Document:

Unassociated Document

    Exhibit 4(b)

     

    MORTGAGE LOAN PURCHASE
AGREEMENT

     

            This Mortgage Loan Purchase Agreement, dated as of
[_________] (the “Agreement”), is
entered into between [_________] (the “Seller”) and Wells
Fargo Commercial Mortgage Securities, Inc. (the “Purchaser”). 

    
                The Seller intends to sell and the Purchaser intends to
purchase certain multifamily and commercial mortgage loans (the “Mortgage Loans”)
identified on the schedule (the “Mortgage Loan
Schedule”) annexed hereto as Exhibit A.  The Purchaser intends to
deposit the Mortgage Loans, along with certain other mortgage loans (the “Other Mortgage
Loans”), into a trust fund (the “Trust Fund”), the
beneficial ownership of which will be evidenced by multiple classes (each, a
“Class”) of
mortgage pass-through certificates (the “Certificates”). 
One or more “real estate mortgage investment conduit” (“REMIC”) elections
will be made with respect to most of the Trust Fund.  The Trust Fund will
be created and the Certificates will be issued pursuant to a Pooling and
Servicing Agreement (the “Pooling and Servicing
Agreement”), dated as of [_________], among the Purchaser, as depositor,
[Wells Fargo Bank, National Association], as master servicer  (in such
capacity, the “Master
Servicer”), [_________], as special servicer (the “Special Servicer”)
and [_________], as trustee (the “Trustee”). 
Capitalized terms used but not defined herein (including the Schedules attached
hereto) have the respective meanings set forth in the Pooling and Servicing
Agreement. 

               Now,
therefore, in consideration of the premises and the mutual agreements set forth
herein, the parties agree as follows:

       

             SECTION
1.                 
Agreement to
Purchase.

       

             The
Seller agrees to sell, and the Purchaser agrees to purchase, the Mortgage Loans
identified on the Mortgage Loan Schedule.  The Mortgage Loan Schedule may
be amended to reflect the actual Mortgage Loans delivered to the Purchaser
pursuant to the terms hereof.  The Mortgage Loans are expected to have an
aggregate principal balance of $[_________] (the “[_________] Mortgage Loan
Balance”) (subject to a variance of plus or minus 5.0%) as of the close
of business on the Cut-Off Date, after giving effect to any payments due on or
before such date, whether or not such payments are received. 

       

             The
[_________] Mortgage Loan Balance, together with the aggregate principal balance
of the Other Mortgage Loans as of the Cut-Off Date (after giving effect to any
payments due on or before such date whether or not such payments are received),
is expected to equal an aggregate principal balance (the “Cut-Off Date Pool
Balance”) of $[_________] (subject to a variance of plus or minus
5.0%).  The purchase and sale of the Mortgage Loans shall take place
[_________], or such other date as shall be mutually acceptable to the parties
to this Agreement (the “Closing Date”). 
The consideration (the “Aggregate Purchase
Price”) for the Mortgage Loans shall be equal to (i) [_________]% of the
[_________] Mortgage Loan Balance as of the Cut-Off Date, plus (ii)
$[_________], which amount represents the amount of interest accrued on the
[_________] Mortgage Loan Balance at the related Net Mortgage Rate for the
period from and including the Cut-Off Date up to but not including the Closing
Date.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

          

      The Aggregate Purchase Price shall be paid to the
Seller or its designee by wire transfer in immediately available funds on the
Closing Date.

             SECTION
2.                 
Conveyance of Mortgage
Loans.

             (a)               
Effective as of the Closing Date,
subject only to receipt by the Seller of the Aggregate Purchase Price and
satisfaction of the other conditions to closing that are for the benefit of the
Seller, the Seller does hereby sell, transfer, assign, set over and otherwise
convey to the Purchaser, without recourse (except as set forth in this
Agreement), all the right, title and interest of the Seller in and to the
Mortgage Loans identified on the Mortgage Loan Schedule as of such date, on a
servicing released basis, together with all of the Seller’s right, title and
interest in and to the proceeds of any related title, hazard, primary mortgage
or other insurance proceeds.

       

             (b)              
The Purchaser or its assignee shall be
entitled to receive all scheduled payments of principal and interest due after
the Cut-Off Date, and all other recoveries of principal and interest collected
after the Cut-Off Date (other than in respect of principal and interest on the
Mortgage Loans due on or before the Cut-Off Date).  All scheduled payments
of principal and interest due on or before the Cut-Off Date but collected on or
after the Cut-Off Date, and recoveries of principal and interest collected on or
before the Cut-Off Date (only in respect of principal and interest on the
Mortgage Loans due on or before the Cut-Off Date and principal prepayments
thereon), shall belong to, and shall be promptly remitted to, the
Seller.

       

             (c)               
No later than the Closing Date, the
Seller shall, on behalf of the Purchaser, deliver to the Trustee, the documents
and instruments specified below with respect to each Mortgage Loan (each a
“Mortgage
File”).  All Mortgage Files so delivered will be held by the Trustee
in escrow at all times prior to the Closing Date.  Each Mortgage File shall
contain the following documents:

       

          (i)               
the original executed Mortgage Note
including any power of attorney related to the execution thereof, together with
any and all intervening endorsements thereon, endorsed on its face or by
allonge   attached thereto (without recourse, representation or
warranty, express or implied) to the order of “[_________], as trustee for the
registered holders of Wells Fargo Commercial Mortgage Trust, Commercial Mortgage
Pass-Through Certificates, Series [_________]” or in blank (or a lost note
affidavit and indemnity with a copy of such Mortgage Note attached
thereto); 

       

            
(ii)             
an original or copy of the Mortgage,
together with any and all intervening assignments thereof, in each case (unless
not yet returned by the applicable recording office) with evidence of recording
indicated thereon or certified by the applicable recording office;

       

             (iii)             
an original or copy of any related
Assignment of Leases (if such item is a document separate from the Mortgage),
together with any and all intervening assignments thereof, in each case (unless
not yet returned by the applicable recording office) with evidence of recording
indicated thereon or certified by the applicable recording office;

       

              (iv)             
an original executed assignment, in
recordable form (except for any missing recording information), of (a) the
Mortgage, (b) any related Assignment of  

       

       

      
        
          
          

        

        
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        Leases (if such
item is a document separate from the Mortgage and to the extent not already
assigned pursuant to preceding clause (a)) and (c) any other recorded document
relating to the Mortgage Loan otherwise included in the Mortgage File, in favor
of “[_________], as trustee for the registered holders of Wells Fargo Commercial
Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series
[_________]”, or in blank; 

       

           (v)              
 an original assignment of all
unrecorded documents relating to the Mortgage Loan (to the extent not already
assigned pursuant to clause (iv) above), in favor of “[_________], as trustee
for the registered holders of Wells Fargo Commercial Mortgage Trust, Commercial
Mortgage Pass-Through Certificates, Series [_________]”, or in
blank; 

       

          (vi)            
originals or copies of any
modification, consolidation, assumption and substitution agreements in those
instances where the terms or provisions of the Mortgage or Mortgage Note have
been consolidated or modified or the Mortgage Loan has been assumed or
consolidated;

       

          (vii)           
the original or a copy of the policy or
certificate of lender’s title insurance or, if such policy has not been issued
or located, an original or copy of an irrevocable, binding commitment (which may
be a marked version of the policy that has been executed by an authorized
representative of the title company or an agreement to provide the same pursuant
to binding escrow instructions executed by an authorized representative of the
title company) to issue such title insurance policy;

       

          (viii)               any filed copies
(bearing evidence of filing) or other evidence of filing satisfactory to the
Purchaser of any prior UCC Financing Statements in favor of the originator of
such Mortgage Loan or in favor of any assignee prior to the Trustee (but only to
the extent the Seller had possession of such UCC Financing Statements prior to
the Closing Date) and, if there is an effective UCC Financing Statement and
continuation statement in favor of the Seller on record with the applicable
public office for UCC Financing Statements, an original UCC Amendment, in form
suitable for filing in favor of “[_________], as trustee for the registered
holders of Wells Fargo Commercial Mortgage Trust, Commercial Mortgage
Pass-Through Certificates, Series [_________], as assignee”, or in blank;

       

          (ix)           
  an original or copy of (a) any
Ground Lease, Memorandum of Ground Lease and ground lessor estoppel, (b) any
loan guaranty or indemnity and (c) any environmental insurance
policy;

       

           (x)            
 any intercreditor agreement
relating to permitted debt (including, without limitation, mezzanine debt) of
the Mortgagor;

       

          (xi)             
copies of any loan agreement, escrow
agreement or security agreement relating to such Mortgage Loan; 

       

          (xii)           
 a copy of any letter of credit
and related transfer documents relating to such Mortgage Loan; 

       

      
        
          
          

        

        
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          (xiii)            
copies of franchise agreements and
franchisor comfort letters, if any, for hospitality properties and applicable
transfer or assignment documents; and 

       

          (xiv)           
with respect to any Companion Loan, all
of the above documents with respect to such Companion Loan and the related
Intercreditor Agreement; provided that a copy
of each Mortgage Note relating to such Companion Loan, rather than the original,
shall be provided, and no assignments shall be provided.

       

             (d)              
The Seller shall take all actions
reasonably necessary (i) to permit the Trustee to fulfill its obligations
pursuant to Section 2.01(d) of the Pooling and Servicing Agreement and (ii) to
perform its obligations described in Section 2.01(d) of the Pooling and
Servicing Agreement.  Without limiting the generality of the foregoing, if
a draw upon a letter of credit is required before its transfer to the Trust Fund
can be completed, the Seller shall draw upon such letter of credit for the
benefit of the Trust pursuant to written instructions from the Master
Servicer.  The Seller shall reimburse the Trustee for all reasonable costs
and expenses, if any, incurred by the Trustee for recording any documents
described in Section 2(c)(iv)(c) hereof and filing any assignments of UCC
Financing Statements described in the proviso in the third to last sentence in
Section 2.01(d) of the Pooling and Servicing Agreement.

       

             (e)               All documents and records (except draft
documents, privileged communications and internal correspondence and credit, due
diligence and other underwriting analysis, documents, data or internal
worksheets, memoranda, communications and evaluations of the Seller) relating to
each Mortgage Loan and in the Seller’s possession (the “Additional Mortgage Loan
Documents”) that are not required to be delivered to the Trustee shall
promptly be delivered or caused to be delivered by the Seller to the Master
Servicer or at the direction of the Master Servicer to the appropriate
sub-servicer, together with any related escrow amounts and reserve
amounts.

       

             (f)               
The Seller shall take such actions as
are reasonably necessary to assign or otherwise grant to the Trust Fund the
benefit of any letters of credit in the name of the Seller which secure any
Mortgage Loan.

       

             SECTION
3.                 
Representations, Warranties
and Covenants of Seller.

       

             (a)               
The Seller hereby represents and
warrants to and covenants with the Purchaser, as of the date hereof,
that:

       

          (i)   
          The Seller is a [national banking
association]/[corporation] organized and validly existing and in good standing
under the laws of the [United States]/[State of [_________]] and possesses all
requisite authority, power, licenses, permits and franchises to carry on its
business as currently conducted by it and to execute, deliver and comply with
its obligations under the terms of this Agreement;

       

          (ii)             
This Agreement has been duly and
validly authorized, executed and delivered by the Seller and, assuming due
authorization, execution and delivery hereof by the Purchaser, constitutes a
legal, valid and binding obligation of the Seller, enforceable against the
Seller in accordance with its terms, except as such enforcement may be limited
by bankruptcy, insolvency, reorganization, receivership, moratorium and other

       

      
        
          
          

        

        
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      laws
relating to or affecting the enforcement of creditors’ rights in general, as
they may be applied in the context of the insolvency of a national banking
association, and by general equity principles (regardless of whether such
enforcement is considered in a proceeding in equity or at law), and by public
policy considerations underlying the securities laws, to the extent that such
public policy considerations limit the enforceability of the provisions of this
Agreement which purport to provide indemnification from liabilities under
applicable securities laws;

       

          (iii)           
 The execution and delivery of
this Agreement by the Seller and the Seller’s performance and compliance with
the terms of this Agreement will not (A) violate the Seller’s [articles of
association]/[certificate of incorporation] or bylaws, (B) violate any law or
regulation or any administrative decree or order to which it is subject or (C)
constitute a material default (or an event which, with notice or lapse of time,
or both, would constitute a material default) under, or result in the breach of,
any material contract, agreement or other instrument to which the Seller is a
party or by which the Seller is bound;

       

           (iv)           
The Seller is not in default with
respect to any order or decree of any court or any order, regulation or demand
of any federal, state, municipal or other governmental agency or body, which
default might have consequences that would, in the Seller’s reasonable and good
faith judgment, materially and adversely affect the condition (financial or
other) or operations of the Seller or its properties or have consequences that
would materially and adversely affect its performance hereunder;

       

          (v)             
The Seller is not a party to or bound
by any agreement or instrument or subject to any [articles of
association]/[certificate of incorporation], bylaws or any other corporate
restriction or any judgment, order, writ, injunction, decree, law or regulation
that would, in the Seller’s reasonable and good faith judgment, materially and
adversely affect the ability of the Seller to perform its obligations under this
Agreement or that requires the consent of any third person to the execution of
this Agreement or the performance by the Seller of its obligations under this
Agreement (except to the extent such consent has been obtained);

       

                                  (vi)           
No consent, approval, authorization or
order of any court or governmental agency or body is required for the execution,
delivery and performance by the Seller of or compliance by the Seller with this
Agreement or the consummation of the transactions contemplated by this Agreement
except as have previously been obtained, and no bulk sale law applies to such
transactions;

       

                              (vii)           
No litigation is pending or, to the
Seller’s knowledge, threatened against the Seller that would, in the Seller’s
good faith and reasonable judgment, prohibit its entering into this Agreement or
materially and adversely affect the performance by the Seller of its obligations
under this Agreement; 

       

                                 
(viii)          
Under generally accepted accounting
principles (“GAAP”) and for
federal income tax purposes, the Seller will report the transfer of the Mortgage
Loans to the Purchaser as a sale of the Mortgage Loans to the Purchaser in
exchange for consideration

       

       

      
        
          
          

        

        
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      consisting of a cash amount equal to the Aggregate Purchase Price. 
The consideration received by the Seller upon the sale of the Mortgage Loans to
the Purchaser will constitute at least reasonably equivalent value and fair
consideration for the Mortgage Loans.  The Seller will be solvent at all
relevant times prior to, and will not be rendered insolvent by, the sale of the
Mortgage Loans to the Purchaser.  The Seller is not selling the Mortgage
Loans to the Purchaser with any intent to hinder, delay or defraud any of the
creditors of the Seller; and

       

          
(ix)           The Seller has examined the information set
forth under the caption “Description of the Mortgage Pool—Significant
Originators” and “—The Sponsor” (the “Regulation AB
Information”) in the Preliminary Prospectus Supplement (as defined
below), the Preliminary Memorandum (as defined below), the Prospectus
Supplement, (as defined below), to the accompanying Prospectus (as defined
below) and the Memorandum (as defined below), relating to the
Certificates.  The Regulation AB Information fully complies with all
applicable requirements of Regulation AB (as defined below).

