Document:

Master Repurchase Agreement, dated 8/17/01

 EXHIBIT 10.1 
  

  
 MASTER REPURCHASE AGREEMENT 
  
 CREDIT SUISSE FIRST BOSTON
MORTGAGE CAPITAL LLC, as buyer 
 (“Buyer”, which term shall include any “Principal” 
 as defined and provided for in Annex I) or as agent pursuant hereto (“Agent”) and 
  
 WMC Mortgage Corp., as seller (“Seller”) 
  
 Dated August 17, 2001 
  

 1. Applicability 
  
 From time to time the parties hereto may enter into transactions in which Seller agrees to transfer to Buyer Mortgage Loans
(as hereinafter defined) against the transfer of funds by Buyer, with a simultaneous agreement by Buyer to transfer to Seller such Mortgage Loans at a date certain or on demand, against the transfer of funds by Seller. Each such transaction shall be
referred to herein as a “Transaction” and, unless otherwise agreed in writing, shall be governed by this Agreement, including any supplemental terms or conditions contained in any annexes identified herein, as applicable hereunder.

  
 2. Definitions 
  
 Whenever used in this Agreement, the following words and phrases, unless the
context otherwise requires, shall have the following meanings: 
  
 “Acceptable State” means any state acceptable pursuant to Seller’s Underwriting Guidelines. 
  
 “Accepted Servicing Practices” means, with respect to any Mortgage Loan, those mortgage servicing practices of prudent mortgage lending
institutions which service mortgage loans of the same type as such Mortgage Loan in the jurisdiction where the related Mortgaged Property is located. 
  
 “Act” means the National Housing Act, as amended from time to time and codified in 24 Code of Federal Regulations. 
  
 “Act of Insolvency” means, with respect to any Person and
its Affiliates, (i) the filing of a petition, commencing, or authorizing the commencement of any case or proceeding under any bankruptcy, insolvency, reorganization, liquidation, dissolution or similar law relating to the protection of creditors, or
suffering any such petition or proceeding to be commenced by another which is consented to, not timely contested or results in entry of an order for relief; (ii) the seeking of the appointment of a receiver, trustee, custodian or similar official
for such Person or an Affiliate or any substantial part of the property of either; (iii) the appointment of a receiver, conservator, or manager for such Person or an Affiliate by any governmental agency or authority having the jurisdiction to do so;
(iv) the making or offering by such Person or an Affiliate of a composition with its creditors or a general assignment for the benefit of creditors; (v) the admission by such Person or an Affiliate of such Person of its inability to pay its debts or
discharge its obligations as they become due or mature; or (vi) that any governmental authority or agency or any person, agency or entity acting or purporting to act under governmental authority shall have taken any action to condemn, seize or
appropriate, or to assume custody or control of, all or any substantial part of the property of such Person or of any of its Affiliates, or shall have taken any action to displace the management of such Person or of any of its Affiliates or to
curtail its authority in the conduct of the business of such Person or of any of its Affiliates. 
  
 “Affiliate” means with respect to any Person, any “affiliate” of such Person, as such term is defined in the Bankruptcy Code.

 “Aged Loan” means a Mortgage Loan the date of which is set forth in the related Mortgage
Note is greater than 90 days prior, but not more than 180 days prior, to the date of determination. 
  
 “Agency” means Freddie Mac, Fannie Mae or GNMA, as applicable. 
  
 “Agency Security” means a mortgage-backed security issued by one of the Agencies. 
  
 “Agent” means Credit Suisse First Boston Mortgage Capital
LLC or any Affiliate or successor thereto. 
  
 “Agreement” means this Master Repurchase Agreement, as it may be amended, supplemented or otherwise modified from time to time. 
  
 “Alt A Mortgage Loan” means a Mortgage Loan originated in accordance with the criteria established by Buyer for Alt-A mortgage loans, as
determined by Buyer in its sole discretion. 
  
 “Apollo
Funds” means Apollo Advisors, L.P., any Affiliate of Apollo Advisors, L.P. or any Person in which any of the forgoing is the managing partner, managing member or controlling shareholder. 
  
 “Appraised Value” means the value set forth in an appraisal
made in connection with the origination of the related Mortgage Loan as the value of the Mortgaged Property. 
  
 “Asset Tape” means a remittance report on a monthly basis containing servicing information, including without limitation those fields
reasonably requested by Buyer from time to time, on a loan-by-loan basis and in the aggregate, with respect to the Purchased Mortgage Loans serviced hereunder by Seller or any Servicer for the month (or any portion thereof) prior to the Reporting
Date. 
  
 “Bailee Letter” has the meaning
assigned to such term in the Custodial Agreement. 
  
 “Bankruptcy Code” means the United States Bankruptcy Code of 1978, as amended from time to time. 
  
 “Bid” has the meaning set forth in Section 4(c) hereof. 
  
 “Bid Fee” has the meaning set forth in Section 4(c) hereof. 
  
 “Business Day” means any day other than (A) a Saturday or
Sunday or (B) a public or bank holiday in New York City, Illinois or, for purposes of Section 6 only, California. 
  
 “Buyer” means Credit Suisse First Boston Mortgage Capital LLC, and any successor hereunder. 
  

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 “Buyer’s Margin Amount” means with respect to any Transaction as of any date of
determination, an amount equal to the product of (A) Buyer’s Margin Percentage and (B) the then current Purchase Price for such Transaction; provided that, with respect to any Mortgage Loan which: 
  
 (a) was not a Non-Performing Mortgage Loan on the related Purchase Date
which, as of the date of determination, is a Non-Performing Mortgage Loan; or 
  
 (b) was a Wet-Ink Mortgage Loan on the related Purchase Date which, as of the date of determination, is not a Wet-Ink Mortgage Loan; or 
  
 (c) which as of the date of determination is an Aged Loan; or 
  
 (d) was not an Exception Mortgage Loan on the related Purchase Date which, as of the date of determination, is an Exception
Mortgage Loan; 
  
 then, in each case, the Buyer’s Margin
Percentage as of such date of determination shall be equal to the percentage obtained by dividing the Market Value of such Mortgage Loan on the related Purchase Date by an amount equal to the amount the Purchase Price would have been on the Purchase
Date if the Mortgage Loan had been categorized as the type of Mortgage Loan (e.g., Non-Performing Mortgage Loan, Aged Loan, Wet-Ink Mortgage Loan, Exception Mortgage Loan) that it is categorized as on the date of determination. 
  
 “Buyer’s Margin Percentage” means, with respect to any
Transaction as of any date, a percentage equal to the percentage obtained by dividing the Market Value of the Purchased Mortgage Loans on the Purchase Date by the Purchase Price on the Purchase Date for such Transaction. 
  
 “Calmco” means Vesta Servicing L.P. 
  
 “Capital Lease Obligations” means, for any Person, all
obligations of such Person to pay rent or other amounts under a lease of (or other agreement conveying the right to use) Property to the extent such obligations are required to be classified and accounted for as a capital lease on a balance sheet of
such Person under GAAP, and, for purposes of this Agreement, the amount of such obligations shall be the capitalized amount thereof, determined in accordance with GAAP. 
  
 “Change in Control” means: 
  
 (A) any transaction or event as a result of which WMC Finance Co. ceases to own, beneficially or of record,
100% of the stock of Seller; 
  
 (B) any
transaction or event as a result of which Apollo Funds cease to own, in the aggregate, beneficially or of record, at least 51% of the stock of WMC Finance Co.; 
  

(C) the consummation of a merger or consolidation of Seller with or into another entity or any other corporate reorganization, if more
than 50% of the combined 

  

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voting power of the continuing or surviving entity’s stock outstanding immediately after such merger, consolidation or such other reorganization is
owned by Persons who were not stockholders of Seller immediately prior to such merger, consolidation or other reorganization; or 
  
 (D) the sale, transfer or other disposition of all or substantially all of Seller’s assets. 
  
 “Code” means the Internal Revenue Code of 1986, as amended.

  
 “Collection Account” means one or more
accounts established by the Servicer for the benefit of Buyer into which all collections and proceeds on or in respect of the Mortgage Loans shall be deposited by Servicer. 
  
 “Committed Mortgage Loan” means a Mortgage Loan which is the subject of a Takeout Commitment with a Takeout
Investor. 
  
 “Computer Tape” means a computer
tape or other electronic medium generated by Seller and delivered to Buyer and Custodian which provides information relating to the Purchased Mortgage Loans, including the information set forth in the Mortgage Loan Schedule, in a format reasonably
acceptable to Buyer. 
  
 “Conforming Mortgage
Loan” means a Mortgage Loan originated in accordance with the criteria of an Agency for purchase of Mortgage Loans, including without limitation, conventional Mortgage Loans, FHA Loans and VA Loans, as determined by Buyer in its sole
discretion. 
  
 “Consolidated EBITDA” means, for
any period, the sum for such period of (a) Consolidated Net Income for such period, (b) the sum of provisions for such period for income taxes, interest expense, and depreciation and amortization expense used in determining such Consolidated Net
Income, (c) amounts deducted in such period in respect of non-cash expenses in accordance with GAAP, (d) the amount of any aggregate net loss (or minus the amount of any gain) during such period arising from the sale, exchange or other disposition
of capital assets and (e) non-cash expenses deducted in such period in connection with any earn-out agreements, stock appreciation rights, “phantom” stock plans, employment agreements, non-competition agreements, subscription and
stockholders agreements and other incentive and bonus plans and similar arrangements made in connection with acquisitions of Persons or businesses by the Seller or its Subsidiaries or the retention of executives, officers or employees by the Seller
or its Subsidiaries, including (but without duplication) any Person that has become a Subsidiary during such period, on a pro forma basis as if such acquisition had occurred on the first day of such period; provided, that Consolidated EBITDA shall
in any event exclude, from and after the Effective Date, (x) the effect of any write-up of any assets acquired and (y) the amount of any non-cash income recognized during any period for which Consolidated EBITDA is determined; provided, that for
purposes of this definition and where this definition is used, WMC Residco Inc. shall not be deemed to be a Subsidiary of Seller. 
  
 “Consolidated Interest Expense” means, for any period, the amount which, in conformity with GAAP, would be set forth opposite the caption
“interest expense” or any like 

  

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caption (including without limitation, imputed interest included in payments under Financing Leases) on a consolidated income statement of the Seller and its
Subsidiaries for such period excluding the amortization of any original issue discount and capitalized interest expense and fees under this Agreement; provided, that for purposes of this definition and where this definition is used, WMC Residco Inc.
shall not be deemed to be a Subsidiary of Seller. 
  
 “Consolidated Net Income” means, for any period, the consolidated net income (or deficit) of the Seller and the Subsidiaries for such period (taken as a cumulative whole), determined in accordance with GAAP; provided
that there shall be excluded (a) the income (or deficit) of any Person accrued prior to the date it becomes a Subsidiary or is merged into or consolidated with the Seller or any Subsidiary, (b) the income (or deficit) of any Person (other than a
Subsidiary) in which the Seller or any Subsidiary has an ownership interest, except to the extent that any such income has been actually received by the Seller or such Subsidiary in the form of dividends or similar distributions, (c) the
undistributed earnings of any Subsidiary to the extent that the declaration or payment of dividends or similar distributions by such Subsidiary is not at the time permitted by the terms of any Contractual Obligation, Governing Document or
Requirement of Law applicable to such Subsidiary, (d) any net gain from the collection of the proceeds of life insurance policies, (e) any gain arising from the acquisition of any securities, or the extinguishment, under GAAP, of any Indebtedness,
of the Seller or any Subsidiary, (f) in the case of a successor to the Seller by consolidation or merger or as a transferee of its assets, any earnings of the successor corporation prior to such consolidation, merger or transfer of assets, and (g)
any deferred credit representing the excess of equity in any Subsidiary at the date of acquisition over the cost of the investment in such Subsidiary. 
  
 “Consolidated Tangible Net Worth” means total shareholders equity minus goodwill, patents, trade names, trademarks, copyrights,
franchises, organizational expense, deferred expenses and other assets in each case as are shown as intangible assets on the balance sheet of Seller and its subsidiaries on a consolidated basis as determined at a particular date in accordance with
GAAP. 
  
 “Contractual Obligation” means, as to
any Person, any provision of any security issued by such Person or of any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound. 
  
 “Custodial Agreement” means the custodial agreement, dated
as of the date hereof, among Seller, Buyer and Custodian as the same may be amended from time to time. 
  
 “Custodian” means LaSalle Bank, National Association or such other party specified by Buyer and agreed to by Seller, which approval shall
not be unreasonably withheld. 
  
 “Default” means
an Event of Default or an event that with notice or lapse of time or both would become an Event of Default. 
  
 “Default Affiliate” shall mean any Affiliate of the Seller in which the Seller has a controlling ownership interest. 
  
 “Delinquent Mortgage Loan” means any Mortgage Loan for which
any payment of principal or interest is more than thirty (30), but not more than fifty-nine (59), days past due. 
  

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 “Due Date” means the day of the month on which the Monthly Payment is due on a Mortgage
Loan, exclusive of any days of grace. 
  
 “Effective
Date” means the date upon which the conditions precedent set forth in Section 10 shall have been satisfied. 
  
 “Electronic Tracking Agreement” means an Electronic Tracking Agreement among Buyer, Seller, MERS and MERSCORP, Inc., to the extent
applicable. 
  
 “ERISA” means the Employee
Retirement Income Security Act of 1974, as amended from time to time. 
  
 “ERISA Affiliate” means any corporation or trade or business that is a member of any group of organizations (i) described in Section 414(b) or (c) of the Code of which Seller is a member and (ii) solely for purposes of
potential liability under Section 302(c)(11) of ERISA and Section 412(c)(11) of the Code and the lien created under Section 302(f) of ERISA and Section 412(n) of the Code, described in Section 414(m) or (o) of the Code of which Seller is a member.

  
 “Escrow Payments” means, with respect to any
Mortgage Loan, the amounts constituting ground rents, taxes, assessments, water rates, sewer rents, municipal charges, mortgage insurance premiums, fire and hazard insurance premiums, condominium charges, and any other payments required to be
escrowed by the Mortgagor with the mortgagee pursuant to the Mortgage or any other document. 
  
 “Event of Default” has the meaning specified in Section 14 hereof. 
  
 “Exception Mortgage Loan” means any Mortgage Loan which is otherwise ineligible for purchase hereunder which is approved by Buyer in its
sole discretion. The Pricing Rate, Market Value, Purchase Price and Buyer’s Margin Percentage with respect to Exception Mortgage Loans shall be set in the sole discretion of Buyer. A Mortgage Loan’s status as an Exception Mortgage Loan may
be changed at any time by Buyer in its sole discretion. 
  
 “Existing Credit Facilities” has the meaning specified in Section 13(a)(22) hereof. 
  
 “FHA” means the Federal Housing Administration, an agency within the United States Department of Housing and Urban Development, or any
successor thereto and including the Federal Housing Commissioner and the Secretary of Housing and Urban Development where appropriate under the FHA Regulations. 
  

“FHA Approved Mortgagee” means a corporation or institution approved as a mortgagee by the FHA under the Act and applicable FHA
Regulations, and eligible to own and service mortgage loans such as the FHA Loans. 
  
 “FHA Loan” means a Mortgage Loan which is the subject of an FHA Mortgage Insurance Contract. 
  
 “FHA Mortgage Insurance Contract” means the contractual obligation of the FHA respecting the insurance of a Mortgage Loan. 
  

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 “FHA Regulations” means the regulations promulgated by HUD under the Act, codified in 24
Code of Federal Regulations, and other HUD issuances relating to FHA Loans, including the related handbooks, circulars, notices and mortgagee letters. 
  
 “Financing Lease” means, any lease of property, real or personal, the obligations of the lessee in respect of which are required in
accordance with GAAP to be capitalized on a balance sheet of the lessee. 
  
 “Foreclosed Loan” means a Mortgage Loan the property securing which has been foreclosed upon by Seller. 
  
 “GAAP” means generally accepted accounting principles in effect from time to time in the United States of America and applied on a
consistent basis. 
  
 “Governing Documents”
means, as to any Person, its articles or certificate of incorporation and by-laws, its partnership agreement, its certificate of formation and operating agreement, and/or the other organizational or governing documents of such Person. 
  
 “Governmental Authority” means any nation or government, any
state or other political subdivision thereof, or any entity exercising executive, legislative, judicial, regulatory or administrative functions over Seller or Buyer, as applicable. 
  
 “Gross Margin” means, with respect to each adjustable rate Mortgage Loan, the fixed percentage amount set
forth in the related Mortgage Note. 
  
 “Guarantee” means, as to any Person, any obligation of such Person directly or indirectly guaranteeing any Indebtedness of any other Person or in any manner providing for the payment of any Indebtedness of any other Person
or otherwise protecting the holder of such Indebtedness against loss (whether by virtue of partnership arrangements, by agreement to keep-well, to purchase assets, goods, securities or services, or to take-or-pay or otherwise); provided that the
term “Guarantee” shall not include (i) endorsements for collection or deposit in the ordinary course of business, or (ii) obligations to make servicing advances for delinquent taxes and insurance or other obligations in respect of a
Mortgaged Property, to the extent required by Buyer. The amount of any Guarantee of a Person shall be deemed to be an amount equal to the stated or determinable amount of the primary obligation in respect of which such Guarantee is made or, if not
stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by such Person in good faith. The terms “Guarantee” and “Guaranteed” used as verbs shall have correlative
meanings. 
  
 “High Cost Mortgage Loans” means
any Mortgage Loans classified as (a) “high cost” loans under the Home Ownership and Equity Protection Act of 1994 or (b) “high cost,” “threshold,” or “predatory” loans under any other applicable state, federal
or local law. 
  
 “Income” means with respect to
any Purchased Mortgage Loan at any time, any principal received thereon or in respect thereof and all interest, dividends or other distributions thereon. 
  

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 “Indebtedness” means, for any Person: (a) obligations created, issued or incurred by
such Person for borrowed money (whether by loan, the issuance and sale of debt securities or the sale of Property to another Person subject to an understanding or agreement, contingent or otherwise, to repurchase such Property from such Person); (b)
obligations of such Person to pay the deferred purchase or acquisition price of Property or services, other than trade accounts payable (other than for borrowed money) arising, and accrued expenses incurred, in the ordinary course of business so
long as such trade accounts payable are payable within 90 days of the date the respective goods are delivered or the respective services are rendered; (c) Indebtedness of others secured by a Lien on the Property of such Person, whether or not the
respective Indebtedness so secured has been assumed by such Person; (d) obligations (contingent or otherwise) of such Person in respect of letters of credit or similar instruments issued or accepted by banks and other financial institutions for
account of such Person; (e) Capital Lease Obligations of such Person; (f) obligations of such Person under repurchase agreements, sale/buy-back agreements or like arrangements; (g) Indebtedness of others Guaranteed by such Person; (h) all
obligations of such Person incurred in connection with the acquisition or carrying of fixed assets by such Person; and (i) Indebtedness of general partnerships of which such Person is a general partner. 
  
 “Index” means, with respect to any adjustable rate Mortgage
Loan, the index identified on the Mortgage Loan Schedule and set forth in the related Mortgage Note for the purpose of calculating the applicable Mortgage Interest Rate. 
  
 “Interest Rate Adjustment Date” means the date on which an adjustment to the Mortgage Interest Rate with
respect to each Mortgage Loan becomes effective. 
  
 “Interest Rate Protection Agreement” means, with respect to any or all of the Conforming Mortgage Loans, any short sale of a US Treasury Security, or futures contract, or mortgage related security, or Eurodollar futures
contract, or options related contract, or interest rate swap, cap or collar agreement or Takeout Commitment, or similar arrangements providing for protection against fluctuations in interest rates or the exchange of nominal interest obligations,
either generally or under specific contingencies, entered into by Seller and an Affiliate of Buyer or such other party acceptable to Buyer in its sole discretion, which agreement is acceptable to Buyer in its sole discretion. 
  
 “Jumbo Mortgage Loan” means a Mortgage Loan which exceeds
the maximum principal balance limitations of Fannie Mae and Freddie Mac. 
  
 “LIBOR” means for each day, the rate of interest (calculated on a per annum basis) equal to the overnight British Bankers Association Rate as reported on the display designated as “BBAM”
“Page DG8 4a” on Bloomberg (or such other display as may replace “BBAM” “Page DG8 4a” on Bloomberg) on such date of determination, and if such rate shall not be so quoted, the rate per annum at which Buyer is offered
Dollar deposits at or about 11:00 a.m., New York City time, on such day, by prime banks in the interbank eurodollar market where the eurodollar and foreign currency exchange operations in respect of its loans are then being conducted for delivery on
such day for an overnight period, and in an amount comparable to the amount of the Purchase Price of Transactions to be outstanding on such day. 
  

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 “Lien” means any mortgage, lien, pledge, charge, security interest or similar
encumbrance. 
  
 “Manufactured Home”: A
manufactured home, including all accessions thereto, that is legally classified as real property under applicable state law which conforms with the applicable Fannie Mae or Freddie Mac requirements regarding mortgage loans related to manufactured
dwellings. 
  
 “Manufactured Home Loan”: A
Mortgage Loan secured by property upon which the primary dwelling is a Manufactured Home. 
  
 “Margin Call” has the meaning specified in Section 6(a) hereof. 
  
 “Margin Deficit” has the meaning specified in Section 6(a) hereof. 
  
 “Market Value” means with respect to any Purchased Mortgage Loan as of any date (including any date on
which the Seller notifies the Buyer that a Take-out Investor has rejected such Mortgage Loan), the whole-loan servicing released fair market value of such Purchased Mortgage Loan on such date as determined by Buyer (or an Affiliate thereof) in its
good-faith discretion. Without limiting the generality of the foregoing, Seller acknowledges that the Market Value of a Purchased Mortgage Loan may be reduced to zero by Buyer if: 
  
 (i) there exists a breach of a representation, warranty or covenant made by Seller in this Agreement with
respect to such Purchased Mortgage Loan that materially and adversely affects the value of such Purchased Mortgage Loan or Buyer’s interest in such Purchased Mortgage Loan and which breach has not been cured; 
  
 (ii) the Purchased Mortgage Loan has been released from the
possession of the Custodian under the Custodial Agreement (other than to a Take-out Investor pursuant to a Bailee Letter) for a period in excess of fourteen (14) calendar days; 
  
 (iii) the Purchased Mortgage Loan has been released from the possession of the Custodian under the Custodial
Agreement to a Take-out Investor pursuant to a Bailee Letter for a period in excess of 45 calendar days; 
  
 (iv) the Purchased Mortgage Loan has been held by the Custodian for the benefit of Buyer (in its capacity as Buyer hereunder or as a
secured lender) for a period of greater than (a) ninety (90) days (unless the Mortgage Loan is an Aged Loan) or (b) one hundred eighty (180) days with respect to each Aged Loan; 
  
 (v) the Purchased Mortgage Loan is a Non-Performing Mortgage Loan for which any payment of principal or
interest is more than two hundred and seventy (270) days past due; 
  

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 (vi) such Purchased Mortgage Loan is a Wet-Ink Mortgage Loan for which the Mortgage File
has not been delivered to the Custodian on or prior to the eighth Business Day after the related Purchase Date; 
  
 (vii) when the Purchase Price of such Purchased Mortgage Loan is added to the Purchase Price of other Purchased Mortgage Loans, the
aggregate Purchase Price of all Second Lien Mortgage Loans that are Purchased Mortgage Loans exceeds $15,000,000; 
  
 (viii) when the Purchase Price of such Purchased Mortgage Loan is added to the Purchase Price of other Purchased Mortgage Loans, the
aggregate Purchase Price of all Aged Loans that are Purchased Mortgage Loans exceeds $20,000,000; 
  
 (ix) when the Purchase Price of such Purchased Mortgage Loan is added to the Purchase Price of other Purchased Mortgage Loans, the
aggregate Purchase Price of all Wet-Ink Mortgage Loans that are Purchased Mortgage Loans exceeds $52,500,000; 
  
 (x) when the Purchase Price of such Purchased Mortgage Loan is added to the Purchase Price of other Purchased Mortgage Loans, the
aggregate Purchase Price of all Delinquent Mortgage Loans that are Purchased Mortgage Loans exceeds $15,000,000; 
  
 (xi) when the Purchase Price of such Purchased Mortgage Loan is added to the Purchase Price of other Purchased Mortgage Loans, the
aggregate Purchase Price of all Non-Performing Mortgage Loans that are Purchased Mortgage Loans exceeds $10,000,000; 
  
 (xii) when the Purchase Price of such Purchased Mortgage Loan is added to the Purchase Price of other Purchased Mortgage Loans, the
aggregate Purchase Price of all Wet-Ink Mortgage Loans with a single Settlement Agent that are Purchased Mortgage Loans exceeds $1,500,000 (unless consented to in writing by the Buyer); 
  
 (xiii) when the Purchase Price of such Purchased Mortgage Loan is added to the Purchase Price of other
Purchased Mortgage Loans, the aggregate Purchase Price of all High Cost Mortgage Loans that are Purchased Mortgage Loans exceeds $3,000,000 or 
  
 (xiv) when the Purchase Price of such Purchased Mortgage Loan is added to the Purchase Price of other Purchased Mortgage Loans, the
aggregate Purchase Price of all Manufactured Home Loans that are Purchased Mortgage Loans exceeds $3,000,000. 
  

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 “Material Adverse Effect” means (a) a material adverse change in, or a material adverse
effect upon, the operations, business, properties, financial condition or reasonably likely prospects of Seller or any Affiliate that is a party to any Program Agreement taken as a whole; (b) a material impairment of the ability of Seller or any
Affiliate that is a party to any Program Agreement to perform under any Program Agreement and to avoid any Event of Default; or (c) a material adverse effect upon the legality, validity, binding effect or enforceability of any Program Agreement
against Seller or any Affiliate that is a party to any Program Agreement. 
  
 “Maximum Aggregate Purchase Price” means ONE HUNDRED FIFTY MILLION DOLLARS ($150,000,000). 
  
 “MERS” means Mortgage Electronic Registration Systems, Inc., a corporation organized and existing under the laws of the State of
Delaware, or any successor thereto. 
  
 “MERS Mortgage
Loan”: means any Mortgage Loan registered with MERS on the MERS System. 
  
 “MERS System” means the system of recording transfers of mortgages electronically maintained by MERS. 
  
 “Monthly Payment” means the scheduled monthly payment of principal and interest on a Mortgage Loan. 
  
 “Moody’s” means Moody’s Investors Service, Inc. or
any successors thereto. 
  
 “Mortgage File”
means, with respect to a Mortgage Loan, the documents and instruments relating to such Mortgage Loan and set forth in Exhibit F to the Custodial Agreement. 
  
 “Mortgage Interest Rate” means the annual rate of interest borne on a Mortgage Note. 
  
 “Mortgage Loan” means any Sub-Prime Mortgage Loan,
Non-Performing Mortgage Loan, Exception Mortgage Loan, Jumbo Mortgage Loan, Alt A Mortgage Loan, Conforming Mortgage Loan which is a closed-end, fixed or floating-rate, first or second lien, one-to-four-family residential mortgage or home equity
loan evidenced by a promissory note and secured by a mortgage, which satisfies the requirements set forth in the Underwriting Guidelines and Section 13(b) hereof; provided, however, that Mortgage Loans shall not include any
“high-LTV” loans (i.e., a mortgage loan containing a loan-to-value ratio in excess of 100% or in excess of such lower percentage specified in the Underwriting Guidelines) and, provided further, that the origination date with respect
to such Mortgage Loan is no earlier than sixty (60) days prior to the related Purchase Date unless otherwise approved by Buyer in writing. 
  
 “Mortgage Loan Schedule” means with respect to any Transaction as of any date, a mortgage loan schedule in the form of Exhibit C
attached hereto. 
  
 “Mortgage Note” means the
promissory note or other evidence of the indebtedness of a Mortgagor secured by a Mortgage. 
  

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 “Mortgaged Property” means the real property securing repayment of the debt evidenced by
a Mortgage Note. 
  
 “Mortgagor” means the
obligor or obligors on a Mortgage Note, including any person who has assumed or guaranteed the obligations of the obligor thereunder. 
  
 “Multiemployer Plan” means a multiemployer plan defined as such in Section 3(37) of ERISA to which contributions have been or are
required to be made by Seller or any ERISA Affiliate and that is covered by Title IV of ERISA. 
  
 “Net Income” means, for any period and any Person, the net income of such Person for such period as determined in accordance with GAAP. 
  
 “1934 Act” means, the Securities Exchange Act of 1934, as amended. 
  
 “Non-Performing Mortgage Loan” means any Mortgage Loan for
which any payment of principal or interest is more than fifty-nine (59) days past due. 
  
 “Obligations” means (a) all of Seller’s indebtedness, obligations to pay the Repurchase Price on the Repurchase Date, the Price Differential on each Price Differential Payment Date, and other
obligations and liabilities, to Buyer, its Affiliates or Custodian arising under, or in connection with, the Program Agreements, whether now existing or hereafter arising; (b) any and all sums paid by Buyer or on behalf of Buyer in order to preserve
any Purchased Mortgage Loan or its interest therein; (c) in the event of any proceeding for the collection or enforcement of any of Seller’s indebtedness, obligations or liabilities referred to in clause (a), the reasonable expenses of
retaking, holding, collecting, preparing for sale, selling or otherwise disposing of or realizing on any Purchased Mortgage Loan, or of any exercise by Buyer of its rights under the Program Agreements, including without limitation, reasonable
attorneys’ fees and disbursements and court costs; and (d) all of Seller’s indemnity obligations to Buyer or Custodian or both pursuant to the Program Agreements. 
  
 “PBGC” means the Pension Benefit Guaranty Corporation or any entity succeeding to any or all of its
functions under ERISA. 
  
 “Person” means an
individual, partnership, corporation (including a business trust), limited liability company, unlimited liability company, join stock company, trust, unincorporated association, joint venture or other entity, or a government or any political
subdivision or agency thereof. 
  
 “Plan” means
an employee benefit or other plan established or maintained by any Seller or any ERISA Affiliate and covered by Title IV of ERISA, other than a Multiemployer Plan. 
  
 “Post Default Rate” mean an annual rate of interest equal to the Pricing Rate plus 2%. 
  
 “Price Differential” means with respect to any Transaction
as of any date of determination, an amount equal to the product of (A) the Pricing Rate for such Transaction and 

  

 -12- 

 
(B) the Purchase Price for such Transaction, calculated daily on the basis of a 360-day year for the actual number of days during the period commencing on
(and including) the Purchase Date for such Transaction and ending on (but excluding) the Repurchase Date. 
  
 “Price Differential Payment Date” means with respect to a Purchased Mortgage Loan, the 10th day of the month following the related Purchase Date and each succeeding 10th day of the month thereafter; provided that with respect to such Purchased Mortgage Loan, the final Price Differential Payment Date shall be the related
Repurchase Date; and, provided, further, that if any such day is not a Business Day, the Price Differential Payment Date shall be the next succeeding Business Day. 
  
 “Pricing Rate” means LIBOR plus: 
  
 (a) 1.25% with respect to Transactions the subject of which are Conforming Mortgage Loans or Alt-A Mortgage
Loans (other than Aged Loans, Wet-Ink Mortgage Loans or Non-Performing Mortgage Loans); 
  
 (b) 1.25% with respect to Transactions the subject of which are Sub-Prime Mortgage Loans or Second Lien Mortgage Loans (other than Aged
Loans, Wet-Ink Mortgage Loans or Non-Performing Mortgage Loans); 
  
 (c) 1.50% with respect to Transactions the subject of which are Wet-Ink Mortgage Loans; and 
  
 (d) 1.25% with respect to Transactions the subject of which are Aged Loans which have been held by the Custodian for the benefit of Buyer
(in its capacity as Buyer hereunder or as a secured lender) for a period of greater than 90 days but no greater than 120 days (other than Non-Performing Mortgage Loans); 
  
 (e) 1.375% with respect to Transactions the subject of which are Aged Loans which have been held by the
Custodian for the benefit of Buyer (in its capacity as Buyer hereunder or as a secured lender) for a period of greater than 120 days but no greater than 150 days (other than Non-Performing Mortgage Loans); 
  
 (f) 1.50% with respect to Transactions the subject of which
are Aged Loans which have been held by the Custodian for the benefit of Buyer (in its capacity as Buyer hereunder or as a secured lender) for a period of greater than 150 days but no greater than 180 days; and 
  
 (g) 1.50% with respect to Transactions the subject of which
are Non-Performing Mortgage Loans. 
  
 The Pricing Rate shall
change in accordance with LIBOR, as provided in Section 5(a). 
  
 “Principal” has the meaning given to it in Annex I. 
  

 -13- 

 “Program Agreements” means, collectively, the Servicing Agreement, the Servicer Notice,
the Custodial Agreement, this Agreement, the Electronic Tracking Agreement, if entered into and, with respect to each Purchased Mortgage Loan, a Purchase Confirmation. 
  
 “Property” means any right or interest in or to property of any kind whatsoever, whether real, personal or
mixed and whether tangible or intangible. 
  
 “Purchase
Confirmation” means a confirmation of a Transaction, in the form attached as Exhibit B hereto. 
  
 “Purchase Date” means the date on which Purchased Mortgage Loans are to be transferred by Seller to Buyer. 
  
 “Purchase Price” means (i) on the Purchase Date, the price
at which each Purchased Mortgage Loan is transferred by Seller to Buyer, which shall mean with respect to each Mortgage Loan, an amount not to exceed: 
  
 (A) with respect to each Conforming Mortgage Loan and Alt-A Mortgage Loan, an amount equal to the lesser of (1) 98% of the Market Value of
such Mortgage Loan and (2) the outstanding principal balance of such Mortgage Loan; 
  
 (B) with respect to each Subprime Mortgage Loan and Second Lien Mortgage Loan, an amount equal to the lesser of (1) 97% of the Market
Value of such Mortgage Loan and (2) the outstanding principal balance of such Mortgage Loan; 
  
 (C) with respect to each Aged Loan which has been held by the Custodian for the benefit of Buyer (in its capacity as Buyer hereunder or as
a secured lender) for a period of greater than 90 days but no greater than 120 days, an amount equal to the lesser of (1) 98% of the Market Value of such Mortgage Loan and (2) 95% of the outstanding principal balance of such Mortgage Loan;

  
 (D) with respect to each Aged Loan which has
been held by the Custodian for the benefit of Buyer (in its capacity as Buyer hereunder or as a secured lender) for a period of greater than 120 days but no greater than 150 days, an amount equal to the lesser of (1) 98% of the Market Value of such
Mortgage Loan and (2) 90% of the outstanding principal balance of such Mortgage Loan; 
  
 (E) with respect to each Aged Loan which has been held by the Custodian for the benefit of Buyer (in its capacity as Buyer hereunder or as
a secured lender) for a period of greater than 150 days but no greater than 180 days, an amount equal to the lesser of (1) 98% of the Market Value of such Mortgage Loan and (2) 85% of the outstanding principal balance of such Mortgage Loan;

  
 (F) with respect to each Non-Performing
Mortgage Loan, an amount equal to the lesser of (1) 98% of the Market Value of such Mortgage Loan and (2) 50% of the outstanding principal balance of such Mortgage Loan; 
  

 -14- 

 (G) with respect to Transactions the subject of which are Exception Mortgage Loans, a
percentage to be determined by Buyer in its sole discretion; and 
  
 and (ii) thereafter, except where Buyer and Seller agree otherwise, such price decreased by the amount of any cash applied to reduce Seller’s obligations under clause (ii) of Section 4(b) hereof. 
  
 “Purchased Mortgage Loans” means the Mortgage Loans (and the
related Repurchase Assets) transferred by Seller to Buyer in a Transaction hereunder and listed on the related Mortgage Loan Schedule attached to the related Transaction Request. 
  
 “Qualified Insurer” means a mortgage guaranty insurance company duly authorized and licensed where required
by law to transact mortgage guaranty insurance business and approved as an insurer by Fannie Mae or Freddie Mac. 
  
 “Qualified Originator” means an originator of Mortgage Loans which conform to the Underwriting Guidelines. 
  
 “Records” means all instruments, agreements and other books,
records, and reports and data generated by other media for the storage of information maintained by Seller, or any other person or entity with respect to a Purchased Mortgage Loan. Records shall include the Mortgage Notes, any Mortgages, the
Mortgage Files and any other instruments necessary to document or service a Mortgage Loan. 
  
 “REO Property” shall mean real property acquired by Seller, including a Mortgaged Property acquired through foreclosure of a Mortgage Loan or by deed in lieu of such foreclosure. 
  
 “Reporting Date” means the 5th Business Day of each month. 
  
 “Repurchase Assets” has the meaning assigned thereto in Section 8 hereof. 
  
 “Repurchase Date” means the earlier of (i) the Termination Date, (ii) the date set forth in the applicable
Purchase Confirmation, (iii) the date determined by application of Section 15 hereof or (iv) the date identified to Buyer by Seller as the date that the related Mortgage Loan is to be sold pursuant to a Take-out Commitment. 
  
 “Repurchase Price” means the price at which Purchased
Mortgage Loans are to be transferred from Buyer to Seller upon termination of a Transaction, which will be determined in each case (including Transactions terminable upon demand) as the sum of the Purchase Price and the accrued but unpaid Price
Differential as of the date of such determination. 
  
 “Request for Certification” means a notice sent to the Custodian reflecting the sale of one or more Purchased Mortgage Loans to Buyer hereunder. 
  
 “Requirement of Law” means, with respect to any Person, any law, treaty, rule or regulation or
determination of an arbitrator, a court or other governmental authority, applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject. 
  

 -15- 

 “Responsible Officer” means, as to any Person, the chief executive officer or, with
respect to financial matters, the chief financial officer, controller or treasurer of such Person. 
  
 “S&P” means Standard & Poor’s Ratings Services, or any successor thereto. 
  
 “SEC” means the Securities and Exchange Commission, or any
successor thereto. 
  
 “Second Lien Mortgage
Loan” means any Mortgage Loan which is a second lien on the related Mortgaged Property. 
  
 “Seller” means WMC Mortgage Corp. or its permitted successors and assigns. 
  
 “Servicer” means WMC Mortgage Corp., Calmco, Fairbanks Capital Corp. or any other servicer approved by
Buyer in its sole discretion. 
  
 “Servicer
Notice” means the notice acknowledged by the Servicer substantially in the form of Exhibit O hereto. 
  
 “Servicing Agreement” means the Collection Services Agreement dated as of March 8, 2000, between Seller and Servicer as the same may be
amended from time to time. 
  
 “Servicing File”
means, with respect to each Mortgage Loan, the file retained by the Servicer consisting of copies of all documents in the Mortgage File, and originals of all other documents with respect to the Mortgage Loan. 
  
 “Settlement Agent” means, with respect to any Transaction
the subject of which is a Wet-Ink Mortgage Loan, the entity approved by Buyer, in its sole good-faith discretion, which may be a title company, escrow company or attorney in accordance with local law and practice in the jurisdiction where the
related Wet-Ink Mortgage Loan is being originated. A Settlement Agent is deemed approved unless Buyer notifies Seller otherwise at any time electronically or in writing. For purposes of this definition, and the places in which this definition is
used throughout this Agreement, each branch of a national company is considered to be a separate Settlement Agent. 
  
 “SIPA” means the Securities Investor Protection Act of 1970, as amended from time to time. 
  
 “Subsidiary” means, with respect to any Person, any
corporation, partnership or other entity of which at least a majority of the securities or other ownership interests having by the terms thereof ordinary voting power to elect a majority of the board of directors or other persons performing similar
functions of such corporation, partnership or other entity (irrespective of whether or not at the time securities or other ownership interests of any other class or classes of such corporation, partnership or other entity shall have or might have
voting power by reason of the happening of any contingency) is at the time directly or indirectly owned or controlled by such Person or one or more Subsidiaries of such Person or by such Person and one or more Subsidiaries of such Person.

  

 -16- 

 “Sub-Prime Mortgage Loan” means a Mortgage Loan which originated in accordance with the
criteria established or agreed to by Buyer for sub-prime mortgage loans, as determined by Buyer in its sole discretion. 
  
 “Takeout Commitment” means a commitment of Seller to either (a) sell one or more Mortgage Loans to a Takeout Investor or (b) (i) swap one
or more Mortgage Loans with a Takeout Investor that is an Agency for an Agency Security, and (ii) sell the related Agency Security to a Takeout Investor, and in each case, the corresponding Takeout Investor’s commitment back to Seller to
effectuate any of the foregoing, as applicable. With respect to any Takeout Commitment with an Agency, the applicable agency documents list Buyer as sole subscriber. 
  
 “Takeout Investor” means (i) an Agency or (ii) other institution which has made a Takeout Commitment and
has been approved by Buyer. 
  
 “Termination
Date” means the earlier of (a) August 16, 2002, (b) the date of the occurrence of an Event of Default unless waived by Buyer in writing, or (c) such other date as provided in Section 21(b) hereof. 
  
 “Test Period” means any period of a calendar quarter.

  
 “Transaction Request” means a request from
Seller to Buyer, in the form attached as Exhibit A hereto, to enter into a Transaction. 
  
 “Trust Receipt and Certification” means, with respect to any Transaction as of any date, a receipt and certification in the form attached as an exhibit to the Custodial Agreement. 
  
 “Underwriting Guidelines” means the standards, procedures
(including, without limitation, procedures permitting exceptions to such Underwriting Guidelines) and guidelines of Seller for underwriting and acquiring Mortgage Loans, which are set forth in written policies and procedures, a copy of which is
attached hereto as Exhibit G. 
  
 “Uniform
Commercial Code” means the Uniform Commercial Code as in effect from time to time in the State of New York or the Uniform Commercial Code as in effect from time to time in the applicable jurisdiction. 
  
 “VA” means the U.S. Department of Veterans Affairs, an
agency of the United States of America, or any successor thereto including the Secretary of Veterans Affairs. 
  
 “VA Approved Lender” means a lender which is approved by the VA to act as a lender in connection with the origination of VA Loans.

  

 -17- 

 “VA Loan” means a Mortgage Loan which is subject of a VA Loan Guaranty Certificate as
evidenced by a VA Loan Guaranty Certificate, or a Mortgage Loan which is a vendor loan sold by the VA. 
  
 “VA Loan Guaranty Certificate” means the obligation of the United States to pay a specific percentage of a Mortgage Loan (subject to a
maximum amount) upon default of the Mortgagor pursuant to the Servicemen’s Readjustment Act, as amended. 
  
 “Wet Ink Mortgage Loan” means a Purchased Mortgage Loan which Seller is selling to Buyer simultaneously with the origination thereof and
for which the Mortgage File has not yet been delivered to the Custodian. 
  
 “Wet-Ink Procedures” means, the procedures for funding Wet-Ink Mortgage Loans, as set forth on Exhibit L hereto. 
  
 3. Program; Initiation of Transactions 
  
 a. From time to time, Buyer will purchase from Seller certain Mortgage Loans that have been either originated by Seller or
purchased by Seller from other originators, subject to the terms and condition of this Agreement. All Purchased Mortgage Loans shall exceed or meet the Underwriting Guidelines, with exceptions only in accordance with the procedures for exceptions as
set forth in the Underwriting Guidelines and shall be serviced by Servicer. 
  
 b. The aggregate Purchase Price of Purchased Mortgage Loans subject to outstanding Transactions shall not exceed the Maximum Aggregate Purchase Price. 
  
 c. With respect to each purchase of Mortgage Loans which are not Wet-Ink Mortgage Loans, Seller shall give Buyer and
Custodian at least 1 Business Day’s prior notice of any proposed Purchase Date (the date on which such notice is given, the “Notice Date”), provided, that if Seller is delivering 25 or fewer Mortgage Loans on a Purchase Date,
the notice shall be delivered on or before 12:00 p.m. Eastern Time on the Purchase Date. With respect to Wet-Ink Mortgage Loans, Seller shall deliver notice of any proposed purchase on or before 3:00 p.m. Eastern Time on the Purchase Date. On the
Notice Date, Seller shall (i) request that Buyer enter into a Transaction by furnishing to Buyer a Transaction Request, (ii) deliver to Buyer and Custodian a Mortgage Loan Schedule and Computer Tape and (iii) deliver to Custodian a Request for
Certification and each Mortgage File subject to such Transaction; provided that with respect to each Wet-Ink Mortgage Loan, Seller shall deliver the Wet-Ink Mortgage File to Buyer and otherwise comply with the procedures set forth in Exhibit
L hereto. 
  
 d. With respect to each Exception Mortgage
Loan, upon receipt of the Transaction Request, Buyer shall, consistent with this Agreement, specify the specific terms for such proposed Transaction, including the Purchase Price, the Pricing Rate, the Market Value and the Repurchase Date in respect
of such Transaction. The terms thereof shall be set forth in the Purchase Confirmation to be delivered to Seller on or prior to the Purchase Date. 
  

 -18- 

 e. With respect to each Exception Mortgage Loan, the Purchase Confirmation, together with this Agreement,
shall constitute conclusive evidence of the terms agreed between Buyer and Seller with respect to the Transaction to which the Purchase Confirmation relates, and Seller’s acceptance of the related proceeds shall constitute Seller’s
agreement to the terms of such Purchase Confirmation. It is the intention of the parties that, with respect to each Exception Mortgage Loan, each Purchase Confirmation shall not be separate from this Agreement but shall be made a part of this
Agreement. In the event of any conflict between this Agreement and, with respect to each Exception Mortgage Loan, a Purchase Confirmation, the terms of the Purchase Confirmation shall control with respect to the related Transaction. 
  
 f. Upon the satisfaction of the applicable conditions precedent set forth in
Section 10 hereof, all of Seller’s interest in the Repurchase Assets shall pass to Buyer on the Purchase Date, against the transfer of the Purchase Price to Seller. Upon transfer of the Mortgage Loans to Buyer as set forth in this Section and
until termination of any related Transactions as set forth in Sections 4 or 15 of this Agreement, ownership of each Mortgage Loan, including each document in the related Mortgage File, is vested in Buyer, provided that, prior to the recordation of
the assignments of mortgage by the Custodian as provided for in the Custodial Agreement, record title in the name of Seller to each Mortgage shall be retained by Seller in trust, for the benefit of Buyer, for the sole purpose of facilitating the
servicing and the supervision of the servicing of the Mortgage Loans. 
  
 g. By no later than 12:00 p.m., New York City time, with respect to each Wet-Ink Mortgage Loan that is a Purchased Mortgage Loan, on the eighth Business Day following the applicable Purchase Date, Seller shall deliver to the Custodian the
remaining documents in the Mortgage File. 
  
 4. Repurchase

  
 a. Except as set forth in Section 4(d) below, Seller
shall repurchase the related Purchased Mortgage Loans from Buyer on each related Repurchase Date. Such obligation to repurchase subsists without regard to any prior or intervening liquidation or foreclosure with respect to any Purchased Mortgage
Loan (but liquidation or foreclosure proceeds received by Buyer shall be applied to reduce the Repurchase Price for such Purchased Mortgage Loan on each Price Differential Payment Date except as otherwise provided herein). Seller is obligated to
repurchase and take physical possession of the Purchased Mortgage Loans from Buyer or its designee (including the Custodian) at Seller’s expense on the related Repurchase Date. 
  
 b. Provided that no Default shall have occurred and is continuing, and Buyer has received the related Repurchase Price,
Buyer agrees to release and reconvey 

  

 -19- 

 
its ownership interest hereunder in the Mortgage Files at the request of Seller upon repurchase of Purchased Mortgage Loans by Seller. With respect to
payments in full by the related Mortgagor of a Purchased Mortgage Loan, Seller agrees to (i) provide Buyer with a copy of a report from the related Servicer indicating that such Purchased Mortgage Loan has been paid in full, (ii) deposit into the
Collection Account, the Repurchase Price with respect to such Purchased Mortgage Loans and (iii) provide Buyer a notice specifying each Purchased Mortgage Loan that has been prepaid in full. Buyer agrees to release its ownership interest in
Purchased Mortgage Loans which have been prepaid in full after receipt of evidence of compliance with clauses (i) through (iii) of the immediately preceding sentence. 
  
 c. In the event that at any time any Purchased Mortgage Loan violates the applicable sublimit set forth in the definition of
Market Value, Buyer may, in its sole discretion, redesignate such Mortgage Loan as an Exception Mortgage Loan. If Buyer does not redesignate such Mortgage Loan as an Exception Mortgage Loan, and if Seller fails to notify Buyer within five (5)
Business Days of such violation that it does not want to receive a bid for such Mortgage Loan as described below, Buyer or an Affiliate of Buyer may offer to terminate the Seller’s right and obligation to repurchase such Mortgage Loan by paying
the Seller a price to be set by Buyer in its sole discretion (a “Bid”). Seller, within five (5) Business Days of receipt of Buyer’s bid (the “Violation Deadline”) may, in its sole discretion, either (i) accept
Buyer’s bid, terminating the Seller’s right and obligation to repurchase such Mortgage Loan under this Agreement or (ii) immediately repurchase the Mortgage Loan at the Repurchase Price in accordance with this Section 4. Seller shall pay
Buyer a bid fee equal to $210 (the “Bid Fee”) with respect to each Mortgage Loan on which Buyer or its Affiliate makes a Bid, regardless of whether the Bid is accepted and such Bid Fee shall be due and payable to Buyer by the
Violation Deadline. Any amount paid by Buyer or its Affiliate to terminate the Seller’s right to repurchase a Purchased Mortgage Loan if a Bid is accepted pursuant to this Section shall be applied by Buyer toward the outstanding Repurchase
Price for the applicable Transaction. 
  
 d. The Seller may
repurchase Purchased Mortgage Loans without penalty or premium on any date at the Repurchase Price. If the Seller intends to make such a repurchase, the Seller shall give at least one (1) Business Day’s prior written notice thereof to the
Buyer, designating the Purchased Mortgage Loans to be repurchased and the Repurchase Date. If such notice is given, the amount specified in such notice shall be due and payable on the date specified therein, and, on receipt, such amount shall be
applied to the Repurchase Price for the designated Purchased Mortgage Loans. 
  
 5. Price Differential. 
  
 a. On each Business Day that a Transaction is outstanding, the Pricing Rate shall be reset, and unless otherwise agreed, the accrued and unpaid Price Differential shall be settled in cash on each related Price Differential Payment 

  

 -20- 

 
Date. On the Price Differential Payment Date, Seller shall pay to Buyer the Price Differential for such Price Differential Payment Date, by wire transfer in
immediately available funds. 
  
 b. If Seller fails to pay all or
part of the Price Differential by 3:00 p.m. (New York time) on the related Price Differential Payment Date, Seller shall be obligated to pay to Buyer (in addition to, and together with, the amount of such Price Differential) interest on the
aggregate unpaid Price Differential at a rate per annum equal the Post Default Rate until the Price Differential is received in full by Buyer. 
  
 6. Margin Maintenance 
  
 a. If at any time the Market Value of any Purchased Mortgage Loan subject to a Transaction is less than Buyer’s Margin Amount for such Purchased
Mortgage Loan (a “Margin Deficit”), then Buyer may by notice to Seller require Seller to transfer to Buyer cash having an aggregate Market Value at least equal to the Margin Deficit (such requirement, a “Margin
Call”). 
  
 b. Notice delivered pursuant to Section 6(a)
may be given by any written means. If any notice is given before 10:00 a.m. New York time on a Business Day the related Margin Call shall be satisfied no later than 5:00 p.m. New York time on the next succeeding Business Day; if notice is given
after 10:00 a.m. New York time on a Business Day the related Margin Call shall be satisfied no later than 5:00 p.m. New York time on the second succeeding Business Day (the foregoing time requirements for satisfaction of a Margin Call are referred
to as the “Margin Deadlines”). The failure of Buyer, on any one or more occasions, to exercise its rights hereunder, shall not change or alter the terms and conditions to which this Agreement is subject or limit the right of
Buyer to do so at a later date. Seller and Buyer each agree that a failure or delay by Buyer to exercise its rights hereunder shall not limit or waive Buyer’s rights under this Agreement or otherwise existing by law or in any way create
additional rights for Seller. 
  
 7. Income Payments

  
 a. If Income is paid in respect of any Purchased Mortgage
Loan during the term of a Transaction, such Income shall be the property of Buyer. Notwithstanding the foregoing, and provided no Event of Default has occurred and is continuing, Buyer agrees that if a third-party Servicer is in place for any
Purchased Mortgage Loans, such Servicer shall deposit such Income to the Collection Account. Seller shall deposit all Income received in its capacity as Servicer of any Purchased Mortgage Loans to the Collection Account in accordance with Section
12(c) hereof. 
  
 b. Provided no Event of Default has occurred
and is continuing, on each Price Differential Payment Date, Seller shall remit to Buyer an amount equal to the Price Differential out of the interest portion of the Income paid in respect to 

  

 -21- 

 
the Purchased Mortgage Loans for the preceding month in accordance with Section 5 of this Agreement and Seller shall be entitled to retain any Income in
excess of the Price Differential as its property. 
  
 c. In the
event that an Event of Default has occurred and is continuing, notwithstanding any provision set forth herein, Seller shall remit to Buyer all Income received with respect to each Purchased Mortgage Loan on the related Price Differential Payment
Date or on such other date or dates as Buyer notifies Seller in writing. 
  
 d. Notwithstanding any provision to the contrary in this Section 7, within two (2) Business Days of receipt by Seller of any prepayment of principal in full, with respect to a Purchased Mortgage Loan, Seller shall
remit such amount to Buyer and Buyer shall immediately apply any such amount received by Buyer to reduce the amount of the Repurchase Price due upon termination of the related Transaction. 
  
 e. Notwithstanding anything to the contrary set forth herein (but subject to
the right of the Seller to retain excess Income as provided in Section 7(b) above), upon notice by Buyer to Seller, Seller shall remit to Buyer all collections received by Servicer or Seller on the Purchased Mortgage Loans in accordance with
Buyer’s directions no later than the day on which aggregate collections of principal and interest (excluding principal prepayments) on the Purchased Mortgaged Loans reaches an amount to be indicated by Buyer in its sole discretion. 

 
 8. Security Interest 
  
 Although the parties intend that all Transactions hereunder be sales and
purchases and not loans, in the event any such Transactions are deemed to be loans, Seller hereby pledges to Buyer as security for the performance by Seller of its Obligations and hereby grants, assigns and pledges to Buyer a fully perfected first
priority security interest in the Purchased Mortgage Loans, the Records, and all related servicing rights, the Program Agreements (to the extent such Program Agreements and Seller’s right thereunder relate to the Purchased Mortgage Loans), any
related Takeout Commitments, Property, all insurance policies and insurance proceeds relating to any Mortgage Loan or the related Mortgaged Property, including but not limited to any payments or proceeds under any related primary insurance, hazard
insurance and FHA Mortgage Insurance Contracts and VA Loan Guarantee Certificates (if any), Income, the Collection Account, Interest Rate Protection Agreements, accounts (including any interest of Seller in escrow accounts) and any other contract
rights, accounts, payments, rights to payment (including payments of interest or finance charges) general intangibles and other assets relating to the Purchased Mortgage Loans (including, without limitation, any other accounts) or any interest in
the Purchased Mortgage Loans, the servicing of the Purchased Mortgage Loans, and any proceeds (including the related securitization proceeds) and distributions with respect to any of the foregoing and any other property, rights, title or interests
as are specified on a Request for Certification and/or Trust Receipt and Certification, in all instances, whether now owned or hereafter acquired, now existing or hereafter created (collectively, the “Repurchase Assets”).

  

 -22- 

 9. Payment and Transfer 
  
 Unless otherwise mutually agreed in writing, all transfers of funds to be made by Seller hereunder shall be made in Dollars,
in immediately available funds, without deduction, set-off or counterclaim, to Buyer at the following account maintained by Buyer: Account No. 00-410-341, for the account of CSFB Buyer/WMC Seller – Inbound Account, Deutsche Bank, ABA No. 021
001 033. Seller acknowledges that it has no rights of withdrawal from the foregoing account. All Purchased Mortgage Loans transferred by Seller to Buyer shall be in suitable form for transfer or shall be accompanied by duly executed instruments of
transfer or assignment in blank and such other documentation as Buyer may reasonably request. All Purchased Mortgage Loans shall be evidenced by a Trust Receipt and Certification. Any Repurchase Price received by Buyer after 2:00 p.m. New York City
time shall be deemed received on the next succeeding Business Day. 
  
 10. Conditions Precedent 
  
 a. Initial
Transaction. As conditions precedent to the initial Transaction, Buyer shall have received on or before the day of such initial Transaction the following, in form and substance satisfactory to Buyer and duly executed by Seller and each other
party thereto: 
  
 (1) Program Agreements.
The Program Agreements (including a Custodial Agreement in a form acceptable to Buyer) duly executed and delivered by the parties thereto and being in full force and effect, free of any modification, breach or waiver. 
  
 (2) Security Interest. Evidence that all other
actions necessary or, in the opinion of Buyer, desirable to perfect and protect Buyer’s interest in the Purchased Mortgage Loans and other Repurchase Assets have been taken, including, without limitation, duly executed and filed Uniform
Commercial Code financing statements on Form UCC-1. 
  
 (3) Organizational Documents. A certified copy of Seller’s charter, bylaws and corporate resolutions approving the Program Agreements and transactions thereunder (either specifically or by general resolution) and all documents
evidencing other necessary corporate action or governmental approvals as may be required in connection with the Program Agreements. 
  
 (4) Good Standing Certificate. A certified copy of a good standing certificate of Seller from its jurisdiction of incorporation,
dated as of no earlier than the date 10 Business Days prior to the Effective Date with respect to the initial Transaction hereunder. 
  
 (5) Incumbency Certificate. An incumbency certificate of the corporate secretary of Seller, certifying the names, true signatures
and titles of the representatives duly authorized to request Transactions hereunder and to execute the Program Agreements. 
  

 -23- 

 (6) Opinion of Counsel. An opinion of Seller’s counsel, in form and substance
substantially as set forth in Exhibit G attached hereto. 
  
 (7) Underwriting Guidelines. A true and correct copy of the Underwriting Guidelines certified by an officer of Seller. 
  

(8) Fees. Payment of any fees due to Buyer hereunder. 
  
 b. All Transactions. The obligation of Buyer to enter into each Transaction pursuant to this Agreement is subject to
the following conditions precedent: 
  
 (1)
Due Diligence Review. Without limiting the generality of Section 34 hereof, Buyer shall have completed, to its good-faith satisfaction, its due diligence review of the Mortgage Loans and Seller, and the Servicer. 
  
 (2) Required Documents. 
  
