Document:

Exhibit

Exhibit 10.9

Execution Version

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

WARRANT AGREEMENT
by and among
PROSPER MARKETPLACE, INC.,
PF WARRANTCO HOLDINGS, LP 
and
for certain limited purposes,
NEW RESIDENTIAL INVESTMENT CORP.

Dated as of February 27, 2017

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

WARRANT AGREEMENT
THIS WARRANT AGREEMENT (this “Agreement”), dated as of February 27, 2017, is made by and among Prosper Marketplace, Inc., a Delaware corporation (the “Company”), PF WarrantCo Holdings, LP, a Delaware limited partnership (the “Warrant Holder”), and solely with respect to its rights, and the performance of its obligations, set forth in [***] hereof, New Residential Investment Corp., a Delaware corporation (“NRZ”). 
WITNESSETH:
WHEREAS, on the date hereof, the Company is issuing and delivering warrant certificate(s) in the form of Exhibit A hereto (the “Warrant Certificates”) evidencing warrants (“Warrants”) to purchase up to one hundred seventy seven million seven hundred twenty thousand seven hundred and six (177,720,706) shares of Series F Preferred Stock (such number of shares, as may hereinafter be adjusted from time to time pursuant to a Recapitalization (as defined in the Certificate of Incorporation)), par value $0.01 per share (“Series F Preferred Stock”), of the Company, subject to adjustment as provided herein; 
WHEREAS, contemporaneously with the signing of this Agreement, Prosper Funding LLC, a Delaware limited liability company (“Prosper Funding”), and PF LoanCo Funding LLC, as beneficiary (“Beneficiary”) and PF LoanCo Trust (“Purchaser”) have entered into that certain Loan Purchase Agreement, dated as of the date hereof (as amended from time to time, the “Loan Purchase Agreement”); 
WHEREAS, contemporaneously with the signing of this Agreement, Prosper Funding, Beneficiary and Purchaser have entered into that certain Servicing Agreement, dated as of the date hereof (as amended from time to time, the “Servicing Agreement”); and
WHEREAS, contemporaneously with the signing of this Agreement, Purchaser has also become a party and is subject (as applicable) to the Stockholder Documents (as defined below). 
NOW, THEREFORE, in consideration of the foregoing and the covenants and agreements of the parties hereto herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Warrant Holder each hereby agree as follows:
ARTICLE I 
Definitions
As used in this Agreement, the following terms shall have the following meanings:
[***]
“Acceleration Event” means a Liquidation Event pursuant to Section 9.7(a), or an LPA Warrant Acceleration Event or [***] pursuant to Section 9.7(b), in each case that triggers acceleration of the exercisability of the Warrants pursuant to the terms thereof.
“Accredited Investor” has the meaning set forth in Section 7.2.
“Acquisition Agreement” has the meaning set forth in clause (f) of the definition of “Material Contract”.
“Actual Knowledge of the Company” means the actual (but not constructive or imputed) knowledge of any individual employed by the Company listed on Annex A of this Agreement.
“Additional Available Warrants” has the meaning set forth in Section 2.2(b).
“Additional Available Total Series F Warrants” has the meaning set forth in Section 2.2(b).

1

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

“Additional Exercisable Warrants” has the meaning set forth in Section 9.5(a).
“Additional Total Series F Warrant Shares” has the meaning set forth in Section 2.2(b).
“Additional Warrant Exercisability Period” has the meaning set forth in Section 9.4.
“Additional Warrant Exercisability Period Closing Date” has the meaning set forth in Section 9.4.
“Additional Warrants” has the meaning set forth in Section 2.2(b).
“Adjustment Statement” has the meaning set forth in Section 4.2.
“Affiliate” means when used with respect to any Person, any other Person directly or indirectly controlling, controlled by or under common control with, such Person.  As used in this definition of Affiliate, the term “control” means the power, directly or indirectly, to direct or cause the direction of the management and policies of a Person, whether through ownership of such Person's voting securities, by contract or otherwise, and the terms “affiliated”, “controlling” and “controlled” have correlative meanings..
“Agreement” has the meaning set forth in the preamble to this Agreement.
“AML Laws” has the meaning set forth in Section 7.1(o)(iii).
“Automatic Exercise Event” has the meaning set forth in Section 3.5.
“Beneficiary” has the meaning set forth in the recitals to this Agreement.
“Board” means the board of directors of the Company.
“Business Day” means any day that is not a day on which banking institutions are authorized or required to be closed in the State of New York, the State of California or the State of Utah.
“Certificate of Incorporation” means the Company’s Certificate of Incorporation, as amended and in effect as of the date hereof and as further amended from time to time after the date hereof.
“Code” means the Internal Revenue Code of 1986, as amended.
[***]
[***]
[***]
[***]
[***]
“Common Stock” means shares of Common Stock, par value $0.01 per share, of the Company.
“Company” has the meaning set forth in the preamble to this Agreement, and its successors and assigns.
“Company Competitor” means each Person listed on Annex B hereto.
“Company Schedule of Exceptions” means the exceptions to the representations and warranties of the Company made in Article VII of this Agreement.

2

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

“Company SEC Reports” means all forms, reports, statements, schedules and other documents filed by the Company or Prosper Funding with the SEC since [***].
“Cure [***]% Test” has the meaning set forth in Section 9.2.
[***]
[***]
[***]
[***]
“Deemed Presented” means any amount of Eligible Loans deemed presented by Prosper Funding pursuant to Section [***] of the Loan Purchase Agreement during any [***].  For the avoidance of doubt, any Eligible Loans deemed presented by Purchaser for purposes of Section [***] of the Loan Purchase Agreement shall be deemed presented for purposes of (a) calculating the Minimum Monthly Purchase Test and the Term Monthly Minimum Shortfall Amount and (b) the exercisability of warrants, in each case pursuant to Section 9.2, Section 9.3 and Section 9.4 hereof.    
“Deemed Purchased” means any amount of Eligible Loans (a) with respect to which Prosper Funding [***] or (b) deemed purchased by Purchaser pursuant to Section 2.9(e) of the Loan Purchase Agreement during any [***].  For the avoidance of doubt, any Eligible Loans deemed purchased by Purchaser for purposes of Section [***] of the Loan Purchase Agreement shall be deemed purchased for purposes of (i) calculating the Maximum Monthly Purchase Amount, the Minimum Monthly Purchase Amount, the Minimum Monthly Purchase Test and the Term Monthly Minimum Shortfall Amount and (ii) the exercisability of warrants, in each case pursuant to Section 9.2, Section 9.3 and Section 9.4 hereof.
 “Eligible Loans” has the meaning set forth in the Loan Purchase Agreement; provided, that, for the purposes of exercisability of the Warrants, in the event the Purchaser purchases a Loan despite the Loan not constituting an Eligible Loan, such Warrants shall nevertheless, solely for the purposes of exercisability of the Warrants pursuant to Section 9.2, Section 9.3 and Section 9.4, as applicable, be considered Eligible Loans.
“End-Of-Term True-Up Date” has the meaning set forth in Section 9.3.
“End-Of-Term True-Up Exercisable Warrants” has the meaning set forth in Section 9.5(a).
“Exercisability Adjustment Report” has the meaning set forth in Section 9.5(b).
“Exercise Price” has the meaning set forth in Section 3.1.
“Expiration Date” has the meaning set forth in Section 3.3.
[***]
 “GAAP” means generally accepted accounting principles in effect in the United States of America as of the date hereof as consistently applied by the Company.
“Governmental Entity” means any court, administrative agency, tribunal, department, bureau or commission or other governmental authority or instrumentality, domestic or foreign, federal, state or local.
“Holders” means the Warrant Holder and any assignee or transferee of the Warrant Holder pursuant to, and in accordance with, this Agreement, and any Person that holds Underlying Securities acquired through the exercise of Warrants or the conversion of Series F Preferred Stock and, in each case, any assignee or transferee of such Persons pursuant to, and in accordance with, this Agreement.

3

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

“including” means “including, without limitation”.
“Indebtedness” means (a) indebtedness for borrowed money or indebtedness issued in substitution or exchange for borrowed money or for the deferred purchase price or consideration in respect of property or services; (b) indebtedness or other obligations evidenced by notes, bonds, debentures, letters of credit or similar instruments (including any debt security); (c) all interest rate and currency swaps, caps, collars and similar agreements or hedging devices or instruments under which payments are obligated to be made, whether periodically or upon the happening of a contingency; or (d) obligations under a lease agreement that would be capitalized pursuant to GAAP (excluding, for the avoidance of doubt, in the case of each of (a) through (d) of this definition any ordinary course trade payables of, or borrower payment dependent notes or any other similar asset-backed debt instruments issued by, the Company or its Subsidiaries).
“Initial [***]% Test” has the meaning set forth in Section 9.2.
[***]
“Key Employee” has the meaning set forth in clause (a) of the definition of “Related Party”.
“Knowledge of the Company” means the actual (but not constructive or imputed) knowledge, after due inquiry, of any individual employed by the Company listed on Annex A of this Agreement.  “Due inquiry” for purposes of this definition shall mean the reasonable due and diligent inquiry of (a) all relevant employees, consultants and advisors of the Company and its Subsidiaries that such individual listed on Annex A of this Agreement should reasonably believe would have actual knowledge of the matters represented and (b) all relevant books and records of the Company and its Subsidiaries that such individual on Annex A of this Agreement should reasonably believe would contain information regarding the matters represented.
“Liquidation Event” has the meaning set forth in Section 3(d) of the Amended and Restated Certificate of Incorporation of the Company.
[***]
“Loan Purchase Agreement” has the meaning set forth in the recitals to this Agreement.
“Loan Purchase Obligation” means an amount equal to $[***].
“LPA Warrant Acceleration Event” means each of the termination events under the Loan Purchase Agreement set forth in Annex C hereof.
“Majority Holders” means the Holders of a majority of the Warrants and Underlying Securities then outstanding.
“Material Contract” means each of the following contracts, commitments, arrangements and understandings, whether written or oral, to which the Company or any of its Subsidiaries is a party or is otherwise bound, or by which the assets or properties of the Company or any of its Subsidiaries are bound:
(a)    any WebBank Agreement;
(b)    any loan purchase agreement, loan servicing agreement, backup servicing agreement or agreement related to the securitization of loans;
(c)    any mortgage, indenture, note or installment obligation, or other instrument for or relating to outstanding Indebtedness of the Company or its Subsidiaries, or any guarantee by the Company or its Subsidiaries of any of the foregoing;

4

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

(d)    any agreement for the sale or lease (as lessor) of any of its material assets;
(e)    any agreement for the purchase or lease (as lessee) of any material assets;
(f)    any agreement that effected a prior acquisition, or sale, of the business, a material portion of the assets, or the stock of another company pursuant to which the Company or any of Subsidiaries has any outstanding obligation, whether currently or in the future, to make payments, contingent or otherwise (each, an “Acquisition Agreement”); 
(g)    any agreement imposing on the Company or any of its Subsidiaries any non-competition or exclusive dealing obligations;
(h)    any agreement with respect to the purchase, sale or servicing of loans that includes a “most favored nation”, “meet or release”, “right of first refusal”, “right of first offer” “or similar arrangements, including any agreement with a counterparty that gives such counterparty the right to enter into a loan purchase agreement on the same or similar terms as the terms set forth in the Loan Purchase Agreement, or the right to otherwise benefit from or receive, directly or indirectly, any of the terms of the Loan Purchase Agreement (any such agreement, an “MFN Agreement”);
(i)    any agreement for the employment of any Key Employee;
(j)    any agreement concerning a partnership, joint venture or similar business arrangement with any Person;
(k)    any agreement with a Governmental Entity, other than any consent or settlement orders issued by, or entered into with, a Governmental Entity that cannot be disclosed due to confidentiality restrictions; and
(l)    any agreement which (i) involves annual payment or revenue by or to the Company or any Subsidiary of the Company in excess of $[***] or (ii) is otherwise material to the extent relating to the conduct of the business of the Company and its Subsidiaries.
“Maximum Monthly Purchase Amount” has the meaning set forth in the Loan Purchase Agreement.
“MFN Agreement” has the meaning set forth in clause (h) of the definition of “Material Contract”.
“Minimum Monthly Purchase Amount” has the meaning set forth in the Loan Purchase Agreement.
“Minimum Monthly Purchase Test” has the meaning set forth in Section 9.3.
“Monthly Closing Date” has the meaning set forth in Section 9.2.
“Monthly Exercisable Warrants” has the meaning set forth in Section 9.5(a).
“Monthly Purchase Acceptance” has the meaning set forth in the Loan Purchase Agreement.
“Monthly Purchase Request” has the meaning set forth in the Loan Purchase Agreement.
“Monthly Purchase Amount” has the meaning set forth in the Loan Purchase Agreement.
“Non-Acceleration LPA Termination Event” has the meaning set forth in Section 9.7(a).
“Non-Public Personal Information” means any “non-public personal information” (as such term is defined in the Gramm-Leach-Bliley Act and/or the regulations implementing the provisions of such law and relevant state law) 

5

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

and other personally identifiable information relating to existing or prospective borrowers of the Company and its Subsidiaries and their existing or prospective co-signors and guarantors (if applicable).
“Nonqualifying Income” means any amount that is treated as gross income for purposes of Section 856 of the Code and which is not qualifying income that is described in Section 856(c)(3) of the Code.
“Omnibus Agreement” means the Omnibus Agreement dated as of the date hereof by and among Warrant Holder, the Company and Prosper Funding.
“OFAC” has the meaning set forth in Section 7.1(o)(iii).
“Permit” means any, in each case material, permit, approval, consent, authorization, license, variance, or permission required by a Governmental Entity.
“Person” means all natural persons, corporations, limited partnerships, general partnerships, joint stock companies, limited liability companies, joint ventures, associations, companies, trusts, banks, trust companies, land trusts, business trusts or other organizations, whether or not legal entities, and federal and state governments and agencies or regulatory authorities and political subdivisions thereof, or any other entity.
“Pre-Closing Purchase Credit Amount” means an amount equal to $[***].
“Pre-Closing Purchase Credit Series F Warrant Shares” has the meaning set forth in Section 9.1.
“Proposed Additional Warrant Exercisability Closing Statement” has the meaning set forth in Section 9.5(a).
“Proposed End-Of-Term Closing Statement” has the meaning set forth in Section 9.5(a).
“Proposed Monthly Closing Statement” has the meaning set forth in Section 9.5(a).
“Prosper Funding” has the meaning set forth in the recitals to this Agreement.
“Purchaser” has the meaning set forth in the recitals to this Agreement.
[***]
[***]
[***]
“Reorganization” has the meaning set forth in Section 4.1(c).
“Related Party” means (a) any of the Company’s or any of its Subsidiaries’ current directors, “C-level” employees or the persons set forth on Annex D hereto (each such director, employee or person, a “Key Employee”), (b) any stockholders of the Company holding 5% or more of the outstanding equity securities of the Company on a fully diluted basis, or (c) any members of the immediate family of any of the Persons set forth in clause (a).
“SEC” means the U.S. Securities and Exchange Commission.
“Securities Act” means the Securities Act of 1933, as amended.
[***]
“Series F Preferred Stock” has the meaning set forth in the recitals to this Agreement.

6

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

[***]
“Servicing Agreement” has the meaning set forth in the recitals to this Agreement.
“Stockholder Documents” means, collectively, (i) the Certificate of Incorporation, as adopted in connection with the transactions contemplated under this Agreement, and (ii) the Amended and Restated Voting Agreement among the Company and the entities and persons listed on certain exhibits thereto, the Amended and Restated Right of First Refusal and Co-Sale Agreement among the Company and the entities and persons listed on certain exhibits thereto and the Amended and Restated Investor Rights’ Agreement among the Company and the entities and persons listed on certain exhibits thereto, in each case dated as of the date hereof, and as may be amended thereafter from time to time.
“Subsidiary” of any entity means any corporation, limited liability company, partnership or other legal entity of which such entity directly or indirectly owns or controls at least a majority of the outstanding stock or other equity interest having general voting power.
“Taxes”, or “Tax” means (i) any and all federal, state, local, foreign and other taxes, levies, fees, imposts, duties and charges, in all cases in the nature of a tax (including any interest, penalties or additions to the tax imposed in connection therewith or with respect thereto), whether or not imposed on the Company or its Subsidiaries, including, taxes imposed on, or measured by, income, franchise, profits or gross receipts, and also ad valorem, value added, sales, use, service, real or personal property, capital stock, license, payroll, withholding, employment, social security, workers’ compensation, unemployment compensation, utility, severance, production, excise, stamp, occupation, premium, windfall profits, transfer and gains taxes and customs duties, whether disputed or not, (ii) any liability for the payment of any amounts of the type described in (i) as a result of being (or ceasing to be) a member of an affiliated, consolidated, combined or unitary group, and (iii) all liabilities for the payment of any amounts described in (i) or (ii) as a result of being a transferee of or successor to any Person, by contract or otherwise.
“Tax Returns” means returns, reports, information statements and other documentation (including any additional or supporting material) filed or maintained, or required to be filed or maintained, in connection with the calculation, determination, assessment, claim for refund or collection of any Tax and shall include any amended returns required as a result of examination adjustments made by the Internal Revenue Service or other Tax authority.
“Term” has the meaning set forth in the Loan Purchase Agreement.
“Term Monthly Minimum Shortfall Amount” has the meaning set forth in Section 9.3.
“Transaction Documents” means this Agreement, the Loan Purchase Agreement, the Servicing Agreement, the Omnibus Agreement, the Stockholder Documents and [***].
“Total Series F Warrant Shares” has the meaning set forth in Section 2.2(a).
“Total Term Series F Warrant Shares” means the (a) Total Series F Warrant Shares, minus (b) the Pre-Closing Purchase Credit Series F Warrant Shares.
“transfer”, “transferred”, “selling”, “sale” and “sold” means any sale, assignment, pledge, transfer, hypothecation or other disposition or encumbrance.
“True-Up Amount” has the meaning set forth in Section 9.3.
“Unaudited Balance Sheet Date” has the meaning set forth in Section 7.1(l)(iii).  
“Unaudited Company Balance Sheet” has the meaning set forth in Section 7.1(l)(iii).  
“Unaudited Prosper Funding Balance Sheet” has the meaning set forth in Section 7.1(l)(iv).

7

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

“Underlying Securities” means the Series F Preferred Stock issuable upon the exercise of the Warrants, and the Common Stock issuable upon conversion of the Series F Preferred Stock.
“Warrant Agreement” has the meaning set forth in Section 3.6.
“Warrant Certificates” has the meaning set forth in the recitals to this Agreement.
“Warrant Holder” has the meaning set forth in the preamble to this Agreement.
“Warrants” has the meaning set forth in the recitals to this Agreement.
“WebBank Agreements” means (i) the Stand By Purchase Agreement, dated as of July 1, 2016, by and between WebBank and the Company, (ii) the Asset Sale Agreement, dated as of July 1, 2016, by and between WebBank and Prosper Funding, (iii) the Marketing Agreement, dated as of July 1, 2016, by and between WebBank and the Company, (iv) the Asset Servicing Agreement, dated as of July 1, 2016, by and between WebBank and the Company and (v) the Amended and Restated Deposit Control Agreement, dated as of July 28, 2016 by and between WebBank, Prosper Funding and certain other parties name therein, and (vi) each other agreement between (A) the Company or its Subsidiaries, on the one hand, and (B) WebBank, on the other hand, in the case of each of clauses (i) through (vi), as amended through the date of this Agreement.
ARTICLE II     
Original Issue of Warrants
SECTION 2.1.    Form of Warrant Certificates.  Each Warrant Certificate shall be substantially in the form attached hereto as Exhibit A and shall be dated the date on which such Warrant Certificate is signed by the Company and may have such legends and endorsements typed, stamped, printed, lithographed or engraved thereon as provided in Section 3.6 or as may be required to comply with any applicable law, including applicable state or federal securities laws, or with any applicable rule or regulation pursuant thereto.
SECTION 2.2.    Execution and Delivery of Warrant Certificates.  
(a)    Simultaneously with the execution of this Agreement, the Company shall execute and deliver to the Warrant Holder (i) Warrant Certificate No. 1 evidencing the Warrant to purchase the Pre-Closing Purchase Credit Series F Warrant Shares and (ii) Warrant Certificate No. 2 evidencing Warrants to collectively purchase an aggregate of up to 151,032,134 shares of Series F Preferred Stock (together, the “Total Series F Warrant Shares”).
(b)    Simultaneously with the execution of this Agreement, the Company shall execute and deliver to the Warrant Holder Warrant Certificate No. 3 evidencing Warrants (the “Additional Warrants”) to collectively purchase an aggregate of up to 16,858,078 shares of Series F Preferred Stock (the “Additional Total Series F Warrant Shares”).  In the event that a [***] occurs during the [***], in connection with each such occurrence, an amount of Additional Warrants shall become “Additional Available Warrants” (effective as of the date that such [***] shall become determinable, it being understood that the Company shall notify Warrant Holder of the amount of such [***] within [***] Business Days after each such date on which such [***] shall become determinable) in an amount equal to (i) the Additional Total Series F Warrant Shares, multiplied by (ii) a fraction, (A) the numerator of which shall equal the excess of $[***] over the amount of loans purchased or deemed purchased by the [***] (if any) for such calendar month with respect to such [***] during the [***], and (B) the denominator of which shall equal $[***] (the aggregate amount of shares underlying the Additional Available Warrants, the “Additional Available Total Series F Warrant Shares”); provided, that, for the avoidance of doubt, in the event of any Acceleration Event or Automatic Exercise Event during the [***], any Additional Warrants for any [***] occurring during any preceding calendar month ended prior to that date of such Acceleration Event or Automatic Exercise Event (that have not otherwise earlier become Additional Available Warrants) shall be deemed Additional Available Warrants on the date immediately prior to such Acceleration Event or Automatic Exercise Event.  In the event that any Acceleration Event occurs or is consummated, as applicable, during any calendar month during the [***], no Additional Warrants shall become Additional Available Warrants with respect to any [***] occurring during such applicable calendar month.  For the avoidance of doubt, for 

8

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

purposes of this Agreement (including this Section 2.2(b) and Section 9.4), in no event shall there be more than [***] in aggregate during the [***], and the aggregate amount of the initial principal balance of loans with respect all such [***] failures shall not exceed $[***].    
(c)    From time to time, the Company shall sign and deliver Warrant Certificates in required denominations to Persons entitled thereto in connection with any transfer or exchange of Warrants as provided in Section 8.1.  The Warrant Certificates shall be executed on behalf of the Company by any of its duly authorized officers for the purposes thereof.  In case any officer of the Company whose signature shall have been placed upon any Warrant Certificate shall cease to be such officer of the Company before issue and delivery thereof, such Warrant Certificates may, nevertheless, be issued and delivered with the same force and effect as though such Person had not ceased to be such officer of the Company.
ARTICLE III     
Exercise Price; Exercise of Warrants and Expiration of Warrants
SECTION 3.1.    Exercise Price.  Each Warrant Certificate shall entitle the Holder thereof, subject to the provisions of this Agreement, to purchase, except as provided in Article IV hereof, such number of shares of Series F Preferred Stock represented thereby at an exercise price per share of Series F Preferred Stock of $0.01 (the “Exercise Price”), subject to all adjustments made on or prior to the date of exercise thereof as provided in this Agreement.
SECTION 3.2.    Exercise of Warrants.  Any Warrants that have become exercisable in accordance with Article IX shall be exercisable, in whole or in part, from time to time on any Business Day in the manner provided for herein.  The rights of the Holders hereunder shall survive the exercise of any Warrants.  
SECTION 3.3.    Expiration of Warrants.  Any unexercised Warrants (to the extent not otherwise earlier forfeited pursuant to the terms hereof) shall finally and irrevocably expire on the tenth anniversary of the date hereof (the “Expiration Date”) and the rights of the Holders of such Warrants to purchase shares of Series F Preferred Stock shall finally and irrevocably terminate as of 5:00 p.m. Eastern Time on the Expiration Date. 
SECTION 3.4.    Method of Exercise; Payment of Exercise Price.
(a)    In order to exercise a Warrant, the Holder thereof must (i) surrender the Warrant Certificate evidencing such Warrant to the Company, with the form on the reverse of or attached to the Warrant Certificate duly executed, and (ii) pay in full the Exercise Price then in effect for the shares of Series F Preferred Stock as to which a Warrant Certificate is submitted for exercise in the manner provided in Section 3.4(b).  
(b)    The Holder of the applicable Warrant shall, within three (3) Business Days of the exercise of a Warrant, pay the Exercise Price in full to the Company.  Such payment shall be made in cash, by bank wire transfer in immediately available funds to an account designated by the Company in advance thereof.
(c)    If fewer than all of the Warrants represented by a Warrant Certificate are exercised, such Warrant Certificate shall be surrendered and a new Warrant Certificate of the same tenor and representing the number of Warrants that were not exercised shall promptly be executed and delivered to the Person or Persons as may be directed in writing by the Holder (subject to the terms hereof), and the Company shall register the new Warrant in the name of such Person or Persons.
(d)    Upon surrender of a Warrant Certificate in accordance with the foregoing provisions, the Company shall promptly issue the Underlying Securities, in book-entry form, to the Holder of such Warrant Certificate, and shall, upon the request of such Holder, deliver evidence of ownership to such Holder.  Upon payment of the Exercise Price therefor, such Holder shall be deemed to own and have all of the rights associated with the Underlying Securities.
SECTION 3.5.    Automatic Exercise. Subject to the last sentence of this Section 3.5, unless written notice is otherwise provided by a Holder to the Company prior to (a) the date of consummation of any acceleration of Warrants 

9

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

pursuant to Section 9.7 at any time during the Term or (b) the Expiration Date, all exercisable Warrants (together, each an “Automatic Exercise Event”) shall automatically be exercised immediately prior to the occurrence of such acceleration event or the Expiration Date (as the case may be) without any further action on the part of the Holders (other than payment of the Exercise Price pursuant to Section 3.4(b)) as if such Warrants had been exercised by the Holders pursuant to Section 3.4 hereof.  The Company shall take all actions and execute and deliver all documents reasonably necessary to effect the foregoing, and the Holders shall be entitled to receive, subject to compliance with Section 3.4(b) hereof, shares of Series F Preferred Stock as if the Holders had exercised the exercisable Warrants pursuant to Section 3.4 hereof as of such time.  [***]
SECTION 3.6.    Legend.   Subject to Section 10.2, each Warrant Certificate shall bear the following legend:
THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER SECURITIES LAWS OF CERTAIN STATES.  THESE SECURITIES MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED EXCEPT AS PERMITTED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS PURSUANT TO REGISTRATION OR EXEMPTION THEREROM.  THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER THAT SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION OTHERWISE COMPLIES WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS. 
THE SECURITIES REPRESENTED HEREBY ARE SUBJECT TO THE TERMS OF THAT CERTAIN WARRANT AGREEMENT OF THE ISSUER, DATED AS OF FEBRUARY 27, 2017, AND THE STOCKHOLDER DOCUMENTS (AS DEFINED IN SUCH WARRANT AGREEMENT), IN EACH CASE AS AMENDED FROM TIME TO TIME, INCLUDING RESTRICTIONS ON TRANSFERABILITY, RESALE AND LOCK UP PERIOD IN THE EVENT OF AN INITIAL PUBLIC OFFERING.  COPIES OF SUCH DOCUMENTS ARE AVAILABLE UPON A REQUEST DELIVERED TO PROSPER MARKETPLACE, INC.
ARTICLE IV     
Adjustments
SECTION 4.1.    In order to prevent dilution of the Warrants granted hereunder, to the extent specified below, the Exercise Price and the amount of Underlying Securities shall be subject to adjustment from time to time in accordance with this Article IV (in each case, after taking into consideration any prior adjustments pursuant to this Article IV).  
(a)    Adjustments for Split, Subdivision or Combination of Shares.  If the Company at any time while a Warrant remains outstanding and unexpired shall split or subdivide the Series F Preferred Stock into a different number of securities of the same class, the number of shares of Series F Preferred Stock issuable upon exercise of the Warrants immediately prior to such split or subdivision shall be proportionately increased.  If the Company at any time while a Warrant remains outstanding and unexpired shall combine the Series F Preferred Stock into a different number of securities of the same class, the number of shares of Series F Preferred Stock issuable upon exercise of the Warrants immediately prior to such combination shall be proportionately decreased.
(b)    Adjustments for Dividends in Shares or Other Securities.  If while a Warrant remains outstanding and unexpired, the holders of the Series F Preferred Stock shall have become entitled to receive, without payment therefor, other or additional stock or other securities of the Company by way of dividend, then and in each case, the Warrants shall represent the right to acquire, in addition to the number of shares of Series F Preferred Stock receivable upon exercise of the Warrants, and without payment of any additional consideration therefor, the amount of such other or additional stock or other securities of the Company that such holder would hold on the date of such exercise had it been the holder of record of the Series F Preferred Stock receivable upon exercise of the Warrants on the date hereof and had thereafter, during the period from the date hereof to and including the date of such exercise, retained such stock or securities and/or all other additional stock or securities available to it as aforesaid during said period, giving effect to all adjustments called for during such period by the provisions of this Article IV.

