Document:

t1502900-f4_DIV_20-ex4-2 - none - 6.3666366s

    
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        Exhibit 4.2​

        MEMORANDUM OF ASSOCIATION
OF 

        INNOCOLL HOLDINGS PUBLIC LIMITED COMPANY 

        (As altered pursuant to a special resolution passed on [         ]) 

        1.

        The name of the Company is Innocoll Holdings Public Limited Company. 

        ​

        2.

        The Company is a public limited company registered under Part 17 of the Companies Act, 2014. 

        ​

        3.

        The objects for which the Company is established are:- 

        ​

        3.1

        To carry on the business of a holding company and to co-ordinate the administration, finances and all other activities of any subsidiary companies or associated companies, to do all lawful acts and things whatever that are necessary or convenient in carrying on the business of such a holding company including the incorporation of any one or more subsidiaries and in particular to carry on the business of a management services company, to act as managers and to direct or coordinate the management of other companies or of the business, property and estates of any company or person and to undertake and carry out all such services in connection therewith as may be deemed expedient by the Company’s board of directors and to exercise its powers as a shareholder of other companies. 

        ​

        3.2

        To acquire shares, stocks, debentures, debenture stock, bonds, obligations and securities by original subscription, tender, purchase, exchange or otherwise and to subscribe for the same either conditionally or otherwise, and to guarantee the subscription thereof and to exercise and enforce all rights and powers conferred by or incidental to the ownership thereof including without prejudice to the generality of the foregoing all such powers of veto or control as may be conferred by virtue of the holding by the Company of such special proportion of the issued or nominal amount thereof and to provide managerial and other executive, supervisory and consultant services for or in relation to any corporation in which the Company is interested upon such terms as may be thought fit. 

        ​

        3.3

        To acquire any such shares and other securities as are mentioned in the preceding paragraphs by subscription, syndicate participation, tender, purchase, exchange or otherwise and to subscribe for the same, either conditionally or otherwise, and to guarantee the subscription thereof and to exercise and enforce all rights and powers conferred by or incidental to the ownership thereof. 

        ​

        3.4

        To co-ordinate the administration, policies, management, supervision, control, research, planning, trading and any and all other activities of, and to act as financial advisers and consultants to, any corporation or corporations now or hereafter incorporated or acquired which may be or may become a Group Company of, or an Affiliate of the Company, or to any corporation or corporations now or hereafter incorporated or acquired (which are not Group Companies) with which the Company may be or may become associated. 

        ​

        3.5

        To provide financing and financial investment, management and advisory services to any Group Company or Affiliate, which shall include granting or providing credit and financial accommodation, lending and making advances with or without interest to any Group Company or Affiliate and lending to or depositing with any bank funds or other assets to provide security (by way of mortgage, charge, pledge, lien or otherwise) for loans or other forms of financing granted to such Group Company or Affiliate by such bank. 

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        3.6

        To facilitate and encourage the creation, issue or conversion of and to offer for public subscription debentures, debenture stocks, bonds, obligations, shares, stocks, and securities and to act as trustees in connection with any such securities and to take part in the conversion of business concerns and undertakings into companies. 

        ​

        3.7

        To apply for and register as a company with any stock exchange and to list all or any part of its share capital on any such stock exchange subject to the rules and regulations governing the listing of shares applicable in the relevant jurisdiction. 

        ​

        3.8

        To purchase or by any other means acquire any freehold, leasehold or other property and in particular lands, tenements and hereditaments of any tenure, whether subject or not to any charges or encumbrances, for any estate or interest whatever, and any rights, privileges or easements over or in respect of any property, and any buildings, factories, mills, works, wharves, roads, machinery, engines, plant, live and dead stock, barges, vessels or things, and any real or personal property or rights whatsoever which may be necessary for, or may conveniently be used with, or may enhance the value or property of the Company, and to hold or to sell, let, alienate, mortgage, charge or otherwise deal with all or any such freehold, leasehold, or other property, lands, tenements or hereditaments, rights, privileges or easements. 

        ​

        3.9

        To issue securities of the Company (or contracts, options or warrants to subscribe for, or other rights or interests in, or in respect of, such securities) directly to any employees of the Company or Group Company, in consideration for employment or other services performed by those employees and to establish and support or aid in the establishment and support of associations, institutions, funds or trusts for the benefit of employees, directors or consultants or former employees, directors or consultants of the Company or its predecessors or any Group Companies or Affiliates, or the dependants or connected persons of such employees, directors or consultants or former employees, directors or consultants and grant gratuities, pensions and allowances, including the establishment of share option schemes or employee share schemes, enabling employees, directors or consultants of the Company or other persons aforesaid to become shareholders in the Company, or otherwise to participate in the profits of the Company upon such terms and in such manner as the Company thinks fit, and to make payments towards insurance or for any object similar to those set forth in this paragraph. 

        ​

        3.10

        To perform any duty or duties imposed on the Company by or under any enactment and to exercise any power conferred on the Company by or under any enactment. 

        ​

        3.11

        To sell, lease, exchange, grant, convey, transfer or otherwise dispose of any or all of the property, investment or assets of the Company of whatever nature or tenure for such price, consideration, sum or other return whether equal to or less than the market value thereof and whether by way of gift or otherwise as the Directors shall deem fit and to grant any fee farm grant or lease or to enter into any agreement for letting or hire of any such property or asset for a rent or return equal to or less than the market or rack rent therefor or at no rent and subject to or free from covenants and restrictions as the Directors shall deem appropriate. 

        ​

        3.12

        To acquire and undertake the whole or any part of the business, goodwill and assets of any person, firm or company carrying on or proposing to carry on any of the businesses which the Company is authorised to carry on, and as part of the consideration for such acquisition to undertake all or any of the liabilities of such person, firm or company, or to acquire an interest in, amalgamate with, or enter into any arrangement for sharing profits, or for co-operation, or for limiting competition or for mutual assistance with any such person, firm or company and to give or accept by way of consideration for any of the acts or things aforesaid or property acquired, any shares, debentures, debenture stock or securities that may be agreed upon, and to hold and retain or sell, mortgage or deal with any shares, debentures, debenture stock or securities so received. 

        ​

      

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        3.13

        To apply for, register, purchase, lease, hold, use, control, license, assign or otherwise acquire or dispose any patents, patent rights, brevets d’invention, copyrights, formulae, trademarks, licences, inventions, processes, distinctive marks, technology, know-how, concessions and the like conferring any exclusive or non-exclusive or limited rights to use or any secret or other information as to any invention or technology which may seem capable of being used for any of the purposes of the Company or the acquisition of which may seem calculated directly or indirectly to benefit the Company, and to use, exercise, develop or grant licences in respect of or otherwise turn to account the property rights or information so acquired. 

        ​

        3.14

        To enter into partnership or into any arrangement for sharing profits, union of interests, co-operation, joint venture, reciprocal concession or otherwise with any person or company carrying on or engaged in or about to carry on or engage in any business or transaction which the Company is authorised to carry on or engage in or any business or transaction capable of being conducted so as to directly or indirectly benefit the Company. 

        ​

        3.15

        To invest and deal with the moneys of the Company not immediately required upon such securities and in such manner as may from time to time be determined. 

        ​

        3.16

        To lend money to and guarantee the performance of the contracts or obligations of any company, firm or person, and the repayment of the capital and principal of, and dividends, interest or premiums payable on, any stock, shares and securities of any company, whether having objects similar to those of the Company or not, and to give all kinds of indemnities. 

        ​

        3.17

        To enter into, invest or engage in, acquire, hold or dispose of any financial instruments or risk management instruments, whether or not of a type currently in existence, and currency exchange, interest rate or commodity or index linked transactions (whether in connection with or incidental to any other contract, undertaking or business entered into or carried on by the Company or whether as an independent object or activity), including securities in respect of which the return or redemption amount is calculated by reference to any index, price or rate, monetary and financial instruments of all kinds, futures contracts, swaps and hedges (including credit default, interest rate and currency, swaps and hedges of any kind whatsoever), options contracts, contracts for differences, commodities (including bullion and other precious metals), forward rate agreements, debentures, debenture stock, warrants, commercial paper, promissory notes, mortgage backed securities, asset backed securities, dealings in foreign currency, spot and forward rate exchange contracts, caps, floors, collars, and any other foreign exchange, interest rate or commodity or index linked arrangements, and such other instruments whether for the purpose of making a profit or avoiding a loss or managing a currency or interest rate exposure or any other purpose and to enter into any contract for and to exercise and enforce all rights and powers conferred by or incidental, directly or indirectly, to such transactions or the termination of any such transactions. 

        ​

        3.18

        To carry on the business of financing and re-financing, whether asset based or not (including financing and re-financing of financial assets), including managing financial assets with or without security in whatever currency including financing or re-financing by way of loan, acceptance credits, commercial paper, euro medium term bonds, euro bonds, asset-backed securities, securitisation, synthetic securitisation, collateralised debt obligations, bank placements, leasing, hire purchase, credit sale, conditional sale, factoring, forfeiting, invoice discounting, note issue facilities, project financing, bond issuances, participation and syndications, assignment, novation, factoring, discounting, participation, sub-participation, derivative contracts, securities/stock lending contracts, repurchase agreements or 

        ​

      

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        other appropriate methods of finance and to discount mortgage receivables, loan receivables and lease rentals for persons wherever situated in any currency whatsoever, and to do all of the foregoing as principal, agent or broker. 

        3.19

        To guarantee, support or secure, whether by personal covenant or by mortgaging or charging all or any part of the undertaking, property and assets (both present and future) and uncalled capital of the Company, or by both such methods, the performance of the obligations of, and the repayment or payment of the principal amounts of and premiums, interest and dividends on any securities of, any person, firm or company including (without prejudice to the generality of the foregoing) any company which is for the time being the holding company or a subsidiary (as defined by Sections 7 and 8 of the Companies Act 2014) of the Company or another subsidiary as defined by the said Sections of the Company’s holding company or otherwise associated with the Company in business. 

        ​

        3.20

        To borrow, raise finance or secure the payment of money (in any currency) in such manner as the Company shall think fit, and in particular by the provision of a guarantee or by the issue of debentures, debenture stocks, bonds, obligations and securities of all kinds, contracts, options or warrants to subscribe for, or other rights or interests in, or in respect of, such securities, either perpetual or terminable and either redeemable or otherwise and to secure the repayment of any money borrowed, raised or owing by trust deed, mortgage, charge, or lien upon the whole or any part of the Company’s property or assets (whether present or future) including its uncalled capital, and also by a similar trust deed, mortgage, charge or lien to secure and guarantee the performance by the Company of any obligation or liability it may undertake. 

        ​

        3.21

        To draw, make, accept, endorse, discount, execute, negotiate and issue promissory notes, bills of exchange, bills of lading, warrants, debentures and other negotiable or transferable instruments. 

        ​

        3.22

        To subscribe for, take, purchase or otherwise acquire and hold shares or other interests in, or securities of any other company having objects altogether or in part similar to those of the Company, or carrying on any business capable of being conducted so as directly or indirectly to benefit the Company. 

        ​

        3.23

        To hold in trust as trustees or as nominees and to deal with, manage and turn to account, any real or personal property of any kind, and in particular shares, stocks, debentures, securities, policies, book debts, claims and choses in actions, lands, buildings, hereditaments, business concerns and undertakings, mortgages, charges, annuities, patents, licences, and any interest in real or personal property, and any claims against such property or against any person or company. 

        ​

        3.24

        To constitute any trusts with a view to the issue of preferred and deferred or other special stocks or securities based on or representing any shares, stocks and other assets specifically appropriated for the purpose of any such trust and to settle and regulate and if thought fit to undertake and execute any such trusts and to issue dispose of or hold any such preferred, deferred or other special stocks or securities. 

        ​

        3.25

        To give any guarantee in relation to the payment of any debentures, debenture stock, bonds, obligations or securities and to guarantee the payment of interest thereon or of dividends on any stocks or shares of any company. 

        ​

        3.26

        To construct, erect, maintain, alter, renovate and demolish any buildings or works necessary or convenient for its objects. 

        ​

        3.27

        To purchase and maintain insurance for the benefit of any person who is an officer or employee or former officer or employee of the Company or of a subsidiary of the Company or in which the Company has an interest whether direct or indirect or 

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        who is or was trustee of any retirement benefits scheme or any other trust in which any such officer or employee or former officer or employee is or has been interested, indemnifying such person against liability for negligence, default, breach of duty or breach of trust or any other liabilities which may lawfully be insured against. 

        3.28

        To grant bonuses to any person or persons who are or have been in the employment of the Company or any Group Companies or Affiliates or any person or persons who are or have been directors of, or consultants to, the Company or any of its Group Companies or Affiliates. 

        ​

        3.29

        To purchase and maintain insurance in respect of the payment of interest and/or capital on any notes, bonds or debentures issued by the Company for the benefit of such persons as may for the time being hold any such notes, bonds or debentures. 

        ​

        3.30

        To provide for the welfare of persons in the employment of or holding office under or formerly in the employment of or holding office under the Company including Directors and ex-Directors of the Company or any of its subsidiary or associated companies and the wives, widows and families, dependants or connections of such persons by grants of money, pensions or other payments and by forming and contributing to pension, provident or benefit funds or profit sharing or co-partnership schemes for the benefit of such persons and to form, subscribe to or otherwise aid charitable, benevolent, religious, scientific, national or other institutions, exhibitions or objects which shall have any moral or other claims to support or aid by the Company by reason of the locality of its operation or otherwise. 

        ​

        3.31

        To remunerate by cash payments or allotment of shares or securities of the Company credited as fully paid up or otherwise any person or company for services rendered or to be rendered to the Company whether in the conduct or management of its business, or in placing or assisting to place or guaranteeing the placing of any of the shares of the Company’s capital, or any debentures or other securities of the Company or in or about the formation or promotion of the Company, any Group Company or Affiliate. 

        ​

        3.32

        To adopt such means of making known the products of the Company or of any Group Company or Affiliate as may seem expedient, and in particular by advertising, by purchase and exhibition of works of art or interest, by publication of books and periodicals and by granting prizes and rewards and making donations. 

        ​

        3.33

        To allot and issue fully paid shares of the Company in payment or part payment of any property or asset purchased or otherwise acquired by the Company or for any past services performed for the Company or any Group Company. 

        ​

        3.34

        To enter into and carry into effect any arrangement for joint working in business or for sharing of profits or for amalgamation with any other company or association or any partnership or person carrying on any business within the objects of the Company. 

        ​

        3.35

        To distribute among the members of the Company in cash, kind, specie or otherwise as may be resolved, by way of dividend, bonus or in any other manner considered advisable, any property of the Company, subject always to the provisions of the Act and any other applicable laws. 

        ​

        3.36

        To vest any real or personal property, rights or interest acquired or belonging to the Company in any person or company on behalf of or for the benefit of the Company, and with or without any declared trust in favour of the Company. 

        ​

        3.37

        To transact or carry on any business which may seem to be capable of being conveniently carried on in connection with any of these objects or calculated directly or indirectly to enhance the value of or facilitate the realisation of or render profitable any of the Company’s property or rights. 

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        3.38

        To take or hold mortgages, hypothecations, liens and charges to secure payment of the purchase price, or of any unpaid balance of the purchase price, of any part of the property of the Company of whatsoever kind sold by the Company, or for any money due to the company from purchasers and others and to sell or otherwise dispose of any such mortgage, hypothecation, lien or charge. 

        ​

        3.39

        To pay all costs, charges and expenses incurred or sustained in or about the promotion and establishment of the Company or which the Company shall consider to be preliminary thereto and to issue shares as fully or in part paid up, and to pay out of the funds of the Company all brokerage and charges incidental thereto. 

        ​

        3.40

        To procure that the central management and control of the Company be located in any country. To cause the Company or any Group Company to be registered and recognised in any foreign jurisdiction, and designate persons therein according to the laws of that foreign jurisdiction or to represent the Company and to accept service for and on behalf of the Company of any process or suit. 

        ​

        3.41

        To do all or any of the matters hereby authorised in any part of the world or in conjunction with or as trustee or agent for any other company or person or by or through any factors, trustees or agents. 

        ​

        3.42

        To grant bonuses to any person or persons who are or have been in the employment of the Company or any Group Companies or Affiliates or any person or persons who are or have been directors of, or consultants to, the Company or any of its Group Companies or Affiliates. 

        ​

        3.43

        To sell, exchange, mortgage, charge, let and grant licences, easements, options, servitudes and other rights over, and in any other manner deal with or dispose of, all or any part of the undertaking, property and assets (present and future) of the Company for any consideration. 

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        3.44

        To cease carrying on or wind up any business or activity of the Company and to cancel any registration of and to wind up or procure the dissolution of the Company in any state or territory. 

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        3.45

        To obtain any provisional order or Act of the Oireachtas or Charter for enabling the Company to carry any of its objects into effect, or for effecting any modification of the Company’s constitution, or for any other purpose which may seem expedient, and to oppose any proceedings or applications which may seem calculated directly or indirectly to prejudice the Company’s interests. 

        ​

        3.46

        To promote freedom of contract, and to resist, insure against, counteract and discourage interference therewith, to join any lawful federation, union or association or do any other lawful act or thing with a view to preventing or resisting directly or indirectly any interruption of or interference with the Company’s or any other trade or business or providing or safeguarding against the same, or resisting or opposing any strike, movement or organisation, which may be thought detrimental to the interests of the Company or any Group Companies or its or their employees and to subscribe to any association or fund for any such purposes. 

        ​

        3.47

        To enter into any arrangement with any government or authority or person that may seem conducive to the Company’s objects or any of them, and to obtain from any such government, authority or person, any legislation, orders, rights, privileges, franchises and concessions which the Directors of the Company may think it desirable to obtain and to carry out, and to exercise and comply with the same. 

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        3.48

        To make or receive gifts by way of capital contribution, gratuity, charitable aid or otherwise. 

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        3.49

        To make voluntary dispositions of all or any part of the property and rights of the Company and to make gifts thereof or gratuitous payments either for no consideration or for a consideration less than the market value of such property or rights or the amount of cash payment or by all or any such methods. 

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        3.50

        To receive voluntary dispositions of all or any part of the property and rights of any other corporation and to receive gifts thereof or gratuitous payments either for no consideration or for a consideration less than the market value of such property or rights or the amount of cash payment or by all or any such methods. 

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        3.51

        To the extent permitted by law, to give whether directly or indirectly, any kind of financial assistance for the purchase of shares in or debentures of the Company or any corporation which is at any given time the Company’s holding company. 

        ​

        3.52

        To do all such other things that the Company may consider incidental or conducive to the attainment of the above objects or as are capable of being conveniently carried on in connection therewith. 

        ​

        NOTE A:   The objects set forth in any sub-clause of this clause shall be regarded as independent objects and shall not, except, where the context expressly so requires, be in any way limited or restricted by reference to or inference from the terms of any other sub-clause, or by the name of the Company. None of such sub-clauses or the objects therein specified or the powers thereby conferred shall be deemed subsidiary or auxiliary merely to the objects mentioned in the first sub-clause of this clause, but the Company shall have full power to exercise all or any of the powers conferred by any part of this clause in any part of the world notwithstanding that the business, property or acts proposed to be transacted, acquired or performed do not fall within the objects of the first sub-clause of this clause. 

        NOTE B:   It is hereby declared that: 

        (a)

        the word “company” in this clause, except where used in reference to the Company shall be deemed to include any partnership or other body of persons whether incorporated or not incorporated and whether domiciled in Ireland or elsewhere and the intention is that the objects specified in each paragraph of this clause shall except where otherwise expressed in such paragraph be in no way limited or restricted by reference to or inference from the terms of any other paragraph; 

        ​

        (b)

        the term “corporation” means any body corporate, corporation, company, partnership, limited liability company or other legal entity wherever incorporated; 

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        (c)

        the term “Group Company” or “Group Companies” means the Company, any holding company of the Company and any subsidiary of the Company or of any such holding company; 

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        (d)

        the term “Affiliate” of any person means any other person that directly or indirectly controls, is controlled by, or is under common control with, such person; and 

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        (e)

        the term “Act” has the meaning ascribed to such term in the Articles of Association. 

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        4.

        The liability of the members is limited. 

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        5.

        The authorised share capital of the Company is US$10,250,000 and €100,000 divided into 1,000,000,000 Ordinary Shares of US$0.01 each, 25,000,000 Deferred Shares of US$0.01 each and 100,000 Euro Deferred Shares of  €1.00 each. 

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        The shares forming the capital may be increased or reduced and be divided into such classes and issued with any special rights, privileges and conditions or with such qualifications as regards preference, dividend, capital, voting or other special incidents, and be held upon such terms as may be attached thereto or as may from time to time be provided by the original or any substituted or amended articles of association and regulations of the Company for the time being, but so that where shares are issued with any preferential or special rights attached thereto such rights shall not be alterable otherwise than pursuant to the provisions of the Company’s articles of association for the time being. 

      

      
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        ARTICLES OF ASSOCIATION 

        OF 

        INNOCOLL HOLDINGS PUBLIC LIMITED COMPANY 

        (As altered pursuant to a special resolution passed on [          ]) 

        Contents 

        	​	
              Part I — Preliminary 

            	​	​	​	​	14 	​	​
	​	
              1.

              Interpretation 

              ​

            	​	​	​	​	14	​	​
	​	
              PART II — REGISTERED OFFICE 

            	​	​	​	​	17 	​	​
	​	
              2.

              Registered Office 

              ​

            	​	​	​	​	17 	​	​
	​	
              PART III — SHARE CAPITAL AND RIGHTS 

            	​	​	​	​	17 	​	​
	​	
              3.

              Share capital 

              ​

            	​	​	​	​	17 	​	​
	​	
              4.

              Rights of shares on issue 

              ​

            	​	​	​	​	17 	​	​
	​	
              5.

              Ordinary Shares 

              ​

            	​	​	​	​	17 	​	​
	​	
              6.

              Deferred Shares 

              ​

            	​	​	​	​	17 	​	​
	​	
              7.

              Euro Deferred Shares 

              ​

            	​	​	​	​	18 	​	​
	​	
              8.

              Redeemable shares 

              ​

            	​	​	​	​	19 	​	​
	​	
              9.

              Variation of rights 

              ​

            	​	​	​	​	19 	​	​
	​	
              10.

              Trusts not recognised 

              ​

            	​	​	​	​	20 	​	​
	​	
              11.

              Disclosure of interests 

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            	​	​	​	​	20 	​	​
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              12.

              Allotment of shares 

              ​

            	​	​	​	​	22 	​	​
	​	
              13.

              Payment of commission 

              ​

            	​	​	​	​	22 	​	​
	​	
              14.

              Payment by instalments 

              ​

            	​	​	​	​	22 	​	​
	​	
              PART IV — SHARE CERTIFICATES 

            	​	​	​	​	23 	​	​
	​	
              15.

              Issue of certificates 

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            	​	​	​	​	23 	​	​
	​	
              16.

              Replacement of certificates 

              ​

            	​	​	​	​	23 	​	​
	​	
              PART V — LIEN ON SHARES 

            	​	​	​	​	23 	​	​
	​	
              17.

              Extent of lien 

              ​

            	​	​	​	​	23 	​	​
	​	
              18.

              Power of sale 

              ​

            	​	​	​	​	24 	​	​
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              19.

              Power to effect transfer 

              ​

            	​	​	​	​	24 	​	​
	​	
              20.

              Proceeds of sale 

              ​

            	​	​	​	​	24 	​	​
	​	
              21.

              Liability on shares 

              ​

            	​	​	​	​	24 	​	​
	​	
              PART VI — CALLS ON SHARES 

            	​	​	​	​	25 	​	​
	​	
              22.

              Making of calls 

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            	​	​	​	​	25 	​	​
	​	
              23.

              Time of call 

              ​

            	​	​	​	​	25 	​	​
	​	
              24.

              Liability of joint holders 

              ​

            	​	​	​	​	25 	​	​
	​	
              25.

              Interest on calls 

              ​

            	​	​	​	​	25 	​	​
	​	
              26.

              Instalments treated as calls 

              ​

            	​	​	​	​	25 	​	​
	​	
              27.

              Power to differentiate 

              ​

            	​	​	​	​	25 	​	​
	​	
              28.

              Interest on monies advanced 

              ​

            	​	​	​	​	26 	​	​
	​	
              PART VII — FORFEITURE 

            	​	​	​	​	26 	​	​
	​	
              29.

              Notice requiring payment 

              ​

            	​	​	​	​	26 	​	​

      

      
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        	​	
              30.

              Power of disposal 

              ​

            	​	​	​	​	26 	​	​
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              31.

              Effect of forfeiture 

              ​

            	​	​	​	​	26 	​	​
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              32.

              Statutory declaration 

              ​

            	​	​	​	​	27 	​	​
	​	
              33.

              Payment of sums due on share issues 

              ​

            	​	​	​	​	27 	​	​
	​	
              34.

              Surrender of shares 

              ​

            	​	​	​	​	27 	​	​
	​	
              PART VIII — TRANSFER OF SHARES 

            	​	​	​	​	27 	​	​
	​	
              35.

              Form of instrument of transfer 

              ​

            	​	​	​	​	27 	​	​
	​	
              36.

              Execution of instrument of transfer 

              ​

            	​	​	​	​	27 	​	​
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              37.

              Stamp duty 

              ​

            	​	​	​	​	28 	​	​
	​	
              38.

              Refusal to register transfers 

              ​

            	​	​	​	​	28 	​	​
	​	
              39.

              Procedure on refusal 

              ​

            	​	​	​	​	29 	​	​
	​	
              40.

              Closing of transfer books 

              ​

            	​	​	​	​	29 	​	​
	​	
              41.

              Absence of registration fees 

              ​

            	​	​	​	​	29 	​	​
	​	
              42.

              Retention of transfer instruments 

              ​

            	​	​	​	​	29 	​	​
	​	
              43.

              Renunciation of allotment 

              ​

            	​	​	​	​	29 	​	​
	​	
              44.

              Transfer of warrants 

              ​

            	​	​	​	​	29 	​	​
	​	
              PART IX — TRANSMISSION OF SHARES 

            	​	​	​	​	29 	​	​
	​	
              45.

              Death of a member 

              ​

            	​	​	​	​	29 	​	​
	​	
              46.

              Transmission on death or bankruptcy 

              ​

            	​	​	​	​	29 	​	​
	​	
              47.

              Rights before registration 

              ​

            	​	​	​	​	30 	​	​
	​	
              PART X — ALTERATION OF SHARE CAPITAL 

            	​	​	​	​	30 	​	​
	​	
              48.

              Increase of capital 

              ​

            	​	​	​	​	30 	​	​
	​	
              49.

              Consolidation, sub-division and cancellation of capital 

              ​

            	​	​	​	​	30 	​	​
	​	
              50.

              Fractions on consolidation 

              ​

            	​	​	​	​	30 	​	​
	​	
              51.

              Purchase of own shares 

              ​

            	​	​	​	​	31 	​	​
	​	
              52.

              Reduction of capital 

              ​

            	​	​	​	​	31 	​	​
	​	
              53.

              Financial assistance 

              ​

            	​	​	​	​	31 	​	​
	​	
              PART XI — GENERAL MEETINGS 

            	​	​	​	​	31 	​	​
	​	
              54.

              General Meetings outside Ireland & satellite meetings 

              ​

            	​	​	​	​	31 	​	​
	​	
              55.

              Annual general meetings 

              ​

            	​	​	​	​	32 	​	​
	​	
              56.

              Extraordinary general meetings 

              ​

            	​	​	​	​	32 	​	​
	​	
              57.

              Convening general meetings 

              ​

            	​	​	​	​	32 	​	​
	​	
              58.

              Postponing or cancelling general meetings 

              ​

            	​	​	​	​	32 	​	​
	​	
              59.

              Class meetings 

              ​

            	​	​	​	​	33 	​	​
	​	
              60.

              Notice of general meetings 

              ​

            	​	​	​	​	33 	​	​
	​	
              PART XII — PROCEEDINGS AT GENERAL MEETINGS 

            	​	​	​	​	34 	​	​
	​	
              61.

              Quorum for general meetings 

              ​

            	​	​	​	​	34 	​	​
	​	
              62.

              Security of the meeting 

              ​

            	​	​	​	​	34 	​	​
	​	
              63.

              Business of the meeting 

              ​

            	​	​	​	​	34 	​	​
	​	
              64.

              Special business 

              ​

            	​	​	​	​	34 	​	​
	​	
              65.

              Chairman of general meetings 

              ​

            	​	​	​	​	35 	​	​
	​	
              66.

              Directors’ and Auditors’ right to attend general meetings 

              ​

            	​	​	​	​	35 	​	​
	​	
              67.

              Adjournment of general meetings 

              ​

            	​	​	​	​	35 	​	​
	​	
              68.

              Resolutions 

              ​

            	​	​	​	​	35 	​	​

      

      
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        	​	
              69.

              Determination of resolutions 

              ​

            	​	​	​	​	36 	​	​
	​	
              70.

              Entitlement to demand poll 

              ​

            	​	​	​	​	36 	​	​
	​	
              71.

              Taking of a poll 

              ​

            	​	​	​	​	36 	​	​
	​	
              72.

              Votes of members 

              ​

            	​	​	​	​	36 	​	​
	​	
              73.

              Voting by joint Holders 

              ​

            	​	​	​	​	37 	​	​
	​	
              74.

              Voting by incapacitated Holders 

              ​

            	​	​	​	​	37 	​	​
	​	
              75.

              Written resolution of the members 

              ​

            	​	​	​	​	37 	​	​
	​	
              76.

              Restriction of voting rights 

              ​

            	​	​	​	​	37 	​	​
	​	
              77.

              Time for objection to voting 

              ​

            	​	​	​	​	37 	​	​
	​	
              78.

              Notice members’ business for extraordinary general meetings 

              ​

            	​	​	​	​	37 	​	​
	​	
              79.

              Notice of member Director nominations for extraordinary general meetings 

              ​

            	​	​	​	​	38 	​	​
	​	
              80.

              Member nominations for extraordinary general meetings 

              ​

            	​	​	​	​	39 	​	​
	​	
              81.

              Appointment of proxy 

              ​

            	​	​	​	​	39 	​	​
	​	
              82.

              Electronic appointment of proxy 

              ​

            	​	​	​	​	40 	​	​
	​	
              83.

              Bodies corporate acting by representatives at meetings 

              ​

            	​	​	​	​	40 	​	​
	​	
              84.

              Effect of proxy appointment 

              ​

            	​	​	​	​	41 	​	​
	​	
              85.

              Effect of revocation of proxy or of authorisation 

              ​

            	​	​	​	​	41 	​	​
	​	
              PART XIII — DIRECTORS 

            	​	​	​	​	41 	​	​
	​	
              86.

              Number of Directors 

              ​

            	​	​	​	​	41 	​	​
	​	
              87.

              Share qualification 

              ​

            	​	​	​	​	41 	​	​
	​	
              88.

              Ordinary remuneration of Directors 

              ​

            	​	​	​	​	41 	​	​
	​	
              89.

              Special remuneration of Directors and use of Company property 

              ​

            	​	​	​	​	41 	​	​
	​	
              90.

              Expenses of Directors 

              ​

            	​	​	​	​	42 	​	​
	​	
              91.

              Other positions 

              ​

            	​	​	​	​	42 	​	​
	​	
              PART XIV — POWERS OF DIRECTORS 

            	​	​	​	​	42 	​	​
	​	
              92.

              Directors’ powers 

              ​

            	​	​	​	​	42 	​	​
	​	
              93.

              Power to delegate 

              ​

            	​	​	​	​	42 	​	​
	​	
              94.

              Appointment of attorneys 

              ​

            	​	​	​	​	42 	​	​
	​	
              95.

              Borrowing powers 

              ​

            	​	​	​	​	42 	​	​
	​	
              96.

              Execution of negotiable instruments 

              ​

            	​	​	​	​	43 	​	​
	​	
              PART XV — APPOINTMENT AND RETIREMENT OF DIRECTORS 

            	​	​	​	​	43 	​	​
	​	
              97.

              Appointment of Directors 

              ​

            	​	​	​	​	43 	​	​
	​	
              98.

              Nominations of Directors 

              ​

            	​	​	​	​	43 	​	​
	​	
              99.

              Retirement 

              ​

            	​	​	​	​	43 	​	​
	​	
              100.

              Deemed reappointment 

              ​

            	​	​	​	​	43 	​	​
	​	
              101.

              Appointment of additional Directors 

              ​

            	​	​	​	​	44 	​	​
	​	
              PART XVI — DISQUALIFICATION AND REMOVAL OF DIRECTORS 

            	​	​	​	​	44 	​	​
	​	
              102.

              Disqualification of Directors 

              ​

            	​	​	​	​	44 	​	​
	​	
              103.

              Removal of Directors 

              ​

            	​	​	​	​	44 	​	​
	​	
              PART XVII — DIRECTORS’ OFFICES AND INTERESTS 

            	​	​	​	​	44 	​	​
	​	
              104.

              Executive offices 

              ​

            	​	​	​	​	44 	​	​
	​	
              105.

              Directors’ interests 

              ​

            	​	​	​	​	45 	​	​
	​	
              106.

              Restriction on Directors’ voting 

              ​

            	​	​	​	​	46 	​	​
	​	
              107.

              Entitlement to grant pensions 

              ​

            	​	​	​	​	47 	​	​

      

      
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        	​	
              PART XVIII — PROCEEDINGS OF DIRECTORS 

            	​	​	​	​	47 	​	​
	​	
              108.

              Convening and regulation of Directors’ meetings 

              ​

            	​	​	​	​	47 	​	​
	​	
              109.

              Quorum for Directors’ meetings 

              ​

            	​	​	​	​	47 	​	​
	​	
              110.

              Voting at Directors’ meetings 

              ​

            	​	​	​	​	47 	​	​
	​	
              111.

              Board committees 

              ​

            	​	​	​	​	47 	​	​
	​	
              112.

              Telecommunication meetings 

              ​

            	​	​	​	​	48 	​	​
	​	
              113.

              Chairman of the Board 

              ​

            	​	​	​	​	48 	​	​
	​	
              114.

              Validity of acts of Directors 

              ​

            	​	​	​	​	48 	​	​
	​	
              115.

              Directors’ resolutions or other documents in writing 

              ​

            	​	​	​	​	48 	​	​
	​	
              116.

              Minutes of meetings 

              ​

            	​	​	​	​	48 	​	​
	​	
              PART XIX — THE SECRETARY 

            	​	​	​	​	49 	​	​
	​	
              117.

              Appointment of Secretary 

              ​

            	​	​	​	​	49 	​	​
	​	
              PART XX — RIGHTS PLAN 

            	​	​	​	​	49 	​	​
	​	
              118.

              Rights plan 

              ​

            	​	​	​	​	49 	​	​
	​	
              PART XXI — THE SEAL 

            	​	​	​	​	49 	​	​
	​	
              119.

              Use of Seal 

              ​

            	​	​	​	​	49 	​	​
	​	
              120.

              Seal for use abroad 

              ​

            	​	​	​	​	49 	​	​
	​	
              121.

              Signature of sealed instruments 

              ​

            	​	​	​	​	49 	​	​
	​	
              PART XXII — DIVIDENDS AND RESERVES 

            	​	​	​	​	50 	​	​
	​	
              122.

              Declaration of dividends 

              ​

            	​	​	​	​	50 	​	​
	​	
              123.

              Interim and fixed dividends 

              ​

            	​	​	​	​	50 	​	​
	​	
              124.

              Payment of dividends 

              ​

            	​	​	​	​	50 	​	​
	​	
              125.

              Deductions from dividends 

              ​

            	​	​	​	​	50 	​	​
	​	
              126.

              Dividends in specie 

              ​

            	​	​	​	​	50 	​	​
	​	
              127.

              Dividend payment mechanism 

              ​

            	​	​	​	​	50 	​	​
	​	
              128.

              Dividends not to bear interest 

              ​

            	​	​	​	​	51 	​	​
	​	
              129.

              Payment to Holders on a particular date 

              ​

            	​	​	​	​	51 	​	​
	​	
              130.

              Unclaimed dividends 

              ​

            	​	​	​	​	51 	​	​
	​	
              131.

              Reserves 

              ​

            	​	​	​	​	51 	​	​
	​	
              PART XXIII — ACCOUNTS 

            	​	​	​	​	52 	​	​
	​	
              132.

              Accounts 

              ​

            	​	​	​	​	52 	​	​
	​	
              PART XXIV — CAPITALISATION OF PROFITS OR RESERVES 

            	​	​	​	​	53 	​	​
	​	
              133.

              Capitalisation of distributable profits and reserves 

              ​

            	​	​	​	​	53 	​	​
	​	
              134.

              Implementation of capitalisation issues 

              ​

            	​	​	​	​	53 	​	​
	​	
              PART XXV — NOTICES 

            	​	​	​	​	53 	​	​
	​	
              135.

              Notices in writing 

              ​

            	​	​	​	​	53 	​	​
	​	
              136.

              Service of notices 

              ​

            	​	​	​	​	53 	​	​
	​	
              137.

              Service on joint Holders 

              ​

            	​	​	​	​	55 	​	​
	​	
              138.

              Service on transfer or transmission of shares 

              ​

            	​	​	​	​	55 	​	​
	​	
              139.

              Signature to notices 

              ​

            	​	​	​	​	55 	​	​
	​	
              140.

              Deemed receipt of notices 

              ​

            	​	​	​	​	55 	​	​
	​	
              PART XXVI — WINDING UP 

            	​	​	​	​	55 	​	​
	​	
              141.

              Distribution on winding up 

              ​

            	​	​	​	​	55 	​	​
	​	
              142.

              Sale by a liquidator 

              ​

            	​	​	​	​	56 	​	​

      

      
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        	​	
              143.

              Distribution in specie 

              ​

            	​	​	​	​	56 	​	​
	​	
              PART XXVII — MISCELLANEOUS 

            	​	​	​	​	56 	​	​
	​	
              144.

              Inspection and secrecy 

              ​

            	​	​	​	​	56 	​	​
	​	
              145.

              Closing the Register or fixing record date 

              ​

            	​	​	​	​	56 	​	​
	​	
              146.

              Destruction of records 

              ​

            	​	​	​	​	57 	​	​
	​	
              147.

              Untraced shareholders 

              ​

            	​	​	​	​	58 	​	​
	​	
              148.

              Indemnity 

              ​

            	​	​	​	​	59 	​	​
	​	
              149.

              Alteration of Articles 

              ​

            	​	​	​	​	60	​	​

      

      
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        Part I — Preliminary 

        1.

        Interpretation 

        ​

        (a)

        The provisions of the Companies Act 2014 which are stated therein to apply to a public limited company (or a PLC as that term is defined in the Companies Act 2014), save to the extent that its constitution is permitted to provide or state otherwise, will apply to the Company subject to the alterations contained in these Articles and will bind the Company and its members. 

        ​

        (b)

        Without prejudice to Section 1007(4) of the Companies Act 2014 and save as otherwise expressly provided in these Articles, where a provision of these Articles covers substantially the same subject matter as any optional provision of the Companies Act 2014, any such optional provision of the Companies Act 2014 shall be deemed not to apply to the Company and, for the avoidance of doubt, these Articles shall be deemed to have effect and prevail over the terms of such optional provisions of the Companies Act 2014 (and the expression “optional provision” shall take its meaning from Section 1007(2) of the Companies Act 2014). 

        ​

        (c)

        In these Articles the following expressions shall, unless the context otherwise requires, have the following meanings: 

        ​

        
          “Act” 

        

        the Companies Act 2014 and all acts of the Oireachtas and statutory instruments which are to be read as one with or construed or read together as one with the Companies Act 2014 and every statutory modification, amendment, extension or re-enactment thereof for the time being in force or, where the context so admits or requires, any one or more of such acts; 

        
          “address” 

        

        includes any number or address used for the purposes of communication by way of electronic mail or other electronic communication; 

        
          “advanced electronic signature” 

        

        the meaning given to that expression in the Electronic Commerce Act 2000; 

        
          “Approved Nominee” 

        

        a person appointed under contractual arrangements with the Company to hold Shares or rights or interests in Shares on a nominee basis including, without limitation, in connection with the provision of depository, system operator and/or back-entry transfer services; 

        
          “Articles” 

        

        these articles of association for the time being in force; 

        
          “Assistant Secretary” 

        

        any person appointed by the Secretary or the Board from time to time to assist the Secretary; 

        
          “Auditor” or “Auditors” 

        

        the statutory auditor or auditors from time to time of the Company; 

        
          “Clear Days” 

        

        in relation to the period of a notice, that period excluding the day when the notice is given or deemed to be given and the day for which it is given or on which it is to take effect; 

        
          “Company” 

        

        Innocoll Holdings Public Limited Company (company registration number 544604); 

        
          “Company Conversion Notice” 

        

        a notice in writing from the Company to a Holder of Ordinary Shares notifying them of the conversion of a specified number of the Ordinary Shares held by them in accordance with Article 5; 

      

      
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          “Deferred Shares” 

        

        the deferred shares of US$0.01 each (or such other nominal value as may result from any reorganisation of capital) in the capital of the Company, having the rights and being subject to the restrictions set out in these Articles; 

        
          “Directors” or “Board” 

        

        the directors from time to time of the Company or the directors present at a meeting of the board of directors and includes any person occupying the position of director by whatever name; 

        
          “dividend” 

        

        includes interim dividends and bonus dividends; 

        
          “electronic communication” 

        

        the meaning given to that word in the Electronic Commerce Act 2000; 

        
          “electronic signature” 

        

        the meaning given to that word in the Electronic Commerce Act 2000; 

        
          “Euro Deferred Shares” 

        

        the deferred shares of  €1.00 each (or such other nominal value as may result from any reorganisation of capital) in the capital of the Company, having the rights and being subject to the restrictions set out in these Articles; 

        
          “Exchange” 

        

        any securities exchange or other system on which the shares of the Company may be listed or otherwise authorised for trading from time to time; 

        
          “Exchange Act” 

        

        The U.S. Securities and Exchange Act of 1934, as amended; 

        
          “Group” 

        

        the Company and its subsidiaries for the time being; 

        
          “Holder” or “Shareholder” 

        

        in relation to any share, the person whose name is entered in the Register as the holder of the share or, where the context permits, the persons whose names are entered in the Register as the joint holders of shares; 

        
          “Member Associated Person” 

        

        with respect to any member means (A) any person controlling, directly or indirectly, or acting as a “group” (as such term is used in Rule 13d-5(b) under the Exchange Act) with, such member, (B) any beneficial owner of shares of the Company owned of record or beneficially by such member and (C) any person controlling, controlled by or under common control with such Member Associated Person; 

        
          “Memorandum” 

        

        the memorandum of association of the Company for the time being in force; 

        
          “Merger” 

        

        the cross-border merger between Innocoll AG and the Company with Innocoll AG being the disappearing entity and the Company being the surviving entity in a merger by acquisition; 

        
          “Ordinary Resolution” 

        

        a resolution of the Company’s shareholders passed by a simple majority of the votes cast by those present in person or by proxy at a meeting and who are entitled to vote at such meeting (or, if in writing, signed by all of the Shareholders entitled to attend and vote); 

        
          “Ordinary Shares” 

        

        ordinary shares of US$0.01 each (or such other nominal value as may result from any reorganisation of capital) in the capital of the Company, having the rights and being subject to the restrictions set out in these Articles; 

      

      
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          “paid up” 

        

        paid-up as to the nominal value and any premium payable in respect of the issue of any shares and includes credited as paid-up; 

        
          “qualified certificate” 

        

        the meaning given to that word in the Electronic Commerce Act 2000; 

        
          “Redeemable Shares” 

        

        shares in the capital of the Company that are redeemable in accordance with the provisions of these Articles or the terms of issue of such class or series of shares; 

        
          “Register” 

        

        the register of members to be kept by the Company as required by the Act; 

        
          “Registered Office” 

        

        the registered office for the time being of the Company within the meaning of Section 50 of the Act; 

        
          “Seal” 

        

        the common seal of the Company or (where relevant) the official securities seal kept by the Company pursuant to the Act; 

        
          “SEC” 

        

        the Securities and Exchange Commission of the United States; 

        
          “Secretary” 

        

        the Secretary of the Company and any person appointed to perform the duties of the Secretary of the Company or if there are joint secretaries any of the joint secretaries; 

        
          “Share” or “share” 

        

        in relation to any share, unless specified otherwise or the context otherwise requires, any share in the capital of the Company; 

        
          “Special Resolution” 

        

        a resolution of the Company’s shareholders passed by at least 75% of the votes cast by those present in person or by proxy at a meeting and who are entitled to vote at such meeting (or, if in writing, signed by all of the Shareholders entitled to attend and vote); and 

        
          “Treasury Shares” 

        

        shares in the Company which have been redeemed or purchased by the Company as are being held by the Company as treasury shares in accordance with Chapter 6 of Part 3 of the Act.

        (d)

        Expressions in these Articles referring to writing shall be construed, unless the contrary intention appears, as including references to printing, lithography, photography, electronic mail and any other modes of representing or reproducing words in a visible form except as provided in these Articles and/or where it constitutes writing in electronic form sent to the Company and the Company has agreed to its receipt in such form. Expressions in these Articles referring to execution of any document shall include any mode of execution whether under seal or under hand or any mode of electronic signature as shall be approved by the Directors. Expressions in these Articles referring to receipt or issuance of any electronic communications shall, unless the contrary intention appears, be limited to receipt in such manner as the Company has approved. 

        ​

        (e)

        Unless the contrary intention appears, the use of the word “address” in these Articles in relation to electronic communications includes any number or address used for the purpose of such communications. 

        ​

        (f)

        Unless specifically defined herein or the context otherwise requires, words or expressions contained in these Articles shall bear the same meaning as in the Act but excluding any statutory modification thereof not in force when these Articles become binding on the Company. 

        ​

        (g)

        The headings and captions included in these Articles are inserted for convenience of reference only and shall not be considered a part of or affect the construction or interpretation of these Articles. 

        ​

      

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        (h)

        References in these Articles to any enactment or any section or any regulation or provision thereof shall mean such enactment, section or provision as the same may be amended or re-enacted and may be from time to time and for the time being in force. 

        ​

        (i)

        In these Articles the masculine gender shall include the feminine and neuter, and vice versa, and the singular number shall include the plural, and vice versa, and words importing persons shall include firms or companies. 

        ​

        (j)

        References in these Articles to US$, USD, or dollars shall mean the currency of the United States of America and to € or c or Euro or cent shall mean the currency for the time being of Ireland. 

        ​

        (k)

        Reference herein to a share (or to a holding of shares) being in uncertificated form are references to that share being an uncertificated unit of a security. 

        ​

        PART II — REGISTERED OFFICE 

        2.

        Registered Office 

        ​

        The Registered Office shall be at such place in Ireland as the Board from time to time shall decide. 

        PART III — SHARE CAPITAL AND RIGHTS 

        3.

        Share capital 

        ​

        Without prejudice to the power of the Board to issue and allot shares pursuant to the following Articles, the authorised share capital of the Company is US$10,250,000 and €100,000 divided into 1,000,000,000 Ordinary Shares of US$0.01 each, 25,000,000 Deferred Shares of US$0.01 each and 100,000 Euro Deferred Shares of  €1.00 each. 

        4.

        Rights of shares on issue 

        ​

        Without prejudice to any special rights conferred on the Holders of any existing shares or class of shares and subject to the provisions of the Act, any share may be issued with such rights or restrictions as the Company may by Ordinary Resolution determine. 

        5.

        Ordinary Shares 

        ​

        (a)

        On the receipt by a Holder of Ordinary Shares of cash compensation in connection with the Merger (a “Withdrawing Shareholder”), the Company may, by the service of a Company Conversion Notice, convert some or all of the Ordinary Shares held by a Withdrawing Shareholder (the “Withdrawing Shares”) into fully paid Deferred Shares on a one for one basis. Upon conversion, the Withdrawing Shares shall convert by an automatic process of re-designation into Deferred Shares, without any further action by a Withdrawing Shareholder. 

        ​

        (b)

        The conversion of any Ordinary Shares into Deferred Shares in accordance with this Article 5 shall not constitute an alteration, abrogation, variation or modification of the rights attached to those classes of shares. 

        ​

        6.

        Deferred Shares 

        ​

        (a)

        The holders of the Deferred Shares will not be entitled to receive any dividend or distribution and will not be entitled to receive notice of, nor to attend, speak or vote at any meeting of some or all of the Shareholders of the Company. On a return of assets, whether on liquidation or otherwise, the holders of the Deferred Shares will only be entitled to the payment of a total of €0.001 on such shares provided the net proceeds of the liquidation exceed €100,000,000,000,000 pari passu with the holders of Ordinary Shares and the Euro Deferred Shares and the holders of the Deferred Shares will not be entitled to any further participation in the assets or profits of the Company thereafter. 