         

             (b)              
The Seller hereby makes the
representations and warranties contained in Schedule I for the
benefit of the Purchaser and the Trustee for the benefit of the
Certificateholders as of the Closing Date, with respect to (and solely with
respect to) each Mortgage Loan, which representations and warranties are subject
to the exceptions set forth on Schedule
II.

       

             (c)               
With respect to the schedule of
exceptions delivered by the Trustee on the Closing Date, within [_____] Business
Days (or, in the reasonable discretion of the Controlling Class Representative,
[____] Business Days) of the Closing Date, with respect to the documents
specified in clauses (i), (ii), (vii), (ix) (solely with respect to Ground
Leases) and (xii) of the definition of Mortgage File, the Seller shall cure any
material exception listed therein (for the avoidance of doubt, any deficiencies
with respect to the documents specified in clause (ii) resulting solely from a
delay in the return of the related documents from the applicable recording
office, shall be cured in the time and manner described in Section 2.01(c) of
the Pooling and Servicing Agreement).  If such exception is not so cured,
the Seller shall either (1) repurchase the related Mortgage Loan, (2) with
respect to exceptions relating to clause (xii) of the definition of “Mortgage
File”, deposit with the Trustee an amount, to be held in trust in a Special
Reserve Account pursuant to the Pooling and Servicing Agreement, equal to the
amount of the undelivered letter of credit (in the alternative, the Seller may
deliver to the Trustee, with a certified copy to the Master Servicer and
Trustee, a letter of credit for the benefit of the Master Servicer on behalf of
the Trustee and upon the same terms and conditions as the undelivered letter of
credit) which the Master Servicer on behalf of the Trustee may use (or draw
upon, as the case may be) under the same circumstances and conditions as the
Master Servicer would have been entitled to draw on the undelivered letter of
credit, or (3) with respect to any exceptions relating to clauses (i), (ii) and
(vii), deposit with the Trustee an amount, to be held in trust in a Special
Reserve Account pursuant to the Pooling and Servicing Agreement, equal to 25% of
the Stated Principal Balance of the related Mortgage Loan on such date. 
Any funds or letter of credit deposited pursuant to clauses (2) and (3) shall be
held by the Trustee until the earlier of (x) the date on which the Master
Servicer certifies to the Trustee and the Controlling Class Representative that
such exception has been cured (or the Trustee certifies the same to the

       

      
        
          
          

        

        
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      Controlling Class Representative),
at which time such funds or letter of credit, as applicable, shall be returned
to the Seller and (y) [___] Business Days or, if the Controlling Class
Representative has extended the cure period, [___] Business Days after the
Closing Date; provided, however, that if such
exception is not cured within such [___] Business Days or [___] Business Days,
as the case may be, (A) in the case of clause (2), the Trustee shall retain the
funds or letter of credit, as applicable, or (B) in the case of clause (3), the
Seller shall repurchase the related Mortgage Loan in accordance with the terms
and conditions of this Agreement, at which time such funds shall be applied to
the Purchase Price of the related Mortgage Loan and any letter of credit will be
returned to the Seller.

             If
the Seller receives written notice of a Document Defect or a Breach pursuant to
Section 2.03(a) of the Pooling and Servicing Agreement relating to a Mortgage
Loan, then the Seller shall not later than [__] days from receipt of such notice
(or, in the case of a Document Defect or Breach relating to a Mortgage Loan not
being a “qualified mortgage” within the meaning of the REMIC Provisions (a
“Qualified
Mortgage”), not later than [__] days from the date that any party to the
Pooling and Servicing Agreement discovers such Document Defect or Breach; provided the Seller
receives such notice in a timely manner), if such Document Defect or Breach
shall materially and adversely affect the value of the applicable Mortgage Loan,
the interest of the Trust therein or the interests of any Certificateholder,
cure such Document Defect or Breach, as the case may be, in all material
respects, which shall include payment of actual or provable losses and any
Additional Trust Fund Expenses directly resulting from any such Document Defect
or Breach or, if such Document Defect or Breach (other than omissions solely due
to a document not having been returned by the related recording office) cannot
be cured within such [__]-day period, (i) repurchase the affected Mortgage Loan
at the applicable Purchase Price not later than the end of such [__]-day period
or (ii) substitute a Qualified Substitute Mortgage Loan for such affected
Mortgage Loan not later than the end of such [__]-day period (and in no event
later than the second anniversary of the Closing Date) and pay the Master
Servicer for deposit into the Certificate Account, any Substitution Shortfall
Amount in connection therewith; provided, however, that unless
the Breach would cause the Mortgage Loan not to be a Qualified Mortgage, and if
such Document Defect or Breach is capable of being cured but not within such
[__]-day period and the Seller has commenced and is diligently proceeding with
the cure of such Document Defect or Breach within such [__]-day period, such
Seller shall have an additional [__] days to complete such cure (or, failing
such cure, to repurchase or substitute the related Mortgage Loan); provided, further, that with
respect to such additional [__]-day period the Seller shall have delivered an
officer’s certificate to the Trustee setting forth what actions the Seller is
pursuing in connection with the cure thereof and stating that the Seller
anticipates that such Document Defect or Breach will be cured within the
additional [__]-day period; provided, further, that no
Document Defect (other than with respect to a Mortgage Note, Mortgage, title
insurance policy, Ground Lease, any letter of credit, any franchise agreement,
any comfort letter and (if required) any comfort letter transfer documents
(collectively, the “Core Material
Documents”)) shall be considered to materially and adversely affect the
value of the related Mortgage Loan, the interests of the Trust therein or the
interests of any Certificateholder unless the document with respect to which the
Document Defect exists is required in connection with an imminent enforcement of
the mortgagee’s rights or remedies under the related Mortgage Loan, defending
any claim asserted by any borrower or third party with respect to the Mortgage
Loan, establishing the validity or priority of any lien or any collateral
securing the Mortgage Loan or for any immediate significant servicing
obligations; provided, further, with respect
to 

       

       

       

       

       

      
        
          
          

        

        
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      Document Defects
which materially and adversely affect the interests of any Certificateholder,
the interests of the Trust therein or the value of the related Mortgage Loan,
other than with respect to Document Defects relating to the Core Material
Documents, any applicable cure period following the initial [__] day cure period
may be extended by the Master Servicer or the Special Servicer if the document
involved is not needed imminently.  Such extension will end upon [__] days
notice of such need as reasonably determined by the Master Servicer or Special
Servicer (with a possible [__] day extension if the Master Servicer or Special
Servicer agrees that the Seller is diligently pursuing a cure).  The Seller
shall cure all Document Defects which materially and adversely affect the
interests of any Certificateholder, the interests of the Trust therein or the
value of the related Mortgage Loan, regardless of the document involved, no
later than two years following the Closing Date; provided that the
initial [__] day cure period referenced in this paragraph may not be
reduced.  For a period of two years from the Closing Date, so long as there
remains any Mortgage File relating to a Mortgage Loan as to which there is any
uncured Document Defect or Breach, the Seller shall provide the officer’s
certificate to the Trustee described above as to the reasons such Document
Defect or Breach remains uncured and as to the actions being taken to pursue
cure.  Notwithstanding the foregoing, the delivery of a commitment to issue
a policy of lender’s title insurance as described in Representation 12 of
Schedule I hereof in lieu of the delivery of the actual policy of lender’s title
insurance shall not be considered a Document Defect or Breach with respect to
any Mortgage File if such actual policy of insurance is delivered to the Trustee
or a Custodian on its behalf not later than the [__]th day following the
Closing Date. 

             If
(i) any Mortgage Loan is required to be repurchased or substituted for in the
manner described above, (ii) such Mortgage Loan is cross-collateralized and
cross-defaulted with one or more other Mortgage Loans (each, a “Crossed Loan”), and
(iii) the applicable Document Defect or Breach does not constitute a Document
Defect or Breach, as the case may be, as to any other Crossed Loan in such
Crossed Group (without regard to this paragraph), then the applicable Document
Defect or Breach, as the case may be, will be deemed to constitute a Document
Defect or Breach, as the case may be, as to any other Crossed Loan in the
Crossed Group for purposes of this paragraph, and the Seller will be required to
repurchase or substitute for all of the remaining Crossed Loan(s) in the related
Crossed Group as provided in the immediately preceding paragraph unless such
other Crossed Loans in such Crossed Group satisfy the Crossed Loan Repurchase
Criteria and satisfy all other criteria for substitution or repurchase of
Mortgage Loans set forth herein.  In the event that the remaining Crossed
Loans satisfy the aforementioned criteria, the Seller may elect either to
repurchase or substitute for only the affected Crossed Loan as to which the
related Breach or Document Defect exists or to repurchase or substitute for all
of the Crossed Loans in the related Crossed Group.  The Seller shall be
responsible for the cost of any Appraisal required to be obtained by the Master
Servicer to determine if the Crossed Loan Repurchase Criteria have been
satisfied, so long as the scope and cost of such Appraisal has been approved by
the Seller (such approval not to be unreasonably withheld). 

             To
the extent that the Seller is required to repurchase or substitute for a Crossed
Loan hereunder in the manner prescribed above while the Trustee continues to
hold any other Crossed Loans in such Crossed Group, neither the Seller nor the
Purchaser shall enforce any remedies against the other’s Primary Collateral, but
each is permitted to exercise remedies

       

       

       

      
        
          
          

        

        
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      against the Primary
Collateral securing its respective Crossed Loans, including with respect to the
Trustee, the Primary Collateral securing Crossed Loans still held by the
Trustee.

       

             If
the exercise of remedies by one party would materially impair the ability of the
other party to exercise its remedies with respect to the Primary Collateral
securing the Crossed Loans held by such party, then the Seller and the Purchaser
shall forbear from exercising such remedies until the Mortgage Loan documents
evidencing and securing the relevant Crossed Loans can be modified in a manner
that complies with this Agreement to remove the threat of material impairment as
a result of the exercise of remedies or some other accommodation can be
reached.  Any reserve or other cash collateral or letters of credit
securing the Crossed Loans shall be allocated between such Crossed Loans in
accordance with the Mortgage Loan documents, or otherwise on a pro rata basis based upon
their outstanding Stated Principal Balances.  Notwithstanding the
foregoing, if a Crossed Loan included in the Trust Fund is modified to terminate
the related cross-collateralization and/or cross-default provisions, as a
condition to such modification, the Seller shall furnish to the Trustee an
Opinion of Counsel that any modification shall not cause an Adverse REMIC
Event.  Any expenses incurred in good faith by the Purchaser in connection
with such modification or accommodation (including, but not limited to,
recoverable attorney fees) shall be paid by the
Seller.

       

             (d)              
In connection with any permitted
repurchase or substitution of one or more Mortgage Loans contemplated hereby,
upon receipt of a certificate from a Servicing Officer certifying as to the
receipt of the Purchase Price or Substitution Shortfall Amount(s), as
applicable, in the Certificate Account, and the delivery of the Mortgage File(s)
and the Servicing File(s) for the related Qualified Substitute Mortgage Loan(s)
to the Custodian and the Master Servicer, respectively, if applicable (i) the
Trustee shall execute and deliver such endorsements and assignments as are
provided to it by the Master Servicer, in each case without recourse,
representation or warranty, as shall be necessary to vest in the Seller, the
legal and beneficial ownership of each repurchased Mortgage Loan or substituted
Mortgage Loan, as applicable, (ii) the Trustee, the Custodian, the Master
Servicer and the Special Servicer shall each tender to the Seller, upon delivery
to each of them of a receipt executed by the Seller, all portions of the
Mortgage File and other documents pertaining to such Mortgage Loan possessed by
it, and (iii) the Master Servicer and the Special Servicer shall release to the
Seller any Escrow Payments and Reserve Funds held by it in respect of such
repurchased or deleted Mortgage Loans.

       

             (e)               
Without limiting the remedies of the
Purchaser, the Certificateholders or the Trustee on behalf of the
Certificateholders pursuant to this Agreement, it is acknowledged that the
representations and warranties are being made for risk allocation
purposes.  This Section 3 provides the sole remedy available to the
Certificateholders, or the Trustee on behalf of the Certificateholders,
respecting any Document Defect in a Mortgage File or any Breach of any
representation or warranty set forth in or required to be made pursuant to this
Section 3.  Nothing in this Agreement shall prohibit the Purchaser or its
assigns (including the Master Servicer and/or the Special Servicer) from
pursuing any course of action authorized by the Pooling and Servicing Agreement
while the Purchaser asserts a claim or brings a cause of action to enforce any
rights set forth herein against the Seller.  

