Document:

Form of Master Servicing Agreement

 Exhibit 10.2 

  
 [WELLS FARGO] 
 as Master Servicer, 
  
 [ISSUER] 
 as Issuer 
  
 and 
  
 [INDENTURE TRUSTEE], 
 as Indenture Trustee 
  

  
 MASTER SERVICING AGREEMENT 
  
 Dated as of [DATE] 
  

  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 ARTICLE I
	  	 DEFINITIONS
	  	1
			
	 Section 1.01
	  	 Definitions
	  	1
			
	 Section 1.02
	  	 Other Definitional Provisions
	  	1
			
	 Section 1.03
	  	 Interest Calculations
	  	2
			
	 ARTICLE II
	  	 REPRESENTATIONS AND WARRANTIES
	  	2
			
	 Section 2.01
	  	 Representations and Warranties Regarding the Master Servicer
	  	2
			
	 Section 2.02
	  	 Representations and Warranties of the Issuer
	  	4
			
	 Section 2.03
	  	 Enforcement of Representations and Warranties
	  	4
			
	 ARTICLE III
	  	 ADMINISTRATION AND SERVICING OF MORTGAGE LOANS
	  	5
			
	 Section 3.01
	  	 The Master Servicer
	  	5
			
	 Section 3.02
	  	 Collection of Certain Mortgage Loan Payments
	  	8
			
	 Section 3.03
	  	 Withdrawals from the Custodial Account
	  	11
			
	 Section 3.04
	  	 Maintenance of Hazard Insurance; Property Protection Expenses
	  	12
			
	 Section 3.05
	  	 Modification Agreements; Release of Lien
	  	14
			
	 Section 3.06
	  	 Trust Estate; Related Documents
	  	14
			
	 Section 3.07
	  	 Realization Upon Defaulted Mortgage Loans; Loss Mitigation
	  	15
			
	 Section 3.08
	  	 Issuer and Indenture Trustee to Cooperate
	  	17
			
	 Section 3.09
	  	 Servicing Compensation; Payment of Certain Expenses by Master Servicer
	  	18
			
	 Section 3.10
	  	 Annual Statement as to Compliance
	  	18
			
	 Section 3.11
	  	 Annual Servicing Report
	  	19
			
	 Section 3.12
	  	 Access to Certain Documentation and Information Regarding the Mortgage Loans
	  	19
			
	 Section 3.13
	  	 Maintenance of Certain Servicing Insurance Policies
	  	19
			
	 Section 3.14
	  	 Information Required by the Internal Revenue Service and Reports of Foreclosures and Abandonments of Mortgaged Property
	  	19
			
	 Section 3.15
	  	 Optional Repurchase or Transfer of Mortgage Loans
	  	20
			
	 Section 3.16
	  	 Enforcement of Due-on-Sale Clauses; Assumption and Modification Agreements; Certain Assignments
	  	20
			
	 ARTICLE IV
	  	 SERVICING CERTIFICATE
	  	21
			
	 Section 4.01
	  	 Statements to Securityholders
	  	21
			
	 Section 4.02
	  	 Tax Returns and 1934 Act Reports
	  	24

  

 ii 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 ARTICLE V
	  	 NOTE PAYMENT ACCOUNT
	  	25
			
	 Section 5.01
	  	 Note Payment Account
	  	25
			
	 ARTICLE VI
	  	 THE MASTER SERVICER
	  	25
			
	 Section 6.01
	  	 Liability of the Master Servicer
	  	25
			
	 Section 6.02
	  	 Merger or Consolidation of, or Assumption of the Obligations of, the Master Servicer
	  	25
			
	 Section 6.03
	  	 Limitation on Liability of the Master Servicer and Others
	  	26
			
	 Section 6.04
	  	 Master Servicer Not to Resign
	  	26
			
	 Section 6.05
	  	 Delegation of Duties
	  	27
			
	 Section 6.06
	  	 Payment of Indenture Trustee’s and Owner Trustee’s Fees and Expenses; Indemnification
	  	27
			
	 ARTICLE VII
	  	 DEFAULT
	  	29
			
	 Section 7.01
	  	 Servicing Default
	  	29
			
	 Section 7.02
	  	 Indenture Trustee to Act; Appointment of Successor
	  	30
			
	 Section 7.03
	  	 Notification to Securityholders
	  	32
			
	 ARTICLE VIII
	  	 MISCELLANEOUS PROVISIONS
	  	33
			
	 Section 8.01
	  	 Amendment
	  	33
			
	 Section 8.02
	  	 GOVERNING LAW
	  	33
			
	 Section 8.03
	  	 Notices
	  	33
			
	 Section 8.04
	  	 Severability of Provisions
	  	33
			
	 Section 8.05
	  	 Third-Party Beneficiaries
	  	34
			
	 Section 8.06
	  	 Counterparts
	  	34
			
	 Section 8.07
	  	 Effect of Headings and Table of Contents
	  	34
			
	 Section 8.08
	  	 Termination Upon Purchase by the Master Servicer or Liquidation of All Mortgage Loans; Partial Redemption
	  	34
			
	 Section 8.09
	  	 Certain Matters Affecting the Indenture Trustee
	  	35
			
	 Section 8.10
	  	 Owner Trustee Not Liable for Related Documents
	  	35
			
	 Section 8.11
	  	 No Petition
	  	35

  

			
	EXHIBIT A – MORTGAGE LOAN SCHEDULE	  	A-1
		
	EXHIBIT B – LIMITED POWER OF ATTORNEY	  	B-1
		
	EXHIBIT C – FORM OF REQUEST FOR RELEASE	  	C-1

  

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 This Master Servicing Agreement, dated as of [DATE] (the “Agreement”), is among [WELLS FARGO],
as master servicer (the “Master Servicer”), [ISSUER], as issuer (the “Issuer”), and [INDENTURE TRUSTEE], as indenture trustee (the “Indenture Trustee”). 
  
 WITNESSETH: 
  
 WHEREAS, pursuant to the terms of the Purchase Agreement (as defined herein), [SELLER], as seller (the “Seller”) will sell to SG Mortgage
Securities, LLC, as purchaser (in such capacity, the “Purchaser”), the Mortgage Loans on the Closing Date, together with the Related Documents on the Closing Date; 
  
 WHEREAS, SG Mortgage Securities, LLC, as depositor (in such capacity, the “Depositor”), will sell the Mortgage
Loans and assign all of its rights under the Purchase Agreement to the Issuer, together with the Related Documents on the Closing Date; 
  
 WHEREAS, pursuant to the terms of the Trust Agreement, the Issuer will issue the Certificates; 
  
 WHEREAS, pursuant to the terms of the Indenture, the Issuer will issue the
Notes; and 
  
 WHEREAS, pursuant to the terms of this Agreement,
[WELLS FARGO], as master servicer (the “Master Servicer”), will service the Mortgage Loans directly or through one or more Subservicers. 
  
 NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties hereto agree as follows: 
  
 ARTICLE I 
  
 Definitions 
  
 Section 1.01 Definitions. For all purposes of this Agreement, except as otherwise expressly provided herein or unless the context otherwise
requires, capitalized terms not otherwise defined herein shall have the meanings assigned to such terms in the Definitions contained in Appendix A to the Indenture dated as of [DATE] (the “Indenture”), between the Issuer and the Indenture
Trustee, which is incorporated by reference herein. All other capitalized terms used herein shall have the meanings specified herein. 
  
 Section 1.02 Other Definitional Provisions. 
  

	 	(a)	All terms defined in this Agreement shall have the defined meanings when used in any certificate or other document made or delivered pursuant hereto unless otherwise defined
therein. 

  

	 	(b)	 As used in this Agreement and in any certificate or other document made or delivered pursuant hereto or thereto, accounting terms not defined in this Agreement or
in any such certificate or other document, and accounting terms partly defined in this Agreement or in any such certificate or other document, to 

  

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the extent not defined, shall have the respective meanings given to them under generally accepted accounting principles. To the extent that the definitions
of accounting terms in this Agreement or in any such certificate or other document are inconsistent with the meanings of such terms under generally accepted accounting principles, the definitions contained in this Agreement or in any such
certificate or other document shall control. 

  

	 	(c)	The words “hereof,” “herein,” “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to
any particular provision of this Agreement; Section and Exhibit references contained in this Agreement are references to Sections and Exhibits in or to this Agreement unless otherwise specified; the term “including” shall mean
“including without limitation”; “or” shall include “and/or”; and the term “proceeds” shall have the meaning ascribed thereto in the UCC. 

  

	 	(d)	The definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms and to the masculine as well as the feminine and neuter genders
of such terms. 

  

	 	(e)	Any agreement, instrument or statute defined or referred to herein or in any instrument or certificate delivered in connection herewith means such agreement, instrument or statute
as from time to time amended, modified or supplemented and includes (in the case of agreements or instruments) references to all attachments thereto and instruments incorporated therein; references to a Person are also to its permitted successors
and assigns. 

  
 Section 1.03 Interest
Calculations. All calculations of interest hereunder that are made in respect of the Principal Balance of a Mortgage Loan shall be made on a daily basis using a 365-day year. All calculations of interest on the Class A-[1] Notes shall be made on
the basis of the actual number of days in an Interest Period and a year assumed to consist of 360 days. All calculations of interest on the Class A-[2] Notes and the Class A-[IO] Notes shall be made on the basis of a 30-day month and a year assumed
to consist of 360 days. The calculation of the Servicing Fee shall be made on the basis of a 360-day year consisting of twelve 30-day months. All dollar amounts calculated hereunder shall be rounded to the nearest penny with one-half of one penny
being rounded up. 
  
 ARTICLE II 
  
 Representations and Warranties 
  
 Section 2.01 Representations and Warranties Regarding the Master
Servicer. The Master Servicer represents and warrants to the Issuer and for the benefit of the Indenture Trustee, as pledgee of the Mortgage Loans, as of the Closing Date: 
  

	 	(a)	 the Master Servicer is a corporation duly organized, validly existing and in good standing under the laws of the State of [__________] and has the corporate power
to own its assets and to transact the business in which it is currently engaged. The 

  

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Master Servicer is duly qualified to do business as a foreign corporation and is in good standing in each jurisdiction in which the character of the business
transacted by it or properties owned or leased by it requires such qualification and in which the failure to so qualify would have a material adverse effect (not in the ordinary course of business) on the business, properties, assets, or condition
(financial or other) of the Master Servicer; 

  

	 	(b)	the Master Servicer has the power and authority to make, execute, deliver and perform this Agreement and all of the transactions contemplated under this Agreement, and has taken all
necessary corporate action to authorize the execution, delivery and performance of this Agreement. When executed and delivered, this Master Servicing Agreement will constitute the legal, valid and binding obligation of the Master Servicer
enforceable in accordance with its terms, except as enforcement of such terms may be limited by ruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally and by the availability of equitable remedies;

  

	 	(c)	the Master Servicer is not required to obtain the consent of any other Person or any consent, license, approval or authorization from, or registration or declaration with, any
governmental authority, bureau or agency in connection with the execution, delivery, performance, validity or enforceability of this Agreement, except for such consent, license, approval or authorization, or registration or declaration, as shall
have been obtained or filed, as the case may be; 

  

	 	(d)	the execution and delivery of this Agreement and the performance of the transactions contemplated hereby by the Master Servicer will not violate any material provision of any
existing law or regulation or any order or decree of any court applicable to the Master Servicer or any provision of the Articles of Incorporation or Bylaws of the Master Servicer, or constitute a material breach of any material mortgage, indenture,
contract or other agreement to which the Master Servicer is a party or by which the Master Servicer may be bound; 

  

	 	(e)	no litigation or administrative proceeding of or before any court, tribunal or governmental body is currently pending, or to the knowledge of the Master Servicer threatened, against
the Master Servicer or any of its properties or with respect to this Agreement or the Securities which in the opinion of the Master Servicer has a reasonable likelihood of resulting in a material adverse effect on the transactions contemplated by
this Agreement; 

  

	 	(f)	[the Master Servicer is a member of MERS in good standing, and will comply in all material respects with the rules and procedures of MERS in connection with the servicing of the
Mortgage Loans that are registered with MERS; and] 

  

	 	(g)	the servicing of the Mortgage Loans has at all times been conducted in material compliance with all applicable federal, state and local laws, rules and regulations, and there has
been no material violation of any such laws, rules or regulations arising out of the servicing of the Mortgage Loans. 

  

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 The foregoing representations and warranties shall survive any termination of the Master Servicer
hereunder. 
  
 Section 2.02 Representations and Warranties of
the Issuer. The Issuer hereby represents and warrants to the Master Servicer and for the benefit of the Indenture Trustee, as pledgee of the Mortgage Loans, as of the Closing Date: 
  

	 	(a)	the Issuer is a statutory trust duly formed and in good standing under the laws of the State of Delaware and has full power, authority and legal right to execute and deliver this
Agreement and to perform its obligations under this Agreement, and has taken all necessary action to authorize the execution, delivery and performance by it of this Agreement; and 

  

	 	(b)	the execution and delivery by the Issuer of this Agreement and the performance by the Issuer of its obligations under this Agreement will not violate any provision of any law or
regulation governing the Issuer or any order, writ, judgment or decree of any court, arbitrator or governmental authority or agency applicable to the Issuer or any of its assets. Such execution, delivery, authentication and performance will not
require the authorization, consent or approval of, the giving of notice to, the filing or registration with, or the taking of any other action with respect to, any governmental authority or agency regulating the activities of statutory trusts. Such
execution, delivery, authentication and performance will not conflict with, or result in a breach or violation of, any mortgage, deed of trust, lease or other agreement or instrument to which the Issuer is bound. 

  
 Section 2.03 Enforcement of Representations and Warranties. The Master
Servicer, on behalf of and subject to the direction of the Indenture Trustee, as pledgee of the Mortgage Loans, or the Issuer, shall enforce the representations and warranties of the Seller pursuant to the Purchase Agreement. Upon the discovery by
the Seller, the Depositor, the Master Servicer, the Indenture Trustee, the Enhancer, the Issuer, or the Custodian of a breach of any of the representations and warranties made by the Seller in the Purchase Agreement, in respect of any Mortgage Loan
which materially and adversely affects the interests of the Securityholders or the Enhancer, the party discovering such breach shall give prompt written notice to the other parties (the Custodian being so obligated under the Custodial Agreement).
The Master Servicer shall promptly notify the Seller of such breach and request that, pursuant to the terms of the Purchase Agreement, the respective party either (i) cure such breach in all material respects within 90 days from the date such party
was notified of such breach, or in the case of a breach which has the effect of making the Mortgage Loan fail to be a “qualified mortgage” within the meaning of Section 860G of the Internal Revenue Code, within 90 days after the discovery
thereof by the Seller, the Depositor, the Master Servicer, the Indenture Trustee, the Enhancer, the Issuer or the Purchaser or (ii) purchase such Mortgage Loan from the Issuer at the price and in the manner set forth in Section 3.1(d) of the
Purchase Agreement; provided, that the Seller shall, subject to the conditions set forth in the Purchase Agreement, have the option to substitute an Eligible Substitute Loan or Loans for such Mortgage Loan, provided that such substitution occurs
within two years following the Closing Date. In the event that the Seller elects to substitute one or more Eligible Substitute Loans pursuant to Section 3.1(d) of the Purchase Agreement, the Seller shall 

  

 4 

 
deliver to the Custodian or the Master Servicer, in accordance with the Purchase Agreement, with respect to such Eligible Substitute Loans, the original
Mortgage Note, the Mortgage, and such other documents and agreements as are required by the Purchase Agreement. Payments due with respect to Eligible Substitute Loans in the month of substitution shall not be transferred to the Issuer and will be
retained by the Master Servicer and remitted by the Master Servicer to such party on the next succeeding Payment Date except to the extent that a payment less than the applicable Monthly Payment has been received by the Issuer for such month in
respect of the Mortgage Loan to be removed. The Master Servicer shall amend or cause to be amended the Mortgage Loan Schedule to reflect the removal of such Mortgage Loan and the substitution of the Eligible Substitute Loans and the Master Servicer
shall promptly deliver the amended Mortgage Loan Schedule to the Owner Trustee and Indenture Trustee. 
  
 It is understood and agreed that the obligation of the Seller to cure such breach or purchase or substitute for such Mortgage Loan as to which such a
breach has occurred and is continuing shall constitute the sole remedy respecting such breach available to the Issuer and the Indenture Trustee, as pledgee of the Mortgage Loans, against the Seller. In connection with the purchase of or substitution
for any such Mortgage Loan by the Seller, the Issuer shall assign to such party all of its right, title and interest in respect of the Purchase Agreement applicable to such Mortgage Loan. Upon receipt of the Repurchase Price, or upon completion of
such substitution, the Master Servicer shall notify the Custodian, and the Custodian shall deliver the Mortgage Notes to the Master Servicer, together with all relevant endorsements and assignments prepared by the Master Servicer that the Indenture
Trustee shall execute. 
  
 ARTICLE III 
  
 Administration and Servicing of Mortgage Loans 
  
 Section 3.01 The Master Servicer. 
  

