless such failure is due to a change in treaty, law, or regulation occurring subsequent to the date on which a form originally was required to be provided, under the first sentence of this Section 3(d)) or (y) otherwise as required to establish exemption from United States withholding under FATCA, by such Person or by such Person’s assignor or transferor, such Person shall not be entitled to “gross-up” of Taxes under Section 3.02(d) or indemnification under Section 3.02(c) with respect to Taxes imposed by the United States which are imposed because of such failure; provided, however that should a Foreign Lender, which is otherwise exempt from a withholding tax, become subject to Taxes because of its failure to deliver a form required hereunder, Borrower shall take such steps as such Foreign Lender shall reasonably request to assist such Foreign Lender to recover such Taxes.
		

		
			(e)        Without prejudice to the survival or any other agreement of Borrower hereunder, the agreements and obligations of Borrower contained in this Section 3.02 shall survive the termination of this Agreement. Nothing contained in this Section 3.02 shall require Lender to make available any of their tax returns or other information that it deems to be confidential or proprietary.
		

		
			(f)        The Lender shall (A) promptly notify the Borrower of any change in circumstances which would modify or render invalid any claimed exemption or reduction, and (B) cooperate, in its reasonable discretion and at Borrower’s expense, with Borrower to mitigate any requirement of Applicable Law of any jurisdiction in which the Borrower may be required to withhold or deduct any taxes from amounts payable to Lender hereunder.
		

		
			Section 3.03   Fees and Expenses.  The Borrower agrees to pay to the Lender all reasonable and documented out-of-pocket costs and expenses (including reasonable and documented fees and expenses of Lender’s counsel not to exceed $25,000) incurred in connection with the execution of this Agreement (and any amendments thereto) and the Facility Documents; provided that such limitation on fees and expenses of Lender’s counsel shall not apply to (i) any amendment or renewal of, or waiver of any provision of, this Agreement or any other Facility Document or (ii) any document executed after the Closing Date in connection with the transactions contemplated by this Agreement.
		

		
			ARTICLE IV
		

		
			SECURITY INTEREST
		

		
			Section 4.01   Security Interest. As security for the prompt payment and performance of all of its Obligations, the Borrower hereby assigns and pledges to the Lender, and grants a security
		

		
			
		

		
			

		 

		

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			interest, subject to the interests of the Agencies as set forth in Section 4.02 and in the related Acknowledgment Agreement, to the Lender, all of the Borrower’s right, title and interest, in, to, and under, whether now owned or hereafter acquired, in all of the following, whether now or hereafter existing and wherever located: (i) the Pledged Servicing Rights whether or not yet accrued, earned due or payable as well as all other present and future rights and interests of Borrower in such Pledged Servicing Rights, (ii) all books and records, including computer disks and other records or physical or virtual data or information, related to the foregoing (but excluding computer programs) and (iii) all monies due or to become due with respect to the foregoing and all proceeds of the foregoing, but with respect to items (i)-(iii) above specifically excluding the Excluded Collateral (collectively, the “Collateral”); provided that Borrower does not assign or pledge to the Lender, or grant a security interest in any of Borrower’s right, title and interest, in, to or under Borrower’s rights to reimbursement for any Advances related to mortgage servicing rights subject to any Servicing Contract.
		

		
			Notwithstanding anything herein to the contrary, the term “Collateral” shall not include, and the Borrower is not pledging, nor granting a security interest hereunder in any Freddie Mac Servicing Rights and the Freddie Mac Servicing Contract until execution and delivery of a Freddie Mac Acknowledgment Agreement with respect to such Freddie Mac Servicing Rights; provided, that notwithstanding the foregoing, such security interest shall attach immediately, without any further action on the part of any party hereto, at such time as the applicable Freddie Mac Acknowledgment Agreement is executed by Freddie Mac, the Borrower and the Lender and delivered to the Lender.
		

		
			Section 4.02    Provisions Regarding Pledge of Servicing Rights to Be Included In Financing Statements.
		

		
			(a)        Notwithstanding anything to the contrary in the Agreement or any of the other Facility Documents, the security interest of the Lender created hereby with respect to the Fannie Mae Servicing Rights is subject to the following provisions, which shall be included in each financing statement filed in respect hereof (or any variation required by Fannie Mae):
		

		
			“The security interest described in this financing statement is subject and subordinate to all rights, powers, and prerogatives of Fannie Mae under and in connection with (i) the terms and conditions of that certain Acknowledgment Agreement, with respect to the security interest, by and among Fannie Mae, PennyMac Loan Services, LLC (the “Debtor”), and Credit Suisse AG, Cayman Islands Branch, and (ii) the Mortgage Selling and Servicing Contract, the Fannie Mae Selling Guide, the Fannie Mae Servicing Guide and any supplemental servicing instructions or directives provided by Fannie Mae, all applicable master agreements (including applicable MBS pool purchase contracts and variances), recourse agreements, repurchase agreements, indemnification agreements, loss-sharing agreements, and any other agreements between Fannie Mae and the Debtor, and all as amended, modified, restated or supplemented from time to time (collectively, the “Fannie Mae Lender Contract”), which rights, powers, and prerogatives include, without limitation, the right of Fannie Mae to terminate the Fannie Mae Lender Contract with or without cause and the right to sell, or have transferred, the Servicing Rights as therein provided.”
		

		
			
		

		
			

		 

		

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			(b)        Notwithstanding anything to the contrary in the Agreement or any of the other Facility Documents (other than the Freddie Mac Agency Acknowledgment Agreement), the security interest of the Lender created hereby with respect to the Freddie Mac Servicing Rights is subject to the following provisions to be included in each financing statement filed in respect hereof (or any variation required by Freddie Mac):
		

		
			“Notwithstanding anything to the contrary, the security interest publicized or perfected by this financing statement is subject and subordinate in each and every respect (a) to all rights, powers and prerogatives of the Federal Home Loan Mortgage Corporation (“Freddie Mac”) under and in connection with the Purchase Documents, as that term is defined in the Freddie Mac Single-Family Seller/Servicer Guide, which rights include, without limitation, the right of Freddie Mac to disqualify (in whole or in part) the debtor named herein as an approved Freddie Mac Seller/Servicer, with or without cause, and the right to terminate (in whole or in part) the unitary, indivisible master servicing contract and to transfer and sell all or any portion of said servicing contract rights, as provided in the Purchase Documents; and (b) to all claims of Freddie Mac arising out of or relating to any and all breaches, defaults and outstanding obligations of the debtor to Freddie Mac.”
		

		
			Section 4.03    Authorization of Financing Statements. The Borrower hereby authorizes the Lender to file any financing or continuation statements required to perfect, protect, or more fully evidence the Lender’s security interest in the Collateral granted hereunder. The Lender will notify the Borrower of any such filing (but the failure to deliver such notice shall not prejudice any rights of the Lender under this Section 4.03).
		

		
			Section 4.04    Lender’s Appointment as Attorney In Fact.
		

		
			(a)        The Borrower hereby irrevocably constitutes and appoints the Lender and any officer or agent thereof, with full power of substitution, as its true and lawful attorney‐in‐fact with full irrevocable power and authority in the place and stead of the Borrower and in the name of the Borrower or in its own name, from time to time in the Lender’s discretion, if an Event of Default shall have occurred and be continuing, for the limited purpose of carrying out the terms of this Agreement (or any Servicing Contracts to the extent permitted by the related Acknowledgment Agreement), to take any action on behalf of the Borrower pursuant to the Acknowledgment Agreements and to take any and all appropriate action and to execute any and all documents and instruments which may be necessary or desirable to accomplish the purposes of this Agreement (or any Servicing Contracts to the extent permitted by the related Acknowledgment Agreement) solely to the extent such actions are expressly permitted to be taken by the Lender under the Acknowledgment Agreements or the Freddie Mac Servicing Contract, and, without limiting the generality of the foregoing, the Borrower hereby gives the Lender the power and right, on behalf of the Borrower, without assent by, but with notice to, the Borrower, if an Event of Default shall have occurred and be continuing, to do the following (subject to limitations contained in each Acknowledgment Agreement and the Freddie Mac Servicing Contract):
		

		
			(i)         in the name of the Borrower or its own name, or otherwise, to take possession of and endorse and collect any checks, drafts, notes, acceptances or other instruments
		

		
			
		

		
			

		 

		

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			for the payment of moneys due under any mortgage insurance or with respect to any other Collateral and to file any claim or to take any other action or proceeding in any court of law or equity or otherwise deemed appropriate by the Lender for the purpose of collecting any and all such moneys due under any such mortgage insurance or with respect to any other Collateral whenever payable;
		

		
			(ii)       (A) to direct any party liable for any payment under any Collateral to make payment of any and all moneys due or to become due thereunder directly to the Lender or as the Lender shall direct; (B) to ask or demand for, collect, receive payment of and receipt for, any and all moneys, claims and other amounts due or to become due at any time in respect of or arising out of any Collateral; (C) to sign and endorse any invoices, assignments, verifications, notices and other documents in connection with any of the Collateral; (D) to commence and prosecute any suits, actions or proceedings at law or in equity in any court of competent jurisdiction to collect the Collateral or any part thereof and to enforce any other right in respect of any Collateral; (E) in connection with the above, to give such discharges or releases as the Lender may deem appropriate; and (F) generally, to sell, transfer, pledge and make any agreement with respect to or otherwise deal with any of the Collateral as fully and completely as though the Lender were the absolute owner thereof for all purposes, and to do, at the Lender’s option and the Borrower’s expense, at any time, or from time to time, all acts and things which the Lender deems necessary to protect, preserve or realize upon the Collateral and the Lender’s Liens thereon and to effect the intent of this Agreement, all as fully and effectively as the Borrower might do;
		

		
			(iii)      in connection with the preservation of the security interest granted hereunder in favor of the Lender, perform or cause to be performed, the Borrower’s obligations under any Servicing Contract to the extent permitted by the related Acknowledgment Agreement.
		

		
			The Borrower hereby ratifies that all said attorneys shall lawfully do or cause to be done by virtue hereof. The power of attorney is a power coupled with an interest and shall be irrevocable but shall terminate upon release of the Lender’s security interest as provided in Section 4.05.
		

		
			(b)        The Borrower also authorizes the Lender, at any time and from time to time, to execute, in connection with the sale provided for in Section 8.02(c) hereof, any endorsements, assignments or other instruments of conveyance or transfer with respect to the Collateral; provided that the exercise of such powers are in accordance with the Acknowledgment Agreements.
		

		
			(c)        The powers conferred on the Lender are solely to protect the Lender’s interest in the Collateral and shall not impose any duty upon the Lender to exercise any such powers. The Lender shall be accountable only for amounts that it actually receives as a result of the exercise of such powers, and neither the Lender nor any of its officers, directors, or employees shall be responsible to the Borrower for any act or failure to act hereunder, except for its own gross negligence or willful misconduct; provided that the Lender shall exercise such powers only to the extent expressly permitted in the Acknowledgment Agreements.
		

		
			Section 4.05    Release of Security Interest. Upon termination of this Agreement and repayment to the Lender of all Obligations and the performance of all obligations under the Facility Documents, the Lender shall release its security interest in any remaining Collateral; provided that if any payment, or any part thereof, of any of the Obligations is rescinded or must otherwise be
		

		
			
		

		
			

		 

		

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			restored or returned by the Lender upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of the Borrower, or upon or as a result of the appointment of a receiver, intervener or conservator of, or a trustee or similar officer for the Borrower or any substantial part of its Property, or otherwise, this Agreement, all rights hereunder and the Liens created hereby shall continue to be effective, or be reinstated, until such payments have been made.
		

		
			ARTICLE V
		

		
			CONDITIONS PRECEDENT
		

		
			Section 5.01    Conditions Precedent. The effectiveness of this Agreement is subject to the condition precedent that the Lender shall have received each of the items set forth in Schedule 5.01 (unless otherwise indicated) dated such date, and in such form and substance, as is satisfactory to the Lender.
		

		
			Section 5.02    Further Conditions Precedent. The funding of each Loan hereunder, shall in all events be subject to satisfaction of the further conditions precedent set forth in Schedule 5.02 as of the making of such Loan.
		

		
			ARTICLE VI
		

		
			REPRESENTATIONS AND WARRANTIES
		

		
			Section 6.01    Representations and Warranties of Each Borrower Party.  Borrower and Guarantor, as applicable, represents and warrants to the Lender that throughout the term of this Agreement (except to the extent any such representation or warranty is stated to relate solely to an earlier date, in which case, such representation or warranty shall have been true or correct as of such date):
		

		
			(a)        Borrower Party Existence. Each Borrower Party has been duly organized and is validly existing as a limited liability company in good standing under the laws of the State of Delaware.
		

		
			(b)        Licenses.  Each Borrower Party is duly licensed or is otherwise qualified in each jurisdiction in which it transacts business for the business which it conducts and is not in default of any applicable federal, state or local laws, rules and regulations unless, in either instance, the failure to take such action is not reasonably likely (either individually or in the aggregate) to cause a Material Adverse Effect and is not in default of such state’s applicable laws, rules and regulations.  Each Borrower Party has the requisite power and authority and legal right and necessary licenses to execute and deliver, engage in the transactions contemplated by, and perform and observe the terms and conditions of each Facility Document.  Borrower is an FHA Approved Mortgagee.
		

		
			(c)        Power.  Each Borrower Party has all requisite corporate or other power, and has all governmental licenses, authorizations, consents and approvals necessary to own its assets and carry on its business as now being or as proposed to be conducted, except where the lack of
		

		
			
		

		
			

		 

		

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			such licenses, authorizations, consents and approvals would not be reasonably likely to have a Material Adverse Effect.
		

		
			(d)        Due Authorization.  Each Borrower Party has all necessary corporate or other power, authority and legal right to execute, deliver and perform its obligations under each of the Facility Documents, as applicable.  Each Facility Document has been (or, in the case of Facility Documents not yet executed, will be) duly authorized, executed and delivered by each Borrower Party, all requisite or other corporate action having been taken, and each is valid, binding and enforceable against each Borrower Party in accordance with its terms except as such enforcement may be affected by bankruptcy, by other insolvency laws, or by general principles of equity.
		

		
			(e)        Financial Statements. The financial statements of each Borrower Party, copies of which have been furnished to Lender, (i) are, as of the dates and for the periods referred to therein, complete and correct in all material respects, (ii) present fairly the financial condition and results of operations of the related Borrower Party as of the dates and for the periods indicated and (iii) have been prepared in accordance with GAAP consistently applied, except as noted therein (subject as to interim statements to normal year-end adjustments). Since the date of the most recent financial statements, there has been no material adverse change in the consolidated business, operations or financial condition of any Borrower Party from that set forth in said financial statements nor is any Borrower Party aware of any state of facts which (with notice or the lapse of time) would or could result in any such material adverse change. Except as disclosed in such financial statements or pursuant to Section 7.01 hereof, no Borrower Party is subject to any liabilities direct or indirect, fixed or contingent, matured or unmatured, known or unknown, or liabilities for taxes, long-term leases or unusual forward or long-term commitments not disclosed by, or reserved against in, said balance sheet and related statements, and at the present time there are no material unrealized or anticipated losses from any loans.
		

		
			(f)        Event of Default.  There exists no Event of Default under Section 8.01(e) hereof, which default gives rise to a right to accelerate indebtedness as referenced in Section 8.01(e) hereof.
		

		
			(g)        Solvency. Each Borrower Party is solvent and will not be rendered insolvent by any Loan hereunder and, after giving effect to each such Loan, will not be left with an unreasonably small amount of capital with which to engage in its business.  No Borrower Party intends to incur, nor believes that it has incurred, debts beyond its ability to pay such debts as they mature and is not contemplating the commencement of insolvency, bankruptcy, liquidation or consolidation proceedings or the appointment of a receiver, liquidator, conservator, trustee or similar official in respect of such entity or any of its assets.  The amount of consideration being received by Borrower after giving effect to each Loan by the Lender constitutes reasonably equivalent value and fair consideration for such Loan. Borrower is not pledging any Collateral with any intent to hinder, delay or defraud any of its creditors. The Agreement and the Facility Documents, any other document contemplated hereby or thereby and each transaction have not been entered into fraudulently by any Borrower Party hereunder, or with the intent to hinder, delay or defraud any creditor or Lender.
		

		
			(h)        No Conflicts.  The execution, delivery and performance by each Borrower Party of each Facility Document does not conflict with any term or provision of the organizational
		

		
			
		

		
			

		 

		

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			documents of the related Borrower Party or result in the breach of any provision of, or conflict with or constitute a default under or result in the acceleration of any obligation under, any agreement, indenture, loan or credit agreement or other instrument to which a Borrower Party, the Collateral or any of a Borrower Party’s Property is or may be subject to, or result in the violation of any law, rule, regulation, order, judgment, writ, injunction or decree to which a Borrower Party, the Collateral or a Borrower Party’s Property is subject, which conflict would have a Material Adverse Effect.
		

		
			(i)         True and Complete Disclosure.  All information, reports, exhibits, schedules, financial statements or certificates relating to any Borrower Party that any Borrower Party has delivered or caused to be delivered to Lender in connection with the initial or any ongoing due diligence of any Borrower Party and the negotiation, preparation, or delivery of the Facility Documents are true and complete and do not omit to disclose any material facts necessary to make the statements herein or therein, in light of the circumstances in which they are made, not misleading.
		

		
			(j)         Approvals.  No consent, approval, authorization or order of, registration or filing with, or notice to any Governmental Authority or court is required under applicable law in connection with the execution, delivery and performance by any Borrower Party of each Facility Document except for (i) consents that have been obtained in connection with transactions contemplated by the Facility Documents, (ii) filings to perfect the security interest created by this Agreement, and (iii) authorizations, consents, approvals, filings, notices, or other actions the failure to make could not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect.
		

		
			(k)        Litigation.  There is no action, proceeding or investigation pending with respect to which any Borrower Party has received service of process or, to the best of any Borrower Party’s knowledge threatened against it before any court, administrative agency or other tribunal (A) asserting the invalidity of any Facility Document, (B) seeking to prevent the consummation of any of the transactions contemplated by any Facility Document, (C) making a claim individually or in the aggregate in an amount greater than $10,000,000 against any Borrower Party, (D) which requires filing with the Securities and Exchange Commission in accordance with the 1934 Act or any rules thereunder, (E) which has resulted in the voluntary or involuntary suspension of a license, a cease and desist order, or such other action as could adversely impact any Borrower Party’s business or (F)  which might materially and adversely affect the validity of the Collateral or the performance by it of its obligations under, or the validity or enforceability of any Facility Document.
		

		
			(l)         Taxes.  Each Borrower Party and their Subsidiaries is a U.S. Person and has timely filed all tax returns that are required to be filed by them and have paid all taxes, except for any such taxes as are being appropriately contested in good faith by appropriate proceedings diligently conducted and with respect to which adequate reserves have been provided.  The charges, accruals and reserves on the books of each Borrower Party and their Subsidiaries in respect of taxes and other governmental charges are, in the opinion of Borrower or Guarantor, as applicable, adequate.
		

