Document:

Form of Employment Agreement

 Exhibit 10.3 
 Form of Employment Agreement 
 EMPLOYMENT AGREEMENT 
 This EMPLOYMENT AGREEMENT (the “Agreement”), is entered into as of
                    , 2006 (the “Effective Date”) by and between New Oriental Education & Technology Group Inc., a
company incorporated and existing under the laws of the Cayman Islands (the “Company”) and             , an individual (the “Executive”). Except
with respect to the direct employment of the Executive by the Company, the term “Company” as used herein with respect to all obligations of the Executive hereunder shall be deemed to include the Company and all of its subsidiaries and
affiliated entities (collectively, the “Group”). 
 RECITALS 
 A. The Company desires to employ the Executive as its
                             and to assure itself of the services of the Executive during the term of
Employment (as defined below). 
 B. The Executive desires to be employed by the Company as its
                             during the term of Employment and upon the terms and conditions of this
Agreement. 
 AGREEMENT 
 The parties
hereto agree as follows: 
  

	1.	POSITION 

 The Executive hereby accepts a position
of                              (the “Employment”) of the Company. 
  

	2.	TERM 

 Subject to the terms and conditions of this
Agreement, the initial term of the Employment shall be three years commencing on the Effective Date, unless terminated earlier pursuant to the terms of this Agreement. Upon expiration of the initial three-year term, the Employment shall be
automatically extended for successive one-year terms unless either party gives the other party hereto a one-month prior written notice to terminate the Employment prior to the expiration of such one-year term or unless terminated earlier pursuant to
the terms of this Agreement. 
  

	3.	PROBATION 

 No probationary period. 
  

	4.	DUTIES AND RESPONSIBILITIES 

 The Executive’s
duties at the Company will include all jobs assigned by the Company’s Board of the Directors (the “Board”) or the Company’s Chief Executive Officer, as the case may be. 
  

 1. 

 The Executive shall devote all of his or her working time, attention and skills to the performance of his
or her duties at the Company and shall faithfully and diligently serve the Company in accordance with this Agreement, the Memorandum and Articles of Association of the Company (the “Articles of Association”), and the guidelines,
policies and procedures of the Company approved from time to time by the Board. 
 The Executive shall use his or her best efforts to perform
his or her duties hereunder. The Executive shall not, without the prior written consent of the Board, become an employee of any entity other than the Company and any subsidiary or affiliate of the Company, and shall not be concerned or interested in
private education business or entity that competes with that carried on by the Company (any such business or entity, a “Competitor”), provided that nothing in this clause shall preclude the Executive from holding any shares
or other securities of any Competitor that is listed on any securities exchange or recognized securities market anywhere. The Executive shall notify the Company in writing of his or her interest in such shares or securities in a timely manner and
with such details and particulars as the Company may reasonably require. 
  

	5.	NO BREACH OF CONTRACT 

 The Executive hereby
represents to the Company that: (i) the execution and delivery of this Agreement by the Executive and the performance by the Executive of the Executive’s duties hereunder shall not constitute a breach of, or otherwise contravene, the terms
of any other agreement or policy to which the Executive is a party or otherwise bound except for agreements entered into by and between the Executive and any member of the Group pursuant to applicable law, if any; (ii) that the Executive has no
information (including, without limitation, confidential information and trade secrets) relating to any other person or entity which would prevent, or be violated by, the Executive entering into this Agreement or carrying out his duties hereunder;
(iii) that the Executive is not bound by any confidentiality, trade secret or similar agreement (other than this) with any other person or entity except for other member(s) of the Group, as the case may be. 
  

	6.	LOCATION 

 The Executive will be based in Beijing,
China. The Company reserves the right to transfer or second the Executive to any location in China or elsewhere in accordance with its operational requirements. 
  

	7.	COMPENSATION AND BENEFITS 

  

	 	(a)	Cash Compensation. The Executive’s cash compensation (including salary and bonus) shall be provided by the Company pursuant to Schedule A hereto, subject to
annual review and adjustment by the Company. 

  

	 	(b)	Equity Incentives. To the extent the Company adopts and maintains a share incentive plan, the Executive will be eligible for participating in such plan pursuant to the terms
thereof as determined by the Company. 

  

 2. 

	 	(c)	Benefits. The Executive is eligible for participation in any standard employee benefit plan of the Company that currently exists or may be adopted by the Company in the
future, including, but not limited to, any retirement plan, life insurance plan, health insurance plan and travel/holiday plan. 

  

	8.	TERMINATION OF THE AGREEMENT 

  

	 	(a)	By the Company. The Company may terminate the Employment for cause, at any time, without notice or remuneration, if (1) the Executive is convicted or pleads guilty to a
felony or to an act of fraud, misappropriation or embezzlement, (2) the Executive has been negligent or acted dishonestly to the detriment of the Company, (3) the Executive has engaged in actions amounting to misconduct or failed to
perform his or her duties hereunder and such failure continues after the Executive is afforded a reasonable opportunity to cure such failure, (4) the Executive has died, or (5) the Executive has a disability which shall mean a physical or
mental impairment which, as reasonably determined by the Board, renders the Executive unable to perform the essential functions of his employment with the Company, even with reasonable accommodation that does not impose an undue hardship on the
Company, for more than 180 days in any 12-month period, unless a longer period is required by applicable law, in which case that longer period would apply. In addition, the Company may terminate the Employment without cause, at any time, upon one
month written notice, and upon termination without cause, the Company shall provide compensation to the Executive as expressly required by applicable law of the jurisdiction where the Executive is based. 

  

	 	(b)	By the Executive. The Executive may terminate the Employment at any time with a one-month prior written notice to the Company, if (1) there is a material reduction in
the Executive’s authority, duties and responsibilities, or (2) there is a material reduction in the Executive’s annual salary before the next annual salary review. In addition, the Executive may resign prior to the expiration of the
Agreement if such resignation is approved by the Board or an alternative arrangement with respect to the Employment is agreed to by the Board. 

  

	 	(c)	Notice of Termination. Any termination of the Executive’s employment under this Agreement shall be communicated by written notice of termination from the terminating
party to the other party. The notice of termination shall indicate the specific provision(s) of this Agreement relied upon in effecting the termination. 

  

	9.	CONFIDENTIALITY AND NONDISCLOSURE 

  

	 	(a)	Confidentiality and Non-disclosure. In the course of the Executive’s services, the Executive may have access to the Company, and/or the Company’s client’s
and/or prospective client’s trade secrets and confidential information, including but not limited to those embodied in memoranda, manuals, letters or other documents, computer disks, tapes or other information storage devices, hardware, or
other media or vehicles, pertaining to the Company and/or the Company’s client’s and/or prospective client’s business. All such trade secrets and confidential information are considered confidential. All materials containing any such
trade secret and confidential information are the property of the Company and/or the Company’s client and/or prospective client, and shall be returned to the Company, and/or the Company’s client and/or prospective client upon expiration or
earlier termination of this Agreement. The Executive shall not directly or indirectly disclose or use any such trade secret or confidential information, except as required in the performance of the Executive’s duties in connection with the
Employment, or pursuant to applicable law. 

  

 3. 

	 	(b)	Trade Secrets. During and after the Employment, the Executive shall hold the Trade Secrets in strict confidence; the Executive shall not disclose these Trade Secrets to
anyone except other employees of the Company who have a need to know the Trade Secrets in connection with the Company’s business. The Executive shall not use the Trade Secrets other than for the benefits of the Company.

 “Trade Secrets” means information deemed confidential by the Company, treated by the Company or which the
Executive know or ought reasonably to have known to be confidential, and trade secrets, including without limitation designs, processes, pricing policies, methods, inventions, conceptions, technology, technical data, financial information, corporate
structure and know-how, relating to the business and affairs of the Company and its subsidiaries, affiliates and business associates, whether embodied in memoranda, manuals, letters or other documents, computer disks, tapes or other information
storage devices, hardware, or other media or vehicles. Trade Secrets do not include information generally known or released to public domain through no fault of the Executive. 
  

	 	(c)	Former Employer Information. The Executive agrees that he or she has not and will not, during the term of his or her employment, (i) improperly use or disclose any
proprietary information or trade secrets of any former employer or other person or entity with which the Executive has an agreement or duty to keep in confidence information acquired by Executive, if any, or (ii) bring into the premises of
Company any document or confidential or proprietary information belonging to such former employer, person or entity unless consented to in writing by such former employer, person or entity. The Executive will indemnify the Company and hold it
harmless from and against all claims, liabilities, damages and expenses, including reasonable attorneys’ fees and costs of suit, arising out of or in connection with any violation of the foregoing. 

