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  Exhibit 10.20    
    

INTERIM
SERVICING AGREEMENT 

among 

WELLS
FARGO BANK, NATIONAL ASSOCIATION,

"Buyer" 

ACRC
LENDER W LLC,

"Seller" 

and

ARES
COMMERCIAL REAL ESTATE SERVICER LLC,

"Servicer" and "Special Servicer" 

Dated
as of December 14, 2011 

 

 
 

  TABLE OF CONTENTS    
    

 

									
	 
	 	 
	 	 
	 	Page 	 
	 1
	 	DEFINITIONS; RELATIONSHIP TO MASTER REPURCHASE AGREEMENT	 	 	1	 
	 
	 	1.1	 	 Defined Terms
	 	 	1	 
	 
	 	1.2	 	 Understanding Concerning Master Repurchase Agreement
	 	 	7	 
	 2
	 	  RETENTION AND AUTHORITY OF SERVICER AND SPECIAL SERVICER
	 	 	

8	 
	 
	 	2.1	 	 Engagement; Servicing Standard
	 	 	8	 
	 
	 	2.2	 	 Subservicing
	 	 	8	 
	 
	 	2.3	 	 Authority of Servicer and Special Servicer
	 	 	9	 
	 3
	 	  SERVICES TO BE PERFORMED
	 	 	

10	 
	 
	 	3.1	 	 Services as Loan Servicer and Special Servicer
	 	 	10	 
	 
	 	3.2	 	 Escrow Accounts; Collection of Taxes, Assessments and Similar Items
	 	 	11	 
	 
	 	3.3	 	 Collection Account
	 	 	12	 
	 
	 	3.4	 	 Permitted Investments
	 	 	12	 
	 
	 	3.5	 	 Maintenance of Insurance Policies
	 	 	12	 
	 
	 	3.6	 	 Delivery and Possession of Servicing Files
	 	 	13	 
	 
	 	3.7	 	 Inspections
	 	 	14	 
	 
	 	3.8	 	 Exercise of Remedies Upon Investment Defaults
	 	 	14	 
	 
	 	3.9	 	 Transfer of Servicing Between Servicer and Special Servicer; Record Keeping; Asset Status Report
	 	 	14	 
	 4
	 	  STATEMENTS AND REPORTS
	 	 	

17	 
	 
	 	4.1	 	 Reporting by Servicer
	 	 	17	 
	 5
	 	  SERVICER'S AND SPECIAL SERVICER'S COMPENSATION AND EXPENSES
	 	 	

17	 
	 
	 	5.1	 	 Servicing Compensation
	 	 	17	 
	 
	 	5.2	 	 Servicing Expenses
	 	 	18	 
	 
	 	5.3	 	 Special Servicing Compensation
	 	 	18	 
	 6
	 	  SERVICER, BUYER AND SELLER
	 	 	

19	 
	 
	 	6.1	 	 Servicer and Special Servicer Not to Assign; Merger or Consolidation of Servicer and Special Servicer
	 	 	19	 
	 
	 	6.2	 	 Liability and Indemnification of Servicer, Special Servicer and Buyer
	 	 	20	 
	 
	 	6.3	 	 Successors to Servicer and Special Servicer
	 	 	20	 
	 7
	 	  REPRESENTATIONS AND WARRANTIES; DEFAULT
	 	 	

21	 
	 
	 	7.1	 	 Representations and Warranties
	 	 	21	 
	 
	 	7.2	 	 Events of Default
	 	 	23	 
	 8
	 	  TERMINATION; TRANSFER OF INVESTMENTS
	 	 	

25	 
	 
	 	8.1	 	 Termination of Agreement
	 	 	25	 
	 
	 	8.2	 	 Transfer of Investments
	 	 	26	 
	 9
	 	  MISCELLANEOUS PROVISIONS
	 	 	

26	 
	 
	 	9.1	 	 Amendment; Waiver
	 	 	26	 
	 
	 	9.2	 	 Governing Law
	 	 	26	 
	 
	 	9.3	 	 Notices
	 	 	26	 
	 
	 	9.4	 	 Severability of Provisions
	 	 	28	 
	 
	 	9.5	 	 Inspection and Audit Rights
	 	 	28	 
	 
	 	9.6	 	 Binding Effect; No Partnership; Counterparts
	 	 	28	 
	 
	 	9.7	 	 Protection of Confidential Information
	 	 	28	 
	 
	 	9.8	 	 General Interpretive Principles
	 	 	29	 
	 
	 	9.9	 	 Further Agreements
	 	 	29	 

 

 i

 
 
 

  Index of Defined Terms    
    

 

								
	 Accepted Servicing Practices
	 	8	 	 Loan Servicing
	 	10	 
	 Accounts
	 	1	 	 Master Repurchase Agreement
	 	3	 
	 Additional Servicing Compensation
	 	1	 	 Monthly Payment
	 	3	 
	 Affiliate
	 	1	 	 Mortgage
	 	3	 
	 Agreement
	 	1	 	 Note
	 	3	 
	 Appraisal
	 	1	 	 Performing Investment
	 	3	 
	 Appraiser
	 	1	 	 Permitted Investments
	 	4	 
	 Asset Status Report
	 	15	 	 Person
	 	5	 
	 Balloon Investment
	 	2	 	 Qualified Affiliate
	 	5	 
	 Balloon Payment
	 	2	 	 Rating Agency
	 	5	 
	 Best Efforts
	 	2	 	 Responsible Officer
	 	5	 
	 Business Day
	 	2	 	 Seller
	 	1	 
	 Buyer
	 	1	 	 Servicer
	 	1, 5	 
	 Collateral
	 	2	 	 Servicing Expenses
	 	5	 
	 Collection Account
	 	2	 	 Servicing Fee
	 	6	 
	 Corrected Investment
	 	2	 	 Servicing Fee Rate
	 	6	 
	 Directing Party
	 	2	 	 Servicing File
	 	6	 
	 Escrow Account
	 	11	 	 Servicing Transfer Date
	 	6	 
	 Escrow Payment
	 	2	 	 Special Servicer
	 	1, 6	 
	 Event of Default
	 	23	 	 Special Servicing
	 	11	 
	 FIRREA
	 	2	 	 Special Servicing Fee
	 	6	 
	 Income
	 	2	 	 Special Servicing Fee Rate
	 	6	 
	 Insurance and Condemnation Proceeds
	 	2	 	 Special Servicing Transfer Event
	 	6	 
	 Investment
	 	2	 	 Specially Serviced Investment
	 	6, 8	 
	 Investment File
	 	2	 	 Successor
	 	20	 
	 Liquidation Event
	 	3	 	 Underlying Mortgaged Property
	 	7	 
	 Liquidation Expenses
	 	3	 	 Underlying Obligor
	 	7	 
	 Liquidation Fee
	 	3	 	 Workout Fee
	 	7	 
	 Liquidation Fee Rate
	 	3	 	 Workout Fee Rate
	 	7	 
	 Liquidation Proceeds
	 	3	 	 	 	 	 

 

 ii

 
 

  INTERIM SERVICING AGREEMENT    
    

        THIS INTERIM SERVICING AGREEMENT ("Agreement") dated as of December 14, 2011, is
among Wells Fargo Bank, National Association, a national banking association ("Buyer"), ACRC LENDER W LLC, a Delaware limited liability company
("Seller"), and ARES COMMERCIAL REAL ESTATE SERVICER LLC, a Delaware limited liability company
("Servicer" and "Special Servicer", as the case may be). 

 
 

  PRELIMINARY STATEMENT    
    

        Buyer desires to engage Servicer and Special Servicer, as the case may be, and Servicer and Special Servicer, as the case may be,
desire to accept such engagement, to service the Investments and related assets that Buyer acquires from time to time in accordance with the provisions of this Agreement. 

        Servicer
and Special Servicer are each independent contractors in the business of servicing mortgage loans, and are not Affiliates of Buyer. 

        This
Agreement shall become effective with respect to each Investment, or appropriate group or portfolio of Investments, upon the related Servicing Transfer Date. 

        NOW,
THEREFORE, in consideration of the recitals in this Preliminary Statement, which are made a contractual part hereof, and of the mutual promises contained herein and for other good
and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

        1    DEFINITIONS; RELATIONSHIP TO MASTER REPURCHASE AGREEMENT    

        1.1    Defined Terms.    

        Whenever
used in this Agreement, capitalized terms shall have the meanings given to them in the text hereof (refer to the Index of Defined Terms). In addition, the following words and
phrases, unless the context otherwise requires, shall have the following meanings: 

        "Accounts":    The Escrow Accounts and the Collection Account. 

        "Additional Servicing Compensation":    Any amount that Servicer is entitled to be paid or to retain under the terms of this
Agreement, other than the Servicing Fee and reimbursable items. 

        "Appraisal":    With respect to each Underlying Mortgaged Property, an appraisal prepared by an Appraiser and certified by such
Appraiser as having been prepared in accordance with the requirements of the Standards of Professional Practice of the Appraisal Institute and the Uniform Standards of Professional Appraisal Practice
of the Appraisal Foundation, as well as FIRREA. 

        "Appraiser":    An independent professional real estate appraiser reasonably satisfactory to the Directing Party who is a member
in good standing of the American Appraisal Institute, and, if the state in which Underlying Mortgaged Property is located certifies or licenses appraisers, is certified or licensed in such state, and
in each such case, who has a minimum of five years experience in the subject property type. 

        "Affiliate":    With respect to any specified Person, any other Person controlling or controlled by or under common control with
such specified Person. For the purposes of this definition, "control" when used with respect to any specified Person means direct or indirect possession of the power to direct the management and
policies of such Person, whether through the ownership of voting securities, by contract or otherwise and the terms "controlling", "controlled" and "under common control" have meanings correlative to
the foregoing. 

        "Agreement":    This Interim Servicing Agreement, as the same may be modified, supplemented or amended from time to time. 

 

        "Balloon Investment":    Any Investment that does not substantially amortize by its related maturity date. 

        "Balloon Payment":    With respect to each Balloon Investment, the scheduled payment of principal due on the maturity date (less
principal included in the applicable amortization schedule or scheduled Monthly Payment). 

        "Best Efforts":    Efforts determined to be reasonably diligent by Servicer in its reasonable discretion, which efforts do not
require Servicer to enter into any litigation, arbitration or other legal or quasi-legal proceeding or to expend its own funds in excess of an amount determined by Servicer to be commercially
reasonable. 

        "Business Day":    Any day other than (i) a Saturday or Sunday, or (ii) a day in which depository institutions or
trust companies in the States of New York and Illinois or in any of the States in which the Accounts or any accounts used by Buyer for remittance purposes are located, are authorized or obligated by
law, regulation or executive order to remain closed. 

        "Collateral":    With respect to each Investment, the Underlying Mortgaged Property and/or any other property securing the
obligations of the related Underlying Obligor under the documents evidencing the related Investment. 

        "Collection Account":    The "Waterfall Account", as defined in the Master Repurchase Agreement. 

        "Corrected Investment":    Any Specially Serviced Investment that has become current and remained current for three consecutive
Monthly Payments (for such purposes taking into account any modification or amendment of such Investment, whether by a consensual modification or in connection with a bankruptcy, insolvency or similar
proceeding involving the related Underlying Obligor), provided, that no additional default is foreseeable in the reasonable judgment of Special
Servicer. 

        "Directing Party":    During the occurrence and continuance of an Event of Default under the Master Repurchase Agreement, or at
any time the Servicer is no longer acting as Servicer hereunder, Buyer; at any other time, Seller. 

        "Escrow Payment":    Any payment received by Servicer or Special Servicer for the account of any Underlying Obligor for
application toward the payment of taxes, insurance premiums, assessments, ground rents, deferred maintenance, environmental remediation, rehabilitation costs, capital expenditures, and similar items
in respect of the related Mortgaged Property. 

        "FIRREA":    The Financial Institution Reform, Recovery and Enforcement Act of 1989, as amended. 

        "Income":    As defined in the Master Repurchase Agreement. 

        "Insurance and Condemnation Proceeds":    All proceeds paid under any insurance policy or in connection with the full or partial
condemnation of an Underlying Mortgaged Property, in either case, to the extent such proceeds are not applied to the restoration of the related Underlying Mortgaged Property or released to Underlying
Obligor or any tenants or ground lessors, in either case, in accordance with Accepted Servicing Practices. 

        "Investment":    Each of the Purchased Assets, as such term is defined in the Master Repurchase Agreement. 

        "Investment File":    With respect to each Investment, the related Note, the related Mortgage or other security agreements
(whether secured by an interest in property or otherwise) and any 

2

 

and
all other documents executed and delivered in connection with the origination or subsequent modification of such Investment. 

        "Liquidation Expenses":    All customary, reasonable and necessary "out of pocket" costs and expenses incurred by Special
Servicer in connection with a liquidation of any Specially Serviced Investment (including, without limitation, legal fees and expenses, committee or referee fees, and, if applicable, brokerage
commissions and conveyance taxes). 

        "Liquidation Event":    An Investment is liquidated for a full or discounted amount and Servicer or Special Servicer, as
applicable, has determined that all amounts that it expects to recover from or on account of such Investment have been recovered. 

        "Liquidation Fee":    A fee payable to Special Servicer with respect to each Specially Serviced Investment as to which Special
Servicer receives a full or discounted payoff (or an unscheduled partial payment to the extent such prepayment is required by Special Servicer as a condition to a workout) with respect thereto from
the related Underlying Obligor or any Liquidation Proceeds or Insurance and Condemnation Proceeds with respect to the related Investment (in any case, other than amounts for which a Workout Fee has
been paid, or will be payable), equal to the product of the Liquidation Fee Rate and the proceeds of such full or discounted payoff or other partial payment or the Liquidation Proceeds or Insurance
and Condemnation Proceeds related to such liquidated Specially Serviced Investment. 

        "Liquidation Fee Rate":    With respect to each Specially Serviced Investment, a rate equal to 1.00% per annum. 

        "Liquidation Proceeds":    Cash amounts received by or paid to Servicer or Special Servicer, as applicable, in connection with:
(i) the liquidation (including a payment in full) of an Underlying Mortgaged Property, or through a trustee's sale, foreclosure sale, or otherwise, exclusive of any portion thereof required to
be released to the related Underlying Obligor in accordance with applicable law and the terms and conditions of the documents evidencing the related Investment; (ii) the realization upon any
deficiency judgment obtained against Underlying Obligor; (iii) the repurchase by Seller of any Purchased Asset pursuant to the Master Repurchase Agreement or (iv) the purchase of a
Specially Serviced Investment by any lender pursuant to any purchase option set forth in the related intercreditor or participation agreement. 

        "Master Repurchase Agreement":    That certain Master Repurchase and Securities Contract, dated as of December 14, 2011,
by and between Seller and Buyer, as the same may be modified, supplemented or amended from time to time. 

        "Monthly Payment":    With respect to each Investment, the regularly scheduled periodic payment of interest (and, if applicable,
partial amortization of principal) contemplated by the terms of the applicable Note. 

        "Mortgage":    With respect to each Investment, the mortgage, deed of trust or other instrument securing the related Note, which
creates a lien on the real property securing such Note. 

        "Note":    With respect to any Investment, the promissory note or other evidence of indebtedness or agreements evidencing the
indebtedness of an Underlying Obligor under such Investment. 

        "Performing Investment":    Any Investment that is not a Specially Serviced Investment. 

3

 

        "Permitted Investments":    Any one or more of the following obligations or securities having at the time of purchase, or at
such other time as may be specified, the required ratings, if any, provided for in this definition: 

        (a)   direct
obligations of, or guaranteed as to timely payment of principal and interest by, the United States of America or any agency or instrumentality thereof provided
that such obligations are backed by the full faith and credit of the United States of America; 

        (b)   direct
obligations of, or guaranteed as to timely payment of principal and interest by, the Federal Home Loan Mortgage Corporation, the Federal Home Loan Bank, the
Federal National Mortgage Association or the Federal Farm Credit System, provided that any such obligation, at the time of purchase or contractual commitment providing for the purchase thereof, is
qualified by any Rating Agency as an investment of funds backing securities rated "AAA" (or such comparable rating); 

        (c)   demand
and time deposits in or certificates of deposit of, or bankers' acceptances issued by, any bank or trust company, savings and loan association or savings bank,
provided that, in the case of obligations that are not fully insured by the Federal Deposit Insurance Corporation, the commercial paper and/or long term unsecured debt obligations of such depository
institution or trust company (or in the case of the principal depository institution in a holding company system, the commercial paper or long term unsecured debt obligations of such holding company)
have an A-1 rating by S&P (or such similar rating by the other Rating Agencies) for such securities; 

        (d)   general
obligations of or obligations guaranteed by any state of the United States or the District of Columbia receiving the highest long term debt rating available for
such securities by any Rating Agency; 

        (e)   commercial
or finance company paper (including both non interest bearing discount obligations and interest bearing obligations payable on demand or on a specified date
not more than one year after the date of issuance thereof) that is rated by any Rating Agency in its highest short term unsecured debt rating category at the time of such investment or contractual
commitment providing for such investment, and is issued by a corporation the outstanding senior long term debt obligations of which are then rated by any such Rating Agency in its highest long term
unsecured debt rating category; 

        (f)    guaranteed
reinvestment agreements issued by bank, insurance company or other corporation rated in one of the two highest long term unsecured debt rating levels
available to such issuers by any Rating Agency at the time of such investment, provided that any such agreement must by its terms provide that it is terminable by the purchaser without penalty in the
event any such rating is at any time lower than such level; 

        (g)   repurchase
obligations with respect to any security described in clause (a) or (b) above entered into with a depository institution or trust company
(acting as principal) described in clause (c) above; 

        (h)   securities
bearing interest or sold at a discount that are issued by any corporation incorporated under the laws of the United States of America or any state thereof and
rated by any Rating Agency in its highest long term unsecured rating category at the time of such investment or contractual commitment providing for such investment; 

        (i)    units
of taxable money market funds that funds are regulated investment companies, seek to maintain a constant net asset value per share and invest solely in obligations
backed by the full faith and credit of the United States, and have been approved in writing by Buyer as Permitted Investments with respect to this definition; and 

4

 

        (j)    such
other obligations as are approved in writing by Buyer as Permitted Investments. 

        "Person":    Any individual, corporation, limited liability company, partnership, joint venture, estate, association, joint
stock company, trust, unincorporated organization or government or any agency or political subdivision thereof. 

        "Qualified Affiliate":    Any Person (a) that is organized and doing business under the laws of any state of the United
States or the District of Columbia, (b) that is in the business of performing the duties of a servicer of mortgage loans, and (c) as to which 50% or greater of its outstanding voting
stock or equity ownership interest are directly or indirectly owned by Servicer or Special Servicer or by any Person or Persons who directly or indirectly own equity ownership interests in Servicer or
Special Servicer. 

        "Rating Agency":    Each of Standard & Poor's Ratings Services, a division of McGraw Hill, Inc., Moody's Investors
Service, Inc., Fitch, Inc., or any other nationally recognized statistical rating agency. 

        "Responsible Officer":    Any officer, authorized signatory or employee of Buyer, Seller, Servicer or Special Servicer, as the
case may be, involved in or responsible for the administration, supervision or management of this Agreement and whose name and specimen signature appear on a list prepared by each party and delivered
to the other party, as such list may be amended from time to time by either party. 

        "Servicer":    Ares Commercial Real Estate Servicer LLC, a Delaware limited liability company, or any successor Servicer
as herein provided. 

        "Servicing Expenses":    All customary, reasonable and necessary out of pocket costs and expenses paid or incurred in accordance
with Accepted Servicing Practices in connection with Servicer's or Special Servicer's obligations hereunder, including without limitation: 

        (a)   real
estate taxes, assessments and similar charges; 

        (b)   insurance
premiums; 

        (c)   any
expense necessary in order to prevent or cure any violation of applicable laws, regulations, codes, ordinances, rules, orders, judgments, decrees, injunctions or
restrictive covenants; 

        (d)   any
cost or expense necessary in order to maintain or release the lien on each Mortgaged Property and related collateral, including any mortgage registration taxes,
release fees, or recording or filing fees; 

        (e)   customary
expenses for the collection, enforcement or foreclosure of the Investments and the collection of deficiency judgments against Underlying Obligors and
guarantors (including but not limited to the fees and expenses of any trustee under a deed of trust, foreclosure title searches and other lien searches); 

        (f)    costs
and expenses of any appraisals, valuations, inspections, environmental assessments (including but not limited to the fees and expenses of environmental
consultants), audits or consultations, engineers, architects, accountants, on site property managers, market studies, title and survey work and financial investigating services; 

        (g)   customary
expenses for liquidation, restructuring, modification or loan workouts, such as sales brokerage expenses and other costs of conveyance; 

        (h)   costs
and expenses related to travel and lodging, subject to Section 3.7 with respect to property inspections; and 

5

 

        (i)    any
other reasonable costs and expenses, including without limitation, legal fees and expenses, incurred by Servicer or Special Servicer under this Agreement in
connection with the enforcement, collection, foreclosure, disposition, condemnation or destruction of the Investments or related Mortgaged Properties and the performance of Loan Servicing by Servicer
or Special Servicer under this Agreement. 

        "Servicing Fee":    An amount equal to the product of (a) the Servicing Fee Rate and (b) the outstanding principal
balance of each Investment. 

        "Servicing Fee Rate":    0.07% per annum. 

        "Servicing File":    With respect to each Investment, all documents, information and records relating to the Investment that are
necessary to enable Servicer to perform its duties and service the Investment in compliance with the terms of this Agreement, and any additional documents or information related thereto maintained or
created by Servicer. 

        "Servicing Transfer Date":    With respect to each Investment, the date of delivery by Buyer (or Seller on Buyer's behalf) to
Servicer of the related Servicing File. 

        "Specially Serviced Investment":    Any Investment for which a Special Servicing Transfer Event has occurred and such Specially
Serviced Investment has not become a Corrected Investment. 

        "Special Servicer":    Ares Commercial Real Estate Servicer LLC, a Delaware limited liability company, or any successor
special servicer as herein provided. 

        "Special Servicing Fee":    With respect to each Specially Serviced Investment, an amount equal to the product of (a) the
Special Servicing Fee Rate and (b) the outstanding principal balance of such Specially Serviced Investment, as calculated in accordance with  Section 5.3.2 of this Agreement. 

        "Special Servicing Fee Rate":    With respect to each Specially Serviced Investment, 0.25% per annum. 

        "Special Servicing Transfer Event":    With respect to any Investment, the occurrence of any of the following events: 

        (a)   a
payment default shall have occurred at the original maturity date or, if the original maturity date (or original anticipated repayment date) of such Investment has
been extended, a payment default shall have occurred at such extended maturity date (or extended anticipated repayment date); or 

        (b)   any
Monthly Payment is more than 60 days delinquent; or 

        (c)   Servicer
makes a judgment, or receives from Special Servicer a written determination of Special Servicer that a payment default is imminent and is not likely to be cured
by the related Underlying Obligor within 60 days; or 

        (d)   a
decree or order of a court or agency or supervisory authority having jurisdiction in the premises in an involuntary case under any present or future federal or state
bankruptcy, insolvency or similar law, or the appointment of a conservator, receiver or liquidator in any insolvency, readjustment of debt, marshaling of assets and liabilities or similar proceedings,
or for the winding-up or liquidation of its affairs, is entered against the related Underlying Obligor; provided, that if such decree or
order is discharged or stayed within 60 days of being entered, or if, as to a bankruptcy, the automatic stay is lifted within 60 days of a filing for relief or the case is dismissed,
upon such discharge, stay,
lifting or dismissal such Investment shall no longer be a Specially Serviced Investment (and no Special Servicing Fees, Workout 

6

 

Fees
or Liquidation Fees will be payable with respect thereto and any such fees actually paid shall be reimbursed by Special Servicer); or 

        (e)   the
related Underlying Obligor shall consent to the appointment of a conservator or receiver or liquidator in any insolvency, readjustment of debt, marshaling of assets
and liabilities or similar proceedings of or relating to such Underlying Obligor or of or relating to all or substantially all of its property; or 

        (f)    the
related Underlying Obligor shall admit in writing its inability to pay its debts generally as they become due, file a petition to take advantage of any
applicable insolvency or reorganization statute, make an assignment for the benefit of its creditors, or voluntarily suspend payment of its obligations; or 

        (g)   a
default of which Servicer has notice (other than a failure by such Underlying Obligor to pay principal or interest) and which Servicer determines in accordance with
Accepted Servicing Practices may materially and adversely affect the interests of Buyer has occurred and remained unremedied for the applicable grace period specified in the documents evidencing the
related Investment (or if no grace period is specified for those defaults that are capable of cure, 60 days); or 

        (h)   Servicer
has received notice of the foreclosure or proposed foreclosure of any other lien on the related Collateral. 

        "Underlying Mortgaged Property":    As defined in the Master Repurchase Agreement. 

        "Underlying Obligor":    The obligor on a Note. 

        "Workout Fee":    The fee paid to Special Servicer, at the Workout Fee Rate, with respect to each Corrected Investment. 