10

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

(c)    Adjustment for Reorganization.  If there shall occur any reorganization, recapitalization, reclassification, consolidation, or merger involving the Company, or any sale of all or substantially all of the assets or equity securities of the Company, in which any shares of Series F Preferred Stock are converted into or exchanged for securities, cash or other property (collectively, other than a transaction covered by Section 4.1(a), a “Reorganization”), then, following such Reorganization, each Holder of a Warrant Certificate shall receive upon exercise of the Warrants held thereby the kind and amount of securities, cash or other property which such Holder would have been entitled to receive pursuant to such Reorganization if such exercise had taken place immediately prior to such Reorganization.  In any such case, appropriate and equitable adjustment (as mutually determined by the Majority Holders and the Board) shall be made in the application of the provisions set forth herein with respect to the rights and interests thereafter of the Holders, to the end that the provisions set forth in this Article IV shall thereafter be applicable, as nearly as reasonably may be, in relation to any securities, cash or other property thereafter deliverable upon the exercise of the Warrants.
(d)    Further Adjustments.  In case at any time or from time to time the Company shall take any action that disproportionately impairs the value of the Warrants as compared to the value of the Underlying Securities or any other equity security of the Company, other than an action described in this Section 4.1, then, the Series F Preferred Stock shall be adjusted in such a manner and at such time as shall be appropriate and equitable in the circumstances.
SECTION 4.2.    Certificate as to Adjustments.  Upon the occurrence of each adjustment or readjustment of the Underlying Securities pursuant to Section 4.1, the Company, at its expense, shall, as promptly as reasonably practicable thereafter, compute such adjustment or readjustment in accordance with the terms hereof and furnish to the Holders a certificate setting forth such adjustment or readjustment (including the kind and amount of securities, cash or other property to be received upon the exercise of the Warrants) and showing in reasonable detail the facts upon which such adjustment or readjustment is based, and the Exercise Price that will then be effective (the “Adjustment Statement”).
SECTION 4.3.    Notices of Record Date, etc.  In the event that:
(a)    the Company shall declare any cash dividend on any of its equity securities, or
(b)    the Company shall declare any dividend upon its Series F Preferred Stock payable in additional equity securities or make any special dividend or other distribution to the holders of shares of Series F Preferred Stock, or
(c)    there shall be any Reorganization or other action described in Section 4.1(a), or
(d)    there shall be a voluntary or involuntary dissolution, liquidation or winding up of the Company or Prosper Funding;
then, in connection with such event, the Company shall give to the Holders (unless otherwise waived by the written consent of the Majority Holders):
(i)    at least [***]’ prior written notice of the date on which the books of the Company shall close or a record shall be taken for such dividend, distribution or subscription rights; and
(ii)    in the case of any such Reorganization, action described in Section 4.1(a), dissolution, liquidation or winding up, at least [***]’ prior written notice of the date when the same shall be consummated.  
Such notice in accordance with the foregoing clause (i) shall also specify, in the case of any such dividend, distribution or subscription rights, the date on which the holders of equity securities shall be entitled thereto, and such notice in accordance with the foregoing clause (ii) shall also specify the date on which the holders of equity securities shall be 

11

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

entitled to exchange their equity securities for securities or other property deliverable upon such reorganization, reclassification consolidation, merger, sale, dissolution, liquidation or winding up, as the case may be.  Each such written notice shall be given in accordance with Section 10.3 hereof.
SECTION 4.4.    No Dilution Or Impairment.  The Company shall not, by amendment of its Certificate of Incorporation or Bylaws, enter into any contract to, or through reorganization, consolidation, merger, dissolution, sale or transfer of assets or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Agreement or the Warrants.  Without limiting the generality of the foregoing, the Company shall take all such action as may be necessary or reasonably appropriate in order that the Company may validly and legally issue fully paid and non-assessable equity securities upon the exercise of the Warrants.
ARTICLE V     
Warrant Transfer Books
SECTION 5.1.    Warrant Transfer Books. 
(a)    The Company shall keep at its principal place of business a register in which the Company shall provide for the registration of Warrant Certificates and of any exchanges of Warrant Certificates as herein provided.
(b)    At the option of the Holder of a Warrant Certificate, a Warrant Certificate may be transferred or exchanged at such office and upon payment of the charges hereinafter provided.  Whenever any Warrant Certificate is so surrendered for exchange, the Company shall execute and deliver the Warrant Certificates that the Holder making the transfer or exchange is entitled to receive.
(c)    Subject to the requirements of this Section 5.1 and Section 8.1, all Warrant Certificates issued upon any registration of transfer or exchange of Warrant Certificates shall be the valid obligations of the Company, evidencing the same obligations, and any such Holder shall be entitled to the same benefits, and subject to the same obligations, of the Warrant Holder under this Agreement, as the Warrant Certificates surrendered for such registration of transfer or exchange.
(d)    Every Warrant Certificate surrendered for registration of transfer or exchange shall be duly endorsed, or be accompanied by a written instrument of transfer in form reasonably satisfactory to the Company, duly executed by the Holder thereof or his, her or its attorney duly authorized in writing.
(e)    No service or similar charge shall be owed by a Holder to the Company for any registration of transfer or exchange of Warrant Certificates; provided, however, that any Taxes that may be imposed in connection with any registration of transfer or exchange of Warrant Certificates shall be paid by the applicable Holder making such transfer or exchange of Warrant Certificates (and not for the avoidance of doubt the Company).
(f)    Subject to the requirements of this Section 5.1 and Section 8.1, any Warrant Certificate when duly endorsed in blank shall be deemed negotiable and when a Warrant Certificate shall have been so endorsed, the Holder thereof may be treated by the Company and all other Persons dealing therewith as the absolute owner thereof for any purpose and as the Person entitled to exercise the rights represented thereby.
ARTICLE VI     
Warrant Holder
SECTION 6.1.    Right of Action.  Other than actions that specifically require the consent of the Majority Holders hereunder (which rights of action may be enforced by the Majority Holders), all rights of action in respect of this Agreement are vested in the Holders, and any Holder, without the consent of any other Holder, may, on such Holder’s own behalf and for such Holder’s own benefit, enforce, and may institute and maintain any suit, action or proceeding against the Company suitable to enforce, or otherwise in respect of, such Holder’s right to exercise or 

12

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

exchange such Holder’s Warrants in the manner provided in this Agreement or any other obligation of the Company under this Agreement.
ARTICLE VII     
Representations and Warranties
SECTION 7.1.    Representations and Warranties of the Company.  The Company hereby represents and warrants to the Warrant Holder (except as (1) set forth in the corresponding section of the Company Schedule of Exceptions (it being agreed that disclosure of any item in any section of the Company Schedule of Exceptions shall be deemed disclosure with respect to any other section of this Agreement to which the relevance of such item is reasonably apparent on the face of such disclosure, without independent inquiry) or (2) [***]:
(a)    Existence, Power and Ownership.  It is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware.
(b)    Authorization.  It has all requisite corporate power and authority to enter into this Agreement and to perform its obligations under, and to consummate the transactions contemplated by, this Agreement and has by proper requisite corporate action duly authorized the execution and delivery of this Agreement.
(c)    No Conflicts.  Except as set forth in Schedule 7.1(c), none of the execution or delivery of this Agreement by the Company, the consummation of the transactions contemplated herein, or the performance of or compliance with the terms and provisions hereof by the Company will:  (i) violate or conflict with any provision of the Certificate of Incorporation or Bylaws of the Company or the applicable organizational documents of any of its Subsidiaries; (ii) violate any law, regulation (including Regulation G, T, U or X), order, writ, judgment, injunction, decree or permit applicable to the Company or any of its Subsidiaries; (iii) trigger, implicate or give rise to any right or obligation under any MFN Agreement; (iv) violate or conflict with any terms or provisions of, or cause an event of default or trigger, implicate or give rise to any right or obligation under, any agreement, instrument or contract to which the Company or any of its Subsidiaries is a party; or (v) result in or require the creation of any lien, security interest or other charge or encumbrance upon or with respect to its or its Subsidiaries’ properties or assets; except, in the case of clauses (ii), (iv) or (v), any such conflicts, violations, breaches, defaults or other occurrences that, individually or in the aggregate, would neither (A) be reasonably likely to materially and adversely affect the Company and its Subsidiaries nor (B) prevent, materially delay or materially impede the ability of the Company to consummate the transactions contemplated herein, or perform or comply with the terms and provisions hereof).
(d)    Consents.  Except as set forth in Schedule 7.1(d), no consent, approval, authorization or order of, or filing, registration or qualification with, any Governmental Entity or other Person (or group of Persons) is required in connection with the execution, delivery or performance of this Agreement or the Warrants, except for such consents, approvals, authorizations or orders the failure of which to make or obtain, would neither (A) individually or in the aggregate, be reasonably likely to materially and adversely affect the Company or its Subsidiaries nor (B) prevent, materially delay or materially impede the ability of the Company to consummate the transactions contemplated herein, or perform or comply with the terms and provisions hereof.
(e)    Enforceable Obligations.  This Agreement has been duly executed and delivered by the Company and, assuming due authorization, execution and delivery hereof by the Warrant Holder, constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, subject to laws of general applicability relating to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws relating to or affecting creditors’ rights and to general equity principles.
(f)    Capitalization.  After giving effect to the transactions contemplated hereby and by the Related Transaction Agreements, the Company’s issued and outstanding securities are as set forth on Schedule 7.1(f) hereto.  Other than as set forth in Schedule 7.1(f), as provided in the Related Transaction Agreements or pursuant to this Agreement, the Stockholder Documents or the Loan Purchase Agreement, there are no preemptive rights or other outstanding rights, options, warrants, conversion rights or agreements or commitments of any character relating to the Company’s equity securities, and the Company has not issued any debt securities, other securities, rights or obligations 

13

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

that are currently outstanding and convertible into or exchangeable or exercisable for, or giving any Person a right to subscribe for or acquire, equity securities of the Company.
(g)    Issuance of Shares. The shares of Series F Preferred Stock issuable in exchange for the Warrants, when issued pursuant to the exercise of the Warrants and upon delivery of the Exercise Price therefor, as adjusted pursuant to Article IV, will be duly authorized, validly issued, fully paid and non-assessable, free and clear of restrictions on transfer, other than applicable federal and state securities law or as set forth in this Agreement, the Stockholder Documents or the Loan Purchase Agreement.  The shares of Common Stock issuable upon conversion of such shares of Series F Preferred Stock, when issued pursuant to the terms of such Series F Preferred Stock, will be duly authorized, validly issued, fully paid and non-assessable, free and clear of restrictions on transfer, other than applicable federal and state securities laws or as set forth in this Agreement, the Stockholder Documents or the Loan Purchase Agreement.  
(h)    Subsidiaries.  Other than as set forth on Schedule 7.1(h) hereto, the Company does not have any Subsidiaries.  Except as set forth in the immediately preceding sentence, neither the Company nor any of its Subsidiaries, directly or indirectly, owns any equity or similar interest in, or any interest convertible or exchangeable or exercisable for, at any time, any equity or similar interest in any Person.  There are no outstanding preemptive rights or other outstanding rights, options, warrants, conversion rights or agreements or commitments of any character relating to the equity interests of any of the Company’s Subsidiaries, and none of the Company’s Subsidiaries have issued any debt securities, other securities, rights or obligations that are currently outstanding and convertible into or exchangeable for, or giving any Person a right to subscribe for or acquire, equity securities of any such Subsidiaries.
(i)    No Registration Requirement.  None of the Company, any of its Subsidiaries nor any of their respective Affiliates has directly, or through any agent, (i) sold, offered for sale, solicited offers to buy or otherwise negotiated in respect of, any “security” (as defined in the Securities Act) that is or would be integrated with the issuance of the Warrants or any Underlying Securities in a manner that would require the registration under the Securities Act of the Warrants or any Underlying Securities or (ii) engaged in any form of general solicitation or general advertising (as those terms are used in Regulation D under the Securities Act) in connection with the offering of the Warrants or in any manner involving a public offering within the meaning of Section 4(2) of the Securities Act.  Assuming the accuracy of the representations and warranties of the Holders in Section 7.2 hereof, it is not necessary in connection with the offer, sale and delivery of the Warrants or any Underlying Securities to the Warrant Holder in the manner contemplated herein to register any of the Warrants or any Underlying Securities under the Securities Act.
(j)    Affiliate Interests and Transactions.  Other than as set forth on Schedule 7.1(j) hereto, (i) no Related Party is a party to any contract with the Company or any of its Subsidiaries with any outstanding obligations of either such party (other than employment related Contracts or Contracts delivered to the Warrant Holder that are related to the Company’s issued and outstanding securities), (ii) since [***], no Related Party has been a party to any transaction with the Company or any of its Subsidiaries (other than employment related Contracts or Contracts related to the Company’s issued and outstanding securities)  and (iii) no Related Party has any interest in any property or assets used by the Company or any of its Subsidiaries with a value in excess of $[***].  
(k)    Indebtedness.  Other than as set forth on Schedule 7.1(k) hereto, neither the Company nor any Subsidiary of the Company has outstanding, or has the right to incur under any existing Contract, any Indebtedness.
(l)    Financial Statements.
(i)    The audited consolidated balance sheet of the Company as of December 31, 2015, and related consolidated statement of operations, statement of other comprehensive income (loss),  statement of convertible preferred stock and stockholders’ deficit and statement of cash flows for the year ended December 31, 2015 and the notes thereto, (A) were prepared in accordance with GAAP, (B) present fairly in all material respects the financial condition and the results of operations of the Company and its Subsidiaries as of the dates and for the periods indicated thereon and (C) were prepared in all material respects in accordance with the books of account and records of the Company and its Subsidiaries.

14

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

(ii)    The audited consolidated balance sheet of Prosper Funding as of December 31, 2015, and related consolidated statement of operations, statement of member’s equity and statement of cash flows for the year ended December 31, 2015 and the notes thereto, (A) were prepared in accordance with GAAP, (B) present fairly in all material respects the financial condition and the results of operations of Prosper Funding and its Subsidiaries as of the dates and for the periods indicated thereon and (C) were prepared in all material respects in accordance with the books of account and records of Prosper Funding and its Subsidiaries.
(iii)    The unaudited consolidated balance sheet of the Company (the “Unaudited Company Balance Sheet”) as of September 30, 2016 (the “Unaudited Balance Sheet Date”), and the related statement of operations, statement of other comprehensive income (loss) and statement of cash flows for the nine-month period ended on the Unaudited Balance Sheet Date, (A) were prepared in accordance with GAAP, (B) present fairly the financial condition and the results of operations of the Company and its Subsidiaries as of the dates and for the periods indicated thereon, subject to normal year-end adjustments, the absence of notes and any other adjustments described therein and (C) were prepared in all material respects in accordance with the books of account and records of the Company and its Subsidiaries.
(iv)    The unaudited consolidated balance sheet of Prosper Funding (the “Unaudited Prosper Funding Balance Sheet”) as of the Unaudited Balance Sheet Date, and the related statement of operations and statement of cash flows for the nine-month period ended on the Unaudited Balance Sheet Date, (A) were prepared in accordance with GAAP, (B) present fairly the financial condition and the results of operations of Prosper Funding and its Subsidiaries as of the dates and for the periods indicated thereon, subject to normal year-end adjustments, the absence of notes and any other adjustments described therein and (C) were prepared in all material respects in accordance with the books of account and records of Prosper Funding and its Subsidiaries.
(m)    Undisclosed Liabilities.  Other than as set forth on Schedule 7.1(m) hereto, since the Unaudited Balance Sheet Date, neither the Company nor any of its Subsidiaries has any material liability or obligation (whether known or unknown, whether asserted or unasserted, whether absolute or contingent, whether accrued or unaccrued, whether liquidated or unliquidated and whether due or to become due), except for liabilities or obligations:  (i) reflected or reserved for on the Unaudited Company Balance Sheet or the Unaudited Prosper Funding Balance Sheet (including amounts classified as accounts payable and accrued liabilities, or amounts classified as payable to investors or amounts classified as “Notes at Fair Value”, on the Unaudited Company Balance Sheet or the Unaudited Prosper Funding Balance Sheet), (ii) incurred in the ordinary course of business consistent with past practice since the date of the Unaudited Company Balance Sheet or the Unaudited Prosper Funding Balance Sheet, as applicable, to the extent such liabilities or obligations are less than $[***] in the aggregate, (iii) payables to investors primarily representing the obligation of the Company or any of its Subsidiaries to its investors related to cash held in an account for the benefit of such investors and payments-in-process received from borrowers, (iv) employee payroll obligations that are in the ordinary course of business consistent with past practice, (v) direct mail advertising costs incurred in the ordinary course of business consistent with past practice, (vi) incurred in connection with and pursuant to the transactions contemplated by this Agreement or (vii) relating to performance obligations, under contracts in accordance with the terms and conditions thereof which are not required by GAAP to be reflected on the Unaudited Company Balance Sheet or the Unaudited Prosper Funding Balance Sheet.  
(n)    Material Adverse Effect.  Other than any changes or effects resulting from (i) general economic or financial market conditions that do not have a disproportionate impact on the Company and its Subsidiaries, taken as a whole, relative to other businesses that operate in the industries in which the Company and its Subsidiaries operate,  (ii) conditions affecting the marketplace lending industry generally or otherwise generally applicable to the industries in which the Company or any of its Subsidiaries operates that do not have a disproportionate impact on the Company and its Subsidiaries, taken as a whole, relative to other businesses that operate in the industries in which the Company and its Subsidiaries operate, (iii) the entry into or compliance with this Agreement or the consummation of the transactions contemplated hereby or by the Loan Purchase Agreement or Shareholder Agreements, (iv) any omission to act or action taken by the Warrant Holder or any of its Affiliates or by the Company with the written consent of or at the written request of the Warrant Holder or (v) any national or international political event or occurrence, including acts or war or terrorism, that do not have a disproportionate impact on the Company and its Subsidiaries, taken as a whole, relative to other businesses that operate in the industries in which the Company and its Subsidiaries 

15

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

operate, since the Unaudited Balance Sheet Date there has not been any material adverse change in, or effect to, the business, results of operations, properties or financial condition of the Company and its Subsidiaries.
(o)    Compliance with Applicable Law.  
(i)    General.  Except as set forth in Schedule 7.1(o)(i), the Company and each Subsidiary of the Company is in compliance, and since [***] has complied, with all applicable laws, other than any such non-compliance that individually or in the aggregate, would neither (A) be reasonably likely to materially and adversely affect the Company or its Subsidiaries nor (B) prevent, materially delay or materially impede the ability of the Company to consummate the transactions contemplated herein, or perform or comply with the terms and provisions hereof).  Except as set forth in Schedule 7.1(o)(i), since [***], neither the Company nor any Subsidiary of the Company has received any written notice of violation of any applicable laws from any state or federal governmental entity.
(ii)    Privacy Laws.  Except as set forth in Schedule 7.1(o)(ii), the Company and each Subsidiary of the Company is in compliance, and since [***] has complied, in all material respects, with all applicable privacy laws and all applicable safeguard laws pertaining to Non-Public Personal Information, including: the Right to Financial Privacy Act (12 USC §3401 et seq.); the Financial Services Modernization Act, also known as the Gramm-Leach-Bliley Act (15 USC §6801 et seq.; implementing regulations available at 12 CFR pts. 40, 216, 332, 573 and 16 CFR pt. 313); the federal regulatory agencies' Interagency Guidelines Establishing Standards for Safeguarding Consumer Information (12 CFR pts. 30, 208, 364, 570 and 16 CFR pt. 314); the Electronic Signatures in Global and National Commerce Act (E-Sign Act) (Public Law 106-229); the Electronic Communications Privacy Act (18 USC §2701 et seq.); the Fair Credit Reporting Act (15 USC §1681 et seq.); the Family Education Rights and Privacy Act (20 USC § 1232g); the Privacy Act of 1974 (5 USC §552a); and applicable state laws.
(iii)    OFAC; Anti-Money Laundering.  To the Knowledge of the Company, the investment by the Warrant Holder in the Company and the transactions contemplated by this Agreement will not violate any anti-money laundering legislation, rule, or regulation or any regulation, rule, or order administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury, in each case applicable to the Company (“OFAC”), including Subtitle B, Chapter V of Title 31 of the U.S. Code of Federal Regulations, in each case as amended from time to time.  None of the Company or any of its Subsidiaries appears on the Specially Designated Nationals and Blocked Persons List of the OFAC as of the date of this Agreement.  U.S. Persons are not prohibited from transacting business with the Company or any of its Subsidiaries by Executive Order 13224, the USA PATRIOT Act, the Trading with the Enemy Act or the foreign asset control regulations of the United States Treasury Department, in each case as in effect on the date of this Agreement (collectively, the “AML Laws”).  None of the Company or any of its Subsidiaries is controlled by any Person (i) that appears on the Specially Designated Nationals and Blocked Persons List of OFAC or (ii) with whom a U.S. Person would be prohibited from engaging in business pursuant to the AML Laws (with ownership of 20% or more of the outstanding voting securities being presumptively a control position). None of the Company’s or any of its Subsidiaries’ principal places of business, or the majority of their respective business operations (measured by revenue), are located in any country in which a U.S. Person is prohibited from engaging in activity pursuant to the AML Laws.
(iv)    Bribery.  Since [***], neither the Company nor any of its Subsidiaries nor, to the Actual Knowledge of the Company, any of their respective directors, officers, agents or employees, or, to the Actual Knowledge of the Company, any other Person associated with or acting for or on behalf of the Company or any of its Subsidiaries, has directly or indirectly made any contribution, gift, bribe, rebate, payoff, influence payment, kickback, or other payment to any Person, private or public, regardless of form, whether in money, property, or services (A) to obtain favorable treatment in securing business, (B) to pay for favorable treatment for business secured, (C) to obtain special concessions for the benefit of the Company or any of its Subsidiaries, or for special concessions already obtained by, or benefiting, the Company or any of its Subsidiaries or (D) in violation of any anti-bribery or anti-corruption laws applicable to such Person.
(p)    Permits.  Schedule 7.1(p)(i) hereto sets forth a list of each Permit that is necessary for the operations of the Company and its Subsidiaries as currently conducted.  Except as set forth in Schedule 7.1(p)(ii) hereto, each of the Company and its Subsidiaries holds and is in compliance in all material respects with all such 

16

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

Permits and no proceeding is pending or, to the Knowledge of the Company, threatened, to revoke or limit any such Permit, except for any such failure to hold or non-compliance that individually or in the aggregate, would neither (A) be reasonably likely to materially and adversely affect the Company and its Subsidiaries nor (B) prevent, materially delay or materially impede the ability of the Company to consummate the transactions contemplated herein, or perform or comply with the terms and provisions hereof).  
(q)    Material Contracts.  Schedule 7.1(q)(i) hereto sets forth a complete and accurate list of each Material Contract.  Each Material Contract is valid, binding and enforceable against the Company or the applicable Subsidiary of the Company, and, to the Knowledge of the Company, the other parties thereto in accordance with its terms, and is enforceable in accordance with its terms (subject to laws of general applicability relating to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws relating to or affecting creditors’ rights and to general equity principles).  Except as set forth in Schedule 7.1(q)(ii), the Company or the applicable Subsidiary of the Company has performed all material obligations required to be performed by it to date under each Material Contract.  Except as set forth in Schedule 7.1(q)(ii), neither the Company nor the applicable Subsidiary of the Company nor, to the Knowledge of the Company, any other party thereto is in material breach of or material default under any Material Contract (and no event has occurred which, with due notice or lapse of time or both, would constitute such a material breach or material default).  Except as set forth in Schedule 7.1(q)(ii), there are no, and have not been any, written claims of any material breach or material default against the Company or any Subsidiary of the Company under any Material Contract.  There are no, and have not been any, written claims by the Company or any Subsidiary of the Company under any Acquisition Agreement against any other party to such Acquisition Agreement.
(r)    Employees.  Schedule 7.1(r)(i) hereto lists, for each Key Employee, his or her current annual salary, bonus in calendar year 2015 and bonus or projected bonus, as applicable, in calendar year 2016.  Except as set forth in Schedule 7.1(r)(ii), no Key Employee is (i) a party to a contract with the Company or any Subsidiary of the Company that contains a clause restricting or limiting his or her ability to compete with any Person or be employed or engaged in a line of business or in a geographic region or (ii) to the Knowledge of the Company, a party to a contract with any other Person that contains a clause restricting or limiting his or her ability to compete with any Person or be employed or engaged in a line of business or in a geographic region.  No Key Employee has given notice, written or verbal, to the Company or any of its Subsidiaries of any intention to terminate his or her employment with the Company or any Subsidiary of the Company.  The consummation of the transactions contemplated by this Agreement will not result in any increase in the amount of compensation or benefits or accelerate the vesting or timing of payment of any compensation or benefits payable by the Company or any Subsidiary of the Company to or in respect of any Key Employee.

(s)    Litigation.  Other than as set forth on Schedule 7.1(s) hereto, there are no material claims, actions, suits, proceedings, disputes or investigations pending or, to the Knowledge of the Company, threatened before any Governmental Entity involving, affecting or relating to any assets, properties or operations of the Company or its Subsidiaries or the transactions contemplated by this Agreement.

(t)    Tax.  

(i)    Except as set forth in Schedule 7.1(t)(i), the Company and each Subsidiary of the Company has filed (or joined in the filing of) when due all material Tax Returns required by applicable law to be filed with respect to the Company and each such Subsidiary, and all such Tax Returns were true, correct and complete in all material respects as of the time of such filing.
(ii)    All material Taxes relating to periods ending on or before the date hereof owed by the Company (whether or not shown on any Tax Return) or any Subsidiary of the Company, or for which the Company or any Subsidiary of the Company may be liable under Treasury Regulations § 1.1502-6 (or analogous state or foreign provisions) by virtue of having been a member of any affiliated, consolidated, combined or unitary group at any time on or prior to the date hereof, if required to have been paid, have been paid.

17

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

(iii)    Any liability of the Company or any Subsidiary of the Company for material Taxes not yet due and payable, or which are being contested in good faith, for periods through the date hereof (including the portion of any tax period that begins prior to and ends after the date hereof) are adequately reserved for in the books and records of the Company and its Subsidiaries.
(iv)    Except as set forth in Schedule 7.1(t)(iv), there is no action, suit, proceeding, investigation, audit or claim now pending against, or with respect to, the Company or any Subsidiary of the Company in respect of any material Tax or assessment.
(v)    The Company is treated as a domestic corporation for U.S. federal income tax purposes.
(u)    Brokers.  Other than as set forth on Schedule 7.1(u) hereto, all negotiations relative to this Agreement and the transactions contemplated hereby have been carried on by the Company and its Subsidiaries without the intervention of any other Person acting on their behalf in such manner as to give rise to any valid claim by any such Person against the Company or any of its Subsidiaries for a finder's fee, brokerage commission or other similar payment.
(v)    No Other Representations.  Except for the representations and warranties expressly set forth in this Article VII and the other Transaction Documents, the Company is not making any other express or implied representation or warranty.  Without limiting the foregoing, the Warrant Holder acknowledges and agrees that it is not relying on any implied warranties, or any representations other than the representations and warranties of the Company expressly set forth in this Agreement and the Transaction Documents.

SECTION 7.2.    Representations and Warranties of the Warrant Holder.  The Warrant Holder hereby represents and warrants that as of the date of this Agreement:
(a)    Existence, Power and Ownership.  It is a limited partnership duly organized, validly existing and in good standing under the laws of Delaware.
(b)    Authorization.  It has all requisite limited partnership power and authority to enter into this Agreement and to perform its obligations under, and to consummate the transactions contemplated by, this Agreement and has by proper requisite limited partnership action duly authorized the execution and delivery of this Agreement.
(c)    No Conflicts.  None of the execution or delivery of this Agreement by the Warrant Holder, the consummation of the transactions contemplated herein, or the performance of or compliance with the terms and provisions hereof by the Warrant Holder will:  (i) violate or conflict with any provision of the organizational documents of the Warrant Holder; (ii) violate any law, regulation, order, writ, judgment, injunction, decree or permit applicable to the Warrant Holder; (iii) violate or conflict with any terms or provisions of, or cause an event of default or trigger, implicate or give rise to any right or obligation under, any agreement, instrument or contract to which the Warrant Holder is a party; or (iv) result in or require the creation of any lien, security interest or other charge or encumbrance upon or with respect to its properties or assets; except, in the case of clauses (ii), (iii) or (iv), any such conflicts, violations, breaches, defaults or other occurrences that would not prevent, materially delay or materially impede the ability of the Warrant Holder to consummate the transactions contemplated herein, or perform or comply with the terms and provisions hereof.
(d)    Consents.  No consent, approval, authorization or order of, or filing, registration or qualification with, any Governmental Entity or other Person (or group of Persons) is required in connection with the execution, delivery or performance of this Agreement or the Warrants, except for such consents, approvals, authorizations or orders, the failure of which to make or obtain would not prevent, materially delay or materially impede the ability of the Warrant Holder to perform or comply with its obligations hereunder.
(e)    Enforceable Obligations.  This Agreement has been duly executed and delivered by the Warrant Holder and, assuming due authorization, execution and delivery hereof by the Company, constitutes a 

18

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

legal, valid and binding obligation of the Warrant Holder, enforceable against the Warrant Holder in accordance with its terms, subject to laws of general applicability relating to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws relating to or affecting creditors’ rights and to general equity principles.
(f)    Investment Intent.  The Warrant Holder acknowledges that (i) neither the issuance nor sale of the Warrants, nor the issuance of the Series F Preferred Stock issuable upon the exercise thereof, have been registered under the Securities Act or under any state securities laws, (ii) the Warrant Holder is acquiring the Warrants and the Series F Preferred Stock issuable upon the exercise thereof pursuant to an exemption from registration under the Securities Act for investment with no present intention to distribute any of the securities to any Person in violation of the Securities Act or any other applicable securities laws and (iii) neither the Warrants nor the Series F Preferred Stock issuable upon the exercise thereof may be sold or otherwise disposed of except in compliance with the registration requirements or exemption provisions of the Securities Act and any other applicable securities laws and the Warrant Holder further acknowledges that if an exemption from registration or qualification is available, it may be conditioned on various requirements including, but not limited to, the time and manner of sale, the holding period for the Warrants or the underlying Series F Preferred Stock, and on requirements relating to the Company which are outside of the Warrant Holder’s control, and which the Company may not be under an obligation and may not be able to satisfy.
(g)    Accredited Investor Status.  (i) The Warrant Holder is an “accredited investor” as such term is defined in Rule 501(a) promulgated under the Securities Act and whose knowledge and experience in financial and business matters are such that the Warrant Holder is capable of evaluating the merits and risks of its investment in the Warrants and the Series F Preferred Stock issuable upon the exercise thereof and (ii) (A) the Warrant Holder’s financial situation is such that it can bear the economic risk of holding the Warrants and the Series F Preferred Stock issuable upon the exercise thereof for an indefinite period of time, and (B) the Warrant Holder can afford to suffer complete loss of its investment in the Warrants or the Series F Preferred Stock issuable upon the exercise thereof.
(h)    No Other Representations.  Except for the representations and warranties expressly set forth in this Article VII and the other Transaction Documents (to the extent applicable), the Warrant Holder is not making any other express or implied representation or warranty.
ARTICLE VIII     
Covenants
SECTION 8.1.    Transfers.  Subject to any restrictions set forth herein (including Section 8,2 below) or in the Stockholder Documents, compliance with applicable laws, including Federal or state securities laws, and any other applicable approvals or consents of any Governmental Entity, the (a) Warrants, (b) Series F Preferred Stock issuable upon exercise of the Warrants and (c) Common Stock issuable upon conversion of the Series F Preferred Stock shall be freely transferable, and, except as otherwise set forth in this Agreement or the Stockholder Documents, neither the Company nor the Board shall have any notice, consent or approval right in connection therewith; provided, that (i) any such transferee of any of the preceding shall have executed and become a party to this Agreement and the Stockholder Documents (other than for avoidance of doubt the Certificate of Incorporation) and (ii) written notice of any such transfer shall be delivered by Warrant Holder and such transferee to the Company promptly.
SECTION 8.2.    Company Competitors.  Notwithstanding any other provision of this Agreement, prior to the earlier to occur of (a) a Liquidation Event or (b) any public offering of the securities of the Company, the (i) Warrants, (ii) Series F Preferred Stock issuable upon exercise of the Warrants and (iii) Common Stock issuable upon conversion of the Series F Preferred Stock shall not be transferable by any Holder to any Company Competitor. 
ARTICLE IX     
Exercisability
SECTION 9.1.    Immediate Exercisability.  Without duplication of any Warrants or Additional Warrants that may become exercisable pursuant to Section 9.2, Section 9.3 and Section 9.4, 9,830,494 shares of Series F Preferred Stock (the “Pre-Closing Purchase Credit Series F Warrant Shares”) represented by Warrant Certificate No. 1 issued as of the date hereof shall be fully exercisable as of the date hereof.  For the avoidance of doubt, no Loans of any kind 