        ​

        (b)

        The Company may at any time by serving notice on a Holder of the Deferred Shares: 

        ​

        (i)

        acquire some or all of the Deferred Shares held by that Holder otherwise than for valuable consideration in accordance with section 102(1) of the Act; 

        ​

      

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        (ii)

        appoint any person to execute on behalf of such Holder a transfer(s) in respect of the said Deferred Shares and/or an agreement to transfer the same otherwise than for valuable consideration to the Company (or to any such other person as the Company may nominate) and/or any other document the Board considers necessary or desirable to effectuate the aforementioned acquisition; and 

        ​

        (iii)

        cancel any Deferred Shares so acquired. 

        ​

        (c)

        A Holder of Deferred Shares may at any time, by serving notice on the Company, request the Company to acquire some or all of the Deferred Shares held by that Holder otherwise than for valuable consideration in accordance with section 102(1) of the Act. In that event, the Company may: 

        ​

        (i)

        appoint any person to execute on behalf of the requesting Holder a transfer(s) in respect of the said Deferred Shares and/or an agreement to transfer the same otherwise than for valuable consideration to the Company (or to any such other person as the Company may nominate) and/or any other document the Board considers necessary or desirable to effectuate the aforementioned acquisition; and 

        ​

        (ii)

        cancel any Deferred Shares so acquired. 

        ​

        (d)

        In accordance with section 1040(3) of the Act the Company shall, not later than three years after any acquisition by it of any Deferred Shares as aforesaid, cancel such shares (except those which, or any interest of the Company in which, it shall have previously disposed of) and reduce the amount of the issued share capital by the nominal value of the shares so cancelled and the Directors may take such steps as are requisite to enable the Company to carry out its obligations under that subsection without complying with sections 84 and 85 of the Act. 

        ​

        (e)

        Neither the acquisition by the Company otherwise than for valuable consideration of all or any of the Deferred Shares as aforesaid nor the cancellation thereof by the Company in accordance with this Article 6 shall constitute a variation or abrogation of the rights or privileges attached to the Deferred Shares and accordingly the Deferred Shares or any of them may be so acquired, redeemed and cancelled without any such consent or sanction on the part of the holders thereof. The rights conferred upon the Holders of the Deferred Shares shall not be deemed to be varied or abrogated by the creation of further shares ranking in priority thereto or pari passu therewith. 

        ​

        7.

        Euro Deferred Shares 

        ​

        (a)

        The holders of the Euro Deferred Shares will not be entitled to receive any dividend or distribution and will not be entitled to receive notice of, nor to attend, speak or vote at any meeting of some or all of the Shareholders of the Company. On a return of assets, whether on liquidation or otherwise, the holders of the Euro Deferred Shares will only be entitled to the payment of an aggregate sum of €0.001 on all such shares provided the net proceeds of the liquidation exceed €100,000,000,000 pari passu with the holders of Ordinary Shares and the Deferred Shares and the holders of the Euro Deferred Shares will not be entitled to any further participation in the assets or profits of the Company thereafter. 

        ​

        (b)

        The Company may at any time by serving notice on the Holders of the Euro Deferred Shares: 

        ​

        (i)

        acquire all or any of the Euro Deferred Shares in issue otherwise than for valuable consideration in accordance with section 102(1) of the Act and without obtaining the sanction of the Holders thereof; 

        ​

        (ii)

        appoint any person to execute on behalf of the Holders of the said Euro Deferred Shares a transfer thereof and/or an agreement to transfer the same otherwise than for valuable consideration to the Company (or to any such other person as the Company may nominate) and/or any other document the Board considers necessary or desirable to effectuate the aforementioned acquisition; 

        ​

        (iii)

        cancel any Euro Deferred Shares so acquired; and 

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        (iv)

        pending such acquisition and/or transfer, retain the certificate (if any) for such Euro Deferred Shares. 

        ​

        (c)

        In accordance with section 1040(3) of the Act the Company shall, not later than three years after any acquisition by it of any Euro Deferred Shares as aforesaid, cancel such shares (except those which, or any interest of the Company in which, it shall have previously disposed of) and reduce the amount of the issued share capital by the nominal value of the shares so cancelled and the Directors may take such steps as are requisite to enable the Company to carry out its obligations under that subsection without complying with sections 84 and 85 of the Act. 

        ​

        (d)

        Neither the acquisition by the Company otherwise than for valuable consideration of all or any of the Euro Deferred Shares as aforesaid nor the cancellation thereof by the Company in accordance with this Article 7 shall constitute a variation or abrogation of the rights or privileges attached to the Euro Deferred Shares and accordingly the Euro Deferred Shares or any of them may be so acquired, redeemed and cancelled without any such consent or sanction on the part of the holders thereof. The rights conferred upon the Holders of the Euro Deferred Shares shall not be deemed to be varied or abrogated by the creation of further shares ranking in priority thereto or pari passu therewith. 

        ​

        8.

        Redeemable shares 

        ​

        (a)

        Subject to the provisions of the Act, any shares may be issued on the terms that they are, or at the option of the Company are, liable to be redeemed on such terms and in such manner as the Company may by Special Resolution determine. In addition and subject as aforesaid, the Company is hereby authorised to redeem (on such terms as may be contained in, or be determined pursuant to the provisions of, these Articles or a Special Resolution of the Company) any of its shares which have been converted into redeemable shares. Subject as aforesaid, the Company may cancel any shares so redeemed or may hold them as Treasury Shares and re-issue such Treasury Shares as shares of any class or classes or cancel them subject to the provisions of the Act. 

        ​

        (b)

        Subject to the provisions of the Act, the Company may convert any of its shares into redeemable shares. 

        ​

        (c)

        Subject to Article 8(d), an Ordinary Share shall be automatically converted into a Redeemable Share on, and from the time of, the existence or creation of an agreement, transaction or trade (in this Article an “arrangement”) between the Company and any person pursuant to which the Company acquires, agrees to acquire, or will acquire Ordinary Shares, or an interest in Ordinary Shares, from such person. In these circumstances, the acquisition of such shares or interest in shares by the Company shall constitute the redemption of a Redeemable Share in accordance with Chapter 6 of Part 3 and Chapter 5 of Part 17 of the Act. 

        ​

        (d)

        The provisions of Article 8(c) shall not apply to a particular arrangement if the Board resolves, prior to the existence or creation of that arrangement, that the arrangement concerned is to be treated as a purchase or acquisition of shares pursuant to Article 51(a) or as otherwise permitted by the Act (including Section 102(1) of the Act), in which case the arrangement shall be so executed as a purchase or acquisition, in accordance with Article 51(a) and/or the relevant provision(s) of the Act, and not a redemption of shares. 

        ​

        9.

        Variation of rights 

        ​

        (a)

        The rights attached to any class of shares may be varied or abrogated with the consent in writing of the Holders of three-fourths in nominal value of the issued shares of that class, or with the sanction of a Special Resolution passed at a separate general meeting of the Holders of the shares of the class provided that, if the relevant class of Holders has only one Holder, that person present in person or by proxy shall constitute the necessary quorum. The rights attached to any class of shares may be so varied or abrogated either whilst the Company is a going concern or during or in contemplation of a winding-up. To every such meeting the provisions of Article 61 shall apply. 

        ​

      

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        (b)

        The rights conferred upon the Holders of the shares of any class issued with preferred or other rights shall not, unless otherwise expressly provided by these Articles or the terms of the issue of the shares of that class, be deemed to be varied by a purchase or redemption by the Company of its own shares or by the creation or issue of further shares ranking pari passu therewith or subordinate thereto. 

        ​

        10.

        Trusts not recognised 

        ​

        Except as required by law, no person shall be recognised by the Company as holding any share upon any trust, and the Company shall not be bound by or be compelled in any way to recognise (even when having notice thereof) any equitable, contingent, future or partial interest in any share or any interest in any fractional part of a share or (except only as by these Articles or by law otherwise provided) any other rights in respect of any share except an absolute right to the entirety thereof in the Holder. This shall not preclude the Company from requiring the members or a transferee of shares to furnish the Company with information as to the beneficial ownership of any share when such information is reasonably required by the Company. The obligations of an Approved Nominee under this Article shall be limited to disclosure of such information relating to the beneficial ownership of any share as has been recorded by it pursuant to arrangements entered into by the Company or approved by the Directors pursuant to which it was appointed an Approved Nominee. 

        11.

        Disclosure of interests 

        ​

        If at any time the Directors are satisfied that any member, or any other person appearing to be interested in shares held by such member: 

        (a)

        (A) has been duly served with a notice under Section 1062 of the Act (a “Section 1062 notice”) and is in default for the prescribed period (as defined in sub-paragraph (f)(ii)) in supplying to the Company the information thereby required; or (B) in purported compliance with such a Section 1062 notice, has made a statement which is false or inadequate in a material particular, then the Directors may, in their absolute discretion at any time thereafter by notice (a “direction notice”) to such member direct that: 

        ​

        (i)

        in respect of the shares in relation to which the default occurred (the “default shares”) the member shall not be entitled to attend or to vote at a general meeting either personally or by proxy or to exercise any other right conferred by membership in relation to meetings of the Company; and 

        ​

        (ii)

        where the nominal value of the default shares represents at least one-quarter of one per cent. (0.25%) of the nominal value of the issued shares of the class concerned, then the direction notice may additionally direct that: 

        ​

        (A)

        except in a liquidation of the Company, no payment shall be made of any sums due from the Company on the default shares, whether in respect of capital or dividend or otherwise, and the Company shall not have any liability to pay interest on any such payment when it is finally paid to the member (but the provisions of this sub-paragraph (A) shall apply only to the extent permitted from time to time by the listing rules of any Exchange on which the Company’s shares are listed); and/or 

        ​

        (B)

        no other distribution shall be made on the default shares; and/or 

        ​

        (C)

        no transfer of any of the default shares held by such member shall be registered unless: 

        ​

        (I)

        the member is not himself in default as regards supplying the information requested and the transfer when presented for registration is accompanied by a certificate by the member in such form as the Directors may in their absolute discretion require to the effect that after due and careful enquiry the member is satisfied that no person in default as regards supplying such information is interested in any of the shares the subject of the transfer; or 

        ​

        (II)

        the transfer is an approved transfer (as defined in sub-paragraph(f)(iii)); 

        ​

      

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        and the Company shall send to each other person appearing to be interested in the shares the subject of any direction notice a copy of the notice, but the failure or omission by the Company to do so shall not invalidate such notice. 

        (b)

        Where any person appearing to be interested in the default shares has been duly served with a direction notice or copy thereof and the default shares which are the subject of such direction notice are held by an Approved Nominee, the provisions of this Article shall be treated as applying only to such default shares held by the Approved Nominee and not (insofar as such person’s apparent interest is concerned) to any other shares held by the Approved Nominee. 

        ​

        (c)

        Where the member upon whom a Section 1062 notice is served is an Approved Nominee acting in its capacity as such, the obligations of the Approved Nominee as a member of the Company shall be limited to disclosing to the Company such information relating to any person appearing to be interested in the shares held by it as has been recorded by it pursuant to the arrangements entered into by the Company or approved by the Directors pursuant to which it was appointed as an Approved Nominee. 

        ​

        (d)

        Any direction notice shall immediately cease to have effect: 

        ​

        (i)

        in relation to any shares which are transferred by such member by means of an approved transfer; or 

        ​

        (ii)

        when the Directors are satisfied that such member and any other person appearing to be interested in shares held by such member, has given to the Company the information required by the relevant Section 1062 notice. 

        ​

        On any direction notice ceasing to have effect the Company shall pay to the Holder (or, in the case of joint Holders, the first named Holder) on the Register in respect of the default shares as of the record date of any such dividend, distribution or other payment the amount withheld pursuant to the provisions of this Article subject always to the provisions of Article 127 which shall be deemed to apply equally to any amount so withheld. 

        (e)

        The Directors may at any time give notice cancelling a direction notice. 

        ​

        (f)

        For the purposes of this Article: 

        ​

        (i)

        a person shall be treated as appearing to be interested in any shares if the member holding such shares has given to the Company a notification under the said Section 1062 which either (i) names such person as being so interested or (ii) fails to establish the identities of all those interested in the shares and (after taking into account the said notification and any other relevant Section 1062 notification) the Company knows or has reasonable cause to believe that the person in question is or may be interested in the shares; 

        ​

        (ii)

        the prescribed period is twenty eight (28) days from the date of service of the said Section 1062 notice unless the nominal value of the default shares represents at least one-quarter of one per cent. (0.25%) of the nominal value of the issued shares of that class, in which case the prescribed period is fourteen (14) days from that date; 

        ​

        (iii)

        a transfer of shares is an “approved transfer” if but only if: 

        ​

        (A)

        it is a transfer of shares to an offeror by way or in pursuance of acceptance of an offer made to all the Holders (or all the Holders other than the person making the offer and his nominees) of the shares in the Company to acquire those shares or a specified proportion of them; or 

        ​

        (B)

        the Directors are satisfied that the transfer is made pursuant to a sale of the whole of the beneficial ownership of the shares the subject of the transfer to a party unconnected with the member and with other persons appearing to be interested in such shares; or 

        ​

        (C)

        the transfer results from a sale made through the Exchange. 

        ​

      

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        (g)

        Nothing contained in this Article shall limit the power of the Company under Section 1066 of the Act. 

        ​

        (h)

        For the purpose of establishing whether or not the terms of any notice served under this Article shall have been complied with the decision of the Directors in this regard shall be final and conclusive and shall bind all persons interested. 

        ​

        12.

        Allotment of shares 

        ​

        (a)

        Subject to the provisions of these Articles relating to new shares, the unissued shares of the Company shall be at the disposal of the Board, and it may (subject to the provisions of the Act) issue, allot, grant options over or otherwise dispose of them to such persons, on such terms and conditions and at such times as it may consider to be in the best interests of the Company and its shareholders, but so that no share shall be issued at a discount save in accordance with Sections 71(4) and 1026 of the Act, and so that, in the case of shares offered to the public for subscription, the amount payable on application on each share shall not be less than one-quarter (1/4) of the nominal amount of the share and the whole of any premium thereon. 

        ​

        (b)

        Subject to any requirement to obtain the approval of shareholders under any laws, regulations or the rules of the Exchange, the Board is authorised, from time to time, in its discretion, to grant such persons, for such periods and upon such terms as the Board deems advisable, options to purchase or subscribe for such number of shares of any class or classes or of any series of any class as the Board may deem advisable, and to cause warrants or other appropriate instruments evidencing such options to be issued. 

        ​

        (c)

        The Board is, for the purposes of Section 1021 of the Act, generally and unconditionally authorised to exercise all powers of the Company to allot and issue relevant securities (as defined by the said Section 1021) up to the amount of the Company’s authorised share capital from time to time and to allot and issue any shares purchased by the Company pursuant to the provisions of Parts 3 and 17 of the Act and held as Treasury Shares and this authority shall expire five years from the date of adoption of these Articles. 

        ​

        (d)

        The Board is hereby empowered pursuant to Sections 1021 and 1023(3) of the Act to allot equity securities within the meaning of the said Section 1023 for cash pursuant to the authority conferred by Article 12(c) as if Section 1022 of the Act did not apply to any such allotment. The Company may before the expiry of such authority make an offer or agreement which would or might require equity securities to be allotted after such expiry and the Board may allot equity securities in pursuance of such an offer or agreement as if the power conferred by this paragraph had not expired. 

        ​

        (e)

        Nothing in these Articles shall preclude the Board from recognising a renunciation of the allotment of any shares by any allottee in favour of some other person. 

        ​

        13.

        Payment of commission 

        ​

        Subject to the Act, the Company may pay commission to any person in consideration of a person subscribing or agreeing to subscribe, whether absolutely or conditionally, for any shares in the Company or procuring or agreeing to procure subscriptions, whether absolute or conditional, for any shares in the Company on such terms and subject to such conditions as the Directors may determine, including, without limitation, by paying cash or allotting and issuing fully or partly paid shares or any combination of the two. The Company may also, on any issue of shares, pay such brokerage as may be lawful. 

        14.

        Payment by instalments 

        ​

        If by the conditions of allotment of any share the whole or part of the amount or issue price thereof shall be payable by instalments, every such instalment when due shall be paid to the Company by the person who for the time being shall be the Holder of the share. 

      

      
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        PART IV — SHARE CERTIFICATES 

        15.

        Issue of certificates 

        ​

        (a)

        Unless otherwise provided for by the Board or the rights attaching to or by the terms of issue of any particular shares, or to the extent required by the Exchange, a depository, or any operator of any clearance or settlement system, no Shareholder shall be entitled to receive a share certificate for any shares of any class held by him (nor on transferring a part of a holding, to a certificate for the balance). 

        ​

        (b)

        Any share certificate, if issued, shall specify the number of shares in respect of which it is issued and the amount paid thereon or the fact that they are fully paid, as the case may be, and may otherwise be in such form as shall be determined by the Board. Such certificates may be under Seal or under a securities seal as provided for by Section 1017 of the Act. All certificates for shares shall be consecutively numbered or otherwise identified and shall specify the shares to which they relate. The name and address of the person to whom the shares represented thereby are issued, with the number of shares and date of issue, shall be entered in the Register. All certificates surrendered to the Company for transfer shall be cancelled and no new certificate shall be issued until the former certificate for a like number of shares shall have been surrendered and cancelled. The Board may authorise certificates to be issued with the Seal or the securities seal and that any signature on such certificates need not be autographic but may be affixed to such certificates by some mechanical means or may be a facsimile printed on such certificates. In respect of a share or shares held jointly by several persons, the Company shall not be bound to issue a certificate or certificates to each such person, and the issue and delivery of a certificate or certificates to one of several joint holders shall be sufficient delivery to all such holders. 

        ​

        (c)

        Except as required by law, the rights and obligations of the Holders of uncertificated shares and the rights and obligations of the Holders of the shares represented by certificates of the same class, if any, shall be identical. 

        ​

        16.

        Replacement of certificates 

        ​

        (a)

        Subject to Article 16(b), if a share certificate is defaced, worn out, lost, stolen or destroyed, it may be replaced on such terms (if any) as to evidence and indemnity and payment of any exceptional expenses incurred by the Company in investigating evidence or in relation to any indemnity as the Directors may determine, but otherwise free of charge, and (in the case of defacement or wearing out) on delivery up of the old certificate. 

        ​

        (b)

        Any person claiming a share certificate to have been lost, destroyed or stolen, shall make an affidavit or affirmation of that fact, and if required by the Board shall advertise the same in such manner as the Board may require, and shall give the Company, its transfer agents and its registrars a bond of indemnity, in form and with one or more sureties satisfactory to the Board or anyone designated by the Board with authority to act thereon, whereupon a new certificate may be executed and delivered of the same tenor and for the same number of shares as the one alleged to have been lost, destroyed or stolen. 

        ​

        PART V — LIEN ON SHARES 

        17.

        Extent of lien 

        ​

        The Company shall have a first and paramount lien on every share (not being a fully paid share) for all monies (whether presently payable or not) payable at a fixed time or called in respect of that share. The Directors, at any time, may declare any share to be wholly or in part exempt from the provisions of this Article. The Company’s lien on a share shall extend to all monies payable in respect of it. 

      

      
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        18.

        Power of sale 

        ​

        The Company may sell in such manner as the Directors determine any share on which the Company has a lien if a sum in respect of which the lien exists is presently payable and is not paid within fourteen (14) Clear Days after notice demanding payment, and stating that if the notice is not complied with the share may be sold, has been given to the Holder of the share or to the person entitled to it by reason of the death or bankruptcy of the Holder. 

        19.

        Power to effect transfer 

        ​

        To give effect to a sale, the Directors may authorise some person to execute an instrument of transfer of the share(s) sold to, or in accordance with the directions of, the purchaser. The purchaser shall be entered in the Register as the Holder of the share comprised in any such transfer and he shall not be bound to see to the application of the purchase monies nor shall his title to the share be affected by any irregularity in or invalidity of the proceedings in reference to the sale, and after the name of the purchaser has been entered in the Register, the remedy of any person aggrieved by the sale shall be in damages only and against the Company exclusively. 

        20.

        Proceeds of sale 

        ​

        The net proceeds of the sale, after payment of the costs, shall be applied in payment of so much of the sum for which the lien exists as is presently payable and any residue (upon surrender to the Company for cancellation of the certificate for the shares sold and subject to a like lien for any monies not presently payable as existed upon the shares before the sale) shall be paid to the person entitled to the shares at the date of the sale. 

        21.

        Liability on shares 

        ​

        Whenever any law for the time being of any country, state or place imposes or purports to impose any immediate or future or possible liability upon the Company to make any payment or empowers any government or taxing authority or government official to require the Company to make any payment in respect of any shares registered in the Register as held either jointly or solely by any Holders or in respect of any dividends, bonuses or other monies due or payable or accruing due or which may become due or payable to such Holder by the Company on or in respect of any shares registered as mentioned above or for or on account or in respect of any Holder and whether in consequence of: 

        (a)

        the death of such Holder; 

        ​

        (b)

        the non-payment of any income tax or other tax by such Holder; 

        ​

        (c)

        the non-payment of any estate, probate, succession, death, stamp or other duty by the executor or administrator of such member or by or out of his estate; or 

        ​

        (d)

        any other act or thing; 

        ​

        in every such case (except to the extent that the rights conferred upon Holders of any class of shares render the Company liable to make additional payments in respect of sums withheld on account of the foregoing): 

        (A)

        the Company shall be fully indemnified by such Holder or his executor or administrator from all liability; 

        ​

        (B)

        the Company shall have a lien upon all dividends and other monies payable in respect of the shares registered in the Register as held either jointly or solely by such Holder for all monies paid or payable by the Company as referred to above in respect of such shares or in respect of any dividends or other monies thereon or for or on account or in respect of such Holder under or in consequence of any such law, together with interest at the rate of fifteen per cent. (15%) per annum (or such other rate as the Board may determine) thereon from the date of payment to date of repayment, and the Company may deduct or set off against such dividends or other monies so payable any monies paid or payable by the Company as referred to above together with interest at the same rate; 

        ​

      

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        (C)

        the Company may recover as a debt due from such Holder or his executor or administrator (wherever constituted) any monies paid by the Company under or in consequence of any such law and interest thereon at the rate and for the period referred to above in excess of any dividends or other monies then due or payable by the Company; 

        ​

        (D)

        the Company may if any such money is paid or payable by it under any such law as referred to above refuse to register a transfer of any shares by any such Holder or his executor or administrator until such money and interest is set off or deducted as referred to above or in the case that it exceeds the amount of any such dividends or other monies then due or payable by the Company, until such excess is paid to the Company; 

        ​

        (E)

        subject to the rights conferred upon the holders of any class of shares, nothing in this Article will prejudice or affect any right or remedy which any law may confer or purport to confer on the Company. As between the Company and every such Holder as referred to above (and, his executor, administrator and estate, wherever constituted), any right or remedy which such law shall confer or purport to confer on the Company shall be enforceable by the Company. 

        ​

        Nothing in this Article shall impose any liability or obligation on an Approved Nominee or on any Share held by an Approved Nominee acting in its capacity as such. 

        PART VI — CALLS ON SHARES 

        22.

        Making of calls 

        ​

        Subject to the terms of allotment, the Directors may make calls upon the members in respect of any monies unpaid on their shares and each member (subject to receiving at least fourteen (14) Clear Days’ notice specifying when and where payment is to be made) shall pay to the Company as required by the notice the amount called on his shares. A call may be required to be paid by instalments. A call may be revoked before receipt by the Company of a sum due thereunder, in whole or in part and payment of a call may be postponed in whole or in part. A person upon whom a call is made shall remain liable for calls made upon him notwithstanding the subsequent transfer of the shares in respect of which the call was made. 

        23.

        Time of call 

        ​

        A call shall be deemed to have been made at the time when the resolution of the Directors authorising the call was passed and may be required to be made by instalments. 

        24.

        Liability of joint holders 

        ​

        The joint Holders of a share shall be jointly and severally liable to pay all calls in respect thereof. 

        25.

        Interest on calls 

        ​

        If a call remains unpaid after it has become due and payable the person from whom it is due and payable shall pay interest on the amount unpaid from the day it became due until it is paid at the rate fixed by the terms of allotment of the share or in the notice of the call or, if no rate is fixed, at the appropriate rate (as defined by Section 2(1) of the Act) but the Directors may waive payment of the interest wholly or in part. 

        26.

        Instalments treated as calls 

        ​

        An amount payable in respect of a share on allotment or at any fixed date, whether in respect of nominal value or as an instalment of a call, shall be deemed to be a call and if it is not paid the provisions of these Articles shall apply as if that amount had become due and payable by virtue of a call. 

        27.

        Power to differentiate 

        ​

        Subject to the terms of allotment, the Directors may make arrangements on the issue of shares for a difference between the Holders in the amounts and times of payment of calls on their shares. 

      

      
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        28.

        Interest on monies advanced 

        ​

        The Directors, if they think fit, may receive from any member willing to advance the same all or any part of the monies uncalled and unpaid upon any shares held by him, and upon all or any of the monies so advanced may pay (until the same would, but for such advance, become payable) interest at such rate, not exceeding (unless the Company in general meeting otherwise directs) fifteen per cent. (15%) per annum, as may be agreed upon between the Directors and the member paying such sum in advance. 

        PART VII — FORFEITURE 

        29.

        Notice requiring payment 

        ​

        (a)

        If a member fails to pay any call or instalment of a call on the day appointed for payment thereof, the Directors, at any time thereafter during such times as any part of the call or instalment remains unpaid, may serve a notice on him requiring payment of so much of the call or instalment as is unpaid together with any interest which may have accrued. 

        ​

        (b)

        The notice shall name a further day (not earlier than the expiration of fourteen (14) Clear Days from the date of service of the notice) on or before which the payment required by the notice is to be made, and shall state that in the event of non-payment at or before the time appointed the shares in respect of which the call was made will be liable to be forfeited. 

        ​

        (c)

        If the requirements of any such notice as aforesaid are not complied with then, at any time thereafter before the payment required by the notice has been made, any shares in respect of which the notice has been given may be forfeited by a resolution of the Directors to that effect. The forfeiture shall include all dividends or other monies payable in respect of the forfeited shares and not paid before forfeiture. The Directors may accept a surrender of any share liable to be forfeited hereunder. 

        ​

        (d)

        On the trial or hearing of any action for the recovery of any money due for any call it shall be sufficient to prove that the name of the member sued is entered in the Register as the Holder, or one of the Holders, of the shares in respect of which such debt accrued, that the resolution making the call is duly recorded in the minute book and that notice of such call was duly given to the member sued, in pursuance of these Articles, and it shall not be necessary to prove the appointment of the Directors who made such call nor any other matters whatsoever, but the proof of the matters aforesaid shall be conclusive evidence of the debt. 

        ​

        30.

        Power of disposal 

        ​

        Subject to the provisions of the Act, a forfeited share shall be deemed to be the property of the Company and may be sold or otherwise disposed of on such terms and in such manner as the Directors think fit and at any time before a sale or disposition the forfeiture may be cancelled on such terms as the Directors think fit. Where for the purposes of its disposal such a share is to be transferred to any person, the Directors may authorise some person to execute an instrument of transfer of the share to that person. The Company may receive the consideration, if any, given for the share on any sale or disposition thereof and may execute a transfer of the share in favour of the person to whom the share is sold or disposed of and thereupon he shall be registered as the Holder of the share and shall not be bound to see to the application of the purchase money, if any, nor shall his title to the share be affected by any irregularity or invalidity in the proceedings in reference to the forfeiture, sale or disposal of the share. 

        31.

        Effect of forfeiture 

        ​

        A person whose shares have been forfeited shall cease to be a member in respect of the forfeited shares, but nevertheless shall remain liable to pay to the Company all monies which, at the date of forfeiture, were payable by him to the Company in respect of the shares, without any deduction or allowance for the value of the shares at the time of forfeiture but his liability shall cease if and when the Company shall have received payment in full of all such monies in respect of the shares. The Board may waive 

      

      
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        payment of the sums due wholly or in part. When any share has been forfeited, notice of the forfeiture shall be served upon the person who was before forfeiture the holder of the share, but no forfeiture shall be in any manner invalidated by any omission or neglect to give such notice as aforesaid. 

        32.

        Statutory declaration 

        ​

        A statutory declaration that the declarant is a Director or the Secretary, and that a share in the Company has been duly forfeited on the date stated in the declaration, shall be conclusive evidence of the facts therein stated as against all persons claiming to be entitled to the share. The Company may receive the consideration, if any, given for the share on any sale or disposition thereof and may execute a transfer of the share in favour of the person to whom the share is sold or disposed of and he shall thereupon be registered as the Holder of the share, and shall not be bound to see to the application of the purchase money, if any, nor shall his title to the share be affected by any irregularity or invalidity in the proceedings in reference to the forfeiture, sale or disposal of the share. 

        33.

        Payment of sums due on share issues 

        ​

        The provisions of these Articles as to forfeiture shall apply in the case of non-payment of any sum which, by the terms of issue of a share, becomes payable at a fixed time, whether on account of the nominal value of the share or by way of premium, as if the same had been payable by virtue of a call duly made and notified. 

        34.

        Surrender of shares 

        ​

        The Directors may accept the surrender of any share which the Directors have resolved to have been forfeited upon such terms and conditions as may be agreed and, subject to any such terms and conditions, a surrendered share shall be treated as if it has been forfeited. 

        PART VIII — TRANSFER OF SHARES 

        35.

        Form of instrument of transfer 

        ​

        Subject to compliance with the Act and to any applicable restrictions contained in these Articles, applicable law, including U.S. securities laws, and any agreement binding on such Holder as to which the Company is aware, any Holder may transfer all or any of its shares by an instrument of transfer in the usual common form or in any other form or by any other method permissible under applicable law, as may be approved by the Directors. 

        36.

        Execution of instrument of transfer 

        ​

        (a)

        The instrument of transfer of any share may be executed for and on behalf of the transferor by the Secretary, Assistant Secretary or any duly authorised delegate or attorney of the Secretary or Assistant Secretary (whether an individual, a corporation or other body of persons, whether corporate or not, and whether in respect of specific transfers or pursuant to a general standing authorisation) and the Secretary or Assistant Secretary or a relevant authorised delegate shall be deemed to have been irrevocably appointed agent for the transferor of such share or shares with full power to execute, complete and deliver in the name of and on behalf of the transferor of such share or shares all such transfers of shares held by the members in the share capital of the Company. 

        ​

        (b)

        In the case of transfers to Cede & Co (or any other affiliate of The Depository Trust Company) the instrument of transfer may be executed by the transferor or alternatively on behalf of the transferor by the Company (acting through the Secretary or such person as may be nominated by the Secretary for this purpose), and the Company shall be deemed to have been irrevocably appointed agent for the transferor with full power to execute, complete and deliver in the name of and on behalf of the transferor transfers of all shares held by the transferor in the share capital of the Company to Cede & Co (or any other affiliate of The Depository Trust Company). 

        ​

        (c)

        In the case of transfers other than those to Cede & Co (or any other affiliate of The Depository Trust Company), the instrument of transfer of any share shall be executed by the transferor or alternatively for and on behalf of the transferor by the Company (acting through the Secretary or 

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        such person as may be nominated by the Secretary for this purpose), and the Company shall be deemed to have been irrevocably appointed agent for the transferor with full power to execute, complete and deliver in the name of and on behalf of the transferor all such transfers of shares held by the transferor. 

        (d)

        Any document which records the name of the transferor, the name of the transferee, the class and number of shares agreed to be transferred, the date of the agreement to transfer shares, shall, once executed in accordance with this clause, be deemed to be a proper instrument of transfer for the purposes of Section 94 of the Act. 

        ​

        (e)

        The transferor shall be deemed to remain the holder of the share until the name of the transferee is entered on the Register in respect thereof, and neither the title of the transferee nor the title of the transferor shall be affected by any irregularity or invalidity in the proceedings in reference to the sale should the Directors so determine. 

        ​

        (f)

        Notwithstanding the provisions of these Articles and subject to any regulations made under Section 1086 or 1087 of the Act, title to any shares in the Company may also be evidenced and transferred without a written instrument in accordance with Section 1086 or 1087 of the Act or any regulations made thereunder. The Directors shall have power to permit any class of shares to be held in uncertificated form and to implement any arrangements they think fit for such evidencing and transfer which accord with such regulations and in particular shall, where appropriate, be entitled to disapply or modify all or part of the provisions in these Articles with respect to the requirement for written instruments of transfer and share certificates, in order to give effect to such regulations. 

        ​

        37.

        Stamp duty 

        ​

        Subject to the Act, the Company, at its absolute discretion, may, or may procure that a subsidiary of the Company or any other person shall, pay Irish stamp duty arising on a transfer of shares on behalf of the transferee of such shares of the Company. If stamp duty resulting from the transfer of shares in the Company, which would otherwise be payable by the transferee, is paid by the Company or any subsidiary of the Company on behalf of or as agent for the transferee, then in those circumstances, the Company shall on its behalf or on behalf of any such subsidiary, be entitled to (i) seek reimbursement of the stamp duty from the transferor or transferee (at the Company’s or relevant subsidiary’s discretion), (ii) set-off the stamp duty against any dividends payable to the transferor or transferee (at the Company’s or relevant subsidiary’s discretion) and (iii) to claim a first and permanent lien on the shares on which stamp duty has been paid by the Company or any subsidiary for the amount of stamp duty paid. The Company’s lien shall extend to all dividends paid on those shares. The members of the Company appoint the Company and any subsidiary of the Company from time to time as their agent in relation to stamp duty. Nothing in this Article shall impose any liability or obligation on an Approved Nominee or on any Share held by an Approved Nominee acting in its capacity as such. 

        38.

        Refusal to register transfers 

        ​

        The Directors in their absolute discretion and without assigning any reason therefor may decline to register any transfer of a share which is not fully paid. The Directors may also decline to recognise any instrument of transfer unless: 

        (i)

        the instrument of transfer is accompanied by the certificate of the shares to which it relates and such other evidence as the Directors may reasonably require to show the right of the transferor to make the transfer; 

        ​

        (ii)

        the instrument of transfer is in respect of one class of share only; 

        ​

        (iii)

        the instrument is properly stamped (in circumstances where stamping is required); 

        ​

        (iv)

        in the case of a transfer to joint holders, the instrument of transfer is in favour of not more than four (4) transferees; 

        ​

        (v)

        it is lodged at the Registered Office or at such other place as the Directors may appoint; 

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        (vi)

        they are satisfied, acting reasonably, that all applicable consents, authorisations, permissions or approvals of any governmental body or agency in Ireland or any other applicable jurisdiction required to be obtained under relevant law prior to such transfer have been obtained; and 

        ​

        (vii)

        they are satisfied, acting reasonably, that the transfer would not violate the terms of any agreement to which the Company (or any of its subsidiaries) and the transferor are party or subject. 

        ​

        39.

        Procedure on refusal 

        ​

        If the Directors refuse to register a transfer then, within two (2) months after the date on which the transfer was lodged with the Company, they shall send to the transferee notice of the refusal. 

        40.

        Closing of transfer books 

        ​

        The registration of transfers of shares or of transfers of any class of shares may be suspended at such times and for such periods (not exceeding thirty days in each year) as the Directors may determine. 

        41.

        Absence of registration fees 

        ​

        No fee shall be charged for the registration of any instrument of transfer or other document relating to or affecting the title to any share. 

        42.

        Retention of transfer instruments 

        ​

        All instruments of transfer shall upon their being lodged with Company remain the property of the Company and the Company shall be entitled to retain them, but any instrument of transfer which the Directors refuse to register shall be returned to the person lodging it when notice of the refusal is given. 

        43.

        Renunciation of allotment 

        ​

        Nothing in these Articles shall preclude the Directors from recognising a renunciation of the allotment of any shares by the allottee in favour of some other person. 

        44.

        Transfer of warrants 

        ​

        Subject to such of the restrictions of these Articles and to such of the conditions of issue of any share warrants as may be applicable, any share warrant may be transferred by instrument in writing in any usual or common form or any other form which the Directors may approve. 

        PART IX — TRANSMISSION OF SHARES 

        45.

        Death of a member 

        ​

        In the case of the death of a member, the survivor or survivors, where the deceased was a joint Holder, and the personal representatives of the deceased where he was a sole Holder, shall be the only persons recognised by the Company as having any title to his interest in the shares; but nothing herein contained shall release the estate of a deceased joint Holder from any liability in respect of any share which had been jointly held by him with other persons. For greater certainty, where two or more persons are registered as joint Holders of a share or shares, then in the event of the death of any joint Holder or Holders the remaining joint Holder or Holders shall be absolutely entitled to the said share or shares and the Company shall recognise no claim in respect of the estate of any joint Holder except in the case of the last survivor of such joint Holders. 

        46.

        Transmission on death or bankruptcy 

        ​

        A person becoming entitled to a share in consequence of the death or bankruptcy of a member may elect, upon such evidence being produced as the Directors may properly require, either to become the Holder of the share or to have some person nominated by him registered as the transferee thereof but the Directors shall, in either case, have the same right to decline or suspend registration as they would have had in the case of a transfer of the shares by that member before his death or bankruptcy, as the case may be. If the person so becoming entitled elects to become the Holder he shall give notice to the Company to that effect. If he elects to have another person registered he shall execute an instrument of 

      

      
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        transfer of the share to that person. All of the Articles herein relating to the right to transfer and the registration of transfers of shares will apply to the notice or instrument of transfer as if it were an instrument of transfer executed by the member and the death or bankruptcy of the member had not occurred. 

        47.

        Rights before registration 

        ​

        A person becoming entitled to a share by reason of the death or bankruptcy of a member (upon supplying to the Company such evidence as the Directors may reasonably require to show his title to the share) shall have the rights to which he would be entitled if he were the Holder of the share, except that, before being registered as the Holder of the share, he shall not be entitled in respect of it to attend or vote at any meeting of the Company or at any separate meeting of the Holders of any class of shares in the Company, so, however, that the Directors, at any time, may give notice requiring any such person to elect either to be registered himself or to transfer the share and, if the notice is not complied with within ninety (90) days, the Directors thereupon may withhold payment of all dividends, bonuses or other monies payable in respect of the share until the requirements of the notice have been complied with. 

        PART X — ALTERATION OF SHARE CAPITAL 

        48.

        Increase of capital 

        ​

        The Company from time to time by Ordinary Resolution may increase the authorised share capital by such sum, to be divided into shares of such amount, as the resolution shall prescribe. 

        49.

        Consolidation, sub-division and cancellation of capital 

        ​

        The Company, by Ordinary Resolution, may: 

        (a)

        reduce its authorised share capital; 

        ​

        (b)

        consolidate and divide all or any of its share capital into shares of larger amount; 

        ​

        (c)

        subject to the Act, subdivide its shares, or any of them, into shares of smaller amount, so however that in the sub-division the proportion between the amount paid and the amount, if any, unpaid on each reduced share shall be the same as it was in the case of the share from which the reduced share is derived (and so that the resolution whereby any share is sub-divided may determine that, as between the Holders of the shares resulting from such sub-division, one or more of the shares may have, as compared with the others, any such preferred, deferred or other rights or be subject to any such restrictions as the Company has power to attach to unissued or new shares); 

        ​

        (d)

        make provision for the issue and allotment of shares which do not carry any voting rights; 

        ​

        (e)

        cancel any shares which, at the date of the passing of the resolution, have not been taken or agreed to be taken by any person and reduce the amount of its authorised share capital by the amount of the shares so cancelled; or 

        ​

        (f)

        subject to applicable law, change the currency denomination of its share capital. 

        ​

        50.

        Fractions on consolidation 

        ​

        Subject to the provisions of these Articles, whenever as a result of an issuance, alteration, reorganisation, consolidation, division, or subdivision of the share capital of the Company any member would become entitled to fractions of a share, no such fractions shall be issued or delivered to the members. The Directors may sell, on behalf of those members, the shares representing the fractions for the best price reasonably obtainable to any person and distribute the proceeds of sale in due proportion, rounding to the nearest cent, among those members, and the Directors may authorise some person to execute an instrument of transfer of the shares to, or in accordance with the directions of, the purchaser. The transferee shall not be bound to see to the application of the purchase money nor shall his title to the shares be affected by any irregularity in or invalidity of the proceedings in reference to the sale. 

      

      
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        51.

        Purchase of own shares 

        ​

        (a)

        Subject to the Act, the Company may, without prejudice to any relevant special rights attached to any class of shares, pursuant to Sections 105 and 1071 of the Act, purchase any of its own shares (including any Redeemable Shares and without any obligation to purchase on any pro rata basis as between Holders or Holders of the same class) and may cancel any shares so purchased or hold them as Treasury Shares and may reissue any such shares as shares of any class or classes. The Company may make a payment in respect of the redemption or purchase of its own shares in any manner permitted by the Act. The holder of the shares being purchased shall be bound to deliver up to the Company at its Registered Office or such other place as the Board shall specify, the certificate(s) (if any) thereof for cancellation (or, in the case of any defaced, worn out, lost, stolen or destroyed share certificate, an indemnity in lieu thereof in terms satisfactory to the Board) and thereupon the Company shall pay to him the purchase or redemption monies or consideration in respect thereof. 

        ​

        (b)

        The Company may in addition acquire any of its own fully paid shares otherwise than for valuable consideration in accordance with Section 102(1) of the Act and on such other terms (if any) as it deems appropriate and may cancel such shares on acquisition. 

        ​

        52.

        Reduction of capital 

        ​

        The Company, by Special Resolution, may reduce its company capital (as defined in Section 64(1) of the Act) in any manner and with, and subject to, any incident authorised, and consent required, by law. In relation to such reductions, the Company may by Special Resolution determine the terms upon which the reduction is to be effected, including in the case of a reduction of part only of any class of Shares, those Shares to be affected. 

        53.

        Financial assistance 

        ​

        The Company may give any form of financial assistance which is permitted by the Act for the purpose of or in connection with a purchase or subscription made or to be made by any person of or for any shares in the Company or in the Company’s holding company. 

        PART XI — GENERAL MEETINGS 

        54.

        General Meetings outside Ireland & satellite meetings 

        ​

        (a)

        Subject to Section 176 of the Act, all general meetings of the Company may be held outside Ireland. 

        ​

        (b)

        Subject to the Act, the Board may resolve to enable persons entitled to attend a general meeting of the Company to do so by simultaneous attendance and participation by means of two-way, audio visual electronic facilities at a satellite meeting place anywhere in the world and by such electronic means as the Board may from time to time approve. The Shareholders present at any such satellite meeting place in person or by proxy and entitled to vote will be counted in the quorum for, and will be entitled to vote at, the meeting in question if the chairman is satisfied that the conditions referred to in Articles 54(c) (i), (ii) and (iii) have been met. 

        ​

        (c)

        If it appears to the chairman of a general meeting that the place of the meeting (or any satellite meeting) specified in the notice convening the meeting is inadequate to accommodate all persons entitled and wishing to attend, the meeting nevertheless is duly constituted and its proceedings nevertheless are valid if the chairman is satisfied that adequate facilities have been made available, whether at the place of the meeting or elsewhere, to ensure that each such person who is unable to be accommodated at the place of the meeting is able to: 

        ​

        (i)

        communicate simultaneously and instantaneously with the persons present at the other meeting place or places, whether by the use of microphones, loud-speakers, audio-visual or other communications equipment or facilities; 

        ​

        (ii)

        have access to all documents which are required by the Act and these Articles to be made available at the meeting; and 

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        (iii)

        participate in any poll required to vote on any resolutions of the Company, 

        ​

        and in that case the chairman may elect to use such adequate facilities described in this Article for the purposes of the meeting and any provision of these Articles relating to meetings will apply to any meeting so extended by the use of such facilities. 

        (d)

        The chairman of the general meeting will be present at, and the meeting will be deemed to take place at, the principal meeting place. If it appears to the chairman of the general meeting that the facilities at the principal meeting place or any satellite meeting place are or become inadequate for the purposes referred to in Articles 54(c) (i), (ii) and (iii), the chairman may, without the consent of the meeting adjourn the general meeting. All business conducted at that general meeting up to the time of such adjournment will be valid. 

        ​

        (e)

        The Board may, and at any general meeting or meeting of a class of members, the chairman of such meeting may, make any arrangement and impose any requirement as may be reasonable for the purpose of verifying the identity of members participating by way of electronic facilities, as described in Article 54(b). 

        ​

        55.

        Annual general meetings 

        ​

        The Company shall hold in each year a general meeting as its annual general meeting in addition to any other meeting in that year and shall specify the meeting as such in the notices calling it. Not more than fifteen (15) months shall elapse between the date of one (1) annual general meeting and that of the next. 

        56.

        Extraordinary general meetings 

        ​

        All general meetings other than annual general meetings shall be called extraordinary general meetings. 

        57.

        Convening general meetings 

        ​

        (a)

        The Directors may whenever they think fit convene general meetings. Extraordinary general meetings may also be convened on such requisition, or in default may be convened by such requisitionists, and in such manner as may be provided by the Act. 

        ​

        (b)

        Upon request in writing of Shareholders holding such number of shares as is prescribed by Section 178 of the Act (as amended by Section 1101 of the Act), delivered to the Registered Office, it shall be the duty of the Directors to convene a general meeting to be held within two (2) months from the date of the deposit of the requisition in accordance with Section 178 of the Act (as amended by Section 1101 of the Act). If such notice is not given within two (2) months after the delivery of such request, the requisitionists, or any one (1) of them representing more than one half  (1/2) of the total voting rights of all of them, may themselves convene a meeting, but any meeting so convened shall not be held after the expiration of three (3) months from the said date and any notice of such meeting shall be in compliance with these Articles. 

        ​

        (c)

        Any request to convene an extraordinary general meeting pursuant to Article 57(b) must be made in accordance with Article 78. 

        ​

        58.

        Postponing or cancelling general meetings 

        ​

        (a)

        The Directors may postpone a general meeting of the members (other than a meeting requisitioned by a member in accordance with Section 178 of the Act (as amended by Section 1101 of the Act) or where the postponement of which would be contrary to the Act or a court order pursuant to the Act) after it has been convened, and notice of such postponement shall be served in accordance with Article 60 upon all members entitled to notice of the meeting so postponed setting out, where the meeting is postponed to a specific date, notice of the new meeting in accordance with Article 60. 

        ​

        (b)

        The Directors may, with cause, cancel a general meeting of the members (other than a meeting requisitioned by a member in accordance with Section 178 of the Act (as amended by Section 

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        1101 of the Act) or where the cancellation of which would be contrary to the Act or a court order pursuant to the Act) after it has been convened, and notice of such cancellation shall be served in accordance with Article 60 upon all members entitled to notice of the meeting so cancelled. 

        59.

        Class meetings 

        ​

        All provisions of these Articles relating to general meetings of the Company shall apply equally to every separate general meeting of the Holders of any class of shares in the capital of the Company, except that: 

        (a)

        the necessary quorum shall be two (2) or more Holders (or, if there is only one (1) Holder of the relevant class or series of Holders, one (1) Holder) present in person or by proxy or, at any adjourned meeting of such Holders, one Holder present in person or by proxy, whatever the amount of his holding, shall be deemed to constitute the necessary quorum; 

        ​

        (b)

        any Holder of shares of the class present in person or by proxy may demand a poll; and 

        ​

        (c)

        on a poll, each Holder of shares of the class shall have one vote in respect of every share of the class held by him. 

        ​

        60.

        Notice of general meetings 

        ​

        (a)

        Subject to the provisions of the Act allowing a general meeting to be called by shorter notice, an annual general meeting and an extraordinary general meeting called for the passing of a Special Resolution shall be called by at least twenty-one (21) Clear Days’ notice and all other extraordinary general meetings shall be called by at least fourteen (14) Clear Days’ notice. 

        ​

        (b)

        Any notice convening a general meeting shall specify the time and place of the meeting and, in the case of special business, the general nature of that business and, in reasonable prominence, that a member entitled to attend and vote is entitled to appoint a proxy to attend, speak and vote in his place and that a proxy need not be a member of the Company. It shall also give particulars of the Directors who are to retire at the meeting and of any persons who are recommended by the Board or a committee thereof for appointment or re-appointment as Directors at the meeting or in respect of whom notice has been duly given to the Company of the intention to propose them for appointment or re-appointment as Directors at the meeting. Provided that the latter requirement shall only apply where notice of the intention to propose the person has been received by the Company in accordance with the provisions of these Articles. Subject to any restrictions imposed on any shares, the notice of the meeting shall be given to all the Holders of any class of shares of the Company as of the record date set by the Directors other than shares which, under the terms of these Articles or the terms of allotment of such shares, are not entitled to receive such notice from the Company, and to the Directors and the Auditors. 

        ​

        (c)

        The accidental omission to give notice of a meeting to, or, in cases where instruments of proxy are sent out without the notice, the accidental omission to send such instrument of proxy to, or the non-receipt of notice of a meeting or instrument of proxy by, any person entitled to receive notice shall not invalidate the proceedings at the meeting. 

        ​

        (d)

        Where, by any provision contained in the Act, extended notice is required of a resolution, the resolution shall not be effective (except where the Directors of the Company have resolved to submit it) unless notice of the intention to move it has been given to the Company not less than twenty-eight (28) days (or such shorter period as the Act permit) before the meeting at which it is moved, and the Company shall give to the members notice of any such resolution as required by and in accordance with the provisions of the Act. 