        "Workout Fee Rate":    With respect to each Corrected Investment, a fee of 1.00% of each collection of interest and principal,
including (i) Monthly Payments, (ii) Balloon Payments and (iii) payments (other than those included in clause (i) or (ii) of this definition) at maturity, received
on each Corrected Investment for so long as it remains a Corrected Investment. 

        1.2    Understanding Concerning Master Repurchase Agreement.    

        The
parties acknowledge that this Agreement is being entered into in accordance with Section 17.01(b) of the Master Repurchase Agreement, and that pursuant to the Master
Repurchase Agreement, Seller has, among other things, sold all of its right, title and interest in the Investments to Buyer, including without limitation all servicing rights with respect thereto. The
parties also acknowledge and agree that nothing in this Agreement shall in any way be construed to derogate from Buyer's rights under the Repurchase Agreement. Without limiting the generality of the
foregoing, none of the Seller, the Servicer or the Special Servicer shall, directly or indirectly, take any action (including without limitation any enforcement actions against any Person with respect
to this Agreement) which would result in a violation of the obligations of any Person under the Master Repurchase Agreement, this Agreement or any other Repurchase Document, or which would otherwise
be inconsistent with the rights of Buyer under the Repurchase Documents. Further, none of the Seller, Servicer or Special Servicer shall have any rights hereunder, including without limitation the
right to enforce this Agreement against any Person, while any default under the Master Repurchase Agreement or any Event of Default by either the Servicer or the Special Servicer shall be continuing. 

7

 

        2    RETENTION AND AUTHORITY OF SERVICER AND SPECIAL SERVICER    

        2.1    Engagement; Servicing Standard.    

        2.1.1  Buyer
hereby engages Servicer and Special Servicer, as the case may be, to perform, and Servicer and Special Servicer, as the case may be, hereby agree to perform,
Loan Servicing and Special Servicing, as applicable, with respect to each of the Investments throughout the term of this Agreement, upon and subject to the terms, covenants and provisions hereof. 

        2.1.2  Each
of Servicer and Special Servicer shall diligently perform its services hereunder (a) in accordance with (i) applicable laws, (ii) the terms
and provisions of the Investment File, (iii) the express terms hereof, and (iv) the customary and usual standards of practice of prudent institutional commercial mortgage loan servicers,
and (b) to the extent consistent with the foregoing requirements, in the same manner in which Servicer and Special Servicer services commercial loans for its own account and for other third
party portfolios of loans similar to the Investments, whichever is higher, but without regard to any relationship that Servicer and Special Servicer or any Affiliate of Servicer and Special Servicer
may have with the related Underlying Obligor or any Affiliate of such Underlying Obligor or to Servicer's and Special Servicer's right to receive compensation for its services hereunder. The servicing
standards described in the preceding sentence are herein referred to as "Accepted Servicing Practices". 

        2.1.3  Without
limiting the foregoing, subject to Section 3.9, Special Servicer shall service and administer any
Investment as to which a Special Servicing Transfer Event has occurred and is continuing (in each case, a "Specially Serviced Investment"); provided,
that Servicer shall continue to receive payments and make all calculations, and prepare, or cause to be prepared, all reports, required hereunder with respect to the Specially Serviced Investments,
except for the reports specified herein as prepared by Special Servicer, as if no Special Servicing Transfer Event had occurred, and to render such services with respect to such Specially Serviced
Investments as are specifically provided for herein; provided, further, however, that Servicer shall not be liable for failure to comply with such duties insofar as such failure results from a failure
of Special Servicer to provide sufficient information to Servicer to comply with such duties or failure by Special Servicer to otherwise comply with its obligations hereunder. Each Investment that
becomes a Specially Serviced Investment shall continue as such until satisfaction of the conditions specified in Section 3.9. Without limiting
the foregoing, subject to Section 3.9, Servicer shall service and administer all Investments that are not Specially Serviced Investments. Special
Servicer shall make the inspections, use its reasonable efforts to collect the statements and forward to Servicer and Seller reports in respect of the related Underlying Mortgage Properties, with
respect to Specially Serviced Investments in accordance with, and to the extent required by, Accepted Servicing Practices. After notification to Servicer, Special Servicer may contact any Underlying
Obligor of any Performing Investment if efforts by Servicer to collect required financial information have been unsuccessful or any other issues remain unresolved. Such contact shall be coordinated
through and with the cooperation of Servicer. 

        2.2    Subservicing.    

        To
the extent necessary for Servicer to comply with any applicable laws, regulations, codes or ordinances relating to Servicer's Loan Servicing obligations hereunder, Servicer or Special
Servicer, as the case may be, may subservice to any Person any of its Loan Servicing obligations hereunder; provided,  however, that any such appointment of
a sub-servicer shall be subject to the prior written approval of Buyer and  provided, further, however, that Servicer or Special Servicer, as the case may be, shall provide oversight and supervision with
regard to the
performance of all subcontracted services and any subservicing agreement shall be consistent with and subject to the provisions of this Agreement. Neither the existence of any subservicing agreement
nor any of the provisions of this Agreement relating to subservicing shall relieve Servicer or Special Servicer, as the case may 

8

 

be,
of its obligations to Buyer and Seller hereunder. Notwithstanding any such subservicing agreement, Servicer or Special Servicer, as the case may be, shall be obligated to the same extent and under
the same terms and conditions as if Servicer or Special Servicer, as the case may be, alone were servicing the related Investments in accordance with the terms of this Agreement. Servicer or Special
Servicer, as the case may be, shall be solely liable for all fees owed by it to any subservicer, regardless of whether Servicer's or Special Servicer's, as the case may be, compensation hereunder is
sufficient to pay such fees. Buyer and Seller shall have no obligation or liability to any subservicer as a result of Buyer's entry into this Agreement. Each subservicing agreement must be in writing
and provide that it automatically terminates or otherwise no longer applies to any of the Investments, without payment of any termination fee by Buyer and Seller, upon the termination of this
Agreement. Servicer or Special Servicer, as the case may be, at its own expense, shall provide Buyer and Seller with copies of all subservicing agreements upon request. Each sub-servicer
must be authorized to transact business in the applicable state(s), if, and to the extent, required by applicable law to enable the sub-servicer to perform its obligations hereunder and
under the applicable sub-servicing agreement. 

        2.3    Authority of Servicer and Special Servicer.    

        2.3.1  In
performing its Loan Servicing obligations hereunder, Servicer or Special Servicer, as the case may be, shall, except as otherwise provided herein and subject to the
terms of this Agreement, have full power and authority, acting alone or through others, to take any and all actions in connection with such Loan Servicing or Special Servicing that it deems necessary
or appropriate. Without limiting the generality of the foregoing, Servicer or Special Servicer, as the case may be, is hereby authorized and empowered by Buyer when Servicer or Special Servicer, as
the case may be, deems it appropriate in its best judgment, to execute and deliver, on behalf of Buyer (a) any and all financing statements, continuation statements and other documents or
instruments necessary to maintain the lien of each Mortgage on the related Mortgaged Property and any other related collateral; and (b) any and all instruments of satisfaction or cancellation,
or of partial or full release or discharge and all other comparable instruments with respect to each of the Investments; provided,  however, that Servicer
or Special Servicer, as the case may be, shall notify Buyer and Seller in writing in the event that Servicer or Special Servicer,
as the case may be, intends to execute and deliver any such instrument referred to in clause (b) above and, except in connection with any payment in full of any Investment, shall proceed with
such course of action only upon receipt of the Directing Party's written approval thereof. The Directing Party agrees to cooperate with Servicer or Special Servicer, as the case may be, by either
executing and delivering to Servicer or Special Servicer, as the case may be, from time to time (i) powers of attorney evidencing Servicer's or Special Servicer's, as the case may be, authority
and power under this Section, or (ii) such documents or instruments deemed necessary or appropriate by Servicer or Special Servicer, as the case may be, to enable Servicer or Special Servicer,
as the case may be, to carry out its Loan Servicing or Special Servicing obligations hereunder. 

        2.3.2  In
the performance of its Loan Servicing or Special Servicing obligations hereunder, Servicer or Special Servicer, as the case may be, shall take any action that is
directed by the Directing Party that relates to Servicer's Loan Servicing obligations under this Agreement or, as appropriate, to Special Servicer's Special Servicing obligations under this Agreement;  provided, however, that Servicer or Special Servicer, as the case may be, shall not be obligated to
take, or to refrain from taking, any action that the Directing Party requests that Servicer or Special Servicer, as the case may be, take or refrain from taking to the extent that Servicer or Special
Servicer, as the case may be, determines in its reasonable and good faith judgment that such action or inaction (i) may cause a violation of applicable laws, regulations, codes, ordinances,
court orders or restrictive covenants with respect to any Investment, Underlying Obligor or Mortgaged Property; or 

9

 

(ii) may
cause a violation of any provision of the Master Repurchase Agreement, the applicable Note or any other document securing or evidencing such Investment. 

        2.3.3  Notwithstanding
anything to the contrary contained in the foregoing or any other provision of this Agreement, unless Servicer has obtained the prior written consent of
Buyer, neither Servicer nor Special Servicer shall take any of the following actions with respect to any Investment on behalf of Buyer: 

        A.    any
Material Modification, as defined in the Master Repurchase Agreement; 

        B.    responding
to any notices or requests in connection with the bankruptcy of a Underlying Obligor; or 

        C.    the
taking of any action to initiate, prosecute and manage foreclosure proceedings and other legal proceedings related thereto in connection with any Investment pursuant
to Section 3.8. 

        3    SERVICES TO BE PERFORMED    

        3.1    Services as Loan Servicer and Special Servicer.    

        3.1.1  Servicer
hereby agrees to serve as the loan servicer with respect to each of the Investments and to perform Loan Servicing as described below and as otherwise provided
herein, upon and subject to the terms of this Agreement. Subject to any limitation of authority under Section 2.3, "Loan
Servicing" shall mean those services pertaining to the Investments that, applying Accepted Servicing Practices, are required hereunder to be performed by Servicer, and that
shall include: 

        A.    reviewing
all available documents pertaining to the Investments, organizing, administering and maintaining the Servicing Files, and inputting all relevant information
into Servicer's loan servicing computer system; 

        B.    preparing
and filing or recording all financing statements, continuation statements and other documents or instruments and taking such other action necessary to maintain
the lien of any Mortgage on the related Mortgaged Property; 

        C.    monitoring
each Underlying Obligor's maintenance of insurance coverage on each Mortgaged Property as required by the related Investment File and causing to be maintained
adequate insurance coverage on each Mortgaged Property in accordance with Section 3.5; 

        D.    monitoring
the status of real estate taxes, assessments and other similar items and verifying the payment of such items for each Mortgaged Property in accordance with  Section 3.2; 

        E.    preparing
and delivering all reports and information required hereunder; 

        F.     procuring
and supervising the services of third parties (other than subservicers pursuant to Section 2.2) necessary
or appropriate in connection with the servicing of the Investments by Servicer; 

        G.    collecting
all payments due under the Investments (including, without limitation, principal and interest and tax and insurance payments), performing payment processing,
record keeping, administration of escrow and other accounts, interest rate adjustment, and other routine customer service functions; 

        H.    monitoring
any casualty losses or condemnation proceedings and administering any proceeds related thereto in accordance with the related Investment File; 

        I.     inspecting
the Mortgaged Properties in accordance with Section 3.7; 

10

 

 

        J.     transferring
the Servicing Files in connection with the termination of this Agreement; and notifying all Underlying Obligors of the appropriate place for communications
and payments, and collecting and monitoring all payments made with respect to the Investments. 

        K.    handling
requests from Underlying Obligors. 

        L.    processing
advance requests; 

        M.   the
approval of new leases of rental space in any of the Underlying Mortgaged Properties, but only to the extent that such leases involve less than the greater of either
30,000 square feet or thirty percent (30%) of the total net rentable area in the Underlying Mortgaged Property in question; and 

        N.    entering
into modifications of the documents evidencing a particular Investment, but only if such modification is in the best interests of Seller and Buyer and also is
not a Material Modification that has not been approved by Buyer. 

        3.1.2  Special
Servicer agrees to serve as Special Servicer with respect to each Special Serviced Investment as provided herein in accordance with Accepted Servicing
Practices (such services, "Special Servicing"). Notwithstanding the foregoing, in no event shall the existence of provisions dealing with Special
Servicing in this Agreement shall be construed to waive or otherwise adversely affect any of the rights and remedies of Buyer under the Master Repurchase Agreement. 

        3.2    Escrow Accounts; Collection of Taxes, Assessments and Similar Items.    

        3.2.1  With
respect to the Investments, and subject to and as required by the terms of the related Investment File, Servicer shall establish and maintain one or more
segregated accounts with Buyer (each, an "Escrow Account") into which any or all Escrow Payments shall be deposited within two Business Days after
receipt and identification. Escrow Accounts shall be denominated either "Ares Commercial Real Estate Servicer LLC as agent for ACRC Lender W LLC, together with its respective successors
or assigns" or "[insert name of appropriate borrower] Ares Commercial Real Estate Servicer LLC as agent for ACRC Lender W LLC, together with its respective
successors or assigns". Servicer shall notify Buyer in writing of the location and account number of each Escrow Account it establishes and shall notify Buyer prior to any change thereof, and Servicer
shall maintain such account at a branch of Buyer, in any event. Withdrawals of amounts from an Escrow Account may be made, subject to any express provisions to the contrary herein, applicable laws,
and to the terms of the related Investment File governing the use of the Escrow Payments, only: (i) to effect payment of taxes, assessments, insurance premiums, ground rents and other items
required or permitted to be paid from escrow; (ii) to refund to Underlying Obligors any sums determined to be in excess of the amounts required to be deposited therein; (iii) to pay
interest, if required under the Investment File, to Underlying Obligors on balances in the Escrow Accounts; (iv) to pay to Servicer from time to time any interest or investment income earned on
funds deposited therein pursuant to Section 3.4; (v) to apply funds to the indebtedness of the Investment in accordance with the terms
thereof; (vi) to reimburse Servicer or Special Servicer for any Servicing Expense for which Escrow Payments should have been made by Underlying Obligors, but only from amounts received on the
Investment that represent late collections of Escrow Payments thereunder; (vii) to withdraw any amount deposited in the Escrow Accounts that was not required to be deposited therein; or
(viii) to clear and terminate the Escrow Accounts at the termination of this Agreement. 

        3.2.2  Servicer
shall maintain accurate records with respect to each Mortgaged Property reflecting the status of taxes, assessments and other similar items that are or may
become a lien thereon and the status of insurance premiums payable with respect thereto as well as the payment of ground rents with respect to each ground lease (to the extent such information is
reasonably available). To the extent that the related Investment File requires Escrow Payments to be made by 

11

 

a
Underlying Obligor, Servicer shall use Best Efforts to obtain, from time to time, all bills for the payment of such items, and shall effect payment prior to the applicable penalty or termination
date, employing for such purpose Escrow Payments paid by Underlying Obligor pursuant to the terms of the Investment and deposited in the related Escrow Account by Servicer. To the extent that the
Investment does not require an Underlying Obligor to make Escrow Payments, Servicer shall use its Best Efforts to require that any such payment be made by Underlying Obligors prior to the applicable
penalty or
termination date. Subject to Section 3.5 with respect to the payment of insurance premiums, if a Underlying Obligor fails to make any such
payment on a timely basis or collections from Underlying Obligor are insufficient to pay any such item when due, the amount of any shortfall shall be paid by Servicer as a Servicing Expense. 

        3.3    Collection Account.    

        With
respect to the Investments, Servicer shall deposit all Income, other than Escrow Payments or payments described in  Section 5.1.2, into the Collection Account, in accordance with the terms of the
Master Repurchase Agreement. 

        3.4    Permitted Investments.    

        Servicer
or Special Servicer, as the case may be, may direct any depository institution or trust company in which the Accounts are maintained to invest the funds held therein in one or
more Permitted Investments; provided, however, that such funds shall be either (i) immediately
available or (ii) available in accordance with a schedule that will permit Servicer or Special Servicer, as the case may be, to meet its obligations hereunder. Servicer or Special Servicer, as
the case may be, shall be entitled to all income and gain realized from the investment of funds deposited in the Accounts. Servicer or Special Servicer, as the case may be, shall deposit from its own
funds in the applicable Account the amount of any loss incurred in respect of any such investment of funds immediately upon the realization of such loss. Notwithstanding the foregoing, Servicer or
Special Servicer, as the case may be, shall not direct the investment of funds held in any Escrow Account and retain the income and gain realized therefrom if the related Investment File or applicable
law requires that Underlying Obligor to be entitled to the income and gain realized from the investment of funds deposited therein. In such event, Servicer or Special Servicer, as the case may be,
shall direct the depository institution or trust company in which such Escrow Accounts are maintained to invest the funds held therein (1) in accordance with Underlying Obligor's written
investment instructions, if the Investment File or applicable law require such funds to be invested in accordance with Underlying Obligor's direction; and (2) in accordance with Buyer's written
investment instructions, if the Investment File and applicable law do not permit Underlying Obligor to direct the investment of such funds; provided,  however, that in either event (i) such funds shall be either (y) immediately available or (z) available in accordance with a
schedule that will permit Servicer or Special Servicer, as the case may be, to meet the payment obligations for which the Escrow Account was established, and (ii) Servicer or Special Servicer,
as the case may be, shall have no liability for any loss in investments of such funds that are invested pursuant to such written instructions by Buyer. 

        3.5    Maintenance of Insurance Policies.    

        3.5.1  Servicer
shall use its Best Efforts to cause Underlying Obligor of each Investment to maintain for each Investment such insurance as is required to be maintained
pursuant to the related Investment File. If Underlying Obligor fails to maintain such insurance, then Servicer shall notify Buyer and Seller
of such breach and, to the extent available at commercially reasonable rates, cause to be maintained (i) fire and hazard insurance with extended coverage in an amount that is at least equal to
the lesser of the current principal balance of such Investment and the replacement cost of the improvements that are a part of the related Mortgaged Property, (ii) to the extent required by the
terms of the Investment File, earthquake or other special hazard 

12

 

insurance,
and (iii) to the extent that the Mortgaged Property is located in a federally designated special flood hazard area, flood insurance in respect thereof, in each case with insurers
meeting the minimum standards set forth in the related Investment File or, if no such standards are expressed, as approved in writing by the Directing Party. Such flood insurance shall be in an amount
equal to the lesser of (y) the unpaid principal balance of the related Investment or (z) the maximum amount of such insurance as is available for the related Mortgaged Property under the
National Flood Insurance Act. After notifying Buyer pursuant to the second preceding sentence, Servicer shall take such action as Buyer reasonably requests with respect to the maintenance of any other
forms of insurance that are required to be maintained pursuant to the related Investment File, except to the extent that such insurance is not available at commercially reasonable rates. All such
policies shall be endorsed with standard mortgagee clauses with loss payable to Buyer and its assigns, and shall be in an amount sufficient to avoid the application of any co-insurance
clause. The costs of maintaining the insurance policies that Servicer is required to maintain pursuant to this Section shall be paid by Servicer as a Servicing Expense. 

        3.5.2  Servicer
may fulfill its obligation to maintain insurance, as provided in Section 3.5.1, through a master force
placed insurance policy, the cost of which shall be paid by Servicer as a Servicing Expense, provided that such cost is limited to the incremental cost
of such policy allocable to such Mortgaged Property (i.e., other than any minimum or standby premium payable for such policy whether or not any
Mortgaged Property is then covered thereby, which shall be paid by Servicer. Such master force placed insurance policy may contain a deductible clause, in which case Servicer shall, in the event that
there shall not have been maintained on the related Mortgaged Property a policy otherwise complying with the provisions of Section 3.5.1, and
there shall have been one or more losses that would have been covered by such a policy had it been maintained, immediately deposit into the related Collection Account from its own funds the amount not
otherwise payable under the master force placed insurance policy because of such deductible to the extent that such deductible exceeds the deductible limitation required under the related Investment
File, or, in the absence of such deductible limitation, the deductible limitation that is consistent with Accepted Servicing Practices. 

        3.5.3  Each
of Servicer and Special Servicer shall keep in force, at its own expense during the term of this Agreement, a policy or policies of insurance in form and amounts
that are consistent with Accepted Servicing Practices, covering loss occasioned by the errors and omissions of Servicer's or
Special Servicer's officers and employees in connection with its obligations hereunder. Upon the request of Buyer or Seller, Servicer shall cause to be delivered to Buyer and/or Seller, as applicable,
a copy of each insurance policy. Servicer shall promptly report in writing to Buyer and Seller any material changes that may occur in such policy or policies. All such insurance shall be maintained
with an insurance company having a claims paying ability of no less than "A" from Standard & Poor's or any other rating agency approved by Buyer in Buyer's reasonable discretion. No provision
of this Section requiring such fidelity bond and errors and omissions insurance shall diminish or relieve Servicer or Special Servicer, as applicable, from its duties and obligations as set forth in
this Agreement. 

        3.6    Delivery and Possession of Servicing Files.    

        On
or before the related Servicing Transfer Date, Seller, on behalf of Buyer, shall deliver or cause to be delivered to Servicer (i) a Servicing File with respect to each
Investment; and (ii) the amounts, if any, received by Seller representing Escrow Payments previously made by Underlying Obligors. Servicer shall promptly acknowledge receipt of the Servicing
File and Escrow Payments for the Investments and shall promptly deposit such Escrow Payments in the Escrow Accounts established pursuant to this Agreement. The contents of each Servicing File
delivered to Servicer are and shall be held in trust by Servicer for the benefit of Buyer as the owner thereof; Servicer's possession of the contents of each Servicing File so delivered is for the
sole purpose of servicing the related Investment; and such 

13

 

possession
by Servicer shall be in a custodial capacity only. Servicer shall release its custody of the contents of any Servicing File only in accordance with written instructions from Buyer, and upon
request of Buyer, Servicer shall deliver to Buyer the Servicing File or a copy of any document contained therein; provided,  however, that if Servicer is
unable to perform its Loan Servicing obligations with respect to the related Investment after any such release or delivery
of the Servicing File, then Servicer's responsibilities for Loan Servicing with respect to such Investment may be terminated immediately by Servicer upon written notice to Buyer and Seller.
Notwithstanding the foregoing, Servicer shall make delivery of the Servicing File to Seller instead of Buyer, in the event that the delivery is made on account of the repurchase of a Purchased Asset
pursuant to the Master Repurchase Agreement. 

        3.7    Inspections.    

        Servicer
shall perform or cause to be performed a physical inspection of each Mortgaged Property in accordance with Accepted Servicing Practices at least annually or if (a) the
related Investment becomes delinquent for a period of 60 days or more, (b) Buyer or Seller requests such an inspection, or (c) Servicer, with the approval of the Directing Party,
determines that it is prudent to conduct such an inspection. Servicer shall prepare a written report in form and substance reasonably acceptable to the
Directing Party, of each such inspection and shall promptly deliver a copy of such report to Buyer and Seller. The reasonable out of pocket expenses incurred by Servicer in connection with any such
inspections (including any out of pocket expenses related to travel and lodging and any charges incurred through the use of a qualified third party to perform such services) shall be paid as a
Servicing Expense; provided, however, that with respect to the annual inspection of any Mortgaged
Property, such expenses shall be borne by Servicer. 

        3.8    Exercise of Remedies Upon Investment Defaults.    

        Upon
the failure of any Underlying Obligor to make any required payment of principal, interest or other amounts due under a Investment, or otherwise to perform fully any material
obligations under any of the related Investment File, in either case within any applicable grace period, Servicer shall, upon discovery of such failure, promptly notify Buyer and Seller in writing. As
directed in writing by the Directing Party in each instance, Servicer shall issue notices of default, declare events of default, declare due the entire outstanding principal balance, and otherwise
take all reasonable actions (that do not constitute Special Services) under the related Investment in preparation for Special Servicer to realize upon the underlying collateral; provided, however,
that in no event shall Servicer acquire any Mortgaged Property on behalf of Buyer, by foreclosure or otherwise, without the prior written approval of Buyer. In the event that title to any of the
Mortgaged Properties is acquired by Buyer, Seller or Persons designated by Buyer, Seller or by a third party at a foreclosure or trustee's sale, the servicing rights and obligations of Servicer with
respect to the related Investment shall terminate, unless Buyer and Servicer have agreed pursuant to Section 3.1 that Servicer shall perform
Special Services with respect to any such Mortgaged Property. 