19

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

purchased by Purchaser, any Affiliate of Purchaser or any other third party, in each case prior to the beginning of the Term, shall be counted for purposes of the exercisability of any Warrants or Additional Warrants pursuant to Section 9.2, Section 9.3 or Section 9.4 below.
SECTION 9.2.    Monthly Exercisability.  
(a)    Subject to Section 2.8 (Effect of Purchaser’s Payment of Damages) of the Loan Purchase Agreement for all purposes relating to the exercisability of Warrants hereunder and without duplication of the Warrants issued pursuant to Section 2.2(a)(i) for the Pre-Closing Purchase Credit Series F Warrant Shares or any Additional Warrants that may become exercisable during the Additional Warrant Exercisability Period with respect to a [***] (which shall be solely governed by the exercisability terms of Section 9.4 below), an amount of Warrants will become irrevocably exercisable (on a pro rata basis in proportion to the amount of Warrants held by each Holder) on a calendar monthly basis during the Term (other than for the avoidance of doubt the Additional Warrant Exercisability Period), with a portion of the Warrants becoming irrevocably exercisable as of the last calendar day of each such calendar month during the Term (other than for the avoidance of doubt the Additional Warrant Exercisability Period) (or, if there is an applicable [***] in respect of such calendar month during the Term, at the end of such applicable [***](such date, the “Monthly Closing Date”)), which amount shall equal the Total Term Series F Warrant Shares, multiplied by a fraction (which shall not exceed an amount equal to one), the numerator of which is the greater of (a) the sum of (i) the greater of (A) the initial principal amount of Eligible Loans purchased or if applicable Deemed Purchased by Purchaser in such calendar month (including any Eligible Loans purchased pursuant to [***] occurring during such calendar month in accordance with and subject to Section [***] and Section [***] of the Loan Purchase Agreement) and (B) if Prosper Funding shall have failed to present to Purchaser in such calendar month (excluding the [***] thereof) an initial principal amount of Eligible Loans equal to at least [***]% of the Monthly Purchase Amount, [***]% of the Monthly Purchase Amount for such calendar month (provided that this Section 9.2(a)(i)(B) shall only be applicable to the extent that (1) Purchaser purchased all Eligible Loans presented to it by Prosper Funding for purchase in such calendar month (the test set forth in this Section 9.2(a)(i)(B), the “Initial [***]% Test”) and (2) the Cure [***]% Test is not also otherwise applicable) and (ii) the greater of (A) the initial principal amount of Eligible Loans purchased by Purchaser pursuant to the [***] applicable to the [***], if any, in respect of such calendar month and (B) if Prosper Funding shall have failed to present, or have failed to have Deemed to have Presented, to Purchaser  in respect of such calendar month (including any [***] applicable thereto), an initial principal amount of Eligible Loans equal to or greater than the [***], the excess of the [***] over the initial principal amount of Eligible Loans presented, or Deemed Presented, to Purchaser in such calendar month (including any [***] applicable thereto) (provided that this Section 9.2(a)(ii)(B) shall only be applicable to the extent that Purchaser purchased all Eligible Loans presented to it by Prosper Funding for purchase in such calendar month and pursuant to such [***]) (the test set forth in this Section 9.2(a)(i)(B), the “Cure [***]% Test”, and together with the Initial [***]% Test, the “[***]% Test”) and (b) if Prosper Funding shall have failed to present, or Deemed to have Presented, to Purchaser for purchase in such calendar month (including during the [***] thereof) an initial principal amount of Eligible Loans equal to the lesser of (i) the Minimum Monthly Purchase Amount and, (ii) in the event Purchaser has not committed to purchase all of the Eligible Loans offered to it in respect of such calendar month as set forth in the Monthly Purchase Request through the delivery of a Monthly Purchase Acceptance in accordance with Section 2.1(b) of the Loan Purchase Agreement, the sum of (A) the Monthly Purchase Amount in respect of such Monthly Purchase Request and (B) the [***]t in respect of such Monthly Purchase Request, such lesser amount (provided that this Section 9.2(b) shall only be applicable to the extent that Purchaser actually purchased all such Eligible Loans presented by Prosper Funding in respect of such calendar month (without reference to any Eligible Loans purchased in any [***])  (the test set forth in this Section 9.2(b), the “Minimum Monthly Purchase Test”)), and the denominator of which is the Loan Purchase Obligation.  For the avoidance of doubt, (1) in the event of any termination of the Loan Purchase Agreement for any reason after the date hereof, no further Warrants shall become exercisable pursuant to this Section 9.2 (other than with respect to any Eligible Loans purchased, or Deemed Purchased, in accordance with the tests and calculations set forth in this Section 9.2 prior to the date of any such termination, or to the extent applicable, pursuant to Section 9.7(b) below) and (2) the tests and the calculations set forth in this Section 9.2 shall exclude in all respects the Additional Warrants, Additional Total Series F Warrant Shares and any Eligible Loans purchased, or Deemed Purchased, by Purchaser pursuant to Section 9.4.  
SECTION 9.3.    End-of-Term True-Up.  Subject to Section 2.8 (Effect of Purchaser’s Payment of Damages) of the Loan Purchase Agreement for all purposes relating to the exercisability of Warrants hereunder and without 

20

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

duplication of any Additional Warrants that may become exercisable during the Additional Warrant Exercisability Period with respect to a [***] (which shall be solely governed by the terms of Section 9.4 below), upon expiration of the Term (other than for the avoidance of doubt the Additional Warrant Exercisability Period, but including, for the avoidance of doubt, any [***] with respect to a period that occurs prior to the Additional Warrant Exercisability Period)) (such date, the “End-of-Term True-Up Date”), an additional amount of the Warrants, if any, equal to the True-Up Amount shall become irrevocably exercisable hereunder (provided that this Section 9.3 shall only be applicable upon expiration of the Term ([***]) only if and to the extent there have been at least [***] calendar monthly exercisability periods pursuant to Section 9.1 during such Term ([***]).  “True-Up Amount” means the amount of Warrants equal to the excess of (a) the product of (i) the Total Series F Warrant Shares issued to the Warrant Holder hereunder (i.e., all of the Warrants issued pursuant to Section 2.2(a)) and (ii) a fraction (which shall not exceed an amount equal to one), (A) the numerator of which is the initial principal amount of Eligible Loans purchased or if applicable Deemed Purchased by Purchaser during the Term (other than for the avoidance of doubt the Additional Warrant Exercisability Period) (provided, that the numerator shall include without duplication the sum of (1) the Pre-Closing Purchase Credit Amount, (2) [***], (3) [***] and (B) the denominator of which is the aggregate initial principal amount of Eligible Loans presented, or Deemed Presented, by Prosper Funding to Purchaser for purchase during the Term (other than for the avoidance of doubt the Additional Warrant Exercisability Period) or, if there is an applicable [***], in each case following the expiration of the Term (other than for the avoidance of doubt the Additional Warrant Exercisability Period, but including, for the avoidance of doubt,  [***] with respect to a period that occurs prior to the Additional Warrant Exercisability Period)), then at the end of such applicable [***] or such other period following the Term (other than for the avoidance of doubt the Additional Warrant Exercisability Period, but including, for the avoidance of doubt, any [***] with respect to a period that occurs prior to the Additional Warrant Exercisability Period)) (subject to the Maximum Monthly Purchase Amount in any month and the Loan Purchase Obligation) (provided, that in the event that Prosper Funding presented, or Deemed Presented, Eligible Loans to Purchaser for purchase in any calendar month during the Term (other than for the avoidance of doubt the Additional Warrant Exercisability Period) (including pursuant to [***] or any [***] applicable to such calendar month) that was below the lesser of (x) the Minimum Monthly Purchase Amount for such calendar month and, (y) in the event the Purchaser has not committed to purchase all of the Eligible Loans offered to it in respect of such calendar month as set forth in the Monthly Purchase Request through the delivery of a Monthly Purchase Acceptance in accordance with Section 2.1(b) of the Loan Purchase Agreement, the Monthly Purchase Amount in respect of such Monthly Purchase Request for such calendar month (such differential, the “Term Monthly Minimum Shortfall Amount”), then solely for purposes of this Section 9.3, the aggregate amount of Eligible Loans presented, or Deemed Presented, to Purchaser for purchase during the Term (other than for the avoidance of doubt the Additional Warrant Exercisability Period, but including, for the avoidance of doubt, any [***] with respect to a period that occurs prior to the Additional Warrant Exercisability Period)) (e.g., the denominator set forth in Section 9.3(a)(ii)(B)) shall be reduced by such Term Monthly Minimum Shortfall Amount)) (provided, further, the denominator set forth in Section 9.3(a)(ii)(B) shall include without duplication the Pre-Closing Purchase Credit Amount), over (b) the sum of (i) the number of Warrants that became exercisable pursuant to Section 9.2 hereof and (ii) the number of Pre-Closing Purchase Credit Series F Warrant Shares.  For the avoidance of doubt, (x) the denominator for purposes of Section 9.3(a)(ii)(B), shall not double-count any Eligible Loans to the extent that such Eligible Loans are re-presented on a second occasion by Prosper Funding pursuant to any applicable [***] (and a corresponding amount of Eligible Loans have already been counted for purposes of the denominator in Section 9.3(a)(ii)(B)) and (y) the numerator for purposes of Section 9.3(a)(ii)(A) shall not apply either of the [***]% Test or the [***] for purposes of calculating the amount of Eligible Loans purchased by Purchaser during the Term (other than for the avoidance of doubt the Additional Warrant Exercisability Period, but including, for the avoidance of doubt, any [***] with respect to a period that occurs prior to the Additional Warrant Exercisability Period)).  For purposes of Section 9.2, Section 9.3 and Section 9.4, “present”, “presented” or “presenting” (as it relates to Eligible Loans) shall have the meaning set forth in the Loan Purchase Agreement.  For the avoidance of doubt, the tests and the calculations set forth in this Section 9.3 (including the True-Up Amount) shall exclude in all respects the Additional Warrants, Additional Total Series F Warrant Shares and any Eligible Loans purchased, or Deemed Purchased, by Purchaser pursuant to Section 9.4.
SECTION 9.4.    Additional Total Series F Warrant Shares.  Subject to Section 2.8 (Effect of Purchaser’s Payment of Damages) of the Loan Purchase Agreement for all purposes relating to the exercisability of Warrants hereunder and without duplication of any Warrants that have become exercisable pursuant to Section 9.1, Section 9.2 or Section 9.3 above, an amount of Additional Available Warrants will become irrevocably exercisable as of the last calendar day of each calendar month during the [***] month period immediately following the end of the first [***] 

21

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

calendar monthly exercisability periods during the Term, disregarding any [***] and [***] (as defined in the Loan Purchase Agreement) (or, if there is an applicable [***] in respect of such [***] month period and such [***] ends at a later time, at the end of such applicable [***] (such [***]-month period, as extended for any [***], the “Additional Warrant Exercisability Period” and each such date as of the last calendar day of each such calendar month, as extended for any [***] with respect to such calendar month, the “Additional Warrant Exercisability Period Closing Date”), equal to the Additional Available Total Series F Warrant Shares, multiplied by a fraction (which shall not exceed an amount equal to one), the numerator of which is the greater of (a) the sum of (i) the greater of (A) the amount of Eligible Loans purchased by Purchaser, or if applicable Deemed Purchased by Purchaser, during such calendar month of the Additional Warrant Exercisability Period (including any Eligible Loans purchased pursuant to the [***] occurring during such calendar month in accordance with and subject to Section [***] and Section [***] of the Loan Purchase Agreement) and (B) if the Initial [***]% Test is applicable (and the Cure [***]% Test is not also otherwise applicable), [***]% of the Monthly Purchase Amount for such calendar month and (ii) the greater of (A) the initial principal amount of Eligible Loans purchased by Purchaser pursuant to the [***] applicable to the [***], if any, in respect of such calendar month and (B) if the Cure [***]% Test is applicable, the excess of the [***] over the initial principal amount of Eligible Loans presented, or Deemed Presented, to Purchaser in such calendar month (including any [***] applicable thereto) and (b) if the Minimum Monthly Purchase Test is applicable, the initial principal amount of Eligible Loans equal to the lesser of (i) the Minimum Monthly Purchase Amount and, (ii) in the event the Purchaser has not committed to purchase all of the Eligible Loans offered to it in respect of such calendar month as set forth in the Monthly Purchase Request through the delivery of a Monthly Purchase Acceptance in accordance with Section [***] of the Loan Purchase Agreement, the sum of (A) the Monthly Purchase Amount in respect of such Monthly Purchase Request and (B) the [***] in respect of such Monthly Purchase Request, and the denominator of which is the [***].     
SECTION 9.5.    Monthly, End-of-Term True-Up and Additional Warrant Exercisability Period Closing Statements.  
(a)    As promptly as practicable following each Monthly Closing Date, the End-of-Term True-up Date and each Additional Warrant Exercisability Period Closing Date, as applicable, the Company shall prepare and submit to Warrant Holder a statement setting forth, in reasonable detail, the Company’s calculation of the amount of Warrants or Additional Available Warrants, as applicable, that have become exercisable for purpose of (i) such applicable calendar month pursuant to Section 9.2 (such statement, the “Proposed Monthly Closing Statement” and such amount of Warrants, the “Monthly Exercisable Warrants”), (ii) the end-of-Term pursuant to Section 9.3 (such statement, the “Proposed End-of-Term Closing Statement” and such amount of Warrants, the “End-of-Term True-Up Exercisable Warrants”) and (iii) such applicable calendar month during the Additional Warrant Exercisability Period pursuant to Section 9.4 (such statement, the “Proposed Additional Warrant Exercisability Closing Statement” and such amount of Additional Available Warrants, the “Additional Exercisable Warrants”).  
(b)    Within [***] calendar days after the Proposed Monthly Closing Statement,  Proposed End-of-Term Closing Statement or Proposed Additional Warrant Exercisability Closing Statement, as applicable, is delivered to Warrant Holder pursuant to Section 9.5(a), Warrant Holder may deliver to the Company either (i) a written acknowledgement accepting the Company’s calculation of the amount of Monthly Exercisable Warrants, End-of-Term True-Up Exercisable Warrants or Additional Exercisable Warrants as set forth in the Proposed Monthly Closing Statement, the Proposed End-of-Term Closing Statement or Proposed Additional Warrant Exercisability Closing Statement, as applicable, or (ii) a written description setting forth in reasonable detail (to the extent then known to, and based upon the information then possessed by, Warrant Holder) the reasons for such rejection, including, if calculable at such time, the Warrant Holder’s calculation of the amount of Monthly Exercisable Warrants,  End-of-Term True-Up Exercisable Warrants or Additional Exercisable Warrants (each, an “Exercisability Adjustment Report”), as applicable.  A failure by Warrant Holder to deliver an Exercisability Adjustment Report within the required [***] day period shall constitute Warrant Holder’s acceptance of the Company’s calculation of the amount of Monthly Exercisable Warrants, End-of-Term True-Up Exercisable Warrants or Additional Exercisable Warrants as set forth in the Proposed Monthly Closing Statement, Proposed End-of-Term Closing Statement or Proposed Additional Warrant Exercisability Closing Statement, as applicable.  During such [***] day period, Warrant Holder shall have the right to request, and receive with reasonable promptness, copies of the loan records and work papers used or generated by the Company in connection with the preparation of the Proposed Monthly Closing Statement, Proposed End-of-Term Closing Statement or Proposed Additional Warrant Exercisability Closing Statement, as applicable.

22

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

(c)    During a period of [***] days following the receipt by the Company of the Exercisability Adjustment Report, (i) the Company shall have the right to request copies of the work papers generated by Warrant Holder in connection with the preparation of the Exercisability Adjustment Report to the extent not subject to attorney-client privilege and (ii) Warrant Holder and the Company shall negotiate in good faith to resolve any difference they may have with respect to the matters raised in the Exercisability Adjustment Report.
SECTION 9.6.    Forfeiture.  At the end of the Term, after taking into account the Warrants that may become irrevocably exercisable pursuant to Section 9.3 or Section 9.4, any Warrants or Additional Warrants (or respective portion thereof) that have not become exercisable in full shall be finally and irrevocably forfeited.    For the avoidance of doubt, any Additional Warrants that have not become Additional Available Warrants on or before the end of the Term shall be finally and irrevocably forfeited pursuant to this Section 9.6.
SECTION 9.7.    Acceleration Upon Certain Events.  
(a)    Upon a Liquidation Event at any time prior to the end of the Term, all Warrants (other than Additional Warrants that are not Additional Available Warrants), whether exercisable or unexercisable, shall, immediately prior to such Liquidation Event, become fully exercisable without any further action on the part of any Holder; provided that, for the avoidance of doubt, in the event of any termination of the Loan Purchase Agreement for any reason other than an LPA Warrant Acceleration Event (each, a “Non-Acceleration LPA Termination Event”), then any Liquidation Event occurring subsequent to such Non-Acceleration LPA Termination Event (but prior to the end of the Term) shall not cause any Warrants or Additional Warrants to accelerate and become fully exercisable in accordance with the foregoing. 
(b)    Upon an LPA Warrant Acceleration Event or a [***] at any time prior to the end of the Term, all Warrants (other than Additional Warrants that are not Additional Available Warrants), whether exercisable or unexercisable, shall immediately become fully exercisable without any further action on the part of any Holder; provided that, for the avoidance of doubt, in the event of any termination of the Loan Purchase Agreement for any reason other than an LPA Warrant Acceleration Event or the Servicing Agreement (as defined in the Loan Purchase Agreement) for any reason other than [***], then any LPA Warrant Acceleration Event or [***] occurring subsequent to such Non-Acceleration LPA Termination Event shall not cause any Warrants or Additional Available Warrants to accelerate and become fully exercisable in accordance with the foregoing.
ARTICLE X     
Miscellaneous
SECTION 10.1.    Tax Matters. 
(a)    The Company shall pay all transfer, stamp and other similar taxes that may be imposed in respect of the issuance or delivery of the Warrants or in respect of the issuance or delivery by the Company of any Series F Preferred Stock upon exercise of the Warrants or the issuance or delivery by the Company of any Common Stock upon conversion of the Series F Preferred Stock.
(b)    The Company shall not cause or permit its classification as a domestic corporation for U.S. federal income tax purposes to change without the prior written consent of Warrant Holder (and, if [***] or any other entity in which [***] owns a direct or indirect interest holds Warrants or Underlying Securities directly, the prior written consent of [***]).
(c)    [***]
(d)    [***]
SECTION 10.2.    Removal of Legends.  In the event (a) the Warrants or Underlying Securities are registered under the Securities Act or (b) the Company is presented with an opinion of counsel reasonably satisfactory to the Company that transfers of Warrants or Underlying Securities do not require registration under the Securities Act or any 

23

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

other applicable federal or state securities laws, the Company shall direct its transfer agent, and the transfer agent shall, upon surrender by a Holder of its certificates evidencing such Warrants or Underlying Securities to the transfer agent, exchange such certificates for certificates without the first paragraph of the legend referred to in Section 3.6.
SECTION 10.3.    Notices.  Any notices or other communications hereunder shall be in writing and shall be deemed given if delivered personally or by a nationally recognized overnight courier service, such as Federal Express, or mailed by registered or certified mail (return receipt requested and first-class postage prepaid) or sent via e-mail to the parties hereto at the following address (or at such other address for a party as shall be specified by like notice, provided that a notice of change in address shall not be deemed to have been given until received by the addressee):

If to the Company:    Prosper Marketplace, Inc. 
221 Main Street #300
San Francisco, CA 94105
Attn: General Counsel
Telephone No.: [***]
Email:  [***] 

With a copy to:    Orrick, Herrington & Sutcliffe LLP
405 Howard Street
(which shall not    San Francisco, CA 94105
 
     constitute notice     Attn:  [***]
 
     to the Company)    Telephone No.: [***]
Email: [***]

If to the Holders:        c/o [***]
[***]
Attention:  [***]
E-mail:  [***]

and to such additional addresses as provided by any Holder

With a copy to:    Willkie Farr & Gallagher LLP
787 Seventh Avenue
(which shall not    New York, NY 10019
 
     constitute notice     Attn:  [***] 
 
     to any Holder)    Telephone No.: [***]
Email: [***]

or such other address as shall have been furnished to the party giving or making such notice, demand or delivery.
SECTION 10.4.    Applicable Law; Jurisdiction.  
(a)    Applicable Law.  The validity of this Agreement and the construction, interpretation, and enforcement hereof, and the rights of the parties hereto with respect to all matters arising hereunder or related hereto shall be determined under, governed by, and construed in accordance with the internal laws of the State of New York (excluding and without regard for the conflicts of laws principles thereof).  
(b)    Jurisdiction.  The Company and each Holder hereby expressly and irrevocably submits to the exclusive jurisdiction of the United States District Court for the Southern District of New York and the 

24

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

jurisdiction of any other competent court of the State, City and County of New York, and with respect to each, any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement or for recognition or enforcement of any judgment, and each party hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding shall be heard and determined in such New York state court or, to the extent permitted by law, in such Federal court.  The Company and each Holder waives, to the extent not prohibited by applicable law, any right it may have to assert the doctrine of forum non conveniens or to object to venue to the extent any proceeding is brought in accordance with this Section 10.4(b).  The Company and each Holder agrees that process in any proceeding referred to in this Section 10.4(b) may be served on any party hereto anywhere in the world by notice given in accordance with Section 10.3.
SECTION 10.5.    Persons Benefiting.  This Agreement shall be binding upon and inure to the benefit of the Company and the Warrant Holder, and their successors, permitted assigns, beneficiaries, executors and administrators, and the Holders from time to time.  Except as otherwise expressly provided herein, nothing in this Agreement is intended or shall be construed to confer upon any Person, other than the Company and the Holders, any right, remedy or claim under or by reason of this Agreement or any part hereof.  
SECTION 10.6.    Counterparts.  This Agreement may be executed in any number of counterparts, including by means of electronic mail transmission, each of which shall be deemed an original, but all of which together constitute one and the same instrument.
SECTION 10.7.    Amendments.  Neither this Agreement nor any provisions hereof shall be waived, modified, changed, discharged or terminated other than in a writing signed by the Company and the Majority Holders.
SECTION 10.8.    Headings.  The headings of the several Articles and Sections of this Agreement are inserted for convenience and shall not control or affect the meaning or construction of any of the provisions hereof.
SECTION 10.9.    Entire Agreement.  This Agreement and the other Transaction Documents constitute the entire agreement among the Persons party hereto and thereto with respect to the subject matter hereof, and supersede all prior agreements and understandings, both written and oral, among such Persons with respect to the subject matter hereof.  Each party hereby agrees that the Holders shall be express third-party beneficiaries of this Agreement and shall have the right to enforce the rights of the Warrant Holder under this Agreement and any other right ascribed to a Holder under this Agreement, including, without limitation, the right to seek remedies against the Company for a breach by the Company of any of its covenants or representations or warranties hereunder.  Except as otherwise expressly provided in the immediately preceding sentence, nothing expressed or referred to in this Agreement shall be construed to give any Person other than the parties to this Agreement any legal or equitable right, remedy or claim under or with respect to this Agreement or any provision of this Agreement.  In the event of any conflict, discrepancy or ambiguity between the terms and conditions contained in this Agreement and any schedules or attachments hereto, the terms and conditions contained in this Agreement shall take precedence.   
SECTION 10.10.    Severability.  The provisions of this Agreement and the Warrants are severable, and if any clause or provision shall be held invalid, illegal or unenforceable in whole or in part, then such invalidity or unenforceability shall affect only such clause or provision, or part thereof, and shall not in any manner affect any other clause or provision of this Agreement or the Warrants.
SECTION 10.11.    Survival of Warranties. The representations and warranties of the Company and the Warrant Holder contained in or made pursuant to this Agreement and the Warrants shall survive the execution and delivery of this Agreement until the expiration of the Term.
[SIGNATURE PAGE FOLLOWS]

25

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed, as of the day and year first above written.
PF WARRANTCO HOLDINGS, LP
By: [___], its General Partner
By:  ______________________________________
Name:    
Title:    
PROSPER MARKETPLACE, INC.
By:  ______________________________________
Name:    
Title:    
[NRZ]
By:  ______________________________________
Name:    
Title:    

 

[Signature Page to Warrant Agreement]

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

EXHIBIT A
FORM OF FACE OF WARRANT CERTIFICATE
THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER SECURITIES LAWS OF CERTAIN STATES.  THESE SECURITIES MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED EXCEPT AS PERMITTED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS PURSUANT TO REGISTRATION OR EXEMPTION THEREROM.  THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER THAT SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION OTHERWISE COMPLIES WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS. 
THE SECURITIES REPRESENTED HEREBY ARE SUBJECT TO THE TERMS OF THAT CERTAIN WARRANT AGREEMENT OF THE ISSUER, DATED AS OF [FEBRUARY __], 2017, AND THE STOCKHOLDER DOCUMENTS (AS DEFINED IN SUCH WARRANT AGREEMENT), IN EACH CASE AS AMENDED FROM TIME TO TIME, INCLUDING RESTRICTIONS ON TRANSFERABILITY, RESALE AND LOCK UP PERIOD IN THE EVENT OF AN INITIAL PUBLIC OFFERING.  COPIES OF SUCH DOCUMENTS ARE AVAILABLE UPON A REQUEST DELIVERED TO PROSPER MARKETPLACE, INC.
WARRANT TO PURCHASE SHARES OF SERIES F PREFERRED STOCK OF PROSPER MARKETPLACE, INC.
No.    Certificate for    Warrants
This certifies that [INSERT NAME OF HOLDER], or registered assigns, is the registered holder of the number of Warrants, set forth above.  Each Warrant entitles the holder thereof (a “Holder”), subject to the provisions contained herein and in the Warrant Agreement (as defined below), to purchase from Prosper Marketplace, Inc., a Delaware corporation (the “Company”), one share of Series F Convertible Preferred Stock, par value $0.01 per share, of the Company (“Series F Preferred Stock”), subject to adjustment as provided herein and in the Warrant Agreement, at the exercise price of $0.01 per share of Series F Preferred Stock (the “Exercise Price”), subject to adjustment as provided herein and in the Warrant Agreement.
This Warrant Certificate is issued under and in accordance with the Warrant Agreement, dated as of February 27, 2017 (as amended from time to time, the “Warrant Agreement”), by and between the Company and the “Warrant Holder” identified therein, and is subject to the terms and provisions contained in the Warrant Agreement, including with respect to exercisability, to all of which terms and provisions the Holder of this Warrant Certificate consents by acceptance hereof.  The Warrant Agreement is hereby incorporated herein by reference and made a part hereof.  Reference is hereby made to the Warrant Agreement for a full statement of the respective rights, limitations of rights, duties, obligations and immunities thereunder of the Company and the Holders of the Warrants.  Capitalized terms used but not otherwise defined herein shall have the meaning ascribed to such terms in the Warrant Agreement.
As provided in the Warrant Agreement and subject to the terms and conditions set forth therein, any Warrants that have become exercisable in accordance with Article IX of the Warrant Agreement shall be exercisable, in whole or in part, from time to time on any Business Day.  The rights of the Holders under the Warrant Agreement shall survive the exercise of the Warrants.
The Exercise Price and the number of shares of Series F Preferred Stock issuable upon the exercise of each Warrant are subject to adjustment as provided in the Warrant Agreement.
All shares of Series F Preferred Stock issuable by the Company upon the exercise of the Warrants shall, upon such issue, be duly and validly issued and fully paid and non-assessable.

A-1

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

In order to exercise a Warrant the Holder hereof must surrender this Warrant Certificate at the principal place of business of the Company, with the Exercise Subscription Form on the reverse hereof duly executed by the Holder hereof, with signature guaranteed as therein specified, together within at least three (3) Business Days of the exercise of any of the Warrants represented by this Warrant Certificate required payment in full of the Exercise Price then in effect for the Underlying Securities as to which the Warrant(s) represented by this Warrant Certificate is (are) submitted for exercise, all subject to the terms and conditions hereof and of the Warrant Agreement.  Any such payment of the Exercise Price shall be by bank wire transfer in immediately available funds to an account designated by the Company in advance thereof.  Upon the receipt of the Exercise Subscription Form, the Company shall, at its own expense, use its best efforts to seek the approval of any Governmental Entity to the extent the issuance of equity securities under the Warrant(s) being exercised require(s) the consent of the any Governmental Entity, and shall notify the Holder exercising such Warrant(s) of the approval of such Governmental Entity of such exercise.
The Company shall pay all transfer, stamp and other similar taxes that may be imposed in respect of the issuance or delivery of the Warrants or in respect of the issuance or delivery by the Company of any securities upon exercise of the Warrants. 
No service or similar charge shall be owed by a Holder to the Company for any registration of transfer or exchange of Warrant Certificates; provided, however, that any Taxes, including all transfer, stamp and other similar taxes, that may be imposed in connection with any registration of transfer or exchange of Warrant Certificates shall be paid by the applicable Holder making such transfer or exchange of Warrant Certificates (and not for the avoidance of doubt the Company).
Each taker and Holder of this Warrant Certificate by taking or holding the same, consents and agrees that this Warrant Certificate when duly endorsed in blank shall be deemed negotiable and that when this Warrant Certificate shall have been so endorsed, the Holder hereof may be treated by the Company and all other Persons dealing with this Warrant Certificate as the absolute owner hereof for any purpose and as the Person entitled to exercise the rights represented hereby.
The validity of this Warrant Certificate and the construction, interpretation, and enforcement hereof, and the rights of the parties hereto with respect to all matters arising hereunder or related hereto shall be determined under, governed by, and construed in accordance with the internal laws of the State of New York (excluding and without regard for the conflicts of laws principles thereof).  
The Company and each Holder hereby expressly and irrevocably submits to the exclusive jurisdiction of the United States District Court for the Southern District of New York and the jurisdiction of any other competent court of the State, City and County of New York, and with respect to each, any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement or for recognition or enforcement of any judgment, and each party hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding shall be heard and determined in such New York state court or, to the extent permitted by law, in such Federal court.  The Company and each Holder waives, to the extent permitted under applicable law, any right it may have to assert the doctrine of forum non conveniens or to object to venue to the extent any proceedings is brought in accordance with this paragraph.  The Company and each Holder agrees that process in any proceeding referred to in this paragraph may be served on any party hereto anywhere in the world by notice given in accordance with Section 10.3 of the Warrant Agreement.
This Warrant Certificate and the Warrant Agreement are subject to amendment as provided in the Warrant Agreement.
Copies of the Warrant Agreement are on file at the principal place of business of the Company and may be obtained by writing to the Company at the following address:
______________
______________
Attn:  ______________

A-2

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

Facsimile No.:  ______________
Phone: ______________
Email: _______________

Dated:  [_____]
PROSPER MARKETPLACE, INC.
By:  ______________________________________
Name:    
Title:    

FORM OF REVERSE OF WARRANT CERTIFICATE
EXERCISE SUBSCRIPTION FORM
(To be executed only upon exercise of Warrant)
To:  Prosper Marketplace, Inc. (the “Company”)
The undersigned irrevocably exercises [________] of the Warrants for the purchase of one (subject to adjustment in accordance with the Warrant Agreement) share of Series F Convertible Preferred Stock, par value $0.01 of the Company, for each Warrant hereby exercised represented by the Warrant Certificate.  
Within three (3) Business Days, the undersigned will make payment of $ __________ (such payment being by bank wire transfer in immediately available funds), all at the Exercise Price and on the terms and conditions specified in the Warrant Certificate and the Warrant Agreement therein referred to.  
The undersigned irrevocably surrenders this Warrant Certificate and all right, title and interest therein to the Company and directs that the Series F Preferred Stock deliverable upon the exercise of such Warrants be registered in the name and address specified below.
Date:
____________________________________________
 
(Signature of Owner)(1)
____________________________________________
 
(Street Address)
____________________________________________
 
(City)    (State)    (Zip Code)
Signature Guaranteed by:
Securities to be issued to:
Please insert social security or identifying number:
Name:
Street Address:
City, State and Zip Code:
________________________________________

(1) The signature must correspond with the name as written upon the face of the within Warrant Certificate in every particular, without alteration or any change whatsoever, and must be guaranteed by a financial institution.