		
			
		

		
			

		 

		

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			(m)       Investment Company.  Neither Borrower nor any of its Subsidiaries is required to register as an “investment company”, or a company “controlled” by an “investment company,” within the meaning of the Investment Company Act; provided,  however, that any entity that is under the management of PNMAC Capital Management LLC in its capacity as an “investment adviser” within the meaning of the Investment Company Act and is otherwise not directly or indirectly owned or controlled by Borrower shall not be deemed a “Subsidiary” for the purposes of this Section 6.01(m).
		

		
			(n)        Chief Executive Office; Jurisdiction of Organization.  Borrower’s chief executive office on the date hereof is located at 3043 Townsgate Road, Westlake Village, CA 91361.  Borrower’s jurisdiction of organization is the State of Delaware.  Borrower shall provide Lender with thirty days advance notice of any change in Borrower’s principal office or place of business or jurisdiction.  Borrower has no trade name.  During the preceding five years, Borrower has not been known by or done business under any other name, corporate or fictitious, and has not filed or had filed against it any bankruptcy receivership or similar petitions nor has it made any assignments for the benefit of creditors.
		

		
			(o)        Location of Books and Records.  The location where Borrower keeps its books and records, including all computer tapes and records relating to the Collateral is its chief executive office.
		

		
			(p)        Adjusted Tangible Net Worth.  On the Closing Date, Borrower’s Adjusted Tangible Net Worth shall comply with the requirements set forth in Section 7.01(v)(i) hereof.
		

		
			(q)        ERISA.  Each Plan to which a Borrower Party or its Subsidiaries makes direct contributions, and, to the knowledge of a Borrower Party, each other Plan and each Multiemployer Plan, is in compliance in all material respects with, and has been administered in all material respects in compliance with, the applicable provisions of ERISA, the Code and any other federal or state law.
		

		
			(r)        Agreements.  Neither Borrower nor any Subsidiary of Borrower is a party to any agreement, instrument, or indenture or subject to any restriction materially and adversely affecting its business, operations, assets or financial condition, except as disclosed in the financial statements described in Section 6.01(e) hereof.  Neither Borrower nor any Subsidiary of Borrower is in default in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any agreement, instrument, or indenture which default could have a material adverse effect on the business, operations, properties, or financial condition of Borrower as a whole.  No holder of any indebtedness of Borrower or of any of its Subsidiaries has given notice of any asserted default thereunder.
		

		
			(s)        Borrower’s Existing Financing Facilities.  Each of the Borrower’s financing facilities currently in place for the financing of any mortgage servicing rights or servicing advances owned by the Borrower is listed in detail in Schedule 6.01(s) attached hereto. Borrower shall provide any updates to Schedule 6.01(s) to the Lender at the time it delivers each Compliance Certificate hereunder.
		

		
			
		

		
			

		 

		

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			(t)         Agency Approvals.  Servicer is a seller/servicer approved by Fannie Mae and Freddie Mac, an issuer approved by Ginnie Mae and a lender approved by HUD. Servicer is in good standing to service mortgages for Fannie Mae, Ginnie Mae, HUD and Freddie Mac, as applicable. Servicer has not been suspended as a seller/servicer by Fannie Mae, Freddie Mac, Ginnie Mae or HUD on and after the date on which Borrower first obtained such approval from Fannie Mae, Ginnie Mae, HUD or Freddie Mac, as applicable. No Borrower Party is under review or investigation outside of due course and does not have knowledge of imminent or future investigation outside of due course, by Fannie Mae, Ginnie Mae, HUD or Freddie Mac on and after the date on which such Borrower Party became a Fannie Mae, Ginnie Mae, HUD or Freddie Mac approved seller/servicer or lender, as the context may require.
		

		
			(u)        No Reliance.  Each Borrower Party has made its own independent decisions to enter into the Facility Documents, as applicable, and as to whether each Loan is appropriate and proper for it based upon its own judgment and upon advice from such advisors (including without limitation, legal counsel and accountants) as it has deemed necessary.  No Borrower Party is relying upon any advice from Lender as to any aspect of the Loans, including without limitation, the legal, accounting or tax treatment of such Loans.
		

		
			(v)        Plan Assets.  No Borrower Party is an employee benefit plan as defined in Section 3 of  Title I of ERISA, or a plan described in Section 4975(e)(1) of the Code, and the and the Collateral does not constitute “plan assets” within the meaning of 29 CFR §2510.3 101 as amended by Section 3(42) of ERISA, in any Borrower Party’s hands, and transactions by or with a Borrower Party are not subject to any state or local statute regulating investments or fiduciary obligations with respect to governmental plans within the meaning of Section 3(32) of ERISA.
		

		
			(w)       No Prohibited Persons.  Neither Borrower nor Guarantor, or any of their Affiliates, officers, directors, partners or members, is an entity or person (or to Borrower’s or Guarantor’s knowledge, owned or controlled by an entity or person): (i) that is listed in the Annex to, or is otherwise subject to the provisions of Executive Order 13224 issued on September 24, 2001 (“EO13224”); (ii) whose name appears on the United States Treasury Department’s Office of Foreign Assets Control (“OFAC”) most current list of “Specifically Designated National and Blocked Persons” (which list may be published from time to time in various mediums including, but not limited to, the OFAC website, http:www.treas.gov/ofac/t11sdn.pdf); (iii) who commits, threatens to commit or supports “terrorism”, as that term is defined in EO13224; or (iv) who is otherwise affiliated with any entity or person listed above (any and all parties or persons described in clauses (i) through (iv) above are herein referred to as a “Prohibited Person”).
		

		
			(x)        [Reserved].
		

		
			(y)        Servicing.  Borrower has adequate financial standing and access to adequate servicing facilities, procedures and experienced personnel necessary for the sound servicing of the Mortgage Loans subject to this Agreement and in accordance with Accepted Servicing Practices.
		

		
			Section 6.02    Representations Concerning the Collateral.  The Borrower represents and warrants to the Lender that as of each day that a Loan is outstanding pursuant to this Agreement:
		

		
			
		

		
			

		 

		

			-15-

		

 

		

		
			(a)        Borrower has not assigned, pledged, conveyed, or encumbered any Collateral to any other Person or any right to any Collateral to any Person (including without limitation any right to control or transfer or otherwise effectuate any remedy relating to any Collateral), and immediately prior to the pledge of any such Collateral, the Borrower was the sole owner of such Collateral and had good and marketable title thereto (subject to the rights of Fannie Mae and Freddie Mac with respect to the related Servicing Rights), free and clear of all Liens (subject only to the rights and interests of the related Agency), and no Person, other than the Lender has any Lien on any Collateral (subject only to the rights and interests of the related Agency). No Eligible Servicing Rights are related to Mortgage Loans owned or financed by a third-party (including without limitation any Affiliate of Borrower) other than Fannie Mae pursuant to the Fannie Mae Acknowledgment Agreement and Freddie Mac pursuant to the Freddie Mac Acknowledgment Agreement, and no Person has any interest in any Eligible Servicing Rights or any related Mortgage Loans, other than Lender, Borrower, Fannie Mae pursuant to the Fannie Mae Acknowledgment Agreement, or Freddie Mac pursuant to the Freddie Mac Acknowledgment Agreement (including without limitation any right to control or transfer or otherwise effectuate any remedy relating to any Eligible Servicing Rights).
		

		
			(b)        The provisions of this Agreement are effective to create in favor of the Lender a valid security interest in all right, title, and interest of the Borrower in, to and under the Collateral, subject only to the rights and interests of the related Agency.
		

		
			(c)        All Recourse Servicing Obligations as of the applicable date of the most recent Electronic File have been identified as such in a monthly summary report delivered to the Lender. All information concerning all Servicing Rights set forth on the Electronic File pursuant to which such Servicing Rights were, are or will be (as applicable) pledged to the Lender will not contain any material misstatement of fact or omit to state a material fact or any fact necessary to make the statements contained therein, in light of the circumstances under which they were made, not misleading as of the date of such Electronic File.
		

		
			(d)        Upon the filing of financing statements on Form UCC-1 naming the Lender as “Secured Party” and the Borrower as “Debtor”, and describing the Collateral, in the appropriate jurisdictions, the Lender has a duly perfected first priority security interest under the UCC in all right, title, and interest of Borrower in, to and under, subject to the rights and interests of any applicable Agency, the Servicing Rights.
		

		
			(e)        The Facility Documents create in favor of the Lender a valid and, together with such filings and other actions, perfected first priority security interest in the Collateral, securing the payment of the Obligations, and all filings and other actions necessary to perfect such security interest have been duly taken. Subject to the rights of the related Agency as set forth in Section 4.02 and in the related Acknowledgment Agreement, the Borrower is the legal and beneficial owner of the Collateral free and clear of any Lien (subject to the rights and interests of any applicable Agency), except for the Liens created or permitted under the Facility Documents.
		

		
			(f)        Subject only to the terms of the related Acknowledgment Agreement, the Borrower has and will continue to have the full right, power and authority, to pledge the Servicing Rights, and the pledge of such Servicing Rights may be further assigned without any requirement, except as may be specified in the related Agency Guides.
		

		
			
		

		
			

		 

		

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			(g)        In connection with any repurchase agreement, loan and security agreement or similar credit facility or agreement for borrowed funds entered into by the Borrower or any of its Affiliates on the one hand and any third party (including an Affiliate of the Borrower or any of its Affiliates but excluding the Lender or any Affiliate of Lender) on the other, including without limitation, any other facility for the funding of Advances, no such third party has the right pursuant to the terms of such repurchase agreement, loan and security agreement or similar credit facility or agreement, to cause the Borrower to terminate, rescind, cancel, pledge, hypothecate, liquidate or transfer any of the Collateral.
		

		
			ARTICLE VII
		

		
			COVENANTS
		

		
			Section 7.01    Covenants of Borrower.  Borrower covenants and agrees with the Lender that, so long as any Loan is outstanding and until all Obligations have been paid in full:
		

		
			(a)        Litigation.  Each Borrower Party, as applicable, will promptly, and in any event within ten (10) days after service of process on any of the following, give to Lender notice of all litigation, actions, suits, arbitrations, investigations (including, without limitation, any of the foregoing which are threatened or pending) or other legal or arbitrable proceedings affecting Borrower Party or any of its Subsidiaries or affecting any of the Property of any of them before any Governmental Authority that (i) questions or challenges the validity or enforceability of any of the Facility Documents or any action to be taken in connection with the transactions contemplated hereby, (ii) makes a claim individually or in the aggregate in an amount greater than $10,000,000, or (iii) which, individually or in the aggregate, if adversely determined, could be reasonably likely to have a Material Adverse Effect. Each Borrower Party, as applicable, will promptly provide notice of any judgment, which with the passage of time, could cause an Event of Default hereunder.
		

		
			(b)        Prohibition of Fundamental Changes.  No Borrower Party shall enter into any transaction of merger or consolidation or amalgamation, or liquidate, wind up or dissolve itself (or suffer any liquidation, winding up or dissolution) or sell all or substantially all of its assets; provided, that such Borrower Party may merge or consolidate with (a) any wholly owned subsidiary of such Borrower Party, or (b) any other Person if such Borrower Party is the surviving corporation; and provided further, that if after giving effect thereto, no Default would exist hereunder.
		

		
			(c)        Servicing.  No Borrower Party shall cause the Mortgage Loans to be serviced by any servicer other than the Servicer without the consent of the Lender, which consent shall not be unreasonably withheld, subject to the rights and interests of the Agencies; provided,  however, that the consent of Lender shall not be required if either (i) an Agency terminates a Borrower Party as servicer or subservicer, as applicable, or (ii) an Agency directs the Borrower Party to cause the Mortgage Loans to be serviced by another servicer, and in each case, such successor servicer shall be an approved servicer under the guidelines of such Agency.
		

		
			(d)        Insurance.  The Borrower shall, and shall cause Guarantor to keep all property useful and necessary in its business in good working order and condition. The Borrower
		

		
			
		

		
			

		 

		

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			shall maintain a fidelity bond and be covered by insurance (including, without limitation, errors and omissions insurance) of the kinds and in the amounts customarily maintained by such similarly situated entities in the same jurisdiction and industry as the Borrower, in amounts acceptable to the Agencies, and the Borrower shall not reduce such coverage without the written consent of Lender, and shall also maintain such other insurance with financially sound and reputable insurance companies, and with respect to property and risks of a character usually maintained by entities engaged in the same or similar business similarly situated, against loss, damage and liability of the kinds and in the amounts customarily maintained by such entities.
		

		
			(e)        No Adverse Claims.  Borrower warrants and will defend the right, title and interest of the Lender in and to the Servicing Rights pledged to the Lender against the claims and demands of all Persons whomsoever, subject to the restrictions imposed by the Acknowledgment Agreements to the extent that such restrictions are valid and enforceable under the applicable UCC and other Requirements of Law.
		

		
			(f)        Assignment.  Except as permitted herein, Borrower shall not sell, assign, transfer or otherwise dispose of, or grant any option with respect to, or pledge, hypothecate or grant a security interest in or lien on or otherwise encumber (except pursuant to the Facility Documents), any of the Collateral or any interest therein subject to the Acknowledgment Agreements, except (x) the security interest granted hereunder in favor of the Lender and (y) the respective rights of Freddie Mac and Fannie Mae under the applicable Servicing Contracts and the applicable Agency Guide.
		

		
			(g)        Security Interest.  Borrower shall do all things necessary to preserve the Collateral so that it remains subject to a first priority perfected security interest hereunder subject to the respective rights of Freddie Mac and Fannie Mae under the applicable Servicing Contracts and the applicable Agency Guide. Without limiting the foregoing, the Borrower will comply with all rules, regulations and other laws of any Governmental Authority and cause the Collateral to comply with all applicable rules, regulations and other laws. Each Borrower Party and the Subservicer shall diligently fulfill its duties and obligations under the Servicing Contracts and the Subservicing Agreement in all material respects and shall not default in any material respect under any of the Servicing Contracts, Subservicing Agreement or the Acknowledgment Agreements; provided that it shall not be a breach of this covenant if: (a) an Agency shall terminate Borrower’s rights under any Servicing Contract and Borrower shall repay (without duplication of payment) to the Lender an amount equal to the excess of the sum of the Loans then outstanding over the sum of the Borrowing Base of all the Servicing Rights then pledged to the Lender within the time periods set forth in Section 2.08(b) or (b) any such Servicing Contract expires in accordance with its terms and without renewal or (c) a default declared by an Agency in respect of a Servicing Contract arose from a failure of the portfolio of serviced Mortgage Loans to perform as required by the related Servicing Contract and such Agency has elected in writing to continue to use Borrower as servicer of both that portfolio and other pools of Mortgage Loans and individual Mortgage Loans and such Agency has not rescinded or revoked such election.
		

		
			(h)        Records:
		

		
			(1)        Borrower shall collect and maintain or cause to be collected and maintained all records relating to the Collateral in accordance with industry custom
		

		
			
		

		
			

		 

		

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			and practice for assets similar to the Collateral, and all such records shall be in the Borrower’s or the Subservicer’s possession unless Lender otherwise approves. Borrower or the Subservicer will maintain all such records in good and complete condition in accordance with industry practices for assets similar to the Collateral and preserve them against loss.
		

		
			(2)        Upon reasonable advance notice from Lender, Borrower shall (x) make any and all records relating to the Pledged Servicing Rights and the Subservicer, any Borrower Party and the other Collateral in the possession of the Borrower or Subservicer available to Lender to reasonably examine during normal business hours, either by its own officers or employees, or by agents or contractors, or both, and make copies of all or any portion thereof, and (y) permit Lender or its authorized agents to discuss the affairs, finances and accounts of the Borrower Parties with its chief operating officer and chief financial officer and to discuss the affairs, finances and accounts of the Borrower Parties with its independent certified public accountants; provided, however, the foregoing shall not apply with respect to any information that the Borrower or Subservicer are required by an Agency to keep confidential.
		

		
			(i)         Books.  Each Borrower Party shall keep or cause to be kept in reasonable detail records and books of account of its assets and business, in which complete entries will be made in accordance with GAAP consistently applied.
		

		
			(j)         Approvals.  Except as would not be reasonably likely to have a Material Adverse Effect or would have a material adverse effect on the Collateral or Lender’s interest therein, each Borrower Party shall maintain all licenses, permits or other approvals necessary for such Borrower Party to conduct its business and to perform its obligations under the Facility Documents, and such Borrower Party shall conduct its business in all material respects in accordance with applicable law.
		

		
			(k)        Material Change in Business.  No Borrower Party shall make any material change in the nature of its business as carried on at the date hereof.
		

		
			(l)         Distributions.  If an Event of Default has occurred and has not been waived by the Lender in accordance herewith, no Borrower Party shall make any Restricted Payments.
		

		
			(m)       Applicable Law.  Each Borrower Party shall comply with all applicable Requirements of Law if the failure to comply with such Requirements of Law could reasonably be expected to have a Material Adverse Effect.
		

		
			(n)        Existence.  Each Borrower Party shall preserve and maintain its legal existence and all of its material rights, privileges, licenses and franchises.
		

		
			(o)        Chief Executive Office; Jurisdiction of Organization.  Borrower shall not move its chief executive office from the address referred to in Section 6.01(n) or change its jurisdiction of organization from the jurisdiction referred to in Section 6.01(a) unless it shall have provided Lender thirty (30) days’ prior written notice of such change.
		

		
			
		

		
			

		 

		

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			(p)        Taxes.  Each Borrower Party is a U.S. Person and shall timely file all tax returns that are required to be filed by them and shall timely pay and discharge all taxes, assessments and governmental charges or levies imposed on it or on its income or profits or on any of its property prior to the date on which penalties attach thereto, except for any such tax, assessment, charge or levy the payment of which is being contested in good faith and by proper proceedings and against which adequate reserves are being maintained.
		

		
			(q)        Transactions with Affiliates.  Borrower will not enter into any transaction, including, without limitation, any purchase, sale, lease or exchange of property or the rendering of any service, with any Affiliate unless such transaction is (a) otherwise permitted under the Facility Documents and will not result in a Default hereunder, (b) in the ordinary course of Borrower’s business and (c) upon fair and reasonable terms no less favorable to Borrower than it would obtain in a comparable arm’s length transaction with a Person which is not an Affiliate, or make a payment that is not otherwise permitted by this Section to any Affiliate.
		

		
			(r)        Guarantees.  Borrower shall not create, incur, assume or suffer to exist any Guarantees, except (i) to the extent reflected in Borrower’s financial statements or notes thereto and (ii) to the extent the aggregate Guarantees of Borrower do not exceed $250,000.
		

		
			(s)        Indebtedness.  Borrower shall not incur any additional material Indebtedness (other than (i) the Indebtedness specified on Schedule 6.01(s) hereto; (ii) usual and customary accounts payable for a mortgage company; (iii) Indebtedness incurred in connection with new or existing secured lending facilities; and (iv) Indebtedness incurred in connection with an intercompany lending agreement) without the prior written consent of Lender.  Borrower shall not enter into any other financing facility with a lender other than the Lender to provide for the financing of Fannie Mae Servicing Rights and Freddie Mac Servicing Rights.
		