 (A) With respect to each Purchased Mortgage Loan which is
not a Wet-Ink Mortgage Loan, the Mortgage File has been delivered to the Custodian (i) with respect to any purchase of 25 or fewer Mortgage Loans on a single Purchase Date, on or prior to 3 p.m. (Eastern Time) on the Purchase Date, and (ii) with
respect to any purchase of 26 or more Mortgage Loans on a single Purchase Date, at least one (1) Business Day prior to the Purchase Date. 
  
 (B) With respect to each Wet Ink Mortgage Loan, the information required to be delivered pursuant to the Wet-Ink Procedures has been
delivered to Buyer by 3 p.m. (Eastern time) on the Purchase Date. 
  
 (3) Transaction Documents. Buyer or its designee shall have received on or before the day of such Transaction (unless otherwise specified in this Agreement) the following, in form and substance satisfactory to
Buyer in good-faith and (if applicable) duly executed: 
  
 (A) A Transaction Request delivered pursuant to Section 3(c) hereof. 
  
 (B) The Request for Certification and the related Mortgage Loan Schedule and Exception Report, and with respect to the initial Transaction, the Trust Receipt, each as defined in the Custodial Agreement. 
  
 (C) Such certificates, opinions of counsel or other
documents as Buyer may reasonably request. 
  
 (4) No Default. No Default or Event of Default shall have occurred and be continuing. 
  
 (5) Requirements of Law. Buyer shall not have determined that the introduction of or a change in any requirement of law or in the
interpretation or administration of any requirement of law applicable to Buyer has 

  

 -24- 

 
made it unlawful, and no Governmental Authority shall have asserted that it is unlawful, for Buyer to enter into Transactions with a Pricing Rate based on
LIBOR. 
  
 (6) Representations and
Warranties. Both immediately prior to the related Transaction and also after giving effect thereto and to the intended use thereof, the representations and warranties made by Seller in each Program Agreement shall be true, correct and complete
on and as of such Purchase Date in all material respects with the same force and effect as if made on and as of such date (or, if any such representation or warranty is expressly stated to have been made as of a specific date, as of such specific
date). 
  
 (7) Electronic Tracking
Agreement. To the extent the Seller is selling Mortgage Loans which are registered on the MERS® System, an Electronic Tracking Agreement entered into, duly executed and delivered by the parties thereto and being in full force and effect,
free of any modification, breach or waiver. 
  
 (8) Wet-Ink Mortgage Loans. The Buyer shall not be required to purchase any Wet-Ink Mortgage Loans unless the required documents for each such Wet-Ink Mortgage Loan set forth in the Wet-Ink Procedures has been delivered to the Buyer.

  
 (9) Material Adverse Change. None of
the following shall have occurred and/or be continuing: 
  
 (A) Credit Suisse First Boston, New York Branch’s corporate bond rating as calculated by S&P or Moody’s has been lowered or downgraded below investment grade; 
  
 (B) an event or events shall have occurred in the good faith
determination of Buyer resulting in the effective absence of a “repo market” or comparable “lending market” for financing debt obligations secured by mortgage loans or securities or an event or events shall have occurred
resulting in Buyer not being able to finance Purchased Mortgage Loans through the “repo market” or “lending market” with traditional counterparties at rates which would have been reasonable prior to the occurrence of such event
or events; or 
  
 (C) an event or events shall
have occurred resulting in the effective absence of a “securities market” for securities backed by mortgage loans or an event or events shall have occurred resulting in Buyer not being able to sell securities backed by mortgage loans at
prices which would have been reasonable prior to such event or events; or 
  
 (D) there shall have occurred a material adverse change in the financial condition of Buyer which affects (or can reasonably be expected to affect) materially and adversely the ability of Buyer to fund its obligations
under this Agreement. 
  

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 11. Program 
  
 a. Seller shall reimburse Buyer for any of Buyer’s reasonable out-of-pocket costs, including due diligence review costs
and reasonable attorney’s fees, incurred by Buyer in determining the acceptability to Buyer of any Mortgage Loans. Seller shall also pay, or reimburse Buyer if Buyer shall pay, any termination fee, which may be due any servicer. Seller shall
pay the reasonable fees and expenses of Buyer’s counsel in connection with the initial establishment of this facility. Legal fees for any subsequent amendments to this Agreement or related documents shall be borne by Seller. Seller shall pay
any ongoing fees and expenses under the Custodial Agreement, bank fees as set forth in Exhibit N hereto or other ongoing fees and expenses due any other Program Agreement. 
  
 b. If Buyer determines that, due to the introduction of, any change in, or the compliance by Buyer with (i) any eurocurrency
reserve requirement or (ii) the interpretation of any law, regulation or any guideline or request from any central bank or other Governmental Authority (whether or not having the force of law), there shall be an increase in the cost to Buyer in
engaging in the present or any future Transactions, then Buyer shall provide the Seller with prompt notice when Buyer becomes aware of such increased costs and Seller agrees to pay to Buyer, from time to time, upon demand by Buyer (with a copy to
Custodian) the actual cost of additional amounts as specified by Buyer to compensate Buyer for such increased costs. 
  
 c. With respect to any Transaction, Buyer may conclusively rely upon, and shall incur no liability to Seller in acting upon, any request or other
communication that Buyer reasonably believes to have been given or made by a person authorized to enter into a Transaction on Seller’s behalf, whether or not such person is listed on the certificate delivered pursuant to Section 10(a)(5)
hereof. In each such case, Seller hereby waives the right to dispute Buyer’s record of the terms of the Purchase Confirmation, request or other communication absent manifest error. 
  
 d. Notwithstanding the assignment of the Program Agreements with respect to each Purchased Mortgage Loan to Buyer, Seller
agrees and covenants with Buyer (x) to enforce diligently Seller’s rights and remedies set forth in the Program Agreements and (y) to provide Buyer with prompt written notice of any Material Adverse Effect or event which, with the passage of
time, is reasonably likely to become a Material Adverse Effect, by any party to any Program Agreement and of which Seller is aware. 
  
 e. Any payments made by Seller to Buyer shall be free and clear of, and without deduction or withholding for, any taxes; provided, however, that if Seller
shall be required by law to deduct or withhold any taxes from any sums payable to Buyer, then Seller shall (A) make such deductions or withholdings and pay such amounts to the relevant authority in accordance with applicable law, (B) pay to Buyer
the sum that would have been payable had such deduction or 

  

 -26- 

 
withholding not been made, and (C) without duplication, at the time the Price Differential is paid, pay to Buyer all additional amounts as specified by Buyer
to preserve the after-tax yield Buyer would have received if such tax had not been imposed. 
  
 12. Servicing 
  
 a.
Seller, on Buyer’s behalf, shall contract with Servicer to, or if Seller is the Servicer, Seller shall, service the Mortgage Loans consistent with the degree of skill and care that Seller customarily requires with respect to similar Mortgage
Loans owned or managed by it, as is proper and prudent in the mortgage servicing business, and in accordance with all applicable industry standards. The Servicer shall be required to (i) comply with all applicable Federal, State and local laws and
regulations, (ii) maintain all state and federal licenses necessary for it to perform its servicing responsibilities hereunder and (iii) not impair the rights of Buyer in any Mortgage Loans or any payment thereunder. Buyer may terminate the
servicing of any Mortgage Loan with the then-existing servicer in accordance with Section 12(d) hereof. 
  
 b. Seller shall cause the Servicer to hold or cause to be held all escrow funds collected by Servicer with respect to any Purchased Mortgage Loans in
trust accounts and shall apply the same for the purposes for which such funds were collected. Seller shall cause the Servicer to deposit all collections received by Servicer on the Purchased Mortgage Loans in the Collection Account no later than
five (5) Business Days after receipt thereof; provided however that any amounts which are required to be remitted to Buyer shall be deposited in the Collection Account on or prior to the day on which such remittance is to occur. 
  
 c. Seller shall provide promptly to Buyer (i) a letter addressed to and
agreed to by the Servicer of the related Purchased Mortgage Loans, in form and substance reasonably satisfactory to Buyer, advising such Servicer of such matters as Buyer may reasonably request, and/or (ii) a recognition agreement executed by the
Servicer of the related Purchased Mortgage Loans, in form and substance reasonably satisfactory to Buyer, in which the Servicer recognizes the interest of Buyer and agrees to follow the instructions of Buyer with respect to the Purchased Mortgage
Loans and any related Income with respect thereto. 
  
 d. Upon
the occurrence of an event of default by Servicer under the Servicing Agreement, Buyer shall have the right to immediately terminate the Servicer’s right to service the Purchased Mortgage Loans under the Servicing Agreement without payment of
any penalty or termination fee. Seller and the Servicer shall cooperate in transferring the servicing of the Purchased Mortgage Loans to a successor servicer appointed by Buyer in its sole discretion. 
  
 e. If Seller should discover that, for any reason whatsoever, Seller or any
entity responsible to Seller by contract for managing or servicing any such Purchased Mortgage Loan has failed to perform fully Seller’s obligations under the Program Agreements or any of the obligations of such entities with respect to the
Purchased Mortgage Loans, Seller shall promptly notify Buyer. 
  

 -27- 

 13. Representations; Warranties and Covenants 
  
 a. Seller represents and warrants to Buyer as of the date hereof and as of
each Purchase Date for any Transaction that: 
  
 (1) Seller Existence. Seller has been duly organized and is validly existing as a corporation in good standing under the laws of the State of California. 
  
 (2) Licenses. Seller is duly licensed or is otherwise qualified in each jurisdiction in which it
transacts business for the business which it conducts and is not in default of any applicable federal, state or local laws, rules and regulations unless, in either instance, the failure to take such action is not reasonably likely (either
individually or in the aggregate) to cause a Material Adverse Effect. Seller has the requisite power and authority and legal right to originate mortgage loans (to the extent applicable) and to own, sell and grant a lien on all of its right, title
and interest in and to the Mortgage Loans, and to execute and deliver, engage in the transactions contemplated by, and perform and observe the terms and conditions of, this Agreement, each Program Agreement and any Transaction Request or Purchase
Confirmation. 
  
 (3) Power. Seller has
all requisite corporate or other power, and has all governmental licenses, authorizations, consents and approvals necessary to own its assets and carry on its business as now being or as proposed to be conducted, except where the lack of such
licenses, authorizations, consents and approvals would not be reasonably likely to have a Material Adverse Effect. 
  
 (4) Due Authorization. This Agreement, any Transaction Request, Purchase Confirmation and the Program Agreements have been (or, in
the case of Program Agreements or any Transaction Request or Purchase Confirmation not yet executed, will be) duly authorized, executed and delivered by Seller, all requisite corporate action having been taken, and each is valid, binding and
enforceable against Seller in accordance with its terms except as such enforcement may be affected by bankruptcy, by other insolvency laws, or by general principles of equity. 
  
 (5) Financial Statements. The Seller has heretofore furnished to Buyer a copy of (a) its consolidated
balance sheet and the consolidated balance sheets of its consolidated Subsidiaries for the fiscal year of the Seller ended December 31, 2000 and the related consolidated statements of income and retained earnings and of cash flows for the Seller and
its consolidated Subsidiaries for such fiscal year, setting forth in each case in comparative form the figures for the previous year, with the opinion thereon of KPMG LLP and (b) its consolidated balance sheet and the consolidated balance sheets of
its consolidated 

  

 -28- 

 
Subsidiaries for the quarterly fiscal periods of the Seller ended March 31, 2001, and June 30, 2001 and the related consolidated statements of income and
retained earnings and of cash flows for the Seller and its consolidated Subsidiaries for such quarterly fiscal periods, setting forth in each case in comparative form the figures for the previous year. All such financial statements are complete and
correct and fairly present, in all material respects, the consolidated financial condition of the Seller and its Subsidiaries and the consolidated results of their operations as at such dates and for such fiscal periods, all in accordance with GAAP
applied on a consistent basis. Since December 31, 2000, there has been no material adverse change in the consolidated business, operations or financial condition of the Seller and its consolidated Subsidiaries taken as a whole from that set forth in
said financial statements nor is Seller aware of any state of facts which (without notice or the lapse of time) is reasonably likely to result in any such material adverse change. The Seller has, on the date of the statements delivered pursuant to
this section (the “Statement Date”) no liabilities, direct or indirect, fixed or contingent, matured or unmatured, known or unknown, or liabilities for taxes, long-term leases or unusual forward or long-term commitments not
disclosed by, or reserved against in, said balance sheet and related statements, and at the present time there are no material unrealized or anticipated losses from any loans, advances or other commitments of Seller except as heretofore disclosed to
Buyer in writing. 
  
 (6) Event of
Default. There exists no “event of default” as described in Section 14(b) hereof, which default gives rise to a right to accelerate indebtedness of Seller as referenced in Section 14(b) hereof, under any mortgage, borrowing agreement
or other instrument or agreement pertaining to indebtedness for borrowed money by Seller or to the repurchase of mortgage loans or securities by Seller. 
  
 (7) Solvency. Seller is solvent and will not be rendered insolvent by the Transaction and, after giving effect to such Transaction,
will not be left with an unreasonably small amount of capital with which to engage in its business. Seller does not intend to incur, or believes that it has incurred, debts beyond its ability to pay such debts as they mature and is not contemplating
the commencement of insolvency, bankruptcy, liquidation or consolidation proceedings or the appointment of a receiver, liquidate, conservator, trustee or similar official in respect of such entity or any of its assets. The amount of consideration
being received by Seller upon the sale of the Purchased Mortgage Loans to Buyer constitutes reasonably equivalent value and fair consideration for such Purchased Mortgage Loans. Seller is not transferring any Purchased Mortgage Loans with any intent
to hinder, delay or defraud any of its creditors. 
  
 (8) No Conflicts. The execution, delivery and performance by Seller of this Agreement, any Transaction Request or Purchase Confirmation hereunder and the Program Agreements (i) do not conflict with any term or provision of the
certificate of incorporation or by-laws of Seller or any law, rule, regulation, order, judgment, writ, injunction or decree applicable to Seller of any court, regulatory body, administrative agency or governmental body having 

  

 -29- 

 
jurisdiction over Seller, which conflict is reasonably likely to have a Material Adverse Effect and (ii) will not result in any violation of any mortgage,
instrument, agreement or repurchase agreement to which Seller is a party. 
  
 (9) True and Complete Disclosure. All information, reports, exhibits, schedules, financial statements or certificates of Seller, any Affiliate thereof or any of their officers furnished or to be furnished to
Buyer in connection with the initial or any ongoing due diligence of Seller, or any Affiliate or officer thereof, or the negotiation, preparation, or delivery of the Program Agreements are true and complete in all material respects and do not omit
to disclose any material facts necessary to make the statements herein or therein, in light of the circumstances in which they are made, not misleading. 
  
 (10) Approvals. No consent, approval, authorization or order of, registration or filing with, or notice to any governmental
authority or court is required under applicable law in connection with the execution, delivery and performance by Seller of this Agreement, any Transaction Request, Purchase Confirmation and the Program Agreements. 
  
 (11) Litigation. There is no action, proceeding or
investigation pending with respect to which Seller has received service of process or, to the best of Seller’s knowledge threatened against it before any court, administrative agency or other tribunal (A) asserting the invalidity of this
Agreement, any Transaction Request, Purchase Confirmation or any Program Agreement, (B) seeking to prevent the consummation of any of the transactions contemplated by this Agreement, any Transaction Request, Purchase Confirmation or any Program
Agreement, (C) makes a claim in an amount greater than $1,000,000 or claims in an aggregate amount greater than $3,000,000, (D) which requires filing with the Securities and Exchange Commission in accordance with the 1934 Act or any rules thereunder
or (E) which might materially and adversely affect the validity of the Purchased Mortgage Loans or the performance by it of its obligations under, or the validity or enforceability of, this Agreement, any Transaction Request, Purchase Confirmation
or any Program Agreement. 
  
 (12)
Ownership. Upon the filing of the financing statements and delivery of the Mortgage Files to the Custodian and the Custodian’s receipt of the related Request for Certification, Buyer shall become the sole owner of the Repurchase Assets,
free and clear of all liens and encumbrances. 
  
 (13) Underwriting Guidelines. The Underwriting Guidelines provided to Buyer are the Underwriting Guidelines of Seller in effect as of the Effective Date. 
  
 (14) Taxes. WMC Finance Co. has filed all Federal income tax returns and all other material tax
returns that are required to be filed by it and has paid all taxes due pursuant to such returns or pursuant to any assessment received by it, except for any such taxes as are being appropriately contested in good faith 

  

 -30- 

 
by appropriate proceedings diligently conducted and with respect to which adequate reserves have been provided. The charges, accruals and reserves on the
books of WMC Finance Co. in respect of taxes and other governmental charges are, in the opinion of Seller, adequate. 
  
 (15) Investment Company. Neither the Seller nor any of its Subsidiaries is an “investment company”, or a company
“controlled” by an “investment company,” within the meaning of the Investment Company Act of 1940, as amended. 
  
 (16) Chief Executive Office; Jurisdiction of Organization. On the Effective Date, and during the four months immediately preceding
the Effective Date, Seller’s chief executive office, is, and has been, located at 6320 Canoga Ave., Woodland Hills, CA 91367. Seller has no trade name. During the preceding five years, Seller has not been known by or done business under any
other name, corporate or fictitious, other than Weyerhaeuser Mortgage Company and American Loan Centers, and has not filed or had filed against it any bankruptcy receivership or similar petitions nor has it made any assignments for the benefit of
creditors. 
  
 (17) Location of Books and
Records. The location where Seller keeps its books and records, including all computer tapes and records relating to the Repurchase Assets is its chief executive office. 
  
 (18) Consolidated Tangible Net Worth. On the Effective Date, Seller’s Consolidated Tangible Net
Worth is not less than $40 million. 
  
 (19)
ERISA. Each Plan to which Seller or its Subsidiaries make direct contributions, and, to the knowledge of Seller, each other Plan and each Multiemployer Plan, is in compliance in all material respects with, and has been administered in all
material respects in compliance with, the applicable provisions of ERISA, the Code and any other Federal or State law. 
  
 (20) Adverse Selection. Seller has not selected the Purchased Mortgage Loans in a manner so as to adversely affect Buyer’s
interests. 
  
 (21) Agreements. Neither
Seller nor any Subsidiary of Seller is a party to any agreement, instrument, or indenture or subject to any restriction materially and adversely effecting its business, operations, assets or financial condition, except as disclosed in the financial
statements described in Section 13(a)(5) hereof. Neither Seller nor any Subsidiary of Seller is in default in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any agreement, instrument, or
indenture which default could have a material adverse effect on the business, operations, properties, or financial condition of Seller as a whole. No holder of any outstanding indebtedness of Seller or of any of its Subsidiaries has given notice of
any asserted default thereunder. 
  

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 (22) Other Credit Facilities. Seller hereby represents and warrants that all
credit facilities of Seller which are in effect as of the Effective Date are listed on Exhibit K (the “Existing Credit Facilities”) hereto. 
  
 (23) Agency Approvals. With respect to each Agency Security and to the extent necessary, Seller is an
FHA Approved Mortgagee and a VA Approved Lender. Seller is also approved by Fannie Mae as an approved lender and Freddie Mac as an approved seller/servicer, and, to the extent necessary, approved by the Secretary of Housing and Urban Development
pursuant to Sections 203 and 211 of the National Housing Act. In each such case, Seller in good standing, with no event having occurred or Seller having any reason whatsoever to believe or suspect will occur prior to the issuance of the Agency
Security or the consummation of the Takeout Commitment, as the case may be, including, without limitation, a change in insurance coverage which would either make Seller unable to comply with the eligibility requirements for maintaining all such
applicable approvals or require notification to the relevant Agency or to the Department of Housing and Urban Development, FHA or VA. Seller has adequate financial standing, servicing facilities, procedures and experienced personnel necessary for
the sound servicing of mortgage loans of the same types as may from time to time constitute Mortgage Loans and in accordance with Accepted Servicing Practices. 
  

b. Upon discovery by Seller or Buyer of any breach of any of the representations, warranties or covenants set forth in this Agreement, the party
discovering such breach shall promptly give notice of such discovery to the others. Buyer has the right to require, in its unreviewable discretion, Seller to repurchase within 1 Business Day after receipt of notice from Buyer any Purchased Mortgage
Loan (i) which breaches one or more of the representations, warranties or covenants listed in Section 13(b) or Section 13(c) preceding or (ii) which is determined by Buyer, in its reasonable discretion, to be unacceptable for inclusion in a
securitization transaction. 
  
 c. With respect to every
Purchased Mortgage Loan, Seller represents and warrants to Buyer as of the applicable Purchase Date for any Transaction and each date thereafter that each representation and warranty set forth on Schedule I is true and correct in all material
respects. 
  
 d. The representations and warranties set forth in
this Agreement shall survive transfer of the Purchased Mortgage Loans to Buyer and shall continue for so long as the Purchased Mortgage Loans are subject to this Agreement. 
  
 e. Seller covenants with Buyer that, during the term of this facility: 
  
 (1) Consolidated Tangible Net Worth. For each fiscal
quarter commencing after December 31, 2000, Seller shall maintain a Consolidated Tangible Net Worth of at least $40,000,000. 
  

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 (2) Non-Warehouse Debt to Consolidated Tangible Net Worth Ratio. For each fiscal
quarter commencing after December 31, 2000, Seller’s ratio of Indebtedness (excluding warehouse indebtedness as set forth on the Seller’s financial statements) to Consolidated Tangible Net Worth shall not exceed 2:1. 
  
 (3) Total Indebtedness to Consolidated Tangible Net Worth
Ratio. For each fiscal quarter commencing after December 31, 2000, Seller’s leverage ratio of total Indebtedness to Consolidated Tangible Net Worth shall not exceed 12:1. 
  
 (4) Interest Coverage Ratio. For each fiscal quarter commencing after June 30, 2001, the ratio of
Seller’s Consolidated EBITDA to Seller’s Consolidated Interest Expenses shall not be less than 1.05:1. 
  
 (5) Maintenance of Profitability. For each fiscal quarter commencing after June 30, 2001, Net Income of Seller (excluding for
purposes of this covenant, any amounts with respect to WMC Residco Inc.) before income taxes and distributions shall not be less than $1.00. 
  
 (6) Litigation. Seller will promptly, and in any event within ten (10) days after service of process on any of the following, give
to Buyer notice of all litigation, actions, suits, arbitrations, investigations (including, without limitation, any of the foregoing which are threatened or pending) or other legal or arbitrable proceedings affecting Seller or any of its
Subsidiaries or affecting any of the Property of any of them before any Governmental Authority that (i) questions or challenges the validity or enforceability of any of the Program Agreements or any action to be taken in connection with the
transactions contemplated hereby, (ii) makes a claim in an amount greater than $1,000,000 or claims in an aggregate amount greater than $3,000,000, (iii) which, individually or in the aggregate, if adversely determined, could be reasonably likely to
have a Material Adverse Effect, or (iv) requires filing with the Office of the Comptroller of the Currency in accordance with its regulations. 
  
 (7) Prohibition of Fundamental Changes. Seller shall not enter into any transaction of merger or consolidation or amalgamation, or
liquidate, wind up or dissolve itself (or suffer any liquidation, winding up or dissolution) or sell all or substantially all of its assets; provided, that Seller may merge or consolidate with (a) any wholly owned subsidiary of Seller, or (b) any
other Person if Seller is the surviving corporation; and provided further, that if after giving effect thereto, no Default would exist hereunder. 
  
 (8) Servicer. Seller shall not cause the Mortgage Loans to be serviced by any servicer other than a servicer expressly approved in
writing by Buyer, which approval shall be deemed granted by Buyer with respect to Seller with the execution of this Agreement. 
  

 -33- 

 (9) Insurance. Seller, or its Affiliates, will continue to maintain, for Seller
and its subsidiaries, insurance coverage with respect to employee dishonesty, forgery or alteration, theft, disappearance and destruction, robbery and safe burglary, property (other than money and securities) and computer fraud in an aggregate
amount of at least $5 million. 
  
 (10) No
Adverse Claims. Seller warrants and will defend, and shall cause any Servicer to defend, the right, title and interest of Buyer in and to all Repurchase Assets against all adverse claims and demands. 
  
 (11) Assignment. Except as permitted herein, neither
Seller nor any Servicer shall sell, assign, transfer or otherwise dispose of, or grant any option with respect to, or pledge, hypothecate or grant a security interest in or lien on or otherwise encumber (except pursuant to the Program Agreements or
a Takeout Commitment), any of the Purchased Mortgage Loans or any interest therein, provided that this Section shall not prevent any transfer of Purchased Mortgage Loans in accordance with the Program Agreements. 
  
 (12) Security Interest. Seller shall do all things
necessary to preserve the Repurchase Assets so that they remain subject to a first priority perfected security interest hereunder. Without limiting the foregoing, Seller will comply with all rules, regulations and other laws of any Governmental
Authority and cause the Repurchase Assets to comply with all applicable rules, regulations and other laws. Seller shall fully perform or cause to be performed when due all of its obligations under any Repurchase Assets or the Program Agreements.

  
 (13) Mortgage File. Seller shall
acquire, and Seller or Servicer of the Purchased Mortgage Loans shall build, maintain and have available, a complete file for each Purchased Mortgage Loan in accordance with lending and servicing industry custom and practice for assets similar to
the Purchased Mortgage Loans. Seller or the Servicer of the Purchased Mortgage Loans will maintain all such Records not in the possession of Custodian in good and complete condition and preserve them against loss in accordance with industry
practices for assets similar to the Purchased Mortgage Loans. 
  
 (14) Records. 
  
 a. Seller shall collect and maintain or cause to be collected and maintained all Records relating to the Purchased Mortgage Loans in accordance with industry custom and practice for assets similar to the Purchased Mortgage Loans, including
those maintained pursuant to the preceding subparagraph. To the extent in the Custodian’s possession, Seller will not allow any such papers, records or files that are an original or an only copy to leave Custodian’s possession, except for
individual items removed in connection with servicing a specific Mortgage Loan or as otherwise permitted herein or in the Custodial Agreement, in which event Seller will obtain or cause to be obtained a receipt from a financially responsible person
for any such paper, record or file. 
  

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 b. For so long as Buyer has an interest in or lien on any Purchased Mortgage Loan,
Seller will hold or cause to be held all related Records which have not been delivered to Custodian in trust for Buyer. Seller shall notify, or cause to be notified, every other party holding any such Records of the interests and liens granted
hereby. 
  
 c. Upon reasonable advance notice
from Custodian or Buyer, Seller shall (x) make any and all such Records available to Custodian or Buyer and permit Custodian or Buyer during normal business hours to examine any such Records, either by its own officers or employees, or by agents or
contractors, or both, and make copies of all or any portion thereof, and (y) permit Buyer or its authorized agents to discuss the affairs, finances and accounts of Seller with its chief operating officer and chief financial officer and to discuss
the affairs, finances and accounts of Seller with its independent certified public accountants. 
  
 (15) Books. Seller shall keep or cause to be kept in reasonable detail books and records of account of its assets and business and
shall clearly reflect therein the transfer of Purchased Mortgage Loans to Buyer. 
  
 (16) Approvals. Seller shall maintain all licenses, permits or other approvals necessary for Seller to conduct its business and to
perform its obligations under the Program Agreements, and Seller shall conduct its business in accordance with applicable law. 
  
 (17) Material Change in Business. Seller shall not make any material change in the nature of its business as carried on at the date
hereof. 
  
 (18) Underwriting Guidelines.
Without the prior written consent of Buyer, Seller shall not materially amend or otherwise modify the Underwriting Guidelines. Without limiting the foregoing, in the event that Seller makes any amendment or modification to the Underwriting
Guidelines, Seller shall promptly deliver to Buyer a complete copy of the amended or modified Underwriting Guidelines. 
  
 (19) Distributions. If an Event of Default has occurred and is occurring, Seller shall not pay any dividends with respect to any of
its capital stock or other equity interests in such entity, whether now or hereafter outstanding, or make any other distribution in respect thereof, either directly or indirectly, whether in cash or property or in obligations of Seller; provided,
however, that nothing contained herein shall restrict Seller’s right to declare and pay dividends or make distributions to WMC Finance Co. (A) for the purpose of compensating its officers and other employees; provided that so long as there
shall be an Event of Default in existence, such amount shall not exceed 

  

 -35- 

 
$1,500,000 during any consecutive twelve (12) month period (or that portion of such amount equal to the pro rata portion of such twelve (12) month period
during which such Event of Default shall exist and be continuing), or (B) for the purpose of paying that portion of taxes due and payable to WMC Finance Co. on account of the business activities of WMC Finance Co. and its consolidated Subsidiaries
reasonably allocable to the business activities of Seller and its consolidated Subsidiaries; 
  
 (20) Applicable Law. Seller shall comply with the requirements of all applicable laws, rules, regulations and orders of any
Governmental Authority except where any failure to so comply would not be reasonably likely to result in an Material Adverse Effect. 
  
 (21) Existence. Seller shall preserve and maintain its legal existence and all of its material rights, privileges, licenses and
franchises. 
  
 (22) Chief Executive Office;
Jurisdiction of Organization. Seller shall not move its chief executive office from the address referred to in Section 13(a)(16) or change its jurisdiction of organization from the jurisdiction referred to in Section 13(a)(16) unless it shall
have provided Buyer 30 days’ prior written notice of such change. 
  
 (23) Taxes. Seller shall pay and discharge all material taxes, assessments and governmental charges or levies imposed on it or on its income or profits or on any of its property prior to the date on which
penalties attach thereto, except for any such tax, assessment, charge or levy the payment of which is being contested in good faith and by proper proceedings and against which adequate reserves are being maintained. 
  
 (24) Transactions with Affiliates. Seller will not
enter into any transaction, including without limitation any purchase, sale, lease or exchange of property or the rendering of any service, with any Affiliate unless such transaction is (a) not prohibited under the Program Agreements, (b) in the
ordinary course of Seller’s business and (c) upon fair and reasonable terms no less favorable to Seller than it would obtain in a comparable arm’s length transaction with a Person which is not an Affiliate, or make a payment that is not
otherwise permitted by this Section to any Affiliate. 
  
 (25) Guarantees. Seller shall not create, incur, assume or suffer to exist any Guarantees, except (i) to the extent reflected in Seller’s financial statements or notes thereto and (ii) to the extent the aggregate Guarantees of
Seller do not exceed $2,000,000. 
  
 (26)
Hedging. Seller shall enter into Interest Rate Protection Agreements with respect to the Conforming Mortgage Loans, having terms with respect to protection against fluctuations in interest rates acceptable to Buyer in its sole discretion.

  

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 (27) Agency Approvals; Servicing. To the extent necessary, the Seller shall
maintain its status with Fannie Mae and Ginnie Mae as an approved lender and Freddie Mac as an approved seller/servicer, in each case in good standing. The Seller shall service all Purchased Mortgage Loans which are Committed Mortgage Loans in
accordance with the applicable Agency guide. Should Seller, for any reason, cease to possess all such applicable Agency Approvals to the extent necessary, or should notification to the relevant Agency or to HUD, FHA or VA be required, such Seller
shall so notify Buyer immediately in writing. Notwithstanding the preceding sentence, the Seller shall take all necessary action to maintain all of its applicable Agency Approvals at all times during the term of this Agreement and each outstanding
Transaction. 
  
 (28) Takeout Payments.
With respect to each Committed Mortgage Loan, the Seller shall arrange that all payments under the related Takeout Commitment shall be paid directly to the Buyer at the account set forth in Section 9 hereof, or to an account approved by the Buyer in
writing prior to such payment. With respect to any Agency Takeout Commitment, if applicable, (1) with respect to the wire transfer instructions as set forth in Freddie Mac Form 987 (Wire Transfer Authorization for a Cash Warehouse Delivery) such
wire transfer instructions are identical to Buyer’s wire instructions or the Buyer has approved such wire transfer instructions in writing in its sole discretion, or (2) the Payee Number set forth on Fannie Mae Form 1068 (Fixed-Rate,
Graduated-Payment, or Growing-Equity Mortgage Loan Schedule) or Fannie Mae Form 1069 (Adjustable-Rate Mortgage Loan Schedule), as applicable, is identical to the Payee Number that has been identified by Buyer in writing as Buyer’s Payee Number
or the Buyer has approved the related Payee Number in writing in its sole discretion; With respect to any Takeout Commitment with an Agency, the applicable agency documents list Buyer as sole subscriber unless subject to an intercreditor agreement
in form and substance acceptable to the Buyer. 
  
 (29) Mortgage Loan Purchase Agreement. Without the prior written consent of the Buyer, the Seller will not amend that certain Mortgage Loan Purchase Agreement, dated as of September 1, 1998 by and between the Seller and WMC Secured
Assets Corp. 
  
 14. Events of Default 
  
 Each of the following shall constitute an “Event of
Default” hereunder: 
  
 a. Payment Failure.
Failure of Seller to (i) make any payment of Price Differential or Repurchase Price or any other sum which has become due, on a Price Differential Payment Date or a Repurchase Date or otherwise, whether by acceleration or otherwise, under the terms
of this Agreement, any other warehouse and security agreement or any other document evidencing or securing indebtedness of Seller to Buyer or to any affiliate of Buyer, or (ii) cure any Margin Deficit pursuant to Section 6 hereof. 
  

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 b. Cross Default. (i) Seller or any of Seller’s Default Affiliates shall be in default under
(i) any one or more Indebtedness of Seller or of such Default Affiliate which has, in any one instance, or in the aggregate, an outstanding principal balance (or equivalent) in excess of $5,000,000, which default or defaults (1) involves the failure
to pay a matured obligation, or (2) permits the acceleration of the maturity of obligations by any other party to or beneficiary with respect to such Indebtedness, or (ii) any other contract to which Seller or such Default Affiliate is a party which
has, in any one instance, or in the aggregate, an outstanding principal balance (or equivalent) in excess of $5,000,000, which default (1) involves the failure to pay a matured obligation, or (2) permits the acceleration of the maturity of
obligations by any other party to or beneficiary of such contract. 
  
 c. Assignment. Assignment or attempted assignment by Seller of this Agreement or any rights hereunder without first obtaining the specific written consent of Buyer, or the granting by Seller of any security interest, lien or other
encumbrances on any Purchased Mortgage Loans to any person other than Buyer. 
  
 d. Insolvency. An Act of Insolvency shall have occurred with respect to Seller or any Affiliate. 
  
 e. Material Adverse Change. Any (i) material adverse change in the Property, business or financial condition of Seller or any of its Affiliates
shall occur, in each case as determined by Buyer in its sole good faith discretion, or (ii) other condition shall exist which, in Buyer’s sole good faith discretion, in the case of this clause (ii), constitutes a material impairment of
Seller’s ability to perform its obligations under this Agreement or any other Program Agreement. 
  
 f. Breach of Financial Representation or Covenant. A material breach by Seller of any of the representations, warranties or covenants set forth in
Sections 13(a)(1), 13(a)(6), 13(a)(7), 13(a)(18), 13(a)(22), 13(d)(1), 13(d)(2), 13(d)(3), 13(d)(4), 13(d)(5), 13(d)(7), 13(d)(17) or 13(d)(25) of this Agreement. 
  
 g. Breach of Non-Financial Representation or Covenant. A breach by Seller of any other material representation,
warranty or covenant set forth in this Agreement (and not otherwise specified in Section 14(f) above) which breach is not cured within ten (10) Business Days (other than the representations and warranties set forth in Schedule 1, which shall
be considered solely for the purpose of determining the Market Value and the obligation to repurchase such Mortgage Loan; unless (i) Seller shall have made any such representations and warranties with knowledge that they were materially false or
misleading at the time made or (ii) any such representations and warranties have been determined by Buyer to be materially false or misleading on a regular basis). 
  
 h. Change in Control. The occurrence of a Change in Control. 
  

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 i. Failure to Transfer. Seller fails to transfer the Purchased Mortgage Loans to Buyer on the
applicable Purchase Date (provided Buyer has tendered the related Purchase Price). 
  
 j. Judgment. A final judgment or judgments for the payment of money in excess of in any one instance, $1,000,000, or in an aggregate amount greater than $3,000,000 shall be rendered against the Seller or any of
its Affiliates by one or more courts, administrative tribunals or other bodies having jurisdiction and the same shall not be satisfied, discharged (or provision shall not be made for such discharge) or bonded, or a stay of execution thereof shall
not be procured, within 30 days from the date of entry thereof. 
  
 k. Government Action. Any Governmental Authority or any person, agency or entity acting or purporting to act under governmental authority shall have taken any action to condemn, seize or appropriate, or to assume custody or control
of, all or any substantial part of the Property of Seller, or any Affiliate, or shall have taken any action to displace the management of Seller or any Affiliate or to curtail its authority in the conduct of the business of Seller or any Affiliate,
or takes any action in the nature of enforcement to remove, limit or restrict the approval of Seller or Affiliate as an issuer, buyer or a seller/servicer of Mortgage Loans or securities backed thereby, and such action provided for in this Section
14(k) shall not have been discontinued or stayed within 30 days. 
  
 l. Inability to Perform. An officer of Seller shall admit its inability to, or its intention not to, perform any of Seller’s Obligations hereunder. 
  
 m. Security Interest. This Agreement shall for any reason cease to create a valid, first priority security interest
in any material portion of the Purchased Mortgage Loans or Repurchase Assets purported to be covered hereby. 
  
 n. Financial Statements. Seller’s audited annual financial statements or the notes thereto or other opinions or conclusions stated therein
shall be qualified or limited by reference to the status of Seller as a “going concern” or a reference of similar import. 
  
 An Event of Default shall be deemed to be continuing unless expressly waived by Buyer in writing. 
  
 15. Remedies Upon Default 
  
 In the event that an Event of Default shall have occurred: 
  
 a. Buyer may, at its option (which option shall be deemed to have been
exercised immediately upon the occurrence of an Act of Insolvency), declare an Event of Default to have occurred hereunder and, upon the exercise or deemed exercise of such option, the Repurchase Date for each Transaction hereunder shall, if it has
not already occurred, be deemed immediately to occur (except that, in the event that the Purchase Date for any Transaction has not yet occurred as of 

  

 -39- 

 
the date of such exercise or deemed exercise, such Transaction shall be deemed immediately canceled). Buyer shall (except upon the occurrence of an Act of
Insolvency) give notice to Seller of the exercise of such option as promptly as practicable. 
  
 b. If Buyer exercises or is deemed to have exercised the option referred to in subparagraph (a) of this Section, (i) Seller’s obligations in such Transactions to repurchase all Purchased Mortgage Loans at the
Repurchase Price therefor on the Repurchase Date determined in accordance with subparagraph (a) of this Section, shall thereupon become immediately due and payable, (ii) all Income paid after such exercise or deemed exercise shall be retained by
Buyer and applied to the aggregate unpaid Repurchase Prices and any other amounts owing by Seller hereunder as provided in Section 15(e) below, and (iii) Seller shall immediately deliver to Buyer any Purchased Mortgage Loans subject to such
Transactions then in Seller’s possession or control. 
  
 c.
Buyer also shall have the right to obtain physical possession, and to commence an action to obtain physical possession, of all files of Seller relating to the Repurchase Assets and all documents relating to the Repurchase Assets (including without
limitation, any legal, credit or servicing files with respect to the Repurchase Assets) which are then or may thereafter come in to the possession of Seller or any third party acting for Seller. To obtain physical possession of any Repurchase Assets
held by Custodian, Buyer shall present to Custodian a Trust Receipt and Certification. Buyer shall be entitled to specific performance of all agreements of Seller contained in this Agreement. 
  
 d. Buyer shall have the right to direct all servicers then servicing any
Purchased Mortgage Loans to segregate all amounts collected on account of such Purchased Mortgage Loans, hold them in trust for the sole and exclusive benefit of the Buyer, and remit such collections in accordance with the Buyer’s written
instructions, and if any such payments are received by Seller, Seller shall not commingle the amounts received with other funds of Seller and shall promptly pay them over to Buyer. Buyer shall also have the right to terminate any one or all of the
servicers then servicing any Purchased Mortgage Loans with or without cause; provided that if the Servicer is not Seller or an Affiliate of Seller, such Servicer may only be terminated for cause. In addition, Buyer shall have the right to
immediately sell the Purchased Mortgage Loans. Such disposition of Purchased Mortgage Loans may be, at Buyer’s option, on either a servicing-released or a servicing-retained basis. Buyer shall be entitled to place the Purchased Mortgage Loans
in a pool for issuance of mortgage-backed securities at the then-prevailing price for such securities and to sell such securities for such prevailing price in the open market. Buyer shall also be entitled to sell any or all of such Mortgage Loans
individually for the prevailing price. 
  
 e. Upon the happening
of one or more Events of Default, Buyer may apply any proceeds from the liquidation of (i) the Purchased Mortgage Loans to the 

  

 -40- 

 
Repurchase Prices hereunder or (ii) collateral financed under other facilities provided by Buyer to Seller in the following order of priority: 
  
 (1) the Repurchase Price with respect to the liquidated
Purchased Mortgage Loan, 
  
 (2) the Repurchase
Price with respect to any other Transactions outstanding hereunder, and all other amounts owed by Seller to Buyer hereunder, 
  
 (3) any amounts owed by Seller to Buyer under any other facilities or arrangements provided by Buyer to Seller; and 
  
 (4) any remaining amounts to Seller. 
  
 f. Seller shall be liable to Buyer for (i) the amount of all reasonable
legal or other expenses incurred in connection with or as a result of an Event of Default, (ii) damages in an amount equal to the cost (including all reasonable fees, expenses and commissions) of entering into replacement transactions and entering
into or terminating hedge transactions in connection with or as a result of an Event of Default, and (iii) any other loss, damage, cost or expense directly arising or resulting from the occurrence of an Event of Default in respect of a Transaction.

  
 g. To the extent permitted by applicable law, Seller shall be
liable to Buyer for interest at the Post-Default Rate on any past due amounts owing by Seller hereunder, from the date that the Event of Default occurs until such amounts are (i) paid in full by Seller or (ii) satisfied in full by the exercise of
Buyer’s rights hereunder. 
  
 h. Buyer shall have, in
addition to its rights hereunder, any rights otherwise available to it under any other agreement or applicable law. 
  
 i. Buyer may exercise one or more of the remedies available to Buyer immediately upon the occurrence of an Event of Default and, except to the extent
provided in subsections (a) and (d) of this Section, at any time thereafter without notice to Seller. All rights and remedies arising under this Agreement as amended from time to time hereunder are cumulative and not exclusive of any other rights or
remedies which Buyer may have. 
  
 j. Buyer may enforce its
rights and remedies hereunder without prior judicial process or hearing, and Seller hereby expressly waives any defenses Seller might otherwise have to require Buyer to enforce its rights by judicial process. Seller also waives any defense (other
than a defense of payment or performance) Seller might otherwise have arising from the use of nonjudicial process, enforcement and sale of all or any portion of the Repurchase Assets, or from any other election of remedies. Seller recognizes that
nonjudicial remedies are consistent with the usages of the trade, are responsive to commercial necessity and are the result of a bargain at arm’s length. 
  

 -41- 

 16. Reports 
  
 a. Notices. Seller shall furnish to Buyer (x) promptly, copies of any material and adverse notices (including,
without limitation, notices of defaults, breaches, potential defaults or potential breaches) and any material financial information that is not otherwise required to be provided by Seller hereunder which is given to Seller’s lenders, (y)
immediately, notice of the occurrence of any “Event of Default” hereunder or default or breach by Seller of any obligation under any Program Agreement or any material contracts or agreements of Seller or of any situation or the
occurrence or existence of any event or circumstance which Seller, with the passage of time, reasonably expects to develop into an “Event of Default” hereunder or such a default or breach and (z) the following: 
  
 (1) as soon as available and in any event within thirty (30)
calendar days after the end of each calendar month, the unaudited consolidated balance sheets of Seller and its consolidated Subsidiaries as at the end of such period and the related unaudited consolidated statements of income and retained earnings
and of cash flows for the Seller and its consolidated Subsidiaries for such period and the portion of the fiscal year through the end of such period, accompanied by a certificate of a Responsible Officer of Seller, which certificate shall state that
said consolidated financial statements fairly present in all material respects the consolidated financial condition and results of operations of Seller and its consolidated Subsidiaries in accordance with GAAP, consistently applied, as at the end
of, and for, such period (subject to normal year-end adjustments); 
  
 (2) as soon as available and in any event within ninety (90) days after the end of each fiscal year of Seller, the consolidated balance sheets of Seller and its consolidated Subsidiaries as at the end of such fiscal
year and the related consolidated statements of income and retained earnings and of cash flows for the Seller and its consolidated Subsidiaries for such year, setting forth in each case in comparative form the figures for the previous year,
accompanied by an opinion thereon of independent certified public accountants of recognized national standing, which opinion and the scope of audit shall be acceptable to Buyer in its good faith discretion, shall have no “going concern”
qualification and shall state that said consolidated financial statements fairly present the consolidated financial condition and results of operations of Seller and its respective consolidated Subsidiaries as at the end of, and for, such fiscal
year in accordance with GAAP; 
  
 (3) such other
prepared statements that Buyer may reasonably request; 
  
 (4) if applicable, copies of any 10-Ks, 10-Qs, registration statements and other SEC filings (other than 8-Ks) which Seller or any Affiliate of Seller is required to file with the SEC in accordance with the 1934 Act or any rules thereunder,
within 5 Business Days of their filing with the SEC; provided, that, Seller will provide Buyer and Credit Suisse First Boston Corporation with a copy of the annual 10-K filed with the SEC by Seller or its affiliates, no later than 90 days after the
end of the year. 
  

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 (5) from time to time such other information regarding the financial condition,
operations, or business of the Seller as Buyer may reasonably request; 
  
 (6) as soon as reasonably possible, and in any event within thirty (30) days after a Responsible Officer of the Seller knows, or with respect to any Plan or Multiemployer Plan to which the Seller or any of its
Subsidiaries makes direct contributions, has reason to believe, that any of the events or conditions specified below with respect to any Plan or Multiemployer Plan has occurred or exists, a statement signed by a senior financial officer of the
Seller setting forth details respecting such event or condition and the action, if any, that the Seller or its ERISA Affiliate proposes to take with respect thereto (and a copy of any report or notice required to be filed with or given to PBGC by
the Seller or an ERISA Affiliate with respect to such event or condition): 
  
 (A) any reportable event, as defined in Section 4043(c) of ERISA and the regulations issued thereunder, with respect to a Plan, as to which PBGC has not by regulation waived the requirement of Section 4043(a) of ERISA
that it be notified within thirty (30) days of the occurrence of such event (provided that a failure to meet the minimum funding standard of Section 412 of the Code or Section 302 of ERISA, including without limitation the failure to make on or
before its due date a required installment under Section 412(m) of the Code or Section 302(e) of ERISA, shall be a reportable event regardless of the issuance of any waivers in accordance with Section 412(d) of the Code); and any request for a
waiver under Section 412(d) of the Code for any Plan; 
  
 (B) the distribution under Section 4041(c) of ERISA of a notice of intent to terminate any Plan or any action taken by the Seller or an ERISA Affiliate to terminate any Plan; 
  
 (C) the institution by PBGC of proceedings under Section 4042 of ERISA for the termination of, or the
appointment of a trustee to administer, any Plan, or the receipt by the Seller or any ERISA Affiliate of a notice from a Multiemployer Plan that such action has been taken by PBGC with respect to such Multiemployer Plan; 
  
 (D) the complete or partial withdrawal from a Multiemployer
Plan by the Seller or any ERISA Affiliate that results in liability under Section 4201 or 4204 of ERISA (including the obligation to satisfy secondary liability as a result of a purchaser default) that would have a Material Adverse Effect or the
receipt by the Seller or any ERISA Affiliate of notice from a Multiemployer Plan that it is in reorganization or insolvency pursuant to Section 4241 or 4245 of ERISA or that it intends to terminate or has terminated under Section 4041A of ERISA;

  

 -43- 

 (E) the institution of a proceeding by a fiduciary of any Multiemployer Plan against the
Seller or any ERISA Affiliate to enforce Section 515 of ERISA, which proceeding is not dismissed within thirty (30) days; and 
  
 (F) the adoption of an amendment to any Plan that would result in the loss of tax-exempt status of the trust of which such Plan is a part
if the Seller or an ERISA Affiliate fails to provide timely security to such Plan in accordance with the provisions of Section 401(a)(29) of the Code or Section 307 of ERISA. 
  
 b. Seller shall promptly inform Buyer in writing of any of the following: 
  
 (A) any change in the insurance coverage required of
Seller, or any other Person pursuant to any Program Agreement, with copy of evidence of same attached; 
  
 (B) any material change in accounting policies or financial reporting practices of Seller; 
  
 (C) the occurrence of any material employment dispute and a
description of the strategy for resolving it; 
  
 (D) with respect to any Purchased Mortgage Loan, promptly upon receipt of notice or knowledge that the underlying Mortgaged Property has been damaged by waste, fire, earthquake or earth movement, windstorm, flood, tornado or other casualty,
or otherwise damaged so as to affect adversely the value of such Mortgage Loan; 
  
 (E) the termination or suspension of Seller as a seller of mortgage loans by any Take-out Investor; 
  
 (F) any material issues raised upon any examination of
Seller or Seller’s facilities by any governmental authority or Fannie Mae or Freddie Mac; 
  
 (G) promptly upon receipt of notice or knowledge of (i) any default related to any Repurchase Asset, (ii) any lien or security interest
(other than security interests created hereby or by the other Program Agreements) on, or claim asserted against, any of the Repurchase Assets, and 
  
 (H) any event, circumstance or condition that has resulted, or has a possibility of resulting, in a Material Adverse Effect with respect
to Seller. 
  

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 c. Officer’s Certificate. As soon as available and in any event within thirty (30) calendar
days after the end of each calendar quarter and in conjunction with the delivery of each of the financial statements to be delivered by Seller pursuant to this Section 16 for such calendar quarter, Seller shall deliver to Buyer a certificate of a
Responsible Officer of the Seller, in the form of Exhibit D hereto certifying that, as of the date of such financial statements and as of the date of such certificates, Seller is in compliance with all the terms of this Agreement and setting
forth the basis for such compliance, including the calculation of each financial ratio and covenant required to be satisfied herein and that such Responsible Officer has obtained no knowledge of any Default or Event of Default except as specified in
such certificate (and, if any Default or Event of Default has occurred and is continuing, describing the same in reasonable detail and describing the action the Seller has taken or proposes to take with respect thereto). 
  
 d. Mortgage Loan Reports. Seller will furnish to Buyer monthly
electronic Mortgage Loan performance data, including, without limitation, delinquency reports. 
  
 e. Servicing Tape. Seller shall provide to Buyer, electronically, in a format mutually acceptable to Buyer and Seller, an Asset Tape by no later
than the Reporting Date. 
  
 f. Seller shall deliver to Buyer any
other reports or information reasonably requested by Buyer or as otherwise required pursuant to this Agreement. 
  
 17. Repurchase Transactions 
  
 Buyer may, in its sole election, engage in repurchase transactions with the Purchased Mortgage Loans or otherwise pledge, hypothecate, assign, transfer or
otherwise convey the Purchased Mortgage Loans with a counterparty of Buyer’s choice. No such transaction shall relieve Buyer of its obligations to transfer Purchased Mortgage Loans to Seller pursuant to Section 4 or 6 hereof, or of Buyer’s
obligation to credit or pay Income to, or apply Income to the obligations of, Seller pursuant to Section 7 hereof. In the event Buyer engages in a repurchase transaction with any of the Purchased Mortgage Loans or otherwise pledges or hypothecates
any of the Purchased Mortgage Loans, Buyer shall have the right to assign to Buyer’s counterparty any of the applicable representations or warranties herein and the remedies for breach thereof, as they relate to the Purchased Mortgage Loans
that are subject to such repurchase transaction; provided, however, that the parties hereto acknowledge and agree that each Purchased Mortgage Loan is identified and unique and nothing in this Agreement should limit or reduce Buyer’s obligation
to deliver the Purchased Mortgage Loans to Seller as and when provided herein. 
  
 18. Single Agreement 
  
 Buyer and Seller acknowledge that, and have entered hereunto and will enter into each Transaction hereunder in consideration of and in reliance upon the fact that, all 

  

 -45- 

 
Transactions hereunder constitute a single business and contractual relationship and have been made in consideration of each other. Accordingly, each of
Buyer and Seller agrees (i) to perform all of its obligations in respect of each Transaction hereunder, and that a default in the performance of any such obligations shall constitute a default by it in respect of all Transactions hereunder, (ii)
that each of them shall be entitled to set off claims and apply property held by them in respect of any Transaction against obligations owing to them in respect of any other Transactions hereunder and (iii) that payments, deliveries and other
transfers made by either of them in respect of any Transaction shall be deemed to have been made in consideration of payments, deliveries and other transfers in respect of any other Transactions hereunder, and the obligations to make any such
payments, deliveries and other transfers may be applied against each other and netted. 
  
 19. Notices and Other Communications 
  
 Any and all notices (with the exception of Transaction Requests or Purchase Confirmations, which shall be delivered via facsimile only), statements, demands or other communications hereunder may be given by a party to
the other by mail, facsimile, messenger or otherwise to the address specified below, or so sent to such party at any other place specified in a notice of change of address hereafter received by the other. All notices, demands and requests hereunder
may be made orally, to be confirmed promptly in writing, or by other communication as specified in the preceding sentence. 
  
 If to Seller: 
  
 WMC Mortgage Corp. 
 6320 Canoga Avenue 
 Woodland Hills, CA 91367 
 Attention: David Trzcinski 
 Phone Number: (818) 592-2530 
 Fax Number: (818) 712-2822 
  
 with a copy to: 
  
 WMC Mortgage Corp. 
 6320 Canoga Avenue 
 Woodland Hills, CA 91367 
 Attention: George M. Eshaghian, Esq. 
 Phone Number: (818) 592-2626 
 Fax Number: (818) 592-2605 
  

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 If to Buyer: 
  
 For Transaction Requests and Purchase Confirmations: 
  
 Credit Suisse First Boston Mortgage Capital LLC 

302 Carnegie Center, 2nd Floor 
 Princeton, NJ 08540 
 Attention: Kelly Phinney 
 Phone Number: 609-627-5053 
 Fax Number: 609-627-5080 
  
 For all other Notices: 
  
 Credit Suisse First Boston Mortgage Capital LLC 

302 Carnegie Center, 2nd Floor 
 Princeton, NJ 08540 
 Attention:  Gary Timmerman 
                     Terry Farley 
 Phone Number: 609-627-5026 
 Fax Number: 609-627-5011 
  
 with a copy to: 
  
 Credit Suisse First Boston Mortgage Capital LLC 
 Eleven Madison Avenue 
 New York, NY 10010 
 Attention: Legal Department 
 Gabriella Morizio 
 Telephone: 212-325-9646 
 Fax: 212-325-9646 
  
 Colleen Graham 
 Telephone: 212-325-7951 
 Fax: 212-325-8282 
  
 20. Entire Agreement; Severability 
  
 This Agreement shall supersede any existing agreements between the parties containing general terms and conditions for repurchase transactions. Each
provision and agreement herein shall be treated as separate and independent from any other provision or agreement herein and shall be enforceable notwithstanding the unenforceability of any such other provision or agreement. 
  
 21. Non assignability; Extension of Termination Date 
  
 a. The Program Agreements are not assignable by Seller without the consent
of Buyer. Buyer may from time to time assign all or a portion of its rights and 

  

 -47- 

 
obligations under this Agreement and the Program Agreements; provided, however that Buyer shall maintain, for review by Seller upon written request, a
register of assignees and a copy of an executed assignment and acceptance by Buyer and assignee (“Assignment and Acceptance”), specifying the percentage or portion of such rights and obligations assigned. Upon such assignment, (a)
such assignee shall be a party hereto and to each Program Agreement to the extent of the percentage or portion set forth in the Assignment and Acceptance, and shall succeed to the applicable rights and obligations of Buyer hereunder, and (b) Buyer
shall, to the extent that such rights and obligations have been so assigned by it to either (i) an Affiliate of Buyer which assumes the obligations of Buyer or (ii) to another Person approved by Seller (such approval not to be unreasonably withheld)
which assumes the obligations of Buyer, be released from its obligations hereunder and under the Program Agreements. Unless otherwise stated in the Assignment and Acceptance, Seller shall continue to take directions solely from Buyer unless
otherwise notified by Buyer in writing. Buyer may distribute to any prospective assignee any document or other information delivered to Buyer by Seller if such prospective assignee agrees to be bound by the provisions of Section 30 hereof.

  
 b. At the request of the Seller made at least 45 days prior
to the then current Termination Date, the Buyer may in its sole discretion extend the Termination Date for a period of one additional year or such other period to be determined by Buyer in its sole discretion and subject to Buyer’s satisfaction
with the results of its due diligence review by giving written notice of such extension to the Seller. In connection with the foregoing, Buyer shall have the right to conduct an on site due diligence review (including corporate and/or loan file and
appraisal due diligence) and an analysis of Seller’s financial operating performance, including obtaining broker price opinions on a representative sample of Mortgage Loans as determined by Buyer in its sole discretion. Seller shall be
responsible for payment of the expenses of such due diligence. Any extension shall commence on the Price Differential Payment Date following the date on which Buyer has given notice of Buyer’s approval to the Seller. Any failure by the Lender
to deliver such notice of extension shall be deemed to be the Buyer’s determination not to extend the then current Termination Date. 
  
 22. Set-off 
  
 In addition to any rights and remedies of Buyer provided by law, Buyer shall have the right, without prior notice to Seller, any such notice being
expressly waived by Seller to the extent permitted by applicable law, upon any amount becoming due and payable by Seller hereunder (whether at the stated maturity, by acceleration or otherwise) to set-off and appropriate and apply against such
amount any and all deposits (general or special, time or demand, provisional or final), in any currency, and any other credits, indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or contingent, matured or
unmatured, at any time held or owing by Buyer or any branch or agency thereof to or for the credit or the account of Seller. Buyer agrees promptly to notify Seller after any such set-off and application made by Buyer; provided, that the failure to
give such notice shall not affect the validity of such set-off and application. 
  

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 23. Binding Effect; Governing Law; Jurisdiction 
  
 a. This Agreement shall be binding and inure to the benefit of the parties
hereto and their respective successors and assigns. Seller acknowledges that the obligations of Buyer hereunder or otherwise are not the subject of any guaranty by, or recourse to, any direct or indirect parent or other Affiliate of Buyer. THIS
AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAW OF THE STATE OF NEW YORK. 
  
 b. BUYER AND SELLER HEREBY WAIVE TRIAL BY JURY. BUYER AND SELLER HEREBY IRREVOCABLY CONSENT TO THE EXCLUSIVE JURISDICTION OF ANY COURT OF THE STATE OF NEW
YORK, OR IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, ARISING OUT OF OR RELATING TO THE PROGRAM AGREEMENTS IN ANY ACTION OR PROCEEDING. BUYER AND SELLER HEREBY SUBMIT TO, AND WAIVE ANY OBJECTION THEY MAY HAVE TO,
EXCLUSIVE PERSONAL JURISDICTION AND VENUE IN THE COURTS OF THE STATE OF NEW YORK AND THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, WITH RESPECT TO ANY DISPUTES ARISING OUT OF OR RELATING TO THE PROGRAM AGREEMENTS.