       

             (f)               
With respect to any Mortgage Loan which
has become a Defaulted Mortgage Loan under the Pooling and Servicing Agreement
or with respect to which the related 

       

      
        
          
          

        

        
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      Mortgaged Property has been
foreclosed and which is the subject of a repurchase claim under this Agreement,
in accordance with Section 2.03 of the Pooling and Servicing Agreement, the
Special Servicer with the consent of the Controlling Class Representative shall
notify the  Seller in writing of its intention to liquidate such Defaulted
Mortgage Loan or REO Property at least [__] days prior to any such action. 
If (a) the Seller consents to such sale and voluntarily agrees to repurchase
such Defaulted Mortgage Loan or REO Property or (b) a court of competent
jurisdiction determines that the Seller is liable under this Agreement to
repurchase such Defaulted Mortgage Loan or REO Property, then such Seller shall
remit to the Purchaser an amount equal to the difference if any of the price of
such Defaulted Mortgage Loan or REO Property as sold and the price at which the
Seller would have had to repurchase such Defaulted Mortgage Loan or REO Property
under this Agreement.  The Seller shall have [__] Business Days after
receipt of notice to determine whether or not to consent to such sale.  If
the Seller does not consent to such sale, the Special Servicer shall contract
with a Determination Party (as defined in the Pooling and Servicing Agreement)
as to the merits of such proposed sale.  If the related Determination Party
determines that such proposed sale is in accordance with the Servicing Standard
and the provisions of the Pooling and Servicing Agreement with respect to the
sale of Defaulted Mortgage Loans and REO Properties and, subsequent to such
sale, a court of competent jurisdiction determines that the Seller was liable
under this Agreement and required to repurchase such Defaulted Mortgage Loan or
REO Property in accordance with the terms hereof, then the Seller shall remit to
the Purchaser an amount equal to the difference (if any) between the proceeds of
the related action and the price at which the Seller would have been obligated
to pay had the Seller repurchased such Defaulted Mortgage Loan or REO Property
prior to the execution of a binding contract of sale with a third party in
accordance with the terms hereof including the costs related to contracting with
the related Determination Party; provided that the
foregoing procedure in this Section 3(f) shall not preclude such Seller from
repurchasing the Defaulted Mortgage Loan or REO Property prior to the execution
of a binding contract of sale with a third party in accordance with the other
provisions of this Section 3 (excluding this Section 3(f)).  If the related
Determination Party determines that the sale of the related Defaulted Mortgage
Loan or REO Property is not in accordance with the Servicing Standards and the
provisions of the Pooling and Servicing Agreement with respect to the sale of
Defaulted Mortgage Loans and REO Properties and the Special Servicer
subsequently sells such Mortgage Loan or REO Property, then the Seller will not
be liable for any such difference (nor any cost of contracting with the
Determination Party).

       

             (g)              
Notwithstanding the foregoing, if there
exists a Breach relating to whether or not the Mortgage Loan documents or any
particular Mortgage Loan document requires the related Mortgagor to bear the
costs and expenses associated with any particular action or matter under such
Mortgage Loan document(s) with respect to matters described in Representations
[23] and [43] of Schedule I hereof, then the Purchaser shall direct the Seller
in writing to wire transfer to the Master Servicer for deposit into the
Certificate Account, within [___] days of the Seller’s receipt of such
direction, the amount of any such costs and expenses borne by the Purchaser, the
Certificateholders, the Master Servicer, the Special Servicer and the Trustee on
their behalf that are the basis of such Breach.  Upon its making such
deposit, the Seller shall be deemed to have cured such Breach in all
respects.  Provided such payment is made in full, this paragraph describes
the sole remedy available to the Purchaser, the Certificateholders, the Master
Servicer, the Special Servicer and the Trustee on their behalf regarding any
such Breach and the

       

      
        
          
          

        

        
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      Seller shall not be obligated to
repurchase the affected Mortgage Loan on account of such Breach or otherwise
cure such Breach.

       

             SECTION
4.                 
Representations and
Warranties of the Purchaser.  In order to induce the Seller to enter
into this Agreement, the Purchaser hereby represents and warrants for the
benefit of the Seller as of the date hereof that:

       

             (a)               
The Purchaser is a corporation duly
organized, validly existing and in good standing under the laws of the State of
North Carolina.  The Purchaser has the full corporate power and authority
and legal right to acquire the Mortgage Loans from the Seller and to transfer
the Mortgage Loans to the Trustee.

       

             (b)              
This Agreement has been duly and
validly authorized, executed and delivered by the Purchaser, all requisite
action by the Purchaser’s directors and officers has been taken in connection
therewith, and (assuming the due authorization, execution and delivery hereof by
the Seller) this Agreement constitutes the valid, legal and binding obligation
of the Purchaser, enforceable against the Purchaser in accordance with its
terms, except as such enforcement may be limited by (A) laws relating to
bankruptcy, insolvency, reorganization, receivership or moratorium, (B) other
laws relating to or affecting the rights of creditors generally, or (C) general
equity principles (regardless of whether such enforcement is considered in a
proceeding in equity or at law).

       

             (c)               
Except as may be required under federal
or state securities laws (and which will be obtained on a timely basis), no
consent, approval, authorization or order of, registration or filing with, or
notice to, any governmental authority or court, is required, under federal or
state law, for the execution, delivery and performance by the Purchaser of or
compliance by the Purchaser with this Agreement, or the consummation by the
Purchaser of any transaction described in this Agreement.

       

             (d)              
None of the acquisition of the Mortgage
Loans by the Purchaser, the transfer of the Mortgage Loans to the Trustee, or
the execution, delivery or performance of this Agreement by the Purchaser,
results or will result in the creation or imposition of any lien on any of the
Purchaser’s assets or property, or conflicts or will conflict with, results or
will result in a breach of, or require or will require the consent of any third
person or constitutes or will constitute a default under (A) any term or
provision of the Purchaser’s certificate of incorporation or bylaws, (B) any
term or provision of any material agreement, contract, instrument or indenture,
to which the Purchaser is a party or by which the Purchaser is bound, or (C) any
law, rule, regulation, order, judgment, writ, injunction or decree of any court
or governmental authority having jurisdiction over the Purchaser or its
assets.

       

             (e)               
Under GAAP and for federal income tax
purposes, the Purchaser will report the transfer of the Mortgage Loans by the
Seller to the Purchaser as a sale of the Mortgage Loans to the Purchaser in
exchange for consideration consisting of a cash amount equal to the Aggregate
Purchase Price.

       

             (f)               
There is no action, suit, proceeding or
investigation pending or to the knowledge of the Purchaser, threatened against
the Purchaser in any court or by or before any

       

      
        
          
          

        

        
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      other governmental agency or
instrumentality which would materially and adversely affect the validity of this
Agreement or any action taken in connection with the obligations of the
Purchaser contemplated herein, or which would be likely to impair materially the
ability of the Purchaser to enter into and/or perform its obligations under the
terms of this Agreement.

       

             (g)              
The Purchaser is not in default with
respect to any order or decree of any court or any order, regulation or demand
of any federal, state, municipal or governmental agency or body, which default
might have consequences that would materially and adversely affect the condition
(financial or other) or operations of the Purchaser or its properties or might
have consequences that would materially and adversely affect its performance
hereunder.

       

             SECTION
5.                 
Closing.  The
closing of the sale of the Mortgage Loans (the “Closing”) shall be
held at the offices of [_________] on the Closing Date.

             The
Closing shall be subject to each of the following
conditions:

       

             (a)               
All of the representations and
warranties of the Seller set forth in or made pursuant to Sections 3(a) and 3(b)
of this Agreement and all of the representations and warranties of the Purchaser
set forth in Section 4 of this Agreement shall be true and correct in all
material respects as of the Closing Date;

       

             (b)              
The Pooling and Servicing Agreement (to
the extent it affects the obligations of the Seller hereunder) and all documents
specified in Section 6 of this Agreement (the “Closing Documents”),
in such forms as are agreed upon and acceptable to the Purchaser, the Seller,
the Underwriters, the Initial Purchasers and their respective counsel in their
reasonable discretion, shall be duly executed and delivered by all signatories
as required pursuant to the respective terms thereof;

       

             (c)               
The Seller shall have delivered and
released to the Trustee (or a Custodian on its behalf) and the Master Servicer,
respectively, all documents represented to have been or required to be delivered
to the Trustee and the Master Servicer pursuant to Section 2 of this
Agreement;

       

             (d)              
All other terms and conditions of this
Agreement required to be complied with on or before the Closing Date shall have
been complied with in all material respects and the Seller shall have the
ability to comply with all terms and conditions and perform all duties and
obligations required to be complied with or performed after the Closing Date;

       

             (e)               
The Seller shall have paid all fees and
expenses payable by it to the Purchaser or otherwise pursuant to this Agreement
as of the Closing Date; and

       

             (f)               
The letters shall have been received
from the independent accounting firm [_______], in form satisfactory to the
Purchaser, relating to certain information regarding the Mortgage Loans and
Certificates as set forth in the Prospectus, the Prospectus Supplement, the
Preliminary Memorandum] and the Memorandum.

       

      
        
          
          

        

        
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             Both
parties agree to use their best efforts to perform their respective obligations
hereunder in a manner that will enable the Purchaser to purchase the Mortgage
Loans on the Closing Date.

       

             SECTION
6.                 
Closing
Documents.  The Closing Documents shall consist of the
following:

       

             (a)               
This Agreement duly executed by the
Purchaser and the Seller;

       

             (b)              
A certificate of the Seller, executed
by a duly authorized officer of the Seller and dated the Closing Date, and upon
which the Purchaser, the Underwriters and the Initial Purchasers may rely, to
the effect that:  (i) the representations and warranties of the Seller in
this Agreement are true and correct in all material respects at and as of the
Closing Date with the same effect as if made on such date; and (ii) the Seller
has, in all material respects, complied with all the agreements and satisfied
all the conditions on its part that are required under this Agreement to be
performed or satisfied at or prior to the Closing Date;

       

             (c)               
An officer’s certificate from an
officer of the Seller (signed in his/her capacity as an officer), dated the
Closing Date, and upon which the Purchaser may rely, to the effect that each
individual who, as an officer or representative of the Seller, signed this
Agreement or any other document or certificate delivered on or before the
Closing Date in connection with the transactions contemplated herein, was at the
respective times of such signing and delivery, and is as of the Closing Date,
duly elected or appointed, qualified and acting as such officer or
representative, and the signatures of such persons appearing on such documents
and certificates are their genuine 

      signatures;

       

             (d)              
An officer’s certificate from an
officer of the Seller (signed in his/her capacity as an officer), dated the
Closing Date, and upon which the Purchaser, the Underwriters and the Initial
Purchasers may rely, to the effect that with respect to the Seller, the Mortgage
Loans, the related Mortgagors and the related Mortgaged Properties (i) such
officer has carefully examined the Specified Portions of the Preliminary
Prospectus Supplement together with all other Time of Sale Information delivered
prior to the Time of Sale and nothing has come to his attention that would lead
him to believe that the Specified Portions of the Preliminary Prospectus
Supplement together with all other Time of Sale Information delivered prior to
the Time of Sale, as of the Time of Sale, or as of the Closing Date, included or
include any untrue statement of a material fact relating to the Mortgage Loans
or omitted or omit to state therein a material fact necessary in order to make
the statements therein relating to the Mortgage Loans, in light of the
circumstances under which they were made, not misleading, (ii) such officer has
carefully examined the Specified Portions of the Prospectus Supplement and
nothing has come to his attention that would lead him to believe that the
Specified Portions of the Prospectus Supplement, as of the date of the
Prospectus Supplement, or as of the Closing Date, included or include any untrue
statement of a

       

      
        
          
          

        

        
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      material fact relating to the
Mortgage Loans or omitted or omit to state therein a material fact necessary in
order to make the statements therein relating to the Mortgage Loans, in light of
the circumstances under which they were made, not misleading, and
(iii) such officer has examined the Specified Portions of the
Memorandum and nothing has come to his attention that would lead him to believe
that the Specified Portions of the Memorandum, as of the date thereof or as of
the Closing Date, included or include any untrue statement of a material fact
relating to the Mortgage Loans or omitted or omit to state therein a material
fact necessary in order to make the statements therein related to the Mortgage
Loans, in the light of the circumstances under which they were made, not
misleading.  The “Specified Portions” of the Prospectus Supplement shall
consist of Annex A thereto, the diskette which accompanies the Prospectus
Supplement (insofar as such diskette is consistent with such Annex A) and the
following sections of the Prospectus Supplement (exclusive of any statements in
such sections that purport to summarize the servicing and administration
provisions of the Pooling and Servicing Agreement):  “Summary of Prospectus
Supplement—The Parties—The Mortgage Loan Sellers,” “Summary of Prospectus
Supplement—The Mortgage Loans,” “Risk Factors—The Mortgage Loans,” and
“Description of the Mortgage Pool—General,” “—Mortgage Loan History,” “—Certain
Terms and Conditions of the Mortgage Loans,” “—Assessments of Property
Condition,” “—Co-Lender Loans,” “—Additional Mortgage Loan Information,”
“—Twenty Largest Mortgage Loans,” “—The Mortgage Loan Sellers,” “—Underwriting
Standards,” and “—Representations and Warranties; Repurchases and
Substitutions.”  The “Specified Portions” of the Memorandum shall consist
of the Specified Portions of the Prospectus Supplement and the first and second
full paragraphs on page “[__]” of the Memorandum.

       

             (e)               
The resolutions of the requisite
committee of the Seller’s [special loan committee]/[board of directors]
authorizing the Seller’s entering into the transactions contemplated by this
Agreement, the [articles of association]/[certificate of incorporation] and
by-laws of the Seller, and an original or copy of a certificate of good standing
of the Seller issued by the [Comptroller of the Currency]/[State of [_________]]
not earlier than [__] days prior to the Closing Date; 

       

             (f)               
A written opinion of counsel for the
Seller (which opinion may be from in-house counsel, outside counsel or a
combination thereof), reasonably satisfactory to the Purchaser, its counsel and
the Rating Agencies, dated the Closing Date and addressed to the Purchaser, the
Trustee, the Underwriters, the Initial Purchasers and each of the Rating
Agencies, together with such other written opinions as may be required by the
Rating Agencies; and

       

             (g)              
Such further certificates, opinions and
documents as the Purchaser may reasonably request.