	 	(a)	 The Master Servicer shall service and administer the Mortgage Loans in a manner generally consistent with the terms of the Program Guide and in a manner consistent
with the terms of this Agreement and that shall be normal and usual in its general mortgage servicing activities and consistent with the manner in which it services all other Mortgage Loans in its servicing portfolio with characteristics similar to
those of the Mortgage Loans. The Master Servicer shall have full power and authority, acting alone or through a Subservicer, to do any and all things in connection with such servicing and administration which it may deem necessary or desirable, it
being understood, however, that the Master Servicer shall at all times remain responsible to the Issuer and the Indenture Trustee, as pledgee of the Mortgage Loans, for the performance of its duties and obligations hereunder in accordance with the
terms hereof and the Program Guide. Without limiting the generality of the foregoing, the Master Servicer shall continue, and is hereby authorized and empowered by the Issuer and the Indenture Trustee, as pledgee of the Mortgage Loans, to execute
and deliver, on behalf of itself, the Issuer, the Indenture Trustee or any of them, any and all instruments of satisfaction or cancellation, or of partial or full release or discharge and all other comparable instruments with respect to the Mortgage
Loans and the Mortgaged 

  

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Properties. The Issuer, the Indenture Trustee and the Custodian, as applicable, shall furnish the Master Servicer with any powers of attorney and other
documents necessary or appropriate to enable the Master Servicer to carry out its servicing and administrative duties hereunder. In addition, the Master Servicer may, at its own discretion and on behalf of the Indenture Trustee, obtain credit
information in the form of a “credit score” from a credit repository. On the Closing Date, the Indenture Trustee shall deliver to the Master Servicer a limited power of attorney substantially in the form of Exhibit B hereto. [The Master
Servicer is further authorized and empowered by the Issuer and the Indenture Trustee, on behalf of the Noteholders and the Indenture Trustee, in its own name or in the name of the Subservicer, when the Master Servicer or the Subservicer, as the case
may be, believes it appropriate in its best judgment to register any Mortgage Loan on the MERS® System, or cause the removal from the registration of any Mortgage Loan on the MERS® System, to execute and deliver, on behalf of the Indenture Trustee and the Noteholders or any of them, any and all instruments of assignment and other
comparable instruments with respect to such assignment or re-recording of a Mortgage in the name of MERS, solely as nominee for the Indenture Trustee and its successors and assigns.] Any expenses incurred in connection with the actions described in
the preceding sentence shall be borne by the Master Servicer, with no right of reimbursement. 

  
 Notwithstanding the foregoing, subject to Section 3.02(a), the Master Servicer shall not permit any modification with respect to any Mortgage Loan that
would both constitute a sale or exchange of such Mortgage Loan within the meaning of Section 1001 of the Code and any proposed, temporary or final regulations promulgated thereunder and cause either REMIC I, REMIC II, or REMIC III to fail to
qualify as a REMIC under the Code or, except as provided in Section 11.01(f) of the Indenture, cause the imposition of a tax upon either of the REMICs (including but not limited to the tax on prohibited transactions as defined in Section 860F(a)(2)
of the Code and the tax on contributions to a REMIC set forth in Section 860G(d) of the Code). 
  
 If the Mortgage did not have a Lien senior to the related Mortgage Loan on the related Mortgaged Property as of the related Cut-Off Date, then the Master Servicer, in such capacity, may not consent to the placing of a
Lien senior to that of the Mortgage on the related Mortgaged Property. If the Mortgage had a Lien senior to the related Mortgage Loan on the related Mortgaged Property as of the related Cut-Off Date, then the Master Servicer, in such capacity, may
not consent to the refinancing of such prior senior Lien. 
  
 The
relationship of the Master Servicer (and of any successor to the Master Servicer as master servicer under this Agreement) to the Issuer under this Agreement is intended by the parties to be that of an independent contractor and not that of a joint
venturer, partner or agent. 
  

	 	(b)	 The Master Servicer may enter into Subservicing Agreements with Subservicers for the servicing and administration of certain of the Mortgage Loans. The Master
Servicer shall provide notice to the Indenture Trustee upon entering into a Subservicing Agreement. References in this Agreement to actions taken or to be taken by the Master Servicer in servicing the Mortgage Loans include actions taken or to be
taken by a Subservicer on behalf of the Master Servicer and any 

  

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amount actually received by such Subservicer in respect of a Mortgage Loan shall be deemed to have been received by the Master Servicer whether or not
actually received by the Master Servicer. Each Subservicing Agreement will be upon such terms and conditions as are not inconsistent with this Agreement and as the Master Servicer and the Subservicer have agreed. With the approval of the Master
Servicer, a Subservicer may delegate its servicing obligations to third-party servicers, but such Subservicers will remain obligated under the related Subservicing Agreements. The Master Servicer and the Subservicer may enter into amendments to the
related Subservicing Agreements; provided, however, that any such amendments shall not cause the Mortgage Loans to be serviced in a manner that would be materially inconsistent with the standards set forth in this Agreement. The Master Servicer
shall be entitled to terminate any Subservicing Agreement in accordance with the terms and conditions thereof and without any limitation by virtue of this Agreement; provided, however, that in the event of termination of any Subservicing Agreement
by the Master Servicer or the Subservicer, the Master Servicer shall either act as servicer of the related Mortgage Loan or enter into a Subservicing Agreement with a successor Subservicer which will be bound by the terms of the related Subservicing
Agreement. The Master Servicer shall be entitled to enter into any agreement with a Subservicer for indemnification of the Master Servicer and nothing contained in this Agreement shall be deemed to limit or modify such indemnification.

  
 In the event that the rights, duties and
obligations of the Master Servicer are terminated hereunder, any successor to the Master Servicer in its sole discretion may, to the extent permitted by applicable law, terminate the existing Subservicing Agreement with any Subservicer in accordance
with the terms of the applicable Subservicing Agreement or assume the terminated Master Servicer’s rights and obligations under such subservicing arrangements which termination or assumption will not violate the terms of such arrangements.

  
 As part of its servicing activities hereunder, the Master
Servicer, for the benefit of the Indenture Trustee, the Enhancer and the Securityholders, shall use reasonable efforts to enforce the obligations of each Subservicer under the related Subservicing Agreement, to the extent that the non-performance of
any such obligation would have a material adverse effect on a Mortgage Loan. Such enforcement, including, without limitation, the legal prosecution of claims, termination of Subservicing Agreements and the pursuit of other appropriate remedies,
shall be in such form and carried out to such an extent and at such time as the Master Servicer, in its good faith business judgment, would require were it the owner of the related Mortgage Loans. The Master Servicer shall pay the costs of such
enforcement at its own expense, and shall be reimbursed therefor only (i) from a general recovery resulting from such enforcement to the extent, if any, that such recovery exceeds all amounts due in respect of the related Mortgage Loan or (ii) from
a specific recovery of costs, expenses or attorneys fees against the party against whom such enforcement is directed. 
  

	 	(c)	 All other documents contained in the Mortgage File and any original documents relating to the Mortgage Loans not contained in the Mortgage File or delivered to

  

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the Custodian, if any, or the Indenture Trustee are and shall be held by the Master Servicer in trust as agent for the Indenture Trustee on behalf of the
Noteholders. 

  
 Section 3.02 Collection of
Certain Mortgage Loan Payments. 
  

	 	(a)	The Master Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the Mortgage Loans, and shall, to the extent such procedures
shall be consistent with this Agreement and generally consistent with the Program Guide, follow such collection procedures as shall be normal and usual in its general mortgage servicing activities and consistent with the procedures the Master
Servicer employs in servicing all other Mortgage Loans in the servicing portfolio with characteristics similar to those of the Mortgage Loans. Consistent with the foregoing, and without limiting the generality of the foregoing, the Master Servicer
may in its discretion (i) waive any late payment charge, penalty interest or other fees which may be collected in the ordinary course of servicing a Mortgage Loan and (ii) arrange with a Mortgagor a schedule for the payment of principal and interest
due and unpaid; provided, that such arrangement is consistent with the Master Servicer’s policies with respect to home equity mortgage loans; and provided further, that notwithstanding such arrangement, such Mortgage Loans will be included in
the information regarding delinquent Mortgage Loans set forth in the Servicing Certificate. The Master Servicer may also extend the Due Date for payment due on a Mortgage Loan in accordance with the Program Guide; provided, however, that the Master
Servicer shall first determine that any such waiver or extension will not impair the coverage of any related insurance policy or materially adversely affect the Lien of the related Mortgage or the interests of the Securityholders or the Enhancer and
the Master Servicer shall not grant any such waiver or extension that would have any such effect. Consistent with the terms of this Agreement, the Master Servicer may also: 

  

	 	(i)	waive, modify or vary any term of any Mortgage Loan; 

  

	 	(ii)	consent to the postponement of strict compliance with any such term or in any manner grant indulgence to any Mortgagor; 

  

	 	(iii)	arrange with a Mortgagor a schedule for the payment of principal and interest due and unpaid; 

  

	 	(iv)	forgive any portion of the amounts contractually owed under the Mortgage Loan; 

  

	 	(v)	 capitalize past due amounts owed under the Mortgage Loan by adding any amounts in arrearage to the existing principal balance of the Mortgage Loan (a
“Capitalization Workout”) which will result in an increased Monthly Payment amount, provided that: (A) the amount added to the existing principal balance of the Mortgage Loan (the “Capitalized Amount”) shall be no greater than
five times the Mortgagor’s current 

  

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Monthly Payment amount; and (B) the Master Servicer shall not enter into a Capitalization Workout unless the CLTV of the Mortgage Loan prior to the
Capitalization Workout equals or exceeds 80% and the Mortgagor has qualified for the Capitalization Workout under the Master Servicer’s servicing guidelines; or 

  

	 	(vi)	reset the maturity date for the Mortgage Loan, but in no event shall such reset date extend beyond the end of the Collection Period preceding the Final Payment Date;

  
 or any combination of the foregoing, if in the Master
Servicer’s determination such waiver, modification, postponement or indulgence is not materially adverse to the interests of the Securityholders or the Enhancer; provided, however, that the Master Servicer may not modify or permit any
Subservicer to modify any Mortgage Loan (including without limitation any modification that would change the Loan Rate, forgive the payment of any principal or interest (unless in connection with the liquidation of the related Mortgage Loan) or
extend the final maturity date of such Mortgage Loan) unless such Mortgage Loan is in default or, in the judgment of the Master Servicer, such default is reasonably foreseeable. The general terms of any waiver, modification, forgiveness,
postponement or indulgence with respect to any of the Mortgage Loans will be included in the Servicing Certificate, and such Mortgage Loans will not be considered “delinquent” for the purposes of the Basic Documents so long as the
Mortgagor complies with the terms of such waiver, modification, forgiveness, postponement or indulgence. 
  

	 	(b)	The Master Servicer shall establish a Custodial Account, which shall be an Eligible Account, titled “[ISSUER] Home Loan Asset-Backed Notes Series ___”, in which the Master
Servicer shall deposit or cause to be deposited any amounts representing payments and collections in respect of the Mortgage Loans received by it subsequent to or on the Cut-Off Date (other than in respect of the payments referred to in the
following paragraph), within two Business Days following receipt thereof (or otherwise on or prior to the Closing Date), including the following payments and collections received or made by it (without duplication): 

  

	 	(i)	all payments of principal of or interest on the Mortgage Loans received or advanced by the Master Servicer, net of any portion of the interest thereof retained by any Subservicer as
subservicing fees; 

  

	 	(ii)	the aggregate Repurchase Price of the Mortgage Loans purchased by the Master Servicer pursuant to Section 3.15 hereof; 

  

	 	(iii)	Net Liquidation Proceeds, net of any related Foreclosure Profit and all Subsequent Net Recovery Amounts; 

  

	 	(iv)	all proceeds of any Mortgage Loans repurchased by the Seller pursuant to the Purchase Agreement, and all Substitution Adjustment Amounts required to be deposited in connection with
the substitution of an Eligible Substitute Loan pursuant to the Purchase Agreement; 

  

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	 	(v)	Insurance Proceeds, other than Net Liquidation Proceeds, resulting from any insurance policy maintained on a Mortgaged Property; and 

  

	 	(vi)	amounts required to be paid by the Master Servicer pursuant to Section 8.08 hereof; 

  
 provided, however, that with respect to each Collection Period, the Master Servicer shall be permitted to retain from payments in respect of
interest on the Mortgage Loans, the Servicing Fee for such Collection Period. Notwithstanding the foregoing, the Master Servicer may, in accordance with its normal servicing procedures, hold payments by a Mortgagor representing partial payments of a
Monthly Payment that are not applied to principal or interest on the Mortgage Loans in a separate account, which shall be an Eligible Account, until such amounts are applied by the Master Servicer to principal or interest on the Mortgage Loans. At
such time, the Master Servicer shall deposit such amounts into the Custodial Account and apply such amounts as payments of principal or interest on the Mortgage Loans, as applicable. The foregoing requirements respecting deposits to the Custodial
Account are exclusive, it being understood that, without limiting the generality of the foregoing, the Master Servicer need not deposit in the Custodial Account amounts representing Foreclosure Profits, fees (including annual fees) or late charge
penalties, payable by Mortgagors (such amounts to be retained as additional servicing compensation in accordance with Section 3.09 hereof), or amounts received by the Master Servicer for the accounts of Mortgagors for application towards the payment
of taxes, insurance premiums, assessments and similar items. In the event any amount not required to be deposited in the Custodial Account is so deposited, the Master Servicer may at any time withdraw such amount from the Custodial Account, any
provision herein to the contrary notwithstanding. The Master Servicer shall retain all Foreclosure Profits as additional servicing compensation. 
  
 The Master Servicer, in its sole discretion, may deposit into the Custodial Account amounts representing installments of principal of or interest on
Mortgage Loans that were delinquent as of the end of any Collection Period, provided that the Master Servicer reasonably believes that such amounts will be recoverable from Collections on the related Mortgage Loan. If the Master Servicer makes any
such advances of delinquent principal and/or interest, the Master Servicer shall be entitled to reimburse itself by withdrawing from the Custodial Account, as provided herein, any amounts so advanced. The Master Servicer may cause the institution
maintaining the Custodial Account to invest any funds in the Custodial Account in Permitted Investments (including obligations of the Master Servicer or any of its Affiliates, if such obligations otherwise qualify as Permitted Investments), which
investments shall mature not later than the Business Day preceding the next succeeding Payment Date, and which investments shall not be sold or disposed of prior to maturity. In addition, no such Permitted Investment shall be purchased at a price in
excess of par. Except as provided above, all income and gain realized from any such investment shall inure to the benefit of the Master Servicer and shall be subject to its withdrawal or order from time to time. The amount of any losses incurred in
respect of the principal amount of any such investments shall be deposited in the Custodial Account by the Master Servicer out of its own funds immediately as realized. 
  

	 	(c)	 The Master Servicer shall require each Subservicer to hold all funds constituting collections on the Mortgage Loans, pending remittance thereof to the Master

  

 10 

	 	 
Servicer, in one or more accounts meeting the requirements of an Eligible Account, and shall require all such funds to be invested in Permitted Investments,
unless all such collections are remitted on a daily basis to the Master Servicer for deposit into the Custodial Account. 

  
 Section 3.03 Withdrawals from the Custodial Account. The Master Servicer shall, from time to time as provided herein, make withdrawals from the
Custodial Account of amounts on deposit therein pursuant to Section 3.02 hereof that are attributable to the Mortgage Loans for the following purposes: 
  

	 	(a)	on each Determination Date, the Master Servicer shall determine the aggregate amounts to be withdrawn from the Custodial Account and applied pursuant to Section 3.05(a) of the
Indenture and, prior to the close of business on the Business Day prior to the related Payment Date (provided, however, that the Indenture Trustee shall not be required to invest any amounts deposited into the Note Payment Account after 1:00 p.m.),
shall withdraw such amounts from the Custodial Account and deposit such amounts into the Note Payment Account to be distributed by the Paying Agent in accordance with and in the order or priority set forth in Section 3.05(a) of the Indenture for
such Payment Date, in accordance with the Servicing Certificate; 

  

	 	(b)	to pay to itself from any monthly payments received from the Mortgagors, the amount of such payment that represents interest accrued on the related Mortgage Loan for any period
prior to the Cut-Off Date; 

  

	 	(c)	to the extent deposited to the Custodial Account, to reimburse itself or the related Subservicer for previously unreimbursed expenses incurred in maintaining individual insurance
policies pursuant to Section 3.04, or Liquidation Expenses, paid pursuant to Section 3.07 or otherwise reimbursable pursuant to the terms of this Agreement (to the extent not payable pursuant to Section 3.09), such withdrawal right being limited to
amounts received on particular Mortgage Loans (other than any Repurchase Price in respect thereof) that represent late recoveries of the payments for which such advances were made, or from related Net Liquidation Proceeds or the proceeds of the
purchase of such Mortgage Loan; 

  

	 	(d)	to pay to itself out of each payment received on account of interest on a Mortgage Loan as contemplated by Section 3.09, an amount equal to the related Servicing Fee and the
Recovery Fee (to the extent not retained pursuant to Section 3.02 or Section 3.07), and to pay to any Subservicer any subservicing fees not previously withheld by such Subservicer; 

  

	 	(e)	to the extent deposited in the Custodial Account, to pay to itself as additional servicing compensation any (i) interest or investment income earned on funds deposited in the
Custodial Account that it is entitled to withdraw pursuant to Sections 3.02(b) and 5.01, and (ii) Foreclosure Profits (to the extent permitted by law); 

  

 11 

	 	(f)	to pay to itself or the related Seller, with respect to any Mortgage Loan or property acquired in respect thereof that has been purchased or otherwise transferred to such Seller,
the Master Servicer or other entity, all amounts received thereon and not required to be distributed to Securityholders as of the date on which the related Purchase Price or Repurchase Price is determined; 

  

	 	(g)	to withdraw any other amount deposited in the Custodial Account that was not required to be deposited therein pursuant to Section 3.02; 

  

	 	(h)	to pay to the REMIC Administrator amounts reimbursable from the Custodial Account pursuant to Section 11.01(c) of the Indenture; 

  

	 	(i)	to pay to itself, with respect to any Mortgage Loan for which it has made an advance of delinquent principal and/or interest, any previously unreimbursed advances of such amounts
theretofore made to the extent of receipts of late recoveries of such payments from the related Mortgagors, out of related Net Liquidation Proceeds or the proceeds of the purchase of such Mortgage Loans; 

  

	 	(j)	to reimburse itself for the amount of any investment earnings advanced prior to maturity pursuant to Section 3.17(c) or Section 5.01, to the extent not reimbursed from earnings
received on the related investment at maturity; 

  

	 	(k)	at its option, for so long as it is the sole Certificateholder, to pay to itself from amounts otherwise required to be remitted to the Distribution Account in accordance with
Section 3.05(a)(xiii) of the Indenture, all amounts payable to it as a Certificateholder on the related Payment Date; and 

  

	 	(l)	to reimburse itself for advances of delinquent principal and/or interest on a Mortgage Loan or other advances that are made pursuant to this Agreement that are not reimbursed
pursuant to clauses (c) and (i) of this Section 3.03. 