        3.9    Transfer of Servicing Between Servicer and Special Servicer; Record Keeping; Asset Status Report.    

        3.9.1  Upon
the occurrence of any Special Servicing Transfer Event with respect to any Investment of which Servicer has notice, Servicer shall on the same day give notice
thereof to Special Servicer, Buyer and Seller, and shall use its reasonable efforts to provide Special Servicer with all information, documents (but excluding the original documents constituting the
Servicing File) and records (including records stored electronically on computer tapes, magnetic discs and the like) relating to such Investment, as applicable, and reasonably requested by Special
Servicer to enable it to assume its duties hereunder with respect thereto without acting through a sub-servicer. Servicer shall use its reasonable efforts to comply with the preceding
sentence within five Business Days of the date such Investment becomes a Specially Serviced Investment and in any event shall continue to act as Servicer and administrator of such Investment until
Special Servicer has 

14

 

commenced
the servicing of such Investment, which shall occur upon the receipt by Special Servicer of the information, documents and records referred to in the preceding sentence. With respect to each
Investment, Servicer shall instruct the related Underlying Obligor to continue to remit all payments in respect of such Investment to Servicer. Notwithstanding the preceding sentence, with respect to
each Investment that becomes a Specially Serviced Investment, Special Servicer may instruct the related Underlying Obligor to remit all payments in respect of such Investment to Special Servicer,
provided that the payee in respect of such payments shall remain Servicer. Special Servicer shall remit to Servicer any such payments received by it pursuant to the preceding sentence within one
Business Day of receipt. Servicer shall forward any notices it would otherwise send to Underlying Obligor of a Specially Serviced Investment to Special Servicer who shall send such notice to the
related Underlying Obligor. 

        3.9.2  Upon
determining that a Specially Serviced Investment has become a Corrected Investment, Special Servicer shall on the same day give notice thereof to Servicer and
shall deliver to Servicer information reasonably necessary for Servicer to resume servicing, and upon giving such notice and information reasonably necessary for Servicer to resume servicing, such
Investment shall cease to be a Specially Serviced Investment in accordance with the first proviso of the definition of Specially Serviced Investment, Special Servicer's obligation to service such
Investment shall terminate and the obligations of Servicer to service and administer such Investment as a Performing Investment shall resume. In addition, if the related Underlying Obligor has been
instructed, pursuant to the preceding paragraph, to make payments to Special Servicer, then upon such determination, Special Servicer shall instruct the related Underlying Obligor to remit all
payments in respect of such corrected Investment directly to Servicer. 

        3.9.3  In
servicing any Specially Serviced Investment, Special Servicer shall provide to Buyer and Seller copies of all documents included within the definition of "Servicing
File" and, upon request by Buyer or Seller, copies of any additional related Investment information, including correspondence with the related Investment, and Special Servicer shall promptly provide
copies of all of the foregoing to Servicer as well as copies of any analysis or internal review prepared by or for the benefit of Special Servicer. 

        3.9.4  Not
later than two Business Days preceding each date on which Servicer is required to furnish reports under  Section 4.1, Special Servicer shall deliver to Servicer and Seller a written statement
describing, on an
investment-by-investment basis, (i) the amount of all payments on account of interest received on each Specially Serviced Investment, the amount of all payments on
account of principal, including principal prepayments, on each Specially Serviced Investment, and the amount of net insurance proceeds and Net Liquidation Proceeds received with respect to each
Specially Serviced Investment (it being understood and agreed that to the extent this information is provided in accordance with Section 4.1,
Special Servicer's reporting obligations shall be
deemed to be satisfied) and (ii) such additional information relating to the Specially Serviced Investments as Servicer or the Buyer or Seller reasonably requests to enable it to perform its
duties under this Agreement. Such statement and information shall be furnished to Servicer in writing and/or in such electronic media as is acceptable to Servicer. 

        3.9.5  Notwithstanding
the provisions of the preceding Section 3.9.4, Servicer shall maintain ongoing payment records
with respect to each of the Specially Serviced Investments and shall provide Special Servicer with any information reasonably required by Special Servicer to perform its duties under this Agreement.
Special Servicer shall provide Servicer with any information reasonably required by Servicer to perform its duties under this Agreement. 

        3.9.6  No
later than 60 days after an Investment becomes a Specially Serviced Investment, Special Servicer shall deliver to Buyer and Seller a report (the
"Asset Status Report") with respect 

15

 

to
such Investment and the related Collateral. Such Asset Status Report shall set forth the following information to the extent reasonably determinable: 

        A.    date
of transfer of servicing of such Investment to Special Servicer; 

        B.    summary
of the status of such Specially Serviced Investment and any negotiations with the related Underlying Obligor; 

        C.    a
discussion of the legal and environmental considerations reasonably known to Special Servicer, consistent with Accepted Servicing Practices, that are applicable to the
exercise of remedies as aforesaid and to the enforcement of any related guaranties or other collateral for the related Investment and whether outside legal counsel has been retained; 

        D.    the
most current rent roll and income or operating statement available for the Underlying Mortgaged Property; 

        E.    Special
Servicer's recommendations on how such Specially Serviced Investment might be returned to performing status (including the modification of a monetary term, and
any work-out, restructure or debt forgiveness) and returned to Servicer for regular servicing or foreclosed or otherwise realized upon (including any proposed sale of a Specially Serviced
Investment); 

        F.     a
copy of the last obtained Appraisal of the Underlying Mortgaged Property; and 

        G.    such
other information as Special Servicer deems relevant in light of Accepted Servicing Practices. 

        If
within ten Business Days of receiving an Asset Status Report, Buyer does not disapprove such Asset Status Report in writing, Special Servicer shall implement the recommended action as
outlined in such Asset Status Report; provided, however, that Special Servicer may not take any action that is contrary to applicable law, this
Agreement, the Master Repurchase Agreement, Accepted Servicing Practices (taking into consideration the best interests of Buyer) or the terms of the documents evidencing the related Investment. If
Buyer disapproves such Asset Status Report within such ten-Business-Day period, Special Servicer will revise such Asset Status Report and deliver to Buyer a new Asset Status
Report as soon as practicable, but in no event later than 20 Business Days after such disapproval. Special Servicer shall revise such Asset Status Report until Buyer fails to disapprove such revised
Asset Status Report in writing within ten Business Days of receiving such revised Asset Status Report. Special Servicer may, from time to time, modify any Asset Status Report it has previously
delivered and implement such report, provided such report shall have been prepared, reviewed and not rejected pursuant to the terms of this Section, and in particular, shall modify and resubmit such
Asset Status Report to Buyer (or Seller, as applicable) if (i) the estimated sales proceeds, foreclosure proceeds, work-out or restructure terms or anticipated debt forgiveness
varies materially from the amount on which the original report was based or (ii) the related Underlying Obligor becomes the subject of bankruptcy proceedings. Notwithstanding the foregoing,
Special Servicer may, following the occurrence of an extraordinary event with respect to the related Collateral, take any action set forth in such Asset Status Report before the expiration of a
ten-Business-Day period if Special Servicer has reasonably determined that failure to take such action would materially and adversely affect the interests of Buyer and it has
made a reasonable effort to contact Buyer, Practices, and, upon making such determination, shall implement the recommended action. Notwithstanding the foregoing, it is understood that the Asset Status
Report and associated procedures described above are not intended to replace or satisfy any specific consent or approval right that Buyer may have. Without limiting the generality of the foregoing,
nothing in any of the foregoing shall be construed to permit the Servicer or the Special Servicer to take any action inconsistent with the understanding set forth in  Section 1.2 or any of the
actions described in Section 2.3.3 without the prior written
consent of Buyer. 

16

 

        Special
Servicer shall have the authority to meet with Underlying Obligor for any Specially Serviced Investment and take such actions consistent with Accepted Servicing Practices and the
related Asset Status Report. Special Servicer shall not take any action inconsistent with the related Asset Status Report, unless such action would be required in order to act in accordance with
Accepted Servicing Practices, this Agreement, applicable law or the documents evidencing the related Investment. 

        4    STATEMENTS AND REPORTS    

        4.1    Reporting by Servicer.    

        4.1.1  As
soon as available, but in no event later than the earlier of (x) the time period contemplated by the Master Repurchase Agreement and
(y) 30 days after the end of the previous month, Servicer shall render to Buyer and Seller a report reflecting activity with respect to the Investments as of the close of business for
the preceding calendar month (or, in the case of the first calendar month, the Servicing Transfer Date) in a format and containing such information as Buyer and Seller shall reasonably require, which
shall include a written report of Servicer's review and analysis of all materials collected in accordance with Section 4.1.1 of this Agreement.
Such report shall be made available in both written and electronic format. 

        4.1.2  Annually,
Servicer shall prepare and file the reports of foreclosures and abandonments of any Mortgaged Property and the annual information returns with respect to
each Underlying Obligor's debt service payments under the Investments as required by Sections 6050J and  6050H, respectively, of the Internal Revenue
Code and the rules and regulations promulgated thereunder, as amended. 

        4.1.3  Not
later than twenty days after each calendar month, Servicer shall forward to Buyer and Seller a statement setting forth the status of the Escrow Account as of the
close of business on the last day of such calendar month showing, for the preceding calendar month the aggregate of deposits into and withdrawals from the Escrow Account. 

        4.1.4  Servicer
shall use its Best Efforts to promptly collect from each Underlying Obligor (and forward on to Buyer and Seller), the property operating statements, rent
rolls, financial statements and other financial reports that are required to be delivered by Underlying Obligor pursuant to the related Investment File. 

        5    SERVICER'S AND SPECIAL SERVICER'S COMPENSATION AND EXPENSES    

        5.1    Servicing Compensation.    

        5.1.1  As
consideration for servicing the Investments subject to this Agreement, Servicer shall be entitled to a Servicing Fee for each Investment (other than a Specially
Serviced Investment) remaining subject to this Agreement during any calendar month or part thereof. Such Servicing Fee shall be payable monthly on the date that is one Business Day prior to the
Remittance Date (as defined in the Master Repurchase Agreement). Servicer may pay itself the Servicing Fee on the date that is one Business Day prior to the Remittance Date in the manner set forth in
Section 5.01 of the Master Repurchase Agreement. The right to receive the Servicing Fee may not be transferred in whole or in part except in connection with the transfer of all of Servicer's
responsibilities and obligations under this Agreement. 

        5.1.2  As
further compensation for its activities hereunder, Servicer shall be entitled to retain and shall not be required to deposit into the Collection Account any
payments or collections received by it with respect to an Investment from the related Underlying Obligor that represent amounts so paid or collected over and above any other amounts then due with
respect to such Investment and that constitute reimbursement for Servicing Expenses actually collected. 

17

 

        5.1.3  Servicer
shall, prior to the occurrence of an Event of Default under the Master Repurchase Agreement, be entitled to retain, and shall not be required to deposit in
the Collection Account pursuant to Section 3.3, Additional Servicing Compensation in the form of 100% of modification, assumption, waiver and
consent fees, to the extent any such fees are actually collected from the related Underlying Obligor with respect to an Investment and represent amounts so collected over and above any other amounts
then due with respect to such Investment. In addition, Servicer shall be entitled to retain as Additional Servicing Compensation, other customary charges, and amounts collected for checks returned for
insufficient funds, in each case only to the extent actually paid by the related Underlying Obligor, and Servicer shall not be required to deposit such amounts in the Collection Account pursuant to  Section 3.3. 

        5.1.4  Servicer
shall be required to pay all expenses incurred by it in connection with its servicing activities hereunder and shall not be entitled to reimbursement thereof
except as specifically provided for herein. 

        5.1.5  Each
of the Servicer and the Special Servicer acknowledges that it has been appointed hereunder on an interim basis as an accommodation by Buyer in connection with the
transactions contemplated by the Master Repurchase Agreement and any provisions of this Agreement regarding compensation or reimbursement of expenses are subject in all respects to the terms of the
Master Repurchase Agreement. 

        5.2    Servicing Expenses.    

        Notwithstanding
any other provision hereof, Servicer shall obtain the written approval of Buyer prior to incurring any Servicing Expense; provided, however, that until notified otherwise
by Buyer, Servicer need not obtain such approval with respect to any Servicing Expense that is (i) incurred by Servicer pursuant to  Sections 3.2.2 or 3.5 or (ii) made for any purposes other than those described in
item (i) above, is not over $25,000 and is made in an emergency situation to preserve and protect the Mortgaged Property or the safety of the public in connection with such Mortgaged Property
or (iii) made for any purpose other than those described in clauses (i) or (ii) above and is not more than $5,000 per item. 

        In
the event there are insufficient funds collected from the related Underlying Obligor to permit the payment of any Servicing Expenses, Servicer shall make advances from its own funds
with respect to the payment of such expenses, in which event Servicer shall be reimbursed for such advances solely to the extent of any payments described in  Section 5.1.2 received from the related
Underlying Obligor as reimbursement for such Servicing Expense. 

        5.3    Special Servicing Compensation.    

        5.3.1  As
compensation for its activities hereunder, Special Servicer shall be entitled to receive the Special Servicing Fee with respect to each Specially Serviced
Investment. As to each Specially Serviced Investment, the Special Servicing Fee shall accrue from time to time at the Special Servicing Fee Rate and shall be computed on the basis of the stated
principal balance of such Specially Serviced Investment and in the same manner as interest is calculated on the Specially Serviced Investments and, in connection with any partial month interest
payment, for the same period respecting which any related interest payment due on such Specially Serviced Investment is computed. The Special Servicing Fee shall be payable monthly, on an
asset-by-asset basis, in accordance with the procedures for the payment of the Servicing Fee to Servicer pursuant to  Section 5.1. The right to receive the Special Servicing Fee may not be
transferred in whole or in part except in connection with the transfer of
all of Special Servicer's responsibilities and obligations under this Agreement. Special Servicer shall be required to pay all expenses related to Special Servicer's internal costs, consisting of
overhead and employees' expenses incurred by it in 

18

 

connection
with its servicing activities hereunder, and shall not be entitled to reimbursement thereof except as specifically provided for herein. 

        5.3.2  Servicer
shall not be required to deposit into the Collection Account in accordance with Section 3.3 any
Additional Servicing Compensation in the form of 100% of all fees with respect to application, assumption, extension, modification, waiver and consent, in each case, received on any Specially Serviced
Investments to the extent such fees are paid by Underlying Obligor. Special Servicer shall also be entitled to Additional Servicing Compensation in the form of a Workout Fee with respect to each
Corrected Investment at the Workout Fee Rate on such Investment for so long as it remains a Corrected Investment. The Workout Fee with respect to any Corrected Investment will cease to be payable if
such loan again becomes a Specially Serviced Investment; provided that a new Workout Fee will become payable if and when such Specially Serviced Investment again becomes a Corrected Investment. If
Special Servicer is terminated or resigns, it shall retain the right to receive any and all Workout Fees payable in respect of Investment that became Corrected Investments prior to the time of such
termination or resignation, except the Workout Fees will no longer be payable if the Investment subsequently becomes a Specially Serviced Investment. If Special Servicer resigns or is terminated
(other than for cause), it will receive any Workout Fees payable on Specially Serviced Investments for which the resigning or terminated Special Servicer had cured the event of default through a
modification, restructuring or workout negotiated by Special Servicer and evidenced by a signed writing with respect to which one scheduled payment has been made, but that had not as of the time
Special Servicer resigned or was terminated become a Corrected Investment solely because the related Underlying Obligor had not had sufficient time to make three consecutive timely Monthly Payments
and that subsequently becomes a Corrected Investment as a result of Underlying Obligor making such three consecutive timely Monthly Payments. The successor Special Servicer will not be entitled to any
portion of such Workout Fees. A Liquidation Fee will be payable with respect to each Specially Serviced Investment as to which Special Servicer receives a full or discounted payoff (or an unscheduled
partial payment to the extent such prepayment is required by Special Servicer as a condition to a workout) with respect thereto from the related Underlying Obligor or any Liquidation Proceeds or
Insurance and Condemnation Proceeds subject to the exceptions set forth in the definition of Liquidation Fee (such Liquidation Fee to be paid out of such Liquidation Proceeds, or Insurance and
Condemnation Proceeds, as appropriate). Notwithstanding anything to the contrary described above, no Liquidation Fee will be payable and Special Servicer shall not be entitled to any such Liquidation
Fee hereunder based on, or out of, Liquidation Proceeds received in connection with (y) any event described in clauses (iii) or (iv) of the definition of "Liquidation Proceeds" or
(z) unless otherwise agreed to by Special Servicer, the sale of any Specially Serviced Investment consummated less than ten Business Days after the occurrence of the related Special Servicing
Transfer Event. If, however, Liquidation Proceeds or Insurance and Condemnation Proceeds are received with respect to any Corrected Investment and Special Servicer is properly entitled to a Workout
Fee, such Workout Fee will be payable based on and out of the portion of such Liquidation Proceeds and Insurance and Condemnation Proceeds that constitute principal and/or interest on such Investment.
Notwithstanding anything herein to the contrary, Special Servicer shall be entitled to receive only a Liquidation Fee or a Workout Fee, but not both, with respect to proceeds on any Investment. 

        6    SERVICER, BUYER AND SELLER    

        6.1    Servicer and Special Servicer Not to Assign; Merger or Consolidation of Servicer and Special Servicer.    

        Except
as otherwise provided for in this Section or in Section 2.2, Servicer and/or Special Servicer may not assign this Agreement
or any of its rights, powers, duties or obligations hereunder without the written consent of Buyer and Seller; provided,  however, that Servicer and/or
Special Servicer may assign 

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this
Agreement to a Qualified Affiliate without the written consent of Buyer or Seller as long as Servicer or Special Servicer remain obligated to the same extent and under the same terms and
conditions as if Servicer or Special Servicer alone was servicing the related Investments in accordance with the terms of this Agreement. 

        Servicer
and Special Servicer may be merged or consolidated with or into any Person, or transfer all or substantially all of its assets to any Person, in which case any Person resulting
from any merger or consolidation to which it shall be a party, or any Person succeeding to its business shall be the successor of Servicer and Special Servicer hereunder, and shall be deemed to have
assumed all of the liabilities of Servicer and Special Servicer hereunder. 

        6.2    Liability and Indemnification of Servicer, Special Servicer and Buyer.    

        Neither
Servicer, Special Servicer nor any of their Affiliates or any of the directors, officers, employees or agents thereof shall be under any liability to Buyer, Seller or any third
party for taking or refraining from taking any action, in good faith pursuant to or in connection with this Agreement, or for errors in judgment;  provided, however, that this provision shall not protect Servicer or any such Person against any
liability that would otherwise be imposed on Servicer or any such Person by reason of Servicer's or Special Servicer's willful misfeasance, bad faith, breach or gross negligence in the performance of
its duties hereunder. Servicer, Special Servicer and any director, officer, employee or agent thereof may rely in good faith on any document of any kind that, prima facie, is properly executed and
submitted by any appropriate Person respecting any matters arising hereunder. In the event that Servicer or Special Servicer sustains any loss, liability or expense by reason of such exception and
that results from any overcharges to Underlying Obligors under the Investments, to the extent that such overcharges were collected by Servicer or Special Servicer and remitted to Buyer, Buyer shall
promptly remit such overcharge to the related Underlying Obligor after Buyer's receipt of written notice from Servicer or Special Servicer regarding such overcharge. 

        Buyer,
Seller and any director, officer, employee or agent thereof shall be indemnified and held harmless by Servicer or Special Servicer against any loss, liability or expense incurred,
including reasonable attorneys' fees, by reason of (i) Servicer's or Special Servicer's willful misfeasance, bad faith, breach or gross negligence in the performance of its duties hereunder or
(ii) a breach of Servicer's representations and warranties set forth in Section 7.1. Buyer and any director, officer, employee or agent
thereof shall be indemnified and held harmless by Seller, Servicer and Special Servicer against any loss, liability or expense incurred, including reasonable attorneys' fees, by reason of
(i) Seller's willful misfeasance, bad faith, breach or gross negligence in the performance of its duties hereunder or (ii) a breach of Seller's representations and warranties set forth
in this Agreement. 

        The
provisions of this Section shall survive any termination of the rights and obligations of Servicer and Special Servicer hereunder. 

        6.3    Successors to Servicer and Special Servicer.    

        6.3.1  Following
the termination or resignation of the Servicer or Special Servicer, Buyer shall identify and retain a successor servicer or special servicer, as applicable,
subject to the terms of the Master Repurchase Agreement. Such successor servicer or special servicer, as the case may be, shall be referred to herein as the
"Successor". The Successor shall be the successor in all respects to Servicer or Special Servicer, as the case may be, in its capacity as Servicer or
Special Servicer under this Agreement and the transactions set forth or provided for herein and shall have all the rights and powers and be subject to all the responsibilities, duties and liabilities
relating thereto placed on Servicer or Special Servicer, as the case may be, accruing after such termination; provided, however, that any failure to
perform such duties or responsibilities caused by Servicer's or Special Servicer's failure to comply with Section 7.1 shall not be considered a
default by the Successor hereunder. In its capacity as Successor, the Successor shall have the same limitation of 

20

 

liability
herein granted to Servicer or Special Servicer, as the case may be. In connection with any such appointment and assumption, Buyer may make such arrangements for the compensation of such
Successor as it and such Successor shall agree. Servicer or Special Servicer, as the case may be, shall cooperate with the Successor, once appointed, to take such reasonable action, consistent with
this Agreement, to effectuate any such succession. 

        6.3.2  Subject
to the provisions of Section 6.1, neither Servicer nor Special Servicer shall resign from the
obligations and duties hereby imposed on it, except in the event that (i) its duties hereunder are no longer permissible under applicable law or are in material conflict by reason of applicable
law with any other activities carried on by it or (ii) a successor servicer or special servicer approved by Buyer, has assumed Servicer's or Special Servicer's as applicable, responsibilities
and obligations. Except for a resignation under clause 6.3.2(i) herein, no resignation by Servicer or Special Servicer under this Agreement shall
become effective until the Successor shall have assumed Servicer's or Special Servicer's, as the case may be, responsibilities and obligations. Resignation under  clause 6.3.2(i) shall be effective
within 30 days of such notice, unless applicable law requires Servicer's or Special Servicer's
resignation to be immediate. 

        7    REPRESENTATIONS AND WARRANTIES; DEFAULT    

        7.1    Representations and Warranties.    

        7.1.1  Servicer
hereby makes the following representations and warranties to Buyer and Seller: 

        A.    Due Organization, Qualification and Authority.    Servicer is a limited liability company duly organized,
validly existing and in good standing under the laws of the State of Delaware, and is duly qualified to transact business, in good standing and licensed in each state to the extent necessary to ensure
the enforceability of each Investment and to perform its duties and obligations under this Agreement in accordance with the terms of this Agreement; Servicer has the full power, authority and legal
right to execute and deliver this Agreement and to perform in accordance herewith; Servicer has duly authorized the execution, delivery and performance of this Agreement and has duly executed and
delivered this Agreement; this Agreement constitutes the valid, legal, binding obligation of Servicer, enforceable in accordance with its terms, except as enforceability may be limited by bankruptcy,
insolvency, reorganization, receivership, moratorium or other laws relating to or affecting the rights of creditors generally and by general principles of equity (regardless of whether such
enforcement is considered in a proceeding in equity or at law); 

        B.    No Conflicts.    Neither the execution and delivery of this Agreement, nor the fulfillment of or compliance with
the terms and conditions of this Agreement by Servicer, will (i) conflict with or result in a breach of any of the terms, conditions or provisions of Servicer's certificate of formation, or
operating agreement, or any agreement or instrument to which Servicer is now a party or by which it (or any of its properties) is bound, or constitute a default or result in an acceleration under any
of the foregoing; (ii) conflict with or result in a breach of any legal restriction applicable to Servicer if compliance therewith is necessary (a) to ensure the enforceability of any
Investment, or (b) for Servicer to perform its obligations under this Agreement in accordance with the terms hereof; (iii) result in the violation of any law, rule, regulation, order,
judgment or decree to which Servicer or its property is subject if compliance therewith is necessary (a) to ensure the enforceability of any Investment, or (b) for Servicer to perform
its obligations under this Agreement in accordance with the terms hereof; or (iv) result in the creation or imposition of any lien, charge or encumbrance that would have a material
adverse effect upon any of its property pursuant to the terms of any mortgage, contract, deed of trust or other instrument, or materially impair the ability of Buyer, to realize on the Investments; 

21

 

        C.    No Litigation Pending.    There is no action, suit, or proceeding pending or to Servicer's knowledge threatened
against Servicer that, either in any one instance or in the aggregate, would draw into question the validity of this Agreement or the Investments, or would be likely to impair materially the ability
of Servicer to perform its duties and obligations under the terms of this Agreement; 

        D.    No Consent Required.    No consent, approval, authorization or order of, or registration or filing with, or
notice to, any court or governmental agency or body having jurisdiction or regulatory authority over Servicer is required for (i) Servicer's execution and delivery of, this Agreement, or
(ii) the consummation of the transactions contemplated by this Agreement, or, to the extent required, such consent, approval, authorization, order, registration, filing or notice has been
obtained, made or given (as applicable), except that Servicer may not be duly qualified to transact business as a foreign corporation or licensed in one or more states if such qualification or
licensing is not necessary (a) to ensure the enforceability of any Investment, or (b) for Servicer to perform its obligations under this Agreement in accordance with the terms hereof. 