  

	 	(d)	Third Party Information. The Executive recognizes that the Company may have received, and in the future may receive, from third parties their confidential or proprietary
information subject to a duty on the Company’s part to maintain the confidentiality of such information and to use it only for certain limited purposes. The Executive agrees that the Executive owes the Company and such third parties, during the
Executive’s employment by the Company and thereafter, a duty to hold all such confidential or proprietary information in the strictest confidence and not to disclose it to any person or firm and to use it in a manner consistent with, and for
the limited purposes permitted by, the Company’s agreement with such third party. 

  

 4. 

 This Section 9 shall survive the termination of this Agreement for any reason. In the event the
Executive breaches this Section 9, the Company shall have right to seek remedies permissible under applicable law. 
  

	10.	INVENTIONS 

  

	 	(a)	Inventions Retained and Licensed. The Executive has attached hereto, as Schedule B, a list describing all inventions, ideas, improvements, designs and discoveries,
whether or not patentable and whether or not reduced to practice, original works of authorship and trade secrets made or conceived by or belonging to the Executive (whether made solely by the Executive or jointly with others) that (i) were
developed by Executive prior to the Executive’s employment by the Company (collectively, “Prior Inventions”), (ii) relate to the Company’ actual or proposed business, products or research and development, and
(iii) are not assigned to the Company hereunder; or, if no such list is attached, the Executive represents that there are no such Prior Inventions. The Executive hereby acknowledges that, if in the course of his or her service for the Company,
the Executive incorporates into a Company product or process a Prior Invention owned by the Executive or in which he or she has an interest, the Company is hereby granted and shall have a nonexclusive, royalty-free, irrevocable, perpetual, worldwide
right and license (which may be freely transferred by the Company to any other person or entity) to make, have made, modify, use, sell, sublicense and otherwise distribute such Prior Invention as part of or in connection with such product, process
or machine. 

  

	 	(b)	Disclosure and Assignment of Inventions. The Executive understands that the Company engages in research and development and other activities in connection with its business
and that, as an essential part of the Employment, the Executive is expected to make new contributions to and create inventions of value for the Company. 

 From and after the Effective Date, the Executive shall disclose in confidence to the Company all inventions, improvements, designs, original works of authorship, formulas, processes, compositions of matter, computer
software programs, databases, mask works and trade secrets (collectively, the “Inventions”), which the Executive may solely or jointly conceive or develop or reduce to practice, or cause to be conceived or developed or reduced to
practice, during the period of the Executive’s Employment at the Company. The Executive acknowledges that copyrightable works prepared by the Executive within the scope of and during the period of the Executive’s Employment with the
Company are “works for hire” and that the Company will be considered the author thereof. The Executive agrees that all the Inventions shall be the sole and exclusive property of the Company and the Executive hereby assign all his or her
right, title and interest in and to any and all of the Inventions to the Company or its successor in interest without further consideration. 
  

 5. 

	 	(c)	Patent and Copyright Registration. The Executive agrees to assist the Company in every proper way to obtain for the Company and enforce patents, copyrights, mask work rights,
trade secret rights, and other legal protection for the Inventions. The Executive will execute any documents that the Company may reasonably request for use in obtaining or enforcing such patents, copyrights, mask work rights, trade secrets and
other legal protections. The Executive’s obligations under this paragraph will continue beyond the termination of the Employment with the Company, provided that the Company will reasonably compensate the Executive after such termination for
time or expenses actually spent by the Executive at the Company’s request on such assistance. The Executive appoints the Secretary of the Company as the Executive’s attorney-in-fact to execute documents on the Executive’s behalf for
this purpose. 

  

	 	(d)	Return of Confidential Materials. In the event of the Executive’s termination of employment with the Company for any reason whatsoever, Executive agrees promptly to
surrender and deliver to the Company all records, materials, equipment, drawings, documents and data of any nature pertaining to any confidential information or to his or her employment, and Executive will not retain or take with him or her any
tangible materials or electronically stored data, containing or pertaining to any confidential information that Executive may produce, acquire or obtain access to during the course of his or her employment. 

 This Section 10 shall survive the termination of this Agreement for any reason. In the event the Executive breaches this Section 10, the Company
shall have right to seek remedies permissible under applicable law. 
  

	11.	CONFLICTING EMPLOYMENT 

 The Executive hereby agrees
that, during the term of his or her employment with the Company, he or she will not engage in any other employment, occupation, consulting or other business activity related to the business in which the Company is now involved or becomes involved
during the term of the Executive’s employment, nor will the Executive engage in any other activities that conflict with his or her obligations to the Company without the prior written consent of the Company. 
  

	12.	NON-COMPETITION AND NON-SOLICITATION 

 In
consideration of the salary paid to the Executive by the Company, the Executive agree that during the term of the Employment and for a period of one (1) year following the termination of the Employment for whatever reason: 
  

	 	(a)	The Executive will not approach clients, customers or contacts of the Company or other persons or entities introduced to the Executive in the Executive’s capacity as a
representative of the Company for the purposes of doing business with such persons or entities which will harm the business relationship between the Company and such persons and/or entities; 

  

 6. 

	 	(b)	unless expressly consented to by the Company, the Executive will not assume employment with or provide services as a director or otherwise for any Competitor, or engage, whether as
principal, partner, licensor or otherwise, in any Competitor; and 

  

	 	(c)	unless expressly consented to by the Company, the Executive will not seek directly or indirectly, by the offer of alternative employment or other inducement whatsoever, to solicit
the services of any employee of the Company employed as at or after the date of such termination, or in the year preceding such termination. 

 The provisions contained in Section 12 are considered reasonable by the Executive and the Company. In the event that any such provisions should be found to be void under applicable laws but would be valid if some
part thereof was deleted or the period or area of application reduced, such provisions shall apply with such modification as may be necessary to make them valid and effective. 
 This Section 12 shall survive the termination of this Agreement for any reason. In the event the Executive breaches this Section 12, the
Executive acknowledges that there will be no adequate remedy at law, and the Company shall be entitled to injunctive relief and/or a decree for specific performance, and such other relief as may be proper (including monetary damages if appropriate).
In any event, the Company shall have right to seek all remedies permissible under applicable law. 
  

	13.	WITHHOLDING TAXES 

 Notwithstanding anything else
herein to the contrary, the Company may withhold (or cause there to be withheld, as the case may be) from any amounts otherwise due or payable under or pursuant to this Agreement such national, provincial, local or any other income, employment, or
other taxes as may be required to be withheld pursuant to any applicable law or regulation. 
  

	14.	ASSIGNMENT 

 This Agreement is personal in its
nature and neither of the parties hereto shall, without the consent of the other, assign or transfer this Agreement or any rights or obligations hereunder; provided, however, that (i) the Company may assign or transfer this Agreement or any
rights or obligations hereunder to any member of the Group without such consent, and (ii) in the event of a merger, consolidation, or transfer or sale of all or substantially all of the assets of the company with or to any other individual(s)
or entity, this Agreement shall, subject to the provisions hereof, be binding upon and inure to the benefit of such successor and such successor shall discharge and perform all the promises, covenants, duties, and obligations of the Company
hereunder. 
  

 7. 

	15.	SEVERABILITY 

 If any provision of this Agreement or
the application thereof is held invalid, the invalidity shall not affect other provisions or applications of this Agreement which can be given effect without the invalid provisions or applications and to this end the provisions of this Agreement are
declared to be severable. 
  

	16.	ENTIRE AGREEMENT 

 This Agreement constitutes the
entire agreement and understanding between the Executive and the Company regarding the terms of the Employment and supersedes all prior or contemporaneous oral or written agreements concerning such subject matter. The Executive acknowledges that he
or she has not entered into this Agreement in reliance upon any representation, warranty or undertaking which is not set forth in this Agreement. Any amendment to this Agreement must be in writing and signed by the Executive and the Company.

  

	17.	GOVERNING LAW 

 This Agreement shall be governed by
and construed in accordance with the law of the State of New York, USA. 
  

	18.	AMENDMENT 

 This Agreement may not be amended,
modified or changed (in whole or in part), except by a formal, definitive written agreement expressly referring to this Agreement, which agreement is executed by both of the parties hereto. 
  

	19.	WAIVER 

 Neither the failure nor any delay on the
part of a party to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the
same or of any right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence.
No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver. 
  