       

             SECTION
7.                 
Indemnification.

       

             (a)               
The Seller shall indemnify and hold
harmless the Purchaser, the Underwriters, the Initial Purchasers, their
respective officers and directors, and each person, if any, who controls the
Purchaser, any Underwriter or any Initial Purchasers within the meaning of
either Section 15 of the Securities Act of 1933, as amended (the “1933 Act”) or Section
20 of the Securities Exchange Act of 1934, as amended (the “1934 Act”), against
any and all losses, expenses (including the reasonable fees and expenses of
legal counsel), claims, damages or liabilities, joint or several, to which they
or any of them may become subject under the 1933 Act, the 1934 Act or other
federal or state statutory law or regulation, at common law or otherwise,
insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) (i) arise out of or are based upon any untrue statement or alleged
untrue statement of a material fact contained in (A) the Prospectus Supplement,
the Preliminary Memorandum, the Memorandum, the Diskette

       

      
        
          
          

        

        
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      or in any revision or amendment of
or supplement to any of the foregoing, (B) any Time of Sale Information or any
Issuer Information contained in any Free Writing Prospectus prepared by or on
behalf of the Underwriters (an “Underwriter Free Writing
Prospectus”) or contained in any Free Writing Prospectus which is
required to be filed in accordance with the terms of the Underwriting Agreement,
(C) any items similar to Free Writing Prospectuses forwarded by the Seller to
the Initial Purchasers, or in any revision or amendment of or supplement to any
of the foregoing or (D) the summaries, reports, documents and other written and
computer materials and all other information regarding the Mortgage Loans or the
Seller furnished by the Seller for review by prospective investors (the items in
(A), (B), (C) and (D) above being defined as the “Disclosure
Material”), (ii) arise out of or are based upon the omission or alleged
omission to state therein (in the case of Free Writing Prospectuses, when read
in conjunction with any Time of Sale Information, in the case of any items
similar to Free Writing Prospectuses, when read in conjunction with the
Memorandum) and in the case of any summaries, reports, documents, written or
computer materials, or other information contemplated in clause (D) above, when
read in conjunction with the Memorandum and in the case of any Free Writing
Prospectus, when read in conjunction with the other Time of Sale Information) a
material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not
misleading; but, with respect to any Disclosure Material described in clauses
(A), (B) and (C) of the definition thereof, only if and to the extent that (I)
any such untrue statement or alleged untrue statement or omission or alleged
omission occurring in, or with respect to, such Disclosure Material, arises out
of or is based upon an untrue statement or omission with respect to the Mortgage
Loans, the related Mortgagors and/or the related Mortgaged Properties contained
in the Data File (it being herein acknowledged that the Data File was and will
be used to prepare the Prospectus Supplement and the Preliminary Prospectus
Supplement, including without limitation Annex A thereto, any other Time of
Sale Information, the Preliminary Memorandum, the Memorandum and the Diskette
with respect to the Registered Certificates and any items similar to Free
Writing Prospectuses forwarded to prospective investors in the Non-Registered
Certificates and any Free Writing Prospectus), (II) any such untrue statement or
alleged untrue statement or omission or alleged omission of a material fact
occurring in, or with respect to, such Disclosure Material, is with respect to,
or arises out of or is based upon an untrue statement or omission of a material
fact with respect to, the information regarding the Mortgage Loans, the related
Mortgagors, the related Mortgaged Properties and/or the Seller set forth in the
Specified Portions of each of the Prospectus Supplement, the Preliminary
Prospectus Supplement, the Preliminary Memorandum and the Memorandum, (III) any
such untrue statement or alleged untrue statement or omission or alleged
omission occurring in, or with respect to, such Disclosure Material, arises out
of or is based upon a breach of the representations and warranties of the Seller
set forth in or made pursuant to Section 3 hereof or (IV) any such untrue
statement or alleged untrue statement or omission or alleged omission occurring
in, or with respect to, such Disclosure Material, arises out of or is based upon
any other written information concerning the characteristics of the Mortgage
Loans, the related Mortgagors or the related Mortgaged Properties furnished to
the Purchaser, the Underwriters or the Initial Purchasers by the Seller; provided, that the
indemnification provided by this Section 7 shall not apply to the extent that
such untrue statement or omission of a material fact was made as a result of an
error in the manipulation of, or in any calculations based upon, or in any
aggregation of the information regarding the Mortgage Loans, the related
Mortgagors and/or the related Mortgaged Properties set forth in the Data File or
Annex A to the Prospectus Supplement or the Preliminary

       

      
        
          
          

        

        
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      Prospectus Supplement to the
extent such information was not materially incorrect in the Data File or such
Annex A, as applicable, including without limitation the aggregation of such
information with comparable information relating to the Other Mortgage
Loans.  Notwithstanding the foregoing, the indemnification provided in this
Section 7(a) shall not inure to the benefit of any Underwriter or Initial
Purchasers (or to the benefit of any person controlling such Underwriter or
Initial Purchasers) from whom the person asserting claims giving rise to any
such losses, claims, damages, expenses or liabilities purchased Certificates if
(x) the subject untrue statement or omission or alleged untrue statement or
omission made in any Disclosure Material (exclusive of the Prospectus or any
corrected or amended Prospectus or the Memorandum or any corrected or amended
Memorandum) is eliminated or remedied in the Prospectus or the Memorandum or,
with respect to any Time of Sale Information only, by the delivery of a
Corrected Free Writing Prospectus prior to the Time of Sale (in each case, as
corrected or amended, if applicable), as applicable, and (y) a copy of the
Prospectus, Memorandum or Corrected Free Writing Prospectus (in each case, as
corrected or amended, if applicable), as applicable, shall not have been sent to
such person at or prior to the Time of Sale of such Certificates, and (z) in the
case of a corrected or amended Prospectus, Memorandum or Corrected Free Writing
Prospectus, such Underwriter or Initial Purchasers received electronically or in
writing notice of such untrue statement or omission and updated information
concerning the untrue statement or omission at least one Business Day prior to
the Time of Sale.  The Seller shall, subject to clause (c) below, reimburse
each such indemnified party, as incurred, for any legal or other expenses
reasonably incurred by them in connection with investigating or defending any
such loss, claim, damage, liability or action.  

       

             (b)              
For purposes of this Agreement, “Registration
Statement” shall mean such registration statement No. 333-[______] filed
by the Purchaser on Form S-3, including without limitation exhibits thereto and
information incorporated therein by reference; “Base Prospectus”
shall mean the prospectus dated [__________], as supplemented by the prospectus
supplement dated [_________] (the “Prospectus
Supplement” and, together with the Base Prospectus, the “Prospectus”) relating
to the Registered Certificates, including all annexes thereto; “Preliminary Prospectus
Supplement” shall mean the free writing prospectus dated [__________]
consisting of the preliminary free writing prospectus, including the base
prospectus, dated [_________] attached thereto, as supplemented and corrected by
that certain free writing prospectus dated [__________]; “Preliminary
Memorandum” shall mean the preliminary private placement memorandum dated
[_________], relating to the Non-Registered Certificates, including all annexes
thereto; “Memorandum” shall
mean the private placement memorandum dated [_________], relating to the
Non-Registered Certificates, including all exhibits thereto; “Registered
Certificates” shall mean the Class [___] and Class [___] Certificates;
“Non-Registered
Certificates” shall mean the Certificates other than the Registered
Certificates; “Diskette” shall mean
the diskette or compact disc attached to each of the Prospectus, the Preliminary
Prospectus Supplement and the Memorandum; and “Data File” shall mean
the compilation of information and data regarding the Mortgage Loans covered by
the Agreed Upon Procedures Letters dated [_________] and rendered by [_________]
(a “hard copy” of which Data File was initialed on behalf of the Seller and the
Purchaser).  “Free Writing
Prospectus” shall mean a “free writing prospectus” as such term is
defined pursuant to Rule 405 under the 1933 Act.  “Corrected Free Writing
Prospectus” shall mean a Free Writing Prospectus that corrects any
previous Free Writing Prospectus prepared by or on behalf of any Underwriter and
delivered to any purchaser that contained any untrue statement of a material
fact or omitted to

       

      
        
          
          

        

        
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      state a material fact necessary in
order to make the statements contained therein, in light of the circumstances in
which they were made, not misleading.  “Time of Sale” shall
mean the time at which sales to investors of the Certificates were first made as
determined in accordance with Rule 159 of the 1933 Act.  “Time of Sale
Information” shall mean each free writing prospectus listed on Exhibit B
hereto.  “Issuer
Information” shall have the meaning given to such term in Rule 433(h)
under the 1933 Act (as discussed by the SEC in footnote 271 of the Commission’s
Securities Offering Reform Release No. 33—8591).  “Regulation AB” shall
have the meaning as defined in Subpart 229.1100 – Asset Backed Securities
(Regulation AB), 17 C.F.R. §§229.1100-229.1123 of the 1933 Act, as such may be
amended from time to time, and subject to such clarification and interpretation
as have been provided by the Securities and Exchange Commission (the “Commission”) in the
adopting release (Asset-Backed Securities, Securities Act Release No. 33-8518,
70 Fed. Reg. 1,506, 1,531 (Jan. 7, 2005)) or by the staff of the Commission, or
as may be provided by the Commission or its staff from time to
time.

       

             (c)               
As promptly as reasonably practicable
after receipt by any person entitled to indemnification under this Section 7 (an
“indemnified
party”) of notice of the commencement of any action, such indemnified
party will, if a claim in respect thereof is to be made against the Seller (the
“indemnifying
party”) under this Section 7, notify the indemnifying party in writing of
the commencement thereof; but the omission so to notify the indemnifying party
will not relieve it from any liability that it may have to any indemnified party
under Section 7(a) (except to the extent that such omission has prejudiced the
indemnifying party in any material respect) or from any liability which it may
have otherwise than under this Section 7.  In case any such action is
brought against any indemnified party and it notifies the indemnifying party of
the commencement thereof, the indemnifying party will be entitled to participate
therein, and to the extent that it may elect by written notice delivered to the
indemnified party promptly after receiving the aforesaid notice from such
indemnified party, to assume the defense thereof, with counsel selected by the
indemnifying party and reasonably satisfactory to such indemnified party; provided, however, that if the
defendants in any such action include both the indemnified party and the
indemnifying party and the indemnified party or parties shall have reasonably
concluded that there may be legal defenses available to it or them and/or other
indemnified parties that are different from or additional to those available to
the indemnifying party, the indemnified party shall have the right to select
separate counsel to assert such legal defenses and to otherwise participate in
the defense of such action on behalf of such indemnified party or parties. 
Upon receipt of notice from the indemnifying party to such indemnified party of
its election so to assume the defense of such action and approval by the
indemnified party of counsel, the indemnifying party will not be liable for any
legal or other expenses subsequently incurred by such indemnified party in
connection with the defense thereof, unless (i) the indemnified party shall have
employed separate counsel in connection with the assertion of legal defenses in
accordance with the proviso to the preceding sentence (it being understood,
however, that the indemnifying party shall not be liable for the expenses of
more than one separate counsel, approved by the Purchaser, the Underwriters and
the Initial Purchasers, representing all the indemnified parties under Section
7(a) who are parties to such action), (ii) the indemnifying party shall not have
employed counsel reasonably satisfactory to the indemnified party to represent
the indemnified party within a reasonable time after notice of commencement of
the action or (iii) the indemnifying party has authorized the employment of
counsel for the indemnified party at the expense of the indemnifying party; and
except that, if clause (i) or (iii) is applicable, such liability shall only be
in respect of the counsel referred to in such clause (i) or (iii).

       

      
        
          
          

        

        
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      Unless it shall assume the defense
of any proceeding, an indemnifying party shall not be liable for any settlement
of any proceeding effected without its written consent but, if settled with such
consent or if there be a final judgment for the plaintiff, the indemnifying
party shall indemnify the indemnified party from and against any loss or
liability by reason of such settlement or judgment.  Notwithstanding the
foregoing sentence, if at any time an indemnified party shall have requested an
indemnifying party to reimburse the indemnified party for fees and expenses of
counsel or any other expenses for which the indemnifying party is obligated
under this subsection, the indemnifying party agrees that it shall be liable for
any settlement of any proceeding effected without its written consent if (i)
such settlement is entered into more than [__] days after receipt by such
indemnifying party of the aforesaid request and (ii) such indemnifying party
shall not have reimbursed the indemnified party in accordance with such request
prior to the date of such settlement.  If an indemnifying party assumes the
defense of any proceeding, it shall be entitled to settle such proceeding with
the consent of the indemnified party or, if such settlement provides for an
unconditional release of the indemnified party in connection with all matters
relating to the proceeding that have been asserted against the indemnified party
in such proceeding by the other parties to such settlement, which release does
not include a statement as to or an admission of fault, culpability or a failure
to act by or on behalf of any indemnified party without the consent of the
indemnified party.