        ​

        (e)

        Notice of every general meeting shall be given in any manner permitted by these Articles to all Shareholders (other than those who, under the provisions of these Articles or the terms of issue of the shares which they hold, are not entitled to receive such notice from the Company) and to each Director, to the Auditors and to the Secretary. 

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        PART XII — PROCEEDINGS AT GENERAL MEETINGS 

        61.

        Quorum for general meetings 

        ​

        (a)

        No business other than the appointment of a chairman shall be transacted at any general meeting unless a quorum of members is present at the time when the meeting proceeds to business. Except as provided in relation to an adjourned meeting, two (2) or more Shareholders (or, if there is only one (1) Shareholder of the relevant class or series of Shareholders, one (1) Shareholder) present in person or by proxy (whether or not such Holder actually exercises his voting rights in whole, in part or at all at the relevant general meeting) and holding shares representing at least fifty per cent. (50%) of the issued shares carrying the right to vote at such meeting shall constitute a quorum. Abstention and broker votes not voted by Shareholders present in person or by proxy will be counted as present for purposes of determining whether there is a quorum. 

        ​

        (b)

        If such a quorum is not present within half an hour (30 minutes) from the time appointed for the meeting, the meeting shall stand adjourned to the same day in the next week at the same time and place (unless Shareholders are notified of another place), or to such time and place as the Directors may determine. If at the adjourned meeting such a quorum is not present within half an hour (30 minutes) from the time appointed for the meeting, the meeting, if convened otherwise than by resolution of the Directors, shall be dissolved, but if the meeting shall have been convened by resolution of the Directors, one (1) person entitled to be counted in a quorum present at the meeting shall be a quorum. 

        ​

        62.

        Security of the meeting 

        ​

        The Board may, and at any general meeting or meeting of a class of members, the chairman of such meeting may, make any arrangement and impose any requirement or restriction it or he considers appropriate to ensure the security of the meeting including, without limitation, requirements for evidence of identity to be produced by those attending the meeting, the searching of their personal property and the restriction of items that may be taken into the meeting place. The Board and, at any general meeting or meeting of a class of members, the chairman of such meeting, is entitled to refuse entry to a person who refuses to comply with any such arrangements, requirements or restrictions. 

        63.

        Business of the meeting 

        ​

        (a)

        No business may be transacted at a meeting of Shareholders, other than business that is either proposed by or at the direction of the Directors; proposed at the direction of the High Court of Ireland; proposed on the requisition in writing of such number of members as is prescribed by, and is made in accordance with, the relevant provisions of the Act and Articles 57(b) and 78 hereof and, in respect of an annual general meeting only, these Articles; or the chairman of the meeting determines in his absolute and sole discretion that the business may properly be regarded as within the scope of the meeting. 

        ​

        (b)

        For business or nominations to be properly brought by a member at any general meeting, it must be brought in accordance with Articles 78, 79 and 80 and the member proposing such business must be a Holder of record at the time of giving of the notice. 

        ​

        64.

        Special business 

        ​

        All business shall be deemed special that is transacted at an extraordinary general meeting. All business that is transacted at an annual general meeting shall also be deemed special, with the exception of declaring a dividend, the consideration of the statutory financial statements and the report of the Directors and the report of the Auditors on those statements and the report of the Directors, the review by the members of the Company’s affairs, the election of Directors in the place of those retiring, the fixing of the remuneration of the Directors, subject to Sections 380 and 382 to 385 of the Act, the appointment or the re-appointment of the Auditors and the fixing of the remuneration of the Auditors. 

      

      
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        65.

        Chairman of general meetings 

        ​

        (a)

        The chairman of the board of Directors or, in his absence, the deputy chairman (if any) or, in his absence, some other Director nominated by the Directors, shall preside as chairman at every general meeting of the Company. If at any general meeting none of such persons shall be present within fifteen minutes (15) after the time appointed for the holding of the meeting and willing to act, the Directors present shall elect one (1) of their number to be chairman of the meeting and, if there is only one (1) Director present and willing to act, he shall be chairman. 

        ​

        (b)

        If at any meeting no Director is willing to act as chairman or if no Director is present within fifteen (15) minutes after the time appointed for holding the meeting, the members present and entitled to vote shall choose one of the members personally present to be chairman of the meeting. 

        ​

        66.

        Directors’ and Auditors’ right to attend general meetings 

        ​

        A Director shall be entitled, notwithstanding that he is not a member, to attend and speak at any general meeting and at any separate meeting of the Holders of any class of shares in the Company. The Auditors shall be entitled to attend any general meeting and to be heard on any part of the business of the meeting which concerns them as the Auditors. 

        67.

        Adjournment of general meetings 

        ​

        The chairman, with the consent of a meeting at which a quorum is present, may (and if so directed by the meeting, shall) adjourn the meeting to an alternative time or indefinitely and from place to place, but no business shall be transacted at any adjourned meeting other than business which might properly have been transacted at the meeting had the adjournment not taken place. Where a meeting is adjourned indefinitely, the time and place for the adjourned meeting shall be fixed by the Directors. When a meeting is adjourned for fourteen (14) days or more or indefinitely, at least seven (7) Clear Days’ notice shall be given specifying the time and meeting and the general nature of the business to be transacted. Save as aforesaid it shall not be necessary to give any notice of an adjourned meeting. 

        68.

        Resolutions 

        ​

        (a)

        Subject to the Act, a resolution may only be put to a vote at a general meeting of the Company if: 

        ​

        (i)

        it is specified in the notice of the meeting; or 

        ​

        (ii)

        it is otherwise properly brought before the meeting by the chairman of the meeting or by or at the direction of the Board; or 

        ​

        (iii)

        it is proposed at the direction of a court of competent jurisdiction; or 

        ​

        (iv)

        it is proposed with respect to an extraordinary general meeting in the requisition in writing for such meeting made by such number of Shareholders as is prescribed by (and such requisition in writing is made in accordance with) Section 178 of the Act (as amended by Section 1101 of the Act); or 

        ​

        (v)

        it is proposed in accordance with Article 98; or 

        ​

        (vi)

        the chairman of the meeting in his discretion decides that the resolution may properly be regarded as within the scope of the meeting. 

        ​

        (b)

        No amendment may be made to a resolution at or before the time when it is put to a vote unless the chairman of the meeting in his absolute discretion decides that the amendment or the amended resolution may properly be put to a vote at that meeting. 

        ​

        (c)

        If the chairman of the meeting rules a resolution or an amendment to a resolution inadmissible or out of order, as the case may be, the proceedings of the meeting or on the resolution in question shall not be invalidated by any error in his ruling. Any ruling by the chairman of the meeting in relation to a resolution or an amendment to a resolution shall be final and conclusive, subject to any subsequent order by a court of competent jurisdiction. 

        ​

      

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        69.

        Determination of resolutions 

        ​

        (a)

        Except where a greater majority is required by the Act or these Articles, any question, business or resolution proposed at any general meeting shall be decided by a simple majority of the votes cast. 

        ​

        (b)

        At any general meeting a resolution put to the vote of the meeting shall be decided on a show of hands unless before, or on the declaration of the result of, the show of hands a poll is duly demanded. Unless a poll is so demanded a declaration by the chairman that a resolution has been carried or carried unanimously, or by a particular majority, or lost, or not carried by a particular majority and an entry to that effect in the minutes of the meeting shall be conclusive evidence of the fact without proof of the number or proportion of the votes recorded in favour of or against the resolution. The demand for a poll may be withdrawn before the poll is taken but only with the consent of the chairman, and a demand so withdrawn shall not be taken to have invalidated the result of a show of hands declared before the demand was made. 

        ​

        70.

        Entitlement to demand poll 

        ​

        Subject to the provisions of the Act, a poll may be demanded: 

        (a)

        by the chairman of the meeting; 

        ​

        (b)

        by at least three (3) members present (in person or by proxy) having the right to vote at the meeting; 

        ​

        (c)

        by any member or members present (in person or by proxy) representing not less than one-tenth (1∕10) of the total voting rights of all the members having the right to vote at the meeting; or 

        ​

        (d)

        by a member or members present (in person or by proxy) holding shares in the Company conferring the right to vote at the meeting being shares on which an aggregate sum has been paid up equal to not less than one-tenth (1/10) of the total sum paid up on all the shares conferring that right. 

        ​

        71.

        Taking of a poll 

        ​

        (a)

        Save as provided in paragraph (b) of this Article, a poll shall be taken in such manner as the chairman directs and he may appoint scrutineers (who need not be members) and fix a time and place for declaring the result of the poll. The result of the poll shall be deemed to be the resolution of the meeting at which the poll was demanded. 

        ​

        (b)

        A poll demanded on the election of a chairman or on a question of adjournment shall be taken forthwith. A poll demanded on any other question shall be taken either forthwith or at such time (not being more than thirty (30) days after the poll is demanded) and place as the chairman of the meeting may direct. The demand for a poll shall not prevent the continuance of a meeting for the transaction of any business other than the question on which the poll was demanded. If a poll is demanded before the declaration of the result of a show of hands and the demand is duly withdrawn, the meeting shall continue as if the demand had not been made. 

        ​

        (c)

        No notice need be given of a poll not taken forthwith if the time and place at which it is to be taken are announced at the meeting at which it is demanded. In any other case at least seven (7) Clear Days’ notice shall be given specifying the time and place at which the poll is to be taken. 

        ​

        (d)

        A Holder entitled to more than one vote on a poll need not use all his votes or cast all the votes he uses. 

        ​

        72.

        Votes of members 

        ​

        Votes may be given either personally or by proxy or a duly authorised representative of a corporate member. Subject to any rights or restrictions for the time being attached to any class or classes of shares, on a show of hands every member shall have one (1) vote, so, however, that no individual shall have more than one (1) vote, and on a poll every member present in person or by proxy or a duly 

      

      
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        authorised representative of a corporate member shall have one (1) vote for every share carrying voting rights of which he is the Holder. On a poll a member entitled to more than one (1) vote need not use all his votes or cast all the votes he uses in the same way. 

        73.

        Voting by joint Holders 

        ​

        Where there are joint Holders of a share, the vote of the senior who tenders a vote, whether in person or by proxy, in respect of such share shall be accepted to the exclusion of the votes of the other joint Holders; and for this purpose seniority shall be determined by the order in which the names of the Holders stand in the Register in respect of the share. 

        74.

        Voting by incapacitated Holders 

        ​

        A member of unsound mind, or in respect of whom an order has been made by any court having jurisdiction (whether in Ireland or elsewhere) in matters concerning mental disorder, may vote, whether on a show of hands or on a poll, by his committee, receiver, guardian or other person appointed by that court and any such committee, receiver, guardian or other person may vote by proxy on a show of hands or on a poll. Evidence to the satisfaction of the Directors of the authority of the person claiming to exercise the right to vote shall be received at the Registered Office or at such other address as is specified in accordance with these Articles for the receipt of appointments of proxy, not less than forty-eight (48) hours before the time appointed for holding the meeting or adjourned meeting at which the right to vote is to be exercised and in default the right to vote shall not be exercisable. 

        75.

        Written resolution of the members 

        ​

        (a)

        Subject to Section 191 of the Act a resolution in writing signed by all of the members for the time being entitled to attend and vote on such resolution at a general meeting (or being bodies corporate by their duly authorised representatives) shall be as valid and effective for all purposes as if the resolution had been passed at a general meeting of the Company duly convened and held, and may consist of several documents in like form each signed by one or more persons, and if described as a special resolution shall be deemed to be a special resolution within the meaning of the Act. Any such resolution shall be served on the Company. 

        ​

        (b)

        For the purposes of any written resolution under this Article, the date of the resolution in writing is the date when the resolution is signed by, or on behalf of, the last Shareholder to sign and any reference in any enactment to the date of passing of a resolution is, in relation to a resolution in writing made in accordance with this Article, a reference to such date. 

        ​

        76.

        Restriction of voting rights 

        ​

        Unless the Directors otherwise determine, no member shall be entitled to vote at any general meeting or any separate meeting of the Holders of any class of shares in the Company, either in person or by proxy, or to exercise any privilege as a member in respect of any share held by him unless all monies then payable by him in respect of that share have been paid. 

        77.

        Time for objection to voting 

        ​

        No objection shall be raised to the qualification of any voter except at the meeting or adjourned meeting at which the vote objected to is tendered and every vote not disallowed at such meeting shall be valid. Any such objection made in due time shall be referred to the chairman of the meeting whose decision shall be final and conclusive. 

        78.

        Notice members’ business for extraordinary general meetings 

        ​

        A member’s notice to the Secretary in respect of a meeting requisitioned in accordance with Article 57(b) must set forth as to each matter such member proposes to bring before the meeting: 

        (a)

        a brief description of the business desired to be brought before the meeting, the text of the proposal or business (including the text of any resolutions proposed for consideration and if such business includes a proposal to amend the Articles, the text of the proposed amendment) and the reasons for conducting such business at the meeting; 

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        (b)

        as to the member giving the notice: 

        ​

        (i)

        the name and address, as they appear in the Register, of such member and any Member Associated Person covered by clause (ii) below; 

        ​

        (ii)

        (A) the class and number of shares of the Company which are held of record or are beneficially owned by the member and by any Member Associated Person with respect to the Company’s securities; (B) a description of any agreement, arrangement or understanding in connection with the proposal of such business between or among such member and any Member Associated Person, any of their respective affiliates or associates, and any others (including their names) acting as a “group” (as such term is used in Rule 13d-5(b) under the Exchange Act) with any of the foregoing; (C) a description of any agreement, arrangement or understanding (including, regardless of the form of settlement, any derivative, long or short positions, profit interests, options, warrants, convertible securities, stock appreciation or similar rights, hedging transactions, and borrowed or loaned securities) that has been entered into, the effect or intent of which is to mitigate loss to, manage risk or benefit from share price changes for, or increase or decrease the voting power of, such member or such Member Associated Person, with respect to shares of the Company; (D) a representation that the member is a Holder of shares of the Company (either of record or beneficially) entitled to vote at such meeting and intends to appear in person or by proxy at the meeting to propose such business; (E) a representation whether the member or the Member Associated Person, if any, intends or is part of a group which intends (x) to deliver a proxy statement and / or form of proxy to Holders of at least the percentage of the Company’s outstanding shares required to adopt the proposal and / or (y) otherwise to solicit proxies from members in support of such proposal. If requested by the Company, the information required under clauses (A), (B) and (C) of the preceding sentence shall be supplemented by such member and any Member Associated Person not later than ten (10) days after the later of the record date for the meeting or the date notice of the record date is first publicly disclosed to disclose such information as of the record date; and 

        ​

        (c)

        any material interest of the member or any Member Associated Person in such business. 

        ​

        The chairman of the meeting shall have the power and duty to determine whether any business proposed to be brought before the meeting was made or proposed in accordance with the procedures set forth in this Article, and if any proposed business is not in compliance with this Article, to declare that such defective proposal shall be disregarded. The chairman of such meeting shall, if the facts reasonably warrant, refuse to acknowledge that a proposal that is not made in compliance with the procedure specified in this Article, and any such proposal not properly brought before the meeting, be considered. 

        79.

        Notice of member Director nominations for extraordinary general meetings 

        ​

        A member’s notice to the Secretary in respect of a meeting requisitioned in accordance with Article 57(b) must set forth as to each nomination such member proposes to bring before the meeting: 

        (a)

        as to each person whom the member proposes to nominate for election as a Director (i) the name, age, business address and residence address of such person, (ii) the principal occupation or employment of such person, (iii) the class, series and number of shares which are beneficially owned by such person, (iv) particulars which would, if he were so appointed, be required to be included in the Company’s register of Directors and Secretaries and (v), all information relating to such person that is required to be disclosed in solicitations of proxies for election of Directors in an election contest, or its otherwise required, in each case pursuant to Regulation 14A under the Exchange Act (including such person’s written consent to being named in the proxy statement as nominee and to serving as director if elected); and 

        ​

        (b)

        as to the member giving the notice, the provisions of Article 78(b) apply mutatis mutandis. 

        ​

      

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        80.

        Member nominations for extraordinary general meetings 

        ​

        (a)

        The Company may require any proposed nominee to furnish such other information as it may reasonably require, including the completion of any questionnaires to determine the eligibility of such proposed nominee to serve as a Director of the Company and the impact that such service would have on the ability of the Company to satisfy the requirements of laws, rules, regulations and listing standards applicable to the Company or its Directors. 

        ​

        (b)

        The chairman of the meeting shall have the power and duty to determine whether a nomination to be brought before the meeting was made or proposed in accordance with the procedures set forth in this Article, and if any proposed nomination is not in compliance with this Article, to declare that such defective nomination shall be disregarded. The chairman of such meeting shall, if the facts reasonably warrant, refuse to acknowledge a nomination that is not made in compliance with the procedure specified in this Article, and any such nomination not properly brought before the meeting shall not be considered. 

        ​

        (c)

        Notwithstanding the foregoing provisions of Articles 78 and 79, unless otherwise required by law, if the member (or a qualified representative of the member) does not appear at the general meeting to present a nomination or proposed business, such nomination shall be disregarded and such proposed business shall not be transacted, notwithstanding that proxies in respect of such vote may have been received by the Company. For the purposes of Articles 78 and 79, to be considered a qualified representative of the member, a person must be a duly authorised officer, manager or partner of such member or must be authorised by written notice executed by such member or an electronic transmission delivered by such member to act for such member as proxy at the meeting and such person must produce such writing or electronic transmission, or a reliable reproduction of the writing or electronic transmission, at the general meeting of members. 

        ​

        (d)

        In addition, if the member intends to solicit proxies from the members of the Company, such member shall notify the Company of this intent in accordance with Rule 14a-4 and/or Rule 14a-8 under the Exchange Act. Any references in these Articles to the Exchange Act or the rules promulgated thereunder are not intended to and shall not limit any requirements applicable to member nominations or proposals as to any other business to be considered pursuant to these Articles and compliance with these Articles shall be the exclusive means for a member to make nominations or submit proposals for any other business to be considered at a general meeting (other than matters brought properly under and in compliance with Rule 14a-8 of the Exchange Act, or any successor rule). Nothing in these Articles shall be deemed to affect any rights of members to request inclusion of proposals in the Company’s proxy statement pursuant to applicable rules and regulations under the Exchange Act. 

        ​

        81.

        Appointment of proxy 

        ​

        (a)

        Every member entitled to attend and vote at a general meeting may appoint a proxy or proxies to attend, speak and vote on his behalf provided that, where a shareholder appoints more than one (1) proxy in relation to a general meeting, each proxy must be appointed to exercise the rights attached to a different share or shares held by him. The appointment of a proxy shall be in writing in any usual form or in any other form which the Directors may approve and shall be signed by or on behalf of the appointer. The signature on such appointment need not be witnessed. A body corporate may sign a form of proxy under its common seal, under the hand of a duly authorised officer thereof or in such manner as the Directors may approve. A proxy need not be a member of the Company. The appointment of a proxy in electronic form shall only be effective in such manner as the Directors may approve. 

        ​

        (b)

        An appointment of a proxy relating to more than one meeting (including any adjournment thereof) having once been received by the Company for the purposes of any meeting shall not require to be delivered, deposited or received again by the Company for the purposes of any subsequent meeting to which it relates. 

        ​

        (c)

        A standing proxy shall be valid for all meetings and adjournments thereof or resolutions in writing, as the case may be, until notice of revocation is received by the Company. Where a 

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        standing proxy exists, its operation shall be deemed to have been suspended at any meeting or adjournment thereof at which the Holder is present or in respect to which the Holder has specially appointed a proxy. The Directors may from time to time require such evidence as they shall deem necessary as to the due execution and continuing validity of any standing proxy and the operation of any such standing proxy shall be deemed to be suspended until such time as the Directors determine that they have received the requested evidence or other evidence satisfactory to it. 

        (d)

        The Directors may send, at the expense of the Company, by post, electronic mail or otherwise, to the members forms for the appointment of a proxy (with or without stamped envelopes for their return) for use at any general meeting or at any class meeting, either in blank or nominating any one or more of the Directors or any other persons in the alternative. 

        ​

        (e)

        Subject to the foregoing, a Holder may appoint a proxy by means of an “omnibus” or “enduring” proxy with or without a power of substitution. Such “omnibus” or “enduring” proxy may provide that all persons who appear in a specified register maintained by an Approved Nominee (each a “specified holder”) may act as proxy for so long as the name of the specified holder appears in the specified Approved Nominee register in respect of the relevant number of Shares which appear opposite the name of the specified holder in the Approved Nominee register from time to time (the “Relevant Shares”) in relation to all meetings of the Company, and if any specified holder does not attend a meeting of the Company, the relevant Holder may appoint such other persons as may be nominated by the specified holder from time to time in accordance with the proxy registration system for specified holders as the Holder’s proxy in relation to all meetings of the Company in respect of the Relevant Shares. 

        ​

        (f)

        The instrument of proxy and the power of attorney or other authority, if any, under which it is signed, or a notarially certified copy of that power or authority, shall be deposited at the registered office of the Company or at such other place within Ireland as is specified for that purpose in the notice convening the relevant meeting, and shall be so deposited not later than: 

        ​

        (i)

        48 hours before the time for holding the meeting or adjourned meeting at which the person named in the instrument proposes to vote; or 

        ​

        (ii)

        in the case of a poll, 48 hours before the time appointed for the taking of the poll. 

        ​

        82.

        Electronic appointment of proxy 

        ​

        Without limiting the foregoing, the Directors may from time to time permit appointments of a proxy to be made by means of an electronic or internet communication or facility and may in a similar manner permit supplements to, or amendments or revocations of, any such electronic or internet communication or facility to be made. The Directors may in addition prescribe the method of determining the time at which any such electronic or internet communication or facility is to be treated as received by the Company. The Directors may treat any such electronic or internet communication or facility which purports to be or is expressed to be sent on behalf of a Holder as sufficient evidence of the authority of the person sending that instruction to send it on behalf of that Holder. 

        83.

        Bodies corporate acting by representatives at meetings 

        ​

        Any body corporate which is a member of the Company may, by resolution of its directors or other governing body, authorise such person or persons as it thinks fit to act as its representative or representatives at any meeting of the Company or any class of members of the Company, and any person so authorised shall be entitled to exercise the same powers on behalf of the body corporate which he represents as that body corporate could exercise if it were an individual member of the Company. Where a member appoints more than one representative in relation to a general meeting, each representative must be appointed to exercise rights attached to a different share or shares held by the member. The Company may require evidence from the body corporate of the due authorisation of such person to act as the representative of the relevant body corporate. 

      

      
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        84.

        Effect of proxy appointment 

        ​

        A proxy shall have the right to exercise all or any of the rights of his appointer, or (where more than one proxy is appointed) all or any of the rights attached to the shares in respect of which he has appointed to the proxy to attend, to demand or join in demanding a poll and to speak and vote at a general meeting of the Company. Unless his appointment provides otherwise, a proxy may vote or abstain in his discretion on any resolution put to the vote. The appointment of a proxy in respect of a meeting shall not preclude a member from attending and voting at the meeting or at any adjournment thereof. The instrument appointing a proxy shall, unless the contrary is stated therein, be valid as well for any adjournment of the meeting as for the meeting to which it relates. The instrument appointing a proxy shall be deemed to confer authority to demand or join in demanding a poll. 

        85.

        Effect of revocation of proxy or of authorisation 

        ​

        A vote given or poll demanded in accordance with the terms of an appointment of a proxy or a resolution authorising a representative to act on behalf of a body corporate shall be valid notwithstanding the previous death, insanity or winding up of the principal or revocation of the proxy or of the authority under which the proxy or authority was executed or the transfer of the share in respect of which the proxy or authority is given, if no intimation in writing (whether in electronic form or otherwise) of such death, insanity, winding up, revocation or transfer as aforesaid is received by the Company at the Registered Office, at least one (1) hour before the commencement of the meeting or adjourned meeting at which the proxy is used or the representative acts provided however that where such intimation is given in electronic form it shall have been received by the Company at least 24 hours (or such lesser time as the Directors may specify) before the commencement of the meeting. 

        PART XIII — DIRECTORS 

        86.

        Number of Directors 

        ​

        The number of Directors will not be less than two (2) and will not exceed such number as may from time to time be fixed by the Board. The continuing Directors may act notwithstanding any vacancy in their body, provided that if the number of the Directors is reduced below the prescribed minimum the remaining Director or Directors shall appoint forthwith an additional Director or additional Directors to make up such minimum or shall convene a general meeting of the Company for the purpose of making such appointment. If there be no Director or Directors able or willing to act then any two (2) Shareholders may summon a general meeting for the purpose of appointing Directors. 

        87.

        Share qualification 

        ​

        A Director shall not require a share qualification. A Director who is not a member of the Company shall nevertheless be entitled to attend and speak at general meetings. 

        88.

        Ordinary remuneration of Directors 

        ​

        (a)

        Each Director shall be entitled to receive such fees for his services as a Director, if any, as the Board may from time to time determine. 

        ​

        (b)

        The Board may from time to time determine that, subject to the requirements of the Act, all or part of any fees or other remuneration payable to any Director of the Company shall be provided in the form of shares or other securities of the Company or any subsidiary of the Company, or options or rights to acquire such shares or other securities, on such terms as the Board may decide. 

        ​

        89.

        Special remuneration of Directors and use of Company property 

        ​

        (a)

        Any Director who holds any executive office (including for this purpose the office of chairman or deputy chairman) or who serves on any committee, or who otherwise performs services which in the opinion of the Directors are outside the scope of the ordinary duties of a Director, may be paid such extra remuneration by way of salary, commission or otherwise as the Directors may determine. 

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        (b)

        The Directors are expressly permitted (as contemplated by Section 228(1)(d) of the Act) to use the Company’s property subject to any conditions as may be set by the Board from time to time (or as may be set pursuant to any authority delegated pursuant to Part XIV of these Articles). 

        ​

        90.

        Expenses of Directors 

        ​

        The Directors may be paid all reasonable travelling, hotel and incidental expenses properly incurred by them in the conduct of the Company’s business or in the discharge of their duties as Director including in connection with their attendance at meetings of Directors or committees of Directors or general meetings or separate meetings of the Holders of any class of shares or of debentures of the Company. 

        91.

        Other positions 

        ​

        Unless the Company otherwise directs, a Director of the Company may be or become a Director or other officer of, or otherwise interested in, any company promoted by the Company or in which the Company may be interested as Holder or otherwise, and no such Director shall be accountable to the Company for any remuneration or other benefits received by him as a Director or officer of, or from his interest in, such other company. 

        PART XIV — POWERS OF DIRECTORS 

        92.

        Directors’ powers 

        ​

        Subject to the provisions of the Act, the Memorandum and these Articles and to any directions by the members given by Special Resolution, not being inconsistent with these Articles or with the Act, the business of the Company shall be managed by the Directors who may do all such acts and things and exercise all the powers of the Company as are not by the Act or by these Articles required to be done or exercised by the Company in general meeting. No alteration of the Memorandum or of these Articles and no such direction shall invalidate any prior act of the Directors which would have been valid if that alteration had not been made or that direction had not been given. The powers given by this Article shall not be limited by any special power given to the Directors by these Articles and a meeting of Directors at which a quorum is present may exercise all powers exercisable by the Directors. 

        93.

        Power to delegate 

        ​

        Without prejudice to the generality of the preceding Article, the Directors may delegate any of their powers to any managing Director or any Director holding any other executive office. Any such delegation may be made subject to any conditions the Directors may impose, either collaterally with or to the exclusion of their own powers and may be revoked. 

        94.

        Appointment of attorneys 

        ​

        The Directors, from time to time and at any time by power of attorney may appoint any company, firm or person or fluctuating body of persons, whether nominated directly or indirectly by the Directors, to be the attorney or attorneys of the Company for such purposes and with such powers, authorities and discretions (not exceeding those vested in or exercisable by the Directors under these Articles) and for such period and subject to such conditions as they may think fit. Any such power of attorney may contain such provisions for the protection of persons dealing with any such attorney as the Directors may think fit and may authorise any such attorney to sub-delegate all or any of the powers, authorities and discretions vested in him. 

        95.

        Borrowing powers 

        ​

        Subject to the Act the Directors may exercise all the powers of the Company to borrow or raise money and to mortgage or charge its undertaking, property, assets, and uncalled capital or any part thereof and to issue debentures, debenture stock and other securities whether outright or as collateral security for any debt, liability or obligation of the Company or of any third party, without any limitation as to amount subject to any limitations by applicable law or Exchange rules. 

      

      
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        96.

        Execution of negotiable instruments 

        ​

        All cheques, promissory notes, drafts, bills of exchange and other negotiable instruments and all receipts for monies paid to the Company shall be signed, drawn, accepted, endorsed or otherwise executed, as the case may be, by such person or persons and in such manner as the Directors shall determine from time to time by resolution. 

        PART XV — APPOINTMENT AND RETIREMENT OF DIRECTORS 

        97.

        Appointment of Directors 

        ​

        (a)

        Each Director shall retire at the annual general meeting held in the calendar year following the year in which he was appointed or last re-appointed but unless he falls within Article 97(b) below he shall be eligible for re-appointment. 

        ​

        (b)

        A Director shall also retire at any general meeting if he has agreed to do so (whether in accordance with the terms of his appointment or otherwise) and, unless the Directors have agreed otherwise, he shall not be eligible for re-appointment. 

        ​

        (c)

        Any Director whose term of office is expiring at an annual general meeting will retain office until the close of that meeting. 

        ​

        98.

        Nominations of Directors 

        ​

        No person shall be appointed a Director, unless nominated in accordance with the provisions of this Article or Article 101. Nominations of persons for appointment as Directors may be made: 

        (a)

        by recommendation of the Board or a committee thereof; or 

        ​

        (b)

        with respect to election at an extraordinary general meeting requisitioned in accordance with Section 178 of the Act (as amended by Section 1101 of the Act), by a Shareholder or Shareholders who hold Ordinary Shares or other shares carrying the general right to vote at general meetings of the Company and who make such nomination in the written requisition of the extraordinary general meeting and in compliance with the other provisions of these Articles and the Act relating to nominations of Directors and the proper bringing of special business before an extraordinary general meeting; or 

        ​

        (c)

        by Holders of any class or series of shares in the Company then in issue having special rights to nominate or appoint Directors in accordance with the terms of issue of such class or series, but only to the extent provided in such terms of issue, (sub-clauses (b) and (c) being the exclusive means for a Shareholder to make nominations of persons for election to the Board). 

        ​

        For nominations of persons for election as Directors at an extraordinary general meeting to be in proper written form, a Shareholder’s notice must comply with the requirements set out in Article 79. 

        The determination of whether a nomination of a candidate for election as a Director of the Company has been timely and properly brought before such meeting in accordance with this Article will be made by the chairman of such meeting. If the chairman determines that any nomination has not been timely and properly brought before such meeting, he or she will so declare to the meeting and such defective nomination will be disregarded. 

        99.

        Retirement 

        ​

        Subject to Article 100, a Director who retires at an annual general meeting may be reappointed, if willing to act. If he is not reappointed (or deemed to be reappointed pursuant to these Articles) he shall retain office until the meeting appoints someone in his place or, if it does not do so, until the end of the meeting. 

        100.

        Deemed reappointment 

        ​

        If a Director stands for re-election, he shall be deemed to have been re-elected, unless at such meeting the Ordinary Resolution for the re-election of such Director has been defeated. 

      

      
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        101.

        Appointment of additional Directors 

        ​

        Subject as aforesaid, the Directors may appoint a person to be a Director either to fill a vacancy or as an additional Director provided that the appointment does not cause the number of Directors to exceed any number fixed by or in accordance with these Articles as the maximum number of Directors. 

        PART XVI — DISQUALIFICATION AND REMOVAL OF DIRECTORS 

        102.

        Disqualification of Directors 

        ​

        The office of a Director shall be vacated thereupon if the Director: 

        (a)

        is restricted or disqualified from acting as a director of any company under the provisions of Part 14 of the Act; 

        ​

        (b)

        becomes bankrupt or makes any arrangement or composition with his creditors generally; 

        ​

        (c)

        in the opinion of a majority of the Board, becomes incapable by reason of mental disorder of discharging his duties as a Director; 

        ​

        (d)

        (not being a Director holding for a fixed term an executive office in his capacity as a Director) resigns his office by notice to the Company; 

        ​

        (e)

        is convicted of an indictable offence, unless the Directors otherwise determine; 

        ​

        (f)

        shall have been absent for more than six (6) consecutive months without permission of the Directors from meetings of the Directors held during that period, and the Directors pass a resolution that by reason of such absence he has vacated office; 

        ​

        (g)

        is required in writing (whether in electronic form or otherwise) by all his co-Directors to resign; or 

        ​

        (h)

        is removed from office under Section 146 of the Act or Article 103. 

        ​

        103.

        Removal of Directors 

        ​

        The Company, by Ordinary Resolution of which extended notice has been given in accordance with the provisions of the Act, may remove any Director before the expiry of his period of office notwithstanding anything in these Articles or in any agreement between the Company and such Director and may, if thought fit, by Ordinary Resolution appoint another person as Director in his stead. The person appointed shall be subject to retirement at the same time as if he had become a Director on the date on which the Director in whose place he is appointed was last appointed a Director. Nothing in this Article shall be taken as depriving a person removed hereunder of compensation or damages payable to him in respect of the termination of his appointment as Director or of any appointment terminating with that of Director. 

        PART XVII — DIRECTORS’ OFFICES AND INTERESTS 

        104.

        Executive offices 

        ​

        (a)

        The Directors may appoint one (1) or more of their body to the office of chairman, President, Vice-President, Managing Director or Joint Managing Director or to any other executive office (except that of Auditor) under the Company (including, where considered appropriate, the office of chairman) on such terms and for such period as they may determine and, without prejudice to the terms of any contract entered into in any particular case, may revoke any such appointment at any time. 

        ​

        (b)

        A Director holding any such executive office shall receive such remuneration, whether in addition to or in substitution for his ordinary remuneration as a Director and whether by way of salary, commission, participation in profits or otherwise or partly in one way and partly in another, as the Directors may determine. 

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        (c)

        The appointment of any Director to the office of chairman, President, Vice-President, Managing Director or Joint Managing Director shall determine automatically if he ceases to be a Director but without prejudice to any claim for damages for breach of any contract of service between him and the Company. 

        ​

        (d)

        The appointment of any Director to any other executive office shall not determine automatically if he ceases from any cause to be a Director unless the contract or resolution under which he holds office shall expressly state otherwise, in which event such determination shall be without prejudice to any claims for damages for breach of any contract of service between him and the Company. 

        ​

        (e)

        A Director may hold and be remunerated in respect of any other office or place of profit under the Company or any other company in which the Company may be interested (other than the office of auditor of the Company or any subsidiary thereof) in conjunction with his office of Director for such period and on such terms as to remuneration and otherwise as the Directors may determine. 

        ​

        (f)

        Any person elected or appointed pursuant to this Article shall hold his office or other position for such period and on such terms as the Board may determine and the Board may revoke or vary any such election or appointment at any time by resolution of the Board. Any such revocation or variation shall be without prejudice to any claim for damages that such person may have against the Company or the Company may have against such person for any breach of any contract of service between him and the Company which may be involved in such revocation or variation. If any such office or other position becomes vacant for any reason, the vacancy may be filled by the Board. 

        ​

        (g)

        In addition, the Board may appoint any person, whether or not he is a Director, to hold such executive or official position (except that of Auditor) as the Board may from time to time determine. The same person may hold more than one office or executive or official position. 

        ​

        (h)

        Except as provided in the Act or these Articles, the powers and duties of any person elected or appointed to any office or executive or official position pursuant to this Article shall be such as are determined from time to time by the Board. 

        ​

        (i)

        The use or inclusion of the word “officer” (or similar words) in the title of any executive or other position shall not be deemed to imply that the person holding such executive or other position is an “officer” of the Company within the meaning of the Act. 

        ​

        105.

        Directors’ interests 

        ​

        (a)

        Subject to the provisions of the Act, and provided that he has disclosed to the Directors the nature and extent of any material interest of his, a Director or entities in which any such Director has an interest or of which any such director is an officer, director, member, partner or employee, notwithstanding his office: 

        ​

        (i)

        may be a party to, or otherwise interested in, any transaction or arrangement with the Company or any subsidiary or associated company thereof or in which the Company or any subsidiary or associated company thereof is otherwise interested; 

        ​

        (ii)

        may be a director or other officer of, or employed by, or a party to any transaction or arrangement with, or otherwise interested in, any body corporate promoted by the Company or in which the Company or any subsidiary or associated company thereof is otherwise interested; and 

        ​

        (iii)

        shall not be accountable, by reason of his office, to the Company for any benefit which he derives from any such office or employment or from any such transaction or arrangement or from any interest in any such body corporate and no such transaction or arrangement shall be liable to be avoided on the ground of any such interest or benefit. 

        ​

        (b)

        Subject to the provisions of the Act, no Director or intending Director shall be disqualified by his office from contracting with the Company either as vendor, purchaser or otherwise, nor shall any such contract or any contract or arrangement entered into by or on behalf of the other company 

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        in which any Director shall be in any way interested be avoided nor shall any Director so contracting or being so interested be liable to account to the Company for any profit realised by any such contract or arrangement by reason of such Director holding that office or of the fiduciary relationship thereby established. The nature of a Director’s interest must be declared by him at the meeting of the Directors at which the question of entering into the contract or arrangement is first taken into consideration, or if the Director was not at the date of that meeting interested in the proposed contract or arrangement at the next meeting of the Directors held after he became so interested, and in a case where the Director becomes interested in a contract or arrangement after it is made at the first meeting of the Directors held after he becomes so interested. 

        (c)

        A copy of every declaration made and notice given under this Article shall be entered within three days after the making or giving thereof in a book kept for this purpose. Such book shall be open for inspection without charge by any Director, Secretary, Auditor or member of the Company at the Registered Office and shall be produced at every general meeting of the Company and at any meeting of the Directors if any Director so requests in sufficient time to enable the book to be available at the meeting. 

        ​

        (d)

        The Directors may exercise the voting powers conferred by shares of any other company held or owned by the Company in such manner in all respects as they think fit and in particular they may exercise their voting powers in favour of any resolution appointing the Directors or any of them as Directors or officers of such other company or providing for the payment of remuneration or pensions to the Directors or officers of such other company. 

        ​

        (e)

        Any Director may act by himself or his firm in a professional capacity for the Company, and he or his firm shall be entitled to remuneration for professional services as if he were not a Director, but nothing herein contained shall authorise a Director or his firm to act as auditor for the Company. 

        ​

        (f)

        For the purposes of this Article: 

        ​

        (i)

        a general notice given to the Directors that a Director is to be regarded as having an interest of the nature and extent specified in the notice in any transaction or arrangement in which a specified person or class of persons is interested shall be deemed to be a disclosure that the Director has an interest in any such transaction of the nature and extent so specified; and 

        ​

        (ii)

        an interest of which a Director has no knowledge and of which it is unreasonable to expect him to have knowledge shall not be treated as an interest of his. 

        ​

        106.

        Restriction on Directors’ voting 

        ​

        (a)

        A Director who to his knowledge is in any way, whether directly or indirectly, interested in a contract or proposed contract, transaction or arrangement with the Company and has complied with the Act and these Articles with regard to disclosure of his interest shall be entitled to vote in respect of any contract, transaction or arrangement in which he is so interested and if he shall do so his vote shall be counted, and he shall be taken into account in ascertaining whether a quorum is present, but the resolution with respect to the contract, transaction or arrangement will fail unless it is approved by a majority of the disinterested Directors voting on the resolution. 

        ​

        (b)

        Where proposals are under consideration concerning the appointment (including fixing or varying the terms of appointment) of two or more Directors to offices or employments with the Company or any company in which the Company is interested, such proposals may be divided and considered in relation to each Director separately and in such case each of the Directors concerned shall be entitled to vote (and be counted in the quorum) in respect of each resolution except that concerning his own appointment. 

        ​

        (c)

        For the purposes of this Article, an interest of a person who is the spouse or a minor child of a Director shall be treated as an interest of the Director. 

        ​

        (d)

        The Company by Ordinary Resolution may suspend or relax the provisions of this Article to any extent or ratify any transaction not duly authorised by reason of a contravention of this Article. 

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        (e)

        The provisions of Section 228(1)(e) of the Act shall not apply to restrict any Director from entering into any commitment that has been approved by the Board (or which has been has been approved pursuant to any authority delegated by the Board in accordance with Part XIV of these Articles). 

        ​

        107.

        Entitlement to grant pensions 

        ​

        The Directors may provide benefits, whether by way of pensions, gratuities or otherwise, for any Director, former Director or other officer or former officer of the Company or to any person who holds or has held any employment with the Company or with any body corporate which is or has been a subsidiary or associated company of the Company or a predecessor in business of the Company or of any such subsidiary or associated company and to any member of his family or any person who is or was dependent on him and may set up, establish, support, alter, maintain and continue any scheme for providing all or any such benefits and for such purposes any Director accordingly may be, become or remain a member of, or rejoin, any scheme and receive or retain for his own benefit all benefits to which he may be or become entitled thereunder. The Directors may pay out of the funds of the Company any premiums, contributions or sums payable by the Company under the provisions of any such scheme in respect of any of the persons or class of persons above referred to who are or may be or become members thereof. 

        PART XVIII — PROCEEDINGS OF DIRECTORS 

        108.

        Convening and regulation of Directors’ meetings 

        ​

        (a)

        Subject to the provisions of these Articles, the Directors may regulate their proceedings as they think fit. A Director may, and the Secretary at the request of a Director shall, call a meeting of the Directors. Any Director may waive notice of any meeting and any such waiver may be retrospective. If the Directors so resolve, it shall not be necessary to give notice of a meeting of the Directors to any Director who, being a resident of Ireland, is for the time being absent from Ireland. 

        ​

        (b)

        Notwithstanding anything in these Articles or in the Act which might be construed as providing to the contrary, notice of every meeting of the Directors shall be given to all Directors either by mail not less than 48 hours before the date of the meeting, by telephone, email, or any other electronic means on not less than 24 hours’ notice, or on such shorter notice as the person or persons calling such meeting may deem necessary or appropriate and which is reasonable in the circumstances. Any Director may waive any notice required to be given under these Articles, and the attendance of a Director at a meeting shall be deemed to be a waiver by such Director. 

        ​

        109.

        Quorum for Directors’ meetings 

        ​

        (a)

        The quorum for the transaction of the business of the Directors may be fixed by the Directors and unless so fixed at any other number shall be a majority of the Directors. 

        ​

        (b)

        The continuing Directors or a sole Director may act notwithstanding any vacancies in their number but if the number of Directors is less than the number fixed as the quorum, they may act only for the purpose of filling vacancies or of calling a general meeting. 

        ​

        110.

        Voting at Directors’ meetings 

        ​

        Questions arising at any meeting of Directors shall be decided by a majority of votes. Where there is an equality of votes, the chairman of the meeting shall have a second or casting vote. 

        111.

        Board committees 

        ​

        The Board may from time to time designate committees of the Board, with such powers and duties as the Board may decide to confer on such committees, and shall, for those committees and any others provided for herein, elect a Director or Directors to serve as the member or members, designating, if it desires, other Directors as alternate members who may replace any absent or disqualified member at any meeting of the committee. Adequate provision shall be made for notice to members of all meetings of committees; a majority of the members shall constitute a quorum unless the committee shall consist 

      

      
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        of one or two members, in which event one member shall constitute a quorum; and all matters shall be determined by a majority vote of the members present. Action may be taken by any committee without a meeting if all members thereof consent thereto in writing, and the writing or writings are filed with the minutes of the proceedings of such committees. Subject to no appointment to the office of chairman of any such Committee having been made pursuant to a resolution of the Board, a committee may elect a chairman of its meeting. If no such chairman is elected, or if at any meeting the chairman is not present within five minutes after the time appointed for holding the same, the members present may choose one of their number to be chairman of the meeting. Subject to any provisions of this Article, the proceedings of a committee shall be governed by the provisions of these Articles regulating the proceedings of Directors so far as they are capable of applying. 

        112.

        Telecommunication meetings 

        ​

        A meeting of the Directors or any committee appointed by the Directors may be held by means of such telephone, electronic or other communication facilities (including, without limiting the foregoing, by telephone or by video conferencing) as permit all persons participating in the meeting to communicate with each other simultaneously and instantaneously and participation in such a meeting shall constitute presence in person at such meeting. Such a meeting shall be deemed to take place where the largest group of those Directors participating in the meeting is physically assembled, or, if there is no such group, where the chairman of the meeting then is. 

        113.

        Chairman of the Board 

        ​

        Subject to any appointment to the office of chairman made pursuant to these Articles, the Directors may elect a chairman of their meetings and determine the period for which he is to hold office, but if no such chairman is elected or if at any meeting the chairman is unwilling to act or is not present within five minutes after the time appointed for holding the same the Directors present may choose one of their number to be chairman of the meeting. 

        114.

        Validity of acts of Directors 

        ​

        All acts done by any meeting of the Directors or of a committee of Directors or by any person acting as a Director, notwithstanding that it be afterwards discovered that there was some defect in the appointment of any such Director or person acting as aforesaid, or that they or any of them were disqualified from holding office or had vacated office, shall be as valid as if every such person had been duly appointed and was qualified and had continued to be a Director and had been entitled to vote. 

        115.

        Directors’ resolutions or other documents in writing 

        ​

        A resolution or other document in writing (in electronic form or otherwise) signed (whether by electronic signature, advanced electronic signature or otherwise as approved by the Directors) by all the Directors entitled to receive notice of a meeting of Directors or of a committee of Directors shall be as valid as if it had been passed at a meeting of Directors or (as the case may be) a committee of Directors duly convened and held and may consist of several documents in the like form each signed by one or more Directors, and such resolution or other document or documents when duly signed may be delivered or transmitted (unless the Directors shall otherwise determine either generally or in any specific case) by facsimile transmission, electronic mail or some other similar means of transmitting the contents of documents. 

        116.

        Minutes of meetings 

        ​

        The Directors shall cause minutes to be made in books provided for the purpose: 

        (a)

        of all appointments of officers and committees made by the Directors; 

        ​

        (b)

        of the names of the Directors present at each meeting of the Directors and of any Directors and all other members thereof present at every meeting of any committee appointed by the Directors; and 

        ​

        (c)

        of all resolutions and proceedings at all meetings of the Company and of the Holders of any class of shares in the Company and of the Directors and of committees of Directors. 

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        Any such minute as aforesaid, if purporting to be signed by the chairman of the meeting at which the proceedings were had, or by the chairman of the next succeeding meeting, shall be receivable as prima facie evidence of the matter stated in such minute without any further proof. 

        PART XIX — THE SECRETARY 

        117.

        Appointment of Secretary 

        ​

        The Secretary shall (subject to Section 1112 of the Act) be appointed by the Directors for such term, at such remuneration and upon such conditions as they may think fit and any Secretary so appointed may be removed by them. Anything required or authorised by the Act or these Articles to be done by the Secretary may be done, if the office is vacant or there is for any other reason no Secretary readily available and capable of acting, by or to any assistant or acting secretary readily available and capable of acting, or by or to any officer of the Company authorised generally or specially in that behalf by the Directors; provided that any provision of the Act or these Articles requiring or authorising a thing to be done by or to a Director and the Secretary shall not be satisfied by its being done by or to the same person acting both as a Director and as, or in the place of, the Secretary. 

        PART XX — RIGHTS PLAN 

        118.

        Rights plan 

        ​

        Subject to applicable law, the Board is hereby expressly authorised to adopt any shareholder rights plan or similar plan, agreement or arrangement pursuant to which, under circumstances provided therein, some or all Shareholders will have rights to acquire Shares or interests in Shares at a discounted price, upon such terms and conditions as the Board deems expedient and in the best interests of the Company. 

        PART XXI — THE SEAL 

        119.

        Use of Seal 

        ​

        The Directors shall ensure that the Seal (including any official securities seal kept pursuant to the Act) shall be used only by the authority of the Directors or of a committee authorised by the Directors. 

        120.

        Seal for use abroad 

        ​

        The Company may exercise the powers conferred by the Act with regard to having an official seal for use abroad and a securities seal as provided for in Section 1017 of the Act and such powers shall be vested in the Directors. 

        121.

        Signature of sealed instruments 

        ​

        (a)

        Every instrument to which the Seal shall be affixed shall be signed by a Director and shall also be signed by the Secretary or by a second Director or by some other person appointed by the Directors for the purpose save that as regards any certificates for shares or debentures or other securities of the Company the Directors may determine by resolution that such signatures or either of them shall be dispensed with, or be printed thereon or affixed thereto by some method or system of mechanical signature provided that in any such case the certificate to be sealed shall have been approved for sealing by the Secretary or by the registrar of the Company or by the Auditors or by some other person appointed by the Directors for this purpose in writing (and, for the avoidance of doubt, it is hereby declared that it shall be sufficient for approval to be given and/or evidenced either in such manner (if any) as may be approved by or on behalf of the Directors or by having certificates initialled before sealing or by having certificates presented for sealing accompanied by a list thereof which has been initialled). 