	20.	NOTICES 

 All notices, requests, demands and other
communications required or permitted under this Agreement shall be in writing and shall be deemed to have been duly given and made if (i) delivered by hand, (ii) otherwise delivered against receipt therefor, or (iii) sent by a
recognized courier with next-day or second-day delivery to the last known address of the other party. 
  

 8. 

	21.	COUNTERPARTS 

 This Agreement may be executed in any
number of counterparts, each of which shall be deemed an original as against any party whose signature appears thereon, and all of which together shall constitute one and the same instrument. This Agreement shall become binding when one or more
counterparts hereof, individually or taken together, shall bear the signatures of all of the parties reflected hereon as the signatories. Photographic copies of such signed counterparts may be used in lieu of the originals for any purpose.

  

	22.	NO INTERPRETATION AGAINST DRAFTER 

 Each party
recognizes that this Agreement is a legally binding contract and acknowledges that it, he or she has had the opportunity to consult with legal counsel of choice. In any construction of the terms of this Agreement, the same shall not be construed
against either party on the basis of that party being the drafter of such terms. 
 [Remainder of this page has been intentionally left
blank.] 
  

 9. 

 IN WITNESS WHEREOF, this Agreement has been executed as of the date first written above.

  

			
	New Oriental Education & Technology Group Inc.
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	Executive
		
	Signature:	 	  

	Name:	 	
	Title:	 	

 Schedule A 
 Cash Compensation 
  

					
	 	  	Amount	  	Pay Period
	 Salary
	  		  	
			
	 BonusForm of Amendment #3 to Warehouse Loan Purchase Agreement

 Exhibit 10.1 
 AMENDMENT NO. 3 
 Dated as of August 22, 2006 
 to 
 WAREHOUSE LOAN PURCHASE AGREEMENT 
 Dated as of March 23, 2005 
 This
AMENDMENT NO. 3 (this “Amendment”) dated as of August 22, 2006 is entered into among MWL FUNDING, INC., a Delaware corporation (the “Seller”), CAFCO, LLC, a Delaware limited liability company, CHARTA, LLC, a
Delaware limited liability company, and CRC FUNDING, LLC, a Delaware limited liability company, as “Conduit Purchasers”, CIESCO, LLC, a Delaware limited liability company, as a new “Conduit Purchaser”, CITIBANK, N.A., as a
“Committed Purchaser”, CITICORP NORTH AMERICA, INC., a Delaware corporation (“CNAI”), as program agent (the “Program Agent”) for the Conduit Purchasers and the Committed Purchaser and as a Group Agent, and
COLONIAL BANK, N.A., a national banking association (“Colonial Bank”), as “Originator”, as “Servicer” and as “Facility Custodian.” 
 WHEREAS, the Seller, the Conduit Purchasers, the Committed Purchasers, the Program Agent, the Servicer and the Facility Custodian have entered into a
Warehouse Loan Purchase Agreement dated as of March 23, 2005 (as amended, the “Purchase Agreement”, the terms defined in the Purchase Agreement being used herein as defined in the Purchase Agreement unless otherwise defined
herein); and 
 WHEREAS, the parties hereto have agreed to amend the Purchase Agreement on the terms and conditions hereafter set forth.

 NOW, THEREFORE, the parties hereto agree as follows: 
 SECTION 1. Amendments to the Purchase Agreement. Effective upon the “Effective Date” as defined in Section 3 below, the Purchase Agreement is hereby amended as follows: 
 (a) Section 1.01 of the Purchase Agreement is amended to insert each of the following defined terms in proper alphabetical order therein:

 “CIESCO” means CIESCO, LLC, a Delaware limited liability company, and any successor or assign thereof that
is a receivables investment company which in the ordinary course of its business issues commercial paper or other securities to fund its acquisition and maintenance of receivables 
 “Net Eligible Conforming AOT Balance” means at any time an amount equal to the aggregate Outstanding Balance of all
interests in Eligible AOT Mortgage Pools and Eligible AOT Securities related to Conforming Mortgage Loans which are Pool Assets at such time (including, without limitation, all Agency AOT Mortgage Pools and all AOT Securities related thereto)
minus, without duplication, the sum of (i) the 

 
principal amount of all interests in Eligible AOT Mortgage Pools and Eligible AOT Securities related to Conforming Mortgage Loans included in the Bailee
Concentration Excess Amount at such time, and (ii) the principal amount of all interests in Eligible AOT Mortgage Pools and Eligible AOT Securities related to Conforming Mortgage Loans included in the AOT Concentration Excess Amount at such
time. 
 “Net Eligible Conforming COLB Balance” means at any time an amount equal to the aggregate
Outstanding Balance of all Eligible COLB Mortgage Loans related to Conforming Mortgage Loans which are Pool Assets at such time minus, without duplication, the sum of (i) the principal amount of all Eligible COLB Mortgage Loans related
to Conforming Mortgage Loans included in the Bailee Concentration Excess Amount at such time, (ii) the principal amount of all Eligible COLB Mortgage Loans related to Conforming Mortgage Loans included in the COLB Concentration Excess Amount at
such time, and (iii) the principal amount of all Eligible COLB Mortgage Loans related to Conforming Mortgage Loans included in the Wet Funding Concentration Excess Amount at such time. 
 “Net Eligible Conforming Loan Balance” means at any time an amount equal to the aggregate Outstanding Balance of all
Eligible Advances related to Conforming Mortgage Loans which are Pool Assets at such time minus, without duplication, the sum of (i) the principal amount of all Eligible Advances related to Conforming Mortgage Loans included in the
Bailee Concentration Excess Amount at such time, (ii) the principal amount of all Eligible Advances related to Conforming Mortgage Loans included in the Direct CNB Customer Concentration Excess Amount at such time, and (iii) the principal
amount of all Eligible Advances related to Conforming Mortgage Loans included in the Wet Funding Concentration Excess Amount at such time; provided, however, that for purposes of the foregoing calculation, the aggregate Outstanding
Balance of all Eligible Advances related to Conforming Mortgage Loans which are Pool Assets made pursuant to Indirect Syndicated Loan Agreements at any time shall be deemed to be the aggregate amount, for each such Indirect Syndicated Loan Agreement
of the positive result, if any, of: 
                 OB – [CO x MIML] – [CO x MNCML] 
 where: 
  

					
	OB	 	=    	  	the aggregate outstanding balance of all Advances due to the Originator under such Indirect Syndicated Loan Agreement at such time;
			
	CO	 	=    	  	the aggregate amount of the commitment of the Originator to make Advances to the related CNB Customer pursuant to such Indirect Syndicated Loan Agreement at such time;
			
	MIML	 	=    	  	the maximum percentage of Mortgage Loans which would not satisfy each of the criteria of an Eligible Mortgage Loan hereunder which is permitted to be financed pursuant to the terms of such
Indirect Syndicated Loan Agreement at such time; and

  

 2 

					
	MNCML	 	=    	  	the maximum percentage of Eligible Mortgage Loans which would constitute Non-Conforming Mortgage Loans hereunder which is permitted to be financed pursuant to the terms of such Indirect
Syndicated Loan Agreement at such time.

 “Net Eligible Non-Conforming AOT Balance” means at any time an
amount equal to the aggregate Outstanding Balance of all interests in Eligible AOT Mortgage Pools and Eligible AOT Securities related to Non-Conforming Mortgage Loans which are Pool Assets at such time (including, without limitation, all Agency AOT
Mortgage Pools and all AOT Securities related thereto) minus, without duplication, the sum of (i) the principal amount of all interests in Eligible AOT Mortgage Pools and Eligible AOT Securities related to Non-Conforming Mortgage Loans
included in the Bailee Concentration Excess Amount at such time, (ii) the principal amount of all interests in Eligible AOT Mortgage Pools and Eligible AOT Securities related to Non-Conforming Mortgage Loans included in the AOT Concentration
Excess Amount at such time, and (iii) the principal amount of all interests in Eligible AOT Mortgage Pools and Eligible AOT Securities related to Non-Conforming Mortgage Loans included in the Non-Conforming Concentration Excess Amount at such
time. 
 “Net Eligible Non-Conforming COLB Balance” means at any time an amount equal to the aggregate
Outstanding Balance of all Eligible COLB Mortgage Loans related to Non-Conforming Mortgage Loans which are Pool Assets at such time minus, without duplication, the sum of (i) the principal amount of all Eligible COLB Mortgage Loans
related to Non-Conforming Mortgage Loans included in the Bailee Concentration Excess Amount at such time, (ii) the principal amount of all Eligible COLB Mortgage Loans related to Non-Conforming Mortgage Loans included in the COLB Concentration
Excess Amount at such time, (iii) the principal amount of all Eligible COLB Mortgage Loans related to Non-Conforming Mortgage Loans included in the Wet Funding Concentration Excess Amount at such time, and (iv) the principal amount of all
Eligible COLB Mortgage Loans related to Non-Conforming Mortgage Loans included in the Non-Conforming Concentration Excess Amount at such time. 
 “Net Eligible Non-Conforming Loan Balance” means at any time an amount equal to the aggregate Outstanding Balance of all Eligible Advances related to Non-Conforming Mortgage Loans which are Pool
Assets at such time, minus, without duplication, the sum of (i) the principal amount of all Eligible Advances related to Non-Conforming Mortgage Loans included in the Bailee Concentration Excess Amount at such time, (ii) the
principal amount of all Eligible Advances related to Non-Conforming Mortgage Loans included in the Direct CNB Customer Concentration Excess Amount at such time, (iii) the principal amount of all Eligible Advances related to Non-Conforming
Mortgage Loans included in the Wet Funding Concentration Excess Amount at such time, and (iv) the principal amount of all Eligible Advances related to Non-Conforming Mortgage Loans included in the Non-Conforming Concentration Excess Amount at
such time; provided, however, that for purposes of the foregoing calculation, the aggregate 