  
 Since, in connection with withdrawals pursuant to clauses (c), (d), (f) and (i), the Master Servicer’s entitlement thereto is limited to collections or other recoveries on the related Mortgage Loan, the Master Servicer shall keep and
maintain separate accounting, on a Mortgage Loan by Mortgage Loan basis, for the purpose of justifying any withdrawal from the Custodial Account pursuant to such clauses. Notwithstanding any other provision of this Agreement, the Master Servicer
shall be entitled to reimburse itself for any previously unreimbursed expenses incurred pursuant to Section 3.07 or otherwise reimbursable pursuant to the terms of this Agreement that the Master Servicer determines to be otherwise nonrecoverable
(except with respect to any Mortgage Loan as to which the Repurchase Price has been paid), by withdrawal from the Custodial Account of amounts on deposit therein attributable to the Mortgage Loans on any Business Day prior to the Payment Date
succeeding the date of such determination. 
  
 Section 3.04
Maintenance of Hazard Insurance; Property Protection Expenses. To the extent permitted under the related Mortgage Note and Mortgage, and to the extent the Master Servicer receives notice that a hazard insurance policy has been cancelled, the
Master Servicer shall cause to be maintained for each Mortgage Loan hazard insurance naming the Master Servicer or related Subservicer as loss payee thereunder providing extended coverage in an 

  

 12 

 
amount which is at least equal to the lesser of (i) the maximum insurable value of the improvements securing such Mortgage Loan from time to time or (ii) the
combined principal balance owing on such Mortgage Loan and any mortgage loan senior to such Mortgage Loan from time to time; provided, however, that such coverage may not be less than the minimum amount required to fully compensate for any loss or
damage on a replacement cost basis. The Master Servicer shall use commercially reasonable efforts to monitor that hazard insurance is maintained as described in the previous sentence in the same manner as it would for mortgage loans in its own
portfolio. The Master Servicer shall also cause to be maintained on property acquired upon foreclosure, or deed in lieu of foreclosure, of any Mortgage Loan, fire insurance with extended coverage in an amount which is at least equal to the amount
necessary to avoid the application of any co-insurance clause contained in the related hazard insurance policy. Amounts collected by the Master Servicer under any such policies (other than amounts to be applied to the restoration or repair of the
related Mortgaged Property or property thus acquired or amounts released to the Mortgagor in accordance with the Master Servicer’s normal servicing procedures) shall be deposited in the Custodial Account to the extent called for by Section 3.02
hereof. In cases in which any Mortgaged Property is located at any time during the life of a Mortgage Loan in a federally designated flood area, to the extent permitted under the related Mortgage Note and Mortgage, and to the extent the Master
Servicer receives notice that the related flood insurance has been cancelled, the hazard insurance to be maintained for the related Mortgage Loan shall include flood insurance (to the extent available). All such flood insurance shall be in amounts
equal to the lesser of (i) the amount required to compensate for any loss or damage to the related Mortgaged Property on a replacement cost basis and (ii) the maximum amount of such insurance available for such Mortgaged Property under the national
flood insurance program (assuming that the area in which such Mortgaged Property is located is participating in such program). The Master Servicer shall use commercially reasonable efforts to monitor such flood insurance as described in the previous
sentence in the same manner as it would for mortgage loans in its own portfolio. The Master Servicer shall be under no obligation to require that any Mortgagor maintain earthquake or other additional insurance and shall be under no obligation itself
to maintain any such additional insurance on property acquired in respect of a Mortgage Loan, other than pursuant to such applicable laws and regulations as shall at any time be in force and as shall require such additional insurance. If the Master
Servicer shall obtain and maintain a blanket policy consistent with its general mortgage servicing activities insuring against hazard losses on all of the Mortgage Loans, it shall conclusively be deemed to have satisfied its obligations as set forth
in the first sentence of this Section 3.04, it being understood and agreed that such policy may contain a deductible clause, in which case the Master Servicer shall, in the event that there shall not have been maintained on the related Mortgaged
Property a policy complying with the first sentence of this Section 3.04 and there shall have been a loss which would have been covered by such policy, deposit in the Custodial Account the amount not otherwise payable under the blanket policy
because of such deductible clause. Any such deposit by the Master Servicer shall be made on the last Business Day of the Collection Period in the month in which payments under any such policy would have been deposited in the Custodial Account. In
connection with its activities as master servicer of the Mortgage Loans, the Master Servicer agrees to present, on behalf of itself, the Issuer and the Indenture Trustee, claims under any such blanket policy. 
  

 13 

 Section 3.05 Modification Agreements; Release of Lien. 
  
 The Master Servicer or the related Subservicer, as the case may be, shall be
entitled to (a) execute assumption agreements, substitution agreements, and instruments of satisfaction or cancellation or of partial or full release or discharge, or any other document contemplated by this Agreement and other comparable instruments
with respect to the Mortgage Loans and with respect to the related Mortgaged Properties (and the Issuer and the Indenture Trustee each shall promptly execute any such documents on request of the Master Servicer) and (b) approve the granting of an
easement thereon in favor of another Person, any alteration or demolition of such Mortgaged Properties or other similar matters, if it has determined, exercising its good faith business judgment in the same manner as it would if it were the owner of
the related Mortgage Loans, that the security for, and the timely and full collectability of, such Mortgage Loans would not be adversely affected thereby. A partial release pursuant to this Section 3.05 shall be permitted only if the CLTV for the
related Mortgage Loan after such partial release does not exceed the CLTV for such Mortgage Loan as of the Cut-Off Date, and provided further that the Master Servicer and the Enhancer have received an Opinion of Counsel to the effect that such
partial release will not result in an Adverse REMIC Event. Any fee collected by the Master Servicer or the related Subservicer for processing such request will be retained by the Master Servicer or such Subservicer as additional servicing
compensation. 
  
 Section 3.06 Trust Estate; Related
Documents. 
  

	 	(a)	When required by the provisions of this Agreement, the Issuer or the Indenture Trustee shall execute instruments to release property from the terms of the Trust Agreement, Indenture
or Custodial Agreement, as applicable, or convey the Issuer’s or the Indenture Trustee’s interest in the same, in a manner and under circumstances that are not inconsistent with the provisions of this Agreement. No party relying upon an
instrument executed by the Issuer or the Indenture Trustee as provided in this Section 3.06 shall be bound to ascertain the Issuer’s or the Indenture Trustee’s authority, inquire into the satisfaction of any conditions precedent or see to
the application of any moneys. 

  

	 	(b)	If from time to time any written assurance, assumption agreement or substitution agreement or other similar agreement shall be executed pursuant to Section 3.05 hereof, the Master
Servicer shall check that each of such documents purports to be an original executed copy (or a copy of the original executed document if the original executed copy has been submitted for recording and has not yet been returned) and, if so, shall
file such documents, and upon receipt of the original executed copy from the applicable recording office or receipt of a copy thereof certified by the applicable recording office shall file such originals or certified copies, with the Related
Documents held by the Master Servicer. 

  

	 	(c)	 Upon receipt of a Request for Release from the Master Servicer, substantially in the form of Exhibit C hereto, to the effect that a Mortgage Loan has been the
subject of a final payment or a prepayment in full and such Mortgage Loan has been terminated or that substantially all Net Liquidation Proceeds that have been determined by the Master Servicer in its reasonable judgment to be finally recoverable
have been recovered, and upon deposit to the Custodial Account of such final monthly payment, prepayment in full together with accrued and unpaid 

  

 14 

	 	 
interest to the date of such payment with respect to such Mortgage Loan or, if applicable, Net Liquidation Proceeds, the Custodian shall promptly release the
Related Documents held by the Custodian to the Master Servicer. The Indenture Trustee shall execute such Related Documents, along with such documents as the Master Servicer or the related Mortgagor may request to evidence satisfaction and discharge
of such Mortgage Loan, upon request of the Master Servicer. If from time to time and as appropriate for the servicing or foreclosure of any Mortgage Loan, the Master Servicer requests the Custodian to release Related Documents held by the Custodian
and delivers to the Custodian a trust receipt reasonably satisfactory to the Custodian and signed by a Responsible Officer of the Master Servicer, the Custodian shall release such Related Documents to the Master Servicer. If such Mortgage Loans
shall be liquidated and the Custodian receives a certificate from the Master Servicer as provided above, then, upon request of the Master Servicer, the Custodian shall release the trust receipt to the Master Servicer. 

 
 Section 3.07 Realization Upon Defaulted Mortgage Loans; Loss
Mitigation. With respect to any Mortgage Loan that comes into and continues in default, the Master Servicer shall decide whether to (i) foreclose upon the related Mortgaged Property, (ii) write off the unpaid Principal Balance thereof as bad
debt, (iii) take a deed in lieu of foreclosure, (iv) accept a short sale (a payoff of the Mortgage Loan for an amount less than the total amount contractually owed in order to facilitate a sale of the Mortgaged Property by the Mortgagor), (v) permit
a short refinancing (a payoff of the Mortgage Loan for an amount less than the total amount contractually owed in order to facilitate refinancing transactions by the Mortgagor not involving a sale of the Mortgaged Property), (vi) arrange for a
repayment plan, (vii) agree to a modification in accordance with this Agreement or (viii) take an unsecured note in each case subject to the rights of any related first Lien holder; provided, that in connection with the foregoing, if the Master
Servicer has actual knowledge that any Mortgaged Property is affected by hazardous or toxic wastes or substances and that the acquisition of such Mortgaged Property would not be commercially reasonable, then the Master Servicer shall not cause the
Issuer or the Indenture Trustee to acquire title to such Mortgaged Property in a foreclosure or similar proceeding. In connection with such decision, the Master Servicer shall follow such practices (including, in the case of any default on a related
senior mortgage loan, the advancing of funds to correct such default if deemed to be appropriate by the Master Servicer) and procedures as it shall deem necessary or advisable and as shall be normal and usual in its general mortgage servicing
activities and as shall be required or permitted by the Program Guide; provided, that the Master Servicer shall not be liable in any respect hereunder if the Master Servicer is acting in connection with any such foreclosure or attempted foreclosure
which is not completed or other conversion in a manner that is consistent with the provisions of this Agreement. The foregoing is subject to the proviso that the Master Servicer shall not be required to expend its own funds in connection with any
foreclosure or attempted foreclosure which is not completed or towards the correction of any default on a related senior mortgage loan or restoration of any property unless it shall determine that such expenditure will increase the related Net
Liquidation Proceeds. In the event of a determination by the Master Servicer that any such expenditure previously made pursuant to this Section 3.07 will not be reimbursable from Net Liquidation Proceeds, the Master Servicer shall be entitled to
reimbursement of its funds so expended pursuant to Section 3.03 above. 
  

 15 

 Notwithstanding any provision of this Agreement, a Mortgage Loan may be deemed to be finally liquidated
if substantially all amounts expected by the Master Servicer to be received in connection therewith have been received; provided, however, that the Master Servicer may continue to pursue recovery of such Mortgage Loan and any subsequent collections,
minus any Recovery Fee, with respect to any such Mortgage Loan shall be deposited into the Custodial Account. For purposes of determining the amount of any Net Liquidation Proceeds, Insurance Proceeds or other unscheduled collections, the Master
Servicer may take into account minimal amounts of additional receipts expected to be received or any estimated additional liquidation expenses expected to be incurred in connection with such Mortgage Loan. 
  
 In the event that title to any Mortgaged Property is acquired in foreclosure
or by deed in lieu of foreclosure, the deed or certificate of sale shall be issued to the Indenture Trustee, which shall hold the same on behalf of the Issuer in accordance with Section 3.13 of the Indenture. Notwithstanding any such acquisition of
title and cancellation of the related Mortgage Loan, such Mortgaged Property shall (except as otherwise expressly provided herein) be considered to be an outstanding Mortgage Loan held as an asset of the Issuer until such time as such property shall
be sold. Consistent with the foregoing for purposes of all calculations hereunder, so long as the related Mortgage Loan shall be considered to be an outstanding Mortgage Loan, it shall be assumed that, notwithstanding that the indebtedness evidenced
by the related Mortgage Note shall have been discharged, such Mortgage Note in effect at the time of any such acquisition of title before any adjustment thereto by reason of any ruptcy or similar proceeding or any moratorium or similar waiver or
grace period will remain in effect. 
  
 Any proceeds from
foreclosure proceedings or the purchase or repurchase of any Mortgage Loan pursuant to the terms of this Agreement, as well as any recovery resulting from a collection of Net Liquidation Proceeds or Insurance Proceeds, shall be applied in the
following order of priority: first, to reimburse the Master Servicer or the related Subservicer in accordance with this Section 3.07; second, to pay the Master Servicer or the related Subservicer all Servicing Fees payable therefrom; third, to pay
accrued and unpaid interest on such Mortgage Loan, at the Net Loan Rate to the Payment Date on which such amounts are to be deposited in the Note Payment Account or Distribution Account; and fourth, as a recovery of principal on such Mortgage Loan.
Any remaining amount shall constitute Foreclosure Profits. 
  
 In
the event that the Trust acquires any Mortgaged Property as aforesaid or otherwise in connection with a default or imminent default on a Mortgage Loan, the Master Servicer on behalf the Trust shall dispose of such Mortgaged Property as soon as
practicable, giving due consideration to the interests of the Noteholders and the Certificateholders, but in all cases within three full years after the taxable year of its acquisition by the Trust for purposes of Section 860G(a)(8) of the Code (or
such shorter period as may be necessary under applicable state (including any state in which such property is located) law to maintain the status of each of REMIC I, REMIC II or REMIC III as a REMIC under applicable state law and avoid taxes
resulting from such property failing to be foreclosure property under applicable state law) or, at the expense of the Trust, request, more than 60 days before the day on which such grace period would otherwise expire, an extension of such grace
period unless the Master Servicer obtains for the Indenture Trustee an Opinion of Counsel, addressed to the Indenture Trustee and the Master Servicer, to the effect that the holding by the Trust of such Mortgaged Property subsequent to such period
will not result in the imposition of taxes on “prohibited transactions” as defined in 

  

 16 

 
Section 860F of the Code or cause the Trust to fail to qualify as a REMIC (for federal (or any applicable State or local) income tax purposes) at any time
that any Certificates are outstanding, in which case the Trust may continue to hold such Mortgaged Property (subject to any conditions contained in such Opinion of Counsel). The Master Servicer shall be entitled to be reimbursed from the Custodial
Account for any costs incurred in obtaining such Opinion of Counsel, as provided in Section 3.03. Notwithstanding any other provision of this Agreement, no Mortgaged Property acquired by the Trust shall be rented (or allowed to continue to be
rented) or otherwise used by or on behalf of the Trust in such a manner or pursuant to any terms that would (i) cause such Mortgaged Property to fail to qualify as “foreclosure property” within the meaning of Section 860G(a)(8) of the Code
or (ii) subject REMIC I, REMIC II or REMIC III to the imposition of any federal income taxes on the income earned from such Mortgaged Property, including any taxes imposed by reason of Section 860G(c) of the Code, unless the Master Servicer has
agreed to indemnify and hold harmless the Trust with respect to the imposition of any such taxes. 
  