		
			(t)         True and Correct Information.  All information, reports, exhibits, schedules, financial statements or certificates relating to any Borrower Party that any Borrower Party has furnished to Lender hereunder and during Lender’s diligence of each Borrower Party are and will be true and complete and do not omit to disclose any material facts necessary to make the statements herein or therein, in light of the circumstances in which they are made, not misleading.  All required financial statements, information and reports delivered by each Borrower Party to Lender pursuant to this Agreement shall be prepared in accordance with GAAP, or, if applicable, to SEC filings, the appropriate SEC accounting regulations.
		

		
			(u)        Agency Approvals; Servicing.  Borrower shall maintain its status with Fannie Mae as an approved lender and Freddie Mac as an approved seller/servicer, in each case in good standing (“Agency Approvals”).  Servicer shall service all Mortgage Loans in accordance with the applicable Agency Guide.  Should Servicer, for any reason, cease to possess all such applicable Agency Approvals, or should notification to the relevant Agency or to HUD, FHA or VA be required, such Borrower shall so notify Lender immediately in writing.  Notwithstanding the preceding sentence, Servicer shall take all necessary action to maintain all of their applicable Agency Approvals at all times during the term of this Agreement and each outstanding Loan. Servicer shall maintain adequate financial standing, servicing facilities, procedures and experienced personnel necessary for the sound servicing of mortgage loans of the same types as
		

		
			
		

		
			

		 

		

			-20-

		

 

		

		
			may from time to time constitute Mortgage Loans and in accordance with Accepted Servicing Practices.
		

		
			(v)        Plan Assets.  No Borrower Party shall be an employee benefit plan as defined in Section 3 of Title I of ERISA, or a plan described in Section 4975(e)(1) of the Code and the Borrower shall not use “plan assets” within the meaning of 29 CFR §2510.3 101, as amended by Section 3(42) of ERISA to engage in this Agreement. Transactions by or with Borrower or the Guarantor shall not be subject to any state or local statute regulating investments of or fiduciary obligations with respect to governmental plans within the meaning of Section 3(32) of ERISA.
		

		
			(w)       Financial Covenants.  The Borrower shall at all times comply with any financial covenants and/or financial ratios set forth below:
		

		
			(i)         Adjusted Tangible Net Worth.  The Borrower shall maintain an Adjusted Tangible Net Worth of at least equal to $500,000,000.
		

		
			(ii)       Indebtedness to Adjusted Tangible Net Worth Ratio.  The Borrower’s ratio of Indebtedness (excluding (A) Non-Recourse Debt, including any securitization debt, and (B) any intercompany debt eliminated in consolidation) to Adjusted Tangible Net Worth shall not exceed 10:1.
		

		
			(iii)      Maintenance of Liquidity.  The Borrower shall ensure that, at all times, it has cash (other than Restricted Cash) and Cash Equivalents in an amount not less than $40,000,000.
		

		
			(iv)       Maintenance of Profitability.  The Borrower shall maintain profitability of at least $1.00 in Net Income for at least one of the two prior Test Periods.
		

		
			(x)        Changes in Servicing Contracts.  The Borrower shall provide written notice to the Lender of any changes in any Servicing Contracts that may materially affect the Servicing Rights within three (3) Business Days after the Borrower receives notice thereof.
		

		
			(y)        Monthly Third Party Valuation Reports.  As soon as possible and in any event no later than the twenty-third (23rd) calendar day of each calendar month (or, if such day is not a Business Day, the following Business Day), Borrower shall provide to Lender a report provided by a third party valuation agent acceptable to the Lender setting forth such agent’s determination of the value of all of Borrower’s servicing rights (including servicing rights not subject to this Agreement) and cash flows, along with the appropriate certificate required under Section 7.01(z)(iii).
		

		
			(z)        Financial Statements.  The Borrower shall deliver to the Lender, in each case, to the extent not publicly filed:
		

		
			(i)        Within forty (40) days after the end of each month, consolidated unaudited balance sheets and consolidated statements of income and changes in equity and unaudited statement of cash flows, all to be in a form acceptable to Lender, showing the financial condition and
		

		
			
		

		
			

		 

		

			-21-

		

 

		

		
			results of operations of Borrower and its consolidated Subsidiaries on a consolidated basis as of the end of each such month and for the then elapsed portion of the fiscal year, setting forth, certified by a financial officer of Borrower (acceptable to Lender) as presenting fairly the financial position and results of operations of Borrower and its consolidated Subsidiaries and as having been prepared in accordance with GAAP consistently applied, in each case, subject to normal year-end audit adjustments;
		

		
			(ii)       Within ninety (90) days after the end of each fiscal year of Borrower, the consolidated audited balance sheets of Borrower and its consolidated Subsidiaries, which will be in conformity with GAAP, and the related consolidated audited statements of income and changes in equity showing the financial condition of Borrower and its consolidated Subsidiaries as of the close of such fiscal year and the results of operations during such year, and consolidated audited statements of cash flows, as of the close of such fiscal year, setting forth, in each case, in comparative form the corresponding figures for the preceding year. The foregoing consolidated financial statements are to be reported on by, and to carry the unqualified report (acceptable in form and content to Lender) of, an independent public accountant of national standing acceptable to Lender and are to be accompanied by a letter of management in form and substance acceptable to Lender; and
		

		
			(iii)      Together with each set of the financial statements delivered pursuant to clause (i) above, a certificate of a Responsible Officer of such Borrower in the form attached as Exhibit A to the Pricing Side Letter.
		

		
			(aa)      Notice of Disposal of Servicing Rights.  In the event that the Borrower sells or otherwise disposes of any of the Pledged Servicing Rights, it shall give the Lender ten (10) Business Days’ prior written notice of such sale or disposition (together with a list of the affected loans and other information helpful to the Lender in assessing the related Collateral Value), during which time the Lender shall recalculate the Collateral Value for the Collateral remaining after such sale or disposition.
		

		
			(bb)      Requests for Information.  The Borrower shall furnish to the Lender within five (5) Business Days after the Lender’s request, any information, documents, records or reports with respect to the servicing or subservicing of the Collateral, any Borrower Party’s business or its relationship with any Agency, as the Lender may from time to time reasonably request.
		

		
			(cc)      Monthly Reports.  No later than the time set forth in Section 7.01(z)(i), Borrower shall provide to Lender (i) reports of information related to (x) any claims or compensatory fees actually paid by Borrower or Guarantor to each Agency related to enforcement by such Agency of its rights under the related Agency Guide (or to trusts under non-agency securitizations) that are not reimbursed from a predecessor originator/servicer, (y) a summary
		

		
			
		

		
			

		 

		

			-22-

		

 

		

		
			report of claims for repurchases or indemnity made by Agencies, insurers or trusts in non-agency securitizations, including the current status or resolution of such repurchase and indemnification demands; (z) the MSR Collateral as detailed in Schedule 7.01(bb); (ii) a report provided by Borrower setting forth Borrower’s determination of the value of all of Borrower’s servicing rights (including servicing rights not subject to this Agreement) and cash flows, along with the appropriate certificate required under Section 7.01(z)(iii); and (iii) copies of all notices it receives from any Agency that materially affect the Eligible Servicing Rights.
		

		
			(dd)      Subservicer Acknowledgment Letter.  Subject to the rights and interests of the Agencies, if the Lender approves the use of a subservicer, the Borrower shall cause such subservicer to acknowledge the Lender’s rights hereunder and agree to follow all instructions of Lender upon the occurrence of a default hereunder, which side letter shall be acceptable to Lender in form and substance (such side letter, a “Subservicer Acknowledgment Letter”) and prior to permitting any other subservicer to service any Mortgage Loans related to the Eligible Servicing Rights pledged hereunder, the Borrower shall cause such subservicer to become a party to a Subservicer Acknowledgment Letter.
		

		
			Section 7.02    Notice of Certain Occurrences.  The Borrower covenants and agrees with the Lender that, so long as any Loan is outstanding and until all Obligations have been paid in full:
		

		
			(a)        Defaults.  Borrower shall promptly, and in any event within one (1) Business Day of knowledge thereof by a Responsible Officer of Borrower, inform Lender in writing of any Default, Event of Default by Borrower or any other Person (other than Lender or Lender’s Affiliates) of any material obligation under any Facility Document, or the occurrence or existence of any event or circumstance that Borrower reasonably expects will with the passage of time become a Default, Event of Default by Borrower or any other Person.
		

		
			(b)        Litigation.  Borrower shall promptly inform Lender in writing of the commencement of, or any determination in, any dispute, litigation, investigation, proceeding, sanctions or suspension between Borrower, on the one hand, and any Governmental Authority (or any other Person, on the other, with an amount in controversy equal to or greater than $10,000,000).
		

		
			(c)        Material Adverse Effect on Collateral.  As soon as possible, Borrower shall inform Lender in writing upon the Borrower becoming aware of any default related to any Collateral which should reasonably be expected to have a Material Adverse Effect.
		

		
			(d)        Reserved.
		

		
			(e)        Credit Default.  Unless otherwise disclosed by Guarantor on Form 8-K with separate notice by Borrower to Lender of the filing of such Form 8-K, upon, and in any event within five (5) Business Days after, Borrower shall furnish the Lender notice of the involuntary termination, acceleration, maturity of or reduction in the amount available for borrowing under any repurchase agreement, loan and security agreement or similar credit facility or agreement for borrowed funds entered into by a Borrower Party and any third party to the extent that such agreement or facility, prior to the effectiveness of such termination, acceleration, maturity or
		

		
			
		

		
			

		 

		

			-23-

		

 

		

		
			reduction in the amount available for borrowing, provides for a minimum amount available for borrowing by such Borrower Party equal to or greater than $10,000,000.
		

		
			(f)        Servicing Contract Transfer.  As soon as possible, Borrower shall inform Lender in writing of the transfer, expiration without renewal, termination or other loss of all or any part of any Servicing Contract (or the termination or replacement of the Borrower thereunder), the reason for such transfer, loss or replacement, if known to it and the effects that such transfer, loss or replacement will have (or will likely have) on the prospects for full and timely collection of all amounts owing to the Borrower under or in respect of the Borrower’s Servicing Contracts.
		

		
			(g)        Agency Notices.  The Borrower shall promptly furnish the Lender copies of all notices it receives from Fannie Mae, Freddie Mac, HUD or Ginnie Mae indicating any adverse fact or circumstance in respect of the Borrower with respect to which adverse fact or circumstance Fannie Mae, Freddie Mac, HUD or Ginnie Mae, respectively, announces its intention to terminate or threatens to terminate the Borrower with cause or with respect to which Fannie Mae, Freddie Mac, HUD or Ginnie Mae, announces its intention to conduct any inspection or investigation of Borrower, or their files or facilities outside of the ordinary course.
		

		
			(h)        Servicing Rights Notices.  Borrower shall provide copies of (i) all notices it receives from any Agency that materially affect the Eligible Servicing Rights and (ii) any demand by an Agency or an insurer for the repurchase of or indemnification with respect to a mortgage loan and the reason for such repurchase or indemnification within three (3) Business Days after Borrower receives notice thereof, if such demand would likely cause a Material Adverse Effect.
		

		
			(i)         Servicer Rating.  Borrower shall provide written notice to the Lender within two (2) Business Days of receipt of notice of any decrease in any servicer rating of the Servicer below (i) “SQ3”, as rated by Moody’s or (ii) “Average”, as rated by S&P.
		

		
			(j)         Other.  Borrower shall furnish, or cause to be furnished, upon the request of Lender, such other information or reports as the Lender may from time to time reasonably request.
		

		
			(k)        Agency Requirements.  Borrower shall provide written notice of any change in any Agency’s requirements regarding the Borrower’s or Servicer’s minimum consolidated tangible net worth or any change in such Agency’s requirements regarding Borrower’s or Servicer’s consolidated liquidity within five (5) Business Days after Borrower receives notice thereof.
		

		
			(l)         Amendment to any Servicing Contract or the Subservicing Agreement.  The Borrower shall provide written notice to the Lender within five (5) Business Days after Borrower enters into any amendment to the terms of any Servicing Contract. The Borrower shall not allow a subservicer to enter into any amendment of the Servicing Contracts or a Subservicing Agreement that would affect such subservicer’s servicing of the Mortgage Loans subject to this Agreement without the prior written consent of Lender and subject to the rights and interests of the Agencies.
		

		
			(m)       Subservicer Termination.  Borrower shall provide written notice to Lender within one (1) Business Day following the occurrence of a Subservicer Termination Event.
		

		
			
		

		
			

		 

		

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			ARTICLE VIII
		

		
			EVENTS OF DEFAULT
		

		
			Section 8.01    Events of Default. The following events shall be “Events of Default”:
		

		
			(a)       The Borrower or Guarantor shall fail to (a) make any payment or deposit to be made by it under Article II,  Section 3.01 or Section 8.02(d) when due (whether of principal or interest at stated maturity, upon acceleration, or at mandatory prepayments due to Borrowing Base Deficiencies or otherwise) or (b) make any other payment or deposit to be made by it hereunder when due and, solely with respect to this clause (b), such failure (other than with respect to payment of principal) shall continue unremedied for a period of two (2) Business Days;
		

		
			(b)       A Borrower Party shall fail to comply with the requirements of Sections 7.01(n),  7.01(i),  7.01(g) or 7.02(f) and such default shall continue unremedied for a period of one (1) Business Day; or a Borrower Party shall otherwise fail to observe or perform any other agreement contained in this Agreement or any other Facility Document and such failure to observe or perform shall continue unremedied for a period of five (5) Business Days following a Borrower Party obtaining knowledge thereof;
		

		
			(c)       Any representation, warranty or certification made or deemed made herein or in any other Facility Document by a Borrower Party or any certificate furnished to Lender pursuant to the provisions thereof, shall prove to have been false or misleading in any material respect as of the time made or furnished (other than the representations and warranties set forth in Section 6.02 which shall be considered solely for the purpose of determining the MSR Value of the Eligible Servicing Rights; unless (i) Borrower Party shall have made any such representations and warranties with knowledge that they were materially false or misleading at the time made or (ii) any such representations and warranties have been determined by Lender in its reasonable discretion to be materially false or misleading on a regular basis);
		

		
			(d)       (1) The failure of the Borrower to be an approved servicer under the guidelines of an Agency with respect to which any Eligible Servicing Rights pledged under this Agreement relate, (2) the Borrower fails to service or subservice, as applicable, in accordance with the Agency Guides and the Lender determines in its good faith discretion that such failure may have a Material Adverse Effect, (3) the Borrower is terminated as servicer or subservicer, as applicable, with respect to any Eligible Servicing Rights by an Agency (except if the provisions of Section 7.01(g)(a)-(c) are met), (4) the Borrower shall at any time be terminated, revoked or suspended as servicer or subservicer, as applicable, with respect to any whole loan servicing or subservicing rights that make up a material portion of Borrower’s servicing portfolio, (5) Borrower shall cease to be approved by or its approval shall be revoked, suspended, rescinded, halted, eliminated, withdrawn, annulled, repealed, voided or terminated by an Agency as an approved seller/servicer or lender, (6) all or a portion of a Borrower Party’s or Servicer’s servicing or subservicing portfolio consisting of Agency loans is seized, (7) any Agency shall at any time cease to accept delivery of any loan or loans from the Borrower under any program or notifies the Borrower that the Agency shall cease accepting loan deliveries from the Borrower, and (8) receipt by a Borrower Party of a notice from any Agency indicating material breach, default or material non-compliance by such Borrower Party which the Lender reasonably determines may entitle such
		

		
			
		

		
			

		 

		

			-25-

		

 

		

		
			Agency to terminate such Borrower Party which notice has not been rescinded or nullified within three (3) Business Days of its receipt by such Borrower Party or such lesser time as Lender believes is necessary to protect its interest and provides Borrower with written notice thereof, as the case may be;
		

		
			(e)        Any “event of default” which constitutes a payment default shall have occurred and shall be continuing beyond the expiration of any applicable grace period under the terms of any repurchase agreement, loan and security agreement or similar credit facility or agreement for borrowed funds entered into by the Borrower or any of its Affiliates on the one hand and any third party (including an Affiliate of the Borrower but excluding the Lender or any Affiliate of Lender), which relates to the Indebtedness of the Borrower or any of its Affiliates in an amount individually or in the aggregate greater than $10,000,000, which default (1) involves the failure to pay a matured obligation or (2) permits the acceleration of the maturity of obligations by such third party;
		

		
			(f)        The Lender does not, or ceases to, have a first priority perfected security interest in the Collateral or any material part thereof, subject only to the rights and interests of the Agency with respect to the related Agency Servicing Rights and other Collateral, other than as a result of a release of such security interest by the Lender and such default continues unremedied for a period of one (1) Business Day after the earlier of (i) a Responsible Officer of the Borrower or the Guarantor having actual knowledge thereof and (ii) written notice of such default from the Lender;
		

		
			(g)        A Change of Control of the Borrower or the Guarantor occurs;
		

		
			(h)        Borrower ceases to be (1) a HUD approved mortgagee pursuant to Section 203 of the National Housing Act or (2) a Fannie Mae or Freddie Mac approved servicer or HUD, Fannie Mae or Freddie Mac, as applicable, suspends, rescinds, halts, eliminates, withdraws, annuls, repeals, voids or terminates the status of the Borrower as either (1) a HUD approved mortgagee pursuant to Section 203 of the National Housing Act or (2) a Fannie Mae or Freddie Mac approved servicer or (B) the Borrower receives notice that HUD, Fannie Mae or Freddie Mac may take such action set forth in clause (A);
		

		
			(i)         Reserved;
		

		
			(j)         Reserved;
		

		
			(k)        Borrower shall fail to comply with the financial covenants set forth in Section 7.01(q);
		

		
			(l)         The failure of Borrower to maintain any Agency’s net worth requirements;
		

		
			(m)       Any judgment or order for the payment of money in excess of $10,000,000 shall be rendered against the Borrower or any of its Affiliates, by a court, administrative tribunal or other body having jurisdiction over them and the same shall not be satisfied or discharged (or provisions shall not be made for such discharge) or bonded, or a stay of execution thereof shall not be procured, within sixty (60) days from the date of entry thereof or, if a stay of execution is procured, sixty (60) days from the date such stay is lifted;
		

		
			
		

		
			

		 

		

			-26-

		

 

		

		
			(n)       (1) The Borrower or any of its Affiliates files a voluntary petition in bankruptcy, seeks relief under any provision of any Insolvency Law or consents to the filing of any petition against it under any such law; (2) a proceeding shall have been instituted by any Affiliate of the Borrower in a court having jurisdiction in the premises seeking a decree or order for relief in respect of the Borrower or such Affiliate in an involuntary case under any applicable Insolvency Law, or for the appointment of a receiver, liquidator, assignee, trustee, custodian, sequestrator, conservator or other similar official of the Borrower or such Affiliate, or for any substantial part of its Property, or for the winding-up or liquidation of its affairs, (3) a proceeding shall have been instituted by any Person (other than an Affiliate of the Borrower) in a court having jurisdiction in the premises seeking a decree or order for relief in respect of the Borrower or any of its Affiliates in an involuntary case under any applicable Insolvency Law, or for the appointment of a receiver, liquidator, assignee, trustee, custodian, sequestrator, conservator or other similar official of the Borrower or such Affiliate, or for any substantial part of its Property, or for the winding-up or liquidation of its affairs and the Borrower or such Affiliate shall have failed to obtain a relief (including, without limitation, a dismissal) or a stay of such involuntary proceeding within sixty (60) days, (4) the admission in writing by the Borrower or any of its Affiliates of its inability to pay its debts as they become due, (5) the Borrower or any of its Affiliates consents to the appointment of or taking possession by a custodian, receiver, conservator, trustee, liquidator, sequestrator or similar official, of all or any part of its Property or any custodian, receiver, conservator, trustee, liquidator, sequestrator or similar official takes possession of all or any part of the Property of the Borrower or any of its Affiliates; (6) the Borrower or any of its Affiliates makes an assignment for the benefit of any of its creditors; or (7) the Borrower or any of its Affiliates generally fails to pay its debts as they become due;
		

		
			(o)       Any Governmental Authority or any Person, agency or entity acting or purporting to act under Governmental Authority (including any Agency) shall have taken any action to condemn, seize or appropriate, or to assume custody or control of, all or any substantial part of the Property of the Borrower or any of its Affiliates, or shall have taken any action to displace the management of any of the Borrower or any of its Affiliates or to curtail the Borrower’s, or any of its Affiliates’ authority in the conduct of its business; or
		

		
			(p)       The Guarantor repudiates, revokes or attempts to revoke in writing the guaranty of the Guarantor set forth in Section 11.13 of this Agreement, in whole or in part.
		

