Document:

EX-10.1

Exhibit 10.1

EXECUTION VERSION

AMENDMENT NO. 9

TO SECOND MASTER REPURCHASE AGREEMENT

Amendment No. 9, dated as of April 23, 2007 (this “Amendment”), among CREDIT SUISSE
FIRST BOSTON MORTGAGE CAPITAL LLC (the “Buyer”), FIELDSTONE MORTGAGE COMPANY (a
“Seller”) and FIELDSTONE INVESTMENT CORPORATION (a “Seller” and, together with
Fieldstone Mortgage Company, the “Sellers”).

RECITALS

The Buyer and the Sellers are parties to that certain Second Amended and Restated Master
Repurchase Agreement, dated as of March 31, 2005, as amended by that certain Amendment No. 1, dated
as of October 21, 2005, Amendment No. 2, dated as of February 22, 2006, Amendment No. 3, dated as
of April 27, 2006, Amendment No. 4, dated as of November 30, 2006, Amendment No. 5, dated as of
December 20, 2006, Amendment No. 6, dated as of December 29, 2006, Amendment No. 7, dated as of
January 31, 2007, and Amendment No. 8, dated as of March 30, 2007 (as the same may have been
amended and supplemented from time to time, the “Existing Repurchase Agreement” and as
amended by this Amendment, the “Repurchase Agreement”). Capitalized terms used but not
otherwise defined herein shall have the meanings given to them in the Existing Repurchase
Agreement.

The Buyer and the Sellers have agreed, subject to the terms and conditions of this Amendment,
that the Existing Repurchase Agreement be amended to reflect certain agreed upon revisions to the
terms of the Existing Repurchase Agreement.

Accordingly, the Buyer and the Sellers hereby agree, in consideration of the mutual premises
and mutual obligations set forth herein, that the Existing Repurchase Agreement is hereby amended
as follows:

SECTION 1. Change in Control Waiver. In connection with that certain Merger
Agreement, dated as of February 15, 2007, (as amended, the “Merger Agreement”) among
Credit-Based Asset Servicing and Securitization LLC (“C-BASS”), Rock Acquisition Corp. and
Fieldstone Investment Corporation, the Buyer hereby waives any Event of Default that would occur
solely as a result of a Change in Control in connection therewith and any subsequent corporate
reorganization of the Sellers such that each of the Sellers would become a direct, wholly-owned
subsidiary of C-BASS.

SECTION 2. Maximum Available Amount. Notwithstanding anything to the contrary
contained in the Repurchase Agreement, the Buyer and the Sellers agree that the Buyer shall not be
committed to enter into Transactions which exceed the Maximum Available Amount.

SECTION 3. Definitions. Section 2 of the Repurchase Agreement is hereby amended by:

3.1 deleting the definitions of High Purchase Price Mortgage Loan, Medium Purchase Price
Mortgage Loan and Low Purchase Price Mortgage Loan in their entirety.

3.2 adding the following defined terms in their proper alphabetical order:

“Available Borrowing Capacity” means available and unused borrowing capacity which may
be drawn upon by a Seller on a next Business Day basis. Borrowing capacity shall not be deemed
part of the Available Borrowing Capacity if any event or circumstance has occurred which would
prevent a Seller from drawing on the borrowing capacity or cause the related lender to have no
obligation to make funds available.

“Maximum Available Amount” means the Maximum Aggregate Purchase Price minus the sum of
(a) aggregate outstanding Purchase Price of all Purchased Mortgage Loans hereunder and (b) the
aggregate outstanding purchase price of all purchased mortgage loans allocated to the Credit Suisse
Buying Group under that certain Amended and Restated Repurchase Agreement, dated as of November 14,
2006 among Credit Suisse, New York Brach, the conduit buyers and committed buyers party thereto
from time to time and the Sellers (as amended).

3.3 deleting the definitions of “Market Value”, “Maximum Aggregate Purchase
Price”, “Par Percentage”, “Pricing Rate”, “Purchase Price”,
“Purchase Price Percentage” and “Termination Date” in their entirety and replacing
the same with the following:

“Market Value” means, with respect to any Purchased Mortgage Loan as of any date, 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, each Seller acknowledges that the Market Value of a Purchased Mortgage
Loan may be reduced to zero by Buyer if:

(i) a material breach of a representation, warranty or covenant made by
any Seller in this Agreement with respect to such Purchased Mortgage Loan
has occurred and is continuing except, with respect to Repurchased Mortgage
Loans, those disclosed by such Seller and accepted by the Buyer pursuant to
clause (b) of the definition of Repurchased Mortgage Loan;