 Section 3.08 Issuer and Indenture Trustee to Cooperate. On or before each Payment Date, the Master Servicer will notify the Indenture Trustee or
the Custodian, with a copy to the Issuer, of the termination of or the payment in full and the termination of any Mortgage Loan during the preceding Collection Period. Upon receipt of payment in full, the Master Servicer is authorized to execute,
pursuant to the authorization contained in Section 3.01, an instrument of satisfaction regarding the related Mortgage, which instrument of satisfaction shall be recorded by the Master Servicer if required by applicable law and be delivered to the
Person entitled thereto and to cause the removal from the registration on the MERS® System of such Mortgage. It is understood and agreed that any expenses incurred in connection with such instrument of satisfaction or transfer shall be reimbursed from amounts deposited in the Custodial
Account. From time to time and as appropriate for the servicing or foreclosure of any Mortgage Loan, the Custodian shall, upon request of the Master Servicer and delivery to the Custodian, with a copy to the Issuer, of a Request for Release, in the
form attached hereto as Exhibit C, signed by a Servicing Officer, release or cause to be released the related Mortgage Note to the Master Servicer. The Issuer or Indenture Trustee shall promptly execute such documents, in the forms provided by the
Master Servicer, as shall be necessary for the prosecution of any such proceedings or the taking of other servicing actions. Such trust receipt shall obligate the Master Servicer to return such Mortgage Note to the Custodian (as specified in such
receipt) when the need therefor by the Master Servicer no longer exists, unless the Mortgage Loan shall be liquidated, in which case, upon receipt of a certificate of a Servicing Officer similar to that specified above, such trust receipt shall be
released to the Master Servicer. 
  
 In order to facilitate the
foreclosure of the Mortgage securing any Mortgage Loan that is in default following recordation of the related Assignment of Mortgage in accordance with the provisions of the Purchase Agreement, the Indenture Trustee or the Issuer shall, if so
requested in writing by the Master Servicer, promptly execute an appropriate assignment in the form provided by the Master Servicer to assign such Mortgage Loan for the purpose of collection to the Master Servicer (any such assignment shall
unambiguously indicate that the assignment is for the purpose of collection only), and, upon such assignment, such assignee for collection will thereupon bring all required actions in its own name and otherwise enforce the terms of such Mortgage
Loan and deposit or credit the Net Liquidation Proceeds, exclusive of Foreclosure Profits, received with respect thereto into the Custodial Account. In the event that all delinquent 

  

 17 

 
payments due under any such Mortgage Loan are paid by the Mortgagor and any other defaults are cured, then the assignee for collection shall promptly
reassign such Mortgage Loan to the Indenture Trustee and return all Related Documents to the place where the related Mortgage File was being maintained. 
  
 In connection with the Issuer’s obligation to cooperate as provided in this Section 3.08 and all other provisions of this Agreement requiring the
Issuer to authorize or permit any actions to be taken with respect to the Mortgage Loans, the Indenture Trustee, as pledgee of the Mortgage Loans and as assignee of record of the Mortgage Loans on behalf of the Issuer pursuant to Section 3.13 of the
Indenture, expressly agrees, on behalf of the Issuer, to take all such actions on behalf of the Issuer and to promptly execute and return all instruments reasonably required by the Master Servicer in connection therewith; provided, that if the
Master Servicer requests a signature of the Indenture Trustee, on behalf of the Issuer, then the Master Servicer shall deliver to the Indenture Trustee an Officer’s Certificate stating that such signature is necessary or appropriate to enable
the Master Servicer to carry out its servicing and administrative duties under this Agreement. 
  
 Section 3.09 Servicing Compensation; Payment of Certain Expenses by Master Servicer. The Master Servicer shall be entitled to receive the Servicing Fee in accordance with Section 3.03 hereof as compensation for
its services in connection with servicing the Mortgage Loans. Moreover, late payment charges and other receipts not required to be deposited in the Custodial Account as specified in Section 3.02 hereof shall be retained by the Master Servicer as
additional servicing compensation. The Master Servicer shall be required to pay all expenses incurred by it in connection with its activities hereunder (including payment of all other fees and expenses not expressly stated hereunder to be for the
account of the Securityholders), including the fees and expenses of the Owner Trustee, Indenture Trustee and the Custodian, and shall not be entitled to reimbursement therefor. 
  
 Section 3.10 Annual Statement as to Compliance. 
  

	 	(a)	The Master Servicer shall deliver to the Issuer, the Indenture Trustee, the Depositor and the Underwriter, with a copy to the Enhancer, beginning March 31, [____], and on or before
March 31 of each year thereafter, an Officer’s Certificate stating that (i) a review of the activities of the Master Servicer during the preceding calendar year and of its performance under any servicing agreements to which it is a party,
including this Agreement, has been made under such officer’s supervision and (ii) to the best of such officer’s knowledge, based on such review, the Master Servicer has complied in all material respects with the minimum servicing standards
set forth in the Uniform Single Attestation Program for Mortgage ers and has fulfilled all of its material obligations in all material respects throughout such year, or, if there has been material noncompliance with such servicing standards or a
default in the fulfillment in all material respects of any such obligation relating to this Servicing Agreement, such statement shall include a description of such noncompliance or specify each such default, as the case may be, known to such officer
and the nature and status thereof. 

  

 18 

	 	(b)	The Master Servicer shall deliver to the Issuer and the Indenture Trustee, with a copy to the Enhancer, promptly after having obtained knowledge thereof, but in no event later than
five Business Days thereafter, written notice by means of an Officer’s Certificate of any event which with the giving of notice or the lapse of time or both, would become a Servicing Default. 

  
 Section 3.11 Annual Servicing Report. Beginning March 31, [____], and
on or before March 31 of each year thereafter, the Master Servicer at its expense shall cause a firm of nationally recognized independent public accountants (which firm may also render other services to the Master Servicer) to furnish a report to
the Issuer, the Indenture Trustee, the Depositor, the Underwriter, the Enhancer and each Rating Agency stating its opinion that, on the basis of an examination conducted by such firm substantially in accordance with standards established by the
American Institute of Certified Public Accountants, the assertions made pursuant to Section 3.10 above regarding compliance with the minimum servicing standards set forth in the Uniform Single Attestation Program for Mortgage ers during the
preceding calendar year are fairly stated in all material respects, subject to such exceptions and other qualifications that, in the opinion of such firm, such accounting standards require it to report. In rendering such statement, such firm may
rely, as to matters relating to the direct servicing of Mortgage Loans by Subservicers, upon comparable statements for examinations conducted by independent public accountants substantially in accordance with standards established by the American
Institute of Certified Public Accountants (rendered within one year of such statement) with respect to such Subservicers. 
  
 Section 3.12 Access to Certain Documentation and Information Regarding the Mortgage Loans. Whenever required by statute or regulation, the Master
Servicer shall provide to the Enhancer, any Securityholder upon reasonable request (or a regulator for a Securityholder) or the Indenture Trustee, reasonable access to the documentation regarding the Mortgage Loans. Such access shall be afforded
without charge, but only upon reasonable request and during normal business hours at the offices of the Master Servicer. Nothing in this Section 3.12 shall derogate from the obligation of the Master Servicer to observe any applicable law prohibiting
disclosure of information regarding Mortgagors, and the failure of the Master Servicer to provide access as provided in this Section 3.12 as a result of such obligation shall not constitute a breach of this Section 3.12. 
  
 Section 3.13 Maintenance of Certain Servicing Insurance Policies. The
Master Servicer shall, during the term of its service as master servicer, maintain in force and effect (i) a policy or policies of insurance covering errors and omissions in the performance of its obligations as Master Servicer hereunder and (ii) a
fidelity bond in respect of its officers, employees or agents. Each such policy or policies and fidelity bond shall be at least equal to the coverage that would be required by Fannie Mae or Freddie Mac, whichever is greater, for Persons performing
servicing for mortgage loans purchased by such entity. 
  
 Section
3.14 Information Required by the Internal Revenue Service and Reports of Foreclosures and Abandonments of Mortgaged Property. The Master Servicer shall prepare and deliver all federal and state information reports with respect to the Mortgage
Loans when and as required by all applicable state and federal income tax laws. In particular, with respect to the requirement under Section 6050J of the Code to the effect that the Master Servicer or 

  

 19 

 
Subservicer shall make reports of foreclosures and abandonments of any mortgaged property for each year beginning in [____], the Master Servicer or
Subservicer shall file reports relating to each instance occurring during the previous calendar year in which the Master Servicer (a) on behalf of the Issuer, acquired an interest in any Mortgaged Property through foreclosure or other comparable
conversion in full or partial satisfaction of a Mortgage Loan, or (b) knew or had reason to know that any Mortgaged Property had been abandoned. The reports from the Master Servicer or Subservicer shall be in form and substance sufficient to meet
the reporting requirements imposed by Section 6050J and Section 6050H (reports relating to mortgage interest received) of the Code. 
  
 Section 3.15 Optional Repurchase or Transfer of Mortgage Loans. 
  
 Notwithstanding any provision in Section 3.07 above to the contrary, the Master Servicer, at its option and in its sole
discretion, may repurchase any Mortgage Loan delinquent in payment for a period of ninety (90) days or longer for a price equal to the Repurchase Price, provided that any such repurchase shall occur only during the 60-day period commencing on the
first day of the next calendar month. 
  
 Section 3.16
Enforcement of Due-on-Sale Clauses; Assumption and Modification Agreements; Certain Assignments. 
  

	 	(a)	When any Mortgaged Property is conveyed by the Mortgagor, the Master Servicer or Subservicer, to the extent it has knowledge of such conveyance, shall enforce any due-on-sale clause
contained in any Mortgage Note or Mortgage, to the extent permitted under applicable law and governmental regulations, but only to the extent that such enforcement will not adversely affect or jeopardize coverage under any Required Insurance Policy.
Notwithstanding the foregoing: 

  

	 	(i)	the Master Servicer shall not be deemed to be in default under this Section 3.16(a) by reason of any transfer or assumption which the Master Servicer is restricted by law from
preventing; and 

  

	 	(ii)	if the Master Servicer determines that it is reasonably likely that any Mortgagor will bring, or if any Mortgagor does bring, legal action to declare invalid or otherwise avoid
enforcement of a due-on-sale clause contained in any Mortgage Note or Mortgage, the Master Servicer shall not be required to enforce the due-on-sale clause or to contest such action. 

  

	 	(b)	 Subject to the Master Servicer’s duty to enforce any due-on-sale clause to the extent set forth in Section 3.16(a), in any case in which a Mortgaged Property
is to be conveyed to a Person by a Mortgagor, and such Person is to enter into an assumption or modification agreement or supplement to the Mortgage Note or Mortgage which requires the signature of the Indenture Trustee, or if an instrument of
release signed by the Indenture Trustee is required releasing the Mortgagor from liability on the Mortgage Loan, the Master Servicer is authorized, subject to the requirements of the sentence next following, to execute and deliver, on behalf of the
Indenture Trustee, the assumption agreement with the Person to 

  

 20 

	 	 
whom the Mortgaged Property is to be conveyed and such modification agreement or supplement to the Mortgage Note or Mortgage or other instruments as are
reasonable or necessary to carry out the terms of the Mortgage Note or Mortgage or otherwise to comply with any applicable laws regarding assumptions or the transfer of the Mortgaged Property to such Person; provided, however,
none of such terms and requirements shall either (i) both (A) constitute a “significant modification” effecting an exchange or reissuance of such Mortgage Loan under the REMIC Provisions and (B) cause REMIC I, REMIC II or REMIC III to
fail to qualify as REMICs under the Code, or (subject to Section 11.01(f) of the Indenture), result in the imposition of any tax on “prohibited transactions” or (ii) constitute “contributions” after the start-up date under the
REMIC Provisions. The Master Servicer shall execute and deliver such documents only if it reasonably determines that (i) its execution and delivery thereof will not conflict with or violate any terms of this Agreement or cause the unpaid balance and
interest on the Mortgage Loan to be uncollectible in whole or in part, (ii) any required consents of insurers under any Required Insurance Policies have been obtained and (iii) subsequent to the closing of the transaction involving the assumption or
transfer (A) such transaction will not adversely affect the coverage under any Required Insurance Policies, (B) the Mortgage Loan will fully amortize over the remaining term thereof, (C) no material term of the Mortgage Loan (including the interest
rate on the Mortgage Loan) will be altered nor will the term of the Mortgage Loan be changed and (D) if the seller/transferor of the Mortgaged Property is to be released from liability on the Mortgage Loan, such release will not (based on the Master
Servicer’s or Subservicer’s good faith determination) adversely affect the collectability of the Mortgage Loan. Upon receipt of appropriate instructions from the Master Servicer in accordance with the foregoing, the Indenture Trustee shall
execute any necessary instruments for such assumption or substitution of liability as directed in writing by the Master Servicer. Upon the closing of the transactions contemplated by such documents, the Master Servicer shall cause the originals or
true and correct copies of the assumption agreement, the release (if any), or the modification or supplement to the Mortgage Note or Mortgage to be delivered to the Indenture Trustee or the Custodian and deposited with the Mortgage File for such
Mortgage Loan. Any fee collected by the Master Servicer or such related Subservicer for entering into an assumption or substitution of liability agreement will be retained by the Master Servicer or such Subservicer as additional servicing
compensation. 

  
 ARTICLE IV 
  
 Servicing Certificate 
  
 Section 4.01 Statements to Securityholders. 
  

	 	(a)	 With respect to each Payment Date, on the Business Day following the related Determination Date, the Master Servicer shall forward the Servicing Certificate and a
computer file containing mutually agreed upon loan level information to the Indenture Trustee, and the Indenture Trustee, pursuant to Section 3.26 of the 

  

 21 

	 	 
Indenture, shall make such Servicing Certificate available to each Certificateholder, each Noteholder, the Depositor, the Owner Trustee, the Certificate
Paying Agent and each Rating Agency, with a copy to the Enhancer. The Servicing Certificate shall set forth the following information as to the Notes and Certificates, to the extent applicable: 

  

	 	(i)	the aggregate amount of (a) Interest Collections, (b) Principal Collections, and (c) Substitution Adjustment Amounts for such Collection Period; 

  

	 	(ii)	the amount of such distribution as principal to the Noteholders of each Class of Notes; 

  

	 	(iii)	the amount of such distribution as interest to the Noteholders of each Class of Notes, the amount thereof, if any, payable in respect of unpaid Interest Shortfalls, and the amount
of any Interest Shortfalls for the related Payment Date; 

  

	 	(iv)	the Policy Draw Amount, if any, for such Payment Date and the aggregate amount of prior draws on the Policy thereunder not yet reimbursed; 

  

	 	(v)	the amount of such distribution to the Certificateholders; 

  

	 	(vi)	the aggregate Principal Balance of the Mortgage Loans as of the end of the preceding Collection Period; 

  

	 	(vii)	the number and aggregate Principal Balances of Mortgage Loans (a) as to which the Monthly Payment is delinquent for 30-59 days, 60-89 days, 90-119 days, 120-149 days and 150-179
days, respectively, (b) the related Mortgaged Property of which has been foreclosed upon and (c) as to which the related Mortgaged Property has become REO Property, in each case as of the end of the preceding Collection Period; provided, however,
that such information shall not be provided on the statements relating to the first Payment Date; 

  

	 	(viii)	the aggregate Liquidation Loss Amounts with respect to the related Collection Period, the amount distributed as principal to Noteholders in respect of Liquidation Loss Amounts and
the aggregate of the Liquidation Loss Amounts (minus any Subsequent Net Recovery Amounts) from all Collection Periods to date expressed as dollar amount and as a percentage of the aggregate Cut-Off Date Principal Balances of the Mortgage Loans;

  

	 	(ix)	the aggregate Note Balance of each Class of Notes and the Certificate Balance of the Certificates after giving effect to the distribution of principal on such Payment Date;

  

	 	(x)	the Percentage Interest applicable to each of the Securities, after application of payments made on such Payment Date; 

  

 22 

	 	(xi)	the Overcollateralization Amount as of the end of the preceding Collection Period; 

  

	 	(xii)	the Weighted Average Net Loan Rate for the Mortgage Loans for the related Collection Period; and 

  

	 	(xiii)	the number and aggregate Principal Balance of Mortgage Loans repurchased pursuant to Section 3.15 herein during such Collection Period. 

  
 In the case of information furnished pursuant to clauses (ii) and (iii)
above, the amounts shall be expressed as an aggregate dollar amount per Note, as applicable, with a $xx,xxx denomination and per Certificate with a denomination equal to a xxx% Percentage Interest. In the case of information furnished pursuant to
clause (iii) above for the Class A-IO Notes, the amount shall be expressed as an aggregate dollar amount with a $xxx,xxx,xxx denomination. 
  
 If a Servicing Default shall occur, on the Business Day following the related Determination Date, the Master Servicer shall forward to the Indenture
Trustee, a statement to such effect, including the nature of such Servicing Default. The Indenture Trustee, pursuant to Section 3.26 of the Indenture, shall deliver or cause to be delivered by mail to each Certificateholder, each Noteholder, the
Enhancer, the Depositor, the Owner Trustee, the Certificate Paying Agent and each Rating Agency, notice of such Servicing Default, including the nature of such Servicing Default. Such statement may be included in, or separate from, the regular
statement sent to Securityholders. 
  