		
			Section 8.02    Remedies.
		

		
			(a)       Optional Acceleration.  Upon the occurrence of an Event of Default (other than an Event of Default described in Section 8.01(n)), the Lender may by written notice to the Borrower, terminate the Facility and declare all Loans and all other Obligations to be immediately due and payable.
		

		
			(b)       Automatic Acceleration.  Upon the occurrence of an Event of Default described in Section 8.01(n), the Facility shall be automatically terminated and the Loans and all other Obligations shall be immediately due and payable upon the occurrence of such event, without demand or notice of any kind.
		

		
			
		

		
			

		 

		

			-27-

		

 

		

		
			(c)        Remedies.  Upon any acceleration of the Loans pursuant to this Section 8.02, the Lender, in addition to all other rights and remedies under this Agreement or otherwise, shall have all other rights and remedies provided under the UCC of each applicable jurisdiction and other applicable laws, which rights shall be cumulative. The Borrower agrees, upon the occurrence of an Event of Default and notice from the Lender, to assemble, at its expense, all of the Collateral that is in its possession (whether by return, repossession, or otherwise) at a place designated by the Lender. All out-of-pocket costs incurred by the Lender in the collection of all Obligations, and the enforcement of its rights hereunder, including reasonable attorneys’ fees and legal expenses, shall be paid out of the Collateral. Without limiting the foregoing, upon the occurrence of an Event of Default and the acceleration of the Loans pursuant to this Section 8.02, the Lender may, to the fullest extent permitted by applicable law, without notice, advertisement, hearing or process of law of any kind, (i) enter upon any premises where any of the Collateral which is in the possession of the Borrower (whether by return, repossession, or otherwise) may be located and take possession of and remove such Collateral, (ii) sell any or all of such Collateral, free of all rights and claims of the Borrower therein and thereto, at any public or private sale, and (iii) bid for and purchase any or all of such Collateral at any such sale. Any such sale shall be conducted in a commercially reasonable manner and in accordance with applicable law. The Borrower hereby expressly waives, to the fullest extent permitted by applicable law, any and all notices, advertisements, hearings or process of law in connection with the exercise by the Lender of any of its rights and remedies upon the occurrence of an Event of Default. Each of the Lender and the Borrower shall have the right (but not the obligation) to bid for and purchase any or all Collateral at any public or private sale. The Borrower hereby agrees that in any sale of any of the Collateral, the Lender is hereby authorized to comply with any limitation or restriction in connection with such sale as it may be advised by counsel is necessary in order to avoid any violation of applicable law (including, without limitation, compliance with such procedures as may restrict the number of prospective bidders and purchasers, require that such prospective bidders and purchasers have certain qualifications, and restrict such prospective bidders and purchasers to Persons who will represent and agree that they are purchasing for their own account for investment and not with a view to the distribution or resale of such Collateral), or in order to obtain any required approval of the sale or of the purchaser by any Governmental Authority, and the Borrower further agrees that such compliance shall not result in such sale being considered or deemed not to have been made in a commercially reasonable manner. The Lender shall not be liable for any sale, private or public, conducted in accordance with this Section 8.02(c). If an Event of Default occurs, and upon acceleration of the Loans hereunder, the Loans and all other Obligations shall be immediately due and payable, and collections on the Eligible Servicing Rights and proceeds of sales and securitizations of Eligible Servicing Rights, and other Collateral will be used to pay the Obligations.  Notwithstanding anything herein to the contrary, to the extent any provision of this Section 8.02 conflicts with the Lender’s rights and remedies set forth in the Freddie Mac Acknowledgment Agreement, the Freddie Mac Acknowledgment Agreement shall control.
		

		
			(d)        In the event that Borrower receives a notice from an Agency indicating a material breach, material default or material non-compliance by the Borrower that the Lender reasonably determines may entitle such Agency to terminate the Borrower, which breach, default or non-compliance has not been satisfactorily cured or remedied within ten (10) Business Days of the receipt by the Borrower of such notice, or such lesser time as Lender believes is necessary to protect its interest and provides Borrower with written notice thereof, as the case may be, the
		

		
			
		

		
			

		 

		

			-28-

		

 

		

		
			Lender may by written notice to the Borrower, terminate the Facility and declare all Loans and all other Obligations to be immediately due and payable.
		

		
			Section 8.03    Application of Proceeds.
		

		
			(a)        Reserved.
		

		
			(b)        Reserved.
		

		
			(c)        Reserved.
		

		
			(d)        On each Business Day during which an Event of Default has occurred and is continuing hereunder, the Lender shall apply Collections in the following order to pay:
		

		
			(i)        to the Lender, any fees due pursuant to the terms hereof;
		

		
			(ii)       to the Lender or any Indemnified Party an amount equal to any other amounts (including the Outstanding Aggregate Loan Amount) then due to such Persons pursuant to this Agreement that have not been paid by the Borrower (and to the extent that there are insufficient funds to pay all of the foregoing amounts, such amount shall be distributed to the foregoing parties, pro rata in accordance with the amounts due to such parties); and
		

		
			(iii)      any remaining amounts to the Borrower by transferring such amount to the account specified in writing by the Borrower.
		

		
			ARTICLE IX
		

		
			ASSIGNMENT
		

		
			Section 9.01    Restrictions on Assignments.  The Borrower shall not assign its rights hereunder or any interest herein without the prior written consent of the Lender. The Lender may assign any or all of its rights and its obligations, under this Agreement, under any Loan pursuant to this Agreement or under the other Facility Documents, (i) without consent of the Borrower, to (a) any Affiliate of Lender or a conduit or other entity supported by the Lender or an Affiliate of Lender or (b) following an Event of Default, and (ii) with the Borrower’s prior written consent (not to be unreasonably withheld or delayed), to any other entity; provided, that notwithstanding anything herein to the contrary, Borrower shall not be subject to any increased costs or expenses as a result of such assignment made without Borrower’s consent; provided,  further that, if Lender assigns its rights and obligations to a conduit or other entity supported by the Lender or an Affiliate of Lender, Borrower agrees to cooperate in good faith with Lender to amend the Facility Documents to facilitate such assignment. Notwithstanding anything to the contrary in this Article IX, the parties acknowledge and agree that the Acknowledgment Agreements do not permit any assignments of, or any parties rights, obligations, or interest in, the Acknowledgment Agreements, except pursuant to the express provisions of the related Acknowledgment Agreement.
		

		
			
		

		
			

		 

		

			-29-

		

 

		

		
			Section 9.02    Evidence of Assignment; Endorsement on Note.  The Lender hereby agrees that it shall endorse the Note to reflect any assignments made pursuant to this Article IX or otherwise.
		

		
			Section 9.03    Rights of Assignee.  Upon the assignment the Lender of all of its rights and obligations hereunder, under the Note and under the other Facility Documents to an assignee in accordance with Section 9.01, such assignee shall have all such rights and obligations of the Lender as set forth in such assignment or delegation, as applicable, and all references to the Lender in this Agreement or any Facility Document shall be deemed to apply to such assignee to the extent of such interest. If any interest in any Facility Document is transferred to any assignee which is organized under the laws of any jurisdiction other than the United States or any State thereof, the transferor Lender shall cause such assignee, concurrently with the effectiveness of such transfer, to comply with the provisions of Section 3.02.
		

		
			Section 9.04    Permitted Participants; Effect.
		

		
			(a)        The Lender may, in the ordinary course of its business and in accordance with applicable law, at any time (and from time to time) assign, pledge, hedge, hypothecate, or otherwise sell to one or more banks or other entities (each a “Participant”) all or a portion of participation interests in any Loan owing to the Lender, any Note held by the Lender, any Available Facility Amount of the Lender, or any other interest of the Lender under this Agreement or the other Facility Documents. In the event of any such assignment, pledge, hedge, hypothecation or sale by the Lender of a participating interest to a Participant, (i) the Lender’s obligations hereunder and under the other Facility Documents shall remain unchanged; (ii) the Lender shall remain solely responsible to the Borrower for the performance of such obligations; and (iii) the Lender shall remain the owner of its Loans and the holder of any Note issued to it in evidence thereof for the purposes under the Facility Documents. All amounts payable by the Borrower under this Agreement shall be determined as if the Lender had not assigned, pledged, hedged, hypothecated or otherwise sold such participating interests. The Borrower and the Lender shall continue to deal solely and directly with each other in connection with the Lender’s rights and obligations under the Facility Documents.
		

		
			(b)        Any agreement or instrument pursuant to which Lender sells such a participation shall provide that Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver described in Section 11.01 that affects such Participant.  The Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.06,  3.02 and 10.1 (subject to the requirements and limitations therein, including the requirements under Section 3.02(d) (it being understood that the documentation required under Section 3.02(d) shall be delivered to Lender)) to the same extent as if it were the Lender and had acquired its interest by assignment pursuant to Section 9.01; provided that such Participant shall not be entitled to receive any greater payment under Sections 2.06 or 3.02 with respect to any participation than Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the Participant acquired the applicable participation. To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 11.12 as though it were the Lender. Lender shall, acting solely for this
		

		
			
		

		
			

		 

		

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			purpose as a non-fiduciary agent of Borrower, maintain a register on which it enters the interest in the Loans or other obligations under the Facility Documents (the “Participant Register”); provided that Lender shall not have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant’s interest in any commitments, loans, letters of credit or its other obligations under any Facility Documents) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Department regulations.  The entries in the Participant Registrar shall be conclusive absent manifest error, and Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.
		

		
			Section 9.05    Voting Rights of Participants.  The Lender shall retain the sole right to approve, without the consent of any Participant, any amendment, modification or waiver of any provision of the Facility Documents other than any amendment, modification, or waiver with respect to any Loan or Available Facility Amount in which such Participant has an interest which forgives principal, interest, or fees or reduces the interest rate or fees payable with respect to any such Loan or Available Facility Amount, extends the Wind Down Date, postpones any date fixed for any regularly scheduled payment of principal of, or interest or fees on, any such Loan or Available Facility Amount or releases all or substantially all of the Collateral (other than as expressly permitted pursuant to the Facility Documents).
		

		
			ARTICLE X
		

		
			INDEMNIFICATION
		

		
			Section 10.01  Indemnities by the Borrower.  Without limiting any other rights which any such Person may have hereunder or under applicable law, the Borrower hereby agrees to indemnify, the Lender, its Affiliates, successors, permitted transferees and assigns and all officers, directors, shareholders, controlling persons, employees and agents of any of the foregoing (each an “Indemnified Party”), forthwith on demand, from and against any and all damages, losses, claims, liabilities and related costs and expenses, including attorneys’ fees and disbursements (all of the foregoing being collectively referred to as “Indemnified Amounts”) awarded against or incurred by any of them arising out of or as a result of this Agreement, the other Facility Documents, or any transaction contemplated hereby or thereby excluding, however, (a) Indemnified Amounts to the extent a court of competent jurisdiction determines that they resulted from gross negligence, bad faith or willful misconduct on the part of such Indemnified Party, (b) in the event that the Lender has assigned its rights or delegated its obligations in respect of this Agreement, and the Indemnified Amounts with respect to such assignee exceed the Indemnified Amounts that would otherwise have been payable by the Borrower to the Lender, the amount of such excess, (c) taxes expressly excluded from Taxes in Section 3.02(a) above (other than any such Taxes that are incremental and arise solely by reason of a breach by the Borrower of its obligations under this Agreement), and (d) any lost profits or indirect, exemplary, punitive or consequential damages of any Indemnified Party. In any suit, proceeding or action brought by the Lender in connection with any Collateral for any sum owing thereunder, or to enforce any provisions of any Collateral, the Borrower will save, indemnify and hold the Lender harmless from
		

		
			
		

		
			

		 

		

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			and against all expense, loss or damage suffered by reason of any defense, set-off, counterclaim, recoupment or reduction or liability whatsoever of the account debtor or obligor thereunder, arising out of a breach by the Borrower of any obligation thereunder or arising out of any other agreement, indebtedness or liability at any time owing to or in favor of such account debtor or obligor or its successors from the Borrower. The Borrower also agrees to reimburse the Lender as and when billed by the Lender for all the Lender’s out-of-pocket costs and expenses incurred in connection with the enforcement or the preservation of the Lender’s rights under this Agreement, the Note, any other Facility Document or any transaction contemplated hereby or thereby, including without limitation the fees and disbursements of its counsel. The Borrower hereby acknowledges that, notwithstanding the fact that the Note is secured by the Collateral, the obligation of the Borrower under the Note is a recourse obligation of the Borrower. Under no circumstances shall any Indemnified Party be liable to the Borrower for any lost profits or indirect, exemplary, punitive or consequential damages.
		

		
			Section 10.02  General Provisions.  If for any reason the indemnification provided above in Section 10.01 (and subject to the limitations on indemnification contained therein) is unavailable to an Indemnified Party or is insufficient to hold an Indemnified Party harmless on the basis of public policy, then the Borrower shall contribute to the amount paid or payable by such Indemnified Party as a result of such loss, claim, damage or liability in such proportion as is appropriate to reflect not only the relative benefits received by such Indemnified Party on the one hand and the Borrower on the other hand but also the relative fault of such Indemnified Party as well as any other relevant equitable considerations.
		

		
			The provisions of this Article X shall survive the termination of this Agreement and the payment of the Obligations.
		

		
			ARTICLE XI
		

		
			MISCELLANEOUS
		

		
			Section 11.01  Amendments, Etc.  Neither this Agreement nor any provision hereof may be amended, supplemented, or modified except pursuant to an agreement or agreements in writing entered into by the Borrower and the Lender.
		

		
			Section 11.02  Notices, Etc.  Except as provided herein, all notices required or permitted by this Agreement shall be in writing (including without limitation by Electronic Transmission, email or facsimile) and shall be effective and deemed delivered only when received by the party to which it is sent; provided that notices of Events of Default and exercise of remedies or under Section 8.02 shall be sent via overnight mail and by electronic transmission. Any such notice shall be sent to a party at the address, electronic mail or facsimile transmission number set forth on Schedule 11.02 or to such other address, e-mail address or facsimile number as either party may notify to the others in writing from time to time.
		

		
			Section 11.03  No Waiver; Remedies.  No failure on the part of the Lender to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the
		

		
			
		

		
			

		 

		

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			exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided by law.
		

		
			Section 11.04  Binding Effect; Assignability.  This Agreement shall be binding upon and inure to the benefit of the Borrower and the Lender, and their respective successors and assigns, provided,  however, that nothing in the foregoing shall be deemed to authorize any assignment not permitted in Section 9.01.
		

		
			Section 11.05   GOVERNING LAW; SUBMISSION TO JURISDICTION. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW, WHICH BY ITS TERMS APPLIES TO THIS AGREEMENT). EACH PARTY HERETO HEREBY SUBMITS TO THE NON-EXCLUSIVE GENERAL JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK LOCATED IN THE BOROUGH OF MANHATTAN, THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK, AND APPELLATE COURTS FROM ANY THEREOF FOR PURPOSES OF ALL LEGAL PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH PARTY HERETO IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT IN THE BOROUGH OF MANHATTAN AND ANY CLAIM THAT ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. EACH PARTY HERETO HEREBY CONSENTS TO PROCESS BEING SERVED IN ANY SUIT, ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT, OR ANY DOCUMENT DELIVERED PURSUANT HERETO BY THE MAILING OF A COPY THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, RETURN RECEIPT REQUESTED, TO ITS RESPECTIVE ADDRESS SPECIFIED AT THE TIME FOR NOTICES UNDER THIS AGREEMENT OR TO ANY OTHER ADDRESS OF WHICH IT SHALL HAVE GIVEN WRITTEN OR ELECTRONIC NOTICE TO THE OTHER PARTIES. THE FOREGOING SHALL NOT LIMIT THE ABILITY OF ANY PARTY HERETO TO BRING SUIT IN THE COURTS OF ANY OTHER JURISDICTION.
		

		
			EACH OF THE PARTIES HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO A TRIAL BY JURY WITH RESPECT TO ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT.
		

		
			Section 11.06  Entire Agreement.  This Agreement and the Facility Documents embodies the entire agreement and understanding of the parties hereto and supersedes any and all prior agreements, arrangements and understanding relating to the matters provided for herein.
		

		
			Section 11.07  Acknowledgement.  The Borrower hereby acknowledges that:
		

		
			(a)        it has been advised by counsel in the negotiation, execution and delivery of this Agreement, the Note and the other Facility Documents to which it is a party;
		

		
			
		

		
			

		 

		

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			(b)        the Lender has no fiduciary relationship to the Borrower, and the relationship between the Borrower and the Lender is solely that of debtor and creditor; and
		

		
			(c)        no joint venture exists among or between the Lender and the Borrower.
		

		
			Section 11.08  Captions and Cross References.  The various captions (including, without limitation, the table of contents) in this Agreement are included for convenience only and shall not affect the meaning or interpretation of any provision of this Agreement. References in this Agreement to any underscored Section or Exhibit are to such Section or Exhibit of this Agreement, as the case may be.
		

		
			Section 11.09  Execution in Counterparts.  This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute one and the same agreement.
		