  
 24. No Waivers, Etc. 
  
 No express or implied waiver of any Event of Default by either party shall
constitute a waiver of any other Event of Default and no exercise of any remedy hereunder by any party shall constitute a waiver of its right to exercise any other remedy hereunder. No modification or waiver of any provision of this Agreement and no
consent by any party to a departure herefrom shall be effective unless and until such shall be in writing and duly executed by both of the parties hereto. Without limitation on any of the foregoing, the failure to give a notice pursuant to Section
6(a) hereof will not constitute a waiver of any right to do so at a later date. 
  
 25. Intent 
  
 a. The
parties recognize that each Transaction is a “repurchase agreement” as that term is defined in Section 101 of Title 11 of the United States Code, as amended (except insofar as the type of Purchased Mortgage Loans subject to such
Transaction or the term of such Transaction would render such definition inapplicable), and a “securities contract” as that term is defined in Section 741 of Title 11 of the United States Code, as amended (except insofar as the type
of assets subject to such Transaction would render such definition inapplicable). 
  

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 b. It is understood that either party’s right to liquidate Purchased Mortgage Loans delivered to it
in connection with Transactions hereunder or to exercise any other remedies pursuant to Section 15 hereof is a contractual right to liquidate such Transaction as described in Sections 555 and 559 of Title 11 of the United States Code, as amended.

  
 26. Disclosure Relating to Certain Federal Protections

  
 The parties acknowledge that they have been advised that:

  
 a. in the case of Transactions in which one of the parties is
a broker or dealer registered with the SEC under Section 15 of the 1934 Act, the Securities Investor Protection Corporation has taken the position that the provisions of the SIPA do not protect the other party with respect to any Transaction
hereunder; 
  
 b. in the case of Transactions in which one of the
parties is a government securities broker or a government securities dealer registered with the SEC under Section 15C of the 1934 Act, SIPA will not provide protection to the other party with respect to any Transaction hereunder; and 
  
 c. in the case of Transactions in which one of the parties is a financial
institution, funds held by the financial institution pursuant to a Transaction hereunder are not a deposit and therefore are not insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund, as applicable.

  
 27. Power of Attorney 
  
 Seller hereby authorizes Buyer, at Seller’s expense, to file such
financing statement or statements relating to the Repurchase Assets without Seller’s signature thereon as Buyer at its option may deem appropriate, and appoints Buyer as Seller’s agent and attorney-in-fact to execute any such financing
statement or statements in Seller’s name and to perform all other acts which Buyer deems appropriate to perfect and continue its ownership interest in and/or the security interest granted hereby, if applicable, and to protect, preserve and
realize upon the Repurchase Assets, including, but not limited to, the right to endorse notes, complete blanks in documents, transfer servicing, and sign assignments on behalf of Seller as its agent and attorney-in-fact. This agency and power of
attorney is coupled with an interest and is irrevocable without Buyer’s consent. Notwithstanding the foregoing, the power of attorney hereby granted may be exercised only during the occurrence and continuance of any Event of Default hereunder.

  
 28. Indemnification; Obligations 
  
 a. Seller agrees to hold Buyer and each of its Affiliates and their
respective officers, directors, employees, agents and advisors (each, an “Indemnified Party”) harmless from and indemnify each Indemnified Party (and will reimburse each Indemnified Party as the same is incurred) against all
liabilities, losses, damages, judgments, costs and expenses (including, without limitation, reasonable fees and 

  

 -50- 

 
expenses of counsel) of any kind which may be imposed on, incurred by, or asserted against any Indemnified Party relating to or arising out of this
Agreement, any Transaction Request, Purchase Confirmation, any Program Agreement or any transaction contemplated hereby or thereby resulting from anything other than the Indemnified Party’s gross negligence or willful misconduct. Seller also
agrees to reimburse each Indemnified Party for all reasonable expenses in connection with the enforcement of this Agreement and the exercise of any right or remedy provided for herein, any Transaction Request, Purchase Confirmation and any Program
Agreement, including without limitation the reasonable fees and disbursements of counsel. Seller’s agreements in this Section 28 shall survive the payment in full of the Repurchase Price and the expiration or termination of this Agreement.
Seller hereby acknowledges that its obligations hereunder are recourse obligations of Seller and are not limited to recoveries each Indemnified Party may have with respect to the Purchased Mortgage Loans. Seller also agrees not to assert any claim
against Buyer or any of its Affiliates, or any of their respective officers, directors, employees, attorneys and agents, on any theory of liability, for special, indirect, consequential or punitive damages arising out of or otherwise relating to the
facility established hereunder, the actual or proposed use of the proceeds of the Transactions, this Agreement or any of the transactions contemplated thereby. THE FOREGOING INDEMNITY AND AGREEMENT NOT TO ASSERT CLAIMS EXPRESSLY APPLIES, WITHOUT
LIMITATION, TO THE NEGLIGENCE (BUT NOT GROSS NEGLIGENCE OR WILLFUL MISCONDUCT) OF THE INDEMNIFIED PARTIES. 
  
 b. Without limitation to the provisions of Section 4, if any payment of the Repurchase Price of any Transaction is made by Seller other than on the then
scheduled Repurchase Date thereto as a result of an acceleration of the Repurchase Date pursuant to Section 21 or for any other reason, Seller shall, upon demand by Buyer, pay to Buyer an amount sufficient to compensate Buyer for any losses, costs
or expenses that it may reasonably incur as of a result of such payment. 
  
 c. Without limiting the provisions of Section 28(a) hereof, if Seller fails to pay when due any costs, expenses or other amounts payable by it under this Agreement, including, without limitation, fees and expenses of
counsel and indemnities, such amount may be paid on behalf of Seller by Buyer, in its sole discretion. 
  
 29. Counterparts 
  
 This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, and all such counterparts shall together
constitute one and the same instrument. 
  

 -51- 

 30. Confidentiality 
  
 This Agreement and its terms, provisions, supplements and amendments, and notices hereunder, shall be held by each of the
parties hereto in strict confidence and shall not be disclosed to any third party except for (i) disclosure to either party’s direct and indirect Affiliates and Subsidiaries, attorneys or accountants, but only to the extent such disclosure is
necessary and such parties agree to hold all information in strict confidence, (ii) disclosure required by law, rule, regulation or order of a court or other regulatory body, (iii) disclosure in connection with the enforcement of any of the
provisions of this Agreement or (iv) the extent to which this Agreement is in the public domain other than due to a breach of this Section. 
  
 31. Recording of Communications 
  
 Buyer and Seller shall have the right (but not the obligation) from time to time to make or cause to be made tape recordings of communications between its
employees and those of the other party with respect to Transactions. Buyer and Seller consent to the admissibility of such tape recordings in any court, arbitration, or other proceedings. The parties agree that a duly authenticated transcript of
such a tape recording shall be deemed to be a writing conclusively evidencing the parties’ agreement. 
  
 32. Structure Fee 
  
 Seller shall pay to Buyer in immediately available funds a non-refundable fee due and owing upon closing and payable in arrears no later than 2 Business
Days after the end of each calendar quarter, in the amount set forth in the fee schedule attached hereto as Annex II; provided, however, that such fee may be rebated, in whole or in part, in accordance with the rebate schedule set forth
therein, in consideration for underwriting fees received by Credit Suisse First Boston Corporation for participating as a co-manager or lead manager in any securitization transaction sponsored by Seller. Such payment shall be made in Dollars, in
immediately available funds, without deduction, set-off or counterclaim, to Buyer at such account designated by Buyer. In connection with any extension of the Termination Date pursuant to Section 21(b), the Seller shall pay to the Buyer a
supplemental structure fee to be agreed upon by the Buyer and the Seller at the time of such extension. In connection with any failure to enter into Transactions solely as a result of any of the events listed in Section 10(b)(9), Buyer shall rebate
to Seller a pro-rata share of any fees paid by Seller in accordance with this Section based upon the number of days from the date on which Buyer has ceased entering into Transactions hereunder up to but not including the earlier to occur of the
Buyer recommencing such Transactions and the Termination Date. 
  
 33. Non-Utilization Fee 
  
 No later than the
10th calendar day of each calendar month (or if such 10th calendar day is not a Business Day, the immediately preceding Business Day), Seller shall pay to Buyer a non-refundable fee for the preceding calendar month
calculated in accordance with the formula set forth in the schedule attached hereto as Annex III. Such payment shall be made in Dollars, in immediately available funds, without deduction, set-off or counterclaim, to Buyer at such account designated
by Buyer. Upon any failure to enter into Transactions solely 

  

 -52- 

 
as a result of any of the events listed in Section 10(b)(9), no fee payable by Seller in accordance with this Section attributable to the period commencing
on the date on which Buyer has ceased entering into Transactions hereunder up to but not including the earlier to occur of the Buyer recommencing such Transactions and the Termination Date shall be due hereunder. 
  
 34. Periodic Due Diligence Review 
  
 Seller acknowledges that Buyer has the right to perform continuing due
diligence reviews with respect to the Mortgage Loans, for purposes of verifying compliance with the representations, warranties and specifications made hereunder, or otherwise, and Seller agrees that upon reasonable (but no less than one (1)
Business Day’s) prior notice unless an Event of Default shall have occurred, in which case no notice is required, to Seller, Buyer or its authorized representatives will be permitted during normal business hours to examine, inspect, and make
copies and extracts of, the Mortgage Files and any and all documents, records, agreements, instruments or information relating to such Mortgage Loans in the possession or under the control of Seller and/or the Custodian. Seller also shall make
available to Buyer a knowledgeable financial or accounting officer for the purpose of answering questions respecting the Mortgage Files and the Mortgage Loans. Without limiting the generality of the foregoing, Seller acknowledges that Buyer may
purchase Mortgage Loans from Seller based solely upon the information provided by Seller to Buyer in the Asset Schedule and the representations, warranties and covenants contained herein, and that Buyer, at its option, has the right at any time to
conduct a partial or complete due diligence review on some or all of the Mortgage Loans purchased in a Transaction, including without limitation ordering broker’s price opinions, new credit reports and new appraisals on the related Mortgaged
Properties and otherwise re-generating the information used to originate such Mortgage Loan. Buyer may underwrite such Mortgage Loans itself or engage a mutually agreed upon third party underwriter to perform such underwriting. Seller agrees to
cooperate with Buyer and any third party underwriter in connection with such underwriting, including, but not limited to, providing Buyer and any third party underwriter with access to any and all documents, records, agreements, instruments or
information relating to such Mortgage Loans in the possession, or under the control, of Seller. Seller further agrees that Seller shall pay all out-of-pocket costs and expenses incurred by Buyer in connection with Buyer’s activities pursuant to
this Section 34 (“Due Diligence Costs”) after the Effective Date. 
  
 [Signature Page Follows] 
  

 -53- 

			
	 CREDIT SUISSE FIRST BOSTON MORTGAGE CAPITAL LLC

		
	 By:
	 	 /s/ Karin S. Roberts

	 	 	

		
	 Title:
	 	 Vice President

		
	 Date:
	 	 

  
 WMC
MORTGAGE CORP. 
  

			
	 By:
	 	 /s/ David Trzcinski

		
	 Title:
	 	 Executive Vice President, Chief Financial Officer and Treasurer

		
	 Date:
	 	 August     , 2001

 SCHEDULE 1 
  
 REPRESENTATIONS AND WARRANTIES WITH RESPECT TO PURCHASED 
 MORTGAGE LOANS 
  
 With respect to those representations and warranties which are made to the best of the Seller’s knowledge, if it is discovered by the Seller or the Buyer that the substance of such representation and warranty is inaccurate,
notwithstanding the Seller’s lack of knowledge with respect to the substance of such representation and warranty, such inaccuracy shall be deemed a breach of the applicable representation and warranty subject to the limitations set forth in
Section 14(g) of the Agreement. 
  
 (a) Payments Current.
Except with respect to each Non-Performing Mortgage Loan and Delinquent Mortgage Loan, all payments required to be made up to the Purchase Date for the Mortgage Loan under the terms of the Mortgage Note have been made and credited. Except with
respect to each Non-Performing Mortgage Loan and Delinquent Mortgage Loan, no payment required under the Mortgage Loan is delinquent nor has any payment under the Mortgage Loan been delinquent at any time since the origination of the Mortgage Loan.
Except with respect to each Non-Performing and Delinquent Mortgage Loan which was the subject of a Transaction hereunder on the Due Date of the first Monthly Payment, the first Monthly Payment shall be made, or shall have been made, with respect to
the Mortgage Loan on its Due Date or within the grace period, all in accordance with the terms of the related Mortgage Note. 
  
 (b) No Outstanding Charges. All taxes, governmental assessments, insurance premiums, water, sewer and municipal charges, leasehold payments or
ground rents which previously became due, owing and payable have been paid, or an escrow of funds has been established in an amount sufficient to pay for every such item which remains unpaid and which has been assessed but is not yet due and
payable. Neither Seller nor the Qualified Originator from which Seller acquired the Mortgage Loan has advanced funds, or induced, solicited or knowingly received any advance of funds by a party other than the Mortgagor, directly or indirectly, for
the payment of any amount required under the Mortgage Loan, except for interest accruing from the date of the Mortgage Note or date of disbursement of the proceeds of the Mortgage Loan, whichever is earlier, to the day which precedes by one month
the Due Date of the first installment of principal and interest thereunder. 
  
 (c) Original Terms Unmodified. The terms of the Mortgage Note and Mortgage have not been impaired, waived, altered or modified in any material respect, from the date of origination; except by a written
instrument which has been recorded, if necessary to protect the interests of Buyer, and which has been delivered to the Custodian and the terms of which are reflected in the Mortgage Loan Schedule. The substance of any such waiver, alteration or
modification has been approved by the title insurer, to the extent required, and its terms are reflected on the Mortgage Loan Schedule. No Mortgagor in respect of the Mortgage Loan has been released, in whole or in part, except in connection with an
assumption agreement approved by the title insurer, to the extent required by such policy, and which assumption agreement is part of the Mortgage File delivered to the Custodian and the terms of which are reflected in the Mortgage Loan Schedule.

  

 Schedule 1-1 

 (d) No Defenses. The Mortgage Loan is not subject to any right of rescission, set-off,
counterclaim or defense, including without limitation the defense of usury, nor will the operation of any of the terms of the Mortgage Note or the Mortgage, or the exercise of any right thereunder, render either the Mortgage Note or the Mortgage
unenforceable, in whole or in part, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general equitable
principles (whether enforcement is sought by proceedings in equity or at law), and no such right of rescission, set-off, counterclaim or defense has been asserted with respect thereto, and no Mortgagor in respect of the Mortgage Loan was a debtor in
any state or Federal bankruptcy or insolvency proceeding at the time the Mortgage Loan was originated. Seller has no knowledge nor has it received any notice that any Mortgagor in respect of the Mortgage Loan is a debtor in any state or federal
bankruptcy or insolvency proceeding. 
  
 (e) Hazard
Insurance. The Mortgaged Property is insured by a fire and extended perils insurance policy, issued by a Qualified Insurer, and such other hazards as are customary in the area where the Mortgaged Property is located, and to the extent required
by Seller as of the date of origination consistent with the Underwriting Guidelines, against risks insured against by Persons operating like properties in the locality of the Mortgaged Property, in an amount not less than the lesser of (i) 100% of
the replacement cost of all improvements to the Mortgaged Property, (ii) the outstanding principal balance of the Mortgage Loan, (iii) the amount necessary to avoid the operation of any co-insurance provisions with respect to the Mortgaged Property,
or (iv) the maximum amount allowed by law, and consistent with the amount that would have been required as of the date of origination in accordance with the Underwriting Guidelines. If any portion of the Mortgaged Property is in an area identified
by any federal Governmental Authority as having special flood hazards, and flood insurance is available, a flood insurance policy meeting the current guidelines of the Federal Emergency Management Agency is in effect with a generally acceptable
insurance carrier, in an amount representing coverage not less than the least of (1) the outstanding principal balance of the Mortgage Loan and, with respect to any second lien Mortgage Loan, the outstanding principal balance of the prior mortgage
loan, (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount of insurance available under the National Flood Insurance Act of 1968, as amended by the Flood Disaster Protection Act of 1974. All such insurance policies
(collectively, the “hazard insurance policy”) contain a standard mortgagee clause naming Seller, its successors and assigns (including without limitation, subsequent owners of the Mortgage Loan), as mortgagee, and may not be reduced,
terminated or canceled without 30 days’ prior written notice to the mortgagee. No such notice has been received by Seller. All premiums currently due and payable on such hazard insurance policy have been paid. The related Mortgage obligates the
Mortgagor to maintain all such insurance and, at such Mortgagor’s failure to do so, authorizes the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. Where
required by state law or regulation, the Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a “master” or “blanket” hazard insurance policy covering a
condominium, or any hazard insurance policy covering the common facilities of a planned unit development. The hazard insurance policy is the valid and binding obligation of the insurer and is in full force and effect. Seller has not engaged in, and
has no knowledge of the Mortgagor’s having engaged in, any act or omission which would impair the coverage of any such policy, the benefits of the endorsement provided for herein, or the validity and binding 

  

 Schedule 1-2 

 
effect of either. No unlawful fee, commission, kickback or other unlawful compensation or value of any kind has been or will be received, retained or
realized by any attorney, firm or other Person, and no such unlawful items have been received, retained or realized by Seller. 
  
 (f) Compliance with Applicable Laws. Any and all requirements of any federal, state or local law including, without limitation, usury,
truth-in-lending, real estate settlement procedures, consumer credit protection, equal credit opportunity or disclosure laws applicable to the Mortgage Loan have been complied with, the consummation of the transactions contemplated hereby will not
involve the violation of any such laws or regulations, and Seller shall maintain or shall cause its agent to maintain in its possession, available for the inspection of Buyer, and shall deliver to Buyer, upon demand, evidence of compliance with all
such requirements. 
  
 (g) No Satisfaction of Mortgage. The
Mortgage has not been satisfied, canceled, subordinated or rescinded, in whole or in part, and the Mortgaged Property has not been released from the lien of the Mortgage, in whole or in part, nor has any instrument been executed that would effect
any such release, cancellation, subordination or rescission. Seller has not waived the performance by the Mortgagor of any action, if the Mortgagor’s failure to perform such action would cause the Mortgage Loan to be in default, nor has Seller
waived any default resulting from any action or inaction by the Mortgagor. 
  
 (h) Location and Type of Mortgaged Property. The Mortgaged Property is located in an Acceptable State as identified in the Mortgage Loan Schedule and consists of a single parcel of real property with a detached
single family residence erected thereon, or a two- to four-family dwelling, or an individual condominium unit in a condominium project, or an individual unit in a planned unit development or a de minimis planned unit development, provided, however,
that any condominium unit or planned unit development shall conform with the applicable Fannie Mae and Freddie Mac requirements regarding such dwellings and that no residence or dwelling is (i) a mobile home or (ii) a Manufactured Home unless such
Manufactured Home is (x) permanently affixed to the Mortgaged Property, (y) considered real estate under applicable local law and (z) conforms to all Fannie Mae requirements. No portion of the Mortgaged Property is used for commercial purposes
(except for home offices). 
  
 (i) Valid First or Second
Lien. The Mortgage is a valid, subsisting, enforceable and perfected (a) with respect to each first lien Mortgage Loan, first priority lien and first priority security interest, or (b) with respect to each Second Lien Mortgage Loan, second
priority lien and second priority security interest, in each case, on the real property included in the Mortgaged Property, including all buildings on the Mortgaged Property and all installations and mechanical, electrical, plumbing, heating and air
conditioning systems located in or annexed to such buildings, and all additions, alterations and replacements made at any time with respect to the foregoing. The lien of the Mortgage is subject only to: 
  
 a. the lien of current real property taxes and assessments not yet due and
payable; 
  
 b. covenants, conditions and restrictions, rights of
way, easements and other matters of the public record as of the date of recording acceptable to prudent mortgage lending institutions generally and specifically referred to in Buyer’s title insurance policy delivered to the 

  

 Schedule 1-3 

 
originator of the Mortgage Loan and (a) referred to or otherwise considered in the appraisal made for the originator of the Mortgage Loan or (b) which do not
adversely affect the Appraised Value of the Mortgaged Property set forth in such appraisal; and 
  
 c. in the case of a Second Lien Mortgage Loan, the lien of the first mortgage; and 
  
 d. other matters to which like properties are commonly subject which do not materially interfere with the benefits of the
security intended to be provided by the Mortgage or the use, enjoyment, value or marketability of the related Mortgaged Property. 
  
 Any security agreement, chattel mortgage or equivalent document related to and delivered in connection with the Mortgage Loan establishes and creates a valid, subsisting
and enforceable first or second lien and first or second priority security interest on the property described therein and Seller has full right to pledge and assign the same to Buyer. 
  
 (j) Validity of Mortgage Documents. The Mortgage Note and the Mortgage and any other agreement executed and delivered
by a Mortgagor or guarantor, if applicable, in connection with a Mortgage Loan are genuine, and each is the legal, valid and binding obligation of the maker thereof enforceable in accordance with its terms except as enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law). All
parties to the Mortgage Note, the Mortgage and any other such related agreement had legal capacity to enter into the Mortgage Loan and to execute and deliver the Mortgage Note, the Mortgage and any such agreement, and the Mortgage Note, the Mortgage
and any other such related agreement have been duly and properly executed by such related parties. To the best of Seller’s knowledge, no fraud, error, omission, misrepresentation, negligence or similar occurrence with respect to a Mortgage Loan
has taken place on the part of any Person, including, without limitation, the Mortgagor, any appraiser, any builder or developer, or any other party involved in the origination of the Mortgage Loan. Seller or Servicer has reviewed all of the
documents constituting the Servicing File and has made such inquiries as it deems necessary to make and confirm the accuracy of the representations set forth herein. To the best of Seller’s knowledge, except as disclosed to Buyer in writing,
all tax identifications and property descriptions are legally sufficient; tax segregation, where required, has been completed. 
  
 (k) Full Disbursement of Proceeds. There is no further requirement for future advances under the Mortgage Loan, and, except for completion escrows
as set forth on line 442 of the related HUD-1 statement, any and all requirements as to completion of any on-site or off-site improvement and as to disbursements of any escrow funds therefor have been complied with. All costs, fees and expenses
incurred in making or closing the Mortgage Loan and the recording of the Mortgage were paid, and the Mortgagor is not entitled to any refund of any amounts paid or due under the Mortgage Note or Mortgage. 
  
 (l) Ownership. Seller has full right to sell the Mortgage Loan to
Buyer free and clear of any encumbrance, equity, participation interest, lien, pledge, charge, claim or security interest, and has full right and authority subject to no interest or participation of, or agreement with, any other party, to sell each
Mortgage Loan pursuant to this Agreement and 

  

 Schedule 1-4 

 
following the sale of each Mortgage Loan, Buyer will own such Mortgage Loan free and clear of any encumbrance, equity, participation interest, lien, pledge,
charge, claim or security interest except any such security interest created pursuant to the terms of this Agreement. 
  
 (m) Doing Business. All parties which have had any interest in the Mortgage Loan, whether as mortgagee, assignee, pledgee or otherwise, are (or,
during the period in which they held and disposed of such interest, were) (i) in compliance with any and all applicable licensing requirements of the laws of the state wherein the Mortgaged Property is located, and (ii) either (A) organized under
the laws of such state, (B) qualified to do business in such state, (C) a federal savings and loan association, a savings bank or a national bank having a principal office in such state, or (D) not doing business in such state. 
  
 (n) Title Insurance. The Mortgage Loan is covered by either (i) an
attorney’s opinion of title and abstract of title, the form and substance of which is acceptable to prudent mortgage lending institutions making mortgage loans in the area wherein the Mortgaged Property is located or (ii) an ALTA
Mortgagee’s title insurance policy or other generally acceptable form of policy or insurance acceptable to Fannie Mae or Freddie Mac and each such title insurance policy is issued by a title insurer acceptable to Fannie Mae or Freddie Mac and
qualified to do business in the jurisdiction where the Mortgaged Property is located, insuring Seller, its successors and assigns, as to the first or second priority lien of the Mortgage, as applicable in the original principal amount of the
Mortgage Loan (or to the extent a Mortgage Note provides for negative amortization, the maximum amount of negative amortization in accordance with the Mortgage), subject only to the exceptions contained in clauses (a) through (d) and, with respect
to Second Lien Mortgage Loans, clause (e) of paragraph (i) of this Schedule 1, and in the case of adjustable rate Mortgage Loans, against any loss by reason of the invalidity or unenforceability of the lien resulting from the provisions of the
Mortgage providing for adjustment to the Mortgage Interest Rate and monthly payment. Where required by state law or regulation, the Mortgagor has been given the opportunity to choose the carrier of the required mortgage title insurance.
Additionally, such mortgagee title insurance policy affirmatively insures ingress and egress and against encroachments by or upon the Mortgaged Property or any interest therein. The title policy does not contain any special exceptions (other than
the standard exclusions) for zoning and uses and has been marked to delete the standard survey exception or to replace the standard survey exception with a specific survey reading. Seller and its successors and assigns, are the sole insureds of such
mortgagee title insurance policy, and such mortgagee title insurance policy is valid and remains in full force and effect and will be in force and effect upon the consummation of the transactions contemplated by this Agreement. No claims have been
made under such mortgagee title insurance policy, and no prior holder or servicer of the related Mortgage, including Seller, has done, by act or omission, anything which would impair the coverage of such mortgagee title insurance policy. 

 
 (o) No Defaults. To the best of Seller’s knowledge, other than
a payment default or with respect to an Exception Loan, there is no material default, breach, violation or event of acceleration existing under the Mortgage or the Mortgage Note and no event has occurred which, with the passage of time or with
notice and the expiration of any grace or cure period, would constitute a default, breach, violation or event of acceleration, and Seller has not waived any default, breach, violation or event of acceleration. 
  

 Schedule 1-5 

 (p) No Mechanics’ Liens. There are no mechanics’ or similar liens or claims which have
been filed for work, labor or material (and no rights are outstanding that under the law could give rise to such liens) affecting the Mortgaged Property which are or may be liens prior to, or equal or coordinate with, the lien of the Mortgage unless
insured over. 
  
 (q) Location of Improvements; No
Encroachments. To Seller’s knowledge, all material improvements which were considered in determining the Appraised Value of the Mortgaged Property lie wholly within the boundaries and building restriction lines of the Mortgaged Property. To
Seller’s knowledge, as of the date of origination, no improvement located on or being part of the Mortgaged Property is in violation of any applicable zoning and building law, ordinance or regulation in any material respect. 
  
 (r) Origination; Payment Terms. The Mortgage Loan was originated by or
in conjunction with a mortgagee approved by the Secretary of Housing and Urban Development pursuant to Sections 203 and 211 of the National Housing Act, a savings and loan association, a savings bank, a commercial bank, credit union, insurance
company or similar banking institution which is supervised and examined by a federal or state authority. Principal payments on the Mortgage Loan commenced no more than 60 days after funds were disbursed in connection with the Mortgage Loan. The
Mortgage Interest Rate is adjusted, with respect to adjustable rate Mortgage Loans, on each Interest Rate Adjustment Date to equal the Index plus the Gross Margin (rounded up or down to the nearest .125%), subject to the Mortgage Interest Rate Cap.
The Mortgage Note is payable on the first day of each month in equal monthly installments of principal and interest, which installments of interest, with respect to adjustable rate Mortgage Loans, are subject to change due to the adjustments to the
Mortgage Interest Rate on each Interest Rate Adjustment Date, with interest calculated and payable in arrears, sufficient to amortize the Mortgage Loan fully by the stated maturity date, over an original term of not more than 30 years from
commencement of amortization. 
  
 (s) Customary Provisions.
The Mortgage Note has a stated maturity. The Mortgage contains customary and enforceable provisions such as to render the rights and remedies of the holder thereof adequate for the realization against the Mortgaged Property of the benefits of the
security provided thereby, including, (i) in the case of a Mortgage designated as a deed of trust, by trustee’s sale, and (ii) otherwise by judicial foreclosure. Upon default by a Mortgagor on a Mortgage Loan and foreclosure on, or
trustee’s sale of, the Mortgaged Property pursuant to the proper procedures, the holder of the Mortgage Loan will be able to deliver good and merchantable title to the Mortgaged Property. There is no homestead or other exemption available to a
Mortgagor which would interfere with the right to sell the Mortgaged Property at a trustee’s sale or the right to foreclose the Mortgage. The Mortgage Loan is on forms acceptable to Freddie Mac or Fannie Mae. 
  
 (t) Occupancy of the Mortgaged Property. To Seller’s knowledge,
as of the Purchase Date the Mortgaged Property is lawfully occupied under applicable law. To Seller’s knowledge, all inspections, licenses and certificates required to be made or issued with respect to all occupied portions of the Mortgaged
Property and, with respect to the use and occupancy of the same, including but not limited to certificates of occupancy and fire underwriting certificates, have been made or obtained from the appropriate authorities. Seller has not received
notification from any Governmental Authority that the Mortgaged Property is in material non-compliance 

  

 Schedule 1-6 

 
with such laws or regulations, is being used, operated or occupied unlawfully or has failed to have or obtain such inspection, licenses or certificates, as
the case may be. Seller has not received notice of any violation or failure to conform with any such law, ordinance, regulation, standard, license or certificate. 
  
 (u) No Additional Collateral. The Mortgage Note is not and has not been secured by any collateral except the lien of
the corresponding Mortgage and the security interest of any applicable security agreement or chattel mortgage referred to in clause (i) above. 
  
 (v) Deeds of Trust. In the event the Mortgage constitutes a deed of trust, a trustee, authorized and duly qualified under applicable law to serve
as such, has been properly designated and currently so serves and is named in the Mortgage, and no fees or expenses are or will become payable by the Custodian or Buyer to the trustee under the deed of trust, except in connection with a
trustee’s sale after default by the Mortgagor. 
  
 (w)
Transfer of Mortgage Loans. The Assignment of Mortgage is in recordable form and is acceptable for recording under the laws of the jurisdiction in which the Mortgaged Property is located. 
  
 (x) Due-On-Sale. Subject to any limitations of applicable law, the
Mortgage contains an enforceable provision for the acceleration of the payment of the unpaid principal balance of the Mortgage Loan in the event that the Mortgaged Property is sold or transferred without the prior written consent of the mortgagee
thereunder. 
  
 (y) No Buydown Provisions; No Graduated
Payments or Contingent Interests. The Mortgage Loan does not contain provisions pursuant to which Monthly Payments are paid or partially paid with funds deposited in any separate account established by Seller, the Mortgagor, or anyone on behalf
of the Mortgagor, or paid by any source other than the Mortgagor nor does it contain any other similar provisions which may constitute a “buydown” provision. The Mortgage Loan is not a graduated payment mortgage loan and the Mortgage Loan
does not have a shared appreciation or other contingent interest feature. 
  
 (z) Consolidation of Future Advances. Any future advances made to the Mortgagor prior to the Purchase Date have been consolidated with the outstanding principal amount secured by the Mortgage, and the secured
principal amount, as consolidated, bears a single interest rate and single repayment term. The lien of the Mortgage securing the consolidated principal amount is expressly insured as having first or second lien priority, as the case may be, by a
title insurance policy, an endorsement to the policy insuring the mortgagee’s consolidated interest or by other title evidence acceptable to Fannie Mae and Freddie Mac. The consolidated principal amount does not exceed the original principal
amount of the Mortgage Loan. 
  
 (aa) No Condemnation
Proceeding. There have not been any condemnation proceedings with respect to the Mortgaged Property and Seller has no knowledge of any such proceedings. 
  
 (bb) Collection Practices; Escrow Deposits; Interest Rate Adjustments. The origination and collection practices used by the originator, each
servicer of the Mortgage Loan 

  

 Schedule 1-7 

 
and Seller with respect to the Mortgage Loan have been in all respects in compliance with Accepted Servicing Practices, applicable laws and regulations, and
have been in all respects legal and proper. With respect to escrow deposits and Escrow Payments, (other than with respect to each Second Lien Mortgage Loan and for which the mortgagee under the first lien is collecting Escrow Payments) all such
payments are in the possession of, or under the control of, Seller and there exist no deficiencies in connection therewith for which customary arrangements for repayment thereof have not been made. All Escrow Payments have been collected in full
compliance with state and federal law. An escrow of funds is not prohibited by applicable law and has been established in an amount sufficient to pay for every item that remains unpaid and has been assessed but is not yet due and payable. No escrow
deposits or Escrow Payments or other charges or payments due Seller have been capitalized under the Mortgage or the Mortgage Note. All Mortgage Interest Rate adjustments have been made in compliance with state and federal law and the terms of the
related Mortgage Note. Any interest required to be paid pursuant to state, federal and local law has been properly paid and credited. 
  
 (cc) Conversion to Fixed Interest Rate. With respect to adjustable rate Mortgage Loans, the Mortgage Loan is not convertible to a fixed interest
rate Mortgage Loan. 
  
 (dd) Other Insurance Policies. No
action, inaction or event has occurred and no state of facts exists or has existed that has resulted or will result in the exclusion from, denial of, or defense to coverage under any applicable special hazard insurance policy, PMI Policy or
bankruptcy bond, irrespective of the cause of such failure of coverage. In connection with the placement of any such insurance, no commission, fee, or other compensation has been or will be received by Seller or by any officer, director, or employee
of Seller or any designee of Seller or any corporation in which Seller or any officer, director, or employee had a financial interest at the time of placement of such insurance. 
  
 (ee) Soldiers’ and Sailors’ Civil Relief Act. The Mortgagor has not notified Seller, and Seller has no
knowledge, of any relief requested or allowed to the Mortgagor under the Soldiers’ and Sailors’ Civil Relief Act of 1940. 
  
 (ff) Appraisal. The Mortgage File contains an appraisal of the related Mortgaged Property signed prior to the approval of the Mortgage Loan
application by a qualified appraiser, duly appointed by Seller, who had no interest, direct or indirect in the Mortgaged Property or in any loan made on the security thereof, and whose compensation is not affected by the approval or disapproval of
the Mortgage Loan, and the appraisal and appraiser both satisfy the requirements of Fannie Mae or Freddie Mac and Title XI of the Federal Institutions Reform, Recovery, and Enforcement Act of 1989 as amended and the regulations promulgated
thereunder, all as in effect on the date the Mortgage Loan was originated. 
  
 (gg) Disclosure Materials. The Mortgagor has executed a statement to the effect that the Mortgagor has received all disclosure materials required by applicable law with respect to the making of adjustable rate
mortgage loans, and Seller maintains such statement in the Mortgage File. 
  

 Schedule 1-8 

 (hh) Construction or Rehabilitation of Mortgaged Property. No Mortgage Loan was made in connection
with the construction or rehabilitation of a Mortgaged Property or facilitating the trade-in or exchange of a Mortgaged Property. 
  
 (ii) No Defense to Insurance Coverage. To the best of Seller’s knowledge, no action has been taken or failed to be taken, no event has
occurred and no state of facts exists or has existed on or prior to the Purchase Date which has resulted or will result in an exclusion from, denial of, or defense to coverage under any private mortgage insurance (including, without limitation, any
exclusions, denials or defenses which would limit or reduce the availability of the timely payment of the full amount of the loss otherwise due thereunder to the insured) whether arising out of actions, representations, errors, omissions,
negligence, or fraud of Seller, the related Mortgagor or any party involved in the application for such coverage, including the appraisal, plans and specifications and other exhibits or documents submitted therewith to the insurer under such
insurance policy, or for any other reason under such coverage, but not including the failure of such insurer to pay by reason of such insurer’s breach of such insurance policy or such insurer’s financial inability to pay. 
  
 (jj) Capitalization of Interest. The Mortgage Note does not by its
terms provide for the capitalization or forbearance of interest. 
  
 (kk) No Equity Participation. The indebtedness evidenced by the Mortgage Note is not convertible to an ownership interest in the Mortgaged Property or the Mortgagor and Seller has not financed nor does it own directly or indirectly,
any equity of any form in the Mortgaged Property or the Mortgagor. 
  
 (ll) Proceeds of Mortgage Loan. The proceeds of the Mortgage Loan have not been and shall not be used to satisfy, in whole or in part, any debt owed or owing by the Mortgagor to Seller or any Affiliate or correspondent of Seller.

  
 (mm) Origination Date. The origination date is no
earlier than sixty (60) days prior to the related Purchase Date. 
  
 (nn) No Exception. The Custodian has not noted any material exceptions on an Exception Report (as defined in the Custodial Agreement) with respect to the Mortgage Loan which would materially adversely affect the Mortgage Loan or
Buyer’s interest in the Mortgage Loan. 
  
 (oo) Mortgage
Submitted for Recordation. The Mortgage either has been or will promptly be submitted for recordation in the appropriate governmental recording office of the jurisdiction where the Mortgaged Property is located. 
  
 (pp) Documents Genuine. Such Purchased Mortgage Loan and all
accompanying collateral documents are complete and authentic and all signatures thereon are genuine. Such Purchased Mortgage Loan is a “closed” loan fully funded by Seller and held in Seller’s name. 
  
 (qq) Description. Each Purchased Mortgage Loan conforms to the
description thereof as set forth on the related Mortgage Loan Schedule delivered to the Custodian and Buyer. 
  

 Schedule 1-9 

 (rr) Located in U.S. No collateral (including, without limitation, the related real property and
the dwellings thereon) relating to a Purchased Mortgage Loan is located in any jurisdiction other than in one of the fifty (50) states of the United States of America or the District of Columbia. 
  
 (ss) Underwriting Guidelines. Each Purchased Mortgage Loan has been
originated or acquired by Seller in accordance with the Underwriting Guidelines (including all supplements or amendments thereto) previously provided to Buyer. 
  

(tt) Aging. Such Purchased Mortgage Loan has not been held by the Custodian on behalf of Buyer (either in its capacity as Buyer hereunder or as
a secured lender) for more than 180 days. 
  
 (uu) BPOs.
With respect to any Non-Performing Mortgage Loan that is 90 days or more delinquent in payment, Seller shall deliver a current broker’s price opinion on the 90th day of delinquency and every 6 months thereafter. 
  
 (vv) Committed Mortgage Loans. Each Committed Mortgage Loan is covered
by a Take-out Commitment, does not exceed the availability under such Take-out Commitment (taking into consideration mortgage loans which have been purchased by the respective Take-out Investor under the Take-out Commitment and mortgage loan which
Seller has identified to Buyer as covered by such Take-out Commitment) and conforms to the requirements and the specifications set forth in such Take-out Commitment and the related regulations, rules, requirements and/or handbooks of the applicable
Take-out Investor and is eligible for sale to and insurance or guaranty by, respectively the applicable Take-out Investor and applicable insurer. 
  
 Each Takeout Commitment is a legal, valid and binding obligation of Seller enforceable against it in accordance with its terms, subject to applicable
bankruptcy, insolvency and similar laws affecting creditors’ rights generally and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law). 
  
 (ww) Primary Mortgage Guaranty Insurance. If required under
Underwriting Guidelines, each Mortgage Loan is insured as to payment defaults by a policy of primary mortgage guaranty insurance in the amount required where applicable, and by an insurer approved, by the applicable Take-out Investor, if applicable,
and all provisions of such primary mortgage guaranty insurance have been and are being complied with, such policy is in full force and effect, and all premiums due thereunder have been paid. Each Mortgage Loan which is represented to Buyer to have,
or to be eligible for, FHA insurance is insured, or eligible to be insured, pursuant to the National Housing Act. Each Mortgage Loan which is represented by Seller to be guaranteed, or to be eligible for guaranty, by the VA is guaranteed, or
eligible to be guaranteed, under the provisions of Chapter 37 of Title 38 of the United States Code. As to each FHA insurance certificate or each VA guaranty certificate, Seller has complied with applicable provisions of the insurance for guaranty
contract and federal statutes and regulations, all premiums or other charges due in connection with such insurance or guarantee have been paid, there has been no act or omission which would or may invalidate any such insurance or guaranty, and the
insurance or guaranty is, or when issued, will be, in full force and effect with respect to 

  

 Schedule 1-10 

 
each Mortgage Loan. There are no defenses, counterclaims, or rights of setoff affecting the Mortgage Loans or affecting the validity or enforceability of any
private mortgage insurance or FHA insurance applicable to the Mortgage Loans or any VA guaranty with respect to the Mortgage Loans. 
  
 (xx) High Cost Mortgage Loans. The related Mortgagor has been provided with all disclosure materials required by Section 226.32 of the Federal
Reserve Board Regulation Z with respect to any Mortgage Loans subject to such Section of the Federal Reserve Board Regulation Z and has complied with the requirements of any federal, state or local law with respect to ‘high cost’,
‘threshold’ or ‘predatory’ loans. 
  
 (yy)
Manufactured Home Loans. In the case of any Manufactured Home Loan, (i) such Manufactured Home Loan conforms with the applicable Fannie Mae or Freddie Mac requirements regarding mortgage loans related to manufactured dwellings, (ii) the
related manufactured dwelling is permanently affixed to the land, (iii) the related manufactured dwelling and the related land are subject to a Mortgage properly filed in the appropriate public recording office and naming the Seller as mortgagee,
(iv) the applicable laws of the jurisdiction in which the related Mortgaged Property is located will deem the manufactured dwelling located on such Mortgaged Property to be a part of the real property on which such dwelling is located, and (v) such
Manufactured Home Loan is (x) a qualified mortgage under Section 860G(a)(3) of the Code and (y) secured by manufactured housing treated as a single family residence under Section 25(e)(10) of the Code. 
  

 Schedule 1-11 

 Annex I 
  
 Buyer Acting as Agent 
  
 This Annex I forms a part of the Master Repurchase Agreement dated as of August 17, 2001 (the “Agreement”) between Credit Suisse First
Boston Mortgage Capital LLC and WMC Mortgage Corp. This Annex I sets forth the terms and conditions governing all transactions in which a party selling assets or buying assets, as the case may be (“Agent”), in a Transaction is
acting as agent for one or more third parties (each, a “Principal”). Capitalized terms used but not defined in this Annex I shall have the meanings ascribed to them in the Agreement. 
  
 1. Additional Representations. Agent hereby makes the following
representations, which shall continue during the term of any Transaction: Principal has duly authorized Agent to execute and deliver the Agreement on its behalf, has the power to so authorize Agent and to enter into the Transactions contemplated by
the Agreement and to perform the obligations of Seller or Buyer, as the case may be, under such Transactions, and has taken all necessary action to authorize such execution and delivery by Agent and such performance by it. 
  
 2. Identification of Principals. Agent agrees (a) to provide the other
party, prior to the date on which the parties agree to enter into any Transaction under the Agreement, with a written list of Principals for which it intends to act as Agent (which list may be amended in writing from time to time with the consent of
the other party), and (b) to provide the other party, before the close of business on the next Business Day after orally agreeing to enter into a Transaction, with notice of the specific Principal or Principals for whom it is acting in connection
with such Transaction. If (i) Agent fails to identify such Principal or Principals prior to the close of business on such next Business Day or (ii) the other party shall determine in its sole discretion that any Principal or Principals identified by
Agent are not acceptable to it, the other party may reject and rescind any Transaction with such Principal or Principals, return to Agent any Repurchase Assets or portion of the Purchase Price, as the case may be, previously transferred to the other
party and refuse any further performance under such Transaction, and Agent shall immediately return to the other party any portion of the Purchase Price or Repurchase Assets, as the case may be, previously transferred to Agent in connection with
such Transaction; provided, however, that (A) the other party shall promptly (and in any event within one business day) notify Agent of its determination to reject and rescind such Transaction and (B) to the extent that any performance was
rendered by any party under any Transaction rejected by the other party, such party shall remain entitled to any Price Differential or other amounts that would have been payable to it with respect to such performance if such Transaction had not been
rejected. The other party acknowledges that Agent shall not have any obligation to provide it with confidential information regarding the financial status of its Principals; Agent agrees, however, that it will assist the other party in obtaining
from Agent’s Principals such information regarding the financial status of such Principals as the other party may reasonably request. 
  
 3. Limitation of Agent’s Liability. The parties expressly acknowledge that if the representations of Agent under the Agreement, including this
Annex I, are true and correct in 

  

 A-I-1 

 
all material respects during the term of any Transaction and Agent otherwise complies with the provisions of this Annex I, then (a) Agent’s obligations
under the Agreement shall not include a guarantee of performance by its Principal or Principals and (b) the other party’s remedies shall not include a right of setoff in respect of rights or obligations, if any, of Agent arising in other
transactions in which Agent is acting as principal. 
  
 4.
Multiple Principals. 
  

	 	(a)	In the event that Agent proposes to act for more than one Principal hereunder, Agent and the other party shall elect whether (i) to treat Transactions under the Agreement as
transactions entered into on behalf of separate Principals or (ii) to aggregate such Transactions as if they were transactions by a single Principal. Failure to make such an election in writing shall be deemed an election to treat Transactions under
the Agreement as transactions on behalf of separate Principals. 

  

	 	(b)	In the event that Agent and the other party elect (or are deemed to elect) to treat Transactions under the Agreement as transactions on behalf of separate Principals, the parties
agree that (i) Agent will provide the other party, together with the notice described in Section 2(b) of this Annex I, notice specifying the portion of each Transaction allocable to the account of each of the Principals for which it is acting (to
the extent that any such Transaction is allocable to the account of more than one Principal); (ii) the portion of any individual Transaction allocable to each Principal shall be deemed a separate Transaction under the Agreement; (iii) the margin
maintenance obligations of Seller under Section 6(a) of the Agreement shall be determined on a Transaction-by-Transaction basis (unless the parties agree to determine such obligations on a Principal-by-Principal basis); and (iv) Buyer’s and
Seller’s remedies under the Agreement upon the occurrence of an Event of Default shall be determined as if Agent had entered into a separate Agreement with the other party on behalf of each of its Principals. 

  

	 	(c)	In the event that Agent and the other party elect to treat Transactions under the Agreement as if they were transactions by a single Principal, the parties agree that (i)
Agent’s notice under Section 2(b) of this Annex I need only identify the names of its Principals but not the portion of each Transaction allocable to each Principal’s account; (ii) the margin maintenance obligations of Seller under Section
6(a) of the Agreement shall, subject to any greater requirement imposed by applicable law, be determined on an aggregate basis for all Transactions entered into by Agent on behalf of any Principal; and (iii) Buyer’s and Seller’s remedies
upon the occurrence of an Event of Default shall be determined as if all Principals were a single Seller or Buyer, as the case may be. 

  

	 	(d)	 Notwithstanding any other provision of the Agreement (including, without limitation, this Annex I), the parties agree that any Transactions by Agent 

  

 A-I-2 

	 	 
on behalf of an employee benefit plan under ERISA shall be treated as Transactions on behalf of separate Principals in accordance with Section 4(b) of this
Annex I (and all margin maintenance obligations of the parties shall be determined on a Transaction-by-Transaction basis). 

  
 5. Interpretation of Terms. All references to “Seller” or “Buyer”, as the case may be, in the Agreement shall, subject to the
provisions of this Annex I (including, among other provisions, the limitations on Agent’s liability in Section 3 of this Annex I), be construed to reflect that (i) each Principal shall have, in connection with any Transaction or Transactions
entered into by Agent on its behalf, the rights, responsibilities, privileges and obligations of a “Seller” or “Buyer”, as the case may be, directly entering into such Transaction or Transactions with the other
party under the Agreement, and (ii) Agent’s Principal or Principals have designated Agent as their sole agent for performance of Seller’s obligations to Buyer or Buyer’s obligations to Seller, as the case may be, and for receipt of
performance by Buyer of its obligations to Seller or Seller of its obligations to Buyer, as the case may be, in connection with any Transaction or Transactions under the Agreement (including, among other things, as Agent for each Principal in
connection with transfers of securities, cash or other property and as agent for giving and receiving all notices under the Agreement). Both Agent and its Principal or Principals shall be deemed “parties” to the Agreement and all
references to a “party” or “either party” in the Agreement shall be deemed revised accordingly. 
  

 A-I-3 

 Annex II 
  

Structure Fee Schedule 
  
 The Structure Fee shall be an amount equal to the product of (x) 0.10% per annum and (y) the Maximum Aggregate Purchase Price, payable quarterly in arrears.

  

 A-II-1 

 Annex III 
  

Non-Utilization Fee Formula 
  
 The Non-Utilization Fee for each calendar month shall be an amount equal to the product of (x) 0.125% per annum and (y) the excess of (I) $75,000,000 over
(II) the average daily balance of the Purchased Mortgage Loans during such calendar month. 
  

 A-III-1 

 EXHIBITS TO MASTER REPURCHASE AGREEMENT 
  

	A.	Form of Transaction Request 

  

	B.	Form of Purchase Confirmation 

  

	C.	Form of Mortgage Loan Schedule 

  

	D.	Officer’s Compliance Certificate 

  

	E.	Reserved 

  

	F.	Form of Opinion of Seller’s counsel 

  

	G.	Underwriting Guidelines 

  

	H.	Authorized Signatories of Seller 

  

	I.	Corporate Resolutions of Seller 

  

	J.	Seller’s Tax Identification Number 

  

	K.	Existing Credit Facilities 

  

	L.	Wet Ink Procedures 

  

	M.	Intentionally Omitted 

  

	N.	Custodial and Bank Fee Schedule 

  

	O.	Form of Servicer Notice 

 EXHIBIT A 
  
 FORM OF TRANSACTION REQUEST 
  
 [Date] 
  
 Credit Suisse First Boston Mortgage Capital LLC 
 Eleven Madison Avenue

 New York, New York 10010 
 Attention:
                     
  

	Re:	Master Repurchase Agreement dated as of                     
    , 200   (the “Master Repurchase Agreement”) by and among WMC Mortgage Corp. and Credit Suisse First Boston Mortgage Capital LLC 

  
 WMC Mortgage Corp. hereby requests that Credit Suisse First Boston Mortgage Capital LLC
(“CSFBMCL”) enter into a Transaction with respect to the Mortgage Loans listed on the Mortgage Loan Schedule attached hereto on Attachment 1 and as set forth below, pursuant to the Master Repurchase Agreement. 
  

			
	TOTAL NUMBER OF MORTGAGE LOANS	  	     Mortgage Loans – (See Mortgage Loan Schedule)
		
	ORIGINAL PRINCIPAL AMOUNT OF MORTGAGE LOANS:	  	 $

		
	CURRENT PRINCIPAL AMOUNT OF MORTGAGE LOANS:	  	 $

		
	PROPOSED PURCHASE PRICE:	  	 $

		
	AGGREGATE PURCHASE PRICE:	  	 $

		
	PROPOSED PURCHASE DATE:	  	 

  
 The Master Repurchase Agreement is
incorporated by reference into this Transaction Request and is made a part hereof as if it were fully set forth herein. (All capitalized terms used herein but not defined herein shall have the meanings specified in the Master Repurchase Agreement.)

  

			
	 WMC MORTGAGE CORP.

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

  
 [wire instructions] 
  

 A-1 

 EXHIBIT B 
  
 FORM OF PURCHASE CONFIRMATION 
  
 [Date] 
  
 WMC Mortgage Corp. 
 6320 Canoga Avenue 
 Woodland Hills, CA 91367 
  
 Attention: Anthony Miguel 
  
 Credit Suisse First
Boston Mortgage Capital LLC (“CSFBMCL”) is pleased to confirm your sale and our purchase of the Mortgage Loans described below and on the attached Mortgage Loan Schedule pursuant to the Master Repurchase Agreement dated as of
                         , 200   (the “Master Repurchase Agreement”) by and among WMC
Mortgage Corp. and Credit Suisse First Boston Mortgage Capital LLC under the following terms and conditions: 
  

			
	 Market Value
	  	 $

		
	 Current Principal Amount of Mortgage Loans
	  	 $

		
	 Aggregate Purchase Price:
	  	 $

		
	 Purchase Date:
	  	 
		
	 Repurchase Date:
	  	 
		
	 Pricing Rate:
	  	 
		
	 ADDITIONAL INFORMATION:
	  	 
		
	 Aggregate Purchase Price (date)
	  	 $

		
	 Less Previous Aggregate Purchase Price
	  	 $

		
	 Less Price Differential due on (date):
	  	 $

		
	 Net funds due [CSFB]/[Name] on (date):
	  	 $

  
 The Master Repurchase Agreement is
incorporated by reference into this Purchase Confirmation, is made a part hereof as if it were fully set forth herein and is extended hereby until all amounts due in connection with this Transaction are paid in full. 
  

 B-1 

 All capitalized terms used herein but not defined herein shall have the meanings specified in the Master Repurchase
Agreement. 
  

			
	CREDIT SUISSE FIRST BOSTON MORTGAGE
CAPITAL LLC
		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

  

			
	 WMC MORTGAGE CORP.

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

  

 B-2 

 EXHIBIT C 
  
 MORTGAGE LOAN SCHEDULE 
  
 MORTGAGE LOAN CHARACTERISTICS 
  

	1.	Seller’s Mortgage Loan identifying number; 

  

	2.	the Mortgagor’s and Co-Mortgagor’s name; 

  

	3.	the street address of the Mortgaged Property including the city, state, county, and the zip code; 

  

	4.	a code indicating whether the Mortgaged Property is a single family residence, a 2-4 family dwelling, a PUD, a townhouse or a unit in a high-rise or low-rise condominium project;

  

	5.	a code indicating the type of Mortgage Loan (e.g., Alt-A Mortgage Loan, etc.) 

  

	6.	the number of units for all Mortgaged Properties; 

  

	7.	a code indicating whether the loan is an adjustable rate, fixed rate or balloon Mortgage Loan; 

  

	8.	a code indicating whether the loan is a FHA, VA or conventional Mortgage Loan; 

  

	9.	a code indicating the lien status of the Mortgage Loan; 

  

	10.	the loan-to-value ratio at origination; 

  

	11.	the combined loan-to-value ratio at origination, if applicable; 

  

	12.	the Mortgage Interest Rate at the time of origination; 

  

	13.	the original principal amount of the Mortgage Loan; 

  

	14.	the Mortgage Loan purpose type; 

  

	15.	the Mortgagor’s and Co-Mortgagor’s FICO score; 

  

	16.	Mortgagor Social Security Number; 

  

	17.	co-Mortgagor Social Security Number. 

  

 C-1 

 EXHIBIT D 
  
 OFFICER’S COMPLIANCE CERTIFICATE 
  
 I,                     , do hereby certify that
I am duly elected, qualified and authorized officer of WMC Mortgage Corp. (“Seller”). This Certificate is delivered to you in connection with Section 16(b) of the Master Repurchase Agreement dated as of August 17, 2001, among Seller, and
Credit Suisse First Boston Mortgage Capital LLC (the “Agreement”). On behalf of WMC Mortgage Corp., I hereby certify that, as of the date of the financial statements attached hereto and as of the date hereof, Seller is and has been in
compliance with all the terms of the Agreement and, without limiting the generality of the foregoing, I certify that: 
  
 (1) Consolidated Tangible Net Worth. For each fiscal quarter commencing after December 31, 2000, Seller has maintained a
Consolidated Tangible Net Worth of at least $40,000,000. 
  
 (2) Non-Warehouse Debt to Consolidated Tangible Net Worth Ratio. For each fiscal quarter commencing after December 31, 2000, Seller’s ratio of Indebtedness (excluding warehouse indebtedness as set forth on
the Seller’s financial statements) to Consolidated Tangible Net Worth has not exceeded 2:1. 
  
 (3) Total Indebtedness to Consolidated Tangible Net Worth Ratio. For each fiscal quarter commencing after December 31, 2000,
Seller’s leverage ratio of total Indebtedness to Consolidated Tangible Net Worth has not exceeded 12:1. 
  
 (4) Interest Coverage Ratio. For each fiscal quarter commencing after June 30, 2001, the ratio of Seller’s Consolidated EBITDA
to Seller’s Consolidated Interest Expenses has not been less than 1.05:1. 
  
 (5) Maintenance of Profitability. For each fiscal quarter commencing after June 30, 2001, Net Income of Seller (excluding for
purposes of this covenant, any amounts with respect to WMC Residco Inc.) before income taxes and distributions shall not be less than $1.00. 
  
 (6) Seller or its Affiliates, will continue to maintain, for Seller and it subsidiaries, insurance coverage with respect to employee
dishonesty, forgery or alteration, theft, disappearance and destruction, robbery and safe burglary, property (other than money and securities) and computer fraud or an aggregate amount of at least $5 million. The actual amount of such coverage is
$            . 
  
 (7) Seller has observed or performed in all material respects all of its covenants and other agreements, and satisfied every condition,
contained in the Agreement and the other Repurchase Documents to be observed, performed and satisfied by it. 
  

 D-1 

 (8) No Default or Event of Default has occurred or is continuing. [If any Default or
Event of Default has occurred and is continuing, Seller shall describe the same in reasonable detail and describe the action the Seller has taken or proposes to take with respect thereto.] 
  

 D-2 

 IN WITNESS WHEREOF, I have set my hand this      day of
                    ,             . 
  

			
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  

 D-3 

 EXHIBIT E 
  
 RESERVED 
  

 E-1 

 EXHIBIT F 
  
 FORM OF OPINION OF SELLER’S COUNSEL 
  
                 ,
             
  
 Credit Suisse First Boston Mortgage Capital LLC 
 Eleven Madison Avenue 
 New York, New York 10010 
  
 Ladies and Gentlemen: 
  
 We have acted as
counsel to WMC Mortgage Corp. (the “Seller”) in connection with the sale and repurchase by Seller of certain loans (the “Mortgage Loans”) purchased from time to time (each such date, a “Purchase
Date”) by Credit Suisse First Boston Mortgage Capital LLC (the “Buyer”) pursuant to a Master Repurchase Agreement, dated as of
                     [[            ]], 200  , among Seller
and Buyer (the “Master Repurchase Agreement”). Capitalized terms used but not defined herein shall have the meanings set forth in the Master Repurchase Agreement. 
  
 We have acted as counsel to Seller in connection with the preparation, execution and delivery of, and the initial purchase of Mortgage Loans
made under, the Master Repurchase Agreement. 
  