        ​

        (b)

        For the purposes of this Article, any instrument in electronic form to which the seal is required to be affixed, shall be sealed by means of an advanced electronic signature based on a qualified certificate of a Director and the Secretary or of a second Director or by some other person appointed by the Directors for the purpose. 

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        PART XXII — DIVIDENDS AND RESERVES 

        122.

        Declaration of dividends 

        ​

        Subject to the provisions of the Act, the Company may by Ordinary Resolution declare dividends in accordance with the respective rights of the members, but no such dividend shall exceed the amount recommended by the Directors. 

        123.

        Interim and fixed dividends 

        ​

        Subject to the provisions of the Act, the Directors may pay interim dividends if it appears to them that they are justified by the profits of the Company available for distribution. If the share capital is divided into different classes, the Directors may pay interim dividends on shares which confer deferred or non-preferred rights with regard to dividend as well as on shares which confer preferential rights with regard to dividend, but subject always to any restrictions for the time being in force (whether under these Articles, under the terms of issue of any shares or under any agreement to which the Company is a party, or otherwise) relating to the application, or the priority of application, of the Company’s profits available for distribution or to the declaration or as the case may be the payment of dividends by the Company. Subject as aforesaid, the Directors may also pay at intervals settled by them any dividend payable at a fixed rate if it appears to them that the profits available for distribution justify the payment. Provided the Directors act in good faith they shall not incur any liability to the Holders of shares conferring preferred rights for any loss they may suffer by the lawful payment of an interim dividend on any shares having deferred or non-preferred rights. 

        124.

        Payment of dividends 

        ​

        (a)

        Except as otherwise provided by the rights attached to shares, all dividends shall be declared and paid according to the amounts paid up on the shares on which the dividend is paid. Subject as aforesaid, all dividends shall be apportioned and paid proportionately to the amounts paid or credited as paid on the shares during any portion or portions of the period in respect of which the dividend is paid; but if any share is issued on terms providing that it shall rank for dividend as from a particular date, such share shall rank for dividend accordingly. For the purposes of this Article, no amount paid on a share in advance of calls shall be treated as paid on a share. 

        ​

        (b)

        If several persons are registered as joint Holders of any share, any one of them may give effectual receipts for any dividend or other monies payable on or in respect of the share. 

        ​

        125.

        Deductions from dividends 

        ​

        The Directors may deduct from any dividend or other monies payable to any member in respect of a share any monies presently payable by him to the Company in respect of that share. 

        126.

        Dividends in specie 

        ​

        The Board or any general meeting declaring a dividend (upon the recommendation of the Board), may direct that any dividend or distribution be paid wholly or partly by the distribution of specific assets and in particular of paid up shares, debentures, or debenture stock of any other company or in any one or more of such ways and where any difficulty arises in regard to such distribution, the Board may settle the same as they think expedient and in particular may issue fractional certificates and fix the value for distribution of such specific assets or any part thereof and may determine that cash payments shall be made to any members upon the footing of the value so fixed in order to adjust the rights of all the members and may vest any such specific assets in trustees as may seem expedient to the Board. 

        127.

        Dividend payment mechanism 

        ​

        (a)

        Any dividend or other monies payable in respect of any share may be paid by cheque or warrant sent by post, at the risk of the person or persons entitled thereto, to the registered address of the Holder or, where there are joint Holders, to the registered address of that one of the joint Holders who is first named on the Register or to such person and to such address as the Holder or joint Holders may in writing direct. Every such cheque or warrant shall be made payable to the order of the person to whom it is sent and payment of the cheque or warrant shall be a good discharge to the Company. Any joint Holder or other person jointly entitled to a share as aforesaid may give 

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        receipts for any dividend or other monies payable in respect of the share. Any such dividend or other distribution may also be paid by any other method (including payment in a currency other than US$, electronic funds transfer, direct debit, bank transfer or by means of a relevant system) which the Directors consider appropriate and any member who elects for such method of payment shall be deemed to have accepted all of the risks inherent therein. The debiting of the Company’s account in respect of the relevant amount shall be evidence of good discharge of the Company’s obligations in respect of any payment made by any such methods. 

        (b)

        In respect of shares in uncertificated form, where the Company is authorised to do so by or on behalf of the Holder or joint Holders in such manner as the Company shall from time to time consider sufficient, the Company may also pay any such dividend, interest or other monies by means of the relevant system concerned (subject always to the facilities and requirements of that relevant system). Every such payment made by means of the relevant system shall be made in such manner as may be consistent with the facilities and requirements of the relevant system concerned. Without prejudice to the generality of the foregoing, in respect of shares in uncertificated form, such payment may include the sending by the Company or by any person on its behalf of an instruction to the operator of the relevant system to credit the cash memorandum account of the Holder or joint Holders. 

        ​

        128.

        Dividends not to bear interest 

        ​

        No dividend or other monies payable in respect of a share shall bear interest against the Company unless otherwise provided by the rights attached to the share. 

        129.

        Payment to Holders on a particular date 

        ​

        Any resolution declaring a dividend on shares of any class, whether a resolution of the Company in general meeting or a resolution of the Directors, may specify that the same may be payable to the persons registered as the Holders of such shares at the close of business on a particular date, notwithstanding that it may be a date prior to that on which the resolution is passed, and thereupon the dividend shall be payable to them in accordance with their respective holdings so registered, but without prejudice to the rights inter se of transferors and transferees of any such shares in respect of such dividend. The provisions of this Article shall apply equally to capitalisations to be effected in pursuance of these Articles. Any dividend, interest or other sum payable which remains unclaimed for one (1) year after having been declared may be invested or otherwise made use of by the Directors for the benefit of the Company until claimed. 

        130.

        Unclaimed dividends 

        ​

        If the Directors so resolve, any dividend which has remained unclaimed for six (6) years from the date of its declaration shall be forfeited and cease to remain owing by the Company. The payment by the Directors of any unclaimed dividend or other monies payable in respect of a share into a separate account shall not constitute the Company a trustee in respect thereof. 

        131.

        Reserves 

        ​

        Before recommending any dividend, the Directors may carry to reserve out of the profits of the Company such sums as they think proper. All sums standing to reserve may be applied from time to time in the discretion of the Directors for any purpose to which the profits of the Company may be properly applied and at the like discretion may be either employed in the business of the Company or invested in such investments as the Directors may lawfully determine. The Directors may divide the reserve into such special funds as they think fit and may consolidate into one fund any special funds or any parts of any special funds into which the reserve may have been divided as they may lawfully determine. Any sum which the Directors may carry to reserve out of the unrealised profits of the Company shall not be mixed with any reserve to which profits available for distribution have been carried. The Directors may also carry forward, without placing the same to reserve, any profits which they may think it prudent not to divide. 

      

      
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        PART XXIII — ACCOUNTS 

        132.

        Accounts 

        ​

        (a)

        The Directors shall cause to be kept adequate accounting records, whether in the form of documents, electronic form or otherwise, that: 

        ​

        (i)

        correctly record and explain the transactions of the Company; 

        ​

        (ii)

        will at any time enable the assets, liabilities, financial position and profit or loss of the Company to be determined with reasonable accuracy; 

        ​

        (iii)

        will enable the Directors to ensure that any financial statements of the Company can be prepared in accordance with the requirements of the Act; and 

        ​

        (iv)

        will enable the financial statements of the Company so prepared to be audited. 

        ​

        The accounting records shall be kept on a continuous and consistent basis and entries therein shall be made in a timely manner and be consistent from year to year. Adequate accounting records shall not be deemed to be kept if there are not kept such accounting records as are necessary to facilitate the preparation of financial statements that give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and, if relevant, the group and to explain its transactions. 

        The Company may send by post, electronic mail or any other means of electronic communication a summary financial statement to its shareholders or persons nominated by any member. The Company may meet, but shall be under no obligation to meet, any request from any of its members to be sent additional copies of its full report and accounts or summary financial statement or other communications with its members unless so required under applicable Exchange rules or SEC rules. 

        (b)

        The accounting records shall be kept at the Registered Office or, subject to the provisions of the Act, at such other place as the Directors think fit and shall be open at all reasonable times to the inspection of the Directors. 

        ​

        (c)

        The Directors shall determine from time to time whether and to what extent and at what times and places and under what conditions or regulations the accounts and books of the Company or any of them shall be open to the inspection of members, not being Directors. No member (not being a Director) shall have any right of inspecting any account or book or document of the Company except as conferred by the Act or authorised by the Directors or by the Company in general meeting. 

        ​

        (d)

        In accordance with the provisions of the Act, the Directors shall cause to be prepared and to be laid before the annual general meeting of the Company from time to time such statutory financial statements of the Company and reports as are required by the Act to be prepared and laid before such meeting. 

        ​

        (e)

        A copy of  (i) the statutory financial statements of the Company which are to be laid before the annual general meeting of the Company, together with a copy of the Directors’ report and Auditors’ report thereon or (ii) summary financial statements prepared in accordance with Section 1119 of the Act shall be sent by post, electronic mail or any other means of electronic communication not less than twenty one (21) Clear Days before the date of the annual general meeting of the Company to every person entitled under the provisions of the Act to receive them; provided that in the case of those documents sent by electronic mail or any other means of electronic communication, such documents shall be sent with the consent of the recipient, to the address of the recipient notified to the Company by the recipient for such purposes and the required number of copies of these documents shall be forwarded at the same time to the appropriate section of the Exchange. 

        ​

        (f)

        Auditors shall be appointed and their duties regulated in accordance with the Act. 

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        (g)

        Where the Directors elect to send summary financial statements to the members in accordance with Section 1119 of the Act, any member may request a copy of the statutory financial statements of the Company and a copy of the Directors’ report and Auditors’ report thereon. 

        ​

        PART XXIV — CAPITALISATION OF PROFITS OR RESERVES 

        133.

        Capitalisation of distributable profits and reserves 

        ​

        The Directors may resolve to capitalise any part of the amount for the time being standing to the credit of any of the Company’s reserve accounts or to the credit of the profit and loss account which is not available for distribution by applying such sum in paying up in full unissued shares to be allotted as fully paid bonus shares to those members of the Company who would have been entitled to that sum if it were distributable and had been distributed by way of dividend (and in the same proportions). In pursuance of any such resolution under this Article, the Directors shall make all appropriations and applications of the undivided profits resolved to be capitalised thereby and all allotments and issues of fully paid shares or debentures, if any, and generally shall do all acts and things required to give effect thereto with full power to the Directors to make such provisions as they shall think fit for the case of shares or debentures becoming distributable in fractions (and, in particular, without prejudice to the generality of the foregoing, either to disregard such fractions or to sell the shares or debentures represented by such fractions and distribute the net proceeds of such sale to and for the benefit of the Company or to and for the benefit of the members otherwise entitled to such fractions in due proportions) and to authorise any person to enter on behalf of all the members concerned into an agreement with the Company providing for the allotment to them respectively, credited as fully paid up, of any further shares or debentures to which they may become entitled on such capitalisation or, as the case may require, for the payment up by the application thereto of their respective proportions of the profits resolved to be capitalised of the amounts remaining unpaid on their existing shares and any agreement made under such authority shall be binding on all such members. 

        134.

        Implementation of capitalisation issues 

        ​

        Whenever such a resolution is passed in pursuance of the immediately preceding Article the Directors shall make all appropriations and applications of the undivided profits resolved to be capitalised thereby and all allotments and issues of fully paid shares or debentures, if any, and generally shall do all acts and things required to give effect thereto with full power to the Directors to make such provisions as they shall think fit for the case of shares or debentures becoming distributable in fractions (and, in particular, without prejudice to the generality of the foregoing, either to disregard such fractions or to sell the shares or debentures represented by such fractions and distribute the net proceeds of such sale to and for the benefit of the Company or to and for the benefit of the members otherwise entitled to such fractions in due proportions) and to authorise any person to enter on behalf of all the members concerned into an agreement with the Company providing for the allotment to them respectively, credited as fully paid up, of any further shares or debentures to which they may become entitled on such capitalisation or, as the case may require, for the payment up by the application thereto of their respective proportions of the profits resolved to be capitalised of the amounts remaining unpaid on their existing shares and any agreement made under such authority shall be binding on all such members. 

        PART XXV — NOTICES 

        135.

        Notices in writing 

        ​

        Any notice to be given, served, sent or delivered pursuant to these Articles shall be in writing (whether in electronic form or otherwise). 

        136.

        Service of notices 

        ​

        (a)

        A notice or document (including a share certificate) to be given, served, sent or delivered in pursuance of these Articles may be given to, served on or delivered to any member by the Company: 

        ​

        (i)

        by handing same to him or his authorised agent; 

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        (ii)

        by leaving the same at his registered address; 

        ​

        (iii)

        by sending the same by the post in a pre-paid cover addressed to him at his registered address; 

        ​

        (iv)

        by sending the same by courier in a pre-paid cover addressed to him at his registered address; or 

        ​

        (v)

        by sending the same by means of electronic mail or making it available by other means of electronic communication approved by the Directors, provided that any Holder may require the Company to send him a physical copy of the notice or document by requesting the Company to do so provided further however that such request is made after the date of adoption of this Article and it may not take effect until five (5) days after written notice of the request is received by the Company. 

        ​

        (b)

        For the purposes of these Articles and the Act, a document shall be deemed to have been sent to a member if a notice is given, served, sent or delivered to the member and the notice specifies the website or hotlink or other electronic link at or through which the member may obtain a copy of the relevant document. 

        ​

        (c)

        Where a notice or document is given, served or delivered pursuant to sub-paragraph (a) (i) or (ii) of this Article, the giving, service or delivery thereof shall be deemed to have been effected at the time the same was handed to the member or his authorised agent, or left at his registered address (as the case may be). 

        ​

        (d)

        Where a notice or document is given, served or delivered pursuant to sub-paragraph (a) (ii) of this Article, the giving, service or delivery thereof shall be deemed to have been effected at the time the same was handed to the member or his authorised agent, or left at his registered address (as the case may be). In proving service or delivery it shall be sufficient to prove that such cover was properly addressed, stamped and posted. 

        ​

        (e)

        Where a notice or document is given, served or delivered pursuant to sub-paragraph (a)(iii) of this Article the giving, service or delivery thereof shall be deemed to have been effected at the expiration of twenty-four 24 hours after the cover containing it was posted. In proving service or delivery it shall be sufficient to prove that such cover was properly addressed, stamped and posted. 

        ​

        (f)

        Where a notice or document is given, served or delivered pursuant to sub-paragraph (a)(iv) of this Article, the giving, service or delivery thereof shall be deemed to have been effected at the expiration of twelve (12) hours after despatch. 

        ​

        (g)

        Every legal personal representative, committee, receiver, curator bonis or other legal curator, assignee in bankruptcy, examiner or liquidator of a member shall be bound by a notice given as aforesaid if sent to the last registered address of such member, or, in the event of notice given or delivered pursuant to sub-paragraph (a)(v), if sent to the address notified by the Company by the member for such purpose notwithstanding that the Company may have notice of the death, lunacy, bankruptcy, liquidation or disability of such member. 

        ​

        (h)

        Without prejudice to the provisions of sub-paragraphs (a) (ii) and (iii) of this Article, if at any time by reason of the suspension or curtailment of postal services in any territory, the Company is unable effectively to convene a general meeting by notices sent through the post, a general meeting may be convened by a notice issued through a public announcement and such notice shall be deemed to have been duly served on all members entitled thereto at noon on the day on which the said advertisement or advertisements shall appear. In any such case the Company shall put a full copy of the notice of the general meeting on its website and shall send confirmatory copies of the notice through the post to those members whose registered addresses are outside Ireland (if or to the extent that in the opinion of the Directors it is practical so to do) or are in areas of Ireland unaffected by such suspension or curtailment of postal services and if at least ninety-six (96) hours prior to the time appointed for the holding of the meeting the posting of notices to members in Ireland, or any part thereof which was previously affected, has become practical in the opinion of the Directors, the Directors shall send forthwith confirmatory copies of the notice by post to such members. The accidental omission to give any such confirmatory copy of a notice of 

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        a meeting to, or the non-receipt of any such confirmatory copy by, any person entitled to receive the same shall not invalidate the proceedings at the meeting. For the purposes this Article, “public announcement” shall mean disclosure in a press release reported by a national news service or a document publicly filed by the company with the SEC pursuant to Sections 13, 14 or 15(d) of the Exchange Act and the rules and regulations promulgated thereunder. 

        (i)

        Notwithstanding anything contained in this Article the Company shall not be obliged to take account of or make any investigations as to the existence of any suspension or curtailment of postal services within or in relation to all or any part of any jurisdiction or other area other than Ireland. 

        ​

        (j)

        Any requirement in these Articles for the consent of a member in regard to the receipt by such member of electronic mail or other means of electronic communications approved by the Directors, including the receipt of the Company’s audited financial statements and the Directors’ and Auditor’s reports thereon, shall be deemed to have been satisfied where the Company has written to the member informing him of its intention to use electronic communications for such purposes and the member has not, within 4 weeks of the issue of such notice, served an objection in writing on the Company to such proposal. Where a member has given, or is deemed to have given, his consent to the receipt by such member of electronic mail or other means of electronic communications approved by the Directors, he may revoke such consent at any time by requesting the Company to communicate with him in documented form provided however that such revocation shall not take effect until five (5) days after written notice of the revocation is received by the Company. 

        ​

        137.

        Service on joint Holders 

        ​

        A notice may be given by the Company to the joint Holders of a share by giving the notice to the joint Holder whose name stands first in the Register in respect of the share and notice so given shall be sufficient notice to all the joint Holders. 

        138.

        Service on transfer or transmission of shares 

        ​

        (a)

        Every person who becomes entitled to a share shall before his name is entered in the Register in respect of the share, be bound by any notice in respect of that share which has been duly given to a person from whom he derives his title. 

        ​

        (b)

        A notice may be given by the Company to the persons entitled to a share in consequence of the death or bankruptcy of a member by sending or delivering it, in any manner authorised by these Articles for the giving of notice to a member, addressed to them at the address, if any, supplied by them for that purpose. Until such an address has been supplied, a notice may be given in any manner in which it might have been given if the death or bankruptcy had not occurred. 

        ​

        139.

        Signature to notices 

        ​

        The signature (whether electronic signature, an advanced electronic signature or otherwise) to any notice to be given by the Company may be written (in electronic form or otherwise) or printed. 

        140.

        Deemed receipt of notices 

        ​

        A member present, either in person or by proxy, at any meeting of the Company or the Holders of any class of shares in the Company shall be deemed to have received notice of the meeting and, where requisite, of the purposes for which it was called. 

        PART XXVI — WINDING UP 

        141.

        Distribution on winding up 

        ​

        Subject to Articles 5, 6, 7 and 8 if the Company shall be wound up and the assets available for distribution among the members as such shall be insufficient to repay the whole of the paid up or credited as paid up share capital, such assets shall be distributed so that, as nearly as may be, the losses shall be borne by the members in proportion to the capital paid up or credited as paid up at the commencement of the winding up on the shares held by them respectively. And if in a winding up the 

      

      
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        assets available for distribution among the members shall be more than sufficient to repay the whole of the share capital paid up or credited as paid up at the commencement of the winding up, the excess shall be distributed among the members in proportion to the capital at the commencement of the winding up paid up or credited as paid up on the said shares held by them respectively. Provided that this Article shall not affect the rights of the Holders of shares issued upon special terms and conditions. 

        142.

        Sale by a liquidator 

        ​

        (a)

        In case of a sale by the liquidator under Section 601 of the Act, the liquidator may by the contract of sale agree so as to bind all the members for the allotment to the members direct of the proceeds of sale in proportion to their respective interests in the Company and may further by the contract limit a time at the expiration of which obligations or shares not accepted or required to be sold shall be deemed to have been irrevocably refused and be at the disposal of the Company, but so that nothing herein contained shall be taken to diminish, prejudice or affect the rights of dissenting members conferred by the said Section. 

        ​

        (b)

        The power of sale of the liquidator shall include a power to sell wholly or partially for debentures, debenture stock, or other obligations of another company, either then already constituted or about to be constituted for the purpose of carrying out the sale. 

        ​

        143.

        Distribution in specie 

        ​

        If the Company is wound up, the liquidator, with the sanction of a Special Resolution and any other sanction required by the Act, may divide among the members in specie or kind the whole or any part of the assets of the Company (whether they shall consist of property of the same kind or not), and, for such purpose, may value any assets and determine how the division shall be carried out as between the members or different classes of members. The liquidator, with the like sanction, may vest the whole or any part of such assets in trustees upon such trusts for the benefit of the contributories as, with the like sanction, he determines, but so that no member shall be compelled to accept any assets upon which there is a liability. 

        PART XXVII — MISCELLANEOUS 

        144.

        Inspection and secrecy 

        ​

        The Directors shall determine from time to time whether and to what extent and at what times and places and under what conditions or regulations the accounts and books of the Company or any of them shall be open to the inspection of members, not being Directors, and no member (not being a Director) shall have any right of inspecting any account or book or document of the Company except as conferred by the Act or authorised by the Directors or by the Company in general meeting. No member shall be entitled to require discovery of or any information respecting any detail of the Company’s trading, or any matter which is or may be in the nature of a trade secret, mystery of trade, or secret process which may relate to the conduct of the business of the Company and which in the opinion of the Directors it would be inexpedient in the interests of the members of the Company to communicate to the public. 

        145.

        Closing the Register or fixing record date 

        ​

        (a)

        For the purpose of determining members entitled to notice of or to vote at any meeting of members or any adjournment thereof, or members entitled to receive payment of any dividend, or in order to make a determination of members for any other proper purpose, the Board may provide, subject to the requirements of Section 174 of the Act that the Register shall be closed for transfers at such times and for such periods, not exceeding in the whole thirty (30) days in each year. If the Register shall be so closed for the purpose of determining members entitled to notice of or to vote at a meeting of members such Register shall be so closed for at least five (5) days immediately preceding such meeting and the record date for such determination shall be the date of the closure of the Register. 

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        (b)

        In lieu of, or apart from, closing the Register, the Board may fix in advance a date as the record date (a) for any such determination of members entitled to notice of or to vote at a meeting of the members, which record date shall not be more than sixty (60) days nor less than ten (10) days before the date of such meeting, and (b) for the purpose of determining the members entitled to receive payment of any dividend, or in order to make a determination of members for any other proper purpose, which record date shall not be more than sixty (60) days prior to the date of payment of such dividend or the taking of any action to which such determination of members is relevant. The record date shall not precede the date upon which the resolution fixing the record date is adopted by the Directors. 

        ​

        (c)

        If the Register is not so closed and no record date is fixed for the determination of members entitled to notice of or to vote at a meeting of members or members entitled to receive payment of a dividend, the date immediately preceding the date on which notice of the meeting is deemed given under these Articles or the date on which the resolution of the Directors declaring such dividend is adopted, as the case may be, shall be the record date for such determination of members. When a determination of members entitled to vote at any meeting of members has been made as provided in these Articles, such determination shall apply to any adjournment thereof; provided, however, that the Directors may fix a new record date of the adjourned meeting, if they think fit. 

        ​

        146.

        Destruction of records 

        ​

        The Company may destroy: 

        (a)

        any dividend mandate or any variation or cancellation thereof or any notification of change of name or address, at any time after the expiry of two years from the date such mandate variation, cancellation or notification was recorded by the Company: 

        ​

        (b)

        any instrument of transfer of shares which has been registered, at any time after the expiry of six years from the date of registration; 

        ​

        (c)

        all share certificates which have been cancelled at any time after the expiration of one year from the date of cancellation thereof; 

        ​

        (d)

        all paid dividend warrants and cheques at any time after the expiration of one year from the date of actual payment thereof; 

        ​

        (e)

        all instruments of proxy which have been used for the purpose of a poll at any time after the expiration of one year from the date of such use; 

        ​

        (f)

        all instruments of proxy which have not been used for the purpose of a poll at any time after one month from the end of the meeting to which the instrument of proxy relates and at which no poll was demanded; and 

        ​

        (g)

        any other document on the basis of which any entry in the Register was made, at any time after the expiry of six years from the date an entry in the Register was first made in respect of it, and it shall be presumed conclusively in favour of the Company that every share certificate (if any) so destroyed was a valid certificate duly and properly sealed and that every instrument of transfer so destroyed was a valid and effective instrument duly and properly registered and that every other document destroyed hereunder was a valid and effective document in accordance with the recorded particulars thereof in the books or records of the Company provided always that: 

        ​

        (i)

        the foregoing provisions of this Article shall apply only to the destruction of a document in good faith and without express notice to the Company that the preservation of such document was relevant to a claim; 

        ​

        (ii)

        nothing contained in this Article shall be construed as imposing upon the Company any liability in respect of the destruction of any such document earlier than as aforesaid or in any case where the conditions of proviso (i) are not fulfilled; and 

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        (iii)

        references in this Article to the destruction of any document include references to its disposal in any manner. 

        ​

        147.

        Untraced shareholders 

        ​

        (a)

        The Company shall be entitled to sell at the best price reasonably obtainable any share of a Holder or any share to which a person is entitled by transmission if and provided that: 

        ​

        (i)

        for a period of twelve (12) years no cheque or warrant sent by the Company through the post in a pre-paid letter addressed to the Holder or to the person entitled by transmission to the share at his address on the Register or the other last known address given by the Holder or the person entitled by transmission to which cheques and warrants are to be sent has been cashed and no communication has been received by the Company from the Holder or the person entitled by transmission (provided that during such twelve year period at least three dividends shall have become payable in respect of such share); 

        ​

        (ii)

        at the expiration of the said period of twelve (12) years by advertisement in a national daily newspaper published in Ireland and in a newspaper circulating in the area in which the address referred to in sub-paragraph (a)(i) of this Article is located the Company has given notice of its intention to sell such share; 

        ​

        (iii)

        during the further period of three (3) months after the date of the advertisement and prior to the exercise of the power of sale the Company has not received any communication from the Holder or person entitled by transmission; and 

        ​

        (iv)

        the Company has first given notice in writing to the relevant securities exchange on which the Company’s shares are listed of its intention to sell such shares. 

        ​

        (b)

        To give effect to any such sale the Company may appoint any person to execute as transferor an instrument of transfer of such share and such instrument of transfer shall be as effective as if it had been executed by the Holder or the person entitled by the transmission to such share. The transferee shall be entered in the Register as the Holder of the shares comprised in any such transfer and he shall not be bound to see to the application of the purchase monies nor shall his title to the shares be affected by any irregularity in or invalidity of the proceedings in reference to the sale. 

        ​

        (c)

        The Company shall account to the Holder or other person entitled to such share for the net proceeds of such sale by carrying all monies in respect thereof to a separate account which shall be a permanent debt of the Company and the Company shall be deemed to be a debtor and not a trustee in respect thereof for such Holder or other person. Monies carried to such separate account may be either employed in the business of the Company or invested in such investments as the Directors may think fit, from time to time. 

        ​

        (d)

        To the extent necessary in order to comply with any laws or regulations to which the Company is subject in relation to escheatment, abandonment of property or other similar or analogous laws or regulations (“Applicable Escheatment Laws”), the Company may deal with any share of any member and any unclaimed cash payments relating to such share in any manner which it sees fit, including (but not limited to) transferring or selling such share and transferring to third parties any unclaimed cash payments relating to such share. 

        ​

        (e)

        The Company may only exercise the powers granted to it in this Article 147 in circumstances where it has complied with, or procured compliance with, the required procedures (as set out in Applicable Escheatment Laws) with respect to attempting to identify and locate the relevant member of the Company. 

        ​

        (f)

        If during any six year period referred to in Article 147, further shares have been issued in right of those held at the beginning of such period or of any previously issued during such period and all the other requirements of this Article (other than the requirement that they be in issue for six years) have been satisfied in regard to the further shares, the Company may also sell the further shares. 

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        148.

        Indemnity 

        ​

        (a)

        Subject to Articles 148 (g) and (h), the Company will indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding (other than an action, suit or proceeding by or in the right of the Company) by reason of the fact that he or she is or was an Indemnified Person (including, without limitation, any proceedings, civil or criminal, which relate to anything done or omitted or alleged to have been done or omitted by him as an officer or employee of the Company), against expenses (including legal fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such Indemnified Person in connection with such action, suit or proceeding if such Indemnified Person acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the Company or reasonably believed to be in or not opposed to the best interests of the relevant employee benefit plan of the Company or any Group Company and, with respect to any criminal proceeding, had no reasonable cause to believe his or her conduct was unlawful. The termination of any action, suit or proceeding by judgment, order, settlement, conviction or upon a plea of nolo contendere or its equivalent, will not, of itself, create a presumption that the Indemnified Person (i) did not act in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interests of the Company or reasonably believed to be in or not opposed to the best interests of such employee benefit plan and (ii) with respect to any criminal proceeding, had reasonable cause to believe his or her conduct was unlawful. 

        ​

        (b)

        Subject to Articles 148 (g) and (h), the Company will indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the Company to procure a judgment in its favour by reason of the fact that he or she is or was an Indemnified Person, against expenses (including legal fees) actually and reasonably incurred by such Indemnified Person in connection with such action, suit or proceeding if such Indemnified Person acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the Company or reasonably believed to be in or not opposed to the best interests of the relevant employee benefit plan of the Company or any Group Company and except that no such indemnification will be made in respect of any claim, issue or matter as to which such Indemnified Person will have been adjudged to be liable for wilful neglect or wilful default in the performance of his or her duty to the Company or to such employee benefit plan unless and only to the extent that the Irish High Court or the court in which such action, suit or proceeding was brought will determine upon application that, despite the adjudication of liability, but in view of all the circumstances of the case, such Indemnified Person is fairly and reasonably entitled to indemnity for such expenses which such court will deem proper. 

        ​

        (c)

        Subject to Articles 148 (g) and (h), to the extent that an Indemnified Person has been successful on the merits or otherwise in defence, of any action, suit or proceeding referred to in Articles 148 (a) and (b) above, or in defence of any claim, issue or matter therein, he or she will be indemnified against expenses (including legal fees) actually and reasonably incurred by him or her in connection therewith. 

        ​

        (d)

        Any indemnification under Articles 148 (a) and (b) above (unless ordered by a court) will be made by the Company only as authorised in the specific case upon a determination that indemnification of the Indemnified Person is proper in the circumstances because he or she has met the applicable standard of conduct set forth in Articles 148 (a) and (b). Such determination will be made (i) by the Board by a majority vote of a quorum consisting of Directors who were not parties to such action, suit or proceeding or (ii) if such a quorum is not obtainable (or, even if obtainable, if a quorum of disinterested Directors so directs), by independent legal counsel in a written opinion or (iii) by the Shareholders entitled to vote at general meetings of the Company. 

        ​

        (e)

        The Board will have power to purchase and maintain insurances for the benefit of any persons who are or were at any time Indemnified Persons or employees or agents of the Company or any Group Company or of any other corporation or employee benefit plan in which the Company or 

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        any Group Company has any direct or indirect interest, including insurance against any liability incurred by such persons in respect of any act or omission in the actual or purported performance of their duties or powers or offices in relation to the Company or such other corporation. 

        (f)

        Subject to Articles 148 (g) and (h), expenses incurred by an Indemnified Person in defending a civil or criminal action, suit or proceeding may be paid by the Company in advance of the final disposition of such action, suit or proceeding as authorised by the Board in the manner provided in Article 148 (d), upon receipt of an undertaking by or on behalf of the Indemnified Person to repay such amount unless it will ultimately be determined that he or she is entitled to be indemnified by the Company as authorised in this Article. 

        ​

        (g)

        The provisions for indemnity contained in these Articles will have effect to the fullest extent permitted by law but will not extend to any matter which would render them void pursuant to the Act. In the event of any amendments or judicial interpretations of the Act which may permit a wider indemnification, this Article will be interpreted accordingly. 

        ​

        (h)

        The rights to indemnification and reimbursement of expenses provided by these Articles are in addition to (i) any other rights to which a person may be entitled, including any other rights under these Articles, under any other applicable bye-laws or Articles of any other corporation, under any agreement, under any insurance purchased by the Company or any Group Company, pursuant to any vote of shareholders or disinterested Directors or pursuant to the direction (however embodied) of any court of competent jurisdiction, both as to action in his or her official capacity while holding such office and as to action in another capacity while holding such office and (ii) the power of the Company to indemnify or otherwise make payments (without prior commitment upon the authorisation of the Board) of the type contemplated by this Article in respect of any person who is or was an employee, office holder or director of the Company or of another corporation, any joint venture, trust or other enterprise which he is serving or has served at the request of the Company. The indemnification provided by this Article will continue as to a person who has ceased to be an Indemnified Person and will inure to the benefit of his heirs, executors and administrators. 

        ​

        (i)

        In this Article, the term “Indemnified Person” means any officer of the Company (including any Director or Secretary) or any other person appointed pursuant to Article 104, any member of a committee constituted under Article 111, any person acting as an office holder of the Company, any person holding any other executive or official position of the Company, any employee or agent of the Company, and any person serving at the request of the Company as a director, officer, employee, partner or trustee of another corporation, partnership, joint venture, trust or other enterprise or in a fiduciary or other capacity with respect to any employee benefit plan maintained by the Company or any Group Company. As used in this Article, references to the “Company” include all constituent companies in a consolidation or merger or other business combination transaction in which the Company or a predecessor to the Company by consolidation or merger or other business combination transaction was involved. 

        ​

        (j)

        To the fullest extent permitted under Irish law, no Director, officer of the Company or other person appointed pursuant to Article 104 (each a “Covered Person”) will be liable or answerable for the acts, receipts, neglects, or defaults of any other Covered Person or for joining in any receipt or other act for conformity or for any loss or expense happening to the Company through the insufficiency or deficiency of any security in or upon which any of the monies of the Company will be invested or for any loss or damage arising from the bankruptcy, insolvency or tortuous act of any person with whom any monies, securities or effects will be deposited or for any loss occasioned by any error of judgment or oversight on his or her part or for any other loss, damage, or misfortune whatever which will happen in or about the execution of the duties of his or her office or other position with the Company or in relation thereto, unless the same happen through his or her own wilful neglect or wilful default. 

        ​

        149.

        Alteration of Articles 

        ​

        The Company may by Special Resolution amend or alter these Articles. 

      

      
        60Exhibit 10.1

 

 

 

 

 

 

 

 

 

MASTER REPURCHASE AGREEMENT

 

Among

 

 

BARCLAYS BANK PLC, as Purchaser and Agent

 

PENNYMAC LOAN SERVICES, LLC, as Seller
and Servicer 

and

PRIVATE NATIONAL MORTGAGE ACCEPTANCE COMPANY, LLC, as Guarantor

 

Dated as of December 4, 2015

 

 

 

 

 

 

 

 

 

 

 

    	 	 	 

     

    

 

TABLE OF CONTENTS

 

	1.    APPLICABILITY	1
	2.    DEFINITIONS AND INTERPRETATION	1
	3.    THE TRANSACTIONS	22
	4.    CONFIRMATION	25
	5.    TAKEOUT COMMITMENTS	25
	6.    PAYMENT AND TRANSFER	26
	7.    MARGIN MAINTENANCE	26
	8.    TAXES; TAX TREATMENT	27
	9.    SECURITY INTEREST; PURCHASER’S APPOINTMENT AS ATTORNEY-IN-FACT	29
	10.   CONDITIONS PRECEDENT	31
	11.   RELEASE OF PURCHASED ASSETS	35
	12.   RELIANCE	35
	13.   REPRESENTATIONS AND WARRANTIES	35
	14.   COVENANTS OF SELLER	39
	15.   REPURCHASE OF PURCHASED ASSETS	47
	16.   SERVICING OF THE MORTGAGE LOANS; SERVICER TERMINATION	48
	17.   EVENTS OF DEFAULT	51
	18.   REMEDIES	53
	19.   DELAY NOT WAIVER; REMEDIES ARE CUMULATIVE	56
	20.   USE OF EMPLOYEE PLAN ASSETS	56
	21.   INDEMNITY	57
	22.   WAIVER OF REDEMPTION AND DEFICIENCY RIGHTS	58
	23.   REIMBURSEMENT; SET-OFF	58
	24.   FURTHER ASSURANCES	59
	25.   ENTIRE AGREEMENT; PRODUCT OF NEGOTIATION	59
	26.   TERMINATION	60
	27.   REHYPOTHECATION; ASSIGNMENT	60
	28.   AMENDMENTS, ETC.	61
	29.   SEVERABILITY	61
	30.   BINDING EFFECT; GOVERNING LAW	61
	31.   WAIVER OF JURY TRIAL; CONSENT TO JURISDICTION AND VENUE; SERVICE OF PROCESS	61
	32.   SINGLE AGREEMENT	62
	33.   INTENT	62
	34.   NOTICES AND OTHER COMMUNICATIONS	63
	35.   CONFIDENTIALITY	65
	36.   DUE DILIGENCE	65
	37.   USA PATRIOT ACT; OFAC AND ANTI-TERRORISM	66
	38.   GUARANTY	67

 

    	 	2i	 

     

    

 

SCHEDULES AND EXHIBITS

 

	EXHIBIT A	CERTIFICATION

	EXHIBIT B	REPRESENTATIONS AND WARRANTIES WITH RESPECT TO MORTGAGE LOANS

	EXHIBIT C	FORM OF TRANSACTION NOTICE

	EXHIBIT D	FORM OF GOODBYE LETTER

	EXHIBIT E	FORM OF WAREHOUSE LENDER’S RELEASE

	EXHIBIT F	LIST OF APPROVED MEMBERS OF THE MORTGAGE BACKED SECURITIES DIVISION OF THE FIXED INCOME CLEARING CORPORATION

	EXHIBIT G	FORM OF CLOSING PROTECTION LETTER

	EXHIBIT H	FORM OF SELLER MORTGAGE LOAN SCHEDULE
	EXHIBIT I	SELLER’S UNDERWRITING GUIDELINES

 

    	 	3	 

     

    

 

MASTER REPURCHASE AGREEMENT

 

Dated as of December 4, 2015

 

AMONG:

 

BARCLAYS BANK PLC, in its capacity as purchaser
(together with its permitted successors and assigns in such capacity hereunder, “Barclays” or the “Purchaser”)
and agent pursuant hereto (together with its permitted successors and assigns in such capacity hereunder, “Agent”);

 

PENNYMAC LOAN SERVICES, LLC, in its capacity
as seller (together with its permitted successors and assigns in such capacity hereunder, “Seller”) and in its
capacity as servicer (together with its permitted successors and assigns in such capacity hereunder, “Servicer”);
and

 

PRIVATE NATIONAL MORTGAGE ACCEPTANCE COMPANY,
LLC, in its capacity as guarantor (together with its permitted successors and assigns in such capacity hereunder, “Guarantor”).

 

		1.	APPLICABILITY

 

Purchaser may from
time to time, upon the terms and conditions set forth herein, agree to enter into transactions on a committed basis with respect
to the Committed Amount and an uncommitted basis with respect to the Uncommitted Amount, in which Seller sells to Purchaser Eligible
Mortgage Loans, on a servicing-released basis, against the transfer of funds by Purchaser, with a simultaneous agreement by Purchaser
to transfer to Seller such Purchased Assets on a date certain not later than one year following such transfer, against the transfer
of funds by Seller; provided, that the Aggregate MRA Purchase Price shall not exceed, as of any date of determination, the
lesser of (a) the Maximum Aggregate Purchase Price (less the sum of the MSR Facility Borrowed Amount and the Aggregate EPF Purchase
Price) and (b) the Asset Base. Each such transaction shall be referred to herein as a “Transaction,” and shall
be governed by this Agreement. This Agreement sets forth the procedures to be used in connection with periodic requests for Purchaser
to enter into Transactions with Seller. Seller hereby acknowledges that Purchaser is under no obligation to enter into any Transaction
pursuant to this Agreement with respect to the Uncommitted Amount. Seller acknowledges that during the term of this Agreement,
Agent may undertake to join either one or both of Sheffield Receivables Corporation and Barclays Bank Delaware as additional purchasers
under this Agreement, and Seller hereby consents to the joinder of such additional purchasers.

 

		2.	DEFINITIONS AND INTERPRETATION

 

(a)Defined Terms.

 

“30+ Day Delinquent
Mortgage Loan” means any Mortgage Loan (other than a Modified Loan) at any time the Monthly Payment for which was not
received within twenty-nine (29) days after its Due Date.

 

“Accepted
Servicing Practices” means with respect to any Mortgage Loan, those accepted, customary and prudent mortgage servicing
practices (including collection procedures) of prudent mortgage banking institutions that service mortgage loans of the same type
as the Mortgage Loans in the jurisdiction where the related Mortgaged Property is located, and which are in accordance with the
requirements of each Agency Program, applicable law, FHA regulations and VA regulations, if applicable, and the requirements of
any private mortgage insurer so that the FHA insurance, VA guarantee or any other applicable insurance or guarantee in respect
of any Mortgage Loan is not voided or reduced.

 

    	 	1	 

     

    

 

“Accrual Period”
means, with respect to each Monthly Payment Date for any Transaction, the period from and including the immediately prior Monthly
Payment Date to but excluding such Monthly Payment Date; provided that with respect to the first Monthly Payment Date of a Transaction
following the related Purchase Date, the Accrual Period shall commence on the related Purchase Date.

 

“Act of Insolvency”
means, with respect to any Person:

 

(i)the
filing of a voluntary petition (or the consent by such Person to the filing of any such petition against it), commencing, or authorizing
the commencement of any case or proceeding under any bankruptcy, insolvency, reorganization, liquidation, dissolution or similar
law relating to the protection of creditors, or suffering any such petition or proceeding to be commenced by another; or such Person
shall consent to or seek the appointment of or the taking of possession by a custodian, receiver, conservator, trustee, liquidator,
sequestrator or similar official of such Person, or for any substantial part of its Property, or any general assignment for the
benefit of creditors;

 

(ii)a
proceeding shall have been instituted against such Person under any bankruptcy, reorganization, arrangement, insolvency, readjustment
of debt, dissolution, moratorium, delinquency or liquidation law of any jurisdiction, whether now or subsequently in effect, or
a custodian, receiver, conservator, liquidator, trustee, sequestrator or similar official for such Person or such Person’s
Property (as a debtor or creditor protection procedure) is appointed by any Governmental Authority having the jurisdiction to do
so or takes possession of such Property and any such proceeding is not dismissed within thirty (30) days of filing;

 

(iii)that
such Person or any Affiliate shall become insolvent;

 

(iv)that
such Person shall (a) admit in writing its inability to pay or discharge its debts or obligations generally as they become due
or mature, (b) admit in writing its inability to, or intention not to, perform any of its material obligations, or (c) generally
fail to pay any of its debts or obligations as they become due or mature;

 

(v)any
Governmental Authority shall have seized or appropriated, or assumed custody or control of, all or any substantial part of the
Property of such Person, or shall have taken any action to displace the management of such Person;

 

(vi)the
audited annual financial statements of such Person or the notes thereto or other opinions or conclusions stated therein shall be
qualified or limited by reference to the status of such Person as a “going concern” or a reference of similar import
or shall indicate that such Person has a negative net worth or is insolvent; or

 

    	 	2	 

     

    

 

(vii)if
such Person or any Affiliate is a corporation, such Person or any Affiliate or any of their Subsidiaries, shall take any corporate
action in furtherance of, or the action of which would result in any of the foregoing actions.

 

“Additional
Eligible Loan Criteria” has the meaning assigned thereto in the Pricing Side Letter.

 

“Additional
Purchased Mortgage Loans” has the meaning assigned thereto in Section 7(b) hereof.

 

“Adjustable
Rate Mortgage Loan” means a Mortgage Loan which provides for the adjustment of the Mortgage Interest Rate payable in
respect thereto.

 

“Adjusted
Tangible Net Worth” means, for any Person as of any date of determination thereof, an amount equal to (a) the Tangible
Net Worth of such Person as of such date, minus (b) amounts owing to such Person from its Affiliates, officers, directors
and stockholders as of such date, all determined in accordance with GAAP.

 

“Affiliate”
means, with respect to (i) any specified Person (other than the Seller, the Servicer or the Guarantor), any other Person controlling
or controlled by or under common control with such specified Person, (ii) the Seller, the Guarantor and its Subsidiaries, (iii)
the Servicer, the Guarantor and its Subsidiaries and (iv) the Guarantor, the Subsidiaries of the Guarantor. For the purposes of
this definition, “control” means the power to direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise and the terms “controlling,” “controlled
by” and “under common control with” have meanings correlative to the meaning of “control.”

 

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

 

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

 

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

 

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

 

“Aggregate
EPF Purchase Price” means as of any date of determination, an amount equal to the aggregate Purchase Price (as defined
in the Mortgage Loan Participation Purchase and Sale Agreement) for all Participation Certificates (as defined in the Mortgage
Loan Participation Purchase and Sale Agreement) then owned by Purchaser under the Mortgage Loan Participation Purchase and Sale
Agreement.

 

“Aggregate
MRA Purchase Price” means as of any date of determination, an amount equal to the aggregate Purchase Price for all Mortgage
Loans then subject to Transactions under this Agreement.

 

    	 	3	 

     

    

 

“Agreement”
means this Master Repurchase Agreement (including all exhibits, schedules and other addenda thereto), as it may be amended, further
supplemented or otherwise modified from time to time.

 

“ALTA”
means the American Land Title Association.

 

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

 

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

 

“Appraised
Value” shall mean the value set forth in an appraisal made in connection with the origination of the related Mortgage
Loan as the value of the Mortgaged Property.

 

“Approvals”
means with respect to Seller or Servicer, any approvals obtained from the Applicable Agency or HUD in designation of Seller as
a Ginnie Mae-approved issuer, an FHA-approved mortgagee, a VA-approved lender, a Fannie Mae-approved Seller/Servicer or a Freddie
Mac-approved Seller/Servicer, as applicable, in good standing.

 

“Asset Base”
means, on any date of determination and with respect to all Purchased Assets then subject to Transactions and, to the extent applicable,
all Eligible Mortgage Loans proposed to be sold to the Purchaser as of such date of determination, the lesser of (i) 100% of the
Principal Balance of all such Purchased Assets and such Eligible Mortgage Loans as of such date of determination and (ii) the product
of the applicable Purchase Price Percentage multiplied by the Market Value of all such Purchased Assets and such Eligible Mortgage
Loans.

 

“Assignment
and Acceptance” has the meaning assigned thereto in Section 27(b) hereof.

 

“Assignment
of Mortgage” means, with respect to any Mortgage, an assignment of the Mortgage, notice of transfer or equivalent instrument
in recordable form, sufficient under the laws of the jurisdiction wherein the related Mortgaged Property is located to reflect
the assignment of the Mortgage in blank or to MERS, as applicable.

 

“Attorney
Bailee Letter” has the meaning assigned thereto in the Custodial and Disbursement Agreement.

 

“Bank”
means (i) City National Bank, N.A. and its successors and permitted assigns or (ii) such other bank as may be mutually acceptable
to the Seller and the Purchaser.

 

“Bankruptcy
Code” means 11 U.S.C. Section 101 et seq., as amended from time to time.

 

“Business
Day” means any day other than (i) a Saturday or Sunday, (ii) a day upon which the New York Stock Exchange or the Federal
Reserve Bank of New York is closed or (iii) with respect to any day on which the parties hereto have obligations to the Custodian
or on which the Custodian has obligations to any party hereto, a day upon which the Custodian’s offices are closed.

 

    	 	4	 

     

    

 

“Cash Equivalents”
means (i) securities with maturities of 90 days or less from the date of acquisition issued or fully guaranteed or insured
by the United States government or any agency thereof, (ii) certificates of deposit and eurodollar time deposits with weighted
average maturities of 90 days or less from the date of acquisition and overnight bank deposits of any commercial bank having capital
and surplus in excess of $500,000,000 and a rating of at least P-2 and A-2 by Moody’s or S&P, respectively, (iii) repurchase
obligations of any commercial bank satisfying the requirements of clause (ii) of this definition, having a term of not more
than seven days with respect to securities issued or fully guaranteed or insured by the United States Government, (iv) commercial
paper of a domestic issuer rated at least P-1 and A-1 by Moody’s or S&P, respectively, and in either case maturing within
90 days after the day of acquisition, (v) securities with weighted average maturities of 90 days or less from the date of acquisition
issued or fully guaranteed by any state, commonwealth or territory of the United States, by any political subdivision or taxing
authority of any such state, commonwealth or territory or by any foreign government, the securities of which state, commonwealth,
territory, political subdivision, taxing authority or foreign government (as the case may be) are rated at least A+ by S&P
or A1 by Moody’s, (vi) securities with maturities of 90 days or less from the date of acquisition backed by standby
letters of credit issued by any commercial bank satisfying the requirements of clause (ii) of this definition or, (vii) shares
of 2-a7 money market mutual funds rated AAA by Moody’s & S&P that have a weighted average maturity of 90 days or
less or similar funds which invest exclusively in assets satisfying the requirements of clauses (i) through (vi) of this
definition.

 

“Certification”
has the meaning assigned thereto in the Custodial and Disbursement Agreement.