		
			Section 11.10  Confidentiality.  Each party hereto agrees for the benefit of the other party that it will hold any confidential information received from the other party pursuant to this Agreement or any other Facility Document in strict confidence, as long as such information remains confidential except for disclosure to (i) its Affiliates, (ii) its legal counsel, accountants, and other professional advisors or to a permitted assignee or participant, (iii) regulatory officials, (iv) any Person as requested pursuant to or as required by law, regulation, legal process, or the rules and regulations of any Governmental Authority or stock exchange, (v) any Person in connection with any legal proceeding to which it is a party, (vi) rating agencies if requested or required by such agencies in connection with a rating, (vii) any Agency and (viii) any prospective or actual assignee or participant hereunder (including any prospective or actual credit hedge counterparty) (for so long as such party has executed a confidentiality or non-disclosure agreement substantially similar to the terms and provisions of this Section 11.10). The parties agree that this Agreement is confidential information of the Lender. The Lender also agrees that it will comply with all applicable securities laws with respect to any non-public information of the type referenced in the preceding sentence in its possession. This Section 11.10 shall survive termination of this Agreement.
		

		
			Notwithstanding anything to the contrary in this Section 11.10, in the event of a conflict between the confidentiality provisions of this Agreement and the other Facility Documents (other than the Freddie Mac Acknowledgment Agreement), on the one hand, and the confidentiality provisions of the Freddie Mac Acknowledgment Agreement, on the other hand, the confidentiality provisions of the Freddie Mac Acknowledgment Agreement shall control, but only to the extent applicable as provided in the Freddie Mac Acknowledgment Agreement.
		

		
			Section 11.11  Survival.  This Agreement shall remain in effect until the Termination Date; provided, however, that no such termination shall affect Borrower’s Obligations to Lender at the time of such termination. The obligations of the Borrower under Sections 3.02,  10.01 and 11.10 hereof shall survive the repayment of the Loans and the termination of this Agreement. In addition, each representation and warranty made, or deemed to be made by a request for a borrowing, herein or pursuant hereto shall survive the making of such representation and warranty, and the Lender shall not be deemed to have waived, by reason of making any Loan, any Default that may arise by
		

		
			
		

		
			

		 

		

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			reason of such representation or warranty proving to have been false or misleading, notwithstanding that the Lender may have had notice or knowledge or reason to believe that such representation or warranty was false or misleading at the time such Loan was made
		

		
			Section 11.12  Set-Off.  In addition to any rights and remedies of the Lender provided by this Agreement and by law, the Lender shall have the right, without prior notice to Borrower, any such notice being expressly waived by Borrower to the extent permitted by applicable law, upon any amount becoming due and payable by Borrower hereunder (whether at the stated maturity, by acceleration or otherwise), to set-off and appropriate and apply against such amount any and all Property and deposits (general or special, time or demand, provisional or final), in any currency, and any other credits, indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or contingent, matured or unmatured, at any time held or owing by the Lender or any Affiliate thereof to or for the credit or the account of Borrower; provided, that the Lender’s right to set-off in relation to Freddie Mac Servicing Rights shall be permitted solely upon receipt of Surplus Proceeds (as such term is defined in the Freddie Mac Acknowledgment Agreement). Lender may set-off cash, the proceeds of the liquidation of any Collateral and all other sums or obligations owed by the Lender or its Affiliates to Borrower against all of Borrower’s obligations to the Lender or its Affiliates under this Agreement with respect to Borrower or under any other agreement between the parties or between Borrower and any affiliate of the Lender, or otherwise whether or not such obligations are then due, without prejudice to the Lender’s or its Affiliate’s right to recover any deficiency. Lender agrees promptly to notify Borrower after any such set-off and application made by the Lender; provided that the failure to give such notice shall not affect the validity of such set-off and application.
		

		
			Section 11.13  Guaranty.
		

		
			(a)        Subject to Section 11.13(h) below, Guarantor hereby unconditionally and irrevocably guarantees to Lender the prompt payment of the Guaranteed Obligations in full when due (whether at the stated maturity, by acceleration or otherwise). Any such payment shall be made at such place and in the same currency as such relevant Guaranteed Obligation is payable. This guaranty is a guaranty of payment and not solely of collection and is a continuing guaranty and shall apply to all Guaranteed Obligations whenever arising.
		

		
			(b)        The obligations of the Guarantor hereunder are absolute and unconditional, irrespective of the value, genuineness, validity, regularity or enforceability of this Agreement, or any other agreement or instrument referred to herein, to the fullest extent permitted by Applicable Law, irrespective of any other circumstance whatsoever which might otherwise constitute a legal or equitable discharge or defense of a surety or guarantor. Guarantor agrees that this guaranty may be enforced by Lender without the necessity at any time of resorting to or exhausting any security or collateral and without the necessity at any time of having recourse to this Agreement or any other Facility Document or any collateral, if any, hereafter securing the Guaranteed Obligations or otherwise and Guarantor hereby waives the right to require Lender to proceed against any other Person or to require the Lender to pursue any other remedy or enforce any other right. Guarantor further agrees that nothing contained herein shall prevent Lender from suing in any jurisdiction on this Agreement or any other Facility Document or foreclosing its security interest in or Lien on any collateral, if any, securing the Guaranteed Obligations or from exercising any other rights available to it under this Agreement or any instrument of security, if any, and the exercise of any
		

		
			
		

		
			

		 

		

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			of the aforesaid rights and the completion of any foreclosure proceedings shall not constitute a discharge of Guarantor’s obligations hereunder; it being the purpose and intent of Guarantor that its obligations hereunder shall be absolute, independent and unconditional under any and all circumstances. Neither Guarantor’s obligations under this guaranty nor any remedy for the enforcement thereof shall be impaired, modified, changed or released in any manner whatsoever by reason of the application of the laws of any foreign jurisdiction. Guarantor waives any and all notice of the creation, renewal, extension or accrual of any of the Guaranteed Obligations and notice of or proof of reliance of by Lender upon this guaranty or acceptance of this guaranty. The Guaranteed Obligations, and any of them, shall conclusively be deemed to have been created, contracted or incurred, or renewed, extended, amended or waived, in reliance upon this guaranty. All dealings between Borrower and Guarantor, on the one hand, and Lender, on the other hand, likewise shall be conclusively presumed to have been had or consummated in reliance upon this guaranty.
		

		
			(c)        Guarantor agrees that (a) all or any part of the security which hereafter may be held for the Guaranteed Obligations, if any, may be exchanged, compromised or surrendered from time to time; (b) the Lender shall not have any obligation to protect, perfect, secure or insure any such security interests or Liens which hereafter may be held, if any, for the Guaranteed Obligations or the properties subject thereto; (c) the time or place of payment of the Guaranteed Obligations may be changed or extended, in whole or in part, to a time certain or otherwise, and may be renewed, increased or accelerated, in whole or in part; (d) Borrower and any other party liable for payment under this Agreement may be granted indulgences generally; (e) any of the provisions of this Agreement or any other Facility Document may be modified, amended or waived; and (f) any deposit balance for the credit of Borrower or any other party liable for the payment of the Guaranteed Obligations or liable upon any security therefor may be released, in whole or in part, at, before or after the stated, extended or accelerated maturity of the Guaranteed Obligations, all without notice to or further assent by Guarantor, which shall remain bound thereon, notwithstanding any such exchange, compromise, surrender, extension, renewal, acceleration, modification, indulgence or release.
		

		
			(d)        Guarantor expressly waives to the fullest extent permitted by Applicable Law: (a) notice of acceptance of this guaranty by the Lender and of all transfers of funds to Borrower by Lender; (b) presentment and demand for payment or performance of any of the Guaranteed Obligations; (c) protest and notice of dishonor or of default (except as specifically required in this Agreement) with respect to the Guaranteed Obligations or with respect to any security therefor; (d) notice of Lender obtaining, amending, substituting for, releasing, waiving or modifying any Lien, if any, hereafter securing the Guaranteed Obligations, or Lender’s subordinating, compromising, discharging or releasing such Liens, if any; (e) all other notices to which Borrower might otherwise be entitled in connection with the guaranty evidenced by this Section 11.13; and (f) demand for payment under this guaranty.
		

		
			(e)        The obligations of Guarantor under this Section 11.13 shall be automatically reinstated if and to the extent that for any reason any payment by or on behalf of any Person in respect of the Guaranteed Obligations is rescinded or must be otherwise restored by any holder of any of the Guaranteed Obligations, whether as a result of any proceedings in bankruptcy or reorganization or otherwise, and Guarantor agrees that it will indemnify Lender on demand for all reasonable and documented costs and out-of-pocket expenses (including, without limitation,
		

		
			
		

		
			

		 

		

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			reasonable and documented fees and expenses of counsel) incurred by Lender in connection with such rescission or restoration, including any such costs and expenses incurred in defending against any claim alleging that such payment constituted a preference, fraudulent transfer or similar payment under any bankruptcy, insolvency or similar law.
		

		
			(f)        Guarantor agrees that, as between Guarantor, on the one hand, and Lender, on the other hand, the Guaranteed Obligations may be declared to be forthwith due and payable as provided in Section 8.02 (and shall be deemed to have become automatically due and payable in the circumstances provided in Section 8.02) notwithstanding any stay, injunction or other prohibition preventing such declaration (or preventing such Guaranteed Obligations from becoming automatically due and payable) as against any other Person and that, in the event of such declaration (or such Guaranteed Obligations being deemed to have become automatically due and payable), such Guaranteed Obligations (whether or not due and payable by any other Person) shall forthwith become due and payable by Guarantor.
		

		
			(g)        Guarantor hereby agrees that until the payment and satisfaction in full of all Guaranteed Obligations and the expiration and termination of the this Agreement it shall not exercise any right or remedy arising by reason of any performance by it of its guarantee in Section 11.13(a), whether by subrogation or otherwise, against Borrower or any security for any of the Guaranteed Obligations.
		

		
			(h)        Notwithstanding any provision to the contrary contained herein, to the extent the obligations of Guarantor shall be adjudicated to be invalid or unenforceable for any reason (including, without limitation, because of any Applicable Law relating to fraudulent conveyances or transfers) then the obligations of Guarantor hereunder shall be limited to the maximum amount that is permissible under Applicable Law (as now or hereinafter in effect).
		

		
			[SIGNATURE PAGE FOLLOWS]
		

		
			 
		

		
			 
		

		
			

		 

		

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			IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their respective officers thereunto duly authorized, as of the date first above written.
		

			
					
						 

					
					
						PENNYMAC LOAN SERVICES, LLC, as

				
	
					
						 

					
					
						     Borrower and Servicer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Pamela Marsh

				
	
					
						 

					
					
						    Name:  Pamela Marsh

				
	
					
						 

					
					
						    Title:    Managing Director, Treasurer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						PRIVATE NATIONAL MORTGAGE

				
	
					
						 

					
					
						     ACCEPTANCE COMPANY, LLC, as

				
	
					
						 

					
					
						     Guarantor

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Pamela Marsh

				
	
					
						 

					
					
						    Name:  Pamela Marsh

				
	
					
						 

					
					
						    Title:    Managing Director, Treasurer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						CREDIT SUISSE AG, CAYMAN ISLANDS

				
	
					
						 

					
					
						     BRANCH, as Lender

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Margaret Dellafera

				
	
					
						 

					
					
						    Name:  Margaret Dellafera

				
	
					
						 

					
					
						    Title:    Authorized Signatory

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Patrick J. Hart

				
	
					
						 

					
					
						    Name:  Patrick J. Hart

				
	
					
						 

					
					
						    Title:    Authorized Signatory

				

		
			 
		

		
			

		 

		

			Signature Page to Loan and Security Agreement 

		

		

			(Credit Suisse-PennyMac Loan Services)

		

 

		

		
			SCHEDULE I
		

		
			DEFINITIONS
		

		
			1.1       Definitions.  As used in this Agreement the following terms have the meanings as indicated:
		

		
			“Accepted Servicing Practices” means, with respect to any Mortgage Loan, those mortgage servicing practices of prudent mortgage lending institutions which service mortgage loans of the same type as such Mortgage Loan in the jurisdiction where the related Mortgaged Property is located.
		

		
			“Acknowledgment Agreement” means an Acknowledgment Agreement, by and among an Agency, the Borrower and the Lender as secured party, pursuant to which the Agency acknowledges the security interest granted pursuant to this Agreement of the Lender in the Servicing Rights related to pools of mortgage loans securitized with such Agency, together with any amendments and addenda thereto.
		

		
			“Adjusted Tangible Net Worth” has the meaning set forth in the Pricing Side Letter.
		

		
			“Advance” means any P&I Advance, T&I Advance or Corporate Advance.
		

		
			“Advance Rate”  has the meaning assigned to it in the Pricing Side Letter.
		

		
			“Affiliate” means, with respect to any Person, any other Person which, directly or indirectly, controls, is controlled by, or is under common control with, such Person. For purposes of this definition, “control” (together with the correlative meanings of “controlled by” and “under common control with”) means possession, directly or indirectly, of the power (a) to vote 20% or more of the securities (on a fully diluted basis) having ordinary voting power for the directors or managing general partners (or their equivalent) of such Person, or (b) to direct or cause the direction of the management or policies of such Person, whether through the ownership of voting securities, by contract, or otherwise; provided, however, that in respect of Borrower, Servicer, or Guarantor the term “Affiliate” shall include only Private National Mortgage Acceptance Company, LLC and its wholly owned subsidiaries.
		

		
			“Agreement” has the meaning set forth in the preamble.
		

		
			“Agency” means Fannie Mae, Freddie Mac or Ginnie Mae, as applicable.
		

		
			“Agency Guide” with respect to (1) Fannie Mae, the Fannie Mae Selling Guide and the Fannie Mae Servicing Guide, as may be amended from time to time, (2) Freddie Mac, the Freddie Mac Single-Family Seller/Servicer Guide, as may be amended or modified from time to time and (3) with respect to Ginnie Mae, the Ginnie Mae MBS Guide, as may be amended from time to time, and in all cases, any other applicable guides published by such Agency and any related announcements, directives and correspondence issued by such Agency.
		

		
			“Agency Security” means a mortgage-backed security issued by an Agency.
		

		
			
		

		
			

		 

		

			SCHEDULE I - 1

		

 

		

		
			“Agency Servicing Rights” means all Servicing Rights with respect to the Agencies.
		

		
			“Ancillary Income” means all money which is due and payable in connection with each Mortgage Loan other than the Servicing Fee and specifically including, without limitation, late charge fees, assignment transfer fees, insufficient funds check charges, amortization schedule fees, interest from escrow accounts and all other incidental fees and charges and any Float Benefit, in each case, to the extent such amounts are allocable to a Mortgage Loan, specifically excluding Excluded Collateral.
		

		
			“Applicable Law” means as to any Person, any law, treaty, rule or regulation (including the Investment Company Act of 1940, as amended) or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject.
		

		
			“Applicable Margin”  has the meaning assigned to it in the Pricing Side Letter.
		

		
			“Available Facility Amount” has the meaning assigned to it in the Pricing Side Letter.
		

		
			“Available Loan Amount” means, on any Business Day, an amount equal to the lesser of (a) (i) the then current Available Facility Amount minus (ii) the Outstanding Aggregate Loan Amount, and (b) the Borrowing Base (giving effect to all Collateral to be pledged hereunder on such Business Day).
		

		
			“Board” means the Board of Governors of the Federal Reserve System of the United States of America.
		

		
			“Borrower” has the meaning set forth in the preamble.
		

		
			“Borrower Funding Request” means the request to fund a Loan on any Funding Date, substantially in the form of Exhibit 2.03, delivered in accordance with Section 2.03(a).
		

		
			“Borrower Party” means each of Borrower and Guarantor.
		

		
			“Borrowing Base” means, as of any date of determination, an amount equal to the aggregate Collateral Value of all Collateral for Loans that have been and remain pledged to the Lender hereunder.
		

		
			“Borrowing Base Deficiency” has the meaning set forth in Section 2.08(b).
		

		
			“Borrowing Base Report” means the borrowing base report, substantially in a format agreed upon between Borrower and Lender, delivered by the Lender in accordance with Section 2.04.
		

		
			“Borrowing Base Shortfall Day” has the meaning set forth in Section 2.08(b).
		

		
			“Business Day” means any day other than (i) a Saturday or Sunday or (ii) a day upon which the New York Stock Exchange or the Federal Reserve Bank of New York is closed.
		

		
			
		

		
			

		 

		

			SCHEDULE I - 2

		

 

		

		
			“Capital Lease Obligations” means, for any Person, all obligations of such Person to pay rent or other amounts under a lease of (or other agreement conveying the right to use) Property to the extent such obligations are required to be classified and accounted for as a capital lease on a balance sheet of such Person under GAAP, and, for purposes of this Agreement, the amount of such obligations shall be the capitalized amount thereof, determined in accordance with GAAP.
		

		
			“Cash Equivalents” means (a) securities with maturities of 90 days or less from the date of acquisition issued or fully guaranteed or insured by the United States Government or any agency thereof, (b) certificates of deposit and eurodollar time deposits with maturities of 90 days or less from the date of acquisition and overnight bank deposits of Lender or of any commercial bank having capital and surplus in excess of $500,000,000, (c) repurchase obligations of Lender or of any commercial bank satisfying the requirements of clause (b) of this definition, having a term of not more than seven days with respect to securities issued or fully guaranteed or insured by the United States Government, (d) commercial paper of a domestic issuer rated at least “A-1” or the equivalent thereof by S&P or “P-1” or the equivalent thereof by Moody’s and in either case maturing within 90 days after the day of acquisition, (e) securities with maturities of 90 days or less from the date of acquisition issued or fully guaranteed by any state, commonwealth or territory of the United States, by any political subdivision or taxing authority of any such state, commonwealth or territory or by any foreign government, the securities of which state, commonwealth, territory, political subdivision, taxing authority or foreign government (as the case may be) are rated at least “A” by S&P or “A” by Moody’s, (f) securities with maturities of 90 days or less from the date of acquisition backed by standby letters of credit issued by Lender or any commercial bank satisfying the requirements of clause (b) of this definition or (g) shares of money market mutual or similar funds which invest exclusively in assets satisfying the requirements of clauses (a) through (f) of this definition.
		

		
			“Change in Law” means a change in any Applicable Law applicable to the Facility Documents that would have an adverse effect, as determined by Lender in its sole discretion, on Lender’s exercise of remedies following an Event of Default.
		

		
			“Change of Control”  (i) for the Borrower (a) any transaction or event as a result of which the Guarantor ceases to own, beneficially or of record, more than 50% of the stock of Borrower, (b) the Disposition of all or substantially all of Borrower’s assets (excluding any such action taken in connection with any securitization transaction or routine sales of Mortgage Loans), or (c) the consummation of a merger or consolidation of Borrower with or into another entity or any other corporate reorganization, if more than 50% of the combined voting power of the continuing or surviving entity’s equity outstanding immediately after such merger, consolidation or such other reorganization is owned by persons who were not equityholders of the Borrower immediately prior to such merger, consolidation or other reorganization and (ii) for the Guarantor (a) the Disposition of all or substantially all of Guarantor’s assets (excluding any such action taken in connection with any securitization transaction or routine sales of Mortgage Loans) or (b) the consummation of a merger or consolidation of Guarantor with or into another entity or any other corporate reorganization, if more than 50% of the combined voting power of the continuing or surviving entity’s equity outstanding immediately after such merger, consolidation or such other reorganization is owned by persons who were not equityholders of the Guarantor immediately prior to such merger, consolidation or other reorganization.
		