        7.1.2  Special
Servicer hereby makes the following representations and warranties to Buyer and Seller: 

        A.    Due Organization, Qualification and Authority.    Special Servicer is a limited liability company duly
organized, validly existing and in good standing under the laws of the State of Delaware, and is duly qualified to transact business and is in good standing and licensed in each state to the extent
necessary to ensure the enforceability of each Investment and to perform its duties and obligations under this Agreement in accordance with the terms of this Agreement; Special Servicer has the full
power, authority and legal right to execute and deliver this Agreement and to perform in accordance herewith; Special Servicer has duly authorized the execution, delivery and performance of this
Agreement and has duly executed and delivered this Agreement; this Agreement constitutes the valid, legal, binding obligation of Special Servicer, except as enforceability may be limited by
bankruptcy, insolvency, reorganization, receivership, moratorium or other laws relating to or affecting the rights of creditors generally and by general principles of equity (regardless of whether
such enforcement is considered in a proceeding in equity or at law); 

        B.    No Conflicts.    Neither the execution and delivery of this Agreement, nor the fulfillment of or compliance with
the terms and conditions of this Agreement by Special Servicer, (v) conflicts with or results in a breach of any of the terms, conditions or provisions of Special Servicer's certificate of
formation, articles of association or bylaws, as amended; (w) conflicts with or results in a breach of any
agreement or instrument to which Special Servicer is now a party or by which it (or any of its properties) is bound, or constitutes a default or results in an acceleration under any of the foregoing
if compliance therewith is necessary (1) to ensure the enforceability of any Investment, or (2) for Special Servicer to perform its obligations under this Agreement in accordance with
the terms hereof; (x) conflicts with or results in a breach of any legal restriction if compliance therewith is necessary (1) to ensure the enforceability of any Investment, or
(2) for Special Servicer to perform its obligations under this Agreement in accordance with the terms hereof; (y) results in the violation of any law, rule, regulation, order, judgment
or decree to which Special Servicer or its property is subject if compliance therewith is necessary (1) to ensure the enforceability of any Investment, or (2) for Special Servicer to
perform its obligations under this Agreement in accordance with the terms hereof; or (z) results in the creation or imposition of any lien, charge or encumbrance that would have a material
adverse effect upon any of its properties pursuant to the terms of any mortgage, contract, deed of trust or other instrument, or materially impairs the ability of (1) Buyer to realize on any
Investment, or (2) Special Servicer to perform its obligations hereunder; 

22

 

 

        C.    No Litigation Pending.    There is no action, suit, or proceeding pending or, to Special Servicer's knowledge,
threatened against Special Servicer that, either in any one instance or in the aggregate, would draw into question the validity of this Agreement or the Investments, or would be likely to impair
materially the ability of Special Servicer to perform its duties and obligations under the terms of this Agreement; 

        D.    No Consent Required.    No consent, approval, authorization or order of, or registration or filing with, or
notice to, any court or governmental agency or body having jurisdiction or regulatory authority over Special Servicer is required for (x) Special Servicer's execution and delivery of this
Agreement, or (y) the consummation of the transactions of Special Servicer contemplated by this Agreement, or, to the extent required, such consent, approval, authorization, order,
registration, filing or notice has been obtained, made or given (as applicable), except that Special Servicer may not be duly qualified to transact business as a foreign limited liability company or
licensed in one or more states if such qualification or licensing is not necessary (1) to ensure the enforceability of any Investment, or (2) for Special Servicer to perform its
obligations under this Agreement in accordance with the terms hereof. 

        E.    No Default/Violation.    Special Servicer is not in default with respect to any order or decree of any court or
any order, regulation or demand of any federal, state, municipal or governmental agency, which, in the judgment of Special Servicer, will have consequences that would materially and adversely affect
the financial condition or operations of Special Servicer or its properties taken as a whole or its performance hereunder; 

        F.     E&O Insurance.    Special Servicer currently maintains a fidelity bond and errors and omissions insurance or
self insures, in either case meeting the requirements of Section 3.5.3 hereof. 

        7.1.3  Buyer
and Seller each hereby represents and warrants to Servicer and Special Servicer that the representing party has the full power, authority and legal right to
execute and deliver this Agreement
and to perform in accordance herewith; the representing party has duly authorized the execution, delivery and performance of this Agreement and has duly executed and delivered this Agreement; this
Agreement constitutes the valid, legal, binding obligation of Buyer and Seller, respectively, enforceable in accordance with its terms, except as enforceability may be limited by bankruptcy,
insolvency, reorganization, receivership, moratorium or other laws relating to or affecting the rights of creditors generally and by general principles of equity (regardless of whether such
enforcement is considered in a proceeding in equity or at law). 

        7.1.4  Seller
represents and warrants to Buyer and to Servicer that Buyer is the owner of the Investments. 

        7.2    Events of Default.    

        "Event of Default", wherever used herein, means any one of the following events: 

        7.2.1  any
failure by Servicer or Special Servicer, as the case may be, to remit any payment required to be so remitted by Servicer under the terms of this Agreement when and
as due that continues unremedied by Servicer or Special Servicer, as the case may be, for a period of two Business Days after the date on which such remittance was due; or 

        7.2.2  any
failure on the part of Servicer or Special Servicer, as the case may be, duly to observe or perform in any material respect any other of the covenants or
agreements on the part of Servicer contained in this Agreement, or any representation or warranty set forth by Servicer in Section 7.1 shall be
untrue or incorrect in any material respect, and, in either case, such failure or breach materially and adversely affects the value of any Investment or Mortgaged Property or the priority of the lien
on any Mortgaged Property or the interest of Buyer, that in either case 

23

 

continues
unremedied for a period of 30 days after the date on which written notice of such failure or breach, requiring the same to be remedied, shall have been given to Servicer or Special
Servicer, as the case may be, by Buyer (or such extended period of time reasonably approved by Buyer, provided that Servicer or Special Servicer, as the case may be, is diligently proceeding in good
faith to cure such failure or breach); or 

        7.2.3  a
decree or order of a court or agency or supervisory authority having jurisdiction in respect of Servicer or Special Servicer, as the case may be, for the
commencement of an involuntary case under any present or future federal or state bankruptcy, insolvency or similar law, for the appointment of a conservator or receiver or liquidator in any
insolvency, readjustment of debt, marshaling of assets and liabilities or similar proceedings, or for the winding up or liquidation of its affairs shall have been entered against Servicer or Special
Servicer, as the case may be, and such decree or order shall remain in force undischarged or unstayed for a period of 90 days; or 

        7.2.4  Servicer
or Special Servicer, as the case may be, shall consent to the appointment of a conservator or receiver or liquidator in any insolvency, readjustment of debt,
marshalling of assets and liabilities or similar proceedings of or relating to Servicer or Special Servicer, as the case may be, or of or relating to all or substantially all of its property; or 

        7.2.5  Servicer
or Special Servicer, as the case may be, shall admit in writing its inability to pay its debts generally as they become due, file a petition to take
advantage of any applicable federal or state bankruptcy, insolvency or similar law, make an assignment for the benefit of its creditors or voluntarily suspend payment of its obligations; or 

        7.2.6  Any
"Event of Default" as defined under the Master Repurchase Agreement shall occur; 

then,
and in each and every case, so long as an Event of Default shall not have been remedied, Buyer may, by notice in writing to Servicer or Special Servicer, as the case may be, in addition to
whatever rights Buyer may have at law or in equity, including injunctive relief and specific performance, terminate all of the rights and obligations of Servicer or Special Servicer, as the case may
be, under this Agreement and in and to the Investments and the proceeds thereof, without Buyer or Seller incurring any penalty or fee of any kind whatsoever in connection therewith;  provided,
however, that such termination shall be without prejudice to any rights of Servicer or Special
Servicer, as the case may be, relating to the payment of Servicing Fees, Special Servicing Fees, Additional Servicing Compensation and the reimbursement of any Servicing Expenses that have been made
by it under the terms of this Agreement through and including the date of such termination; provided that in no event shall such funds be payable to
Servicer or Special Servicer, as the case may be, if Servicer or Special Servicer, as the case may be, has not remitted all funds to Buyer, as the case may be to which the recipient is entitled
hereunder or if Buyer has unpaid claims against Servicer relating to the Event of Default(s) that are the basis for such termination. Except as otherwise expressly provided in this Agreement, no
remedy provided for by this Agreement shall be exclusive of any other remedy, and each and every remedy shall be cumulative and in addition to any other remedy, and no delay or omission to exercise
any right or remedy shall impair any such right or remedy or shall be deemed to be a waiver of any Event of Default. On or after the receipt by Servicer or Special Servicer, as the case may be, of
such written notice of termination, all authority and power of Servicer or Special Servicer, as the case may be, under this Agreement, whether with respect to the Investments or otherwise, shall pass
to and be vested in Buyer and Servicer or Special Servicer, as the case may be, agrees to cooperate with Buyer and Seller in effecting the termination of Servicer's or Special Servicer's, as the case
may be, responsibilities and rights hereunder, including, without limitation, the transfer of the Servicing Files and the funds held in the Escrow Account as set forth in  Section 8.1. 

24

 

        Buyer
may waive any default by Servicer in the performance of its obligations hereunder and its consequences. Upon any such waiver of a past default, such default shall cease to exist,
and any Event of Default arising therefrom shall be deemed to have been remedied for every purpose of this Agreement. No such waiver shall extend to any subsequent or other default or impair any right
consequent thereon except to the extent expressly so waived. 

        8    TERMINATION; TRANSFER OF INVESTMENTS    

        8.1    Termination of Agreement.    

        8.1.1  This
Agreement shall terminate (unless sooner terminated pursuant to the Section 7 or the other provisions of
this Section 8) with respect to all Investments on January 31, 2012. To the extent Buyer desires to renew the appointment of Master
Servicer or Special Servicer, in connection with its delivery of a statement of Price Differential due on the following Remittance Date (each as defined in the Master Repurchase Agreement), Buyer
shall deliver notice to Seller, Master Servicer and Special Servicer of its intent to renew the servicer appointment for an additional 30-day period, provided, if Buyer fails to deliver
such notice, Seller shall have the right to request that Buyer deliver such notice on or before the Remittance Date. In the event Buyer fails to renew Master Servicer's or Special Servicer's
appointment, Buyer shall appoint a successor servicer (which successor servicer shall be Wells Fargo Bank, N.A. or such other successor to whom, so long as no default or Event of Default (as defined
in the Master Repurchase Agreement) has occurred and is continuing, Seller has provided its consent, such consent not to be unreasonably withheld, conditioned or delayed). During such time as the
appointment of Master Servicer or Special Servicer has expired and prior to the appointment of any successor servicer, Master Servicer and Special Servicer shall continue to service the Investments in
accordance with the terms hereof and shall cooperate with the transition of servicing to the successor servicer. 

        8.1.2  This
Agreement may be terminated by Buyer, with respect to any or all of the Investments, upon the occurrence and continuance of an Event of Default under this
Agreement or the Master Repurchase Agreement, immediately upon the delivery of written notice thereof to Servicer or Special Servicer, as the case may be. This Agreement may also be terminated by
Servicer or Special Servicer, as the case may be, or by Buyer, with respect to any or all of the Investments, without cause, upon at least 30 days written notice to the other parties to this
Agreement. This Agreement may also be terminated at any time and without cause with respect to any Investment upon the sale of such Investment in accordance with  Section 8.2. 

        8.1.3  Termination
pursuant to this Section or as otherwise provided herein shall be without prejudice to any rights of Buyer, Seller, Servicer or Special Servicer, as the
case may be, that may have accrued through the date of termination hereunder. Upon such termination, Servicer or Special Servicer, as the case may be, shall (i) remit all funds in the related
Accounts to Buyer or such other Person designated by Buyer, net of accrued Additional Servicing Compensation and Servicing Expenses through the termination date to which Servicer or Special Servicer,
as the case may be, would be entitled to payment or reimbursement hereunder; (ii) deliver all related Servicing Files to Buyer or to Persons designated by Party; and (iii) fully
cooperate with Buyer and Seller and any new servicer to effectuate an orderly transition of Loan Servicing of the related Investments. Notwithstanding the foregoing, Buyer shall have no responsibility
for, and Servicer or Special Servicer shall bear any loss associated with, any Additional Servicing Compensation and Servicing Expenses (with interest thereon at the Advance Rate) that remain unpaid
or unreimbursed after Servicer has netted out such amounts pursuant to the preceding sentence shall be remitted by Buyer to Servicer within seven Business Days after its receipt of an itemized invoice
therefor. 

25

 

        8.2    Transfer of Investments.    

        8.2.1  Servicer
and Special Servicer acknowledge that any or all of the Investments may be sold, transferred, assigned or otherwise conveyed by Buyer to any third party
without the consent or approval of Servicer or Special Servicer. Any such transfer shall constitute a termination of this Agreement with respect to such Purchased Assets. Servicer and Special Servicer
shall not be obligated to perform Loan Servicing and Special Servicing with respect to such transferred Investments for any such third party unless and until Servicer and Special Servicer and such
third party execute a servicing agreement having terms that are mutually agreeable to Servicer, Special Servicer and such third party. 

        8.2.2  Until
Servicer and Special Servicer receive written notice from Buyer of the sale, transfer, assignment or conveyance of one or more Investments, Buyer shall be
presumed to be the owner and holder of such Investments, Servicer and Special Servicer shall continue to earn Servicing Fees, Special Servicing Fees, Workout Fees or Liquidation Fees, and Additional
Servicing Compensation with respect to such Investments and Servicer and Special Servicer shall continue to remit payments and other collections in respect of such Investments to Buyer, pursuant to
the terms and provisions hereof. 

        9    MISCELLANEOUS PROVISIONS    

        9.1    Amendment; Waiver.    

        This
Agreement contains the entire agreement between the parties relating to the subject matter hereof, and no term or provision hereof may be amended or waived unless such amendment or
waiver is in writing and signed by Servicer, Special Servicer, Buyer and Seller. 

        9.2    Governing Law.    

        This
Agreement shall be construed in accordance with the laws of the State of New York, and the obligations, rights and remedies of the parties hereunder shall be determined in
accordance with such laws, without giving effect to principles of conflicts of laws. 

        9.3    Notices.    

        All
demands, notices and communications hereunder shall be in writing and addressed in each case as follows: 

        9.3.1  if
to Buyer, at: 

WELLS
FARGO BANK, NATIONAL ASSOCIATION

301 South College Street

Charlotte, North Carolina 28288

Attention:      John Nelson

Telephone:    (704) 383-8238

Telecopy:      (704) 715-0066 

        with
copies to: 

Cadwalader
Wickersham & Taft LLP

227 West Trade Street

Charlotte, North Carolina 28202

Attention:      Stuart N. Goldstein, Esq.

Telephone:    (704) 348-5258

Telecopy:      (704) 348-5200 

26

 

        9.3.2  if
to Seller, at: 

ACRC
LENDER W LLC

Two North LaSalle Street, 9th Floor

Chicago, IL 60602

Attention:      Sharon Ephraim

Telephone:    312-324-5900

Telecopy:      312-324-5901 

        with
copies to: 

ACRC
LENDER W LLC

Two North LaSalle Street, 9th Floor

Chicago, IL 60602

Attention:      Legal Department

Telephone:    312-324-5900

Telecopy:      312-324-5901 

        9.3.3  if
to Servicer or Special Servicer, at: 

ARES
COMMERCIAL REAL ESTATE SERVICER LLC

Two North LaSalle Street, 9th Floor

Chicago, IL 60602

Attention:      Sharon Ephraim

Telephone:    312-324-5900

Telecopy:      312-324-5901 

        with
copies to: 

ARES
COMMERCIAL REAL ESTATE SERVICER LLC

Two North LaSalle Street, 9th Floor

Chicago, IL 60602

Attention:      Legal Department

Telephone:    312-324-5900

Telecopy:      312-324-5901 

        And
to: 

ARES
COMMERCIAL REAL ESTATE SERVICER LLC

Two North LaSalle Street, 9th Floor

Chicago, IL 60602

Attention:      Henry Beiber

Telephone:    312-324-5900

Telecopy:      312-324-5901 

        Any
of the above-referenced Persons may change its address for notices hereunder by giving notice of such change to the other Persons. All notices and demands shall be deemed to have
been given at the time of the delivery at the address of such Person for notices hereunder if personally delivered, mailed by certified or registered mail, postage prepaid, return receipt requested,
or sent by overnight courier or telecopy; provided, however, that any notice delivered after normal
business hours of the recipient or on a day that is not a Business Day shall be deemed to have been given on the next succeeding Business Day. 

        To
the extent that any demand, notice or communication hereunder is given to Servicer or Special Servicer by a Responsible Officer of Buyer or Seller, such Responsible Officer shall be
deemed to have the requisite power and authority to bind Buyer or Seller with respect to such communication, and 

27

 

Servicer
or Special Servicer may conclusively rely upon and shall be protected in acting or refraining from acting upon any such communication. To the extent that any demand, notice or communication
hereunder is given by a Responsible Officer of Servicer or Special Servicer, such Responsible Officer shall be deemed to have the requisite power and authority to bind Servicer or Special Servicer
with respect to such communication, and Buyer and Seller may conclusively rely upon and shall be protected in acting or refraining from acting upon any such communication. Servicer and Special
Servicer shall simultaneously give to Seller a copy of all notices provided to Buyer hereunder. 

        9.4    Severability of Provisions.    

        If
one or more of the provisions of this Agreement shall be for any reason whatever held invalid or unenforceable, such provisions shall be deemed severable from the remaining covenants,
agreements and provisions of this Agreement and such invalidity or unenforceability shall in no way affect the validity or enforceability of such remaining provisions or the rights of any parties
thereunder. To the extent permitted by law, the parties hereto hereby waive any provision of law that renders any provision of this Agreement invalid or unenforceable in any respect. 

        9.5    Inspection and Audit Rights.    

        Servicer
and Special Servicer each agree that, on reasonable prior notice, during normal business hours, it will permit any agent or representative of Buyer and/or Seller, during
Servicer's and Special Servicer's normal business hours, to examine all the books of account, records, reports and other papers of Servicer and Special Servicer relating to the Investments, to make
copies and extracts therefrom, to cause such books to be audited by accountants selected by Buyer and/or Seller, and to discuss matters relating to the Investments with Servicer's and Special
Servicer's officers, employees and accountants (and by this provision Servicer and Special Servicer hereby authorize such accountants to discuss with such agents or representatives such matters), all
at such reasonable times and as often as may be reasonably requested. Any reasonable expenses incurred by Servicer and Special Servicer solely as a direct result of the exercise by Buyer of any right
under this Section shall be borne by the inspecting and requesting party. 

        9.6    Binding Effect; No Partnership; Counterparts.    

        The
provisions of this Agreement shall be binding upon and inure to the benefit of the respective successors and permitted assigns of the parties hereto. Nothing herein contained shall
be deemed or construed to create (i) a partnership or joint venture between the parties hereto and the services of Servicer and Special Servicer shall be rendered as an independent contractor
for Buyer and Seller,
respectively, or (ii) any lien, claim or charge for the benefit of Servicer and Special Servicer against any Investment, Investment File or Servicing Files. For the purpose of facilitating the
execution of this Agreement as herein provided and for other purposes, this Agreement may be executed simultaneously in any number of counterparts, each of which counterparts shall be deemed to be an
original, and such counterparts shall constitute but one and the same instrument. 

        9.7    Protection of Confidential Information.    

        Servicer
and Special Servicer shall keep confidential and shall not divulge to any party, without Buyer's (or Seller's, as applicable) prior written consent, any information pertaining
to the Investments, the related Mortgaged Properties or the related Underlying Obligors except to the extent that (a) it is appropriate for Servicer and Special Servicer to do so (i) in
working with legal counsel, auditors, other advisors, taxing authorities or other governmental agencies, (ii) in accordance with Accepted Servicing Practices or (iii) when required by
any law, regulation, ordinance, court order or subpoena or (b) Servicer or Special Servicer is disseminating general statistical information relating to the investments being serviced by
Servicer (including the Investments) so long as Servicer or Special Servicer does not identify Buyer, Seller or Underlying Obligors. 

28

 

        9.8    General Interpretive Principles.    

        For
purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires: 

        9.8.1  the
terms defined in this Agreement have the meanings assigned to them in this Agreement and include the plural as well as the singular, and the use of any gender
herein shall be deemed to include the other gender; 

        9.8.2  accounting
terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting principles; 

        9.8.3  references
herein to an "Article," "Section," or other subdivision without reference to a document are to the designated Article, Section or other applicable
subdivision of this Agreement; 

        9.8.4  reference
to a Section, subsection, paragraph or other subdivision without further reference to a specific Section is a reference to such Section, subsection,
paragraph or other subdivision, as the case may be, as contained in the same Section in which the reference appears; 

        9.8.5  the
words "herein," "hereof," "hereunder" and other words of similar import refer to this Agreement as a whole and not to any particular provision; 

        9.8.6  the
term "include" or "including" shall mean without limitation by reason of enumeration; and 

        9.8.7  the
Article, Section and subsection headings herein are for convenience of reference only, and shall not limit or otherwise affect the meaning of the provisions
contained therein. 

        9.9    Further Agreements.    

        Servicer,
Special Servicer, Buyer and Seller each agrees to execute and deliver to the other such additional documents, instruments or agreements as may be reasonably requested by the
other and as may be necessary or appropriate to effectuate the purposes of this Agreement. 

[SIGNATURE
PAGE FOLLOWS] 

29

 

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

 

							
	 	 	 WELLS FARGO BANK, NATIONAL ASSOCIATION ("Buyer")
	

 	
 	
 By:	
 	
/s/ Karen Whittlesey

 
	 	 	 	 	Name:	 	Karen Whittlesey
	 	 	 	 	Title:	 	Vice President
	

 	
 	
 ACRC LENDER W LLC ("Seller")
	

 	
 	
 By:	
 	
/s/ Timothy B. Smith

 
	 	 	 	 	Name:	 	Timothy B. Smith
	 	 	 	 	Title:	 	Vice President
	

 	
 	
 ARES COMMERCIAL REAL ESTATE SERVICER LLC, a Delaware limited liability company (in its capacity as "Servicer")
	

 	
 	
 By:	
 	
/s/ Timothy B. Smith

 
	 	 	 	 	Name:	 	Timothy B. Smith
	 	 	 	 	Title:	 	Vice President
	

 	
 	
 ARES COMMERCIAL REAL ESTATE SERVICER LLC, a Delaware limited liability company (in its capacity as "Special Servicer")
	

 	
 	
 By:	
 	
/s/ Timothy B. Smith

 
	 	 	 	 	Name:	 	Timothy B. Smith
	 	 	 	 	Title:	 	Vice President

 

 

QuickLinks

Exhibit 10.20

TABLE OF CONTENTS

Index of Defined Terms

INTERIM SERVICING AGREEMENT

PRELIMINARY STATEMENTUse these links to rapidly review the document

  TABLE OF CONTENTS

 
 

  Exhibit 10.21    
    

        CUSTODIAL AGREEMENT  

 among  

 WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Buyer,  

 ACRC LENDER W LLC,

as Seller,  

 and  

 WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Custodian  

Dated as of December 14, 2011 

 

 

  TABLE OF CONTENTS    
    

 

 

					
	 
	 	 
	 	Page 
	  ARTICLE I
	 	 
	

   DEFINITIONS
	
 	
 
	 Section 1.01
	 	 Defined Terms
	 	

1
	 Section 1.02
	 	 General Interpretative Principles
	 	3
	  ARTICLE II
	 	 
	

   DELIVERY OF MORTGAGE ASSET FILE
	
 	
 
	 Section 2.01
	 	 Delivery
	 	

3
	  ARTICLE III
	 	 
	

   ASSET SCHEDULE AND EXCEPTION REPORT; TRUST RECEIPT
	
 	
 
	 Section 3.01
	 	 Asset Schedule and Exception Report; Trust Receipt
	 	

6
	 Section 3.02
	 	 Custodian
	 	8
	 Section 3.03
	 	 Discrepancies
	 	8
	  ARTICLE IV
	 	 
	

   OBLIGATIONS OF CUSTODIAN
	
 	
 
	 Section 4.01
	 	 Custody
	 	

8
	 Section 4.02
	 	 Obligations
	 	8
	 Section 4.03
	 	 Levy, Attachment and Other Court Orders
	 	8
	 Section 4.04
	 	 Pledge or Rehypothecation
	 	9
	  ARTICLE V
	 	 
	

   RELEASE OF MORTGAGE ASSET FILES
	
 	
 
	 Section 5.01
	 	 Release of Documentation
	 	

9
	 Section 5.02
	 	 Release of Mortgage Asset File and Documentation
	 	10
	 Section 5.03
	 	 Release to Third-Party
	 	10
	 Section 5.04
	 	 Other Release
	 	10
	 Section 5.05
	 	 Notification by Buyer
	 	11
	 Section 5.06
	 	 Tracking
	 	11
	 Section 5.07
	 	 Method of Shipment
	 	11
	  ARTICLE VI
	 	 
	

   FEES AND EXPENSES OF CUSTODIAN
	
 	
 
	 Section 6.01
	 	 Fees
	 	

11
	  ARTICLE VII
	 	 
	

   REMOVAL OR RESIGNATION OF CUSTODIAN
	
 	
 
	 Section 7.01
	 	 Resignation
	 	

11
	 Section 7.02
	 	 Removal and Discharge
	 	11
	 Section 7.03
	 	 Successor
	 	11

 

 i

 
 

					
	 
	 	 
	 	Page 
	  ARTICLE VIII
	 	 
	

   EXAMINATION OF FILES, BOOKS AND RECORDS
	
 	
 
	 Section 8.01
	 	 Examination
	 	

12
	  ARTICLE IX
	 	 
	

   INSURANCE
	
 	
 
	 Section 9.01
	 	 Insurance
	 	

12
	  ARTICLE X
	 	 
	

   REPRESENTATIONS AND WARRANTIES
	
 	
 
	 Section 10.01
	 	 Custodian Representations and Warranties
	 	

13
	 Section 10.02
	 	 Seller Representations and Warranties
	 	14
	  ARTICLE XI
	 	 
	

   MISCELLANEOUS
	
 	
 
	 Section 11.01
	 	 No Adverse Interest
	 	

14
	 Section 11.02
	 	 Indemnification
	 	14
	 Section 11.03
	 	 Reliance of Custodian
	 	15
	 Section 11.04
	 	 Term of Agreement
	 	16
	 Section 11.05
	 	 Notices
	 	16
	 Section 11.06
	 	 Governing Law
	 	16
	 Section 11.07
	 	 Authorized Representatives
	 	16
	 Section 11.08
	 	 Amendment
	 	16
	 Section 11.09
	 	 Cumulative Rights
	 	16
	 Section 11.10
	 	 Assignment; Binding Upon Successors
	 	17
	 Section 11.11
	 	 Entire Agreement; Severability
	 	17
	 Section 11.12
	 	 Execution in Counterparts
	 	17
	 Section 11.13
	 	 Tax Reports
	 	17
	 Section 11.14
	 	 Assignment by Buyer
	 	17
	 Section 11.15
	 	 SUBMISSION TO JURISDICTION; WAIVERS
	 	17
	 Section 11.16
	 	 Confidentiality
	 	18
	 Annex 1
	 	 Form of Mortgage Asset File Checklist
	 	 
	 Annex 2
	 	 Trust Receipt
	 	 
	 Annex 3
	 	 [Reserved]
	 	 
	 Annex 4
	 	 Review Procedures
	 	 
	 Annex 5-A
	 	 Request For Release And Receipt
	 	 
	 Annex 5-B
	 	 Form of Request For Release of Documents And Receipt
	 	 
	 Annex 5-C
	 	 Request For Release
	 	 
	 Annex 6
	 	 Authorized Representatives of Buyer
	 	 
	 Annex 7
	 	 Authorized Representatives of Seller
	 	 
	 Annex 8
	 	 Authorized Representatives of Custodian
	 	 
	 Annex 9
	 	 Form of Lost Note Affidavit/Assignment of Mortgage
	 	 
	 Annex 10
	 	 Form of Transmittal & Bailment Letter
	 	 
	 Annex 11
	 	 Form of Bailee Agreement
	 	 

 

 ii

 

 

 
 

  CUSTODIAL AGREEMENT    
    

        This CUSTODIAL AGREEMENT, dated as of December 14, 2011 (as amended, restated, supplemented or otherwise modified and in effect
from time to time, this "Agreement") is made by and among: 

          (i)  WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association (including its successors in interest,
"Buyer") 

         (ii)  ACRC LENDER W LLC, a Delaware limited liability company
("Seller"); and 

        (iii)  WELLS FARGO BANK, NATIONAL ASSOCIATION, as custodian for Buyer pursuant to this Agreement (in such capacity, including
its successors in interest and any successor Custodian as permitted hereunder, "Custodian"). 