       

             (d)              
If the indemnification provided for in
this Section 7 is unavailable to an indemnified party under Section 7(a) hereof
or insufficient in respect of any losses, claims, damages or liabilities
referred to therein, then the indemnifying party, in lieu of indemnifying such
indemnified party, shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages or liabilities, in
such proportion as is appropriate to reflect the relative fault of the
indemnified and indemnifying parties in connection with the statements or
omissions which resulted in such losses, claims, damages or liabilities, as well
as any other relevant equitable considerations (taking into account the parties’
relative knowledge and access to information concerning the matter with respect
to which the claim was asserted, the opportunity to correct and prevent any
statement or omission or failure to comply, and any other equitable
considerations appropriate under the circumstances).  The relative fault of
the indemnified and indemnifying parties shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a material
fact or the omission or alleged omission to state a material fact relates to
information supplied by such parties; provided that no
Underwriter or Initial Purchasers shall be obligated to contribute more than its
share of underwriting discounts and commissions and other fees pertaining to the
Certificates less any damages otherwise paid by such Underwriter or Initial
Purchasers with respect to such loss, liability, claim, damage or expense. 
It is hereby acknowledged that the respective Underwriters’ and Initial
Purchasers’ obligations under this Section 7 shall be several and not
joint.  For purposes of this Section, each person, if any, who controls an
Underwriter or an Initial Purchasers within the meaning of Section 15 of the
1933 Act or Section 20 of the 1934 Act, and such Underwriter’s or Initial
Purchasers’ officers and directors, shall have the same rights to contribution
as such Underwriter or Initial Purchaser, as the case may be, and each director
of the Seller and each person, if any who controls the Seller within the meaning
of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same
rights to contribution as the Seller.

       

             (e)               
The Purchaser and the Seller agree that
it would not be just and equitable if contribution pursuant to Section 7(d) were
determined by pro rata
allocation or by any other

       

      
        
          
          

        

        
          -18-

          
            

          

        

        
          
          

        

      

       

      method of allocation that does not
take account of the considerations referred to in Section 7(d) above.  The
amount paid or payable by an indemnified party as a result of the losses,
claims, damages and liabilities referred to in this Section 7 shall be deemed to
include, subject to the limitations set forth above, any legal or other expenses
reasonably incurred by such indemnified party in connection with investigating
or defending any such action or claim, except where the indemnified party is
required to bear such expenses pursuant to this Section 7, which expenses the
indemnifying party shall pay as and when incurred, at the request of the
indemnified party, to the extent that the indemnifying party will be ultimately
obligated to pay such expenses.  If any expenses so paid by the
indemnifying party are subsequently determined to not be required to be borne by
the indemnifying party hereunder, the party that received such payment shall
promptly refund the amount so paid to the party which made such payment. 
No person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the 1933 Act) shall be entitled to contribution from any person who was
not guilty of such fraudulent misrepresentation.

       

             (f)               
The indemnity and contribution
agreements contained in this Section 7 shall remain operative and in full force
and effect regardless of (i) any termination of this Agreement, (ii) any
investigation made by the Purchaser, the Underwriters, the Initial Purchasers,
any of their respective directors or officers, or any person controlling the
Purchaser, the Underwriters or the Initial Purchasers, and (iii) acceptance of
and payment for any of the Certificates.

       

             (g)              
Without limiting the generality or
applicability of any other provision of this Agreement, the Underwriters, the
Initial Purchasers and their directors, officers and controlling parties shall
be third-party beneficiaries of the provisions of this Section 7.

       

             SECTION
8.                 
Costs.  The
Seller shall pay (or shall reimburse the Purchaser to the extent that the
Purchaser has paid) the Seller’s pro rata portion of the
aggregate of the following amounts (the Seller’s pro rata portion to be
determined according to the percentage that the [_________] Mortgage Loan
Balance represents as of the Cut-Off Date Pool Balance):  (i) the costs and
expenses of printing and delivering the Pooling and Servicing Agreement and the
Certificates; (ii) the costs and expenses of printing (or otherwise reproducing)
and delivering a final Prospectus, Term Sheet, Preliminary Prospectus
Supplement, each other Free Writing Prospectus, Preliminary Memorandum and
Memorandum relating to the Certificates; (iii) the initial fees, costs, and
expenses of the Trustee (including reasonable attorneys’ fees); (iv) the filing
fee charged by the Securities and Exchange Commission for registration of the
Certificates so registered; (v) the fees charged by the Rating Agencies to rate
the Certificates so rated; (vi) the fees and disbursements of a firm of
certified public accountants selected by the Purchaser and the Seller with
respect to numerical information in respect of the Mortgage Loans and the
Certificates included in any Free Writing Prospectus, the Prospectus and the
Memorandum, including in respect of the cost of obtaining any “comfort letters”
with respect to such items; (vii) the reasonable out-of-pocket costs and
expenses in connection with the qualification or exemption of the Certificates
under state securities or “Blue Sky” laws, including filing fees and reasonable
fees and disbursements of counsel in connection therewith, in connection with
the preparation of any “Blue Sky” survey and in connection with any
determination of the eligibility of the Certificates for investment by
institutional investors and the preparation of any legal investment survey;
(viii) the expenses of printing any such “Blue Sky” survey and legal investment
survey; and (ix) the reasonable fees and disbursements of counsel to the
Underwriters

       

      
        
          
          

        

        
          -19-

          
            

          

        

        
          
          

        

      

       

      or Initial Purchasers; provided, however, Seller shall
pay (or shall reimburse the Purchaser to the extent that the Purchaser has paid)
the expense of recording any assignment of Mortgage or assignment of Assignment
of Leases as contemplated by Section 2 hereof with respect to the Seller’s
Mortgage Loans.  All other costs and expenses in connection with the
transactions contemplated hereunder shall be borne by the party incurring such
expense.

       

             SECTION
9.                 
Grant of a Security
Interest.  It is the express intent of the parties hereto that the
conveyance of the Mortgage Loans by the Seller to the Purchaser as provided in
Section 2 hereof be, and be construed as, a sale of the Mortgage Loans by the
Seller to the Purchaser and not as a pledge of the Mortgage Loans by the Seller
to the Purchaser to secure a debt or other obligation of the Seller. 
However, if, notwithstanding the aforementioned intent of the parties, the
Mortgage Loans are held to be property of the Seller, then, (a) it is the
express intent of the parties that such conveyance be deemed a pledge of the
Mortgage Loans by the Seller to the Purchaser to secure a debt or other
obligation of the Seller, and (b) (i) this Agreement shall also be deemed to be
a security agreement within the meaning of Article 9 of the Uniform Commercial
Code of the applicable jurisdiction; (ii) the conveyance provided for in Section
2 hereof shall be deemed to be a grant by the Seller to the Purchaser of a
security interest in all of the Seller’s right, title and interest in and to the
Mortgage Loans, and all amounts payable to the holder of the Mortgage Loans in
accordance with the terms thereof, and all proceeds of the conversion, voluntary
or involuntary, of the foregoing into cash, instruments, securities or other
property, including, without limitation, all amounts, other than investment
earnings, from time to time held or invested in the Certificate Account, the
Distribution Account or, if established, the REO Account (each as defined in the
Pooling and Servicing Agreement) whether in the form of cash, instruments,
securities or other property; (iii) the assignment to the Trustee of the
interest of the Purchaser as contemplated by Section 1 hereof shall be deemed to
be an assignment of any security interest created hereunder; (iv) the possession
by the Trustee or any of its agents, including, without limitation, the
Custodian, of the Mortgage Notes, and such other items of property as constitute
instruments, money, negotiable documents or chattel paper shall be deemed to be
possession by the secured party for purposes of perfecting the security interest
pursuant to Section 9-313 of the Uniform Commercial Code of the applicable
jurisdiction; and (v) notifications to persons (other than the Trustee) holding
such property, and acknowledgments, receipts or confirmations from persons
(other than the Trustee) holding such property, shall be deemed notifications
to, or acknowledgments, receipts or confirmations from, financial
intermediaries, bailees or agents (as applicable) of the secured party for the
purpose of perfecting such security interest under applicable law.  The
Seller and the Purchaser shall, to the extent consistent with this Agreement,
take such actions as may be necessary to ensure that, if this Agreement were
deemed to create a security interest in the Mortgage Loans, such security
interest would be deemed to be a perfected security interest of first priority
under applicable law and will be maintained as such throughout the term of this
Agreement and the Pooling and Servicing Agreement.

       

             SECTION
10.             
Covenants of
Purchaser.  The Purchaser shall provide the Seller with all forms of
Disclosure Materials (including the final form of the Memorandum and the
preliminary and final forms of the Prospectus Supplement) promptly upon any such
document becoming available.

       

      
        
          
          

        

        
          -20-

          
            

          

        

        
          
          

        

      

       

       

             SECTION
11.             
Notices.  All
notices, copies, requests, consents, demands and other communications required
hereunder shall be in writing and telecopied or delivered to the intended
recipient at the “Address for Notices” specified beneath its name on the
signature pages hereof or, as to either party, at such other address as shall be
designated by such party in a notice hereunder to the other party.  Except
as otherwise provided in this Agreement, all such communications shall be deemed
to have been duly given when transmitted by telecopier or personally delivered
or, in the case of a mailed notice, upon receipt, in each case given or
addressed as aforesaid.

       

             SECTION
12.             
Representations, Warranties
and Agreements to Survive Delivery.  All representations, warranties
and agreements contained in this Agreement, incorporated herein by reference or
contained in the certificates of officers of the Seller submitted pursuant
hereto, shall remain operative and in full force and effect and shall survive
delivery of the Mortgage Loans by the Seller to the Purchaser (and by the
Purchaser to the Trustee).

       

             SECTION
13.             
Severability of
Provisions.  Any part, provision, representation, warranty or
covenant of this Agreement that is prohibited or which is held to be void or
unenforceable shall be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof.  Any
part, provision, representation, warranty or covenant of this Agreement that is
prohibited or unenforceable or is held to be void or unenforceable in any
particular jurisdiction shall, as to such jurisdiction, be ineffective to the
extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof, and any such prohibition or unenforceability in any
particular jurisdiction shall not invalidate or render unenforceable such
provision in any other jurisdiction.  To the extent permitted by applicable
law, the parties hereto waive any provision of law which prohibits or renders
void or unenforceable any provision hereof.

       

             SECTION
14.             
Counterparts. 
This Agreement may be executed in any number of counterparts, each of which
shall be an original, but which together shall constitute one and the same
agreement.

       

             SECTION
15.             
GOVERNING LAW. 
THIS AGREEMENT AND THE RIGHTS, DUTIES, OBLIGATIONS AND RESPONSIBILITIES OF THE
PARTIES HERETO SHALL BE GOVERNED IN ACCORDANCE WITH THE INTERNAL LAWS AND
DECISIONS OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.  THE
PARTIES HERETO INTEND THAT THE PROVISIONS OF SECTION 5-1401 OF THE NEW YORK
GENERAL OBLIGATIONS LAW SHALL APPLY TO THIS AGREEMENT.

       

             SECTION
16.             
Attorneys Fees. 
If any legal action, suit or proceeding is commenced between the Seller and the
Purchaser regarding their respective rights and obligations under this
Agreement, the prevailing party shall be entitled to recover, in addition to
damages or other relief, costs and expenses, attorneys’ fees and court costs
(including, without limitation, expert witness fees).  As used herein, the
term “prevailing party” shall mean the party which obtains the principal relief
it has sought, whether by compromise settlement or judgment.  If the party
which commenced or instituted the action, suit or proceeding shall dismiss
or

       

      
        
          
          

        

        
          -21-

          
            

          

        

        
          
          

        

      

       

      discontinue it without the
concurrence of the other party, such other party shall be deemed the prevailing
party.

       

             SECTION
17.             
Further
Assurances.  The Seller and the Purchaser agree to execute and
deliver such instruments and take such further actions as the other party may,
from time to time, reasonably request in order to effectuate the purposes and to
carry out the terms of this Agreement.

       

             SECTION
18.             
Successors and
Assigns.  The rights and obligations of the Seller under this
Agreement shall not be assigned by the Seller without the prior written consent
of the Purchaser, except that any person into which the Seller may be merged or
consolidated, or any corporation resulting from any merger, conversion or
consolidation to which the Seller is a party, or any person succeeding to all or
substantially all of the business of the Seller, shall be the successor to the
Seller hereunder.  The Purchaser has the right to assign its interest under
this Agreement, in whole or in part, as may be required to effect the purposes
of the Pooling and Servicing Agreement, and the assignee shall, to the extent of
such assignment, succeed to the rights and obligations hereunder of the
Purchaser.  Subject to the foregoing, this Agreement shall bind and inure
to the benefit of and be enforceable by the Seller, the Purchaser, the
Underwriters and the Initial Purchasers (each as intended third party
beneficiaries hereof) and their permitted successors and assigns, and the
officers, directors and controlling persons referred to in Section 7. 
This Agreement is enforceable by the Underwriters, the Initial Purchasers and
the other third party beneficiaries hereto in all respects to the same extent as
if they had been signatories hereof.

       

             SECTION
19.             
Amendments.  No
term or provision of this Agreement may be waived or modified unless such waiver
or modification is in writing and signed by a duly authorized officer of the
party, or third party beneficiary, against whom such waiver or modification is
sought to be enforced.  No amendment to the Pooling and Servicing Agreement
which relates to defined terms contained therein, Section 2.01(d) thereof or the
repurchase obligations or any other obligations of the Seller shall be effective
against the Seller (in such capacity) unless the Seller shall have agreed to
such amendment in writing.

       

             SECTION
20.             
Accountants’
Letters.  The parties hereto shall cooperate with [_____] in making
available all information and taking all steps reasonably necessary to permit
such accountants to deliver the letters required by the Underwriting
Agreement.

    

     

     

     

    
      
        
        

      

      
        -22-

        
          

        

      

      
        
        

      

    

    

    
             IN
WITNESS WHEREOF, the Seller and the Purchaser have caused their names to be
signed hereto by their respective duly authorized officers as of the date first
above written.

       

       

       

      
        	 	SELLER	 
	 	 	 
	 	 	 	 
	
                 

              	
                By:
      

              	 	 
	 	 	Name: 	 
	 	 	Title: 	 
	 	 	 	 
	 	
                Address
      for Notices:

                 

                [                                 
      ]

                
                  [                                  ]

                  
                    [                                  ]

                     

                    Telecopier No.: ([___])
      [_________]
Telephone No.: ([___]) [_________]

                  

                

              	 
	 	 	 	 
	 	 	 	 

      

    

     

     

     

     

    
      
        
        

      

      
        -23-

        
          

        

      

      
        
        

      

    

     

     

    
      
        	  
       	
                 PURCHASER 

              	  
       
	  
       	  
       	  
       
	   	
                 WELLS
      FARGO COMMERCIAL  

                  
           MORTGAGE SECURITIES, INC. 