 

“Change in
Control” means (a) any transaction or event as a result of which the Guarantor ceases to directly or indirectly own 100%
of the certificates representing the beneficial ownership of Seller, (b) the sale, transfer, or other disposition of all or substantially
all of Seller’s assets (excluding any such action taken in connection with any securitization transaction or routine sales
of Mortgage Loans), or (c) the consummation of a merger or consolidation of Seller with or into another entity or any other corporate
reorganization, if more than 50% of the combined voting power of the continuing or surviving entity’s equity outstanding
immediately after such merger, consolidation or such other reorganization is owned by persons who were not equityholders of the
Seller immediately prior to such merger, consolidation or other reorganization.

 

“Change in
Law” means (a) the adoption of any law, rule or regulation after the date of this Agreement, (b) any change in any law,
rule or regulation or in the interpretation or application thereof by any Governmental Authority after the date of this Agreement
or (c) any request, guideline or directive (whether or not having the force of law) of any Governmental Authority made or
issued after the date of this Agreement that requires compliance by Purchaser (or any Affiliate thereof).

 

“Closing Protection
Letter” means, with respect to any Wet-Ink Mortgage Loan that becomes subject to a Transaction, a letter in the form
of Exhibit G or such other letter in form and substance acceptable to Purchaser in its sole discretion.

 

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

 

“Collection
Account” means the following account established by the Seller in accordance with Section 16(e) hereof for the benefit
of Purchaser, Account Number: XXXXXXXXX.

 

    	 	5	 

     

    

 

“Collection
Account Control Agreement” means that certain Collection Account Control Agreement, dated as of December 4, 2015, by
and among Purchaser, the Seller and Bank, in form and substance acceptable to Purchaser to be entered into with respect to the
Collection Account, as the same may be amended, modified or supplemented from time to time.

 

“Committed
Amount” shall have the meaning assigned thereto in the Pricing Side Letter.

 

“Confirmation”
has the meaning assigned thereto in Section 4 hereof.

 

“Contract”
means an agreement between an Originator and any Obligor, pursuant to or under which such Obligor shall be obligated to pay for
merchandise, insurance or services from time to time.

 

“Correspondent
Loan” means a Mortgage Loan that is (i) originated by a Correspondent Seller and underwritten in accordance with Seller’s
underwriting guidelines and (ii) acquired by Seller from a Correspondent Seller in the ordinary course of business.

 

“Correspondent
Seller” means a mortgage loan originator that sells Mortgage Loans originated by it to Seller as a “correspondent”
or “private label” client.

 

“Custodial
and Disbursement Agreement” means that certain Custodial and Disbursement Agreement, dated as of December 4, 2015, among
Seller, Purchaser, Disbursement Agent and Custodian, entered into in connection with this Agreement and the Mortgage Loan Participation
Purchase and Sale Agreement, as the same may be amended, modified or supplemented from time to time.

 

“Custodian”
means Deutsche Bank National Trust Company and its successors and permitted assigns.

 

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

 

“Default Rate”
has the meaning assigned thereto in the Pricing Side Letter.

 

“Disbursement
Agent” means Deutsche Bank National Trust Company, and its successors and permitted assigns, or such other entity as
mutually agreed upon by Agent and Seller.

 

“Dollars”
or “$” means, unless otherwise expressly stated, lawful money of the United States of America.

 

“Due Date”
means the day of the month on which the Monthly Payment is due on a Mortgage Loan, exclusive of any days of grace.

 

“Due Diligence
Review Percentage” has the meaning assigned thereto in the Pricing Side Letter.

 

“Effective
Date” means December 4, 2015.

 

    	 	6	 

     

    

 

“Electronic
Tracking Agreement” means the electronic tracking agreement in form and substance acceptable to Purchaser and Seller,
dated on or about the date hereof, among Purchaser, Seller, MERSCORP Holdings, Inc. and MERS, entered into in connection with this
Agreement and the Mortgage Loan Participation Purchase and Sale Agreement, as the same may be amended, modified or supplemented
from time to time.

 

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

 

“Eligible
Mortgage Loan” means a Mortgage Loan that (i) satisfies each of the representations and warranties in Exhibit B
to the Agreement in all material respects, (ii) if such Mortgage Loan is (a) a Ginnie Mae Mortgage Loan, Fannie Mae Mortgage Loan
or Freddie Mac Mortgage Loan, it is in Strict Compliance with the eligibility requirements of the Ginnie Mae Program, Fannie Mae
Program, or Freddie Mac Program, respectively, or (b) a Jumbo Mortgage Loan, was underwritten and originated in accordance with
Seller’s underwriting guidelines attached hereto as Exhibit I, (iii) contains all required documents in the Mortgage
File without exceptions unless otherwise waived by the Purchaser or permitted below, (iv) satisfies such other customary criteria
for eligibility determined by the Purchaser and (v) satisfies the Additional Eligible Loan Criteria.

 

“EPF Custodial
Account Control Agreement” means that certain Custodial Account Control Agreement, dated as of December 4, 2015, among
Seller, Purchaser and Bank entered into in connection with the Mortgage Loan Participation Purchase and Sale Agreement, as the
same shall be amended, supplemented or otherwise modified from time to time.

 

“EPF Pricing
Side Letter” means that certain Pricing Side Letter, dated as of December 4, 2015, between Seller and Purchaser entered
into in connection with the Mortgage Loan Participation Purchase and Sale Agreement, as the same shall be amended, supplemented
or otherwise modified from time to time.

 

“EPF Program
Documents” means the Mortgage Loan Participation Purchase and Sale Agreement, the EPF Pricing Side Letter, the EPF Custodial
Account Control Agreement and all other agreements, documents and instruments entered into by Seller on the one hand, and Purchaser
or one of its Affiliates (or Custodian on its behalf) and/or Agent or one of its Affiliates on the other, in connection herewith
or therewith with respect to the transactions contemplated hereunder or thereunder and all amendments, restatements, modifications
or supplements thereto.

 

“ERISA”
means, with respect to any Person, the Employee Retirement Income Security Act of 1974, as amended from time to time and any successor
thereto, and the regulations promulgated and rulings issued thereunder.

 

“Escrow Payments”
means, with respect to a Mortgage Loan, the amounts constituting ground rents, taxes, assessments, water charges, sewer rents,
municipal charges, mortgage insurance premiums, fire and hazard insurance premiums, condominium charges and other payments as may
be required to be escrowed by the Mortgagor with the Mortgagee pursuant to the terms of the Mortgage or any other document.

 

    	 	7	 

     

    

 

“Event of
Default” has the meaning assigned thereto in Section 17 hereof.

 

“Fannie Mae”
means Fannie Mae or any successor thereto.

 

“Fannie Mae
Guide” means the Fannie Mae MBS Selling and Servicing Guide, as such Guide may hereafter from time to time be amended.

 

“Fannie Mae
Mortgage Loan” means a mortgage loan that is in Strict Compliance on the related Purchase Date with the eligibility requirements
specified for the applicable Fannie Mae Program described in the Fannie Mae Guide.

 

“Fannie Mae
Program” means the Fannie Mae Guaranteed Mortgage-Backed Securities Programs, as described in the Fannie Mae Guide.

 

“Fannie Mae
Security” means an ownership interest in a pool of Fannie Mae Mortgage Loans, evidenced by a book-entry account in a
depository institution having book-entry accounts at the Federal Reserve Bank of New York, issued and guaranteed, with respect
to timely payment of interest and ultimate payment of principal, by Fannie Mae and backed by a pool of Fannie Mae Mortgage Loans,
in substantially the principal amount and with substantially the other terms as specified with respect to such Fannie Mae Security
in the related Takeout Commitment, if any.

 

“FATCA”
means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively
comparable), any current or future regulations or official interpretations thereof and any agreements entered into pursuant to
Section 1471(b)(1) of the Code.

 

“FDIC”
means the Federal Deposit Insurance Corporation or any successor thereto.

 

“Fee Cap”
has the meaning assigned thereto in Section 23(a) hereof.

 

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

 

“FICO Score”
means the credit score of the Mortgagor provided by Fair, Isaac & Company, Inc. or such other organization providing credit
scores on or immediately prior to the Origination Date of a Mortgage Loan.

 

“Foreign Purchaser”
has the meaning assigned thereto in Section 8(d) hereof.

 

“Freddie Mac”
means Freddie Mac, and its successors in interest.

 

“Freddie Mac
Guide” means the Freddie Mac Sellers’ and Servicers’ Guide, as such Guide may hereafter from time to time
be amended.

 

    	 	8	 

     

    

 

“Freddie Mac
Mortgage Loan” means a mortgage loan that is in Strict Compliance on the related Purchase Date with the eligibility requirements
specified for the applicable Freddie Mac Program described in the Freddie Mac Guide.

 

“Freddie Mac
Program” means the Freddie Mac Home Mortgage Guarantor Program or the Freddie Mac FHA/VA Home Mortgage Guarantor Program,
as described in the Freddie Mac Guide.

 

“Freddie Mac
Security” means a modified pass-through mortgage-backed participation certificate, evidenced by a book-entry account
in a depository institution having book-entry accounts at the Federal Reserve Bank of New York, issued and guaranteed, with respect
to timely payment of interest and ultimate payment of principal, by Freddie Mac and backed by a pool of Freddie Mac Mortgage Loans,
in substantially the principal amount and with substantially the other terms as specified with respect to such Freddie Mac Security
in the related Takeout Commitment, if any.

 

“GAAP”
means generally accepted accounting principles as in effect from time to time in the United States of America.

 

“Ginnie Mae”
means the Government National Mortgage Association and its successors in interest, a wholly-owned corporate instrumentality of
the government of the United States of America.

 

“Ginnie Mae
Guide” means the Ginnie Mae Mortgage-Backed Securities Guide, as such Guide may hereafter from time to time be amended.

 

“Ginnie Mae
Mortgage Loan” means a mortgage loan that is in Strict Compliance on the related Purchase Date with the eligibility requirements
specified for the applicable Ginnie Mae Program in the applicable Ginnie Mae Guide.

 

“Ginnie Mae
Program” means the Ginnie Mae Mortgage-Backed Securities Programs, as described in the Ginnie Mae Guide.

 

“Ginnie Mae
Security” means a fully-modified pass-through mortgage-backed certificate guaranteed by Ginnie Mae, evidenced by a book-entry
account in a depository institution having book-entry accounts at the Federal Reserve Bank of New York and backed by a pool of
Ginnie Mae Mortgage Loans, in substantially the principal amount and with substantially the other terms as specified with respect
to such Ginnie Mae Security in the related Takeout Commitment.

 

“Governmental
Authority” means any nation or government, any state or other political subdivision, agency or instrumentality thereof,
or any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government
and any court or arbitrator having jurisdiction over Seller any of its Subsidiaries or any of their Property.

 

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

 

    	 	9	 

     

    

 

“Guarantor”
means Private National Mortgage Acceptance Company, LLC.

 

“HARP Mortgage
Loan” means any Mortgage Loan that has been modified under the U.S. Department of the Treasury’s Home Affordable
Refinance Program.

 

“Hedge Instrument”
means any interest rate cap agreement, interest rate floor agreement, interest rate swap agreement or other interest rate hedging
agreement entered into by Seller with a counterparty reasonably acceptable to Agent, in each case with respect to the Mortgage
Loans.

 

“High Cost
Mortgage Loan” means a Mortgage Loan that is (a) subject to, covered by or in violation of the provisions of the Homeownership
and Equity Protection Act of 1994, as amended, (b) a “high cost,” “covered,” “threshold,” “abusive,”
“predatory” or “high risk” mortgage loan under any federal, state or local law, or any similarly classified
loan using different terminology under any law imposing heightened regulation, scrutiny or additional legal liability for residential
mortgage loans having high interest rates, points and/or fees, or any other state or other regulation providing assignee liability
to holders of such mortgage loans, (c) subject to or in violation of any such or comparable federal, state or local statutes or
regulations, or (d) a “High Cost Loan” or “Covered Loan,” as applicable, as such terms are defined in the
current version of the Standard & Poor’s LEVELS® Glossary Revised, Appendix E.

 

“HUD”
means the Department of Housing and Urban Development, or any federal agency or official thereof which may from time to time succeed
to the functions thereof with regard to FHA mortgage insurance. The term “HUD,” for purposes of this Agreement, is
also deemed to include subdivisions thereof such as the FHA and Government National Mortgage Association.

 

“Income”
means, with respect to any Purchased Asset at any time, any principal and/or interest thereon and all dividends, sale proceeds
and all other proceeds as defined in Section 9-102(a)(64) of the Uniform Commercial Code and all other collections and distributions
thereon (including, without limitation, any proceeds received in respect of mortgage insurance).

 

“Indebtedness”
means, with respect to any Person as of any date of determination: the sum of (a) obligations created, issued or incurred by such
Person for borrowed money (whether by loan, the issuance and sale of debt securities or the sale of Property to another Person
subject to an understanding or agreement, contingent or otherwise, to repurchase such Property from such Person); (b) obligations
to pay the deferred purchase or acquisition price of Property or services, other than trade accounts payable (other than for borrowed
money) arising, and accrued expenses incurred, in the ordinary course of business so long as such trade accounts payable are payable
and paid within ninety (90) days of the date the respective goods are delivered or the respective services are rendered; (c) indebtedness
of others secured by a Lien on the Property of such Person, whether or not the respective indebtedness so secured has been assumed
by such Person; (d) obligations (contingent or otherwise) in respect of letters of credit or similar instruments issued for account
of such Person; (e) capital lease obligations; (f) payment obligations under repurchase agreements, single seller financing facilities,
warehouse facilities and other lines of credit; (g) indebtedness of others guaranteed on a recourse or partial recourse basis by
such Person; (h) all obligations incurred in connection with the acquisition or carrying of fixed assets; (i) indebtedness of general
partnerships of which such Person is a general partner; and (j) any other known or contingent liabilities of such Person, less
(k) the amount of any non-recourse debt, including any securitization debt, and any intercompany debt eliminated in consolidation
by the Guarantor.

 

    	 	10	 

     

    

 

“Indemnified
Party” has the meaning assigned thereto in Section 21(a) hereof.

 

“Intercreditor
Agreement” means that certain Second Amended and Restated Intercreditor Agreement dated as of August 13, 2014, as amended
on or about December 4, 2015, among Bank of America, N.A., Credit Suisse First Boston Mortgage Capital LLC, Citibank, N.A., Morgan
Stanley Bank, N.A., Morgan Stanley Mortgage Capital Holdings LLC and Seller and as to which Purchaser has joined as a “Warehouse
Provider” thereto.

 

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

 

“Jumbo Mortgage
Loan” means a first lien mortgage loan that conforms with all requirements of the Seller’s underwriting guidelines
attached hereto as Exhibit I, as the same may be amended, supplemented or otherwise modified from time to time as approved
by Agent in its discretion.

 

“LIBOR”
means for each day, the rate (adjusted for statutory reserve requirements for eurocurrency liabilities) for eurodollar deposits
for a period equal to one month appearing on Bloomberg Screen US 0001M Page or if such rate ceases to appear on Bloomberg Screen
US 0001M Page, or any other service providing comparable rate quotations at approximately 11:00 a.m., London time, on the applicable
date of determination, or such interpolated rate as determined by the Agent.

 

“Lien”
means any mortgage, deed of trust, lien, claim, pledge, charge, security interest or similar encumbrance.

 

“Loan Agreement”
mean that certain Loan and Security Agreement, dated as of December 4, 2015, by and among the Seller, as borrower thereunder, Purchaser,
as lender thereunder and Guarantor, as guarantor thereunder.

 

“Loan-to-Value
Ratio” means, as of any date of determination, the fraction, expressed as a percentage, the numerator of which is the
principal balance of the related Mortgage Loan at such date and the denominator of which is the lesser of (a) the Appraised Value
of the Mortgaged Property at the origination of such Mortgage Loan, and (b) if the Mortgaged Property was purchased within twelve
(12) months of the origination of the Mortgage Loan, the purchase price of the related Mortgaged Property.

 

“Margin Call”
has the meaning assigned thereto in Section 7(b) hereof.

 

“Margin Deficit”
has the meaning assigned thereto in Section 7(b) hereof.

 

“Market Value”
means, with respect to any Transaction and as of any date of determination, (i) the value ascribed to a Purchased Asset or a Mortgage
Loan by Agent in its sole discretion, using methodology and parameters customarily used by Agent to value similar assets, as may
be as marked to market daily, and (ii) zero, with respect to any Mortgage Loan that is not an Eligible Mortgage Loan.

 

    	 	11	 

     

    

 

“Master Netting
Agreement” means that certain Global Netting and Security Agreement, dated as of December 4, 2015, among Purchaser, Seller
and certain Affiliates and Subsidiaries of Purchaser and/or Seller, entered into in connection with this Agreement and the Mortgage
Loan Participation Purchase and Sale Agreement, as the same shall be amended, supplemented or otherwise modified from time to time.

 

“Material
Adverse Change” means, with respect to a Person, any material adverse change in the business, condition (financial or
otherwise), operations, performance, Property or prospects of such Person including the insolvency of such Person or its Parent
Company, if applicable.

 

“Material
Adverse Effect” means (a) a Material Adverse Change with respect to Seller, Guarantor, or any of their respective Affiliates;
(b) a material impairment of the ability of Seller, Guarantor, or any of their respective Affiliates that is a party to any Program
Document to perform under any Program Document to which it is a party; (c) a material adverse effect upon the legality, validity,
binding effect or enforceability of any Program Document against Seller, Guarantor, or any of their respective Affiliates that
is a party to any Program Document; or (d) a material adverse effect on the Market Value of the Purchased Assets.

 

“Maturity
Date” means December 2, 2016.

 

“Maximum Age
Since Origination” has the meaning assigned thereto in the Pricing Side Letter.

 

“Maximum Aggregate
Purchase Price” has the meaning assigned thereto in the Pricing Side Letter.

 

“MERS”
means Mortgage Electronic Registration Systems, Inc., a Delaware corporation, or any successor in interest thereto.

 

“MERS Designated
Mortgage Loan” means any Mortgage Loan as to which the related Mortgage or Assignment of Mortgage has been recorded in
the name of MERS, as agent for the holder from time to time of the Mortgage Note.

 

“MERS Identification
Number” has the meaning assigned thereto in the Custodial and Disbursement Agreement.

 

“Modified
Loan” means a Mortgage Loan that (a) is insured by FHA, (b) was purchased out of a Ginnie Mae Security solely as a result
of modifications to such Eligible Mortgage Loan, and (c) is a Ginnie Mae Mortgage Loan.

 

“Monthly Payment”
means the scheduled monthly payment of principal and interest on a Mortgage Loan as adjusted in accordance with changes in the
mortgage interest rate pursuant to the provisions of the Mortgage Note for an Adjustable Rate Mortgage Loan.

 

    	 	12	 

     

    

 

“Monthly Payment
Date” means the tenth (10th) Business Day of each calendar month beginning with January 2016.

 

“Mortgage”
means a mortgage, deed of trust, or other security instrument, securing a Mortgage Note.

 

“Mortgage
File” has the meaning assigned thereto in the Custodial and Disbursement Agreement.

 

“Mortgage
Interest Rate” means, with respect to each Mortgage Loan, the annual rate at which interest accrues on such Mortgage
Loan from time to time in accordance with the provisions of the related Mortgage Note.

 

“Mortgage
Loan” means a Ginnie Mae Mortgage Loan, a Fannie Mae Mortgage Loan, a Freddie Mac Mortgage Loan, a HARP Mortgage Loan,
a Jumbo Mortgage Loan, or a Modified Loan.

 

“Mortgage
Loan Participation Purchase and Sale Agreement” means that certain Mortgage Loan Participation Purchase and Sale Agreement,
dated as of December 4, 2015, between Purchaser and Seller, as the same may be amended, modified or supplemented from time to time.

 

“Mortgage
Note” means a promissory note or other evidence of indebtedness of the obligor thereunder, evidencing a Mortgage Loan,
and secured by the related Mortgage.

 

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

 

“Mortgagee”
means the record holder of a Mortgage Note secured by a Mortgage.

 

“Mortgagor”
means the obligor or obligors on a Mortgage Note, including any person who has assumed or guaranteed the obligations of the obligor
thereunder.

 

“MSR Facility
Borrowed Amount” means the outstanding amount borrowed under the Loan Agreement, as of any date of determination.

 

“Negative
Amortization” means the portion of interest accrued at the Mortgage Interest Rate in any month which, based on the Monthly
Payment on the related Mortgage Loan for such month, is not sufficient in order to fully amortize the Mortgage Loan by its maturity
date and which, pursuant to the terms of the Mortgage Note, is added to the principal balance of such Mortgage Loan.

 

“Non-Utilization
Fee” has the meaning assigned thereto in the Pricing Side Letter.

 

“Notice Date”
has the meaning assigned thereto in Section 3(c) hereof.

 

“Notice of
Intent to Issue a Trust Receipt” has the meaning assigned thereto in the Custodial and Disbursement Agreement.

 

    	 	13	 

     

    

 

“Obligations”
means (a) all amounts due and payable by Seller to Purchaser in connection with a Transaction hereunder, together with interest
thereon (including interest which would be payable as post-petition interest in connection with any bankruptcy or similar proceeding)
and other obligations and liabilities of Seller to Purchaser arising under, or in connection with, the Program Documents or directly
related to the Purchased Assets, whether now existing or hereafter arising; (b) any and all sums paid by Purchaser or on behalf
of Purchaser pursuant to the Program Documents in order to preserve any Purchased Asset or its interest therein; (c) in the event
of any proceeding for the collection or enforcement of any of Seller’s indebtedness, obligations or liabilities referred
to in clause (a), the reasonable expenses of retaking, holding, collecting, preparing for sale, selling or otherwise disposing
of or realizing on any Purchased Asset, or of any exercise by Purchaser of its rights under the Program Documents, including without
limitation, reasonable attorneys’ fees and disbursements and court costs; and (d) all of Seller’s indemnity obligations
to Purchaser pursuant to the Program Documents.

 

“Obligor”
means a Person obligated to make payments pursuant to a Contract; provided that in the event that any payments in respect of a
Contract are made by any other Person, such other Person shall also be deemed to be an Obligor.

 

“OFAC”
means the Office of Foreign Assets Control of the United States Department of Treasury.

 

“OFAC Lists”
has the meaning ascribed to it in Section 37(b).

 

“Origination
Date” means (i) with respect to Mortgage Loans (other than Correspondent Loans and Modified Loans), the date on which
a Mortgage Loan was originated by the related originator; (ii) with respect to Correspondent Loans, the date on which a Correspondent
Loan was acquired by Seller; and (iii) with respect to Modified Loans, the date on which such Mortgage Loan became a Modified Loan.

 

“Originator”
means Seller or any other third party originator as mutually agreed upon by Agent and Seller.

 

“Other Taxes”
has the meaning assigned thereto in Section 8(b) hereof.

 

“Parent Company”
means PennyMac Financial Services, Inc.

 

“Person”
means any legal person, including any individual, corporation, partnership, association, joint stock company, trust, limited liability
company, unincorporated organization, governmental entity or other entity of similar nature.

 

“Price Differential”
means, with respect to any Purchased Asset or Transaction as of any date of determination, an amount equal to the product of (A)
the Pricing Rate (or during the continuation of an Event of Default, by daily application of the Default Rate) and (B) the Purchase
Price for such Purchased Asset or Transaction. Price Differential will be calculated in accordance with Section 3(f) herein for
the actual number of days elapsed during such Accrual Period on a 360-day basis.

 

    	 	14	 

     

    

 

“Price Differential
Determination Date” means, with respect to any Monthly Payment Date, the second (2nd) Business Day preceding
such date.

 

“Pricing Rate”
means, as of any date of determination and with respect to an Accrual Period for any Purchased Asset or Transaction, an amount
equal to the sum of (i) LIBOR plus (ii) the Applicable Margin.

 

“Pricing Side
Letter” means that certain Pricing Side Letter, dated as of December 4, 2015, among Seller, Purchaser and Guarantor,
entered into in connection with this Agreement, as the same may be amended, modified or supplemented from time to time.

 

“Principal
Balance” means the unpaid principal balance of a Mortgage Loan.

 

“Program Documents”
means this Agreement, the Pricing Side Letter, the Custodial and Disbursement Agreement, the Collection Account Control Agreement,
any assignment of Hedge Instrument, the Electronic Tracking Agreement, the Master Netting Agreement, the EPF Program Documents,
the Intercreditor Agreement (with respect to Barclays) and all other agreements, documents and instruments entered into by Seller
on the one hand, and Purchaser or one of its Affiliates (or Custodian on its behalf) and/or Agent or one of its Affiliates on the
other, in connection herewith or therewith with respect to the transactions contemplated hereunder or thereunder and all amendments,
restatements, modifications or supplements thereto. For the avoidance of doubt, the Program Documents shall not include the Loan
Agreement or any other agreement, notice, certificate, financing statement, or any other document to be executed and delivered
by Seller and/or Guarantor in connection therewith.

 

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

 

“Purchase
Date” means, with respect to each Transaction, the date on which Purchased Assets are sold by Seller to the Purchaser
or its designee hereunder.

 

“Purchase
Price” means the price at which Purchased Assets subject to a Transaction are sold by Seller to Purchaser or its designee
on a Purchase Date (which includes a mutually negotiated premium allocable to the portion of the related Purchased Assets that
constitutes the related Servicing Rights), which shall (unless otherwise agreed to by the Seller and the Purchaser) be equal to
the lesser of (i) 100% of the Principal Balance of such Purchased Assets as of such date of determination and (ii) the product
of the applicable Purchase Price Percentage multiplied by the Market Value of such Purchased Assets as of such date of determination.

 

“Purchase
Price Percentage” has the meaning assigned thereto in the Pricing Side Letter.

 

    	 	15	 

     

    

 

“Purchased
Assets” means with respect to the Eligible Mortgage Loans sold by Seller to Purchaser in a Transaction, whether now existing
or hereafter acquired: (i) the Mortgage Loans, (ii) the Servicing Rights, (iii) Seller’s rights under any related Hedge Instruments
to the extent related to the Mortgage Loans, (iv) such other property, rights, titles or interest as are specified on the related
Transaction Notice, (v) all mortgage guarantees and insurance relating to the individual Mortgage Loans (issued by governmental
agencies or otherwise) or the related Mortgaged Property and any mortgage insurance certificate or other document evidencing such
mortgage guarantees or insurance and all claims and payments related to the Mortgage Loans, (vi) all guarantees or other support
for the Mortgage Loans, (vii) all rights to Income and the rights to enforce such payments arising from the Mortgage Loans and
any other contract rights, payments, rights to payment (including payments of interest or finance charges) with respect thereto,
(viii) all Takeout Commitments and Trade Assignments (including the rights to receive the related purchase price related therefor),
(ix) the Collection Account and all amounts on deposit therein, (x) all Additional Purchased Mortgage Loans, (xi) all “accounts,”
“deposit accounts,” “securities accounts,” “chattel paper,” “commercial tort claims,”
“deposit accounts,” “documents,” “general intangibles,” “instruments,” “investment
property,” and “securities accounts,” relating to the foregoing as each of those terms is defined in the Uniform
Commercial Code and all cash and Cash Equivalents and all products and proceeds relating to or constituting any or all of the foregoing,
(xii) any purchase agreements or other agreements or contracts relating to or constituting any or all of the foregoing, (xiii)
any other collateral pledged or otherwise relating to any or all of the foregoing, together with all files, material documents,
instruments, surveys (if available), certificates, correspondence, appraisals, computer records, computer storage media, accounting
records and other books and records relating to the foregoing, and (xiv) any and all replacements, substitutions, distributions
on, or proceeds with respect to, any of the foregoing. The term “Purchased Assets” with respect to any Transaction
at any time also shall include Additional Purchased Mortgage Loans delivered pursuant to Section 7(b) hereof.

 

“Purchaser”
has the meaning set forth in the preamble hereof.

 

“Purchaser’s
Wire Instructions” has the meaning set forth in the Pricing Side Letter.

 

“Records”
means all instruments, agreements and other books, records, and reports and data generated by other media for the storage of information
maintained by Seller or any other person or entity with respect to a Purchased Asset. Records shall include, without limitation,
the Mortgage Notes, any Mortgages, the Mortgage Files, the Servicing Files, and any other instruments necessary to document or
service an Asset that is a Purchased Asset, including, without limitation, the complete payment and modification history of each
Asset that is a Purchased Asset.

 

“REO Property”
means a residential real property including land and improvements, together with all buildings, fixtures and attachments thereto,
all insurance proceeds, liquidation proceeds, condemnation proceeds, and all other rights, benefits, proceeds and obligations arising
from or in connection therewith.

 

“Repurchase
Date” means, with respect to any Transaction, the earliest of (i) the Termination Date, (ii) the date set forth in the
related Transaction Notice as the scheduled Repurchase Date, (iii) the Business Day following Seller’s written notice to
the Purchaser requesting a repurchase of such Transaction or (iv) at the conclusion of the Maximum Age Since Origination for any
Eligible Mortgage Loan purchased hereunder, or if such day is not a Business Day, the immediately following Business Day.

 

“Repurchase
Price” means the price at which Purchased Assets are to be transferred from Purchaser or its designee to Seller upon
termination of a Transaction, which will be determined in each case as the sum of: (i) any portion of the Purchase Price not yet
repaid to Purchaser, (ii) the Price Differential accrued and unpaid thereon, and (iii) any accrued and unpaid fees or expenses
or indemnity amounts and any other outstanding amounts owing under the Program Documents from Seller to Purchaser.

 

    	 	16	 

     

    

 

“Request for
Release of Documents” means the Request for Release of Documents set forth as Annex 5 to the Custodial and Disbursement
Agreement, as applicable.

 

“Requirement
of Law” means as to any Person, the certificate of incorporation and by-laws or other organizational or governing documents
of such Person, and any law, treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority,
in each case applicable to or binding upon such Person or any of its Property or to which such Person or any of its Property is
subject.

 

“Restricted
Mortgage Loan” means (i) a “Growing Equity Loan,” “Manufactured Home Loan,” “Graduated
Payment Loan,” “Buydown Loan,” “Project Loan,” “Construction Loan” or “HECM Loan,”
each as defined in the applicable Agency Guide, (ii) a 30+ Day Delinquent Mortgage Loan, (iii) a Mortgage Loan for which the related
Escrow Payments have not been made by the next succeeding Due Date, (iv) a High Cost Mortgage Loan, (v) a Mortgage Loan that could
result in Negative Amortization or (vi) a Mortgage Loan that was not underwritten and originated with full documentation.

 

“SEC”
has the meaning ascribed thereto in Section 35 hereof.

 

“Section 404
Notice” means the notice required pursuant to Section 404 of the Helping Families Save Their Homes Act of 2009 (P.L.
111-22), which amends 15 U.S.C. Section 1641 et seq., to be delivered by a creditor that is an owner or an assignee of a
Mortgage Loan to the related Mortgagor within thirty (30) days after the date on which such Mortgage Loan is sold or assigned to
such creditor.

 

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

 

“Seller”
has the meaning set forth in the preamble hereof.

 

“Seller Mortgage
Loan Schedule” means the list of Purchased Assets proposed to be purchased by Purchaser, in the form of Exhibit H
hereto, that will be delivered in an excel spreadsheet format by Seller to Purchaser and the Custodian together with each Transaction
Notice and attached by the Custodian to the related Certification.

 

“Servicer”
means PennyMac Loan Services, LLC, or any servicer approved by Agent in its sole discretion, which may be Seller.

 

“Servicer
Termination Event” means:

 

(i) failure of Servicer
to service the Mortgage Loans in accordance with Accepted Servicing Practices;

 

    	 	17	 

     

    

 

(ii) failure of Servicer
to meet the qualifications to maintain all requisite Approvals, such Approvals are revoked or such Approvals are materially modified;

 

(iii) failure of Servicer
to remit when due Income payments required to be made under the terms of this Agreement or such Mortgage Loan;

 

(iv) Servicer or any
of its Affiliates fails to operate or conduct its business operations or any material portion thereof in the ordinary course, or
Servicer experiences any other material adverse change in its business condition (financial or otherwise), operations, performance,
Property or prospects which, in Agent’s sole discretion, constitutes a material impairment of Servicer’s ability to
perform its obligations under this Agreement or any other related document;

 

(v) a Change in Control
of Servicer shall have occurred that has not been approved by Agent;

 

(vi) any Act of Insolvency
of the Servicer or its Parent Company;

 

(vii) Servicer shall
be in default under, or fail to perform as requested under, or shall otherwise breach the material terms of any agreement relating
to, in each case beyond any applicable cure period, (A) any Indebtedness between Purchaser or any of Purchaser’s Affiliates
(such amount in excess of $1,000,000) and Servicer or any of its Affiliates, or (B) any other agreement relating to Indebtedness
between Servicer, on the one hand, and any Person, on the other hand (such amount in excess of $10,000,000); or Servicer shall
be in default under, or fail to perform as requested under, or shall otherwise breach, beyond any applicable cure period, the terms
of this Agreement or any other agreement between Purchaser or any of its Affiliates or Subsidiaries and Servicer;

 

(viii) any Governmental
Authority or any person, agency or entity acting or purporting to act under governmental authority (A) shall have taken any action
to condemn, seize or appropriate, or to assume custody or control of, all or any substantial part of the Property of 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, or (B) takes any action in the nature of enforcement to remove, limit or restrict the approval of Servicer as a seller/servicer
of Mortgage Loans or mortgage backed securities;

 

(ix) a material impairment
of the ability of Servicer or any of its Affiliates that are a party to any Program Document to perform under any Program Document
to which it is a party; or

 

(x) a material adverse
effect upon the legality, validity, binding effect or enforceability of any Program Document against Servicer or any of its Affiliates
that are a party to any Program Document.

 

“Servicing
File” means with respect to each Mortgage Loan, the file retained by Seller or its designee consisting of all documents
that a prudent originator and servicer would include (including copies of the Mortgage File), all documents necessary to document
and service the Mortgage Loans and any and all documents required to be delivered in connection with any transfer of servicing
pursuant to the Program Documents.

 

    	 	18	 

     

    

 

“Servicing
Records” means with respect to a Mortgage Loan, the related servicing records, including but not limited to any and all
servicing agreements, files, documents, records, data bases, computer tapes, copies of computer tapes, proof of insurance coverage,
insurance policies, appraisals, other closing documentation, payment history records, and any other records relating to or evidencing
the servicing of such Mortgage Loan.

 

“Servicing
Rights” means contractual, possessory or other rights of Seller or any other Person to administer or service a Mortgage
Loan or to possess the Servicing File.

 

“Servicing
Term” has the meaning assigned thereto in Section 16(b) hereof.

 

“Settlement
Agent” means, with respect to any Transaction the subject of which is a Wet-Ink Mortgage Loan, the entity approved by
Agent, in its sole good-faith discretion, which may be a title company, escrow company or attorney in accordance with local law
and practice in the jurisdiction where the related Wet-Ink Mortgage Loan is being originated.

 

“Settlement
Date” means the date specified in a Takeout Commitment upon which the related Security is scheduled to be delivered to
the specified Takeout Investor on a “delivery versus payment” basis.

 

“Strict Compliance”
means compliance of Seller and the Mortgage Loans with the requirements of the Agency Guide as amended by any agreements between
Seller and the Applicable Agency, sufficient to enable Seller to issue and to service and Ginnie Mae to guarantee or Fannie Mae
or Freddie Mac to issue and guarantee a Security; provided, that until copies of any such agreements between Seller and the Applicable
Agency have been provided to Agent by Seller and approved by Agent, such agreements shall be deemed, as between Seller and Purchaser,
not to amend the requirements of the Agency Guide.

 

“Structuring
Fee” has the meaning assigned thereto in the Pricing Side Letter.

 

“Subordinated
Debt” means, with respect to any Person Indebtedness of such Person to any other Person that is subordinated to the Obligations
pursuant to a currently effective and irrevocable subordination agreement approved by Agent in its sole discretion and the principal
of which is not due and payable until ninety (90) days or more after the Termination Date.

 

“Subsidiary”
means, with respect to any Person, any corporation, partnership or other entity of which at least a majority of the securities
or other ownership interests having by the terms thereof ordinary voting power to elect a majority of the board of directors or
other persons performing similar functions of such corporation, partnership or other entity (irrespective of whether or not at
the time securities or other ownership interests of any other class or classes of such corporation, partnership or other entity
shall have or might have voting power by reason of the happening of any contingency) is at the time directly or indirectly owned
or controlled by such Person or one or more Subsidiaries of such Person or by such Person and one or more Subsidiaries of such
Person.

 

“Takeout Commitment”
means a fully executed trade confirmation from the related Takeout Investor to Seller confirming the details of a forward trade
between the Takeout Investor and Seller with respect to one or more Purchased Assets, which trade confirmation shall be enforceable
and in full force and effect, and shall be validly and effectively assigned to Purchaser pursuant to a Trade Assignment, and relate
to pools of Mortgage Loans that satisfy the “good delivery standards” of the Securities Industry and Financial Markets
Association as set forth in the Securities Industry and Financial Markets Association Uniform Practices Manual, as amended from
time to time.

 

    	 	19	 

     

    

 

“Takeout Investor”
means (x) for non-Jumbo Mortgage Loans or mortgage-backed securities backed by such non-Jumbo Mortgage Loans, either (i) Barclays
Capital, Inc., or any successor thereto, (ii) any member of the Mortgage Backed Securities Division of the Fixed Income Clearing
Corporation listed in Exhibit F, (iii) any Agency, or (iv) any other Person approved by Agent in its sole discretion and (y) for
Jumbo Mortgage Loans, Barclays Bank PLC.

 

“Tangible
Net Worth” means for any Person as of any date of determination, an amount equal to (i) such Person’s shareholder
equity calculated in accordance with GAAP, plus (ii) any Subordinated Debt issued by such Person with maturities greater than twelve
(12) months, minus (iii) the intangible assets (other than Servicing Rights) of such Person.

 

“Taxes”
has the meaning assigned thereto in Section 8(a) hereof.

 

“Termination
Date” means the earliest to occur of (i) the Maturity Date, (ii) the termination of the Mortgage Loan Participation Purchase
and Sale Agreement, (iii) the termination of the Loan Agreement and (iv) at the option of Purchaser, the occurrence of an Event
of Default under this Agreement after the expiration of any applicable grace period.

 

“Trade Assignment”
means an assignment to Purchaser of a forward trade between the Takeout Investor and Seller with respect to one or more Purchased
Assets, together with the related trade confirmation from the Takeout Investor to Seller that has been fully executed, is enforceable
and is in full force and effect and confirms the details of such forward trade.

 

“Transaction”
has the meaning assigned thereto in Section 1 hereof.

 

“Transaction
Fee” has the meaning assigned thereto in the Pricing Side Letter.

 

“Transaction
Notice” means a written request of Seller to enter into a Transaction in a form attached as Exhibit C hereto or
such other form as shall be mutually agreed upon between Seller and Purchaser, which is delivered to the Purchaser in accordance
with Section 3(c) herein.

 

“Uncommitted
Amount” shall have the meaning assigned thereto in the Pricing Side Letter.

 

“Uniform Commercial
Code” means the Uniform Commercial Code as in effect from time to time in the State of New York; provided that if by
reason of mandatory provisions of law, the perfection or the effect of perfection or non-perfection of the security interest in
any Purchased Assets or the continuation, renewal or enforcement thereof is governed by the Uniform Commercial Code as in effect
in a jurisdiction other than New York, “Uniform Commercial Code” shall mean the Uniform Commercial Code as in effect
in such other jurisdiction for purposes of the provisions hereof relating to such perfection or effect of perfection or non-perfection.

 

    	 	20	 

     

    

 

“VA”
means the United States Department of Veterans Affairs.

 

“Verification
Agent” means an entity appointed by the Agent to perform specific services with respect to the Eligible Mortgage Loans,
or its successors and assigns.

 

“Verification
Agent Letter” means the agreement pursuant to which the Verification Agent performs services with respect to the Eligible
Mortgage Loans.

 

“Warehouse
Lender” means any lender providing financing to Seller or a Correspondent Seller for the purpose of warehousing, originating
or purchasing a Mortgage Loan, which lender has a security interest in such Mortgage Loan to be purchased by Purchaser.

 

“Warehouse
Lender’s Release” means a letter, in the form of Exhibit E, or as otherwise acceptable to Purchaser, from
a Warehouse Lender to Purchaser, unconditionally releasing all of Warehouse Lender’s right, title and interest in certain
Mortgage Loans identified therein upon payment to the Warehouse Lender.

 

“Wet-Ink Mortgage
Loan” means a Mortgage Loan (other than a Jumbo Mortgage Loan or Modified Loan) that Seller is selling to Purchaser simultaneously
with the origination thereof that is funded in part, either directly or indirectly, with the Purchase Price paid by Purchaser hereunder
and for which the Custodian shall not have received a complete Mortgage File.

 

“Wet-Ink Mortgage
Loan Document Receipt Date” means for any Wet-Ink Mortgage Loan, the date that the Custodian executes an original trust
receipt without exceptions.

 

(b)Interpretation.

 

Headings are for convenience
only and do not affect interpretation. The following rules of this subsection (b) apply unless the context requires otherwise.
The singular includes the plural and conversely. A gender includes all genders. Where a word or phrase is defined, its other grammatical
forms have a corresponding meaning. A reference to a subsection, Section, Annex or Exhibit is, unless otherwise specified, a reference
to a section of, or annex or exhibit to, this Agreement. A reference to a party to this Agreement or another agreement or document
includes the party’s successors and permitted substitutes or assigns. A reference to an agreement or document is to the agreement
or document as amended, modified, novated, supplemented or replaced, except to the extent prohibited by any Program Document. A
reference to legislation or to a provision of legislation includes any modification or re-enactment of it, a legislative provision
substituted for it and a regulation or statutory instrument issued under it. A reference to writing includes a facsimile transmission
and any means of reproducing words in a tangible and permanently visible form. A reference to conduct includes, without limitation,
an omission, statement or undertaking, whether or not in writing. An Event of Default exists until it has been waived in writing
by Purchaser or has been timely cured. The words “hereof,” “herein,” “hereunder” and similar
words refer to this Agreement as a whole and not to any particular provision of this Agreement. The term “including”
is not limiting and means “including without limitation.” In the computation of periods of time from a specified date
to a later specified date, the word “from” means “from and including,” the words “to” and “until”
each mean “to but excluding,” and the word “through” means “to and including.” This Agreement
may use several different limitations, tests or measurements to regulate the same or similar matters. All such limitations, tests
and measurements are cumulative and shall each be performed in accordance with their terms. Unless the context otherwise clearly
requires, all accounting terms not expressly defined herein shall be construed, and all financial computations required under this
Agreement shall be made, in accordance with GAAP, consistently applied. References herein to “fiscal year” and “fiscal
quarter” refer to such fiscal periods of Seller.

 

    	 	21	 

     

    

 

Except where otherwise
provided in this Agreement, any determination, consent, approval, statement or certificate made or confirmed in writing with notice
to Seller by Purchaser or an authorized officer of Purchaser as required by this Agreement is conclusive in the absence of manifest
error. A reference to an agreement includes a security interest, guarantee, agreement or legally enforceable arrangement whether
or not in writing related to such agreement.

 

A reference to a document
includes an agreement in writing or a certificate, notice, instrument or document, or any information recorded in electronic form.
Where Seller is required to provide any document to Purchaser under the terms of this Agreement, the relevant document shall be
provided in writing or printed form unless Purchaser requests otherwise.

 

This Agreement is the
result of negotiations among, and has been reviewed by counsel to, Purchaser and Seller, and is the product of all parties. In
the interpretation of this Agreement, no rule of construction shall apply to disadvantage one party on the ground that such party
proposed or was involved in the preparation of any particular provision of this Agreement or this Agreement itself. Except where
otherwise expressly stated, Purchaser may give or withhold, or give conditionally, approvals and consents and may form opinions
and make determinations in its absolute sole discretion. Except as specifically required herein, any requirement of good faith,
discretion or judgment by Purchaser or Agent shall not be construed to require Purchaser to request or await receipt of information
or documentation not immediately available from or with respect to Seller, any other Person or the Purchased Assets themselves.

 

		3.	THE TRANSACTIONS

 

(a)It is acknowledged
and agreed that, notwithstanding any other provision of this Agreement to the contrary, the facility provided under this Agreement
is (i) a committed facility with respect to the Committed Amount and (ii) an uncommitted facility with respect to the Uncommitted
Amount, and Purchaser shall have no obligation to enter into any Transactions hereunder with respect to the Uncommitted Amount.
All purchases of Mortgage Loans hereunder shall be first deemed committed up to the Committed Amount and then the remainder, if
any, shall be deemed uncommitted up to the Uncommitted Amount.

 

(b)Subject to the
terms and conditions of the Program Documents, Purchaser shall enter into Transactions; provided that the Aggregate MRA
Purchase Price shall not exceed, as of any date of determination, the lesser of (a) the Maximum Aggregate Purchase Price (less
the sum of the MSR Facility Borrowed Amount and the Aggregate EPF Purchase Price) and (b) the Asset Base.

 

(c)Unless otherwise
agreed, Seller shall request that Purchaser enter into a Transaction with respect to any Eligible Mortgage Loan by delivering to
the indicated required parties (each, a “Required Recipient”) the required delivery items (each, a “Required
Delivery Item”) set forth in the table below by the corresponding required delivery time (the “Required Delivery
Time”), and such Transaction shall occur no later than the corresponding required purchase time (the “Required Purchase
Time”):

 

    	 	22	 

     

    

 

	Purchased Asset Type	Required Delivery Items	Required Delivery Time	Required Recipient	Required Purchase Time
	Eligible Mortgage Loans (other than Wet-Ink Mortgage Loans, and Modified Loans) 	(i) a Transaction Notice and (ii) Seller Mortgage Loan Schedule 	No later than 2:00 p.m. (New York City time) on the requested Purchase Date 	Purchaser and Custodian	No later than 5:00 p.m. (New York City time) on the requested Purchase Date 
	The complete Mortgage Files to Custodian for each Mortgage Loan subject to such Transaction	No later than 9:00 a.m. (New York City time) on the Business Date prior to the requested Purchase Date 	Custodian
	Wet-Ink Mortgage Loans	(i) a Transaction Notice, (ii) Seller Mortgage Loan Schedule and (iii) a Closing Protection Letter	No later than 2:30 p.m. (New York City time) on the requested Purchase Date 	Purchaser and Custodian	No later than 4:30 p.m. (New York City time) on the requested Purchase Date 
	Modified Loans	(i) a Transaction Notice and (ii) Seller Mortgage Loan Schedule	No later than 10:00 a.m. (New York City time) on the Business Day prior to the requested Purchase Date 	Purchaser and Custodian	No later than 5:00 p.m. (New York City time) on the requested Purchase Date 

 

The date on which any
notice pursuant to this Section 3(c) is given is known as the “Notice Date”; provided that with respect
to any Eligible Mortgage Loan, if such notice is given after the Required Delivery Time, the Notice Date shall be deemed to be
the next succeeding Business Day and the proposed Purchase Date shall be no earlier than such Notice Date.

 

(d)With respect
to each Wet-Ink Mortgage Loan, within the time period specified in the Pricing Side Letter, Seller shall cause the related Settlement
Agent to deliver, or shall promptly deliver upon receipt from Settlement Agent, to the Custodian the remaining documents in the
Mortgage File.

 

    	 	23	 

     

    

 

(e)Upon Seller’s
request to enter into a Transaction pursuant to Section 3(c) and assuming all conditions precedent set forth in this Section 3
and in Sections 10(a) and (b) have been met, and provided no Default or Event of Default shall have occurred and be continuing,
on the requested Purchase Date, Purchaser shall, in the case of a Transaction with respect to the Committed Amount, and may, in
its sole discretion, in the case of a Transaction with respect to the Uncommitted Amount, purchase the Eligible Mortgage Loans
included in the related Transaction Notice by transferring the Purchase Price (net of any related Structuring Fee or any other
fees and expense then due and payable by Seller to the Purchaser pursuant to the Agreement) in accordance with the following wire
instructions or as otherwise provided:

 

Bank of America

100 West 33rd Street

New York, New York 10001

Attention: Jasmin Tabar

Phone: (888) 715-1000 x 57328

ABA 026009593

For Further Credit to: 12355-44258

Account Name: PennyMac Loan Services, LLC Operating Account

Notify Pamela Marsh/Kevin Chamberlain @ (805) 330-6059/
(818) 746-2877

Email: pamela.marsh@pnmac.com; kevin.chamberlain@pnmac.com

With copies to: treasury@pnmac.com and whseops@pnmac.com

 

Seller acknowledges and agrees that the
Purchase Price includes a mutually negotiated premium allocable to the portion of the Purchased Assets that constitutes the related
Servicing Rights.

 

(f)On the related
Price Differential Determination Date, Agent shall calculate the Price Differential for each outstanding Transaction payable on
the Monthly Payment Date utilizing the Pricing Rate. Not less than two (2) Business Days prior to each Monthly Payment Date, Agent
shall provide Seller with an invoice for the amount of the Price Differential due and payable with respect to all outstanding Transactions,
setting forth the calculations thereof in reasonable detail and all accrued fees and expenses then due and owing to the Purchaser.
On the earliest of (1) the Monthly Payment Date or (2) the Termination Date, Seller shall pay to the Purchaser the Price Differential
then due and payable for (x) all outstanding Transactions and (y) Purchased Assets for which the Purchaser has received the related
Repurchase Price (other than Price Differential) pursuant to Section 3(g) during the prior calendar month.