  

 3 

 
Outstanding Balance of all Eligible Advances related to Non-Conforming Mortgage Loans which are Pool Assets made pursuant to Indirect Syndicated Loan
Agreements at any time shall be deemed to be the aggregate amount, for each such Indirect Syndicated Loan Agreement of the positive result, if any, of: 
 the lesser of:            OB – [CO x MIML]; and 
                                  CO x MNCML 
 where: 
  

					
	OB	 	=    	  	the aggregate outstanding balance of all Advances due to the Originator under such Indirect Syndicated Loan Agreement at such time;
			
	CO	 	=    	  	the aggregate amount of the commitment of the Originator to make Advances to the related CNB Customer pursuant to such Indirect Syndicated Loan Agreement at such time;
			
	MIML	 	=    	  	the maximum percentage of Mortgage Loans which would not satisfy each of the criteria of an Eligible Mortgage Loan hereunder which is permitted to be financed pursuant to the terms of such
Indirect Syndicated Loan Agreement at such time; and
			
	MNCML	 	=    	  	the maximum percentage of Mortgage Loans which would constitute Non-Conforming Mortgage Loans hereunder which is permitted to be financed pursuant to the terms of such Indirect Syndicated Loan
Agreement at such time

 “Purchasers’ Interest Collection Percentage” means, for any
date of determination, a percentage computed as: 
 AC + LR 
 EA 
 where: 
  

					
	AC	 	=    	  	the aggregate Capital of all Asset Interests on such date
			
	LR	 	=    	  	the Loss Reserve on such date
			
	EA	 	=    	  	the aggregate Outstanding Balance of Eligible Assets on such date

 Notwithstanding the foregoing, from and after the date on which the Termination
Date shall have occurred for all Asset Interests and until each Asset Interest is reduced to zero in accordance with Section 2.03, the “Purchasers’ Interest Collection Percentage” shall equal the percentage as calculated
above on the Business Day immediately preceding the Termination Date. 
  

 4 

 “Supplemental Servicer Fee” has the meaning set forth in
Section 2.05(a). 
 “Total Net Eligible Assets” has the meaning set forth on Annex I.

 “Wet Funding Loan Concentration Limit” has the meaning set forth on Annex I. 
 “Wet Funding COLB Concentration Limit” has the meaning set forth on Annex I. 
 “Wet Funding COLB Concentration Excess Amount” means, at any time, the amount by which (i) the aggregate Outstanding
Balance of all Eligible COLB Mortgage Loans purchased from any Designated CNB Customer, the Mortgage Loans with respect to which are Wet Funding Loans, exceeds (ii) the Wet Funding COLB Concentration Limit. For the purpose of calculating the
Total Net Eligible Assets, the Net Conforming Pool Balance and the Net Non-Conforming Pool Balance, the Wet Funding COLB Concentration Excess Amount shall be allocated first, to Pool Assets which are included in clause (i) of the
preceding sentence and relate to Eligible COLB Mortgage Loans related to Non-Conforming Mortgage Loans and second, to Pool Assets which are included in clause (i) of the preceding sentence and relate to Eligible COLB Mortgage Loans
related to Conforming Mortgage Loans. 
 “Wet Funding Loan Concentration Excess Amount” means, at any time,
the amount by which (i) the aggregate Outstanding Balance of all Eligible Advances due from any Designated CNB Customer, the Mortgage Loans with respect to which are Wet Funding Loans, exceeds (ii) the Wet Funding Loan Concentration Limit.
For the purpose of calculating the Total Net Eligible Assets, the Net Conforming Pool Balance and the Net Non-Conforming Pool Balance, the Wet Funding Loan Concentration Excess Amount shall be allocated first, to Pool Assets which are
included in clause (i) of the preceding sentence and relate to Eligible Advances related to Non-Conforming Mortgage Loans, and second, to Pool Assets which are included in clause (i) of the preceding sentence and relate to Eligible
Advances related to Conforming Mortgage Loans. 
 “Wet Funding Pool Concentration Excess Amount” means, at
any time, without duplication of the Wet Funding COLB Concentration Excess Amount or the Wet Funding Loan Concentration Excess Amount, the amount by which (i) the aggregate Outstanding Balance of all Pool Assets due or purchased from all
Designated CNB Customers, the Mortgage Loans with respect to which are Wet Funding Loans, exceeds (ii) the Wet Funding Pool Concentration Limit. For the purpose of calculating the Total Net Eligible Assets, the Net Conforming Pool Balance and
the Net Non-Conforming Pool Balance, the Wet Funding Pool Concentration Excess Amount shall be allocated first, to Pool Assets which are included in clause (i) of the preceding sentence and relate to Eligible Advances related to
Non-Conforming Mortgage Loans, second, to Pool Assets 

  

 5 

 
which are included in clause (i) of the preceding sentence and relate to Eligible Advances related to Conforming Mortgage Loans, third, to Pool
Assets which are included in clause (i) of the preceding sentence and relate to Eligible COLB Mortgage Loans related to Non-Conforming Mortgage Loans, and fourth, to Pool Assets which are included in clause (i) of the preceding
sentence and relate to Eligible COLB Mortgage Loans related to Conforming Mortgage Loans. 
 (b) Section 1.01 of the Purchase Agreement
is amended to delete the phrase “CAFCO, CHARTA and CRC” in the definition of “Alternate Base Rate” therein and to substitute therefor “CAFCO, CIESCO, CHARTA and CRC”. 
 (c) Section 1.01 of the Purchase Agreement is amended to delete the definition of “AOT Concentration Excess Amount” therein in its
entirety, and to substitute therefor the following: 
 “AOT Concentration Excess Amount” means, at any time,
the aggregate, for all interests in AOT Mortgage Pools and AOT Securities, of the amount by which (i) the aggregate Outstanding Balance of all Eligible Assets constituting interests in AOT Mortgage Pools and AOT Securities purchased from any
Designated CNB Customer, exceeds (ii) the AOT Concentration Limit for such Designated CNB Customer. For the purpose of calculating the Total Net Eligible Assets, the Net Conforming Pool Balance and the Net Non-Conforming Pool Balance, the AOT
Concentration Excess Amount shall be allocated first, to Pool Assets which are included in clause (i) of the preceding sentence and relate to Non-Conforming Mortgage Loans, and second, to Pool Assets which are included in clause
(i) of the preceding sentence and relate to Conforming Mortgage Loans. 
 (d) Section 1.01 of the Purchase Agreement is amended to
delete the definition of “Bailee Concentration Excess Amount” therein in its entirety, and to substitute therefor the following: 
 “Bailee Concentration Excess Amount” means, at any time, the aggregate, for all Investors, of the amount by which (i) the aggregate Outstanding Balance of all Eligible Assets, the Mortgage Files
with respect to which are held by an Investor as permitted pursuant to Section 6.09 (excluding Pool Assets in connection with Indirect Syndicated Mortgage Loans), exceeds (ii) the Bailee Concentration Limit for such Investor. For
the purpose of calculating the Total Net Eligible Assets, the Net Conforming Pool Balance and the Net Non-Conforming Pool Balance, the Bailee Concentration Excess Amount shall be allocated first, to Pool Assets which are included in clause
(i) of the preceding sentence and relate to Eligible AOT Mortgage Pools or Eligible AOT Securities related to Non-Conforming Mortgage Loans, second, to Pool Assets which are included in clause (i) of the preceding sentence and
relate to Eligible AOT Mortgage Pools or Eligible AOT Securities related to Conforming Mortgage Loans, third, to Pool Assets which are included in clause (i) of the preceding sentence and relate to Eligible COLB Mortgage Loans related to
Non-Conforming Mortgage Loans, fourth, to Pool Assets which are included in clause (i) of the preceding sentence and relate to Eligible COLB Mortgage Loans related to Conforming Mortgage Loans, fifth, to Pool 