              	   
	   	   	   
	  
       	  
       	  
       	  
       
	  
       	
                 By: 

              	
                 

              	  
       
	  
       	  
       	
                 Name: 

              	  
       
	  
       	  
       	
                 Title: 

              	  
       
	  
       	  
       	  
       	  
       
	  
       	
                 Address
      for Notices: 

                 301
      South College Street]
Charlotte, North Carolina 
      28288-0166
Telecopier No.: (704) 715-0066
Telephone No.: (704)
      374-6161
Email Address: 
      wfcmsi.cmbs@wellsfargo.com 

              	  
       
	  
       	  
       	  
       	  
       
	  
       	  
       	  
       	  
       

      

      
        
 

        
          
            
            

          

          
            -24-

            
              

            

          

          
            
            

          

        

      

       

      SCHEDULE
I

       

      General Mortgage
Representations and Warranties

       

       

       

       

      
        
          
          

        

        
          I-1

          
            

          

        

        
          
          

        

      

       

       

      SCHEDULE
II

       

      EXCEPTIONS TO
REPRESENTATIONS AND WARRANTIES

      

      
         

         

                    Exception to Representations
[         ]

         

         

         

      

      
        	Loans	 	Description of Exception

                 

              	 
	 	 	 	 
	 	 	 	 

      

       

       

       

      
        
          
          

        

        
          II-1

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
A

       

      Mortgage Loan
Schedule

       

       

       

      
 

      
        
          
          

        

        
          A-1

          
            

          

        

        
          
          

        

      

       

       

      EXHIBIT
B

       

      Free Writing
Prospectuses

       

       

       

       

      B-1Exhibit 10.1

Exhibit 10.1

DIRECTOR’S INDEMNIFICATION AGREEMENT

This Director’s Indemnification Agreement (“Agreement”) is made as of July
 _____, 2007 (the
“Effective Date”) between Craftmade International, Inc., a Delaware corporation (the
“Company”), and                     , an individual residing in the State of
                     who
serves as a Director of the Company (“Indemnitee”).

RECITALS

WHEREAS, highly competent persons have become more reluctant to serve corporations as
Directors unless they are provided with adequate protection through insurance and/or
indemnification against the risks of claims being asserted against them arising out of their
service to and activities on behalf of such corporations; and

WHEREAS, the Board of Directors of the Company (the “Board”) has determined that the
increased difficulty in attracting and retaining such persons is detrimental to the best interests
of the Company’s investors and that the Company should act to assure such persons that there will
be increased certainty of such protection in the future; and

WHEREAS, the Board has determined that, in order to help attract and retain qualified
individuals as Directors, the best interests of the Company and its investors will be served by
attempting to maintain, on an ongoing basis, at the Company’s sole expense, insurance to protect
persons serving the Company and its subsidiaries as directors and in other capacities from certain
liabilities. Although the furnishing of such insurance has been a customary and widespread
practice among United States-based corporations and other business enterprises for many years, the
Company believes that, given current market conditions and trends, such insurance may be available
to it in the future only at higher premiums and with more exclusions. At the same time, directors,
in service to corporations or business enterprises are being increasingly subjected to expensive
and time-consuming litigation; and

WHEREAS, the Board has determined that, in order to help attract and retain qualified
individuals as directors and in other capacities, the best interests of the Company and its
investors will be served by assuring such individuals that the Company will indemnify them to the
maximum extent permitted by law; and

WHEREAS, the Certificate of Incorporation, as amended (the “Certificate of
Incorporation”) of the Company requires indemnification of the officers and directors of the
Company, and Indemnitee may also be entitled to indemnification pursuant to the Delaware General
Corporation Law (“DGCL”); and

WHEREAS, the Certificate of Incorporation and the DGCL expressly provide that the
indemnification provisions set forth therein are not exclusive, and thereby
contemplate that contracts may be entered into between the Company and members of the Board
with respect to indemnification and the advancement of defense costs; and

 

 

 

WHEREAS, it therefore is reasonable, prudent and necessary for the Company contractually to
obligate itself to indemnify, and to advance defense costs on behalf of, such persons to the
fullest extent permitted by applicable law so that they will serve or continue to serve the Company
free from undue concern that they will not be so indemnified; and

WHEREAS, this Agreement is a supplement to and in furtherance of the Certificate of
Incorporation and any resolutions adopted pursuant thereto, and shall not be deemed a substitute
therefor, nor shall it be deemed to diminish or abrogate any rights of Indemnitee thereunder; and

WHEREAS, the Board recognizes that the Indemnitee does not regard the protection available
under the Company’s Certificate of Incorporation and insurance program as adequate in the present
circumstances, and may not be willing to serve or continue to serve as a director and/or in such
other capacity as the Company may request without adequate protection, and the Company desires
Indemnitee to serve in such capacity; and

WHEREAS, Indemnitee is willing to serve, and continue to serve, as a member of the Board of
Directors of the Company, on the condition that he or she be indemnified as provided for herein.

NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the
Company and Indemnitee do hereby covenant and agree as follows:

1. Services to the Company. Indemnitee will serve or continue to serve as a Director of the
Company for so long as Indemnitee is duly elected or appointed or until Indemnitee resigns from
such position. This Agreement shall not serve as a binding commitment on the part of Indemnitee to
continue to serve in such capacity, or on the part of the Company to cause him to be nominated to
successive terms as a Director or to not otherwise be removed from the Board as permitted under
law. This Agreement shall not be deemed an employment contract between the Company (or any of its
subsidiaries or any Enterprise) and Indemnitee.

2. Definitions. As used in this Agreement:

(a) A “Change in Control” shall be deemed to occur upon the earliest to occur after
the date of this Agreement of any of the following events:

(i) Any Person (excluding any employee benefit plan of the Company or any subsidiary of the
Company) is or becomes the Beneficial Owner, directly or
indirectly, of securities of the Company representing fifty percent (50%) or more of the
combined voting power of the Company’s outstanding securities then entitled ordinarily to vote for
the election of Directors; or

 

2

 

(ii) During any period of two (2) consecutive years commencing on or after the Effective Date,
the individuals who at the beginning of such period constitute the Board or any individuals who
would be Continuing Directors (as defined below) cease for any reason to constitute at least a
majority of the total number of authorized directorships of the Board; or

(iii) The Board shall approve a sale of all or substantially all of the assets of the Company;
or

(iv) The Board shall approve any merger, consolidation, or like business combination or
reorganization of the Company, the consummation of which would result in the occurrence of any
event described in clause (i), (ii) or (iii) above.

(b) “Continuing Directors” shall mean the directors of the Company in office on the
Effective Date and any director who after the Effective Date (i) was nominated or appointed by a
majority of the Continuing Directors in office at the time of his or her nomination or appointment
and (ii) who is not an “affiliate” or “associate” (as defined in Regulation 12B under the Exchange
Act) of any person who is the Beneficial Owner, directly or indirectly, of securities representing
ten percent (10%) or more of the combined voting power of the Company’s outstanding securities then
entitled ordinarily to vote for the election of directors.

(c) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

(d) “Person” shall have the meaning set forth in Sections 13(d) and 14(d) of the
Exchange Act; provided, however, that Person shall exclude (i) the Company and (ii) any trustee or
other fiduciary (other than Indemnitee) holding securities under an employee benefit plan of the
Company or a subsidiary of the Company.

(e) “Beneficial Owner” shall have the meaning given to such term in Rule 13d-3 issued
under the Exchange Act.

(f) “Corporate Status” shall describe the status of a Person who is or was a director,
officer, trustee, administrator, partner, member, fiduciary, employee or agent of the Company or of
any other Enterprise (as defined below), which such Person is or was serving at the request of the
Company.

(g) “Disinterested Director” shall mean a director of the Company who is not a party
to the Proceeding (as defined below) in respect of which indemnification is sought by Indemnitee.

 

3

 

(h) “Enterprise” shall mean any corporation, limited liability company, partnership,
joint venture, trust, employee benefit plan or other enterprise of which Indemnitee is or was
serving at the request of the Company as a director, officer, trustee, administrator, partner,
member, fiduciary, employee or agent.

(i) “Expenses” shall include all reasonable attorneys’ fees, retainers, court costs,
transcript costs, fees of experts and accountants, witness fees, travel expenses, duplicating
costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other
disbursements or expenses of the types customarily incurred in connection with prosecuting,
defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in,
or otherwise participating in, a Proceeding (as defined below). Expenses also shall include
Expenses incurred in connection with any appeal resulting from any Proceeding (as defined below),
including, without limitation, the premium, security for, and other costs relating to any bond,
supersedeas bond, or other appeal bond or its equivalent. Expenses, however, shall not include
amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.

(j) References to “fines” shall include any excise tax assessed on a person with
respect to any employee benefit plan pursuant to applicable law.

(k) References to “serving at the request of the Company” shall include any service
provided at the request of the Company as a director, officer, trustee, administrator, partner,
member, fiduciary, employee or agent of the Company which imposes duties on, or involves services
by, such director, officer, trustee, administrator, partner, member, fiduciary, employee or agent
with respect to an employee benefit plan, its participants or beneficiaries.

(l) Any action taken or omitted to be taken by a person for a purpose which he or she
reasonably believed to be in the interests of or not opposed to the interests of the participants
and beneficiaries of an employee benefit plan shall be deemed to have been taken in “good
faith” and for a purpose which is “not opposed to the best interests of the
Company”, as such terms are referred to in this Agreement and used in the DGCL.

(m) The term “Proceeding” shall include any threatened, pending or completed action,
suit, arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative
hearing or any other actual, threatened or completed proceeding, whether brought in the right of
the Company or otherwise and whether of a civil, criminal, administrative or investigative nature,
including any related appeal, in which Indemnitee was, is or will be involved as a party or witness
or otherwise by reason of the fact that Indemnitee is or was a director, officer, trustee,
administrator, partner, member, fiduciary, employee or agent of the Company, by reason of any
action taken or not taken by him or her while acting as director, officer, trustee, administrator,
partner, member, fiduciary, employee or agent of the Company, or by reason of the fact that he or
she is or was serving at the request of the Company as a director, officer, trustee, administrator,
partner, member, fiduciary, employee or agent of any other Enterprise, in each case whether or not
serving in such capacity at the
time any liability or expense is incurred for which indemnification, reimbursement, or
advancement of expenses can be provided under this Agreement.

 

4

 

(n) “Independent Counsel” means a law firm, or a member of a law firm, that is
experienced in matters of corporation law and neither presently is, nor in the past five (5) years
has been, retained to represent: (i) the Company or Indemnitee in any matter material to either
such party (other than with respect to matters concerning the Indemnitee under this Agreement, or
other indemnitees under similar indemnification agreements), or (ii) any other party to the
Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing,
the term “Independent Counsel” shall not include any person who, under the applicable standards of
professional conduct then prevailing, would have a conflict of interest in representing either the
Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.

3. Indemnity in Third-Party Proceedings. The Company shall indemnify Indemnitee in accordance
with the provisions of this Section 3 if Indemnitee is made, has been made, or is or has been
threatened to be made, a party to or a participant in (as a witness or otherwise) any Proceeding,
other than a Proceeding by or in the right of the Company to procure a judgment in its favor.
Pursuant to this Section 3, Indemnitee shall be indemnified against all judgments, fines,
penalties, amounts paid in settlement (including, without limitation, all interest, assessments
and other charges paid or payable in connection with or in respect of any of the foregoing)
(collectively, “Losses”) and Expenses actually and reasonably incurred by Indemnitee or on
his or her behalf in connection with such Proceeding or any action, discovery event, claim, issue
or matter therein or related thereto, if Indemnitee acted in good faith and in a manner he or she
reasonably believed to be in or not opposed to the best interests of the Company, and, with respect
to a criminal Proceeding, had no reasonable cause to believe that his or her conduct was unlawful.
Indemnitee shall not enter into any settlement in connection with a Proceeding without ten (10)
days prior notice to the Company.

4. Indemnity in Proceedings by or in the Right of the Company. The Company shall indemnify
Indemnitee in accordance with the provisions of this Section 4 if Indemnitee is made, has been
made, or is or has been threatened to be made, a party to or a participant in (as a witness or
otherwise) any Proceeding by or in the right of the Company to procure a judgment in its favor.
Pursuant to this Section 4, Indemnitee shall be indemnified against all Expenses actually and
reasonably incurred by him or her or on his or her behalf in connection with such Proceeding or any
action, discovery event, claim, issue or matter therein or related thereto, if Indemnitee acted in
good faith and in a manner he or she reasonably believed to be in or not opposed to the best
interests of the Company. No indemnification for Expenses, however, shall be made under this
Section 4 in respect of any claim, issue or matter as to which Indemnitee shall have been finally
adjudged by a court to be liable to the Company, unless and only to the extent that the Delaware
Court of Chancery or the court in which the Proceeding was brought determines upon application
that, despite the adjudication of liability but in view of all the circumstances of the case,
Indemnitee fairly
and reasonably is entitled to indemnification for such portion of the Expenses as the court
deems proper.

 

5

 

5. Indemnification for Expenses Where Indemnitee is Wholly or Partly Successful.
Notwithstanding and in addition to any other provisions of this Agreement, to the extent that
Indemnitee is a party to or a participant in a Proceeding and is successful, on the merits or
otherwise, in any Proceeding or in the defense of any claim, issue or matter therein, in whole or
in part, the Company shall indemnify Indemnitee against all Expenses actually and reasonably
incurred by him or her or on his or her behalf in connection therewith. For the avoidance of
doubt, if Indemnitee is not wholly successful in such Proceeding but is successful, on the merits
or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the
Company shall indemnify Indemnitee against (a) all Expenses actually and reasonably incurred by him
or her or on his or her behalf in connection with each successfully resolved claim, issue or matter
and (b) any claim, issue or matter related to any such successfully resolved claim, issue or
matter. For purposes of this Section 5 and, without limitation, the termination of any claim,
issue or matter in such a Proceeding by withdrawal or dismissal, with or without prejudice, shall
be deemed to be a successful result as to such claim, issue or matter.