 

(g)With respect
to a Transaction, upon the earliest of (1) the Repurchase Date and (2) the Termination Date, Seller shall pay to the Purchaser
the related Repurchase Price (other than the related accrued Price Differential) together with any other Obligations then due and
payable, and shall repurchase all Purchased Assets then subject to such Transaction. The Repurchase Price shall be transferred
directly to the Purchaser.

 

(h)If Agent determines
in its sole discretion that any Change in Law or any change in accounting rules regarding capital requirements has the effect of
reducing the rate of return on Purchaser’s capital or on the capital of any Affiliate of Purchaser under this Agreement as
a consequence of such Change in Law or material change in accounting rules, then from time to time Seller will compensate the Purchaser
or the Purchaser’s Affiliate, as applicable, for such reduced rate of return suffered as a consequence of such Change in
Law or change in accounting rules on terms similar to those imposed by the Purchaser. Further, if due to the introduction of, any
change in, or the compliance by Purchaser with (i) any eurocurrency reserve requirement, or (ii) the interpretation of any law,
regulation or any guideline or request from any central bank or other Governmental Authority whether or not having the force of
law, there shall be an increase in the cost to Purchaser or any Affiliate of Purchaser in engaging in the present or any future
Transactions, then Seller shall, from time to time and upon demand by the Purchaser, compensate the Purchaser or the Purchaser’s
Affiliate for such increased costs, and such amounts shall be deemed a part of the Obligations hereunder. The Purchaser shall provide
Seller with notice as to any such Change in Law, change in accounting rules or change in compliance promptly following Purchaser’s
receipt of actual knowledge thereof.

 

    	 	24	 

     

    

 

(i)Reserved.

 

(j)If, on any Business
Day, Agent determines (which determination shall be conclusive absent manifest error) (a) that adequate and reasonable means do
not exist for ascertaining LIBOR; or (b) that LIBOR will not adequately and fairly reflect the cost to Purchaser of entering into
or maintaining outstanding Transactions; or (c) that it has become unlawful for any Purchaser to honor its obligation to enter
into or maintain outstanding Transactions hereunder using LIBOR, then Agent shall give notice thereof to Seller by telephone, facsimile,
or other electronic means as promptly as practicable thereafter and, until Agent notifies Seller that the circumstances giving
rise to such notice no longer exist, the Pricing Rate included in any Confirmation with respect to new Transactions and in any
calculation of the Price Differential with respect to outstanding Transactions will be determined, subject to the timely approval
of Seller after receipt of notice of such revised rate, at a rate per annum that Purchaser determines in its reasonable discretion
adequately reflects the cost to Purchaser of making or maintaining such Transactions.

 

		4.	CONFIRMATION

 

In the event that parties
hereto desire to enter into a Transaction on terms other than as set forth in this Agreement, the parties shall execute a confirmation
prior to entering into such Transaction, which confirmation shall be in a form that is mutually acceptable to the Purchaser and
Seller and shall specify such terms, including, without limitation, the Purchase Date, the Purchase Price, the Pricing Rate therefor
and the Repurchase Date (a “Confirmation”). Any such Confirmation and the related Transaction Notice, together
with this Agreement, shall constitute conclusive evidence of the terms agreed to between Purchaser and Seller with respect to the
Transaction to which the Confirmation relates. In the event of any conflict between this Agreement and a Confirmation, the terms
of the Confirmation shall control with respect to the related Transaction.

 

		5.	TAKEOUT COMMITMENTS

 

Seller hereby assigns
to Purchaser, free of any security interest, lien, claim or encumbrance of any kind, Seller’s rights under each Takeout Commitment
to deliver the Purchased Assets specified therein to the related Takeout Investor and to receive the purchase price therefor from
such Takeout Investor. Seller shall deliver to Purchaser a duly executed and enforceable Trade Assignment on the date such Trade
Assignment is executed by the related Takeout Investor. Subject to Purchaser’s rights hereunder, Purchaser agrees that it
will satisfy the obligation under the Takeout Commitment to deliver the related Purchased Assets to the Takeout Investor on the
Settlement Date specified therein. Seller understands that, as a result of this Section 5 and each Trade Assignment, Purchaser
will succeed to the rights and obligations of Seller with respect to each Takeout Commitment subject to a Trade Assignment, and
that in satisfying each such Takeout Commitment, Purchaser will stand in the shoes of Seller and, consequently, will be acting
as a non-dealer in exercising its rights and fulfilling its obligations assigned pursuant to this Section 5 and each Trade Assignment.
Each Trade Assignment delivered by Seller to Purchaser shall be delivered by Seller in a timely manner sufficient to enable Purchaser
to facilitate the settlement of the related trade on the trade date in accordance with “good delivery standards” of
the Securities Industry and Financial Markets Association as set forth in the Securities Industry and Financial Markets Association
Uniform Practices Manual, as amended from time to time.

 

    	 	25	 

     

    

 

		6.	PAYMENT AND TRANSFER

 

(a)Unless otherwise
agreed by Seller and Purchaser, all transfers of funds hereunder shall be in Dollars in immediately available funds. Seller shall
remit (or, if applicable, shall cause to be remitted) directly to the Purchaser all payments required to be made by it to the Purchaser
hereunder or under any other Program Document in accordance with wire instructions provided by the Purchaser. Any payments received
by Purchaser after 4:00 p.m. (New York City time) shall be applied on the next succeeding Business Day.

 

(b)The Settlement
Agent will aggregate and disburse funds directly in accordance with the Closing Protection Letter with respect to Wet-Ink Mortgage
Loans that are subject to a Transaction hereunder.

 

		7.	MARGIN MAINTENANCE

 

(a)Agent shall
determine the Market Value of the Purchased Assets on a daily basis as determined by Agent in its sole discretion.

 

(b)If, as of any
date of determination, the lesser of (a) 100% of the Principal Balance of the Eligible Mortgage Loans and (b) the aggregate Market
Value of all related Purchased Assets subject to all Transactions, multiplied by the applicable Purchase Price Percentage is less
than the Repurchase Price (excluding accrued Price Differential) for all such Transactions (a “Margin Deficit”),
then Agent may, by notice to the Seller (as such notice is more particularly set forth below, a “Margin Call”),
require Seller to transfer to the Purchaser or Purchaser’s designee cash or, at Purchaser’s option (and provided Seller
has additional Eligible Mortgage Loans), additional Eligible Mortgage Loans to Purchaser (“Additional Purchased Mortgage
Loans”) to cure the Margin Deficit. If the Agent delivers a Margin Call to the Seller on or prior to 11:00 a.m.
(New York City time) on any Business Day, then the Seller shall transfer cash or Additional Purchased Mortgage Loans to the Purchaser
or its designee no later than 5:00 p.m. (New York City time) on the same Business Day. In the event the Agent delivers a Margin
Call to Seller after 11:00 a.m. (New York City time) on any Business Day, Seller shall be required to transfer cash or Additional
Purchased Mortgage Loans no later than 12:00 noon (New York City time) on the next succeeding Business Day.

 

(c)Any cash transferred
to the Purchaser or its designee pursuant to Section 16(f)(ii) herein shall reduce the Repurchase Price of the related Transactions.

 

    	 	26	 

     

    

 

(d)The failure
of Purchaser, on any one or more occasions, to exercise its rights hereunder, shall not change or alter the terms and conditions
of this Agreement or limit the right of the Purchaser to do so at a later date. Seller and Purchaser each agree that a failure
or delay by Purchaser to exercise its rights hereunder shall not limit or waive Purchaser’s rights under this Agreement or
otherwise existing by law or in any way create additional rights for Seller.

 

(e)For the avoidance
of doubt, it is hereby understood and agreed that Seller shall be responsible for satisfying any Margin Deficit existing as a result
of any reduction of the Principal Balance of any Purchased Asset pursuant to any action by any bankruptcy court.

 

		8.	TAXES; TAX TREATMENT

 

(a)All payments
made by Seller and Guarantor under this Agreement shall be made free and clear of, and without deduction or withholding for or
on account of, any present or future taxes, levies, imposts, deductions, charges or withholdings, and all liabilities (including
penalties, interest and additions to tax) with respect thereto imposed by any Governmental Authority therewith or thereon, excluding
income taxes, branch profits taxes, franchise taxes or any other tax imposed on net income by the United States, a state or a foreign
jurisdiction under the laws of which the Purchaser is organized or of its applicable lending office, or a state or foreign jurisdiction
with respect to which Purchaser has a present or former connection (other than any connection arising from executing, delivering,
being party to, engaging in any transaction pursuant to, performing its obligations under or enforcing any Program Document), or
any political subdivision thereof or taxes imposed under FATCA (collectively, such non-excluded taxes are hereinafter called “Taxes”),
all of which shall be paid by Seller or Guarantor for its own account not later than the date when due. If Seller or Guarantor
is required by law or regulation to deduct or withhold any Taxes from or in respect of any amount payable hereunder, it shall:
(a) make such deduction or withholding, (b) pay the amount so deducted or withheld to the appropriate Governmental Authority not
later than the date when due, (c) deliver to the Purchaser, promptly, original tax receipts and other evidence satisfactory to
the Purchaser of the payment when due of the full amount of such Taxes; and (d) except as otherwise expressly provided in Section 8(d)
below, pay to the Purchaser such additional amounts (including all Taxes imposed by any Governmental Authority on such additional
amounts) as may be necessary so that Purchaser receives, free and clear of all Taxes, a net amount equal to the amount it would
have received under this Agreement, as if no such deduction or withholding had been made.

 

(b)In addition,
Seller and Guarantor agree to pay to the relevant Governmental Authority in accordance with applicable law any current or future
stamp or documentary taxes or any other excise or property taxes, charges or similar levies (including, without limitation, mortgage
recording taxes, transfer taxes and similar fees) imposed by any taxing authority that arise from any payment made hereunder or
from the execution, delivery or registration of, or otherwise with respect to, this Agreement except such taxes imposed with respect
to an assignment as a result of a present or former connection between Purchaser and the jurisdiction imposing such taxes (other
than connections arising from Purchaser having executed, delivered, become a party to, performed its obligations under, received
payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Program
Document, or sold or assigned any Purchased Asset or Program Document) (“Other Taxes”).

 

    	 	27	 

     

    

 

(c)Seller and Guarantor
agree to indemnify the Purchaser for the full amount of Taxes (including additional amounts with respect thereto) and Other Taxes,
and the full amount of Taxes of any kind imposed by any jurisdiction on amounts payable under this Section 8, and any liability
(including penalties, interest and expenses arising thereon or with respect thereto) arising therefrom or with respect thereto,
provided, that the Purchaser shall have provided Seller and Guarantor with evidence, reasonably satisfactory to the Seller and
Guarantor, of payment of Taxes or Other Taxes, as the case may be.

 

(d)Any Purchaser
that is either (i) not incorporated under the laws of the United States, any State thereof, or the District of Columbia or (ii)
not otherwise treated as a “United States person” under the Code (a “Foreign Purchaser”) shall provide
Seller and Agent with original properly completed and duly executed United States Internal Revenue Service (“IRS”)
Forms W-8BEN-E or W-8ECI or any successor form prescribed by the IRS (or IRS Form W-8IMY, with IRS Form W-8BEN-E or W-8ECI attached),
certifying that such Person is either (1) entitled to benefits under an income tax treaty to which the United States is a party
which eliminates United States withholding tax under Sections 1441 through 1442 of the Code on payments to it or (2) otherwise
fully exempt from United States withholding tax under Sections 1441 through 1442 of the Code on payments to it or certifying
that the income receivable pursuant to this Agreement is effectively connected with the conduct of a trade or business in the United
States in either case, on or prior to the date upon which each such Foreign Purchaser becomes a Purchaser. Each Foreign Purchaser
will resubmit the appropriate form eliminating withholding tax on payments to it on the earliest of (A) the third anniversary of
the prior submission, or (B) on or before the expiration of thirty (30) days after there is a “change in circumstances”
with respect to such Person as defined in Treas. Reg. Section 1.1441-1(e)(4)(ii)(D). For any period with respect to which the Foreign
Purchaser has failed to provide Seller and Guarantor with the appropriate form or other relevant document as expressly required
under this Section 8(d) (unless such failure is due to a change in treaty, law, or regulation occurring subsequent to the date
on which a form originally was required to be provided under the first sentence of this Section 8(d) or except to the extent
that, pursuant to this Section 8, amounts payable with respect to such taxes were payable to Purchaser’s assignor immediately
before Purchaser became a party hereto) such Person shall not be entitled to “gross-up” of Taxes under Section 8(a)
or indemnification under Section 8(c) with respect to Taxes imposed by the United States which are imposed because of such
failure; provided, however, that should a Foreign Purchaser, which is otherwise exempt from a withholding tax, become
subject to Taxes because of its failure to deliver a form required hereunder, Seller or Guarantor, as applicable, shall, at no
cost or expense to Seller or Guarantor, take such steps as such Foreign Purchaser shall reasonably request to assist such Foreign
Purchaser to recover such Taxes. Upon the execution of this Agreement, each Purchaser that is a “United States person”
within the meaning of the Code shall deliver to Seller and Guarantor a duly executed original of Internal Revenue Service Form W-9
or such other documentation or information prescribed by applicable laws or reasonably requested by Seller or Guarantor as will
enable Seller or Guarantor, as applicable, to determine whether or not Purchaser is subject to backup withholding or information
reporting requirements. Unless Seller or Guarantor has received such forms or other documents or information as required by this
Section 8(d) to establish Purchaser’s exception from backup withholding tax, Seller or Guarantor, as applicable, shall
not be required to pay additional sums or indemnify Purchaser for any backup amount withheld.

 

    	 	28	 

     

    

 

(e)If a payment
made to Purchaser under this Agreement would be subject to United States federal withholding tax imposed by FATCA if Agent or Purchaser
were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b)
of the Code, as applicable), Purchaser shall deliver to Seller and Guarantor at the time or times prescribed by law and at such
time or times reasonably requested by Seller or Guarantor such documentation prescribed by applicable law (including as prescribed
by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by Seller or Guarantor as may be
necessary for Seller and Guarantor to comply with its obligations under FATCA or to determine the amount to deduct and withhold
from such payment. Solely for purposes of this clause (e), “FATCA” shall include any amendments made to FATCA after
the date of this Agreement.

 

(f)Without prejudice
to the survival of any other agreement of Seller or Guarantor hereunder, the agreements and obligations of Seller and Guarantor
contained in this Section 8 shall survive the termination of this Agreement. Nothing contained in this Section 8 shall
require Purchaser to make available any of its tax returns or other information that it deems to be confidential or proprietary.

 

(g)Each party to
this Agreement acknowledges that it is its intent solely for purposes of U.S. federal, state and local income and franchise taxes
to treat each Transaction as indebtedness of Seller that is secured by the Purchased Assets and that the Purchased Assets are owned
by Seller in the absence of an Event of Default by Seller. All parties to this Agreement agree to such treatment and agree to take
no action inconsistent with this treatment, unless required by law.

 

		9.	SECURITY INTEREST; PURCHASER’S
APPOINTMENT AS ATTORNEY-IN-FACT

 

(a)Seller and Purchaser
intend that (other than for tax and accounting purposes) the Transactions hereunder be sales to Purchaser of the Purchased Assets
and not loans from Purchaser to Seller secured by the Purchased Assets. However, in order to preserve Purchaser’s rights
under this Agreement in the event that a court or other forum recharacterizes the Transactions hereunder as other than sales, and
as security for Seller’s performance of all of its Obligations, Seller hereby grants to the Purchaser a first priority security
interest in all of Seller’s right, title and interest in, to and under the Purchased Assets, whether now owned or existing
or hereafter acquired or arising. Seller acknowledges and agrees that its rights with respect to the Purchased Assets are and shall
continue to be at all times junior and subordinate to the rights of the Purchaser hereunder.

 

(b)Seller hereby
irrevocably constitutes and appoints Purchaser and any officer or agent thereof, with full power of substitution, as its true and
lawful attorney-in-fact with full irrevocable power and authority in the place and stead of Seller and in the name of Seller or
in its own name, from time to time in Purchaser’s discretion, to file such financing statement or statements relating to
the Purchased Assets as Purchaser at its option may deem appropriate, and if an Event of Default shall have occurred and be continuing,
for the purpose of carrying out the terms of this Agreement, to take any and all appropriate action and to execute any and all
documents and instruments which may be reasonably necessary or desirable to accomplish the purposes of this Agreement, and, without
limiting the generality of the foregoing, Seller hereby gives Purchaser the power and right, on behalf of Seller, without assent
by, but with notice to, Seller, to do the following if an Event of Default shall have occurred and be continuing and Purchaser
has elected to exercise its remedies pursuant to Section 18 hereof:

 

    	 	29	 

     

    

 

(i)in
the name of Seller, or in its own name, or otherwise, to take possession of and endorse and collect any checks, drafts, notes,
acceptances or other instruments for the payment of moneys due with respect to any Purchased Assets and to file any claim or to
take any other action or initiate and maintain any appropriate proceeding in any appropriate court of law or equity or otherwise
deemed appropriate by Purchaser for the purpose of collecting any and all such moneys due with respect to any Purchased Assets
whenever payable;

 

(ii)to
pay or discharge taxes and Liens levied or placed on or threatened against the Purchased Assets;

 

(iii)(A)
to direct any party liable for any payment under any Purchased Assets to make payment of any and all moneys due or to become due
thereunder directly to Purchaser or as Purchaser shall direct, (B) in the name of Seller, or in its own name, or otherwise as appropriate,
to directly send or cause the applicable servicer to send “hello” letters, “goodbye” letters in the form
of Exhibit D, and Section 404 Notices; (C) to ask or demand for, collect, receive payment of and receipt for any and all
moneys, claims and other amounts due or to become due at any time in respect of or arising out of any Purchased Assets; (D) to
sign and endorse any invoices, assignments, verifications, notices and other documents in connection with any Purchased Assets;
(E) to commence and prosecute any suits, actions or proceedings at law or in equity in any court of competent jurisdiction to collect
the Purchased Assets or any proceeds thereof and to enforce any other right in respect of any Purchased Assets; (F) to defend any
suit, action or proceeding brought against Seller with respect to any Purchased Assets; (G) to settle, compromise or adjust any
suit, action or proceeding described in clause (F) above and, in connection therewith, to give such discharges or releases as Purchaser
may deem appropriate; and (H) generally, to sell, transfer, pledge and make any agreement with respect to or otherwise deal with
any Purchased Assets as fully and completely as though Purchaser was the absolute owner thereof for all purposes, and to do, at
Purchaser’s option and Seller’s expense, at any time, and from time to time, all acts and things which Purchaser deems
necessary to protect, preserve or realize upon the Purchased Assets and Purchaser’s Liens thereon and to effect the intent
of this Agreement, all as fully and effectively as Seller might do.

 

Seller hereby ratifies
all that said attorneys shall lawfully do or cause to be done by virtue hereof. This power of attorney is a power coupled with
an interest and shall be irrevocable.

 

Seller also authorizes
Purchaser, from time to time if an Event of Default shall have occurred and be continuing, to execute any endorsements, assignments
or other instruments of conveyance or transfer with respect to the Purchased Assets in connection with any sale provided for in
Section 18 hereof.

 

    	 	30	 

     

    

 

The powers conferred
on Purchaser hereunder are solely to protect Purchaser’s interests in the Purchased Assets and shall not impose any duty
upon it to exercise any such powers. Purchaser shall be accountable only for amounts that they actually receive as a result of
the exercise of such powers, and neither Purchaser nor any of its officers, directors, employees or agents shall be responsible
to Seller for any act or failure to act hereunder.

 

		10.	CONDITIONS PRECEDENT

 

(a)As conditions
precedent to the effectiveness of this Agreement, Purchaser shall have received on or before the Effective Date the following,
in form and substance satisfactory to Purchaser and duly executed by each party thereto (as applicable):

 

(i)Each
of the Program Documents duly executed and delivered by the parties thereto and being in full force and effect, free of any modification,
breach or waiver;

 

(ii)Certificates
of an officer of each of Seller and Guarantor attaching certified copies of Seller’s and Guarantor’s respective consents
or charter, bylaws and corporate resolutions (or equivalent documents), as applicable, approving the Program Documents and Transactions
thereunder (either specifically or by general resolution), and all documents evidencing other necessary corporate action or governmental
approvals as may be required in connection with the Program Documents;

 

(iii)Certified
copies of good standing certificates from the jurisdiction of organization of each of Seller and Guarantor, dated as of no earlier
than the date which is ten (10) Business Days prior to the Purchase Date with respect to the initial Transaction hereunder;

 

(iv)An
incumbency certificate of the secretary of each of Seller and Guarantor certifying the names, true signatures and titles of Seller’s
and Guarantor’s respective representatives who are duly authorized to request Transactions hereunder and to execute the Program
Documents and the other documents to be delivered thereunder;

 

(v)An
opinion of Seller’s and Guarantor’s outside counsel as to such matters as Purchaser or Agent may reasonably request,
including, without limitation, with respect to Purchaser’s first priority lien on and perfected security interest in the
Purchased Assets, enforceability and an opinion that this Agreement constitutes a “repurchase agreement” and a “securities
contract” within the meaning of the Bankruptcy Code and an opinion that no Transaction constitutes an avoidable transfer
under Section 546(f) of the Bankruptcy Code, each in form and substance acceptable to Purchaser and Agent; and an opinion
of Seller’s and Guarantor’s inside counsel as to such matters as Purchaser or Agent may reasonably request, including,
a no material litigation, non-contravention and corporate opinion with respect to Seller and Guarantor and an opinion with respect
to the inapplicability of the Investment Company Act to Seller and Guarantor (or, provided that Purchaser is afforded the opportunity
to conduct due diligence at the Seller’s expense, an officer’s certificate from each of the Seller and the Guarantor
with respect to the inapplicability of the Investment Company Act to Seller and Guarantor);

 

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(vi)Seller
shall have paid to Purchaser and Purchaser shall have received all accrued and unpaid fees and expenses owed to Purchaser in accordance
with the Program Documents, including without limitation, the Structuring Fee and any Transaction Fees then due and owing pursuant
to Section 2 of the Pricing Side Letter and any fees due and owing to the Verification Agent, in each case, in immediately available
funds, and without deduction, set-off or counterclaim;

 

(vii)A
copy of the insurance policies required by Section 14(q) of this Agreement;

 

(viii)Duly
completed and filed Uniform Commercial Code financing statements acceptable to Purchaser and covering the Purchased Assets on Form
UCC1;

 

(ix)Purchaser
and/or Agent shall have completed the due diligence review pursuant to Section 36, and such review shall be satisfactory to Purchaser
and Agent in their sole discretion;

 

(x)Seller
shall have provided evidence, satisfactory to Purchaser and Agent, that Seller’s Approvals are in good standing; and

 

(xi)Any
other documents reasonably requested by Purchaser or Agent.

 

(b)As conditions
precedent to each Transaction (including the initial Transaction), each of the following conditions precedent must have been satisfied:

 

(i)Purchaser
or the Purchaser’s designee shall have received on or before the Purchase Date with respect to Eligible Mortgage Loans that
are to be the subject of such Transaction (unless otherwise specified in this Agreement) the following, in form and substance satisfactory
to the Purchaser and (if applicable) duly executed:

 

		(A)	Seller shall have paid to Purchaser and Purchaser shall have received all accrued and unpaid fees
and expenses owed to Purchaser in accordance with the Program Documents in immediately available funds, and without deduction,
set-off or counterclaim;

 

		(B)	The Transaction Notice and Seller Mortgage Loan Schedule (and additionally with respect to Wet-Ink
Mortgage Loans, the Closing Protection Letter) with respect to such Eligible Mortgage Loans, delivered pursuant to Section 3(c);

 

		(C)	Such certificates, customary opinions of counsel or other documents as Purchaser or Agent may reasonably
request, provided that such opinions of counsel shall not be required routinely in connection with each Transaction but shall only
be required from time to time as deemed necessary by Purchaser in its commercially reasonable judgment;

 

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		(D)	Purchaser shall have received the Structuring Fee and the Transaction Fees in respect of such Transaction
then due and owing pursuant to Section 2 of the Pricing Side Letter, in immediately available funds, and without deduction, set-off
or counterclaim;

 

		(E)	With respect to Mortgage Loans that are not Wet-Ink Mortgage Loans, an original trust receipt executed
by the Custodian in accordance with the terms of the Custodial and Disbursement Agreement without exceptions and with respect to
Wet-Ink Mortgage Loans, a Notice of Intent to Issue a Trust Receipt;

 

		(F)	Such other certifications of Custodian as are required under Sections 2 and 4 of the Custodial
and Disbursement Agreement;

 

		(G)	With respect to any Wet-Ink Mortgage Loan that is the subject of such Transaction, a copy of a
signed Closing Protection Letter in the form attached as Exhibit G hereto, or such other letter in form and substance acceptable
to Purchaser in its sole discretion;

 

		(H)	With respect to any Warehouse Lender to Seller, a Warehouse Lender’s Release from such Warehouse
Lender (including any party that has a precautionary security interest in a Mortgage Loan) having a security interest in any Mortgage
Loans, releasing any and all of its right, title and interest in, to and under such Mortgage Loan (including, without limitation,
any security interest that such secured party or secured party’s agent may have by virtue of its possession, custody or control
thereof) and, to the extent applicable, a copy of any Uniform Commercial Code termination statement filed in respect of any Uniform
Commercial Code filings made in respect of such Mortgage Loan, and each such Warehouse Lender’s Release and Uniform Commercial
Code termination statement has been delivered to Purchaser prior to such Transaction and to the Custodian as part of the Mortgage
File; and

 

		(I)	Purchaser shall have received the Non-Utilization Fee then due and owing pursuant to Section 2
of the Pricing Side Letter in immediately available funds, and without deduction, set-off or counterclaim; provided that Purchaser
may, in its sole discretion, net any Non-Utilization Fee from the proceeds of any Purchase Price paid by Purchaser to Seller.

 

(ii)No
Default or Event of Default shall have occurred and be continuing;

 

    	 	33	 

     

    

 

(iii)Purchaser
shall not have reasonably determined that the introduction of or a change in any Requirement of Law or in the interpretation or
administration of any requirement of law applicable to Purchaser has made it unlawful, and no Governmental Authority shall have
asserted that it is unlawful, for Purchaser to enter into Transactions with the applicable Pricing Rate;

 

(iv)Both
immediately prior to the related Transaction and also after giving effect thereto and to the intended use thereof, all representations
and warranties in the Program Documents shall be true and correct on the date of such Transaction (with the same force and effect
as if made on such date) and Seller is in compliance with the terms and conditions of the Program Documents, other than as may
be expressly waived by the Purchaser;

 

(v)The
then Aggregate MRA Purchase Price when added to the Purchase Price for the requested Transaction shall not exceed, as of any date
of determination, the lesser of (a) the Maximum Aggregate Purchase Price (less the sum of the MSR Facility Borrowed Amount and
the Aggregate EPF Purchase Price) and (b) the Asset Base;

 

(vi)The
Purchase Price for the requested Transaction shall not be less than $500,000;

 

(vii)Satisfaction
of any conditions precedent to the initial Transaction as set forth in clause (a) of this Section 10 that were not satisfied
prior to such initial Purchase Date;

 

(viii)Purchaser
shall have determined that all actions necessary to maintain Purchaser’s perfected security interest in the Purchased Assets
have been taken;

 

(ix)Purchaser
or its designee shall have received any other documents reasonably requested by Purchaser; and

 

(x)There
is no Margin Deficit at the time immediately prior to entering into a new Transaction (other than a Margin Deficit that will be
cured contemporaneous with such Transaction in accordance with the provisions of Section 7 hereof).

 

(xi)None
of the following shall have occurred and/or be continuing:

 

		(A)	an event or events shall have occurred in the good faith determination of Purchaser resulting in
the effective absence of a “repo market” or comparable “lending market” for financing debt obligations
secured by mortgage loans or securities or an event or events shall have occurred resulting in Purchaser not being able to finance
Eligible Mortgage Loans through the “repo market” or “lending market” with traditional counterparties at
rates which would have been reasonable prior to the occurrence of such event or events; or

 

    	 	34	 

     

    

 

 

		(B)	an event or events shall have occurred resulting in the effective absence of a “securities
market” for securities backed by mortgage loans or an event or events shall have occurred resulting in Purchaser not being
able to sell securities backed by mortgage loans at prices which would have been reasonable prior to such event or events; or

 

		(C)	there shall have occurred a material adverse change in the financial condition of Purchaser which
affects (or can reasonably be expected to affect) materially and adversely the ability of Purchaser to fund its obligations under
this Agreement.

 

		11.	RELEASE OF PURCHASED ASSETS

 

Upon timely payment
in full of the Repurchase Price and all other Obligations (if any) then owing with respect to a Purchased Asset pursuant to Section
3(f) hereof, unless a Margin Deficit or an Event of Default shall have occurred and be continuing: (a) the Purchaser shall automatically
and without any further action terminate any security interest that Purchaser may have in such Purchased Asset, (b) Purchaser shall
automatically and without further action sell and release to the Seller such Purchased Asset, and (c) with respect to such Purchased
Asset, Purchaser shall or shall direct Custodian to release such Purchased Asset to Seller. Except as set forth in Section 16(f)(ii)
and Section 15, Seller shall give at least one (1) Business Day’s prior written notice to the Purchaser if such repurchase
shall occur on any date other than the Repurchase Date.

 

If such a Margin Deficit
is applicable, Purchaser shall notify Seller of the amount thereof and Seller may thereupon satisfy the Margin Call in the manner
specified in Section 7.

 

		12.	RELIANCE

 

With respect to any
Transaction, Purchaser may conclusively rely upon, and shall incur no liability to Seller in acting upon, any request or other
communication that Purchaser reasonably believes to have been given or made by a person authorized to enter into a Transaction
on Seller’s behalf.

 

		13.	REPRESENTATIONS AND WARRANTIES

 

Each of the Seller
and Guarantor hereby represents and warrants to Purchaser and Agent, and shall on and as of the Purchase Date for any Transaction
and on and as of each date thereafter through and including the related Repurchase Date be deemed to represent and warrant to Purchaser
and Agent that:

 

(a)Due Organization,
Qualification, Power, Authority and Due Authorization. Each of the Seller and Guarantor is duly organized, validly existing
and in good standing under the laws of the jurisdiction of its organization and it has qualified to do business in each jurisdiction
in which it is legally required to do so. Each of the Seller and Guarantor has the power and authority under its certificate of
incorporation, bylaws (or equivalent documents) and applicable law to enter into this Agreement and the Program Documents and to
perform all acts contemplated hereby and thereby or in connection herewith and therewith; this Agreement and the Program Documents
and the transactions contemplated hereby and thereby have been duly authorized by all necessary action and do not require any additional
approvals or consents or other action by, or any notice to or filing with, any Person other than any that have heretofore been
obtained, given or made.

 

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(b)Noncontravention.
The consummation of the transactions contemplated by this Agreement and Program Documents are in the ordinary course of business
of each of the Seller and Guarantor and will not conflict with, result in the breach of or violate any provision of the charter
or by-laws (or equivalent documents) of each of the Seller and Guarantor or result in the breach of any provision of, or conflict
with or constitute a default under or result in the acceleration of any obligation under, any agreement, indenture, loan or credit
agreement or other instrument to which Seller or Guarantor, the Purchased Assets or any of Seller’s Property or Guarantor’s
Property is or may be subject, or result in the violation of any law, rule, regulation, order, judgment or decree to which Seller
or Guarantor, the Purchased Assets or Seller’s Property or Guarantor’s Property is subject. Without limiting the generality
of the foregoing, the consummation of the transactions contemplated herein or therein will not violate any policy, regulation or
guideline of the FHA or VA or result in the voiding or reduction of the FHA insurance, VA guarantee or any other insurance or guarantee
in respect of any Mortgage Loan, and such FHA insurance or VA guarantee is in full force and effect or shall be in full force and
effect as required by the applicable Agency Guide.

 

(c)Legal Proceeding.
There is no action, suit, proceeding, inquiry or investigation, at law or in equity, or before or by any court, public board or
body pending or, to Seller’s knowledge or Guarantor’s knowledge, threatened against or affecting Seller or Guarantor
(or, to Seller’s knowledge or Guarantor’s knowledge, any basis therefor) wherein an unfavorable decision, ruling or
finding would adversely affect the validity of the Purchased Assets or the validity or enforceability of this Agreement, the Program
Documents or any agreement or instrument to which Seller is a party and which is used or contemplated for use in the consummation
of the transactions contemplated hereby, would adversely affect the proceedings of Seller in connection herewith or would or could
materially and adversely affect Seller’s ability or Guarantor’s ability to carry out its obligations hereunder.

 

(d)Valid and
Binding Obligations. This Agreement, the Program Documents and every other document to be executed by Seller or Guarantor in
connection with this Agreement is and will be legal, valid, binding and subsisting obligations of Seller or Guarantor, as applicable,
enforceable in accordance with their respective terms, except that (A) the enforceability thereof may be limited by bankruptcy,
insolvency, moratorium, receivership and other similar laws relating to creditors’ rights generally and (B) the remedy of
specific performance and injunctive and other forms of equitable relief may be subject to equitable defenses and to the discretion
of the court before which any proceeding therefor may be brought.

 

(e)Financial
Statements. The financial statements of each of Seller and Guarantor, copies of which have been furnished to Purchaser, (i)
are, as of the dates and for the periods referred to therein, complete and correct in all material respects, (ii) present fairly
the financial condition and results of operations of Seller as of the dates and for the periods indicated and (iii) have been prepared
in accordance with GAAP consistently applied, except as noted therein (subject as to interim statements to normal year-end adjustments).
Since the date of the most recent financial statements, there has been no Material Adverse Change with respect to Seller or Guarantor.
Except as disclosed in such financial statements or pursuant to Section 14(i) hereof, neither Seller nor Guarantor is subject
to any contingent liabilities or commitments that, individually or in the aggregate, have a material possibility of causing a Material
Adverse Change with respect to Seller.

 

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(f)Accuracy
of Information. Neither this Agreement nor any representations and warranties or information relating to Seller or Guarantor
that Seller or Guarantor has delivered or caused to be delivered to Purchaser, including, but not limited to, all documents related
to this Agreement, the Program Documents or Seller’s or Guarantor’s financial statements, contains any untrue statement
of a material fact or omits to state a material fact necessary to make the statements made therein or herein in light of the circumstances
under which they were made, not misleading. Since the furnishing of such documents or information, there has been no change, nor
any development or event involving a prospective change that would render any of such documents or information untrue or misleading
in any material respect.

 

(g)No Consents.
No consent, license, approval or authorization from, or registration, filing or declaration with, any regulatory body, administrative
agency or other governmental instrumentality, nor any consent, approval, waiver or notification of any creditor, lessor or other
non-governmental Person, is required in connection with the execution, delivery and performance by Guarantor, Seller or its Parent
Company, if any, of this Agreement or any other Program Document, other than any that have heretofore been obtained, given or made.

 

(h)Compliance
With Law, Etc. No practice, procedure or policy employed or proposed to be employed by Seller or Guarantor in the conduct of
its businesses violates any law, regulation, judgment, agreement, regulatory consent, order or decree applicable to it which, if
enforced, would result in a Material Adverse Effect.

 

(i)Solvency.
Each of Seller and Guarantor is solvent and will not be rendered insolvent by any Transaction and, after giving effect to each
such Transaction, neither Seller nor Guarantor will be left with an unreasonably small amount of capital with which to engage in
its business. Neither Seller nor Guarantor intends to incur, nor believes that it has incurred, debts beyond its ability to pay
such debts as they mature. Neither Seller nor Guarantor is contemplating the commencement of insolvency, bankruptcy, liquidation
or consolidation proceedings or the appointment of a receiver, liquidator, conservator, trustee or similar official in respect
of Seller or Guarantor or any of their respective assets.

 

(j)Fraudulent
Conveyance. The amount of consideration being received by Seller in respect of each Transaction, taken as a whole, constitutes
reasonably equivalent value and fair consideration for the related Purchased Assets. Seller is not transferring any Purchased Assets
with any intent to hinder, delay or defraud any of its creditors. The Agreement and the Program Documents, any other document contemplated
hereby or thereby and each transaction have not been entered into fraudulently by Seller hereunder, or with the intent to hinder,
delay or defraud any creditor or Purchaser.

 

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(k)Investment
Company Act Compliance. Neither Seller, Guarantor nor any of their Subsidiaries is required to be registered as an “investment
company” as defined under the Investment Company Act or as an entity “controlled by” an entity required to be
registered as an “investment company” as defined under the Investment Company Act.

 

(l)Taxes.
Seller has timely filed all federal and state tax returns that are required to be filed by it and paid all taxes, including any
assessments received by it, to the extent that such taxes have become due (other than for taxes that are being contested in good
faith and for which it has established adequate reserves). Any taxes, fees and other governmental charges payable by Seller or
Guarantor in connection with a Transaction and the execution and delivery of the Program Documents have been paid.

 

(m)Additional
Representations. With respect to each Asset to be sold hereunder by Seller to Purchaser, Seller hereby makes all of the applicable
representations and warranties set forth in Exhibit B as of the related Purchase Date and continuously while such Asset
is subject to a Transaction. Further, as of each Purchase Date, Seller shall be deemed to have represented and warranted in like
manner that Seller has no knowledge that any such representation or warranty may have ceased to be true in a material respect as
of such date, except as otherwise stated in a Transaction Notice, any such exception to identify the applicable representation
or warranty and specify in reasonable detail the related knowledge of Seller.

 

(n)No Broker.
Neither Seller nor Guarantor has dealt with any broker, investment banker, agent, or other person, except for Purchaser, who may
be entitled to any commission or compensation in connection with the sale of Purchased Assets pursuant to this Agreement; provided,
that if Seller or Guarantor has dealt with any broker, investment banker, agent, or other person, except for Purchaser, who may
be entitled to any commission or compensation in connection with the sale of Purchased Assets pursuant to this Agreement, such
commission or compensation shall have been paid in full by Seller or Guarantor.

 

(o)Good Title.
Seller has not sold, assigned, transferred, pledged or hypothecated any interest in any individual Mortgage Loan subject to a Transaction
to any person other than any sale, assignment, transfer, pledge or hypothecation that is released in conjunction with the sale
to Purchaser hereunder, and upon delivery of a Purchased Asset to Purchaser, the Purchaser will be the sole owner thereof (other
than for tax and accounting purposes), free and clear of any lien, claim or encumbrance other than those arising under this Agreement.

 

(p)Approvals.
Each of Seller, Guarantor and Servicer has all requisite Approvals.

 

(q)Custodian;
Disbursement Agent. The Custodian is an eligible custodian under each Agency Guide and each Agency Program, and is not an Affiliate
of Seller. The Disbursement Agent is not an Affiliate of Seller.

 

(r)No Adverse
Actions. Seller has not received from any Agency a notice of extinguishment or a notice indicating material breach, default
or material non-compliance which the Agent reasonably determines may entitle an Agency to terminate, suspend, sanction or levy
penalties against the Seller, or a notice from any Agency, HUD, FHA or VA indicating any adverse fact or circumstance in respect
of Seller which the Agent reasonably determines may entitle such Agency, HUD, FHA or VA, as the case may be, to revoke any Approval
or otherwise terminate, suspend Seller as an Agency approved issuer or servicer, or with respect to which such adverse fact or
circumstance has caused any Agency, HUD, FHA or VA, as the case may be, to terminate Seller, without any subsequent rescission
thereof in such notice.

 

    	 	38	 

     

    

 

(s)Reserved.

 

(t)Affiliated
Parties. Seller is not an Affiliate of the Custodian, Disbursement Agent or Settlement Agent or any other party to a Program
Document hereunder.

 

The representations
and warranties set forth in this Agreement shall survive transfer of the Purchased Assets to Purchaser and shall continue for so
long as the Purchased Assets are subject to this Agreement.

 

		14.	COVENANTS OF SELLER

 

Seller hereby covenants
and agrees with Purchaser and Agent as follows:

 

(a)Defense of
Title. Seller warrants and will defend the right, title and interest of Purchaser in and to all Purchased Assets against all
adverse claims and demands.

 

(b)No Amendment
or Compromise. None of Seller or those acting on Seller’s behalf shall amend, modify, or waive any term or condition
of, or settle or compromise any claim in respect of, any item of the Purchased Assets, any related rights or any of the Program
Documents without the prior written consent of Purchaser, unless such amendment or modification does not (i) affect the amount
or timing of any payment of principal or interest payable with respect to a Purchased Asset, extend its scheduled maturity date,
modify its interest rate, or constitute a cancellation or discharge of its outstanding principal balance or (ii) materially and
adversely affect the security afforded by the real property, furnishings, fixtures, or equipment securing the Purchased Asset.
Notwithstanding the foregoing, the Seller may amend, modify or waive any term or condition of the individual Mortgage Loans in
accordance with Accepted Servicing Practices and the Agency Guides; provided, that Seller shall promptly notify Purchaser of any
amendment, modification or waiver that causes any Mortgage Loan to cease to be an Eligible Mortgage Loan.

 

(c)No Assignment;
No Liens. Seller shall not sell, assign, transfer or otherwise dispose of, or grant any option with respect to, or pledge,
hypothecate or grant a security interest in, or Lien on or otherwise encumber (except pursuant to the Program Documents) any of
the Purchased Assets or any interest therein, provided that this Section 14(c) shall not prevent any of the following:
any contribution, sale, assignment, transfer or conveyance of Purchased Assets in accordance with the Program Documents and any
forward purchase commitment or other type of take out commitment for the Purchased Assets (without vesting rights in the related
purchasers as against the Purchaser).

 

Seller shall not sell,
assign, transfer or otherwise dispose of, or grant any option with respect to, or grant, create, incur, assume or permit to exist
any Lien with respect to any of the Purchased Assets, the Mortgage Notes or any Property related thereto, including but not limited
to the related Mortgages securing such Mortgage Notes and the proceeds of the Mortgage Notes, unless such Liens are the subject
of an intercreditor agreement in form and substance satisfactory to the Agent, other than: (A) assignments to, and Liens granted
to, the Purchaser herein or under the Program Documents; (B) Liens in connection with deposits or pledges to secure payment of
worker’s compensation, unemployment insurance, old age pensions or other social security obligations, in the ordinary course
of business of the seller or any subsidiary; (C) liens for taxes, fees, assessments, and governmental charges not delinquent or
which are being contested in good faith by appropriate proceedings and for which appropriate reserves have been established in
accordance with GAAP; (D) encumbrances consisting of zoning regulations, easements, rights of way, survey exceptions and other
similar restrictions on the use of real property and minor irregularities in title thereto which do not materially impair their
use in operation of its business; (E) Liens in connection with hedging arrangements and (F) any other Lien approved by Agent in
its sole discretion.

 

    	 	39	 

     

    

 

(d)No Economic
Interest. Neither Seller nor any affiliate thereof will acquire any economic interest in or obligation with respect to any
Purchased Asset except for record title to the Mortgage relating to the Purchased Asset and the right and obligation to repurchase
the Mortgage Loan hereunder and the right to receive amounts pursuant to Section 16.

 

(e)Preservation
of Purchased Assets. Seller shall take all actions necessary or, in the opinion of Purchaser, desirable, to preserve the Purchased
Assets so that they remain subject to a first priority perfected security interest hereunder and deliver evidence that such actions
have been taken, including, without limitation, duly executed and filed Uniform Commercial Code financing statements on Form UCC1.
Without limiting the foregoing, Seller will comply with all applicable laws, rules, regulations and other laws of any Governmental
Authority applicable to Seller relating to the Purchased Assets and cause the Purchased Assets to comply with all applicable laws,
rules, regulations and other laws of any such Governmental Authority. Seller will not allow any default to occur for which Seller
is responsible under any Purchased Assets or any Program Documents and Seller shall fully perform or cause to be performed when
due all of its obligations under any Purchased Assets or the Program Documents.

 

(f)Maintenance
of Papers, Records and Files.

 

(i)Seller
shall maintain all Records relating to the Purchased Assets not in the possession of Custodian in good and complete condition in
accordance with industry practices and preserve them against loss. Seller shall collect and maintain or cause to be collected
and maintained all such Records in accordance with industry custom and practice, and all such Records shall be in the Purchaser’s
or Custodian’s possession unless the Purchaser otherwise approves in writing. Seller will not cause or authorize any such
papers, records or files that are an original or an only copy to leave Custodian’s possession, except for individual items
removed in connection with servicing a specific Mortgage Loan, in which event Seller will obtain or cause to be obtained a receipt
from the Custodian for any such paper, record or file, or as otherwise permitted under the Custodial and Disbursement Agreement.

 

(ii)For
so long as Purchaser has an interest in or Lien on any Purchased Asset, Seller will hold or cause to be held all related Records
for the sole benefit of the Purchaser.

 

    	 	40	 

     

    

 

(iii)Upon
reasonable advance notice from Custodian or Purchaser, Seller shall (x) make any and all such Records available to Custodian or
Agent for examination, either by its own officers or employees, or by agents or contractors, or both, and make copies of all or
any portion thereof, (y) permit Agent or its authorized agents to discuss the affairs, finances and accounts of Seller with Seller’s
chief operating officer and chief financial officer and to discuss the affairs, finances and accounts of Seller with Seller’s
independent certified public accountants.

 

(g)Financial
Statements and Other Information; Financial Covenants.

 

(i)Seller
shall keep or cause to be kept in reasonable detail books and records setting forth an account of its assets and business and,
as applicable, shall clearly reflect therein the transfer of Purchased Assets to Purchaser. Seller or Guarantor, as applicable,
shall furnish or cause to be furnished to Purchaser the following:

 

		(A)	Financial Statements.

 

(1)As soon
as is practicable, but in any event within ninety (90) days after the end of each fiscal year of each of Seller and Guarantor,
the consolidated audited balance sheets of each of Seller and Guarantor and their respective consolidated Subsidiaries, which will
be in conformity with GAAP, and the related consolidated audited statements of income and changes in equity showing the financial
condition of Seller and Guarantor, respectively, and their respective consolidated Subsidiaries as of the close of such fiscal
year and the results of operations during such year, and consolidated audited statements of cash flows, as of the close of such
fiscal year, setting forth, in each case, in comparative form the corresponding figures for the preceding year. The foregoing consolidated
financial statements are to be reported on by, and to carry the unqualified report (acceptable in form and content to Purchaser
and Agent) of, an independent public accountant of national standing acceptable to Purchaser and Agent and are to be accompanied
by a letter of management in form and substance acceptable to Purchaser and Agent;

 

(2)As soon
as is practicable, but in any event within forty-five (45) days after the end of each month, consolidated unaudited balance sheets
and consolidated statements of income and changes in equity, all to be in a form acceptable to Purchaser and Agent, showing the
financial condition and results of operations of Seller or Guarantor, as applicable, and their respective consolidated Subsidiaries
on a consolidated basis as of the end of each such month and for the then elapsed portion of the fiscal year, certified by a financial
officer of Seller or Guarantor, as applicable, (acceptable to Purchaser and Agent) as presenting fairly the financial position
and results of operations of Seller or Guarantor, respectively, and their respective consolidated Subsidiaries and as having been
prepared in accordance with GAAP consistently applied, in each case, subject to normal year-end audit adjustments;

 

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(3)Promptly
upon receipt thereof, a copy of each other report submitted to Seller and Guarantor by their independent public accountants in
connection with any annual, interim or special audit of Seller or Guarantor, as applicable;

 

(4)Except
to the extent publicly filed, promptly upon becoming available, copies of all financial statements, reports, notices and proxy
statements sent by its Parent Company, Seller, Guarantor or any of Seller’s or Guarantor’s consolidated Subsidiaries
in a general mailing to their respective stockholders;

 

(5)Except
to the extent publicly filed, promptly upon becoming available, copies of any press releases issued by its Parent Company or Seller
or Guarantor and copies of any annual and quarterly financial reports and any reports on Form H-(b)12 that its Parent Company or
Seller or Guarantor may be required to file with the SEC or any federal banking agency, or any report which a Parent Company or
Seller or Guarantor may be required to file with the SEC or any federal banking agency containing such financial statements, and
other information concerning such Parent Company’s or Seller’s or Guarantor’s business and affairs as is required
to be included in such reports in accordance with the rules and regulations of the SEC or such federal banking agency, as may be
promulgated from time to time;

 

(6)Such supplements
to the aforementioned documents and such other information regarding the operations, business, affairs and financial condition
of their respective Parent Company, Seller, Guarantor or any of Seller’s or Guarantor’s respective consolidated Subsidiaries
as Purchaser may request.

 

		(B)	Reserved.

 

		(C)	Other Information. Upon the request of Purchaser or Agent, such other information or reports
as Purchaser or Agent may from time to time reasonably request.