 In connection with rendering this
opinion, we have examined the following documents and such other documents as we have deemed necessary or advisable: 
  
 a. The Program Agreements; 
  
 b. The organizational documents of Seller and [Name]; 
  
 c. The certified Consents of the Officer of Seller and [Name] relating to the transactions provided for in the Program Agreements; 
  
 d. A copy of a UCC-1 financing statement relating to the Purchased Mortgage Loans executed by Seller as debtor naming Buyer as secured party, which UCC-1 financing
Statement will be filed under the Uniform Commercial Code as in effect in the State of                      with the Clerk of
             (the “Filing Office”) on or about                  
        , 20     (the “Form UCC-1”); 
  
 e. The reports attached hereto as Exhibit A (the “Search Reports”), which set forth the results of examination conducted by [Federal Research
Corporation] of all currently indexed UCC-1 financing statements naming the Company as debtor that are on file in the Filing Office and the Office of the Secretary of the State of
            ; 
  
 f. Good standing certificates, as of a recent date, for Seller and [Name] from each of the States listed on Schedule 1 attached hereto; and 
  

 F-1 

 g. The certificates, letters and opinions required to be furnished by Seller, [Name] and others in connection with the
execution of the Program Agreements, and the additional certificates, letter and documents delivered by or on behalf of such parties concurrently herewith. 
  
 For purposes of the opinions expressed below, we have assumed the authenticity of all documents submitted to us as originals, the genuineness of all signatures, the legal
capacity of natural persons and the conformity to the originals of all documents. 
  
 Based solely upon the foregoing, we are of the opinion that: 
  
 1.
Seller is a corporation, duly organized, validly existing and in good standing under the laws of the State of [[            ]], and has the corporate power and authority to own its
properties and transact the business in which it is engaged. Seller is duly qualified as a foreign [[            ]] to transact business in, and is in good standing under, the laws
of each state in which a mortgaged property is located or is otherwise exempt under applicable law from such qualification. The principal place of business of Seller is located at
                    . 
  
 2. Seller has the power to engage in the transactions contemplated by the Program Agreements, and has all requisite power, authority and legal right to execute and
deliver the Program Agreements, to transfer and deliver the Mortgage Loans and to perform and observe the terms and conditions of the Program Agreements. Seller has the power, authority and legal right to issue and deliver the Guaranty and to
perform and observe the terms and conditions thereof. 
  
 4. The Program
Agreements have been duly and validly authorized, executed and delivered by Seller, as applicable, and are valid, legal and binding agreements, enforceable against Seller in accordance with their respective terms, subject to the effect of
bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the enforcement of creditors’ rights generally, none of which will materially interfere with the realization of the benefits provided thereunder
or with Buyer’s ownership of the Mortgage Loans. 
  
 5. No consent, approval,
authorization or order of any court or governmental agency or body is required for the execution, delivery and performance by either Seller of, or compliance by such entity with, the Program Agreements, or the transfer of the Mortgage Loans or the
consummation of the transactions contemplated by the Program Agreements. 
  
 6.
Neither the transfer or delivery of the Mortgage Loans, nor the consummation of any other of the transactions contemplated in the Program Agreements, nor the fulfillment of the terms of the Program Agreements will result in a breach of or
constitutes or will constitute a default under (a) the charter or by-laws of either of Seller, or the terms of any material indenture or other agreement or instrument to which either Seller is a party or by which it is bound or to which it is
subject, (b) any contractual or legal restriction contained in any indenture, mortgage, deed of trust, agreement, instrument or other similar document to which Seller is a party or by which it is bound or to which it is subject, or (c) any statute
or order, rule, regulation, writ, injunction or decree of any court, governmental authority or regulatory body to which either Seller or any of its properties is subject or by which it is bound. 
  
 7. There are no actions, suits, proceedings or investigations pending or, to the best of our
knowledge, threatened against Seller that, in our judgment, either in any one instance or in the 

  

 F-2 

 
aggregate, may result in any material adverse change in the business, operations, financial condition, properties or assets of Seller or in any material
impairment of the right or ability of Seller to carry on its business substantially as now conducted or in any material liability on the part of Seller that would draw into question the validity of the Program Agreements, or of any action taken or
to be taken in connection with the transactions contemplated thereby, or that would be likely to impair materially the ability of Seller to perform under the terms of, the Program Agreements. 
  
 8. The conveyance of each Mortgage Loan as and in the manner contemplated by the Program
Agreements is sufficient fully to transfer to Buyer all right, title and interest of Seller thereto as owner, noteholder and mortgagee. 
  
 9. The Repurchase Agreement is effective to create, in favor of Buyer, either a valid sale of the Repurchase Assets to Buyer or a valid security interest under the
Uniform Commercial Code in all of the right, title and interest of Seller in, to and under the Repurchase Assets as collateral security for the payment of Seller’s obligations under the Repurchase Agreement, except that (a) such security
interests will continue in Repurchase Assets after its sale, exchange or other disposition only to the extent provided in Section 9-306 of the Uniform Commercial Code, (b) the security interests in Repurchase Assets in which Seller acquires rights
after the commencement of a case under the Bankruptcy Code in respect of Seller may be limited by Section 552 of the Bankruptcy Code. 
  
 10. When the Mortgage Notes are delivered to the Custodian, endorsed in blank by a duly authorized officer of Seller, the security interest referred to in Section 9 above
in the Mortgage Notes will constitute a fully perfected first priority security interest in all right, title and interest of Seller therein. 
  

	11.	(a) Upon the filing of financing statements on Form UCC-1 naming Buyer as “Secured Party” and Seller as “Debtor”, and describing the Repurchase Assets, in the
jurisdictions and recording offices listed on Schedule 1 attached hereto, the security interests referred to in Section 6 above will constitute fully perfected security interests under the Uniform Commercial Code in all right, title and interest of
Seller in, to and under such Repurchase Assets, which can be perfected by filing under the Uniform Commercial Code, or, will demonstrate a completion of the sale of the Mortgage Loans to Buyer. 

  
 (b) The UCC Search Report sets forth the proper filing offices and the
proper debtors necessary to identify those Persons who have on file in the jurisdictions listed on Schedule 1 financing statements covering the Repurchase Assets as of the dates and times specified on Schedule 2. The UCC Search Report identifies no
Person who has filed in any Filing Office a financing statement describing the Repurchased Assets prior to the effective dates of the UCC Search Report. 
  
 12. Seller is not an “investment company”, or a company “controlled” by an “investment company,” within the meaning of the Investment
Company Act of 1940, as amended. 
  

 F-3 

			
	 Very truly yours,

	
	  

  

 F-4 

 EXHIBIT G 
  
 UNDERWRITING GUIDELINES 
  

 G-1 

 EXHIBIT H 
  
 AUTHORIZED SIGNATORIES 
  

			
	 Seller

  

 H-1 

 EXHIBIT I 
  
 CORPORATE RESOLUTIONS OF SELLER 
  

 I-1 

 EXHIBIT J 
  
 SELLER’S TAX IDENTIFICATION NUMBER 
  
 Seller’s tax identification number is 95-2021917 
  

 J-1 

 EXHIBIT K 
  
 EXISTING CREDIT FACILITIES 
  

 K-1 

 EXHIBIT L 
  
 WET INK PROCEDURES 
  

 L-1 

 EXHIBIT M 
  
 INTENTIONALLY OMITTED 
  

 M-1 

 EXHIBIT N 
  
 CUSTODIAL AND BANK FEE SCHEDULE 
  

 N-1 

 EXHIBIT O 
  
 FORM OF SERVICER NOTICE 
  
 August     , 2001 
  
 Fairbanks Capital Corp., as Servicer 
 [ADDRESS] 
 Attention:
                         
  

	 	Re:	Master Repurchase Agreement, dated as of August 17, 2001 (the “Repurchase Agreement”), by and between WMC Mortgage Corp. (the “Seller”) and Credit
Suisse First Boston Mortgage Capital LLC (the “Buyer”). 

  
 Ladies and Gentlemen: 
  
 Fairbanks Capital Corp. (the “Servicer”) is servicing certain mortgage loans for the Seller pursuant to that certain Servicing Agreement between the
Servicer and the Seller. Pursuant to the Repurchase Agreement between the Buyer and the Seller, the Servicer is hereby notified that the Seller has pledged to the Buyer certain mortgage loans which are serviced by Servicer which are subject to a
security interest in favor of the Buyer. 
  
 Upon receipt of a Notice of Event of
Default from the Buyer in which the Buyer shall identify the mortgage loans which are then pledged to Buyer under the Repurchase Agreement (the “Mortgage Loans”), the Servicer shall segregate all amounts collected on account of such
Mortgage Loans, hold them in trust for the sole and exclusive benefit of the Buyer, and remit such collections in accordance with the Buyer’s written instructions. Following such Notice of Event of Default, Servicer shall follow the
instructions of Buyer with respect to the Mortgage Loans, and shall deliver to Buyer any information with respect to the Mortgage Loans reasonably requested by Buyer. 
  
 Notwithstanding any contrary information which may be delivered to the Servicer by the Seller, the Servicer may conclusively rely on any
information or Notice of Event of Default delivered by the Buyer. 
  

 O-2 

 Please acknowledge receipt of this instruction letter by signing in the signature block below and forwarding an executed
copy to the Buyer promptly upon receipt. Any notices to the Buyer should be delivered to the following addresses: 302 Carnegie Center, 2nd Floor, Princeton, New Jersey 08540; Attention: Mr. Gary Timmerman and Ms. Terry Farley; Telephone:; Facsimile:; with a copy to Eleven Madison Avenue, New York, New York 10010; Attention: Legal Department; Telephone:;
Facsimile:. 
  

			
	 Very truly yours,

	
	 WMC MORTGAGE CORP.

		
	 By:
	 	  

	 Name:

	 Title:

  
 ACKNOWLEDGED: 
  
 FAIRBANKS CAPITAL CORP. 
       as Servicer 
  

			
	 By:
	 	  

	 	 	 Title:

	 	 	 Telephone:

	 	 	 Facsimile:

  

 O-2 

 AMENDMENT NO. 1 
 TO MASTER REPURCHASE AGREEMENT 
  
 Amendment No. 1, dated as of February 13, 2002 (this “Amendment”), between CREDIT SUISSE FIRST BOSTON MORTGAGE CAPITAL LLC (the “Buyer”) and WMC MORTGAGE CORP. (the “Seller”). 

 
 RECITALS 
  
 The Buyer and the Seller are parties to that certain Master Repurchase
Agreement, dated as of August 17, 2001 (the “Existing Master Repurchase Agreement”; as amended by this Amendment, the “Master Repurchase Agreement”). Capitalized terms used but not otherwise defined herein shall
have the meanings given to them in the Existing Master Repurchase Agreement. 
  
 The Buyer and the Seller have agreed, subject to the terms and conditions of this Amendment, that the Existing Master Repurchase Agreement be amended to reflect certain agreed upon revisions to the terms of the
Existing Master Repurchase Agreement. 
  
 Accordingly, the Buyer
and the Seller hereby agree, in consideration of the mutual premises and mutual obligations set forth herein, that the Existing Master Repurchase Agreement is hereby amended as follows: 
  
 SECTION 1. Definitions. 
  
 (a) Section 2 of the Existing Repurchase Agreement is hereby temporarily amended by adding the following defined the, which amendment shall be effective
solely during the Increased Maximum Aggregate Purchase Price Period (as defined below): 
  
 ““Increased Maximum Aggregate Purchase Price Period” shall mean the period beginning on the date hereof through and including April 1, 2002.” 
  
 (b) Section 2 of the Existing Repurchase Agreement is hereby temporarily
amended by deleting the definition of “Maximum Aggregate Purchase Price” in its entirety and replacing it with the following language, which amendment shall be effective solely during the Increased Maximum Aggregate Purchase Price Period:

  
 ““Maximum Aggregate Purchase Price”
means ONE HUNDRED SEVENTY FIVE MILLION DOLLARS ($175,000,000).” 
  
 SECTION 2. Program; Initiation. Section 3 of the Existing Master Repurchase Agreement is hereby amended by inserting the following language at the end of subclause (b): 
  
 “In the event the Mortgage Loan Schedule provided by Seller contains erroneous computer data, is not formatted properly
or the computer fields are otherwise improperly aligned, Buyer shall provide written or electronic notice to Seller describing such error and Seller may either (i) give Buyer written or electronic authority to correct the computer data, reformat
such 

 
Mortgage Loan Schedule or properly align the computer fields or (ii) correct the computer data, reformat the Mortgage Loan Schedule or properly align the
computer fields itself and resubmit the Mortgage Loan Schedule as required herein. In the event that Seller gives Buyer authority to correct the computer data, reformat the Mortgage Loan Schedule or properly align the computer fields, Seller shall
pay $10 per change and any other direct expenses incurred by Buyer. Seller shall hold Buyer harmless for such correction, reformatting or realigning, as applicable, except as otherwise expressly provided herein. In the event that such changes to a
Mortgage Loan Schedule have been made prior to the date of this Amendment, the terms hereof shall also govern such changes.” 
  
 SECTION 3. Limited Effect. Except as expressly amended and modified by this Amendment, the Existing Master Repurchase Agreement shall continue to
be, and shall remain, in full force and effect in accordance with its terms. 
  
 SECTION 4. Counterparts. This Amendment may be executed by each of the parties hereto on any number of separate counterparts, each of which shall be an original and all of which taken together shall constitute
one and the same instrument. 
  
 SECTION 5. GOVERNING
LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO THE CHOICE OF LAW PROVISIONS THEREOF. 
  
 IN WITNESS WHEREOF, the parties have caused their names to be signed hereto by their respective officers thereunto duly
authorized as of the day and year first above written. 
  

									
	 Buyer:
	 	 	 	 CREDIT SUISSE FIRST BOSTON MORTGAGE CAPITAL LLC,
 as Buyer

					
	 	 	 	 	 	 	By:	 	 /s/    JEFF DETWILER

	 	 	 	 	 	 	 	 	 Name: Jeff Detwiler

	 	 	 	 	 	 	 	 	 Title:

			
	 Seller:
	 	 	 	 WMC MORTGAGE CORP.,
 as
Seller

					
	 	 	 	 	 	 	By:	 	 /s/ David Trzcinski

	 	 	 	 	 	 	 	 	 Name: David Trzcinski

	 	 	 	 	 	 	 	 	 Title: Chief Financial Officer

  

 -2- 

 AMENDMENT NO. 2 
 TO MASTER REPURCHASE AGREEMENT 
  
 Amendment No. 2, dated as of August 16, 2002 (this “Amendment”), between CREDIT SUISSE FIRST BOSTON MORTGAGE CAPITAL LLC (the “Buyer”) and WMC MORTGAGE CORP. (the “Seller”). 
  
 RECITALS 
  
 The Buyer and the Seller are parties to that certain Master Repurchase Agreement, dated as of August 17, 2001, as amended by
Amendment No. 1 dated as of February 12, 2002 (the “Existing Master Repurchase Agreement”; as amended by this Amendment, the “Master Repurchase Agreement”). Capitalized terms used but not otherwise defined herein
shall have the meanings given to them in the Existing Master Repurchase Agreement. 
  
 The Buyer and the Seller have agreed, subject to the terms and conditions of this Amendment, that the Existing Master Repurchase Agreement be amended to reflect certain agreed upon revisions to the terms of the
Existing Master Repurchase Agreement. 
  
 Accordingly, the Buyer
and the Seller hereby agree, in consideration of the mutual premises and mutual obligations set forth herein, that the Existing Master Repurchase Agreement is hereby amended as follows: 
  
 SECTION 1. Definitions. 
  
 (a) The definition of “Maximum Aggregate Purchase Price” is hereby amended by deleting it in its entirety and replacing it with the following:

  
 “Maximum Aggregate Purchase Price” means TWO
HUNDRED MILLION DOLLARS ($200,000,000). 
  
 (b) The definition of
“Termination Date” is hereby amended by deleting in its entirety and replacing it with the following: 
  
 “Termination Date” means the earlier of (a) August 30, 2002, (b) the date of the occurrence of an Event of Default unless waived by Buyer
in writing, or (c) such other date as provided in Section 21(b) hereof. 
  
 SECTION 2. Limited Effect. Except as expressly amended and modified by this Amendment, the Existing Master Repurchase Agreement shall continue to be, and shall remain, in full force and effect in accordance with its terms.

  
 SECTION 3. Counterparts. This Amendment may be executed
by each of the parties hereto on any number of separate counterparts, each of which shall be an original and all of which taken together shall constitute one and the same instrument. 

 SECTION 4. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO THE CHOICE OF LAW PROVISIONS THEREOF. 
  
 IN WITNESS WHEREOF, the parties have caused their names to be signed hereto by their respective officers thereunto duly authorized as of the day and year
first above written. 
  

									
	 Buyer:
	 	 	 	 CREDIT SUISSE FIRST BOSTON MORTGAGE CAPITAL LLC,
 as Buyer

					
	 	 	 	 	 	 	By:	 	 /s/    JEFF DETWILER

	 	 	 	 	 	 	 	 	 Name: Jeff Detwiler

	 	 	 	 	 	 	 	 	 Title:

			
	 Seller:
	 	 	 	 WMC MORTGAGE CORP.,
 as
Seller

					
	 	 	 	 	 	 	 By:
	 	 /s/ David Trzcinski

	 	 	 	 	 	 	 	 	 Name: David Trzcinski

	 	 	 	 	 	 	 	 	 Title: Chief Financial Officer

  

 -2- 

 EXECUTION VERSION 
  
 AMENDMENT NO. 3 
 TO MASTER REPURCHASE AGREEMENT 
  
 Amendment No.
3, dated as of August 30, 2002 (this “Amendment”), among CREDIT SUISSE FIRST BOSTON MORTGAGE CAPITAL LLC (the “Buyer”) and WMC MORTGAGE CORP. (the “Seller”). 
  
 RECITALS 
  
 The Buyer and the Seller are parties to that certain Master Repurchase Agreement, dated as of August 17, 2001, as amended by
Amendment No. 1 dated as of February 13, 2002 and Amendment No. 2 dated as of August 16, 2002 (the “Existing Master Repurchase Agreement”; as amended by this Amendment, the “Master Repurchase Agreement”).
Capitalized terms used but not otherwise defined herein shall have the meanings given to them in the Existing Master Repurchase Agreement. 
  
 The Buyer and the Seller have agreed, subject to the terms and conditions of this Amendment, that the Existing Master Repurchase Agreement be amended to
reflect certain agreed upon revisions to the terms of the Existing Master Repurchase Agreement. 
  
 Accordingly, the Buyer and the Seller hereby agree, in consideration of the mutual premises and mutual obligations set forth herein, that the Existing
Master Repurchase Agreement is hereby amended as follows: 
  
 SECTION 1. Applicability. Section 1 of the Existing Master Repurchase Agreement is hereby amended by deleting it in its entirety and replacing it with the following language: 
  
 “From time to time the parties hereto may enter into transactions in
which Seller agrees to transfer to Buyer Mortgage Loans (as hereinafter defined) against the transfer of funds by Buyer, with a simultaneous agreement by Buyer to transfer to Seller such Mortgage Loans at a date certain or on demand, against the
transfer of funds by Seller. This Agreement is a commitment by Buyer to engage in the Transactions as set forth herein up to the Maximum Committed Purchase Price; provided, that the Buyer shall have no commitment to enter into any Transaction
requested which would result in the aggregate Purchase Price of then outstanding Transactions to exceed the Maximum Committed Purchase Price. Each such transaction shall be referred to herein as a “Transaction” and, unless otherwise
agreed in writing, shall be governed by this Agreement, including any supplemental terms or conditions contained in any annexes identified herein, as applicable hereunder.” 
  
 SECTION 2. Definitions. Section 2 of the Existing Master Repurchase Agreement is hereby amended as follows:

  
 (a) By inserting the following language at
the beginning thereof: 
  
 “All capitalized terms used
herein but not defined shall have the meanings set forth in the Custodial Agreement.” 

 (b) The definition of “Act of Insolvency” is hereby amended by deleting it in
its entirety and replacing it with the following: 
  
 “Act of Insolvency” means, with respect to any Person, (i) the filing of a petition, commencing, or authorizing the commencement of any case or proceeding, or the voluntary joining of any case or proceeding under any
bankruptcy, insolvency, reorganization, liquidation, dissolution or similar law relating to the protection of creditors, or suffering any such petition or proceeding to be commenced by another which is consented to, not timely contested or results
in entry of an order for relief; (ii) the seeking of the appointment of a receiver, trustee, custodian or similar official for such Person or any substantial part of the property of such Person; (iii) the appointment of a receiver, conservator, or
manager for such Person by any governmental agency or authority having the jurisdiction to do so; (iv) the making or offering by such Person of a composition with its creditors or a general assignment for the benefit of creditors; (v) the admission
by such Person of its inability to pay its debts or discharge its obligations generally as they become due or mature; or (vi) that any governmental authority or agency or any person, agency or entity acting or purporting to act under governmental
authority shall have taken any action to condemn, seize or appropriate, or to assume custody or control of, all or any substantial part of the property of such Person, or shall have taken any action to displace the management of such Person or to
curtail its authority in the conduct of the business of such Person. 
  
 (c) The definition of “Alt A Mortgage Loan” is hereby amended by deleting it in its entirety and replacing it with the following: 
  
 “Alt A Mortgage Loan” means a first lien Mortgage Loan originated in accordance with the criteria
established by Buyer for Alt-A Mortgage Loans, as determined by Buyer in its sole discretion and which has a FICO score of at least 600. 
  
 (d) The definition of “Exception Mortgage Loan” is hereby amended by adding the following language at the end of the first
sentence thereof: 
  
 “; provided, however, that Seller
shall pay to Buyer a fee of $25 with respect to any such approval of an Exception Mortgage Loan other than a Wet-Ink Mortgage Loan and $10 with respect to any such approval of an Exception Mortgage Loan which is a Wet-Ink Mortgage Loan
provided, that upon 30 days’ notice to the Sellers, Buyer may change such Exception Mortgage Loan approval fee.” 
  
 (e) The definition of “Market Value” is hereby amended by deleting it in its entirety and replacing it with the following:

  
 “Market Value” means with respect to any
Purchased Mortgage Loan as of any date (including any date on which the Seller notifies the Buyer that a Take-out Investor has rejected such Mortgage Loan), the whole-loan servicing released fair market value of such Purchased Mortgage Loan on such
date as determined by Buyer (or an Affiliate thereof) in its good-faith discretion. Without limiting the generality of the foregoing, Seller acknowledges that the Market Value of a Purchased Mortgage Loan may be reduced to zero by Buyer if:

  
 (i) there exists a breach of a
representation, warranty or covenant made by Seller in this Agreement with respect to such Purchased Mortgage Loan 

  

 2 

 
that materially and adversely affects the value of such Purchased Mortgage Loan or Buyer’s interest in such Purchased Mortgage Loan and which breach has
not been cured; 
  
 (ii) the Purchased Mortgage
Loan has been released from the possession of the Custodian under the Custodial Agreement (other than to a Take-out Investor pursuant to a Bailee Letter) for a period in excess of fourteen (14) calendar days; 
  
 (iii) the Purchased Mortgage Loan has been released from the
possession of the Custodian under the Custodial Agreement to a Take-out Investor pursuant to a Bailee Letter for a period in excess of 45 calendar days; 
  
 (iv) the Purchased Mortgage Loan has been subject to a Transaction for a period of greater than (a) ninety (90) days (unless the Mortgage
Loan is an Aged Loan) or (b) one hundred eighty (180) days with respect to each Aged Loan; 
  
 (v) the Purchased Mortgage Loan is a Non-Performing Mortgage Loan for which any payment of principal or interest is more than two hundred
and seventy (270) days past due; 
  
 (vi) such
Purchased Mortgage Loan is a Wet-Ink Mortgage Loan for which the Mortgage File has not been delivered to the Custodian on or prior to the eighth Business Day after the related Purchase Date; 
  
 (vii) when the Purchase Price of such Purchased Mortgage
Loan is added to the Purchase Price of other Purchased Mortgage Loans, the aggregate Purchase Price of all Second Lien Mortgage Loans that are Purchased Mortgage Loans exceeds $50,000,000; 
  
 (viii) when the Purchase Price of such Purchased Mortgage
Loan is added to the Purchase Price of other Purchased Mortgage Loans, the aggregate Purchase Price of all Aged Loans that are Purchased Mortgage Loans exceeds $30,000,000; 
  
 (ix) when the Purchase Price for such Purchased Mortgage Loan is added to other Purchased Mortgage Loans,
the aggregate Purchase Price of all Wet-Ink Mortgage Loans that are Purchased Mortgage Loans exceeds 35% of the Maximum Aggregate Purchase Price; 
  
 (x) when the Purchase Price of such Purchased Mortgage Loan is added to the Purchase Price of other Purchased Mortgage Loans, the
aggregate Purchase Price of all Delinquent Mortgage Loans that are Purchased Mortgage Loans exceeds $15,000,000; 
  
 (xi) when the Purchase Price of such Purchased Mortgage Loan is added to the Purchase Price of other Purchased Mortgage Loans, the
aggregate Purchase Price of all Non-Performing Mortgage Loans that are Purchased Mortgage Loans exceeds $10,000,000; 
  

 3 

 (xii) when the Purchase Price of such Purchased Mortgage Loan is added to the Purchase
Price of other Purchased Mortgage Loans, the aggregate Purchase Price of all Wet-Ink Mortgage Loans with a single Settlement Agent that are Purchased Mortgage Loans exceeds $3,000,000 (unless consented to in writing by the Buyer); or 
  
 (xiii) when the Purchase Price of such Purchased Mortgage
Loan is added to the Purchase Price of other Purchased Mortgage Loans, the aggregate Purchase Price of all Manufactured Home Loans that are Purchased Mortgage Loans exceeds $3,000,000. 
  
 (f) The definition of “Maximum Aggregate Purchase Price” is hereby amended by deleting it in its
entirety and replacing it with the following: 
  
 “Maximum Aggregate Purchase Price” means THREE HUNDRED MILLION DOLLARS ($300,000,000). 
  
 (g) The definition of “Pricing Rate” is hereby amended by deleting it in its entirety and replacing it with the following:

  
 “Pricing Rate” means LIBOR
plus: 
  
 (a) 1.125% with respect to Transactions
the subject of which are Conforming Mortgage Loans, Jumbo Mortgage Loans or Alt-A Mortgage Loans (other than Aged Loans, Wet-Ink Mortgage Loans or Non-Performing Mortgage Loans); 
  
 (b) 1.125% with respect to Transactions the subject of which are Sub-Prime Mortgage Loans (other than Aged
Loans, Wet-Ink Mortgage Loans or Non-Performing Mortgage Loans); 
  
 (c) 1.25% with respect to Transactions the subject of which are Aged 120 Day Loans (other than Non-Performing Mortgage Loans); 
  

(d) 1.25% with respect to Transactions the subject of which are Second Lien Mortgage Loans (other than Aged Loans, Wet-Ink Mortgage
Loans or Non-Performing Mortgage Loans); 
  
 (e)
1.375% with respect to Transactions the subject of which are Aged 150 Day Loans (other than Non-Performing Mortgage Loans); 
  
 (f) 1.375% with respect to Transactions the subject of which are Wet-Ink Mortgage Loans; 
  

 4 

 (g) 1.50% with respect to Transactions the subject of which are Aged 180 Day Loans; and

  
 (h) 1.50% with respect to Transactions the
subject of which are Non-Performing Mortgage Loans. 
  
 The
Pricing Rate shall change in accordance with LIBOR, as provided in Section 5(a); provided, that in the event the daily average aggregate Purchase Price of all Purchased Mortgage Loans subject to Transactions hereunder exceeds the Pricing Rate
Reduction Threshold in a calendar month, the Pricing Rate for all Transactions that exceed the Pricing Rate Reduction Threshold shall be reduced by 0.20% for such calendar month, which reduction shall be applied to the weighted average Pricing Rate
and shall be reflected in the Price Differential due on the next succeeding Price Differential Payment Date. 
  
 (h) The definition of “Post Default Rate” is hereby amended by deleting it in its entirety and replacing it with the following:

  
 “Post Default Rate” means an annual rate of
interest equal to the greater of (a) the Pricing Rate plus 3% or (b) the Mortgage Interest Rate. 
  
 (i) The definition of “Purchase Price” is hereby amended by deleting it in its entirety and replacing it with the following:

  
 “Purchase Price” means the price at which
each Purchased Mortgage Loan is transferred by Seller to Buyer, which shall equal: 
  
 (i) on the Purchase Date, in the case of Purchased Mortgage Loans which are Conforming Mortgage Loans, Alt-A Mortgage Loans, Jumbo Mortgage Loans, Sub-Prime Mortgage Loans or Second Lien Mortgage Loans, the lesser of
either: (x) the product of (1) the Market Value of such Purchased Mortgage Loan multiplied by (2) the applicable Purchase Price Percentage for such Mortgage Loan or (y) the outstanding principal amount thereof as set forth on the related Mortgage
Loan Schedule; 
  
 (ii) on the Purchase Date, in the case of
Purchased Mortgage Loans which are Aged 120 Day Loans, the lesser of either (x) the product of (1) the Market Value of such Purchased Mortgage Loan multiplied by (2) the applicable Purchase Price Percentage for such Mortgage Loan or (y) the original
Purchase Price for such Purchased Mortgage Loan prior to it becoming an Aged 120 Day Loan; 
  
 (iii) on the Purchase Date, in the case of Purchased Mortgage Loans which are Aged 150 Day Loans, Aged 180 Day Loans or Non-Performing Mortgage Loans, the lesser of either (x) the product of (1) the Market Value of
such Purchased Mortgage Loan multiplied by (2) the applicable Purchase Price Percentage for such Mortgage Loan; or (y) the product of (1) the Principal Balance Percentage of such Purchased Mortgage Loan multiplied by (2) the outstanding principal
balance of such Mortgage Loan ; and 
  
 (iv) on any day after the
Purchase Date, except where Buyer and the Seller agree otherwise, the amount determined under the immediately preceding clauses (i) or (ii) decreased 

  

 5 

 
by the amount of any cash transferred by the Seller to Buyer pursuant to Section 4(c) hereof or applied to reduce the Seller’s obligations under clause
(ii) of Section 4(b) hereof or under Section 6 hereof. 
  
 (j) The definition of “Repurchase Assets” is hereby amended by deleting it in its entirety and replacing it with the following: 
  
 “Repurchase Assets” has the meaning assigned thereto in Section 8 hereof; provided however, Repurchase Assets shall not include any
portion of Seller’s web site (currently located at the URL http://www.wmcdirect.com), Seller’s non-prime or sub-prime automated underwriting system, or any of the computer programs, software or documentation related to the
foregoing, whether now existing or hereafter created, and Buyer acknowledges and agrees that it shall have no security interest therein. 
  
 (k) The definition of “Servicer” is hereby amended by deleting it in its entirety and replacing it with the following:

  
 “Servicer” means Fairbanks Capital Corp., or
any other servicer approved by Buyer in its sole discretion, which may be the Seller. 
  
 (l) The definition of “Termination Date” is hereby amended by deleting it in its entirety and replacing it with the following:

  
 “Termination Date” means the earlier of (a)
August 29, 2003, (b) the date of the occurrence of an Event of Default unless waived by Buyer in writing, or (c) such other date as provided in Section 21(b) hereof. 
  
 (m) By inserting the following definitions in their proper alphabetical order: 
  
 “Aged 120 Day Loan” means an Aged Loan subject to a
Transaction for a period of greater than 90 days but no greater than 120 days. 
  
 “Aged 150 Day Loan” means an Aged Loan subject to a Transaction for a period of greater than 120 days but no greater than 150 days. 
  
 “Aged 180 Day Loan” means an Aged Loan subject to a Transaction for a period of greater than 150 days but
no greater than 180 days. 
  
 “Dollars” and
“$” means dollars in the lawful currency of the United States of America. 
  
 “E&O Insurance” means insurance coverage with respect to employee dishonesty, forgery or alteration, theft, disappearance and destruction, robbery and safe burglary, property (other than money and
securities) and computer fraud in an aggregate amount reasonably acceptable to Buyer. 
  
 “Maximum Committed Purchase Price” shall mean $200,000,000. All funds made available by Buyer to the Seller under this Agreement will first be attributed to the 

  

 6 

 
Maximum Committed Purchase Price. For purposes of this Agreement, Mortgage Loans will be allocated first to the Maximum Committed Purchase Price based on the
date on which such Mortgage Loan becomes subject to this Agreement, commencing from the earliest date to the most recent date. 
  
 “Mortgage Loan Documents” means the documents in the related Mortgage File to be delivered to the Custodian. 
  
 “Pricing Rate Reduction Threshold” means $100,000,000.

  
 “Principal Balance Percentage” means, with
respect to each Mortgage Loan, the following percentage, as applicable: 
  

	 	(a)	90% with respect to Purchased Mortgage Loans that are Aged 150 Day Loans; 

  

	 	(b)	85% with respect to Purchased Mortgage Loans that are Aged 180 Day Loans; and 

  

	 	(c)	50% with respect to Purchased Mortgage Loans that are Non-Performing Loans. 

  
 “Purchase Price Percentage” means, with respect to each Mortgage Loan, the following percentage, as applicable: 
  

	 	(a)	98% with respect to Purchased Mortgage Loans that are Non-Performing Loans (including Wet-Ink Mortgage Loans); 

  

	 	(b)	95% with respect to Purchased Mortgage Loans that are Aged 120 Day Loans (including Wet-Ink Mortgage Loans); 

  

	 	(c)	97% with respect to Purchased Mortgage Loans that are Second Lien Mortgage Loans or Sub-Prime Mortgage Loans (including Wet-Ink Mortgage Loans); 

  

	 	(d)	98% with respect to Purchased Mortgage Loans that are Conforming Mortgage Loans, Alt-A Mortgage Loans, Jumbo Mortgage Loans, Aged 150 Day Loans or Aged 180 Day Loans (including
Wet-Ink Mortgage Loans); and 

  

	 	(e)	with respect to Transactions the subject of which are Exception Mortgage Loans, a percentage to be determined by Buyer in its sole discretion. 

  
 “Residual Interests” means any retained interest in mortgage
loan securitizations, including any residual securities therein. 
  

 7 

 SECTION 3. Program; Initiation of Transactions. 
  
 (a) Section 3 of the Existing Master Repurchase Agreement is
hereby amended by inserting the following language at the end of subclause (b): 
  
 “In the event the Mortgage Loan Schedule provided by Seller contains erroneous computer data, is not formatted properly or the computer fields are otherwise improperly aligned, Buyer shall provide written or
electronic notice to Seller describing such error and Seller may either (i) give Buyer written or electronic authority to correct the computer data, reformat such Mortgage Loan Schedule or properly align the computer fields or (ii) correct the
computer data, reformat the Mortgage Loan Schedule or properly align the computer fields itself and resubmit the Mortgage Loan Schedule as required herein. In the event that such Seller gives Buyer authority to correct the computer data, reformat
the Mortgage Loan Schedule or properly align the computer fields, Seller shall pay $10 per change and any other direct expenses incurred by Buyer; provided, that upon 30 day’s notice to the Seller, Buyer may change such computer correction fee.
The Seller shall hold Buyer harmless for such correction, reformatting or realigning, as applicable, except as otherwise expressly provided herein.” 
  
 (b) Section 3 of the Existing Master Repurchase Agreement is hereby amended by inserting the following language at the end of subclause
(c): 
  
 “With respect to requested Transactions which would
cause the related Purchase Price to exceed the Maximum Committed Purchase Price, Buyer may enter into such requested Transaction or may notify the Seller of its intention not to enter into such Transaction.” 
  
 SECTION 4. Conditions Precedent. Section 10 of the Existing Master
Repurchase Agreement is hereby amended as follows: 
  
 4.1 By
inserting the following paragraph as subclause (a)(9): 
  
 “Additional Financing. Evidence, in form and substance satisfactory to Buyer, that Seller has aggregate commitments for warehouse financing or whole loan purchase of Mortgage Loans from a financial institution or financial
institutions other than Buyer in an amount of at least $450,000,000 (on either a committed or uncommitted basis).” 
  
 4.2 By inserting the following paragraph as subclause (b)(10): 
  

“Maximum Aggregate Committed Purchase Price. After giving effect to the requested Transaction, the aggregate outstanding Purchase Price for
all Purchased Mortgage Loans subject to then outstanding Transactions under this Agreement shall not exceed the Maximum Aggregate Purchase Price. Notwithstanding the preceding sentence, Buyer shall have no obligation to enter into any Transaction,
if, as a result of such Transaction the aggregate Purchase Price for all Purchased Mortgage Loans subject to then outstanding Transactions under this Agreement exceed the Maximum Committed Purchase Price.” 
  
 4.3 By inserting the following paragraph as subclause (b)(11): 
  
 “Warehouse Financing. The warehouse financing arrangements or
whole loan purchase arrangements of Mortgage Loans obtained by an Seller under Section 10(a)(9) have not been terminated or reduced below the threshold required by Section 10(a)(9), or are not otherwise unavailable.” 
  

 8 

 SECTION 5. Representations; Warranties and Covenants. 
  
 (a) Section 13 of the Existing Master Repurchase Agreement is hereby amended
by deleting subclause (a)(23)(e)(1) it in its entirety and replacing it with the following: 
  
 “Consolidated Tangible Net Worth. Seller shall maintain a Consolidated Tangible Net Worth of at least $50,000,000. Seller shall maintain Consolidated Tangible Net Worth, minus the difference (a) between
the lesser of Seller’s book value and then current market value of any retained interest in mortgage loan securitizations (including any residual securities therein) and (b) the outstanding principal balance of any Indebtedness incurred and
secured solely by Residual Interests, of at least $20,000,000.” 
  
 (b) Section 13 of the Existing Master Repurchase Agreement is hereby amended by adding the following subclause (e)(30): 
  
 “E&O Insurance. Within 90 days of the Amendment Effective Date, the Seller shall name, and shall maintain, the Buyer as loss payee under
the Seller’s E&O Insurance.” 
  
 SECTION 6.
Events of Default. Section 14 of the Existing Master Repurchase Agreement is hereby amended as follows: 
  
 (a) By deleting subclause (d) in its entirety and replacing it with the following: 
  
 “Insolvency. An Act of Insolvency shall have occurred with
respect to Seller, WMC Finance Co. or any of their respective Subsidiaries. 
  
 (b) By deleting subclause (e) in its entirety and replacing it with the following: 
  
 “Material Adverse Change. Any (i) material adverse change in the Property, business or financial condition of Seller, WMC Finance Co. or any
of their respective Subsidiaries shall occur, in each case as determined by Buyer in its sole good faith discretion, or (ii) other condition shall exist which, in Buyer’s sole good faith discretion, in the case of this clause (ii), constitutes
a material impairment of Seller’s ability to perform its obligations under this Agreement or any other Program Agreement. 
  
 (c) By deleting subclause (g) in its entirety and replacing it with the following: 
  
 “Breach of Non-Financial Representation or Covenant. A breach by
Seller of any other material representation, warranty or covenant set forth in this Agreement (and not otherwise specified in Section 14(f) above), if such breach is not cured within ten (10) Business Days (other than the representations and
warranties set forth in Schedule 1, which shall be considered solely for the purpose of determining the Market Value, the existence of a Margin 

  

 9 

 
Deficit and the obligation to repurchase such Mortgage Loan unless (i) such party shall have made any such representations and warranties with knowledge that
they were materially false or misleading at the time made, (ii) any such representations and warranties have been determined by Buyer in its sole discretion to be materially false or misleading on a regular basis, or (iii) Buyer, in its sole
discretion, determines that such breach of a material representation, warranty or covenant materially and adversely affects (A) the condition (financial or otherwise) of such party, WMC Finance Co. or their respective Subsidiaries; or (B)
Buyer’s determination to enter into this Agreement or Transactions with such party, then such breach shall constitute an immediate Event of Default and Seller shall have no cure right hereunder).” 
  
 (d) By deleting subclause (j) in its entirety and replacing
it with the following: 
  
 “Judgment. A final
judgment or judgments for the payment of money in excess of in any one instance, $1,000,000, or in an aggregate amount greater than $3,000,000 shall be rendered against the Seller, WMC Finance Co. or any of their respective Subsidiaries by one or
more courts, administrative tribunals or other bodies having jurisdiction and the same shall not be satisfied, discharged (or provision shall not be made for such discharge) or bonded, or a stay of execution thereof shall not be procured, within 30
days from the date of entry thereof.” 
  
 (e) By deleting subclause (k) in its entirety and replacing it with the following: 
  
 “Government Action. Any Governmental Authority or any person, agency or entity acting or purporting to act under governmental authority shall have taken any action to condemn, seize or appropriate, or to
assume custody or control of, all or any substantial part of the Property of Seller, WMC Finance Co. or any of their respective Subsidiaries, or shall have taken any action to displace the management of Seller, WMC Finance Co. or any of their
Subsidiaries or to curtail its authority in the conduct of the business of Seller, WMC Finance Co. or any of their respective Subsidiaries, or takes any action in the nature of enforcement to remove, limit or restrict the approval of Seller, WMC
Finance Co. or any of their respective Subsidiaries as an issuer, buyer or a seller/servicer of Mortgage Loans or securities backed thereby, and such action provided for in this Section 14(k) shall not have been discontinued or stayed within 30
days.” 
  
 SECTION 7. Remedies Upon Default. Section
15(a) of the Existing Master Repurchase Agreement is hereby amended by deleting it in its entirety and replacing it with the following: 
  
 “Buyer may, at its option (which option shall be deemed to have been exercised immediately upon the occurrence of an Act of Insolvency of Seller, WMC
Finance Co. or any of their respective Subsidiaries), declare an Event of Default to have occurred hereunder and, upon the exercise or deemed exercise of such option, the Repurchase Date for each Transaction hereunder shall, if it has not already
occurred, be deemed immediately to occur (except that, in the event that the Purchase Date for any Transaction has not yet occurred as of the date of such exercise or deemed exercise, such Transaction shall be deemed immediately canceled). Buyer
shall (except upon the occurrence of an Act of Insolvency) give notice to Seller of the exercise of such option as promptly as practicable.” 
  

 10 

 SECTION 8. Reports. Section 16(a)(4) of the Existing Master Repurchase Agreement is hereby amended by
deleting it in its entirety and replacing it with the following: 
  
 “(4) if applicable, copies of any 10-Ks, 10-Qs, registration statements and other SEC filings (other than 8-Ks) which Seller, WMC Finance Co. or any of their respective Subsidiaries is required to file with the SEC in accordance with
the 1934 Act or any rules thereunder, within 5 Business Days of their filing with the SEC; provided, that, Seller will provide Buyer and Credit Suisse First Boston Corporation with a copy of the annual 10-K filed with the SEC by Seller, WMC Finance
Co. or their respective Subsidiaries, no later than 90 days after the end of the year. 
  
 SECTION 9. Authorizations. The Existing Master Repurchase Agreement is hereby amended by adding the following Section 35: 
  
 “Authorizations. Any of the persons whose signatures and titles appear on Schedule 2 are authorized, acting
singly for the Seller or the Buyer, as the case may be, under this Agreement.” 
  
 SECTION 10. Schedule 1: Representations and Warranties with Respect to Purchased Mortgage Loans. The Existing Master Repurchase Agreement is hereby amended by deleting subclause (i) of Schedule 1 it in its
entirety and replacing it with the following: 
  
 “Valid
First or Second Lien. The Mortgage is a valid, subsisting, enforceable and perfected (a) with respect to each first lien Mortgage Loan, first priority lien and first priority security interest, or (b) with respect to each Second Lien Mortgage
Loan, second priority lien and second priority security interest, in each case, on the real property included in the Mortgaged Property, including all buildings on the Mortgaged Property and all installations and mechanical, electrical, plumbing,
heating and air conditioning systems located in or annexed to such buildings, and all additions, alterations and replacements made at any time with respect to the foregoing. The lien of the Mortgage is subject only to: 
  
 (i) the lien of current real property taxes and assessments
not yet due and payable; 
  
 (ii) covenants,
conditions and restrictions, rights of way, easements and other matters of the public record as of the date of recording acceptable to prudent mortgage lending institutions generally and specifically referred to in Buyer’s title insurance
policy delivered to the originator of the Mortgage Loan and (a) referred to or otherwise considered in the appraisal made for the originator of the Mortgage Loan or (b) which do not adversely affect the Appraised Value of the Mortgaged Property set
forth in such appraisal; 
  
 (iii) other matters
to which like properties are commonly subject which do not materially interfere with the benefits of the security intended to be provided by the Mortgage or the use, enjoyment, value or marketability of the related Mortgaged Property; and

  

 11 

 (iv) with respect to each Mortgage Loan which is a Second Lien Mortgage Loan, a first
lien on the Mortgaged Property. 
  
 Any security agreement, chattel mortgage or
equivalent document related to and delivered in connection with the Mortgage Loan establishes and creates a valid, subsisting and enforceable first lien and first priority security interest or (b) with respect to each Second Lien Mortgage Loan,
second priority lien and second priority security interest on the property described therein and Seller has full right to pledge and assign the same to Buyer.” 
  
 SECTION 11. Schedule 2: Authorized Representatives. The Existing Master Repurchase Agreement is hereby amended by
adding Schedule 1 of this Amendment as Schedule 2 to the Existing Master Repurchase Agreement. 
  
 SECTION 12. Structure Fee. The Existing Master Repurchase Agreement is hereby amended by adding the following Section 36: 
  

The Seller shall pay to Buyer in immediately available funds a non-refundable fee due and owing upon closing and payable in arrears no later than the
Price Differential Payment Date following the end of each calendar quarter, in the amount set forth in the fee schedule attached hereto as Annex II. Such payment shall be made in Dollars, in immediately available funds, without deduction, set-off or
counterclaim, to Buyer at such account designated by Buyer. 
  
 SECTION 13. Annex I: Structure Fee. The Existing Master Repurchase Agreement is hereby amended by deleting Annex 2 in its entirety and replacing it with Annex 1 of this Amendment. 
  
 SECTION 14. Annex 2: Non-Utilization Fee. The Existing Master
Repurchase Agreement is hereby amended by deleting Annex 3 in its entirety and replacing it with Annex 2 of this Amendment. 
  
 SECTION 15. Exhibit N – Custodial and Bank Fee Schedule. Exhibit N to the Existing Master Repurchase Agreement is hereby amended by adding the
following language thereto: 
  
 “Bailee Violation Letter $5
per Mortgage Loan” 
  
 SECTION 16. Conditions
Precedent. This Amendment shall become effective on August 30, 2002 (the “Amendment Effective Date”), subject to the satisfaction of the following conditions precedent: 
  
 16.1 Delivered Documents. On the Amendment Effective Date, the Buyer
shall have received the following documents, each of which shall be satisfactory to the Buyer in form and substance: 
  
 (a) this Amendment, executed and delivered by the duly authorized officers of the Buyer and the Seller; and 
  
 (b) such other documents as the Buyer or counsel to the
Buyer may reasonably request. 
  

 12 

 SECTION 17. Representations and Warranties. Seller hereby represents and warrants to the Buyer
that it is in compliance with all the terms and provisions set forth in the Existing Master Repurchase Agreement on its part to be observed or performed, and that no Event of Default has occurred or is continuing, and hereby confirms and reaffirms
the representations and warranties contained in Section 13 of the Existing Master Repurchase Agreement. 
  
 SECTION 18. Limited Effect. Except as expressly amended and modified by this Amendment, the Existing Master Repurchase Agreement shall continue to
be, and shall remain, in full force and effect in accordance with its terms. 
  
 SECTION 19. Counterparts. This Amendment may be executed by each of the parties hereto on any number of separate counterparts, each of which shall be an original and all of which taken together shall constitute
one and the same instrument. 
  
 SECTION 20. GOVERNING
LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO THE CHOICE OF LAW PROVISIONS THEREOF. 
  
 [SIGNATURE PAGE FOLLOWS] 
  

 13 

 IN WITNESS WHEREOF, the parties have caused their names to be signed hereto by their respective officers
thereunto duly authorized as of the day and year first above written. 
  

					
	 Buyer:
	  	CREDIT SUISSE FIRST BOSTON MORTGAGE
CAPITAL LLC,
	 	  	as Buyer
			
	 	  	By:	 	 /s/    JEFF DETWILER

	 	  	 	 	 Name: Jeff Detwiler

	 	  	 	 	 Title:

		
	 Seller:
	  	WMC MORTGAGE CORP.,
	 	  	as Seller
			
	 	  	By:	 	 /s/ David Trzcinski

	 	  	 	 	 Name: David Trzcinski

	 	  	 	 	 Title: Chief Financial Officer

 SCHEDULE 1 TO AMENDMENT NO. 3 
  
 SCHEDULE 2 
 AUTHORIZED REPRESENTATIVES 
  
 SELLER NOTICES 

 

			
	 Name:
	  	 Address:

	 Telephone:
	  	 
	 Facsimile:
	  	 

  
 SELLER AUTHORIZATIONS

  
 Any of the persons whose signatures and titles appear below are
authorized, acting singly, to act for Seller under this Agreement: 
  

					
	Name	 	Title	 	Signature
	
	 	
	 	

  
  

 Schedule 1-1 

 ANNEX 1 TO AMENDMENT NO. 3 
  
 Annex II 
  
 Structure Fee Schedule 
  
 The Structure Fee for each calendar quarter shall be an amount equal to the product of (x) .10% per annum and (y) the Maximum Committed Purchase Price.

  

 Annex 1-1 

 ANNEX 2 TO AMENDMENT NO. 3 
  
 Annex III 
  
 Non-Utilization Fee Formula 
  
 The Non-Utilization Fee for each calendar month shall be an amount equal to the product of (x) 0.125% per annum and (y) the excess of (I) 50% of Maximum
Committed Purchase Price over (II) the average daily Purchase Price of the Purchased Mortgage Loans during such calendar month. 
  

 Annex 2-1 

 EXECUTION VERSION 
  
 AMENDMENT NO. 4 
 TO MASTER REPURCHASE AGREEMENT 
  
 Amendment No.
4, dated as of August 20, 2003 (this “Amendment”), among CREDIT SUISSE FIRST BOSTON MORTGAGE CAPITAL LLC (the “Buyer”) and WMC MORTGAGE CORP. (the “Seller”). 
  
 RECITALS 
  
 The Buyer and the Seller are parties to that certain Master Repurchase Agreement, dated as of August 17, 2001, as amended by
Amendment No. 1 dated as of February 13, 2002, Amendment No. 2 dated as of August 16, 2002 and Amendment No. 3, dated as of August 30, 2002 (the “Existing Master Repurchase Agreement”; as amended by this Amendment, the
“Master Repurchase Agreement”). Capitalized terms used but not otherwise defined herein shall have the meanings given to them in the Existing Master Repurchase Agreement. 
  
 The Buyer and the Seller have agreed, subject to the terms and conditions of this Amendment, that the Existing Master
Repurchase Agreement be amended to reflect certain agreed upon revisions to the terms of the Existing Master Repurchase Agreement. 
  
 Accordingly, the Buyer and the Seller hereby agree, in consideration of the mutual premises and mutual obligations set forth herein, that the Existing
Master Repurchase Agreement is hereby amended as follows: 
  
 SECTION 1. Increased Maximum Aggregate Purchase Price Period. For purposes of this Amendment, this Section 1 will be effective only during the Increased Maximum Aggregate Purchase Price Period. 
  
 1.1 Definitions. 
  
 (a) Section 2 of the Existing Repurchase Agreement is hereby
temporarily amended by adding the following defined terms, which amendment shall be effective solely during the Increased Maximum Aggregate Purchase Price Period (as defined below): 
  
 “Increased Aggregate Purchase Price” means FIFTY MILLION DOLLARS ($50,000,000). 
  
 “Increased Maximum Aggregate Purchase Price Period” shall
mean the period beginning on August 20, 2003 through and including October 3, 2003.” 
  
 “Standard Aggregate Purchase Price” means THREE HUNDRED MILLION DOLLARS ($300,000,000). 
  
 (b) Section 2 of the Existing Repurchase Agreement is hereby temporarily amended by deleting the definition of “Maximum Aggregate
Purchase Price” in its entirety and replacing it with the following language, which amendment shall be effective solely during the Increased Maximum Aggregate Purchase Price Period: 

 ““Maximum Aggregate Purchase Price” means the sum of (a) the Standard Aggregate
Purchase Price plus (b) the Increased Aggregate Purchase Price, which sum shall equal THREE HUNDRED FIFTY MILLION DOLLARS ($350,000,000). All funds made available by Buyer to Seller under this Agreement will first be attributed to the Standard
Aggregate Purchase Price. To the extent that funds are no longer available under the Standard Aggregate Purchase Price, any further funds made available by Buyer to Seller under this Agreement shall be attributed to the Increased Aggregate Purchase
Price.” 
  
 SECTION 2. Permanent Amendments.

  
 (a) Definitions. Section 2 of the
Existing Repurchase Agreement is hereby amended by deleting the definition of “Termination Date” in its entirety and replacing it with the following language: 
  
 “Termination Date” means the earlier of (a) October 3, 2003, (b) the date of the occurrence of an Event of
Default unless waived by Buyer in writing, or (c) such other date as provided in Section 21(b) hereof. 
  
 (b) Margin Deficit. Section 6 of the Existing Repurchase Agreement is hereby amended by adding the following subsection (c)
thereto: 
  
 “c. In the event that a Margin Deficit exists
with respect to any Purchased Mortgage Loan, Buyer may retain any funds received by it to which the Seller would otherwise be entitled hereunder, which funds (i) shall be held by Buyer against the related Margin Deficit and (ii) may be applied by
Buyer against any Purchased Mortgage Loan for which the related Margin Deficit remains otherwise unsatisfied. Notwithstanding the foregoing, the Buyer retains the right, in its sole discretion, to make a Margin Call in accordance with the provisions
of this Section 6.” 
  
 SECTION 3. Conditions
Precedent. This Amendment shall become effective on August 20, 2003 (the “Amendment Effective Date”), subject to the satisfaction of the following conditions precedent: 
  
 3.1 Delivered Documents. On the Amendment Effective Date, the Buyer
shall have received the following documents, each of which shall be satisfactory to the Buyer in form and substance: 
  
 (a) this Amendment, executed and delivered by the duly authorized officers of the Buyer and the Seller; and 
  
 (b) such other documents as the Buyer or counsel to the
Buyer may reasonably request. 
  
 SECTION 4. Representations
and Warranties. Seller hereby represents and warrants to the Buyer that it is in compliance with all the terms and provisions set forth in the 

  

 2 

 
Existing Master Repurchase Agreement on its part to be observed or performed, and that no Event of Default has occurred or is continuing, and hereby confirms
and reaffirms the representations and warranties contained in Section 13 of the Existing Master Repurchase Agreement. 
  
 SECTION 5. Limited Effect. Except as expressly amended and modified by this Amendment, the Existing Master Repurchase Agreement shall continue to
be, and shall remain, in full force and effect in accordance with its terms. 
  
 SECTION 6. Counterparts. This Amendment may be executed by each of the parties hereto on any number of separate counterparts, each of which shall be an original and all of which taken together shall constitute
one and the same instrument. 
  
 SECTION 7. GOVERNING
LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO THE CHOICE OF LAW PROVISIONS THEREOF. 
  
 [SIGNATURE PAGE FOLLOWS] 
  

 3 

 IN WITNESS WHEREOF, the parties have caused their names to be signed hereto by their respective officers
thereunto duly authorized as of the day and year first above written. 
  

					
	 Buyer:
	 	CREDIT SUISSE FIRST BOSTON MORTGAGE
CAPITAL LLC,
	 	 	as Buyer
			
	 	 	By:	 	 /s/    JEFF DETWILER

	 	 	 	 	 Name: Jeff Detwiler

	 	 	 	 	 Title:

		
	 Seller:
	 	WMC MORTGAGE CORP.,
	 	 	as Seller
			
	 	 	By:	 	 /s/ David Trzcinski

	 	 	 	 	 Name: David Trzcinski

	 	 	 	 	 Title: Chief Financial Officer

 EXECUTION VERSION 
  
 AMENDMENT NO. 5 
 TO MASTER REPURCHASE AGREEMENT 
  
 Amendment No.
5, dated as of October 3, 2003 (this “Amendment”), among CREDIT SUISSE FIRST BOSTON MORTGAGE CAPITAL LLC (the “Buyer”) and WMC MORTGAGE CORP. (the “Seller”). 
  
 RECITALS 
  
 The Buyer and the Seller are parties to that certain Master Repurchase Agreement, dated as of August 17, 2001, as amended by
Amendment No. 1 dated as of February 13, 2002, Amendment No. 2 dated as of August 16, 2002, Amendment No. 3, dated as of August 30, 2002, and Amendment No. 4, dated as of August 20, 2003 (the “Existing Master Repurchase Agreement”;
as amended by this Amendment, the “Master Repurchase Agreement”). Capitalized terms used but not otherwise defined herein shall have the meanings given to them in the Existing Master Repurchase Agreement. 
  
 The Buyer and the Seller have agreed, subject to the terms and conditions of
this Amendment, that the Existing Master Repurchase Agreement be amended to reflect certain agreed upon revisions to the terms of the Existing Master Repurchase Agreement. 
  
 Accordingly, the Buyer and the Seller hereby agree, in consideration of the mutual premises and mutual obligations set forth
herein, that the Existing Master Repurchase Agreement is hereby amended as follows: 
  
 SECTION 1. Definitions. Section 2 of the Existing Master Repurchase Agreement is hereby amended by deleting the definition of “Termination Date” in its entirety and replacing it with the following
language: 
  
 “Termination Date” means the
earlier of (a) October 17, 2003, (b) the date of the occurrence of an Event of Default unless waived by Buyer in writing, or (c) such other date as provided in Section 21(b) hereof. 
  
 SECTION 2. Conditions Precedent. This Amendment shall become effective on October 3, 2003 (the “Amendment
Effective Date”), subject to the satisfaction of the following conditions precedent: 
  
 2.1 Delivered Documents. On the Amendment Effective Date, the Buyer shall have received the following documents, each of which shall be satisfactory to the Buyer in form and substance: 
  
 (a) this Amendment, executed and delivered by the duly
authorized officers of the Buyer and the Seller; and 
  
 (b) such other documents as the Buyer or counsel to the Buyer may reasonably request. 

 SECTION 3. Representations and Warranties. Seller hereby represents and warrants to the Buyer that
it is in compliance with all the terms and provisions set forth in the Existing Master Repurchase Agreement on its part to be observed or performed, and that no Event of Default has occurred or is continuing, and hereby confirms and reaffirms the
representations and warranties contained in Section 13 of the Existing Master Repurchase Agreement. 
  