(ii) a First Payment Default occurs with respect to such Purchased
Mortgage Loan;

(iii) such 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 ten
(10) calendar days;

(iv) such 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;

(v) such Purchased Mortgage Loan has been subject to a Transaction for
a period of greater than (a) 90 days (unless the Mortgage Loan is an Aged
Loan or Repurchased Mortgage Loan) or (b) 120 days with respect to each Aged
90 Day Loan or Repurchased Mortgage Loan or (c) 180 days with respect to
each Aged 120 Day Loan or (c) 364 days with respect to each Aged 180 Day
Loan;

(vi) such Purchased Mortgage Loan is a Wet-Ink Mortgage Loan for which
the Wet-Ink Mortgage File has not been delivered to the Custodian on or
prior to the eighth Business Day after the related Purchase Date;

(vii) such Purchased Mortgage Loan is a Portfolio Second Lien Mortgage
Loan that is subject to a new Transaction on and after April 20, 2007;

(viii) 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 (i) 40% of
the Maximum Aggregate Purchase Price for the first five Business Days and
the last five Business Days of each month or (ii) 30% of the Maximum
Aggregate Purchase Price for the remainder of the month;

(ix) when added to other Purchased Mortgage Loans, the aggregate
Purchase Price of all Sub-Prime Mortgage Loans that are Purchased Mortgage
Loans exceeds $280 million dollars;

(x) when added to other Purchased Mortgage Loans, the aggregate
Purchase Price of all Second Lien Mortgage Loans and HELOCs that are
Purchased Mortgage Loans (other than Portfolio Second Lien Mortgage Loans)
exceeds $60 million dollars;

(xi) when added to other Purchased Mortgage Loans, the aggregate
Purchase Price of all Aged 90 Day Loans and Aged 120 Day Loans, combined,
that are Purchased Mortgage Loans exceeds $200 million dollars;

(xii) when added to other Purchased Mortgage Loans, the aggregate
Purchase Price of all Negative Amortizations Loans exceeds $4 million;

(xiii) when added to other Purchased Mortgage Loans, the aggregate
Purchase Price of all Portfolio Second Lien Mortgage Loans exceeds $150
million (the “Portfolio Second Lien Mortgage Loan Sublimit”);

(xiv) when added to other Purchased Mortgage Loans, the aggregate
Purchase Price of all Portfolio Second Lien Mortgage Loans that are
Delinquent Mortgage Loans exceeds 15% of the Portfolio Second Lien Mortgage
Loan Sublimit;

(xv) when added to other Purchased Mortgage Loans, the aggregate
Purchase Price of all Delinquent Mortgage Loans (other than Portfolio Second
Lien Mortgage Loans and including Delinquent Mortgage Loans which may be
Repurchased Mortgage Loans) exceeds $20 million;

(xvi) when added to other Purchased Mortgage Loans, the aggregate
Purchase Price of all Non-Performing Mortgage Loans (including
Non-Performing Mortgage Loans which may be Repurchased Mortgage Loans)
exceeds $15 million;

(xvii) when added to other Purchased Mortgage Loans, the aggregate
Purchase Price of all Aged 180 Day Loans, Repurchased Mortgage Loans,
Reperforming Mortgage Loans, Delinquent Mortgage Loans and Non-Performing
Mortgage Loans, combined, exceeds $35 million;

(xviii) such Purchased Mortgage Loan is no longer acceptable for
purchase by Buyer (or an Affiliate thereof) under any of the flow purchase
or conduit programs for which Sellers then have been approved due to a
Requirement of Law relating to consumer credit laws or otherwise.”

“Maximum Aggregate Purchase Price” means FOUR HUNDRED MILLION DOLLARS ($400,000,000).

“Par Percentage” means:

(i) 98%, with respect to Transactions the subject of which are Mortgage Loans
(other than Portfolio Second Lien Mortgage Loans, Aged 180 Day Loans, Repurchased
Mortgage Loans, Reperforming Mortgage Loans, Delinquent Mortgage Loans and
Non-Performing Mortgage Loans);

(ii) 90%, with respect to Transactions the subject of which are Mortgage Loans
that are Portfolio Second Lien Mortgage Loans, Aged 180 Day Loans, Repurchased
Mortgage Loans or Reperforming Mortgage Loans (other than Delinquent Mortgage Loans
or Non-Performing Mortgage Loans);