ANNEX A
Knowledge

[***]
 

A-3

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

ANNEX B
Company Competitors

[***]

B-1

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

ANNEX C
LPA Warrant Acceleration Event
In the event that the Loan Purchase Agreement is terminated as a result of any of the below events, each of which would constitute a “Termination Event” (as defined in the Loan Purchase Agreement), such event shall constitute an “LPA Warrant Acceleration Event” for purposes of Section 9.7(b) of the Agreement.  Capitalized terms not otherwise defined shall have the respective meanings set forth in the Loan Purchase Agreement.

C-1

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

	
	
	1.  Subject to Article 7 of the Loan Purchase Agreement. a breach of a representation or warranty included in Section 4.2 of the Loan Purchase Agreement has occurred as of the applicable Purchase Date and Seller has failed to repurchase the applicable Loan or Loans in each case within [***] of a written demand for repurchase from [***] being received by Seller, which demand shall specify in reasonable detail the basis for such repurchase; provided that in the event of a [***], any such proposed failure shall not constitute a Termination Event under the Loan Purchase Agreement, or an LPA Warrant Acceleration Event for purposes of Section 9.7 of the Agreement, until any such dispute in connection with the repurchase obligation is first resolved [***].

	2.  (a) Seller shall fail to perform or observe any obligation, covenant or agreement contained in the Loan Purchase Agreement (other than those covenants set forth below under Section [***]) and Section [***] of the Loan Purchase Agreement) that (i) materially adversely affects, or would reasonably be expected to adversely affect, Seller’s ability to fulfill its obligations in accordance with the Loan Purchase Agreement or (ii) adversely affects, or would reasonably be expected to adversely affect, the collectability, enforceability or validity of [***] and (b) such failure, if capable of being cured, is not cured within [***] days of the earlier of the date on which (1) written notice of such failure is received by Seller or (2) Seller has Actual Knowledge that such failure affects a Loan purchased by Purchaser under the Loan Purchase Agreement.

	3.  The Termination Event set forth in Section 8.1(c)(iii) of the Loan Purchase Agreement.

	4.  The Termination Event set forth in Section 8.1(c)(v) of the Loan Purchase Agreement.

	5.  The Termination Event set forth in Section 8.1(c)(vi) of the Loan Purchase Agreement.
6.  (a) Any representation or warranty of Seller contained in the Loan Purchase Agreement (other than representations the breach of which requires a repurchase of a Loan thereunder) was false or misleading when made and such misstatement (i) materially adversely affects, or would reasonably be expected to material adversely affect, Seller’s ability to perform its obligations in accordance with the Loan Purchase Agreement or (ii) adversely affects, or would reasonably be expected to adversely affect,  the collectability, enforceability or validity of [***] and (b) such misstatement, if capable of being cured, is not cured within [***] days of the earlier of the date on which (1) written notice of such misstatement is received by Seller or (2) Seller has Actual Knowledge that such misstatement affects a Loan purchased by Purchaser under the Loan Purchase Agreement.  For the avoidance of doubt, any repurchase by Seller of any Loans with respect to which there is, or was, a breach of any representation or warranty included in Section 4.2 of the Loan Purchase Agreement shall be deemed to cure any such misstatement for purposes of the foregoing.

	7.  (a) Seller (i) [***] or (ii) becomes subject to any regulatory action that is reasonably likely to restrict or prohibit Seller from acquiring or originating new Eligible Loans or performing its obligations under the Loan Purchase Agreement that, in the case of both (i) and (ii) above, (A) materially adversely affects, or would reasonably be expected to materially adversely affect, Seller’s ability to perform its obligations in accordance with the Loan Purchase Agreement or (B) adversely affects, or would reasonably be expected to adversely affect,  the collectability, enforceability or validity [***] and (b) such occurrence, if capable of being cured, is not cured within [***] days of the earlier of the date on which (1) written notice of such occurrence is received by Seller or (2) Seller has Actual Knowledge that such occurrence affects a Loan purchased by Purchaser under the Loan Purchase Agreement.

	8.  The Termination Event set forth in Section 8.1(c)(xi) of the Loan Purchase Agreement.
9.  The occurrence of a [***], which shall mean that as of the end of any Due Period (as defined in the Loan Purchase Agreement), the [***] (as defined in the [***]) exceeds (x) during the period from the Closing Date of the Loan Purchase Agreement through January 31, 2018, [***]% or (y) thereafter, [***]%. 

	 

	 

C-2

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

ANNEX D
Related Parties
1.    [***]

D-1

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

D-2

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

ANNEX E
[***]

E-1

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

SCHEDULE OF EXCEPTIONS
Capitalized terms used but not defined in this Schedule of Exceptions shall have the respective meanings ascribed to such terms in the Warrant Agreement (the “Agreement”), dated as of February 27, 2017, by and between Prosper Marketplace, Inc., a Delaware corporation (the “Company”), and PF WarrantCo Holdings, LP, a Delaware limited partnership (the “Warrant Holder”).
This Schedule of Exceptions is qualified in its entirety by reference to the Agreement.  Any information disclosed in this Schedule of Exceptions, or any references to dollar amounts, shall not be deemed to be an acknowledgment or representation that such items are material, to establish any standard of materiality or to define further the meaning of such terms for purposes of the Agreement.  
This Schedule of Exceptions has been arranged, for purposes of convenience, as separately titled Schedules corresponding to certain sections of the Agreement; however, any information disclosed in any Schedule will constitute a disclosure for purposes of every other section of this Schedule of Exceptions notwithstanding the lack of specific cross-reference thereto to the extent the relevance of such disclosure or response to such other Schedule is reasonably apparent on the face of such information that such information is applicable to such other Schedule or subsection, in each case without independent inquiry.  In no event shall the inclusion of any matter in this Schedule of Exceptions be deemed or interpreted to broaden the representations, warranties, covenants or agreements of the Company contained in the Agreement.  Except as required to be set forth in this Schedule of Exceptions pursuant to the terms of the Agreement, no item set forth herein shall constitute, or be deemed to constitute, an admission or indication by the Company that such item meets any or all of the criteria set forth in the Agreement for inclusion  (including as an exception to any representation or warranty) in this Schedule of Exceptions. The information contained in this Schedule of Exceptions is disclosed solely for the purposes of the Agreement, and no information contained herein shall be deemed to be an admission by the Company to any third party of any matter whatsoever, including of any violation of law or breach of any agreement.  No reference in this Schedule of Exceptions relating to any possible breach, non-compliance with or violation of any agreement, law or regulation shall be construed as an admission or indication that any such breach or violation exists or has actually occurred.  Nothing in this Schedule of Exceptions shall constitute an admission of any liability or obligation of the Company or any other party to any third party or shall confer or give to any third party any remedy, claim, liability, reimbursement, cause of action or other right. 
This Schedule of Exceptions includes brief descriptions or summaries of certain agreements, copies of which have been made available in the Company’s electronic data room prepared for purposes of the transactions contemplated by the Transaction Documents or otherwise upon reasonable request made on or prior to the date hereof.  Such descriptions do not purport to be comprehensive, and are qualified in their entirety by reference to the text of the agreements described.

* * * *

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

Schedule 7.1(c) No Conflicts

(ii) 
		
	1.
	See Schedule 7.1(d), Item 2.    

		
	2.
	Pursuant to Section 2(a)(i) of the Amended and Restated Voting Agreement dated February 27, 2017 amongst the Company and the persons listed on Exhibit A and Exhibit B thereto, an Affiliate of the Warrant Holder shall have the right to appoint one (1) member to the Board upon consummation of the Transaction (the “Consortium Director”).  Set forth below are applicable state regulatory notice requirements in connection with any such appointment of the Consortium Director.

[***][Two pages redacted]

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

Schedule 7.1(d) Consents.

		
	1.
	In connection with the transactions contemplated by the Transaction Documents (the “Transaction”), the Company is required to file a Form 8-K under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), within four (4) business days of the date of the consummation of the Transaction.  In addition, pursuant to Section 2(a)(i) of the Amended and Restated Voting Agreement dated November 1, 2016 amongst the Company and the persons listed on Exhibit A and Exhibit B thereto, the Company is required to file a Form 8-K under the Exchange Act within four (4) business days of an Affiliate of the Warrant Holder appointing one (1) member to the Board upon consummation of the Transaction (the “Consortium Director”).

		
	2.
	[***] 

The Company may file a Form D (Notice of Exempt Offering of Securities) with respect to the issuance of the Warrants to the Warrant Holder pursuant to certain potentially available exemptions from registration of such securities under the Securities Act.

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

Schedule 7.1(f) Capitalization.

(i)    Attached as Exhibit 1 to this Schedule 7.1(f)(i) is the Company’s issued and outstanding securities after giving effect to the issuance of the Warrants under the Agreement.
(ii)
		
	1.
	The following are outstanding equity commitments made under offer letters to employees of the Company or its Subsidiaries or in connection with an employee’s promotion. These options have not yet been approved by the Compensation Committee of the Board.  All of the below options are subject to the Terms and Conditions of the Company’s 2015 Equity Incentive Plan (the “Plan”), including the standard form option agreement for US employees.

	
							
	Last Name
	First Name
	Job Title
	Stock Options*
	Vesting Start Date
	Vesting Schedule
	Reason

[***][Six pages redacted]

		
	2.
	The following are outstanding equity commitments made under offer letters.  These Restricted Stock Unit (“RSU”) Awards have not yet been approved by the Compensation Committee of the Board.  All of the below RSU Awards are subject to the Terms and Conditions of the Plan, including the standard form of RSU grant notice and RSU agreement for U.S. Employees.

	
						
	Last Name
	First Name
	Job Title
	RSUs
	Vesting Start Date
	Vesting Schedule

	

[***]

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

Schedule 7.1(h) Subsidiaries

		
	1.
	Prosper Funding – Subsidiary of the Company

		
	2.
	Prosper Asset Holdings LLC – Subsidiary of Prosper Funding

		
	3.
	Prosper Capital Management LLC – Subsidiary of the Company

		
	4.
	Prosper Healthcare Lending LLC – Subsidiary of the Company

		
	5.
	BillGuard, Inc. – Subsidiary of the Company 

		
	6.
	BillGuard Technologies Limited – Subsidiary of BillGuard, Inc. 

		
	7.
	Prosper Capital Consumer Credit Fund LP

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

Schedule 7.1(j) Affiliate Interests and Transactions.

		
	1.
	Prosper Marketplace, Inc. Series A Preferred Stock Purchase Agreement, dated January 14, 2013.

		
	2.
	Management Rights Agreement by and between the Company and SC US GF V Holdings, Ltd., dated January 15, 2013.

		
	3.
	Prosper Marketplace, Inc. Series B Preferred Stock Purchase Agreement, dated September 23, 2013.

		
	4.
	Prosper Marketplace, Inc. Series C Preferred Stock Purchase Agreement, dated May 1, 2014.

		
	5.
	Prosper Marketplace, Inc. Series D Preferred Stock Purchase Agreement, dated April 7, 2015.

		
	6.
	Prosper Marketplace, Inc. Amended and Restated Investors’ Rights Agreement, dated April 7, 2015.

		
	7.
	Prosper Marketplace, Inc. Amended and Restated Voting Agreement, dated April 7, 2015.

		
	8.
	Prosper Marketplace, Inc. Amended and Restated Right of First Refusal and Co-Sale Agreement, dated April 7, 2015.

		
	9.
	[***]

		
	10.
	Indemnification Agreement between the Company and Aaron Vermut, dated as of May 31, 2013.

		
	11.
	Indemnification Agreement between the Company and Stephan Vermut, dated as of January 22, 2013.

		
	12.
	Indemnification Agreement between the Company and Christopher M. Bishko, dated as of May 14, 2013.

		
	13.
	Indemnification Agreement between the Company and Rajeev V. Date, dated as of July 18, 2013.

		
	14.
	Indemnification Agreement between the Company and Patrick W. Grady, dated as of January 15, 2013.

		
	15.
	Indemnification Agreement between the Company and David R. Golob, dated as of May 15, 2014.

		
	16.
	Indemnification Agreement between the Company and Nigel W. Morris, dated as of June 9, 2014.

		
	17.
	Indemnification Agreement between the Company and Ronald Suber, dated as of January 22, 2013.

		
	18.
	Indemnification Agreement between the Company and Sachin D. Adarkar, dated as of March 1, 2010.

		
	19.
	Indemnification Agreement between the Company and David Kimball, dated as of March 18, 2016.

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

		
	20.
	Indemnification Agreement between the Company and Kunal Kaul, dated as of February 12, 2016 and effective as of December 28, 2015.

		
	21.
	Amended and Restated Services and Indemnity Agreement among the Company, Prosper Funding, David V. DeAngelis, Bernard J. Angelo and Global Securitization Services, LLC, dated as of May 30, 2013.

		
	22.
	Stock Option Agreements and/or Restricted Stock Unit Award Agreements by and between the Company and members of the Board and the Company’s officers.

		
	23.
	Certain Related Parties have registered as retail investors on the Company’s website, and have entered into agreements with the Company (including Investor Registration Agreements) in connection with that registration.  Any borrower payment dependent notes issued by the Company or any its Subsidiaries and purchased by such Related Parties were obtained on arms-length terms on the same terms and conditions as those obtained by other retail investors.

		
	24.
	Certain Related Parties have registered as borrowers on the Company’s website, and have entered into agreements with the Company (including Borrower Registration Agreements) on arms-length terms in connection with that registration.  

		
	25.
	[***] 

		
	26.
	[***]

		
	27.
	[***]

		
	28.
	[***]

		
	29.
	Series A Preferred Stock Transfer Agreement among Target Chrome Ltd., Ronald Suber, Aaron Vermut, Merlin Acorn L.P. and the Company, dated April 30, 2015.

		
	30.
	Series A Preferred Stock Transfer Agreement among Target Titan Ltd., Ronald Suber, Aaron Vermut, Merlin Acorn L.P. and the Company, dated April 30, 2015.

		
	31.
	Series A Preferred Stock Transfer Agreement among Target Ventures Partners FC Ltd., Ronald Suber, Aaron Vermut, Merlin Acorn L.P., and the Company, dated April 30, 2015.

		
	32.
	Series A Preferred Stock Transfer Agreement among Bindley Capital Investors, LLC, Ronald Suber, Aaron Vermut, Merlin Acorn L.P., and the Company, dated May 13, 2015.

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

		
	33.
	Series A Preferred Stock Transfer Agreement among Thomas J. Salentine, Ronald Suber, Aaron Vermut, Merlin Acorn L.P., and the Company, dated May 13, 2015.

		
	34.
	Series A Preferred Stock Transfer Agreement among Kingfisher Equity Partners, LP, Ronald Suber, Aaron Vermut, Merlin Acorn L.P., and the Company, dated May 15, 2015.

		
	35.
	Stock Repurchase Agreement by and between the Company and Sachin Adarkar, dated June 12, 2015.

		
	36.
	Stock Repurchase Agreement by and between the Company and Bradley Pennington, dated June 12, 2015.

		
	37.
	Stock Repurchase Agreement by and between the Company and RSIP 2014 Gift Trust, dated June 12, 2015.

		
	38.
	Stock Repurchase Agreement by and between the Company and Stephan P. Vermut and Barbara T. Vermut 2002 Trust, dated June 12, 2015.

		
	39.
	Stock Repurchase Agreement by and between the Company and Stephan P. Vermut and Barbara T. Vermut 2002 Trust, dated June 12, 2015.

		
	40.
	Stock Repurchase Agreement by and between the Company and Aaron Vermut, dated June 12, 2015.

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

Schedule 7.1(k) Indebtedness.

		
	1.
	Dependent Notes Indenture dated January 22, 2013, by and between Prosper Funding and Wells Fargo Bank, National Association; First Supplemental Indenture dated May 10, 2013, by and between Prosper Funding and Wells Fargo Bank, National Association.

		
	2.
	Under the agreement the Company entered into with Wells Fargo, Inc. (“Wells Fargo”), Prosper Funding is required to maintain a reserve balance of $[***] as security for any chargeback risk that Wells Fargo may bear as a result of facilitating Automated Clearing House transactions.

		
	3.
	Under the Company’s or its Subsidiaries’ borrower and investor agreements, the Company or its Subsidiaries may hold money for investor members and borrowers on their behalf in accounts that the Company or its Subsidiaries maintain.

		
	4.
	The WebBank Agreements referenced in Schedule 7.1(q) require that the Company maintain the following collateral accounts: 

		
	a.
	A collateral account in an amount equal to the greater of (i) $[***] and (ii) to the extent loans originated under the marketing agreement exceed $[***], $[***], to secure the Company’s obligations to WebBank under the WebBank Agreement. 

		
	b.
	A collateral account in an amount equal to the difference between the total expected loan trailing fee collections and the paid loan trailing fees, calculated on a monthly basis, to secure Prosper Funding’s obligations under the Asset Sale Agreement with WebBank. 

		
	5.
	Contingent consideration in relation to the acquisition of BillGuard Inc.  This amount totals $[***] and was paid in December 2016.   

		
	6.
	In May 2016 the Company underwent a restructuring and as a result has recorded a restructuring liability of $[***] on the Unaudited Company Balance Sheet. 

		
	7.
	The borrower payment dependent notes issued by the Company and Prosper Funding to retail investors, the payments of which are dependent upon Prosper Funding’s receipt of payments from the borrower on the corresponding borrower loan.

		
	8.
	Letter of Credit issued by Wells Fargo to Columbia REIT 221 Main LLC (the Company’s landlord) for $[***] in regard to 221 Main Street SF, CA. 

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

		
	9.
	Letter of Credit issued by Wells Fargo to 400 Commerce LLC (the Company’s landlord) for $[***] in regard to 400 Commerce Drive, Newark, DE.

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

Schedule 7.1(m) Undisclosed Liabilities.

[***] [Two pages redacted]
10.    On November 17, 2016, PMI, PFL and Colchis entered into a Settlement and Release Agreement, pursuant to which Colchis agreed to terminate the Colchis agreements and waive all rights conferred under such agreements in exchange for a $9 million cash payment by PMI and an agreement by PMI to issue a warrant to purchase shares of a new series of preferred stock representing 7% of PMI’s capitalization on a fully diluted basis as of the date of the issuance of the warrant for $.01 per share.
[***]

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

Schedule 7.1(o) Compliance with Applicable Law
(i)
		
	1.
	On November 26, 2008, the Company and the North American Securities Administrators Association (“NASAA”) executed a settlement term sheet.  The term sheet set forth the material terms of a consent order to resolve matters relating to the Company’s sale and offer of unregistered securities and the omission of material facts in connection with such offers and sales.  NASAA recommend that each state adopt the terms of the settlement, however, the settlement is not binding on any state.  The terms of the settlement involve the Company’s payment of up to $1 million, which NASAA will allocate among the 50 states and the District of Columbia, based on the Company’s loan sale transaction volume in each state prior to November 24, 2008.  The Company will not be required to pay any portion of the fine allocated to those states that do not execute a consent order with the Company.  The terms of the settlement require the states to terminate their investigation of the Company’s activities related to the sale of securities before November 24, 2008.  If a state does not elect to participate in the NASAA settlement, such state would not be prevented from pursuing its own remedies in connection with the Company’s sale of securities before November 24, 2008.  On April 21, 2009, the Company reached agreement with NASAA on the final terms of the consent order for consideration by the states.  As of June 30, 2016, the Company had entered into 35 consent order agreements and has paid an aggregate of $785,164.00 million in penalties.

[***][Two pages redacted] 

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

Schedule 7.1(p) Permits
(i)
	
				
	State Licenses

	Name of State
	License or Permit Number
	Name of License
	Entity

	Arizona
	[***]
	Collection Agency License
	Company

	Arkansas
	[***]
	Collection Agency License
	Company

	California
	[***]
	Finance Lender License
	Company

	Colorado
	[***]
	Supervised Lender License
	Company

	Connecticut
	[***]
	Small Loan Company License
	Company

	Florida
	[***]
	Consumer Finance License
	Company

	Idaho
	[***]
	Regulated Lender License
	Company

	Idaho
	[***]
	Collection Agency License
	Company

	Kansas
	[***]
	Supervised Loan License
	Company

	Kansas
	[***]
	Credit Notification License
	Company

	Louisiana
	[***]
	Collection Agency License
	Company

	Maryland
	[***]
	Collection Agency Exemption
	Company

	Massachusetts
	[***]
	Third Party Loan Servicer Registration
	Company

	Michigan
	[***]
	Regulatory Loan License
	Company

	Montana
	[***]
	Consumer Loan License
	Company

	New Jersey
	[***]
	Registered Collection Agency Bond
	Company

	New Mexico
	[***]
	Collection Agency License
	Company

	New Mexico
	[***]
	Collection Agency Managers License (Linda S Allen - NM Resident Manager)
	Company

	Oklahoma
	[***]
	Supervised Lender License
	Company

	Oregon
	[***]
	Consumer Finance Act License
	Company

	Oregon
	[***]
	Collection Agency License
	Company

	Pennsylvania
	[***]
	Consumer Discount Company License
	Company

	Rhode Island
	[***]
	Debt Collector Registration
	Company

	Texas
	[***]
	Regulated Loan License
	Company

	Texas
	[***]
	Third Party Debt Collector Filing
	Company

	Utah
	[***]
	Consumer Credit Notification
	Company

	Utah
	[***]
	Foreign Collection Agency Registration
	Company

	Vermont
	[***]
	Lender License
	Company

	Washington
	[***]
	Collection Agency License
	Company

	West Virginia
	[***]
	Collection Agency License
	Company

	Wisconsin
	[***]
	Consumer Act Registration
	Company

	Wyoming
	[***]
	Supervised Lender License
	Company

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

	
				
	Connecticut
	[***]
	Small Loan Company License
	Prosper Funding

	Kansas
	[***]
	Supervised Loan License
	Prosper Funding

	Kansas
	[***]
	Credit Notification License
	Prosper Funding

	Pennsylvania
	[***]
	Consumer Discount Company License
	Prosper Funding

	Vermont
	[***]
	Lender License
	Prosper Funding

	 

	[***]
	In process
	Lending
	Company

	[***]
	In process
	Lending
	Prosper Funding

	[***]
	In process
	Credit Notification License
	Company

	Federal Securities Registrations

	Name of Government Entity
	Registration Number
	Name of Registration
	Entity

	SEC
	 
333-204880-01

	Registration Statement on Form S-1 (Borrower Payment Dependent Notes, $1,500,000,000)

	Prosper Funding

	SEC
	 
333-204880

	Registration Statement on Form S-1 (PMI Management Rights)

	Company

	State Securities Registrations

	Name of State
	License or Permit Number
	Name of License
	Entity

	Alaska
	[***]
	Registration of Securities
	Prosper Funding /Company

	California
	[***]
	Registration of Securities
	Prosper Funding /Company

	Colorado
	[***]
	Registration of Securities
	Prosper Funding /Company

	Connecticut
	[***]
	Registration of Securities
	Prosper Funding /Company

	D.C.
	[***]
	Registration of Securities
	Prosper Funding /Company

	Delaware
	[***]
	Registration of Securities
	Prosper Funding /Company

	Florida
	[***]
	Registration of Securities
	Company

	Florida
	[***]
	Registration of Securities
	Prosper Funding

	Georgia
	[***]
	Registration of Securities
	Prosper Funding /Company

	Idaho
	[***]
	Registration of Securities
	Prosper Funding /Company

	Illinois
	[***]
	Registration of Securities
	Prosper Funding /Company

	Indiana
	[***]
	Registration of Securities
	Prosper Funding /Company

	Louisiana
	[***]
	Registration of Securities
	Prosper Funding

	Maine
	[***]
	Registration of Securities
	Prosper Funding /Company

	Michigan
	[***]
	Registration of Securities
	Prosper Funding /Company

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

	
				
	Minnesota
	[***]
	Registration of Securities
	Prosper Funding

	Mississippi
	[***]
	Registration of Securities
	Prosper Funding /Company

	Missouri
	[***]
	Registration of Securities
	Prosper Funding /Company

	Montana
	[***]
	Registration of Securities
	Company

	Montana
	[***]
	Registration of Securities
	Prosper Funding

	Nevada
	[***]
	Registration of Securities
	Prosper Funding /Company

	New Hampshire
	[***]
	Registration of Securities
	Prosper Funding /Company

	New York
	[***]
	Registration of Securities
	Company

	New York
	[***]
	Registration of Securities
	Prosper Funding

	Oregon
	[***]
	Registration of Securities
	Prosper Funding /Company

	Rhode Island
	[***]
	Registration of Securities
	Prosper Funding /Company

	South Carolina
	[***]
	Registration of Securities
	Prosper Funding /Company

	South Dakota
	[***]
	Registration of Securities
	Prosper Funding /Company

	Utah
	[***]
	Registration of Securities
	Prosper Funding /Company

	Virginia
	[***]
	Registration of Securities
	Prosper Funding

	Washington State
	[***]
	Registration of Securities
	Prosper Funding /Company

	Wisconsin
	[***]
	Registration of Securities
	Prosper Funding /Company

	Wyoming
	[***]
	Registration of Securities
	Prosper Funding /Company

	Florida
	[***]
	Issuer-Dealer Registration
	Company

	Florida
	[***]
	Issuer-Dealer Registration
	Prosper Funding

	New Hampshire
	[***]
	Issuer-Dealer Registration
	 

	Oregon
	[***]
	Issuer-Dealer Registration
	Prosper Funding /Company

	Virginia
	[***]
	Issuer-Dealer Registration
	Prosper Funding

	Business Qualifications

	Name of State
	License or Permit Number
	Department
	Entity

	Delaware
	[***]
	Secretary Of State, Division Of Corporations
	Company

	Delaware
	[***]
	Secretary Of State, Division Of Corporations
	Prosper Funding

	Delaware
	[***]
	Secretary Of State, Division Of Corporations
	Prosper Healthcare Lending LLC

	Delaware
	[***]
	Secretary Of State, Division Of Corporations
	Prosper Asset Holdings LLC

	Delaware
	[***]
	Secretary Of State, Division Of Corporations
	Prosper Capital Consumer Credit Fund, LP

	Delaware
	[***]
	Secretary Of State, Division Of Corporations
	BillGuard, Inc.