 The Indenture Trustee will
make the Servicing Certificate (and, at its option, any additional files containing the same information in an alternative format) available each month to Securityholders, and other parties to this Agreement via the Indenture Trustee’s internet
website. The Indenture Trustee’s internet website shall initially be located at “www.ctslink.com”. Assistance in using the website can be obtained by calling the Indenture Trustee’s customer service desk at xxx-xxx-xxxx. Parties
that are unable to use the above distribution options are entitled to have a paper copy mailed to them via first class mail by calling the customer service desk and indicating such. The Indenture Trustee shall have the right to change the way the
statements to Securityholders are distributed in order to make such distribution more convenient and/or more accessible to the above parties and the Indenture Trustee shall provide timely and adequate notification to all above parties regarding any
such changes. The Indenture Trustee may require registration and the acceptance of a disclaimer in connection with access to its website. 
  

	 	(b)	 The Master Servicer shall forward to the Indenture Trustee any other information reasonably requested by the Indenture Trustee necessary to make distributions
pursuant to Section 3.05 of the Indenture. Prior to the close of business on the Business Day next succeeding each Determination Date, the Master Servicer shall furnish a written statement to the Certificate Paying Agent and the Indenture Trustee
setting forth the aggregate amounts required to be withdrawn from the Custodial Account and deposited into the Note Payment Account and/or Distribution Account on the Business Day preceding the related Payment Date 

  

 23 

	 	 
pursuant to Section 3.03 hereof. The determination by the Master Servicer of such amounts shall, in the absence of obvious error, be deemed to be
presumptively correct for all purposes hereunder, and the Owner Trustee and the Indenture Trustee shall be protected in relying upon the same without any independent check or verification. In addition, upon the Issuer’s written request, the
Master Servicer shall promptly furnish such information reasonably requested by the Issuer that is reasonably available to the Master Servicer to enable the Issuer to perform its federal and state income tax reporting obligations.

  

	 	(c)	The Master Servicer shall, on behalf of the Depositor and in respect of the Trust Fund, sign and cause to be filed with the Commission any periodic reports required to be filed
under the provisions of the Exchange Act, and the rules and regulations of the Commission thereunder. In connection with the preparation and filing of such periodic reports, the Indenture Trustee shall timely provide to the Master Servicer (I) a
list of Noteholders as shown on the Note Register as of the end of each calendar year, (II) copies of all pleadings, other legal process and any other documents relating to any claims, charges or complaints involving the Indenture Trustee, as
trustee, or the Trust Estate that are received by the Indenture Trustee, (III) notice of all matters that, to the actual knowledge of a Responsible Officer of the Indenture Trustee, have been submitted to a vote of the Noteholders or
Certificateholders, other than those matters that have been submitted to a vote of the Noteholders or Certificateholders at the request of the Depositor or the Master Servicer, and (IV) notice of any failure of the Indenture Trustee to make any
distribution to the Noteholders or Certificateholders as required pursuant to the Indenture or Trust Agreement, as applicable. Neither the Master Servicer nor the Indenture Trustee shall have any liability with respect to Master Servicer’s
failure to properly prepare or file such periodic reports resulting from or relating to the Master Servicer’s inability or failure to obtain any information not resulting from the Master Servicer’s own negligence or willful misconduct. Any
Form 10-K filed with the Commission in connection with this Section 4.01(c) shall include a certification, signed by the senior officer in charge of the servicing functions of the Master Servicer, in the form attached as Exhibit D-1 hereto or such
other form as may be required or permitted by the Commission (the “Form 10-K Certification”), in compliance with Rule 13a-14 and 15d-14 under the Exchange Act and any additional directives of the Commission. In connection with the Form
10-K Certification, the Indenture Trustee shall provide the Master Servicer with a back-up certification substantially in the form attached hereto as Exhibit D-2. 

  
 Section 4.02 Tax Returns and 1934 Act Reports 
  

	 	(a)	The Master Servicer will act as the Tax Matters Partner pursuant to the Trust Agreement and the Indenture and will perform the obligations of the Master Servicer set forth in
Section 8.02 of the Trust Agreement and the obligations of the Tax Matters Partner set forth in Article XI of the Indenture. 

  

	 	(b)	 The Master Servicer shall prepare all reports on behalf of the Trust Estate, including, but not limited to, all Forms 8-K, Forms 10-K and, when applicable, a

  

 24 

	 	 
Form 15 that are required under the Securities Exchange Act of 1934, as amended. The Master Servicer shall continue to file all Forms 8-K and Forms 10-K with
respect to the Trust Estate until directed by the Depositor in writing to discontinue such filings. 

  
 ARTICLE V 
  
 Note Payment Account 
  
 Section 5.01 Note Payment Account. The Indenture Trustee shall establish and maintain an Eligible Account entitled “[INDENTURE TRUSTEE], as Indenture Trustee, for the benefit of the Securityholders, the
Certificate Paying Agent and the Enhancer, pursuant to the Indenture, dated as of [DATE], between [ISSUER] and [INDENTURE TRUSTEE]” (the “Note Payment Account”). On each Payment Date, amounts on deposit in the Note Payment Account
shall be distributed by the Indenture Trustee in accordance with Section 3.05 of the Indenture. The Indenture Trustee shall invest or cause the institution maintaining the Note Payment Account to invest the funds therein in Permitted Investments
selected in writing by the Master Servicer and designated in the name of the Indenture Trustee, which investments shall mature not later than the Business Day next preceding the Payment Date next following the date of such investment (except that
any investment in the institution with which the Note Payment Account is maintained may mature on such Payment Date) and shall not be sold or disposed of prior to maturity. In addition, no such Permitted Investment shall be purchased at a price in
excess of par. All income and gain realized from any such investment shall be for the benefit of the Master Servicer and shall be subject to its withdrawal or order from time to time. The amount of any losses incurred in respect of any such
investments shall be deposited in the Note Payment Account by the Master Servicer out of its own funds immediately as realized. 
  
 ARTICLE VI 
  
 The Master Servicer 
  
 Section 6.01 Liability of the Master Servicer. The Master Servicer shall be liable in accordance herewith only to the extent of the obligations specifically imposed upon and undertaken by the Master Servicer
herein. 
  
 Section 6.02 Merger or Consolidation of, or
Assumption of the Obligations of, the Master Servicer. Any corporation into which the Master Servicer may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to
which the Master Servicer shall be a party, or any corporation succeeding to the business of the Master Servicer, shall be the successor of the Master Servicer 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. 
  
 The Master Servicer may assign its rights and delegate its duties and obligations under this Agreement; provided, that the Person accepting such assignment or delegation shall be a Person qualified to service mortgage
loans, is reasonably satisfactory to the Enhancer (provided, that such consent to assignment may not be unreasonably withheld), is willing to service the 

  

 25 

 
Mortgage Loans and executes and delivers to the Issuer (with a copy to the Enhancer) an agreement, in form and substance reasonably satisfactory to the
Enhancer, that contains an assumption by such Person of the due and punctual performance and observance of each covenant and condition to be performed or observed by the Master Servicer under this Agreement; and provided further, that no Rating
Event will occur as a result of such assignment and delegation (as evidenced by a letter to such effect from each Rating Agency), if determined without regard to the Policy; and provided further, that the Owner Trustee shall receive an Opinion of
Counsel to the effect that such assignment or delegation will not cause the Issuer to be treated as an association (or a publicly-traded partnership) taxable as a corporation for federal income tax purposes. 
  
 Section 6.03 Limitation on Liability of the Master Servicer and
Others. Neither the Master Servicer nor any of the directors or officers or employees or agents of the Master Servicer shall be under any liability to the Issuer, the Owner Trustee, the Indenture Trustee or the Securityholders for any action
taken or for refraining from the taking of any action in good faith pursuant to this Agreement; provided, however, that this provision shall not protect the Master Servicer or any such Person against any liability that would otherwise be imposed by
reason of its willful misfeasance, bad faith or gross negligence in the performance of its duties hereunder or by reason of its reckless disregard of its obligations and duties hereunder. The Master Servicer and any director or officer or employee
or agent of the Master Servicer may rely in good faith on any document of any kind prima facie properly executed and submitted by any Person respecting any matters arising hereunder. The Master Servicer and any director, officer, employee or
agent of the Master Servicer shall be indemnified by the Issuer and held harmless against any loss, liability or expense incurred in connection with any legal action relating to this Agreement or the Securities, including any amount paid to the
Owner Trustee or the Indenture Trustee pursuant to Section 6.06(b) hereof, other than any loss, liability or expense related to any specific Mortgage Loan or Mortgage Loans (except as any such loss, liability or expense shall be otherwise
reimbursable pursuant to this Agreement) and any loss, liability or expense incurred by reason of its willful misfeasance, bad faith or gross negligence in the performance of its duties hereunder or by reason of its reckless disregard of its
obligations and duties hereunder. The Master Servicer shall not be under any obligation to appear in, prosecute or defend any legal action that is not incidental to its duties to service the Mortgage Loans in accordance with this Agreement, and that
in its opinion may involve it in any expense or liability; provided, however, that the Master Servicer may in its sole discretion undertake any such action that it may deem necessary or desirable in respect of this Agreement, the rights and duties
of the parties hereto and the interests of the Securityholders. In such event, the reasonable legal expenses and costs of such action and any liability resulting therefrom shall be expenses, costs and liabilities of the Issuer, and the Master
Servicer shall be entitled to be reimbursed therefor. The Master Servicer’s right to indemnity or reimbursement pursuant to this Section 6.03 shall survive any resignation or termination of the Master Servicer pursuant to Section 6.04 or 7.01
hereof with respect to any losses, expenses, costs or liabilities arising prior to such resignation or termination (or arising from events that occurred prior to such resignation or termination). 
  
 Section 6.04 Master Servicer Not to Resign. Subject to the provisions
of Section 6.02 above, the Master Servicer shall not resign from the obligations and duties hereby imposed on it except (a) upon determination that the performance of its obligations or duties hereunder are no longer permissible under applicable law
or are in material conflict by reason of applicable law 

  

 26 

 
with any other activities carried on by it or its subsidiaries or Affiliates, the other activities of the Master Servicer so causing such a conflict being of
a type and nature carried on by the Master Servicer or its subsidiaries or Affiliates at the date of this Agreement or (b) upon satisfaction of the following conditions: (i) the Master Servicer shall have proposed a successor servicer to the Issuer
and the Indenture Trustee in writing and such proposed successor servicer is reasonably acceptable to the Issuer, the Indenture Trustee and the Enhancer; (ii) each Rating Agency shall have delivered a letter to the Issuer, the Enhancer and the
Indenture Trustee prior to the appointment of the successor servicer stating that the proposed appointment of such successor servicer as Master Servicer hereunder will not cause a Rating Event, if determined without regard to the Policy; and (iii)
such proposed successor servicer is reasonably acceptable to the Enhancer, as evidenced by a letter to the Issuer and the Indenture Trustee; provided, however, that no such resignation by the Master Servicer shall become effective until such
successor servicer or, in the case of (a) above, the Indenture Trustee, as pledgee of the Mortgage Loans, shall have assumed the Master Servicer’s responsibilities and obligations hereunder or the Indenture Trustee, as pledgee of the Mortgage
Loans, shall have designated a successor servicer in accordance with Section 7.02 hereof. Any such resignation shall not relieve the Master Servicer of responsibility for any of the obligations specified in Sections 7.01 and 7.02 hereof as
obligations that survive the resignation or termination of the Master Servicer. Any such determination permitting the resignation of the Master Servicer shall be evidenced by an Opinion of Counsel to such effect delivered to the Indenture Trustee
and the Enhancer. 
  
 Section 6.05 Delegation of Duties. In
the ordinary course of business, the Master Servicer at any time may delegate any of its duties hereunder to any Person, including any of its Affiliates, that agrees to conduct such duties in accordance with standards comparable to those with which
the Master Servicer complies pursuant to Section 3.01 hereof. Such delegation shall not relieve the Master Servicer of its liabilities and responsibilities with respect to such duties and shall not constitute a resignation within the meaning of
Section 6.04 above. 
  
 Section 6.06 Payment of Indenture
Trustee’s and Owner Trustee’s Fees and Expenses; Indemnification. 
  

	 	(a)	 After the Closing Date, the Master Servicer covenants and agrees to pay to the Owner Trustee, the Indenture Trustee and any co-trustee of the Indenture Trustee or
the Owner Trustee from time to time, and the Owner Trustee, the Indenture Trustee and any such co-trustee shall be entitled to, reasonable compensation (which shall not be limited by any provision of law in regard to the compensation of a trustee of
an express trust and, in the case of the Indenture Trustee, for so long as [WELLS FARGO] is the Master Servicer shall be as set forth in the letter agreement between the Indenture Trustee and the Master Servicer dated as of [DATE]) for all services
rendered by each of them in the execution of the trusts created under the Trust Agreement and the Indenture and in the exercise and performance of any of the powers and duties under the Trust Agreement or the Indenture, as the case may be, of the
Owner Trustee, the Indenture Trustee and any co-trustee, and the Master Servicer will pay or reimburse the Indenture Trustee and any co-trustee upon request for all reasonable expenses, disbursements and advances incurred or made by the Indenture
Trustee or any co-trustee in accordance with any of the provisions of this Agreement, the Indenture 

  

 27 

	 	 
or the Trust Agreement except any such expense, disbursement or advance as may arise from its negligence, willful misfeasance or bad faith. In addition, the
Indenture Trustee shall be entitled to be reimbursed from the Master Servicer for all reasonable costs associated with the transfer of servicing from the predecessor servicer pursuant to Section 7.02 hereunder, including, without limitation, any
reasonable costs or expenses associated with the complete transfer of all servicing data and the completion, correction or manipulation of such servicing data as may be required by the Indenture Trustee to correct any errors or insufficiencies in
the servicing data or otherwise to enable the Indenture Trustee to service the Mortgage Loans properly and effectively. 

  

	 	(b)	The Master Servicer agrees to indemnify the Indenture Trustee and the Owner Trustee for, and to hold the Indenture Trustee and the Owner Trustee, as the case may be, harmless
against, any loss, liability or expense incurred without negligence, bad faith or willful misconduct on the part of the Indenture Trustee or the Owner Trustee, as the case may be, arising out of, or in connection with, the acceptance and
administration of the Issuer and the assets thereof, including the costs and expenses (including reasonable legal fees and expenses) of defending the Indenture Trustee or the Owner Trustee, as the case may be, against any claim in connection with
the exercise or performance of any of its powers or duties under any Basic Document; provided that: 

  

	 	(i)	with respect to any such claim, the Indenture Trustee or Owner Trustee, as the case may be, shall have given the Master Servicer written notice thereof promptly after the Indenture
Trustee or Owner Trustee, as the case may be, shall have actual knowledge thereof; 

  

	 	(ii)	while maintaining control over its own defense, the Issuer, the Indenture Trustee or Owner Trustee, as the case may be, shall cooperate and consult fully with the Master Servicer in
preparing such defense; and 

  

	 	(iii)	notwithstanding anything in this Agreement to the contrary, the Master Servicer shall not be liable for settlement of any claim by the Indenture Trustee or the Owner Trustee, as the
case may be, entered into without the prior consent of the Master Servicer. 

  
 No termination of this Agreement or resignation or removal of the Indenture Trustee shall affect the obligations created by this Section 6.06 of the Master Servicer to indemnify the Indenture Trustee and the Owner
Trustee under the conditions and to the extent set forth herein. 
  
 Notwithstanding the foregoing, the indemnification provided by the Master Servicer in this Section 6.06(b) shall not pertain to any loss, liability or expense of the Indenture Trustee or the Owner Trustee, including the costs and expenses
of defending itself against any claim, incurred in connection with any actions taken by the Indenture Trustee or the Owner Trustee at the direction of the Noteholders or Certificateholders, as the case may be, pursuant to the terms of this
Agreement. 
  

 28 

 ARTICLE VII 
  
 Default 
  
 Section 7.01 Servicing Default. 
  

	 	(a)	If a Servicing Default shall occur and be continuing, then, and in every such case, so long as a Servicing Default shall not have been remedied by the Master Servicer, either the
Issuer, the Indenture Trustee, upon actual knowledge of the occurrence of a Servicing Default and with the consent of the Enhancer, or the Enhancer, by notice then given in writing to the Master Servicer, the Issuer and the Indenture Trustee, may
terminate all of the rights and obligations of the Master Servicer as servicer under this Agreement other than its right to receive servicing compensation and expenses for servicing the Mortgage Loans hereunder during any period prior to the date of
such termination, and the Issuer, the Enhancer or the Indenture Trustee (with the consent of the Enhancer), may exercise any and all other remedies available at law or equity. Any such notice to the Master Servicer shall also be given to each Rating
Agency, the Enhancer and the Issuer. On or after the receipt by the Master Servicer of such written notice, all authority and power of the Master Servicer under this Agreement, whether with respect to the Securities or the Mortgage Loans or
otherwise, shall pass to and be vested in the Indenture Trustee, subject to Section 7.02 hereof, as pledgee of the Mortgage Loans, pursuant to and under this Section 7.01; and, without limitation, the Indenture Trustee is hereby authorized and
empowered to execute and deliver, on behalf of the Master Servicer, as attorney-in-fact or otherwise, any and all documents and other instruments, and to do or accomplish all other acts or things necessary or appropriate to effect the purposes of
such notice of termination, whether to complete the transfer and endorsement of each Mortgage Loan and related documents, or otherwise. The Master Servicer agrees to cooperate with the Issuer, the Enhancer and Indenture Trustee, as the case may be,
in effecting the termination of the responsibilities and rights of the Master Servicer hereunder, including, without limitation, the transfer to the Indenture Trustee for the administration by it of all cash amounts relating to the Mortgage Loans
that shall at the time be held by the Master Servicer and to be deposited by it in the Custodial Account, or that have been deposited by the Master Servicer in the Custodial Account or thereafter received by the Master Servicer with respect to the
Mortgage Loans, the recordation of Assignments of Mortgages to the Indenture Trustee if MERS is not the mortgagee of a Mortgage Loan, and the delivery of Mortgage Files in its possession to the Indenture Trustee. All reasonable costs and expenses
(including, but not limited to, attorneys’ fees) incurred in connection with amending this Agreement to reflect such succession as Master Servicer pursuant to this Section 7.01 shall be paid by the predecessor Master Servicer (or if the
predecessor Master Servicer is the Indenture Trustee, the initial Master Servicer) upon presentation of reasonable documentation of such costs and expenses. 