 

(ii)Seller
and Guarantor, as applicable, shall comply with the following financial covenants:

 

		(A)	Seller shall maintain an Adjusted Tangible Net Worth of not less than $200,000,000, in each case
as of the last day of each calendar month;

 

		(B)	As of each fiscal quarter-end, Guarantor shall have maintained at least $1.00 in net income for
at least one of the prior two fiscal quarters.

 

		(C)	As of each month-end, Seller shall have maintained unrestricted cash and Cash Equivalents in an
amount of not less than $20,000,000;

 

    	 	42	 

     

    

 

		(D)	As of the last day of each calendar month, the ratio of Indebtedness to Adjusted Tangible Net Worth,
in the case of the Seller, does not exceed 10:1; and

 

		(E)	In addition, in the event Seller or Guarantor is subject to financial covenants or margin maintenance
notice and compliance requirements under any other agreement for Indebtedness that are more restrictive of Seller and/or Guarantor
or otherwise more favorable to the lender thereunder than the financial covenants and margin maintenance requirements set forth
hereinabove, such financial covenants and margin maintenance notice and compliance requirements shall be automatically incorporated
into this Agreement, for as long as such provision(s) remain in full force and effect under such other agreement(s) for Indebtedness,
as if fully set forth herein without the need of any further action on the part of any party and Seller and/or Guarantor shall
comply with such financial covenants and margin maintenance notice and compliance requirements.

 

(iii)Certifications.
Seller shall execute and deliver a certification substantially in the form of Exhibit A attached hereto within (x) forty-five
(45) days after the end of each of the first two calendar months of each fiscal quarter, within (y) forty-five (45) days after
the end of each of the first three fiscal quarters of each fiscal year, and (z) ninety (90) days after the end of each fiscal year.

 

(h)Agency Reporting.
Seller shall comply with the reporting requirements of each Agency Guide and HUD.

 

(i)Notice of
Material Events. Seller shall promptly inform Purchaser and Agent in writing of any of the following:

 

(i)any
Default, Event of Default by Seller or Guarantor or any other Person (other than Purchaser or Purchaser’s Affiliates) of
any material obligation under any Program Document, or the occurrence or existence of any event or circumstance that Seller
reasonably expects will with the passage of time become a Default, Event of Default by Seller or any other Person;

 

(ii)any
change in the insurance coverage of Seller as required to be maintained pursuant to Section 14(q) hereof, or any other Person pursuant
to any Program Document, with copy of evidence of same attached;

 

(iii)the
commencement of, or any determination in, any dispute, litigation, investigation, proceeding, sanctions or suspension between Guarantor,
Seller or its Parent Company, on the one hand, and any Governmental Authority (or any other Person, but only with respect to material
litigation) on the other;

 

(iv)any
change in accounting policies or financial reporting practices of Seller which could reasonably be expected to have a Material
Adverse Effect;

 

    	 	43	 

     

    

 

(v)any
event, circumstance or condition that has resulted, or has a reasonable likelihood of resulting in either a Material Adverse Change
or a Material Adverse Effect with respect to Seller or Guarantor;

 

(vi)any
material modifications to the Seller’s underwriting or acquisition guidelines;

 

(vii)any
more restrictive financial covenants or margin maintenance notice and compliance requirements Seller or Guarantor becomes subject
to or any more restrictive change or modification to any financial covenants or margin maintenance notice and compliance requirements
Seller or Guarantor is obligated to comply with, in either case, under any agreement for Indebtedness or any waiver of compliance
with such financial covenants;

 

(viii)any
penalties, sanctions or charges levied, or threatened to be levied, against Seller or any change, or threatened change, in Approval
status, or actions taken, or threatened to be taken, against Seller by or disputes between Seller and any Applicable Agency, or
any supervisory or regulatory Government Authority (including, but not limited to HUD, FHA and VA) supervising or regulating the
origination or servicing of mortgage loans by, or the issuer status of, Seller;

 

(ix)any
consolidation or merger of Seller, any Change in Control of Seller or Guarantor, or any sale of all or substantially all of Seller’s
Property or Guarantor’s Property; or

 

(x)upon
Seller becoming aware of any termination or threatened termination by an Agency of the Custodian as an eligible custodian.

 

(j)Maintenance
of Approvals. Each of Seller and Guarantor shall take all necessary actions to maintain its Approvals at all times during the
term of this Agreement. If, for any reason, Seller or Guarantor ceases to maintain any such Approval, Seller or Guarantor, as applicable,
shall so notify Purchaser and Agent immediately.

 

(k)Maintenance
of Licenses. Each of Seller and Guarantor shall (i) maintain all licenses, permits or other approvals necessary for Seller
and Guarantor to conduct its business and to perform its obligations under the Program Documents, (ii) remain in good standing
under, and comply in all material respects with, all laws of each state in which it conducts business or any Mortgaged Property
is located, and (iii) conduct its business in accordance with applicable law.

 

(l)Taxes, Etc.
Each of Seller and Guarantor shall pay and discharge or cause to be paid and discharged, when due all taxes, assessments and governmental
charges or levies imposed upon it or upon its income and profits or upon any of its Property, real, personal or mixed (including
without limitation, the Purchased Assets) or upon any part thereof, as well as any other lawful claims which, if unpaid, might
become a Lien upon such properties or any part thereof, except for any such taxes, assessments and governmental charges, levies
or claims as are appropriately contested in good faith by appropriate proceedings diligently conducted and with respect to which
adequate reserves are provided. Seller shall file on a timely basis all federal, and state and local tax and information returns,
reports and any other information statements or schedules required to be filed by or in respect of it.

 

    	 	44	 

     

    

 

(m)Nature of
Business. Neither Seller nor Guarantor shall make any material change in the nature of its business as carried on at the date
hereof.

 

(n)Limitation
on Distributions. Each of Seller and Guarantor shall have the right to pay dividends so long as Seller and Guarantor remain
in compliance with the financial covenants set forth in Section 14(g)(ii) immediately following such dividend distribution.
Notwithstanding the foregoing, if an Event of Default has occurred and is continuing, neither Seller nor Guarantor shall make any
payment of any dividends or make distributions on account of, or set apart assets for a sinking or other analogous fund for the
purchase, redemption, defeasance, retirement or other acquisition of, any capital stock, senior or subordinate debt of Seller or
Guarantor or other equity interests, respectively, thereof, whether now or hereafter outstanding, or make any other distribution
in respect thereof, either directly or indirectly, whether in cash or Property or in obligations of Seller or Guarantor.

 

(o)Use of Custodian.
Without the prior written consent of Purchaser, Seller shall use no third party custodian as document custodian other than the
Custodian for the Mortgage File relating to the Mortgage Loans.

 

(p)Merger of
Seller or Guarantor. Neither Seller nor Guarantor shall, at any time, directly or indirectly (i) liquidate or dissolve or enter
into any consolidation or merger or be subject to a Change in Control or sell all or substantially all of its Property (other than
in connection with an asset-based financing or other secondary market transaction related to the Seller’s assets in the ordinary
course of the Seller’s or Guarantor’s business) without providing Purchaser with not less than forty-five (45) days’
prior written notice of such event; or (ii) form or enter into any partnership, joint venture, syndicate or other combination which
would have a Material Adverse Effect with respect to Seller or Guarantor.

 

(q)Insurance.
Seller shall obtain and maintain insurance with responsible companies in such amounts and against such risks as are customarily
carried by business entities engaged in similar businesses similarly situated, including without limitation, the insurance required
to be obtained and maintained by each Agency pursuant to the Agency Guides, and will furnish Purchaser on request full information
as to all such insurance, and provide within fifteen (15) days after receipt of such request the certificates or other documents
evidencing renewal of each such policy. Seller shall continue to maintain coverage, for itself and its Subsidiaries, that encompasses
all acts required by each Agency in an aggregate amount of at least such amount as is required by each Agency.

 

(r)Affiliate
Transaction. Seller shall not, at any time, directly or indirectly, sell, lease or otherwise transfer any Property or assets
to, or otherwise acquire any Property or assets from, or otherwise engage in any transactions with, any of its Affiliates unless
the terms thereof are no less favorable to Seller, than those that could be obtained at the time of such transaction in an arm’s
length transaction with a Person who is not such an Affiliate.

 

    	 	45	 

     

    

 

(s)Change of
Fiscal Year. Seller shall not, at any time, directly or indirectly, except upon ninety (90) days’ prior written notice
to Purchaser, change the date on which its fiscal year begins from its current fiscal year beginning date.

 

(t)Transfer
of Servicing Rights, Servicing Files and Servicing. With respect to the Servicing Rights of each Purchased Asset, Seller shall
transfer such Servicing Rights to the Purchaser or its designee on the related Purchase Date. With respect to the Servicing Files
and the physical and contractual servicing of each Purchased Asset to the extent in the possession of Servicer, Servicer shall
deliver such Servicing Files and the physical and contractual servicing to the Purchaser or its designee upon the expiration of
the Servicing Term unless either such Servicing Term is renewed by the Purchaser or the termination of the Servicer pursuant to
Section 16. Seller’s transfer of the Servicing Rights, and Seller’s transfer of the Servicing Files and the physical
and contractual servicing under this Section shall be in accordance with customary standards in the industry including the transfer
of the gross amount of all escrows held for the related Mortgagors (without reduction for unreimbursed advances or “negative
escrows”).

 

(u)Audit and
Approval Maintenance. Seller shall (i) at all times maintain copies of relevant portions of all final written Agency audits,
examinations, evaluations, monitoring reviews and reports of its origination and servicing operations (including those prepared
on a contract basis for any such agency) in which there are material adverse findings, including without limitation notices of
defaults, notices of termination of approved status, notices of imposition of supervisory agreements or interim servicing agreements,
and notices of probation, suspension, or non-renewal, and all necessary approvals from each Agency, (ii) promptly provide Agent
with copies of such audits, examinations, evaluations, monitoring reviews and reports promptly upon receipt from any Agency or
agent of any Agency, to the extent permitted by such Agency and (iii) take all actions necessary to maintain its respective Approvals.

 

(v)MERS.
The Seller is a member of MERS in good standing and current in the payment of all fees and assessments imposed by MERS, and has
complied with all rules and procedures of MERS. In connection with the assignment of any Purchased Asset registered on the MERS
System, the Seller agrees that at the request of the Purchaser it will, at the Seller’s own cost and expense, promptly cause
the MERS System to indicate that such Mortgage Loan has been transferred to the Purchaser in accordance with the terms of this
Agreement by including in MERS’ computer files (a) the code in the field which identifies the specific owner of the Mortgage
Loans and (b) the code in the field “Pool Field” which identifies the series in which such Mortgage Loans were sold.
The Seller further agrees that it will not alter codes referenced in this paragraph with respect to any Mortgage Loan at any time
that such Mortgage Loan is subject to this Agreement, and the Seller shall retain its membership in MERS at all times during the
term of this Agreement.

 

(w)Fees and
Expenses. Seller shall timely pay to Purchaser all fees and actual out of pocket expenses required to be paid by Seller hereunder
and under any other Program Document to Purchaser in immediately available funds, and without deduction, set-off or counterclaim
in accordance with the Purchaser’s Wire Instructions.

 

    	 	46	 

     

    

 

(x)Agency Status.
Once the Seller or any of its subservicers has obtained any status with an Agency mortgage loan pool for which Seller is issuer
or servicer, Seller shall not take or omit to take any act that (i) would result in the suspension or loss of any of such status,
or (ii) after which Seller or any such relevant subservicer would no longer be in good standing with respect to such status, or
(iii) after which Seller or any such relevant subservicer would no longer satisfy all applicable Agency net worth requirements,
if both (x) all of the material effects of such act or omission shall not have been cured by Seller or waived by the applicable
Agency before termination of such status and (y) the termination of such status could reasonably be expected to have a Material
Adverse Effect.

 

(y)Further Documents.
Seller shall, upon request of Purchaser or Agent, promptly execute and deliver to Purchaser or Agent all such other and further
documents and instruments of transfer, conveyance and assignment, and shall take such other action as Purchaser or Agent may require
more effectively to transfer, convey, assign to and vest in Purchaser and to put Purchaser in possession of the Property to be
transferred, conveyed, assigned and delivered hereunder and otherwise to carry out more effectively the intent of the provisions
under this Agreement.

 

(z)Due Diligence.
Seller will permit Purchaser, Agent or their respective agents or designees, including the Verification Agent, to perform due diligence
reviews on the Mortgage Loans subject to each Transaction hereunder up to the Due Diligence Review Percentage and within thirty
(30) days following the related Purchase Date. Seller shall cooperate in all respects with such diligence and shall provide Purchaser,
Agent or their respective agents or designees, including the Verification Agent, with all loan files and other information (including,
without limitation, Seller’s quality control procedures and results) reasonably requested by Purchaser, Agent or their respective
agents or designees, including the Verification Agent and shall bear all costs and expenses incurred by any third party diligence
firm (including the Verification Agent) in connection with any ongoing due diligence or auditing activities, subject to an annual
cap of $20,000; provided, however that such annual cap shall not apply if a Default has occurred.
Additionally, Seller shall grant Purchaser access to the Seller’s quality control procedures and results.

 

		15.	REPURCHASE OF PURCHASED ASSETS

 

Upon discovery by Seller
of a breach of any of the representations and warranties set forth on Exhibit B to this Agreement, Seller shall give prompt
written notice thereof to Purchaser. Upon any such discovery by the Purchaser, the Purchaser will notify Seller. It is understood
and agreed that the representations and warranties set forth in Exhibit B to this Agreement with respect to the Purchased
Assets shall survive delivery of the respective Mortgage Files to the Purchaser or Custodian with respect to the Purchased Assets
and shall inure to the benefit of Purchaser. The fact that Purchaser has conducted or has failed to conduct any partial or complete
due diligence investigation in connection with their purchase of any Purchased Asset shall not affect Purchaser’s right to
demand repurchase or any other remedy as provided under this Agreement. Seller shall, within five (5) Business Days of the earlier
of Seller’s discovery or receipt of notice with respect to any Purchased Asset of (i) any breach of a representation or warranty
contained in Exhibit B of this Agreement or (ii) any failure to deliver any of the items required to be delivered as part
of the Mortgage File within the time period required for delivery pursuant to the Custodial and Disbursement Agreement, promptly
cure such breach or delivery failure in all material respects. If within five (5) Business Days after the earlier of Seller’s
discovery of such breach or delivery failure or receipt of notice thereof that such breach or delivery failure has not been remedied
by Seller, Seller shall promptly, upon receipt of written instructions from Purchaser, at Purchaser’s option, repurchase
such Purchased Asset at a purchase price equal to the Repurchase Price with respect to such Purchased Asset by wire transfer to
the account designated by the Purchaser.

 

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		16.	SERVICING OF THE MORTGAGE LOANS; SERVICER
TERMINATION

 

(a)Servicer
to Subservice.

 

(i)Upon
payment of the Purchase Price, the Purchaser shall own the servicing rights related to the Mortgage Loans including the Mortgage
File. Seller and Purchaser each agrees and acknowledges that the Mortgage Loans sold hereunder shall be sold to Purchaser on a
servicing-released basis, and that Purchaser is engaging and hereby does engage Servicer to provide subservicing of each Mortgage
Loan for the benefit of Purchaser.

 

(ii)So
long as a Mortgage Loan is outstanding, Servicer shall neither assign, encumber or pledge its obligation to subservice the Mortgage
Loans in whole or in part, nor delegate its rights or duties under this Agreement (to other than a subservicer) without the prior
written consent of Purchaser, the granting of which consent shall be in the sole discretion of Purchaser. Servicer hereby acknowledges
and agrees that (i) Purchaser is entering into this Agreement in reliance upon Servicer’s representations as to the adequacy
of its financial standing, servicing facilities, personnel, records, procedures, reputation and integrity, and the continuance
thereof; and (ii) Servicer’s engagement hereunder to provide mortgage servicing for the benefit of the Purchaser is intended
by the parties to be a “personal service contract” and Servicer is hereunder intended by the parties to be an “independent
contractor.”

 

(iii)Servicer
shall subservice and administer the Mortgage Loans on behalf of Purchaser in accordance with Accepted Servicing Practices. Servicer
shall have no right to modify or alter the terms of any Mortgage Loan or consent to the modification or alteration of the terms
of any Mortgage Loan except in Strict Compliance with the related Agency Program. Servicer shall at all times maintain accurate
and complete records of its servicing of the Mortgage Loans, and Agent may, at any time during Servicer’s business hours
on reasonable notice, examine and make copies of such Servicing Records. Servicer agrees that Purchaser is the 100% beneficial
owner of all Servicing Records relating to the Mortgage Loans. Servicer covenants to hold such Servicing Records for the benefit
of Purchaser and to safeguard such Servicing Records and to deliver them promptly to Agent or its designee (including the Custodian)
at Agent’s request or otherwise as required by operation of this Section 16.

 

(b)Servicing
Term. Servicer shall subservice such Mortgage Loans for a term of thirty (30) days commencing as of the related Purchase Date,
which term may be extended in writing by Purchaser in its sole discretion, for an additional thirty-day period (each, a “Servicing
Term”); provided, that Purchaser shall have the right to immediately terminate the Servicer at any time following the
occurrence of a Servicer Termination Event. If such Servicing Term is not extended by Purchaser or if Purchaser has terminated
Servicer as a result of a Servicer Termination Event, Servicer shall transfer such servicing to Purchaser or its designee at no
cost or expense to Purchaser as provided in Section 14(t). Servicer shall hold or cause to be held all Escrow Payments collected
with respect to the Mortgage Loans in segregated accounts for the sole benefit of the Mortgagor and shall apply the same for the
purposes for which such funds were collected. If Servicer should discover that, for any reason whatsoever, it has failed to perform
fully its servicing obligations with respect to the Mortgage Loans, Servicer shall promptly notify Purchaser.

 

    	 	48	 

     

    

 

(c)Servicing
Reports. Within three (3) Business Days after the end of each month, and as requested by Purchaser from time to time, Servicer
shall furnish to Purchaser reports in form and scope satisfactory to Purchaser, setting forth (i) data regarding the performance
of the individual Mortgage Loans subject to Transactions as of the last day of the prior calendar month, including, at a minimum,
unpaid principal balance, next payment due date, loan number, and borrower name; and (ii) any other information reasonably requested
by Purchaser or Agent.

 

(d)Backup Servicer.
Upon thirty (30) days written notice to Servicer and Seller (or immediately following the occurrence of an Event of Default or
a Servicer Termination Event), the Agent, in its sole discretion, may appoint a backup servicer at any time during the term of
this Agreement. In such event, Servicer shall commence monthly delivery to such backup servicer of the servicing information required
to be delivered to Purchaser pursuant to Section 16(d) hereof and any other information reasonably requested by backup servicer,
all in a format that is reasonably acceptable to such backup servicer. Purchaser shall pay all costs and expenses of such backup
servicer, including, but not limited to all fees of such backup servicer in connection with the processing of such information
and the maintenance of a servicing file with respect to the Purchased Assets. Servicer shall cooperate fully with such backup servicer
in the event of a transfer of servicing hereunder and will provide such backup servicer with all documents and information necessary
for such backup servicer to assume the servicing of the Purchased Assets.

 

(e)Collection
Account. Prior to the initial Purchase Date, Servicer shall establish and maintain a separate account (the “Collection
Account”) with the Bank in the Agent’s name for the sole and exclusive benefit of the Purchaser. Such account shall
be subject to the Collection Account Control Agreement. The Servicer shall deposit or credit to the Collection Account all amounts
collected on account of the Mortgage Loans within two (2) Business Days of receipt, and to remit such collections in accordance
with Section 16(f) hereof. Following the occurrence and during the continuance of an Event of Default, such amounts shall be deposited
or credited irrespective of any right of setoff or counterclaim arising in favor of Servicer (or any third party claiming through
it) under any other agreement or arrangement. Amounts on deposit in the Collection Account shall be distributed as provided in
Section 16(f).

 

(f)Income Payments.

 

(i)Where
a particular term of a Transaction extends over the date on which Income is paid in respect of any Purchased Asset subject to that
Transaction, (i) Seller shall deposit or cause to be deposited such Income into the Collection Account no later than two (2) Business
Days after receipt thereof, and (ii) such Income shall be the property of the Purchaser subject to subsections 16(f)(ii), (iii)
and (iv) below. The Collection Account shall be subject to the terms and conditions of the Collection Account Control Agreement.

 

    	 	49	 

     

    

 

(ii)Except
as otherwise provided in Section 16(f)(iv), on the Monthly Payment Date, Purchaser shall cause amounts deposited in the Collection
Account to be released to Seller, which amounts shall be applied by Seller to (A) reduce outstanding Price Differential due and
payable in respect of Purchased Assets for which the Purchaser has received the related Repurchase Price (other than Price Differential)
pursuant to Section 3(g) during the prior calendar month, (B) pay all other Obligations then due and payable to Purchaser, and
(C) release any excess to Seller.

 

(iii)Notwithstanding
anything herein or in the Collection Account Control Agreement to the contrary, Purchaser shall in no event cause amounts deposited
in the Collection Account to be released to Seller to the extent that such action would result in the creation of a Margin Deficit
(unless prior thereto or simultaneously therewith Seller cures such Margin Deficit in accordance with Section 7), or if an Event
of Default is then continuing. Further, if an uncured Margin Deficit exists as of such Monthly Payment Date, the Purchaser shall
cause the Bank to disburse the Income related to the Transaction for which the Margin Deficit exists to the Purchaser (up to the
amount of such Margin Deficit), which amounts shall be applied by the Purchaser to reduce the related Repurchase Price.

 

(iv)If
Successor Servicer takes delivery of such Mortgage Loans either under the circumstances set forth in Section 16(i) or otherwise,
all amounts deposited in the Custodial Account shall be paid to the Purchaser promptly upon such delivery.

 

(g)Reserved.

 

(h)Reserved.

 

(i)Servicer
Termination. Purchaser, in its sole discretion, may terminate Servicer’s rights and obligations as subservicer of the
affected Mortgage Loans and require Servicer to deliver the related Servicing Records to Purchaser or its designee upon the occurrence
of (i) an Event of Default or (ii) upon the expiration of the Servicing Term as set forth in Section 16(b) by delivering written
notice to Seller requiring such termination. Such termination shall be effective upon Servicer’s receipt of such written
notice; provided, that Servicer’s subservicing rights shall be terminated immediately upon the occurrence of
a Servicer Termination Event, regardless of whether notice of such event shall have been given to or by Purchaser or Servicer.
Upon any such termination, all authority and power of Servicer respecting its rights to subservice and duties under this Agreement
relating thereto, shall pass to and be vested in the successor servicer appointed by Purchaser (the “Successor Servicer”)
and Purchaser is hereby authorized and empowered to transfer such rights to subservice the Mortgage Loans for such price and on
such terms and conditions as Purchaser shall reasonably determine. Servicer shall promptly take such actions and furnish to Purchaser
such documents that Purchaser deems necessary or appropriate to enable Purchaser to enforce such Mortgage Loans and shall perform
all acts and take all actions so that the Mortgage Loans and all files and documents relating to such Mortgage Loans held by Servicer,
together with all escrow amounts relating to such Mortgage Loans, are delivered to Successor Servicer, including but not limited
to preparing, executing and delivering to the Successor Servicer any and all documents and other instruments, placing in the Successor
Servicer’s possession all Servicing Records pertaining to such Mortgage Loans and doing or causing to be done, all at Seller’s
sole expense. To the extent that the approval of the Applicable Agency is required for any such sale or transfer, Seller and Servicer
shall fully cooperate with Purchaser to obtain such approval. All amounts paid by any purchaser of such rights to service or subservice
the Mortgage Loans shall be the Property of Purchaser. The subservicing rights required to be delivered to Successor Servicer in
accordance with this Section 16(i) shall be delivered free of any servicing rights in favor of Seller or Servicer or any third
party (other than Purchaser) and free of any title, interest, lien, encumbrance or claim of any kind of Seller or Servicer other
than record title to the Mortgages relating to the Mortgage Loans and the right and obligation to repurchase the Mortgage Loans
hereunder. No exercise by Purchaser of its rights under this Section 16(i) shall relieve Seller or Servicer of responsibility
or liability for any breach of this Agreement.

 

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		17.	EVENTS OF DEFAULT

 

With respect to any
Transactions covered by or related to this Agreement, the occurrence of any of the following events shall constitute an “Event
of Default”:

 

(a)Seller fails
to transfer the Purchased Assets to the Purchaser on the applicable Purchase Date (provided the Purchaser has tendered the related
Purchase Price) and such failure is not cured within one (1) Business Day;

 

(b)Seller either
fails to repurchase the Purchased Assets on the applicable Repurchase Date or fails to perform its obligations under Section 7
or the last sentence of Section 15 and such failure is not cured within one (1) Business Day;

 

(c)Seller shall
fail to (i) remit to Purchaser when due any payment required to be made under the terms of this Agreement, any of the other Program
Documents or any other contracts or agreements delivered in connection herewith or therewith and such failure is not cured within
two (2) Business Days, or (ii) perform, observe or comply with any material term, condition, covenant or agreement contained in
this Agreement or any of the other Program Documents (other than the other “Events of Default” set forth in this Section
17) or any other contracts or agreements delivered in connection herewith or therewith, and such failure is not cured within the
time period expressly provided for therein, or, if no such cure period is provided, within three (3) Business Days of the earlier
of (x) Seller’s receipt of written notice from Purchaser or Custodian of such breach or (y) the date on which Seller obtains
notice or knowledge of the facts giving rise to such breach;

 

(d)Any representation
or warranty made by Seller, as the case may be, (or any of Seller’s officers) in the Program Documents or in any other document,
contract or agreement delivered in connection therewith, shall have been incorrect or untrue in any material respect when made
or repeated or deemed by the terms thereof to have been made or repeated (other than the representations or warranties in Section
13(m) or Exhibit B which shall be considered solely for the purpose of determining whether the related Purchased Asset
is an Eligible Mortgage Loan, unless (i) Seller shall have made any such representation or warranty with the knowledge that it
was materially false or misleading at the time made or repeated or deemed to have been made or repeated, or (ii) any such representation
or warranty shall have been determined by Purchaser in its sole discretion to be materially false or misleading on a regular basis);
provided however, that, if Seller discovers a breach of the representations and warranties in Section 37 relating specifically
to an Originator (other than Seller) and promptly notifies Purchaser in writing, Seller may cure such breach within three (3) Business
Days by (i) repurchasing all affected Purchased Assets involving such Originator, (ii) certifying to Purchaser that Seller shall
not request Purchaser to enter any additional Transaction with a Mortgage Loan involving such Originator, and (iii) cooperating
with any request from any of Purchaser’s regulators.

 

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(e)Seller, Guarantor,
or any of their respective Affiliates or Subsidiaries shall be in default under, or fail to perform as requested under, or shall
otherwise breach the material terms of any agreement relating to, in each case beyond any applicable cure period, (i) any Indebtedness
between (x) Seller or any of its Affiliates, or Guarantor’s guarantee, and (y) any Purchaser or any of Purchaser’s
Affiliates (such amount in excess of $1,000,000), or (ii) any other agreement relating to Indebtedness between Seller, Guarantor,
or any of their respective Affiliates or Subsidiaries on the one hand, and any Person, on the other hand (such amount in excess
of $10,000,000); or Seller, Guarantor or any of their respective Affiliates or Subsidiaries shall
be in default under, or fail to perform as requested under, or shall otherwise breach, beyond any applicable cure period, the terms
of this Agreement or any other agreement between Purchaser or any of its Affiliates or Subsidiaries and the Seller, Guarantor or
any of their respective Affiliates or Subsidiaries;

 

(f)Any Act of Insolvency
of the Seller, Guarantor or any of their respective Affiliates;

 

(g)Any final judgment
or order for the payment of money in excess of $5,000,000 in the aggregate (to the extent that it is, in the reasonable determination
of Purchaser, uninsured and provided that any insurance or other credit posted in connection with an appeal shall not be deemed
insurance for these purposes) shall be rendered against Guarantor or Seller or any of Seller’s or Guarantor’s Affiliates
by one or more courts, administrative tribunals or other bodies having jurisdiction over them and the same shall not be discharged
(or provisions shall not be made for such discharge) satisfied, or bonded, or a stay of execution thereof shall not be procured,
within sixty (60) days from the date of entry thereof and Seller, Guarantor, or any of Seller’s or Guarantor’s Affiliates,
as applicable, shall not, within said period of sixty (60) days, or such longer period during which execution of the same shall
have been stayed or bonded, appeal therefrom and cause the execution thereof to be stayed during such appeal;

 

(h)Any Governmental
Authority or any person, agency or entity acting or purporting to act under governmental authority (i) shall have taken any action
to condemn, seize or appropriate, or to assume custody or control of, all or any substantial part of the Property of Seller, Guarantor,
or any of Seller’s or Guarantor’s Affiliates, or shall have taken any action to displace the management of Seller,
Guarantor, or any of Seller’s or Guarantor’s Affiliates or to curtail its authority in the conduct of the business
of Seller, Guarantor, or any of Seller’s or Guarantor’s Affiliates, or (ii) takes any action in the nature of enforcement
to remove, limit or restrict the approval of Seller, Guarantor, or any of Seller’s or Guarantor’s Affiliates as an
issuer, Purchaser or a seller/servicer of Mortgage Loans or securities backed thereby;

 

    	 	52	 

     

    

 

(i)Seller or Guarantor
shall fail to comply with any of the applicable financial covenants set forth in Section 14(g)(ii);

 

(j)Any Material
Adverse Effect shall have occurred;

 

(k)This Agreement
shall for any reason cease to create a valid first priority security interest or ownership interest upon transfer in any material
portion of the Purchased Assets purported to be covered hereby;

 

(l)A Change in
Control of Seller or Guarantor shall have occurred that has not been approved by Agent;

 

(m)Purchaser or
Agent shall reasonably request, specifying the reasons for such request, reasonable information, and/or written responses to such
requests, regarding the financial well-being of Seller, and such reasonable information and/or responses shall not have been provided
within ten (10) Business Days of such request;

 

(n)A default by
Seller or any of its Affiliates or Subsidiaries shall have occurred and be continuing beyond the expiration of any applicable cure
periods under any material agreement (including, without limitation, the Program Documents and the EPF Program Documents) or any
other obligation entered into between such Person and Purchaser or any of its Affiliates, including the Loan Agreement;

 

(o)The Seller ceases
to be a member of MERS in good standing for any reason (unless MERS is no longer acting in such capacity);

 

(p)Change of Servicer
without consent of the Agent;

 

(q)A Servicer Termination
Event shall have occurred; provided that no Event of Default shall occur if, upon a Servicer Termination Event, a replacement servicer
reasonably acceptable to the Purchaser (i) is identified to Purchaser within thirty (30) days and (ii) replaces the Servicer within
sixty (60) days of such Servicer Termination Event;

 

(r)Parent Company’s
publicly traded stock is delisted or otherwise involuntarily removed from the New York Stock Exchange; or

 

(s)Parent Company’s
failure to file Form 10-K or Form 10-Q within the time frame required by the SEC, but in any case no later than 75 days after such
period end in the case of Form 10-K, and 40 days after such period end in the case of Form 10-Q.

 

		18.	REMEDIES

 

Upon the occurrence
of (i) an Event of Default (other than that referred to in Section 17(f)), the Purchaser, at its option, shall have the right to
exercise any or all of the following rights and remedies and (ii) an Event of Default referred to in Section 17(f), the following
rights and remedies shall immediately and automatically take effect without any further action by any Person.

 

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(a)(i)The
Repurchase Date for each Transaction hereunder shall, if it has not already occurred, be deemed immediately to occur (except that,
in the event that the Purchase Date for any Transaction has not yet occurred as of the date of such exercise or deemed exercise,
such Transaction shall be deemed immediately canceled). Seller’s Obligations hereunder to repurchase all Purchased Assets
at the Repurchase Price therefor on the Repurchase Date in such Transactions shall thereupon become immediately due and payable;
all Income paid after such exercise or deemed exercise shall be remitted to and retained by the Purchaser and applied to the aggregate
Repurchase Prices and any other amounts owing by Seller hereunder; Seller shall immediately deliver to Purchaser or its designee
any and all original papers, records and files relating to the Purchased Assets subject to such Transaction then in its possession
and/or control; and all right, title and interest in and entitlement to such Purchased Assets and Servicing Rights thereon shall
become Property of the Purchaser.

 

(ii)Purchaser
may (A) sell, on or following the Business Day following the date on which the Repurchase Price becomes due and payable pursuant
to Section 18(a)(i) without notice or demand of any kind, at a public or private sale and at such price or prices as Purchaser
may reasonably deem satisfactory, any or all or portions of the Purchased Assets on a servicing-released or servicing-retained
basis, as Purchaser may determine in its sole discretion and/or (B) in its sole discretion elect, in lieu of selling all or a portion
of such Purchased Assets, to give Seller credit for such Purchased Assets (including credit for the Servicing Rights in respect
of sales on a servicing-retained basis) in an amount equal to the Market Value of the Purchased Assets against the aggregate unpaid
Repurchase Price and any other amounts owing by Seller hereunder. Seller shall remain liable to Purchaser for any amounts that
remain owing to Purchaser following a sale and/or credit under the preceding sentence. The proceeds of any disposition of Purchased
Assets shall be applied first to the reasonable costs and expenses including but not limited to legal fees incurred by Purchaser
in connection with or as a result of an Event of Default; second to costs of cover and/or related hedging transactions;
third to the aggregate Repurchase Prices; and fourth to all other Obligations.

 

(iii)The
parties recognize that it may not be possible to purchase or sell all of the Purchased Assets on a particular Business Day, or
in a transaction with the same purchaser, or in the same manner because the market for such Purchased Assets may not be liquid.
In view of these characteristics of the Purchased Assets, the parties agree that liquidation of a Transaction or the underlying
Purchased Assets does not require a public purchase or sale and that a good faith private purchase or sale shall be deemed to have
been made in a commercially reasonable manner. Accordingly, Purchaser may elect the time and manner of liquidating any Purchased
Asset and nothing contained herein shall obligate Purchaser to liquidate any Purchased Asset upon the occurrence of an Event of
Default or to liquidate all Purchased Assets in the same manner or on the same Business Day or shall constitute a waiver of any
right or remedy of Purchaser. Notwithstanding the foregoing, the parties to this Agreement agree that the Transactions have been
entered into in consideration of and in reliance upon the fact that all Transactions hereunder constitute a single business and
contractual obligation and that each Transaction has been entered into in consideration of the other Transactions.

 

    	 	54	 

     

    

 

(iv)The
Purchaser may terminate the Agreement.

 

(b)Seller hereby
acknowledges, admits and agrees that Seller’s obligations under this Agreement are recourse obligations of Seller. In addition
to its rights hereunder, Purchaser shall have the right to proceed against any of Seller’s assets which may be in the possession
of Purchaser, any of Purchaser’s Affiliates or their designees (including the Custodian), including the right to liquidate
such assets and to set-off the proceeds against monies owed by Seller to Purchaser pursuant to this Agreement. Purchaser may set
off cash, the proceeds of the liquidation of the Purchased Assets and Additional Purchased Mortgage Loans and all other sums or
obligations owed by Purchaser to Seller or against all of Seller’s Obligations to Purchaser, or Seller’s obligations
to Purchaser under any other agreement among the parties, or otherwise, whether or not such obligations are then due, without prejudice
to Purchaser’s right to recover any deficiency.

 

(c)Purchaser shall
have the right to obtain physical possession of the Records and all other files of Seller relating to the Purchased Assets and
all documents relating to the Purchased Assets which are then or may thereafter come into the possession of Seller or any third
party acting for Seller and Seller shall deliver to the Purchaser such assignments as the Purchaser shall request.

 

(d)Purchaser shall
have the right to direct all Persons servicing the Purchased Assets to take such action with respect to the Purchased Assets as
Purchaser determines appropriate, including, without limitation, using its rights under a power of attorney granted pursuant to
Section 9(b) hereof.

 

(e)Purchaser shall,
without regard to the adequacy of the security for the Obligations, be entitled to the appointment of a receiver by any court having
jurisdiction, without notice, to take possession of and protect, collect, manage, liquidate, and sell the Purchased Assets or any
portion thereof, collect the payments due with respect to the Purchased Assets or any portion thereof, and do anything that Purchaser
is authorized hereunder to do. Seller shall pay all costs and expenses incurred by Purchaser in connection with the appointment
and activities of such receiver, and such shall be deemed part of the Obligations hereunder.

 

(f)Purchaser may,
at its option, enter into one or more hedging transactions covering all or a portion of the Purchased Assets, and Seller shall
be responsible for all damages, judgments, costs and expenses of any kind which may be imposed on, incurred by or asserted against
Purchaser relating to or arising out of such hedging transactions; including without limitation any losses resulting from such
hedging transactions, and such shall be deemed part of the Obligations hereunder.

 

(g)In addition
to all the rights and remedies specifically provided herein, Purchaser shall have all other rights and remedies provided by applicable
federal, state, foreign and local laws, whether existing at law, in equity or by statute, including, without limitation, all rights
and remedies available to a purchaser/secured party under the Uniform Commercial Code.

 

    	 	55	 

     

    

 

Except as otherwise
expressly provided in this Agreement, Purchaser shall have the right to exercise any of its rights and/or remedies without presentment,
demand, protest or further notice of any kind, other than as expressly set forth herein, all of which are hereby expressly waived
by Seller.

 

Purchaser may enforce
its rights and remedies hereunder without prior judicial process or hearing, and Seller hereby expressly waives, to the extent
permitted by law, any right Seller might otherwise have to require Purchaser to enforce its rights by judicial process. Seller
also waives, to the extent permitted by law, any defense Seller might otherwise have to the Obligations, or any guaranty thereof,
arising from use of nonjudicial process, enforcement and sale of all or any portion of the Purchased Assets or from any other election
of remedies. Seller recognizes that nonjudicial remedies are consistent with the usages of the trade, are responsive to commercial
necessity and are the result of a bargain at arm’s length.

 

Seller shall cause
all sums received by it with respect to the Purchased Assets to be deposited promptly upon receipt thereof but in no event later
than twenty-four (24) hours thereafter. Seller shall be liable to Purchaser for the amount of all losses, costs and/or expenses
(plus interest thereon at a rate equal to the Default Rate) which Purchaser may sustain or incur in connection with hedging transactions
relating to the Purchased Assets, conduit advances and payments for mortgage insurance.

 

		19.	DELAY NOT WAIVER; REMEDIES ARE CUMULATIVE

 

No failure on the part
of Purchaser to exercise, and no delay by Purchaser in exercising, any right, power or remedy hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise by Purchaser of any right, power or remedy hereunder preclude any other or further
exercise thereof or the exercise of any other right, power or remedy. All rights and remedies of Purchaser provided for herein
are cumulative and in addition to any and all other rights and remedies provided by law, the Program Documents and the other instruments
and agreements contemplated hereby and thereby, and are not conditional or contingent on any attempt by Purchaser to exercise any
of its rights under any other related document. Purchaser may exercise at any time after the occurrence of an Event of Default
one or more remedies permitted hereunder, as it so desires, and may thereafter at any time and from time to time exercise any other
remedy or remedies permitted hereunder.

 

		20.	USE OF EMPLOYEE PLAN ASSETS

 

No assets of an employee
benefit plan subject to any provision of ERISA shall be used by either party hereto in a Transaction.

 

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		21.	INDEMNITY

 

(a)Seller agrees
to indemnify and hold harmless Purchaser, Agent and their Affiliates and their respective officers, directors, employees, agents
and advisors (each, an “Indemnified Party”) from and against (and will reimburse each Indemnified Party as the
same is incurred within thirty (30) days following receipt of an invoice therefor) any and all claims, damages, losses, liabilities,
taxes, increased costs and all other expenses including reasonable out-of-pocket expenses (including, without limitation, reasonable
fees and expenses of outside counsel and audit and due diligence fees) that may be incurred by or asserted or awarded against any
Indemnified Party, in each case arising out of or in connection with or by reason of (including without limitation, in connection
with) (i) any investigation, litigation or other proceeding (whether or not such Indemnified Party is a party thereto) relating
to, resulting from or arising out of any of the Program Documents and all other documents related thereto, any breach by Seller
of any representation or warranty or covenant in this Agreement or any other Program Document, and all actions taken pursuant thereto,
(ii) the Transactions, the actual or proposed use of the proceeds of the Transactions, this Agreement or any of the transactions
contemplated thereby, including, without limitation, any acquisition or proposed acquisition, or any indemnity payable under the
servicing agreement or other servicing arrangement, (iii) the actual or alleged presence of hazardous materials on any Property
or any environmental action relating in any way to any Property, (iv) the actual or alleged violation of any federal, state, municipal
or local predatory lending laws, (v) notwithstanding anything herein to the contrary, a breach of any of Seller’s representations
and warranties found in Section 37(b) or (c), regardless of whether Seller cures such breach or (vi) the reduction
of the Principal Balance due to a cram down or similar action authorized by any bankruptcy proceeding or other case arising out
of or relating to any petition under the Bankruptcy Code, in each case, except to the extent such claim, damage, loss, liability
or expense is found in a final, non-appealable judgment by a court of competent jurisdiction to have resulted directly from such
Indemnified Party’s gross negligence or willful misconduct or is the result of a claim made by Seller against the Indemnified
Party, and Seller is ultimately the successful party in any resulting litigation or arbitration. Seller hereby agrees not to assert
any claim against Purchaser or any of its Affiliates, or any of their respective officers, directors, employees, attorneys and
agents, on any theory of liability, for special, indirect, consequential or punitive damages arising out of or otherwise relating
to the Program Documents, the actual or proposed use of the proceeds of the Transactions, this Agreement or any of the transactions
contemplated thereby. THE FOREGOING INDEMNITY AND AGREEMENT NOT TO ASSERT CLAIMS EXPRESSLY APPLIES, WITHOUT LIMITATION, TO THE
NEGLIGENCE (BUT NOT GROSS NEGLIGENCE OR WILLFUL MISCONDUCT) OF THE INDEMNIFIED PARTIES.

 

(b)If Seller fails
to pay when due any costs, expenses or other amounts payable by it under this Agreement, including, without limitation, reasonable
fees and expenses of counsel and indemnities, such amount may be paid on behalf of Seller by Purchaser, in its sole discretion
and Seller shall remain liable for any such payments by Purchaser and such amounts shall be deemed part of the Obligations hereunder.
No such payment by Purchaser shall be deemed a waiver of any of the Purchaser’s rights under the Program Documents.

 

(c)Without prejudice
to the survival of any other agreement of Seller hereunder, the covenants and obligations of Seller contained in this Section 21
shall survive the payment in full of the Repurchase Price and all other amounts payable hereunder and delivery of the Purchased
Assets by Purchaser against full payment therefor.

 

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		22.	WAIVER OF REDEMPTION AND DEFICIENCY
RIGHTS

 

Seller hereby expressly
waives, to the fullest extent permitted by law, every statute of limitation on a deficiency judgment, any reduction in the proceeds
of any Purchased Assets as a result of restrictions upon Purchaser or Custodian contained in the Program Documents or any other
instrument delivered in connection therewith, and any right that they may have to direct the order in which any of the Purchased
Assets shall be disposed of in the event of any disposition pursuant hereto.

 

		23.	REIMBURSEMENT; SET-OFF

 

(a)Seller agrees
to pay on demand all reasonable out-of-pocket costs and expenses of Purchaser in connection with the initial and subsequent negotiation,
modification, renewal and amendment of the Program Documents (including, without limitation, (A) all collateral review and UCC
search and filing fees and expenses and (B) the reasonable fees and expenses of outside counsel for Purchaser with respect to advising
Purchaser as to its rights and responsibilities, or the perfection, protection or preservation of rights or interests, under this
Agreement and any other Program Document, with respect to negotiations with Seller or with other creditors of Seller arising out
of any Default or any events or circumstances that may give rise to a Default and with respect to presenting claims in or otherwise
participating in or monitoring any bankruptcy, insolvency or other similar proceeding involving creditors’ rights generally
and any proceeding ancillary thereto). Notwithstanding the foregoing, and for the avoidance of doubt, Seller shall be responsible
for 100% of the Purchaser’s legal fees associated with the initial preparation of the Program Documents up to the first $50,000
(the “Fee Cap”). Seller agrees to pay on demand, with interest at the Default Rate to the extent that an Event
of Default has occurred, all costs and expenses, including without limitation, reasonable attorneys’ fees and disbursements
(and fees and disbursements of Purchaser’s outside counsel) expended or incurred by Purchaser and/or Custodian in connection
with the modification, renewal, amendment and enforcement (including any waivers) of the Program Documents (regardless of whether
a Transaction is entered into hereunder), the taking of any action, including legal action, required or permitted to be taken by
Purchaser (without duplication to Purchaser) and/or Custodian pursuant thereto or by refinancing or restructuring in the nature
of a “workout.” Further, Seller agrees to pay, with interest at the Default Rate to the extent that an Event of Default
has occurred, all costs and expenses, including without limitation, reasonable attorneys’ fees and disbursements (and fees
and disbursements of Purchaser’s outside counsel) expended or incurred by Purchaser in connection with (a) the rendering
of legal advice as to Purchaser’s rights, remedies and obligations under any of the Program Documents, (b) the collection
of any sum which becomes due to Purchaser under any Program Document, (c) any proceeding for declaratory relief, any counterclaim
to any proceeding, or any appeal, or (d) the protection, preservation or enforcement of any rights of Purchaser. For the purposes
of this Section 23(a), attorneys’ fees shall include, without limitation, fees incurred in connection with the following:
(1) discovery; (2) any motion, proceeding or other activity of any kind in connection with a bankruptcy proceeding or case arising
out of or relating to any petition under Title 11 of the United States Code, as the same shall be in effect from time to time,
or any similar law; (3) garnishment, levy, and debtor and third party examinations; and (4) post-judgment motions and proceedings
of any kind, including without limitation any activity taken to collect or enforce any judgment. Any and all of the foregoing amounts
referred to in this Section 23(a) shall be deemed a part of the Obligations hereunder. Without prejudice to the survival of any
other agreement of Seller hereunder, the covenants and obligations of Seller contained in this Section 23(a) shall survive the
payment in full of the Repurchase Price and all other amounts payable hereunder and delivery of the Purchased Assets by the Purchaser
against full payment therefor.

 

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(b)In addition
to any rights and remedies of Purchaser hereunder and at law, Purchaser and its Affiliates shall have the right, without prior
notice to Seller, any such notice being expressly waived by Seller to the extent permitted by applicable law, upon any amount becoming
due and payable (whether at the stated maturity, by acceleration or otherwise) by Seller hereunder or under any other agreement
(including, without limitation, the Mortgage Loan Participation Purchase and Sale Agreement) entered into between Seller or any
of its Affiliates on the one hand, and Purchaser or any of its Affiliates on the other hand, to set-off and appropriate and apply
against such amount any and all Property and deposits (general or special, time or demand, provisional or final), in any currency,
or any other credits, indebtedness or claims, in any currency, or any other collateral (in the case of collateral not in the form
of cash or such other marketable or negotiable form, by selling such collateral in a recognized market therefor or as otherwise
permitted by law or as may be in accordance with custom, usage or trade practice), in each case, whether direct or indirect, absolute
or contingent, matured or unmatured, at any time held or owing by the Purchaser or any Affiliate thereof to or for the credit or
the account of Seller or any of its Affiliates. Purchaser may also set-off cash and all other sums or obligations owed by the Purchaser
or its Affiliates to Seller or its Affiliates (whether under this Agreement or under any other agreement between the parties (including,
without limitation, the Mortgage Loan Participation Purchase and Sale Agreement) or between Seller or any of its Affiliates, on
the one hand, and Purchaser or any of its Affiliates, on the other) against all of Seller’s obligations to Purchaser or its
Affiliates (whether under this Agreement or under any other agreement (including, without limitation, the Mortgage Loan Participation
Purchase and Sale Agreement) between the parties or between Seller or any of its Affiliates, on the one hand, and Purchaser or
any of its Affiliates, on the other), whether or not such obligations are then due. The exercise of any such right of set-off shall
be without prejudice to Purchaser’s or its Affiliate’s right to recover any deficiency. Purchaser agrees to promptly
notify Seller after any such set-off and application made by Purchaser; provided that the failure to give such notice
shall not affect the validity of such set-off and application.

 

		24.	FURTHER ASSURANCES

 

Seller agrees to do
such further acts and things and to execute and deliver to Purchaser or Agent such additional assignments, acknowledgments, agreements,
powers and instruments as are reasonably required by Purchaser or Agent to carry into effect the intent and purposes of this Agreement,
to perfect the interests of Purchaser in the Purchased Assets or to better assure and confirm unto Purchaser its rights, powers
and remedies hereunder.

 

		25.	ENTIRE AGREEMENT; PRODUCT OF NEGOTIATION

 

This Agreement supersedes
and integrates all previous negotiations, contracts, agreements and understandings among the parties relating to a sale and repurchase
of Purchased Assets and Additional Purchased Mortgage Loans, and it, together with the other Program Documents, and the other documents
delivered pursuant hereto or thereto, contains the entire final agreement of the parties. No prior negotiation, agreement, understanding
or prior contract shall have any validity hereafter.