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

	
				
	Delaware
	[***]
	Secretary Of State, Division Of Corporations
	Prosper Capital Management, LLC

	California
	[***]
	Secretary Of State
	Prosper Asset Holdings LLC

	California
	[***]
	Secretary Of State
	Prosper Capital Management, LLC

	Alabama
	[***]
	Secretary Of State, Corporations Division
	Prosper Funding

	Alaska
	[***]
	Department of Natural Resources
	Prosper Funding

	Arizona
	[***]
	Corporation Commission, Corporations Division
	Prosper Funding

	Arkansas
	[***]
	Secretary Of State, Business Department
	Prosper Funding

	California
	[***]
	Secretary Of State
	Prosper Funding

	Colorado
	[***]
	Secretary Of State
	Prosper Funding

	Connecticut
	[***]
	Secretary Of State, Commercial Recording Division
	Prosper Funding

	District Of Columbia
	[***]
	Department Of Consumer And Regulatory Affairs, Business and Professional Licensing Administration, Corporations Division
	Prosper Funding

	Florida
	[***]
	Department Of State, Division Of Corporations
	Prosper Funding

	Georgia
	[***]
	Secretary Of State, Corporations Division
	Prosper Funding

	Hawaii
	[***]
	Department Of Commerce And Consumer Affairs, Business Registration Division
	Prosper Funding

	Idaho
	[***]
	Secretary Of State, Business Entities
	Prosper Funding

	Illinois
	[***]
	Secretary Of State, Department Of Business Services
	Prosper Funding

	Indiana
	[***]
	Secretary Of State, Business Services Division
	Prosper Funding

	Iowa
	[***]
	Secretary Of State, Corporations Department
	Prosper Funding

	Kansas
	[***]
	Secretary Of State
	Prosper Funding

	Kentucky
	[***]
	Secretary Of State
	Prosper Funding

	Louisiana
	[***]
	Secretary Of State, Commercial Division, Corporations Section
	Prosper Funding

	Maine
	[***]
	Secretary Of State, Bureau Of Corporations, Elections And Commissions
	Prosper Funding

	Maryland
	[***]
	State Department Of Assessments And Taxation
	Prosper Funding

	Massachusetts
	[***]
	Secretary Of The Commonwealth
	Prosper Funding

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

	
				
	Michigan
	[***]
	Corporations, Securities & Commercial Licensing Division
	Prosper Funding

	Minnesota
	[***]
	Secretary Of State, Business Services Office
	Prosper Funding

	Mississippi
	[***]
	Secretary Of State, Business Services Division
	Prosper Funding

	Missouri
	[***]
	Secretary Of State, Business Services Department
	Prosper Funding

	Montana
	[***]
	Secretary Of State
	Prosper Funding

	Nebraska
	[***]
	Business Services Division
	Prosper Funding

	Nevada
	[***]
	Secretary Of State, Commercial Recordings Division
	Prosper Funding

	New Hampshire
	[***]
	Secretary Of State, Corporation Division
	Prosper Funding

	New Jersey
	[***]
	Department Of The Treasury, Division Of Revenue, Business Services Bureau
	Prosper Funding

	New Mexico
	[***]
	Secretary of State, Corporations Bureau
	Prosper Funding

	New York
	[***]
	Department Of State, Division Of Corporations, State Records And Uniform Commercial Code
	Prosper Funding

	North Carolina
	[***]
	Secretary Of State, Corporations Division
	Prosper Funding

	North Dakota
	[***]
	Secretary Of State, Business Information/Registration Division
	Prosper Funding

	Ohio
	[***]
	Secretary Of State
	Prosper Funding

	Oklahoma
	[***]
	Secretary Of State
	Prosper Funding

	Oregon
	[***]
	Secretary Of State, Corporation Division
	Prosper Funding

	Pennsylvania
	[***]
	Department Of State, Corporation Bureau
	Prosper Funding

	Rhode Island
	[***]
	Secretary Of State, Corporations Division
	Prosper Funding

	South Carolina
	[***]
	Secretary Of State, Division Of Corporations
	Prosper Funding

	South Dakota
	[***]
	Secretary Of State
	Prosper Funding

	Tennessee
	[***]
	Department Of State, Division Of Business Services
	Prosper Funding

	Texas
	[***]
	Secretary Of State, Statutory Filings Division, Corporations Section
	Prosper Funding

	Utah
	[***]
	Department Of Commerce, Division Of Corporations & Commercial Code
	Prosper Funding

	Vermont
	[***]
	Secretary Of State, Corporations/UCC Division
	Prosper Funding

	Virginia
	[***]
	State Corporation Commission
	Prosper Funding

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

	
				
	Washington
	[***]
	Office Of The Secretary Of State, Corporations Division
	Prosper Funding

	West Virginia
	[***]
	Secretary Of State
	Prosper Funding

	Wisconsin
	[***]
	Department Of Financial Institutions
	Prosper Funding

	Wyoming
	[***]
	Secretary Of State
	Prosper Funding

	Utah
	[***]
	Certificate of Registration 
Department Of Commerce, Division Of Corporations & Commercial Code
	Prosper Healthcare Lending LLC

	Alabama
	[***]
	Secretary Of State, Corporations Division
	Company

	Alaska
	[***]
	Department of Natural Resources
	Company

	Arizona
	[***]
	Corporation Commission, Corporations Division
	Company

	Arkansas
	[***]
	Secretary Of State, Business Department
	Company

	California
	[***]
	Secretary Of State
	Company

	Colorado
	[***]
	Secretary Of State
	Company

	Connecticut
	[***]
	Secretary Of State, Commercial Recording Division
	Company

	District Of Columbia
	[***]
	Department Of Consumer And Regulatory Affairs, Business and Professional Licensing Administration, Corporations Division
	Company

	Florida
	[***]
	Department Of State, Division Of Corporations
	Company

	Georgia
	[***]
	Secretary Of State, Corporations Division
	Company

	Hawaii
	[***]
	Department Of Commerce And Consumer Affairs, Business Registration Division
	Company

	Idaho
	[***]
	Secretary Of State, Business Entities
	Company

	Illinois
	[***]
	Secretary Of State, Department Of Business Services
	Company

	Indiana
	[***]
	Secretary Of State, Business Services Division
	Company

	Iowa
	[***]
	Secretary Of State, Corporations Department
	Company

	Kansas
	[***]
	Secretary Of State
	Company

	Kentucky
	[***]
	Secretary Of State
	Company

	Louisiana
	[***]
	Secretary Of State, Commercial Division, Corporations Section
	Company

	Maine
	[***]
	Secretary Of State, Bureau Of Corporations, Elections And Commissions
	Company

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

	
				
	Maryland
	[***]
	State Department Of Assessments And Taxation
	Company

	Massachusetts
	[***]
	Secretary Of The Commonwealth
	Company

	Michigan
	[***]
	Corporations, Securities & Commercial Licensing Division
	Company

	Mississippi
	[***]
	Secretary Of State, Business Services Division
	Company

	Missouri
	[***]
	Secretary Of State, Business Services Department
	Company

	Montana
	[***]
	Secretary Of State
	Company

	Nebraska
	[***]
	Business Services Division
	Company

	Nevada
	[***]
	Secretary Of State, Commercial Recordings Division
	Company

	New Hampshire
	[***]
	Secretary Of State, Corporation Division
	Company

	New Jersey
	[***]
	Department Of The Treasury, Division Of Revenue, Business Services Bureau
	Company

	New Mexico
	[***]
	Secretary of State, Corporations Bureau
	Company

	New York
	[***]
	Department Of State, Division Of Corporations, State Records And Uniform Commercial Code
	Company

	North Carolina
	[***]
	Secretary Of State, Corporations Division
	Company

	North Dakota
	[***]
	Secretary Of State, Business Information/Registration Division
	Company

	Ohio
	[***]
	Secretary Of State
	Company

	Oklahoma
	[***]
	Secretary Of State
	Company

	Oregon
	[***]
	Secretary Of State, Corporation Division
	Company

	Pennsylvania
	[***]
	Department Of State, Corporation Bureau
	Company

	Rhode Island
	[***]
	Secretary Of State, Corporations Division
	Company

	South Carolina
	[***]
	Secretary Of State, Division Of Corporations
	Company

	South Dakota
	[***]
	Secretary Of State
	Company

	Tennessee
	[***]
	Department Of State, Division Of Business Services
	Company

	Texas
	[***]
	Secretary Of State, Statutory Filings Division, Corporations Section
	Company

	Utah
	[***]
	Department Of Commerce, Division Of Corporations & Commercial Code
	Company

	Vermont
	[***]
	Secretary Of State, Corporations/UCC Division
	Company

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

	
				
	Virginia
	[***]
	State Corporation Commission
	Company

	Washington
	[***]
	Office Of The Secretary Of State, Corporations Division
	Company

	West Virginia
	[***]
	Secretary Of State
	Company

	Wisconsin
	[***]
	Department Of Financial Institutions
	Company

	Wyoming
	[***]
	Secretary Of State
	Company

	California
	[***]
	San Francisco Municipal License
	Company

	California
	[***]
	San Francisco Municipal License
	Prosper Funding

	California
	[***]
	Certificate of Qualification to conduct business in state
	BillGuard, Inc.

	New York
	[***]
	Certificate of Qualification to conduct business in state
	BillGuard, Inc.

	California
	[***]
	San Francisco Municipal License
	Company

	California
	[***]
	San Francisco Municipal License
	Prosper Funding

	Delaware
	[***]
	Business License
	Company

	Employer Identification Numbers

	Name of Government Entity
	License or Permit Number
	Name of License
	Entity

	Internal Revenue Service
	[***]
	Employer Identification Number
	Company

	Internal Revenue Service
	[***]
	Employer Identification Number
	Prosper Funding

	Internal Revenue Service
	[***]
	Employer Identification Number
	Prosper Asset Holdings LLC

	Internal Revenue Service
	[***]
	Employer Identification Number
	Prosper Healthcare Lending LLC

	Internal Revenue Service
	[***]
	Employer Identification Number
	BillGuard, Inc.

	Internal Revenue Service
	[***]
	Employer Identification Number
	Prosper Capital Management, LLC

	Internal Revenue Service
	[***]
	Employer Identification Number
	Prosper Capital Consumer Credit Fund LP

(ii) 
The Company is currently in the process of obtaining the following Permits and has made filings in such respect:   
	
				
	Entity
	State
	License Type
	License Authority

	PMI
	[***]
	[***]
	[***]

	PFL
	[***]
	[***]
	[***]

	PMI
	[***]
	[***]
	[***]

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

Schedule 7.1(q) Material Contracts.
(i)
(a) [***]
(b)  
[***][16 pages redacted]
(c)
		
	1.
	See Schedule 7.1(k). 

(d)
None. 
(e) [***]
(f) 
		
	1.
	Agreement and Plan of Merger by and among BillGuard, Inc., Beach Merger Sub, Inc., the Company and Shareholder Representative Services LLC, dated as of September 23, 2015. 

		
	2.
	Agreement and Plan of Merger by and among the Company, Prosper Healthcare Lending, LLC, American HealthCare Lending, LLC and Shaun Sorensen, as Agent for the Company Holders, dated as of January 23, 2015. 

(g) [***]
(h) [***]
(i)
		
	1.
	Offer Letter by and between the Company and Sachin Adarkar, dated as of August 7, 2009. 

		
	2.
	Offer Letter by and between the Company and Kunal Kaul, dated as of December 1, 2015. 

		
	3.
	Offer Letter by and between the Company and David Kimball, dated as of February 13, 2016 (CFO).

		
	4.
	Offer Letter by and between the Company and David Kimball, dated as of November 23, 2016 (CEO). 

		
	5.
	Offer Letter by and between the Company and Brad Pennington, dated as of January 30, 2012.

		
	6.
	Letter by and between the Company and Brad Pennington, dated as of November 18, 2016.

		
	7.
	Offer Letter by and between the Company and Usama Ashraf, dated as of January 19, 2017.

(j)    
None.
(k)
[***][14 pages redacted]

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

Schedule 7.1(r) Employees.

(i)
	
					
	 Executive Officer
	Title
	Current Annual Base Salary
	2015 Bonus*
	Projected 2016 Bonus****

	David Kimball
	Chief Executive Officer and Chief Financial Officer
	$500,000
	[***] **
	$257,812.50

	Ron Suber
	President
	[***]
	[***] 
	[***]

	Brad Pennington
	Chief Risk Officer
	$350,000
	[***]
	$262,500

	Sachin Adarkar
	General Counsel, Chief Compliance Officer and Secretary
	[***]
	[***]
	[***]

	Kunal Kaul
	Executive VP, Operations
	$300,000
	[***] ***
	$225,000

* 2015 bonuses were paid in first quarter of 2016.
** For CFO sign-on bonus.  
***Mr. Kaul’s bonus was prorated based on his start date.
**** The Company expects to pay 2016 bonuses in March 2017. 

 (ii)
[***]

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

Schedule 7.1(s) Litigation.
		
	1.
	Colchis, an asset management firm that historically purchased notes and loans on the Company’s platform as an institutional investor, filed a JAMS demand for arbitration against Prosper Funding and the Company in April 2015 asserting claims in regard to the Colchis Agreement.  The case number is JAMS Reference No. 1100080774, and the arbitrator is Hon. Irma Gonzalez.  The parties sought declaratory and injunctive relief as to whether certain policies implemented and products offered by the Company and Prosper Funding comply with, or alternatively, violate the operative agreements’ most favored nation, first come first served, and other asserted contract provisions.  The parties also sought declaratory and injunctive relief as to whether certain substantive rights survive interminably under the contracts after termination or expiration of the agreements, including the alleged right to bid on all loans and notes on a first come, first served basis through an active platform.   A nine-day hearing was held in July 2016, with post-hearing briefing submitted and closing arguments made in September 2016. On October 17, 2016, the arbitrator issued a final award in favor of Colchis. 

On November 17, 2016, PMI, PFL and Colchis entered into a Settlement and Release Agreement, pursuant to which Colchis agreed to terminate the Colchis agreements and waive all rights conferred under such agreements in exchange for a $9 million cash payment by PMI and an agreement by PMI to issue a warrant to purchase shares of a new series of preferred stock representing 7% of PMI’s capitalization on a fully diluted basis as of the date of the issuance of the warrant for $.01 per share (“Colchis Warrant”).  The Colchis Warrant was issued by PMI to Colchis on December 16, 2016.
		
	2.
	[***]

		
	3.
	[***]

		
	4.
	[***]

		
	5.
	See Section (k) of Schedule 7.1(q)(i).

		
	6.
	See Schedule 7.1(q)(ii), Item 2. 

		
	7.
	See Schedule 7.1(o), Item 8. 

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

Schedule 7.1(t) Tax.

(i)
[***]
 (iii)
[***]
(iv)
[***]         

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

Schedule 7.1(u) Brokers.

The Engagement Letter, pursuant to which the Company has engaged FT Partners as its financial and strategic advisor in connection with possible transactions involving the Company.Exhibit

Exhibit 10.10

Execution Version

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

BACKUP SERVICING AGREEMENT (NOTE CHANNEL)
This BACKUP SERVICING AGREEMENT (NOTE CHANNEL), dated as of February 24, 2017 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, this “Agreement”), is entered into by and among PROSPER FUNDING LLC, a Delaware limited liability company (“PFL”), and PROSPER MARKETPLACE, INC., a Delaware corporation (“PMI” and, together with PFL, collectively, “Prosper”), in each case, as servicer (in such capacity, together with their respective successors and permitted assigns, “Servicer”), and FIRST ASSOCIATES LOAN SERVICING, LLC, a Delaware limited liability company, as backup servicer (in such capacity, together with its successors and permitted assigns, “Backup Servicer”). 
WHEREAS, from time to time, PFL purchases, without recourse, unsecured consumer loans from WebBank, a Utah chartered industrial bank, and/or any other bank origination partner of Prosper (collectively, “Bank”);
WHEREAS, from time to time, PFL issues Borrower Payment Dependent Notes that are entirely dependent for payment on payments received on the corresponding Loan;
WHEREAS, Servicer acts as servicer with respect to the Loans and the Borrower Payment Dependent Notes, for which it desires to contract with a third party to perform certain backup servicing, custodial and verification duties;
WHEREAS, Backup Servicer has expertise in the business of servicing unsecured consumer loans;
WHEREAS, this Agreement shall supersede that certain Backup Servicing Agreement, dated as of January 9, 2014, entered into by and between PFL and Backup Servicer, as amended, restated, amended and restated, supplemented or otherwise modified from time to time prior to the date hereof, in all respects;
WHEREAS, Servicer desires that Backup Servicer perform certain backup servicing and verification duties in accordance with the terms of this Agreement, and assume the role of successor servicer (“Successor Servicer”) for the Serviced Assets under the terms of the Successor Loan Servicing Agreement attached hereto as Exhibit D (the “Successor Servicing Agreement”) pursuant to the conditions described therein and herein, if requested to do so by the indenture trustee (“Indenture Trustee”) under that certain Amended and Restated Borrower Payment Dependent Notes Indenture, dated as of January 22, 2013 (as amended, restated, amended and restated, supplemeted or otherwise modified from time to time, the “Indenture”), by and between PFL and Wells Fargo Bank, National Association; and
WHEREAS, Backup Servicer is willing to perform the backup servicing and verification duties specified herein and to assume the role of Successor Servicer under the terms of the Successor Servicing Agreement with respect to the Serviced Assets pursuant to the conditions described therein and herein.
NOW, THEREFORE, in consideration of the mutual agreements hereinafter set forth, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Servicer and Backup Servicer hereby agree as follows:

1

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

1.Definitions.  
(a)    “Affiliate” means, when used with respect to any Person, any other Person directly or indirectly controlling, controlled by or under common control with, such Person.  As used in this definition of Affiliate, the term “control” means the power, directly or indirectly, to direct or cause the direction of the management and policies of a Person, whether through ownership of such Person’s voting securities, by contract or otherwise, and the terms “affiliated”, “controlling” and “controlled” have correlative meanings. 
(b)    “Annual Test” has the meaning assigned thereto in Section 5 hereof.
(c)    “Applicable Laws” means all federal, state and local laws, statutes, rules, regulations, court orders and decrees, administrative orders and decrees, and other legal requirements of any and every conceivable type applicable to a party and relating to or affecting the servicing, collection or administration of any Loan, and all requirements of any Governmental Authority having jurisdiction over a party with respect to its servicing activities, including, but not limited to, the Fair Debt Collection Practices Act, the Electronic Transfers Act, the Fair Credit Reporting Act, the Consumer Financial Protection Act of 2010 and the Equal Credit Opportunity Act, as any such laws, statutes, regulations, orders or requirements may be amended and in effect from time to time during the term of this Agreement.
(d)    “Appointment Effective Date” has the meaning assigned thereto in Section 3(a) hereof.
(e)    “Appointment Period” has the meaning assigned thereto in Section 3(a) hereof.
(f)    “Backup Servicer” has the meaning assigned thereto in the preamble to this Agreement.
(g)    “Backup Servicing Fee” has the meaning assigned thereto in Exhibit C hereto.
(h)    “Backup Servicing Information” has the meaning assigned thereto in Section 4(b) hereof.  
(i)    “Bankruptcy Code” means Title 11 of the United States Code, 11 U.S.C. §§ 101 et. seq., as amended from time to time. 
(j)    “Borrower Payment Dependent Notes” means the borrower payment dependent notes issued and sold by PFL through its Retail Platform. 
(k)    “Business Day” means a day other than (i) a Saturday, (ii) a Sunday, (iii) any day that is a legal holiday under the laws of the State of California or the State of Utah, or (iv) any day on which a bank located in the State of California or the State of Utah is authorized or permitted by law to close for business.
(l)    “Confidential Information” has the meaning assigned thereto in Section 16(a) hereof.
(m)    “Customer NPPI” has the meaning assigned thereto in Section 16(b) hereof.

2

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

(n)    “Debtor Relief Laws” means (i) the Bankruptcy Code and (ii) all other applicable liquidation, conservatorship, bankruptcy, moratorium, arrangement, receivership, insolvency, reorganization, suspension of payments, adjustment of debt, marshalling of assets or similar debtor relief laws of the United States, any state or any foreign country from time to time in effect affecting the rights of creditors generally. 
(o)    “Governmental Authority” means, with respect to any Person, any federal, state or local regulatory agency or other governmental agency, department, court, commission, board, bureau, instrumentality or political subdivision thereof, or any entity or officer exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to any government or any court, in each case, having jurisdiction over such Person, any Loan or any Obligor.
(p)    “Indemnified Parties” has the meaning assigned thereto in Section 12(b) hereof.
(q)    “Indenture” has the meaning assigned thereto in the recitals to this Agreement.
(r)    “Indenture Trustee” has the meaning assigned thereto in the recitals to this Agreement.
(s)    “Insolvency Event” means, with respect to any Person, if any of the following events shall occur: (i) such Person shall file a petition or commence a Proceeding (A) to take advantage of any Debtor Relief Law or (B) for the appointment of a trustee, conservator, receiver, liquidator or similar official for or relating to such Person or all or substantially all of its property, or for the winding up or liquidation of its affairs, and such petition or Proceeding shall not have been dismissed or stayed within sixty (60) days of its filing or commencement, (ii) such Person shall consent or fail to object to any such petition filed or Proceeding commenced against or with respect to it or all or substantially all of its property, or any such petition or Proceeding shall not have been dismissed or stayed within sixty (60) days of its filing or commencement, or a court, agency or other supervisory authority with jurisdiction shall not have decreed or ordered relief with respect to such petition or Proceeding, (iii) such Person shall admit in writing its inability to pay its debts generally as they become due, (iv) such Person shall make an assignment for the benefit of its creditors, or (v) such Person shall take any action in furtherance of any of the foregoing. 
(t)    “Investor File” means a file pertaining to each Borrower Payment Dependent Note containing, among other things, (i) information relating to ownership of such Borrower Payment Dependent Note, (ii) all payment information relating to such Borrower Payment Dependent Note, (iii) contact information for the owner of such Borrower Payment Dependent Note and (iv) other documents relating to such Borrower Payment Dependent Note that Servicer shall keep in such file, in accordance with its customary procedures.
(u)    “Loan” means any loan purchased by PFL from Bank for which PFL has issued Borrower Payment Dependent Notes through the Retail Platform.
(v)    “Loan Document” means any promissory note or other document executed by an Obligor to evidence the indebtedness of each Obligor under a Loan and setting forth the terms of such indebtedness; it being understood and agreed that each such document is created and stored in electronic form only and, therefore, that no single original of any such document exists.

3

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

(w)    “Loan Files” means a file pertaining to each Loan containing, among other things, electronic copies of each of the following documents (i) the related fully-executed Loan Documents, (ii) all original assumption, consolidation, extension, modification or waiver agreements, if any, relating to such Loan, and loan documents evidencing any assumption, consolidation, extension, modification or waiver of such Loan, (iii) documentation evidencing any forbearance plan or deferment plan relating to such Loan and (iv) other documents relating to such Loan or the related Obligor that Servicer shall keep in such file, in accordance with its customary procedures.
(x)    “Loan Trailing Fee” has the meaning assigned thereto in Exhibit B hereof.
(y)    “Losses” has the meaning assigned thereto in Section 12(a) hereof.
(z)    “Material Adverse Effect” means, with respect to any Person and to any event or circumstance, a material adverse effect on (i) the business, condition (financial or otherwise), operations, performance or properties of such Person and its Affiliates, taken as a whole, or (ii) the ability of such Person to perform its obligations under this Agreement.
(aa)    “Monthly Master File” has the meaning assigned thereto in Section 4(c) hereof.
(bb)    “Monthly Report” has the meaning assigned thereto in Section 4(c) hereof.
(cc)    “Obligor” means, with respect to a Loan, each borrower, guarantor or other Person obligated to make payments thereon pursuant to the related Loan Documents.
(dd)    “Person” means an individual, joint stock company, trust, unincorporated association, joint venture, corporation, business trust, partnership or other organization or entity (whether governmental or private).
(ee)    “Privacy Requirements” has the meaning assigned thereto in Section 16(b) hereof.
(ff)    “Proceeding” means any suit in equity, action at law or other judicial or administrative proceeding. 
(gg)    “Representatives” has the meaning assigned thereto in Section 16(a) hereof.
(hh)    “Retail Platform” means the online credit platform owned and operated by PFL, and any of its related systems and data for the purchase of Borrower Payment Dependent Notes by retail investors.
(ii)    “Serviced Assets” means the Loans and/or Borrower Payment Dependent Notes serviced by Servicer pursuant ot the Indenture.
(jj)    “Servicer” has the meaning assigned thereto in the preamble to this Agreement.
(kk)    “SPE” has the meaning assigned thereto in the recitals to this Agreement.
(ll)    “Successor Servicer” has the meaning assigned thereto in the recitals to this Agreement.

4

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

(mm)    “Successor Servicing Agreement” has the meaning assigned thereto in the recitals to this Agreement.
(nn)    “Successor Servicing Fee” has the meaning assigned thereto in Exhibit B hereto.
2.    Loans Covered by this Agreement.  As of the date hereof, this Agreement applies to any and all Loans serviced by Servicer from time to time.  
3.    Appointment.
(a)    The parties hereto hereby agree that any time during the period beginning on the date hereof and ending on the date on which this Agreement is terminated pursuant to Section 14 hereof (such period, the “Appointment Period”), Indenture Trustee may appoint Backup Servicer to act as Successor Servicer under the Successor Servicing Agreement with respect to the Serviced Assets, upon written notice to Backup Servicer in the event of an Event of Default (as defined in the Indenture).  Within thirty (30) days of receipt of notice (the “Appointment Effective Date”) that Indenture Trustee has appointed Backup Servicer as Successor Servicer, Backup Servicer shall execute and deliver to Indenture Trustee the Successor Servicing Agreement in substantially the form attached as Exhibit D hereto and shall assume, within such thirty (30) days period, all duties and rights of the servicer under the Successor Servicing Agreement, without any further action by Servicer, and Servicer shall use reasonable efforts to ensure the prompt and smooth transition and transfer to Backup Servicer of the Serviced Assets and all related Loan Files and other records maintained as Servicer with respect to Serviced Assets.  Upon the Appointment Effective Date, Servicer hereby assigns to Backup Servicer, in its capacity as Successor Servicer, any effective authorization received by Servicer from any and all Obligors with respect to the Loans to initiate electronic debt entries to the designated checking or savings account of such Obligors.  If requested by Indenture Trustee, Backup Servicer shall promptly deliver at such time such written instruments of acceptance of appointment as Successor Servicer under the Successor Servicing Agreement as Indenture Trustee may require.  Notwithstanding anything to the contrary in this Agreement, Backup Servicer shall not be obliged to complete the transfer of servicing and perform the duties as Successor Servicer to the extent Servicer fails to perform its obligations under Sections 4(b), (c), (f) and (g).
(b)    Backup Servicer hereby agrees that in the event that Backup Servicer becomes Successor Servicer during the Appointment Period, (i) Backup Servicer shall be ready, willing and able to assume, and shall assume, Servicer’s responsibilities for servicing the Serviced Assets as set forth in the Successor Servicing Agreement, (ii) Backup Servicer shall be entitled to the Successor Servicing Fees (subject to the proviso set forth in Section 8) upon the appointment of Backup Servicer as Successor Servicer with respect to such Serviced Assets, and (iii) all fees set forth herein (other than the Successor Servicing Fees) shall no longer be payable to Backup Servicer.  Backup Servicer shall maintain one bank account which it will use for all ACH payments from Loans, unless otherwise agreed to by Backup Servicer and Indenture Trustee.  
1.    Duties of Backup Servicer.
(a)    In furtherance of its undertaking in Section 3 above, from and after the date hereof until the Appointment Effective Date, Backup Servicer agrees to perform the backup servicing and 

5

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

verification functions as set forth in this Section 4 with respect to the Loans.  On and after the Appointment Effective Date, Backup Servicer shall serve as Servicer under the Successor Servicing Agreement with respect to the Serviced Assets.  
(b)    Servicer shall provide to Backup Servicer nightly information that shall include, at a minimum, (i) the status of each Loan and its current position; (ii) all transaction information posted to each Loans; (iii) payments on each Loan that have been scheduled for a future date; and (iv) current information regarding ownership of each Loan, payment processing information, including, without limitation, all information and authorizations necessary to pull payments by ACH, and borrower and lender contact information with respect to each Loan (the “Backup Servicing Information”).  Servicer shall provide the Backup Servicing Information via Backup Servicer’s secure FTP site or through such other means as shall be agreed to by Servicer and Backup Servicer.  In the event that any Backup Servicing Information has not been received by Backup Servicer within a period of time to be mutually agreed upon, Backup Servicer shall notify Servicer of such occurrence within twenty-four (24) hours thereafter in order for Servicer to attempt to resend such Backup Servicing Information; provided, that to the extent Backup Servicer has not provided notice thereof within six (6) hours of the agreed upon period, Servicer’s failure to provide the information set forth in this clause (b) for the related night shall not constitute a breach of this Agreement.
(c)    On or before [***] (Pacific time) on the [***] Business Day of each month, Servicer shall transfer to Backup Servicer (i) a detailed master file in electronic format or another format acceptable to Backup Servicer (the “Monthly Master File”) for the Loans as of the last day of the preceding calendar month, and (ii) a report and a schedule of Loans (the “Monthly Report”), and Backup Servicer shall maintain and store such Monthly Master File and Monthly Report on a secure FTP site. 
(d)    Within five (5) Business Days of receipt of the Monthly Master File, Backup Servicer shall load the information from the Monthly Master File into Backup Servicer’s data system and Backup Servicer shall verify, by notice to Servicer, the information set forth on Exhibit A hereto, to the extent such information is contained in the Monthly Master File.  The verification shall compare the information on the Monthly Report to the information produced on Backup Servicer’s data system using the Monthly Master File.  
(e)    Within fifteen (15) Business Days of receipt of the Monthly Master File, Backup Servicer shall deliver to Servicer and Indenture Trustee a certificate (i) stating that the Monthly Master File has been received, is in an acceptable format, and Backup Servicer is able to begin servicing of any or all of the Loans within thirty (30) days of receipt of the Monthly Master File, and (ii) certifying that it has confirmed the accuracy of the information specified in Exhibit A hereto contained in the Monthly Report related to the Monthly Master File or describing any discrepancies discovered in the information specified in Exhibit A hereto contained in the Monthly Report related to the Monthly Master File.
(f)    In the event Backup Servicer reports a discrepancy between the information set forth in the Monthly Master File and the related Monthly Report as determined or calculated by Servicer from that determined or calculated by Backup Servicer, Servicer and Backup Servicer shall use good faith efforts to promptly reconcile such discrepancy.

6

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

(g)    Servicer shall maintain the Investor File on a secure site.  Servicer shall provide Backup Servicer access to the Investor File immediately upon notice from Indenture Trustee that Indenture Trustee has appointed Backup Servicer as Successor Servicer.  Backup Servicer shall have no duties with respect to the Borrower Payment Dependent Notes prior to the Appointment Efective Date.
(h)    Servicer agrees to provide Backup Servicer with any information with respect to the Serviced Assets that it may reasonably request and that may be reasonably necessary for the performance of its services hereunder.
(i)    Except as provided herein, (i) Backup Servicer shall have no obligation to supervise, verify, monitor or administer the performance of Servicer and shall have no liability for any action taken or omitted by Servicer, and (ii) Servicer shall have no obligation to supervise, verify, monitor or administer the performance of Backup Servicer and shall have no liability for any action taken or omitted by Backup Servicer.  In performing its duties hereunder, Backup Servicer shall have full power and authority to do or cause to be done any and all things in connection with its duties hereunder which it may deem necessary or desirable within the terms of this Agreement.
(j)    Standard of Care.  Backup Servicer shall use a standard of care and diligence reasonable in the consumer loan servicing industry in providing the services called for under this Agreement and will act in compliance with all Applicable Laws.
2.    Annual Testing.  Not less than once per calendar year (or more frequently as mutually agreed upon by Servicer and Backup Servicer), Servicer and Backup Servicer shall conduct a test (each, an “Annual Test”) of Backup Servicer’s ability to assume and perform its obligations as Successor Servicer and service the Serviced Assets.  Each Annual Test will consist of (i) a temporary test transfer of Obligor loan documentation for a sample of fifty (50) Loans by Servicer to Backup Servicer, (ii) a demonstration by Backup Servicer of Backup Servicer’s ability to to successfully load such sample of Loans onto its systems and (iii) any other tests reasonably requested by Servicer.  Client and Backup Servicer shall reasonably agree on the date of each Annual Test no fewer than sixty (60) days prior to such Annual Test.  The parties hereto shall cooperate in good faith to ensure that each Annual Test is conducted in a reasonable, efficient and timely manner.  Backup Servicer shall document and immediately notify Servicer of any issues that Backup Servicer discovers in connection with any such Annual Test, and Backup Servicer shall remedy such issues to the reasonable satisfaction of Servicer as soon as reasonably practicable.
3.    Cooperation in Financings.  In connection with any financing of Loans, Backup Servicer shall, to the extent reasonably practicable and at Servicer’s sole expense, cooperate with Servicer to provide any information reasonably requested by Servicer for inclusion in a prospectus, private placement memorandum or other offering materials, and shall provide certifications to any underwriters, placement agents or purchasers of Servicer’s debt as to the accuracy of such information in all material respects, and as to such other matters in connection therewith as Servicer may reasonably request.  If any transaction or agreement (including the purchase or sale of a Loan or any interest in a Loan) between or among Servicer and any other entity causes Backup Servicer to incur any reasonable and documented out-of-pocket fees, costs or expenses, including but not limited to reasonable and documented out-of-pocket attorney’s fees and fees for information technology support services, Servicer agrees to reimburse Backup Servicer for all such fees, costs and expenses promptly upon written demand by Backup Servicer.

7

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

4.    Backup Servicer’s Fees.  In connection with this Agreement, Servicer shall pay Backup Servicer the Backup Servicing Fees.  
5.    Successor Servicer’s Fees.  In connection with this Agreement, Indenture Trustee shall pay Successor Servicer the Successor Servicing Fees; provided, that to the extent applicable, Successor Servicer shall pay any Loan Trailing Fee received by Successor Servicer (i) to the extent PFL is a going concern at the time of receipt of such Loan Trailing Fee, to Servicer, and (ii) otherwise, to Bank, in each case, within five (5) Business Days of receipt thereof.
6.    Consultation Requirements; Joinders.  Servicer shall consult fully with Backup Servicer as may be necessary from time to time for Backup Servicer to perform or carry out its obligations hereunder.  In addition to the existing agreements set forth in Schedule 1, Prosper shall use reasonable best efforts to enter into any and all joinders to agreements between Prosper and its collection agents necessary for Backup Servicer to assume the rights and obligations of Prosper as servicer under such agreements on the Appointment Effective Date; provided, however, that Prosper shall not provide joinders to agreements with Prosper’s collection agents to any other backup servicer of Prosper loans.
7.    Access to Records.  Backup Servicer shall, upon reasonable notice and at reasonable times during normal business hours, permit Servicer and its employees, accountants and counsel to (i) examine, inspect and make copies of and abstracts from books, records, documents and other information concerning the conduct and performance of Backup Servicer of its obligations hereunder or in the possession or under the control of Backup Servicer relating to the Loans, (ii) visit and inspect any of the offices and properties of Backup Servicer, for the purpose of examining, making copies of or abstracts from such materials described in clause (i) above, and (iii) discuss matters relating to Backup Servicer’s performance hereunder with its and their officers, directors, employees and independent public accountants.  In addition, Backup Servicer shall (x) as soon as reasonably practicable, furnish documentation reasonably requested by Prosper’s loan investors and (y) reasonably cooperate with Prosper and its servicing vendors, including, without limitation, its call centers and collection agencies, in connection with the testing of servicing capability; provided, however, that such cooperation shall not materially increase Backup Servicer’s costs to perform its obligations under this Agreement.
8.    Representations and Warranties.  Backup Servicer hereby makes the following representations, warranties and covenants as of the date hereof:
(a)    Organization and Good Standing.  It (i) is a limited liability company duly organized, validly existing, and in good standing under the laws of the State of Delaware, (ii) has the power and all licenses, permits and authorizations necessary to own its assets and to transact the business in which it is presently engaged and (iii) has all power and authority, and all licenses, permits and authorizations required to execute and deliver this Agreement and to perform the services hereunder.