  

 6 

 
Assets which are included in clause (i) of the preceding sentence and relate to Eligible Advances related to Non-Conforming Mortgage Loans, and
sixth, to Pool Assets which are included in clause (i) of the preceding sentence and relate to Eligible Advances related to Conforming Mortgage Loans. 
 (e) Section 1.01 of the Purchase Agreement is amended to delete the definition of “COLB Concentration Excess Amount” therein in its entirety, and to substitute therefor the following: 
 “COLB Concentration Excess Amount” means, at any time, the aggregate, for all interests in COLB Mortgage Loans, of the
amount by which (i) the Outstanding Balance of all Eligible Assets constituting interests in COLB Mortgage Loans purchased from any Designated CNB Customer exceeds (ii) the COLB Concentration Limit for such Designated CNB Customer. For the
purpose of calculating the Total Net Eligible Assets, the Net Conforming Pool Balance and the Net Non-Conforming Pool Balance, the COLB Concentration Excess Amount shall be allocated first, to Pool Assets which are included in clause
(i) of the preceding sentence and relate to Eligible COLB Mortgage Loans related to Non-Conforming Mortgage Loans, and second, to Pool Assets which are included in clause (i) of the preceding sentence and relate to Eligible COLB
Mortgage Loans related to Conforming Mortgage Loans. 
 (f) Section 1.01 of the Purchase Agreement is amended to delete the definition
of “Conduit Purchaser” therein in its entirety, and to substitute therefor the following: 
 “Conduit
Purchaser” means CAFCO, CIESCO, CHARTA, CRC and all other owners by assignment or otherwise of an Asset Interest originally made by CAFCO, CIESCO, CHARTA or CRC, and, to the extent of the undivided interests so purchased, shall include any
participants. 
 (g) Section 1.01 of the Purchase Agreement is amended to delete the phrase “CAFCO, CHARTA or CRC” in clause
(a) of the definition of “CP Rate” therein and to substitute therefor “CAFCO, CIESCO, CHARTA or CRC”. 
 (h)
Section 1.01 of the Purchase Agreement is amended to delete the definition of “Direct CNB Customer Concentration Excess Amount” therein in its entirety, and to substitute therefor the following: 
 “Direct CNB Customer Concentration Excess Amount” means, at any time, the aggregate, for all Designated CNB Customers, of
the amount by which (i) the Outstanding Balance of Eligible Advances made to a Designated CNB Customer exceeds (ii) the Direct CNB Customer Concentration Limit for such Designated CNB Customer. For the purpose of calculating the Total Net
Eligible Assets, the Net Conforming Pool Balance and the Net Non-Conforming Pool Balance, the Direct CNB Customer Concentration Excess Amount shall be allocated first, to Advances which are included in clause (i) of the preceding
sentence and relate to Non-Conforming Mortgage Loans, and second, to Advances which are included in clause (i) of the preceding sentence and relate to Conforming Mortgage Loans. 
  

 7 

 (i) Section 1.01 of the Purchase Agreement is amended to delete the phrase “CAFCO, CHARTA and
CRC” in clause (a) of the definition of “Eligible Assignee” therein and to substitute therefor “CAFCO, CIESCO, CHARTA and CRC”. 
 (j) Section 1.01 of the Purchase Agreement is amended to delete the figure “$1,500,000,000” in the definition of “Facility Amount” therein and to substitute therefor
“$2,000,000,000”. 
 (k) Section 1.01 of the Purchase Agreement is amended to delete the definition of “Financial
Officer” in its entirety, and to substitute therefor: 
 “Financial Officer” means, with respect to any
Person, the chairman, president, chief financial officer, chief accounting officer, treasurer or controller of such Person. 
 (l)
Section 1.01 of the Purchase Agreement is amended to delete the phrase “CAFCO, CHARTA and CRC” in clause (a) of the definition of “Group Agent” therein and to substitute therefor “CAFCO, CIESCO, CHARTA and
CRC”. 
 (m) Section 1.01 of the Purchase Agreement is amended to delete the definition of “Net Conforming Pool Balance”
therein in its entirety, and to substitute therefor the following: 
 “Net Conforming Pool Balance” means at
any time an amount equal to the sum of (i) the Net Eligible Conforming Loan Balance, (ii) the Net Eligible Conforming COLB Balance, and (iii) the Net Eligible Conforming AOT Balance at such time. 
 (n) Section 1.01 of the Purchase Agreement is amended to delete the definition of “Net Non-Conforming Pool Balance” therein in its
entirety, and to substitute therefor the following: 
 “Net Non-Conforming Pool Balance” means at any time an
amount equal to the sum of (i) the Net Eligible Non-Conforming Loan Balance, (ii) the Net Eligible Non-Conforming COLB Balance, and (iii) the Net Eligible Non-Conforming AOT Balance at such time. 
 (o) Section 1.01 of the Purchase Agreement is amended to delete the definition of “Non-Conforming Concentration Excess Amount” therein in
its entirety, and to substitute therefor the following: 
 “Non-Conforming Concentration Excess Amount”
means, at any time, the amount by which (i) the aggregate Outstanding Balance of all Eligible Assets, the Mortgage Loans with respect to which are Non-Conforming Mortgage Loans, exceeds (ii) the Non-Conforming Concentration Limit. For the
purpose of calculating the Total Net Eligible Assets and the Net Non-Conforming Pool Balance, the Non-Conforming Concentration Excess Amount shall be allocated first, to Pool Assets which are included in clause (i) of the preceding
sentence and relate to Eligible AOT Mortgage Pools or Eligible AOT Securities related to Non-Conforming Mortgage Loans, second to Pool 

  

 8 

 
Assets which are included in clause (i) of the preceding sentence and relate to Eligible COLB Mortgage Loans related to Non-Conforming Mortgage Loans,
and third to Pool Assets which are included in clause (i) of the preceding sentence and relate to Eligible Advances related to Non-Conforming Mortgage Loans. 
 (p) Section 1.01 of the Purchase Agreement is amended to delete the definition of “Purchase Limit” therein in its entirety, and to substitute therefor the following: 
 “Purchase Limit” means (a) with respect to the Group consisting of CAFCO, CIESCO, CHARTA, CRC and their Related
Committed Purchasers, $2,000,000,000, and (b) with respect to any other Group, the amount designated as the Purchase Limit in such Group’s Assignment and Acceptance. Any reduction (or termination) of the Facility Amount pursuant to the
terms of this Agreement shall reduce ratably (or terminate) each Group’s Purchase Limit. 
 (q) Section 1.01 of the Purchase
Agreement is amended to delete the phrase “CAFCO, CHARTA and CRC” in the definition of “Related Committed Purchaser” therein and to substitute therefor “CAFCO, CIESCO, CHARTA and CRC”. 
 (r) Section 1.01 of the Purchase Agreement is amended to delete the definition of “Wet Funding Concentration Excess Amount” therein in its
entirety, and to substitute therefor the following: 
 “Wet Funding Concentration Excess Amount” means, at
any time, without duplication, the sum of (a) the Wet Funding Loan Concentration Excess Amount at such time, (b) the Wet Funding COLB Concentration Excess Amount at such time, and (c) the Wet Funding Pool Concentration Excess Amount
at such time. 
 (s) Section 1.01 of the Purchase Agreement is amended to delete the definition of “Wet Funding Concentration
Limit” therein in its entirety, 
 (t) Section 2.04(b) of the Purchase Agreement is hereby deleted in its entirety, and the
following is substituted therefor: 
 (b) Collections. On each day on which Interest Collections or Principal
Collections are received (or deemed received) by the Seller or the Servicer, the Seller or the Servicer, as applicable, shall allocate such Collections in the following manner: 
 (i) first, out of such Interest Collections, ratably, pay (1) to the Servicer, the amount of any Servicer Fee accrued and
unpaid through such day, and (2) to the Facility Custodian, the amount of any Custodian Fee accrued and unpaid through such day; 
 (ii) second, set aside and hold in trust for the benefit of the Agents and the Purchasers, (A) out of such Interest Collections, an amount equal to the product of (x) the Purchasers’ Interest
Collection Percentage on such day multiplied by (y) the amount of such Interest Collections on such day, and (B) out of such Principal 