 SECTION 4. Limited Effect. Except as expressly amended and modified by this Amendment, the Existing Master Repurchase Agreement shall continue to
be, and shall remain, in full force and effect in accordance with its terms. 
  
 SECTION 5. Counterparts. This Amendment may be executed by each of the parties hereto on any number of separate counterparts, each of which shall be an original and all of which taken together shall constitute
one and the same instrument. 
  
 SECTION 6. GOVERNING
LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO THE CHOICE OF LAW PROVISIONS THEREOF. 
  
 [SIGNATURE PAGE FOLLOWS] 
  
  

 2 

 IN WITNESS WHEREOF, the parties have caused their names to be signed hereto by their respective officers
thereunto duly authorized as of the day and year first above written. 
  

					
	 Buyer:
	 	CREDIT SUISSE FIRST BOSTON MORTGAGE
CAPITAL LLC,
as Buyer
			
	 	 	By:	 	 /s/    JEFF DETWILER

	 	 	 	 	 Name: Jeff Detwiler

	 	 	 	 	 Title:

		
	 Seller:
	 	WMC MORTGAGE CORP.,
as Seller
			
	 	 	By:	 	 /s/ David Trzcinski

	 	 	 	 	 Name: David Trzcinski

	 	 	 	 	 Title: Chief Financial Officer

 AMENDMENT NO. 6 
 TO MASTER REPURCHASE AGREEMENT 
  
 Amendment No. 6, dated as of October 10, 2003 (this “Amendment”), among CREDIT SUISSE FIRST BOSTON MORTGAGE CAPITAL LLC (the “Buyer”) and WMC MORTGAGE CORP. (the “Seller”). 
  
 RECITALS 
  
 The Buyer and the Seller are parties to that certain Master Repurchase Agreement, dated as of August 17, 2001, as amended by
Amendment No. 1 dated as of February 13, 2002, Amendment No. 2 dated as of August 16, 2002, Amendment No. 3, dated as of August 30, 2002, Amendment No. 4, dated as of August 20, 2003, and Amendment No. 5, dated as of October 3, 2003 (the
“Existing Master Repurchase Agreement”; as amended by this Amendment, the “Master Repurchase Agreement”). Capitalized terms used but not otherwise defined herein shall have the meanings given to them in the Existing
Master Repurchase Agreement. 
  
 The Buyer and the Seller have
agreed, subject to the terms and conditions of this Amendment, that the Existing Master Repurchase Agreement be amended to reflect certain agreed upon revisions to the terms of the Existing Master Repurchase Agreement. 
  
 Accordingly, the Buyer and the Seller hereby agree, in consideration of the
mutual premises and mutual obligations set forth herein, that the Existing Master Repurchase Agreement is hereby amended as follows: 
  
 SECTION 1. Definitions. Section 2 of the Existing Master Repurchase Agreement is hereby amended by: 
  
 (a) adding the following definition in its proper
alphabetical order: 
  
 “FICO” means Fair Issac
& Co., or any successor thereto. 
  
 (b)
inserting after the first sentence of the definition of “Exception Mortgage Loan” the following language: 
  
 “Buyer’s approval of a Mortgage Loan as an Exception Mortgage Loan shall expire on the earlier of (a) the date set forth by the Buyer in the
written notice that such Mortgage Loan is approved as an Exception Mortgage Loan (an “Exception Notice”) or (b) the occurrence of any additional event, other than that set forth in the Exception Notice, which would cause the
Mortgage Loan to become ineligible for purchase hereunder.” 
  
 (c) deleting the definition of “High Cost Mortgage Loan” in its entirety and replacing it with the following: 
  
 “High Cost Mortgage Loan” means a Mortgage Loan classified as (a) a “high cost” loan under the Home Ownership and Equity
Protection Act of 1994 or (b) a “high cost,” “threshold,” “covered,” or “predatory” loan under any other applicable state, federal or local law 

 
(or a similarly classified loan using different terminology under a law, regulation or ordinance imposing heightened regulatory scrutiny or additional legal
liability for residential mortgage loans having high interest rates, points and/or fees). 
  
 (d) deleting the definition of “Manufactured Home” in its entirety and replacing it with the following language: 
  
 “Manufactured Home”: means a single-family residential
manufactured home, including all accessions thereto, that (i) is legally classified as real property under applicable state law which conforms with the applicable Fannie Mae or Freddie Mac requirements regarding mortgage loans related to
manufactured dwellings, (ii) conforms to all applicable local and state codes and regulations and HUD’s Federal Manufactured Home Construction and Safety Standards of the Uniform Building Code and (iii) is located within a community consisting
of single-family homes. A Manufactured Home does not include, among other things, (i) mobile home units, (ii) units for which the appraiser identifies as single-wide, double-wide or multi-wide housing or (iii) units located in a trailer park.

  
 (e) deleting the definition of “Market
Value” in its entirety and replacing it with the following language: 
  
 “Market Value” means with respect to any Purchased Mortgage Loan as of any date (including any date on which the Seller notifies the Buyer that a Take-out Investor has rejected such Mortgage Loan),
the whole loan servicing released fair market value of such Purchased Mortgage Loan on such date as determined by Buyer (or an Affiliate thereof) in its good-faith discretion. Without limiting the generality of the foregoing, Seller acknowledges
that the Market Value of a Purchased Mortgage Loan may be reduced to zero by Buyer if: 
  
 (i) there exists a breach of a representation, warranty or covenant made by Seller in this Agreement with respect to such Purchased
Mortgage Loan that materially and adversely affects the value of such Purchased Mortgage Loan or Buyer’s interest in such Purchased Mortgage Loan and which breach has not been cured; 
  
 (ii) the Purchased Mortgage Loan has been released from the
possession of the Custodian under the Custodial Agreement (other than to a Take out Investor pursuant to a Bailee Letter) for a period in excess of fourteen (14) calendar days; 
  
 (iii) the Purchased Mortgage Loan has been released from the possession of the Custodian under the Custodial
Agreement to a Take-out Investor pursuant to a Bailee Letter for a period in excess of 45 calendar days; 
  
 (iv) the Purchased Mortgage Loan has been subject to a Transaction for a period of greater than (a) ninety (90) days (unless the Mortgage
Loan is an Aged Loan) or (b) one hundred eighty (180) days with respect to each Aged Loan; 
  
 (v) the Purchased Mortgage Loan is a Non-Performing Mortgage Loan for which any payment of principal or interest is more than two hundred
and seventy (270) days past due; 
  

 2 

 (vi) such Purchased Mortgage Loan is a Wet-Ink Mortgage Loan for which the Mortgage File
has not been delivered to the Custodian on or prior to the eighth Business Day after the related Purchase Date; 
  
 (vii) when the Purchase Price of such Purchased Mortgage Loan is added to the Purchase Price of other Purchased Mortgage Loans, the
aggregate Purchase Price of all Second Lien Mortgage Loans that are Purchased Mortgage Loans exceeds $60,000,000; 
  
 (viii) when the Purchase Price of such Purchased Mortgage Loan is added to the Purchase Price of other Purchased Mortgage Loans, the
aggregate Purchase Price of all Aged Loans that are Purchased Mortgage Loans exceeds $35,000,000; 
  
 (ix) when the Purchase Price for such Purchased Mortgage Loan is added to other Purchased Mortgage Loans, the aggregate Purchase Price of
all Wet-Ink Mortgage Loans that are Purchased Mortgage Loans exceeds 35% of the Maximum Aggregate Purchase Price; 
  
 (x) when the Purchase Price of such Purchased Mortgage Loan is added to the Purchase Price of other Purchased Mortgage Loans, the
aggregate Purchase Price of all Non-Performing Mortgage Loans and Delinquent Mortgage Loans combined that are Purchased Mortgage Loans exceeds $15,000,000; 
  
 (xi) when the Purchase Price of such Purchased Mortgage Loan is added to the Purchase Price of other Purchased Mortgage Loans, the
aggregate Purchase Price of all Non-Performing Mortgage Loans that are Purchased Mortgage Loans exceeds $10,000,000; 
  
 (xii) when the Purchase Price of such Purchased Mortgage Loan is added to the Purchase Price of other Purchased Mortgage Loans, the
aggregate Purchase Price of all Wet-Ink Mortgage Loans with a single Settlement Agent that are Purchased Mortgage Loans exceeds $3,000,000 (unless consented to in writing by the Buyer); or 
  
 (xiii) when the Purchase Price of such Purchased Mortgage
Loan is added to the Purchase Price of other Purchased Mortgage Loans, the aggregate Purchase Price of all Manufactured Home Loans that are Purchased Mortgage Loans exceeds $3,000,000. 
  
 (f) deleting the definition of “Maximum Aggregate Purchase Price” in its entirety and replacing it
with the following language: 
  
 “Maximum Aggregate
Purchase Price” means THREE HUNDRED FIFTY MILLION DOLLARS ($350,000,000). 
  
 (g) deleting the definition of “Pricing Rate” in its entirety and replacing it with the following language: 
  
 “Pricing Rate” means LIBOR plus: 
  

 3 

 (a) 1.00% with respect to Transactions the subject of which are Conforming Mortgage
Loans, Jumbo Mortgage Loans or Alt-A Mortgage Loans (other than Aged Loans, Wet-Ink Mortgage Loans or Non-Performing Mortgage Loans); 
  
 (b) 1.00% with respect to Transactions the subject of which are Sub-Prime Mortgage Loans (other than Aged Loans, Wet-Ink Mortgage Loans or
Non-Performing Mortgage Loans); 
  
 (c) 1.125%
with respect to Transactions the subject of which are Second Lien Mortgage Loans (other than Aged Loans, Wet-Ink Mortgage Loans or Non-Performing Mortgage Loans); 
  
 (d) 1.25% with respect to Transactions the subject of which are Aged 120 Day Loans (other than
Non-Performing Mortgage Loans); 
  
 (e) 1.375%
with respect to Transactions the subject of which are Aged 150 Day Loans (other than Non-Performing Mortgage Loans); 
  
 (f) 1.375% with respect to Transactions the subject of which are Wet-Ink Mortgage Loans; 
  
 (g) 1.50% with respect to Transactions the subject of which
are Aged 180 Day Loans; and 
  
 (h) 1.50% with
respect to Transactions the subject of which are Non-Performing Mortgage Loans. 
  
 The Pricing Rate shall change in accordance with LIBOR, as provided in Section 5(a); provided, that in the event the daily average aggregate Purchase Price of all Purchased Mortgage Loans subject to Transactions
hereunder exceeds the Pricing Rate Reduction Threshold in a calendar month, the Pricing Rate for all Transactions that exceed the Pricing Rate Reduction Threshold shall be reduced by 0.15% for such calendar month, which reduction shall be applied to
the weighted average Pricing Rate and shall be reflected in the Price Differential due on the next succeeding Price Differential Payment Date. 
  
 (h) deleting the definition of “Servicer” in its entirety and replacing it with the following language: 
  
 “Servicer” means WMC Mortgage Corp. or any other servicer
approved by Buyer in its sole discretion. 
  
 (i)
deleting the definition of “Termination Date” in its entirety and replacing it with the following language: 
  
 “Termination Date” means the earlier of (a) October 1, 2004, (b) the date of the occurrence of an Event of Default unless waived by Buyer
in writing, or (c) such other date as provided in Section 21(b) hereof. 
  

 4 

 SECTION 2. Representations; Warranties and Covenants. Section 13 of the Existing Master Repurchase
Agreement is hereby amended by: 
  
 (a) adding
the following clauses (24) and (25) at the end of subsection (a): 
  
 “(24) No Reliance. Seller has made its own independent decisions to enter into the Program Agreements and each Transaction and as to whether such Transaction is appropriate and proper for it based upon its own judgment and upon
advice from such advisors (including without limitation, legal counsel and accountants) as it has deemed necessary. Seller is not relying upon any advice from Buyer as to any aspect of the Transactions, including without limitation, the legal,
accounting or tax treatment of such Transactions. 
  
 (25) Plan
Assets. Seller is not an employee benefit plan as defined in Section 3 of Title I of ERISA, or a plan described in Section 4975(e)(1) of the Code, and the Purchased Mortgage Loans are not “plan assets” within the meaning of 29 CFR
§2510.3-101 in Seller’s hands.” 
  
 (b) deleting subsection (e)(1) in its entirety and replacing it with the following: 
  
 “(1) Consolidated Tangible Net Worth. Seller shall maintain a Consolidated Tangible Net Worth of at least $90,000,000. Seller shall maintain Consolidated Tangible Net Worth, minus the difference between
(a) the lesser of Seller’s book value and the then current market value of any retained interest in mortgage loan securitizations (including any residual securities therein) and (b) the outstanding principal balance of any Indebtedness incurred
and secured solely by Residual Interests, of at least $45,000,000.” 
  
 (c) deleting subsection (e)(3) in its entirety and replacing it with the following: 
  
 “(3) Total Indebtedness to Consolidated Tangible Net Worth Ratio. At any time, Seller’s leverage ratio of total Indebtedness to
Consolidated Tangible Net Worth shall not exceed 15:1.” 
  
 (d) adding the following clause (30) at the end of subsection (e): 
  
 “(30) Plan Assets. Seller shall not be an employee benefit plan as defined in Section 3 of Title I of ERISA, or a plan described in Section
4975(e)(1) of the Code and Seller shall not use “plan assets” within the meaning of 29 CFR §2510.3-101 to engage in this Repurchase Agreement or any Transaction hereunder.” 
  
 SECTION 3. Events of Default. Section 14(f) of the Existing Master
Repurchase Agreement is hereby amended by deleting it in its entirety and replacing it with the following: 
  
 “f. Breach of Financial Representation or Covenant. A material breach by Seller of any of the representations, warranties or covenants set
forth in Sections 13(a)(1), 13(a)(6), 13(a)(7), 13(a)(18), 13(a)(22), 13(e)(1), 13(e)(2), 13(e)(3), 13(e)(4), 13(e)(5), 13(e)(7), 13(e)(17), 13(e)(25) or 13(e)(30) of this Agreement.” 
  

 5 

 SECTION 4. Remedies Upon Default. Section 15 of the Existing Master Repurchase Agreement is hereby
amended by: 
  
 (a) inserting the following
language at the end of subsection (d): 
  
 “Buyer shall also
be entitled to sell any or all of such Mortgage Loans individually for the prevailing price. Buyer shall also be entitled, in its sole discretion to elect, in lieu of selling all or a portion of such Purchased Mortgage Loans, to give Seller credit
for such Purchased Mortgage Loans and the Repurchase Assets in an amount equal to the Market Value of the Purchased Mortgage Loans against the aggregate unpaid Repurchase Price and any other amounts owing by Seller hereunder.” 
  
 (b) inserting in the first sentence of subsection (e) after
the words “from the liquidation of (i) the Purchased Mortgage Loans” the words “and Repurchase Assets”; and 
  
 (c) inserting in the first sentence of subsection (f) after the words “(i) the amount of all reasonable legal or other expenses”
the following language: 
  
 “(including, without limitation,
all costs and expenses of Buyer in connection with the enforcement of this Agreement or any other agreement evidencing a Transaction, whether in action, suit or litigation or bankruptcy, insolvency or other similar proceeding affecting
creditors’ rights generally, further including, without limitation, the reasonable fees and expenses of counsel (including the costs of internal counsel of Buyer)” 
  
 SECTION 5. Confidentiality. Section 30 of the Existing Master Repurchase Agreement is hereby amended by adding the
following sentence at the end thereof: 
  
 “Notwithstanding
the foregoing or anything to the contrary contained herein or in any other Program Agreement, the parties hereto may disclose to any and all Persons, without limitation of any kind, the federal income tax treatment of the Transactions, any fact
relevant to understanding the federal tax treatment of the Transactions, and all materials of any kind (including opinions or other tax analyses) relating to such federal income tax treatment; provided that Seller may not disclose the name of
or identifying information with respect to Buyer or any pricing terms (including, without limitation, the Pricing Rate, the Structure Fee, the Non-Utilization Fee, Purchase Price Percentage and Purchase Price) or other nonpublic business or
financial information (including any sublimits and financial covenants) that is unrelated to the purported or claimed federal income tax treatment of the Transactions and is not relevant to understanding the purported or claimed federal income tax
treatment of the Transactions, without the prior written consent of the Buyer.” 
  
 SECTION 6. Schedules. 
  
 (a) Representation and Warranty (xx) in Schedule 1 of the Existing Master Repurchase Agreement is hereby amended by deleting it in its entirety and replacing it with the following: 
  

 6 

 “(xx) Predatory Lending Regulations; High Cost Loans. None of the Mortgage Loans are
classified as High Cost Mortgage Loans.” 
  
 (b) The Existing Master Repurchase Agreement is hereby amended by deleting Schedule 2 to the Existing Master Repurchase Agreement in its entirety and replacing it with Schedule 1 of this Amendment. 
  
 SECTION 7. Exhibits. Exhibit D to the Existing Master Repurchase
Agreement is hereby amended by deleting it in its entirety and replacing it with Exhibit A to this Amendment. 
  
 SECTION 8. Conditions Precedent. This Amendment shall become effective on October 10, 2003 (the “Amendment Effective Date”),
subject to the satisfaction of the following conditions precedent: 
  
 8.1 Delivered Documents. On the Amendment Effective Date, the Buyer shall have received the following documents, each of which shall be satisfactory to the Buyer in form and substance: 
  
 (a) this Amendment, executed and delivered by the duly
authorized officers of the Buyer and the Seller; and 
  
 (b) such other documents as the Buyer or counsel to the Buyer may reasonably request. 
  
 SECTION 9. Representations and Warranties. Seller hereby represents and warrants to the Buyer that it is in compliance with all the terms and provisions set forth in the Existing Master Repurchase Agreement on
its part to be observed or performed, and that no Event of Default has occurred or is continuing, and hereby confirms and reaffirms the representations and warranties contained in Section 13 of the Existing Master Repurchase Agreement. 

 
 SECTION 10. Limited Effect. Except as expressly amended and
modified by this Amendment, the Existing Master Repurchase Agreement shall continue to be, and shall remain, in full force and effect in accordance with its terms. 
  
 SECTION 11. Counterparts. This Amendment may be executed by each of the parties hereto on any number of separate
counterparts, each of which shall be an original and all of which taken together shall constitute one and the same instrument. 
  
 SECTION 12. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT
REFERENCE TO THE CHOICE OF LAW PROVISIONS THEREOF. 
  
 [SIGNATURE PAGE FOLLOWS] 
  

 7 

 IN WITNESS WHEREOF, the parties have caused their names to be signed hereto by their respective officers
thereunto duly authorized as of the day and year first above written. 
  

									
	 Buyer:
	 	 	 	 CREDIT SUISSE FIRST BOSTON MORTGAGE CAPITAL LLC,
 as Buyer

					
	 	 	 	 	 	 	By:	 	 /s/    JEFF DETWILER

	 	 	 	 	 	 	 	 	 Name: Jeff Detwiler

	 	 	 	 	 	 	 	 	 Title:

			
	 Seller:
	 	 	 	 WMC MORTGAGE CORP.,
 as
Seller

					
	 	 	 	 	 	 	By:	 	 /s/ David Trzcinski

	 	 	 	 	 	 	 	 	 Name: David Trzcinski

	 	 	 	 	 	 	 	 	 Title: Chief Financial Officer

 EXECUTION VERSION 
  
 AMENDMENT NO. 7 
 TO MASTER REPURCHASE AGREEMENT 
  
 Amendment No.
7, dated as of October 31, 2003 (this “Amendment”), among CREDIT SUISSE FIRST BOSTON MORTGAGE CAPITAL LLC (the “Buyer”) and WMC MORTGAGE CORP. (the “Seller”). 
  
 RECITALS 
  
 The Buyer and the Seller are parties to that certain Master Repurchase Agreement, dated as of August 17, 2001, as amended by
Amendment No. 1 dated as of February 13, 2002, Amendment No. 2 dated as of August 16, 2002, Amendment No. 3, dated as of August 30, 2002, Amendment No. 4, dated as of August 20, 2003, Amendment No. 5, dated as of October 3, 2003, and Amendment No.
6, dated as of October 17 (the “Existing Master Repurchase Agreement”; as amended by this Amendment, the “Master Repurchase Agreement”). Capitalized terms used but not otherwise defined herein shall have the
meanings given to them in the Existing Master Repurchase Agreement. 
  
 The Buyer and the Seller have agreed, subject to the terms and conditions of this Amendment, that the Existing Master Repurchase Agreement be amended to reflect certain agreed upon revisions to the terms of the Existing Master Repurchase
Agreement. 
  
 Accordingly, the Buyer and the Seller hereby agree,
in consideration of the mutual premises and mutual obligations set forth herein, that the Existing Master Repurchase Agreement is hereby amended as follows: 
  
 SECTION 1. Definitions. Section 2 of the Existing Master Repurchase Agreement is hereby amended by deleting the definition of “Termination
Date” in its entirety and replacing it with the following language: 
  
 “Termination Date” means the earlier of (a) December 1, 2003, (b) the date of the occurrence of an Event of Default unless waived by Buyer in writing, or (c) such other date as provided in Section
21(b) hereof. 
  
 SECTION 2. Conditions Precedent. This
Amendment shall become effective on October 31, 2003 (the “Amendment Effective Date”), subject to the satisfaction of the following conditions precedent: 
  
 2.1 Delivered Documents. On the Amendment Effective Date, the Buyer shall have received the following documents, each
of which shall be satisfactory to the Buyer in form and substance: 
  
 (a) this Amendment, executed and delivered by the duly authorized officers of the Buyer and the Seller; and 
  
 (b) such other documents as the Buyer or counsel to the Buyer may reasonably request. 

 SECTION 3. Representations and Warranties. Seller hereby represents and warrants to the Buyer that
it is in compliance with all the terms and provisions set forth in the Existing Master Repurchase Agreement on its part to be observed or performed, and that no Event of Default has occurred or is continuing, and hereby confirms and reaffirms the
representations and warranties contained in Section 13 of the Existing Master Repurchase Agreement. 
  
 SECTION 4. Limited Effect. Except as expressly amended and modified by this Amendment, the Existing Master Repurchase Agreement shall continue to
be, and shall remain, in full force and effect in accordance with its terms. 
  
 SECTION 5. Counterparts. This Amendment may be executed by each of the parties hereto on any number of separate counterparts, each of which shall be an original and all of which taken together shall constitute
one and the same instrument. 
  
 SECTION 6. GOVERNING
LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO THE CHOICE OF LAW PROVISIONS THEREOF. 
  
 [SIGNATURE PAGE FOLLOWS] 
  

 2 

 IN WITNESS WHEREOF, the parties have caused their names to be signed hereto by their respective officers
thereunto duly authorized as of the day and year first above written. 
  

									
	 Buyer:
	 	 	 	 CREDIT SUISSE FIRST BOSTON MORTGAGE CAPITAL LLC,
 as Buyer

					
	 	 	 	 	 	 	By:	 	 /s/    JEFF DETWILER

	 	 	 	 	 	 	 	 	 Name: Jeff Detwiler

	 	 	 	 	 	 	 	 	 Title:

			
	 Seller:
	 	 	 	 WMC MORTGAGE CORP.,
 as
Seller

					
	 	 	 	 	 	 	By:	 	 /s/ David Trzcinski

	 	 	 	 	 	 	 	 	 Name: David Trzcinski

	 	 	 	 	 	 	 	 	 Title: Chief Financial Officer

 EXECUTION VERSION 
  
 AMENDMENT NO. 8 
 TO MASTER REPURCHASE AGREEMENT 
  
 Amendment No.
8, dated as of December 1, 2003 (this “Amendment”), among CREDIT SUISSE FIRST BOSTON MORTGAGE CAPITAL LLC (the “Buyer”) and WMC MORTGAGE CORP. (the “Seller”). 
  
 RECITALS 
  
 The Buyer and the Seller are parties to that certain Master Repurchase Agreement, dated as of August 17, 2001, as amended by
Amendment No. 1 dated as of February 13, 2002, Amendment No. 2 dated as of August 16, 2002, Amendment No. 3, dated as of August 30, 2002, Amendment No. 4, dated as of August 20, 2003, Amendment No. 5, dated as of October 3, 2003, Amendment No. 6,
dated as of October 17, 2003 and Amendment No. 7, dated as of October 31, 2003 (the “Existing Master Repurchase Agreement”; as amended by this Amendment, the “Master Repurchase Agreement”). Capitalized terms used
but not otherwise defined herein shall have the meanings given to them in the Existing Master Repurchase Agreement. 
  
 The Buyer and the Seller have agreed, subject to the terms and conditions of this Amendment, that the Existing Master Repurchase Agreement be amended to
reflect certain agreed upon revisions to the terms of the Existing Master Repurchase Agreement. 
  
 Accordingly, the Buyer and the Seller hereby agree, in consideration of the mutual premises and mutual obligations set forth herein, that the Existing
Master Repurchase Agreement is hereby amended as follows: 
  
 SECTION 1. Definitions. Section 2 of the Existing Master Repurchase Agreement is hereby amended by: 
  
 (a) adding the following definition in its proper alphabetical order: 
  
 “BPO” means an opinion of the fair market value of a Mortgaged Property given by a licensed real estate
agent or broker which generally includes three comparable sales and three comparable listings. 
  
 “FICO” means Fair Issac & Co., or any successor thereto. 
  
 “Repurchased Mortgage Loan” means a Mortgage Loan (a) which is repurchased by a Seller from any third party purchaser as a result of (i)
a breach of representations and warranties under the agreed upon terms in which the claimed breach is not a result of fraud or material misrepresentation of fact by any party to the Mortgage Loan or consumer credit law violation or (ii) an early
payment default repurchase obligation, (b) where the claimed breach or early payment default is expressly identified to Buyer in writing, (c) which is subject to a Transaction hereunder for no more than 180 days and (d) which has not been foreclosed
upon or converted to REO property. In no event will a Repurchased Mortgage Loan be subject to a Transaction hereunder as a “Repurchased Mortgage Loan” if there is a breach of representation and warranty in respect of such Repurchased
Mortgage Loan other than the breach identified in writing to the Buyer pursuant to subclause (b) of this definition. 

 (b) inserting after the first sentence of the definition of “Exception Mortgage
Loan” the following language: 
  
 “Buyer’s
approval of a Mortgage Loan as an Exception Mortgage Loan shall expire on the earlier of (a) the date set forth by the Buyer in the written notice that such Mortgage Loan is approved as an Exception Mortgage Loan (an “Exception
Notice”) or (b) the occurrence of any additional event, other than that set forth in the Exception Notice, which would cause the Mortgage Loan to become ineligible for purchase hereunder.” 
  
 (c) deleting the definition of “High Cost Mortgage
Loan” in its entirety and replacing it with the following: 
  
 “High Cost Mortgage Loan” means a Mortgage Loan classified as (a) a “high cost” loan under the Home Ownership and Equity Protection Act of 1994 or (b) a “high cost,” “threshold,”
“covered,” or “predatory” loan under any other applicable state, federal or local law (or a similarly classified loan using different terminology under a law, regulation or ordinance imposing heightened regulatory scrutiny or
additional legal liability for residential mortgage loans having high interest rates, points and/or fees). 
  
 (d) deleting the definition of “Manufactured Home” in its entirety and replacing it with the following language: 
  
 “Manufactured Home”: means a single-family residential
manufactured home, including all accessions thereto, that (i) is legally classified as real property under applicable state law which conforms with the applicable Fannie Mae or Freddie Mac requirements regarding mortgage loans related to
manufactured dwellings, (ii) conforms to all applicable local and state codes and regulations and HUD’s Federal Manufactured Home Construction and Safety Standards of the Uniform Building Code and (iii) is located within a community consisting
of single-family homes. A Manufactured Home does not include, among other things, (i) mobile home units, (ii) units for which the appraiser identifies as single-wide, double-wide or multi-wide housing or (iii) units located in a trailer park.

  
 (e) deleting the definition of “Market
Value” in its entirety and replacing it with the following language: 
  
 “Market Value” means with respect to any Purchased Mortgage Loan as of any date (including any date on which the Seller notifies the Buyer that a Take-out Investor has rejected such Mortgage Loan),
the whole loan servicing released fair market value of such Purchased Mortgage Loan on such date as determined by Buyer (or an Affiliate thereof) in its good-faith discretion. Without limiting the generality of the foregoing, Seller acknowledges
that the Market Value of a Purchased Mortgage Loan may be reduced to zero by Buyer if: 
  
 (i) there exists a breach of a representation, warranty or covenant made by Seller in this Agreement with respect to such Purchased
Mortgage Loan that materially and adversely affects the value of such Purchased Mortgage Loan or Buyer’s interest in such Purchased Mortgage Loan and which breach has not been cured; 
  

 2 

 (ii) the Purchased Mortgage Loan has been released from the possession of the Custodian
under the Custodial Agreement (other than to a Take out Investor pursuant to a Bailee Letter) for a period in excess of fourteen (14) calendar days; 
  
 (iii) the Purchased Mortgage Loan has been released from the possession of the Custodian under the Custodial Agreement to a Take-out
Investor pursuant to a Bailee Letter for a period in excess of 45 calendar days; 
  
 (iv) the Purchased Mortgage Loan has been subject to a Transaction for a period of greater than (a) ninety (90) days (unless the Mortgage
Loan is an Aged Loan) or (b) one hundred eighty (180) days with respect to each Aged Loan; 
  
 (v) the Purchased Mortgage Loan is a Non-Performing Mortgage Loan for which any payment of principal or interest is more than two hundred
and seventy (270) days past due; 
  
 (vi) such
Purchased Mortgage Loan is a Wet-Ink Mortgage Loan for which the Mortgage File has not been delivered to the Custodian on or prior to the eighth Business Day after the related Purchase Date; 
  
 (vii) when the Purchase Price of such Purchased Mortgage
Loan is added to the Purchase Price of other Purchased Mortgage Loans, the aggregate Purchase Price of all Second Lien Mortgage Loans that are Purchased Mortgage Loans exceeds $60,000,000; 
  
 (viii) when the Purchase Price of such Purchased Mortgage
Loan is added to the Purchase Price of other Purchased Mortgage Loans, the aggregate Purchase Price of all Aged Loans that are Purchased Mortgage Loans exceeds $35,000,000; 
  
 (ix) when the Purchase Price for such Purchased Mortgage Loan is added to other Purchased Mortgage Loans,
the aggregate Purchase Price of all Wet-Ink Mortgage Loans that are Purchased Mortgage Loans exceeds 35% of the Maximum Aggregate Purchase Price; 
  
 (x) when the Purchase Price of such Purchased Mortgage Loan is added to the Purchase Price of other Purchased Mortgage Loans, the
aggregate Purchase Price of all Non-Performing Mortgage Loans and Delinquent Mortgage Loans combined that are Purchased Mortgage Loans exceeds $20,000,000; 
  
 (xi) when the Purchase Price of such Purchased Mortgage Loan is added to the Purchase Price of other Purchased Mortgage Loans, the
aggregate Purchase Price of all Non-Performing Mortgage Loans that are Purchased Mortgage Loans exceeds $10,000,000; 
  
 (xii) when the Purchase Price of such Purchased Mortgage Loan is added to the Purchase Price of other Purchased Mortgage Loans, the
aggregate Purchase Price of all Wet-Ink Mortgage Loans with a single Settlement Agent that are Purchased Mortgage Loans exceeds $3,500,000 (unless consented to in writing by the Buyer); 
  

 3 

 (xiii) when the Purchase Price of such Purchased Mortgage Loan is added to the Purchase
Price of other Purchased Mortgage Loans, the aggregate Purchase Price of all Manufactured Home Loans that are Purchased Mortgage Loans exceeds $3,000,000; 
  
 (xiv) when the Purchase Price for such Purchased Mortgage Loan is added to other Purchased Mortgage Loans, the aggregate Purchase Price of
all Repurchased Mortgage Loans that are Purchased Mortgage Loans exceeds $7,500,000; or 
  
 (xv) such Purchased Mortgage Loan is a Repurchased Mortgage Loan for which the Mortgaged Property has been foreclosed upon or has been
converted to REO Property. 
  
 (f) deleting the
definition of “Maximum Aggregate Purchase Price” in its entirety and replacing it with the following language: 
  
 “Maximum Aggregate Purchase Price” means THREE HUNDRED FIFTY MILLION DOLLARS ($350,000,000). 
  
 (g) inserting the words “Repurchased Mortgage
Loan,” after “Sub-Prime Mortgage Loan,” in the first line of the definition of “Mortgage Loan”. 
  
 (h) deleting the definition of “Pricing Rate” in its entirety and replacing it with the following language: 
  
 “Pricing Rate” means LIBOR plus: 
  
 (a) 1.00% with respect to Transactions the subject of which
are Conforming Mortgage Loans, Jumbo Mortgage Loans or Alt-A Mortgage Loans (other than Aged Loans, Wet-Ink Mortgage Loans, Repurchased Mortgage Loans or Non-Performing Mortgage Loans); 
  
 (b) 1.00% with respect to Transactions the subject of which are Sub-Prime Mortgage Loans (other than Aged
Loans, Wet-Ink Mortgage Loans, Repurchased Mortgage Loans or Non-Performing Mortgage Loans); 
  
 (c) 1.125% with respect to Transactions the subject of which are Second Lien Mortgage Loans (other than Aged Loans, Wet-Ink Mortgage
Loans, Repurchased Mortgage Loans or Non-Performing Mortgage Loans); 
  
 (d) 1.20% with respect to Transactions the subject of which are Aged 120 Day Loans (other than Repurchased Mortgage Loans or Non-Performing Mortgage Loans); 
  

 4 

 (e) 1.20% with respect to Transactions the subject of which are Aged 150 Day Loans (other
than Repurchased Mortgage Loans or Non-Performing Mortgage Loans); 
  
 (f) 1.25% with respect to Transactions the subject of which are Wet-Ink Mortgage Loans; 
  
 (g) 1.50% with respect to Transactions the subject of which are Aged 180 Day Loans; 
  
 (h) 1.50% with respect to Transactions the subject of which
are Non-Performing Mortgage Loans; and 
  
 (i)
2.00% with respect to Transactions the subject of which are Repurchased Mortgage Loans. 
  
 The Pricing Rate shall change in accordance with LIBOR, as provided in Section 5(a); provided, that in the event the daily average aggregate Purchase Price of all Purchased Mortgage Loans subject to
Transactions hereunder exceeds the Pricing Rate Reduction Threshold in a calendar month, the Pricing Rate for all Transactions that exceed the Pricing Rate Reduction Threshold shall be reduced by 0.15% for such calendar month, which reduction shall
be applied to the weighted average Pricing Rate and shall be reflected in the Price Differential due on the next succeeding Price Differential Payment Date. 
  
 (i) deleting the definition of “Pricing Rate Reduction Threshold” in its entirety and replacing it with the following language:

  
 “Pricing Rate Reduction Threshold” means 50%
of the Maximum Aggregate Purchase Price. 
  
 (j)
deleting the definition of “Purchase Price” in its entirety and replacing it with the following language: 
  
 “Purchase Price” means the price at which each Purchased Mortgage Loan is transferred by Seller to Buyer, which shall equal: 

 
 (i) on the Purchase Date, in the case of Purchased Mortgage Loans which
are Conforming Mortgage Loans, Alt-A Mortgage Loans, Jumbo Mortgage Loans, Sub-Prime Mortgage Loans or Second Lien Mortgage Loans (other than Aged Loans, Repurchased Mortgage Loans or Non-Performing Mortgage Loans), the lesser of either: (x) the
product of (1) the Market Value of such Purchased Mortgage Loan multiplied by (2) the applicable Purchase Price Percentage for such Mortgage Loan or (y) the outstanding principal amount thereof as set forth on the related Mortgage Loan Schedule;

  
 (ii) on the Purchase Date, in the case of Purchased Mortgage
Loans which are Aged 120 Day Loans (other than Repurchased Mortgage Loans or Non-Performing Mortgage Loans), the lesser of either (x) the product of (1) the Market Value of such Purchased Mortgage Loan multiplied by (2) the applicable Purchase Price
Percentage for such Mortgage Loan or (y) the original Purchase Price for such Purchased Mortgage Loan prior to it becoming an Aged 120 Day Loan; 
  

 5 

 (iii) on the Purchase Date, in the case of Purchased Mortgage Loans which are Aged 150 Day Loans, Aged
180 Day Loans or Non-Performing Mortgage Loans (other than Repurchased Mortgage Loans), the lesser of either (x) the product of (1) the Market Value of such Purchased Mortgage Loan multiplied by (2) the applicable Purchase Price Percentage for such
Mortgage Loan; or (y) the product of (1) the Principal Balance Percentage of such Purchased Mortgage Loan multiplied by (2) the outstanding principal balance of such Mortgage Loan; 
  
 (iv) on the Purchase Date, in the case of Purchased Mortgage Loans which are Repurchased Mortgage Loans, the lesser of (1)
the product of (A)(x) for the first 90 days in which the Purchased Mortgage Loan is subject to a Transaction, 75%; and (y) thereafter, 75% minus an additional 10% for each 30-day period following the 90th day in which the Purchased Mortgage Loan is subject to a Transaction multiplied by (B) the outstanding principal balance thereof as set forth in the related
Mortgage Loan Schedule or (2) 90% of the value reflected in the most recent BPO; and 
  
 (v) on any day after the Purchase Date, except where Buyer and the Seller agree otherwise, the amount determined under the immediately preceding clauses (i) or (ii) decreased by the amount of any cash transferred by
the Seller to Buyer pursuant to Section 4(c) hereof or applied to reduce the Seller’s obligations under clause (ii) of Section 4(b) hereof or under Section 6 hereof. 
  
 (k) deleting the definition of “Servicer” in its entirety and replacing it with the following
language: 
  
 “Servicer” means WMC Mortgage
Corp., Fairbanks Capital Corp., Option One Mortgage Corp. or any other servicer approved by Buyer in its sole discretion. 
  
 (l) deleting the definition of “Termination Date” in its entirety and replacing it with the following language: 
  
 “Termination Date” means the earlier of (a) August 30,
2004, (b) the date of the occurrence of an Event of Default unless waived by Buyer in writing, or (c) such other date as provided in Section 21(b) hereof. 
  
 SECTION 2. Representations; Warranties and Covenants. Section 13 of the Existing Master Repurchase Agreement is hereby amended by: 
  
 (a) adding the following clauses (24) and (25) at the end of subsection (a):

  
 “(24) No Reliance. Seller has made its own
independent decisions to enter into the Program Agreements and each Transaction and as to whether such Transaction is appropriate and proper for it based upon its own judgment and upon advice from such advisors (including without limitation, legal
counsel and accountants) as it has deemed necessary. Seller is not relying upon any advice from Buyer as to any aspect of the Transactions, including without limitation, the legal, accounting or tax treatment of such Transactions. 
  

 6 

 (25) Plan Assets. Seller is not an employee benefit plan as defined in Section 3 of Title I of
ERISA, or a plan described in Section 4975(e)(1) of the Code, and the Purchased Mortgage Loans are not “plan assets” within the meaning of 29 CFR §2510.3-101 in Seller’s hands.” 
  
 (b) deleting subsection (e)(1) in its entirety and replacing
it with the following: 
  
 “(1) Consolidated Tangible Net
Worth. For each fiscal quarter commencing after June 30, 2003, Seller shall maintain a Consolidated Tangible Net Worth of at least the sum of (i) $75,000,000 and (ii) 25% of Seller’s positive quarterly net income for such quarter.”

  
 (c) deleting subsection (e)(3) in its
entirety and replacing it with the following: 
  
 “(3)
Total Indebtedness to Consolidated Tangible Net Worth Ratio. At any time, Seller’s leverage ratio of total Indebtedness to Consolidated Tangible Net Worth shall not exceed 15:1.” 
  
 (d) deleting subsection (e)(4) in its entirety and replacing
it with the following: 
  
 (4) Interest Coverage Ratio.
For each fiscal quarter commencing after June 30, 2003, the ratio of Seller’s Consolidated EBITDA to Seller’s Consolidated Interest Expenses shall not be less than 1.25:1. 
  
 (e) adding the following clause (30) at the end of subsection (e): 
  
 “(30) Plan Assets. Seller shall not be an employee benefit plan
as defined in Section 3 of Title I of ERISA, or a plan described in Section 4975(e)(1) of the Code and Seller shall not use “plan assets” within the meaning of 29 CFR §2510.3-101 to engage in this Repurchase Agreement or any
Transaction hereunder.” 
  
 SECTION 3. Events of
Default. Section 14(f) of the Existing Master Repurchase Agreement is hereby amended by deleting it in its entirety and replacing it with the following: 
  
 “f. Breach of Financial Representation or Covenant. A material breach by Seller of any of the representations, warranties or covenants set
forth in Sections 13(a)(1), 13(a)(6), 13(a)(7), 13(a)(18), 13(a)(22), 13(e)(1), 13(e)(2), 13(e)(3), 13(e)(4), 13(e)(5), 13(e)(7), 13(e)(17), 13(e)(25) or 13(e)(30) of this Agreement.” 
  
 SECTION 4. Remedies Upon Default. Section 15 of the Existing Master
Repurchase Agreement is hereby amended by: 
  
 (a) inserting the following language at the end of subsection (d): 
  

 7 

 “Buyer shall also be entitled to sell any or all of such Mortgage Loans individually for the
prevailing price. Buyer shall also be entitled, in its sole discretion to elect, in lieu of selling all or a portion of such Purchased Mortgage Loans, to give Seller credit for such Purchased Mortgage Loans and the Repurchase Assets in an amount
equal to the Market Value of the Purchased Mortgage Loans against the aggregate unpaid Repurchase Price and any other amounts owing by Seller hereunder.” 
  

(b) inserting in the first sentence of subsection (e) after the words “from the liquidation of (i) the Purchased Mortgage
Loans” the words “and Repurchase Assets”; and 
  
 (c) inserting in the first sentence of subsection (f) after the words “(i) the amount of all reasonable legal or other expenses” the following language: 
  
 “(including, without limitation, all costs and expenses of Buyer in
connection with the enforcement of this Agreement or any other agreement evidencing a Transaction, whether in action, suit or litigation or bankruptcy, insolvency or other similar proceeding affecting creditors’ rights generally, further
including, without limitation, the reasonable fees and expenses of counsel (including the costs of internal counsel of Buyer)” 
  
 SECTION 5. Confidentiality. Section 30 of the Existing Master Repurchase Agreement is hereby amended by adding the following sentence at the end
thereof: 
  
 “Notwithstanding the foregoing or anything to
the contrary contained herein or in any other Program Agreement, the parties hereto may disclose to any and all Persons, without limitation of any kind, the federal income tax treatment of the Transactions, any fact relevant to understanding the
federal tax treatment of the Transactions, and all materials of any kind (including opinions or other tax analyses) relating to such federal income tax treatment; provided that Seller may not disclose the name of or identifying information
with respect to Buyer or any pricing terms (including, without limitation, the Pricing Rate, the Structure Fee, the Non-Utilization Fee, Purchase Price Percentage and Purchase Price) or other nonpublic business or financial information (including
any sublimits and financial covenants) that is unrelated to the purported or claimed federal income tax treatment of the Transactions and is not relevant to understanding the purported or claimed federal income tax treatment of the Transactions,
without the prior written consent of the Buyer.” 
  
 SECTION
6. Schedules. 
  
 (a) Representation and
Warranty (xx) in Schedule 1 of the Existing Master Repurchase Agreement is hereby amended by deleting it in its entirety and replacing it with the following: 
  

“(xx) Predatory Lending Regulations; High Cost Loans. None of the Mortgage Loans are classified as High Cost Mortgage Loans.”

  
 (b) The Existing Master Repurchase Agreement
is hereby amended by deleting Schedule 2 to the Existing Master Repurchase Agreement in its entirety and replacing it with Schedule 1 of this Amendment. 
  

 8 

 SECTION 7. Exhibits. Exhibit D to the Existing Master Repurchase Agreement is hereby amended by
deleting it in its entirety and replacing it with Exhibit A to this Amendment. 
  
 SECTION 8. Conditions Precedent. This Amendment shall become effective on December 1, 2003 (the “Amendment Effective Date”), subject to the satisfaction of the following conditions precedent:

  
 8.1 Delivered Documents. On the Amendment Effective
Date, the Buyer shall have received the following documents, each of which shall be satisfactory to the Buyer in form and substance: 
  
 (a) this Amendment, executed and delivered by the duly authorized officers of the Buyer and the Seller; and 
  
 (b) such other documents as the Buyer or counsel to the
Buyer may reasonably request. 
  
 SECTION 9. Representations
and Warranties. Seller hereby represents and warrants to the Buyer that it is in compliance with all the terms and provisions set forth in the Existing Master Repurchase Agreement on its part to be observed or performed, and that no Event of
Default has occurred or is continuing, and hereby confirms and reaffirms the representations and warranties contained in Section 13 of the Existing Master Repurchase Agreement. 
  
 SECTION 10. Limited Effect. Except as expressly amended and modified by this Amendment, the Existing Master
Repurchase Agreement shall continue to be, and shall remain, in full force and effect in accordance with its terms. 
  
 SECTION 11. Counterparts. This Amendment may be executed by each of the parties hereto on any number of separate counterparts, each of which shall
be an original and all of which taken together shall constitute one and the same instrument. 
  
 SECTION 12. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO THE CHOICE OF LAW PROVISIONS THEREOF. 

 
 [SIGNATURE PAGE FOLLOWS] 
  

 9 

 IN WITNESS WHEREOF, the parties have caused their names to be signed hereto by their respective officers
thereunto duly authorized as of the day and year first above written. 
  

					
	 Buyer:
	 	CREDIT SUISSE FIRST BOSTON MORTGAGE
CAPITAL LLC,
as Buyer
			
	 	 	By:	 	 /s/    JEFF DETWILER

	 	 	 	 	 Name: Jeff Detwiler

	 	 	 	 	 Title:

		
	 Seller:
	 	WMC MORTGAGE CORP.,
as Seller
			
	 	 	By:	 	 /s/ David Trzcinski

	 	 	 	 	 Name: David Trzcinski

	 	 	 	 	 Title: Chief Financial Officer

 SCHEDULE 1 TO AMENDMENT NO. 5 
  
 SCHEDULE 2 
 AUTHORIZED REPRESENTATIVES 
  
 SELLER NOTICES 

 

			
	 	  	        Address:
		
	 Name: WMC Mortgage Corp.
 Telephone: (818) 592-2530
 Facsimile:   (818) 712-2822
	  	  
 6320 Canoga Avenue
 Woodland Hills, CA 91367
 Attention:
David Trzcinski

		
	 With a copy to:
	  	 
		
	 	  	         Address:

		
	 Name: WMC Mortgage Corp.
 Telephone: (818) 592-2626
 Facsimile:   (818) 592-2605
	  	  
 6320 Canoga Avenue
 Woodland Hills, CA 91367
 Attention:
George M. Eshaghian, Esq.

  
 SELLER AUTHORIZATIONS

  
 Any of the persons whose signatures and titles appear below are
authorized, acting singly, to act for Seller under this Agreement: 
  

					
	Name	 	Title	 	Signature
	
	 	
	 	

  

 Schedule 1-1 

 BUYER NOTICES 
  

			
	  
 Name: Gary Timmerman

            Terry Farley
 Telephone: 609-627-5026
 Facsimile:   609-627-5011
	  	 Address:          Credit Suisse First
Boston
 Mortgage Capital LLC
 302 Carnegie Center, 2nd Floor
 Princeton, NJ 08540

  
 BUYER AUTHORIZATIONS

  
 Any of the persons whose signatures and titles appear below, including
any other authorized officers, are authorized, acting singly, to act for Buyer under this Agreement: 
  

					
	Name	 	Title	 	Signature
	
	 	
	 	

  
  

 Schedule 1-2 

 EXHIBIT A TO AMENDMENT NO. 5 
  
 EXHIBIT D 
  
 OFFICER’S COMPLIANCE CERTIFICATE 
  
 I,                     , do hereby certify that
I am duly elected, qualified and authorized officer of WMC Mortgage Corp. (“Seller”). This Certificate is delivered to you in connection with Section 16(b) of the Master Repurchase Agreement dated as of August 17, 2001, among
Seller, and Credit Suisse First Boston Mortgage Capital LLC, as amended from time to time (the “Agreement”). On behalf of WMC Mortgage Corp., I hereby certify that, as of the date of the financial statements attached hereto and as
of the date hereof, Seller is and has been in compliance with all the terms of the Agreement and, without limiting the generality of the foregoing, I certify that: 
  
 (a) Consolidated Tangible Net Worth. For the most recent fiscal quarter, Seller has maintained a
Consolidated Tangible Net Worth of at least the sum of (i) $75,000,000 and (ii) 25% of Seller’s positive quarterly net income for such quarter. A detailed summary of the calculation of the Seller’s actual Consolidated Tangible Net Worth is
provided in Schedule 1 hereto. 
  
 (b)
Non-Warehouse Debt to Consolidated Tangible Net Worth Ratio. Seller’s ratio of Indebtedness (excluding warehouse indebtedness as set forth on the Seller’s financial statements) to Consolidated Tangible Net Worth has not exceeded
2:1. 
  
 (c) Total Indebtedness to
Consolidated Tangible Net Worth Ratio. Seller’s leverage ratio of total Indebtedness to Consolidated Tangible Net Worth has not exceeded 15:1. 
  
 (d) Interest Coverage Ratio. The ratio of Seller’s Consolidated EBITDA to Seller’s Consolidated Interest Expenses has not
been less than 1.25:1. 
  
 (e) Maintenance of
Profitability. Net Income of Seller (excluding for purposes of this covenant, any amounts with respect to WMC Residco Inc.) before income taxes and distributions has not been less than $1.00. 
  
 (f) Insurance. Seller or its Affiliates has
maintained, for Seller and its subsidiaries and [Name], insurance coverage with respect to employee dishonesty, forgery or alteration, theft, disappearance and destruction, robbery and safe burglary, property (other than money and securities) and
computer fraud or an aggregate amount of at least $            . The actual amount of such coverage is
$            . 
  
 (g) Financial Statements. The financial statements attached hereto are accurate and complete, accurately reflect the financial
condition of Seller, and do not omit any material fact as of the date(s) thereof. 
  

 Exh. A-1 

 (h) Documentation. Seller has performed the documentation procedures required by
its operational guidelines with respect to endorsements and assignments, including the recordation of assignments, or has verified that such documentation procedures have been performed by a prior holder of such Mortgage Loan. 
  
 (i) Compliance. Seller has observed or performed in
all material respects all of its covenants and other agreements, and satisfied every condition, contained in the Agreement and the other Program Agreements to be observed, performed and satisfied by it. [If a covenant or other agreement or condition
has not been complied with by Seller, Seller shall describe such lack of compliance and provide the date of any related waiver thereof.] 
  
 (j) Regulatory Action. Seller is not currently under investigation or, to best of the Seller’s knowledge, no investigation by
any federal, state or local government agency is threatened. Seller has not been the subject of any government investigation which has resulted in the voluntary or involuntary suspension of a license, a cease and desist order, or such other action
as could adversely impact Seller’s business. [If so, Seller shall describe the situation in reasonable detail and describe the action that Seller has taken or proposes to take in connection therewith.] 
  
 (k) No Default. No Default or Event of Default has
occurred or is continuing. [If any Default or Event of Default has occurred and is continuing, Seller shall describe the same in reasonable detail and describe the action Seller has taken or proposes to take with respect thereto, and if such Default
or Event of Default has been expressly waived by Buyer in writing, Seller shall describe the Default or Event of Default and provide the date of the related waiver.] 
  
 (l) Indebtedness. All Indebtedness (other than Indebtedness evidenced by the Repurchase Agreement) of
Seller existing on the date hereof is listed on Schedule 2 hereto. 
  
 (m) Purchased Mortgage Loans. Attached hereto as Schedule 3 is a true and correct list of all Mortgage Loans purchased by Buyer and held by Custodian pending repurchase. 
  
 (n) Originations. Attached hereto as Schedule
4 is a true and correct summary of all Mortgage Loans originated by Buyer during the calendar quarter ending on [DATE]. 
  

 Exh. A-2 

 IN WITNESS WHEREOF, I have set my hand this      day of
                    ,             . 
  

			
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  
 Acknowledged and Agreed,

  
 WMC MORTGAGE CORP. 
  