8

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

(b)    Due Qualification.  It is duly qualified to do business and, where necessary, is in good standing as a foreign limited liability company (or is exempt from such requirements), except where the failure to so qualify or obtain such approvals would not have a Material Adverse Effect.
(c)    Due Authorization.  It has duly authorized, by all necessary action on its part, the execution and delivery of this Agreement and the consummation of the transactions provided for or contemplated by this Agreement.
(d)    No Conflict.  Its execution and delivery of this Agreement, its performance of the transactions contemplated by this Agreement and the fulfillment of the terms hereof applicable to it will not conflict with, result in any breach of any of the material terms and provisions of, or constitute (with or without notice or lapse of time or both) a material default under, any material indenture, contract, agreement, mortgage, deed of trust or other instrument to which it is a party or by which it or its properties are bound.
(e)    No Violation.  Its execution and delivery of this Agreement, its performance of the transactions contemplated by this Agreement and its fulfillment of the terms hereof applicable to it, will not conflict with or violate any Applicable Law or any order or decree of any Governmental Authority or the governing documents of Backup Servicer or any mortgage, indenture, contract or other agreement to which Backup Servicer is a party or by which Backup Servicer or any of its property or assets may be bound.
(f)    No Proceedings.  There are no proceedings pending or, to the best of its knowledge, threatened or investigations pending or threatened against it before or by any Governmental Authority (i) asserting the invalidity of this Agreement, (ii) seeking to prevent the consummation of any of the transactions contemplated by this Agreement, (iii) seeking any determination or ruling that, in its reasonable judgment, would materially and adversely affect its performance of its obligations under this Agreement, (iv) seeking any determination or ruling that would materially and adversely affect the validity or enforceability of this Agreement or (v) which, if with the passage of time could individually or in the aggregate reasonably be expected to be material to the ongoing operation of Backup Servicer or its business or the performance of its obligations hereunder or otherwise have a Material Adverse Effect.
(g)    All Consents Required.  All material authorizations, consents, orders, approvals or other actions of any Governmental Authority required to be obtained or effected by it in connection with its execution and delivery of this Agreement, its performance of the transactions contemplated by this Agreement and the fulfillment of the terms hereof applicable to it have been duly obtained or effected and are in full force and effect.

9

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

(h)    Enforceability.  This Agreement constitutes its legal, valid and binding obligation, enforceable against it in accordance with the terms hereof, except as the enforceability of this Agreement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereinafter in effect affecting the enforcement of creditors’ rights and except as such enforceability may be limited by general principles of equity (whether considered in a proceeding at law or in equity).
9.    Indemnity.  
(a)    Servicer agrees to defend, indemnify and hold Backup Servicer and any officers, managers, members, employees or agents of Backup Servicer harmless against any and all claims, losses, penalties, fines, forfeitures, legal fees and related costs, judgments, and any other costs, fees, and expenses (collectively, “Losses”) that Backup Servicer may sustain under this Agreement in connection with claims asserted at any time by third parties against Backup Servicer which result from any act taken or any omission by Backup Servicer acting in good faith or Backup Servicer’s performance (or lack of performance) under this Agreement, unless such Losses are the result of (i) the breach of this Agreement by Backup Servicer, (ii) Backup Servicer’s failure to comply with requirements of Applicable Laws, in performing its duties as Backup Servicer hereunder, (iii) the gross negligence, bad faith or willful misconduct of Backup Servicer or (iv) any failure of the representations and warranties made by Backup Servicer hereunder or thereunder or in connection herewith to be true and correct in all material respects when made.  
(b)    Backup Servicer agrees to indemnify and hold Servicer, Indenture Trustee and their respective officers, managers, members, beneficial ownership interest owners, employees or agents (“Indemnified Parties”) harmless against any and all Losses sustained by any Indemnified Party in connection with claims asserted at any time by third parties against such Indemnified Party which result from the breach by Backup Servicer or its agents or subcontractors of its covenants or other agreements, representations or warranties set forth in this Agreement, unless such Losses are the result of (i) the breach of this Agreement by such Indemnified Party, (ii) such Indemnified Party’s failure to comply with requirements of Applicable Laws, in performing its duties hereunder or (iii) the gross negligence, bad faith or willful misconduct of such Indemnified Party.
(c)    The indemnities in this Section 12 shall survive the termination of this Agreement or the removal or resignation of Backup Servicer.  
10.    Limitation of Liability.
(a)    In conjunction with Backup Servicer’s obligations hereunder, Backup Servicer is authorized to accept and rely on all the accounting, records and work of Servicer, and Backup Servicer shall have no duty, responsibility, obligation or liability for the acts or omissions of Indenture Trustee or Servicer.  The degree of examination of such accounting, records and work which Backup Servicer deems necessary to complete any conversion and portfolio transfer in connection with Backup Servicer becoming a Successor Servicer shall not be construed as a representation by Backup Servicer of the accuracy of such accounting, records and work.

10

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

(b)    Neither Backup Servicer nor any of its members, managers, officers, employees or agents will be under any liability to Servicer or any other Person for any action taken or for refraining from the taking of any action in the capacity as Backup Servicer under this Agreement whether arising from express or implied duties under this Agreement; provided, however, that this provision does not protect Backup Servicer or any such Person against any liability that would otherwise be imposed by reason of (i) the negligence or willful misconduct of Backup Servicer, (ii) Backup Servicer’s failure to comply with requirements of Applicable Laws, in performing its duties as Backup Servicer hereunder, (iii) the breach of this Agreement by Backup Servicer, (iv) any failure of the representations and warranties made by Backup Servicer hereunder or in connection herewith to be true and correct in all material respects when made or (v) any obligation of Backup Servicer under Section 12(b) hereof.  Backup Servicer and any of its members, managers, officers, employees or agents may rely in good faith on any document of any kind prima facie properly executed and submitted by any Person with respect to any matters arising hereunder.  Backup Servicer will not be under any obligation to appear in, prosecute or defend any legal action which is not incidental to its servicing responsibilities hereunder and that in its reasonable opinion may involve it in any expense or liability.  
(c)    Backup Servicer will have no responsibility and will not be in default hereunder or incur any liability for any failure, error, malfunction or any delay in carrying out any of its duties under this Agreement if such failure or delay results from Backup Servicer acting in accordance with information prepared or supplied by any Person other than Backup Servicer or the failure of any such other Person to prepare or provide such information.  In the event Backup Servicer becomes aware of errors, which in the opinion of Backup Servicer, impairs its ability to perform its services hereunder, Backup Servicer shall immediately notify Servicer of such errors.  Backup Servicer will have no responsibility, will not be in default and will incur no liability for (i) any act or failure to act of any third party, including Indenture Trustee or Servicer, (ii) any inaccuracy or omission in a notice or communication received by Backup Servicer from any third party or (iii) the acts or omissions of any successor Backup Servicer.  Except for the obligations undertaken by Backup Servicer in this Agreement, Backup Servicer will have no obligation to take any action, or to perform any of the duties of Servicer, under any other documents until such time as Backup Servicer has become a Successor Servicer.
(d)    Backup Servicer offers no representations concerning, and shall have no liability hereunder with respect to, the collectability or enforceability of the Serviced Assets.  Backup Servicer shall have no responsibility and shall not be in default hereunder nor incur any liability for any failure, error, malfunction or any delay in carrying out any of its duties under this Agreement if any such failure or delay results from Backup Servicer acting in accordance with Applicable Laws, regulations or rules or from acts of God, war or terrorism, insurrection, strikes, stoppages of labor, power or equipment failure or malfunction (including that of any common carrier or transmission line), loss or malfunction of communications or computer (hardware or software) services, emergency conditions, tornado, flood, fire, earthquake or similar event, adverse weather conditions or any other factor, medium, instrumentality or any cause or circumstances, directly or indirectly, beyond Backup Servicer’s control or for information prepared or supplied by a Person other than Backup Servicer as contemplated hereunder or the failure of any such Person to prepare or provide such information.

11

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

(e)    THERE ARE NO IMPLIED WARRANTIES MADE BY ANY PARTY HERETO, INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.  NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE CONTRARY, IN NO EVENT SHALL ANY PARTY HERETO BE LIABLE FOR ANY CONSEQUENTIAL, PUNITIVE, INCIDENTAL OR SPECIAL DAMAGES  (EXCEPT TO THE EXTENT SUCH DAMAGES ARE AWARDED TO A THIRD PARTY IN AN ACTION FOR WHICH A PARTY HERETO HAS AN INDEMNIFICATION OBLIGATION), INCLUDING, BUT NOT LIMITED TO, DAMAGES FOR LOSS OF CURRENCY, FUNDS, DATA, PROFITS OR GOODWILL, REGARDLESS OF WHETHER SUCH PARTY HAS BEEN ADVISED OF THE LIKELIHOOD OF SUCH LOSS OR DAMAGE AND REGARDLESS OF THE FORM OF ACTION.  
11.    Termination.
(a)    This Agreement may be terminated by Servicer (i) following ninety (90) days’ notice by Servicer to Backup Servicer or (ii) immediately upon the occurrence of any of the following conditions: 
(1)    an Insolvency Event with respect to Backup Servicer; or
(2)    any gross negligence or willful misconduct of Backup Servicer.
(b)    This Agreement may be terminated immediately by either Servicer or Backup Servicer to the extent Backup Servicer or Servicer, respectively, commits a material breach of this Agreement which has not been cured within thirty (30) days of the terminating party’s written notice of said breach to the non-terminating party.  After a termination by Servicer, Backup Servicer shall continue to perform all backup servicing and verification functions under this Agreement until the date specified in a termination notice or, if no such date is specified in such termination notice, until a date mutually agreed upon by Backup Servicer and Servicer.
(c)    Backup Servicer may terminate this Agreement if it does not receive any payment required to be made to it under the terms of this Agreement, which failure continues unremedied for a period of thirty (30) days after written notice of such failure shall have been given to Servicer.
(d)    This Agreement will be automatically and immediately terminated if Backup Servicer becomes Successor Servicer pursuant to Section 3 hereof.

12

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

12.    Backup Servicer Not to Resign.  Except as set forth in Section 14, Backup Servicer shall not resign from the obligations and duties hereby imposed on it except by mutual written consent of Backup Servicer and Servicer or upon the determination that its duties hereunder are no longer permissible under Applicable Law and such incapacity cannot be cured by Backup Servicer without any unreasonable costs or expenses.  Any such determination permitting the resignation of Backup Servicer must be in the reasonable determination of Backup Servicer and must be accompanied by a certificate of an authorized officer of Backup Servicer reasonably acceptable to Servicer certifying as to the basis of such impermissibility under Applicable Law.
13.    Confidential Information.  
(a)    Backup Servicer will preserve the confidentiality of any non-public information obtained by it in connection with its performance of its responsibilities hereunder (“Confidential Information”); provided, however, that nothing herein shall prevent Backup Servicer from disclosing such information to (i) Backup Servicer’s managers, officers, members, employees, affiliates, agents, subservicers and professional consultants (collectively, “Representatives”) in connection with Backup Servicer’s obligations under this Agreement; provided, that Backup Servicer is liable for the acts or omissions of Representatives in breach of this Agreement, (ii) any federal or state regulatory agency having jurisdiction over Backup Servicer, (iii) any federal or state regulatory agency or Governmental Authority to which such disclosure is required (A) to effect compliance with any law, rule, regulation or order applicable to Backup Servicer, (B) in response to any subpoena or legal process, (C) in connection with any litigation or adversary proceedings to which Backup Servicer or any other party hereto is a party, or (D) as required to execute and administer this Agreement or (iv) to the extent such information becomes public through no act or fault of Backup Servicer.  In the case of any disclosure permitted by clause (ii) or (iii) above, Backup Servicer shall use commercially reasonable efforts to (x) provide Servicer with advance notice of any such disclosure and (y) cooperate with Servicer in limiting the extent or effect of any such disclosure.
(b)    Backup Servicer understands and agrees that any Non-Public Personal Information (within the meaning ascribed to such term under the FTC’s Rule regarding Privacy of Consumer Financial Information (16 CFR Part 313)) of any Obligor (including any co-signor or guarantor) of the payment obligation for any Loan (“Customer NPPI”) is subject to Title V of the Gramm-Leach-Bliley Act, 15 U.S.C. §§ 6801 et seq., the FTC’s Rule regarding the Privacy of Consumer Financial Information, 16 CFR Part 313, the FTC’s Standards for Safeguarding Customer Information, 16 CFR Part 314, and other applicable state and federal laws regarding the privacy or security of Customer NPPI (collectively, the “Privacy Requirements”).  Backup Servicer agrees that it shall comply with the Privacy Requirements and will promptly notify the other parties hereto of any breach of the Privacy Requirements or the provisions of this Section 16.  Without limiting the generality of the foregoing, Backup Servicer shall implement and maintain (i) access controls on information systems; (ii) access restrictions at physical locations containing Customer NPPI; (iii) encryption of electronic communications of Customer NPPI, secure connections for website access and with respect to other transmissions by Backup Servicer of Customer NPPI; (iv) monitoring systems and procedures to detect attempts to access servers on which Customer NPPI resides; (v) measures to protect against destruction, loss or damage of Customer NPPI due to potential environmental hazards such as fire and water damage or technological failures; (vi) testing of key 

13

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

controls, systems and procedures; and (vii) monitoring the information security policies of any of its subcontractors that are provided with Customer NPPI.
(c)    If Backup Servicer learns or has reason to believe that Servicer’s Confidential Information has been disclosed or accessed by an unauthorized party (each, a “Security Event”), Backup Servicer will immediately give notice of such event to Servicer to the extent permitted by law or law enforcement authorities.  In such notification, Backup Servicer will report on the nature of the incident, the estimated impact on Servicer and investigative action taken or planned.  Notwithstanding anything in this provision, Backup Servicer will also comply fully with all Applicable Law applicable to security breaches.  Except as may be required by Applicable Law or law enforcement authorities, to the extent the breach involves Customer NPPI, Backup Servicer will not notify any of Servicer’s customers or potential customers of such Security Event without Servicer’s express consent or upon Servicer’s specific instruction.  Backup Servicer will be responsible for the costs of any required notifications.
(d)    Within fifteen (15) calendar days after termination of this Agreement, Backup Servicer shall return to Servicer or destroy (and certify as to the destruction thereof, without retaining any copies) all originals and duplicates of any Confidential Information, in any form or medium; provided, however, that Backup Servicer shall be allowed to retain backup copies of the Confidential Information consistent with its established document retention policies.
(e)    Backup Servicer shall make no use of Customer NPPI or other Confidential Information other than to fulfill its obligations hereunder. 
(f)    This Section 16 shall survive the termination of this Agreement or the removal or resignation of Backup Servicer.
14.    Backup Servicer Security Commitment.  Backup Servicer shall at its own expense on an annual basis have an SSAE 16, type II audit performed and Backup Servicer shall provide Servicer with the results of such audit.
15.    Insurance.  Backup Servicer at its sole expense agrees to maintain the following insurance coverage during the Term:
(a)    All insurance required by federal, state or local law and statute, including worker’s compensation insurance;
(b)    Employer’s general liability insurance of $2,000,000 per claim and in the aggregate; and
(c)    Errors & Omissions insurance of $2,000,000 per claim and in the aggregate.
16.    Counterparts.  This Agreement may be executed simultaneously in any number of counterparts.  Each counterpart shall be deemed to be an original, and all such counterparts shall constitute one and the same instrument.  The parties hereto agree that this Agreement and signature pages may be transmitted between them by facsimile or by electronic mail and that faxed and PDF signatures may constitute original signatures and that a faxed or PDF signature page containing the signature (faxed, PDF or original) is binding upon the parties.

14

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

17.    Governing Law.  THE AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA, EXCEPT TO THE EXTENT PREEMPTED BY FEDERAL LAW, WITHOUT REGARD TO ITS CONFLICTS OF LAWS.
18.    WAIVER OF JURY TRIAL.  EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTION CONTEMPLATED HEREBY.
19.    Waiver.  No waiver, amendment, modification or termination of any provision of this Agreement shall be effective without the written concurrence of each party hereto, and any waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.
20.    Notices.  All notices, demands, instructions and other communications required or permitted under this Agreement must be in writing and will be deemed to have been duly given upon delivery or, in the case of a letter mailed by registered first class mail, postage prepaid, three days after deposit in the mail.  Unless otherwise specified in a notice sent in accordance with the provisions of this Section 23, notices, demands, instructions and other communications in writing will be given to the respective parties at their respective addresses listed on the signature page to this Agreement.
21.    Further Assurances.  Each of Servicer and Backup Servicer agrees to do and perform, from time to time, any and all acts and to execute any and all further instruments required or reasonably requested by the other parties hereto in order to effect more fully the purposes of this Agreement.
22.    Third Party Beneficiary.  Each Indemnified Party is an intended third party beneficiary of this Agreement and shall be entitled to enforce this Agreement as if it were a party hereto.
23.    Assignment; Successors and Assigns.  Neither Servicer nor Backup Servicer shall have the right to assign, in whole or in part, this Agreement without the prior written consent of the other party, which consent shall not be unreasonably withheld.  It is specifically understood and agreed that (i) any subcontracting of any functions by Backup Servicer shall not alter in any way any of Backup Servicer’s obligations or liabilities, or the rights of Servicer, under this Agreement and (ii) in the event Backup Servicer subcontracts obligations in accordance with this Section 26, Servicer shall not be required to (but may at its option) deal directly with any such subcontractor in pursuing or enforcing any right or remedy of Servicer under this Agreement.  Notwithstanding the first sentence of this Section 26, Servicer may (i) assign any or all of its rights and obligations under this Agreement to any parent, subsidiary or affiliate of Servicer without Backup Servicer’s consent, and the assignor and the assignee under such assignment shall both remain liable under this Agreement, or (ii) assign this Agreement, to a lender, trustee or collateral agent to secure a financing of those Serviced Assets, provided that Servicer shall remain liable under this Agreement.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.
24.    Integration.  This Agreement, including, without limitation, any Exhibits referred to herein and annexed hereto, constitute the entire agreement between the parties hereto with respect to the subject matter 

15

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

hereof.  There are no agreements, representations, warranties, promises, covenants, commitments or undertakings between the parties hereto other than those expressly set forth herein.  This Agreement supersedes all prior agreements, representations, warranties, promises, covenants, commitments or undertakings between the parties hereto, whether written or oral, with respect to the subject matter contained in this Agreement.
25.    No Petition.  To the fullest extent permitted by law, each of Backup Servicer and Servicer agrees that it shall not file, commence, join, or acquiesce in a petition or a proceeding that causes (a) the other party to be a debtor under any Debtor Relief Law or (b) a trustee, conservator, receiver, liquidator, or similar official to be appointed for the other party or any substantial part of any of its property.
 [Signature page follows]

16

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

IN WITNESS WHEREOF, each of the parties has duly executed this Agreement as of the date first written above.
	
					
	BACKUP SERVICER:
	 

	 
	 

	FIRST ASSOCIATES LOAN SERVICING, LLC
	 

	 
	 

	 
	 

	By:
	_________________________
	 

	Name:
	________________________
	 

	Title:
	________________________
	 

	 
	 

	Address:
	 

	15373 Innovation Drive, Suite 300
	 

	San Diego, CA  92128
	 

	Attention:  Laurence Chiavaro
	 

	Executive Vice President
	 

	 
	 

 

[SIGNATURE PAGE TO FIRST ASSOCIATES BACKUP SERVICING AGREEMENT (NOTE CHANNEL)]

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

	
				
	SERVICER:

	 

	PROSPER FUNDING LLC

	 

	 

	By:
	________________________   

	Name:
	David Kimball

	Title:
	Chief Executive Officer

	 

	Address:

	c/o Prosper Marketplace, Inc.
221 Main Street, Suite 300

	San Francisco, CA 94105

	Attention: General Counsel

    
    

[SIGNATURE PAGE TO FIRST ASSOCIATES BACKUP SERVICING AGREEMENT (NOTE CHANNEL)]

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

Schedule 1
Collection Agent Agreements
		
	1.
	Letter, dated as of May 31, 2016, by Prosper Marketplace, Inc. and accepted by I.C. System, Inc.

		
	2.
	Letter, dated as of May 17, 2016, by Prosper Marketplace, Inc. and accepted by Tritium Research, Inc.

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

Exhibit A
Information to be Confirmed by Backup Servicer
		
	1.
	The number and aggregate outstanding balance of Loans at the beginning of the collection period

		
	2.
	The number and principal balance of delinquent and defaulted Loans at the close of the collection period

		
	3.
	The number and aggregate outstanding balance of Loans at the close of the collection period

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

Exhibit B
Successor Servicing Fee
For any servicing period, a servicing fee for [***] equal to the product of (a) [***]%, (b) [***] and (c) a fraction, the numerator of which is the number of calendar days during such servicing period and the denominator of which is 365.
With respect to [***], a loan trailing fee (the “Loan Trailing Fee”) equal to the product of (a) [***]%, (b) [***] and (c) a fraction, the numerator of which is the number of calendar days in the month to which such payment relates and the denominator of which is the number of calendar days in the year that includes such month.

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

Exhibit C
Backup Servicing Fee
(a)    The backup servicing fee (the “Backup Servicing Fee”) to be billed to Servicer by Backup Servicer monthly in advance shall be equal to [***] for such month.  Such Backup Servicing Fee shall no longer accrue in the event Backup Servicer becomes Successor Servicer with respect to the Serviced Assets.
Legal and any due diligence requested by Servicer are additional, and legal fees incurred by Backup Servicer in connection with entering into this Agreement.  
(b)    Consulting time provided by Backup Servicer to Servicer will be billed at $[***] per hour per person, or at the applicable rates of Backup Servicer as of such date, for reasonable time expended at the request of (and with the approval of), or the initiation of, Servicer.  Servicer agrees to pay such reasonable fees within thirty (30) days of receipt of an invoice from Backup Servicer.
(c)    Reasonable and documented out-of-pocket expenses incurred by Backup Servicer in its performance of its duties hereunder, including, but not limited to, expenses incurred for travel for site visits, due diligence, and transfer of servicing, in each case, to the extent approved by Servicer in advance.
(d)    The fees and expenses set forth herein are stated in U.S. Dollars, and all invoicing and payments hereunder shall also be in U.S. Dollars.  Billing is in advance and the Servicer shall pay outstanding invoices within thirty (30) days after receipt of an invoice for the same or incur interest charges of 1.5% per month on any outstanding balance or the maximum allowable by law, whichever is less.  All such payments will be made with reference to “FACRN5844”.

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

Exhibit D
Successor Servicing Agreement

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

 
 
 
SUCCESSOR LOAN SERVICING AGREEMENT 
 
DATED AS OF ___________, 20__ 
 
BETWEEN 
 
FIRST ASSOCIATES LOAN SERVICING, LLC, 
 
AS SERVICER, 
 
AND 
 
[NAME OF INDENTURE TRUSTEE],
AS INDENTURE TRUSTEE
 
 
(UNSECURED CONSUMER LOANS) 
 
 
 
 

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

This SUCCESSOR LOAN SERVICING AGREEMENT, dated as of ___________, 20__ (the “Effective Date”), is made by and between First Associates Loan Servicing, LLC, a Delaware limited liability company, as successor servicer (together with its successors and permitted assigns, “Servicer”), and [name of indenture trustee], a [state of formation and form of entity] (together with its successors and permitted assigns, “Indenture Trustee”).
RECITALS
WHEREAS, Servicer, Prosper Funding LLC, a Delaware limited liability company (“PFL”), and Prosper Marketplace, Inc., a Delaware corporation, entered into a Backup Servicing Agreement, dated as of December __, 2016 (the “Backup Servicing Agreement”);
WHEREAS, from time to time, PFL purchases, without recourse, unsecured consumer loans and/or related participations (“Loans”) from WebBank, a Utah chartered industrial bank, and/or any other bank origination partner of Prosper (collectively, “Bank”);
WHEREAS, PFL has issued Borrower Payment Dependent Notes that are entirely dependent for payment on payments received on the corresponding Loan;
WHEREAS, Indenture Trustee is indenture trustee under that certain Amended and Restated Borrower Payment Dependent Notes Indenture, dated as of January 22, 2013 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Indenture”), by and between PFL and Wells Fargo Bank, National Association;
WHEREAS, Indenture Trustee has elected to appoint Servicer as, and Servicer has agreed to become, Successor Servicer (as defined in the Backup Servicing Agreement) to service the Loans and the Borrower Payment Dependent Notes, and Servicer and Indenture Trustee desire to set forth the terms and conditions under which Servicer will service such Loans and Borrower Payment Dependent Notes.
NOW, THEREFORE, in consideration of the mutual agreements hereinafter set forth, and for other good and reasonable consideration, the receipt and adequacy of which is hereby acknowledged, Servicer and Indenture Trustee hereby agree as follows:
ARTICLE I 
DEFINITIONS
Section 1.01.    Definitions.  The following terms are defined as follows:
“Accepted Servicing Practices” means, with respect to each Loan, the loan servicing practices and procedures set forth on Exhibit B, together with any amendments or other modifications thereto made by Servicer from time to time.
“Affiliate” means, with respect to any Person, any other Person directly or indirectly controlling, controlled by or under common control with, such Person.  As used in this definition of Affiliate, the term “control” means the power, directly or indirectly, to direct or cause the direction of the management and policies of a Person, whether through ownership of such Person's voting securities, by contract or otherwise, and the terms “affiliated”, “controlling” and “controlled” have correlative meanings.
“Agreement” means this Successor Loan Servicing Agreement, including all exhibits and schedules attached hereto or delivered in connection herewith, as such agreement may be amended, restated, amended and restated, supplemented or otherwise modified from time to time.

SUCCESSOR LOAN SERVICING AGREEMENT – PAGE 1

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

“Ancillary Fees” means any insufficient fund charges and other administrative fees, including, without limitation, extension processing fees, NSF fees, payment processing fees and other similar fees imposed in relation to servicing activities in the amounts consistent with Applicable Law, the Loan Documents and this Agreement, but in all event not including or duplicative of (i) Servicing Fees, (ii) Loan Trailing Fees, (iii) origination fees, (iv) payments of principal and interest, (v) payments of default interest or late payment fee or (vi) Collection Fees.  Servicer shall be entitled to receive all Ancillary Fees collected on the Loans, which amounts will be paid over to Servicer from proceeds of the related Loans.
“Applicable Laws” means all federal, state and local laws, statutes, rules, regulations, court orders and decrees, administrative orders and decrees, and other legal requirements of any and every conceivable type applicable to Servicer’s servicing any Loan or Borrower Payment Dependent Note, and all requirements of any Regulatory Authority having jurisdiction over Servicer, as any such laws, statutes, regulations, orders or requirements may be amended and in effect from time to time during the term of this Agreement.
“Bankruptcy Loan” means any Charged Off Loan for which voluntary proceedings under Chapter 13 of the Bankruptcy Code have been commenced by the applicable Borrower.
“Borrower” means, with respect to any Loan, each of the borrower of such Loan and each other obligor (including any co-signor or guarantor) of the payment obligation for such Loan.
“Borrower Payment Dependent Notes” means the borrower payment dependent notes issued and sold by PFL through its Retail Platform. 
“Business Day” means any day other than (i) a Saturday, (ii) a Sunday, (iii) any day that is a legal holiday under the laws of the State of California or the State of Utah, or (iv) any day on which a bank located in the State of California or the State of Utah is authorized or permitted to close for business.
“Charged Off Loan” means any Loan (i) that has been due for at least 120 consecutive days or (ii) that Servicer otherwise deems uncollectible, in accordance with the Servicing Standard.
“Code” means the Internal Revenue Code of 1986, as amended.
“Collection Agent” means any Person to whom Servicer transfers servicing and collection activities for a Delinquent Loan or Charged Off Loan; provided, that such Person is included in the list of collection agents attached hereto as Schedule 1, which Schedule may be amended, restated, amended and restated, supplemented or otherwise modified by Servicer from time to time upon written notice to Indenture Trustee.
“Collection Fees” means any fees or charges payable to a Collection Agent in connection with its servicing or collection efforts with respect to any Delinquent Loan or Charged Off Loan.
“Confidential Information” means:
(i)    information regarding Discloser’s customers, capital structure, financial condition and results of operations, financial and risk models, projections, loss and return estimates, compliance and risk management systems, loan pricing, customer fees and charges, vendor pricing, organizational structure, employee compensation and benefits, stock and other deferred compensation plans, employee and stockholder agreements, as well as non-public information regarding pending or threatened litigation or regulatory matters involving Discloser;
(ii)    information regarding Discloser’s inventions, discoveries, developments, improvements, processes, systems, methods, devices, patents, patent applications, trademarks, intellectual property, know-how, trade secrets, instruments, materials, products, programs, 

SUCCESSOR LOAN SERVICING AGREEMENT – PAGE 2

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

techniques, designs, research/development activities and plans, data, specifications, computer programs/code (object or source), costs of production, promotional methods, marketing plans/strategies, clinical plans, business opportunities, vendors, and customer lists;
(iii)    with respect to Indenture Trustee, as Discloser, any Customer NPPI;
(iv)    this Agreement and any other documents, instruments or agreements entered into or delivered in connection herewith or therewith;
(v)    information: (A) that is marked “Confidential”, “Proprietary” or in some similar way; (B) that Discloser identifies as Confidential Information when disclosed or within a reasonable time afterwards; or (C) that Recipient knows or should know to be confidential or proprietary to Discloser; and   
(vi)     any third party information with respect to which Discloser is subject to restrictions on disclosure or use based on the confidential nature of such information; provided, however, that “Confidential Information” does not include any information: 
(A)    that was publicly known or made generally available to the public prior to its disclosure hereunder;
(B)    that becomes publicly known or is made generally available to the public following its disclosure hereunder through no wrongful act or omission of Recipient or anyone to whom Recipient has disclosed such information; 
(C)    that Recipient rightfully possessed without any duty of confidentiality prior to its disclosure hereunder; 
(D)    that was independently developed by Recipient without use of or reference to any information received by or on behalf of Recipient hereunder; or
(E)    that Recipient rightfully obtained from a third party, where such third party was not subject to any restrictions on disclosure with respect to such information.
“Customer NPPI” means any Non-Public Personal Information of any actual or potential Borrower or other customer of Servicer.
“Debtor Relief Laws” means any of: (i) the United States Bankruptcy Code and (ii) all other applicable liquidation, conservatorship, bankruptcy, moratorium, arrangement, receivership, insolvency, reorganization, suspension of payments, adjustment of debt, marshalling of assets or similar debtor relief laws of the United States, any state or any foreign country from time to time in effect affecting the rights of creditors generally. 
“Delinquent Loan” means a Loan that is more than 15 days past due.
“Deposit Account” means an account specified by Indenture Trustee which is owned by Indenture Trustee or maintained for the benefit of Indenture Trustee.
“Discloser” has the meaning set forth in Section 6.01. 
“Due Date” means the day of the calendar month on which the Monthly Payment is due on a Loan, exclusive of any grace period.