6. Indemnification for Expenses of a Witness. Notwithstanding and in addition to any other
provision of this Agreement, to the extent that Indemnitee is, by reason of his or her Corporate
Status, a witness in or otherwise incurs Expenses in connection with any Proceeding to which
Indemnitee is not a party, he or she shall be indemnified by the Company against all Expenses
actually and reasonably incurred by him or her or on his or her behalf in connection therewith.

7. Additional Indemnification.

(a) Notwithstanding any limitation in Sections 3, 4, or 5 hereof or in Section 145 of the DGCL
or other applicable statutory provision, the Company shall indemnify Indemnitee to the fullest
extent permitted by law if Indemnitee is made, or is threatened to be made, a party to any
Proceeding (including a Proceeding by or in the right of the Company to procure a judgment in its
favor) against all Losses and Expenses actually and reasonably incurred by Indemnitee in connection
with the Proceeding.

(b) For purposes of Section 7(a), the meaning of the phrase “to the fullest extent
permitted by law” shall include, but not be limited to:

i. to the fullest extent authorized or permitted by the then-applicable provisions of the DGCL
or other applicable statutory provision, that authorize or contemplate additional indemnification
by agreement, or the corresponding provision of any amendment to or replacement of the DGCL or
other applicable statutory provision, and

ii. to the fullest extent authorized or permitted by any amendments to or replacements of the
DGCL or other applicable statutory provision, adopted
after the date of this Agreement that increase the extent to which a corporation may indemnify
its officers or directors.

 

6

 

(c) Indemnitee shall be entitled to the prompt payment of all Expenses reasonably incurred in
enforcing successfully (fully or partially) this Agreement.

8. Exclusions. Notwithstanding any provision in this Agreement, the Company shall not be
obligated under this Agreement to make any indemnity in connection with any claim made against
Indemnitee:

(a) for which payment actually has been received by or on behalf of Indemnitee under any
insurance policy or other indemnity provision, except with respect to any excess beyond the amount
actually received under such insurance policy or other indemnity provision; or

(b) for an accounting of profits made from the purchase and sale (or sale and purchase) by
Indemnitee of securities of the Company within the meaning of Section 16(b) of the Exchange Act, as
amended, or similar provisions of state statutory law or common law; or

(c) prior to a Change in Control, in connection with any Proceeding (or any part of any
Proceeding) initiated by Indemnitee, including any Proceeding (or any part of any Proceeding)
initiated by Indemnitee against the Company (other than any Proceeding referred to in Sections
13(d) or (e) below or any other Proceeding commenced to recover any Expenses referred to in Section
7(c) above) or its directors, officers, employees or other indemnitees, unless (i) the Company
authorized the Proceeding (or any part of any Proceeding) prior to its initiation or (ii) the
Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the
Company under applicable law.

9. Advances of Expenses; Defense of Claim.

(a) Notwithstanding any provision of this Agreement to the contrary, the Company shall advance
to Indemnitee payment for Expenses incurred by him or her or on his or her behalf in connection
with a Proceeding to the fullest extent permitted by applicable law. This Section 9(a) shall not
apply to any Proceeding (or any part of any Proceeding) initiated by Indemnitee prior to a Change
in Control unless (i) the Company authorized the Proceeding (or any part of any Proceeding) prior
to its initiation or (ii) the Company authorized advancement, in its sole discretion, pursuant to
the powers vested in the Company under applicable law.

 

7

 

(b) The Company shall advance pursuant to Section 9(a) the Expenses incurred by Indemnitee in
connection with any Proceeding within twenty (20) days after the receipt by the Company of a
written statement or statements requesting such advances from time to time, whether prior to or
after final disposition of any Proceeding. Advances shall be unsecured and interest free.
Advances shall be made without regard to Indemnitee’s ability to repay such advances and without
regard to Indemnitee’s ultimate entitlement to
indemnification under the other provisions of this Agreement. Advances shall include any and
all reasonable Expenses incurred pursuing an action to enforce such right to receive advances,
including Expenses incurred preparing and forwarding statements to the Company to support the
advances claimed. Indemnitee shall qualify for advances upon the execution and delivery to the
Company of this Agreement which shall constitute an undertaking providing that the Indemnitee
undertakes to the fullest extent required by law to repay the advance if and to the extent that it
is ultimately determined by a court of competent jurisdiction in a final judgment, not subject to
appeal, that Indemnitee is not entitled to be indemnified by the Company. The right to advances
under this Agreement shall in all events continue until final disposition of any Proceeding,
including any appeal therein.

(c) The Company shall not settle any action, claim or Proceeding (in whole or in part) which
would impose any Expense, judgment, fine, penalty or limitation on the Indemnitee without the
Indemnitee’s prior written consent, which consent shall not be unreasonably withheld.

10. Procedure for Notification and Application for Indemnification.

(a) Within sixty (60) days after the actual receipt by Indemnitee of notice that he or she is
a party to or is requested to be a participant in (as a witness or otherwise) any Proceeding,
Indemnitee shall submit to the Company a written notice identifying the Proceeding. The failure by
the Indemnitee to notify the Company within such 60-day period will not relieve the Company from
any obligation which it may have to Indemnitee (i) otherwise than under this Agreement, and (ii)
under this Agreement, provided that if the Company can establish that such failure to notify the
Company in a timely manner resulted in actual prejudice to the Company, then the Company will be
relieved from an obligation under this Agreement only to the extent of such actual prejudice.

(b) Indemnitee shall at the time of giving such notice pursuant to Section 10(a) or thereafter
deliver to the Company a written application for indemnification. Such application may be
delivered at such time as Indemnitee deems appropriate in his or her sole discretion. Following
delivery of such a written application for indemnification by Indemnitee, the Indemnitee’s
entitlement to indemnification shall be determined promptly according to Section 11(a) of this
Agreement and the outcome of such determination shall be reported to Indemnitee in writing within
sixty (60) days of the submission of such application.

 

8

 

11. Procedure Upon Application for Indemnification.

(a) Upon written application by Indemnitee for indemnification pursuant to Section 10, a
determination, if required by applicable law, with respect to Indemnitee’s entitlement thereto
pursuant to the mandatory terms of this Agreement, pursuant to statute, or pursuant to other
sources of right to indemnity, and pursuant to Section 12 of this Agreement shall be made in the
specific case: (i) by a majority vote of the Disinterested Directors, whether or not such directors
otherwise would constitute a quorum of the Board; (ii) by a
committee of Disinterested Directors designated by a majority vote of such directors, whether
or not such directors would otherwise constitute a quorum of the Board, or (iii) if there are no
Disinterested Directors or if so requested by (x) the Indemnitee in his or her sole discretion or
(y) the Disinterested Directors, by Independent Counsel in a written opinion to the Board, a copy
of which shall be delivered to Indemnitee. Indemnitee shall reasonably cooperate with the person,
persons or entity making the determination with respect to Indemnitee’s entitlement to
indemnification, including providing to such person, persons or entity upon reasonable advance
request any documentation or information which is not privileged or otherwise protected from
disclosure and which is reasonably available to Indemnitee and reasonably necessary to such
determination. The Company shall pay any costs or expenses (including attorneys’ fees and
disbursements) incurred by or on behalf of Indemnitee in so cooperating with the person, persons or
entity making such determination (irrespective of the determination as to Indemnitee’s entitlement
to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless from
any such costs and expenses.

(b) If it is determined that Indemnitee is entitled to indemnification requested by the
Indemnitee in a written application submitted to the Company pursuant to Section 10, payment to
Indemnitee shall be made within ten (10) days after such determination. All advances of Expenses
requested in a written statement by Indemnitee pursuant to Section 9(b) prior to a final
determination of eligibility for indemnification shall be paid in accordance with Section 9.

(c) In the event the determination of entitlement to indemnification is to be made by
Independent Counsel pursuant to Section 11(a) hereof, the Independent Counsel shall be selected as
provided in this Section 11(c). The Independent Counsel shall be selected by Indemnitee (unless
Indemnitee shall request that such selection be made by a majority of the Disinterested Directors
then in office), and Indemnitee or the Company (as applicable) shall give written notice to the
other party advising it of the identity of the Independent Counsel so selected. The Company or
Indemnitee, as the case may be, may, within ten (10) days after such written notice of selection
shall have been received, deliver to Indemnitee or to the Company, as the case may be, a written
objection to such selection; provided, however, that such objection may be asserted
only on the ground that the Independent Counsel so selected does not meet the requirements of
“Independent Counsel” as defined in Section 2 of this Agreement, and the objection shall set forth
with particularity the factual basis of such assertion. Absent a proper and timely objection, the
person so selected shall act as Independent Counsel. If a written objection is made and
substantiated, the Independent Counsel so selected may not serve as Independent Counsel unless and
until such objection is withdrawn or a court of competent jurisdiction has determined that such
objection is without merit.

 

9

 

(d) In the event the determination of entitlement to indemnification is to be made by
Independent Counsel pursuant to Section 11(a) hereof, and if, within twenty (20) days after
submission by Indemnitee of a written request for indemnification pursuant to Section 10(b) hereof,
no Independent Counsel shall have been selected and not objected to,
either the Company or Indemnitee may petition a court of competent jurisdiction for resolution
of any objection which shall have been made by the Company or Indemnitee to the other’s selection
of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by
the Court or by such other person as the Court shall designate, and the person with respect to whom
all objections are so resolved or the person so appointed shall act as Independent Counsel under
Section 11(a) hereof.

(e) The Company agrees to pay the reasonable fees and expenses of the Independent Counsel and
to fully indemnify such Independent Counsel against any and all Expenses, claims, liabilities and
damages arising out of or relating to this Agreement or its engagement pursuant hereto.

(f) Upon the due commencement of any judicial proceeding or arbitration pursuant to Section
13(a) of this Agreement, any Independent Counsel shall be discharged and relieved of any further
responsibility in such capacity (subject to the applicable standards of professional conduct then
prevailing).

12. Presumptions and Effect of Certain Proceedings.

(a) Presumption in Favor of Indemnitee. In making a determination with respect to
entitlement to indemnification hereunder, the person or persons or entity making such determination
shall presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has
submitted an application for indemnification in accordance with Section 10(a) of this Agreement,
and the Company shall have the burden of proof to overcome that presumption.

(b) No Presumption Against Indemnitee. Neither the failure of the Company (including
by its Directors or Independent Counsel) to have made a determination prior to the commencement of
any action pursuant to this Agreement nor an actual determination by the Company (including by its
Directors or Independent Counsel) that Indemnitee has not met the applicable standard of conduct
for indemnification shall be a defense to the action or create a presumption that Indemnitee has
not met the applicable standard of conduct.

(c) Sixty Day Period for Determination. If the person, persons or entity empowered or
selected under Section 11 of this Agreement to determine whether Indemnitee is entitled to
indemnification shall not have made a determination within sixty (60) days after receipt by the
Company of an application therefor, a determination of entitlement to indemnification shall be
deemed to have been made and Indemnitee shall be entitled to such indemnification, absent (i) a
misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make
Indemnitee’s statement not materially misleading, in connection with the application for
indemnification, or (ii) a prohibition of such indemnification under applicable law.

 

10

 

(d) No Presumption from Termination of a Proceeding. The termination of any
Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction,
or upon a plea of nolo contendere, or its equivalent, shall not of itself adversely
affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not
act in good faith and in a manner which he or she reasonably believed to be in or not opposed to
the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had
reasonable cause to believe that his or her conduct was unlawful.

(e) Reliance as Safe Harbor. For purposes of any determination of good faith,
Indemnitee shall be deemed to have acted in good faith if Indemnitee’s action or failure to act is
based on the records or books of account of the Company or any Enterprise other than the Company,
including financial statements, or on information supplied to Indemnitee by the officers of the
Company or any Enterprise other than the Company in the course of their duties, or on the advice of
legal counsel for the Company or any Enterprise other than the Company or on information or records
given or reports made to the Company or any Enterprise other than the Company by an independent
certified public accountant or by an appraiser or other expert selected by the Company or any
Enterprise other than the Company. The provisions of this Section 12(e) shall not be deemed to be
exclusive or to limit in any way the other circumstances in which the Indemnitee may be deemed or
found to have met any applicable standard of conduct set forth in this Agreement.

(f) Actions of Others. The knowledge and/or actions, or failure to act, of any other
director, officer, trustee, administrator, partner, member, fiduciary, employee or agent of the
Company or any Enterprise other than the Company shall not be imputed to Indemnitee for purposes of
determining the right to indemnification under this Agreement.

13. Remedies of Indemnitee.

(a) Adjudication/Arbitration. In the event that (i) a determination is made pursuant
to Section 11 of this Agreement that Indemnitee is not entitled to indemnification under this
Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 9 of this Agreement,
(iii) no determination of entitlement to indemnification shall have been made pursuant to Section
11(a) of this Agreement within sixty (60) days after receipt by the Company of the application for
indemnification, or (iv) payment of indemnification is not made pursuant to Sections 3, 4, 5, 6, 7
or 11(b) of this Agreement within ten (10) days after a determination has been made that Indemnitee
is entitled to indemnification, or after receipt by the Company of a written request for any
additional monies owed with respect to a Proceeding as to which it already has been determined that
Indemnitee is entitled to indemnification, Indemnitee shall be entitled to an adjudication by a
court of his or her entitlement to such indemnification or advancement of Expenses. Alternatively,
Indemnitee, at his or her option, may seek an award in arbitration to be conducted by a single
arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association if
permitted by applicable law. The Company shall not oppose Indemnitee’s right to seek any such
adjudication or award in arbitration.