		
			
		

		
			

		 

		

			SCHEDULE I - 3

		

 

		

		
			“Closing Date” means the date on which all of the conditions set out in Section 5.01 are satisfied.
		

		
			“Code” means the Internal Revenue Code of 1986, as amended.
		

		
			“Collateral” has the meaning set forth in Section 4.01.
		

		
			“Collateral Reporting Date” has the meaning set forth in Section 2.03(b).
		

		
			“Collateral Value” means, for purposes of determining the value of the Borrowing Base from time to time, with respect to the Eligible Servicing Rights, (a) (i) the Advance Rate for Eligible Servicing Rights, multiplied by (ii) the MSR Value of the Eligible Servicing Rights, minus (b) any outstanding repurchase and indemnity obligations under the related Servicing Contract that are due and payable by the Borrower, but have not yet been paid by the Borrower.
		

		
			“Collections” means any Servicing Fees, any excess servicing or subservicing rights or retained yield, and any Ancillary Income that the Borrower as servicer is entitled to receive pursuant to the Servicing Contracts.
		

		
			“Compliance Certificate” means a certificate substantially in the form of Exhibit A to the MLRA Pricing Side Letter or other form reasonably acceptable to the Lender.
		

		
			“Corporate Advance” means, collectively, (a) any advance (other than those described in clause (b) below) made by the Borrower as servicer pursuant to the Servicing Contracts to inspect, protect, preserve or repair properties that secure defaulted Mortgage Loans or that have been acquired through foreclosure or deed in lieu of foreclosure or other similar action pending disposition thereof, or for similar or related purposes, including, but not limited to, necessary legal fees and costs expended or incurred by the Borrower as servicer in connection with foreclosure, bankruptcy, eviction or litigation actions with or involving Mortgagors on defaulted Mortgage Loans, as well as costs to obtain clear title to such a property, to protect the priority of the lien created by a Mortgage Loan on such a property, and to dispose of properties taken through foreclosure or by deed in lieu thereof or other similar action, (b) any advance made by the Borrower as servicer pursuant to the Servicing Contracts to foreclose or undertake similar action with respect to a Mortgage Loan, and (c) any other out of pocket expenses incurred by the Borrower as servicer pursuant to the Servicing Contracts (including, for example, costs and expenses incurred in loss mitigation efforts and in processing assumptions of Mortgage Loans), to the extent such advances are reimbursable pursuant to the Servicing Contracts.
		

		
			“CSCIB” means Credit Suisse AG, Cayman Islands Branch.
		

		
			“CSFB” means Credit Suisse First Boston Mortgage Capital LLC.
		

		
			“Custodial File” means with respect to any Mortgage Loan, a file pertaining to such Mortgage Loan being held by the Custodian that contains the mortgage documents pertaining to such Mortgage Loan.
		

		
			“Custodian” means any financial institution that holds documents for any of the Mortgage Loans on behalf of an Agency.
		

		
			
		

		
			

		 

		

			SCHEDULE I - 4

		

 

		

		
			“Default” means an Event of Default or an Unmatured Event of Default.
		

		
			“Default Rate” means, with respect to any Loan for any Interest Period, and any late payment of fees or other amounts due hereunder, the LIBOR Rate for the related Interest Period (or for all successive Interest Periods during which such fees or other amounts were delinquent), plus 5.0% per annum.
		

		
			“Disposition” means, with respect to any Person, any sale or other whole or partial conveyance of all or any portion of such Person’s Property, or any direct or indirect interest therein to a third party, including the granting of any purchase options, rights of first refusal, rights of first offer or similar rights in respect of any portion of such assets or the subjecting of any portion of such assets to restrictions on transfer.
		

		
			“Dollars”  or “$”  means dollars in lawful money of the United States of America.
		

		
			“Electronic File” means any electronic file, in form and substance reasonably acceptable to the Lender and containing the information agreed to between the Borrower and the Lender; delivered by the Borrower to the Lender on a  Funding Notice Date or Collateral Reporting Date pursuant to Section 2.03(a) or 2.03(b) and reflecting those Mortgage Loans related to Pledged Servicing Rights as of the close of business on such Funding Notice Date; provided,  however, that with regard to the Electronic File delivered in connection with a Collateral Reporting Date,  such Electronic File shall reflect information as of the close of business on the last Business Day of the preceding calendar month.
		

		
			“Electronic Transmission” means the delivery of information in an electronic format acceptable to the applicable recipient thereof. An Electronic Transmission shall be considered written notice for all purposes hereof (except when a request or notice by its terms requires delivery of an original executed document).
		

		
			“Eligible Seller” means a Person who sold Mortgage Loans to the Borrower, which Mortgage Loans the Borrower subsequently resold to another party or securitized, and retained the servicing rights and obligations with respect thereto under the Servicing Contracts.
		

		
			“Eligible Servicing Rights” means, Servicing Rights owned by Borrower that are either (i) appurtenant to mortgage loans that have been sold to Fannie Mae or Freddie Mac or otherwise delivered to Fannie Mae or Freddie Mac for inclusion in a securitization by Fannie Mae or Freddie Mac, and are serviced by Borrower, (ii) appurtenant to mortgage loans (1) which were, but are no longer, pooled in securitizations by Fannie Mae or Freddie Mac, (2) which are currently owned by Fannie Mae or Freddie Mac in portfolio and (3) for which Borrower is acting as the servicer, (iii) appurtenant to mortgage loans owned by Borrower and not subject to any lien or other encumbrance, which mortgage loans are eligible for pooling with Fannie Mae or Freddie Mac, or (iv) appurtenant to mortgage loans that are serviced by the Borrower and are either securitized in a non-agency securitization with respect to which the Lender has approved the related PSA or held in whole loan format and either owned by the Borrower or servicing pursuant to a servicing agreement approved by the Lender; provided that all such mortgage loans shall be “qualified mortgages” or otherwise approved by the Lender for inclusion. In addition, all Eligible Servicing Rights must comply with the eligibility criteria set out in Schedule 6.02.
		

		
			
		

		
			

		 

		

			SCHEDULE I - 5

		

 

		

		
			“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time.
		

		
			“ERISA Affiliate” means any corporation or trade or business that, together with Borrowers or Guarantor is treated as a single employer under Section 414(b) or (c) of the Code or solely for purposes of Section 302 of ERISA and Section 412 of the Code is treated as a single employer described in Section 414 of the Code.
		

		
			“Event of Default” has the meaning set forth in Section 8.01.
		

		
			“Excluded Collateral” means all right, title and interest of the Borrower, whether now owned or hereafter acquired, in, to and under its rights to reimbursement for all Advances made under the Servicing Contracts.
		

		
			“Facility” means the loan facility provided to the Borrower by the Lender pursuant to this Agreement.
		

		
			“Facility Documents” means this Agreement, the Note, the Pricing Side Letter, the Servicing Contracts, each Acknowledgment Agreement, the Subservicer Acknowledgment Letter, any Subservicing Agreement and all notices, certificates, financing statements and other documents to be executed and delivered by the Borrower in connection with the transactions contemplated by this Agreement. For the avoidance of doubt, the Program Documents (as defined in the Repo Agreement) shall not be deemed Facility Documents.
		

		
			“Fannie Mae” means The Federal National Mortgage Association, also known as Fannie Mae, or any successor thereto.
		

		
			“Fannie Mae Acknowledgment Agreement” means any Acknowledgment Agreement in respect of any Fannie Mae Servicing Rights.
		

		
			“Fannie Mae Servicing Contract” means the Fannie Mae Mortgage Selling and Servicing Contract, the Fannie Mae Servicing Guide, the Fannie Mae Selling Guide and all related supplemental servicing instructions or directives provided by Fannie Mae and all applicable master agreements, recourse agreements, repurchase agreements, loss sharing agreements and any indemnification agreements (including applicable MBS pool purchase contracts and variances) and any other agreements between Fannie Mae and the Borrower, all as amended, restated or supplemented from time to time.
		

		
			“Fannie Mae Servicing Rights” means all Servicing Rights with respect to mortgage loans serviced by the Borrower for Fannie Mae.
		

		
			“FATCA” means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Code and any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental Authorities and implementing such Sections of the Code.
		

		
			
		

		
			

		 

		

			SCHEDULE I - 6

		

 

		

		
			“FHA” means the Federal Housing Administration, an agency within the United States Department of Housing and Urban Development, or any successor thereto, and including the Federal Housing Commissioner and the Secretary of Housing and Urban Development where appropriate under the FHA Regulations.
		

		
			“FHA Approved Mortgagee” means a corporation or institution approved as a mortgagee by the FHA under the National Housing Act, as amended from time to time, and applicable FHA Regulations, and eligible to own and service mortgage loans such as the FHA Loans.
		

		
			“Float Benefit” means the net economic benefit resulting from investments of funds representing escrow and custodial deposits held for the account of the servicer or subservicer, or the related Agency relating to the Mortgage Loans.
		

		
			“Foreign Lender” means any successor or assignee of Lender that is organized under the laws of a jurisdiction other than that in which the Borrower is resident for tax purposes. For purposes of this definition, the United States of America, each State and Commonwealth thereof and the District of Columbia shall be deemed to constitute a single jurisdiction.
		

		
			“Freddie Mac” means The Federal Home Loan Mortgage Corporation, also known as Freddie Mac, or any successor thereto.
		

		
			“Freddie Mac Acknowledgment Agreement” means any Acknowledgment Agreement in respect of any Freddie Mac Servicing Rights, which shall initially include single family mortgages which are serviced by the Borrower for Freddie Mac under the Freddie Mac Servicing Contract with respect to the following Seller/Servicer Number:  153780.
		

		
			“Freddie Mac Servicing Contract” means (i) the Purchase Contract (as defined in the Freddie Mac Guide), including a Purchase Contract confirmation, by and between Borrower and Freddie Mac, (ii) the Freddie Mac Guide, (iii) any Bulletins (as defined in the Freddie Mac Guide), (iv) any agreement pursuant to which Borrower provides a guaranty or any form of credit enhancement in connection with the sale of mortgage loans to Freddie Mac, (v) the Servicer Success Scorecard (as defined in the Freddie May Guide), (vi) any other document designated to be a Purchase Document by Freddie Mac, (vii) the Guide Plus Additional Provisions (as defined in the Freddie Mac Guide), as amended from time to time, and (viii) any other additional terms applicable to the sale of mortgage loans, such as written waivers, amendments or supplements to the Freddie Mac Guide that are made available to Borrower by Freddie Mac through electronic means including sources designated by Freddie Mac for distribution of the Freddie Mac Guide.
		

		
			“Freddie Mac Servicing Rights” means all Servicing Rights with respect to mortgage loans serviced by the Borrower for Freddie Mac.
		

		
			“Funding Date” means the date of any Loan advance hereunder as provided in Section 2.03 hereof.
		

		
			“Funding Notice Date” means the date on which the Borrower shall deliver a Borrower Funding Request, which shall be (i) at least two  (2) Business Days prior to the date which the Borrower has requested as a Funding Date as provided therein, or (ii) if a Borrower Funding
		

		
			
		

		
			

		 

		

			SCHEDULE I - 7

		

 

		

		
			Request relates to new Collateral, at least five (5) Business Days prior to the date which the Borrower has requested as a Funding Date as provided therein.
		

		
			“GAAP” means United States Generally Accepted Accounting Principles inclusive of, but not limited to, applicable statements of Financial Accounting Standards issued by the Financial Accounting Standards Board, its predecessors and successors and SEC Staff Accounting Guidance as in effect from time to time applied on a consistent basis.
		

		
			“Ginnie Mae” means The Government National Mortgage Association, also known as Ginnie Mae, or any successor thereto.
		

		
			“GMSR VF1 Repo” means that certain Master Repurchase Agreement, dated as of December 19, 2016, among CSFB, as administrative agent, CSCIB, as repo buyer, and Borrower, as repo seller.
		

		
			“Governmental Authority” means any nation or government, any state or other political subdivision thereof, any municipality and any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government.
		

		
			“Guarantor” shall mean Private National Mortgage Acceptance Company, LLC, its successors and permitted assigns.
		

		
			“Guarantee” means, as to any Person, any obligation of such Person directly or indirectly guaranteeing any Indebtedness of any other Person or in any manner providing for the payment of any Indebtedness of any other Person or otherwise protecting the holder of such Indebtedness against loss (whether by virtue of partnership arrangements, by agreement to keep-well, to purchase assets, goods, securities or services, or to take-or-pay or otherwise); provided that the term “Guarantee” shall not include (a) endorsements for collection or deposit in the ordinary course of business, or (b) obligations to make servicing advances for delinquent taxes and insurance or other obligations in respect of a Mortgaged Property. The amount of any Guarantee of a Person shall be deemed to be an amount equal to the stated or determinable amount of the primary obligation in respect of which such Guarantee is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by such Person in good faith. The terms “Guarantee” and “Guaranteed” used as verbs shall have correlative meanings.
		

		
			“Guaranteed Obligations” means, without duplication, all of the Obligations of Borrower to Lender, whenever arising, under this Agreement or any other Facility Document (including, but not limited to, obligations with respect to principal, interest and fees).
		

		
			“HUD” means the United States Department of Housing and Urban Development, or any successor thereto.
		

		
			“Indebtedness” means, for any Person: at any time, and only to the extent outstanding at such time: (a) obligations created, issued or incurred by such Person for borrowed money (whether by loan, the issuance and sale of debt securities or the sale of Property to another Person subject to an understanding or agreement, contingent or otherwise, to repurchase such Property from such Person); (b) obligations of such Person to pay the deferred purchase or acquisition price of Property
		

		
			
		

		
			

		 

		

			SCHEDULE I - 8

		

 

		

		
			or services, other than trade accounts payable (other than for borrowed money) arising, and accrued expenses incurred, in the ordinary course of business, so long as such trade accounts payable are payable within 90 days of the date the respective goods are delivered or the respective services are rendered; (c) Indebtedness of others secured by a Lien on the Property of such Person, whether or not the respective Indebtedness so secured has been assumed by such Person; (d) obligations (contingent or otherwise) of such Person in respect of letters of credit or similar instruments issued or accepted by banks and other financial institutions for the account of such Person; (e) Capital Lease Obligations of such Person; (f) obligations of such Person under repurchase agreements, sale/buy-back agreements or like arrangements, including, without limitation, any Indebtedness arising hereunder; (g) Indebtedness of others Guaranteed by such Person; (h) all obligations of such Person incurred in connection with the acquisition or carrying of fixed assets by such Person; (i) Indebtedness of general partnerships of which such Person is a general partner and (j) with respect to clauses (a)-(i) above both on and off balance sheet.
		

		
			“Indemnified Amounts” has the meaning set forth in Section 10.01.
		

		
			“Indemnified Party” has the meaning set forth in Section 10.01.
		

		
			“Initial Borrower Funding Request” means the request to fund the Loan on the Initial Funding Date, substantially in the form of Exhibit 2.03, delivered in accordance with Section 2.03(a), that is current as of the end of the previous calendar month.
		

		
			“Initial Funding Date” means the Funding Date on which the first Loan is made pursuant to this Agreement, as specified in the Initial Borrower Funding Request.
		

		
			“Insolvency Law” means any bankruptcy, reorganization, moratorium, delinquency, arrangement, insolvency, readjustment of debt, dissolution or liquidation law of any jurisdiction in effect at any time during the term of this Agreement.”
		

		
			“Interest Period” means, for any Loan, (i) an initial period beginning on the Funding Date for such Loan and ending on the last day of the calendar month in which such Funding Date occurs; and (ii) subsequent consecutive periods thereafter, beginning on the first day of each subsequent calendar month and ending on the earlier of (x) the last day of the same calendar month in which such Interest Period began and (y) the Wind Down Date; and (iii) subsequent consecutive periods thereafter, beginning on the first day following, initially, the Wind Down Date, and thereafter, each Loan Repayment Date, and ending on the earlier of (x) the next following Loan Repayment Date and (y) the date on which the amount of all Obligations have been reduced to zero.
		

		
			“Interest Rate” means, with respect to all Loans, the LIBOR Rate plus the Applicable Margin.
		

		
			“Investment Company Act” means the Investment Company Act of 1940, as amended, together with the rules and regulations promulgated thereunder.
		

		
			“Lender” means CSCIB.
		

		
			“LIBOR Rate” means for each day, the rate (adjusted for statutory reserve requirements for eurocurrency liabilities) for eurodollar deposits for a period equal to one month appearing on
		

		
			
		

		
			

		 

		

			SCHEDULE I - 9

		

 

		

		
			Bloomberg Screen US 0001M Page or if such rate ceases to appear on Bloomberg Screen US 0001M Page, or any other service providing comparable rate quotations at approximately 11:00 a.m., London time, on the applicable date of determination, or such interpolated rate as determined by the Lender.
		

		
			“Lien” means with respect to any property or asset of any Person (a) any mortgage, lien, pledge, charge or other security interest or encumbrance of any kind in respect of such property or asset or (b) the interest of a vendor or lessor arising out of the acquisition of or agreement to acquire such property or asset under any conditional sale agreement, lease purchase agreement or other title retention agreement, and in each case, other than an Agency’s rights and interests in the related Agency Servicing Rights.
		

		
			“Loan Repayment Date” means, (i) initially, the date that is thirty (30) days after the Wind Down Date, and (ii) thereafter, each date that is thirty (30) days after the immediately preceding Loan Repayment Date.
		

		
			“Loans” has the meaning set forth in Section 2.01.
		

		
			“Margin Call” has the meaning set forth in Section 2.08(b).
		

		
			“Material Adverse Effect” means (a) a material adverse change in, or a material adverse effect upon, the operations, business, properties, condition (financial or otherwise) or prospects of the Borrowers, Subservicer, Guarantor or any Affiliate thereof that is a party to any Facility Documents taken as a whole, (b) a material impairment of the ability of the Borrowers, Subservicer, Guarantor or any Affiliate thereof that is a party to any Facility Document to perform its obligations under any of the Facility Documents to which it is a party and to avoid any Event of Default, or (c) a material adverse effect upon the legality, validity, binding effect or enforceability of any of the Facility Documents against any Borrower Party or any Affiliate thereof that is a party to any Facility Document, as determined by the Lender in its sole discretion.
		

		
			“Maturity Date” means February 1, 2020.
		

		
			“MBS” means mortgage backed securities.
		

		
			“MBS Trust” means any of the trusts or trust estates in which the Mortgage Loans being serviced by the Borrower pursuant to the Servicing Contracts are held by the related MBS Trustee.
		

		
			“MBS Trustee” means a trustee or indenture trustee for an MBS Trust.
		

		
			“MLRA Pricing Side Letter” means that certain Second Amended and Restated Pricing Side Letter, dated as of April 28, 2017, by and among CSFB, CSCIB and Alpine Securitization Ltd., Borrower, and Guarantor with respect to the Repo Agreement.
		

		
			“Monthly Settlement Date” means, (i) initially, the earliest to occur of (a) the twenty-fifth (25th) Business Day of each calendar month, commencing February 25, 2018, and (b) the Wind Down Date, and (ii) following the occurrence of the Wind Down Date, each Loan Repayment Date (or, if such day is not a Business Day, the following Business Day).
		