SUCCESSOR LOAN SERVICING AGREEMENT – PAGE 3

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

“Extraordinary Servicing Activities” means activities relating to the realization of Proceeds, the enforcement of the obligations of Borrowers or the defense of the rights of the owners of Loans that are (i) not identified as Accepted Servicing Practices and (ii) are (A) outside of the scope of servicing activities undertaken by Servicer or its Affiliates in the ordinary course of servicing consumer loans for its or their own account or for the account of their respective customers, clients, assigns and transferees, or (B) are reasonably likely to create or result in Materially Increased Liabilities, including the appearance in, initiation of or prosecution or defense of legal actions, arbitral proceedings, bankruptcy proceedings or similar adversarial proceedings, or the preparation of or response to pleadings, filings, motions, discovery requests, subpoenas or other similar activities ancillary thereto.
“FATCA Provisions” means Sections 1471 through 1474 of the Internal Revenue Code.
“FBO Collection Account” means a deposit account segregated from Servicer’s or its Affiliates’ own funds and general assets maintained by Servicer at Wells Fargo Bank, National Association for the benefit of Indenture Trustee and other purchasers of loans from PFL, or such other additional or replacement account or accounts segregated from Servicer’s or its Affiliates’ own funds and general assets as may from time to time be maintained by Servicer for the benefit of Indenture Trustee.
“FTC” means the Federal Trade Commission.
“Indemnified Parties” has the meaning set forth in Section 5.03.
“Indenture Trustee” has the meaning set forth in the recitals to this Agreement.
“Indenture Trustee Indemnified Parties” has the meaning set forth in Section 4.03(a).
“Insolvency Event” means, with respect to any Person, if any of the following events shall occur: (i) such Person shall file a petition or commence a Proceeding (A) to take advantage of any Debtor Relief Law or (B) for the appointment of a trustee, conservator, receiver, liquidator or similar official for or relating to such Person or all or substantially all of its property, or for the winding up or liquidation of its affairs, (ii) such Person shall consent or fail to object to any such petition filed or Proceeding commenced against or with respect to it or all or substantially all of its property, or any such petition or Proceeding shall not have been dismissed or stayed within sixty 60 days of its filing or commencement, or a court, agency or other supervisory authority with jurisdiction shall not have decreed or ordered relief with respect to such petition or Proceeding, (iii) such Person shall admit in writing its inability to pay its debts generally as they become due, (iv) such Person shall make an assignment for the benefit of its creditors, (v) such Person shall voluntarily suspend payment of its obligations, or (vi) such Person shall take any action in furtherance of any of the foregoing.
“Liquidated Loan” means a Loan that has been liquidated, whether by way of a payment in full, a disposition, a refinance, a compromise, a charge-off as a Charged Off Loan or any other means of liquidation of such Loan.
“Liquidation Proceeds” means cash proceeds, if any, received in connection with the liquidation of a Liquidated Loan.
“Loan” means any loan for which PFL has issued a Borrower Payment Dependent Note. 
“Loan Confidential Information” means any Confidential Information contained in a Servicing File.
“Loan Document” means any promissory note or other document executed by a Borrower to evidence the indebtedness of each Borrower under a Loan and setting forth the terms of such indebtedness; it being 

SUCCESSOR LOAN SERVICING AGREEMENT – PAGE 4

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

understood and agreed that each such document is created and stored in electronic form only and, therefore, that no single original of any such document exists.
“Loan Modification” means, with respect to any Loan, any waiver, modification or variance of any term of any Loan or any consent to the postponement of strict compliance with any such term or any other grant of an indulgence or forbearance to the related Borrower.
“Loan Trailing Factor” means [***]%. 
“Loan Trailing Fee” means, with respect to a Loan, a fee equal to the product of (a) the Loan Trailing Factor, (b) [***] and (c) a fraction, the numerator of which is the number of calendar days in the month to which such payment relates and the denominator of which is the number of calendar days in the year that includes such month.
“Material Adverse Change” means, with respect to a Person, any material adverse change in the business, financial condition, operations, properties or prospects of such Person.
“Material Adverse Effect” means, with respect to a Person, (a) a Material Adverse Change with respect to such Person or any of its Affiliates taken as a whole; (b) a material impairment of the ability of such Person to perform under this Agreement (which impairment cannot be timely cured, to the extent a cure period is applicable); or (c) a material adverse effect upon the legality, validity, binding effect or enforceability of this Agreement against such Person.
“Materially Increased Liabilities” means any imposition on Servicer of: (i) obligations or duties that are materially different in scope or materially more burdensome (economically or operationally) than Servicer’s express obligations and duties under this Agreement, including in relation to the manner of servicing Loans and Borrower Payment Dependent Notes, reporting (including reporting under the Securities and Exchange Act of 1934 (as amended)), audits and inspections, collections or cash management; (ii) obligations or liabilities in relation to the accuracy or completeness of offering materials in relation to securities offerings or sales by Persons that are not Affiliates of Servicer; (iii) materially increased risk of being subject to or being required to appear in or defend adversarial proceedings initiated by third Persons or investigations or actions on the part of any Regulatory Authority; or (iv) materially increased risk of reputational harm. 
“Monthly Payment” means the scheduled monthly payment of principal and/or interest on a Loan.
“Net Proceeds” means, with respect to a Loan on any date of determination, the Proceeds less any applicable Servicing Compensation, Loan Trailing Fees and Collection Fees earned and unpaid to date.
“Non-Public Personal Information” has the meaning ascribed to such term in the FTC’s Rule regarding Privacy of Consumer Financial Information (16 C.F.R. Part 313).
“Party” means either Servicer or Indenture Trustee and “Parties” means all of Servicer and Indenture Trustee.
“Pass-through Expenses” means third-party legal expenses incurred by Servicer.
“Payment Date” means a date on which any payment of principal and/or interest on a Loan is acknowledged to be paid under the terms of such Loan.
“Person” means any individual, corporation (including a business trust), partnership, joint venture, association, bank, limited liability company, joint-stock company, estate, trust, unincorporated organization, government or any agency or political subdivision thereof, or any other entity. 

SUCCESSOR LOAN SERVICING AGREEMENT – PAGE 5

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

“Portfolio Interest Exemption” means the exemption from U.S. tax under Section 871(h) or Section 881(c) of the Internal Revenue Code.
“Principal Prepayment” means any payment or other recovery of principal on a Loan that is received in advance of its scheduled Due Date.
“Privacy Laws” has the meaning set forth in Section 6.03(a).
“Proceeding” means any suit in equity, action at law or other judicial or administrative proceeding. 
“Proceeds” means, with respect to a Loan, (i) all payments on account of principal on such Loan, including all Principal Prepayments; (ii) all payments on account of interest and fees (including Collection Fees) on such Loan; (iii) all Liquidation Proceeds and other recoveries; and (iv) any other payments on or proceeds of such Loan, including those received or recovered by or through Servicer, any Subcontractor or any Collection Agent.
“Promissory Note” means, with respect to each Loan, the promissory note or other record or evidence of the indebtedness of a Borrower.
“Recipient” has the meaning set forth in Section 6.01. 
“Regulatory Authority” means any federal, state or local regulatory agency or other governmental agency, department, court, commission, board, bureau, instrumentality or political subdivision thereof, or any entity or officer exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to any government or any court, in each case, having jurisdiction over a Party, any Loan, any Borrower Payment Dependent Note or any Borrower.
“Regulatory Conflict” has the meaning set forth in Section 3.01(d).
“Retail Platform” means the online credit platform owned and operated by PFL, and any of its related systems and data for the purchase of Borrower Payment Dependent Notes by retail investors. 
“Servicer” has the meaning set forth in the preamble to this Agreement.
“Servicer Indemnified Parties” has the meaning set forth in Section 4.03(b).
“Servicer Event of Default” has the meaning set forth in Section 7.01.
“Servicing Compensation” means the compensation payable to Servicer hereunder consisting of (a) the Servicing Fees, (b) the Ancillary Fees and (c) the Pass-through Expenses.
“Servicing Fee” has the meaning set forth in Exhibit A.
“Servicing Fee Rate” means, with respect to any Loan, subject to the provisions of Section 3.06(b), the “Servicing Fee Rate” set forth in Exhibit A.
“Servicing File” means, with respect to any Loan, the documents, files and records held or maintained by or on behalf of Servicer pertaining specifically to such Loan or the servicing thereof, including, without limitation, computer files, data tapes, books, records, electronic copies of documents, notes and Loan Documents relating to such Loan; it being understood and agreed that all of the items that constitute a Servicing File only exist in electronic form and, therefore, that no single original of any such item exists.

SUCCESSOR LOAN SERVICING AGREEMENT – PAGE 6

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

“Servicing Period” means, with respect to any Loan, any period beginning on the immediately preceding Payment Date (or in the case of the first such period, the Effective Date) and ending on the day immediately preceding such Payment Date. 
“Servicing Rights” means, with respect to any Loan, the rights and interests to service and administer such Loan and the responsibility for performing the servicing functions for such Loan.
“Servicing Standard” has the meaning set forth in Section 3.01(a). 
“Servicing Transfer Costs” means all reasonable out-of-pocket costs and expenses incurred in connection with the transfer of servicing, including, without limitation, any reasonable out-of-pocket costs or expenses associated with the complete transfer of all Servicing Files and other servicing data and information, and the completion, correction or manipulation of such servicing data and information as may be reasonably required by Indenture Trustee to correct any errors or insufficiencies in the Servicing File or such other data and information that prevent Indenture Trustee (or any successor servicer) from servicing the Loans in a manner that complies with the Accepted Servicing Practices, but not including overhead or similar internal costs.
“Subcontractor” means, subject to the terms hereof, any vendor, third party service provider or other Person that is not responsible for the overall servicing (as “servicing” is commonly understood) of Loans and Borrower Payment Dependent Notes but performs one or more discrete functions with respect to Loans and Borrower Payment Dependent Notes under the direction or authority of Servicer.
“U.S. Financial Institution” means a U.S. Person that is a “financial institution”, as such term is defined in 26 C.F.R. 1.1.165-12(c)(1)(iv). 
“U.S. Person” means a “United States person”, as such term is defined in Section 7701(a)(30) of the Internal Revenue Code. 
Section 1.02.    Rules of Construction.
(a)    As used in this Agreement: (i) all references to the masculine gender shall include the feminine gender (and vice versa); (ii) all references to “include,” “includes,” or “including” shall be deemed to be followed by the words “without limitation”; (iii) references to any law or regulation refer to that law or regulation as amended from time to time and include any successor law or regulation; (iv) references to another agreement, instrument or other document means such agreement, instrument or other document as the same may be amended, restated, amended and restated, supplemented or otherwise modified from time to time in accordance with the terms thereof; (v) references to “dollars” or “$” shall be to United States dollars unless otherwise specified herein; (vi) unless otherwise specified, all references to days, months or years shall be deemed to be preceded by the word “calendar”; (vii) all references to “quarter” shall be deemed to mean calendar quarter; and (viii) unless otherwise specified, all references to an article, section, subsection, exhibit or schedule shall be deemed to refer to, respectively, an article, section, subsection, exhibit or schedule of or to this Agreement.
(b)    The fact that any Party provides approval or consent shall not mean or otherwise be construed to mean that: (i) either Party has performed any due diligence with respect to the requested or required approval or consent, as applicable; (ii) either Party agrees that the item or information for which the other Party seeks approval or consent complies with any Applicable Laws; (iii) either Party has assumed the other Party’s obligations to comply with all Applicable Laws arising from or related to any requested or required approval or consent; or (iv) except as otherwise expressly set 

SUCCESSOR LOAN SERVICING AGREEMENT – PAGE 7

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

forth in such approval or consent, either Party’s approval or consent impairs in any way the other Party’s rights or remedies under the Agreement, including indemnification rights for any failure to comply with all Applicable Laws.
ARTICLE I. 
ENGAGEMENT OF SERVICER TO PERFORM SERVICING
Section 2.01.    Contract for Servicing; Possession of Servicing Files. 
(a)    From and after the Effective Date and until the earlier of: (i) such date as such Loans become a Liquidated Loan; or (ii) this Agreement is terminated in accordance with Section 7.01, Indenture Trustee appoints and contracts with Servicer as an independent contractor, subject to the terms of this Agreement, for the servicing of such Loan and the related Borrower Payment Dependent Notes.  Servicer is the owner of the Servicing Rights relating to each Loan serviced by Servicer hereunder, subject to Indenture Trustee’s rights hereunder with respect to such Servicing Rights in the event of Servicer’s default hereunder.
(b)    Servicer shall establish and maintain a Servicing File with respect to each Loan and Borrower Payment Dependent Note in order to service such Loan and Borrower Payment Dependent Note pursuant to this Agreement.  Ownership of such Servicing File shall vest in Indenture Trustee, and the Servicing File shall be retained and maintained, in trust, by Servicer in a custodial capacity only; provided, however, that Indenture Trustee acknowledges and agrees that Servicer will retain electronic copies of: (i) the Loan Documents for such Loan as well as (ii) any other items, documents, data or information that comprise such Servicing File; provided, further, that subject to Article VI, Servicer will retain the right (A) to use and permit its Affiliates to use the same in the performance of its obligations hereunder and in the conduct of its and its Affiliates’ businesses generally (subject to the confidentiality provisions of this Agreement), including, without limitation, to facilitate the acquisition and sale of consumer loans to persons other than Indenture Trustee, and to fulfill the reporting obligations of Servicer and its Affiliates with respect to any such sales, and (B) to use, deliver or release copies of any such data, information or documents, and permit its Affiliates to use, deliver or release copies thereof, to its or their accountants, counsel or advisors, to regulators or other Regulatory Authorities of competent jurisdiction, or to other Persons to the extent necessary and appropriate to respond to subpoenas or other appropriate demands therefor in connection with any action, proceeding, arbitration or investigation in any forum of or before any Regulatory Authority.  Servicer shall mark its records to reflect ownership of the Loans and Borrower Payment Dependent Notes by Indenture Trustee.  Except as permitted under this Section 2.01(b), Servicer shall release from its custody the contents of any Servicing File retained by it only to Indenture Trustee or such other Persons as Indenture Trustee may authorize.
(c)    If any error, inaccuracy, omission or incorrect or non-standard practice or procedure (collectively “Errors”) exist in any materials delivered to Servicer by the prior servicer of the Loans and Borrower Payment Dependent Notes which cause Servicer to make or continue any Errors (collectively, “Continued Errors”), Servicer shall have no liability for such Continued Errors; provided, however, that Servicer, agrees to use its commercially reasonable efforts to prevent Continued Errors.  In the event that Servicer becomes aware of Errors or Continued Errors, it shall use its commercially reasonable efforts to reconstruct and reconcile such data and to prevent future Continued Errors.  Servicer shall be entitled to recover its reasonable costs thereby expended.
Section 2.02.    Use of Subcontractors.
Indenture Trustee acknowledges that Servicer may use one or more Subcontractors to assist or facilitate Servicer’s duties hereunder in connection with the servicing of the Loans and Borrower Payment 

SUCCESSOR LOAN SERVICING AGREEMENT – PAGE 8

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

Dependent Notes; provided, that the use of a Subcontractor shall not relieve Servicer of any of its obligations hereunder.  Servicer shall remain responsible for any and all acts or omissions of its Subcontractors to the same extent as if such acts or omissions were taken or omitted by Servicer directly.  
Section 2.03.    Assistance and Cooperation of Indenture Trustee.
If any actions of Indenture Trustee are necessary or appropriate in connection with the servicing and administration of the Loans and Borrower Payment Dependent Notes hereunder, then upon the request of Servicer, Indenture Trustee shall use its commercially reasonable efforts to perform such actions in a timely manner and to cooperate with and assist Servicer in connection with such actions; provided, however, that Indenture Trustee shall not contact any Borrower, other than in connection with an audit, without the prior written consent of Servicer.  
ARTICLE II. 
Servicing of Loans AND BORROWER PAYMENT DEPENDENT NOTES
Section 3.01.    Servicer to Service.  
(a)    Servicer, as an independent contractor, shall service and administer each Loan from and after the Effective Date with reasonable care using that degree of skill and attention that is (i) deemed commercially reasonable in the unsecured consumer loan servicing industry and (ii) no less than the degree of skill and attention that it uses in relation to its servicing and administration of unsecured consumer loans for the account of its Affiliates or its or their other customers, clients, assigns and transferees, and, in all cases in accordance with the terms of this Agreement, the Accepted Servicing Practices and Applicable Laws (such standard of care being, the “Servicing Standard”), and Servicer shall have full power and authority, acting alone or through the utilization of Subcontractors, to do any and all things in connection with such servicing and administration as limited by the Servicing Standard.  
(b)    Servicer may grant, permit or enter into any Loan Modification for any Loan, provided, that such Loan Modification (i) is in accordance with the Servicing Standard and (ii) is determined by Servicer at the time of such modification to be a practical manner to obtain a reasonable recovery from such Loan based upon its prior servicing experience for similar unsecured consumer loans.  
(c)    Without limiting the generality of the foregoing, Servicer is hereby authorized and empowered to execute and deliver on behalf of itself and Indenture Trustee, all notices or instruments of satisfaction, cancellation or termination, or of partial or full release, discharge and all other comparable instruments, with respect to the Loans and Borrower Payment Dependent Notes; provided, however, that Servicer shall not be entitled to release, discharge, terminate or cancel any Loan or the related Loan Documents unless (i) Servicer shall have received payment in full of all principal, interest and fees owed by the Borrower related thereto, or (ii) in the case of a Delinquent Loan, Servicer accepts a short pay or reduced payment of full principal, interest and fees owed on such Loan in accordance with the Servicing  Standard.  If reasonably required by Servicer, Indenture Trustee shall furnish Servicer with any powers of attorney and other documents reasonably necessary or appropriate to enable Servicer to carry out its servicing and administrative duties under this Agreement and Servicer shall indemnify and hold Indenture Trustee harmless for any costs, liabilities or expenses incurred by Indenture Trustee in connection with any use of such power of attorney by Servicer or its agents in breach of this Agreement.
(d)    Other than the Pass-through Expenses, Servicer shall pay out of its own funds all expenses incurred in connection with its servicing activities hereunder, including, without limitation, expenses related to enforcement of the Loans, the reasonable fees and expenses of its outside counsel and independent 

SUCCESSOR LOAN SERVICING AGREEMENT – PAGE 9

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

accountants and all other fees and expenses; provided, however, that Servicer will not be required to undertake any Extraordinary Servicing Activities unless it shall have received assurances of reimbursement for and indemnification reasonably acceptable to it in relation to the costs, expenses and liabilities attendant to the performance thereof.
(e)    With respect to the Borrower Payment Dependent Notes, Servicer shall solely (i) make deposits in the FBO Collection Account as set forth in Section 3.03(b), (ii) provide Indenture Trustee, on a monthly basis, a report of funds collected in the FBO Collection and a file reporting ownership of each Loan for which proceeds were collected based on the Loan ownership information provided by the prior servicer of the Loans, and (iii) provide portfolio reporting on a monthly basis to Indenture Trustee.  Indenture Trustee shall remit payment to the holders of Borrower Payment Dependent Notes with respect to the Borrower Payment Dependent Notes and Servicer shall have no liability with respect to such payments.  Any reporting regarding payments made with respect to the Borrower Payment Dependent Notes shall be made by Indenture Trustee.
Section 3.02.    Collection and Liquidation of Loans.  
(a)    Collection of Payments.  Continuously from the Effective Date until the date each Loan becomes a Liquidated Loan or otherwise ceases to be subject to this Agreement, in accordance with the Servicing Standard, Servicer shall use commercially reasonable efforts to collect all Monthly Payments and any other payments due under each of the Loans when the same shall become due and payable.  
(b)    Loss Mitigation.  With respect to any Loan, in accordance with the Servicing Standard, Servicer shall use commercially reasonable efforts to realize upon Loans in such a manner that reasonably attempts to maximize the receipt of principal and interest, including pursuing any Loan Modification pursuant to Section 3.01(b) or pursuing other loss mitigation or other default recovery actions in accordance with the Servicing Standard.  
(c)    Charged Off Loans and Delinquent Loans.  Promptly following any Loan becoming a Charged Off Loan, Servicer shall charge off that Loan (such date, a “Charge Off Date”).  Subject to the Servicing Standard, Servicer may transfer the servicing and collection activities for any Delinquent Loan or Charged Off Loan to a Collection Agent, and Servicer shall be relieved of its ongoing servicing and collection obligations hereunder with respect to such Loan (however, if and when all past due amounts are received with respect to any Delinquent Loan, Servicer shall resume its servicing and collection obligations with respect to such Loan), except as to the obligation to handle all Proceeds of such Loans in accordance with Section 3.02(d) below.  To the extent Servicer receives information from a Collection Agent regarding any Charged Off Loans or Delinquent Loans, Servicer shall include such information in the reports regarding the Loans that are required to be delivered under this Agreement.  Neither Servicer nor any Collection Agent shall have the right to sell, assign, transfer, liquidate or otherwise dispose of any Charged Off Loan without the prior written consent of Indenture Trustee except as specifically permitted under this Section 3.02(c).
(d)    Recovery of Charged Off Loans and Bankruptcy Loans.  With respect to any Charged Off Loan or Bankruptcy Loan, Servicer and the applicable Collection Agents shall be permitted to accept a payment from the related Borrower of an amount less than outstanding principal balance of such Loan in final satisfaction of such Loan; provided, that (i) such Borrower is unable to pay or settle for the outstanding principal balance of such Loan in full, as reasonably determined by Servicer or the applicable Collection Agent and (ii) Servicer shall (and shall cause the applicable Collection Agent to) review any such partial payment agreement every 90 days in order to re-evaluate the Borrower’s financial position and ability to pay the principal balance in full and may reduce or increase any such partial payment agreement.  

SUCCESSOR LOAN SERVICING AGREEMENT – PAGE 10

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

Section 3.03.    Deposits to Accounts.  
(a)    Servicer shall direct or otherwise cause the applicable Borrower of each Loan to make all payments directly to the FBO Collection Account, and shall direct each Collection Agent to deposit all Proceeds of any Loan received by such Collection Agent directly to the FBO Collection Account.  With respect to any Proceeds deposited in the FBO Collection Account, Servicer will cause the applicable Net Proceeds to be remitted to the Deposit Account within approximately two (2) Business Days of deposit into the FBO Collection Account.  
(b)    Without limiting the foregoing, to the extent any Proceeds are received by Servicer, other than remitted directly to the FBO Collection Account, Servicer will cause such Proceeds to be deposited into the FBO Collection Account as promptly as is reasonably practicable and in any event within two (2) Business Days of receipt thereof.
(c)    Indenture Trustee shall be responsible for all fees and charges imposed by Wells Fargo Bank, National Association, or any successor bank, with respect to the FBO Collection Account or the Deposit Account, which fees and charges shall expressly include but not be limited to account fees, money transfer fees and any legal or other fees associated with entering into any control or other agreements covering the FBO Collection Account or the Deposit Account.  Wells Fargo Bank, National Association, may apply any fees and charges incurred with respect to the FBO Collection Account or the Deposit Account against any balances in the FBO Collection Account or the Deposit Account.
Section 3.04.    Credit Reporting.  
Servicer shall accurately and fully furnish, in accordance with the Fair Credit Reporting Act and its implementing regulations as well as Servicer’s own policies and practices, accurate and complete information (e.g., favorable and unfavorable) on its borrower credit files to each of the following credit repositories: Trans Union, LLC and Experian Information Solutions, Inc.  
Section 3.05.    Servicing Compensation.  
(a)    Payment of Fees.  Servicer and Indenture Trustee acknowledge and agree that, as consideration to Servicer for servicing the Loans and Borrower Payment Dependent Notes subject to this Agreement, Indenture Trustee shall be responsible for paying Servicer the Servicing Fee, the Loan Trailing Fee and any Ancillary Fee for each Loan subject to this Agreement during any month or part thereof to the extent Servicer has not netted such Servicing Fees, the Loan Trailing Fee or Ancillary Fee from Proceeds remitted by a Borrower or a Collection Agent to the FBO Collection Account.    
(b)    Servicing Fee Rate.   The Servicing Fee Rate shall not be subject to change with respect to any Loan after the Effective Date thereof.  The parties hereto acknowledge that the Servicing Fee Rate applicable to any Loan as of the date of this Agreement is one percent (1%) per annum.
ARTICLE III. 
Representations, Warranties and covenants
Section 4.01.    Representations and Warranties of Servicer.  
As a condition to the consummation of the transactions contemplated hereby, as of the Effective Date, Servicer hereby makes the following representations and warranties to Indenture Trustee:

SUCCESSOR LOAN SERVICING AGREEMENT – PAGE 11

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

(a)    Servicer is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware and has all licenses necessary to carry on its business as now being conducted, and is licensed, qualified and in good standing in each state where the laws of such state require licensing or qualification in order to conduct business of the type conducted by Servicer, except to the extent that the failure to obtain or maintain any such license would not reasonably be expected to have a Material Adverse Effect with respect to Servicer, and in any event Servicer is in compliance with all Applicable Laws to the extent necessary to ensure the enforceability of the terms of this Agreement and its ability to perform its obligations hereunder. 
(b)    Servicer has the full limited liability company power and authority to execute and deliver this Agreement and to perform in accordance herewith; the execution, delivery and performance of this Agreement (including all instruments of transfer to be delivered pursuant to this Agreement) by Servicer, and the consummation of the transactions contemplated hereby have been duly and validly authorized; this Agreement evidences the valid, binding and enforceable obligation of Servicer (except as such enforceability  may be limited by applicable bankruptcy, insolvency and other similar laws affecting creditors’ rights generally and by general principles of equity) and all requisite limited liability company action has been taken by Servicer to make this Agreement valid and binding upon Servicer in accordance with its terms.
(c)    Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated by this Agreement (assuming receipt of all necessary consents), nor compliance with its terms and conditions, (i) will result in the creation or imposition of any lien, charge or encumbrance of any nature upon the Loans or the Borrower Payment Dependent Notes, or (ii) conflicts with or results in the breach of, or constitutes a default under, any Loan or any material contract, agreement or other instrument to which Servicer is a party or which may be applicable to Servicer or its assets.
(d)    No consent, approval, license, registration, authorization or order of any Regulatory Authority is required for the execution, delivery and performance by Servicer of, or compliance by Servicer with, this Agreement, including the servicing of each Loan and Borrower Payment Dependent Note hereunder, or if required, such consent, approval, license, registration, authorization or order has been obtained prior to the related Effective Date, in each case except to the extent that the failure to obtain any such consent, approval, license, registration, authorization or order would not reasonably be expected to have a Material Adverse Effect with respect to Servicer or adversely affect the validity, enforceability or collectability of the Loans or the Borrower Payment Dependent Notes.
(e)    There are no judgments, proceedings or investigations pending against Servicer or, to Servicer’s knowledge, threatened against Servicer, before any Regulatory Authority having jurisdiction over Servicer or its properties: (i) asserting the invalidity of this Agreement; (ii) seeking to prevent the consummation of any of the transactions contemplated by this Agreement; or (iii) seeking any determination or ruling that would reasonably be expected to have a Material Adverse Effect with respect to Servicer.
(f)    Servicer is solvent and no voluntary or involuntary bankruptcy petition has been commenced by or against Servicer, nor has Servicer made an offer or assignment or compromise for the benefit of creditors and Servicer will not be rendered insolvent by the consummation of the transactions contemplated hereby. 
Section 4.02.    Representations, Warranties and Covenants of Indenture Trustee.  
As a condition to the consummation of the transactions contemplated hereby, Indenture Trustee hereby makes the following representations and warranties to, and covenants with, Servicer:

SUCCESSOR LOAN SERVICING AGREEMENT – PAGE 12

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

(a)    Indenture Trustee is duly organized, validly existing and in good standing under the laws of the jurisdiction in which it was formed and has all licenses necessary to carry on its business as now being conducted, and is licensed, qualified and in good standing in each state where the laws of such state require licensing or qualification in order to conduct business of the type conducted by Indenture Trustee, except to the extent that the failure to obtain or maintain any such license would not reasonably be expected to have a Material Adverse Effect with respect to Indenture Trustee, and in any event Indenture Trustee is in compliance with all Applicable Law to the extent necessary to ensure the enforceability of the terms of this Agreement, and its ability to perform its obligations hereunder. 
(b)    Indenture Trustee has the full power and authority to execute and deliver this Agreement and to perform in accordance herewith; the execution, delivery and performance of this Agreement by Indenture Trustee, and the consummation of the transactions contemplated hereby have been duly and validly authorized; this Agreement evidences the valid, binding and enforceable obligation of Indenture Trustee (except as such enforceability may be limited by applicable bankruptcy, insolvency and other similar laws affecting creditors’ rights generally and by general principles of equity) and all requisite action has been taken by Indenture Trustee to make this Agreement valid and binding upon Indenture Trustee in accordance with its terms.
(c)    Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated by this Agreement (assuming receipt of all necessary consents), nor compliance with its terms and conditions, conflicts with or results in the breach of, or constitute a default under, any Loan, any Borrower Payment Dependent Note or any material contract, agreement or other instrument to which Indenture Trustee is a party or which may be applicable to Indenture Trustee or its assets.
(d)    No consent, approval, license, registration, authorization or order of any Regulatory Authority is required for the execution, delivery and performance by Indenture Trustee of, or compliance by Indenture Trustee with, this Agreement, or if required, such consent, approval, license, registration, authorization or order has been obtained prior to the Effective Date, in each case except to the extent that the failure to obtain any such consent, approval, license, registration, authorization or order would not reasonably be expected to have a Material Adverse Effect with respect to Indenture Trustee.
(e)    There are no judgments, proceedings or investigations pending against Indenture Trustee or, to Indenture Trustee’s knowledge, threatened against Indenture Trustee, before any Regulatory Authority having jurisdiction over Indenture Trustee or its properties: (i) asserting the invalidity of this Agreement; (ii) seeking to prevent the consummation of any of the transactions contemplated by this Agreement; or (iii) seeking any determination or ruling that would reasonably be expected to have a Material Adverse Effect with respect to Indenture Trustee.
(f)    Indenture Trustee is solvent and no voluntary or involuntary bankruptcy petition has been commenced by or against Indenture Trustee, nor has Indenture Trustee made an offer or assignment or compromise for the benefit of creditors.
(g)    Neither the facilities through which Indenture Trustee will perform its obligations hereunder nor the individuals acting on Indenture Trustee’s behalf in performing such obligations are located in the State of Alabama or the State of Indiana. 
(h)    Indenture Trustee is fully compliant with all applicable provisions of the AML-BSA Laws and the Foreign Corrupt Practices Act of 1977, as amended, and has adopted policies and procedures reasonably designed to ensure its ongoing compliance with such laws, which policies and procedures are consistent with generally accepted standards within Indenture Trustee’s industry for ensuring such compliance.    