 
 

RECITALS    

        Seller
and Buyer are parties to that certain Master Repurchase and Securities Contract, dated as of December 14, 2011 (as amended, the
"Repurchase Agreement"), pursuant
to which Buyer agreed, subject to the terms and conditions of the Repurchase Agreement, that Buyer may from time to time enter into one or more Transactions consisting of a purchase by Buyer from
Seller of certain Purchased Assets and the subsequent repurchase by Seller from Buyer of such Purchased Assets. 

        It
is a condition precedent to the effectiveness of the Repurchase Agreement that the parties hereto execute and deliver this Agreement to provide for the appointment of Custodian as
custodian hereunder. Accordingly, the parties hereto agree as follows: 

 
 

  ARTICLE I
  
    DEFINITIONS    
    

        Section 1.01    Defined Terms.    Unless otherwise defined herein, capitalized terms used herein and defined in
the Repurchase Agreement shall have the respective meanings given them in the Repurchase Agreement, and the following terms shall have the following meanings: 

        "Asset Detail Report":    A report generated in written or electronic format by Custodian containing a list of the Purchased
Assets held by it under this Agreement from time to time. 

        "Asset Schedule and Exception Report":    With respect to any Mortgage Asset File, (1) the Mortgage Asset Schedule;
(2) an inventory report listing each of the documents in the Mortgage Asset File being held by Custodian for the benefit of Buyer in respect thereof; and (3) a list of codes identifying
all Exceptions related thereto. Each Asset Schedule and Exception Report shall set forth (a) the Purchased Assets being sold to Buyer on any applicable Purchase Date as well as the Purchased
Assets previously sold to Buyer and held by Custodian hereunder, (b) all Exceptions with respect thereto, with any updates thereto from the time last delivered, (c) upon a Request for
Release from Seller pursuant to Section 5.03 hereof, shipping information, including airbill number and name and address and (d) the
number of days elapsed since the date of shipment referred to in clause (c). 

        "Authorized Representative":    The meaning specified in Section 11.07 of
this Agreement. 

        "Bailee Agreement":    An agreement substantially in the form attached hereto as  Annex 11, delivered by Bailee to Buyer and Custodian with
respect to each Wet Mortgage Asset in accordance with the terms hereof and of  Section 3.01 of the Repurchase Agreement.
 

1

 

        "Business Day":    Any day other than (i) a Saturday or Sunday or (ii) a day on which banks in the State of New
York (or state in which any of Seller, Custodian or Buyer is located) is authorized or obligated by law or executive order to be closed. 

        "Buyer":    The meaning specified in the preamble to this Agreement. 

        "Custodial Delivery Failure":    The meaning specified in  Section 11.02(b). 

        "Custodian":    The meaning specified in the preamble to this Agreement. 

        "Electronic Transmission":    The delivery of information in an electronic format acceptable to the applicable recipient
thereof. 

        "Exception":    (i) With respect to any Purchased Asset, any variance from the applicable delivery requirements of  Section 2.01 hereof with
respect to the related Mortgage Asset File (giving effect to Seller's right to deliver certified copies in lieu of
original documents in certain circumstances), including any variance from the documents purported to be delivered in any related Mortgage Asset File Checklist or (ii) any Mortgage Loan Document
which has been released from the possession of Custodian for a period in excess of twenty (20) calendar days. 

        "Lost Note Affidavit":    The meaning specified in Section 11.02(b). 

        "Mortgage Asset Documents":    With respect to a Purchased Asset, the documents comprising the Mortgage Asset File for such
Purchased Asset. 

        "Mortgage Asset File":    As to each Purchased Asset, those documents listed in the applicable subsection of  Section 2.01 that are required to
be delivered to Custodian or which at any time come into the possession of Custodian. 

        "Mortgage Asset File Checklist":    As to each Purchased Asset, a document checklist substantially in the form attached as  Annex 1 hereto.

        "Mortgage Asset Schedule":    With respect to any Mortgage Asset File, a list of the related Purchased Assets, which list shall
specify standard loan information including the loan number, loan amount, and borrower name. 

        "Originator":    With respect to each Purchased Asset, the Person who originated or issued, as applicable, such Purchased Asset. 

        "Participation Agreement":    With respect to any Senior Interest, the participation agreement or similar agreement under which
such Senior Interest was created, if any. 

        "Repurchase Agreement":    The meaning specified in the Recitals. 

        "Request for Release":    A request of Seller in the form of  Annex 5-C hereto. 

        "Request for Release and Receipt":    A request of Seller in the form of  Annex 5-A hereto. 

        "Request for Release of Documents and Receipt":    A request of Seller in the form of  Annex 5-B hereto. 

        "Review Procedures":    The procedures set forth on Annex 4 hereto. 

        "Security Agreement":    With respect to any Purchased Asset, any security agreement, chattel mortgage or equivalent instrument,
whether contained in the related Mortgage or executed separately, creating in favor of the holder of such Mortgage a security interest in the personal property constituting security for repayment of
such Purchased Asset. 

        "Transmittal Letter" shall mean the Transmittal and Bailment Letter in the form of Annex 10 hereto. 

2

 

        "Trust Receipt":    A trust receipt in the form annexed hereto as Annex 2
delivered to Buyer by Custodian covering all of the Purchased Assets subject to this Agreement from time to time, as reflected on the Asset Schedule and Exception Report attached thereto in accordance
with Section 3.02. 

        "UCC":    The Uniform Commercial Code in effect in the applicable jurisdiction. 

        Section 1.02    General Interpretative Principles.    For purposes of this Agreement, except as otherwise
expressly provided or unless the context otherwise requires: 

        (a)   the
terms defined in this Agreement include the plural as well as the singular, and the use of any gender herein shall be deemed to include the other gender; 

        (b)   accounting
terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting principles as in effect from time to
time; 

        (c)   references
herein to "Articles", "Sections", "Subsections", "Paragraphs", and other Subdivisions without reference to a document are to designated Articles, Sections,
Subsections, Paragraphs and other subdivisions of this Agreement; 

        (d)   reference
to a Subsection without further reference to a Section is a reference to such Subsection as contained in the same Section in which the reference appears, and
this rule shall also apply to Paragraphs and other subdivisions; 

        (e)   the
words "herein", "hereof", "hereunder" and other words of similar import refer to this Agreement as a whole and not to any particular provision 

        (f)    the
term "include" or "including" shall mean without limitation by reason of enumeration; and 

        (g)   the
headings in this Agreement are solely for convenience of reference and shall be given no effect in the construction or interpretation of this Agreement. 

 
 

  ARTICLE II
  
    DELIVERY OF MORTGAGE ASSET FILE    
    

        Section 2.01    Delivery.    With respect to each Purchased Asset proposed to be purchased under the Repurchase
Agreement, Seller shall deliver to Custodian, in accordance with the required delivery times set forth in Section 3.01 hereof, the following
documents, as applicable to the respective Class of such Purchased Asset, each of which documents shall be identified in the related Mortgage Asset File Checklist delivered in advance to Custodian: 

        (a)   With respect to each Whole Loan

          (i)  the
original executed Mortgage Note relating to such Whole Loan, which Mortgage Note shall (A) be endorsed (either on the face thereof or pursuant to a separate
allonge) by the most recent endorsee prior to Seller, without recourse, to the order of Seller and further reflect a complete, unbroken chain of endorsement from the related Originator to Seller and
be accompanied by a separate allonge pursuant to which Seller has endorsed such Mortgage Note, without recourse, in blank or (B) with respect to any participation interest, endorsed by the most
recent endorsee prior to Seller, without recourse, to the order of Seller and further reflect a complete, unbroken chain of endorsement from the original participation holder to Seller and be endorsed
by Seller, without recourse, in blank; 

         (ii)  true
and correct copies of each Mortgage, each with evidence of recording, as well as any related loan agreement, intercreditor agreement, co-lender
agreement, environmental 

3

 

indemnity
agreement, guarantee agreement, letter of credit, lockbox agreement, cash management agreement, construction contract (if any) and all other material documents (including, without
limitation, opinions of counsel) or agreements, relating to such Whole Loan or affecting the rights (including, without limitation, the security interests) of any holder thereof; 

        (iii)  as
applicable, true and correct copies of any assignment, assumption, modification, consolidation or extension made prior to the related Purchase Date in respect of
the Mortgage Note or any document or agreement referred to in clause (ii) above, in each case, if the document or agreement being assigned, assumed, modified, consolidated or extended is
recordable, with evidence of recording thereon (unless the particular item has not been returned from the applicable recording office); 

        (iv)  as
applicable, an original assignment of each agreement referred to in clause (ii) above, in recordable form if the agreement being assigned is a recordable
document, executed in blank by Seller; 

         (v)  copies
of all UCC financing statements filed in respect of such Whole Loan prior to the related Purchase Date, including all amendments and assignments related thereto,
if any, in each case with evidence of filing in the applicable jurisdiction indicated thereon; 

        (vi)  except
with respect to a participation interest, as applicable, an original assignment of each UCC financing statement filed in respect of such Whole Loan prepared in
blank, in form suitable for filing; 

       (vii)  the
related original omnibus assignment, if any, executed in blank; 

      (viii)  a
copy of the related lender's title insurance policy (provided that any Exception to this item shall note whether the
related Mortgage Asset File includes a "marked-up" commitment for title insurance marked as binding and countersigned or evidenced as binding by an escrow letter or closing instructions); 

        (ix)  a
copy of a survey of the related Underlying Mortgaged Property, together with the surveyor's certificate thereon; 

         (x)  a
copy of any power of attorney relating to such Whole Loan; 

        (xi)  a
copy of any Ground Lease and/or Ground Lease estoppels relating to the related Underlying Mortgaged Property; 

       (xii)  any
additional documents identified on the related Mortgage Asset File Checklist delivered to Custodian in accordance with  Section 3.01(a) hereof; and 

      (xiii)  any
additional documents required to be added to the related Mortgage Asset File pursuant to this Agreement or the Repurchase Agreement. 

        (b)   With respect to each Senior Interest:

          (i)  the
original executed Senior Interest Note relating to such interest, which Senior Interest Note shall (A) with respect to any promissory note, be endorsed
(either on the face thereof or pursuant to a separate allonge) by the most recent endorsee prior to Seller, without recourse, to the order of Seller and further reflect a complete, unbroken chain of
endorsement from the related Originator to Seller and be accompanied by a separate allonge pursuant to which Seller has endorsed such Senior Interest Note, without recourse, in blank or
(B) with respect to any participation interest, endorsed by the most recent endorsee prior to Seller, without recourse, to the order of Seller and further reflect a complete, unbroken chain 

4

 

of
endorsement from the original participation holder to Seller and be endorsed by Seller, without recourse, in blank; 

         (ii)  true
and correct copies of the related intercreditor agreement, if any, and all other material documents (including, without limitation, opinions of counsel) or
agreements relating to the creation or issuance of such Senior Interest or affecting the rights (including, without limitation, the security interests) of any holder thereof, if any; 

        (iii)  as
applicable, true and correct copies of any assignment, assumption, modification, consolidation or extension made prior to the Purchase Date in respect of such
Senior Interest or any document or agreement referred to in clause (ii) above, in each case, if the document or agreement being assigned, assumed, modified, consolidated or extended is
recordable, with evidence of recording thereon (unless the particular item has not been returned from the applicable recording office); 

        (iv)  as
applicable, an original assignment of each agreement referred to in clause (ii) above, in recordable form if the agreement being assigned is a recordable
document, executed in blank by Seller; 

         (v)  copies
of all UCC financing statements, if any, filed in respect of such Senior Interest prior to the related Purchase Date, including all amendments and assignments
related thereto, if any, in each case with evidence of filing in the applicable jurisdiction indicated thereon; 

        (vi)  if
applicable, an original assignment of each UCC financing statement filed in respect of such Senior Interest, prepared in blank, in form suitable for filing; 

       (vii)  the
related original omnibus assignment, if any, executed in blank; 

      (viii)  a
copy of the related lender's title insurance policy (provided that any Exception to this item shall note whether the
related Mortgage Asset File includes a "marked-up" commitment for title insurance marked as binding and countersigned or evidenced as binding by an escrow letter or closing instructions); 

        (ix)  a
survey of the related Underlying Mortgaged Property, together with the surveyor's certificate thereon, to the extent in Seller's possession; 

         (x)  if
applicable, a copy of any power of attorney relating to such Senior Interest; 

        (xi)  a
copy of any Ground Lease and/or Ground Lease estoppels relating to the related Underlying Mortgaged Property; 

       (xii)  any
additional documents identified on the related Mortgage Asset File Checklist delivered to Custodian in accordance with  Section 3.01(a) hereof; and 

      (xiii)  any
additional documents required to be added to the related Mortgage Asset File pursuant to this Agreement or the Repurchase Agreement. 

        To
the extent required to be recorded, the original assignments required to be delivered pursuant to Section 2.01(a) - (b) above
may be in the form of one or more instruments in recordable form in any applicable filing offices. Each of the documents referred to in Section 2.01(a) -
(b) shall be executed, as applicable, by all relevant Persons. 

        (c)   With respect to each Mortgage Asset File:

          (i)  From
time to time, Seller shall forward to Custodian additional original documents or additional documents evidencing any assumption, modification, consolidation or
extension of the related Purchased Asset approved by Seller, in accordance with the terms of the Repurchase Agreement, and upon receipt of any such other documents, Custodian shall hold 

5

 

such
other documents as Buyer shall request from time to time. In addition, the delivery requirements of this Agreement will be satisfied with respect to Purchased Assets, or the corresponding
document evidencing the actual underlying obligation of the Underlying Obligor with respect to a Purchased Asset, on a provisional basis if an omnibus assignment is delivered, provided that the
original or conforming copies as may be required herein of the missing document(s) shall be delivered to Custodian as soon as practicable, but in no event later than forty-five
(45) days of the Purchase Date. 

         (ii)  With
respect to any Mortgage Asset File, if Seller cannot deliver, or cause to be delivered, any of the documents and/or instruments required to be delivered to
Custodian pursuant to Section 2.01(a) - (b) of this Agreement at the time they are required to be delivered, solely because of a delay caused by
the public recording office where such document or instrument has been delivered for recordation, the delivery requirements set forth in the Repurchase Agreement and  Section 2 of this Agreement
shall be deemed to have been satisfied as to such non-delivered document or instrument if an unrecorded
copy of such non-delivered document or instrument (certified by Seller, a title company, an escrow agent or an attorney to be a true and complete copy of the original thereof submitted for
recording) is delivered to Custodian on or before the date on which such original is required to be delivered, and either the original of such non-delivered document or
instrument, or a photocopy thereof, with evidence of recording thereon, is delivered to Custodian within ninety (90) days after the related Purchase Date. 

        (iii)  Any
additional documentation delivered to Custodian pursuant to this Section 2.01(c) shall be preceded or
accompanied by a Mortgage Asset File Checklist duly completed by Seller. Within three (3) Business Days after receipt by Custodian of any such additional documentation, Custodian shall deliver
to Buyer, with a copy to Seller, an updated Asset Schedule and Exception Report with respect to the related Purchased Assets. 

        (d)   With respect to each Wet Mortgage Asset:

          (i)  Pursuant
to Section 3.01(h) of the Repurchase Agreement, with respect to each Wet Mortgage Asset, Seller shall
cause Bailee, by not later than 12:00 noon (New York City time) on the related Purchase Date for each such Wet Mortgage Asset, to send to Custodian and Buyer, via Electronic Transmission, a signed PDF
copy of the Bailee Agreement. 

         (ii)  No
later than five (5) Business Days following the applicable Purchase Date, for any Wet Mortgage Asset, Seller shall deliver, or cause Bailee to deliver, to
Custodian the Mortgage Asset File with respect to such Wet Mortgage Asset. 

 
 

  ARTICLE III
  
    ASSET SCHEDULE AND EXCEPTION REPORT; TRUST RECEIPT    
    

        Section 3.01    Asset Schedule and Exception Report; Trust Receipt.    

        (a)   On
or before the Business Day prior to delivery to Custodian or Bailee, as applicable, of any Mortgage Asset Documents, Seller shall deliver to Custodian, via Electronic
Transmission, the related Mortgage Asset File Checklist and Mortgage Asset Schedule. In the case of any Transaction that is not a Wet Funding, Seller shall deliver the Mortgage Asset Documents to
Custodian one (1) Business Day prior, for not more than one (1) Mortgage Asset Files; two (2) Business Days prior, for not more than two (2) - five (5) Mortgage Asset
Files, three (3) Business Days, for not more than ten (10) Mortgage Asset Files, for more than ten (10) Mortgage Asset Files delivered a time frame as mutually agreed
upon all parties, to the Purchase Date. In the case of any Transaction that is a Wet Funding, Seller shall (i) no later than 

6

 

12:00
noon (New York City time) one (1) Business Day prior, for not more than one (1) Mortgage Asset Files; two (2) Business Days prior, for not more than two (2) - five
(5) Mortgage Asset Files, three (3) Business Days, for not more than ten (10) Mortgage Asset Files, for more than ten (10) Mortgage Asset Files delivered a time frame as
mutually agreed upon all parties, to the Purchase Date. In the case of any Transaction that is a Wet Funding, Seller shall (i) no later than 12:00 noon (New York City time) on the Purchase
Date, deliver or cause Bailee to deliver to Custodian and Buyer by Electronic Transmission, PDF copies of the Mortgage Asset Documents and (ii) deliver or cause Bailee to deliver the original
Mortgage Asset Documents to Custodian no later than 5:00 p.m., New York City time, on the fifth (5th) Business Days after the Purchase Date in accordance with  Section 2.01(d)(ii)
above. In the event Custodian has not received all documents required to be delivered pursuant to  Section 2.01(d)(ii) with respect to a Wet Mortgage Asset on or before the fifth (5th)
Business Day after the Purchase Date,
Custodian shall immediately notify Buyer and Seller by Electronic Transmission. 

        (b)   Custodian
shall deliver to Buyer, no later than 2:00 p.m. New York City time, on each Purchase Date, with a copy to Seller, a Trust Receipt in respect of all
Purchased Assets (including Wet Mortgage Assets) sold to Buyer on such Purchase Date and any prior Purchase Date and held by Custodian hereunder, and shall deliver to Buyer (i) no later than
2:00 p.m. New York City time, on each Purchase Date, an Asset Schedule and Exception Report for Purchased Assets which are not Wet Mortgage Assets, and (ii) no later than
1:00 p.m. New York City time, on or before the tenth (10th) Business Day after the Purchase Date, an Asset Schedule and Exception Report for Purchased Assets which are Wet Mortgage Assets. Each
Asset Schedule and Exception Report shall supersede and cancel the Asset Schedule and Exception Report previously delivered by Custodian to Buyer hereunder, and shall replace the then existing Asset
Schedule and Exception Report and detailed listing of Wet Mortgage Assets to be attached to the Trust Receipt. 

        (c)   The
delivery of each Asset Schedule and Exception Report to Buyer shall be Custodian's representation that, other than the Exceptions listed as part of the Exception
Report: (i) all documents required to be delivered in respect of each Purchased Asset pursuant to Article II of this Agreement have been
delivered and are in the possession of Custodian as part of the Mortgage Asset File for such Purchased Asset, (ii) Custodian is holding each Purchased Asset identified on the Asset Schedule and
Exception Report, pursuant to this Agreement, as the bailee of and custodian for Buyer and/or its designees and (iii) all such documents have been reviewed by Custodian and (A) appear on
their face to be regular (handwritten additions, changes or corrections shall not constitute irregularities if initialed by Seller), (B) have been executed, (C) relate to such Purchased
Asset and (iv) satisfy the requirements set forth in Section 2.01 of this Agreement and the Review Procedures set forth in  Annex 4 attached
hereto.
In no event shall Custodian list any Purchased Asset on an Asset Schedule and Exception Report if Custodian has not yet reviewed the related Mortgage Asset File. 

        (d)   During
the term of this Agreement, Custodian shall forward to Buyer, with a copy to Seller and the respective Servicers and such other parties (not to exceed three) as
may be designated in writing by Buyer or Seller, an Asset Detail Report (or an update of any such Asset Detail Report previously requested and delivered hereunder) for each Purchased Asset subject to
this Agreement and an updated or amended Asset Schedule and Exception Report (or an update of any such Asset Schedule and Exception Report previously requested and delivered hereunder) setting forth
the Exceptions for any individual Purchased Asset, any group of Purchased Assets or for all of the Purchased Assets, as the case may be, for which Custodian holds a Mortgage Asset File pursuant to
this Agreement (i) on the 10th day of each month, or if such day is not a Business Day, the next succeeding Business Day, and (ii) promptly upon written request of
Buyer. 

        (e)   Upon
Custodian's receipt of written direction of Buyer, Custodian shall promptly submit for recording and/or filing any assignments, instruments of transfer or other
documents with 

7

 

respect
to the related Purchased Asset. Seller shall be responsible for all reasonable out-of-pocket costs and expenses of Custodian associated with recording and/or filing of
any such assignments, instruments of transfer or other documents with respect to the related Purchased Asset. 

        (f)    In
connection with a financing arrangement described in Section 4.04 of this Agreement and upon Custodian's
receipt of written direction of Buyer and the prior surrender by Buyer of the original Trust Receipt, Custodian shall deliver to Buyer a new Trust Receipt. 

        Section 3.02    Custodian.    Custodian has no duty or obligation to inspect, review or examine any of the
documents, instruments, certificates or other papers relating to the Purchased Assets delivered to it to determine that the same are valid, legal, effective, genuine, binding, enforceable, sufficient
or appropriate for the represented purpose or that they are other than what they purport to be on their face. Furthermore, Custodian shall not have any responsibility for determining whether the text
of any assignment or endorsement is in proper or recordable form, whether the requisite recording of any document is in accordance with the requirements of any applicable jurisdiction or whether a
blanket assignment is permitted in any applicable jurisdiction. Custodian shall hold any letter of credit in a
custodial capacity only and shall have no obligation to maintain, extend the term of, enforce or otherwise pursue any rights under such letter of credit. The Exceptions shall be set forth with
particularity in the Asset Schedule and Exception Report, especially as regards the nature of the defective or missing document or the lack of evidence of recordation. 