 

11

 

(b) Indemnitee Not Prejudiced by Prior Adverse Determination. In the event that a
determination shall have been made pursuant to Section 11(a) of this Agreement that Indemnitee is
not entitled to indemnification, any judicial proceeding or arbitration commenced pursuant to this
Section 13 shall be conducted in all respects as a de novo trial, or arbitration,
on the merits, and Indemnitee shall not be prejudiced by reason of the prior adverse determination.
In any judicial proceeding or arbitration commenced pursuant to this Section 13, the Company shall
have the burden of proving Indemnitee is not entitled to indemnification or advancement of
Expenses, as the case may be.

(c) Company Bound by Prior Determination. If a determination shall have been made
pursuant to Section 11(a) of this Agreement that Indemnitee is entitled to indemnification, the
Company shall be bound by such determination in any judicial proceeding or arbitration commenced
pursuant to this Section 13, absent (i) a misstatement by Indemnitee of a material fact, or an
omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in
connection with the application for indemnification, or (ii) a prohibition of such indemnification
under applicable law.

(d) Expenses. In the event that Indemnitee, pursuant to this Section 13, seeks a
judicial adjudication of or an award in arbitration to enforce his or her rights under, or to
recover damages for breach of, this Agreement, Indemnitee shall be entitled to recover from the
Company, and shall be indemnified by the Company against, any and all Expenses actually and
reasonably incurred by him or her in such judicial adjudication or arbitration if it shall be
determined in such judicial adjudication or arbitration that Indemnitee is entitled to receive all
or part of the indemnification or advancement of Expenses sought which the Company had disputed
prior to the commencement of the judicial proceeding or arbitration.

(e) Advances of Expenses. If requested by Indemnitee, the Company shall (within ten
(10) days after receipt by the Company of a written request therefor) advance to Indemnitee the
Expenses which are incurred by Indemnitee in connection with any judicial proceeding or arbitration
brought by Indemnitee for indemnification or advance of Expenses from the Company under this
Agreement or under any directors’ and officers’ liability insurance policies maintained by the
Company. Indemnitee shall qualify for such advances upon the execution and delivery to the Company
of this Agreement, which shall constitute an undertaking providing that Indemnitee undertakes to
the fullest extent required by law to repay such Expenses if Indemnitee ultimately is determined by
a court of competent jurisdiction in a final judgment, not subject to appeal, that Indemnitee is
not entitled to indemnification of such Expenses. The Indemnitee’s financial ability to repay any
such advances shall not be a basis for the Company to decline to make such advances.

(f) Precluded Assertions by the Company. The Company shall be precluded from
asserting in any judicial proceeding or arbitration commenced pursuant to this Section 13 that the
procedures and presumptions of this Agreement are not valid, binding and enforceable and shall
stipulate in any such court or before any such arbitrator that the Company is bound by all the
provisions of this Agreement.

 

12

 

14. Non-exclusivity; Survival of Rights; Insurance; Subrogation.

(a) Rights of Indemnitee Not Exclusive. The rights of indemnification and to receive
advancement of Expenses as provided by this Agreement shall not be deemed exclusive of any other
rights to which Indemnitee may at any time be entitled under applicable law, the Certificate of
Incorporation, or the By-Laws, any agreement, vote of stockholders or a resolution of directors or
otherwise. No right or remedy herein conferred by this Agreement is intended to be exclusive of
any other right or remedy, and every other right and remedy shall be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at law or in equity or
otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not
prevent the concurrent or subsequent assertion or employment of any other right or remedy.

(b) Survival of Rights. No amendment, alteration or repeal of this Agreement or of
any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in
respect of any action taken or omitted by such Indemnitee in his or her Corporate Status prior to
such amendment, alteration or repeal.

(c) Change of Law. To the extent that a change in Delaware law, or where applicable
Texas law, whether by statute or judicial decision, permits greater indemnification or advancement
of Expenses than would be afforded currently under the Certificate of Incorporation or the By-Laws,
or this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy and be
conferred by this Agreement the greater benefits so afforded by such change.

(d) Insurance. To the extent that the Company maintains an insurance policy or
policies providing liability insurance for directors, officers, trustees, administrators, partners,
members, fiduciaries, employees, or agents of the Company or of any other Enterprise which such
person serves at the request of the Company, Indemnitee shall be covered by such policy or policies
in accordance with its or their terms to the maximum extent of the coverage available for any such
director, trustee, administrator, partner, member, fiduciary, officer, employee or agent under such
policy or policies. If, at the time the Company receives notice from any source of a Proceeding as
to which Indemnitee is a party or a participant (as a witness or otherwise) the Company has
director and officer liability insurance in effect that covers Indemnitee, the Company shall give
prompt notice of such Proceeding to the insurers in accordance with the procedures set forth in the
respective policies. The Company shall thereafter take all necessary or desirable action to cause
such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such
Proceeding in accordance with the terms of such policies.

(e) Subrogation. In the event of any payment under this Agreement, the Company shall
be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who
shall execute all papers required and take all action necessary to secure such rights, including
execution of such documents as are necessary to enable the Company to bring suit to enforce such
rights.

 

13

 

(f) Other Payments. The Company shall not be liable under this Agreement to make any
payment of amounts otherwise indemnifiable (or for which advancement is provided hereunder) if and
to the extent that Indemnitee has otherwise actually received such payment under any insurance
policy, contract, agreement or otherwise.

(g) Other Indemnification. The Company’s obligation to indemnify or advance Expenses
hereunder to Indemnitee who is or was serving at the request of the Company as a director, officer,
trustee, administrator, partner, member, fiduciary, employee or agent of any other Enterprise shall
be reduced by any amount Indemnitee has actually received as indemnification or advancement of
expenses from such Enterprise.

15. Duration of Agreement. This Agreement shall continue until and terminate upon the later
of: (a) ten (10) years after the date that Indemnitee no longer serves in any of the following
capacities: director, officer, agent, fiduciary or employee of the Company or as a director,
officer, trustee, administrator, partner, member, fiduciary, employee or agent of any other
corporation, partnership, joint venture, trust, employee benefit plan or other Enterprise which
Indemnitee served at the request of the Company; or (b) one (1) year after the final termination of
any Proceeding (including after the expiration of any rights of appeal) then pending in respect of
which Indemnitee is granted rights of indemnification or advancement of Expenses hereunder and of
any proceeding commenced by Indemnitee pursuant to Section 13 of this Agreement (including any
rights of appeal of any Proceeding commenced pursuant to Section 13). This Agreement shall be
binding upon the Company and its successors and assigns and shall inure to the benefit of
Indemnitee and his or her heirs, executors and administrators.

16. Severability. If any provision or provisions of this Agreement shall be held to be
invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and
enforceability of the remaining provisions of this Agreement (including, without limitation, each
portion of any Section of this Agreement containing any such provision held to be invalid, illegal
or unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any way be
affected or impaired thereby and shall remain enforceable to the fullest extent permitted by law;
(b) such provision or provisions shall be deemed reformed to the extent necessary to conform to
applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the
fullest extent possible, the provisions of this Agreement (including, without limitation, each
portion of any Section of this Agreement containing any such provision held to be invalid, illegal
or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to
give effect to the intent manifested thereby.

17. Enforcement.

(a) The Company expressly confirms and agrees that it has entered into this Agreement and
assumed the obligations imposed on it hereby in order to induce Indemnitee to serve, or to continue
to serve, as a director of the Company, and the Company acknowledges that Indemnitee is relying
upon this Agreement in serving or continuing to serve as a director of the Company.

 

14

 

(b) This Agreement constitutes the entire agreement between the parties hereto with respect to
the subject matter hereof and supersedes all prior agreements and understandings, oral, written and
implied, between the parties hereto with respect to the subject matter hereof; provided,
however, that this Agreement is a supplement to and in furtherance of the Certificate of
Incorporation, the By-Laws of the Company and applicable law, and shall not be deemed a substitute
therefor, nor to diminish or abrogate any rights of Indemnitee thereunder.

18. Modification and Waiver. No supplement, modification or amendment of this Agreement shall
be binding unless executed in writing by each of the parties hereto. No waiver of any of the
provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions
of this Agreement nor shall any waiver constitute a continuing waiver.

19. Successors and Binding Agreement.

(a) The Company will require any successor (whether direct or indirect, by purchase, merger,
consolidation, reorganization or otherwise) and any acquiror of all or substantially all or a
substantial part of the business or assets of the Company, by agreement in form and substance
reasonably satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in
the same manner and to the same extent the Company would be required to perform it if no such
succession had taken place.

(b) This Agreement will be binding upon and inure to the benefit of the Company and any
successor to the Company, including, without limitation, any person acquiring directly or
indirectly all or substantially all or a substantial part of the business or assets of the Company
whether by purchase, merger, consolidation, reorganization or otherwise (and such successor will
thereafter be deemed the “Company”), but will not otherwise be assignable or delegatable by the
Company.

(c) This Agreement will inure to the benefit of and be enforceable by the Indemnitee’s
personal or legal representatives, executors, administrators, successors, heirs, distributees,
legatees and other successors.

(d) This Agreement is personal in nature and neither of the parties hereto will, without the
consent of the other, assign or delegate this Agreement or any rights or obligations hereunder
except as expressly provided in Sections 19(a), (b) and (c). Without limiting the generality or
effect of the foregoing, Indemnitee’s right to receive payments hereunder will not be assignable,
whether by pledge, creation of a security interest or otherwise, other than by a transfer by the
Indemnitee’s will, devise, a grantor’s trust instrument under which the Indemnitee or his estate is
the sole beneficiary, or by the laws of descent and distribution, and, in the event of any
attempted assignment or transfer contrary to this Section 19(d), the Company will have no liability
to pay any amount so attempted to be assigned or transferred.

 

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20. Notices. All notices, requests, demands and other communications under this Agreement
shall be in writing and shall be deemed to have been duly given if: (i) delivered by hand and
receipted for by the party to whom said notice or other communication shall have been directed, on
the date of such receipt, or (ii) mailed by certified or registered mail with postage prepaid, on
the third business day after the date on which it is so mailed:

(a) If to Indemnitee, at the address indicated on the signature page of this Agreement, or
such other address as Indemnitee subsequently shall provide in writing to the Company.

(b) If to the Company to:

Craftmade International, Inc.

650 South Royal Lane, Suite 100

Coppell, Texas 75019

Attention: Chief Executive Officer

or to any other address as may have been furnished to Indemnitee in writing by the Company.

21. Contribution. To the fullest extent permissible under applicable law, if the
indemnification provided for in this Agreement is unavailable to Indemnitee for any reason
whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount
incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to
be paid in settlement and/or for Expenses, in connection with any claim relating to an
indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in
light of all of the circumstances of such Proceeding in order to reflect (i) the relative benefits
received by the Company, on the one hand, and Indemnitee, on the other, as a result of the event(s)
and/or transaction(s) giving cause to such Proceeding; and/or (ii) the relative fault of the
Company, on the one hand (and its directors, officers, employees and agents) and Indemnitee, on the
other, in connection with such event(s) and/or transaction(s).

 

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22. Applicable Law and Consent to Jurisdiction. This Agreement and the legal relations among
the parties shall be governed by, and construed and enforced in accordance with, the laws of the
State of Delaware, without regard to its conflict of laws, principles or rules. Except with
respect to any arbitration commenced by Indemnitee pursuant to Section 13 of this Agreement, the
Company and Indemnitee hereby irrevocably and unconditionally (i) agree that any action or
proceeding arising out of or in connection with this Agreement shall be brought only in the Court
of Chancery of the State of Delaware (the “Delaware Court”), and not in any other state or
federal court in the United States of America or any court in any other country, (ii) consent to
submit to the exclusive jurisdiction of the Delaware Court for purposes of any action or proceeding
arising out of or in connection with this Agreement, (iii) in the case of the Company only,
irrevocably appoints CT Corporation, 1209 Orange Street, Wilmington, New Castle County, Delaware
19808 as its agent in the State of Delaware as such party’s agent for acceptance of legal process
in connection with any such action or proceeding against such party with the same legal force and
validity as if served
upon such party personally within the State of Delaware, (iv) waive any objection to the
laying of venue of any such action or proceeding in the Delaware Court, and (v) waive, and agree
not to plead or to make, any claim that any such action or proceeding brought in the Delaware Court
has been brought in an improper or inconvenient forum. To the fullest extent permitted by
applicable law, Indemnitee consents to the service of process out of the Delaware Court in any
suit, action or other proceeding arising out of this Agreement by mailing of copies thereof by
registered mail to Indemnitee at his or her address determined in accordance with Section 20
hereof, such service of process to be effective upon acknowledgement of receipt of such registered
mail. Nothing in this Agreement shall affect the rights of any party to serve legal process in any
other manner permitted by law.

23. Identical Counterparts. This Agreement may be executed in one or more counterparts, each
of which shall for all purposes be deemed to be an original but all of which together shall
constitute one and the same Agreement. Only one such counterpart signed by the party against whom
enforceability is sought needs to be produced to evidence the existence of this Agreement.

24. Miscellaneous. Use of the masculine pronoun shall be deemed to include usage of the
feminine pronoun where appropriate. The headings of the paragraphs of this Agreement are inserted
for convenience only and shall not be deemed to constitute part of this Agreement or to affect the
construction thereof. Whenever the words “include,” “includes” or “including” are used in this
Agreement, they shall be deemed to be followed by the words “without limitation.”

[The remainder of this page is intentionally left blank.]

 

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IN WITNESS WHEREOF, the parties have caused this Agreement to be signed as of the day and year
first above written.

	 	 	 	 	 	 	 	 	 
	CRAFTMADE INTERNATIONAL, INC.

	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 

	 	 
	 

	 	 

	 	 	 	 

	 	 
	 

	 	 	 	 	 	Indemnitee	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Address for Notices to Indemnitee:	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 

	 	 

 

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