(iii) 85%, with respect to Transactions the subject of which are Mortgage Loans
that are Delinquent Mortgage Loans;

(iv) 70% with respect to Transactions the subject of which are Mortgage Loans
that are Non-Performing Mortgage Loans;

“Pricing Rate” means LIBOR plus:

(i) 0.60% with respect to Transactions the subject of which are Mortgage Loans
other than Portfolio Second Lien Mortgage Loans, Repurchased Mortgage Loans, Aged
120 Day Loans, Aged 180 Day Loans, Reperforming Mortgage Loans, Delinquent Mortgage
Loans, Non-Performing Mortgage Loans and Wet-Ink Mortgage Loans;

(ii) 0.65% with respect to Transactions the subject of which are Aged 120 Day
Loans (other than Repurchased Mortgage Loans, Delinquent Mortgage Loans or
Non-Performing Mortgage Loans);

(iii) 0.70% with respect to Transactions the subject of which are Aged 180 Day
Loans (other than Repurchased Mortgage Loans, Delinquent Mortgage Loans or
Non-Performing Mortgage Loans);

(iv) 0.75% with respect to Transactions the subject of which are Wet-Ink
Mortgage Loans (other than Repurchased Mortgage Loans, Delinquent Mortgage Loans or
Non-Performing Mortgage Loans);

(v) 0.90% with respect to Transactions the subject of which are Repurchased
Mortgage Loans or Reperforming Mortgage Loans (other than Delinquent Mortgage Loans
or Non-Performing Mortgage Loans);

(vi) 0.95% with respect to Transactions the subject of which are Portfolio
Second Lien Mortgage Loans or Delinquent Mortgage Loans (other than Non-Performing
Mortgage Loans);

(vii) 1.00% with respect to Transactions the subject of which are
Non-Performing Mortgage Loans; and

“Purchase Price Percentage” means:

(i) 97% with respect to Purchased Mortgage Loans that are first lien Conforming
Mortgage Loans, Jumbo Mortgage Loans or Alt A Mortgage Loans (other than Repurchased
Mortgage Loans, Delinquent Mortgage Loans or Non-Performing Mortgage Loans);

(ii) 96% with respect to Purchased Mortgage Loans that are Sub-Prime Mortgage
Loans (other than Repurchased Mortgage Loans, Delinquent Mortgage Loans or
Non-Performing Mortgage Loans);

(iii) 93% with respect to Purchased Mortgage Loans that are Second Lien
Mortgage Loans or HELOCs (other than Portfolio Second Lien Mortgage Loans,
Repurchased Mortgage Loans, Delinquent Mortgage Loans or Non-Performing Mortgage
Loans);

(iv) 90% with respect to Purchased Mortgage Loans that are Portfolio Second
Lien Mortgage Loans, Aged 180 Day Loans, Repurchased Mortgage Loans or Reperforming
Mortgage Loans (other than Delinquent Mortgage Loans or Non-Performing Mortgage
Loans);

(v) 85% with respect to Purchased Mortgage Loans that are Delinquent Mortgage
Loans (other than Non-Performing Mortgage Loans);

(vi) 70% with respect to Purchased Mortgage Loans that are Non-Performing
Mortgage Loans; and

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

“Termination Date” means the earlier of (a) June 30, 2007, in the event that certain
merger is not completed by such date pursuant to the terms and conditions of the Merger Agreement;
(b) September 30, 2007 and (c) the date of the occurrence of an Event of Default.

SECTION 4. Covenants. Section 14 of the Existing Repurchase Agreement is hereby
amended by adding the following clause (hh) thereto with the following:

“(hh) Available Borrowing Capacity. The Sellers shall maintain Available Borrowing
capacity such that the Maximum Aggregate Purchase Price does not represent more than 50% of
Seller’s Available Borrowing Capacity.”

SECTION 5. Events of Default. Section 15(f) of the Existing Repurchase Agreement is
hereby amended by adding “14(hh)” thereto.

SECTION 6. Conditions Precedent. This Amendment shall become effective on the date
hereof (the “Amendment Effective Dates”), subject to the satisfaction of the following
conditions precedent:

6.1 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 a duly authorized officer of the Buyer
and Sellers;

(b) such other documents as the Buyer or counsel to the Buyer may reasonably request.

SECTION 7. Representations and Warranties. Each of the Sellers hereby represents and
warrants to the Buyer that they are in compliance with all the terms and provisions set forth in
the Repurchase Agreement on their part to be observed or performed, and that no Event of Default
has occurred or is continuing, and hereby confirm and reaffirm the representations and warranties
contained in Section 13 of the Existing Repurchase Agreement.