		
			
		

		
			

		 

		

			SCHEDULE I - 10

		

 

		

		
			“Moody’s” means Moody’s Investors Service, Inc. or its successor in interest.
		

		
			“Mortgage” means a mortgage, mortgage deed, deed of trust, or other instrument creating a first lien on or first priority security interest in an estate in fee simple in real property securing a Mortgage Note including any riders, assumption agreements or modifications relating thereto.
		

		
			“Mortgage File” means, with respect to any Mortgage Loan, a file or files pertaining to such Mortgage Loan that contains the mortgage documents pertaining to such Mortgage Loan including any mortgage documents pertaining to such Mortgage Loan required by the Agency Guides.
		

		
			“Mortgage Loan” means the mortgage loans listed on the Relevant Electronic File (as provided to the Lender pursuant to Section 2.03(a) or 2.03(b)).
		

		
			“Mortgage Note” means the note or other evidence of indebtedness of a Mortgagor secured by a Mortgage pertaining to a Mortgage Loan.
		

		
			“Mortgaged Property” means the real property or leasehold estate, if applicable securing repayment of the debt evidenced by a Mortgage Note.
		

		
			“Mortgagor” means the obligor on a Mortgage Note.
		

		
			“MSR Value” means, with respect to (i) any Eligible Servicing Right included in the Borrowing Base the fair value ascribed to such asset by the Lender in its sole discretion, taking into account any outstanding obligations owed by Borrower to an Agency, as applicable, as marked to market as often as daily, (ii) a Servicing Right which is not an Eligible Servicing Right included in the Borrowing Base, zero. The Lender’s good faith determination of MSR Value shall be conclusive upon the parties, absent manifest error on the part of the Lender. The Borrower acknowledges that the Lender’s determination of MSR Value is for the limited purpose of determining Collateral Value for lending purposes hereunder without the ability to perform customary purchaser’s due diligence and is not necessarily equivalent to a determination of the fair market value of the Eligible Servicing Rights achieved by obtaining competing bids. For the purpose of determining the related MSR Value, the Lender shall have the right to use either the Borrower’s valuation of the Eligible Servicing Rights delivered pursuant to Section 2.04 herein or the Lender’s valuation, or both. Subsequently, Lender shall have the right to reasonably request at any time from Borrower, an updated valuation for each Eligible Servicing Right, in a form acceptable to Lender in its sole discretion; provided that the Lender shall not be obligated to rely on either valuation and shall have the right to determine the MSR Value of the Eligible Servicing Rights at any time in its sole discretion. The MSR Value shall be deemed to be zero with respect to each Loan for which such valuation is not provided within a reasonable time.
		

		
			“Multiemployer Plan” means a multiemployer plan defined as such in Section 3(37) of ERISA to which contributions have been or are required to be made by any Seller Party or any ERISA Affiliate and that is covered by Title IV of ERISA.
		

		
			“Net Income” means, for any period and any Person, the net income of such Person for such period as determined in accordance with GAAP.
		

		
			
		

		
			

		 

		

			SCHEDULE I - 11

		

 

		

		
			“Non-Recourse Debt” shall mean Indebtedness payable solely from the assets sold or pledged to secure such Indebtedness and under which Indebtedness no party has recourse to any Borrower Party or any of their Affiliates if such assets are inadequate or unavailable to pay off such Indebtedness, and neither Borrower Parties nor any of their Affiliates effectively has any obligation to directly or indirectly pay any such deficiency.
		

		
			“Note” means the promissory note of the Borrower issued to the Lender, in substantially the form of Exhibit 2.02(a), as amended from time to time, and any replacement thereof or substitution therefor.
		

		
			“Obligations” means the Outstanding Aggregate Loan Amount, all accrued and unpaid interest thereon and all other amounts payable by the Borrower to the Lender pursuant to this Agreement, the Note or any other Facility Document.
		

		
			“Opinion of Counsel” means a written opinion of counsel, reasonably acceptable to each Person to whom such opinion is addressed.
		

		
			“Other Taxes” has the meaning set forth in Section 3.02(b).
		

		
			“Outstanding Aggregate Loan Amount” means, at any time, the aggregate principal amount of the Loans funded by the Lender, minus the aggregate amount of payments received by the Lender prior to such time and applied to reduce the principal amount of the Loans.
		

		
			“P&I Advance” means any advance disbursed by the Borrower as servicer pursuant to any Servicing Contract of delinquent interest and/or principal on the related Mortgage Loans.
		

		
			“Participant” has the meaning set forth in Section 9.04.
		

		
			“Participant Register” has the meaning set forth in Section 9.04.
		

		
			“Person” means any individual, corporation, estate, partnership, limited liability company, limited liability partnership, joint venture, association, joint-stock company, business trust, trust, unincorporated organization, government or any agency or political subdivision thereof, or other entity of a similar nature.
		

		
			“Plan” means an employee benefit or other plan established or maintained by any Borrower Party or any ERISA Affiliate and covered by Title IV of ERISA, other than a Multiemployer Plan.
		

		
			“Pledged Servicing Rights” means any Eligible Servicing Rights a security interest in which has been granted to the Lender pursuant to this Agreement (it being understood that the Servicing Rights pledged will be identified by pool number in the Electronic Files).
		

		
			“Pool” means a group of Mortgage Loans, which are the security for a mortgage-backed security issued or guaranteed by an Agency.
		

		
			“Prepayment Notice” means a notice substantially in the form of Exhibit 2.08(b).
		

		
			
		

		
			

		 

		

			SCHEDULE I - 12

		

 

		

		
			“Pricing Side Letter” means that certain Loan and Security Agreement Pricing Side Letter, dated as of the date hereof, among the Borrower, the Guarantor and the Lender, entered into in connection with this Agreement, as the same may be amended, modified or supplemented from time to time.
		

		
			“Property” means any right or interest in or to property of any kind whatsoever, whether real, personal or mixed and whether tangible or intangible.
		

		
			“PSA” means a pooling and servicing agreement or similar agreement related to a non-agency securitization.
		

		
			“Recourse Servicing Obligations” means with respect to any mortgage loan, (a) any obligation or liability (actual or contingent) of the servicer or subservicer in respect of such Mortgage Loan to indemnify the relevant Agency for any losses incurred in respect of any Mortgage Loan that was determined at the time of sale to have been ineligible for sale to the applicable Agency due to a breach of one or more representations and warranties but accepted for purchase subject to any waiver and indemnity obligations, or (b) any other obligations described from time to time as being sold “with recourse” as such term (or terms of similar meaning) are defined in the relevant Agency Guide, as amended or supplemented from time to time, and any successor publications thereto having the same general contents and purpose.
		

		
			“Register” has the meaning set forth in Section 9.04.
		

		
			“Related Escrow Account Balances” means the balance, on the related Funding Date, of any escrow or impound accounts maintained by the Borrower which relate to any Mortgage Loan, including, without limitation, items escrowed for mortgage insurance, property taxes (either real or personal), hazard insurance, flood insurance, ground rents, or any other escrow or impound items required by any Mortgage Note or Mortgage, reduced by any unpaid real estate taxes or insurance premiums required to be paid by the Borrower, with respect to which amounts have been escrowed by the related Mortgagor.
		

		
			“Related Principal and Interest Custodial Accounts” means all principal and interest custodial accounts maintained by the Borrower that relate to any Mortgage Loan or Pool.
		

		
			“Relevant Electronic File” means, on any Business Day, the most recently delivered Electronic File that was delivered in accordance with Section 2.03(a) or 2.03(b) and relates to Eligible Servicing Rights that constitute Collateral hereunder.
		

		
			“Repayment Notice” means a notice substantially in the form of Exhibit 2.08(a).
		

		
			“Repo Agreement” or “MLRA” means the Third Amended and Restated Master Repurchase Agreement among dated April 28, 2017, by and among CSFB, CSCIB and Alpine Securitization Ltd., Borrower, and Guarantor, as amended.
		

		
			“Requirements of Law” means, with respect to any Person or any of its property, the certificate of incorporation or articles of association and by-laws, certificate of limited partnership, limited partnership agreement or other organizational or governing documents of such Person, and any law, treaty, rule or regulation, or determination of any arbitrator or Governmental Authority,
		

		
			
		

		
			

		 

		

			SCHEDULE I - 13

		

 

		

		
			in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject, whether Federal, state or local (including, without limitation, usury laws, the Federal Truth in Lending Act and retail installment sales acts).
		

		
			“Responsible Officer” means (a) with respect to the Borrower, the chief executive officer, president, chief financial officer, treasurer, assistant vice president, assistant treasurer, secretary or assistant secretary of the Borrower, or any other officer having substantially the same authority and responsibility; provided, that with respect specifically to the obligations of the Borrower set forth in Section 7.01(h) hereof, only the chief financial officer, treasurer, assistant treasurer, or comptroller of the Borrower shall be deemed to be a Responsible Officer; and (b) with respect to the Lender, a lending officer charged with responsibility for the day to day management of the relationship of such institution with the Borrower.
		

		
			“Restricted Cash” means for any Person, any amount of cash of such Person that is contractually required to be set aside, segregated or otherwise reserved.
		

		
			“Restricted Payment” means with respect to any Person, collectively, all dividends or other distributions of any nature (cash, securities, assets or otherwise), and all payments, by virtue of redemption or otherwise, on any class of equity securities (including, warrants, options or rights therefor) issued by such Person, which may hereafter be authorized or outstanding and any distribution in respect of any of the foregoing, whether directly or indirectly other than payments made in the ordinary course solely for the purpose of originating, servicing, subservicing and/or administrating Mortgage Loans.
		

		
			“S&P” means Standard & Poor’s, a division of The McGraw Hill Companies, Inc.
		

		
			“SEC” means the Securities and Exchange Commission, or any successor thereto.
		

		
			“Schedules of Mortgages” has the meaning provided in the Agency Guides.
		

		
			“Servicer”  has the meaning set forth in the preamble.
		

		
			“Servicing Contracts” means the Fannie Mae Servicing Contract and the Freddie Mac Servicing Contract, in each case as such agreements may be amended, amended and restated, supplemented or otherwise modified from time to time.
		

		
			“Servicing Fee” means the total amount of the fee payable to the Servicer as compensation for servicing and administering the Mortgage Loans.
		

		
			“Servicing Rights” means with respect to each Mortgage Loan, all the Borrower’s right, title and interest in, to and under the related Servicing Contracts, whether now or hereafter existing, acquired or created, whether or not yet accrued, earned, due or payable, as well as all other present and future right and interest under such Servicing Contracts, including, without limitation, the right (i) to receive the Servicing Fee income payable after the related Funding Date (including without limitation, any Uncollected Fees), (ii) any and all Ancillary Income received after the related Funding Date, (iii) to hold and administer the Related Escrow Account Balances, (iv) to hold and administer, in accordance with the applicable Agency Guides, the Related Principal and Interest Custodial Account, the Custodial File, and the Mortgage File arising from or connected to the
		

		
			
		

		
			

		 

		

			SCHEDULE I - 14

		

 

		

		
			servicing or subservicing of such Mortgage Loan under this Agreement and (v) all proceeds, income, profits, rents and products of any of the foregoing including, without limitation, all of the Borrower’s rights to proceeds of any sale or other disposition of the Servicing Rights, but with respect to clauses (i) - (iv) above, specifically excluding any Excluded Collateral.
		

		
			“Subservicer Termination Event” means an event that entitles the Borrower to terminate a subservicer for cause under a Subservicing Agreement.
		

		
			“Subservicing Agreement” means any subservicing agreement entered into between the Borrower and a subservicer, subject to the consent of the Lender.
		

		
			“Subsidiary” means a corporation of which a Person and/or its other Subsidiaries own, directly or indirectly, such number of outstanding shares as have more than 50% of the ordinary voting power for the election of directors.
		

		
			“T&I Advance” means an advance made by the Borrower as servicer with respect to a Mortgage Loan pursuant to the servicer’s obligation to do so under any Servicing Contract of real estate taxes and assessments, or of hazard, flood or primary mortgage insurance premiums, required to be paid by the related Mortgagor under the terms of the related Mortgage Loan.
		

		
			“Taxes” has the meaning set forth in Section 3.02.
		

		
			“Termination Date” means the earliest of (i) the Maturity Date, (ii) the day on which the Facility is terminated pursuant to Section 8.02(a) or Section 8.02(b),  (iii) the Loan Repayment Date on which the final amounts owing under the Facility are required to be paid as provided for in the first sentence of Section 2.08(a) hereof, or (iv) the termination of the Repo Agreement or the GMSR VF1 Repo.
		

		
			“UCC” means the Uniform Commercial Code as in effect on the date hereof in the State of New York; provided that if by reason of mandatory provisions of law, the perfection or the effect of perfection or non-perfection of the security interest in any Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than New York, “Uniform Commercial Code” means the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to such perfection or effect of perfection or non-perfection.
		

		
			“Uncollected Fees”  means with respect to any Mortgage Loan, any accrued late charges, NSF fees, assumption fees, and other fees charged to Mortgagors in connection with the servicing or subservicing of such Mortgage Loan which have not been collected by the Borrower as of the related Funding Date.
		

		
			“Unmatured Event of Default” means any event that, with the giving of notice or lapse of time, or both, would become an Event of Default.
		

		
			“U.S. Person” means any Person that is a “United States Person” as defined in Section 77.01(a)(30) of the Code.
		

		
			“VA” means the U.S. Department of Veterans Affairs, an agency of the United States of America, or any successor thereto including the Secretary of Veterans Affairs.
		

		
			
		

		
			

		 

		

			SCHEDULE I - 15

		

 

		

		
			“VA Approved Lender” means a lender which is approved by the VA to act as a lender in connection with the origination of VA Loans.
		

		
			“Wind Down Date” means the earliest to occur of (i) the Maturity Date, or (ii) the Business Day specified by the Lender upon ten (10) Business Days’ prior written notice to the Borrowers.
		

		
			 
		

		
			 
		

		
			

		 

		

			SCHEDULE I - 16

		

 

		

		
			SCHEDULE 5.01
		

		
			CONDITIONS PRECEDENT TO THE EFFECTIVENESS OF THIS AGREEMENT
		

		
			(a)        This Agreement duly executed by the parties hereto;
		

		
			(b)        The Note duly executed by the Borrower;
		

		
			(c)        All other Facility Documents duly executed by the related parties;
		

		
			(d)        A filed UCC-1 financing statement;
		

		
			(e)        An incumbency certificate of Borrower and Guarantor, certifying the names and true signatures of the persons authorized on the Borrower’s  and Guarantor’s behalf to sign, as applicable, this Agreement, the Note and the other Facility Documents to be delivered by the Borrower and Guarantor in connection herewith;
		

		
			(f)        A certificate of a Responsible Officer of Borrower and Guarantor attaching copies of organizational documents, resolutions, and good standing certificate of the Borrowers and the Guarantor;
		

		
			(g)        An Opinion of Counsel, delivered by outside counsel acceptable to the Lender in its reasonable discretion, opining as to: New York enforceability, corporate matters and non-contravention, security interest, and the Investment Company Act of 1940; provided that opinions as to corporate matters and non-contravention may be given by the in-house counsel of the Borrower;
		

		
			(h)        An executed Fannie Mae Acknowledgment Agreement and Freddie Mac Acknowledgment Agreement and an opinion of counsel with respect to such Fannie Mae Acknowledgment Agreement and Freddie Mac Acknowledgment Agreement;
		

		
			(i)         A separate power of attorney of Borrower with respect to the powers described in Section 4.04.
		

		
			(j)         The delivery of an executed release by Barclays Bank PLC, in form and substance satisfactory to the Lender, evidencing the release of its security interest in the Freddie Mac and Fannie Mae Servicing Rights subject to the lien of the Loan and Security Agreement (as amended or supplemented from time to time) dated as of December 4, 2015, by and among PennyMac Loan Services, LLC, Private National Mortgage Acceptance Company, LLC and Barclays Bank PLC;
		

		
			(k)        The delivery of lien search reports with respect to the Borrowers covering the five-year period prior to the date hereof; and
		

		
			(l)         The due filing of a UCC financing statement on Form UCC-3, in form and substance satisfactory to the Lender, with respect to the UCC-1 original financing statement file number 2015 5839211, filed by Barclays Bank PLC with the Delaware Secretary of State on December 7, 2015 with respect to the Borrower, as amended by the UCC-3 financing statement
		

		
			
		

		
			

		 

		

			SCHEDULE 5.01-1

		

 

		

		
			amendment file number 2015 6229412, filed by Barclays Bank PLC with the Delaware Secretary of State on December 22, 2015.
		

		
			(m)       With respect to the Freddie Mac Servicing Rights, no Suspension (as defined in the Freddie Mac Acknowledgment Agreement) has occurred.
		

		
			 
		

		
			 
		

		
			

		 

		

			SCHEDULE 5.01-2

		

 

		

		
			SCHEDULE 5.02
		

		
			CONDITIONS PRECEDENT TO EACH LOAN
		

		
			(a)        The Lender shall have received a duly executed copy of the Borrower Funding Request for such Loan in accordance with Section 2.03;
		

		
			(b)        Delivery of all reasonable due diligence (to the extent supplemental due diligence is conducted by Lender with respect to such Loan);
		

		
			(c)        The making of such Loan, and the application of the proceeds thereof, shall not result in the Outstanding Aggregate Loan Amount exceeding the Available Facility Amount;
		

		
			(d)        The making of such Loan, and the application of the proceeds thereof, shall not result in a Borrowing Base Deficiency;
		

		
			(e)        On the applicable Funding Date, the following statements shall be true (and the Borrower by delivering such Borrower Funding Request shall be deemed to have certified that):
		

		
			(i)    the representations and warranties set forth in Article VI are true and correct in all material respects (except for on the Closing Date, in which case the representations and warranties are true and correct on the Closing Date) on and as of such day as though made on and as of such day and shall be deemed to have been made on such day (except to the extent any such representation or warranty is stated to relate solely to an earlier date, in which case, such representation or warranty shall have been true and correct as of such date);
		

		
			(ii)   the Borrower is in compliance with all covenants set forth in Article VII;
		

		
			(iii)  all conditions precedent to the making of such Loan have been satisfied;
		

		
			(iv)   no Default or Event of Default has occurred and is continuing, or would result from such Loans;
		

		
			(v) all of the Servicing Rights included in the most recently delivered Electronic File are Eligible Servicing Rights, except for any non-qualifying Servicing Rights listed as such therein, and all Recourse Servicing Obligations have been identified as such in a schedule attached to such Electronic File;
		

		
			(f)        The Lender shall have received (i) with respect to the Initial Borrower Funding Request, the initial Electronic File; and (ii) with respect to any subsequent Borrower Funding Request, a subsequent Electronic File on or prior to time required by Section 2.03;
		

		
			(g)        With respect to any Borrower Funding Request, an Acknowledgment Agreement from each Agency is effective and in place with respect to which the related Servicing Rights will be pledged under the Agreement and consents from all third parties, including warehouse lenders, as needed,  except to the extent the foregoing have already been received;
		

		
			
		

		
			

		 

		

			SCHEDULE 5.02-1

		

 

		

		
			(h)        With respect to the Initial Borrower Funding Request, an Opinion of Counsel, delivered by outside counsel acceptable to the Lender in its reasonable discretion, opining as to: security interest creation, perfection and priority;
		

		
			(i)         All Facility Documents shall continue to be in full force and effect in all material respects.
		