        Section 3.03    Discrepancies.    Notwithstanding anything to the contrary set forth herein, in the event that
the Asset Schedule and Exception Report attached to the Trust Receipt is different from the most recently delivered Asset Schedule and Exception Report, then the most recently delivered Asset Schedule
and Exception Report shall control and be binding upon the parties hereto. 

 
 

  ARTICLE IV
  
    OBLIGATIONS OF CUSTODIAN    
    

        Section 4.01    Custody.    Custodian shall maintain continuous custody of all items constituting the Mortgage
Asset Files in secure facilities in accordance with customary standards for such custody and shall reflect in its records the interest of Buyer therein. Each Mortgage Note (and Assignment of Mortgage)
shall be maintained in fire resistant facilities. 

        Section 4.02    Obligations.    With respect to the documents constituting each Mortgage Asset File held
pursuant to this Agreement, Custodian shall (i) act exclusively as the bailee of, and custodian for, Buyer, (ii) hold all documents constituting such Mortgage Asset File received by it
for the exclusive use and benefit of Buyer, and (iii) make disposition thereof only in accordance with the terms of this Agreement or with written instructions furnished by Buyer (with a copy
to Seller); provided, however, that in the event of a conflict between the terms of this Agreement and the written instructions of Buyer, Buyer's written instructions shall control. 

        Section 4.03    Levy, Attachment and Other Court Orders.    In the event that (i) Seller, Buyer or
Custodian shall be served by a third party with any type of levy, attachment, writ or court order with respect to any Mortgage Asset File or any document included within a Mortgage Asset File or
(ii) a third party shall institute any court proceeding by which any Mortgage Asset File or a document included within a Mortgage Asset File shall be required to be delivered otherwise than in
accordance with the provisions of this Agreement, the party receiving such service shall promptly deliver or cause to be delivered to the other parties to this Agreement copies of all court papers,
orders, documents and other materials concerning such proceedings. Custodian shall, to the extent permitted by law, continue to hold and maintain all the Mortgage Asset Files that are the subject of
such proceedings pending a final, nonappealable order of a court of competent jurisdiction permitting or directing disposition thereof. Upon final determination of such court, Custodian shall dispose
of such Mortgage 

8

 

Asset
File or any document included within such Mortgage Asset File as directed by Buyer in a written communication to Custodian (with a copy to Seller) which shall give a direction consistent with
such determination. Expenses of Custodian incurred as a result of such proceedings shall be borne by Seller. 

        Section 4.04    Pledge or Rehypothecation.    Each of Seller, Buyer and Custodian acknowledge and agree that
Buyer may, subject to the terms and conditions of the Repurchase Agreement, finance one or more of the Purchased Assets that are held by Custodian pursuant to the terms of this Agreement by entering
into financing arrangement or arrangements with respect to any such Purchased Assets pursuant to which Buyer shall sell, pledge, enter into a repurchase transaction or grant a security interest in, or
otherwise rehypothecate one or more of the Purchased Assets (each, a "Financing Arrangement"); provided,
however, that any such Financing Arrangement shall be expressly subject to Section 18.09 of the Repurchase Agreement. In connection with any
Financing Arrangement that so provides, Buyer may cause Custodian to issue Trust Receipts in the name of the financing party. The financing party shall accede to the rights and obligations hereunder
of "Buyer" solely with respect to the Purchased Asset identified in such Trust Receipt, and, thereafter, all applicable references to Buyer herein shall be deemed to include its assignee or designee  provided, however, that if the Trust Receipt is issued in the name of any person other than Buyer or its
affiliates, then such holder and Custodian shall enter into a new custodial arrangement with respect to such Mortgage Asset promptly and in no event later than ninety (90) days following the
date on which the Trust Receipt is re-issued; and provided, further, that if the holder and
Custodian fail to agree on the terms of such replacement arrangement within such time, Custodian shall have the right to terminate the Agreement with respect to such Mortgage Asset and to release such
Mortgage Asset and the related Mortgage Asset File in accordance with the written instructions of Buyer (with a copy to Seller) and such Mortgage Asset shall no longer be subject to this Agreement. 

 
 

  ARTICLE V
  
    RELEASE OF MORTGAGE ASSET FILES    
    

        Section 5.01    Release of Documentation.    From time to time until Custodian receives written notice from
Buyer, which notice shall be given by Buyer only following the occurrence of an Event of Default Custodian is hereby authorized upon receipt of written request of Seller, to release one or more
Mortgage Asset Documents relating to the Purchased Assets in the possession of Custodian to Seller or its designee, for the purpose of correcting documentary deficiencies relating thereto against a
Request
for Release and Receipt executed by Seller in the form of Annex 5-A hereto. The preceding sentence authorizing release to Seller, or
its designee, of Custodian's Mortgage Asset Files shall be operative only to the extent that at any time Custodian shall not have released to Seller or its designee pursuant to this  Section 5.01 or
Section 5.02, three (3) or more Mortgage Asset Files pertaining to
Purchased Assets at the time being held by Custodian on behalf of Buyer. The Seller or its designee shall notify the Buyer of any such release. Seller or its designee shall hold each Mortgage Asset
Document delivered to it pursuant to this Section 5.01 as bailee for Buyer. Seller or its designee shall return to Custodian each Mortgage Asset
Document previously released from Custodian's Mortgage Asset File within twenty (20) calendar days of receipt thereof, or such additional period of time as Buyer deems necessary or desirable
for Seller to accomplish the matters for which such Mortgage Asset Document was released. Seller hereby further covenants to Buyer and Custodian that any such request by Seller for release of a
Mortgage Asset Document pursuant to this Section 5.01 shall be solely for the purposes set forth in the Request for Release and that Seller has
requested such release in compliance with all terms and conditions of such release set forth herein and in the Repurchase Agreement. Notwithstanding anything to the contrary contained in the
foregoing, Mortgage Notes shall be released only for the purpose of (i) ultimate sale or exchange or (ii) presentation, collection, foreclosure of the related Mortgage (solely to the
extent permitted under the Repurchase Agreement), renewal or registration of transfer. 

9

 

        Section 5.02    Release of Mortgage Asset File and Documentation.    From time to time until Custodian receives
written notice from Buyer, which notice shall be given by Buyer only following the occurrence of an Event of Default and as appropriate for the servicing of any of the Purchased Assets, Custodian
shall, upon written receipt from Seller or its designee of a Request for Release of Documents and Receipt in the form of Annex 5-B
hereto, release to the Servicer the Mortgage Asset Documents set forth in such request relating to Purchased Assets in the possession of Custodian. The preceding sentence authorizing release to the
Servicer of Custodian's Mortgage Asset Files shall be operative only to the extent that at any time Custodian shall not have released to Seller or its designee pursuant to  Section 5.01 or this
Section 5.02, three (3) or more Mortgage Asset Files
pertaining to Purchased Assets at the time being held by Custodian on behalf of Buyer. Seller shall cause the Servicer to hold each Mortgage Asset Document delivered to it pursuant to this  Section 5.02 as bailee for Buyer. Seller shall cause Servicer to return to Custodian each Mortgage Asset Document previously released from
Custodian's Mortgage Asset File within twenty (20) calendar days of receipt thereof, or such additional period of time as Buyer deems necessary or desirable for Seller to accomplish the matters
for which such Mortgage Asset Document was released. Seller hereby further covenants to Buyer and Custodian that any such request by Seller or its designee for release of a Mortgage Asset Document
pursuant to this Section 5.02 shall be solely for the purposes of servicing of any of the Purchased Assets to which such Mortgage Asset Document
relates. Notwithstanding anything to the contrary contained in the foregoing, Mortgage Notes shall be released only for the purpose of (i) ultimate sale or exchange or (ii) presentation,
collection, foreclosure of the related Mortgage (solely to the extent permitted under the Repurchase Agreement), renewal or registration of transfer. 

        Section 5.03    Release to Third-Party.    (a)    From time to time Custodian is hereby authorized,
upon receipt of written request of Seller, to release one or more Mortgage Asset Documents in the possession of
Custodian to a third-party purchaser of the related Purchased Asset(s) for the purpose of resale thereof against a Request for Release executed by Seller, which must be acknowledged by Buyer in the
form of Annex 5-C hereto. Buyer shall have no obligation to acknowledge any such Request for Release until such time as any
outstanding Event of Default has been cured to Buyer's satisfaction, as determined in Buyer's sole and absolute discretion. On such Request for Release, Seller shall indicate the Purchased Asset(s) to
be sold, the purchase price for such Purchased Asset anticipated to be received, the name and address of the third party purchaser, the preferred method of delivery, and the date of desired delivery.
If such Purchased Asset is not sold within twenty (20) calendar days, Seller or its designee shall return to Custodian the Mortgage Asset Document(s) previously released from Custodian's
Mortgage Asset File immediately after the expiration of such twenty (20) day period. 

        (b)   Any
transmittal of documentation for Purchased Assets in the possession of Custodian in connection with the sale thereof to a third-party purchaser or the shipment to a
custodian or trustee in connection with the formation of a mortgage pool supporting a mortgage backed security (an "MBS") will be under cover of a
transmittal letter substantially in the form attached as Annex 5-C hereto, duly completed by Custodian and executed by Custodian.
Promptly upon (x) the remittance by Seller to Buyer of the full Repurchase Price of the Purchased Asset or (y) the issuance of such MBS, Buyer shall notify Custodian thereof. 

        Section 5.04    Other Release.    So long as no Event of Default has occurred and is continuing, Custodian and
Buyer shall take such steps as they may reasonably be directed from time to time by Seller in writing, which Seller deems necessary and appropriate, to transfer promptly and deliver to Seller any
Mortgage Asset File in the possession of Custodian relating to any Purchased Asset which was previously a Purchased Asset but which Seller, with the written consent of Buyer, has notified Custodian
has ceased to be a Purchased Asset or the release of which would not cause Seller to violate any provision of Article III of the Repurchase Agreement. In furtherance of the foregoing, upon
receipt of a Request For Release and Receipt from Seller in the form of Annex 5-A hereto, which must be acknowledged by Buyer,
Custodian shall release to Seller the requested Mortgage Asset Files. 

10

 

        Section 5.05    Notification by Buyer.    Following notification by Buyer (which may be by facsimile) to
Custodian (and receipt of such notification by Custodian) that an Event of Default has occurred and is continuing, Custodian shall not release, or incur any liability to Seller or any other Person for
refusing to release, any item relating to a Purchased Asset to Seller or any other Person without the express prior written consent and at the direction of Buyer. 

        Section 5.06    Tracking.    Custodian shall track the period of time that has elapsed for any release of
Purchased Assets under Sections 5.01, 5.02, 5.03
and 5.04 of this Agreement and shall report such information to Buyer in the same manner and at the same time as Custodian provides an Asset Schedule
and Exception Report. 

        Section 5.07    Method of Shipment.    Prior to any shipment of Mortgage Asset Files hereunder, Seller shall
deliver to Custodian written instructions as to the method of shipment and shippers(s) Custodian is to utilize in connection with the transmission of Mortgage Asset Files in the performance of
Custodian's duties hereunder. Seller shall arrange for the provision of such services at its sole cost and expense (or, at Custodian's option, reimburse Custodian for all costs and expenses incurred
by Custodian consistent with the instructions) and will maintain such insurance against loss or damage to Mortgage Asset Files or other loan documents as Buyer deems appropriate. Without limiting the
generality of the provisions of Section 11.02, it is expressly agreed that Custodian shall have no liability for any losses or damages to Seller
arising out of actions of Custodian consistent with the instructions of Seller. In the event Custodian does not receive such written instructions, Custodian shall be authorized to utilize any
nationally recognized courier service. 

 
 

  ARTICLE VI
  
    FEES AND EXPENSES OF CUSTODIAN    
    

        Section 6.01    Fees.    Custodian shall charge such fees for its services under this Agreement as are set
forth in a separate agreement between Custodian and Seller, the payment of which fees, together with Custodian's expenses in connection herewith, shall be solely the obligation of Seller. The failure
of Seller to pay any such fees shall not excuse the performance by Custodian of any of its obligations thereunder. The obligations of Seller to pay Custodian for such expenses in connection with
services provided by Custodian prior to the termination of this Agreement and the earlier of the resignation or removal of Custodian shall survive such termination, resignation or removal. 

 
 

  ARTICLE VII
  
    REMOVAL OR RESIGNATION OF CUSTODIAN    
    

        Section 7.01    Resignation.    Custodian may at any time resign and terminate its obligations under this
Agreement upon at least thirty (30) days' prior written notice to Seller and Buyer and the appointment of a successor custodian. Promptly after receipt of notice of Custodian's resignation,
Buyer shall appoint, by written instrument, a successor custodian. The appointment of a successor custodian shall
not be effective until such successor custodian executes a custodial agreement substantially similar to this Agreement. One original counterpart of such instrument of appointment shall be delivered to
Seller, Custodian and the successor custodian. In the event that no successor custodian shall have been appointed within sixty (60) days after Custodian's notice of resignation, then Custodian
may petition any court of competent jurisdiction to appoint a successor custodian. All fees, costs, and expenses (including attorneys' fees and expenses) incurred by Custodian in connection with any
such petition shall be paid (or otherwise reimbursed to Custodian) by Seller. 

        Section 7.02    Removal and Discharge.    Buyer, upon at least thirty (30) days' prior written notice to
Custodian and Seller, may remove and discharge Custodian (or any successor custodian thereafter 

11

 

appointed)
from the performance of its obligations under this Agreement. Promptly after the giving of notice of removal of Custodian, Buyer shall appoint, by written instrument, a successor custodian.
One original counterpart of such instrument of appointment shall be delivered to Seller, Buyer, Custodian and the successor custodian. In the event that no successor custodian shall have been
appointed within such thirty (30) day notice period, Custodian may petition any court of competent jurisdiction to appoint a successor custodian. All fees, costs, and expenses (including
attorneys' fees and expenses) incurred by Custodian in connection with any such petition shall be paid (or otherwise reimbursed to Custodian) by Seller. The appointment of a successor custodian shall
not be effective until such successor custodian executes a custodial agreement substantially similar to this Agreement. 

        Section 7.03    Successor.    In the event of any such resignation or removal, Custodian shall promptly
transfer to the successor custodian, as directed in writing, all of the Mortgage Asset Files being administered under this Agreement and, if the endorsements on the Mortgage Notes and assignments of
the Mortgages have been completed in the name of Custodian, Custodian shall assign the Mortgages and endorse without recourse the Mortgage Notes to the successor custodian, which successor custodian
shall provide receipt therefor to Buyer, Seller and Custodian, or as otherwise directed by Buyer. The cost of the shipment of Mortgage Asset Files arising out of the resignation of Custodian shall be
at the expense of the resigning Custodian; provided, however, that if Custodian's resignation is due in
part or in whole to the non-payment of the fees and expenses due to it hereunder by Seller, then the shipment cost of such shipment of Mortgage Asset Files shall be at the expense of
Seller. Any cost of shipment arising out of the removal of Custodian shall be at the expense of Seller. Seller shall be responsible for the fees and expenses of the successor custodian and the fees
and expenses for endorsing the Mortgage Notes and assigning the Mortgages to the successor custodian if required pursuant to this paragraph. 

 
 

  ARTICLE VIII
  
    EXAMINATION OF FILES, BOOKS AND RECORDS    
    

        Section 8.01    Examination.    Upon reasonable prior written notice to Seller and Custodian, and at the
expense of the requesting party, Buyer, Seller or their respective agents, accountants, attorneys and auditors will be permitted during Custodian's normal business hours to examine, inspect, and make
copies of, the Mortgage Asset Files and any and all documents, records and other instruments or information in the possession of or under the control of Custodian relating to any or all of the
Purchased Assets. All reasonable fees, out-of-pocket and other expenses of such inspections shall be paid by the requesting party. 

 
 

  ARTICLE IX
  
    INSURANCE    
    

        Section 9.01    Insurance.    At its own expense, Custodian shall maintain at all times during the existence of
this Agreement and keep in full force and effect a fidelity bond and document hazard insurance. All such insurance shall be in amounts, with standard coverage and subject to standard deductibles, all
as is customary for insurance typically maintained by institutions which act as custodian. The minimum coverage under any such bond and insurance policies shall be at least equal to the corresponding
amounts typically maintained by institutions that manage similar properties. A certificate of an Authorized Representative of Custodian shall be furnished to Seller and Buyer, upon written request,
stating that such insurance is in full force and effect. 

12

 
 
 

  ARTICLE X
  
    REPRESENTATIONS AND WARRANTIES    
    

        Section 10.01    Custodian Representations and Warranties.    

        (a)   Custodian
represents and warrants to, and covenants with, Buyer and Seller, as of date of this Agreement and shall be deemed to restate as of each Purchase Date that: 

          (i)  Custodian
is duly organized and validly existing as a national banking association under the laws of the United States of America. 

         (ii)  Custodian's
execution and delivery of, performance under and compliance with this Agreement, will not violate Custodian's organizational documents or constitute a
default (or an event which, with notice or lapse of time, or both, would constitute a default) under, or result in a material breach of, any material agreement or other material instrument to which it
is a party or by which it is bound. 

        (iii)  Custodian
has the full power and authority to enter into and consummate all transactions contemplated by this Agreement, has duly authorized the execution, delivery
and performance of this Agreement, and has duly executed and delivered this Agreement. 

        (iv)  This
Agreement constitutes a valid, legal and binding obligation of Custodian, enforceable against Custodian in accordance with the terms hereof, subject to
(A) applicable bankruptcy, insolvency, reorganization, moratorium and other laws affecting the enforcement of creditors' rights generally and the rights of creditors of banks, and
(B) general principles of equity, regardless of whether such enforcement is considered in a proceeding in equity or at law. 

         (v)  Custodian
is not in violation of, and its execution and delivery of, performance under and compliance with this Agreement will not constitute a violation of, any law,
any order or decree of any court or arbiter, or any order, regulation or demand of any federal, state or local governmental or regulatory authority, which violation, in Custodian's good faith and
reasonable judgment, is likely to affect materially and adversely either the ability of Custodian to perform its obligations under this Agreement or the financial condition of Custodian. 

        (vi)  No
consent, approval, authorization or order of any state or federal court or governmental agency or body is required for the consummation by Custodian of the
transactions contemplated herein, except for those consents, approvals, authorizations or orders that previously have been obtained. 

       (vii)  No
litigation is pending or, to the best of the knowledge of Custodian, threatened against Custodian that, if determined adversely to Custodian, would prohibit
Custodian from entering into this Agreement or that, in Custodian's good faith and reasonable judgment, is likely to materially and adversely affect either the ability of Custodian to perform its
obligations under this Agreement or the financial condition of Custodian. 

        (b)   The
representations and warranties of Custodian set forth in Section 10.01(a) shall survive the execution and
delivery of this Agreement and shall inure to the benefit of the Persons for whose benefit they were made for so long as this Agreement is not terminated. Upon discovery by any party hereto of a
breach of any such representations and warranties, the party discovering such breach shall give prompt written notice thereof to the other parties hereto. 

        (c)   Any
successor to Custodian shall be deemed to have made, as of the date of its succession, each of the representations and warranties set forth in  Section 10.01(a), subject to such appropriate
modifications to the representation and warranty set forth in Section
10.01(a)(i) to accurately reflect such successor's jurisdiction of organization and whether it is a corporation, partnership, bank, association or other type of organization. 

13

 

 

        Section 10.02    Seller Representations and Warranties.    Seller represents and warrants to Custodian, the
same representations and warranties that Seller makes to Buyer under Section 7.01 of the Repurchase Agreement. 

 
 

  ARTICLE XI
  
    MISCELLANEOUS    
    

        Section 11.01    No Adverse Interest.    By execution of this Agreement, Custodian represents and warrants that
it currently holds, and during the existence of this Agreement shall hold, no adverse interest, by way of security or otherwise, in any Purchased Asset, and hereby waives and releases any such
interest which it may have in any Purchased Asset as of the date hereof. The Purchased Assets shall not be subject to any security interest, lien or right to set-off by Custodian or any third party
claiming through Custodian and Custodian shall not pledge, encumber, hypothecate, transfer, dispose of, or otherwise grant any third party interest in, the Purchased Assets. 

        Section 11.02    Indemnification.    (a)    Seller agrees to indemnify and hold Custodian and its
affiliates, directors, officers, agents and employees harmless against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, of any kind or nature
whatsoever, including reasonable attorneys' fees, that may be imposed on, incurred by, or asserted against it in any way relating to or arising out of this Agreement or any action taken or not taken
by it hereunder unless such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, cost, expenses or disbursements were imposed on, incurred by or asserted against Custodian
because of the breach by Custodian of its obligations hereunder, which breach was caused by negligence, lack of good faith or
willful misconduct on the part of Custodian, or any of its respective directors, officers, agents or employees. Custodian agrees that it will promptly notify Seller of any such claim, action or suit
asserted or commenced against it and that Seller may assume the defense thereof with counsel reasonably satisfactory to Custodian at Seller's sole expense, that Custodian will cooperate with Seller on
such defense, and that Custodian will not settle any such claim, action or suit without the consent of Seller. The foregoing indemnification shall survive any resignation or removal of Custodian or
the termination or assignment of this Agreement. 

        (b)   In
the event that Custodian fails to produce a Mortgage Note, Mortgage (or assignment thereof) or any other document related to a Purchased Asset that was in its
possession pursuant to Article II within one (1) Business Day after required or requested by Seller or Buyer, and provided that (i) Custodian previously delivered to Buyer an
Asset Schedule and Exception Report which did not list such document as an Exception on the related Purchase Date; (ii) such document is not outstanding pursuant to a Request for Release and
Receipt or a Request for Release of Documents and Receipt in the form annexed hereto as Annex 5-A or  Annex 5-B, respectively and (iii) such
document was held by Custodian on behalf of Seller or Buyer, as applicable (a
"Custodial Delivery Failure"), then Custodian shall (a) with respect to any missing Mortgage Note, promptly deliver to Buyer or Seller upon
request, a Lost Note Affidavit in the form of Annex 9 hereto (a "Lost Note Affidavit") and
(b) with respect to any missing document related to such Purchased Asset, including but not limited to a missing Mortgage Note, (1) indemnify Seller and Buyer, as applicable, in
accordance with paragraph (c) below and (2) at Buyer's option, at any time the long-term obligations of Custodian are rated below the second highest rating category of Moody's Investors
Service, Inc. or Standard and Poor's Ratings Group Services, a division of The McGraw-Hill Companies, Inc., obtain and maintain an insurance bond in the name of Buyer and Seller, and its
successors in interest and assigns, insuring against any losses associated with the loss of such document, in an amount equal to the then outstanding principal balance of the related Purchased Asset
or such lesser amount requested by Buyer in Buyer's sole discretion. 

14

 

        (c)   Custodian
agrees to indemnify and hold Buyer and Seller, and their respective affiliates, directors, officers, employees, agents and representatives harmless against any
and all liabilities, obligations, losses, damages (other than special, indirect, consequential, or punitive damages, except to the extent Seller is required to pay or indemnify a third party for such
damages), penalties, actions, judgments, suits, and costs, expenses or disbursements, including reasonable attorneys' fees, that directly result from a Custodial Delivery Failure or Custodian's breach
of this Agreement, gross negligence, lack of good faith or willful misconduct. The foregoing indemnification shall survive the resignation or removal of Custodian and any termination or assignment of
this Agreement. 

        Section 11.03    Reliance of Custodian.    Custodian shall have no duties or obligations other than those
specifically set forth herein or as may subsequently be agreed to in writing by the parties hereto. The Custodian: 

        (a)   may
conclusively rely, in the absence of bad faith on the part of Custodian, as to the truth of the statements and the correctness of the opinions expressed therein,
upon any request, instruction, certificate, opinion or other document furnished to Custodian, reasonably believed by Custodian to be genuine and to have been signed or presented by the proper party or
parties and conforming to the requirements of this Agreement; provided, however, that in the case of any
Mortgage Asset Document or other request, instruction, document or certificate which by any provision hereof is specifically required to be furnished to Custodian, Custodian shall be under a duty to
examine the same in accordance with the requirements of this Agreement; 

        (b)   may
consult with counsel and any opinion of counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it
hereunder in good faith and in accordance with such opinion of counsel; 

        (c)   shall
use the same degree of care and skill as is reasonably expected of financial institutions acting in comparable capacities,  provided that this subsection shall not be interpreted to impose upon Custodian
a higher standard of care than that set forth herein; 

        (d)   will
be regarded as making no representations and having no responsibilities (except as expressly set forth herein) as to the validity, perfectibility, sufficiency,
value, genuineness, ownership or transferability of the Purchased Assets, and will not be required to and will not make any representations as to the validity, value, perfectibility, genuineness,
ownership or transferability of the Purchased Assets; 

        (e)   shall
have no responsibility or duty with respect to any Mortgage Asset File while not in its possession (other than its tracking responsibilities pursuant to  Section 5.06 hereof); 

        (f)    shall
be under no obligation to make any investigation into the facts or matters stated in any resolution, exhibit, request, representation, opinion, certificate,
statement, acknowledgement, consent, order or document in the Mortgage Asset File; 

        (g)   shall
not be liable with respect to any action taken or omitted to be taken in accordance with the written direction, instruction, acknowledgement, consent or any other
communication from the Buyer; 

        (h)   shall
not be responsible for preparing or filing any reports or returns relating to federal, state or local income taxes with respect to this Agreement, other than for
Custodian's compensation or for reimbursement of expenses; 

        (i)    shall
have no duty to qualify to do business in any jurisdiction, other than (i) any jurisdiction where any Mortgage Asset File is or may be held by Custodian
from time to time hereunder, and (ii) any jurisdiction where its ownership of property or conduct of business requires 

15

 

such
qualification and where failure to qualify could have a material adverse effect on Custodian or its property or business or on the ability of Custodian to perform it duties hereunder; and 

        (j)    will
not have any liability for failure to perform or delay in performing duties set forth herein if the failure or delay is due to an event of  force majeure. A force
majeure is an event or condition beyond Custodian's control, such as, without
limitation, a natural disaster, civil unrest, state of war, or act of terrorism, provided, however,
Custodian will make reasonable efforts to prevent performance delays or disruptions in the event of such occurrences. 