  

 9 

 
Collections, an amount equal to the product of (x) the aggregate of the Asset Interests, expressed as a percentage multiplied by (y) the
amount of such Principal Collections on such day, in each case which amounts shall be applied in accordance with Section 2.04(c) or (d) below, as applicable; and 
 (ii) third, pay the balance of such Interest Collections or Principal Collections to the Seller for application in accordance with
Section 2.04(j) below. 
 Prior to the occurrence of a Collection Trigger Event, the Servicer shall not be
required to deposit Principal Collections into the Program Agent’s Account and shall be permitted to disburse Principal Collections pursuant to subsections (c) and (d) below in accordance with the terms of this
Agreement. From and after the occurrence of a Collection Trigger Event, on each Business Day, prior to 11:00 a.m. (New York City time), the Seller shall, or shall cause the Servicer to, remit all Principal Collections received (or deemed received)
on or before the immediately preceding Business Day to the Program Agent’s Account and the Program Agent shall make the allocations set forth in clauses (i), (ii) and (iii) above. 
 (u) Section 2.04(j) of the Purchase Agreement is hereby deleted in its entirety, and the following is substituted therefor: 
 (j) Seller Disbursements. Any Collections remitted to the Seller shall be applied by the Servicer, on behalf of the Seller:

 (i) first, to pay to the Servicer any accrued and unpaid Supplemental Servicer Fees; 
 (ii) second, if so requested by the Seller, to pay (or set aside for the payment of) Asset Interests; provided, that
(x) the Servicer shall give written notice to each Group Agent of any such payment at least two Business Days’ prior to the date thereof in the case of any such payment of no more than $200,000,000, and five Business Days’ prior to
the date thereof in the case of any such payment in excess of $200,000,000, (y) each such payment shall be in a minimum amount of $10,000,000 and in increments of $1,000,000 in excess thereof, and (z) each such payment shall be made
ratably among the Groups based on the aggregate outstanding Capital of Asset Interests held by each; and 
 (iii)
third, in such other manner as the Seller may specify and that is not prohibited by the terms of the Facility Documents. 
 (v)
Section 2.05(a) of the Purchase Agreement is hereby deleted in its entirety, and the following is substituted therefor: 
 (a) From the date of this Agreement until the later of the last Termination Date for all Asset Interests or the date on which the Facility Capital is reduced to zero, the Seller shall pay to the Servicer a fee (the “Servicer
Fee”), payable in arrears on each Monthly Settlement Date in accordance with Section 2.04(f)(ii), equal to 

  

 10 

 
the Servicer Fee Rate multiplied by the sum of (x) the average daily amount of aggregate Capital of all Asset Interests during the immediately preceding
Month plus (y) the average daily amount of the Loss Reserve during such Month. The Servicer Fee shall be payable only from Interest Collections pursuant to, and subject to the priority of payments set forth in, Section 2.04.
In addition, from the date of this Agreement until the later of the last Termination Date for all Asset Interests or the date on which the Facility Capital is reduced to zero, the Seller shall pay to the Servicer a supplemental fee (the
“Supplemental Servicer Fee”), payable in arrears on each Monthly Settlement Date in accordance with Section 2.04(j), equal to the excess of (A) the Servicer Fee Rate multiplied by the average daily Outstanding
Balance of the Pool Assets during the immediately preceding Month over (B) the Servicer Fee for such Month. From and after the replacement of Colonial Bank as Servicer hereunder, the Program Agent may negotiate such other fees to be paid
to such successor Servicer, but in no event in excess of 110% of the reasonable costs and expenses of the Servicer in administering and collecting the Pool Assets. 
 (w) Section 4.01(t) of the Purchase Agreement is amended to delete the figure “$300,000,000” therein and to substitute therefor “$600,000,000”. 
 (x) Section 4.02(h) of the Purchase Agreement is amended to delete the figure “$300,000,000” therein and to substitute therefor
“$600,000,000”. 
 (y) The Purchase Agreement is hereby amended to delete Annex H thereto in its entirety, and to substitute
therefor the Annex H attached hereto as Exhibit 1. 
 (z) The Purchase Agreement is hereby amended to delete Annex I thereto in its
entirety, and to substitute therefor the Annex I attached hereto as Exhibit 2. 
 SECTION 2. Addition of CIESCO, LLC as a Conduit
Purchaser. Effective upon the Effective Date, CIESCO shall be and become a Conduit Purchaser under the Purchase Agreement, shall join in and be a party to the Purchase Agreement and have the rights and obligations of a Conduit Purchaser
thereunder, and shall be a member of the same Group as to which CAFCO, CHARTA and CRC are members. By its execution of this Amendment, CIESCO (i) confirms that it has received a copy of the Purchase Agreement and such other documents and
information requested by it, and that it has, independently and without reliance upon any Group Agent, the Program Agent or any Purchaser, and based on such documentation and information as it has deemed appropriate, made its own decision to enter
into this Amendment; (ii) agrees that it shall, independently and without reliance on any Group Agent, the Program Agent or any Purchaser, and based on such documents and information as it shall deem appropriate at the time, continue to make
its own credit decisions in taking or not taking action under the Purchase Agreement; (iii) appoints and authorizes the Program Agent to take such action on its behalf and to exercise such powers and discretion under the Purchase Agreement as
are delegated to the Program Agent by the terms thereof, together with such powers and discretion as are reasonably incidental thereto; (iv) agrees that it shall perform in accordance with their terms all of the obligations that by the terms of
the Purchase Agreement are required to be performed by it as a Conduit Purchaser; (v) specifies as its notice address, for purposes of Section 11.02 of the Purchase Agreement, the office set forth beneath its name on the signature 

  

 11 

 
pages of this Amendment; and (vi) appoints and authorizes CNAI as its Group Agent to take such action as agent on its behalf and to exercise such powers
under the Purchase Agreement as are delegated to the Group Agents by the terms thereof. 
 SECTION 3. Conditions Precedent. This
Amendment shall become effective and be deemed effective as of the date hereof (the “Effective Date”) when, and only when, each of the following conditions precedent shall be satisfied: 
 (a) the Program Agent shall have received (i) five (5) counterparts of this Amendment executed by each of the parties hereto, and
(ii) five (5) counterparts of an amendment to the Asset Purchase Agreement to which Colonial is a party, in form and substance acceptable to the Program Agent; 
 (b) the Program Agent shall have received a certificate of the secretary or assistant secretary of each of the Seller, the Originator and the Servicer certifying (i) and attaching true and correct copies of the
Charter Documents, together with the certification with respect to any certificate of incorporation or formation by the secretary of state of the jurisdiction of organization of such Person, (ii) the names and true signatures of their
respective officers authorized to sign this Amendment, and (iii) and attaching copies of the resolutions (or similar authorization, if not a corporation) of such Person’s board of directors (or similar governing body or Persons, if not a
corporation) approving this Amendment and the Purchase Agreement as amended hereby and certified copies of all documents evidencing other necessary corporate or limited liability company, as the case may be, action and governmental approvals, if
any, with respect to this Amendment and the Purchase Agreement as amended hereby; 
 (c) the Program Agent shall have received an opinion of
counsel to the Seller and Colonial Bank in form and substance acceptable to the Program Agent and its counsel; 
 (d) each of the
representations and warranties made by the Seller and Colonial Bank in Section 4 below are true and correct; 
 (e) no event or
circumstance shall have occurred which, in the judgment of the Program Agent, could have a material adverse effect on financial markets generally or on the financial conditions or operations of the Seller or Colonial Bank; and 
 (f) no Event of Termination or Incipient Event of Termination shall have occurred and be continuing. 
 SECTION 4. Covenants, Representations and Warranties of the Seller and Colonial Bank. 
 (a) Upon the effectiveness of this Amendment, the Seller and Colonial Bank each hereby (i) represents and warrants that all of its respective
representations and warranties set forth in the Purchase Agreement (as amended hereby) and each other Transaction Document to which it is a party are true and correct as if made on the Effective Date, except to the extent that such representations
and warranties expressly speak only as of a different date, and (ii) reaffirms all covenants made by it in the Purchase Agreement and each of the other Transaction 

  

 12 

 
Documents to which it is a party and agrees that all such covenants shall be deemed to have been re-made as of the Effective Date. 
 (b) Each of the Seller and Colonial Bank hereby represents and warrants, as to itself, that (i) the execution, delivery and performance of this
Amendment are within its company power and have been duly authorized by all necessary action on its part to be taken, (ii) this Amendment has been duly executed and delivered by it, and (iii) this Amendment and the Purchase Agreement as
amended hereby each constitutes the legal, valid and binding obligations of it, and are enforceable against it in accordance with their respective terms. 
 (c) Each of the Seller and Colonial Bank hereby represents and warrants that, both before and immediately after giving effect to this Amendment, no Event of Termination or Incipient Event of Termination shall exist.