SECTION 8. Limited Effect. Except as expressly amended and modified by this
Amendment, the Repurchase Agreement shall continue to be, and shall remain, in full force and
effect in accordance with its terms. Other than as expressly set forth herein, the execution of
this Amendment by the Buyer shall not operate as a waiver of any of its rights, powers or
privileges under the Repurchase Agreement or any other Program Agreement, including without
limitation, any rights, powers or privileges relating to other existing or future breaches of, or
Defaults or Events of Default under, the Repurchase Agreement or any other Program Agreement
(whether the same or of a similar nature as the breaches identified herein or otherwise) except as
expressly set forth herein.

SECTION 9. 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 10. 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]

1

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/ B. Kaiserman

Name: Bruce S. Kaiserman

Title: Vice President

Seller: FIELDSTONE MORTGAGE COMPANY, as Seller

By: /s/ Mark C. Krebs

Name: Mark C. Krebs

Title: Sr. Vice President & Treasurer

Seller: FIELDSTONE INVESTMENT CORPORATION, as Seller

By: /s/ Mark C. Krebs

Name: Mark C. Krebs

Title: Sr. Vice President & Treasurer

2EX-10.1

Exhibit 10.1

Form of fiscal year 2008 Management Incentive Plan award.

	 	 	 	 	 	 	 
	 

TO:

 

FROM:

 

DATE:

 

SUBJECT:

 

	 	                   

[Employee Name]

 

 

 

[Date]

 

Fiscal 2008 Management Incentive Bonus Plan

 
	 	

                            
	 	

                        

PERSONAL AND CONFIDENTIAL

This memorandum will serve as your formal Management Incentive Bonus Plan (the “Plan”) document for
SMSC’s (the “Company’s” or “Company”) fiscal year 2008 ending February 29, 2008. Your total
“At-Plan” annual incentive bonus target is [Dollar Amount or Percentage of Salary]. There are four
components to your Plan:

	 	1.	 	Quarterly incentives based on the Company attaining its year-to-date revenue
goals.

	 	2.	 	Quarterly incentives based on the Company attaining its year-to-date non-GAAP net
income goals.

	 	3.	 	A year-end incentive based on the Company achieving its strategic business goals,
which can be adjusted based on individual performance.

	 	4.	 	“Upside bonuses” for over-plan revenue and net income achievement.

1. Revenue Performance Incentives — worth one-third of your total At-Plan annual incentive bonus
target. Three-quarters of any earned quarterly revenue incentive is paid as a restricted stock
award (“RSA”), which vests over three years (25/25/50% per year). One-quarter of any earned
quarterly revenue incentive is banked until the end of the year and will be adjusted based on full
year revenue attainment.

Up to one-fourth of the revenue performance incentive bonus is earned in each fiscal quarter if the
Company attains its quarterly year-to-date business plan revenue goal. For quarterly bonuses to be
awarded, actual year-to-date revenue must be equal to or greater than certain thresholds relative
to year-to-date business plan goals. The spread between the quarterly thresholds and year-to-date
goals vary from one quarter to another. Sixty percent of the quarterly bonus is awarded if the
year-to-date revenue goal is achieved at the threshold amount and increases from 60% to 100%
proportionately up to full goal attainment.

Any portion of the quarterly revenue incentive not earned for a quarter is carried forward for
possible payment at the end of the year if the actual full year performance is at or above the full
year threshold. Any RSA bonus amounts that are carried forward are awarded on a pro-rata basis at
year end if the actual full year revenue attainment is above the threshold amount, but only to the
extent that the total of the incentives awarded, and to-be-awarded, is less than the pro-rata
percentage calculation for the entire year.

2. Non-GAAP Net Income (“NI”) Performance Incentives– NI worth one-third of your total At-Plan
annual incentive bonus target. Three-quarters of any earned quarterly NI incentive is paid as a
restricted stock award (“RSA”), which vests over three years (25/25/50% per year). One-quarter of
any earned quarterly NI incentive is banked until the end of the year and will be adjusted based on
full year NI attainment.

Up to one-fourth of the NI performance incentive bonus is earned in each fiscal quarter if the
Company attains its quarterly year-to-date business plan NI goal. For quarterly bonuses to be
awarded, actual year-to-date NI must be equal to or greater than certain thresholds relative to
year-to-date business plan goals. The spread between the quarterly thresholds and year-to-date
goals vary from one quarter to another. Sixty percent of the quarterly bonus is awarded if the
year-to-date NI goal is achieved at the threshold amount and increases from 60% to 100%
proportionately up to full goal attainment.