        The
provisions of this Section 11.03 shall survive the resignation or removal of the Custodian and the termination or transfer of
this Agreement. 

        Section 11.04    Term of Agreement.    Promptly after Custodian's receipt of written notice from Buyer of the
termination of the Repurchase Agreement and payment in full of all amounts owing to Buyer thereunder, Custodian shall deliver all documents remaining in the Mortgage Asset Files to Seller, and, except
as otherwise set forth herein, this Agreement shall thereupon terminate and Buyer shall simultaneously surrender all outstanding Trust Receipts held by Buyer to Custodian. 

        Section 11.05    Notices.    All demands, notices and communications hereunder shall be in writing and shall be
deemed to have been duly given when received by the recipient party at the address shown on its signature page hereto, or at such other addresses as may hereafter be furnished to each of the other
parties by like notice. Any such demand, notice or communication hereunder shall be deemed to have been received on the date delivered to or received at the premises of the addressee. Each party
hereto hereby represents and warrants that its office is located at the respective address set forth on its signature page hereto, and each such party shall notify each other party hereto if such
address should change. 

        Section 11.06    Governing Law.    THIS AGREEMENT AND ANY CLAIM, CONTROVERSY OR DISPUTE
ARISING UNDER OR RELATED TO OR IN CONNECTION WITH THIS AGREEMENT, THE RELATIONSHIP OF THE PARTIES, AND/OR THE INTERPRETATION AND ENFORCEMENT OF THE RIGHTS AND DUTIES OF THE PARTIES WILL BE GOVERNED BY
THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO ANY CONFLICTS OF LAW PRINCIPLES OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

        Section 11.07    Authorized Representatives.    Each individual designated as an authorized representative of
any of Seller, Buyer, Custodian or their respective successors or permitted assigns (an "Authorized Representative"), is authorized to give and receive
notices, requests and instructions and to deliver certificates and documents in connection with this Agreement on behalf of Seller, Buyer, or Custodian, as the case may be, and the specimen signature
for each such Authorized Representative, initially authorized hereunder, is set forth on Annexes 6, 7 and  8 hereof, respectively. From time to time
any of Seller, Buyer, Custodian or their respective successors or permitted assigns may, by delivering to the
others a revised annex, change the information previously given pursuant to this Section 11.07, but each of the parties hereto shall be entitled
to rely conclusively on the then current annex until receipt of a superseding annex. 

        Section 11.08    Amendment.    This Agreement may be amended from time to time by written agreement signed by
each of Seller, Buyer and Custodian. 

        Section 11.09    Cumulative Rights.    The rights, powers and remedies of Custodian and Buyer under this
Agreement shall be in addition to all rights, powers and remedies given to Custodian and Buyer by virtue of any statute or rule of law, the Repurchase Agreement or any other agreement, all of which
rights, powers and remedies shall be cumulative and may be exercised successively or concurrently without impairing Buyer's interest in the Purchased Assets. 

16

 

        Section 11.10    Assignment; Binding Upon Successors.    This Agreement may not be assigned in whole or in part
by Seller or Custodian without the prior written consent of Buyer. This Agreement may be assigned by Buyer in whole or in part without the prior written consent of any other party hereto. Buyer shall
provide Custodian with notice of any such assignment together with written acknowledgment that the assignee is assuming all of the obligations of Buyer under this Agreement to the extent applicable.
All rights of Custodian, Buyer and Seller under this Agreement shall inure to the benefit of Custodian, Buyer and Seller and their respective successors and permitted assigns, and all obligations of
Custodian, Buyer and Seller under this Agreement shall bind their respective successors and assigns. Any entity into which Custodian may be merged or converted or with which it may be consolidated, or
any entity resulting from any merger, conversion or consolidation to which Custodian shall be a party, or any entity succeeding to the business of Custodian shall be the successor of Custodian
hereunder without the execution or filing of any paper with any party hereto or any further
act on the part of any of the parties hereto except where an instrument of transfer or assignment is required by law to effect such succession, anything herein to the contrary notwithstanding. 

        Section 11.11    Entire Agreement; Severability.    This Agreement contains the entire agreement with respect
to the rights and obligations of Custodian relating to the Purchased Assets among Custodian, Buyer and Seller. If any of the provisions of this Agreement shall be held invalid or unenforceable, this
Agreement shall be construed as if not containing such provisions, and the rights and obligations of the parties hereto shall be construed and enforced accordingly. 

        Section 11.12    Execution in Counterparts.    This Agreement may be executed in 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 11.13    Tax Reports.    Custodian shall not be responsible for the preparation or filing of any
reports or returns relating to federal, state or local income taxes with respect to this Agreement, other than in respect of Custodian's compensation or for reimbursement of expenses. 

        Section 11.14    Assignment by Buyer.    Buyer hereby notifies Custodian that Buyer may, subject to the terms
and provisions of the Repurchase Agreement, assign, as of the applicable Purchase Date, some or all of its right, title and interest in and to the Purchased Assets to an Eligible Assignee,  provided,
that no such transaction shall affect the obligations of Buyer to transfer the Purchased Assets to Seller on the applicable Repurchase Dates
free and clear of any pledge, Lien, security interest, encumbrance, charge or other adverse claim. 

        Section 11.15    SUBMISSION TO JURISDICTION;
WAIVERS.    EACH OF SELLER, BUYER AND CUSTODIAN HEREBY IRREVOCABLY AND UNCONDITIONALLY:

        (a)   SUBMITS FOR ITSELF AND ITS PROPERTY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT AND THE OTHER REPURCHASE DOCUMENTS, OR FOR
RECOGNITION AND ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF, TO THE EXCLUSIVE GENERAL JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING 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;

        (b)   CONSENTS THAT ANY SUCH ACTION OR PROCEEDING MAY BE BROUGHT IN SUCH COURTS AND, TO THE EXTENT PERMITTED BY LAW, WAIVES ANY OBJECTION THAT IT MAY
NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION OR PROCEEDING WAS BROUGHT IN AN INCONVENIENT COURT AND AGREES NOT TO PLEAD OR CLAIM THE
SAME;

17

 

        (c)   AGREES THAT SERVICE OF PROCESS IN ANY SUCH ACTION OR PROCEEDING MAY BE EFFECTED BY MAILING A COPY THEREOF BY REGISTERED OR CERTIFIED MAIL (OR ANY
SUBSTANTIALLY SIMILAR FORM OF MAIL), POSTAGE PREPAID, TO ITS ADDRESS SET FORTH UNDER ITS SIGNATURE BELOW OR AT SUCH OTHER ADDRESS OF WHICH EACH OTHER PARTY HERETO SHALL HAVE BEEN
NOTIFIED;

        (d)   AGREES THAT NOTHING HEREIN SHALL AFFECT THE RIGHT TO EFFECT SERVICE OF PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT TO
SUE IN ANY OTHER JURISDICTION; AND

        (e)   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, ANY OTHER REPURCHASE DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

        Section 11.16    Confidentiality.    Custodian hereby acknowledges and agrees that (i) all written or
computer-readable information provided by Buyer or Seller regarding Buyer or Seller and (ii) the terms of this Agreement and the Repurchase Agreement (the "Confidential
Information"), shall be kept confidential and shall not be divulged to any Person other than the parties hereto without Buyer's and Seller's prior written consent except to the
extent that (i) Custodian reasonably deems necessary to do so in working with legal counsel, auditors, taxing authorities or other governmental agencies or regulatory bodies or in order to
comply with any applicable federal or state laws, (ii) any portion of the Confidential Information is in the public domain other than due to a breach of this covenant or (iii) to the
extent that Custodian is required to disclose Confidential Information pursuant to the requirements of any legal proceeding or legal authority, Custodian shall (unless prohibited by such legal
proceeding or legal authority) notify Buyer and Seller within one (1) Business Day of its knowledge of such legally required disclosure so that Buyer or Seller may seek an appropriate
protective order and/or waive Custodian's compliance with this Agreement. Notice shall be both by telephone and in writing. In the absence of a protective order or waiver, Custodian may disclose the
relevant Confidential Information if, in the opinion of its counsel, failure to disclose such Confidential Information would subject Custodian to liability for contempt, censure or other legal penalty
or liability. 

[SIGNATURES
FOLLOW] 

18

        IN
WITNESS WHEREOF, this Agreement was duly executed by the parties hereto as of the day and year first above written. 

 

							
	 	 	 SELLER
	

 	
 	
 ACRC LENDER W LLC
	

 	
 	
By:	
 	
/s/ Timothy B. Smith

 
	 	 	 	 	Name:	 	Timothy B. Smith
	 	 	 	 	Title:	 	Vice President
	

 	
 	
 Address for Notices:
	

 	
 	
ACRC Lender W LLC

c/o Ares Management LLC

2 North LaSalle Street, 9th Floor

Chicago, Illinois 60602

Attention: Sharon L. Ephraim
	

 	
 	
 With a copy to: 
	

 	
 	
ACRC Holdings LLC

c/o Ares Management LLC

2 North LaSalle Street, 9th Floor

Chicago, Illinois 60602

Attention: Legal Department

 

 

 

							
	 	 	 WELLS FARGO BANK, NATIONAL ASSOCIATION, as Custodian
	

 	
 	
By:	
 	
/s/ John Nelson

 
	 	 	 	 	Name:	 	John Nelson
	 	 	 	 	Title:	 	Managing Director
	

 	
 	
 Address for Notices:
	

 	
 	
1055 10th Avenue SE

Minneapolis Minnesota 55414

Attention: Kathleen A. Marshall

 

 

 

							
	 	 	 WELLS FARGO BANK, NATIONAL ASSOCIATION, as Buyer
	

 	
 	
By:	
 	
/s/ Leigh Taylor

 
	 	 	 	 	Name:	 	Leigh Taylor
	 	 	 	 	Title:	 	Vice President
	

 	
 	
 Address for Notices:
	

 	
 	
One Wells Fargo Center

301 South College Street

MAC D1053-053, 12th Floor

Charlotte, North Carolina 28202

Attention: John Nelson

 

 

 

 
 

  Annex 1    
    

 
 

  MORTGAGE ASSET FILE CHECKLIST    
    

        [Date] 

Seller:

Proposed Purchase Date:

Description of Purchased Asset:

Class (circle one):    Whole Loan or Senior Interest 

Check one:    Initial shipment            Trailing
documents            Final shipment                

 

															
	 
	 	DOCUMENT NAME(1) 	 	REQ'D(2) 	 	DEL'D(3) 	 	STATUS(4) 	 	COMMENTS(5) 	 
	 

 1.
	 	 Tangible Evidence of Purchased Asset (Promissory Note, Certificate, etc.)
	 	 	 	 	 	 	 	 	 	 	 	 
	 2.
	 	 Allonge(s)/Endorsements
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 Endorsed to:    (List complete chain)
	 	 	 	 	 	 	 	 	 	 	 	 
	 

 3.
	 	 Letters of Credit
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	               Issuing Bank
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	               LOC Amount
	 	 	 	 	 	 	 	 	 	 	 	 
	 4.
	 	 Mortgage(s)/Deed(s) of Trust
	 	 	 	 	 	 	 	 	 	 	 	 
	 

 5.
	 	 Interim Assignment of Mortgage/Deed of Trust
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 Assignee (if any):
	 	 	 	 	 	 	 	 	 	 	 	 
	 6.
	 	 Assignment of Mortgage/Deed of Trust
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 Assignee:    Seller
	 	 	 	 	 	 	 	 	 	 	 	 
	 

 7.
	 	 Assignment of Mortgage/Deed of Trust
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 Assignee:    Blank
	 	 	 	 	 	 	 	 	 	 	 	 
	 8.
	 	 Consolidation Agreement List all underlying notes
	 	 	 	 	 	 	 	 	 	 	 	 
	 

 9.
	 	 Assignment(s) of Leases and Rents
	 	 	 	 	 	 	 	 	 	 	 	 
	 10.
	 	 Interim Assignment of Assignment of Leases and Rents
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 Assignee (if any):
	 	 	 	 	 	 	 	 	 	 	 	 
	 

 11.
	 	 Assignment of Assignment of Leases and Rents
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 Assignee:    Seller
	 	 	 	 	 	 	 	 	 	 	 	 
	 12.
	 	 Assignment of Assignment of Leases and Rents
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 Assignee:    Blank
	 	 	 	 	 	 	 	 	 	 	 	 
	 

 13.
	 	 Security Agreement
	 	 	 	 	 	 	 	 	 	 	 	 
	 14.
	 	 Interim Assignment of Security Agreement
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 Assignee (if any):
	 	 	 	 	 	 	 	 	 	 	 	 
	 

 15.
	 	 Assignment of Security Agreement
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 Assignee:    Seller
	 	 	 	 	 	 	 	 	 	 	 	 
	 16.
	 	 Assignment of Security Agreement
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 Assignee:    Blank
	 	 	 	 	 	 	 	 	 	 	 	 
	 

 17.
	 	 Survey (with Surveyor's Certificate thereon)
	 	 	 	 	 	 	 	 	 	 	 	 
	 18.
	 	 Ground Lease
	 	 	 	 	 	 	 	 	 	 	 	 
	 

 19.
	 	 Ground Lease Estoppel
	 	 	 	 	 	 	 	 	 	 	 	 
	 20.
	 	 Memorandum of Lease
	 	 	 	 	 	 	 	 	 	 	 	 
	 

 21.
	 	 Title Policy
	 	 	 	 	 	 	 	 	 	 	 	 
	 22.
	 	 Copies of all recorded documents affecting the Underlying Mortgaged Property
	 	 	 	 	 	 	 	 	 	 	 	 

 

 Annex 1-1

 
 

															
	 
	 	DOCUMENT NAME(1) 	 	REQ'D(2) 	 	DEL'D(3) 	 	STATUS(4) 	 	COMMENTS(5) 	 
	 

 23.
	 	 Escrow Letter
	 	 	 	 	 	 	 	 	 	 	 	 
	 24.
	 	 Insured Closing Letter
	 	 	 	 	 	 	 	 	 	 	 	 
	 

 25.
	 	 Stock Certificates
	 	 	 	 	 	 	 	 	 	 	 	 
	 26.
	 	 Stock Powers
	 	 	 	 	 	 	 	 	 	 	 	 
	 

 27.
	 	 UCC Financing Statement (Personal Property)—State:
	 	 	 	 	 	 	 	 	 	 	 	 
	 28.
	 	 Interim UCC-3 Assignment/UCC Financing Statement
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 Amendment (Personal Property)
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 State:
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 Assignee:
	 	 	 	 	 	 	 	 	 	 	 	 
	 

 29.
	 	 Interim UCC-3 Assignment/UCC Financing Statement
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 Amendment (Personal Property)
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 State:
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 Assignee:    Blank
	 	 	 	 	 	 	 	 	 	 	 	 
	 30.
	 	 UCC Financing Statement (Fixtures)—Fixture Filing Jurisdiction:
	 	 	 	 	 	 	 	 	 	 	 	 
	 

 31.
	 	 UCC-3 Assignment/UCC Financing Statement
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 Amendment (Fixtures)
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 Fixture Filing Jurisdiction:
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 Assignee:
	 	 	 	 	 	 	 	 	 	 	 	 
	 32.
	 	 UCC-3 Assignment/UCC Financing Statement
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 Amendment (Fixtures)
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 Fixture Filing Jurisdiction:
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 Assignee:
	 	 	 	 	 	 	 	 	 	 	 	 
	 

 33.
	 	 UCC Financing Statement (Other)—Filing Jurisdiction:
	 	 	 	 	 	 	 	 	 	 	 	 
	 34.
	 	 UCC-3 Assignment/UCC Financing Statement
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 Amendment (Other)
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 Filing Jurisdiction:
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 Assignee:
	 	 	 	 	 	 	 	 	 	 	 	 
	 

 35.
	 	 UCC-3 Assignment/UCC Financing Statement
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 Amendment (Other)
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 Filing Jurisdiction:
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 Assignee:    Blank
	 	 	 	 	 	 	 	 	 	 	 	 
	 36.
	 	 Loan Agreement
	 	 	 	 	 	 	 	 	 	 	 	 
	 

 37.
	 	 Reserve Agreement

List if multiple Agreements
	 	 	 	 	 	 	 	 	 	 	 	 
	 38.
	 	 Cash Management or Lockbox Agreement
	 	 	 	 	 	 	 	 	 	 	 	 
	 

 39.
	 	 Guaranty/Indemnity Agreement (applies to all non-recourse events)
	 	 	 	 	 	 	 	 	 	 	 	 
	 40.
	 	 Environmental Indemnity
	 	 	 	 	 	 	 	 	 	 	 	 
	 

 41.
	 	 Intercreditor Agreement, Co-Lender Agreement or similar agreement
	 	 	 	 	 	 	 	 	 	 	 	 
	 42.
	 	 Interim Omnibus Assignment
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 Assignee (if any):
	 	 	 	 	 	 	 	 	 	 	 	 
	 

 43.
	 	 Omnibus Assignment
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 Assignee:    Seller
	 	 	 	 	 	 	 	 	 	 	 	 
	 44.
	 	 Omnibus Assignment
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 Assignee:    Blank
	 	 	 	 	 	 	 	 	 	 	 	 
	 

 45.
	 	 Participation Agreement
	 	 	 	 	 	 	 	 	 	 	 	 
	 46.
	 	 Participation Certificate
	 	 	 	 	 	 	 	 	 	 	 	 

 

 Annex 1-2

 
 

															
	 
	 	DOCUMENT NAME(1) 	 	REQ'D(2) 	 	DEL'D(3) 	 	STATUS(4) 	 	COMMENTS(5) 	 
	 

 47.
	 	 Closing Letter
	 	 	 	 	 	 	 	 	 	 	 	 
	 48.
	 	 As needed—List all other documents/collateral(6) being delivered.
	 	 	 	 	 	 	 	 	 	 	 	 

 

 	(1)
	Documents
listed may be modified for applicable Class of Mortgage Asset.

	(2)
	Seller
to indicate whether the document is required to be delivered.

	(3)
	Seller
to indicate whether the document is being delivered (applies to this delivery only—do not mark if documents were previously delivered).

	(4)
	Seller
to indicate whether the document is an original, certified copy or copy. For recordable documents, indicate if document is recorded, sent for
recordation, not sent for recordation.

	(5)
	Seller
or Custodian may indicate any relevant comments.

	(6)
	The
document descriptions should match the headings listed on the individual documents. The documents should be sent in the order listed on the checklist. 

 

 Annex 1-3

 

 
 

  Annex 2    
    

 
    FORM OF TRUST RECEIPT    
    

Wells
Fargo Bank, National Association

One Wells Fargo Center

301 South College Street

MAC D1053-053, 12th Floor

Charlotte, North Carolina 28202 

Attn:
John Nelson 

[                    ]
[    ], [20    ] 

	Re:
	Custodial
Agreement, dated as of December 14, 2011 (as amended or modified, the "Custodial
Agreement"), among Wells Fargo Bank, National Association, as buyer ("Buyer"), ACRC Lender W LLC and Wells Fargo Bank,
National Association, as custodian ("Custodian"). 

Check one:    Dry Mortgage Asset                    Wet Mortgage
Asset            

Ladies
and Gentlemen: 

        In
accordance with the provisions of Section 3.01 of the above-referenced Custodial Agreement (capitalized terms not otherwise
defined herein having the meanings ascribed to them in the Custodial Agreement), the undersigned, as Custodian, hereby certifies with respect to each Purchased Asset described in the attached Asset
Schedule and Exception Report as to all matters (subject to the Exceptions listed therein) set forth in Section 3.02 of the Custodial Agreement. 

        The
delivery of the attached Asset Schedule and Exception Report evidences that, other than the Exceptions listed as part of the Exception Report (i) all documents required to be
delivered in respect of each Purchased Asset pursuant to Section 2.01 of the Custodial Agreement have been delivered and are in the possession of
Custodian as part of the Mortgage Asset File for such Purchased Asset, (ii) Custodian is holding each Purchased Asset identified on the Asset Schedule and Exception Report, pursuant to the
Custodial Agreement, as the bailee of and custodian for Buyer and/or its designees and (iii) all such documents have been reviewed by Custodian and (A) appear on their face to be
regular, (B) appear to have been executed, (C) purport to relate to such Purchased Asset and (D) satisfy the requirements set forth in  Section 2.01 of the Custodial Agreement and the
Review Procedures set forth in Annex 4 to
the Custodial Agreement. 

        Custodian
makes no representations as to, and shall not be responsible to verify, (i) the validity, legality, enforceability, due authorization, recordability, sufficiency, or
genuineness of any of the documents contained in each Mortgage Asset File or (ii) the collectability, insurability, effectiveness or suitability of any such Purchased Asset. 

        Each
Asset Schedule and Exception Report covering all Purchased Assets sold to Buyer, delivered to Buyer by Custodian shall supersede and cancel the previously delivered Asset Schedule
and Exception Report attached to the Trust Receipt, and shall control and be binding upon the parties hereto. The holder of this Trust Receipt is advised to contact Custodian to determine whether the
attached Asset Schedule and Exception Report is the most recently delivered. 

Annex 2-1

 

        THIS
TRUST RECEIPT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"). ANY RESALE OR TRANSFER OF THIS
TRUST RECEIPT OR ANY INTEREST HEREIN WITHOUT REGISTRATION HEREOF UNDER THE ACT MAY ONLY BE MADE IN A TRANSACTION EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE ACT. 

 

					
	 
	 	  WELLS FARGO BANK, NATIONAL ASSOCIATION,

solely in its capacity as Custodian

	 
	 	 By:
	 	  

 
	 
	 	 	 	Name:
	 
	 	 	 	Title:

 

 Annex 2-2

 

 
 

  Annex 3    
    

 
 

[Reserved]    

Annex 3-1

 

 
 

  Annex 4    
    

 
 

  REVIEW PROCEDURES    
    

        This Annex sets forth Custodian's review procedures for each item listed below delivered by Seller pursuant to the Custodial Agreement
(the "Agreement") to which this Annex is attached. Capitalized terms used herein and not defined herein shall have the meanings ascribed to them in the
Agreement.  

	1.
	the
Mortgage Note, Senior Interest Note and/or the Mortgage each appear to bear an original signature or signatures purporting to be the signature or
signatures of the Person or Persons named as the maker and Mortgagor, or in the case of copies of the Mortgage permitted under  Section 2.01(a)(ii) of the Agreement, that such copies bear a
reproduction of such signature;

	2.
	amount
of the Mortgage Note or Senior Interest Note is the same as the amount specified on the related Mortgage, Participation Agreement and/or the related
Mortgage Asset Schedule;

	3.
	the
mortgagee is the same as the payee on the Mortgage Note;

	4.
	the
Mortgage contains a legal description other than address, city and state on the first page and has evidence of recording thereon;

	5.
	the
notary section (acknowledgment) is present and attached to the related Mortgage and is signed;

	6.
	neither
the original Mortgage Note or Senior Interest Note, nor the copy of the Mortgage delivered pursuant to the Agreement, nor the original Assignment of
Mortgage contain any notations on their face which appear in the good faith judgment of Custodian to evidence any claims, liens, security interests, encumbrances or restrictions on transfer;

	7.
	the
Mortgage Note or Senior Interest Note, is endorsed in blank by the named holder or payee thereof;

	8.
	each
original Assignment of Mortgage and any intervening assignment of mortgage, if applicable, appears to bear the original signature of the named mortgagee
or beneficiary including any subsequent assignors (and any other necessary party), as applicable, or in the case of copies permitted under  Section 2.01(a)(v) of the Agreement, that such copies
appear to bear a reproduction of such signature of signatures, and the intervening
assignments of mortgage evidence a complete chain of assignment and transfer of the related Mortgage from the originating Person to Seller;

	9.
	the
date of each intervening assignment is on or after the date of the related Mortgage and/or the immediately preceding assignment, as the case may be; and

	10.
	the
notary section (acknowledgment) is present and attached to each intervening assignment and is signed. 