 SECTION 5. Reference to and Effect on the Purchase Agreement. 
 (a) Upon the effectiveness of this Amendment, each reference in the Purchase Agreement to “this Agreement”, “hereunder”,
“hereof”, “herein”, or words of like import shall mean and be a reference to the Purchase Agreement as amended hereby, and each reference to the Purchase Agreement in any other document, instrument or agreement executed and/or
delivered in connection with the Purchase Agreement shall mean and be a reference to the Purchase Agreement as amended hereby. 
 (b) The
Purchase Agreement and all other documents, instruments and agreements executed and/or delivered in connection therewith shall remain in full force and effect, as amended hereby, and are hereby ratified and confirmed, as so amended. 
 (c) The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of any of the Investors or
the Program Agent under the Purchase Agreement or any other document, instrument or agreement executed in connection therewith, nor constitute a waiver of any provision contained therein. 
 SECTION 6. Execution in Counterparts; Headings. This Amendment may be executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which taken together shall constitute but one and the same instrument. Delivery of an executed counterpart of a signature page to this
Amendment by telecopier shall be effective as delivery of a manually executed counterpart of this Amendment. Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment
for any other purpose. 
 SECTION 7. GOVERNING LAW. THE VALIDITY, INTERPRETATION AND ENFORCEMENT OF THIS AMENDMENT AND ANY DISPUTE
ARISING OUT OF OR IN CONNECTION WITH THIS AMENDMENT WHETHER SOUNDING IN CONTRACT, TORT, EQUITY OR OTHERWISE, SHALL BE GOVERNED BY THE INTERNAL LAWS (AS OPPOSED TO THE CONFLICTS OF LAWS PROVISIONS OTHER THAN THOSE CONTAINED IN NEW YORK GENERAL
OBLIGATIONS LAW SECTION 5-1401) AND DECISIONS OF THE STATE OF NEW YORK. 
  

 13 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 3 to be executed by their
respective officers thereunto duly authorized as of the date first above written. 
  

											
	SELLER:	 		 	MWL FUNDING, INC.
					
		 		 		 	 By:
	 	  
		 		 		 		 	Name:	 	
		 		 		 		 	Title:	 	
			
	 ORIGINATOR, SERVICER AND
 FACILITY
CUSTODIAN:
	 		 	COLONIAL BANK, N.A.
					
		 		 		 	 By
	 	  
		 		 		 		 	Name:	 	
		 		 		 		 	Title:	 	
			
	CONDUIT PURCHASERS:	 		 	CAFCO, LLC
					
		 		 		 	 By: 
	 	 Citicorp North America, Inc., its Attorney-in-Fact

						
		 		 		 		 	 By:
	 	  
		 		 		 		 		 	Name:
		 		 		 		 		 	Title:
			
		 		 	 CHARTA, LLC

					
		 		 		 	 By: 
	 	 Citicorp North America, Inc., its Attorney-in-Fact

						
		 		 		 		 	 By:
	 	  
		 		 		 		 		 	Name:
		 		 		 		 		 	Title:

 Signature Page to 
 Amendment No. 3 to 
 Warehouse Loan Purchase Agreement 

											
		 		 	 CRC FUNDING, LLC

					
		 		 		 	 By: 
	 	Citicorp North America, Inc., its Attorney-in-Fact
						
		 		 		 		 	 By:
	 	  
		 		 		 		 		 	Name:
		 		 		 		 		 	Title:
			
		 		 	 CIESCO, LLC

					
		 		 		 	 By: 
	 	 Citicorp North America, Inc., its Attorney-in-Fact

						
		 		 		 		 	 By:
	 	  
		 		 		 		 		 	Name:
		 		 		 		 		 	Title:
				
		 		 	Address: 	 	 450 Mamaroneck Avenue
 Harrison, N.Y. 10528
 Attention: Global Securitization
 Facsimile No.:
(914) 899-7890

			
	COMMITTED PURCHASER:	 		 	 CITIBANK, N.A.

					
		 		 		 	 By:
	 	  
		 		 		 		 	 Title:

			
	PROGRAM AGENT AND GROUP AGENT:	 		 	 CITICORP NORTH AMERICA, INC.,
     as Program Agent and Group Agent

					
		 		 		 	 By:
	 	  
		 		 		 		 	 Vice President

 Signature Page to 
 Amendment No. 3 to 
 Warehouse Loan Purchase Agreement 

 Exhibit 1 to 
 Amendment No. 3 to 
 Warehouse Loan Purchase Agreement 
 ANNEX H 
 FORM OF MONTHLY REPORT

 Attached. 
  

 1-1 

 Exhibit 2 to 
 Amendment No. 3 to 
 Warehouse Loan Purchase Agreement 
 ANNEX I 
 FUNDING RATES, REQUIRED
POOL INTEREST RATE, LOSS RESERVES 
 AND CONCENTRATION LIMITS 
 “Funding Rate” means, on any date of determination, with respect to each Pool Asset, the percentage specified for the Underlying
Collateral related to such Pool Asset, as applicable, on such date as set forth below: 
  

			
	 Type of Underlying Collateral
	  	Funding Rate
	 Conforming Mortgage Loans
	  	96.0%
		
	 Non-Conforming Mortgage Loans
	  	92.0%

 ; provided, however, that for purposes of the foregoing, (x) all Agency AOT Mortgage Pools and
all AOT Securities related thereto shall be deemed to be related to Conforming Mortgage Loans and (y) all Private Investor AOT Mortgage Pools and all AOT Securities related thereto shall be deemed to be related to Non-Conforming Mortgage Loans.

 “Required Pool Interest Rate” means, on any date of determination, the one-month Eurodollar Rate on such date plus 1.25%.

 Loss Reserve 
 “Loss
Reserve” means, at any time, an amount equal to the greater of (i) the Calculated Loss Reserve at such time or (ii) the Loss Reserve Floor at such time. 
 where: 
 “Calculated Loss Reserve” means, at any time, the sum of
(i) the NECL Reserve, plus (ii) the NENCL Reserve, plus (iii) the NECC Reserve, plus (iv) the NENCC Reserve, plus (v) the NECA Reserve, plus (vi) the NENCA Reserve, at such time, added
together in the foregoing order until the Total Net Eligible Assets related to such reserve amounts minus such Calculated Loss Reserve, equals the amount of the Facility Capital at such time. 
  

 2-1 

 “Loss Reserve Floor” means an amount equal to $50,000,000. 

and: 
 “NECA
Reserve” means, at any time, (i) the Net Eligible Conforming AOT Balance multiplied by (ii) one minus the applicable Funding Rate for Conforming Mortgage Loans. 
 “NECC Reserve” means, at any time, (i) the Net Eligible Conforming COLB Balance multiplied by (ii) one
minus the applicable Funding Rate for Conforming Mortgage Loans. 
 “NECL Reserve” means, at any time,
(i) the Net Eligible Conforming Loan Balance multiplied by (ii) one minus the applicable Funding Rate for Conforming Mortgage Loans. 
 “NENCA Reserve” means, at any time, (i) the Net Eligible Non-Conforming AOT Balance multiplied by (ii) one minus the applicable Funding Rate for Non-Conforming Mortgage Loans.