			
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  

 Exh. A-3 

 SCHEDULE 1 TO OFFICER’S COMPLIANCE CERTIFICATE 
  
 CALCULATIONS OF FINANCIAL COVENANTS 
 As of the quarter ended [Date] 
  

					
	I.	  	Consolidated Tangible Net Worth	  	 
			
	IA.(a)	  	 	  	 
	1.	  	Total shareholders equity	  	$
			
	 	  	Less:	  	 
	2.	  	Goodwill	  	$
	5.	  	Patents	  	$
	6.	  	Trade names	  	$
	7.	  	Trademarks	  	$
	8.	  	Copyrights	  	$
	9.	  	Franchises	  	$
	10.	  	Organizational expense	  	$
	11.	  	Deferred expenses	  	$
	12.	  	Any other intangible assets	  	$
			
	IA.(b)	  	Total of items 1-12	  	$
			
	IA.(c)	  	Actual Consolidated Tangible Net Worth (a minus b)	  	$
	 	  	Consolidated Tangible Net Worth Covenant	  	$75,000,000
+25% pos.
net income
	 	  	Compliance?	  	Yes / No
			
	IB.(a)	  	 	  	 
			
	1.	  	The lesser of Seller’s book value and the then current market value of any retained interest in mortgage loan securitizations (including any residual securities therein)	  	$
	 	  	and	  	 
	2.	  	The outstanding principal balance of any Indebtedness incurred and secured solely by Residual Interests	  	$
	3.	  	The difference between 1 and 2 above	  	$
			
	IB.(b)	  	Actual Adjusted Consolidated Tangible Net Worth (IA.(c) minus IB.(a)(3))	  	$
	 	  	Adjusted Consolidated Tangible Net Worth Covenant	  	$45,000,000

  

 Exh. A-4 

					
	 	  	Compliance?	  	Yes / No
			
	II.	  	Non-Warehouse Leverage Ratio	  	 
			
	 	  	Total Debt (excluding warehouse indebtedness as set forth on the Seller’s financial statements) divided by Consolidated Tangible Net Worth – Actual	  	xx.x
	 	  	Non-Warehouse Leverage Covenant	  	2.1
	 	  	Compliance?	  	Yes / No
			
	III.	  	Leverage Ratio	  	 
			
	 	  	Total Debt divided by Consolidated Tangible Net Worth – Actual	  	xx.x
	 	  	Leverage Covenant	  	15.1
	 	  	Compliance?	  	Yes / No
			
	IV.	  	Interest Coverage Ratio	  	 
			
	 	  	Consolidated EBITDA divided by Consolidated Interest Expenses – Actual	  	xx.x
	 	  	Interest Coverage Covenant	  	1.25.1
	 	  	Compliance?	  	Yes / No

  

 Exh. A-5 

 SCHEDULE 2 TO OFFICER’S COMPLIANCE CERTIFICATE 
  
 INDEBTEDNESS as of
                     
  

					
	LENDER	 	TOTAL COMMITMENT	 	 OUTSTANDING
 INDEBTEDNESS

	
	 	
	 	

  

 Exh. A-6 

 SCHEDULE 3 TO OFFICER’S COMPLIANCE CERTIFICATE 
  
 PURCHASED MORTGAGE LOANS 
  

 Exh. A-7 

 SCHEDULE 4 TO OFFICER’S COMPLIANCE CERTIFICATE 
  
 OVERALL MORTGAGE LOAN ORIGINATIONS 
  

					
	 MORTGAGE LOAN TYPE

	  	 TOTAL NUMBER OF
 MORTGAGE LOANS
 ORIGINATED

	  	 AGGREGATE PRINCIPAL
 BALANCE OF MORTGAGE
 LOANS ORIGINATED

	 Alt-A Mortgage Loans
	  	 	  	 
	 Conforming Mortgage Loans
	  	 	  	 
	 Jumbo Mortgage Loans
	  	 	  	 
	 Second Lien Mortgage Loans
	  	 	  	 
	 Sub-Prime Mortgage Loans
	  	 	  	 

  

 Exh. A-8Second Amended and Restated Warehousing Credit and Security Agreement

  
 EXHIBIT 10.2

  
 [GRAPHIC] 
  
 SECOND AMENDED AND RESTATED WAREHOUSING 
 CREDIT AND SECURITY AGREEMENT 
  
 BETWEEN 
  
 WMC MORTGAGE CORP., 
 a California corporation 
  
 AND 
  
 RESIDENTIAL FUNDING CORPORATION, 
 a Delaware corporation 
  
 Dated as of October 31, 2003 

  
 TABLE OF CONTENTS

  

							
	  1.	  	THE CREDIT	  	1-1
				
	 	  	1.1.  	  	 The Warehousing Commitment
	  	1-1
	 	  	1.2.  	  	 Expiration of Warehousing Commitment
	  	1-1
	 	  	1.3.  	  	 Notes
	  	1-2
			
	  2.	  	PROCEDURES FOR OBTAINING ADVANCES	  	2-1
				
	 	  	2.1.  	  	 Warehousing Advances
	  	2-1
			
	  3.	  	INTEREST, PRINCIPAL AND FEES	  	3-1
				
	 	  	3.1.  	  	 Interest
	  	3-1
	 	  	3.2.  	  	 Interest Limitation
	  	3-2
	 	  	3.3.  	  	 Principal Payments
	  	3-2
	 	  	3.4.  	  	 Buydowns
	  	3-4
	 	  	3.5.  	  	 Warehousing Commitment Fees
	  	3-5
	 	  	3.6.  	  	 Loan Package Fees, Wire Fees, Warehousing Fees
	  	3-5
	 	  	3.7.  	  	 Miscellaneous Fees and Charges
	  	3-5
	 	  	3.8.  	  	 Overdraft Advances
	  	3-5
	 	  	3.9.  	  	 Method of Making Payments
	  	3-6
			
	  4.	  	COLLATERAL	  	4-1
				
	 	  	4.1.  	  	 Grant of Security Interest
	  	4-1
	 	  	4.2.  	  	 Maintenance of Collateral Records
	  	4-3
	 	  	4.3.  	  	 Release of Security Interest in Pledged Assets
	  	4-3
	 	  	4.4.  	  	 Collection and Servicing Rights
	  	4-4
	 	  	4.5.  	  	 Return of Collateral at End of Warehousing Commitment
	  	4-4
	 	  	4.6.  	  	 Delivery of Collateral Documents
	  	4-5
			
	  5.	  	CONDITIONS PRECEDENT	  	5-1
				
	 	  	5.1.  	  	 Initial Advance
	  	5-1
	 	  	5.2.  	  	 Each Advance
	  	5-2
	 	  	5.3.  	  	 Force Majeure
	  	5-2
			
	  6.	  	GENERAL REPRESENTATIONS AND WARRANTIES	  	6-1
				
	 	  	6.1.  	  	 Place of Business
	  	6-1
	 	  	6.2.  	  	 Organization; Good Standing; Subsidiaries
	  	6-1
	 	  	6.3.  	  	 Authorization and Enforceability
	  	6-1
	 	  	6.4.  	  	 Approvals
	  	6-1
	 	  	6.5.  	  	 Financial Condition
	  	6-2
	 	  	6.6.  	  	 Litigation
	  	6-2
	 	  	6.7.  	  	 Compliance with Laws
	  	6-2
	 	  	6.8.  	  	 Regulation U
	  	6-2
	 	  	6.9.  	  	 Investment Company Act
	  	6-2
	 	  	6.10.	  	 Payment of Taxes
	  	6-3
	 	  	6.11.	  	 Agreements
	  	6-3
	 	  	6.12.	  	 Title to Properties
	  	6-3
	 	  	6.13.	  	 ERISA
	  	6-3
	 	  	6.14.	  	 No Retiree Benefits
	  	6-4
	 	  	6.15.	  	 Assumed Names
	  	6-4
	 	  	6.16.	  	 Servicing
	  	6-4
			
	  7.	  	AFFIRMATIVE COVENANTS	  	7-1
				
	 	  	7.1.  	  	 Payment of Obligations
	  	7-1

  

							
	 	  	7.2.  	  	 Financial Statements
	  	7-1
	 	  	7.3.  	  	 Other Borrower Reports
	  	7-2
	 	  	7.4.  	  	 Maintenance of Existence; Conduct of Business
	  	7-2
	 	  	7.5.  	  	 Compliance with Applicable Laws
	  	7-3
	 	  	7.6.  	  	 Inspection of Properties and Books; Operational Reviews
	  	7-3
	 	  	7.7.  	  	 Notice
	  	7-3
	 	  	7.8.  	  	 Payment of Debt, Taxes and Other Obligations
	  	7-3
	 	  	7.9.  	  	 Insurance
	  	7-4
	 	  	7.10.	  	 Closing Instructions
	  	7-4
	 	  	7.11.	  	 Other Loan Obligations
	  	7-4
	 	  	7.12.	  	 ERISA
	  	7-4
	 	  	7.13.	  	 Use of Proceeds of Warehousing Advances
	  	7-5
			
	  8.	  	NEGATIVE COVENANTS	  	8-1
				
	 	  	8.1.  	  	 Contingent Liabilities
	  	8-1
	 	  	8.2.  	  	 Pledge of Servicing Contracts
	  	8-1
	 	  	8.3.  	  	 Restrictions on Fundamental Changes
	  	8-1
	 	  	8.4.  	  	 Loss of Eligibility
	  	8-2
	 	  	8.5.  	  	 Accounting Changes
	  	8-2
	 	  	8.6.  	  	 Leverage Ratio
	  	8-2
	 	  	8.7.  	  	 Minimum Tangible Net Worth
	  	8-2
	 	  	8.8.  	  	 Net Operating Losses
	  	8-2
	 	  	8.9.  	  	 Minimum Liquid Assets
	  	8-2
	 	  	8.10.	  	 Distributions to Shareholders
	  	8-2
	 	  	8.11.	  	 Transactions with Affiliates
	  	8-2
	 	  	8.12.	  	 Recourse Servicing Contracts
	  	8-3
			
	  9.	  	SPECIAL REPRESENTATIONS, WARRANTIES AND COVENANTS CONCERNING COLLATERAL	  	9-1
				
	 	  	9.1.  	  	 Special Representations and Warranties Concerning Eligibility as Seller/Servicer of Mortgage Loans
	  	9-1
	 	  	9.2.  	  	 Special Representations and Warranties Concerning Warehousing Collateral
	  	9-1
	 	  	9.3.  	  	 Special Representations Concerning REO Properties
	  	9-3
	 	  	9.4.  	  	 Special Affirmative Covenants Concerning Warehousing Collateral
	  	9-4
	 	  	9.5.  	  	 Special Affirmative Covenants Concerning REO Properties
	  	9-5
	 	  	9.6.  	  	 Special Negative Covenants Concerning Warehousing Collateral
	  	9-5
			
	10.	  	DEFAULTS; REMEDIES	  	10-1
				
	 	  	10.1.  	  	 Events of Default
	  	10-1
	 	  	10.2.  	  	 Remedies
	  	10-2
	 	  	10.3.  	  	 Application of Proceeds
	  	10-5
	 	  	10.4.  	  	 Lender Appointed Attorney-in-Fact
	  	10-5
	 	  	10.5.  	  	 Right of Set-Off
	  	10-5
			
	11.	  	MISCELLANEOUS	  	11-1
				
	 	  	11.1.  	  	 Notices
	  	11-1
	 	  	11.2.  	  	 Reimbursement Of Expenses; Indemnity
	  	11-1
	 	  	11.3.  	  	 Financial Information
	  	11-2
	 	  	11.4.  	  	 Terms Binding Upon Successors; Survival of Representations
	  	11-2
	 	  	11.5.  	  	 Assignment
	  	11-2
	 	  	11.6.  	  	 Amendments
	  	11-2
	 	  	11.7.  	  	 Governing Law
	  	11-2
	 	  	11.8.  	  	 Participations
	  	11-3
	 	  	11.9.  	  	 Relationship of the Parties
	  	11-3
	 	  	11.10.	  	 Severability
	  	11-3
	 	  	11.11.	  	 Consent to Credit References
	  	11-3
	 	  	11.12.	  	 Counterparts
	  	11-3

  

							
	 	  	11.13.	  	 Headings/Captions
	  	11-4
	 	  	11.14.	  	 Entire Agreement
	  	11-4
	 	  	11.15.	  	 Consent to Jurisdiction
	  	11-4
	 	  	11.16.	  	 Waiver of Jury Trial
	  	11-4
	 	  	11.17.	  	 Waiver of Punitive, Consequential, Special or Indirect Damages
	  	11-5
			
	12.	  	DEFINITIONS	  	12-1
				
	 	  	12.1.  	  	 Defined Terms
	  	12-1
	 	  	12.2.  	  	 Other Definitional Provisions; Terms of Construction
	  	12-11

  

 EXHIBITS 
  

			
		
	Exhibit A	  	Request for Advance Against Eligible Loans
		
	Exhibit A-REO	  	Request for Advance (REO Properties)
		
	Exhibit B	  	Procedures and Documentation for Warehousing Mortgage Loans
		
	Exhibit B-REO	  	Procedures and Documentation for Warehousing REO Properties
		
	Exhibit B-REP-NP	  	Procedures and Documentation for Warehousing Repurchased Mortgage Loans and Nonperforming Mortgage Loans
		
	Exhibit C	  	Schedule of Servicing Portfolio
		
	Exhibit D	  	Subsidiaries
		
	Exhibit E	  	Compliance Certificate
		
	Exhibit F	  	Schedule of Lines of Credit
		
	Exhibit G	  	Assumed Names
		
	Exhibit H	  	Eligible Loans and Other Assets
		
	Exhibit I	  	Collateral Operations Fee Schedule
		
	Exhibit J	  	Commitment Summary Report

  

 SECOND AMENDED AND RESTATED WAREHOUSING 
 CREDIT AND SECURITY AGREEMENT 
  
 SECOND AMENDED AND RESTATED WAREHOUSING CREDIT AND SECURITY AGREEMENT, dated as of October 31, 2003 between WMC MORTGAGE CORP., a California corporation (“Borrower”), and RESIDENTIAL FUNDING
CORPORATION, a Delaware corporation (“Lender”). 
  

	A.	 	Borrower has requested certain financing from Lender. 

  

	B.	 	Borrower has asked Lender to amend and restate the Existing Agreement (as defined below) and to set forth the terms and conditions upon which Lender will provide certain financing
to Borrower. 

  

	C.	 	Lender has agreed to amend and restate the Existing Agreement to provide that financing to Borrower subject to the terms and conditions of this Agreement. 

 

	D.	 	Subject to Borrower’s satisfaction of the conditions set forth in Article 5, the “Closing Date” for the transactions contemplated by this Agreement is the date
set forth as the Closing Date on the signature page to this Agreement. 

  
 NOW, THEREFORE, the parties to this Agreement agree as follows: 
  

	1.	 	THE CREDIT 

  

	1.1.	 	The Warehousing Commitment 

  
 On the terms and subject to the conditions and limitations of this Agreement, including Exhibit H, Lender agrees to make Warehousing Advances to Borrower from the
Closing Date to the Business Day immediately preceding the Warehousing Maturity Date, during which period Borrower may borrow, repay and reborrow in accordance with the provisions of this Agreement. Lender has no obligation to make Warehousing
Advances in excess of the Warehousing Commitment Amount. While a Default or Event of Default exists, Lender may refuse to make any additional Warehousing Advances to Borrower. Effective as of the Closing Date, all outstanding loans made under the
Existing Agreement are deemed to be the initial Warehousing Advances made under this Agreement. All Warehousing Advances under this Agreement constitute a single indebtedness, and all of the Collateral is security for the Notes and for the
performance of all of the Obligations. 
  

	1.2.	 	Expiration of Warehousing Commitment 

  
 The Warehousing Commitment expires on the earlier of (“Warehousing Maturity Date”): (a) November 15, 2005, as such date may be extended in writing by
Lender, in its sole discretion, on which date the Warehousing Commitment will expire of its own term and the Warehousing Advances will become due and payable without the necessity of Notice or action by Lender; and (b) the date the Warehousing
Commitment is terminated and the Warehousing Advances become due and payable under Section 10.2. 
  

 Page 1-1 

	1.3.	 	Notes 

  
 Warehousing Advances, other than Warehousing Advances against REO Properties, are evidenced by Borrower’s promissory note, payable to Lender on the form prescribed by Lender (“Warehousing Note”).
Warehousing Advances against REO Properties are evidenced by Borrower’s promissory note, payable to Lender on the form prescribed by Lender (“Sublimit Note”). The terms “Warehousing Note,” “Sublimit Note,”
and “Notes” as used in this Agreement include all amendments, restatements, renewals or replacements of the original Warehousing Note and Sublimit Note and all substitutions for them. All terms and provisions of the Warehousing Note and
Sublimit Note are incorporated into this Agreement. 
  
 End of
Article 1 
  

 Page 1-2 

	2.	 	PROCEDURES FOR OBTAINING ADVANCES 

  

	2.1.	 	Warehousing Advances 

  
 To obtain a Warehousing Advance under this Agreement, Borrower must deliver to Lender either a completed and signed request for a Warehousing Advance on the then current form approved by Lender, or an Electronic
Advance Request, together with a list of the Mortgage Loans for which the request is being made and a signed RFConnects Pledge Agreement sent by facsimile (“Warehousing Advance Request”), not later than (i) in the case of Electronic
Advance Requests, 3:30 p.m. on the Business Day, and (ii) in all other cases, 1 Business Day before the Business Day on which Borrower desires the Warehousing Advance. Subject to the delivery of a Warehousing Advance Request and the satisfaction of
the conditions set forth in Sections 5.1 and 5.2, Borrower may obtain a Warehousing Advance under this Agreement upon compliance with the procedures set forth in this Section and in the applicable Exhibit B, including delivery to Lender of
all required Collateral Documents. Lender’s current form of Warehousing Advance Request is set forth in the applicable Exhibit A. Upon not less than 3 Business Days’ prior Notice to Borrower, Lender may modify its form of
Warehousing Advance Request, RFConnects Pledge Agreement and any other Exhibit or document referred to in this Section to conform to current legal requirements or Lender practices and, as so modified, those Exhibits and documents will become part of
this Agreement. 
  
 End of Article 2 
  

 Page 2-1 

	3.	 	INTEREST, PRINCIPAL AND FEES 

  

	3.1.	 	Interest 

  

	3.1 (a)	 	Except as otherwise provided in this Section, Borrower must pay interest on the unpaid amount of each Warehousing Advance from the date the Warehousing Advance is made until it is
paid in full at the Interest Rate specified in Exhibit H. 

  

	3.1 (b)	 	As long as no Default or Event of Default exists, Borrower is entitled to receive a benefit in the form of an “Earnings Credit” on the portion of the Eligible
Balances maintained in time deposit accounts with a Designated Bank, and Borrower is entitled to receive a benefit in the form of an “Earnings Allowance” on the portion of the Eligible Balances maintained in demand deposit accounts
with a Designated Bank. Any Earnings Allowance will be used first and any Earnings Credit will be used second as a credit against Miscellaneous Fees and Charges (including Designated Bank Charges), Warehousing Fees, Wire Fees, Warehousing Commitment
Fees, Loan Package Fees, and any other fees payable under this Agreement, and may be used, at Lender’s option, to reduce accrued interest. Any Earnings Allowance not used during the month in which the benefit was received will be accumulated
and must be used within 6 months of the month in which the benefit was received. As long as no Default or Event of Default exists, any Earnings Credit not used during the month in which the benefit was received will be used to provide a cash benefit
to Borrower. Any Earnings Credit retained by Lender as a result of a Default or Event of Default will be applied to the payment of Borrower’s Obligations in the order Lender determines in its sole discretion. The Earnings Credit and the
Earnings Allowance for any month will be determined by Lender in its sole discretion and Lender’s determination of those amounts is conclusive and binding absent manifest error. In no event will the benefit received by Borrower exceed the
Depository Benefit. 

  
 Either party to this
Agreement may terminate the benefits provided for in this Section effective immediately upon Notice to the other party, if the terminating party determines (which determination is conclusive and binding on the other party, absent manifest error) at
any time that any applicable law, rule, regulation, order or decree or any interpretation or administration of such law, rule, regulation, order or decree by any governmental authority charged with its interpretation or administration, or compliance
by such party with any request or directive (whether or not having the force of law) of any such authority, makes it unlawful or impossible for the party sending the Notice to continue to offer or receive the benefits provided for in this Section.
No Notice is required for a termination of benefits as a result of a Default or Event of Default. 
  

	3.1 (c)	 	Lender computes interest on the basis of the actual number of days in each month and a year of 360 days (“Accrual Basis”). Borrower must pay interest monthly in
arrears, not later than 9 days after the date of Lender’s invoice or, if applicable, 2 days after the date of Lender’s account analysis statement, commencing with the first month following the Closing Date and on the Warehousing Maturity
Date. 

  

	3.1 (d)	 	If, for any reason Borrower repays a Warehousing Advance on the same day that it was made by Lender, Borrower agrees to pay to Lender an administrative fee equal to 1 day of
interest on that Warehousing Advance at the Interest Rate that would otherwise be applicable under Exhibit H. Borrower must pay all administrative fees within 9 days after the date of Lender’s invoice or, if applicable, within 2 days
after the date of Lender’s account analysis statement. 

  

 Page 3-1 

	3.1 (e)	 	After an Event of Default occurs and upon Notice to Borrower by Lender, the unpaid amount of each Warehousing Advance will bear interest at the Default Rate until paid in full.

  

	3.1 (f)	 	Lender will adjust the rates of interest provided for in this Agreement as of the effective date of each change in the applicable index. Lender’s determination of such rates of
interest as of any date of determination are conclusive and binding, absent manifest error. 

  

	3.2.	 	Interest Limitation 

  
 Lender does not intend, by reason of this Agreement, the Notes or any other Loan Document, to receive interest in excess of the amount permitted by applicable law. If Lender receives any interest in excess of the
amount permitted by applicable law, whether by reason of acceleration of the maturity of this Agreement, the Notes or otherwise, Lender will apply the excess to the unpaid principal balance of the Warehousing Advances and not to the payment of
interest. If all Warehousing Advances have been paid in full and the Warehousing Commitment has expired or has been terminated, Lender will remit any excess to Borrower. This Section controls every other provision of all agreements between Borrower
and Lender and is binding upon and available to any subsequent holder of the Notes. 
  

	3.3.	 	Principal Payments 

  

	3.3 (a)	 	Borrower must pay Lender the outstanding principal amount of all Warehousing Advances on the Warehousing Maturity Date. 

  

	3.3 (b)	 	Except as otherwise provided in Section 3.1, Borrower may prepay any portion of the Warehousing Advances without premium or penalty at any time. 

  

	3.3 (c)	 	Borrower must pay to Lender, without the necessity of prior demand or Notice from Lender, and Borrower authorizes Lender to cause the Funding Bank to charge Borrower’s
Operating Account for, the amount of any outstanding Warehousing Advance against a specific Pledged Asset upon the earliest occurrence of any of the following events: 

  

	 	(1)	One (1) Business Day elapses from the date a Warehousing Advance was made if the Pledged Loan to be funded by that Warehousing Advance is not closed and funded.

  

	 	(2)	Ten (10) Business Days elapse without the return of a Collateral Document delivered by Lender to Borrower under a Trust Receipt for correction or completion.

  

	 	(3)	On the date on which a Pledged Loan is determined to have been originated based on untrue, incomplete or inaccurate information or otherwise to be subject to fraud, whether or not
Borrower had knowledge of the misrepresentation, incomplete or incorrect information or fraud, on the date on which Borrower knows, has reason to know, or receives Notice from Lender, that (A) one or more of the representations and warranties set
forth in Article 9 were inaccurate or incomplete in any material respect on any date when made or deemed made, or (B) Borrower has failed to perform or comply with any covenant, term or condition set forth in Article 9. 

  

 Page 3-2 

	 	(4)	Except in the case of a Nonperforming Mortgage Loan, on the date the Pledged Loan or a Lien prior to the Mortgage securing repayment of the Pledged Loan is defaulted and remains in
default for a period of 60 days or more. 

  

	 	(5)	Upon the sale, other disposition or prepayment of any Pledged Asset or, with respect to a Pledged Loan included in an Eligible Mortgage Pool, upon the sale or other disposition of
the related Agency Security. 

  

	 	(6)	One (1) Business Day immediately preceding the date scheduled for the foreclosure or trustee sale of the premises securing a Pledged Loan (provided, that a Warehousing Advance may
be against the resulting REO Property to the extent provided, and under the outstanding terms and conditions set forth in this Agreement). 

  

	3.3 (d)	 	Upon telephonic or written Notice to Borrower by Lender, Borrower must pay to Lender, and Borrower authorizes Lender to cause the Funding Bank to charge Borrower’s Operating
Account for, the amount of any outstanding Warehousing Advance against a specific Pledged Asset upon the earliest occurrence of any of the following events: 

  

	 	(1)	For any Pledged Loan, other than an Aged Mortgage Loan, the Standard Warehouse Period elapses and, for any Aged Mortgage Loan, the Aged Warehouse Period elapses.

  

	 	(2)	Forty-five (45) days elapse from the date a Pledged Loan was delivered to an Investor or Approved Custodian for examination and purchase or for inclusion in a Mortgage Pool, without
the purchase being made or an Eligible Mortgage Pool being initially certified, or upon rejection of a Pledged Loan as unsatisfactory by an Investor or Approved Custodian. 

  

	 	(3)	Seven (7) Business Days elapse from the date a Wet Settlement Advance was made against a Pledged Loan other than a Repurchased Mortgage Loan without receipt by Lender of all
Collateral Documents relating to the Pledged Loan. 

  

	 	(4)	Three (3) Business Days after the mandatory delivery date of the related Purchase Commitment if the specific Pledged Loan or the Pledged Security backed by that Pledged Loan has not
been delivered under the Purchase Commitment prior to such mandatory delivery date, or on the date the related Purchase Commitment expires or is terminated, unless, in each case, the Pledged Loan or Pledged Security is eligible for delivery to
another Investor under a comparable Purchase Commitment. 

  

	 	(5)	Twenty (20) Business Days elapse from the date a Wet Settlement Advance was made against a Repurchased Mortgage Loan without receipt by Lender of all Collateral Documents relating
to the Pledged Loan. 

  

	 	(6)	For a Warehousing Advance against REO Property, on the date that is the earlier of (A) 365 days from the date of the Warehousing Advance against the related Pledged Loan, (B) the
sale, transfer or other disposition of the REO Property, or (C) the date that the Receivable related to the REO Property against which the Warehousing Advance was made is collected by Borrower. 

  

	 	(7)	With respect to any Pledged Loan, any of the Collateral Documents, upon examination by Lender, are found not to be in compliance with the requirements of this Agreement which
non-compliance continues for a period of 10 days after Notice. 

  

 Page 3-3 

	3.3 (e)	 	In addition to the payments required by Sections 3.3(a), 3.3(c) and 3.3(d), if the principal amount of any Pledged Loan is prepaid in whole or in an amount of $10,000 or more while
a Warehousing Advance is outstanding against the Pledged Loan, Borrower must pay to Lender, without the necessity of prior demand or Notice from Lender, and Borrower authorizes Lender to cause the Funding Bank to charge Borrower’s Operating
Account for, the amount of the prepayment, to be applied against the Warehousing Advance. 

  

	3.3 (f)	 	The proceeds of the sale or other disposition of Pledged Assets must be paid directly by the Investor to the Cash Collateral Account. Borrower must give Notice to Lender in writing
or by telephone or by RFConnects Delivery to Lender (and if by telephone, followed promptly by written Notice) of the Pledged Assets for which proceeds have been received. Upon receipt of Borrower’s Notice, Lender will apply any proceeds
deposited into the Cash Collateral Account to the payment of the Warehousing Advances related to the Pledged Assets identified by Borrower in its Notice, and those Pledged Assets will be considered to have been redeemed from pledge. Lender is
entitled to rely upon Borrower’s affirmation that deposits in the Cash Collateral Account represent payments from Investors for the purchase of the Pledged Assets specified by Borrower in its Notice. If the payment from an Investor for the
purchase of Pledged Assets is less than the outstanding Warehousing Advances against the Pledged Assets identified by Borrower in its Notice, Borrower must pay to Lender, and Borrower authorizes Lender to cause the Funding Bank to charge
Borrower’s Operating Account in, an amount equal to that deficiency. As long as no Default or Event of Default exists, Lender will return to Borrower any excess payment from an Investor for Pledged Assets. 

  

	3.3 (g)	 	Lender reserves the right to revalue any Pledged Loan or REO Property. Borrower must pay to Lender, without the necessity of prior demand or Notice from Lender, and Borrower
authorizes Lender to cause the Funding Bank to charge Borrower’s Operating Account for, any amount required after any such revaluation to reduce the principal amount of the Warehousing Advance outstanding against the revalued Pledged Loan or
REO Property to an amount equal to the Advance Rate for the applicable type of Eligible Loan or REO Property multiplied by the Fair Market Value of the Mortgage Loan or REO Property. 

  

	3.4.	 	Buydowns 

  
 Borrower may prepay a portion of the Warehousing Advances outstanding against Subprime Mortgage Loans (a “Buydown”) upon Notice to Lender not later than (a) 1:00 p.m. on the Business Day immediately
preceding the Business Day on which Borrower desires to make a Buydown in the amount of $10,000,000 or more or (b) 1:00 p.m. on the Business Day on which Borrower desires to make a Buydown in an amount less than $10,000,000. Each Buydown must be in
an amount not less than $5,000, and Buydowns may not exceed the aggregate principal balance of the Warehousing Advances outstanding against Subprime Mortgage Loans. A Buydown is a reduction in the aggregate amount of the Warehousing Advances
outstanding against Subprime Mortgage Loans, but does not represent the prepayment of any particular Warehousing Advance, and does not entitle Borrower to the release of any Collateral. Lender may apply Buydowns to reduce interest payable by
Borrower on outstanding Warehousing Advances in any order that Lender determines in its sole discretion. Unless a Default or Event of Default exists, Borrower may reborrow all or any portion of a Buydown upon Notice to Lender not later than (m) 1:00
p.m. on the Business Day immediately preceding the Business Day on which borrower desires to reborrow $10,000,000 or more or (n) 1:00 p.m. on the Business Day that Borrower desires to reborrow an amount less than $10,000,000. If Lender receives
Buydowns or a combination of Buydowns and payments of Warehousing Advances that exceed the aggregate principal balance of the Warehousing Advances outstanding against Subprime Mortgage Loans (an “Excess Buydown”), as long as no
Default or Event of Default exists, Borrower may reborrow 

  

 Page 3-4 

 
(or receive a refund if no Warehousing Advances are outstanding) all or any portion of an Excess Buydown upon Notice to Lender not later than (y) 1:00 p.m.
on the Business Day immediately preceding the Business Day on which Borrower desires to reborrow $10,000,000 or more or (z) 1:00 p.m. on the Business Day that Borrower desires to reborrow an amount less than $10,000,000. Alternatively, Lender may,
in its sole discretion, re-advance to Borrower all or any portion of an Excess Buydown by causing the Funding Bank to credit the Operating Account in that amount. Lender has no obligation to pay or otherwise provide to Borrower any interest,
dividends or other benefits on an Excess Buydown. 
  

	3.5.	 	Warehousing Commitment Fees 

  
 Borrower must pay Lender a fee (“Warehousing Commitment Fee”) in the amount set forth in Exhibit I. The Warehousing Commitment Fee is payable
quarterly in advance. On the Closing Date, Borrower must pay the prorated portion of the Warehousing Commitment Fee due from the Closing Date to the last day of the current Calendar Quarter. After the Closing Date, Borrower must pay the Warehousing
Commitment Fee within 9 days after the date of Lender’s invoice or, if applicable, within 2 days after the date of Lender’s account analysis statement. If the date set forth in clause (a) of the definition of Warehousing Maturity Date
occurs on a day other than the last day of a Calendar Quarter, Borrower must pay the prorated portion of the Warehousing Commitment Fee due from the beginning of the then current Calendar Quarter to and including that date. Borrower is not entitled
to a reduction in the amount of the Warehousing Commitment Fee if (a) the Warehousing Commitment Amount is reduced or (b) the Warehousing Commitment is terminated at the request of Borrower or as a result of an Event of Default. If the Warehousing
Commitment terminates at the request of Borrower or as a result of an Event of Default, Borrower must pay, on the date of termination, a Warehousing Commitment Fee on the Warehousing Commitment Amount in effect immediately prior to termination, for
the period from the date of termination to and including the date set forth in clause (a) of the definition of Warehousing Maturity Date on the date of such termination. Lender’s determination of the Warehousing Commitment Fee for any period is
conclusive and binding, absent manifest error. 
  

	3.6.	 	Loan Package Fees, Wire Fees, Warehousing Fees 

  
 At the time of each Warehousing Advance against an Eligible Loan or REO Property, Borrower will incur a loan package fee (“Loan Package Fee”) and a wire
fee (“Wire Fee”). Loan Package Fees and Wire Fees may, at Lender’s discretion, be billed separately or combined into a single warehousing fee (“Warehousing Fee”). Borrower must pay all Loan Package Fees, Wire
Fees or Warehousing Fees in the amount set forth in Exhibit I within 9 days after the date of Lender’s invoice or, if applicable, within 2 days after the date of Lender’s account analysis statement. 
  

	3.7.	 	Miscellaneous Fees and Charges 

  
 Borrower must reimburse Lender for all Miscellaneous Fees and Charges. Borrower must pay all Miscellaneous Fees and Charges within 9 days after the date of Lender’s
invoice or, if applicable, within 2 days after the date of Lender’s account analysis statement. 
  

	3.8.	 	Overdraft Advances 

  
 If, under the authorization given by Borrower in the Funding Bank Agreement or pursuant to this Agreement, Lender debits Borrower’s Operating Account or directs the Funding Bank to honor an item presented against
the Operating Account or against the Check Disbursement Account, and that debit or direction results in an overdraft, Lender may make an additional Warehousing Advance to fund that overdraft (“Overdraft Advance”). Borrower must pay
(a) the outstanding amount of any Overdraft Advance, within 1 Business Day after the date of the Overdraft Advance, 

  

 Page 3-5 

 
and (b) interest on the amount of the Overdraft Advance, at a rate per annum equal to the Bank One Prime Rate plus 2%, within 9 days after the date of
Lender’s invoice or, if applicable, within 2 days after the date of Lender’s account analysis statement. 
  

	3.9.	 	Method of Making Payments 

  

	3.9 (a)	 	Unless otherwise specified in this Agreement, Borrower must make all payments under this Agreement to Lender by the close of business on the date when due unless the date is not a
Business Day. If the due date is not a Business Day, payment is due on, and interest will accrue to, the next Business Day. Borrower must make all payments in United States dollars in immediately available funds transferred by wire to accounts
designated by Lender. 

  

	3.9 (b)	 	Borrower authorizes Lender to cause the Funding Bank to charge Borrower’s Operating Account for any interest or fees due and payable to Lender on or after the 9th day after the
date of Lender’s invoice or, if applicable, on or after the 2nd day after the date of Lender’s account analysis statement, without the necessity of prior demand or Notice from Lender. 

  

	3.9 (c)	 	While a Default or Event of Default exists, Borrower authorizes Lender to cause the Funding Bank to charge Borrower’s Operating Account for any Obligations due and payable to
Lender, without the necessity of prior demand or Notice from Lender. 

  
 End of Article 3 
  

 Page 3-6 

	4.	 	COLLATERAL 

  

	4.1.	 	Grant of Security Interest 

  
 As security for the payment of the Notes and for the performance of all of Borrower’s Obligations, Borrower grants a security interest to Lender in all of
Borrower’s right, title and interest in and to the following described property (“Collateral”): 
  

	4.1 (a)	 	All amounts advanced by Lender to or for the account of Borrower under this Agreement to fund a Mortgage Loan until that Mortgage Loan is closed and those funds disbursed.

  

	4.1 (b)	 	All Mortgage Loans, including all Mortgage Notes, Mortgages and Security Agreements evidencing or securing those Mortgage Loans, that are delivered or caused to be delivered to
Lender (including delivery to a third party on behalf of Lender), or that otherwise come into the possession, custody or control of Lender (including the possession, custody or control of a third party on behalf of Lender) for the purpose of pledge
or in respect of which Lender has made a Warehousing Advance under this Agreement (collectively, “Pledged Loans”). 

  

	4.1 (c)	 	All Mortgage-backed Securities that are created in whole or in part on the basis of Pledged Loans or that are delivered or caused to be delivered to Lender (including delivery to a
third party on behalf of Lender), or that otherwise come into the possession, custody or control of Lender (including the possession, custody or control of a third party on behalf of Lender) or that are registered by book-entry in the name of Lender
(including registration in the name of a third party on behalf of Lender), in each case for the purpose of pledge, or in respect of which a Warehousing Advance has been made by Lender under this Agreement (collectively, “Pledged
Securities”). 

  

	4.1 (d)	 	All real property, fixtures and personal property described in any REO Mortgage, including all rents, leases and profits now due or which may hereafter become due under or by virtue
of any lease, license, sublease, or agreement, whether written or verbal, for the use or occupancy of the property or any part thereof, and all proceeds of any fire loss or other insurable casualty and all awards or compensation made by any
governmental or other lawful authorities for the taking or damaging by eminent domain of the whole or any part of the property, including any awards for a temporary taking, change of grade of streets or taking of access. 

  

	4.1 (e)	 	All private mortgage insurance and all commitments issued by the VA or FHA to insure or guarantee any Mortgage Loans included in the Pledged Loans or the foreclosure of which
relates to any REO Property; all Purchase Commitments held by Borrower covering Pledged Loans or Pledged Securities, and all proceeds from the sale of Pledged Loans or Pledged Securities to Investors pursuant to those Purchase Commitments; and all
personal property, contract rights, servicing rights or contracts and servicing fees and income or other proceeds, amounts and payments payable to Borrower as compensation or reimbursement, accounts, payments, intangibles and general intangibles of
every kind relating to Pledged Loans, Pledged Securities, Purchase Commitments, VA commitments or guaranties, FHA commitments, private mortgage insurance and commitments, and all other documents or instruments relating to Pledged Loans and Pledged
Securities, including any interest of Borrower in any fire, casualty or hazard insurance policies and any awards made by any public body or decreed by any court of competent jurisdiction for a taking or for degradation of value in any eminent domain
proceeding as the same relate to Pledged Loans. 

  

 Page 4-1 

	4.1 (f)	 	All accounts or general intangibles owned by Borrower (“Receivables”) for the payment of money against (1) VA under a VA guaranty of, FHA or a private mortgage
insurer under an FHA or private insurer’s mortgage insurance policy insuring payment of, or any other Person under any other agreement (including a Servicing Contract) relating to, all or part of a defaulted Mortgage Loan or a Mortgage Loan
formerly secured by an REO Property repurchased by Borrower from an investor or out of a pool of Mortgage Loans or Mortgage Loans formerly secured by REO Properties serviced by Borrower, (2) obligors and their accounts, Fannie Mae, Freddie Mac,
Ginnie Mae or any other investor under a Servicing Contract covering, or out of the proceeds of any sale of or foreclosure sale in respect of, any Mortgage Loan (A) repurchased by Borrower out of a pool of Mortgage Loans or Mortgage Loans formerly
secured by REO Properties serviced by Borrower, or (B) being serviced by Borrower, in either case, for the reimbursement of real estate taxes or assessments, or casualty or liability insurance premiums, paid by Borrower in connection with Mortgage
Loans or Mortgage Loans formerly secured by REO Properties and (3) obligors and their accounts, or Fannie Mae, Freddie Mac, Ginnie Mae or any other investor under or in respect of, or out of the proceeds of any sale or foreclosure sale in respect
of, any Mortgage Loans or Mortgage Loans formerly secured by REO Properties serviced by Borrower for repayment of advances made by Borrower to cover shortages in principal and interest payments. 

  

	4.1 (g)	 	All escrow accounts, documents, instruments, files, surveys, certificates, correspondence, appraisals, computer programs, tapes, discs, cards, accounting records (including all
information, records, tapes, data, programs, discs and cards necessary or helpful in the administration or servicing of the Collateral) and other information and data of Borrower relating to the Collateral. 

  

	4.1 (h)	 	All cash, whether now existing or acquired after the date of this Agreement, delivered to or otherwise in the possession of Lender, the Funding Bank or Lender’s agent, bailee
or custodian or designated on the books and records of Borrower as assigned and pledged to Lender, including all cash deposited in the Cash Collateral Account, the Check Disbursement Account and the Wire Disbursement Account.

  

	4.1 (i)	 	All Hedging Arrangements related to the Collateral (“Pledged Hedging Arrangements”) and Borrower’s accounts in which those Hedging Arrangements are held
(“Pledged Hedging Accounts”), including all rights to payment arising under the Pledged Hedging Arrangements and the Pledged Hedging Accounts, except that Lender’s security interest in the Pledged Hedging Arrangements and
Pledged Hedging Accounts applies only to benefits, including rights to payment, related to the Collateral. 

  

	4.1 (j)	 	All cash and non-cash proceeds of the Collateral, including all dividends, distributions and other rights in connection with, and all additions to, modifications of and replacements
for, the Collateral, and all products and proceeds of the Collateral, together with whatever is receivable or received when the Collateral or proceeds of Collateral are sold, collected, exchanged or otherwise disposed of, whether such disposition is
voluntary or involuntary, including all rights to payment with respect to any cause of action affecting or relating to the Collateral or proceeds of Collateral. 

  
 Notwithstanding the foregoing or any other provisions of the Loan Documents, the Collateral shall not include any portion of Borrower’s
web site (currently located at the URL http://www.wmcdirect.com), Borrower’s non-prime automated underwriting system, or any of the computer programs, software or documentation related to the foregoing, whether now existing or hereafter
created, and Lender acknowledges and agrees that it shall have no security interest therein. 
  

 Page 4-2 

	4.2.	 	Maintenance of Collateral Records 

  
 As long as the Warehousing Commitment is outstanding or there remain any Obligations to be paid or performed under this Agreement or under any other Loan Document,
Borrower must preserve and maintain, at its chief executive office and principal place of business or in a regional office approved by Lender, or in the office of a computer service bureau engaged by Borrower and approved by Lender and, upon
request, make available to Lender the originals, or copies in any case where the originals have been delivered to Lender or to an Investor, of the Mortgage Notes, Mortgages and Security Agreements included in Pledged Loans, Mortgage-backed
Securities delivered to Lender as Pledged Securities, Purchase Commitments, and all related Mortgage Loan documents and instruments, and all files, surveys, certificates, correspondence, appraisals, computer programs, tapes, discs, cards, accounting
records and other information and data relating to the Collateral. 
  

	4.3.	 	Release of Security Interest in Pledged Assets 

  

	4.3 (a)	 	Except as provided in Section 4.3(b), Lender will release its security interest in the Pledged Assets only against payment to Lender of the Release Amount in connection with those
Pledged Assets. If Pledged Loans are transferred to a pool custodian or an Investor for inclusion in a Mortgage Pool and Lender’s security interest in the Pledged Loans included in the Mortgage Pool is not released before the issuance of the
related Mortgage-backed Security, then that Mortgage-backed Security, when issued, is a Pledged Security, Lender’s security interest continues in the Pledged Loans backing that Pledged Security and Lender is entitled to possession of the
Pledged Security in the manner provided in this Agreement. 

  

	4.3 (b)	 	If Pledged Loans are transferred to an Approved Custodian and included in an Eligible Mortgage Pool, Lender’s security interest in the Pledged Loans included in the Eligible
Mortgage Pool will be released upon the delivery of the Agency Security to Lender (including delivery to or registration in the name of a third party on behalf of Lender) and that Agency Security is a Pledged Security. Lender’s security
interest in that Pledged Security will be released only against payment to Lender of the Release Amount in connection with the Mortgage Loans backing that Pledged Security. 

  

	4.3 (c)	 	Lender has the exclusive right to possession of all Pledged Securities or, if Pledged Securities are issued in book-entry form or issued in certificated form and delivered to a
clearing corporation (as that term is defined in the Uniform Commercial Code of Minnesota) or its nominee, Lender has the right to have the Pledged Securities registered in the name of a securities intermediary (as that term is defined in the
Uniform Commercial Code of Minnesota) in an account containing only customer securities and credited to an account of Lender. Lender has no duty or obligation to deliver Pledged Securities to an Investor or to credit Pledged Securities to the
account of an Investor or an Investor’s designee except against payment for those Pledged Securities. Borrower acknowledges that Lender may enter into one or more standing arrangements with securities intermediaries with respect to Pledged
Securities issued in book entry form or issued in certificated form and delivered to a clearing corporation or its designee, under which the Pledged Securities are registered in the name of the securities intermediary, and Borrower agrees, upon
request of Lender, to execute and deliver to those securities intermediaries Borrower’s written concurrence in any such standing arrangements. 

  

	4.3 (d)	 	 If no Default or Event of Default occurs, Borrower may redeem a Pledged Asset from Lender’s security interest by notifying Lender of its intention to redeem
the Pledged Asset from pledge and either (1) paying, or causing an Investor to pay, to Lender, for application as a prepayment on the principal balance of the Notes, the Release Amount in connection with the Pledged Asset (including, in the case of
Pledged Security, the 

  

 Page 4-3 

	 	 
Pledged Loans backing that Pledged Security), or (2) delivering substitute Collateral that, in addition to being acceptable to Lender in its sole discretion,
will, when included with the remaining Collateral, result in a Warehousing Collateral Value of all Collateral held by Lender that is at least equal to the aggregate outstanding Warehousing Advances. 

  

	4.3 (e)	 	After a Default or Event of Default occurs, Lender may, with no liability to Borrower or any Person, continue to release its security interest in any Pledged Asset against payment
of the Release Amount for that Pledged Asset (including, in the case of a Pledged Security for the Pledged Loans backing that Pledged Security). 

  

	4.3 (f)	 	The amount to be paid by Borrower to obtain the release of Lender’s security interest in a Pledged Asset (“Release Amount”) will be (1) in connection with the
sale of a Pledged Loan by Borrower, the payment required in any bailee letter pursuant to which Lender ships that Pledged Loan to an Investor, Approved Custodian, pool custodian or other party, (2) in connection with the sale of a Pledged Loan or
REO Property by Lender while an Event of Default exists, the amount paid to Lender in a commercially reasonable disposition of that Pledged Loan or REO Property and (3) otherwise, until an Event of Default occurs, the principal amount of the
Warehousing Advance outstanding against the Pledged Asset. 

  

	4.3 (g)	 	Upon receipt by Lender of the Release Amount with respect to an REO Property, Lender agrees to provide a satisfaction of the related REO Mortgage. 

  

	4.4.	 	Collection and Servicing Rights 

  

	4.4 (a)	 	If no Event of Default exists, Borrower may service and receive and collect directly all sums payable to Borrower in respect of the Collateral other than proceeds of any Purchase
Commitment or proceeds of the sale of any Collateral. All proceeds of any Purchase Commitment or any other sale of Collateral must be paid directly to the Cash Collateral Account for application as provided in this Agreement.

  

	4.4 (b)	 	After an Event of Default, Lender or its designee is entitled to service and receive and collect all sums payable to Borrower in respect of the Collateral, and in such case (1)
Lender or its designee in its discretion may, in its own name, in the name of Borrower or otherwise, demand, sue for, collect or receive any money or property at any time payable or receivable on account of or in exchange for any of the Collateral,
but Lender has no obligation to do so, (2) Borrower must, if Lender requests it to do so, hold in trust for the benefit of Lender and immediately pay to Lender at its office designated by Notice, all amounts received by Borrower upon or in respect
of any of the Collateral, advising Lender as to the source of those funds and (3) all amounts so received and collected by Lender will be held by it as part of the Collateral. 

  

	4.5.	 	Return of Collateral at End of Warehousing Commitment 

  
 If (a) the Warehousing Commitment has expired or been terminated, and (b) no Warehousing Advances, interest or other Obligations are outstanding and unpaid, Lender will
release its security interest and will deliver all Collateral in its possession to Borrower at Borrower’s expense. Borrower’s acknowledgement or receipt for any Collateral released or delivered to Borrower under any provision of this
Agreement is a complete and full acquittance for the Collateral so returned, and Lender is discharged from any liability or responsibility for that Collateral. 
  

 Page 4-4 

	4.6.	 	Delivery of Collateral Documents 

  

	4.6 (a)	 	Lender may deliver documents relating to the Collateral to Borrower for correction or completion under a Trust Receipt. 

  

	4.6 (b)	 	If no Default or Event of Default exists, upon delivery by Borrower to Lender of shipping instructions pursuant to the applicable Exhibit B, Lender will deliver the Mortgage
Notes evidencing Pledged Loans or Pledged Securities, together with all related loan documents and pool documents previously received by Lender under the requirements of the applicable Exhibit B, to the designated Investor or Approved
Custodian or to another party designated by Borrower and acceptable to Lender in its sole discretion. 

  

	4.6 (c)	 	If a Default or Event of Default exists, Lender may, without liability to Borrower or any other Person, continue to deliver Pledged Loans or Pledged Securities, together with all
related loan documents and pool documents in Lender’s possession, to the applicable Investor, or Approved Custodian or to another party acceptable to Lender in its sole discretion. 

  
 End of Article 4 
  

 Page 4-5 

	5.	 	CONDITIONS PRECEDENT 

  

	5.1.	 	Initial Advance 

  
 Lender’s obligation to make the initial Warehousing Advance, is subject to the satisfaction, in the sole discretion of Lender, of the following conditions precedent: 
  

	5.1 (a)	 	Lender must receive the following, all of which must be satisfactory in form and content to Lender, in its sole discretion: 

  

	 	(1)	The Notes and this Agreement duly executed by Borrower. 

  

	 	(2)	Borrower’s articles or certificate of incorporation, together with all amendments, as certified by the Secretary of State of California, Borrower’s bylaws, together with
all amendments, certified by the corporate secretary or assistant secretary of Borrower, or a certificate of Borrower stating that there has been no change in either Borrower’s articles or certificate of incorporation or bylaws since those
delivered in connection with the Existing Agreement, and certificates of good standing dated within 60 days of the date of this Agreement, together with a certification from the Franchise Tax Board or other state tax authority stating that Borrower
is in good standing with the Franchise Tax Board or such state tax authority, if applicable. 

  

	 	(3)	A resolution of the board of directors of Borrower authorizing the execution, delivery and performance of this Agreement and the other Loan Documents, each Warehousing Advance
Request and all other agreements, instruments or documents to be delivered by Borrower under this Agreement. 

  

	 	(4)	A certificate as to the incumbency and authenticity of the signatures of the officers of Borrower executing this Agreement and the other Loan Documents. 

  

	 	(5)	Assumed Name Certificates dated within 30 days of the date of this Agreement for any assumed name used by Borrower in the conduct of its business.  

 

	 	(6)	Uniform Commercial Code, tax lien and judgment searches of the appropriate public records for Borrower that do not disclose the existence of any prior Lien on the Collateral other
than in favor of Lender or as permitted under this Agreement. 

  

	 	(7)	Copies of Borrower’s errors and omissions insurance policy or mortgage impairment insurance policy, and blanket bond coverage policy, or certificates in lieu of policies,
showing compliance by Borrower as of the date of this Agreement with the provisions of Section 7.9. 

  

	 	(8)	One or more agreements among Borrower, Lender and Fannie Mae in which Fannie Mae agrees to send all cash proceeds of Mortgage Loans sold by Borrower to Fannie Mae to the Cash
Collateral Account, each in form and substance satisfactory to Lender. 

  

	 	(9)	Receipt by Lender of any fees due on the date of this Agreement. 

  

	5.1 (b)	 	Borrower must not have incurred any material liabilities, direct or contingent, other than in the ordinary course of its business, since the Audited Statement Date.

  

 Page 5-1 

	5.2.	 	Each Advance 

  
 Lender’s obligation to make the initial and each subsequent Warehousing Advance is subject to the satisfaction, in the sole discretion of Lender, as of the date of each Warehousing Advance, of the following
additional conditions precedent: 
  

	5.2 (a)	 	Borrower must have delivered to Lender the Warehousing Advance Request and Collateral Documents required by, and must have satisfied the procedures set forth in, Article 2 and the
Exhibits described in that Article. All items delivered to Lender must be satisfactory to Lender in form and content, and Lender may reject any item that does not satisfy the requirements of this Agreement or of the related Purchase Commitment.

  

	5.2 (b)	 	Lender must have received evidence satisfactory to it as to the making or continuation of any book entry or the due filing and recording in all appropriate offices of all financing
statements and other instruments necessary to perfect the security interest of Lender in the Collateral under the Uniform Commercial Code or other applicable law. 

  

	5.2 (c)	 	The representations and warranties of Borrower contained in Article 6 and Article 9 must be accurate and complete in all material respects as if made on and as of the date of each
Warehousing Advance. 

  

	5.2 (d)	 	Borrower must have performed all agreements to be performed by it under this Agreement, and after giving effect to the requested Warehousing Advance, no Default or Event of Default
will exist under this Agreement. 

  

	5.2 (e)	 	Borrower must be committed to make forward sales of Mortgage Loans to Lender under an agreement in form and substance satisfactory to Lender. This condition will be deemed to be
satisfied if Borrower indicates its agreement to extend the existing forward commitment through the term of this Agreement. 

  
 Delivery of a Warehousing Advance Request by Borrower will be deemed a representation by Borrower that all conditions set forth in this Section have been satisfied as of
the date of the Warehousing Advance. 
  

	5.3.	 	Force Majeure 

  
 Notwithstanding Borrower’s satisfaction of the conditions set forth in this Agreement, Lender has no obligation to make a Warehousing Advance if Lender is prevented from obtaining the funds necessary to make a
Warehousing Advance, or is otherwise prevented from making a Warehousing Advance as a result of any fire or other casualty, failure of power, strike, lockout or other labor trouble, banking moratorium, embargo, sabotage, confiscation, condemnation,
riot, civil disturbance, insurrection, act of terrorism, war or other activity of armed forces, act of God or other similar reason beyond the control of Lender. Lender will make the requested Warehousing Advance as soon as reasonably possible
following the occurrence of such an event. 
  
 End of Article 5

  

 Page 5-2 

	6.	 	GENERAL REPRESENTATIONS AND WARRANTIES 

  
 Borrower represents and warrants to Lender, as of the date of this Agreement and as of the date of each Warehousing Advance Request and the making of each Warehousing
Advance, that: 
  

	6.1.	 	Place of Business 

  
 Borrower’s chief executive office and principal place of business is 6320 Canoga Avenue, Woodland Hills, CA, 91367. 
  

	6.2.	 	Organization; Good Standing; Subsidiaries 

  
 Borrower is a corporation duly organized, validly existing and in good standing under the laws of the State of California, and has the full legal power and authority to
own its property and to carry on its business as currently conducted. Borrower is duly qualified as a foreign corporation to do business and is in good standing in each jurisdiction in which the transaction of its business makes qualification
necessary, except in jurisdictions, if any, where a failure to be in good standing has no material adverse effect on Borrower’s business, operations, assets or financial condition as a whole. For the purposes of this Agreement, good standing
includes qualification for all licenses and payment of all taxes required in the jurisdiction of its incorporation and in each jurisdiction in which Borrower transacts business. Borrower has no Subsidiaries except as set forth on Exhibit D,
which sets forth with respect to each Subsidiary, its name, address, jurisdiction of organization, each state in which it is qualified to do business, and the percentage ownership of its capital stock by Borrower. Each of Borrower’s
Subsidiaries is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, and has the full legal power and authority to own its property and to carry on its business as currently conducted.

  

	6.3.	 	Authorization and Enforceability 

  
 Borrower has the power and authority to execute, deliver and perform this Agreement, the Notes and other Loan Documents to which Borrower is party and to make the
borrowings under this Agreement. The execution, delivery and performance by Borrower of this Agreement, the Notes and the other Loan Documents to which Borrower is party and the making of the borrowings under this Agreement, and the Notes, have been
duly and validly authorized by all necessary corporate action on the part of Borrower (none of which actions has been modified or rescinded, and all of which actions are in full force and effect) and do not and will not (a) conflict with or violate
any provision of law, of any judgments binding upon Borrower, or of the articles of incorporation or by-laws of Borrower, or (b) conflict with or result in a breach of, constitute a default or require any consent under, or result in or require the
acceleration of any indebtedness of Borrower under any agreement, instrument or indenture to which Borrower is a party or by which Borrower or its property may be bound or affected, or result in the creation of any Lien upon any property or assets
of Borrower (other than the Lien on the Collateral granted under this Agreement). This Agreement, the Notes and the other Loan Documents constitute the legal, valid and binding obligations of Borrower, enforceable in accordance with their respective
terms, except as limited by bankruptcy, insolvency or other such laws affecting the enforcement of creditors’ rights. 
  

	6.4.	 	Approvals 

  
 The execution and delivery of this Agreement, the Notes and the other Loan Documents and the performance of Borrower’s obligations under this Agreement, the Notes and the other Loan Documents and the validity and
enforceability of this Agreement, the Notes and the other Loan Documents do not require any license, consent, approval or other action of any state or federal 

  

 Page 6-1 

 
agency or governmental or regulatory authority other than those that have been obtained and remain in full force and effect. 
  

	6.5.	 	Financial Condition 

  
 The balance sheet of Borrower (and, if applicable, Borrower’s Subsidiaries, on a consolidated basis) as of each Statement Date, and the related statements of income, cash flows and changes in stockholders’
equity for the fiscal period ended on each Statement Date, furnished to Lender, fairly present the financial condition of Borrower (and, if applicable, Borrower’s Subsidiaries) as at that Statement Date and the results of its operations for the
fiscal period ended on that Statement Date. Borrower had, on each Statement Date, no known material liabilities, direct or indirect, fixed or contingent, matured or unmatured, or liabilities for taxes, long-term leases or unusual forward or
long-term commitments not disclosed by, or reserved against in, those financial statements, and at the present time there are no material unrealized or anticipated losses from any loans, advances or other commitments of Borrower except as previously
disclosed to Lender in writing. Those financial statements were prepared in accordance with GAAP applied on a consistent basis throughout the periods involved. Since the Audited Statement Date, there has been no material adverse change in the
business, operations, assets or financial condition of Borrower (and, if applicable, Borrower’s Subsidiaries), nor is Borrower aware of any state of facts that (with or without notice or lapse of time or both) would or could result in any such
material adverse change. 
  

	6.6.	 	Litigation 

  
 There are no actions, claims, suits or proceedings pending or, to Borrower’s knowledge, threatened or reasonably anticipated against or affecting Borrower or any Subsidiary of Borrower in any court or before any
arbitrator or before any government commission, board, bureau or other administrative agency that, if adversely determined, may reasonably be expected to result in a material adverse change in Borrower’s business, operations, assets or
financial condition as a whole, or that would affect the validity or enforceability of this Agreement, the Notes or any other Loan Document. 
  

	6.7.	 	Compliance with Laws 

  
 Neither Borrower nor any Subsidiary of Borrower is in violation of any provision of any law, or of any judgment, award, rule, regulation, order, decree, writ or injunction of any court or public regulatory body or
authority that could result in a material adverse change in Borrower’s business, operations, assets or financial condition as a whole or that would affect the validity or enforceability of this Agreement, the Notes or any other Loan Document.

  

	6.8.	 	Regulation U 

  
 Borrower is not engaged principally, or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying Margin Stock, and no part of the proceeds of any Warehousing
Advance made under this Agreement will be used to purchase or carry any Margin Stock or to extend credit to others for the purpose of purchasing or carrying any Margin Stock. 
  

	6.9.	 	Investment Company Act 

  
 Borrower is not an “investment company” or controlled by an “investment company” within the meaning of the Investment Company Act. 
  

 Page 6-2 

	6.10.	 	Payment of Taxes 

  
 Borrower and each of its Subsidiaries has filed or caused to be filed all federal, state and local income, excise, property and other tax returns that are required to be filed with respect to the operations of
Borrower and its Subsidiaries, all such returns are true and correct and Borrower and each of its Subsidiaries has paid or caused to be paid all taxes shown on those returns or on any assessment, to the extent that those taxes have become due,
including all FICA payments and withholding taxes, if appropriate. The amounts reserved as a liability for income and other taxes payable in the financial statements described in Section 6.6 are sufficient for payment of all unpaid federal, state
and local income, excise, property and other taxes, whether or not disputed, of Borrower and its Subsidiaries accrued for or applicable to the period and on the dates of those financial statements and all years and periods prior to those financial
statements and for which Borrower and its Subsidiaries may be liable in their own right or as transferee of the assets of, or as successor to, any other Person. No tax Liens have been filed and no material claims are being asserted against Borrower,
any Subsidiary of Borrower or any property of Borrower or any Subsidiary of Borrower with respect to any taxes, fees or charges. 
  

	6.11.	 	Agreements 

  
 Neither Borrower nor any Subsidiary of Borrower is a party to any agreement, instrument or indenture or subject to any restriction materially and adversely affecting its business, operations, assets or financial
condition, except as disclosed in the financial statements described in Section 6.6. Neither Borrower nor any Subsidiary of Borrower is in default in the performance, observance or fulfillment of any of the obligations, covenants or conditions
contained in any agreement, instrument, or indenture which default could result in a material adverse change in Borrower’s business, operations, properties or financial condition as a whole. No holder of any indebtedness of Borrower or of any
of its Subsidiaries has given notice of any asserted default under that indebtedness, and no liquidation or dissolution of Borrower or of any of its Subsidiaries and no receivership, insolvency, bankruptcy, reorganization or other similar
proceedings relative to Borrower or of any of its Subsidiaries or any of its or their properties is pending, or to the knowledge of Borrower, threatened. 
  

	6.12.	 	Title to Properties 

  
 Borrower and each Subsidiary of Borrower has good, valid, insurable and (in the case of real property) marketable title to all of its properties and assets (whether real or personal, tangible or intangible) reflected
on the financial statements described in Section 6.6, except for those properties and assets that Borrower has disposed of since the date of those financial statements either in the ordinary course of business or because they were no longer used or
useful in the conduct of Borrower’s or the Subsidiary’s business. All of Borrower’s properties and assets are free and clear of all Liens except as disclosed in Borrower’s financial statements. 
  

	6.13.	 	ERISA 

  
 Each Plan is in compliance with all applicable requirements of ERISA and the Internal Revenue Code and with all material applicable rulings and regulations issued under the provisions of ERISA and the Internal Revenue
Code setting forth those requirements, except where any failure to comply would not result in a material loss to Borrower or any ERISA Affiliate. All of the minimum funding standards or other contribution obligations applicable to each Plan have
been satisfied. No Plan is a defined-benefit pension plan subject to Title IV of ERISA, and there is no Multiemployer Plan. 
  

 Page 6-3 

	6.14.	 	No Retiree Benefits 

  
 Except as required under Section 4980B of the Internal Revenue Code, Section 601 of ERISA or applicable state law, neither Borrower nor, if applicable, any Subsidiary is obligated to provide post-retirement medical or
insurance benefits with respect to employees or former employees. 
  

	6.15.	 	Assumed Names 

  
 Borrower does not originate Mortgage Loans or otherwise conduct business under any names other than its legal name and the assumed names set forth on Exhibit G. Borrower has made all filings and taken all other
action as may be required under the laws of any jurisdiction in which it originates Mortgage Loans or otherwise conducts business under any assumed name. Borrower’s use of the assumed names set forth on Exhibit G does not conflict with
any other Person’s legal rights to any such name, nor otherwise give rise to any liability by Borrower to any other Person. Borrower may amend Exhibit G to add or delete any assumed names used by Borrower to conduct business. An
amendment to Exhibit G to add an assumed name is not effective until Borrower has delivered to Lender an assumed name certificate in the jurisdictions in which the assumed name is to be used, which must be satisfactory in form and content to
Lender, in its sole discretion. In connection with any amendment to delete a name from Exhibit G, Borrower represents and warrants that it has ceased using that assumed name in all jurisdictions. 
  

	6.16.	 	Servicing 

  
 Exhibit C is a true and complete list of Borrower’s Servicing Portfolio. All of Borrower’s Servicing Contracts are in full force and effect, and are unencumbered by Liens other than Liens disclosed in
Exhibit C. No default or event that, with notice or lapse of time or both, would become a default, exists under any of Borrower’s Servicing Contracts. For purposes of this Section 6.16, the certain Collection Services Agreement, dated as
of March 17, 2000 (the “Collection Services Agreement”), between Borrower and Fairbanks Capital Corp., and that certain Interim Servicing Agreement, dated as of September      2003, between Borrower and Option
Mortgage Corp. shall not be deemed to be a Servicing Contract. 
  
 End of Article 6 
  

 Page 6-4 

	7.	 	AFFIRMATIVE COVENANTS 

  
 As long as the Warehousing Commitment is outstanding or there remain any Obligations to be paid or performed under this Agreement or under any other Loan Document,
Borrower must: 
  

	7.1.	 	Payment of Obligations 

  
 Punctually pay or cause to be paid all Obligations, including the Obligations payable under this Agreement and under the Notes, in accordance with their terms.