Annex 4-1

 

 
 

  Annex 5-A    
    

 
    REQUEST FOR RELEASE AND RECEIPT    
    

Dated:    [                ]
[    ], [20    ] 

        The
undersigned, ACRC Lender W LLC ("Seller"), acknowledges receipt from Wells Fargo Bank, National Association, acting as agent,
bailee and custodian (in such capacity, "Custodian") for the exclusive benefit of Wells Fargo Bank, National Association
("Buyer") under the Master Repurchase and Securities Contract (the "Repurchase Agreement"), dated as of
December 14, 2011, among Seller, ACRC Lender W LLC and Buyer, of the following described documentation for the identified Purchased Asset (the
"Documentation"), possession of which is entrusted to Seller solely for the purpose of correcting the following documentary defects relating thereto: 

Purchased
Asset:

 

Current
Principal Balance: 

Documentation:

 

Defect:

 

        It
is hereby acknowledged that a security interest pursuant to the Uniform Commercial Code in the Documentation herein above described and in the proceeds of said Documentation has been
granted to Buyer pursuant to the Repurchase Agreement. 

        In
consideration of the aforesaid delivery by Custodian, Seller hereby agrees to hold said Purchased Assets in trust for Buyer as provided under and in accordance with all provisions of
the Repurchase Agreement and to return said Documentation no later than the close of business on the tenth day following the date hereof, or if such day is not a Business Day, on the immediately
preceding Business Day,
[                                         
   ]; [                                    ], Attention:
[                              ].
 

 

							
	 	 	ACRC LENDER W LLC, as Seller
	

 	
 	
By:	
 	
  

 
	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 

 

 Annex 5-A-1

 

Acknowledged
and Agreed: 

 

							
	WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Buyer	 	 
	
 By:	
 	
 

 	
 	

 
	 	 	Name:	 	 	 	 
	 	 	Title:	 	 	 	 

 

 Documents
returned to Custodian: 

 

							
	WELLS FARGO BANK, NATIONAL ASSOCIATION	 	 
	
 By:	
 	
  

 	
 	

 
	 	 	Name:	 	 	 	 
	 	 	Title:	 	 	 	 
	

Date:	
 	

 

 

 Annex 5-A-2

 

 
 

  Annex 5-B    
    

 
    FORM OF REQUEST FOR RELEASE OF DOCUMENTS AND RECEIPT    
    

 

			
	To:	 	Custodian
	 	 	[                                    ]

	 	 	[                                    ]

 

 
	Re:
	Custodial
Agreement, dated as of December 14, 2011 (the "Custodial Agreement"), among Wells Fargo
Bank, National Association ("Buyer"), ACRC Lender W, LLC ("Seller") and Wells Fargo Bank,
National Association, ("Custodian"). 

        In
connection with the administration of the Purchased Assets held by you as Custodian on behalf of Buyer, the undersigned request the release, to be delivered
to                    as
servicer (the "Servicer"), of the (Mortgage Asset File/[specify documents]) for the Purchased Asset described below, for the
reason indicated. 

 

			
	Mortgagor's Name, Address & Zip Code: 	 	Ship Files To: 
	 	 	Name:
	

 	
 	
Address:
	

 	
 	
Telephone Number:

 

 Purchased
Asset Description: 

Reason
for Requesting Documents (check one) 

 

			
	      1.	 	Purchased Asset Paid in Full. (Seller hereby certifies that all amounts received in connection therewith which are required to be remitted to Buyer have been credited to Buyer.)
	
      2.	
 	
Purchased Asset Liquidated
By                                    . (Seller hereby certifies that
all proceeds of insurance, condemnation or other liquidation have been finally received and credited to Buyer.)
	
      3.	
 	
Other (explain)
                                    .

 

         If
box 1 or 2 above is checked, and if all or part of the Mortgage Asset File was previously released to us, please release to us our previous request and receipt on file with
you, as well as any additional documents in your possession relating to the specified Purchased Asset. 

        If
box 3 above is checked, upon our return of all of the above documents to you as Custodian, please acknowledge your receipt by signing in the space indicated below, and
returning this form. 

        It
is hereby acknowledged that a security interest pursuant to the Uniform Commercial Code in the Purchased Assets described above and in the proceeds of said Purchased Assets has been
granted to Buyer pursuant to the Repurchase Agreement. 

        In
consideration of the aforesaid delivery by Custodian, the Servicer hereby agrees to hold said Purchased Assets in trust for Buyer as provided under and in accordance with all
provisions of the Custodial Agreement and to return said Purchased Assets to Custodian no later than the close of business on the tenth day following the date hereof or, if such day is not a Business
Day, on the immediately preceding Business Day. 

Annex 5-B-1

 

        The
Servicer hereby acknowledges that it shall hold said Purchased Assets in trust for, and as bailee of, Buyer and shall return said Purchased Assets only to Custodian. 

 

							
	 
	 	ACRC LENDER W LLC, as Seller
	 
	 	 By:
	 	  

 
	 
	 	 	 	Name:	 	 
	 
	 	 	 	Title:	 	 
	 
	 	 	 	Date:	 	 

 

 Acknowledged
and Agreed: 

[SERVICER]

 

							
	
 By:	
 	

 	
 	

 
	 	 	Name:	 	 	 	 
	 	 	Title:	 	 	 	 

 

  

WELLS
FARGO BANK, NATIONAL ASSOCIATION,

as Buyer 

 

							
	
 By:	
 	

 	
 	

 
	 	 	Name:	 	 	 	 
	 	 	Title:	 	 	 	 

 

 Acknowledgment
of Documents returned to Custodian: 

 

							
	 
	 	 WELLS FARGO BANK, NATIONAL

ASSOCIATION, as Custodian

	 
	 	 By:
	 	  

 
	 
	 	 	 	Name:	 	 
	 
	 	 	 	Title:	 	 
	 
	 	 	 	Date:	 	 

 

 Annex 5-B-2

 

 
 

  Annex 5-C    
    

 
    Request for Release    
    

Dated:    [                  ]
[    ], [20    ] 

        The
undersigned, [    ] ("Seller"), requests release from Wells Fargo Bank, National Association, acting
as agent, bailee and custodian (in such capacity, "Custodian") for the exclusive benefit of Buyer (as that term and other capitalized terms not
otherwise defined herein are defined in that certain Master Repurchase and Securities Contract (the "Agreement"), dated as of December 14, 2011,
among ACRC Lender W LLC, as Seller, and Wells Fargo Bank, National Association, as Buyer, of the following described documentation for the identified Eligible Assets, possession of which shall
be delivered to [                        ] (the "Approved Purchaser") in connection
with the sale thereof. The anticipated closing date
for such sale is
[                  ] [    ], [20    ], and the anticipated purchase proceeds shall equal:
$                              . 

 

					
	Description of Purchased Asset

 
	 	Note Amount 	 	Asset Document

Delivered 
	

            	 	 	 	 
	            	 	 	 	 
	

            	 	 	 	 

 

         Please
send the referenced documentation to: 

[NAME
OF PURCHASER]

[ADDRESS]

[TELEPHONE]

[ATTENTION:] 

Annex 5-C-1

 

        Please
deliver documents to the Approved Purchaser via [                  ], accompanied by a transmittal letter in the form of  Annex 10 of the agreement relating to this Annex 5-C. 

 

							
	 	 	ACRC LENDER W LLC, as Seller
	

 	
 	
By:	
 	

 
	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 

 

 Acknowledged
and Agreed: 

 

							
	WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Buyer	 	 
	
 By:	
 	

 	
 	
 
	 	 	Name:	 	 	 	 
	 	 	Title:	 	 	 	 

 

 Annex 5-C-2

 

 
 

  Annex 6    
    

 
 

  AUTHORIZED REPRESENTATIVES OF BUYER    
    

 

					
	Name 	 	Title 	 	Specimen Signature 
	

 	 	  

 	 	  

 
	

 	 	  

 	 	  

 
	

 	 	  

 	 	  

 
	

 	 	  

 	 	  

 
	

 	 	  

 	 	  

 

 

 Annex 6-1

 

 
 

  Annex 7    
    

 
 

  AUTHORIZED REPRESENTATIVES OF SELLER    
    

 

					
	Name 	 	Title 	 	Specimen Signature 
	
 John B. Bartling

 	
 	
Chief Executive Officer

 	
 	
  

 
	
Bruce R. Cohen

 	
 	
President

 	
 	
  

 
	
Thomas A. Jaekel

 	
 	
Vice President

 	
 	
  

 
	
David J. Friedman

 	
 	
Vice President

 	
 	
  

 
	
Henry J. Bieber

 	
 	
Vice President

 	
 	
  

 
	
J. Jason Choulochas

 	
 	
Vice President

 	
 	

 
	
Michael D. Weiner

 	
 	
Vice President, Secretary, and General Counsel

 	
 	
  

 
	
Timothy B. Smith

 	
 	
Vice President and Assistant Secretary

 	
 	
  

 
	
Richard S. Davis

 	
 	
Vice President, Treasurer, and Chief Financial Officer

 	
 	
  

 

 

 Annex 7-1

 

 

 
 

  Annex 8    
    

 
 

  AUTHORIZED REPRESENTATIVES OF CUSTODIAN    
    

 

					
	Name 	 	Title 	 	Specimen Signature 
	

 	 	  

 	 	  

 
	

 	 	  

 	 	  

 
	

 	 	  

 	 	  

 

 

 Annex 8-1

 

 
 

  Annex 9    
    

 
    FORM OF LOST NOTE AFFIDAVIT    
    

        I, as [                ] (title) of Wells Fargo Bank, National Association
("Custodian"), am authorized to make this Lost Note Affidavit on behalf of Custodian. In connection with the administration of the Purchased Assets held
by Custodian on behalf of Wells Fargo Bank, National Association ("Buyer"), [                ] (hereinafter called
"Deponent"), being duly sworn, deposes and says that: 

        1.     Custodian's
address is: 

        2.     [CUSTODIAN'S
Address] 

        3.     Custodian
previously delivered to Buyer an Asset Schedule and Exception Report with respect to the [Mortgage Note/Senior Interest Note] made by
[                ] in favor of
[                        ], dated
[                ] [      ],
[20      ], in the principal amount of $[                ] which did not indicate such [Mortgage Note/Senior Interest
Note] is missing; 

        4.     Such
[Mortgage Note/Senior Interest Note] was sold to Buyer by Seller pursuant to the terms and provisions of an Master Repurchase Agreement dated
and effective as of December 14, 2011; 

        5.     Such
[Mortgage Note/Senior Interest Note] is not outstanding pursuant to a Request for Release of Documents; 

        6.     Aforesaid
[Mortgage Note/Senior Interest Note] (hereinafter called the "Original") has been lost; 

        7.     Deponent
has made or has caused to be made diligent search for the Original and has been unable to find or recover same; 

        8.     Custodian
was Custodian of the Original at the time of loss; and 

        9.     Deponent
agrees that, if said Original should ever come into Custodian's possession, custody or power, Custodian will immediately and without consideration surrender the
Original to Buyer. 

        10.   Attached
hereto is a true and correct copy of (i) the [Mortgage Note/Senior Interest Note], endorsed in blank by the most recent endorsee
prior to the applicable Seller, without recourse, to the order of such Seller and further reflecting a complete, unbroken chain of endorsement from the related originator/original participation holder
to such Seller, as provided by ACRC Lender W LLC or its designee and (ii) the Mortgage which secures the [Mortgage Note/Senior Interest Note], which Mortgage is
recorded at [                ]. 

        11.   Deponent
hereby agrees that Custodian (a) shall indemnify and hold harmless Buyer, its successors, and assigns, against any cost, loss, liability or damage,
including reasonable attorneys' fees, resulting from the unavailability of any Originals, including but not limited to any cost, loss, liability or damage arising from (i) any false statement
contained in this Lost Note Affidavit, (ii) any claim of any party that it has already purchased a mortgage loan evidenced by the Originals or any interest in such mortgage loan,
(iii) any claim of any borrower with respect to the existence of terms of a Purchased Asset evidenced by the Originals, (iv) the issuance of new instrument in lieu thereof and
(v) any claim whether or not based upon or arising from honoring or refusing to honor the Original when presented by anyone (items (i) through (iv) above are hereinafter referred
to as the "Losses") and (b) if required by any rating agency in connection with placing such Originals into a structured and rated transaction,
shall obtain a surety bond from an insurer acceptable to the applicable rating agency in an amount acceptable to such rating agency to cover any Losses with respect to such Originals. 

Annex 9-1

 

        12.   This
Affidavit is intended to be relied on by Buyer, its successors, and assigns and [                ] represents and warrants that it has the
authority to perform its obligations under this Affidavit. 

 

			
	 
	 	 EXECUTED THIS        day
of            , 20    ,

on behalf of Custodian by:

	 
	 	 
	 
	 	 

  Signature
	 
	 	 

  Typed Name

 

         On
this                day
of                                    , 20    ,
before me
appeared                                        
        , to me personally know, who being duly sworn did say that she/he is the
                                    of     
                                          
 , and that said Lost Note Affidavit was signed and sealed on behalf of such corporation and
said                                         
       acknowledged this instrument to be the free act and
deed of said corporation. 

Notary
Public in and for the

State
of                                         
         .

My Commission expires:                      . 

Annex 9-2

 

 

 
 

  Annex 10    
    

 
    TRANSMITTAL & BAILMENT LETTER
  [Custodian Letterhead]    

        Re:    [Insert Description of Purchased Asset] 

Ladies
and Gentlemen: 

        Subject
to the terms and conditions set forth below, we hereby transmit the documents listed on Exhibit A hereto (the "Purchased Asset
Documents") relating to the above-referenced asset (the "Purchased Asset"). We have released possession of the
[Mortgage Note/Senior Interest Note] to you only in reliance on your agreement with the terms and conditions set forth below. 

        By
your acceptance of the Purchased Asset Documents, you acknowledge that (i) Wells Fargo Bank, National Association ("Buyer") has
a perfected first-lien security interest in the Purchased Asset and (ii) you have received possession of the Purchased Asset Documents, in trust, as bailee for and agent of Wells
Fargo Bank, National Association ("Custodian") (which holds the Mortgage Asset Documents as custodian and bailee for the benefit of Wells Fargo Bank,
National Association), pursuant to the provision of the Uniform Commercial Code. Until your status as bailee is terminated as set forth below, you agree not to deliver the Purchased Asset Documents to
ACRC Lender W LLC or any third party and to act only as agent for Custodian with respect to the Purchased Asset Documents. 

        Your
status and obligations as bailee shall automatically terminate, without further action by any party, upon earliest to occur of (i) payment of the full amount of the purchase
price specified in your original purchase commitment plus any servicing released premium specified in such purchase commitment (the "Purchase Price")
for such Purchased Asset to Buyer. (the "Purchase Date") or (ii) return of the Purchased Asset Documents to Custodian, as set forth below. Buyer
agrees that its security interest in the Purchased Asset Documents, and all of Buyer's. right, title, and interest it may have in and to the related Purchased Assets purchased by you, are and shall be
fully released effective as of the Purchase Date. 

        For
purposes of the Purchase Date set forth above, the Purchase Price shall be deemed paid in full when Buyer receives a federal wire transfer in the amount of the Purchase Price sent to
Buyer in immediately available funds to: [                    ]; ABA:
[                                ]; Account #:
[                                ]; Account Name:
[                                ]. 

        You
agree only to send payments to Wells Fargo Bank, National Association, as specified above, and not to honor a change in the above wire transfer or mailing instructions unless
provided in writing and signed by                                . 

        You
agree to deliver the Purchased Asset Documents: (a) Upon your receipt of Buyer's written request therefore (provided that such request is received by you prior to your payment
of the Purchase Price); or (b) promptly, in the event that you elect not to purchase the Purchased Asset, or in the event that a Purchased Asset Document is defective and requires correction.
In the alternative, you agree to take such other action with respect to the Purchased Asset Documents as may be agreed upon in writing between Buyer and you. Any delivery by you to Custodian shall be
made by express mail to the address of Custodian set forth below; provided however, that in no case shall you return such Mortgage Asset File to
Custodian later than twenty (20) calendar days after receipt of such Mortgage Asset File. 

        Any
Purchased Asset Documents (or portion thereof) being returned in accordance herewith shall be sent to Custodian by overnight courier to: Wells Fargo Bank, National Association;
[Address]: [                                    ], Attention:
[                                    ], no later than twenty
(20) calendar days after the date
hereof. 

Annex 10-1

 

        Any
questions relating to the Purchased Asset Documents should be referred to                            at
[                            ]. 

        By
acknowledging receipt of this Bailee Letter you shall be bound by the terms hereof. Purchaser requests that you acknowledge receipt of the Purchased Asset Documents and this Bailee
Letter by signing and returning the enclosed copy of this Bailee Letter in the enclosed self-addressed envelope; provided, however, that your failure to do so does not nullify investor's
acceptance of the terms of this Bailee Letter. 

 

							
	 
	 	 	 	  Sincerely,

	 
	 	 	 	  WELLS FARGO BANK, NATIONAL ASSOCIATION

(Custodian)

	 
	 	 	 	 By:
	 	 

  Name:

Title:
	  Acknowledged and Agreed this      day
of                , 20    
	 	 	 	 
	  [PURCHASER]
	 	 	 	 
	 By:
	 	 

  Name:

Title:	 	 	 	 

 

 Annex 10-2

 

 

 
 

  ANNEX 11    
    

 
    FORM OF BAILEE AGREEMENT
  
    ACRC Lender W LLC
  c/o Ares Management LLC
  2 North LaSalle St., 9th floor
  Chicago, IL 60602    

                        ,
20    

[Name
of Bailee]

[Address] 

	Re:
	Custodial
Agreement, dated as of December 14, 2011 (as amended or modified, the "Custodial
Agreement"), among Wells Fargo Bank, National Association, as buyer (the "Buyer"), ACRC Lender W LLC (the
"Seller") and Wells Fargo Bank, National Association, as custodian (the "Custodian"). 

Dear
Sir or Madam: 

        Capitalized
terms use but not otherwise defined herein shall have the respective meanings given thereto in the Custodial Agreement. ACRC Lender W LLC hereby sends to you documents
evidencing or otherwise relating to one or more Wet Mortgage Assets as set forth on Schedule A attached hereto
("Documents"), for which you have agreed to act as bailee. 

        Buyer
intends to purchase such Wet Mortgage Asset(s) from Seller, and in connection therewith, Seller will grant a security interest in the Documents referred to below and the Wet
Mortgage Asset(s) to which such Documents relate to Buyer. The Custodian is acting as custodian for Buyer in connection with the Documents. 

        Schedule A attached hereto identifies the specific Documents delivered, and each Wet Mortgage Asset to which they relate. At the
end of this bailee agreement there is a space for you to sign and to acknowledge your receipt of such Documents. Upon your receipt of all such Documents, you hereby agree to (i) deliver to
Buyer, Seller and the Custodian, a PDF copy, via Electronic Transmission, of this bailee agreement, signed in the acknowledgment space by you, pursuant to which you (a) acknowledge receipt of
the Documents listed in Schedule A, and (b) acknowledge that with respect to such listed Documents you are acting as bailee of Buyer in
accordance with the terms of this bailee agreement and (ii) deliver PDF scanned and fully executed copies of all such Documents to the Custodian via Electronic Transmission. 

        Upon
receipt by you of fully executed original copies of all of the Documents and your receipt of written or telephonic confirmation from Seller and Buyer (or their respective counsel)
that any and all closing conditions (including, in the case of Seller, any and all closing conditions set forth in any separate escrow letter with the borrower or other counterparty with respect to
each applicable Wet Mortgage Asset to which this bailee agreement relates, you shall do each of the following in the order specified: 

        1.     Deliver
the Documents via overnight mail to the Custodian at the address listed on the signature page hereto. 

        2.     Notify
Buyer that all of the foregoing actions have been completed. 

        All
costs and expenses incurred in carrying out these instructions shall be borne by Seller, and you shall not look to any other party for reimbursement of, or liability for, such costs
and expenses. 

Annex 11-1

 

        If
for any reason on or before 5:00 P.M. (New York City time) on the Purchase Date you have not received confirmation from Seller and Buyer (or their respective counsel) that any
and all of the closing conditions have been satisfied, you shall contact Buyer immediately for further instructions. If Seller's origination of any applicable Wet Mortgage Asset is delayed, you will
return the related Documents to Seller unless otherwise instructed by Buyer. 

        By
signing this bailee agreement below where indicated, (a) you agree that on and after the date hereof until you are otherwise notified by Buyer or the Custodian, any Documents
delivered to you as described above will be held by you as bailee for Buyer, (b) you certify that, as of the date of your receipt of any Documents, you have not received notice of any interest
of any other person or entity in such Documents or the related Wet Mortgage Asset(s), (c) you agree that you will deliver the Documents to the Custodian by not later than the fifth (5th)
Business Day after the date of this letter and (d) you certify that if you have any security interest in the Documents or the Wet Mortgage Asset to which those Documents relate, you agree to
waive any interest you may acquire therein at any time, whether arising pursuant to law or otherwise. 

        Seller
and Buyer hereby irrevocably instruct you that any Documents in your possession are to be held by you as bailee for Buyer, as provided herein until they are delivered to the
Custodian at the address noted above together with a copy of this bailee agreement; provided that if Buyer or the Custodian notifies you that Buyer's
security interest in any of above-referenced Wet Mortgage Asset has been released or did not attach (the "Release Notice"), from the date of such
Release Notice you will hold the Documents relating to such Wet Mortgage Asset (and no others) as bailee for Seller, in which case you will follow Seller's instructions regarding such Documents, and
such Documents shall be released to Seller at the address noted above, or its designee (including the Servicer), instead of returning them to the Custodian; and provided
further that prior to the date of any Release Notice, notwithstanding anything herein or elsewhere to the contrary, if you receive instructions from Buyer or the Custodian
which do not comport with instructions you may have received from Seller or the Servicer, including, without limitation, instructions to deliver the Documents to the Custodian, Buyer or any other
person or entity, you shall abide by the instruction of the Custodian or Buyer. 

        You
agree to immediately give telephonic notice (followed by written notice) to the Custodian if you receive notice of any inquiry from any other person or entity of or with respect to
any interest in the Documents or the related loan and you agree that you shall immediately notify each such person in writing, with a copy to the Custodian, of the prior interest of Buyer therein. 

        This
bailee agreement supersedes any bailee agreement or other agreement or arrangement that may exist between you and Seller. Notwithstanding any contrary understanding with you, Seller
or any other person or entity, or any instruction to you from Seller or any other person or entity, you shall abide by the terms of this letter. No deviation in performance of the terms of any
previous bailee agreement between you and any of the undersigned shall alter any of your duties or responsibilities as set forth herein. 

        Because
time is of the essence, please promptly sign and date the enclosed copy of this bailee agreement and return it via overnight delivery service to Buyer and the Custodian at the
above address and via telecopier, send a copy of this executed bailee agreement to Seller. 

        NOTE:    BY ACCEPTING THE DOCUMENTS DELIVERED TO YOU WITH THIS BAILEE LETTER RELATED TO THE WET MORTGAGE ASSETS, YOU CONSENT TO BE THE BAILEE FOR BUYER
ON THE TERMS DESCRIBED IN THIS BAILEE LETTER. THE CUSTODIAN REQUESTS THAT YOU ACKNOWLEDGE RECEIPT OF THE ENCLOSED DOCUMENTS RELATED TO EACH APPLICABLE WET MORTGAGE ASSET AND THIS BAILEE LETTER BY
SIGNING AND RETURNING THE ENCLOSED COPY OF THIS BAILEE LETTER TO THE CUSTODIAN; HOWEVER, YOUR FAILURE TO DO SO DOES NOT NULLIFY SUCH CONSENT.

Annex 11-2

 
 

					
	 	 	Very truly yours,
	

 	
 	
ACRC Lender W LLC, as Seller
	

 	
 	
By:	
 	

 
	 	 	 	 	Name:
	 	 	 	 	Title:

 

 

					
	ACKNOWLEDGED AND AGREED:	 	 
	

[Bailee]	
 	

 
	
 By:	
 	

 	
 	

 
	 	 	Print Name:	 	 
	 	 	Date:	 	 

 

 cc:

 

			
	Custodian:	 	Wells Fargo Bank, National Association

1055 10th Avenue SE

Minneapolis, Minnesota 55414

Attention:    Kathleen A. Marshall

Telecopier No.:    (612) 466-5416

Email:    kathleen.a.marshall@wellsfargo.com
	
 Buyer:	
 	
Wells Fargo Bank, National Association

One Wells Fargo Center

301 South College Street

MAC D1053-053, 12th Floor

Charlotte, North Carolina 28202

Attn:    John Nelson

Telecopier No.:    (877) 711-6173

Email:    john.r.nelson1@wellsfargo.com

 

 Annex 11-3

 
 
 

  Schedule A to Bailee Agreement    
    

[List
to include all documents described in Mortgage Asset File set forth in Section 2.01(a) - (d) of the Custodial Agreement.] 

Annex 11-4

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