  

 29 

	 	(b)	Notwithstanding any termination of the activities of the Master Servicer hereunder, the Master Servicer shall be entitled to receive, out of any late collection of a payment on a
Mortgage Loan which was due prior to the notice terminating the Master Servicer’s rights and obligations hereunder and received after such notice, that portion to which the Master Servicer would have been entitled pursuant to Sections 3.03 and
3.09 hereof as well as its Servicing Fee in respect thereof, and any other amounts payable to the Master Servicer hereunder the entitlement to which arose prior to the termination of its activities hereunder. 

  
 Notwithstanding the foregoing, a delay in or failure of performance under
clause (i) or (ii) of the definition of Servicing Default, after the applicable grace periods specified therein, shall not constitute a Servicing Default if such delay or failure could not be prevented by the exercise of reasonable diligence by the
Master Servicer and such delay or failure was caused by an act of God or the public enemy, acts of declared or undeclared war, public disorder, rebellion or sabotage, epidemics, landslides, lightning, fire, hurricanes, earthquakes, floods or similar
causes. The preceding sentence shall not relieve the Master Servicer from using reasonable efforts to perform its respective obligations in a timely manner in accordance with the terms of this Agreement. The Master Servicer shall provide the
Indenture Trustee, the Enhancer and the Securityholders with notice of any such failure or delay by it, together with a description of its efforts to so perform its obligations. The Master Servicer shall immediately notify the Indenture Trustee, the
Enhancer and the Issuer in writing of any Servicing Default. 
  
 Section 7.02 Indenture Trustee to Act; Appointment of Successor. 
  

	 	(a)	 On and after the time the Master Servicer receives a notice of termination pursuant to Section 7.01 above or sends a notice pursuant to Section 6.04 hereof, the
Indenture Trustee as pledgee of the Mortgage Loans shall itself become, or shall appoint an affiliate of the Indenture Trustee to become the successor in all respects to the Master Servicer in its capacity as servicer under this Agreement and the
transactions set forth or provided for herein and shall immediately assume all of the obligations of the Master Servicer to make advances on Mortgage Loans under Section 3.02(b) hereof and will be subject to all other responsibilities, duties and
liabilities relating thereto placed on the Master Servicer by the terms and provisions hereof as soon as practicable, but in no event later than 90 days after the Indenture Trustee becomes successor servicer. During such 90 day period, the Indenture
Trustee, with the consent of the Enhancer, may require the Master Servicer being terminated to continue to perform such servicing responsibilities (other than making advances on the Mortgage Loans under Section 3.02(b) hereof) as the Indenture
Trustee deems appropriate. In such event, the Master Servicer being terminated shall provide such services as directed by the Indenture Trustee until the earliest of the date the Indenture Trustee notifies such Master Servicer to discontinue
providing such services, the date on which a successor servicer or the Indenture Trustee has assumed all responsibilities, duties and liabilities of the Master Servicer hereunder or the expiration of the 90 day period. The Master Servicer shall be
entitled to the Servicing Fee hereunder for any period during which the Master Servicer is obligated to provide such services as if no termination of the Master Servicer had 

  

 30 

	 	 
occurred. Nothing in this Agreement or in the Trust Agreement shall be construed to permit or require the Indenture Trustee to (i) succeed to the
responsibilities, duties and liabilities of the initial Master Servicer in its capacity as Seller under the Purchase Agreement, (ii) be responsible or accountable for any act or omission of the Master Servicer prior to the issuance of a notice of
termination hereunder, (iii) require or obligate the Indenture Trustee, in its capacity as successor Master Servicer, to purchase, repurchase or substitute any Mortgage Loan, (iv) fund any losses on any Permitted Investment directed by any other
Master Servicer, or (v) be responsible for the representations and warranties of the Master Servicer. As compensation therefor, the Indenture Trustee shall be entitled to such compensation as the Master Servicer would have been entitled to hereunder
if no such notice of termination had been given. Notwithstanding the foregoing, if the Indenture Trustee is (x) unwilling to act as successor Master Servicer itself or to appoint an affiliate to become successor Master Servicer, or (y) legally
unable so to act, the Indenture Trustee as pledgee of the Mortgage Loans may (in the situation described in clause (x)) or shall (in the situation described in clause (y)) appoint or petition a court of competent jurisdiction to appoint any
established housing and home finance institution, or other mortgage loan servicer having a net worth of not less than $10,000,000 as the successor to the Master Servicer hereunder in the assumption of all or any part of the responsibilities, duties
or liabilities of the Master Servicer hereunder; provided, that any such successor Master Servicer shall be acceptable to the Enhancer, as evidenced by the Enhancer’s prior written consent, which consent shall not be unreasonably withheld; and
provided further, that the appointment of any such successor Master Servicer will not result in a Rating Event, if determined without regard to the Policy. Pending appointment of a successor to the Master Servicer hereunder, unless the Indenture
Trustee is prohibited by law from so acting, the Indenture Trustee itself shall act or appoint an affiliate to act in such capacity as provided above. In connection with such appointment and assumption, the successor shall be entitled to receive
compensation out of payments on Mortgage Loans in an amount equal to the compensation that the Master Servicer would otherwise have received pursuant to Section 3.09 hereof (or such other compensation as the Indenture Trustee and such successor
shall agree). The appointment of a successor Master Servicer shall not affect any liability of the predecessor Master Servicer that may have arisen under this Agreement prior to its termination as Master Servicer (including the obligation to
purchase Mortgage Loans pursuant to Section 3.01 hereof, to pay any deductible under an insurance policy pursuant to Section 3.04 hereof or to indemnify the Indenture Trustee pursuant to Section 6.06 hereof), nor shall any successor Master Servicer
be liable for any acts or omissions of the predecessor Master Servicer or for any breach by such Master Servicer of any of its representations or warranties contained herein or in any related document or agreement. The Indenture Trustee and such
successor shall take such action, consistent with this Agreement and the requirements (including any notice requirements) of applicable law, as shall be necessary to effectuate any such succession. Notwithstanding the foregoing, the Indenture
Trustee, in its capacity as successor Master Servicer, shall not be 

  

 34 

	 	 
responsible for the lack of information and/or documents that it cannot obtain through reasonable efforts or for failing to take any action that the
Indenture Trustee is legally prohibited from taking by applicable law. 

  

	 	(b)	Any successor, including the Indenture Trustee, to the Master Servicer as servicer shall during its term as Master Servicer (i) continue to service and administer the Mortgage Loans
for the benefit of the Securityholders, (ii) maintain in force a policy or policies of insurance covering errors and omissions in the performance of its obligations as Master Servicer hereunder and a fidelity bond in respect of its officers,
employees and agents to the same extent as the Master Servicer is so required pursuant to Section 3.13 hereof and (iii) be bound by the terms of the Insurance Agreement. 

  

	 	(c)	Any successor Master Servicer, including the Indenture Trustee, shall not be deemed in default or to have breached its duties hereunder if the predecessor Master Servicer shall fail
to deliver any required deposit to the Custodial Account or otherwise cooperate with any required servicing transfer or succession hereunder. 

  

	 	(d)	[In connection with the termination or resignation of the Master Servicer hereunder, either (i) the successor Master Servicer, including the Indenture Trustee if the Indenture
Trustee is acting as successor Master Servicer, shall represent and warrant that it is a member of MERS in good standing and shall agree to comply in all material respects with the rules and procedures of MERS in connection with the servicing of the
Mortgage Loans that are registered with MERS, in which case the predecessor Master Servicer shall cooperate with the successor Master Servicer in causing MERS to revise its records to reflect the transfer of servicing to the successor Master
Servicer as necessary under MERS’ rules and regulations, or (ii) the predecessor Master Servicer shall cooperate with the successor Master Servicer in causing MERS to execute and deliver an assignment of Mortgage in recordable form to transfer
the Mortgage from MERS to the Indenture Trustee and to execute and deliver such other notices, documents and other instruments as may be necessary or desirable to effect a transfer of such Mortgage Loan or servicing of such Mortgage Loan on the MERS
System to the successor Master Servicer. The predecessor Master Servicer shall file or cause to be filed any such assignment in the appropriate recording office. The predecessor Master Servicer shall bear any and all fees of MERS, costs of preparing
any assignments of Mortgage, and fees and costs of filing any assignments of Mortgage that may be required under this subsection (d). The successor Master Servicer shall cause such assignment to be delivered to the Indenture Trustee or the Custodian
promptly upon receipt of the original with evidence of recording thereon or a copy certified by the public recording office in which such assignment was recorded.] 

  
 Section 7.03 Notification to Securityholders. Upon any termination of or appointment of a successor to the Master
Servicer pursuant to this Article VII or Section 6.04 hereof, the 

  

 32 

 
Indenture Trustee shall give prompt written notice thereof to the Securityholders, the Enhancer, the Issuer and each Rating Agency. 
  
 ARTICLE VIII 
  
 Miscellaneous Provisions 
  
 Section 8.01 Amendment. This Agreement may be amended from time to time by the parties hereto; provided, that any such amendment shall be
accompanied by a letter from each Rating Agency to the effect that such amendment will not result in a Rating Event, if determined without regard to the Policy, and a tax opinion to the effect that neither such amendment nor any action permitted by
such amendment and not otherwise permitted by this Agreement will cause either REMIC I, REMIC II or REMIC III to fail to qualify as a REMIC or give rise to the imposition of a tax on “prohibited transactions” of a REMIC, or prohibited
contributions to a REMIC, on either REMIC I, REMIC II or REMIC III; and provided further, that the Enhancer and the Indenture Trustee shall consent thereto. 
  
 Section 8.02 GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND
REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 
  
 Section 8.03 Notices. All demands, notices and communications hereunder shall be in writing and shall be deemed to have been duly given if personally delivered at or mailed by certified mail, return receipt
requested, to (a) in the case of the Master Servicer, [WELLS FARGO] [NAME AND ADDRESS], (b) in the case of the Enhancer, [ENHANCER NAME & ADDRESS], (c) in the case of Moody’s, Home Mortgage Loan Monitoring Group, 4th Floor, 99 Church
Street, New York, New York 10001, (d) in the case of Standard & Poor’s, 55 Water Street, New York, New York 10004, Attention: Residential Mortgage Surveillance Group, (e) in the case of the Owner Trustee, [OWNER TRUSTEE NAME & ADDRESS],
(f) in the case of the Issuer, [ISSUER] c/o the Owner Trustee at the address set forth in clause (e) above, and (g) in the case of the Indenture Trustee, at the Corporate Trust Office; or, with respect to each of the foregoing Persons, at such other
address as shall be designated by such Person in a written notice to the other foregoing Persons. Any notice required or permitted to be mailed to a Securityholder shall be given by first class mail, postage prepaid, at the address of such
Securityholder as shown in the Note Register or Certificate Register, as the case may be. Any notice so mailed within the time prescribed in this Agreement shall be conclusively presumed to have been duly given, whether or not the related
Securityholder receives such notice. Any notice or other document required to be delivered or mailed by the Indenture Trustee to any Rating Agency shall be given on a reasonable efforts basis and only as a matter of courtesy and accommodation, and
the Indenture Trustee shall have no liability for failure to deliver any such notice or document to any Rating Agency. 
  
 Section 8.04 Severability of Provisions. If any one or more of the covenants, agreements, provisions or terms of this Agreement shall be for any
reason whatsoever held invalid, then such covenants, agreements, provisions or terms shall be deemed severable from the remaining covenants, agreements, provisions or terms of this Agreement and shall in no way 

  

 33 

 
affect the validity or enforceability of the other provisions of this Agreement or the Securities or the rights of the Securityholders. 
  
 Section 8.05 Third-Party Beneficiaries. This Agreement shall inure to
the benefit of and be binding upon the parties hereto, the Securityholders, the Enhancer, the Owner Trustee and their respective successors and permitted assigns. Except as otherwise provided in this Agreement, no other Person shall have any right
or obligation hereunder. 
  
 Section 8.06 Counterparts.
This instrument may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument. 
  
 Section 8.07 Effect of Headings and Table of Contents. The Article and
Section headings herein and the Table of Contents are for convenience only and shall not affect the construction hereof. 
  
 Section 8.08 Termination Upon Purchase by the Master Servicer or Liquidation of All Mortgage Loans; Partial Redemption. 
  

	 	(a)	The respective obligations and responsibilities of the Master Servicer, the Issuer and the Indenture Trustee created hereby shall terminate upon the last action required to be taken
by the Issuer pursuant to the Trust Agreement and by the Indenture Trustee pursuant to the Indenture following the earlier of: 

  

	 	(i)	the date on or before which the Indenture or the Trust Agreement is terminated, or 

  

	 	(ii)	the purchase by the Master Servicer from the Issuer of all Mortgage Loans and REO Property in accordance with Section 8.08(b) below. 

  

	 	(b)	The Master Servicer shall have the right to purchase from the Issuer all of the Mortgage Loans and REO Property if the Pool Balance as of any Payment Date is less than 10% of the
Pool Balance as of the Cut-off Date (provided that a draw on the Policy would not occur as a result of such purchase and provided further that the purchase price will provide sufficient funds to pay the outstanding Note Balance and accrued and
unpaid interest on the Notes to the Payment Date on which such amounts are to be distributed to Securityholders), at a price equal to 100% of the aggregate unpaid Principal Balance of all such remaining Mortgage Loans, plus accrued and unpaid
interest thereon up to the date preceding the Payment Date on which such amounts are to be distributed to the Securityholders (and, in the case of REO Property, the fair market value of the REO Property), plus any amounts due and owing to the
Enhancer under the Insurance Agreement (and any unpaid Servicing Fee shall be deemed to have been paid at such time) plus any Interest Shortfall and interest owed thereon to the Noteholders. 

  
 If such right is exercised by the Master Servicer, the Master Servicer shall deposit the
amount calculated pursuant to this Section 8.08(b) with the Indenture Trustee pursuant to Section 4.10 of the Indenture and, upon the receipt of such deposit, the Indenture Trustee or Custodian shall 

  

 34 

 
release to the Master Servicer, the files pertaining to the Mortgage Loans being purchased. The Master Servicer, at its expense, shall prepare and deliver to
the Indenture Trustee for execution, at the time the related Mortgage Loans are to be released to the Master Servicer, appropriate documents assigning each such Mortgage Loans from the Indenture Trustee or the Issuer to the Master Servicer or the
appropriate party. 
  
 The Master Servicer shall send written
notice to the Enhancer of its intent to exercise its right to purchase any of the Mortgage Loans pursuant to this Section 8.08(b). 
  
 Section 8.09 Certain Matters Affecting the Indenture Trustee. For all purposes of this Agreement, in the performance of any of its duties or in the
exercise of any of its powers hereunder, the Indenture Trustee shall be subject to and entitled to the benefits of Article VI of the Indenture. 
  
 Section 8.10 Owner Trustee Not Liable for Related Documents. The recitals contained herein shall be taken as the statements of the Master Servicer,
and the Owner Trustee and the Indenture Trustee assume no responsibility for the correctness thereof. The Owner Trustee and the Indenture Trustee make no representations as to the validity or sufficiency of this Agreement, of any Basic Document or
Related Document, or of the Certificates (other than the signatures of the Owner Trustee and the Indenture Trustee on the Certificates) or the Notes. The Owner Trustee and the Indenture Trustee shall at no time have any responsibility or liability
with respect to the sufficiency of the Trust Estate or its ability to generate the payments to be distributed to Certificateholders under the Trust Agreement or the Noteholders under the Indenture, including the compliance by the Depositor, the
Sellers or the Master Servicer with any warranty or representation made under any Basic Document or the accuracy of any such warranty or representation, or any action of any person taken in the name of the Owner Trustee or the Indenture Trustee.

  
 Section 8.11 No Petition. The Master Servicer and the
Indenture Trustee, by entering into this Agreement, and the Securityholders, the Enhancer, the Owner Trustee and their respective successors and permitted assigns, by accepting the benefit of this Agreement, hereby covenant and agree that they will
not at any time institute against the Issuer, or join in any institution against the Issuer of, any bankruptcy Proceedings under any United States federal or state bankruptcy or similar law in connection with any obligations to the Certificates, the
Notes, or any of the other Basic Documents. 
  

 35 

 IN WITNESS WHEREOF, the Master Servicer, the Issuer and the Indenture Trustee have caused this Agreement
to be duly executed by their respective officers or representatives all as of the day and year first above written. 
  