  

	7.2.	 	Financial Statements 

  
 Deliver to Lender: 
  

	7.2 (a)	 	As soon as available and in any event within 30 days after the end of each month, including the last month of Borrower’s fiscal year, an interim statement of income of Borrower
(and, if applicable, Borrower’s Subsidiaries, on a consolidated basis) for the immediately preceding month and for the period from the beginning of the fiscal year to the end of that month, and the related balance sheet as at the end of the
immediately preceding month, all in reasonable detail, subject, however, to year-end audit adjustments. 

  

	7.2 (b)	 	As soon as available and in any event within 90 days after the end of each fiscal year of Borrower, fiscal year-end statements of income, changes in stockholders’ equity and
cash flow of Borrower (and, if applicable, Borrower’s Subsidiaries, on a consolidated basis) for that year, and the related balance sheet as of the end of that year (setting forth in comparative form the corresponding figures for the preceding
fiscal year), all in reasonable detail and accompanied by (1) an opinion as to those financial statements in form and substance satisfactory to Lender and prepared by independent certified public accountants of recognized standing acceptable to
Lender and (2) any management letters, management reports or other supplementary comments or reports delivered by those accountants to Borrower or its board of directors. 

  

	7.2 (c)	 	Together with each delivery of financial statements required by this Section, a Compliance Certificate substantially in the form of Exhibit E. 

  

	7.2 (d)	 	As soon as available and in any event within 90 days after the end of each fiscal year of the Parent, fiscal year-end statements of income, changes in stockholders’ equity and
cash flows of the Parent (and, if applicable, the Parent’s Subsidiaries, on a consolidated basis) for the most recent fiscal year, the related balance sheet as at the end of that year (setting forth in comparative form the corresponding figures
for the preceding fiscal year), all in reasonable detail and accompanied by (1) an opinion as to those financial statements in form and substance satisfactory to Lender and prepared by independent certified public accountants of recognized standing
acceptable to Lender and (2) any management letters, management reports or other supplementary comments or reports delivered by those accountants to the Parent. 

  

	7.2 (e)	 	Copies of all regular or periodic financial and other reports that Borrower files with the Securities and Exchange Commission or any successor governmental agency or other entity.

  

 Page 7-1 

	7.3.	 	Other Borrower Reports 

  
 Deliver to Lender: 
  

	7.3 (a)	 	As soon as available and in any event within 30 days after the end of each fiscal quarter in a fiscal year of Borrower, a consolidated loan production report as of the end of the
fiscal quarter, presenting the total dollar volume and the number of Mortgage Loans originated and closed or purchased during that fiscal quarter and for the fiscal year-to-date, specified by property type and loan type. 

  

	7.3 (b)	 	As soon as available and in any event within 30 days after the end of each month, a commitment summary and pipeline report, substantially in the form of Exhibit J, as of the
end of that month. 

  

	7.3 (c)	 	Unless the Funding Bank has previously provided Lender with a copy of the Funding Bank’s monthly statement for the Check Disbursement Account, as soon as available and in any
event within 30 days after the end of each month, a copy of that monthly statement. 

  

	7.3 (d)	 	As soon as available and in any event within 30 days after the end of each month, a report as of the end of that month detailing all requests that Borrower repurchase Mortgage Loans
from an Investor or out of an Eligible Mortgage Pool, the status of each such request and any indemnification or similar agreement to which Borrower is a party in connection with any such request. 

  

	7.3 (e)	 	As soon as available and in any event within 15 days after the Investor distribution date of each security, reports detailing the performance as well as the actual cash flows of
each outstanding residential mortgage securitization transaction for Borrower and its Affiliates, partnerships and Subsidiaries. Such reports must be sent directly to Lender by the applicable servicer and/or applicable trustee.

  

	7.3 (f)	 	As soon as available and in any event within 10 Business Days after a request by Lender, a report concerning each Nonperforming Mortgage Loan and each REO Property in form and
substance satisfactory to Lender. 

  

	7.3 (g)	 	Other reports in respect of Pledged Assets, including copies of purchase confirmations issued by Investors purchasing Pledged Loans from Borrower, in such detail and at such times
as Lender in its discretion may reasonably request. 

  

	7.3 (h)	 	With reasonable promptness, all further information regarding the business, operations, properties or financial condition of Borrower as Lender may reasonably request, including
copies of any audits completed by HUD, Ginnie Mae, Fannie Mae or Freddie Mac. 

  

	7.4.	 	Maintenance of Existence; Conduct of Business 

  
 Preserve and maintain its corporate existence in good standing and all of its rights, privileges, licenses and franchises necessary or desirable in the normal conduct of
its business, including its eligibility as lender, seller/servicer and issuer described under Section 9.1; conduct its business in an orderly and efficient manner; maintain a net worth of acceptable assets as required for maintaining Borrower’s
eligibility as lender, seller/servicer and issuer described under Section 9.1; and make no material change in the nature or character of its business or engage in any business in which it was not engaged on the date of this Agreement. 
  

 Page 7-2 

	7.5.	 	Compliance with Applicable Laws 

  
 Comply with the requirements of all applicable laws, rules, regulations and orders of any governmental authority, a breach of which could result in a material adverse
change in Borrower’s business, operations, assets, or financial condition as a whole or on the enforceability of this Agreement, the Notes, any other Loan Document or any Collateral, except where contested in good faith and by appropriate
proceedings. 
  

	7.6.	 	Inspection of Properties and Books; Operational Reviews 

  
 Permit Lender or any Participant (and their authorized representatives) to discuss the business, operations, assets and financial condition of Borrower and its
Subsidiaries with Borrower’s officers, agents and employees, and to examine and make copies or extracts of Borrower’s and its Subsidiaries’ books of account, all at such reasonable times as Lender or any Participant may request.
Provide its accountants with a copy of this Agreement promptly after its execution and authorize and instruct them to answer candidly all questions that the officers of Lender or any Participant or any authorized representatives of Lender or any
Participant may address to them in reference to the financial condition or affairs of Borrower and its Subsidiaries. Borrower may have its representatives in attendance at any meetings held between the officers or other representatives of Lender or
any Participant and Borrower’s accountants under this authorization. Permit Lender or any Participant (and their authorized representatives) access to Borrower’s premises and records for the purpose of conducting a review of
Borrower’s general mortgage business methods, policies and procedures, auditing its loan files and reviewing the financial and operational aspects of Borrower’s business. 
  

	7.7.	 	Notice 

  
 Give prompt Notice to Lender of (a) any action, suit or proceeding instituted by or against Borrower or any of its Subsidiaries in any federal or state court or before any commission or other regulatory body (federal,
state or local, domestic or foreign), which action, suit or proceeding has at issue in excess of $1,000,000, or any such proceedings threatened against Borrower or any of its Subsidiaries in writing containing the details of that action, suit or
proceeding; (b) the filing, recording or assessment of any federal, state or local tax Lien against Borrower, or any of its assets or any of its Subsidiaries; (c) an Event of Default; (d) a Default that continues for more than 4 days; (e) the
suspension, revocation or termination of Borrower’s eligibility, in any respect, as lender, seller/servicer or issuer as described under Section 9.1; (f) the transfer, loss, nonrenewal or termination of any Servicing Contracts to which Borrower
is a party, or which is held for the benefit of Borrower, and the reason for that transfer, loss, nonrenewal or termination; (g) any Prohibited Transaction with respect to any Plan, specifying the nature of the Prohibited Transaction and what action
Borrower proposes to take with respect to it; (h) any other action, event or condition of any nature that could lead to or result in a material adverse change in the business, operations, assets or financial condition of Borrower or any of its
Subsidiaries, the commitment of foreclosure proceedings with respect to any Pledged Loan; and (i) the conversion of any Pledged Loan to an REO Property. 
  

	7.8.	 	Payment of Debt, Taxes and Other Obligations 

  
 Pay, perform and discharge, or cause to be paid, performed and discharged, all of the obligations and indebtedness of Borrower and its Subsidiaries, all taxes,
assessments and governmental charges or levies imposed upon Borrower or its Subsidiaries or upon their respective income, receipts or properties before those taxes, assessments and governmental charges or levies become past due, and all lawful
claims for labor, materials and supplies or otherwise that, if unpaid, could become a Lien or charge upon any of their respective properties or assets. Borrower and its Subsidiaries are not required to pay, however, any taxes, assessments and
governmental charges or levies or claims for labor, materials or supplies for which Borrower or its 

  

 Page 7-3 

 
Subsidiaries have obtained an adequate bond or insurance or that are being contested in good faith and by proper proceedings that are being reasonably and
diligently pursued and for which proper reserves have been created. 
  

	7.9.	 	Insurance 

  
 Maintain blanket bond coverage and errors and omissions insurance or mortgage impairment insurance, with such companies and in such amounts as satisfy prevailing requirements applicable to a lender, seller/servicer
and issuer described under Section 9.1, and liability insurance and fire and other hazard insurance on its properties, in each case with responsible insurance companies acceptable to Lender, in such amounts and against such risks as is customarily
carried by similar businesses operating in the same location. Within 30 days after Notice from Lender, obtain such additional insurance as Lender may reasonably require, all at the sole expense of Borrower. Copies of such policies must be furnished
to Lender without charge upon request of Lender. 
  

	7.10.	 	Closing Instructions 

  
 Indemnify and hold Lender harmless from and against any loss, including reasonable attorneys’ fees and costs, attributable to the failure of any title insurance company, agent or attorney to comply with
Borrower’s disbursement or instruction letter relating to any Mortgage Loan. Lender has the right to pre-approve Borrower’s choice of title insurance company, agent or attorney and Borrower’s disbursement or instruction letter to them
in any case in which Borrower intends to obtain a Warehousing Advance against the Mortgage Loan to be created at settlement or to pledge that Mortgage Loan as Collateral under this Agreement. In any event, Borrower’s disbursement or instruction
letter must include the following language: 
  
 The undersigned
has granted a security interest in any amounts advanced by it to fund this mortgage loan and in the mortgage loan funded with those amounts to the lender who provides you with those funds (the “Lender”). You must promptly return any
amounts advanced by the Lender and not used to fund this mortgage loan. You also must immediately return all amounts advanced by the Lender if this mortgage loan does not close and fund within 1 Business Day of your receipt of those funds.

  

	7.11.	 	Other Loan Obligations 

  
 Perform all material obligations under the terms of each loan agreement, note, mortgage, security agreement or debt instrument by which Borrower is bound or to which any
of its property is subject, and promptly notify Lender in writing of a declared default under or the termination, cancellation, reduction or nonrenewal of any of its other lines of credit or agreements with any other lender. Exhibit F is a
true and complete list of all such lines of credit or agreements as of the date of this Agreement. Borrower must give Lender at least 30 days Notice before entering into any additional lines of credit or agreements. 
  

	7.12.	 	ERISA 

  
 Maintain (and, if applicable, cause each ERISA Affiliate to maintain) each Plan in compliance with all material applicable requirements of ERISA and of the Internal Revenue Code and with all applicable rulings and
regulations issued under the provisions of ERISA and of the Internal Revenue Code, and not (and, if applicable, not permit any ERISA Affiliate to), (a) engage in any transaction in connection with which Borrower or any ERISA Affiliate would be
subject to either a civil penalty assessed pursuant to Section 502(i) of ERISA or a tax imposed by Section 4975 of the Internal Revenue Code, in either case in an amount exceeding $25,000 or (b) fail to make full payment when due of all amounts
that, under the provisions of any Plan, Borrower or any ERISA Affiliate is required to pay as contributions to that Plan, or permit to exist any accumulated funding 

  

 Page 7-4 

 
deficiency (as such term is defined in Section 302 of ERISA and Section 412 of the Internal Revenue Code), whether or not waived, with respect to any Plan in
an aggregate amount exceeding $25,000. 
  

	7.13.	 	Use of Proceeds of Warehousing Advances 

  
 Use the proceeds of each Warehousing Advance solely for the purpose of funding Eligible Loans or REO Properties and against the pledge of those Eligible Loans and REO
Properties as Collateral. 
  
 End of Article 7 

 

 Page 7-5 

	8.	 	NEGATIVE COVENANTS 

  
 As long as the Warehousing Commitment is outstanding or there remain any Obligations to be paid or performed, Borrower must not, either directly or indirectly, without the prior written consent of Lender: 

 

	8.1.	 	Contingent Liabilities 

  
 Assume, guarantee, endorse or otherwise become contingently liable for the obligation of any Person except by endorsement of negotiable instruments for deposit or
collection in the ordinary course of business, and except for obligations arising in connection with the sale of Mortgage Loans with recourse in the ordinary course of Borrower’s business and others in an aggregate amount at any time
outstanding not to exceed $1,000,000. 
  

	8.2.	 	Pledge of Servicing Contracts 

  
 Except for the Collection Services Agreement, pledge or grant a security interest in any existing or future Servicing Contracts of Borrower other than to Lender, or omit
to take any action required to keep all of Borrower’s Servicing Contracts in full force and effect. 
  

	8.3.	 	Restrictions on Fundamental Changes 

  

	8.3 (a)	 	Consolidate, merge or enter into any analogous reorganization or transaction with any Person. 

  

	8.3 (b)	 	Amend or otherwise modify Borrower’s articles of incorporation or by-laws. 

  

	8.3 (d)	 	Liquidate, wind up or dissolve (or suffer any liquidation or dissolution). 

  

	8.3 (e)	 	Cease actively to engage in the business of originating or acquiring Mortgage Loans or make any other material change in the nature or scope of the business in which Borrower
engages as of the date of this Agreement. 

  

	8.3 (f)	 	Sell, assign, lease, convey, transfer or otherwise dispose of (whether in one transaction or a series of transactions) all or any substantial part of Borrower’s business or
assets, whether now owned or acquired after the Closing Date, other than, in the ordinary course of business and to the extent not otherwise prohibited by this Agreement, sales of (1) Mortgage Loans, (2) Mortgage-backed Securities and (3) Servicing
Contracts. 

  

	8.3 (g)	 	Acquire by purchase or in any other transaction all or substantially all of the business or property of, or stock or other ownership interests of, any Person, other than the
purchase of Mortgage Loans, servicing rights or all of the assets of or equity ownership interests in a Person engaged in the mortgage banking business, in each case in the ordinary course of its business. 

  

	8.3 (h)	 	Permit any Subsidiary of Borrower to do or take any of the foregoing actions, other than merge, consolidated or enter into an analogous transaction with, or liquidate or dissolve
into, or sell, assign, convey or transfer all of its assets to, Borrower (provided Borrower is the surviving corporation) or a wholly-owned Subsidiary of Borrower (provided the surviving entity is a wholly-owned Subsidiary of Borrower).

  

 Page 8-1 

	8.4.	 	Loss of Eligibility 

  
 Take any action that would cause Borrower to lose all or any part of its status as an eligible lender, seller/servicer or issuer as described under Section 9.1. 
  

	8.5.	 	Accounting Changes 

  
 Make, or permit any Subsidiary of Borrower to make, any significant change in accounting treatment or reporting practices, except as required by GAAP, or change its fiscal year or the fiscal year of any Subsidiary of
Borrower. 
  

	8.6.	 	Leverage Ratio 

  
 Permit Borrower’s Leverage Ratio at any time to exceed 15 to 1. 
  

	8.7.	 	Minimum Tangible Net Worth 

  
 Permit Borrower’s Tangible Net Worth at any time to be less than $75,000,000, plus 25% of Borrower’s (and its Subsidiaries, on a consolidated basis) net
income, if positive, for each fiscal quarter after October 1, 2003. 
  

	8.8.	 	Net Operating Losses 

  
 Permit Borrower (and its Subsidiaries, on a consolidated basis) to have more than 2 consecutive fiscal quarters of net operating losses. 
  

	8.9.	 	Minimum Liquid Assets 

  
 Permit Borrower’s Liquid Assets at any time to be less than $10,000,000. 
  

	8.10.	 	Distributions to Shareholders 

  
 Declare or pay any dividends or otherwise declare or make any distribution to Borrower’s shareholders (including any purchase or redemption of stock) if a Default or
Event of Default exists or would occur as a result of the dividend or distribution. 
  

	8.11.	 	Transactions with Affiliates 

  
 Directly or indirectly (a) make any loan, advance, extension of credit or capital contribution to any of Borrower’s Affiliates, except for loans to Lending
Concourse, LLC in an aggregate amount at any time outstanding not to exceed $1,000,000, loans to officers and directors of Borrower made in accordance with Borrower’s practices as of the Closing Date, and loans, advances, extensions of credit
or capital contributions to other wholly-owned Subsidiaries, and other loans, advances, extensions of credit or capital contributions in an aggregate amount not to exceed $5,000,000, (b) sell, transfer, pledge or assign any of its assets to or on
behalf of those Affiliates, other than sales, transfers and assignments of Mortgage Loans or residual Mortgage-backed Securities to wholly-owned, special purpose Subsidiaries in connection with the issuance of Mortgage-backed Securities; or (c)
merge or consolidate with or purchase or acquire assets from those Affiliates, except as permitted pursuant to Section 8.3, or (d) pay management fees in excess of $1,000,000 per annum to or on behalf of those Affiliates Nothing contained in this
Section 8.12 shall be deemed to restrict payment of dividends or distributions to or by Borrower or WMC Finance Co., so long as all of the other covenants of this Article 8 are complied with by Borrower. 
  

 Page 8-2 

	8.12.	 	Recourse Servicing Contracts 

  
 Acquire or enter into Servicing Contracts under which Borrower must repurchase or indemnify the holder of the Mortgage Loans as a result of defaults on the Mortgage Loans
at any time during the term of those Mortgage Loans. 
  
 End of
Article 8 
  

 Page 8-3 

	9.	 	SPECIAL REPRESENTATIONS, WARRANTIES AND COVENANTS CONCERNING COLLATERAL 

  

	9.1.	 	Special Representations and Warranties Concerning Eligibility as Seller/Servicer of Mortgage Loans 

  
 Borrower represents and warrants to Lender, as of the date of this Agreement and as of the
date of each Warehousing Advance Request and the making of each Warehousing Advance, that Borrower is approved and qualified and in good standing as a lender, seller/servicer or issuer, as set forth below, and meets all requirements applicable to
its status as: 
  

	9.1 (a)	 	A HUD-approved mortgagee, eligible to originate, purchase, hold, sell and service FHA fully insured Mortgage Loans. 

  

	9.1 (b)	 	A Ginnie Mae-approved seller/servicer of Mortgage Loans and issuer of Mortgage-backed Securities guaranteed by Ginnie Mae. 

  

	9.1 (c)	 	A Fannie Mae-approved seller/servicer of Mortgage Loans, eligible to originate, purchase, hold, sell and service Mortgage Loans to be sold to Fannie Mae. 

 

	9.1 (d)	 	A Freddie Mac-approved seller/servicer of Mortgage Loans, eligible to originate, purchase, hold, sell and service Mortgage Loans to be sold to Freddie Mac. 

 

	9.1 (e)	 	A VA-approved mortgagee and a lender in good-standing under the VA loan guarantee program, eligible to originate, purchase, hold, sell and service VA-guaranteed Mortgage Loans.

  

	9.1 (f)	 	A Lender-approved seller/servicer of Mortgage Loans, eligible to originate, purchase, hold, sell and service Mortgage Loans to be sold to Lender. 

  

	9.2.	 	Special Representations and Warranties Concerning Warehousing Collateral 

  
 Borrower represents and warrants to Lender, as of the date of this Agreement and as of the date of each Warehousing Advance Request and the
making of each Warehousing Advance, that: 
  

	9.2 (a)	 	Borrower has not selected the Collateral in a manner so as to affect adversely Lender’s interests. 

  

	9.2 (b)	 	Borrower is the legal and equitable owner and holder, free and clear of all Liens (other than Liens granted under this Agreement), of the Pledged Loans and the Pledged Securities.
All Pledged Loans, Pledged Securities and related Purchase Commitments have been duly authorized and validly issued to Borrower, and all of the foregoing items of Collateral comply with all of the requirements of this Agreement, and have been and
will continue to be validly pledged or assigned to Lender, subject to no other Liens. 

  

	9.2 (c)	 	Borrower has, and will continue to have, the full right, power and authority to pledge the Collateral pledged and to be pledged by it under this Agreement. 

 

	9.2 (d)	 	 Each Mortgage Loan and each related document included in the Pledged Loans (1) has been duly executed and delivered by the parties to that Mortgage Loan and that
related document, (2) has been made in compliance with all applicable laws, rules and regulations (including all laws, rules and regulations relating to usury), (3) is and will 

  

 Page 9-1 

	 	 
continue to be a legal, valid and binding obligation, enforceable in accordance with its terms, without setoff, counterclaim or defense in favor of the
mortgagor under the Mortgage Loan or any other obligor on the Mortgage Note and (4) has not been modified, amended or any requirements of which waived, except in writing that is part of the Collateral Documents. 

  

	9.2 (e)	 	Each Pledged Loan is denominated in dollars and secured by a Mortgage on real property and improvements located in one of the states of the United States or the District of
Columbia. 

  

	9.2 (f)	 	Unless Third Party Originated Loans are permitted, each Pledged Loan has been closed or will be closed and funded with the Warehousing Advance made against it.

  

	9.2 (g)	 	Except for open-ended Second Mortgage Loans, each Mortgage Loan has been fully advanced in the face amount of its Mortgage Note. 

  

	9.2 (h)	 	Each First Mortgage Loan is secured by a First Mortgage on the real property and improvements described in or covered by that Mortgage. 

  

	9.2 (i)	 	Each First Mortgage Loan has or will have a title insurance policy, in ALTA form or equivalent, from a recognized title insurance company, insuring the priority of the Lien of the
Mortgage and meeting the usual requirements of Investors purchasing those Mortgage Loans. 

  

	9.2 (j)	 	Each Second Mortgage Loan is secured by a Second Mortgage on the real property and improvements described in or covered by that Mortgage. 

  

	9.2 (k)	 	To the extent required by the related Purchase Commitment or by Investors generally for similar Mortgage Loans, each Second Mortgage Loan has or will have a title insurance policy,
in ALTA form or equivalent, from a recognized title insurance company, insuring the priority of the Lien of the Mortgage and meeting the usual requirements of Investors purchasing those Mortgage Loans. 

  

	9.2 (l)	 	Each Mortgage Loan has been evaluated or appraised in accordance with Title XI of FIRREA. 

  

	9.2 (m)	 	The Mortgage Note for each Pledged Loan is (1) payable or endorsed to the order of Borrower, (2) an “instrument” within the meaning of Article 9 of the Uniform Commercial
Code of all applicable jurisdictions and (3) is denominated and payable in United States dollars. 

  

	9.2 (n)	 	No default has existed for 60 days or more under any Mortgage Loan, or other than a Nonperforming Loan, included in the Pledged Loans. 

  

	9.2 (o)	 	No party to a Mortgage Loan or any related document is in violation of any applicable law, rule or regulation that would impair the collectibility of the Mortgage Loan or the
performance by the mortgagor or any other obligor of its obligations under the Mortgage Note or any related document. 

  

	9.2 (p)	 	All fire and casualty policies covering the real property and improvements encumbered by each Mortgage included in the Pledged Loans (1) name and will continue to name Borrower and
its successors and assigns as the insured under a standard mortgagee clause, (2) are and will continue to be in full force and effect and (3) afford and will continue to afford insurance against fire and such other risks as are usually insured
against in the broad form of extended coverage insurance generally available. 

  

 Page 9-2 

	9.2 (q)	 	Pledged Loans secured by real property and improvements located in a special flood hazard area designated as such by the Director of the Federal Emergency Management Agency are and
will continue to be covered by special flood insurance under the National Flood Insurance Program. 

  

	9.2 (r)	 	Each Pledged Loan against which a Warehousing Advance is made on the basis of a Purchase Commitment meets all of the requirements of that Purchase Commitment, and each Pledged
Security against which a Warehousing Advance is outstanding meets all of the requirements of the related Purchase Commitment. 

  

	9.2 (s)	 	Pledged Loans that are intended to be exchanged for Agency Securities comply or, prior to the issuance of the Agency Securities will comply, with the requirements of any
governmental instrumentality, department or agency issuing or guaranteeing the Agency Securities. 

  

	9.2 (t)	 	Pledged Loans that are intended to be used in the formation of Mortgage-backed Securities (other than Agency Securities) comply with the requirements of the issuer of the
Mortgage-backed Securities (or its sponsor) and of the Rating Agencies. 

  

	9.2 (u)	 	The original assignments of Mortgage delivered to Lender for each Pledged Loan are in recordable form and comply with all applicable laws and regulations governing the filing and
recording of such documents. 

  

	9.2 (w)	 	No Pledged Loan delivered to Lender is a Discontinued Loan. 

  

	9.2 (x)	 	Each Pledged Loan secured by real property to which a Manufactured Home is affixed will create a valid Lien on that Manufactured Home that will have priority over any other Lien on
the Manufactured Home, whether or not arising under applicable real property law. 

  

	9.3.	 	Special Representations Concerning REO Properties 

  
 Borrower represents and warrants to Lender, as of the date of this Agreement and as of the date of each Warehousing Advance Request for a Warehousing Advance made against
an REO Property and the making of each Warehousing Advance, that: 
  

	9.3 (a)	 	Borrower is the legal and equitable owner and holder, free and clear of all Liens (other than Liens granted hereunder and under the REO Mortgages, Liens for taxes, fees, assessments
and governmental charges not delinquent or which are being contested in good faith by appropriate proceedings and for which appropriate reserves have been established in accordance with GAAP; and encumbrances consisting of zoning regulations,
easements, rights of way, survey exceptions and other similar restrictions on the use of each property and minor irregularities in title thereto which do no materially impair their use in operation of its business) of the REO Property against which
a Warehousing Advance is being or has been requested. All REO Mortgages have been duly authorized and validly executed and delivered by Borrower, and the REO Property against which a Warehousing Advance has been made has been and will continue to be
subject to a Lien in favor of Lender, subject to no other Liens. 

  

 Page 9-3 

	9.3 (b)	 	Each REO Mortgage is in full force and effect, is legal, valid and enforceable in accordance with its terms, and no default or event which, with notice or lapse of time or both,
would become a default, exists under any such REO Mortgage. 

  

	9.4.	 	Special Affirmative Covenants Concerning Warehousing Collateral 

  
 As long as the Warehousing Commitment is outstanding or there remain any Obligations to be paid or performed under this Agreement or under any other Loan Document,
Borrower must: 
  

	9.4 (a)	 	Warrant and defend the right, title and interest of Lender in and to the Collateral against the claims and demands of all Persons. 

  

	9.4 (b)	 	Service or cause to be serviced all Pledged Loans in accordance with the standard requirements of the issuers of Purchase Commitments covering them and all applicable HUD, Fannie
Mae and Freddie Mac requirements, including taking all actions necessary to enforce the obligations of the obligors under such Mortgage Loans. Service or cause to be serviced all Mortgage Loans backing Pledged Securities in accordance with
applicable governmental requirements and requirements of issuers of Purchase Commitments covering them. Hold all escrow funds collected in respect of Pledged Loans and Mortgage Loans backing Pledged Securities in trust, without commingling the same
with non-custodial funds, and apply them for the purposes for which those funds were collected. 

  

	9.4 (c)	 	Execute and deliver to Lender with respect to the Collateral those further instruments of sale, pledge, assignment or transfer, and those powers of attorney, as required by Lender,
and do and perform all matters and things necessary or desirable to be done or observed, for the purpose of effectively creating, maintaining and preserving the security and benefits intended to be afforded Lender under this Agreement.

  

	9.4 (d)	 	Notify Lender within 2 Business Days of any default under, or of the termination of, any Purchase Commitment relating to any Pledged Loan, Eligible Mortgage Pool, or Pledged
Security. 

  

	9.4 (e)	 	Promptly comply in all respects with the terms and conditions of all Purchase Commitments, and all extensions, renewals and modifications or substitutions of or to all Purchase
Commitments. Deliver or cause to be delivered to the Investor the Pledged Loans and Pledged Securities to be sold under each Purchase Commitment not later than the mandatory delivery date of the Pledged Loans or Pledged Securities under the Purchase
Commitment. 

  

	9.4 (f)	 	Compare the names of every mortgagor, guarantor and other obligor of every Mortgage Loan, together with appropriate identifying information concerning those Persons obtained by
Borrower, against every Restriction List, and make certain that none of the mortgagors, guarantors or other obligors of any Mortgage Loan is a Person named in any Restriction List and to whom the provision of financial services is prohibited or
otherwise restricted by applicable law. 

  

	9.4 (g)	 	Prior to the origination by Borrower of any Mortgage Loans for sale to Fannie Mae, enter into an agreement among Borrower, Lender and Fannie Mae, pursuant to which Fannie Mae agrees
to send all cash proceeds of Mortgage Loans sold by Borrower to Fannie Mae to the Cash Collateral Account. 

  

	9.4 (h)	 	Prior to the origination by Borrower of any Mortgage Loan to be registered on the MERS system, obtain the approval of Lender and enter into an Electronic Tracking Agreement.

  

 Page 9-4 

	9.5.	 	Special Affirmative Covenants Concerning REO Properties 

  
 As long as the Warehousing Commitment is outstanding or there remain any Obligations to be paid or performed under this Agreement or under any other Loan Document,
Borrower must: 
  

	9.5 (a)	 	Record an REO Mortgage in the appropriate recording office to perfect a Lien on each REO Property against which a Warehousing Advance is outstanding with respect to such REO
Property, including the payment of all recording fees or taxes. 

  

	9.5 (b)	 	Immediately upon execution thereof, deliver to Lender a copy of any contract entered into by Borrower for the sale, transfer or other disposition of an REO Property against which a
Warehousing Advance has been made. 

  

	9.5 (c)	 	Instruct the purchaser of any REO Property and the closing agent for any REO Property sale against which a Warehousing Advance has been made to wire transfer the purchase proceeds
for the REO Property to the Cash Collateral Account. 

  

	9.6.	 	Special Negative Covenants Concerning Warehousing Collateral 

  
 As long as the Warehousing Commitment is outstanding or there remain any Obligations to be paid or performed, Borrower must not, either directly or indirectly, without
the prior written consent of Lender: 
  

	9.6 (a)	 	Amend or modify, or waive any of the terms and conditions of, or settle or compromise any claim in respect of, any Pledged Loans or Pledged Securities. 

  

	9.6 (b)	 	Sell, transfer or assign, or grant any option with respect to, or pledge (except under this Agreement and, with respect to each Pledged Loan or Pledged Security, the related
Purchase Commitment) any of the Collateral or any interest in any of the Collateral. 

  

	9.6 (c)	 	Make any compromise, adjustment or settlement in respect of any of the Collateral or accept other than cash in payment or liquidation of the Collateral. 

  
 End of Article 9 
  

 Page 9-5 

	10.	 	DEFAULTS; REMEDIES 

  

	10.1.	 	Events of Default 

  
 The occurrence of any of the following is an event of default (“Event of Default”): 
  

	10.1 (a)	 	Borrower fails to pay the principal of any Warehousing Advance when due, whether at stated maturity, by acceleration, or otherwise; or fails to pay any installment of interest on
any Warehousing Advance within 9 days after the date of Lender’s invoice or, if applicable, within 2 days after the date of Lender’s account analysis statement; or fails to pay, within any applicable grace period, any other amount due
under this Agreement or any other Obligation of Borrower to Lender. 

  

	10.1 (b)	 	Borrower or any of its Subsidiaries fails to pay, or defaults in the payment of any principal or interest on, any other indebtedness or any contingent obligation within any
applicable grace period; breaches or defaults with respect to any other material term of any other indebtedness or of any loan agreement, mortgage, indenture or other agreement relating to that indebtedness, if the effect of that breach or default
is to cause, or to permit the holder or holders of that indebtedness (or a trustee on behalf of such holder or holders) to cause, indebtedness of Borrower or its Subsidiaries in the aggregate amount of $5,000,000 or more to become or be declared due
before its stated maturity (upon the giving or receiving of notice, lapse of time, both, or otherwise). 

  

	10.1 (c)	 	Borrower fails to perform or comply with any term or condition applicable to it contained in Sections 7.4 or 7.14 or in any Section of Article 8. 

  

	10.1 (d)	 	Any representation or warranty made or deemed made by Borrower under this Agreement, in any other Loan Document or in any written statement or certificate at any time given by
Borrower, other than the representations and warranties set forth in Article 9 with respect to specific Pledged Loans, is inaccurate or incomplete in any material respect on the date as of which it is made or deemed made. 

 

	10.1 (e)	 	Borrower defaults in the performance of or compliance with any term contained in this Agreement or any other Loan Document other than those referred to in Sections 10.1(a), 10.1(c)
or 10.1(d) and such default has not been remedied or waived within 30 days after the earliest of (1) receipt by Borrower of Notice from Lender of that default, (2) receipt by Lender of Notice from Borrower of that default or (3) the date Borrower
should have notified Lender of that default under Section 7.7(c) or 7.7(d). 

  

	10.1 (f)	 	An “event of default” (however defined) occurs under any agreement between Borrower and Lender other than this Agreement and the other Loan Documents.

  

	10.1 (g)	 	A case (whether voluntary or involuntary) is filed by or against Borrower or any Subsidiary of Borrower or Parent under any applicable bankruptcy, insolvency or other similar
federal or state law; or a court of competent jurisdiction appoints a receiver (interim or permanent), liquidator, sequestrator, trustee, custodian or other officer having similar powers over Borrower or any Subsidiary of Borrower or Parent, or over
all or a substantial part of their respective properties or assets; or Borrower or any Subsidiary of Borrower or Parent (1) consents to the appointment of or possession by a receiver (interim or permanent), liquidator, sequestrator, trustee,
custodian or other officer having similar powers over Borrower or any Subsidiary of Borrower or Parent, or over all or a substantial part of their respective properties or assets, (2) makes an assignment for the benefit of creditors, or (3) fails,
or admits in writing its inability, to pay its debts as those debts become due. 

  

 Page 10-1 

	10.1 (h)	 	Borrower fails to perform any contractual obligation to repurchase Mortgage Loans, if such obligations in the aggregate exceed $750,000. 

  

	10.1 (i)	 	Any money judgment, writ or warrant of attachment or similar process involving an amount in excess of $3,000,000 is entered or filed against Borrower or any of its Subsidiaries or
any of their respective assets and remains undischarged, unvacated, unbonded or unstayed for a period of 30 days or 5 days before the date of any proposed sale under that money judgment, writ or warrant of attachment or similar process.

  

	10.1 (j)	 	Any order, judgment or decree decreeing the dissolution of Borrower or Parent is entered and remains undischarged or unstayed for a period of 20 days. 

  

	10.1 (k)	 	Borrower purports to disavow the Obligations or contests the validity or enforceability of any Loan Document. 

  

	10.1 (l)	 	Lender’s security interest on any portion of the Collateral becomes unenforceable or otherwise impaired, unless the Warehousing Advances against such Collateral are repaid
within 2 Business Days after the earliest of (1) receipt by Borrower of Notice from Lender of that default, (2) receipt by Lender of Notice from Borrower of that default or (3) the date Borrower should have notified Lender of that default under
Section 7.7(c) or 7.7(d). 

  

	10.1 (m)	 	A material adverse change occurs in Borrower’s financial condition, business, properties, operations or prospects, or in Borrower’s ability to repay the Obligations.

  

	10.1 (n)	 	Any Lien for any taxes, assessments or other governmental charges (1) is filed against Borrower or any of its property, or is otherwise enforced against Borrower or any of its
property, or (2) obtains priority that is equal to or greater than the priority of Lender’s security interest in any of the Collateral. 

  

	10.1 (o)	 	Apollo Management, L.P. ceases to own, directly or indirectly, a controlling interest of Borrower. 

  

	10.1 (p)	 	Parent at any time has a Tangible Net Worth of less than $1.00. 

  

	10.2.	 	Remedies 

  

	10.2 (a)	 	If an Event of Default described in Section 10.1(g) occurs with respect to Borrower, the Warehousing Commitment will automatically terminate and the unpaid principal amount of and
accrued interest on the Notes and all other Obligations will automatically become due and payable, without presentment, demand or other Notice or requirements of any kind, all of which Borrower expressly waives. 

  

	10.2 (b)	 	If any other Event of Default occurs, Lender may, by Notice to Borrower, terminate the Warehousing Commitment and declare the Obligations to be immediately due and payable.

  

	10.2 (c)	 	If any Event of Default occurs, Lender may also take any of the following actions: 

  

	 	(1)	Foreclose upon or otherwise enforce its security interest in any Lien on the Collateral to secure all payments and performance of the Obligations in any manner permitted by law or
provided for in the Loan Documents. 

  

	 	(2)	 Notify all obligors under any of the Collateral that the Collateral has been assigned to Lender (or to another Person designated by Lender) and that all 

  

 Page 10-2 

	 	 
payments on that Collateral are to be made directly to Lender (or such other Person); settle, compromise or release, in whole or in part, any amounts any
obligor or Investor owes on any of the Collateral on terms acceptable to Lender; enforce payment and prosecute any action or proceeding involving any of the Collateral; and where any Collateral is in default, foreclose on and enforce any Liens
securing that Collateral in any manner permitted by law and sell any property acquired as a result of those enforcement actions. 

  

	 	(3)	Prepare and submit for filing Uniform Commercial Code amendment statements evidencing the assignment to Lender or its designee of any Uniform Commercial Code financing statement
filed in connection with any item of Collateral. 

  

	 	(4)	Act, or contract with a third party to act, at Borrower’s expense, as servicer or subservicer of Collateral requiring servicing, and perform all obligations required under any
Collateral, including Servicing Contracts and Purchase Commitments. 

  

	 	(5)	Require Borrower to assemble and make available to Lender the Collateral and all related books and records at a place designated by Lender. 

  

	 	(6)	Enter onto property where any Collateral or related books and records are located and take possession of those items with or without judicial process; and obtain access to
Borrower’s data processing equipment, computer hardware and software relating to the Collateral and use all of the foregoing and the information contained in the foregoing in any manner Lender deems necessary for the purpose of effectuating its
rights under this Agreement and any other Loan Document. 

  

	 	(7)	Before the disposition of the Collateral, prepare it for disposition in any manner and to the extent Lender deems appropriate. 

  

	 	(8)	Exercise all rights and remedies of a secured creditor under the Uniform Commercial Code of Minnesota or other applicable law, including selling or otherwise disposing of all or any
portion of the Collateral at one or more public or private sales, whether or not the Collateral is present at the place of sale, for cash or credit or future delivery, on terms and conditions and in the manner as Lender may determine, including sale
under any applicable Purchase Commitment. Borrower waives any right it may have to prior notice of the sale of all or any portion of the Collateral to the extent allowed by applicable law. If notice is required under applicable law, Lender will give
Borrower not less than 10 days’ notice of any public sale or of the date after which any private sale may be held. Borrower agrees that 10 days’ notice is reasonable notice. Lender may, without notice or publication, adjourn any public or
private sale one or more times by announcement at the time and place fixed for the sale, and the sale may be held at any time or place announced at the adjournment. In the case of a sale of all or any portion of the Collateral on credit or for
future delivery, the Collateral sold on those terms may be retained by Lender until the purchaser pays the selling price or takes possession of the Collateral. Lender has no liability to Borrower if a purchaser fails to pay for or take possession of
Collateral sold on those terms, and in the case of any such failure, Lender may sell the Collateral again upon notice complying with this Section. 

  

	 	(9)	Instead of or in conjunction with exercising the power of sale authorized by Section 10.2(c)(8), Lender may proceed by suit at law or in equity to collect all amounts due on the
Collateral, or to foreclose Lender’s Lien on and sell all or any portion of the Collateral pursuant to a judgment or decree of a court of competent jurisdiction. 

  

 Page 10-3 

	 	(10)	Proceed against Borrower on the Notes. 

  

	 	(11)	Retain all excess proceeds from the sale or other disposition of the Collateral, and apply them to the payment of the Obligations under Section 10.3. 

  

	 	(12)	Exercise any or all of the rights and remedies available to Lender under the REO Mortgages or otherwise under applicable law. 

  

	10.2 (d)	 	Lender will incur no liability as a result of the commercially reasonable sale or other disposition of all or any portion of the Collateral at any public or private sale or other
disposition. Borrower waives (to the extent permitted by law) any claims it may have against Lender arising by reason of the fact that the price at which the Collateral may have been sold at a private sale was less than the price that Lender might
have obtained at a public sale, or was less than the aggregate amount of the outstanding Warehousing Advances, accrued and unpaid interest on those Warehousing Advances, and unpaid fees, even if Lender accepts the first offer received and does not
offer the Collateral to more than one offeree. Borrower agrees that any sale of Collateral under the terms of a Purchase Commitment, or any other disposition of Collateral arranged by Borrower, whether before or after the occurrence of an Event of
Default, will be deemed to have been made in a commercially reasonable manner. 

  

	10.2 (e)	 	Borrower acknowledges that Mortgage Loans are collateral of a type that is the subject of widely distributed standard price quotations and that Mortgage-backed Securities are
collateral of a type that is customarily sold on a recognized market. Borrower waives any right it may have to prior notice of the sale of Pledged Securities, and agrees that Lender may purchase Pledged Loans and Pledged Securities at a private sale
of such Collateral. 

  

	10.2 (f)	 	Borrower specifically waives and releases (to the extent permitted by law) any equity or right of redemption, stay or appraisal that Borrower has or may have under any rule of law
or statute now existing or adopted after the date of this Agreement, and any right to require Lender to (1) proceed against any Person, (2) proceed against or exhaust any of the Collateral or pursue its rights and remedies against the Collateral in
any particular order, or (3) pursue any other remedy within its power. Lender is not required to take any action to preserve any rights of Borrower against holders of mortgages having priority to the Lien of any Mortgage or Security Agreement
included in the Collateral or to preserve Borrower’s rights against other prior parties. 

  

	10.2 (g)	 	Lender may, but is not obligated to, advance any sums or do any act or thing necessary to uphold or enforce the Lien and priority of, or the security intended to be afforded by, any
Mortgage or Security Agreement included in the Collateral, including payment of delinquent taxes or assessments and insurance premiums. All advances, charges, costs and expenses, including reasonable attorneys’ fees and disbursements, incurred
or paid by Lender in exercising any right, power or remedy conferred by this Agreement, or in the enforcement of this Agreement, together with interest on those amounts at the Default Rate, from the time paid by Lender until repaid by Borrower, are
deemed to be principal outstanding under this Agreement and the Notes. 

  

	10.2 (h)	 	 No failure or delay on the part of Lender to exercise any right, power or remedy provided in this Agreement or under any other Loan Document, at law or in equity,
will operate as a waiver of that right, power or remedy. No single or partial exercise by Lender of any right, power or remedy provided under this Agreement or any other Loan Document, at law or in equity, precludes any other or further exercise of
that right, power, or remedy by Lender, or Lender’s exercise of any other right, power or remedy. Without limiting the foregoing, Borrower waives all defenses based on the statute of limitations to the extent permitted by law. The remedies
provided in this Agreement and the other Loan 

  

 Page 10-4 

	 	 
Documents are cumulative and are not exclusive of any remedies provided at law or in equity. 

  

	10.2 (i)	 	Borrower grants Lender a license or other right to use, without charge, Borrower’s computer programs, other programs, labels, patents, copyrights, rights of use of any name,
trade secrets, trade names, trademarks, service marks and advertising matter, or any property of a similar nature, as it pertains to the Collateral, in advertising for sale and selling any of the Collateral and Borrower’s rights under all
licenses and all other agreements related to the foregoing inure to Lender’s benefit until the Obligations are paid in full. 

  

	10.3.	 	Application of Proceeds 

  
 Lender may apply the proceeds of any sale, disposition or other enforcement of Lender’s Lien on all or any portion of the Collateral to the payment of the
Obligations in the order Lender determines in its sole discretion. From and after the indefeasible payment to Lender of all of the Obligations, any remaining proceeds of the Collateral will be paid to Borrower, or to its successors or assigns, or as
a court of competent jurisdiction may direct. If the proceeds of any sale, disposition or other enforcement of the Collateral are insufficient to cover the costs and expenses of that sale, disposition or other enforcement and payment in full of all
Obligations, Borrower is liable for the deficiency. 
  

	10.4.	 	Lender Appointed Attorney-in-Fact 

  
 Borrower appoints Lender its attorney-in-fact, with full power of substitution, for the purpose of carrying out the provisions of this Agreement, the Notes and the other
Loan Documents and taking any action and executing any instruments that Lender deems necessary or advisable to accomplish that purpose. Borrower’s appointment of Lender as attorney-in-fact is irrevocable and coupled with an interest. Without
limiting the generality of the foregoing, Lender may give notice of its Lien on the Collateral to any Person, either in Borrower’s name or in its own name, endorse all Pledged Loans or Pledged Securities payable to the order of Borrower, change
or cause to be changed the book-entry registration or name of subscriber or Investor on any Pledged Security, prepare and submit for filing Uniform Commercial Code amendment statements with respect to any Uniform Commercial Code financing statements
filed in connection with any item of Collateral or receive, endorse and collect all checks made payable to the order of Borrower representing payment on account of the principal of or interest on, or the proceeds of sale of, any of the Pledged Loans
or Pledged Securities and give full discharge for those transactions. 
  

	10.5.	 	Right of Set-Off 

  
 If Borrower defaults in the payment of any Obligation or in the performance of any of its duties under the Loan Documents, Lender may, without Notice to or demand on Borrower (which Notice or demand Borrower expressly
waives), set-off, appropriate or apply any property of Borrower held at any time by Lender, or any indebtedness at any time owed by Lender to or for the account of Borrower, against the Obligations, whether or not those Obligations have matured.

  
 End of Article 10 
  

 Page 10-5 

	11.	 	MISCELLANEOUS 

  

	11.1.	 	Notices 

  
 Except where telephonic or facsimile notice is expressly authorized by this Agreement, all communications required or permitted to be given or made under this Agreement (“Notices”) must be in writing
and must be sent by manual delivery, overnight courier or United States mail (postage prepaid), addressed as follows (or at such other address as may be designated by it in a Notice to the other): 
  

			
	If to Borrower:	  	 WMC Mortgage Corp.
 6320 Canoga Avenue
 Woodland Hills, CA 91367
 Attention: David Trzcinski, CFO
 Facsimile: (818) 712-2822

		
	If to Lender:	  	 Residential Funding Corporation
 1646 North California
Boulevard, Suite 400
 Walnut Creek, CA 94596
 Attention: Bill
Moffatt, Director
 Facsimile: (925) 935-6424

  
 All periods of Notice will be measured
from the date of delivery if delivered manually or by facsimile, from the first Business Day after the date of sending if sent by overnight courier or from 4 days after the date of mailing if sent by United States mail, except that Notices to Lender
under Article 2 and Section 3.3(f) shall be deemed to have been given only when actually received by Lender. Borrower authorizes Lender to accept Borrower’s bailee pledge agreements, Warehousing Advance Requests, shipping requests, wire
transfer instructions and security delivery instructions transmitted to Lender by facsimile or RFConnects Delivery, and those documents, when transmitted to Lender by facsimile or by RFConnects Delivery, have the same force and effect as the
originals. 
  

	11.2.	 	Reimbursement Of Expenses; Indemnity 

  
 Borrower must: (a) pay Lender a document production fee in connection with the preparation and negotiation of this Agreement; (b) pay such additional documentation
production fees as Lender may require and all out-of-pocket costs and expenses of Lender, including reasonable fees, service charges and disbursements of counsel to Lender (including allocated costs of internal counsel), in connection with the
amendment, enforcement and administration of this Agreement, the Notes, and other Loan Documents, the making, repayment and payment of interest on the Warehousing Advances and the payment of all other Obligations under Loan Documents; (c) indemnify,
pay, and hold harmless Lender and any other holder of the Notes from and against, all present and future stamp, documentary and other similar taxes with respect to the foregoing matters and save Lender and any other holder of the Notes harmless from
and against all liabilities with respect to or resulting from any delay or omission to pay such taxes; and (d) indemnify, pay and hold harmless Lender and all of its Affiliates, officers, directors, employees or agents and any subsequent holder of
the Notes (collectively called the “Indemnitees”) from and against all liabilities, obligations, losses, damages, penalties, judgments, suits, costs, expenses and disbursements of every kind or nature (including the reasonable fees
and disbursements of counsel to the Indemnitees (including allocated costs of internal counsel) in connection with any investigative, administrative or judicial proceeding, whether or not the Indemnitees have been designated as parties to such
proceeding) that may be imposed upon, incurred by or asserted against such Indemnitees in any manner relating to or arising out of this Agreement, the Notes, or any other Loan Document or any of the transactions contemplated by this Agreement, the
Notes 

  

 Page 11-1 

 
and the other Loan Documents, including against all liabilities, obligations, losses, damages, penalties, judgments, suits, costs, expenses and disbursements
of every kind or nature (including the reasonable fees and disbursements of counsel to the Indemnitees (including allocated costs of internal counsel) in connection with any investigative, administrative or judicial proceeding, whether or not the
Indemnitees have been designated as parties to such proceeding) arising from any breach of Sections 9.2(v) or 9.4(f) or the making of any Mortgage Loan in which any mortgagor, guarantor or other obligor is a Person named in any Restriction List and
to whom the provision of financial services is prohibited or otherwise restricted by applicable law (“Indemnified Liabilities”), except that Borrower has no obligation under this Agreement with respect to Indemnified Liabilities
arising from the gross negligence or willful misconduct of any such Indemnitees. To the extent that the undertaking to indemnify, pay and hold harmless as set forth in the preceding sentence may be unenforceable because it is violative of any law or
public policy, Borrower must contribute the maximum portion that it is permitted to pay and satisfy under applicable law to the payment and satisfaction of all Indemnified Liabilities incurred by the Indemnitees or any of them. The agreement of
Borrower contained in this Article survives the expiration or termination of this Agreement and the payment in full of the Notes. Attorneys’ fees and disbursements incurred in enforcing, or on appeal from, a judgment under this Agreement are
recoverable separately from and in addition to any other amount included in such judgment, and this clause is intended to be severable from the other provisions of this Agreement and to survive and not be merged into such judgment. 
  

	11.3.	 	Financial Information 

  
 All financial statements and reports furnished to Lender under this Agreement must be prepared in accordance with GAAP, applied on a basis consistent with that applied in
preparing the financial statements as at the end of and for Borrower’s most recent fiscal year (except to the extent otherwise required to conform to good accounting practice). 
  

	11.4.	 	Terms Binding Upon Successors; Survival of Representations 

  
 The terms and provisions of this Agreement are binding upon and inure to the benefit of Borrower, Lender and their respective successors and assigns. All of
Borrower’s representations, warranties, covenants and agreements survive the making of any Warehousing Advance, and except where a longer period is set forth in this Agreement, remain effective for as long as the Warehousing Commitment is
outstanding or there remain any Obligations to be paid or performed. 
  

	11.5.	 	Assignment 

  
 Borrower cannot assign this Agreement. Lender may at any time, without Notice to or the consent of Borrower, transfer or assign, in whole or in part, its interest in this Agreement and the Notes along with
Lender’s security interest in any of the Collateral, and any assignee of Lender may enforce this Agreement, the Notes and its security interest in the Collateral assigned. 
  

	11.6.	 	Amendments 

  
 Except as otherwise provided in this Agreement, this Agreement may not be amended, modified or supplemented unless the amendment, modification or supplement is set forth in writing signed by both Borrower and Lender.

  

	11.7.	 	Governing Law 

  
 This Agreement and the other Loan Documents are governed by the laws of the State of Minnesota, without reference to its principles of conflicts of laws. 
  

 Page 11-2 

	11.8.	 	Participations 

  
 Lender may at any time sell, assign or grant participations in, or otherwise transfer to any other Person (“Participant”), all or part of the Obligations. Without limiting Lender’s exclusive
right to collect and enforce the Obligations, Borrower agrees that each participation will give rise to a debtor-creditor relationship between Borrower and the Participant, and Borrower authorizes each Participant, upon the occurrence of an Event of
Default, to proceed directly by right of setoff, banker’s lien, or otherwise, against any assets of Borrower that may be held by that Participant. Borrower authorizes Lender to disclose to prospective and actual Participants all information in
Lender’s possession concerning Borrower, this Agreement and the Collateral. 
  

	11.9.	 	Relationship of the Parties 

  
 This Agreement provides for the making and repayment of Warehousing Advances by Lender (in its capacity as a lender) and Borrower (in its capacity as a borrower), for the
payment of interest on those Warehousing Advances and for the payment of certain fees by Borrower to Lender. The relationship between Lender and Borrower is limited to that of creditor and secured party on the part of Lender and of debtor on the
part of Borrower. The provisions of this Agreement and the other Loan Documents for compliance with financial covenants and the delivery of financial statements and other operating reports are intended solely for the benefit of Lender to protect its
interest as a creditor and secured party. Nothing in this Agreement creates or may be construed as permitting or obligating Lender to act as a financial or business advisor or consultant to Borrower, as permitting or obligating Lender to control
Borrower or to conduct Borrower’s operations, as creating any fiduciary obligation on the part of Lender to Borrower, or as creating any joint venture, agency, partnership or other relationship between Lender and Borrower other than as
explicitly and specifically stated in the Loan Documents. Borrower acknowledges that it has had the opportunity to obtain the advice of experienced counsel of its own choice in connection with the negotiation and execution of the Loan Documents and
to obtain the advice of that counsel with respect to all matters contained in the Loan Documents, including the waivers of jury trial and of punitive, consequential, special or indirect damages contained in Sections 11.16 and 11.17, respectively.
Borrower further acknowledges that it is experienced with respect to financial and credit matters and has made its own independent decisions to apply to Lender for credit and to execute and deliver this Agreement. 
  

	11.10.	 	Severability 

  
 If any provision of this Agreement is declared to be illegal or unenforceable in any respect, that provision is null and void and of no force and effect to the extent of the illegality or unenforceability, and does
not affect the validity or enforceability of any other provision of the Agreement. 
  

	11.11.	 	Consent to Credit References 

  
 Borrower consents to the disclosure of information regarding Borrower and its Subsidiaries and their relationships with Lender to Persons making credit inquiries to
Lender. This consent is revocable by Borrower at any time upon Notice to Lender as provided in Section 11.1. 
  

	11.12.	 	Counterparts 

  
 This Agreement may be executed in any number of counterparts, each of which will be deemed an original, but all of which together constitute but one and the same instrument. 
  

 Page 11-3 

	11.13.	 	Headings/Captions 

  
 The captions or headings in this Agreement and the other Loan Documents are for convenience only and in no way define, limit or describe the scope or intent of any provision of this Agreement or any other Loan
Document. 
  

	11.14.	 	Entire Agreement 

  
 This Agreement, the Notes and the other Loan Documents represent the final agreement among the parties with respect to their subject matter, and may not be contradicted by evidence of prior or contemporaneous oral
agreements among the parties. There are no oral agreements among the parties with respect to the subject matter of this Agreement, the Notes and the other Loan Documents. 
  

	11.15.	 	Consent to Jurisdiction 

  
 AT THE OPTION OF LENDER, THIS AGREEMENT, THE NOTES AND THE OTHER LOAN DOCUMENTS MAY BE ENFORCED IN ANY STATE OR FEDERAL COURT WITHIN THE STATE OF MINNESOTA. BORROWER
CONSENTS TO THE JURISDICTION AND VENUE OF THOSE COURTS, AND WAIVES ANY OBJECTION TO THE JURISDICTION OR VENUE OF THOSE COURTS, INCLUDING THE OBJECTION THAT VENUE IN THOSE COURTS IS NOT CONVENIENT. ANY SUCH SUIT, ACTION OR PROCEEDING MAY BE COMMENCED
AND INSTITUTED BY SERVICE OF PROCESS UPON BORROWER BY FIRST CLASS REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, ADDRESSED TO BORROWER AT ITS ADDRESS LAST KNOWN TO LENDER. BORROWER’S CONSENT AND AGREEMENT UNDER THIS SECTION DOES NOT
AFFECT LENDER’S RIGHT TO ACCOMPLISH SERVICE OF PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST BORROWER IN ANY OTHER JURISDICTION OR COURT. IN THE EVENT BORROWER COMMENCES ANY ACTION IN
ANOTHER JURISDICTION OR VENUE UNDER ANY TORT OR CONTRACT THEORY ARISING DIRECTLY OR INDIRECTLY FROM THE RELATIONSHIP CREATED BY THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS, LENDER AT ITS OPTION MAY HAVE THE CASE TRANSFERRED TO A STATE OR FEDERAL
COURT WITHIN THE STATE OF MINNESOTA OR, IF A TRANSFER CANNOT BE ACCOMPLISHED UNDER APPLICABLE LAW, MAY HAVE BORROWER’S ACTION DISMISSED WITHOUT PREJUDICE. 
  

	11.16.	 	Waiver of Jury Trial 

  
 BORROWER AND LENDER EACH PROMISES AND AGREES NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY A JURY, AND FULLY WAIVES ANY RIGHT TO TRIAL BY JURY TO THE EXTENT THAT ANY SUCH RIGHT NOW EXISTS OR ARISES
AFTER THE DATE OF THIS AGREEMENT. THIS WAIVER OF THE RIGHT TO TRIAL BY JURY IS SEPARATELY GIVEN, KNOWINGLY AND VOLUNTARILY, BY BORROWER AND LENDER, AND IS INTENDED TO ENCOMPASS EACH INSTANCE AND EACH ISSUE FOR WHICH THE RIGHT TO TRIAL BY JURY WOULD
OTHERWISE APPLY. LENDER AND BORROWER ARE EACH AUTHORIZED AND DIRECTED TO SUBMIT THIS AGREEMENT TO ANY COURT HAVING JURISDICTION OVER THE SUBJECT MATTER AND THE PARTIES TO THIS AGREEMENT AS CONCLUSIVE EVIDENCE OF THIS WAIVER OF THE RIGHT TO TRIAL BY
JURY. FURTHER, BORROWER AND LENDER EACH CERTIFIES THAT NO REPRESENTATIVE OR AGENT OF THE OTHER PARTY, INCLUDING THE OTHER PARTY’S COUNSEL, HAS REPRESENTED, EXPRESSLY OR OTHERWISE, TO ANY OF ITS REPRESENTATIVES OR AGENTS THAT THE OTHER PARTY
WILL NOT SEEK TO ENFORCE THIS WAIVER OF RIGHT TO TRIAL BY JURY. 
  