Any portion of the quarterly NI not earned for a quarter is carried forward for possible payment at
the end of the year if the actual full year performance is at or above the full year threshold.
Any RSA bonus amounts that are carried forward are awarded on a pro-rata basis at year end if the
actual full year NI attainment is above the threshold amount, but only to the extent that the total
of the incentives awarded, and to-be-awarded, is less than the pro-rata percentage calculation for
the entire year.

3. Strategic Incentive — worth one-third of your total At-Plan annual incentive bonus target, all
paid in cash.

This year-end incentive bonus is based on achieving strategic goals approved by the Compensation
Committee of the Board of Directors and may be adjusted for individual performance. Any earned
annual incentive is paid in cash.

4. Over-Plan Achievement Incentives — worth up to one-fifth of the At-Plan Revenue Performance
Incentive plus up to one-fifth of the At-Plan NI Performance Incentive, all paid in cash.

These year-end incentive bonuses are based on the Company exceeding its annual business plan
revenue goal and annual business plan NI goal. The maximum over-plan achievement incentives are
one-fifth (20%) of the at-plan revenue performance incentive target (or 6.67% of your total Annual
At-Plan Incentive Target) plus one-fifth (20%) of the at-plan NI performance incentive target (or
6.67% of your total Annual At-Plan Incentive Target) for a total of 13.33% of your total Annual
At-Plan Incentive Target. The maximum over-plan revenue and NI achievement incentives are based on
the Company achieving certain annual revenue and NI above plan goals, as defined by the Board of
Directors. Over-plan incentive bonuses are paid pro-rata for achievement between the business plan
goal and the over-plan goal for both revenue and NI. Any earned over-plan incentive bonuses are
paid in cash.

Summary

The components of your fiscal 2008 Management Incentive Plan are summarized in the following table.

Percent of Total Annual At-Plan Incentive Target By Incentive Plan Component

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	At-Plan	 	Maximum Over-	 	Maximum Bonus
	 	 	Achievement	 	Plan Achievement	 	Award
	Revenue Incentive
	 	 	33.3	%	 	 	6.7	%	 	 	40.0	%
	NI Incentive
	 	 	33.3	%	 	 	6.7	%	 	 	40.0	%
	Annual Strategic Incentive
	 	 	33.3	%	 	 	—	 	 	 	33.3	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	100.0	%	 	 	13.3	%	 	 	113.3	%

Forms of payment for any earned incentives are summarized in the following table.

Earned Incentives Payment Form By Incentive Plan Component

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	At-Plan	 	Over-Plan	 	 	 	 
	 	 	 	 	Achievement	 	Achievement	 	 	 	 
	               

	 	Revenue Incentive
	 	75% paid as RSAs

25% banked until

year end adjusted

for full year

performance and

paid as cash
	 	Paid as cash

	 	         

	 	          

	 
	 	 	 	 	 	 	 	 	 	 
	
 
	 	NI Incentive
	 	75% paid as RSAs

25% banked until

year end adjusted

for full year

performance and

paid as cash
	 	Paid as cash

	 	

	 	

	 
	 	 	 	 	 	 	 	 	 	 
	
 
	 	Annual Strategic Incentive
	 	Paid as cash
	 	

	 	

	 	

Other Terms and Conditions:

	 	•	 	You must return a signed copy of this agreement and return it to Andy Solowey to be
eligible for any fiscal 2008 MIP awards.

	 	•	 	For purposes of this plan, actual results will exclude certain items that are not
indicative of the normal operating performance. Net income is computed on a non-GAAP
basis.

	 	•	 	Earned cash incentives will be determined and paid following the public release of the
Company’s year-end financial results.

	 	•	 	Earned quarterly RSAs are generally granted three days after the public release of the
Company’s quarterly financial results and are subject to approval by the Compensation
Committee.

	 	•	 	No incentive will be paid to you if you are not employed by the Company at the time when
incentives are approved and ready for payment.

	 	•	 	The Company reserves the right to amend the plan in any way and at any time upon written
notice.

	 	•	 	Any dispute over the interpretation of any part of the plan will be judged and decided
by the Company’s Compensation Committee.

You are required to keep all information in connection with your individual at-plan annual
incentive bonus target confidential. If the Company determines that you fail to keep this
information confidential, any incentive awards may be forfeited.

Read, understood and agreed:
                                                                      Date:
_

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