 

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		26.	TERMINATION

 

This Agreement shall
remain in effect until the Termination Date. However, no such termination shall affect Seller’s outstanding obligations to
Purchaser at the time of such termination. Seller’s obligations to indemnify Purchaser pursuant to this Agreement and the
other Program Documents shall survive the termination hereof.

 

		27.	REHYPOTHECATION; ASSIGNMENT

 

(a)Purchaser may,
in its sole election, and without the consent of the Seller engage in repurchase transactions with the Purchased Assets or otherwise
pledge, hypothecate, assign, transfer or otherwise convey the Purchased Assets with a counterparty of the Purchaser’s choice,
in all cases subject to the Purchaser’s obligation to reconvey the Purchased Assets (and not substitutes therefor) on the
Repurchase Date, all at no cost to the Seller. In the event Purchaser engages in a repurchase transaction with any of the Purchased
Assets or otherwise pledges or hypothecates any of the Purchased Assets, the Purchaser shall have the right to assign to the Purchaser’s
counterparty any of the applicable representations or warranties in Exhibit B to this Agreement and the remedies for breach
thereof, as they relate to the Purchased Assets that are subject to such repurchase transaction.

 

(b)The Program
Documents and the Seller’s rights and obligations thereunder are not assignable by Seller without the prior written consent
of the Purchaser. Any Person into which Seller may be merged or consolidated, or any corporation resulting from any merger, conversion
or consolidation to which Seller shall be a party, or any Person succeeding to the business of Seller, shall be the successor of
Seller hereunder, without the execution or filing of any paper or any further act on the part of any of the parties hereto, anything
herein to the contrary notwithstanding. Without any requirement for further consent of the Seller and at no cost or expense to
the Seller, each of the Purchaser and Agent may, in its sole election, assign or participate all or a portion of its rights and
obligations under this Agreement and the Program Documents with a counterparty of the Purchaser’s or Agent’s choice.
The Purchaser or Agent shall notify Seller of any such assignment and participation and shall maintain, for review by Seller upon
written request, a register of assignees and participants and a copy of any executed assignment and acceptance by the Purchaser
or Agent and assignee (“Assignment and Acceptance”), specifying the percentage or portion of such rights and
obligations assigned. The Seller agrees that, for any such permitted assignment, Seller will cooperate with the prompt execution
and delivery of documents reasonably necessary for such assignment process to the extent that Seller incurs no cost or expense
that is not paid by the Purchaser or Agent, as applicable. Upon such assignment, (a) such assignee shall be a party hereto and
to each Program Document to the extent of the percentage or portion set forth in the Assignment and Acceptance, and shall succeed
to the applicable rights and obligations of the Purchaser or Agent hereunder, and (b) the Purchaser or Agent shall, to the extent
that such rights and obligations have been so assigned by it to either (i) an Affiliate of the Purchaser or Agent which assumes
the obligations of the Purchaser or Agent hereunder or (ii) to another Person which assumes the obligations of the Purchaser or
Agent hereunder, be released from their obligations hereunder accruing thereafter and under the Program Documents.

 

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(c)The Purchaser
and Agent may distribute to any prospective assignee, participant or pledgee any document or other information delivered to the
Purchaser by Seller subject to the confidentiality restrictions contained in Section 35 hereof; accordingly, such prospective assignee,
participant or pledgee shall be required to agree to confidentiality provisions similar to those set forth in Section 35.

 

		28.	AMENDMENTS, ETC.

 

No amendment or waiver
of any provision of this Agreement nor any consent to any failure to comply herewith or therewith shall in any event be effective
unless the same shall be in writing and signed by Seller, Purchaser and Agent, and then such amendment, waiver or consent shall
be effective only in the specific instance and for the specific purpose for which given.

 

		29.	SEVERABILITY

 

If any provision of
any Program Document is declared invalid by any court of competent jurisdiction, such invalidity shall not affect any other provision
of the Program Documents, and each Program Document shall be enforced to the fullest extent permitted by law.

 

		30.	BINDING EFFECT; GOVERNING LAW

 

This Agreement shall
be binding and inure to the benefit of the parties hereto and their respective successors and assigns. This
Agreement and any claim, controversy or dispute arising under or related to or in connection with this Agreement, the relationship
of the parties, and/or the interpretation and enforcement of the rights and duties of the parties SHALL BE CONSTRUED IN
ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF
(EXCEPT FOR SECTION 5-1401 AND SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

 

		31.	WAIVER OF JURY TRIAL; CONSENT TO JURISDICTION
AND VENUE; SERVICE OF PROCESS

 

SELLER HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHTS TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING
OUT OF OR RELATING TO THIS AGREEMENT, THE PROGRAM DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. SELLER HEREBY
IRREVOCABLY AND UNCONDITIONALLY CONSENTS, ON BEHALF OF ITSELF AND ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF ANY COURT
OF THE STATE OF NEW YORK, OR IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, IN ANY ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THE PROGRAM DOCUMENTS IN ANY ACTION OR PROCEEDING. SELLER HEREBY SUBMITS TO, AND WAIVES ANY OBJECTION
IT MAY HAVE TO, NON-EXCLUSIVE PERSONAL JURISDICTION AND VENUE IN THE COURTS OF THE STATE OF NEW YORK AND THE UNITED STATES DISTRICT
COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, WITH RESPECT TO ANY DISPUTES ARISING OUT OF OR RELATING TO THE PROGRAM DOCUMENTS.
SELLER HEREBY IRREVOCABLY CONSENTS TO THE SERVICE OF A SUMMONS AND COMPLAINT AND OTHER PROCESS IN ANY ACTION, CLAIM OR PROCEEDING
BROUGHT BY ANOTHER PARTY IN CONNECTION WITH THIS AGREEMENT OR THE OTHER PROGRAM DOCUMENTS, ANY RIGHTS OR OBLIGATIONS HEREUNDER
OR THEREUNDER, OR THE PERFORMANCE OF SUCH RIGHTS AND OBLIGATIONS, ON BEHALF OF ITSELF OR ITS PROPERTY, IN THE MANNER SPECIFIED
IN THIS SECTION 31 AND TO SUCH PARTY’S ADDRESS SPECIFIED IN SECTION 34 OR SUCH OTHER ADDRESS AS SUCH PARTY SHALL HAVE PROVIDED
IN WRITING TO THE OTHER PARTIES HERETO. NOTHING IN THIS SECTION 31 SHALL AFFECT THE RIGHT OF ANY PARTY HERETO TO (I) SERVE LEGAL
PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW, OR (II) BRING ANY ACTION OR PROCEEDING AGAINST ANY OTHER PARTY OR ITS
PROPERTIES IN THE COURTS OF ANY OTHER JURISDICTIONS.

 

    	 	61	 

     

    

 

		32.	SINGLE AGREEMENT

 

Seller, Purchaser and
Agent acknowledge that, and have entered hereinto and will enter into each Transaction hereunder in consideration of and in reliance
upon the fact that, all Transactions hereunder constitute a single business and contractual relationship and have been made in
consideration of each other. Accordingly, Seller, Purchaser and Agent each agree (i) to perform all of its obligations in respect
of each Transaction hereunder, and that a default in the performance of any such obligations shall constitute a default by it in
respect of all Transactions hereunder, and (ii) that payments, deliveries and other transfers made by any of them in respect of
any Transaction shall be deemed to have been made in consideration of payments, deliveries and other transfers in respect of any
other Transaction hereunder, and the obligations to make any such payments, deliveries and other transfers may be applied against
each other and netted.

 

		33.	INTENT

 

Seller, Purchaser and
Agent recognize that each of the Transactions and this Agreement is a “repurchase agreement” as that term is defined
in Section 101 of the Bankruptcy Code, and a “securities contract” as that term is defined in Section 741 of the Bankruptcy
Code, or a “qualified financial contract” as that term is defined in the Federal Deposit Insurance Act, as applicable,
and a “master netting agreement” as that term is defined in Section 101 of the Bankruptcy Code.

 

It is understood that
Purchaser’s right to liquidate, the Purchased Assets and terminate and accelerate the Transactions and this Agreement or
to exercise any other remedies pursuant to Section 18 hereof is a contractual right to liquidate, terminate and accelerate the
Transactions under a repurchase agreement, a securities contract, a master netting agreement, and a qualified financial contract
as described in Sections 559, 555 and 561 of the Bankruptcy Code and Section 1821(e)(8)(A)(i) of the Federal Deposit Insurance
Act, as applicable, and a contractual right to offset under a master netting agreement and across contracts, as described in Section
561 of the Bankruptcy Code. It is understood that Seller’s right to accelerate the Repurchase Date with respect to the Purchased
Assets and any Transaction hereunder pursuant to Section 18 hereof is a contractual right to liquidate, terminate and accelerate
the Transactions under a repurchase agreement, a securities contract, a master netting agreement, and a qualified financial contract
as described in Sections 559, 555 and 561 of the Bankruptcy Code and Section 1821(e)(8)(A)(i) of the Federal Deposit Insurance
Act, as applicable.

 

    	 	62	 

     

    

 

The parties hereby
intend that any provisions hereof or in any other document, agreement or instrument that is related in any way to the servicing
of the individual Mortgage Loans shall be deemed “related to” this Agreement within the meaning of Sections 101(38A)(A)
and 101(47)(A)(v) of the Bankruptcy Code and part of the “contract” as such term is used in Section 741 of the
Bankruptcy Code.

 

		34.	NOTICES AND OTHER COMMUNICATIONS

 

Except as provided
herein, all notices required or permitted by this Agreement shall be in writing (including without limitation by Electronic Transmission,
email or facsimile) and shall be effective and deemed delivered only when received by the party to which it is sent; provided that
notices of Events of Default and exercise of remedies or under Sections 6 or 18 shall be sent via overnight mail and by electronic
transmission. Any such notice shall be sent to a party at the address, electronic mail or facsimile transmission number set forth
below:

 

	if to Seller:	PennyMac Loan Services, LLC
	 	6101 Condor Drive

Moorpark, CA 93021

Attention: Pamela Marsh/Kevin
Chamberlain

Telephone: (805) 330-6059/
(818) 746-2877

E-mail: pamela.marsh@pnmac.com; kevin.chamberlain@pnmac.com

	 	 
	if to Purchaser:	Barclays Bank PLC – Mortgage Finance
	 	745 Seventh Avenue, 4th Floor

New York, New York 10019

Attention: Joseph O’Doherty

Telephone: (212) 412-5517

Facsimile: (212) 412-7333

E-mail: Joseph.o’doherty@barclays.com

 

    	 	63	 

     

    

  

	 	With copies to:
	 	 
	 	Barclays Bank PLC – Legal Department

745 Seventh Avenue, 20th Floor

New York, New York 10019

Telephone: (212) 412-1494

Facsimile: (212) 412-1288

	 	 
	 	Barclays Capital – Operations

700 Prides Crossing

Newark, Delaware 19713

Attention: Brian Kevil

Telephone: (302) 286-1951

Facsimile: (646) 845-6464

Email: brian.kevil@barclays.com

	 	 
	if to Agent:	Barclays Bank PLC –
Mortgage Finance

745 Seventh Avenue,
4th Floor

New York, New York
10019

Attention: Ellen Kiernan

Telephone: (212) 412-7990

Facsimile: (212) 412-7333

E-mail: ellen.kiernan@barclays.com

	 	 
	 	With copies to:
	 	 
	 	Barclays Bank PLC – Legal Department

745 Seventh Avenue, 20th Floor

New York, New York 10019

Telephone: (212) 412-1494

Facsimile: (212) 412-1288

	 	 
	 	Barclays Capital – Operations

700 Prides Crossing

Newark, Delaware 19713

Attention: Brian Kevil

Telephone: (302) 286-1951

Facsimile: (646) 845-6464

Email: brian.kevil@barclays.com

	 	 
	if to Guarantor:	Private National Mortgage Acceptance Company,
LLC

6101 Condor Drive

Moorpark, CA 93021

Attention: Pamela Marsh/Kevin Chamberlain

Telephone: (805) 330-6059/ (818)
746-2877

E-mail: pamela.marsh@pnmac.com;
kevin.chamberlain@pnmac.com

 

 

    	 	64	 

     

    

 

or to such other address, e-mail address
or facsimile number as either party may notify to the others in writing from time to time.

 

		35.	CONFIDENTIALITY

 

Seller, Purchaser and
Agent each hereby acknowledge and agree that all written or computer-readable information provided by one party to the other in
connection with the Program Documents or the Transactions contemplated thereby, including without limitation, Seller’s Mortgagor
information in the possession of Purchaser (the “Confidential Terms”) shall be kept confidential and shall not
be divulged to any party without the prior written consent of such other party except for (i) disclosure to Seller’s direct
and indirect parent companies, directors, attorneys, agents or accountants, provided that such attorneys or accountants likewise
agree to be bound by this covenant of confidentiality, or are otherwise subject to confidentiality restrictions or (ii) with prior
(if feasible) written notice to Purchaser, disclosure required by law, rule, regulation or order of a court or other regulatory
body or (iii) with prior (if feasible) written notice to Purchaser, disclosure to any approved hedge counterparty to the extent
necessary to obtain any Hedge Instrument hereunder or (iv) with prior (if feasible) written notice to Purchaser, any disclosures
or filing required under Securities and Exchange Commission (“SEC”) or state securities’ laws; provided
that in the case of clause (iv), Seller shall not file the Pricing Side Letter. Notwithstanding anything herein to the contrary,
except as reasonably necessary to comply with applicable securities laws, each party (and each employee, representative, or other
agent of each party) may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of
the transaction and all materials of any kind (including opinions or other tax analyses) that are provided to it relating to such
tax treatment and tax structure. For this purpose, tax treatment and tax structure shall not include (i) the identity of any existing
or future party (or any Affiliate of such party) to this Agreement or (ii) any specific pricing information or other commercial
terms, including the amount of any fees, expenses, rates or payments arising in connection with the transactions contemplated by
this Agreement.

 

		36.	DUE DILIGENCE

 

Purchaser, Agent, Verification
Agent or any of their respective agents, representatives or permitted assigns shall have the right, upon reasonable prior notice
and during normal business hours, to conduct inspection and perform continuing due diligence reviews of (x) Seller and Guarantor
and their respective financial condition and performance of their obligations under the Program Documents, including the right
to gain reasonable access to any significant officers (including the CEO, CFO, President, Treasurer and any other officers deemed
by the Purchaser to be crucial to the business relating to this Agreement) and (y) the Servicing File and the Purchased Assets.
Seller agrees promptly to provide Purchaser, Verification Agent, Agent and their respective agents with access to, copies of and
extracts from any and all documents, records, agreements, instruments or information (including, without limitation, any of the
foregoing in computer data banks and computer software systems) relating to Seller’s and Guarantor’s respective business,
operations, servicing, financial condition, performance of their obligations under the Program Documents, the documents contained
in the Servicing Files or the Purchased Assets or assets proposed to be sold hereunder in the possession, or under the control,
of Seller. In addition, Seller shall also make available to Purchaser, Agent and/or Verification Agent, upon reasonable prior notice
and during normal business hours, a knowledgeable financial or accounting officer of Seller for the purpose of answering questions
respecting any of the foregoing. Without limiting the generality of the foregoing, Seller acknowledges that Purchaser shall enter
into transactions with Seller based solely upon the information provided by Seller to Purchaser, Agent and/or Verification Agent
and the representations, warranties and covenants contained herein, and that Purchaser and/or Agent, at its option, shall have
the right at any time to conduct itself or through its agents, or require Seller to conduct quality reviews and underwriting compliance
reviews of the individual Mortgage Loans at the expense of Seller. Any such diligence conducted by Purchaser, Agent and/or Verification
Agent shall not reduce or limit the Seller’s representations, warranties and covenants set forth herein. Seller agrees to
reimburse Purchaser, Agent and/or Verification Agent for all reasonable out-of-pocket due diligence costs and expenses incurred
pursuant to this Section 36.

 

    	 	65	 

     

    

 

		37.	USA PATRIOT ACT; OFAC AND ANTI-TERRORISM

 

Seller hereby represents
and warrants to Purchaser and Agent, and shall on and as of the Purchase Date for any Transaction and on and as of each date thereafter
through and including the related Repurchase Date be deemed to represent and warrant to Purchaser and Agent that:

 

(a)Each of Purchaser
and Agent hereby notifies the Seller that pursuant to the requirements of the USA PATRIOT Improvement and Reauthorization Act,
Title III of Pub. L. 109-177 (signed into law March 9, 2009) (the “Act”), it is required to obtain, verify,
and record information that identifies the Seller, which information includes the name and address of the Seller and other information
that will allow each of Purchaser and Agent, as applicable, to identify the Seller in accordance with the Act.

 

(b)(i) Neither
the Seller, nor the Parent Company nor any Originator is named on the list of Specifically Designated Nationals maintained by OFAC
or any similar list issued by OFAC (collectively, the “OFAC Lists”); (ii) no Person on the OFAC Lists owns a
50% or greater interest in, directly or indirectly, or otherwise controls, the Seller or the Parent Company; and (iii) to the best
of the knowledge of the Seller, none of the Purchaser or Agent is precluded, under the laws and regulations administered by OFAC,
from entering into this Agreement or any transactions pursuant to this Agreement with the Seller due to the ownership or control
by any person or entity of stocks, shares, bonds, debentures, notes, drafts or other securities or obligations of the Seller.

 

(c)(i) The Seller
will not conduct business with or engage in any transaction with any Obligor that the Seller knows or should reasonably be expected
to know that (x) is named on any of the OFAC Lists or (y) 50% or greater of the equity interests in such Obligor are owned by
a Person named on any OFAC List; (ii) if the Seller obtains actual knowledge or should reasonably be expected to know that any
Obligor is named on any of the OFAC Lists or that any Person named on an OFAC List owns a 50% or greater interest in an Obligor,
the Seller will give prompt written notice to the Purchaser and Agent of such fact or facts; and (iii) the Seller will (x) comply
at all times with the requirements of the Economic and Trade Sanctions and Anti-Terrorism Laws applicable to any transactions,
dealings or other actions relating to this Agreement, except to the extent such non-compliance does not result in a violation
of applicable law by any of the Purchaser or Agent and (y) will, upon the Purchaser’s or Agent’s reasonable request
from time to time during the term of this Agreement, deliver a certification confirming its compliance with the covenants set
forth in this Section 37.

 

    	 	66	 

     

    

 

		38.	GUARANTY

 

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

 

(b)The obligations
of the Guarantor hereunder are absolute and unconditional, irrespective of the value, genuineness, validity, regularity or enforceability
of this Agreement, or any other agreement or instrument referred to herein, to the fullest extent permitted by Applicable Law,
irrespective of any other circumstance whatsoever which might otherwise constitute a legal or equitable discharge or defense of
a surety or guarantor. Guarantor agrees that this guaranty may be enforced by Purchaser without the necessity at any time of resorting
to or exhausting any security or collateral and without the necessity at any time of having recourse to this Agreement or any other
Program Document or any collateral, if any, hereafter securing the Guaranteed Obligations or otherwise and Guarantor hereby waives
the right to require Purchaser to proceed against any other Person or to require the Purchaser to pursue any other remedy or enforce
any other right. Guarantor further agrees that nothing contained herein shall prevent Purchaser from suing in any jurisdiction
on this Agreement or any other Program Document or foreclosing its security interest in or Lien on any collateral, if any, securing
the Guaranteed Obligations or from exercising any other rights available to it under this Agreement or any instrument of security,
if any, and the exercise of any of the aforesaid rights and the completion of any foreclosure proceedings shall not constitute
a discharge of Guarantor’s obligations hereunder; it being the purpose and intent of Guarantor that its obligations hereunder
shall be absolute, independent and unconditional under any and all circumstances. Neither Guarantor’s obligations under this
guaranty nor any remedy for the enforcement thereof shall be impaired, modified, changed or released in any manner whatsoever by
reason of the application of the laws of any foreign jurisdiction. Guarantor waives any and all notice of the creation, renewal,
extension or accrual of any of the Guaranteed Obligations and notice of or proof of reliance of by Purchaser upon this guaranty
or acceptance of this guaranty. The Guaranteed Obligations, and any of them, shall conclusively be deemed to have been created,
contracted or incurred, or renewed, extended, amended or waived, in reliance upon this guaranty. All dealings between Seller and
Guarantor, on the one hand, and Purchaser, on the other hand, likewise shall be conclusively presumed to have been had or consummated
in reliance upon this guaranty.

 

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

 

    	 	67	 

     

    

 

(d)Guarantor expressly
waives to the fullest extent permitted by Applicable Law: (a) notice of acceptance of this guaranty by the Purchaser and of all
transfers of funds to Seller by Purchaser; (b) presentment and demand for payment or performance of any of the Guaranteed Obligations;
(c) protest and notice of dishonor or of default (except as specifically required in this Agreement) with respect to the Guaranteed
Obligations or with respect to any security therefor; (d) notice of Purchaser obtaining, amending, substituting for, releasing,
waiving or modifying any Lien, if any, hereafter securing the Guaranteed Obligations, or Purchaser’s subordinating, compromising,
discharging or releasing such Liens, if any; (e) all other notices to which Seller might otherwise be entitled in connection with
the guaranty evidenced by this Section 38; and (f) demand for payment under this guaranty.

 

(e)The obligations
of Guarantor under this Section 38 shall be automatically reinstated if and to the extent that for any reason any payment by or
on behalf of any Person in respect of the Guaranteed Obligations is rescinded or must be otherwise restored by any holder of any
of the Guaranteed Obligations, whether as a result of any proceedings in bankruptcy or reorganization or otherwise, and Guarantor
agrees that it will indemnify Purchaser on demand for all reasonable and documented costs and out-of-pocket expenses (including,
without limitation, reasonable and documented fees and expenses of counsel) incurred by Purchaser in connection with such rescission
or restoration, including any such costs and expenses incurred in defending against any claim alleging that such payment constituted
a preference, fraudulent transfer or similar payment under any bankruptcy, insolvency or similar law.

 

(f)Guarantor agrees
that, as between Guarantor, on the one hand, and Purchaser, on the other hand, the Guaranteed Obligations may be declared to be
forthwith due and payable as provided in Section 18 (and shall be deemed to have become automatically due and payable in the circumstances
provided in Section 18) notwithstanding any stay, injunction or other prohibition preventing such declaration (or preventing such
Guaranteed Obligations from becoming automatically due and payable) as against any other Person and that, in the event of such
declaration (or such Guaranteed Obligations being deemed to have become automatically due and payable), such Guaranteed Obligations
(whether or not due and payable by any other Person) shall forthwith become due and payable by Guarantor.

 

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

 

    	 	68	 

     

    

 

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

 

 

 

[SIGNATURE
PAGE FOLLOWS]

 

 

 

 

 

 

 

 

 

 

 

    	 	69	 

     

    

 

IN WITNESS WHEREOF,
Seller, Guarantor and Purchaser have caused their names to be signed to this Master Repurchase Agreement by their respective officers
thereunto duly authorized as of the date first above written.

 

PENNYMAC LOAN SERVICES, LLC, as Seller and Servicer

 

 

By: /s/ Pamela Marsh                                            

Name: Pamela Marsh

Title: Executive Vice President, Treasurer

 

 

 

BARCLAYS BANK PLC, as Purchaser and Agent

 

 

By: /s/ Ellen Kiernan                                            

Name: Ellen Kiernan

Title: Director

 

 

 

 

PRIVATE NATIONAL MORTGAGE

ACCEPTANCE COMPANY, LLC,
as Guarantor

 

 

By: /s/ Pamela Marsh                                            

Name: Pamela Marsh

Title: Executive Vice President, Treasurer

 

 

 

 

 

Signature Page to
Master Repurchase Agreement

     

     

    

 

EXHIBIT
A

 

CERTIFICATION

 

I, _______________________,
_______________________ of PennyMac Loan Services, LLC (the “Seller”), in accordance with that certain Master
Repurchase Agreement (“Agreement”), dated as of December 4, 2015, by and among Barclays Bank PLC, Seller and
Private National Mortgage Acceptance Company, LLC (“Guarantor”) do hereby certify that:

 

		(i)	To the best of my knowledge, no Default or Event of Default has occurred and is continuing;

 

		(ii)	Attached hereto as Schedule One is a schedule of any financial covenants that are more restrictive to Seller and/or
Guarantor or more favorable to Purchaser that the Seller and/or Guarantor is subject to under any agreement (other than this Agreement),
and a calculation which demonstrates compliance with each such financial covenant;

 

		(iii)	Seller and Guarantor have complied with each of the applicable covenants set forth in Section 14(g)(ii), as evidenced by the
worksheet attached hereto as Schedule Two;

 

		(iv)	Attached hereto as Attachment A is the Servicer’s HUD Compare Report, which is the report entitled “Neighborhood
Watch Early Warning System – Single Lender – Originator by Institution” and found at https://entp.hud.gov/sfnw/public/.
Such report shall be generated using the following criteria: Mortgagee Selections: “Originator by Institution;” Delinquent
Choices: “Seriously Delinquent;” and 2 Year Performance Period: “Data as of [END OF MOST RECENT PRIOR MONTH].”
and

 

		(v)	The Servicer’s HUD tier ranking as of the end of [insert immediately preceding month] is _______________.

 

 

 

[Signature Page Follows]

 

 

 

 

 

 

 

    	 	A-1	 

     

    

 

Capitalized terms used but not defined
herein shall have the meanings assigned thereto in the Agreement.

 

IN WITNESS WHEREOF,
I have signed this certificate.

 

Date:                               , 20[     ]

 

PENNYMAC LOAN SERVICES, LLC, as Seller and Servicer

 
 By: 
                                                                   

Name:
 Title:

 

 

PRIVATE NATIONAL MORTGAGE

ACCEPTANCE COMPANY, LLC, as
Guarantor

 

 

By: 
                                                                   

Name:

Title:

 

 

[SEAL]

 

I, ________________________,
___________________ of Seller, do hereby certify that _____________________ is the duly elected or appointed, qualified and acting
__________________of Seller, and the signature set forth above is the genuine signature of such officer on the date hereof.

 

 

 

 

 

    	 	A-2	 

     

    

 

SCHEDULE ONE TO EXHIBIT A

 

OTHER FINANCIAL COVENANTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	A-3	 

     

    

 

SCHEDULE
TWO TO EXHIBIT A

 

FINANCIAL COVENANTS WORKSHEET

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	A-4	 

     

    

 

EXHIBIT
B

 

REPRESENTATIONS
AND WARRANTIES

with respect to Mortgage Loans

 

Capitalized terms used
but not defined in this Exhibit B have the meanings assigned to such terms in the Master Repurchase Agreement dated as of
December 4, 2015 (the “Agreement”), by and among Barclays Bank PLC, (“Agent” or “Purchaser”),
Private National Mortgage Acceptance Company, LLC (“Guarantor”) and PennyMac Loan Services, LLC (“Seller”).
Seller hereby represents and warrants to the Purchaser and Agent that, for each Mortgage Loan as of the related Purchase Date and
the related Repurchase Date and on each date that such Mortgage Loan is subject to a Transaction:

 

(a)All information
provided to Purchaser by Seller, including, without limitation, the information set forth in the Seller Mortgage Loan Schedule,
with respect to the Mortgage Loan is true and correct in all material respects;

 

(b)Such Mortgage
Loan is an Eligible Mortgage Loan;

 

(c)Such Mortgage
Loan was owned solely by Seller, is not subject to any lien, claim or encumbrance not otherwise released in connection with the
related Transaction, including, without limitation, any such interest pursuant to a loan or credit agreement for warehousing mortgage
loans, and was originated or acquired by Seller from an Originator, underwritten and serviced in Strict Compliance (in respect
of Fannie Mae Mortgage Loans, Freddie Mac Mortgage Loans or Ginnie Mae Mortgage Loans) or Seller’s underwriting guidelines
(in respect of Jumbo Mortgage Loans), and has at all times remained in compliance with all applicable law and regulations, including
without limitation the Federal Truth-in-Lending Act, the Real Estate Settlement Procedures Act, regulations issued pursuant to
any of the aforesaid, and, in respect of Fannie Mae Mortgage Loans, Freddie Mac Mortgage Loans or Ginnie Mae Mortgage Loans, all
rules, requirements, guidelines and announcements of each Agency, and, as applicable, the FHA and VA, as the same may be amended
from time to time;

 

(d)The improvements
on the land securing such Mortgage Loan are and will be kept insured at all times by responsible insurance companies reasonably
acceptable to Purchaser and the Applicable Agency against fire and extended coverage hazards under policies, binders or certificates
of insurance with a standard mortgagee clause in favor of Seller and its assigns, providing that such policy may not be canceled
without prior notice to Seller. Any proceeds of such insurance shall be held in trust for the benefit of Purchaser. The scope and
amount of such insurance shall satisfy the rules, requirements, guidelines and announcements of the Applicable Agency, and shall
in all cases be at least equal to the lesser of (A) the principal amount of such Mortgage Loan or (B) the maximum amount permitted
by applicable law, and shall not be subject to reduction below such amount through the operation of a coinsurance, reduced rate
contribution or similar clause;

 

(e)Each Mortgage
is a valid first lien on the Mortgaged Property and is covered by an attorney’s opinion of title acceptable to the Applicable
Agency or by a policy of title insurance on a standard ALTA or similar lender’s form in favor of Seller and its assigns,
subject only to exceptions permitted by the applicable Agency Program. Seller shall hold for the benefit of Purchaser such policy
of title insurance, and, upon request of Purchaser, shall immediately deliver such policy to the Purchaser or to the Custodian
on behalf of the Purchaser;

 

    	 	B-1	 

     

    

 

(f)Such Mortgage
Loan (other than a Jumbo Mortgage Loan) is either (i) eligible to be insured by the FHA under the National Housing Act or guaranteed
by the VA under the Servicemen’s Readjustment Act of 1944 or (ii) with respect to Fannie Mae Mortgage Loans and Freddie Mac
Mortgage Loans, is otherwise eligible to be insured or guaranteed in accordance with the requirements of the applicable Agency
Program and, in either case, such Mortgage Loan is not subject to any defect that would prevent recovery in full or in part against
the FHA, VA or other insurer or guarantor, as the case may be;

 

(g)If such Mortgage
Loan is not a Modified Loan, a mortgage identification number (“MIN”) has been assigned by MERS and such MIN
is accurately provided on the Seller Mortgage Loan Schedule. If such Mortgage Loan is not a Modified Loan, either the Mortgage
is in favor of MERS or an Assignment of Mortgage to MERS has been duly and properly recorded or sent for recording;

 

(h)Seller has not
received any notice of liens or legal actions with respect to such Mortgage Loan and no such notices have been electronically posted
by MERS;

 

(i)Each Mortgage
Loan (other than a Jumbo Mortgage Loan) is eligible for sale to the Applicable Agency and fully complies with all of the terms
and conditions, including any covenants, representations and warranties, in the applicable Agency Guide and eligible for securitization
by and/or sale to Fannie Mae, Freddie Mac or eligible for inclusion in a Ginnie Mae MBS pool;

 

(j)There are no
restrictions, contractual or governmental, which would impair the ability of Seller from servicing the Mortgage Loans;

 

(k)The original
Mortgage in respect of each Mortgage Loan has been sent for recordation in the appropriate public recording office in the applicable
jurisdictions wherein such recordation is necessary to perfect the lien thereof as against creditors of the applicable Mortgagor;

 

(l)The Mortgagor
is one or more natural persons and/or trustees for an Illinois land trust or a trustee under a “living trust” and such
“living trust” is in compliance with Applicable Agency guidelines for such trusts;

 

(m)Reserved;

 

(n)No predatory,
abusive or deceptive lending practices, including but not limited to, the extension of credit to a Mortgagor without regard for
the Mortgagor’s ability to repay the Mortgage Loan and the extension of credit to a Mortgagor which has no tangible net benefit
to the Mortgagor, were employed in connection with the origination of the Mortgage Loan. Such Mortgage Loan is in compliance with
the anti-predatory lending eligibility for purchase requirements of the Fannie Mae Guide;

 

    	 	B-2	 

     

    

 

(o)On the Origination
Date the related Mortgagor’s FICO Score was equal to or greater than 600 (for this purpose, it being acknowledged that the
related Mortgagor shall be deemed to have a FICO Score of zero where no FICO Score is available) unless it is a part of (i) an
FHA and VA streamlined program for which a current FICO Score is not required for credit purposes or (ii) the U.S. Department of
the Treasury’s Home Affordable Refinance Program;

 

(p)If such Mortgage
Loan was pledged to another warehouse, credit, repurchase or other financing facility immediately prior to the related Purchase
Date, then (i) such pledge has been released immediately prior to, or concurrently with, the related Purchase Date hereunder and
(ii) Purchaser has received a Warehouse Lender’s Release Letter in respect of such Mortgage Loan;

 

(q)Such Mortgage
Loan has not been released from the possession of the Custodian under Section 5 of the Custodial and Disbursement Agreement to
Seller or its bailee for a period in excess of fifteen (15) calendar days (or if such fifteenth day is not a Business Day, the
next succeeding Business Day) or such earlier time period as indicated on the related Request for Release of Documents, unless
such Mortgage Loan has been released pursuant to an Attorney Bailee Letter;

 

(r)Reserved;

 

(s)Reserved;

 

(t)To the extent
such Mortgage Loan is not a Modified Loan, such Mortgage Loan is a MERS Designated Mortgage Loan;

 

(u)No Mortgage
Loan:

 

(A) that is a First
Mortgage Loan insured by the FHA or guaranteed by the VA (other than a HARP Mortgage Loan), has a Loan-to-Value Ratio on First
Mortgage Loans over 97.5% in the case of the FHA and the VA,

 

(B) that is any
other Mortgage Loan (other than a HARP Mortgage Loan or a Mortgage Loan originated as part of an FHA or VA streamlined program,
or a “Streamline Loan”) has a Loan-to-Value Ratio over 95%; provided that up to 1% of the Mortgage Loans
subject to this Agreement (other than a HARP Mortgage Loan or Streamline Loan) may have a Loan-to-Value Ratio that exceed 95%,
but are equal to or less than 97%,

 

(C) that is a Streamline
Loan program has a Loan-to-Value Ratio more than that permitted under such streamlined program; provided, that Streamline
Loans that require compliance with representations and warranties include an Agency waiver for any exceptions, and

 

(D) that is a HARP
Mortgage Loan has a Loan-to-Value Ratio other than that permitted under the U.S. Department of the Treasury’s Home Affordable
Refinance Program.

 

(v)With respect
to each Mortgage Loan that is a Wet-Ink Mortgage Loan, the Settlement Agent has been instructed in writing by Seller to hold the
related Mortgage File as agent and bailee for Purchaser or Agent and to promptly forward such Mortgage File in accordance with
the provisions of the Custodial and Disbursement Agreement and the Closing Protection Letter (if applicable);

 

    	 	B-3	 

     

    

 

 

(w)No Mortgage
Loan shall be a Mortgage Loan of a loan type deemed an unacceptable risk for any reason at the Purchaser’s discretion;

 

(x)Each Mortgage
Loan has been fully disbursed and is secured by a first lien on an underlying property as a “closed-end” Mortgage Loan
with no further disbursements required by any party;

 

(y)The Loan-to-Value
Ratio for each Jumbo Mortgage Loan is within the limits set forth in Seller’s underwriting guidelines attached hereto as
Exhibit I, as the same may be amended, supplemented or otherwise modified from time to time;

 

(z)The Mortgage
Loan is not secured by property located in (a) a state where the Seller is not licensed as a lender/mortgage banker or otherwise
exempt from any licensing requirement, or (b) a state that the Purchaser determines to be unacceptable;

 

(aa)The Mortgage
Loan has not been converted to an ownership interest in real property through foreclosure or deed-in-lieu of foreclosure;

 

(bb)The Mortgage
Loan relates to Mortgaged Property that consists of (i) a detached single family dwelling, (ii) a two-to-four family dwelling,
(iii) a one-family dwelling unit in a Freddie Mac eligible condominium project, (iv) a townhouse, or (v) a detached single family
dwelling in a planned unit development none of which is a cooperative or commercial property; and is not related to Mortgaged Property
that consists of (a) mixed use properties, (b) log homes, (c) earthen homes, (d) underground homes, (e) mobile homes or manufactured
housing units (whether or not secured by real property), (f) any dwelling situated on more than ten acres of property or (g) any
dwelling situated on a leasehold estate;

 

(cc)Such Mortgage
Loan is not a Restricted Mortgage Loan;

 

(dd)Except with
respect to Modified Loans, the related Mortgagor in respect of such Mortgage Loan shall not have been thirty (30) or more days
delinquent with respect to any Monthly Payment relating to such Mortgage Loan at any time during the twenty four (24) month period
prior to the related Purchase Date;

 

(ee)Reserved; and

 

(ff)The related
Mortgagor in respect of such Mortgage Loan shall have made its first scheduled Monthly Payment when it was due (inclusive of any
applicable grace period), unless such time frame has not occurred yet.

 

    	 	B-4	 

     

    

 

EXHIBIT
C

 

FORM
Of TRANSACTION NOTICE

 

[insert date]

 

Barclays Bank PLC

745 Seventh Avenue, 4th Floor

New York, New York 10019

Attention: Ellen Kiernan

 

		Re:	Master Repurchase Agreement, dated as of December 4, 2015, by and among Barclays Bank PLC (“Agent”
or “Purchaser”), Private National Mortgage Acceptance Company, LLC (“Guarantor”) and PennyMac
Loan Services, LLC (“Seller”)

 

Ladies/Gentlemen:

 

Reference is made to
the above-referenced Master Repurchase Agreement (the “Repurchase Agreement”; capitalized terms used but not otherwise
defined herein shall have the meaning given them in the Repurchase Agreement).

 

In accordance with Section 3(c)
of the Repurchase Agreement, the undersigned Seller hereby requests, and the Purchaser agrees to enter into a Transaction with
us, in connection with our delivery of Eligible Mortgage Loans and all related Servicing Rights, on ____________________ [insert
requested Purchase Date] (the “Purchase Date”), in connection with which we shall sell to you such Eligible
Mortgage Loans on the Seller Mortgage Loan Schedule attached hereto. The Principal Balance of the Eligible Mortgage Loans is $________
and the Purchase Price shall be ______ [insert applicable Purchase Price].

 

The Purchaser shall transfer
to the Seller an amount equal to $ _______ [insert amount which represents the Purchase Price net of any related Structuring Fee,
Transaction Fee or any other fees then due and payable by Seller to Purchaser pursuant to the Agreement]. Seller agrees to repurchase
such Purchased Asset on the Repurchase Date(s) at the Repurchase Price(s) set forth in the spreadsheet attached hereto as Schedule 1.

 

The Eligible Mortgage
Loans have the characteristics on the electronic file or computer tape or disc delivered by Seller to the Purchaser with respect
thereto in connection with this Transaction Notice.

 

The Seller hereby certifies,
as of such Purchase Date, that:

 

(1)no
Default or Event of Default has occurred and is continuing on the date hereof (or to the extent existing, shall be cured after
giving effect to such Transaction) nor will occur after giving effect to such Transaction as a result of such Transaction;

 

(2)each
of the representations and warranties made by the Seller in or pursuant to the Program Documents is true and correct in all material
respects on and as of such date as if made on and as of the date hereof (or, if any such representation or warranty is expressly
stated to have been made as of a specific date, as of such specific date);

 

    	 	C-1
	 

     

    

 

(3)the
Seller is in compliance with all governmental licenses and authorizations and are qualified to do business and are in good standing
in all required jurisdictions, except as would not be reasonably likely to have a Material Adverse Effect;

 

(4)Seller
has all requisite Approvals; and

 

(5)the
Seller has satisfied all applicable conditions precedent in Sections 10(a) and (b) of the Repurchase Agreement and all other requirements
of the Program Documents.

 

The undersigned duly
authorized officer of Seller further represents and warrants that (1) (a) with respect to the Eligible Mortgage Loans subject to
the Transaction requested herein that are not Wet-Ink Mortgage Loans, the documents constituting the Mortgage Files (as defined
in the Custodial and Disbursement Agreement) and (b) with respect to Eligible Mortgage Loans that are Wet-Ink Mortgage Loans, the
Transaction Notice and the Seller Mortgage Loan Schedule, in each case as more specifically identified on the Seller Mortgage Loan
Schedule delivered to the Purchaser and the Custodian in connection herewith (the “Receipted Assets”), have
been or are hereby submitted to Custodian and such required documents are to be held by the Custodian for the Purchaser, (2) all
other documents related to such Receipted Assets (including, but not limited to, mortgages, insurance policies, loan applications
and appraisals) have been or will be created and held by Seller for the Purchaser, (3) all documents related to such Receipted
Assets withdrawn from Custodian shall be held by Seller for the Purchaser, and (4) upon the Purchaser’s wiring of the Purchase
Price pursuant to Section 3(b) of the Repurchase Agreement, the Purchaser will have agreed to the terms of the Transaction
as set forth herein and purchased the Receipted Assets from the Seller.

 

Seller hereby represents
and warrants that (x) the Receipted Assets have a Principal Balance as of the date hereof of $__________ and (y) the number of
Receipted Assets is ______.

 

Very truly yours,

 

 

PENNYMAC LOAN SERVICES, LLC

 

 

 

By:                                                       

Name:
 Title:

 

 

 

 

 

 

    	 	C-2
	 

     

    

 

SCHEDULE
1 TO TRANSACTION NOTICE

 

LIST
OF REPURCHASE PRICES AND REPURCHASE DATES

 

 

 

[SEE
ATTACHMENT]

 

 

 

 

 

 

 

 

 

 

 

 

    	 	D-1
	 

     

    

 

EXHIBIT
D

 

FORM
OF GOODBYE LETTER

 

	«Primary_Borrower»	[_______] [__], 20[ ]

«Mailing_address_line_1»

«Mail_city», «Mail_state» «Mail_zip»

 

 

	RE:	Transfer of Mortgage Loan Servicing
	 	Mortgage Loan «Account_number»

 

Dear Customer:

 

[SELLER] is the present servicer of your
mortgage loan. Effective [Date] the servicing of your mortgage will be transferred to _______. This transfer does not affect the
terms and conditions of your mortgage, other than those directly related to servicing. Because of the change in servicer, we are
required to provide you with this disclosure.

 

[SELLER] cannot accept any payments received
after [Date]. Effective [Date], all payments are to be made to __________. Any payments received by [SELLER] after [Date] will
be forwarded to _________________. ___________________ will be contacting you shortly with payment instructions. Please make future
payments to:

 

________________________

Attn: ___________

[Address]

 

If you currently make payments by an automatic
checking or savings account deduction, that service will discontinue effective with the transfer date. After the servicing transfer,
you may request this service from _____________.

 

In [Date], you will receive a statement
from [SELLER] reflecting the amount, if any, of the interest and taxes paid on your behalf in 20[ ]. A similar statement will be
sent __________________ for the period beginning [Date] through year-end. Both statements must be added together for income tax
purposes.

 

If you have any questions concerning your
account through [Date], you should continue to contact [SELLER] , at <Seller’s Phone Number>, <HOURS OF OPERATION>.
Questions after the transfer date should be directed to ___________________Customer Service Department at 1-800-_____________,
Monday – Friday, 7 a.m. – 7 p.m. EST.

.

Sincerely,

Loan Servicing Department

[SELLER]

 

 

    	 	D-2
	 

     

    

 

NOTICE OF ASSIGNMENT, SALE OR TRANSFER

 

OF SERVICING RIGHTS

 

You are hereby notified that the servicing
of your mortgage loan, that is the right to collect payments from you, is being assigned, sold or transferred.

 

The assignment, sale or transfer of the
servicing of the mortgage loan does not affect any term or condition of the mortgage instruments, other than the terms directly
related to the servicing of your loan.

 

Except in limited circumstances, the law
requires that your present servicer send you a notice at least 15 days before the effective date, or at closing. Your new servicer
must also send you this notice no later than 15 days after this effective date.

 

This notification is a requirement of Section 6
of the Real Estate Settlement Procedures Act (RESPA) (12 U.S.C. 2605). You should also be aware of the following information, which
is set out in more detail in Section 6 of RESPA (12 U.S.C. 2605).

 

During the 60 day period following the
effective date of the transfer of the loan servicing, a loan payment received by your old servicer before its due date may not
be treated by the new loan servicer as late, and a late fee may not be imposed upon you.

 

Section 6 of RESPA (12 U.S.C. 2605)
gives you certain consumer rights. If you send a “qualified written request” to your loan servicer concerning
the servicing of your loan, your servicer must provide you with a written acknowledgement within 20 Business Days of receipt of
your request. A “qualified written request” is written correspondence, other than notice on a payment coupon
or other payment medium supplied by the servicer, which includes your name and account number and your reasons for the request.
If you want to send a “qualified written request” regarding the servicing of your loan, it must be sent to this
address:

 

___________________

[Address]

 

No later than 60 Business Days after receiving
your request, your servicer must make any appropriate corrections to your account, and must provide you with a written clarification
regarding any dispute. During this 60 Business Day period, your servicer may not provide information to a consumer reporting agency
concerning any overdue payment related to such period or qualified written request. However, this does not prevent the servicer
from initiating foreclosure if proper grounds exist under the mortgage documents.

 

A Business Day is any day excluding legal
public holidays (State or federal), Saturday and Sunday.

 

Section 6 of RESPA also provides for
damages and costs for individuals or classes of individuals, in circumstances where servicers are shown to have violated the requirements
of that Section. You should seek legal advice if you believe your rights have been violated.

 

    	 	D-3
	 

     

    

 

MIRANDA DISCLOSURE – For your protection,
please be advised that we are attempting to collect a debt and any information obtained will be used for that purpose. Calls will
be monitored and recorded for quality assurance purposes. If you do not wish for your call to be recorded please notify the customer
service associate when calling.

 

BANKRUPTCY INSTRUCTION – Attention
to any customer in Bankruptcy or who has received a bankruptcy discharge of this debt. Please be advised that this letter constitutes
neither a demand for payment of the captioned debt nor a notice of personal liability to any recipient hereof who might have received
a discharge of such debt in accordance with applicable bankruptcy laws or who might be subject to the automatic stay of Section 362
of the United States Bankruptcy Code. However, it may be a notice of possible enforcement of our lien against the collateral property,
which has not been discharged in your bankruptcy.

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	D-4
	 

     

    

 

EXHIBIT
E

 

FORM
OF WAREHOUSE LENDER’S RELEASE

 

 

(Date)

 

Barclays Bank PLC – Mortgage
Finance

745 Seventh Avenue, 4th Floor

New York, New York 10019

Attention: Joseph O’Doherty

 

Barclays Bank PLC – Legal Department

745 Seventh Avenue, 20th Floor

New York, New York 10019

Attention: General Counsel

 

Barclays Capital – Operations

700 Prides Crossing

Newark, Delaware 19713

Attention: Brian Kevil

 

PennyMac Loan Services, LLC

6101 Condor Drive

Moorpark, CA 93021

Attention: Brian Stack

 

Re:Certain Assets Identified on Schedule
A hereto and owned by PennyMac Loan Services, LLC

 

Capitalized terms used
herein but not defined herein shall have the meanings ascribed to such terms in the Master Repurchase Agreement, dated as of December
4, 2015 (the “Repurchase Agreement”), among Barclays Bank PLC, Private National Mortgage Acceptance Company, LLC and
PennyMac Loan Services, LLC.

 

The undersigned hereby
releases all right, interest, lien or claim of any kind with respect to the mortgage loans described in the attached Schedule
A, such release to be effective automatically without any further action by any party upon receipt in the account identified
below in immediately available funds of $__________________, representing a loan count of _________, and unpaid principal balance
of ______________in accordance with the following wire instructions:

 

[                                                  ]

 

Very truly yours,

[WAREHOUSE LENDER]

By:                                                         

Name:

Title:

 

 

 

 

 

 

 

 

    	 	E-1
	 

     

    

 

[Schedule
A to exhibit E – List of Assets to be Released]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	E-2
	 

     

    

 

EXHIBIT F

 

LIST
OF APPROVED MEMBERS OF THE MORTGAGE BACKED SECURITIES DIVISION OF THE FIXED INCOME CLEARING CORPORATION

 

Jefferies & Company, Inc.

Fannie Mae

Freddie Mac

Citigroup Global Markets Inc.

The Bank of New York Mellon

Barclays Capital, Inc.

Cantor Fitzgerald & Co.

JPMorgan Chase Bank, National Association

RBS Securities Inc.

Daiwa Capital Markets America Inc.

UBS Securities LLC

Morgan Stanley & Co. LLC

Nomura Securities International, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	F-1
	 

     

    

 

EXHIBIT
G

 

form
of CLOSING PROTECTION LETTER

 

 

[Attached]

 

 

 

 

 

 

 

 

 

 

 

 

    	 	G-1
	 

     

    

 

EXHIBIT
H

 

form
of SELLER mortgage loan schedule

 

 

[to
be provided by barclays]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	H-1
	 

     

    

 

EXHIBIT I

 

 

SELLER’S UNDERWRITING GUIDELINES

 

TO BE PROVIDED BY SELLER

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	I-1

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