			
	 [WELLS FARGO],
as Master Servicer

		
	 By:
	 	 
	 	 	 Name:

	 	 	 Title:

	
	 [ISSUER]
as Issuer

		
	 By:
	 	OWNER TRUSTEE, not in its individual capacity but solely as Owner Trustee
		
	 By:
	 	 
	 	 	 Name:

	 	 	 Title:

	
	 [INDENTURE TRUSTEE],
as Indenture Trustee

		
	 By:
	 	 
	 	 	 Name:

	 	 	 Title:

  

 S-1 

 EXHIBIT A 
  
 MORTGAGE LOAN SCHEDULE 
  
 [TO BE PROVIDED UPON REQUEST] 
  

 A-1 

 EXHIBIT B 
  
 LIMITED POWER OF ATTORNEY 
  
 KNOW ALL MEN BY THESE PREMISES: 
  
 That [INDENTURE TRUSTEE], as indenture trustee (the “Indenture Trustee”), under the indenture dated as of [DATE] (the “Indenture”),
between [ISSUER] as issuer and the Indenture Trustee, a national banking association organized and existing under the laws of the United States of America, and having its principal office located at [INDENTURE TRUSTEE ADDRESS], hath made,
constituted and appointed, and does by these presents make, constitute and appoint [__________], a corporation organized and existing under the laws of the [___________], its true and lawful Attorney-in-Fact, with full power and authority to sign,
execute, acknowledge, deliver, file for record, and record any instrument on its behalf and to perform such other act or acts as may be customarily and reasonably necessary and appropriate to effectuate the following enumerated transactions in
respect of any of the Mortgages securing a Mortgage Loan and the related Mortgage Notes for which the undersigned is acting as Indenture Trustee for various Securityholders (whether the undersigned is named therein as mortgagee or beneficiary or has
become mortgagee by virtue of endorsement of such Mortgage Note secured by any such Mortgage) and for which [WELLS FARGO] is acting as Master Servicer pursuant to a Master Servicing Agreement dated as [DATE] (the “Master Servicing
Agreement”). 
  
 This appointment shall apply to the following enumerated
transactions only: 
  

	1.	The modification or re-recording of a Mortgage, where said modification or re-recording is for the purpose of correcting the Mortgage to conform same to the original intent of the
parties thereto or to correct title errors discovered after such title insurance was issued and said modification or re-recording, in either instance, does not adversely affect the Lien of the Mortgage as insured. 

  

	2.	The subordination of the Lien of a Mortgage to an easement in favor of a public utility company or a government agency or unit with powers of eminent domain; this section shall
include, without limitation, the execution of partial satisfactions/releases, partial reconveyances or the execution of requests to trustees to accomplish same. 

  

	3.	With respect to a Mortgage, the foreclosure, the taking of a deed in lieu of foreclosure, or the completion of judicial or non-judicial foreclosure or termination, cancellation or
rescission of any such foreclosure, including, without limitation, any and all of the following acts: 

  

	 	a.	The substitution of trustee(s) serving under a Mortgage, in accordance with state law and the Mortgage; 

  

	 	b.	Statements of breach or non-performance; 

  

	 	c.	Notices of default; 

  

	 	d.	Cancellations/rescissions of notices of default and/or notices of sale; 

  

 B-1 

	 	e.	The taking of a deed in lieu of foreclosure; and 

  

	 	f.	Such other documents and actions as may be necessary under the terms of the Mortgage or state law to expeditiously complete said transactions. 

  

	4.	The conveyance of the properties to the mortgage insurer, or the closing of the title to the property to be acquired as real estate owned, or conveyance of title to real estate
owned. 

  

	5.	The completion of loan assumption agreements. 

  

	6.	The full satisfaction/release of a Mortgage or full reconveyance upon payment and discharge of all sums secured thereby, including, without limitation, cancellation of the related
Mortgage Note. 

  

	7.	The assignment of any Mortgage and the related Mortgage Note, in connection with the repurchase of the Mortgage Loan secured and evidenced thereby or the removal of any Mortgage
from the MERS® System or the re-recording of such
mortgage in the name of MERS. 

  

	8.	The full assignment of a Mortgage upon payment and discharge of all sums secured thereby in conjunction with the refinancing thereof, including, without limitation, the endorsement
of the related Mortgage Note. 

  

	9.	The modification or re-recording of a Mortgage, where said modification or re-recording is for the purpose of any modification pursuant to Section 3.01 of the Master Servicing
Agreement. 

  

	10.	The execution of partial satisfactions/releases pursuant to Section 3.01 of the Master Servicing Agreement. 

  
 The undersigned gives said Attorney-in-Fact full power and authority to
execute such instruments and to do and perform all and every act and thing necessary and proper to carry into effect the power or powers granted by or under this Limited Power of Attorney as fully as the undersigned might or could do, and hereby
does ratify and confirm to all that said Attorney-in-Fact shall lawfully do or cause to be done by authority hereof. 
  
 Capitalized terms used herein that are not otherwise defined shall have the meanings ascribed thereto in Appendix A to the Indenture. 
  

 B-2 

 Third parties without actual notice may rely upon the exercise of the power granted under this Limited
Power of Attorney; and may be satisfied that this Limited Power of Attorney shall continue in full force and effect has not been revoked unless an instrument of revocation has been made in writing by the undersigned. 
  

			
	 [INDENTURE TRUSTEE], not in its individual capacity but solely as Indenture Trustee

		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

  

 B-3 

					
	STATE OF	  	)	  	 
	 	  	)	  	SS.
	COUNTY OF	  	)	  	 

  
 On this ___ day of
[DATE], before me the undersigned, Notary Public of said State, personally appeared ______________, personally known to me to be duly authorized officers of [INDENTURE TRUSTEE] that executed the within instrument and personally known to me to be the
persons who executed the within instrument on behalf of [INDENTURE TRUSTEE] therein named, and acknowledged to me such [INDENTURE TRUSTEE] executed the within instrument pursuant to its by-laws. 
  

			
	 WITNESS my hand and official seal.
  
 Notary Public in and for the

	 State of    
	 	 

  
 After recording, please mail to:

  

			
		
	Attn:	 	 

  

 B-4 

 EXHIBIT C 
  
 FORM OF REQUEST FOR RELEASE 
  
 DATE: 
  
 TO: 
  

	RE:	REQUEST FOR RELEASE OF DOCUMENTS 

  
 In connection with your administration of the Mortgage Loans, we request the release of the Mortgage File described below. 
  

			
	Master Servicing Agreement Dated:	 	 
	Series #:	 	 
	Account #:	 	 
	Pool #:	 	 
	Loan #:	 	 
	Borrower Name(s):	 	 
	Reason for Document Request: (circle one)	 	Mortgage Loan
	Prepaid in Full	 	Mortgage Loan Repurchased

  
 “We hereby certify that all
amounts received or to be received in connection with such payments which are required to be deposited have been or will be so deposited as provided in the Master Servicing Agreement.” 
  

	
	
	  
	 [WELLS FARGO]
 Authorized Signature

  
 ****************************************************************************** 
  
 TO CUSTODIAN: Please acknowledge this request, and check off documents being enclosed with a copy of this form. You should retain this form for your files in accordance with the terms of the Master Servicing Agreement. 
  
 Enclosed Documents:        [
]    Mortgage Note 
  

			
		
	Name 	 	 
		
	Title 	 	 
		
	Date 	 	 

  

 B-5 

 EXHIBIT D-1 
  
 FORM OF FORM 10-K CERTIFICATION 
  
 I, [identify the certifying individual], certify that: 
  
 1. I have reviewed the annual report on Form 10-K for the fiscal year ______, and all reports on Form 8-K containing distribution or servicing reports
filed in respect of periods included in the year covered by that annual report, of [ISSUER] (the “Trust”) created pursuant to the Master Servicing Agreement, dated as of [DATE] (the “Master Servicing Agreement”), among the Trust,
[WELLS FARGO] (the “Master Servicer”) and [INDENTURE TRUSTEE] (the “Indenture Trustee”); 
  
 2. Based on my knowledge, the information in these reports, taken as a whole, does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading as of the last day of the period covered by that annual report; 
  
 3. Based on my knowledge, the servicing information required to be provided
to the Indenture Trustee by the Master Servicer under the Master Servicing Agreement is included in these reports; 
  
 4. I am responsible for reviewing the activities performed by the Master Servicer under the Master Servicing Agreement and based upon the review required
under the Master Servicing Agreement, and, except as disclosed in the report, the Master Servicer has fulfilled its obligations under the Master Servicing Agreement; and 
  
 5. I have disclosed to the Master Servicer’s certified public accountants all significant deficiencies relating to the
Master Servicer’s compliance with the minimum servicing standards in accordance with a review conducted in compliance with the Uniform Single Attestation Program for Mortgage ers as set forth in the Master Servicing Agreement. 
  

					
			
	Date:	 	 	 	 
		
	 	 	*
	Name:	 	 
	Title:	 	 

  

	*	to be signed by the senior officer in charge of the servicing functions of the Master Servicer 

  

 D-1 

 EXHIBIT D-2 
  
 FORM OF BACK-UP CERTIFICATION TO FORM 10-K CERTIFICATE 
  
 The undersigned, a Responsible Officer of [INDENTURE TRUSTEE] (the “Indenture Trustee”) certifies that: 
  
 (a) The Indenture Trustee has performed all of the duties specifically
required to be performed by it pursuant to the provisions of the Master Servicing Agreement dated as of [DATE] (the “Agreement”) by and among [ISSUER], as Issuer, [WELLS FARGO], as Master Servicer, and the Indenture Trustee in accordance
with the standards set forth therein. 
  
 (b) The information
listed below, provided by the Indenture Trustee to the Master Servicer pursuant to Section 4.01(c) of the Agreement, is accurate as of the last day of the [DATE] calendar year: 
  
 (i) a list of Noteholders as shown on the Note Register as of the end of such calendar year, 
  
 (ii) copies of all pleadings, other legal process and any
other documents relating to any claims, charges or complaints involving the Indenture Trustee, as trustee, or the Trust Estate that, to the actual knowledge of a Responsible Officer of the Indenture Trustee, have been received by the Indenture
Trustee, 
  
 (iii) notice of all matters that, to
the actual knowledge of a Responsible Officer of the Indenture Trustee, have been submitted to a vote of the Noteholders or Certificateholders, other than those matters that have been submitted to a vote of the Noteholders or Certificateholders at
the request of the Depositor or the Master Servicer, and 
  
 (iv) notice of any failure of the Indenture Trustee to make any distribution to the Noteholders or Certificateholders as required pursuant to the Indenture or Trust Agreement, as applicable. 
  
 Capitalized terms used and not defined herein shall have the meanings given
such terms in the Agreement. 
  
 IN WITNESS WHEREOF, I have duly
executed this certificate as of [DATE]. 
  

			
		
	By:	 	 
	 Name:
	 	 
	 Title:
	 	 

  

 D-2Form of Note for the Company's

 Exhibit 4.01 
  
 THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE THEREOF. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN CERTIFICATED FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO A NOMINEE OF DTC
OR BY DTC OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO CITIGROUP GLOBAL MARKETS HOLDINGS INC. OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
  

			
	No. R-1	  	INITIAL PRINCIPAL AMOUNT
	CUSIP 173079 74 0	  	REPRESENTED $38,000,000
	 	  	representing 3,800,000 SEQUINS
	 	  	($10 per SEQUINS)

  
 CITIGROUP GLOBAL
MARKETS HOLDINGS INC. 
 7.25% Select EQUity Indexed NoteSSM Based Upon 
 the Common Stock of Altria Group, Inc.
Due June 1, 2006 
  
 Citigroup Global Markets Holdings Inc., a New
York corporation (hereinafter referred to as the “Company”, which term includes any successor corporation under the Indenture herein referred to), for value received and on condition that this Note is not redeemed by the Company
prior to June 1, 2006 (the “Stated Maturity Date”), hereby promises to pay to CEDE & CO., or its registered assigns, the Maturity Payment (as defined below), on the Stated Maturity Date. This Note will bear quarterly payments of
interest, is not subject to any sinking fund, is not subject to redemption at the option of the holder thereof prior to the Stated Maturity Date, and is not subject to the defeasance provisions of the Indenture. 
  
 Payment of the Maturity Payment with respect to this Note shall be made upon
presentation and surrender of this Note at the corporate trust office of the Trustee in the Borough of Manhattan, The City and State of New York, in the common stock of Altria Group, Inc. (“Altria”). 
  
 This Note is one of the series of 3,800,000 7.25% Select EQUity Indexed
NoteSSM Based Upon the Common Stock of Altria Group, Inc. Due June 1, 2006 (the “SEQUINS”).

 INTEREST 
  
 The SEQUINS bear interest at the rate of 7.25% per annum. Interest will be paid in cash quarterly on the 1st day of each March, June, September and
December, commencing on September 1, 2005 (each such date, an “Interest Payment Date”). 
  
 Interest will be payable to the persons in whose names the SEQUINS are registered at the close of business on the fifth Business Day preceding each
Interest Payment Date. Interest will be computed on the basis of a 360-day year of twelve 30-day months. If an Interest Payment Date falls on a day that is not a Business Day, the interest payment to be made on such Interest Payment Date will be
made on the next succeeding Business Day with the same force and effect as if made on such Interest Payment Date, and no additional interest will accrue as a result of such delayed payment. 
  
 “Business Day” means any day that is not a Saturday, a Sunday or a
day on which the securities exchanges or banking institutions or trust companies in the City of New York are authorized or obligated by law or executive order to close. 
  
 PAYMENT AT MATURITY 
  
 On the Stated Maturity Date, if the Company does not exercise its Call Option (as described below) prior to or on such date, holders of the SEQUINS will
receive for each SEQUINS the final quarterly interest payment and the Maturity Payment described below. 
  
 DETERMINATION OF THE MATURITY PAYMENT 
  
 The Maturity Payment for each SEQUINS equals a number of shares of Altria common stock equal to the Exchange Ratio. The Exchange Ratio equals 0.14706. 
  

In lieu of any fractional share of Altria common stock otherwise payable in respect of any SEQUINS, at maturity each holder of a SEQUINS will receive
an amount in cash equal to the value of such fractional share. The number of full shares of Altria common stock, and any cash in lieu of a fractional share, to be delivered at maturity to a holder of a SEQUINS will be calculated based on the
aggregate number of SEQUINS held by such holder. 
  
 CALL OPTION 
  
 The Company may exercise its option to call (its “Call
Option”) the SEQUINS in whole, but not in part, on any Business Day beginning on November 28, 2005 through and including the Stated Maturity Date (such day being the “Call Date”). The Company will provide at least ten
Business Days’ notice (as described below) before the Call Date. 
  
 If the Company exercises its Call Option, holders of the SEQUINS will receive for each SEQUINS a price in cash (the “Call Price”) that, together with all other payments made on the SEQUINS from the date hereof (the
“Issue Date”) to and including the Call Date, will provide a yield to call of 12% per annum (compounded annually). The Call Price will be calculated by determining the amount that, when discounted from the Call Date to the Issue
Date by a discount 
  

 2 

 factor based on an annual yield to call of 12% (calculated on the basis of a 360-day year of twelve 30-day months,
compounded annually) and added to the present value of all interest payments made to and including the Call Date discounted to the Issue Date by that same discount factor, will equal the initial price of the SEQUINS. The present value of each
interest payment on the SEQUINS used to determine the Call Price will be calculated assuming each payment is made on the calendar day scheduled for that payment. A delay in payment may arise for reasons such as a scheduled Interest Payment Date
falling on a day that is not a Business Day and, as a result, the payment being delayed until the next succeeding Business Day. Any such delay will not be taken into account when calculating the Call Price. The Call Price will be rounded to the
fourth decimal place and will not include the amount of unpaid interest accrued to and including the Call Date; however, on the Call Date holders of the SEQUINS will receive the Call Price plus an amount equal to the accrued and unpaid interest.

  
 So long as the SEQUINS are represented by this Note and are
held on behalf of DTC, notices relating to the Company’s Call Option and all other notices will be given by delivery to DTC. If the SEQUINS are no longer represented by this Note and are not held on behalf of DTC, notices relating to the
Company’s Call Option and all other notices will be published in a leading daily newspaper in the City of New York, which is expected to be The Wall Street Journal. 
  
 DILUTION ADJUSTMENTS 
  
 If Altria, after the closing date of the offering of the SEQUINS, 
  
 (1) pays a stock dividend or makes a distribution with respect to its common stock in shares of the stock, 
  
 (2) subdivides or splits the outstanding shares of its common stock into a
greater number of shares, 
  
 (3) combines the outstanding shares
of the common stock into a smaller number of shares, or 
  
 (4)
issues by reclassification of shares of its common stock any shares of other common stock of Altria, 
  
 then, in each of these cases, the Exchange Ratio will be multiplied by a dilution adjustment equal to a fraction, the numerator of which will be the number of shares of common stock outstanding immediately after the
event, plus, in the case of a reclassification referred to in (4) above, the number of shares of such other common stock of Altria, and the denominator of which will be the number of shares of common stock outstanding immediately before the event.