		
			(j)         With respect to the Freddie Mac Servicing Rights, Freddie Mac has not exercised its right of Suspension (as defined in the Freddie Mac Acknowledgment Agreement) has occurred.
		

		
			(k)        The GMSR VF1 Repo is fully drawn based upon the then-current VFN Principal Balance (as defined in the GMSR VF1 Repo).
		

		
			 
		

		
			 
		

		
			

		 

		

			SCHEDULE 5.02-2

		

 

		

		
			SCHEDULE 6.01(S)
		

		
			BORROWER’S EXISTING FINANCING FACILITIES
		

		
			[Attached]
		

		
			 
		

		
			 
		

		
			

		 

		

			Schedule 6.01(s)-1

		

 

		

		
			SCHEDULE 6.02
		

		
			ELIGIBILITY CRITERIA WITH RESPECT TO THE SERVICING RIGHTS
		

		
			1.         All owned Servicing Rights for Mortgage Loans serviced by the Borrower on behalf of Fannie Mae, provided that such Servicing Rights are free and clear of any Liens, subject to Fannie Mae’s interest in such Servicing Rights pursuant to the Fannie Mae Servicing Contract and an Acknowledgment Agreement acceptable in form and substance to the Lender.
		

		
			2.         All owned Servicing Rights for Mortgage Loans serviced by the Borrower on behalf of Freddie Mac, provided that such Servicing Rights are free and clear of any Liens, subject to Freddie Mac’s rights and interests to such Servicing Rights pursuant to the Acknowledgment Agreement and Freddie Mac Servicing Contract.
		

		
			 
		

		
			 
		

		
			

		 

		

			SCHEDULE 6.02-1

		

 

		

		
			SCHEDULE 7.01(BB)
		

		
			MONTHLY MSR COLLATERAL REPORT
		

		
			 
		

		
			 
		

		
			

		 

		

			SCHEDULE 7.01(BB)-1

		

 

		

		
			SCHEDULE 11.02
		

		
			NOTICES
		

		
			If to the Borrower:
		

		
			PennyMac Loan Services, LLC 
		

		
			3043 Townsgate Road
		

		
			Westlake Village, CA 91361
		

		
			Attention: Pamela Marsh/Josh Smith
		

		
			Telephone: (805) 330-6059/ (818) 224-7078
		

		
			Facsimile: (818) 936-0145
		

		
			E-mail: pamela.marsh@pnmac.com; josh.smith@pnmac.com
		

		
			With copies to:
		

		
			PennyMac Loan Services, LLC 
		

		
			3043 Townsgate Road
		

		
			Westlake Village, CA 91361
		

		
			Attention: Jeff Grogin
		

		
			Telephone: (818) 224-7050
		

		
			Facsimile: (818) 936-0231
		

		
			E-mail:jeff.grogin@pnmac.com
		

		
			If to the Guarantor:
		

		
			Private National Mortgage Acceptance Company, LLC 
		

		
			3043 Townsgate Road
		

		
			Westlake Village, CA 91361
		

		
			Attention: Pamela Marsh/Josh Smith
		

		
			Telephone: (805) 330-6059/ (818) 224-7078
		

		
			Facsimile: (818) 936-0145
		

		
			E-mail: pamela.marsh@pnmac.com; josh.smith@pnmac.com
		

		
			With copies to:
		

		
			Private National Mortgage Acceptance Company, LLC 
		

		
			3043 Townsgate Road
		

		
			Westlake Village, CA 91361
		

		
			Attention: Jeff Grogin
		

		
			Telephone: (818) 224-7050
		

		
			Facsimile: (818) 936-0231
		

		
			E-mail: jeff.grogin@pnmac.com
		

		
			
		

		
			

		 

		

			SCHEDULE 11.02-1

		

 

		

		
			if to Lender:
		

		
			Credit Suisse AG, Cayman Islands Branch
		

		
			c/o Credit Suisse Securities (USA) LLC
		

		
			Eleven Madison Avenue, 4th Floor
		

		
			New York, New York  10010
		

		
			Attention:  Margaret Dellafera
		

		
			Phone Number: 212‐325‐6471
		

		
			Fax Number:  212‐743‐4810
		

		
			E‐mail: margaret.dellafera@credit‐suisse.com; dominic.obaditch@credit-
		

		
			suisse.com; roni.saporta@credit-suisse.com;
		

		
			With copies to:
		

		
			Credit Suisse AG, Cayman Islands Branch  – Legal Department
		

		
			c/o Credit Suisse Securities (USA) LLC
		

		
			One Madison Avenue, 9th Floor
		

		
			New York, NY  10010
		

		
			Attention: Legal Department—RMBS Warehouse Lending
		

		
			Fax Number: (212) 322‐2376
		

		
			CSFBMC LLC – Operations
		

		
			c/o Credit Suisse Securities (USA) LLC
		

		
			One Madison Avenue, 2nd floor
		

		
			New York, New York  10010
		

		
			Attention: Christopher Bergs, Resi Mortgage Warehouse Ops
		

		
			Phone:  212‐538‐5087
		

		
			E‐mail: christopher.bergs@credit‐suisse.com; list.afconduitreports@credit-suisse.com; agency.loanops@credit-suisse.com; david.bankert@credit-suisse.com; jason.golz@credit-suisse.com
		

		
			 
		

		
			 
		

		
			

		 

		

			SCHEDULE 11.02-2

		

 

		

		
			EXHIBIT 2.02(a)
		

		
			FORM OF PROMISSORY NOTE
		

		
			THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER ANY STATE SECURITIES LAWS. THIS NOTE IS SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS AND PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.
		

		
			[               ], 2018
		

		
			$_____________
		

		
			New York, New York
		

		
			FOR VALUE RECEIVED, PENNYMAC LOAN SERVICES, LLC, a Delaware limited liability company (the “Borrower”), hereby promises to pay to the order of CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH (the “Lender”), at the principal office of the Lender at Eleven Madison Avenue, 4th Floor,  New York, New York 10010, in lawful money of the United States, and in immediately available funds, the principal sum of [ ] ($[ ]) (or such lesser amount as shall equal the aggregate unpaid principal amount of the Loans made by the Lender to the Borrower under the Loan Agreement), on the dates and in the principal amounts provided in the Loan Agreement, and to pay interest on the unpaid principal amount of each such Loan, at such office, in like money and funds, for the period commencing on the date of such Loan until such Loan shall be paid in full, at the rates per annum and on the dates provided in the Loan Agreement.
		

		
			The date, amount and interest rate of each Loan made by the Lender to the Borrower, and each payment made on account of the principal thereof, shall be recorded by the Lender on its books and, prior to any transfer of this Note, endorsed by the Lender on the schedule attached hereto or any continuation thereof; provided, that the failure of the Lender to make any such recordation or endorsement shall not affect the obligations of the Borrower to make a payment when due of any amount owing under the Loan Agreement or hereunder in respect of the Loans made by the Lender.
		

		
			This Note is the Note referred to in the Loan and Security Agreement dated as of February 1, 2018 (as amended, supplemented or otherwise modified and in effect from time to time, the “Loan Agreement”) among Borrower, Private National Mortgage Acceptance Company, LLC, as guarantor and the Lender, and evidences Loans made by the Lender thereunder. Terms used but not defined in this Note have the respective meanings assigned to them in the Loan Agreement.
		

		
			The Borrower agrees to pay all the Lender’s reasonable out-of-pocket costs of collection and enforcement (including reasonable attorneys’ fees and disbursements of Lender’s counsel) in respect of this Note when incurred as required by Section 10.01 of the Loan Agreement.
		

		
			
		

		
			

		 

		

			EXHIBIT 2.02(a)-1

		

 

		

		
			Notwithstanding the pledge of the Collateral, the Borrower hereby acknowledges, admits and agrees that the Borrower’s obligations under this Note are recourse obligations of the Borrower to which the Borrower pledges its full faith and credit.
		

		
			The Borrower, and any endorsers or guarantors hereof, (a) severally waive diligence, presentment, protest and demand and also notice of protest, demand, dishonor and nonpayments of this Note, (b) expressly agree that this Note, or any payment hereunder, may be extended from time to time, and consent to the acceptance of further Collateral, the release of any Collateral for this Note, the release of any party primarily or secondarily liable hereon, and (c) expressly agree that it will not be necessary for the Lender, in order to enforce payment of this Note, to first institute or exhaust the Lender’s remedies against the Borrower or any other party liable hereon or against any Collateral for this Note. No extension of time for the payment of this Note, or any installment hereof, made by agreement by the Lender with any person now or hereafter liable for the payment of this Note, shall affect the liability under this Note of the Borrower, even if the Borrower is not a party to such agreement; provided, however, that the Lender and the Borrower, by written agreement between them, may affect the liability of the Borrower.
		

		
			Any reference herein to the Lender shall be deemed to include and apply to every subsequent holder of this Note. Reference is made to the Loan Agreement for provisions concerning optional and mandatory prepayments, Collateral, acceleration and other material terms affecting this Note.
		

		
			Any enforcement action relating to this Note may be brought by motion for summary judgment in lieu of a complaint pursuant to Section 3213 of the New York Civil Practice Law and Rules.
		

		
			THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW, WHICH BY ITS TERMS APPLIES TO THIS NOTE). THE BORROWER HEREBY SUBMITS TO THE NON-EXCLUSIVE GENERAL JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK LOCATED IN THE BOROUGH OF MANHATTAN, THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK, AND APPELLATE COURTS FROM ANY THEREOF FOR PURPOSES OF ALL LEGAL PROCEEDINGS ARISING OUT OF OR RELATING TO THIS NOTE OR THE TRANSACTIONS CONTEMPLATED HEREBY. THE BORROWER HERETO IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT IN THE BOROUGH OF MANHATTAN AND ANY CLAIM THAT ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. THE BORROWER HERETO HEREBY CONSENTS TO PROCESS BEING SERVED IN ANY SUIT, ACTION OR PROCEEDING WITH RESPECT TO THIS NOTE, OR ANY DOCUMENT DELIVERED PURSUANT HERETO BY THE MAILING OF A COPY THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, RETURN RECEIPT REQUESTED, TO ITS RESPECTIVE ADDRESS SPECIFIED AT THE TIME FOR NOTICES UNDER THE
		

		
			
		

		
			

		 

		

			EXHIBIT 2.02(a)-2

		

 

		

		
			LOAN AGREEMENT OR TO ANY OTHER ADDRESS OF WHICH IT SHALL HAVE GIVEN WRITTEN OR ELECTRONIC NOTICE TO THE LENDER. THE FOREGOING SHALL NOT LIMIT THE ABILITY OF ANY PARTY HERETO TO BRING SUIT IN THE COURTS OF ANY OTHER JURISDICTION.
		

		
			THE BORROWER HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO A TRIAL BY JURY WITH RESPECT TO ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS NOTE.
		

		
			[Signature Page Follows]
		

			
					
						 

					
					
						PENNYMAC LOAN SERVICES, LLC

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By: 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Name:

				
	
					
						 

					
					
						 

					
					
						Title:

				

		
			
		

		
			

		 

		

			EXHIBIT 2.02(a)-3

		

 

		

		
			SCHEDULE OF LOANS
		

		
			This Note evidences Loans made under the within‐described Loan Agreement to the Borrower, on the dates, in the principal amounts and bearing interest at the rates set forth below, and subject to the payments and prepayments of principal set forth below:
		

			
					
						Date Made

					
					
						 

					
					
						Principal 
Amount of 
Loan

					
					
						 

					
					
						Amount 
Paid or 
Prepaid

					
					
						 

					
					
						Amount of 
Additional 
Draws

					
					
						 

					
					
						Unpaid 
Principal 
Amount

					
					
						 

					
					
						Notation 
Made by

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			EXHIBIT 2.02(a)-4

		

 

		

		
			EXHIBIT 2.03
		

		
			to Loan and Security Agreement
		

		
			FORM OF BORROWER FUNDING REQUEST
		

		
			[DATE]
		

		
			Credit Suisse AG, Cayman Islands Branch
		

		
			Eleven Madison Avenue, 4th Floor
		

		
			New York, New York 10010
		

		
			Attention: Margaret Dellafera
		

		
			Attention: [ ]
		

		
			Ladies and Gentlemen:
		

		
			This [Initial] Borrower Funding Request is delivered to you pursuant to Section 2.03 of the Loan and Security Agreement, dated as of February 1, 2018 (as amended, supplemented, restated or otherwise modified from time to time, the “Loan Agreement”), among PennyMac Loan Services, LLC, as the Borrower (the “Borrower”), Private National Mortgage Acceptance Company, LLC (the “Guarantor”) and Credit Suisse AG, Cayman Islands Branch, as lender (the “Lender”). Unless otherwise defined herein or as the context otherwise requires, terms used herein have the meaning assigned thereto under Schedule I of the Loan Agreement.
		

		
			The undersigned hereby requests that a Loan be made in the aggregate principal amount of $____ on _________, 20__ to be secured by the Servicing Rights.
		

		
			An updated Electronic File, revised to reflect the acquisition of any additional Servicing Rights purchased by the Borrower since the most recently delivered Electronic File, has been delivered pursuant to Section 2.03 of the Loan Agreement. Such Electronic File reflects all Eligible Servicing Rights that constitute Collateral under the terms and conditions of the Agreement and a schedule of the mortgage loans related to the Servicing Rights identified in Electronic File is attached hereto as Schedule One.
		

		
			[TO BE USED FOR ALL FUNDINGS THAT INVOLVE NEW COLLATERAL] [The Borrower hereby acknowledges and agrees that (other than with respect to the Agreement) (i) the Servicing Rights currently pledged as Collateral under the Agreement and (ii) any of the Servicing Rights identified on Schedule One attached hereto, are not currently assigned, pledged, conveyed or encumbered under any credit, warehouse or financing facility. The Borrower further acknowledges and agrees that (other than under the Agreement) it shall not assign, pledge, convey or encumber such Servicing Rights under any credit, warehouse or financing facility in the future, except with prior notice to, and consent from, the Lender.]
		

		
			The undersigned hereby acknowledges that the delivery of this [Initial] Borrower Funding Request and the acceptance by the undersigned of the proceeds of the Loan requested hereby constitute a representation and warranty by the undersigned that all conditions precedent to such Loan specified in Article V of the Loan Agreement have been satisfied and will continue to be satisfied after giving effect to such Loan.
		

		
			
		

		
			

		 

		

			EXHIBIT 2.03-1

		

 

		

		
			The undersigned further represents and warrants that either (a) the Agency Guides and the Servicing Contracts have not been materially modified since the last date the undersigned delivered a Borrower Funding Request or (b) attached hereto is a true and complete description of any changes to the applicable Servicing Contracts since the last date the undersigned delivered a Borrower Funding Request.
		

		
			Please wire transfer the proceeds of the Loan to the following account pursuant to the following instructions:
		

		
			[______________]
		

		
			The undersigned has caused this [Initial] Borrower Funding Request to be executed and delivered, and the certification and warranties contained herein to be made, by its duly authorized officer this ____ day of _________, 20__.
		

			
					
						 

					
					
						PENNYMAC LOAN SERVICES, LLC,

				
	
					
						 

					
					
						   as the Borrower

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Name:

				
	
					
						 

					
					
						 

					
					
						Title:

				

		
			 
		

		
			Acknowledged and agreed:
		

			
					
						CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						By:

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Name:

					
					
						 

				
	
					
						 

					
					
						Title:

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						By:

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Name:

					
					
						 

				
	
					
						 

					
					
						Title:

					
					
						 

				

		
			 
		

		
			
		

		
			

		 

		

			EXHIBIT 2.03-2

		

 

		

		
			SCHEDULE ONE
		

		
			ELECTRONIC FILE
		

		
			[To be provided by Borrower.]
		

		
			 
		

		
			 
		

		
			

		 

		

			EXHIBIT 2.03-3

		

 

		

		
			EXHIBIT 2.08(a)
		

		
			FORM OF REPAYMENT NOTICE
		

		
			[ ], 20__
		

		
			TO:      The Lender as defined in the Loan Agreement referred to below
		

		
			Reference is hereby made to the Loan and Security Agreement, dated as of February 1, 2018 (as heretofore amended, the “Loan Agreement”), among PennyMac Loan Services, LLC, as the Borrower (the “Borrower”), Private National Mortgage Acceptance Company, LLC (the “Guarantor”) and Credit Suisse AG, Cayman Islands Branch, as lender (the “Lender”). Capitalized terms not otherwise defined herein are used herein as defined in the Loan Agreement.
		

		
			The Borrower hereby notifies you that, pursuant to Section 2.08[(a)/(b)] of the Loan Agreement, it shall make a repayment of the Loans outstanding under the Loan Agreement to the Lender on [ ], 20__ in the amount of $_____.
		

		
			Also included in the repayment amount shall be accrued and unpaid interest, in the amount of $__________________.
		

		
			
		

		
			

		 

		

			EXHIBIT 2.08(a) - 1

		

 

		

		
			The undersigned has caused this Repayment Notice to be executed and delivered by its duly authorized officer this_________ day of ____________, 20__.
		

			
					
						 

					
					
						PENNYMAC LOAN SERVICES, LLC,

				
	
					
						 

					
					
						     as the Borrower

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Name:

				
	
					
						 

					
					
						 

					
					
						Title:

				

		
			 
		

		
			 
		

		
			

		 

		

			EXHIBIT 2.08(a) - 2

		

 

		

			 

		

		

		
			EXHIBIT 2.08(b)
		

		
			FORM OF PREPAYMENT NOTICE
		

		
			[ ], 20__
		

		
			TO:      The Lender as defined in the Loan Agreement referred to below
		

		
			Reference is hereby made to the Loan and Security Agreement, dated as of February 1, 2018 (as heretofore amended, the “Loan Agreement”), among PennyMac Loan Services, LLC, as the Borrower (the “Borrower”), Private National Mortgage Acceptance Company, LLC (the “Guarantor”) and Credit Suisse AG, Cayman Islands Branch, as lender (the “Lender”). Capitalized terms not otherwise defined herein are used herein as defined in the Loan Agreement.
		

		
			The Borrower hereby notifies you that pursuant to and in compliance with Section 2.09 of the Loan Agreement, it shall make a prepayment of Loans outstanding under the Loan Agreement on [  ], 20__ in the amount of $________.
		

		
			Also included in the prepayment amount shall be accrued and unpaid interest, in the amount of $____________.
		

		
			The undersigned has caused this Prepayment Notice to be executed and delivered by its duly authorized officer this_________ day of ___________, 20__.
		

		
			 
		

			
					
						 

					
					
						PENNYMAC LOAN SERVICES, LLC,

				
	
					
						 

					
					
						     as the Borrower

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Name:

				
	
					
						 

					
					
						 

					
					
						Title:

				

		
			 
		

		
			 
		

		 

		

			EXHIBIT 2.08(b)-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00278-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00278-of-00352.parquet"}]]