 “NENCC Reserve” means, at any time, (i) the Net Eligible Non-Conforming COLB Balance multiplied by
(ii) one minus the applicable Funding Rate for Non-Conforming Mortgage Loans. 
 “NENCL Reserve”
means, at any time, (i) the Net Eligible Non- Conforming Loan Balance multiplied by (ii) one minus the applicable Funding Rate for Non-Conforming Mortgage Loans. 
 “Total Net Eligible Assets” means, at any time, the sum of (i) the Net Eligible Conforming Loan Balance,
(ii) the Net Eligible Non-Conforming Loan Balance, (iii) the Net Eligible Conforming COLB Balance, (iv) the Net Eligible Non-Conforming COLB Balance, (v) the Net Eligible Conforming AOT Balance, and (vi) the Net Eligible
Non-Conforming AOT Balance, added together in the foregoing order. 
 “Total Allocated Net Eligible Assets”
means, at any time, the sum of (i) the NECL Reserve / (1 - Funding Rate for Conforming Mortgage Loans), plus (ii) the NENCL Reserve / (1 - Funding Rate for Non-Conforming Mortgage Loans), plus (iii) the NECC Reserve / (1
- Funding Rate for Conforming Mortgage Loans), plus (iv) the NENCC Reserve / (1 - Funding Rate for Non-Conforming Mortgage Loans), plus (v) the NECA Reserve / (1 - Funding Rate for Conforming Mortgage Loans), plus
(vi) the NENCA Reserve / (1 - Funding Rate for Non-Conforming Mortgage Loans), at such 

  

 2-2 

 
time, added together in the foregoing order until the sum equals the amount of the Facility Capital plus Loss Reserve at such time. 
 Concentration Limits 
 “Adjusted
Customer COLB Commitment Amount” means, with respect to any Designated CNB Customer at any time, an amount equal to the lesser of (i) the aggregate amount of the Originator’s commitments (or the maximum aggregate amount of the
Originator’s agreements) to purchase interests in Mortgage Loans (or pools of Mortgage Loans) from such Designated CNB Customer under the applicable Loan Participation Sale Agreement at such time, and (ii) the COLB Concentration Limit with
respect to such Designated CNB Customer at such time. 
 “Adjusted Customer Loan Commitment Amount” means, with respect to
any Designated CNB Customer at any time, an amount equal to the lesser of (i) the aggregate amount of the Originator’s commitments (or the maximum aggregate amount of the Originator’s agreements) to make loans to such Designated CNB
Customer under the applicable CNB Customer Loan Agreement at such time, and (ii) the Direct CNB Customer Concentration Limit with respect to such Designated CNB Customer at such time. 
 “AOT Concentration Limit” means, until notice to the contrary from the Program Agent, with respect to any Designated CNB Customer, such
limit as may be approved by the Program Agent in writing, in its sole discretion, from time to time at the request of the Seller, each of which AOT Concentration Limits may be revoked at any time upon notice from the Program Agent to the Seller; it
being understood that the “AOT Concentration Limit” for any Designated CNB Customer for which the Program Agent has not given specific approval in writing shall be $0. 
 “Bailee Concentration Limit” means, until notice to the contrary from the Program Agent, (i) with respect to each of the following
Investors, the amount set forth opposite its name set forth below: 
  

				
	 Washington Mutual Bank, N.A. and Long Beach Mortgage (collectively)
	  	$	750,000,000.00
	 M&T Mortgage Corp
	  	 	750,000,000.00
	 E Trade
	  	 	100,000,000.00
	 Ginnie Mae (GNMA)
	  	 	750,000,000.00
	 Thornburg Mortgage Home Loans, Inc
	  	 	100,000,000.00
	 GMAC and RFC (collectively)
	  	 	750,000,000.00
	 Nomura Credit & Capital Inc.
	  	 	100,000,000.00

 and (ii) with respect to any other Investor, (1) $750,000,000 if such Investor has a long-term senior
unsecured debt rating of at least A by S&P or A2 by Moody’s, (2) $100,000,000 if such 

  

 2-3 

 
Investor does not satisfy the ratings requirements in clause (1) but has a long-term senior unsecured debt rating of at least BBB- by S&P or
Baa3 by Moody’s, and (3) $75,000,000 if such Investor does not satisfy the ratings requirements in either clause (1) or clause (2); provided, that, until notice to the contrary from the Program Agent, special
Bailee Concentration Limits may be approved by the Program Agent in writing, in its sole discretion, for other individual Investors from time to time at the request of the Seller, each of which special Bailee Concentration Limits may be revoked at
any time upon notice from the Program Agent to the Seller. 
 “COLB Concentration Limit” means, until notice to the contrary
from the Program Agent, (i) with respect to each of the following CNB Customers, the amount set forth opposite its name set forth below: 
  

				
	 Allied Mortgage Group, Inc.
	  	$	 50,000,000.00
	 Ame Financial Corporation
	  	 	50,000,000.00
	 Amerifirst Financial Corporation
	  	 	50,000,000.00
	 Amtrust Mortgage Corporation
	  	 	100,000,000.00
	 Bayrock Mortgage Corporation
	  	 	100,000,000.00
	 Citizen’s First Wholesale Mtg. Co.
	  	 	50,000,000.00
	 Charlotte Home Equity, LLC
	  	 	50,000,000.00
	 Cornerstone Home Mtg. Corp. dba Mhi Mtg.
	  	 	50,000,000.00
	 Coastal Mortgage Services, Inc.
	  	 	50,000,000.00
	 Coats & Co., Inc.
	  	 	50,000,000.00
	 Crescent Mortgage Co. f/k/a Crescent Svcs. Corp.
	  	 	50,000,000.00
	 County Trust Mortgage Bankers Corp.
	  	 	50,000,000.00
	 Dell Franklin Financial, LLC
	  	 	50,000,000.00
	 Equity Services, Inc.
	  	 	50,000,000.00
	 Franklin American Mortgage Company
	  	 	500,000,000.00
	 First Choice Mortgage/Equity Corp. of Lexington
	  	 	50,000,000.00
	 Flick Mortgage Investors, Inc.
	  	 	100,000,000.00
	 First Preference Mortgage Company
	  	 	50,000,000.00
	 Home Loan Corporation
	  	 	50,000,000.00
	 Opteum Financial Services, LLC
	  	 	1,000,000,000.00
	 Integrity Home Funding, LLC
	  	 	50,000,000.00
	 Milestone Mortgage Corporation
	  	 	50,000,000.00
	 Myers Park Mortgage
	  	 	50,000,000.00
	 NJ Lenders Corp
	  	 	100,000,000.00
	 Paramount Financial, Inc.
	  	 	50,000,000.00
	 Pinnacle Financial Corporation
	  	 	500,000,000.00
	 Prime Mortgage Financial, Inc.
	  	 	50,000,000.00
	 Realty Mortgage Corporation
	  	 	50,000,000.00
	 Real Estate Mortgage Network, Inc.
	  	 	50,000,000.00
	 Taylor, Bean & Whitaker Mortgage Corp.
	  	 	1,000,000,000.00

 and (ii) with respect to any other Designated CNB Customer, such limit as may be approved by the Program
Agent in writing, in its sole discretion, from time to time at the request of the Seller; 

  

 2-4 

 
each of which COLB Concentration Limits may be revoked at any time upon notice from the Program Agent to the Seller; it being understood that the “COLB
Concentration Limit” for any Designated CNB Customer neither set forth above nor for which the Program Agent has given specific approval in writing shall be $0. 
 “Direct CNB Customer Concentration Limit” means, until notice to the contrary from the Program Agent, (i) an amount equal to the Loss Reserve Floor with respect to any Designated CNB Customer
with a Risk Rating of “3” or “4” established in accordance with the Credit Policy and (ii) an amount equal to 50% of the Loss Reserve Floor with respect to any Designated CNB Customer with a Risk Rating of “5”
established in accordance with the Credit Policy. Notwithstanding the foregoing, until notice to the contrary from the Program Agent, (a) each of AmTrust Mortgage Corporation, Bayrock Mortgage Corporation, Franklin American Mortgage Company,
Inc., Opteum Financial Services LLC, Pinnacle Financial Corporation, Realty Mortgage Corporation and Taylor, Bean & Whitaker Mortgage Corp. shall have a Direct CNB Customer Concentration Limit equal to 150% of the Loss Reserve Floor, so
long as such CNB Customer has a Risk Rating of “3” or “4” established in accordance with the Credit Policy, and (b) additional special Direct CNB Customer Concentration Limits may be approved by the Program Agent in writing,
in its sole discretion, for individual Designated CNB Customers from time to time at the request of the Seller, each of which special Direct CNB Customer Concentration Limits may be revoked at any time upon notice from the Program Agent to the
Seller. 
 “Non-Conforming Concentration Limit” means, at any time, 10% of the Facility Amount at such time. 
 “Wet Funding COLB Concentration Limit” means, with respect to each Designated CNB Customer at any time, an amount equal to 60% of such
Designated CNB Customer’s Adjusted COLB Customer Commitment Amount at such time. 
 “Wet Funding Loan Concentration
Limit” means, with respect to each Designated CNB Customer at any time, an amount equal to 60% of such Designated CNB Customer’s Adjusted Customer Loan Commitment Amount at such time. 
 “Wet Funding Pool Concentration Limit” means, with respect to all Designated CNB Customers at any time, an amount equal to 40% of the
aggregate Outstanding Balance of all Eligible Assets at such time. 
  

 2-5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]