  
 If Altria, after the closing date, issues, or declares a
record date in respect of an issuance of, rights or warrants to all holders of its common stock entitling them to subscribe for or purchase shares of its common stock at a price per share less than the Then-Current Market Price 
  

 3 

 of the common stock, other than rights to purchase common stock pursuant to a plan for the reinvestment of dividends or
interest, then, in each case, the Exchange Ratio will be multiplied by a dilution adjustment equal to a fraction, the numerator of which will be the number of shares of common stock outstanding immediately before the adjustment is effected, plus the
number of additional shares of common stock offered for subscription or purchase pursuant to the rights or warrants, and the denominator of which will be the number of shares of common stock outstanding immediately before the adjustment is effected
by reason of the issuance of the rights or warrants, plus the number of additional shares of common stock which the aggregate offering price of the total number of shares of common stock offered for subscription or purchase pursuant to the rights or
warrants would purchase at the Then-Current Market Price of the common stock, which will be determined by multiplying the total number of shares so offered for subscription or purchase by the exercise price of the rights or warrants and dividing the
product obtained by the Then-Current Market Price. To the extent that, after the expiration of the rights or warrants, the shares of common stock offered thereby have not been delivered, the Exchange Ratio will be further adjusted to equal the
Exchange Ratio which would have been in effect had the adjustment for the issuance of the rights or warrants been made upon the basis of delivery of only the number of shares of common stock actually delivered. 
  
 If Altria, after the closing date, declares or pays a dividend or makes a
distribution to all holders of the common stock of any class of its capital stock, the capital stock of one or more of its subsidiaries, evidences of its indebtedness or other non-cash assets, excluding any dividends or distributions referred to in
the above paragraph and excluding any issuance or distribution to all holders of its common stock, in the form of Marketable Securities, of capital stock of one or more of its subsidiaries, or issues to all holders of its common stock rights or
warrants to subscribe for or purchase any of its or one or more of its subsidiaries’ securities, other than rights or warrants referred to in the above paragraph, then, in each of these cases, the Exchange Ratio will be multiplied by a dilution
adjustment equal to a fraction, the numerator of which will be the Then-Current Market Price of one share of the common stock, and the denominator of which will be the Then-Current Market Price of one share of the common stock, less the fair market
value as of the time the adjustment is effected of the portion of the capital stock, assets, evidences of indebtedness, rights or warrants so distributed or issued applicable to one share of common stock. If any capital stock declared or paid as a
dividend or otherwise distributed or issued to all holders of Altria common stock consists, in whole or in part, of Marketable Securities, then the fair market value of such Marketable Securities will be determined by the calculation agent by
reference to the price per share of such capital stock on the principal market on which it is traded as of the time the adjustment is effected. The fair market value of any other distribution or issuance referred to in this paragraph will be
determined by a nationally recognized independent investment banking firm retained for this purpose by the Company, whose determination will be final. 
  
 Notwithstanding the foregoing, in the event that, with respect to any dividend or distribution to which the above paragraph would otherwise apply, the
denominator in the fraction referred to in the above formula is less than $1.00 or is a negative number, then the Company may, at its option, elect to have the adjustment provided by the above paragraph not be made and in lieu of this adjustment,
the Maturity Payment will be deemed to be equal to the fair market 
  

 4 

 value of the capital stock, evidences of indebtedness, assets, rights or warrants (determined, as of the date the
dilution adjustment would otherwise be effected as described below, by a nationally recognized independent investment banking firm retained for this purpose by the Company, whose determination will be final) so distributed or issued applicable to
one share of Altria common stock and each holder of the SEQUINS will have the right to receive at maturity cash in an amount per SEQUINS equal to the Exchange Ratio multiplied by such fair market value. 
  
 If Altria, after the closing date, declares a record date in respect of a
distribution of cash, other than any Permitted Dividends described below, any cash distributed in consideration of fractional shares of common stock and any cash distributed in a Reorganization Event referred to below, by dividend or otherwise, to
all holders of its common stock, or makes an Excess Purchase Payment, then the Exchange Ratio will be multiplied by a dilution adjustment equal to a fraction, the numerator of which will be the Then-Current Market Price of the common stock, and the
denominator of which will be the Then-Current Market Price of the common stock on the record date less the amount of the distribution applicable to one share of common stock which would not be a Permitted Dividend, or, in the case of an Excess
Purchase Payment, less the aggregate amount of the Excess Purchase Payment for which adjustment is being made at the time divided by the number of shares of common stock outstanding on the record date. 
  
 For purposes of these adjustments: 
  
 A “Permitted Dividend” is any cash dividend in respect of Altria
common stock, other than a cash dividend that exceeds the immediately preceding cash dividend, and then only to the extent that the per share amount of this dividend results in an annualized dividend yield on the common stock in excess of 10%.

  
 An “Excess Purchase Payment” is the excess, if any,
of (x) the cash and the value (as determined by a nationally recognized independent investment banking firm retained for this purpose by the Company, whose determination will be final) of all other consideration paid by Altria with respect to one
share of common stock acquired in a tender offer or exchange offer by Altria, over (y) the Then-Current Market Price of the common stock. 
  
 Notwithstanding the foregoing, in the event that, with respect to any dividend, distribution or Excess Purchase Payment to which the fifth paragraph in
this section would otherwise apply, the denominator in the fraction referred to in the formula in that paragraph is less than $1.00 or is a negative number, then the Company may, at its option, elect to have the adjustment provided by the fifth
paragraph in this section not be made and in lieu of this adjustment, the Maturity Payment will be deemed to be equal to the sum of the amount of cash and the fair market value of other consideration (determined, as of the date the dilution
adjustment would otherwise be effected as described below, by a nationally recognized independent investment banking firm retained for this purpose by the Company, whose determination will be final) so distributed or applied to the acquisition of
the common stock in the tender offer or exchange offer applicable to one share of Altria common stock and each holder of the SEQUINS will have the right to receive at maturity cash in an amount per SEQUINS equal to the Exchange Ratio multiplied by
such sum. 
  

 5 

 If Altria, after the closing date, issues or makes a distribution to all holders of its common stock of
the capital stock of one or more of its subsidiaries, in each case in the form of Marketable Securities, then, in each of these cases, each holder of the SEQUINS will receive at maturity for each SEQUINS a combination of shares of Altria common
stock equal to the exchange ratio and a number of shares of such Altria subsidiaries’ capital stock equal to the exchange ratio times the number of shares of such subsidiaries’ capital stock distributed per share of Altria common stock. In
the event a distribution pursuant to this paragraph occurs, following the record date for such distribution, the adjustments described in this section will also apply to such subsidiaries’ capital stock if any of the events described in this
section occurs with respect to such capital stock. 
  
 Each
dilution adjustment will be effected as follows: 
  

	 	•	 	in the case of any dividend, distribution or issuance, at the opening of business on the Business Day next following the record date for determination of holders of Altria common
stock entitled to receive this dividend, distribution or issuance or, if the announcement of this dividend, distribution, or issuance is after this record date, at the time this dividend, distribution or issuance was announced by Altria;

  

	 	•	 	in the case of any subdivision, split, combination or reclassification, on the effective date of the transaction; 

  

	 	•	 	in the case of any Excess Purchase Payment for which Altria announces, at or prior to the time it commences the relevant share repurchase, the repurchase price per share for shares
proposed to be repurchased, on the date of the announcement; and 

  

	 	•	 	in the case of any other Excess Purchase Payment, on the date that the holders of the repurchased shares become entitled to payment in respect thereof. 

  
 All dilution adjustments will be rounded upward or downward to the nearest
1/10,000th or, if there is not a nearest 1/10,000th, to the next lower 1/10,000th. No adjustment in the Exchange Ratio will be required unless the adjustment would require an increase or decrease of at least one percent therein, provided, however,
that any adjustments which by reason of this sentence are not required to be made will be carried forward (on a percentage basis) and taken into account in any subsequent adjustment. If any announcement or declaration of a record date in respect of
a dividend, distribution, issuance or repurchase requiring an adjustment as described herein is subsequently canceled by Altria, or this dividend, distribution, issuance or repurchase fails to receive requisite approvals or fails to occur for any
other reason, then, upon the cancellation, failure of approval or failure to occur, the Exchange Ratio will be further adjusted to the Exchange Ratio which would then have been in effect had adjustment for the event not been made. If any
Reorganization Event, as described below, occurs after the occurrence of one or more events requiring an adjustment as described herein, the dilution adjustments previously 

  

 6 

 
applied to the Exchange Ratio will not be rescinded but will be applied to the new Exchange Ratio provided for below. 
  
 The “Then-Current Market Price” of the common stock, for the
purpose of applying any dilution adjustment, means the average Closing Price per share of common stock for the ten Trading Days immediately before this adjustment is effected or, in the case of an adjustment effected at the opening of business on
the Business Day next following a record date, immediately before the earlier of the date the adjustment is effected and the related Ex-Date. For purposes of determining the Then-Current Market Price, the determination of the Closing Price by the
calculation agent in the event of a Market Disruption Event, as described in the definition of Closing Price, may be deferred by the calculation agent for up to five consecutive Trading Days on which a Market Disruption Event is occurring.

  
 The “Closing Price” of Altria common stock (or any
other security for which a Closing Price must be determined) on any date of determination will be (1) if the common stock or other security is listed on a national securities exchange on that date of determination, the closing sale price or, if no
closing sale price is reported, the last reported sale price on that date on the principal U.S. exchange on which the common stock or other security is listed or admitted to trading, (2) if the common stock or other security is not listed on a
national securities exchange on that date of determination, or if the closing sale price or last reported sale price is not obtainable (even if the common stock or other security is listed or admitted to trading on such exchange), and the common
stock or other security is quoted on the Nasdaq National Market, the closing sale price or, if no closing sale price is reported, the last reported sale price on that date as reported on the Nasdaq, and (3) if the common stock or other security is
not quoted on the Nasdaq on that date of determination or, if the closing sale price or last reported sale price is not obtainable (even if the common stock or other security is quoted on the Nasdaq), the last quoted bid price for the common stock
or other security in the over-the-counter market on that date as reported by the OTC Bulletin Board, the National Quotation Bureau or a similar organization. If no closing sale price or last reported sale price is available pursuant to clauses (1),
(2) or (3) of the preceding sentence or if there is a Market Disruption Event, the Closing Price on any date of determination, unless deferred by the calculation agent as described in the preceding paragraph, will be the arithmetic mean, as
determined by the calculation agent, of the bid prices of the common stock or other security obtained from as many dealers in such security (which may include the Company or any of its other subsidiaries or affiliates), but not exceeding three such
dealers, as will make such bid prices available to the calculation agent. A security “quoted on the Nasdaq National Market” will include a security included for listing or quotation in any successor to such system and the term “OTC
Bulletin Board” will include any successor to such service. 
  
 A “Trading Day” means a day, as determined by the calculation agent, on which trading is generally conducted (or was scheduled to have been generally conducted, but for the occurrence of a Market Disruption Event) on the New York
Stock Exchange, the American Stock Exchange, the Nasdaq National Market, the Chicago Mercantile Exchange and the Chicago Board Options Exchange, and in the over-the-counter market for equity securities in the United States. 
  

 7 

 The “Ex-Date” with respect to any dividend, distribution or issuance is the first date on which
the shares of the common stock trade in the regular way on their principal market without the right to receive this dividend, distribution or issuance. 
  
 A “Market Disruption Event” means the occurrence or existence of any suspension of or limitation imposed on trading (by reason of movements in
price exceeding limits permitted by any exchange or market or otherwise) of, or the unavailability, through a recognized system of public dissemination of transaction information, of accurate price, volume or related information in respect of, (1)
the shares of Altria common stock on any exchange or market, or (2) any options contracts or futures contracts relating to the shares of Altria common stock, or any options on such futures contracts, on any exchange or market if, in each case, in
the determination of the calculation agent, any such suspension, limitation or unavailability is material. 
  
 In the event of any of the following “Reorganization Events”: 
  

	 	•	 	any consolidation or merger of Altria, or any surviving entity or subsequent surviving entity of Altria, with or into another entity, other than a merger or consolidation in which
Altria is the continuing corporation and in which the common stock outstanding immediately before the merger or consolidation is not exchanged for cash, securities or other property of Altria or another issuer; 

  

	 	•	 	any sale, transfer, lease or conveyance to another corporation of the property of Altria or any successor as an entirety or substantially as an entirety; 

 

	 	•	 	any statutory exchange of securities of Altria or any successor of Altria with another issuer, other than in connection with a merger or acquisition; or 

  

	 	•	 	any liquidation, dissolution or winding up of Altria or any successor of Altria, 

  
 each holder of the SEQUINS will have the right to receive a Maturity Payment per SEQUINS of (i) cash in an amount equal to the Exchange
Ratio multiplied by the sum of clauses (1) and (2) in the definition of “Transaction Value” below and (ii) the number of Marketable Securities received for each share of stock in the Reorganization Event multiplied by the Exchange Ratio.

  
 The “Transaction Value” will be the sum of:

  

	 	(1)	for any cash received in a Reorganization Event, the amount of cash received per share of common stock, 

  

	 	(2)	 for any property other than cash or Marketable Securities received in a Reorganization Event, an amount equal to the market value on the date the Reorganization
Event is consummated of that property received per share of common stock, as determined by a nationally recognized independent investment 

  

 8 

	 	 
banking firm retained for this purpose by the Company, whose determination will be final, and 

  

	 	(3)	for any Marketable Securities received in a Reorganization Event, an amount equal to the Closing Price per share of these Marketable Securities on the applicable Trading Day
multiplied by the number of these Marketable Securities received for each share of common stock. 

  
 “Marketable Securities” are any perpetual equity securities or debt securities with a stated maturity after the maturity date, in each case that
are listed on a U.S. national securities exchange or reported by the Nasdaq Stock Market. The number of shares of any equity securities constituting Marketable Securities included in the calculation of Transaction Value pursuant to clause (3) above
will be adjusted if any event occurs with respect to the Marketable Securities or the issuer of the Marketable Securities between the time of the Reorganization Event and maturity that would have required an adjustment as described above, had it
occurred with respect to Altria common stock or Altria. Adjustment for these subsequent events will be as nearly equivalent as practicable to the adjustments described above. 
  
 GENERAL 
  
 This Note is one of a duly authorized issue of debt securities of the Company (the “Debt Securities”), issued and to be issued in one or
more series under a Senior Debt Indenture, dated as of October 27, 1993, as supplemented by a First Supplemental Indenture, dated as of November 28, 1997, a Second Supplemental Indenture, dated as of July 1, 1999, and as further supplemented from
time to time (the “Indenture”), between the Company and The Bank of New York, as Trustee (the “Trustee”, which term includes any successor trustee under the Indenture), to which Indenture reference is hereby made
for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the holders of the SEQUINS, and the terms upon which the SEQUINS are, and are to be, authenticated and delivered.

  
 If an Event of Default with respect to the SEQUINS shall have
occurred and be continuing, the principal of the SEQUINS may be declared due and payable in the manner and with the effect provided in the Indenture. In such case, the amount declared due and payable upon any acceleration permitted by the Indenture
will be determined by the calculation agent and will be equal to, with respect to this Note, the Maturity Payment calculated as though the Stated Maturity Date of this Note were the date of early repayment. In case of default at Maturity of this
Note, this Note shall bear interest, payable upon demand of the beneficial owners of this Note in accordance with the terms of the SEQUINS, from and after Maturity through the date when payment of such amount has been made or duly provided for, at
the rate of 4.25% per annum on the unpaid amount (or the cash equivalent of such unpaid amount) due. 
  
 The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the
Company and the rights of the holders of the Debt Securities of each series to be affected under the Indenture at any time by the Company and a majority in aggregate principal amount of the Debt Securities at the time 

  

 9 

 
Outstanding of each series affected thereby. The Indenture also contains provisions permitting the holders of specified percentages in aggregate principal
amount of the Debt Securities of any series at the time Outstanding, on behalf of the holders of all Debt Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the holder of this Note shall be conclusive and binding upon such holder and upon all future holders of this Note and of any Note issued upon the registration of transfer hereof or in
exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note. 
  
 The holder of this Note may not enforce such holder’s rights pursuant to the Indenture or the SEQUINS except as provided in the Indenture. No
reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company to pay the Maturity Payment with respect to this Note, and to pay any interest on any overdue amount thereof at
the time, place and rate, and in the coin or currency, herein prescribed. 
  
 All terms used in this Note which are defined in the Indenture but not in this Note shall have the meanings assigned to them in the Indenture. 
  
 Unless the certificate of authentication hereon has been executed by the Trustee by manual signature, this Note shall not be
entitled to any benefit under the Indenture or be valid or obligatory for any purposes. 
  

 10 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its corporate seal.

  

			
	CITIGROUP GLOBAL MARKETS HOLDINGS INC.
		
	By:	 	 /s/ Geoffrey S. Richards

	Name:	 	Geoffrey S. Richards
	Title:	 	Vice President

  
 Corporate Seal 
 Attest: 
  

			
	By:	 	 /s/ Douglas C. Turnbull

	Name:	 	Douglas C. Turnbull
	Title:	 	Assistant Secretary
	
	Dated: May 27, 2005
	
	CERTIFICATE OF AUTHENTICATION
	    This is one of the Notes referred to in
	    the within-mentioned Indenture.
	
	The Bank of New York,
	as Trustee
		
	By:	 	 /s/ Geovanni Barris

	 	 	Authorized Signatory

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