 Page 11-4 

	11.17.	 	Waiver of Punitive, Consequential, Special or Indirect Damages 

  
 BORROWER AND LENDER EACH WAIVES ANY RIGHT IT MAY HAVE TO SEEK PUNITIVE, CONSEQUENTIAL, SPECIAL OR INDIRECT DAMAGES FROM THE OTHER PARTY AND ANY OF THE OTHER PARTY’S
AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES OR AGENTS WITH RESPECT TO ANY AND ALL ISSUES PRESENTED IN ANY ACTION, PROCEEDING, CLAIM OR COUNTERCLAIM BROUGHT BY BORROWER AGAINST LENDER OR ANY OF LENDER’S AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES
OR AGENTS OR BY LENDER AGAINST BORROWER OR ANY OF BORROWER’S AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES OR AGENTS WITH RESPECT TO ANY MATTER ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT. THIS WAIVER OF THE
RIGHT TO SEEK PUNITIVE, CONSEQUENTIAL, SPECIAL OR INDIRECT DAMAGES IS KNOWINGLY AND VOLUNTARILY GIVEN BY BORROWER, AND IS INTENDED TO ENCOMPASS EACH INSTANCE AND EACH ISSUE FOR WHICH THE RIGHT TO SEEK PUNITIVE, CONSEQUENTIAL, SPECIAL OR INDIRECT
DAMAGES WOULD OTHERWISE APPLY. LENDER AND BORROWER ARE EACH AUTHORIZED AND DIRECTED TO SUBMIT THIS AGREEMENT TO ANY COURT HAVING JURISDICTION OVER THE SUBJECT MATTER AND THE PARTIES TO THIS AGREEMENT AS CONCLUSIVE EVIDENCE OF THIS WAIVER OF THE
RIGHT TO SEEK PUNITIVE, CONSEQUENTIAL, SPECIAL OR INDIRECT DAMAGES. 
  
 End of Article 11 
  

 Page 11-5 

	12.	 	DEFINITIONS 

  

	12.1.	 	Defined Terms 

  
 Capitalized terms defined below or elsewhere in this Agreement have the following meanings or, as applicable, the meanings given to those terms in Exhibits to this Agreement: 
  
 “Accrual Basis” has the meaning set forth in Section 3.1(c). 
  
 “Advance Rate” means, with respect to any Eligible Loan and REO Property,
the Advance Rate set forth in Exhibit H for that type of Eligible Loan or REO Property. 
  
 “Affiliate” means, when used with reference to any Person, (a) each Person that, directly or indirectly, controls, is controlled by or is under common control with, the Person referred to, (b) each
Person that beneficially owns or holds, directly or indirectly, 5% or more of any class of voting Equity Interests of the Person referred to, (c) each Person, 5% or more of the voting Equity Interests of which is beneficially owned or held, directly
or indirectly, by the Person referred to, and (d) each of such Person’s officers, directors, joint venturers and partners. For these purposes, the term “control” (including the terms “controlled by” and “under common
control with”) means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of the Person in question. 
  
 “Aged Mortgage Loans” means Mortgage Loans against which a Warehousing Advance has been outstanding for longer than the
Standard Warehouse Period, provided that Aged Mortgage Loans are permitted for such type of Mortgage Loan. 
  
 “Aged Warehouse Period” means the maximum number of days a Warehouse Advance against Aged Mortgage Loans of a particular type may remain outstanding as set forth in Exhibit H. 
  
 “Agency Security” means a Mortgage-backed Security issued or guaranteed by
Fannie Mae, Freddie Mac or Ginnie Mae. 
  
 “Agreement” means this
Second Amended and Restated Warehousing Credit and Security Agreement, either as originally executed or as it may be amended, restated, renewed or replaced. 
  
 “Appraised Property Value” means with respect to an interest in real property, the then current fair market value of the real property and any
improvements on it as of recent date determined in accordance with Title XI of FIRREA by a qualified appraiser who is a member of the American Institute of Real Estate Appraisers or other group of professional appraisers. 
  
 “Approved Custodian” means a pool custodian or other Person that Lender
deems acceptable, in its sole discretion, to hold Mortgage Loans for inclusion in a Mortgage Pool or to hold Mortgage Loans as agent for an Investor that has issued a Purchase Commitment for those Mortgage Loans. 
  
 “Audited Statement Date” means the date of Borrower’s most recent
audited financial statements (and, if applicable, Borrower’s Subsidiaries, on a consolidated basis) delivered to Lender under the Existing Agreement or this Agreement. 
  
 “Bank One” means Bank One, National Association, or any successor bank. 
  
 “Bank One Prime Rate” means, as of any date of determination, the highest
prime rate quoted by Bank One and most recently published by Bloomberg L.P. If the prime rate for Bank One is not 

  

 Page 12-1 

 
quoted or published for any period, then during that period the term “Bank One Prime Rate” means the highest prime rate published in the most
recent edition of The Wall Street Journal in its regular column entitled “Money Rates.” 
  
 “Borrower” has the meaning set forth in the first paragraph of this Agreement. 
  
 “BPO Value” means, with respect to the improved real property securing any Mortgage Loan or any REO Property, the fair market value for such real
property, if sold within a 60-day period, as set forth in an opinion of a real estate broker acceptable to the Lender, in its sole discretion, as to the value of such improved real property. Each such broker price opinion shall be obtained from a
real estate broker with substantial experience in the purchase and sale of similar properties in the geographic area in which the real property or ownership interest and occupancy rights to be valued is located. 
  
 “Business Day” means any day other than Saturday, Sunday or any other day on
which national banking associations are closed for business. 
  
 “Buydown” has the meaning set forth in Section 3.4. 
  
 “Calendar Quarter” means the 3 month period beginning on each January 1, April 1, July 1 or October 1. 
  
 “Cash Collateral Account” means a demand deposit account maintained at the Funding Bank in Lender’s name and designated for receipt of the proceeds
of the sale or other disposition of Collateral. 
  
 “Check Disbursement
Account” means a demand deposit account maintained at the Funding Bank in Borrower’s name and under the control of Lender for clearing checks written by Borrower to fund Mortgage Loans funded by Warehousing Advances. 
  
 “Closing Date” has the meaning set forth in the Recitals to this Agreement.

  
 “Collateral” has the meaning set forth in Section 4.1.

  
 “Collateral Documents” means, with respect to each Mortgage
Loan, (a) the Mortgage Note, the Mortgage and all other documents including, if applicable, any Security Agreement, executed in connection with or relating to the Mortgage Loan; (b) as applicable, the original lender’s ALTA Policy of Title
Insurance or its equivalent, documents evidencing the FHA Commitment to Insure, the VA Guaranty or private mortgage insurance, the appraisal, the Regulation Z statement, the environmental assessment, the engineering report, certificates of casualty
or hazard insurance, credit information on the maker of the Mortgage Note, the HUD-1 or corresponding purchase advice; (c) any other document listed in the applicable Exhibit B; and (d) any other document that is customarily desired for
inspection or transfer incidental to the purchase of any Mortgage Note by an Investor or that is customarily executed by the seller of a Mortgage Note to an Investor. 
  
 “Committed Purchase Price” means for an Eligible Loan (a) the dollar price as set forth in the Purchase Commitment or, if
the price is not expressed in dollars, the product of the Mortgage Note Amount multiplied by the price (expressed as a percentage) as set forth in the Purchase Commitment for the Eligible Loan, or (b) if the Eligible Loan is to be used to back an
Agency Security, an amount equal to the product of the Mortgage Note Amount multiplied by the price (expressed as a percentage) as set forth in the Purchase Commitment for the Agency Security. 
  
 “Compliance Certificate” means a certificate executed on behalf of Borrower
by its chief financial officer or its treasurer or by another officer approved by Lender, substantially in the form of Exhibit E. 
  

 Page 12-2 

 “Credit Score” means a mortgagor’s overall consumer credit rating, represented by a single numeric
credit score using the Fair, Isaac consumer credit scoring system, provided by a credit repository acceptable to Lender and the Investor that issued the Purchase Commitment covering the related Mortgage Loan (if a Purchase Commitment is required by
Exhibit H). 
  
 “Debt” means (a) all indebtedness or other
obligations of a Person (and, if applicable, that Person’s Subsidiaries, on a consolidated basis) that, in accordance with GAAP, would be included in determining total liabilities as shown on the liabilities side of a balance sheet of that
Person on the date of determination, plus (b) all indebtedness or other obligations of that Person (and, if applicable, that Person’s Subsidiaries, on a consolidated basis) for borrowed money or for the deferred purchase price of property or
services. 
  
 “Default” means the occurrence of any event or
existence of any condition that, but for the giving of Notice or the lapse of time, would constitute an Event of Default. 
  
 “Default Rate” means, for any Warehousing Advance, the Interest Rate applicable to that Warehousing Advance plus 4% per annum. If no Interest Rate is
applicable to a Warehousing Advance, “Default Rate” means, for that Warehousing Advance, the highest Interest Rate then applicable to any outstanding Warehousing Advance plus 4% per annum. 
  
 “Depository Benefit” means the compensation received by Lender, directly or
indirectly, as a result of Borrower’s maintenance of Eligible Balances with a Designated Bank. 
  
 “Designated Bank” means any bank designated by Lender as a Designated Bank, but only for as long as Lender has an agreement under which Lender receives Depository Benefits from that bank. 

 
 “Designated Bank Charges” means any fees, interest or other charges that
would otherwise be payable to a Designated Bank in connection with Eligible Balances maintained at the Designated Bank, including deposit insurance premiums, service charges and any other charges that may be imposed by governmental authorities from
time to time. 
  
 “Discontinued Loan” has the meaning set forth
in the GMAC-RFC Client Guide. 
  
 “Earnings Allowance” has the
meaning set forth in Section 3.1(b). 
  
 “Earnings Credit” has
the meaning set forth in Section 3.1(b). 
  
 “Electronic Advance
Request” means an electronic transmission through RFConnects Delivery containing the same information as Exhibit A to this Agreement. 
  
 “Electronic Tracking Agreement” means an Electronic Tracking Agreement, on the form prescribed by Lender, among Borrower, Lender, MERS and MERSCORP, Inc.

  
 “Eligible Balances” means all funds of or maintained by
Borrower (and, if applicable, Borrower’s Subsidiaries) in demand deposit or time deposit accounts at a Designated Bank, minus balances to support float, reserve requirements and any other reductions that may be imposed by governmental
authorities from time to time. 
  
 “Eligible Loan” means a Single
Family Mortgage Loan that satisfies the conditions and requirements set forth in Exhibit H. 
  
 “Eligible Mortgage Pool” means a Mortgage Pool for which (a) an Approved Custodian has issued its initial certification, (b) there exists a Purchase Commitment covering the Agency Security to be
issued on the basis of that certification and (c) the Agency Security will be delivered to Lender. 
  

 Page 12-3 

 “Equity Interests” means all shares, interests, participations or other equivalents, however,
designated, of or in a Person (other than a natural person), whether or not voting, including common stock, membership interests, warrants, preferred stock, convertible debentures and all agreements, instruments and documents convertible, in whole
or in part, into any one or more of the foregoing. 
  
 “ERISA”
means the Employee Retirement Income Security Act of 1974 and all rules and regulations promulgated under that statute, as amended, and any successor statute, rules, and regulations. 
  
 “ERISA Affiliate” means any trade or business (whether or not incorporated) that is a member of a group of which Borrower
is a member and that is treated as a single employer under Section 414 of the Internal Revenue Code. 
  
 “Event of Default” means any of the conditions or events set forth in Section 10.1. 
  
 “Excess Buydown” has the meaning set forth in Section 3.4. 
  
 “Exchange Act” means the Securities Exchange Act of 1934 and all rules and regulations promulgated under that statute, as amended, and any successor
statute, rules, and regulations. 
  
 “Exhibit A” means Exhibit
A and Exhibit A-REO, as applicable to the type of Eligible Loan against which a Warehousing Advance is to be made. 
  
 “Exhibit B” means Exhibit B, Exhibit B-REP/NP and Exhibit B-REO, as applicable to the type of Eligible Loan against which a
Warehousing Advance is to be made. 
  
 “Existing Agreement” means
the First Amended and Restated Warehousing Credit and Security Agreement dated as of May 31, 2002, as amended, between Borrower and Lender. 
  
 “Fair Market Value” means, at any time for an Eligible Loan or a related Agency Security (if the Eligible Loan is to be used to back an Agency Security)
or an REO Property as of any date of determination, (a) the Committed Purchase Price if the Eligible Loan is covered by a Purchase Commitment from Fannie Mae or Freddie Mac or the Eligible Loan is to be exchanged for an Agency Security and that
Agency Security is covered by a Purchase Commitment from an Investor, or (b) otherwise, the market price for such Eligible Loan, Agency Security or REO Property, determined by Lender based on market data for similar Mortgage Loans or Agency
Securities or REO Properties and such other criteria as Lender deems appropriate in its sole discretion. 
  
 “Fannie Mae” means Fannie Mae, a corporation created under the laws of the United States, and any successor corporation or other entity. 
  
 “FHA” means the Federal Housing Administration and any successor agency or other entity. 
  
 “FHA Mortgage Loan” means an FHA-insured Mortgage Loan included in the
Pledged Loans. 
  
 “FICA” means the Federal Insurance
Contributions Act and all rules and regulations promulgated under that statute, as amended, and any successor statute, rules and regulations. 
  
 “FIRREA” means the Financial Institutions Reform, Recovery and Enforcement Act of 1989 and all rules and regulations promulgated under that statute, as
amended, and any successor statute, rules, and regulations. 
  

 Page 12-4 

 “First Mortgage” means a Mortgage that constitutes a first Lien on the real property and improvements
described in or covered by that Mortgage. 
  
 “First Mortgage
Loan” means a Mortgage Loan secured by a First Mortgage. 
  
 “Freddie Mac” means the Federal Home Loan Mortgage Corporation, a corporation created under the laws of the United States, and any successor corporation or other entity. 
  
 “Funding Bank” means Bank One or any other bank designated by Lender as a
Funding Bank. 
  
 “Funding Bank Agreement” means a letter
agreement on the form prescribed by Lender between the Funding Bank and Borrower authorizing Lender’s access to the Operating Account and the Check Disbursement Account. 
  
 “GAAP” means generally accepted accounting principles set forth in opinions and pronouncements of the Accounting Principles
Board and the American Institute of Certified Public Accountants and in statements and pronouncements of the Financial Accounting Standards Board, or in opinions, statements or pronouncements of any other entity approved by a significant segment of
the accounting profession, which are applicable to the circumstances as of the date of determination. 
  
 “Ginnie Mae” means the Government National Mortgage Association, an agency of the United States government, and any successor agency or other entity. 
  
 “GMAC-RFC Client Guide” means the applicable loan purchase guide issued by
Lender, as the same may be amended or replaced. 
  
 “Government Mortgage
Loan” means a closed-end First Mortgage Loan that is either HUD/FHA insured (other than a HUD 203(K) Mortgage Loan or a Title I Mortgage Loan) or VA guaranteed. 
  
 “Hedging Arrangements” means, with respect to any Person, any agreements or other arrangements (including interest rate
swap agreements, interest rate cap agreements and forward sale agreements) entered into to protect that Person against changes in interest rates or the market value of assets. 
  
 “High LTV Mortgage Loan” has the meaning set forth in Exhibit H. 
  
 “HUD” means the Department of Housing and Urban Development, and any
successor agency or other entity. 
  
 “HUD 203(K) Mortgage Loan”
means an FHA-insured closed-end First Mortgage Loan to an individual obligor the proceeds of which will be used for the purpose of rehabilitating and repairing the related single family property, and which satisfies the definition of
“rehabilitation loan” in 24 C.F.R. 203.50(a). 
  
 “Indemnified
Liabilities” has the meaning set forth in Section 11.2. 
  
 “Indemnitees” has the meaning set forth in Section 11.2. 
  
 “Interest Rate” means, for any Warehousing Advance, the floating rate of interest specified for that Warehousing Advance in Exhibit H. 
  
 “Interim Statement Date” means the date of the most recent unaudited financial statements of Borrower (and, if applicable,
Borrower’s Subsidiaries, on a consolidated basis) delivered to Lender under the Existing Agreement or this Agreement. 
  

 Page 12-5 

 “Internal Revenue Code” means the Internal Revenue Code of 1986, Title 26 of the United States Code, and
all rules, regulations and interpretations issued under those statutory provisions, as amended, and any subsequent or successor federal income tax law or laws, rules, regulations and interpretations. 
  
 “Investment Company Act” means the Investment Company Act of 1940 and all
rules and regulations promulgated under that statute, as amended, and any successor statute, rules, and regulations. 
  
 “Investor” means Fannie Mae, Freddie Mac or a financially responsible private institution that Lender deems acceptable, in its sole discretion, to issue
Purchase Commitments with respect to a particular category of Eligible Loans. 
  
 “Lender” has the meaning set forth in the first paragraph of this Agreement. 
  
 “Leverage Ratio” means the ratio of a Person’s Debt to Tangible Net Worth. For purposes of calculating a Person’s Leverage Ratio, Debt arising under Hedging Arrangements, to the extent of
assets arising under those Hedging Arrangements, may be excluded from that Person’s Debt. 
  
 “LIBOR” means, for each week, the rate of interest per annum that is equal to the arithmetic mean of the U.S. Dollar London Interbank Offered Rates for 1 month periods of certain U.S. banks as of
11:00 a.m. (London time) on the first Business Day of each week on which the London Interbank market is open, as published by Bloomberg L.P. If those interest rates are not offered or published for any period, then during that period LIBOR means the
London Interbank Offered Rate for 1 month periods as published in The Wall Street Journal in its regular column entitled “Money Rates” on the first Business Day of each week on which the London Interbank market is open. 
  
 “Lien” means any lien, mortgage, deed of trust, pledge, security interest,
charge or encumbrance of any kind (including any conditional sale or other title retention agreement, any lease in the nature of such an agreement and any agreement to give any security interest). 
  
 “Liquid Assets” means the following assets owned by a Person (and, if
applicable, that Person’s Subsidiaries, on a consolidated basis) as of any date of determination: (a) unrestricted and unencumbered cash, (b) funds on deposit in accounts with any bank located in the United States (net of the aggregate amount
payable under all outstanding and unpaid checks, drafts and similar items drawn by a Person against those accounts), (c) investment grade commercial paper, (d) money market funds, and (e) marketable securities, plus, in the case of Borrower and in
the absence of a Default or Event of Default, (f) the amount of any Buydowns and Excess Buydowns and (g) the aggregate amount of available credit under all lines of credit of Borrower as of any date of determination. 
  
 “Loan Documents” means this Agreement, the Notes, any agreement of Borrower
relating to Subordinated Debt, and each other document, instrument or agreement executed by Borrower in connection with any of those documents, instruments and agreements, as originally executed or as any of the same may be amended, restated,
renewed or replaced. 
  
 “Loan Package Fee” has the meaning set
forth in Section 3.6. 
  
 “Loan-to-Value Ratio” means, for any
Mortgage Loan, the ratio of (a) the maximum amount that may be borrowed under the Mortgage Loan (whether or not borrowed) at the time of origination, plus the Mortgage Note Amounts of all other Mortgage Loans secured by senior or pari passu Liens on
the related property, to (b) the Appraised Property Value of the related property. 
  

 Page 12-6 

 “Manufactured Home” means a structure that is built on a permanent chassis (steel frame) with the wheel
assembly necessary for transportation in one or more sections to a permanent site or semi-permanent site. 
  
 “Margin Stock” has the meaning assigned to that term in Regulation U of the Board of Governors of the Federal Reserve System, as amended. 
  
 “MERS” means Mortgage Electronic Registrations Systems, Inc. and any successor entity. 
  
 “Miscellaneous Fees and Charges” means the Collateral Operations Fees set
forth on Lender’s fee schedule attached as Exhibit I and all miscellaneous disbursements, charges and expenses incurred by or on behalf of Lender for the handling and administration of Warehousing Advances and Collateral, including costs
for Uniform Commercial Code, tax lien and judgment searches conducted by Lender, filing fees, charges for wire transfers and check processing charges, charges for security delivery fees, charges for overnight delivery of Collateral to Investors,
recording fees, Funding Bank service fees and overdraft charges and Designated Bank Charges. Upon not less than 3 Business Days’ prior Notice to Borrower, Lender may modify the Collateral Operations Fees set forth in Exhibit I to conform
to current Lender practices and, as so modified, the revised Exhibit I will become part of this Agreement. 
  
 “Mortgage” means a mortgage or deed of trust on real property that is improved and substantially completed (including real property to which a
Manufactured Home has been affixed in a manner such that the Lien of a mortgage or deed of trust would attach to the Manufactured Home under applicable real property law). 
  
 “Mortgage-backed Securities” means securities that are secured or otherwise backed by Mortgage Loans. 
  
 “Mortgage Loan” means any loan evidenced by a Mortgage Note and secured by a
Mortgage and, if applicable, a Security Agreement. 
  
 “Mortgage
Note” means a promissory note secured by one or more Mortgages and, if applicable, one or more Security Agreements. 
  
 “Mortgage Note Amount” means, as of any date of determination, the then outstanding and unpaid principal amount of a Mortgage Note (whether or not an
additional amount is available to be drawn under that Mortgage Note). 
  
 “Mortgage Pool” means a pool of one or more Pledged Loans on the basis of which a Mortgage-backed Security is to be issued. 
  
 “Multiemployer Plan” means a “multiemployer plan” as defined in Section 4001(a)(3) of ERISA, to which either Borrower or any ERISA Affiliate of
Borrower has any obligation with respect to its employees. 
  
 “Nonperforming Mortgage Loan” has the meaning set forth on Exhibit H. 
  
 “Notes” means the Sublimit Note and the Warehousing Note. 
  
 “Notices” has the meaning set forth in Section 11.1. 
  
 “Obligations” means all indebtedness, obligations and liabilities of Borrower to Lender and Lender’s Subsidiaries (whether now existing or arising after the date of this Agreement, voluntary or
involuntary, joint or several, direct or indirect, absolute or contingent, liquidated or unliquidated, or decreased or extinguished and later increased and however created or incurred), including 

  

 Page 12-7 

 
Borrower’s obligations and liabilities to Lender under the Loan Documents and disbursements made by Lender for Borrower’s account. 
  
 “Operating Account” means a demand deposit account maintained at the Funding
Bank in Borrower’s name and designated for funding that portion of each Eligible Loan or REO Property not funded by a Warehousing Advance made against that Eligible Loan or REO Property and for returning any excess payment from an Investor for
a Pledged Loan or Pledged Security. 
  
 “Overdraft Advance” has
the meaning set forth in Section 3.8. 
  
 “Parent” means WMC
Finance Co., a California corporation. 
  
 “Participant” has the
meaning set forth in Section 11.8. 
  
 “Person” means and
includes natural persons, corporations, limited liability companies, limited liability partnerships, limited partnerships, general partnerships, joint stock companies, joint ventures, associations, companies, trusts, banks, trust companies, land
trusts, business trusts or other organizations, whether or not legal entities, and governments and agencies and political subdivisions of those governments. 
  
 “Plan” means each employee benefit plan (whether in existence on the date of this Agreement or established after that date), as that term is defined in
Section 3 of ERISA, maintained for the benefit of directors, officers or employees of Borrower or any ERISA Affiliate. 
  
 “Pledged Assets” means, collectively, Pledged Loans, Pledged Securities, and REO Properties. 
  
 “Pledged Hedging Accounts” has the meaning set forth in Section 4.1 (i).

  
 “Pledged Hedging Arrangements” has the meaning set forth in
Section 4.1 (i). 
  
 “Pledged Loans” has the meaning set forth in
Section 4.1(b). 
  
 “Pledged Securities” has the meaning set
forth in Section 4.1(c). 
  
 “Prime Mortgage Loan” has the
meaning set forth in Exhibit H. 
  
 “Prohibited
Transaction” has the meanings set forth for such term in Section 4975 of the Internal Revenue Code and Section 406 of ERISA. 
  
 “Purchase Commitment” means a written commitment, in form and substance satisfactory to Lender, issued in favor of Borrower by an Investor under which
that Investor commits to purchase Mortgage Loans or Mortgage-backed Securities. 
  
 “Rating Agency” means any nationally recognized statistical rating organization that in the ordinary course of its business rates Mortgage-backed Securities. 
  
 “Receivables” has the meaning set forth in Section 4.1(e). 
  
 “Release Amount” has the meaning set forth in Section 4.3(f). 
  
 “REO Mortgage” means a First Mortgage in form and substance approved by Lender covering an REO Property which has been
executed and delivered by Borrower for the benefit of Lender. 
  
 “REO
Property” has the meaning set forth in Exhibit H. 
  

 Page 12-8 

 “Repurchased Mortgage Loan” has the meaning set forth in Exhibit H. 
  
 “Restriction List” and “Restriction Lists” means each and
every list of Persons to whom the Government of the United States prohibits or otherwise restricts the provision of financial services. For the purposes of this Agreement, Restriction Lists include the list of Specifically Designated Nationals and
Blocked Persons established pursuant to Executive Order 13224 (September 23, 2001) and maintained by the Office of Foreign Assets Control, U.S. Department of the Treasury, current as of the day the Restriction List is used for purposes of comparison
in accordance with the requirements of this Agreement. 
  
 “RFC Mortgage
Loan” means a Mortgage Loan covered by a Purchase Commitment issued by Lender. 
  
 “RFConnects Delivery” means Lender’s proprietary service to support the electronic exchange of information between Lender and Borrower, including Warehousing Advance Requests, shipping requests, payoff requests, wire
transfer instructions, security delivery instructions, activity reports and exception reports. 
  
 “RFConnects Pledge Agreement” means an agreement (on the then current form prescribed by Lender) granting Lender a security interest in Mortgage Loans for which Borrower has requested Warehousing
Advances using RFConnects Delivery. 
  
 “Second Mortgage” means a
Mortgage that constitutes a second Lien on the real property and improvements described in or covered by that Mortgage. 
  
 “Second Mortgage Loan” means a Mortgage Loan secured by a Second Mortgage. 
  
 “Security Agreement” means a security agreement or other agreement that creates a Lien on personal property, including
furniture, fixtures and equipment, to secure repayment of a Mortgage Loan. 
  
 “Servicing Contract” means, with respect to any Person, the arrangement, whether or not in writing, under which that Person has the right to service Mortgage Loans. 
  
 “Servicing Portfolio” means, as to any Person, the unpaid principal balance
of Mortgage Loans serviced by that Person under Servicing Contracts, minus the principal balance of all Mortgage Loans that are serviced by that Person for others under subservicing arrangements. 
  
 “Single Family Mortgage Loan” means a Mortgage Loan secured by a Mortgage on
improved real property on which is located a 1-to-4 family residence. 
  
 “Standard Warehouse Period” means, for any Mortgage Loan or REO Property, the maximum number of days a Warehousing Advance against that type of Mortgage Loan or REO Property, other than against an Aged Mortgage Loan, may
remain outstanding, as set forth in Exhibit H. 
  
 “Statement
Date” means the Audited Statement Date or the Interim Statement Date, as applicable. 
  
 “Sublimit” means the aggregate amount of Warehousing Advances (expressed as a dollar amount or as a percentage of the Warehousing Commitment Amount) that is permitted to be outstanding at any one time
against a specific type of Eligible Loan or REO Property. 
  
 “Sublimit
Note” has the meaning set forth in Section 1.3. 
  

 Page 12-9 

 “Subordinated Debt” means all indebtedness of Borrower for borrowed money that is effectively
subordinated in right of payment to all present and future Obligations either (1) under a Subordination of Debt Agreement on the form prescribed by Lender or (2) otherwise on terms acceptable to Lender. 
  
 “Subprime Mortgage Loan” has the meaning set forth in Exhibit H.

  
 “Subsidiary” means any corporation, partnership, association
or other business entity in which more than 50% of the shares of stock or other ownership interests having voting power for the election of directors, managers, trustees or other Persons performing similar functions is at the time owned or
controlled by any Person either directly or indirectly through one or more Subsidiaries of that Person. 
  
 “Super Jumbo Mortgage Loan” means a Prime First Mortgage Loan or a Subprime First Mortgage Loan, the principal amount of which equals or exceeds $750,000. 
  
 “Tangible Net Worth” means the excess of a Person’s (and, if
applicable, that Person’s Subsidiaries, on a consolidated basis) total assets over total liabilities as of the date of determination, each determined in accordance with GAAP applied in a manner consistent with the most recent audited financial
statements delivered to Lender under the Existing Agreement. For purposes of calculating a Person’s Tangible Net Worth, advances or loans to shareholders, directors, officers, employees or Affiliates, to the extent not offset by an accrued
payable, investments in Affiliates, assets pledged to secure any liabilities not included in the Debt of that Person, intangible assets, those other assets that would be deemed by HUD to be non-acceptable in calculating adjusted net worth in
accordance with its requirements in effect as of that date, as those requirements appear in the “Consolidated Audit Guide for Audits of HUD Programs,” and other assets Lender deems unacceptable, in its sole discretion, must be excluded
from that Person’s total assets. 
  
 “Third Party Originated
Loan” means a Mortgage Loan originated and funded by a third party (other than with funds provided by Borrower at closing to purchase the Mortgage Loan) and subsequently purchased by Borrower. 
  
 “Title I Mortgage Loan” means an FHA co-insured closed-end First Mortgage
Loan or Second Mortgage Loan that is underwritten in accordance with HUD underwriting standards for the Title I Property Improvement Program set forth in, and that is reported for insurance under, the Mortgage Insurance Program authorized and
administered under Title I of the National Housing Act of 1934, as amended, and the regulations related to that statute. 
  
 “Trust Receipt” means a trust receipt in a form approved by and under which Lender may deliver any document relating to the Collateral to Borrower for
correction or completion. 
  
 “Warehousing Advance” means a
disbursement by Lender under Section 1.1. 
  
 “Warehousing Advance
Request” has the meaning set forth in Section 2.1. 
  
 “Warehousing Collateral Value” means, as of any date of determination, (a) with respect to any Eligible Loan or REO Property, the lesser of (1) the amount of any Warehousing Advance made, or that could be made, against such
Eligible Loan or REO Property under Exhibit H or (2) an amount equal to the Advance Rate for the applicable type of Eligible Loan or REO Property multiplied by the Fair Market Value of such Eligible Loan or REO Property; (b) if Eligible Loans
have been exchanged for Agency Securities, the lesser of (1) the amount of any Warehousing Advances outstanding against the Eligible Loans backing the Agency Securities or (2) an amount equal to the Advance Rates for the applicable types of Eligible
Loans backing the Agency 

  

 Page 12-10 

 
Securities multiplied by the Fair Market Value of the Agency Securities; and (c) with respect to cash, the amount of the cash. 
  
 “Warehousing Commitment” means the obligation of Lender to make Warehousing
Advances to Borrower under Section 1.1. 
  
 “Warehousing Commitment
Amount” means $400,000,000. 
  
 “Warehousing Commitment
Fee” has the meaning set forth in Section 3.5. 
  
 “Warehousing
Fee” has the meaning set forth in Section 3.6. 
  
 “Warehousing
Maturity Date” has the meaning set forth in Section 1.2. 
  
 “Warehousing Note” has the meaning set forth in Section 1.3. 
  
 “Wet Settlement Advance” means with respect to any Warehousing Advance, the time from the date the Warehousing Advance is made until the date of Lender’s receipt of the Collateral Documents required by Article 2 and
the Exhibits and documents referenced in that Article. 
  
 “Wire
Disbursement Account” means a demand deposit account maintained at the Funding Bank in Lender’s name for clearing wire transfers requested by Borrower to fund Warehousing Advances. 
  
 “Wire Fee” has the meaning set forth in Section 3.6. 
  

	12.2.	 	Other Definitional Provisions; Terms of Construction 

  

	12.2 (a)	 	Accounting terms not otherwise defined in this Agreement have the meanings given to those terms under GAAP. 

  

	12.2 (b)	 	Defined terms may be used in the singular or the plural, as the context requires. 

  

	12.2 (c)	 	All references to time of day mean the then applicable time in Chicago, Illinois, unless otherwise expressly provided. 

  

	12.2 (d)	 	References to Sections, Exhibits, Schedules and like references are to Sections, Exhibits, Schedules and the like of this Agreement unless otherwise expressly provided.

  

	12.2 (e)	 	The words “include,” “includes” and “including” are deemed to be followed by the phrase “without limitation.” 

  

	12.2 (f)	 	Unless the context in which it is used otherwise clearly requires, the word “or” has the inclusive meaning represented by the phrase “and/or.”

  

	12.2 (g)	 	All incorporations by reference of provisions from other agreements are incorporated as if such provisions were fully set forth into this Agreement, and include all necessary
definitions and related provisions from those other agreements. All provisions from other agreements incorporated into this Agreement by reference survive any termination of those other agreements until the Obligations of Borrower under this
Agreement and the Notes are irrevocably paid in full and the Warehousing Commitment is terminated. 

  

	12.2 (h)	 	All references to the Uniform Commercial Code shall be deemed to be references to the Uniform Commercial Code in effect on the date of this Agreement in the applicable jurisdiction.

  

 Page 12-11 

	12.2 (i)	 	Unless the context in which it is used otherwise clearly requires, all references to days, weeks and months mean calendar days, weeks and months. 

  
 End of Article 12 
  

 Page 12-12 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the date first above written.

  

									
	  
 Closing Date:
                                       
 
	 	 	 	 WMC MORTGAGE CORP.,
 a California
corporation

					
	 	 	 	 	 	 	 By:
	 	/s/    DAVID B. TRZCINSKI        
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 Its:
	 	Chief Financial Officer

  

									
	 	 	 	 	 RESIDENTIAL FUNDING CORPORATION,
 a Delaware
Corporation

					
	 	 	 	 	 	 	By:	 	/s/    WILLIAM E. MOFFITT        
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 Its:
	 	Director

  

 Page 12-13 

 FIRST AMENDMENT TO 
 SECOND AMENDED AND RESTATED 
 WAREHOUSING CREDIT AND SECURITY AGREEMENT 
  
 FIRST AMENDMENT TO SECOND AMENDED AND RESTATED WAREHOUSING CREDIT AND SECURITY AGREEMENT
(this “Amendment”) dated as of December 8, 2003, between WMC MORTGAGE CORP., a California corporation (“Borrower”) and RESIDENTIAL FUNDING CORPORATION, a Delaware corporation (“Lender”). 

 

	A.	 	Borrower and Lender have entered into a revolving mortgage warehousing facility with a present Warehousing Commitment Amount of $400,000,000, which is evidenced by a Warehousing
Promissory Note dated October 31, 2003, a Sublimit Promissory Note dated October 31, 2003 (collectively, the “Notes”), and by a Second Amended and Restated Warehousing Credit and Security Agreement dated as of October 31, 2003 (as
the same may have been and may be amended or supplemented, the “Agreement”). 

  

	B.	 	Borrower has requested that Lender amend certain terms of the Agreement, and Lender has agreed to such amendments, subject to the terms and conditions of this Amendment.

  
 NOW, THEREFORE, the parties to this Amendment agree as follows:

  

	1.	 	Subject to Borrower’s satisfaction of the conditions set forth in Section 7, the effective date of this Amendment is December     , 2003
(“Effective Date”). 

  

	2.	 	Unless otherwise defined in this Amendment, all capitalized terms have the meanings given to those terms in the Agreement. Defined terms may be used in the singular or the plural,
as the context requires. The words “include,” “includes” and “including” are deemed to be followed by the phrase “without limitation.” Unless the context in which it is used otherwise clearly requires, the
word “or” has the inclusive meaning represented by the phrase “and/or.” References to Sections and Exhibits are to Sections and Exhibits of this Amendment unless otherwise expressly provided. 

  

	3.	 	Article 8 of the Agreement is amended and restated in its entirety as set forth in Article 8 attached to this Amendment. All references in the Agreement and other Loan
Documents to Article 8 (including each and every Section in Article 8) are deemed to refer to the new Article 8. 

  

	4.	 	Article 10 of the Agreement is amended and restated in its entirety as set forth in Article 10 attached to this Amendment. All references in the Agreement and other
Loan Documents to Article 10 (including each and every Section in Article 10) are deemed to refer to the new Article 10. 

  

	5.	 	Exhibit E to the Agreement is amended and restated in its entirety as set forth in Exhibit E to this Amendment. All references in the Agreement and the other Loan
Documents to Exhibit E are deemed to refer to the new Exhibit E. 

  

	6.	 	Exhibit H to the Agreement is amended and restated in its entirety as set forth in Exhibit H to this Amendment. All references in the Agreement and the other Loan
Documents to Exhibit H are deemed to refer to the new Exhibit H. 

  

 Page 1 

	7.	 	Borrower must deliver to Lender (a) two executed copies of this Amendment, and (b) a $350 document production fee. 

  

	8.	 	Borrower represents, warrants and agrees that (a) there exists no Default or Event of Default under the Loan Documents, (b) the Loan Documents continue to be the legal, valid and
binding agreements and obligations of Borrower, enforceable in accordance with their terms, as modified by this Amendment, (c) Lender is not in default under any of the Loan Documents and Borrower has no offset or defense to its performance or
obligations under any of the Loan Documents, (d) except for changes permitted by the terms of the Agreement, Borrower’s representations and warranties contained in the Loan Documents are true, accurate and complete in all respects as of the
Effective Date and (e) there has been no material adverse change in Borrower’s financial condition from the date of the Agreement to the Effective Date. 

  

	9.	 	Except as expressly modified, the Agreement is unchanged and remains in full force and effect, and Borrower ratifies and reaffirms all of its obligations under the Agreement and the
other Loan Documents. 

  

	10.	 	This Amendment may be executed in any number of counterparts, each of which will be deemed an original, but all of which shall together constitute but one and the same instrument.

  
 IN WITNESS WHEREOF, Borrower and Lender have caused this
Amendment to be duly executed on their behalf by their duly authorized officers as of the day and year above written. 
  

			
	 WMC MORTGAGE CORP.,
 a California corporation

		
	By:	 	/s/    DAVID B. TRZCINSKI        
	 	 	

	 Its:
	 	 Chief Financial Officer

	 	 	

	
	 RESIDENTIAL FUNDING CORPORATION,
 a Delaware corporation

		
	By:	 	/s/    WILLIAM E. MOFFITT        
	 	 	

	 Its:
	 	 Director

	 	 	

  

 Page 2 

	8.	 	NEGATIVE COVENANTS 

  
 As long as the Warehousing Commitment is outstanding or there remain any Obligations to be paid or performed, Borrower must not, either directly or indirectly, without the prior written consent of Lender: 

 

	8.1.	 	Contingent Liabilities 

  
 Assume, guarantee, endorse or otherwise become contingently liable for the obligation of any Person except by endorsement of negotiable instruments for deposit or
collection in the ordinary course of business, and except for obligations arising in connection with the sale of Mortgage Loans with recourse in the ordinary course of Borrower’s business and others in an aggregate amount at any time
outstanding not to exceed $1,000,000. 
  

	8.2.	 	Pledge of Servicing Contracts 

  
 Except for the Collection Services Agreement, pledge or grant a security interest in any existing or future Servicing Contracts of Borrower other than to Lender, or omit
to take any action required to keep all of Borrower’s Servicing Contracts in full force and effect. 
  

	8.3.	 	Restrictions on Fundamental Changes 

  

	8.3 (a)	 	Consolidate, merge or enter into any analogous reorganization or transaction with any Person. 

  

	8.3 (b)	 	Amend or otherwise modify Borrower’s articles of incorporation or by-laws. 

  

	8.3 (c)	 	Liquidate, wind up or dissolve (or suffer any liquidation or dissolution). 

  

	8.3 (d)	 	Cease actively to engage in the business of originating or acquiring Mortgage Loans or make any other material change in the nature or scope of the business in which Borrower
engages as of the date of this Agreement. 

  

	8.3 (e)	 	Sell, assign, lease, convey, transfer or otherwise dispose of (whether in one transaction or a series of transactions) all or any substantial part of Borrower’s business or
assets, whether now owned or acquired after the Closing Date, other than, in the ordinary course of business and to the extent not otherwise prohibited by this Agreement, sales of (1) Mortgage Loans, (2) Mortgage-backed Securities and (3) Servicing
Contracts. 

  

	8.3 (f)	 	Acquire by purchase or in any other transaction all or substantially all of the business or property of, or stock or other ownership interests of, any Person, other than the
purchase of Mortgage Loans, servicing rights or all of the assets of or equity ownership interests in a Person engaged in the mortgage banking business, in each case in the ordinary course of its business. 

  

	8.3 (g)	 	Permit any Subsidiary of Borrower to do or take any of the foregoing actions, other than merge, consolidated or enter into an analogous transaction with, or liquidate or dissolve
into, or sell, assign, convey or transfer all of its assets to, Borrower (provided Borrower is the surviving corporation) or a wholly-owned Subsidiary of Borrower (provided the surviving entity is a wholly-owned Subsidiary of Borrower).

  

 Page 8-1 

	8.4.	 	Loss of Eligibility 

  
 Take any action that would cause Borrower to lose all or any part of its status as an eligible lender, seller/servicer or issuer as described under Section 9.1. 
  

	8.5.	 	Accounting Changes 

  
 Make, or permit any Subsidiary of Borrower to make, any significant change in accounting treatment or reporting practices, except as required by GAAP, or change its fiscal year or the fiscal year of any Subsidiary of
Borrower. 
  

	8.6.	 	Leverage Ratio 

  
 Permit Borrower’s Leverage Ratio at any time to exceed 15 to 1. 
  

	8.7.	 	Minimum Tangible Net Worth 

  
 Permit Borrower’s Tangible Net Worth at any time to be less than $125,000,000, plus 25% of Borrower’s (and its Subsidiaries, on a consolidated basis) net
income, if positive, for each fiscal quarter after October 1, 2003. 
  

	8.8.	 	Net Operating Losses 

  
 Permit Borrower (and its Subsidiaries, on a consolidated basis) to have more than 2 consecutive fiscal quarters of net operating losses. 
  

	8.9.	 	Minimum Liquid Assets 

  
 Permit Borrower’s Liquid Assets at any time to be less than $20,000,000. 
  

	8.10.	 	Distributions to Shareholders 

  
 Declare or pay any dividends or otherwise declare or make any distribution to Borrower’s shareholders (including any purchase or redemption of stock) if a Default or
Event of Default exists or would occur as a result of the dividend or distribution. 
  

	8.11.	 	Transactions with Affiliates 

  
 Directly or indirectly (a) make any loan, advance, extension of credit or capital contribution to any of Borrower’s Affiliates, except for loans to Lending
Concourse, LLC in an aggregate amount at any time outstanding not to exceed $1,000,000, loans to officers and directors of Borrower made in accordance with Borrower’s practices as of the Closing Date, and loans, advances, extensions of credit
or capital contributions to other wholly-owned Subsidiaries, and other loans, advances, extensions of credit or capital contributions in an aggregate amount not to exceed $5,000,000, (b) sell, transfer, pledge or assign any of its assets to or on
behalf of those Affiliates, other than sales, transfers and assignments of Mortgage Loans or residual Mortgage-backed Securities to wholly-owned, special purpose Subsidiaries in connection with the issuance of Mortgage-backed Securities; or (c)
merge or consolidate with or purchase or acquire assets from those Affiliates, except as permitted pursuant to Section 8.3, or (d) pay management fees in excess of $1,000,000 per annum to or on behalf of those Affiliates Nothing contained in this
Section 8.12 shall be deemed to restrict payment of dividends or distributions to or by Borrower or WMC Finance Co., so long as all of the other covenants of this Article 8 are complied with by Borrower. 
  

 Page 8-2 

	8.12.	 	Recourse Servicing Contracts 

  
 Acquire or enter into Servicing Contracts under which Borrower must repurchase or indemnify the holder of the Mortgage Loans as a result of defaults on the Mortgage Loans
at any time during the term of those Mortgage Loans. 
  
 End of
Article 8 
  

 Page 8-3 

	10.	 	DEFAULTS; REMEDIES 

  

	10.1.	 	Events of Default 

  
 The occurrence of any of the following is an event of default (“Event of Default”): 
  

	10.1 (a)	 	Borrower fails to pay the principal of any Warehousing Advance when due, whether at stated maturity, by acceleration, or otherwise; or fails to pay any installment of interest on
any Warehousing Advance within 9 days after the date of Lender’s invoice or, if applicable, within 2 days after the date of Lender’s account analysis statement; or fails to pay, within any applicable grace period, any other amount due
under this Agreement or any other Obligation of Borrower to Lender. 

  

	10.1 (b)	 	Borrower or any of its Subsidiaries fails to pay, or defaults in the payment of any principal or interest on, any other indebtedness or any contingent obligation within any
applicable grace period; breaches or defaults with respect to any other material term of any other indebtedness or of any loan agreement, mortgage, indenture or other agreement relating to that indebtedness, if the effect of that breach or default
is to cause, or to permit the holder or holders of that indebtedness (or a trustee on behalf of such holder or holders) to cause, indebtedness of Borrower or its Subsidiaries in the aggregate amount of $5,000,000 or more to become or be declared due
before its stated maturity (upon the giving or receiving of notice, lapse of time, both, or otherwise). 

  

	10.1 (c)	 	Borrower fails to perform or comply with any term or condition applicable to it contained in Sections 7.4 or 7.14 or in any Section of Article 8. 

  

	10.1 (d)	 	Any representation or warranty made or deemed made by Borrower under this Agreement, in any other Loan Document or in any written statement or certificate at any time given by
Borrower, other than the representations and warranties set forth in Article 9 with respect to specific Pledged Loans, is inaccurate or incomplete in any material respect on the date as of which it is made or deemed made. 

 

	10.1 (e)	 	Borrower defaults in the performance of or compliance with any term contained in this Agreement or any other Loan Document other than those referred to in Sections 10.1(a), 10.1(c)
or 10.1(d) and such default has not been remedied or waived within 30 days after the earliest of (1) receipt by Borrower of Notice from Lender of that default, (2) receipt by Lender of Notice from Borrower of that default or (3) the date Borrower
should have notified Lender of that default under Section 7.7(c) or 7.7(d). 

  

	10.1 (f)	 	An “event of default” (however defined) occurs under any agreement between Borrower and Lender other than this Agreement and the other Loan Documents.

  

	10.1 (g)	 	 A case (whether voluntary or involuntary) is filed by or against Borrower or any Subsidiary of Borrower or Parent under any applicable bankruptcy, insolvency or
other similar federal or state law; or a court of competent jurisdiction appoints a receiver (interim or permanent), liquidator, sequestrator, trustee, custodian or other officer having similar powers over Borrower or any Subsidiary of Borrower or
Parent, or over all or a substantial part of their respective properties or assets; or Borrower or any Subsidiary of Borrower or Parent (1) consents to the appointment of or possession by a receiver (interim or permanent), liquidator, sequestrator,
trustee, custodian or other officer having similar powers over Borrower or any Subsidiary of Borrower or Parent, or over all or a substantial part of their respective properties or assets, (2) makes an assignment for the 

  

 Page 10-1 

	 	 
benefit of creditors, or (3) fails, or admits in writing its inability, to pay its debts as those debts become due. 

  

	10.1 (h)	 	Borrower fails to perform any contractual obligation to repurchase Mortgage Loans, if such obligations in the aggregate exceed $750,000. 

  

	10.1 (i)	 	Any money judgment, writ or warrant of attachment or similar process involving an amount in excess of $3,000,000 is entered or filed against Borrower or any of its Subsidiaries or
any of their respective assets and remains undischarged, unvacated, unbonded or unstayed for a period of 30 days or 5 days before the date of any proposed sale under that money judgment, writ or warrant of attachment or similar process.

  

	10.1 (j)	 	Any order, judgment or decree decreeing the dissolution of Borrower or Parent is entered and remains undischarged or unstayed for a period of 20 days. 

  

	10.1 (k)	 	Borrower purports to disavow the Obligations or contests the validity or enforceability of any Loan Document. 

  

	10.1 (l)	 	Lender’s security interest on any portion of the Collateral becomes unenforceable or otherwise impaired, unless the Warehousing Advances against such Collateral are repaid
within 2 Business Days after the earliest of (1) receipt by Borrower of Notice from Lender of that default, (2) receipt by Lender of Notice from Borrower of that default or (3) the date Borrower should have notified Lender of that default under
Section 7.7(c) or 7.7(d). 

  

	10.1 (m)	 	A material adverse change occurs in Borrower’s financial condition, business, properties, operations or prospects, or in Borrower’s ability to repay the Obligations.

  

	10.1 (n)	 	Any Lien for any taxes, assessments or other governmental charges (1) is filed against Borrower or any of its property, or is otherwise enforced against Borrower or any of its
property, or (2) obtains priority that is equal to or greater than the priority of Lender’s security interest in any of the Collateral. 

  

	10.1 (o)	 	Apollo Management, L.P. ceases to own, directly or indirectly, a controlling interest of Borrower. 

  

	10.2.	 	Remedies 

  

	10.2 (a)	 	If an Event of Default described in Section 10.1(g) occurs with respect to Borrower, the Warehousing Commitment will automatically terminate and the unpaid principal amount of and
accrued interest on the Notes and all other Obligations will automatically become due and payable, without presentment, demand or other Notice or requirements of any kind, all of which Borrower expressly waives. 

  

	10.2 (b)	 	If any other Event of Default occurs, Lender may, by Notice to Borrower, terminate the Warehousing Commitment and declare the Obligations to be immediately due and payable.

  

	10.2 (c)	 	If any Event of Default occurs, Lender may also take any of the following actions: 

  

	 	(1)	Foreclose upon or otherwise enforce its security interest in any Lien on the Collateral to secure all payments and performance of the Obligations in any manner permitted by law or
provided for in the Loan Documents. 

  

 Page 10-2 

	 	(2)	Notify all obligors under any of the Collateral that the Collateral has been assigned to Lender (or to another Person designated by Lender) and that all payments on that Collateral
are to be made directly to Lender (or such other Person); settle, compromise or release, in whole or in part, any amounts any obligor or Investor owes on any of the Collateral on terms acceptable to Lender; enforce payment and prosecute any action
or proceeding involving any of the Collateral; and where any Collateral is in default, foreclose on and enforce any Liens securing that Collateral in any manner permitted by law and sell any property acquired as a result of those enforcement
actions. 

  

	 	(3)	Prepare and submit for filing Uniform Commercial Code amendment statements evidencing the assignment to Lender or its designee of any Uniform Commercial Code financing statement
filed in connection with any item of Collateral. 

  

	 	(4)	Act, or contract with a third party to act, at Borrower’s expense, as servicer or subservicer of Collateral requiring servicing, and perform all obligations required under any
Collateral, including Servicing Contracts and Purchase Commitments. 

  

	 	(5)	Require Borrower to assemble and make available to Lender the Collateral and all related books and records at a place designated by Lender. 

  

	 	(6)	Enter onto property where any Collateral or related books and records are located and take possession of those items with or without judicial process; and obtain access to
Borrower’s data processing equipment, computer hardware and software relating to the Collateral and use all of the foregoing and the information contained in the foregoing in any manner Lender deems necessary for the purpose of effectuating its
rights under this Agreement and any other Loan Document. 

  

	 	(7)	Before the disposition of the Collateral, prepare it for disposition in any manner and to the extent Lender deems appropriate. 

  

	 	(8)	Exercise all rights and remedies of a secured creditor under the Uniform Commercial Code of Minnesota or other applicable law, including selling or otherwise disposing of all or any
portion of the Collateral at one or more public or private sales, whether or not the Collateral is present at the place of sale, for cash or credit or future delivery, on terms and conditions and in the manner as Lender may determine, including sale
under any applicable Purchase Commitment. Borrower waives any right it may have to prior notice of the sale of all or any portion of the Collateral to the extent allowed by applicable law. If notice is required under applicable law, Lender will give
Borrower not less than 10 days’ notice of any public sale or of the date after which any private sale may be held. Borrower agrees that 10 days’ notice is reasonable notice. Lender may, without notice or publication, adjourn any public or
private sale one or more times by announcement at the time and place fixed for the sale, and the sale may be held at any time or place announced at the adjournment. In the case of a sale of all or any portion of the Collateral on credit or for
future delivery, the Collateral sold on those terms may be retained by Lender until the purchaser pays the selling price or takes possession of the Collateral. Lender has no liability to Borrower if a purchaser fails to pay for or take possession of
Collateral sold on those terms, and in the case of any such failure, Lender may sell the Collateral again upon notice complying with this Section. 

  

	 	(9)	 Instead of or in conjunction with exercising the power of sale authorized by Section 10.2(c)(8), Lender may proceed by suit at law or in equity to collect all

  

 Page 10-3 

	 	 
amounts due on the Collateral, or to foreclose Lender’s Lien on and sell all or any portion of the Collateral pursuant to a judgment or decree of a
court of competent jurisdiction. 

  

	 	(10)	Proceed against Borrower on the Notes. 

  

	 	(11)	Retain all excess proceeds from the sale or other disposition of the Collateral, and apply them to the payment of the Obligations under Section 10.3. 

  

	 	(12)	Exercise any or all of the rights and remedies available to Lender under the REO Mortgages or otherwise under applicable law. 

  

	10.2 (d)	 	Lender will incur no liability as a result of the commercially reasonable sale or other disposition of all or any portion of the Collateral at any public or private sale or other
disposition. Borrower waives (to the extent permitted by law) any claims it may have against Lender arising by reason of the fact that the price at which the Collateral may have been sold at a private sale was less than the price that Lender might
have obtained at a public sale, or was less than the aggregate amount of the outstanding Warehousing Advances, accrued and unpaid interest on those Warehousing Advances, and unpaid fees, even if Lender accepts the first offer received and does not
offer the Collateral to more than one offeree. Borrower agrees that any sale of Collateral under the terms of a Purchase Commitment, or any other disposition of Collateral arranged by Borrower, whether before or after the occurrence of an Event of
Default, will be deemed to have been made in a commercially reasonable manner. 

  

	10.2 (e)	 	Borrower acknowledges that Mortgage Loans are collateral of a type that is the subject of widely distributed standard price quotations and that Mortgage-backed Securities are
collateral of a type that is customarily sold on a recognized market. Borrower waives any right it may have to prior notice of the sale of Pledged Securities, and agrees that Lender may purchase Pledged Loans and Pledged Securities at a private sale
of such Collateral. 

  

	10.2 (f)	 	Borrower specifically waives and releases (to the extent permitted by law) any equity or right of redemption, stay or appraisal that Borrower has or may have under any rule of law
or statute now existing or adopted after the date of this Agreement, and any right to require Lender to (1) proceed against any Person, (2) proceed against or exhaust any of the Collateral or pursue its rights and remedies against the Collateral in
any particular order, or (3) pursue any other remedy within its power. Lender is not required to take any action to preserve any rights of Borrower against holders of mortgages having priority to the Lien of any Mortgage or Security Agreement
included in the Collateral or to preserve Borrower’s rights against other prior parties. 

  

	10.2 (g)	 	Lender may, but is not obligated to, advance any sums or do any act or thing necessary to uphold or enforce the Lien and priority of, or the security intended to be afforded by, any
Mortgage or Security Agreement included in the Collateral, including payment of delinquent taxes or assessments and insurance premiums. All advances, charges, costs and expenses, including reasonable attorneys’ fees and disbursements, incurred
or paid by Lender in exercising any right, power or remedy conferred by this Agreement, or in the enforcement of this Agreement, together with interest on those amounts at the Default Rate, from the time paid by Lender until repaid by Borrower, are
deemed to be principal outstanding under this Agreement and the Notes. 

  

	10.2 (h)	 	 No failure or delay on the part of Lender to exercise any right, power or remedy provided in this Agreement or under any other Loan Document, at law or in equity,
will operate as a waiver of that right, power or remedy. No single or partial exercise by Lender of any 

  

 Page 10-4 

	 	 
right, power or remedy provided under this Agreement or any other Loan Document, at law or in equity, precludes any other or further exercise of that right,
power, or remedy by Lender, or Lender’s exercise of any other right, power or remedy. Without limiting the foregoing, Borrower waives all defenses based on the statute of limitations to the extent permitted by law. The remedies provided in this
Agreement and the other Loan Documents are cumulative and are not exclusive of any remedies provided at law or in equity. 

  

	10.2 (i)	 	Borrower grants Lender a license or other right to use, without charge, Borrower’s computer programs, other programs, labels, patents, copyrights, rights of use of any name,
trade secrets, trade names, trademarks, service marks and advertising matter, or any property of a similar nature, as it pertains to the Collateral, in advertising for sale and selling any of the Collateral and Borrower’s rights under all
licenses and all other agreements related to the foregoing inure to Lender’s benefit until the Obligations are paid in full. 

  

	10.3.	 	Application of Proceeds 

  
 Lender may apply the proceeds of any sale, disposition or other enforcement of Lender’s Lien on all or any portion of the Collateral to the payment of the
Obligations in the order Lender determines in its sole discretion. From and after the indefeasible payment to Lender of all of the Obligations, any remaining proceeds of the Collateral will be paid to Borrower, or to its successors or assigns, or as
a court of competent jurisdiction may direct. If the proceeds of any sale, disposition or other enforcement of the Collateral are insufficient to cover the costs and expenses of that sale, disposition or other enforcement and payment in full of all
Obligations, Borrower is liable for the deficiency. 
  

	10.4.	 	Lender Appointed Attorney-in-Fact 

  
 Borrower appoints Lender its attorney-in-fact, with full power of substitution, for the purpose of carrying out the provisions of this Agreement, the Notes and the other
Loan Documents and taking any action and executing any instruments that Lender deems necessary or advisable to accomplish that purpose. Borrower’s appointment of Lender as attorney-in-fact is irrevocable and coupled with an interest. Without
limiting the generality of the foregoing, Lender may give notice of its Lien on the Collateral to any Person, either in Borrower’s name or in its own name, endorse all Pledged Loans or Pledged Securities payable to the order of Borrower, change
or cause to be changed the book-entry registration or name of subscriber or Investor on any Pledged Security, prepare and submit for filing Uniform Commercial Code amendment statements with respect to any Uniform Commercial Code financing statements
filed in connection with any item of Collateral or receive, endorse and collect all checks made payable to the order of Borrower representing payment on account of the principal of or interest on, or the proceeds of sale of, any of the Pledged Loans
or Pledged Securities and give full discharge for those transactions. 
  

	10.5.	 	Right of Set-Off 

  
 If Borrower defaults in the payment of any Obligation or in the performance of any of its duties under the Loan Documents, Lender may, without Notice to or demand on Borrower (which Notice or demand Borrower expressly
waives), set-off, appropriate or apply any property of Borrower held at any time by Lender, or any indebtedness at any time owed by Lender to or for the account of Borrower, against the Obligations, whether or not those Obligations have matured.

  
 End of Article 10 
  

 Page 10-5

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