SUCCESSOR LOAN SERVICING AGREEMENT – PAGE 13

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

(i)    Payments on Loans may be subject to the backup withholding tax under Section 3406 of the Internal Revenue Code if the recipient fails to furnish certain information, including its taxpayer identification numbers, or otherwise fails to establish an exemption from such tax.  Payments of interest on Loans held by a U.S. Person other than certain exempt recipients are required to be reported to the Internal Revenue Service.  Payments of interest on Loans held by a non-U.S. Person are generally subject to 30% withholding tax under Chapter 3 of the Internal Revenue Code unless an exemption applies.  Payments of interest and principal on Loans held by a non-U.S. Person may also be subject to withholding tax under the FATCA Provisions.  In relation to and with full understanding of the foregoing, and following consultation by Indenture Trustee with its tax and legal advisors, Indenture Trustee represents and warrants to Servicer and covenants that: 
(i)    (A) Indenture Trustee is a U.S. Person and is either (1) a U.S. Financial Institution or (2) acquiring the Loans as beneficial owner and not as a nominee of another; and (B) Indenture Trustee has delivered to Servicer an accurate and current form W-9; or
(ii)    (A) (I) Indenture Trustee is a non-U.S. Person eligible to claim benefits under an applicable income tax treaty that reduces the rate of withholding on interest on Loans to zero, and has delivered to Servicer an accurate and current Form W 8BEN (or successor form) or W-8BEN-E (or successor form) claiming benefits under such treaty; and (II) Indenture Trustee is a non-U.S. Person eligible for the Portfolio Interest Exemption with respect to payment on each Loan and has delivered to Servicer an accurate and current Form W-8BEN (or successor form) or W-8BEN-E (or successor form) and such other documentation as Servicer may reasonably require in support of such exemption; or (III) Indenture Trustee is a non-U.S. Person otherwise exempt from withholding tax under Chapter 3 of the Internal Revenue Code and has delivered to Servicer appropriate tax documentation establishing such exemption; and
(iii)    Indenture Trustee has obtained all approvals, entered into all agreements and provided all certifications necessary to ensure that withholding is not required with respect to the Loans under the FATCA Provisions, and will maintain and update all such approvals, agreements, and certifications as is necessary to ensure that such withholding continues not to be required under the FATCA Provisions.
Section 4.03.    Indemnification.
(a)    Servicer shall defend and indemnify Indenture Trustee, its Affiliates and its permitted successors and assigns, and their respective agents, representatives, officers, directors and employees (the “Indenture Trustee Indemnified Parties”) and hold them harmless against any and all claims, losses, damages, liabilities, penalties, fines, forfeitures, reasonable and documented out-of-pocket legal fees and related costs, judgments, and any other reasonable costs, fees and expenses that Indenture Trustee Indemnified Parties directly sustain as a result of the material breach by Servicer of its covenants or other agreements, representations or warranties set forth in this Agreement or Servicer’s gross negligence, bad faith or willful misconduct; provided, however, that Servicer shall not be liable to any Indenture Trustee Indemnified Party for any damages caused by such Indenture Trustee Indemnified Party’s gross negligence, bad faith or willful misconduct.
(b)    Indenture Trustee shall defend and indemnify Servicer and its officers, directors and employees (the “Servicer Indemnified Parties”) and hold them harmless against any and all claims, losses, damages, liabilities, penalties, fines, forfeitures, reasonable legal fees and related costs, judgments, and any other reasonable costs, fees and expenses that Servicer Indemnified Parties directly sustain as a result of the material breach by Indenture Trustee of its covenants or other agreements, representations or warranties set forth in this Agreement or Indenture Trustee’s gross negligence, bad faith or willful misconduct or losses 

SUCCESSOR LOAN SERVICING AGREEMENT – PAGE 14

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

incurred through incomplete or inaccurate data provided to Servicer by Indenture Trustee or any prior servicer, any matter arising out of the origination of the Loans, errors made by prior vendors or servicers, or lack or omission of executed Telephone Consumer Protection Act of 1991 releases, executed ACH authorizations; provided, however, that Indenture Trustee shall not be liable to any Servicer Indemnified Party for any damages caused by such Servicer Indemnified Party’s gross negligence, bad faith or willful misconduct.
ARTICLE IV. 
SERVICER
Section 5.01.    Limitation on Assignment by Servicer. 
Servicer shall not assign this Agreement or any of the servicing responsibilities hereunder or delegate its rights or duties hereunder or any portion hereof (other than a delegation to a Subcontractor otherwise permitted hereunder) without the prior written consent of Indenture Trustee.  
ARTICLE V. 
CONFIDENTIALITY
Section 6.01.    Disclosure of Confidential Information.
From time to time, in connection with the transactions contemplated by this Agreement, one Party (“Discloser”) may disclose Confidential Information to the other Party (“Recipient”), whether in writing, orally, or by allowing inspection of tangible objects (i.e. documents, tapes disks, prototypes, samples, plants or equipment).  
Section 6.02.    Handling of Confidential Information.
Subject with respect to Loan Confidential Information to Servicer’s rights under Section 2.01(b), Recipient shall:
(a)    hold Confidential Information in the strictest confidence and use such Confidential Information solely (i) to fulfill its obligations hereunder or (ii) with respect to Loan Confidential Information held by or on behalf of Indenture Trustee, as is reasonably necessary to establish, maintain and enforce Indenture Trustee’s rights with respect to any Loans, subject to Section 6.3;
(b)    disclose Confidential Information only to: (i) those personnel and third-party service providers of Recipient who need to receive such Confidential Information in connection with one or more of the permitted uses contemplated by this Agreement and the Servicing Agreement; (ii) to the extent disclosure is required by Applicable Law or other legal process or requested or demanded by any Regulatory Authority; (iii) in connection with the exercise or enforcement of any right or remedy under this Agreement, in connection with any litigation or other proceeding to which Recipient is a party or bound, or to the extent necessary to respond to public statements or disclosures by Discloser referring to Indenture Trustee; (iv) in the case of Indenture Trustee, to Indenture Trustee’s respective officers, directors, agents, employees, accountants, legal counsel or other advisors (and Indenture Trustee agrees to be liable for any act or omission in breach of this Article VI by the foregoing parties); (v) any subsequent purchaser or potential purchaser of any Loans, and to any actual or potential lender, investor or other financing source, and any trustee, administrator or agent acting on behalf of any lender or other financing source; provided, that Recipient must: (A) inform any such personnel or service provider of the confidential nature of such Confidential Information; (B) take commercially reasonable steps to ensure that any such personnel and service providers 

SUCCESSOR LOAN SERVICING AGREEMENT – PAGE 15

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

do not violate the provisions of this Article VI; (C) immediately notify Discloser if Recipient has reason to believe any such personnel or service provider has violated or intends to violate the provisions of this Article VI; and (D) provided, further, that Recipient will be liable for any acts or omissions of any such service provider or any Recipient personnel in breach of this Article VI; 
(c)    not reverse engineer, disassemble or decompile any prototypes, software or other tangible objects embodying Confidential Information;
(d)    not make any copies of Confidential Information unless previously authorized in writing by Discloser, except that Indenture Trustee may make copies of Loan Confidential Information, subject to Section 6.03;
(e)    if authorized to make copies of Confidential Information, reproduce on such copies any proprietary rights and/or confidentiality notices appearing on the original Confidential Information in the same manner as on the original; and
(f)    use its commercially reasonable efforts to protect and maintain the confidentiality of the Confidential Information, which protections shall be at least equivalent in scope and effect to the measures taken by Recipient to protect its own confidential or proprietary information of a like or similar nature.
Section 6.03.    Special Protections for Customer Information.
(a)    Each of Servicer and Indenture Trustee understands and agrees that Customer NPPI is subject to Title V of the Gramm-Leach-Bliley Act, 15 U.S.C. §§ 6801 et seq., the FTC’s Rule regarding the Privacy of Consumer Financial Information, 16 C.F.R. Part 313, the FTC’s Standards for Safeguarding Customer Information, 16 C.F.R. Part 314, and any other Applicable Laws regarding the privacy or security of Customer NPPI (collectively, the “Privacy Laws”).  Each of Servicer and Indenture Trustee agrees that it shall comply with the Privacy Laws and will promptly notify Indenture Trustee and/or Servicer, as applicable, of any breach of the Privacy Laws or the provisions of this Article VI.  
(b)    If Indenture Trustee elects to receive Customer NPPI for Loans, Indenture Trustee either (i) must be a Qualified Custodian or (ii) (A) must retain a Qualified Custodian to hold such Customer NPPI on Indenture Trustee’s behalf and (B) the agreement under which such Qualified Custodian holds such Customer NPPI on Indenture Trustee’s behalf must provide that such Qualified Custodian will perform its obligations under the agreement in a manner that fully satisfies the Privacy Laws and otherwise complies with the provisions of this Article VI.   
Section 6.04.    Compelled Disclosure.
Recipient may disclose Confidential Information required to be disclosed by law, regulation or a valid court order; provided, that Recipient: (a) uses commercially reasonable efforts to obtain confidential treatment for such Confidential Information; (b) gives Discloser prompt written notice of such requirement to disclose prior to such disclosure (to the extent permissible under the terms of the law, regulation or order compelling disclosure or as soon as is reasonably practicable); and (c) reasonably cooperates with Discloser as necessary to obtain a protective order or securing confidential treatment for such Confidential Information.
Section 6.05.    Return or Destruction of Materials.
Subject with respect to Loan Confidential Information to Servicer’s rights under Section 2.01(b), Recipient shall return or destroy, as Discloser indicates, all Confidential Information, including, without limitation, all copies, compilations, summaries, analyses or other materials containing or reflecting 

SUCCESSOR LOAN SERVICING AGREEMENT – PAGE 16

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

Recipient’s use of Confidential Information, within 10 days after the later to occur of: (a) termination of this Agreement; or (b) Discloser’s written request to Recipient; provided, that Recipient may maintain in its possession all Confidential Information of Discloser required to be maintained under Applicable Laws relating to the retention of records for the period of time required thereunder or stored on Recipient’s network as part of standard back-up procedures (provided, that such information shall remain subject to the confidentiality provision of this Article VI).  Recipient shall promptly send Discloser written certification of such destruction or return.
Section 6.06.    Ownership of Confidential Information.
Subject with respect to Loan Confidential Information to Servicer’s rights under Section 2.01(b), the Confidential Information (and related copies and materials) shall be the sole and exclusive property of Discloser.  Recipient has no rights under any of Discloser’s patents, copyrights, trademarks, trade secrets or with respect to any of Discloser’s other intellectual property, except as expressly set forth herein.  Recipient may not use Confidential Information to apply for or secure any patents or any other intellectual property rights.
ARTICLE VI. 
TERMINATION
Section 7.01.    Termination for Servicer Event of Default.
(a)    This Agreement shall be terminable at the sole option of Indenture Trustee, upon written notice from Indenture Trustee to Servicer, if any of the following events of default exist on the part of Servicer (each, a “Servicer Event of Default”):
(i)    Servicer shall fail to perform or observe any material obligation, covenant or agreement contained in this Agreement and such failure shall continue for more than 30 days after the earlier of Servicer obtaining knowledge of such failure or Servicer receiving written notice of such failure; and such failure is not remedied within a period of 30 days after the earlier of Servicer obtaining knowledge of such failure or Servicer receiving written notice of such failure;
(ii)    an Insolvency Event shall occur with respect to Servicer; or
(iii)    any Regulatory Authority shall have condemned, seized or appropriated, or to have assumed custody or control of, all or any substantial part of the property of Servicer, or shall have taken any action to displace the management of Servicer or to curtail its authority in the conduct of the business of Servicer.
(b)    Upon receipt by Servicer of written notice of termination, or upon automatic termination of this Agreement as provided above, all authority and power of Servicer under this Agreement, whether with respect to the Loans, the Borrower Payment Dependent Notes or otherwise, shall pass to and be vested in Indenture Trustee or its designee, and Indenture Trustee and its designee are hereby authorized and empowered to execute and deliver, as attorney-in-fact or otherwise, any and all documents and other instruments, and to do or accomplish all other acts or things necessary or appropriate to effect the purposes of such notice of termination, whether to complete the transfer and endorsement of the Loans and Loan Documents, to direct Borrowers, insurers, Subcontractors and Collection Agents to remit all Proceeds as directed by Indenture Trustee or otherwise, and all Servicing Rights with respect to Loans and Borrower Payment Dependent Notes shall be immediately assigned, transferred and conveyed to Indenture Trustee or its designee.  Servicer shall prepare, execute and deliver to Indenture Trustee or its designee any and all 

SUCCESSOR LOAN SERVICING AGREEMENT – PAGE 17

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

documents and other instruments, promptly and in any event within 30 days place in such successor’s possession, all Servicing Files, subject to Servicer’s rights under Section 2.01(b), and, in a timely manner, do or cause to be done all other acts or things necessary or appropriate to effect the purposes of such notice of termination, including but not limited to the transfer of the Loans, the Borrower Payment Dependent Notes and related Loan Documents and Servicing Files, at Servicer’s sole expense (including, without limitation, with respect to all Servicing Transfer Costs).  Servicer shall, in a timely manner, cooperate with Indenture Trustee or its designee in effecting the termination of its servicing responsibilities and rights hereunder and the transfer of the servicing functions and the Servicing Files, subject to Servicer’s rights under Section 2.01(b), including, without limitation, the transfer to such successor for administration by it of all cash amounts that shall at the time be credited by Servicer to any Deposit Account or thereafter received with respect to the Loans. Servicer shall be entitled to any accrued and unpaid Servicing Compensation and Ancillary Fees through the later of the effective date of such termination or the completion of the transfer of servicing functions and Servicing Files contemplated by this Section 7.01(b).  
(c)    By a written notice, Indenture Trustee or Servicer may waive any default by the other in the performance of its obligations hereunder and its consequences.  Upon any waiver of a past default, such default shall cease to exist, and any Servicer Event of Default arising therefrom shall be deemed to have been remedied for every purpose of this Agreement.  No such waiver shall extend to any subsequent or other default or impair any right consequent thereon except to the extent expressly so waived.
(d)    The provisions of Sections 4.03, 7.01(b), 8.02, 8.06, 8.07 and 8.08 and Article VI shall survive termination of Servicer and termination of this Agreement.
ARTICLE VII. 
MISCELLANEOUS PROVISIONS
Section 8.01.    Notices.
All notices and other communications hereunder and under any other transaction document will be in writing and will be deemed to have been duly given when delivered in person, by facsimile or email, by express or overnight mail delivered by a nationally recognized air courier (delivery charges prepaid), or by registered or certified mail (postage prepaid, return receipt requested) to the respective Parties as follows:
if to Indenture Trustee:
[Indenture Trustee name and address] 
Facsimile No.:  ([•]) [•]]-[•]] 
Attention: [Indenture Trustee contact person] 
Email: [email address of contact person]
With a copy to (which shall not constitute notice):
[Name and address] 
Facsimile No.:  ([•]) [•]]-[•]] 
Attention: [contact person] 
Email: [email address of contact person]
if to Servicer:
First Associates Loan Servicing, LLC

SUCCESSOR LOAN SERVICING AGREEMENT – PAGE 18

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

15373 Innovation Drive, Suite 300
San Diego, CA  92128
Attention:  Executive Vice President

or to such other address as the Party to whom notice is given may have previously furnished to the other Party in writing in the manner set forth above.  Any notice or communication delivered in person will be deemed effective upon delivery.  Any notice or communication sent by email or air courier will be deemed effective on the first business day at the place at which such notice or communication is received following the day on which such notice or communication was sent.  Any notice or communication sent by registered or certified mail will be deemed effective on the third business day at the place at which such notice or communication is received following the day on which such notice or communication was mailed.
Section 8.02.    Costs.
Except as otherwise specifically set forth in this Agreement, each of Indenture Trustee and Servicer shall bear its own costs and expenses in connection with this Agreement, including, without limitation, any sales commissions, legal fees or costs and expenses relating to due diligence.
Section 8.03.    Amendment; Waiver.
Except as otherwise expressly provided herein, Indenture Trustee and Servicer may amend this Agreement, from time to time, in a writing signed by duly authorized officers of each of Servicer and Indenture Trustee.  No waiver of any provision of this Agreement, nor consent to any departure by any Party therefrom, shall be effective unless the same shall be in writing and signed by a duly authorized officer of the Party to be charged with the waiver or consent, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.
Section 8.04.    Cumulative Rights.
All rights and remedies of the Parties under this Agreement shall, except as otherwise specifically provided herein, be cumulative and non-exclusive of any rights or remedies that they may have under any other agreement or instrument, by operation of law or otherwise.
Section 8.05.    Successors and Assigns; Assignment of Servicing Agreement.  
This Agreement shall be binding upon and inure to the benefit of and be enforceable by Servicer, Indenture Trustee and their respective successors and permitted assigns. This Agreement shall not be assigned, pledged or hypothecated by any Party without the prior written consent of the other Party.
Section 8.06.    Choice of Law.  
This Agreement shall be construed in accordance with the laws of the State of New York, without reference to the choice of law principles under the laws of the State 

SUCCESSOR LOAN SERVICING AGREEMENT – PAGE 19

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

of New York other than Section 5-1401 of New York General Obligations Law which shall govern. 
Section 8.07.    Submission to Jurisdiction; Waiver of Jury Trial.
Each party hereby submits to the jurisdiction of the United States District Court for the Southern District of New York and any New York State Court sitting in the Borough of Manhattan in the City and State of New York for purposes of all legal proceedings arising out of or relating to this agreement or the transactions contemplated hereby.  Each Party irrevocably waives, to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying of the venue of any such proceeding brought in such a court and any claim that any such proceeding brought in such a court has been brought in an inconvenient forum.  Each Party hereby consents to process being served in any suit, action or proceeding with respect to this agreement by the mailing of a copy thereof by registered or certified mail, postage prepaid, return receipt requested, to its respective address specified at the time for notices under this agreement or to any other address of which it shall have given written or electronic notice to the other party.  The foregoing shall not limit the ability of any Party to bring suit in the courts of any jurisdiction. 
Each Party knowingly, voluntarily and intentionally, waives (to the extent permitted by Applicable Law) any right it may have to a trial by jury of any dispute arising under or relating to this Agreement and agrees that any such dispute shall be tried before a judge sitting without a jury. 
Section 8.08.    Limitation of Liability.
Except for acts or omissions that constitute gross negligence, bad faith or willful misconduct, in no event shall any Party or any of its respective Affiliates, beneficiaries, assignees or successors (by assignment or otherwise)  be liable to the other Party or to any other entity for punitive or exemplary damages, any lost profits, costs of cover or other special damages, or any punitive, exemplary, remote, consequential, incidental or indirect damages, under this Agreement incurred or claimed by any Party or entity (or such party or entity’s officers, directors, stockholders, members or owners),  however caused, on any theory of liability.

Section 8.09.    Severability.  
Any provision of this Agreement that is prohibited or not fully enforceable in any jurisdiction, will be ineffective only to the extent of such prohibition or unenforceability without otherwise invalidating or diminishing either Party’s rights under the remaining provisions of this Agreement in such jurisdiction, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable in any respect any such provision in any other jurisdiction.
Section 8.10.    Entire Agreement.

SUCCESSOR LOAN SERVICING AGREEMENT – PAGE 20

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

As of the date hereof, Servicer and Indenture Trustee hereby acknowledge and agree that this Agreement, together with the exhibits hereto, represents the complete and entire agreement between the Parties with respect to the servicing of Loans and Borrower Payment Dependent Notes, and shall supersede all prior written or oral statements, agreements or understandings between the Parties relating to the servicing of Loans and Borrower Payment Dependent Notes.
Section 8.11.    Exhibits and Schedules.  
The exhibits and schedules to this Agreement are hereby incorporated and made a part hereof and are an integral part of this Agreement.
Section 8.12.    No Joint Venture or Partnership.  
Each Party (including any of its respective permitted successors and assigns) acknowledges and agrees that such Party will not hold itself out as an agent, partner or joint venturer of the other Party and that this Agreement and the transactions contemplated hereby, including the payment of any fees or the reimbursement of any expenses, are not intended and do not create an agency, partnership, joint venture or any other type of relationship between or among the Parties.
Section 8.13.    Further Assurances.  
Each Party, upon the reasonable written request of the other Party, shall execute and deliver to such other Party any reasonably necessary or appropriate additional documents, instruments or agreements as may be reasonably necessary or appropriate to effectuate the purposes of this Agreement or the consummation of the transactions contemplated hereunder.
Section 8.14.    Counterparts.  
This Agreement may be executed simultaneously in any number of counterparts.  Each counterpart shall be deemed to be an original, and all such counterparts shall constitute one and the same instrument.  The Parties agree that this Agreement and signature pages may be transmitted between them by facsimile or by electronic mail and that faxed and PDF signatures may constitute original signatures and that a faxed or PDF signature page containing the signature (faxed, PDF or original) is binding upon the Parties. 
Section 8.15.    Waivers, Etc.
No waiver of any single breach or default of this Agreement shall be deemed a waiver of any other breach or default of this Agreement.
Section 8.16.    Investments.
(a)    Servicer acknowledges and agrees that Indenture Trustee and its Affiliates currently may be invested in, may invest in or consider investments in companies held by or that compete either directly or indirectly with Servicer and that this Agreement shall in no way be construed to prohibit or restrict Indenture Trustee’s or any of its Affiliates’ ability to maintain, make or consider such investments.
(b)    Indenture Trustee acknowledges and agrees that Servicer and its Affiliates currently may be invested in, may invest in or consider investments in companies held by or that compete either directly or indirectly with Indenture Trustee and that the execution of this Agreement shall in no way be construed to prohibit or restrict Servicer’s or any of its Affiliates’ ability to maintain, make or consider such investments.

SUCCESSOR LOAN SERVICING AGREEMENT – PAGE 21

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

Section 8.17.    No Petition.
Notwithstanding any prior termination of this Agreement, to the fullest extent permitted by law, each Party agrees that it shall not institute, or join any other person in instituting, a petition or a proceeding that causes (a) the other Party to be a debtor under any federal or state bankruptcy or similar insolvency law or (b) a trustee, conservator, receiver, liquidator, or similar official to be appointed for such other Party or any substantial part of any of its property.

[SIGNATURE PAGE FOLLOWS]

SUCCESSOR LOAN SERVICING AGREEMENT – PAGE 22

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

IN WITNESS WHEREOF, the parties hereto have caused to be duly authorized, executed and delivered, as of the date first written above, this SUCCESSOR LOAN SERVICING AGREEMENT. 

SERVICER:

FIRST ASSOCIATES LOAN SERVICING LLC
(Servicer)

By:        ______________________________ 
Name:                             
Title:                            

INDENTURE TRUSTEE:

[NAME OF INDENTURE TRUSTEE]

By:        ______________________________ 
Name:                             
Title:                            

SUCCESSOR LOAN SERVICING AGREEMENT – SIGNATURE PAGE

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

EXHIBIT A 
 
SERVICING FEE
Servicing Fee:  For any Servicing Period, the Servicing Fee for [***] will be equal to the product of (a) the applicable Loan Servicing Fee Rate, (b) [***] during such Servicing Period and (c) a fraction, the numerator of which is the number of calendar days during such Servicing Period and the denominator of which is the number of days in the calendar year in which such Servicing Period began (i.e., 365 or 366). 

With respect to [***], the Loan Servicing Fee Rate applicable to such Loan shall be [***]% per annum.
FOR ANY LOAN LATE BY AT LEAST [***] DAYS BUT NO MORE THAN [***] DAYS LATE, SERVICER SHALL BE PAID A FEE OF [***]% OF ANY LATE FUNDS COLLECTED; PROVIDED THAT THIS FEE SHALL NOT INCLUDE ANY CURRENT AMOUNTS COLLECTED.
FOR ANY LOAN MORE THAN [***] DAYS LATE, SERVICER SHALL BE PAID A FEE OF [***]% OF ANY FUNDS COLLECTED.

SUCCESSOR LOAN SERVICING AGREEMENT – EXHIBIT A

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

EXHIBIT B
ACCEPTED SERVICING PRACTICES

“ACH” means a payment that is processed through Automated Clearing House system.

“Auto Pay” means a payment option pursuant to which a Borrower has authorized Servicer to automatically withdraw funds from his or her designated bank account on his or her applicable payment due date each month.

“Billing Period” means the period of time in which a Borrower can satisfy a particular scheduled payment, which begins on the day following the end of any previous billing period and ends on the due date for such payment.

“Credit Reporting Agencies” means Equifax, Experian and TransUnion.

“Electronic Message” means one or more of the following forms of communication: a message to the applicable Borrower’s Prosper account, an email to the address designated by such Borrower, text message to a phone number or other electronic form of message to such Borrower as permitted by Applicable Laws. 

Pre-Delinquency Communications
		
	•
	Servicer will send the applicable Borrower an Electronic Message for each payment prior to the payment due date.

		
	•
	For Loans that are past due, but not yet Delinquent Loans, Servicer will send the applicable Borrower an Electronic Message to remind such Borrower about such past due payment and provide the applicable Borrower information regarding such past due payment through a secure web site.

 
Delinquency Communications
		
	•
	If a Borrower had selected Auto Pay and an automatic ACH payment fails, Servicer will send an Electronic Message informing such Borrower that the loan account is delinquent and a payment is past due.

		
	•
	If a Borrower had not selected Auto Pay and the loan account becomes past due, Servicer will send an Electronic Message informing such Borrower that the loan account is delinquent and a payment is past due.

		
	•
	Each Borrower will receive Electronic Messages for each Billing Period the loan account is past due until the loan account is charged off.

		
	•
	A Collection Agent will attempt to collect the amount past due on any eligible loan account for each Billing Period until such loan account is charged off.

Late Payment Fees
		
	•
	If a Borrower has not made the minimum payment due, Servicer may charge such Borrower a late payment fee equal to the greater of $15 or 5% of the unsatisfied portion of the late payment amount (a “Late Payment Fee”).

		
	•
	Servicer will remit any Late Payment Fees collected to Purchaser, less any Collection Fees.

		
	•
	Servicer will only assess one Late Payment Fee for each delinquent payment in a Billing Period. 

Insufficient Funds Fees
		
	•
	For any failed payment processed by Servicer, Servicer may charge the applicable Borrower a failed payment fee of $15 (an “Insufficient Funds Fee”).

SUCCESSOR LOAN SERVICING AGREEMENT – EXHIBIT B

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

		
	•
	Servicer shall retain any collected Insufficient Funds Fees.

Charged Off Loan
		
	•
	A loan account may be charged off after the applicable Borrower is at least 120 days past due.

		
	•
	The charged off status will be placed on a loan account as early as when the loan account is at least 120 days past due but not later than the last day of the month in which a Borrower misses his or her fifth consecutive payment. 

		
	•
	When a loan account is charged off, the entire Loan balance will become due and owing.

		
	•
	Servicer will report the charged off loan status to the Credit Reporting Agencies.

Post Charge Off 
		
	•
	Servicer may send a charged off loan to a Collection Agent to attempt collection on the entire Loan, unless Purchaser has agreed in writing to the sale of such Loans to a Charged Off Loan Buyer, in which case, the sale proceeds thereof shall be distributed to Purchaser in accordance with the applicable Charged Off Loan Sale Agreement.

Bankruptcy
		
	•
	If a Loan is included in a bankruptcy filing, all collection attempts on such Loan will cease.  If a Loan is included in a bankruptcy filing and is discharged through bankruptcy, the outstanding balance on the balance of such Loan will be reduced to zero.

Cease and Desist 
If a Borrower requests, in writing or on the telephone, no further contact regarding a Loan, then further contact will only be made with such Borrower in accordance with Applicable Law.

Pre-Charge Off Settlement
		
	•
	Servicer may reduce the outstanding balance of a Delinquent Loan on Purchaser’s behalf (a “Settlement”) in an effort to create a reduced payment amount for the related Borrower who has the willingness and ability to pay the Settlement in accordance with the terms of such Settlement, as reasonably determined by Servicer, and in order maximize the receipt of principal and interest for Purchaser, provided that:

		
	◦
	the monthly payment for such Delinquent Loan is at least sixty (60) days past due from the original due date for such payment;

		
	◦
	the amount of such Settlement is at least [***] of the outstanding balance of such Delinquent Loan; and

		
	◦
	the terms of such Settlement require such amount to be paid within twelve months from the effective date of such Settlement.

		
	•
	Servicer will distribute the net proceeds from any such Settlement to Purchaser.

Pre Charge Off Extension
		
	•
	Servicer may extend the maturity date of a Delinquent Loan on Purchaser’s behalf (an “Extension”) by a maximum of four (4) calendar months from the original maturity date of such Delinquent Loan in an effort to create a payment plan for the related Borrower who has the willingness and ability to pay the monthly payments in accordance with the terms of such Delinquent Loan without the ability to pay the delinquent monthly payments, as reasonably determined by Servicer, provided, that such Extension satisfies each of the following conditions:

		
	◦
	as of the date of the contemplated Extension, such Delinquent Loan has a monthly payment that will be at least 31 days past due from the original due date for such payment at the time of the first eligible payment toward such contemplated Extension; provided, that (a) the contemplated Extension may not be effected until after the applicable Borrower makes at least three (3) consecutive minimum Monthly Payments in accordance with the terms of such Delinquent Loan after such delinquency, and (b) such Borrower’s obligation to make any delinquent monthly payment may not be delayed 

SUCCESSOR LOAN SERVICING AGREEMENT – EXHIBIT B

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

from the date it was originally due to a date that is later than [***] of the original term of such Delinquent Loan from such original due date; and
		
	◦
	no terms of such Delinquent Loan, other than the contemplated Extension, shall be modified or changed.

		
	•
	Upon the Extension with respect to any Loan, such Loan shall no longer be treated as a Delinquent Loan other than as a result of any delinquency in monthly payments on such Loan occurring after such Extension.

Payment Due Date 
		
	o
	Servicer may allow an eligible Borrower to change the date on which each monthly payment on his or her Loan is due; provided, that any such Borrower may change his or her due date only once over a 12-month period and, provided further, that such change will not extend the payment date by more than 30 days past the expected payment date.

Credit Bureau Reporting
		
	•
	Servicer shall accurately and promptly report the status of loans to the Credit Reporting Agencies each month. 

		
	•
	Servicer shall use the Consumer Industry Data Association’s Metro 2® Format for Credit Reporting standards when reporting to the Credit Reporting Agencies.

 

SUCCESSOR LOAN SERVICING AGREEMENT – EXHIBIT B

CONFIDENTIAL TREATMENT
[***] indicates that text has been omitted which is the subject of a confidential treatment request.
This text has been separately filed with the SEC.

SCHEDULE 1 
 
COLLECTION AGENTS

1.    I.C. Systems, Inc.
		
	2.
	Tritium Research Inc.

		
	3.
	TelePerformance USA, Inc./AllianceOne, Inc.

    

LOAN SERVICING AGREEMENT – SCHEDULE 1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00276-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00276-of-00352.parquet"}]]