Document:

EX-10.1

Exhibit 10.1

AMENDMENT NO. 2 AND JOINDER

TO MASTER REPURCHASE AGREEMENT

Amendment No. 2, dated as of September 2, 2005 (this “Amendment”), among CREDIT SUISSE
FIRST BOSTON MORTGAGE CAPITAL LLC (“Buyer”), NEW CENTURY MORTGAGE CORPORATION, NC CAPITAL
CORPORATION, NC RESIDUAL II CORPORATION, NEW CENTURY CREDIT CORPORATION, LOAN PARTNERS MORTGAGE,
LTD., KINGSTON MORTGAGE COMPANY, LTD., COMPUFUND MORTGAGE COMPANY, LTD, WRT FINANCIAL LIMITED
PARTNERSHIP, PEACHTREE RESIDENTIAL MORTGAGE, L.P., RESIDENTIAL PRIME LENDING LIMITED PARTNERSHIP,
TEAM HOME LENDING, LTD., SUTTER BUTTES MORTGAGE, L.P., MIDWEST HOME MORTGAGE LTD, AUSTIN MORTGAGE,
L.P., CAPITAL PACIFIC HOME LOANS, L.P., GOLDEN OAK MORTGAGE, L.P., NORTHWEST CAPITAL MORTGAGE,
L.P., SCFINANCE, L.P., AD ASTRA MORTGAGE, LTD, HOME123 CORPORATION (each a “Seller” and
collectively, the “Sellers”) and NEW CENTURY FINANCIAL CORPORATION, the
(“Guarantor”).

RECITALS

New Century Mortgage Corporation, NC Capital Corporation, NC Residual II Corporation, New
Century Credit Corporation (the “Original Sellers”), the Buyer, and the Guarantor are
parties to that certain Master Repurchase Agreement, dated as of December 22, 2004, as amended by
Amendment No. 1, dated as of August 26, 2005 (the “Existing Repurchase Agreement”, as
amended by this Amendment, the “Repurchase Agreement”). The Guarantor is a party to that
certain Guaranty (the “Guaranty”), dated as of December 22, 2004, as the same may be
amended from time to time, by the Guarantor in favor of Buyer. Capitalized terms used but not
otherwise defined herein shall have the meanings given to them in the Existing Repurchase Agreement
and the Guaranty.

The Buyer, the Original Sellers and the Guarantor have agreed, subject to the terms and
conditions of this Amendment, that the Existing Master Repurchase Agreement be amended to permit
each of Loan Partners Mortgage, LTD., Kingston Mortgage Company, LTD., Compufund Mortgage Company,
LTD, WRT Financial Limited Partnership, Peachtree Residential Mortgage, L.P., Residential Prime
Lending Limited Partnership, Team Home Lending, LTD., Sutter Buttes Mortgage, L.P., Midwest Home
Mortgage LTD, Austin Mortgage, L.P., Capital Pacific Home Loans, L.P., Golden Oak Mortgage, L.P.,
Northwest Capital Mortgage, L.P., scFinance, L.P., Ad Astra Mortgage, LTD and Home123 Corporation
(the “Additional Sellers”) to become an additional Seller under the Master Repurchase
Agreement and to enter into Transactions with respect to Mortgage Loans.

The Buyer, the Sellers and the Guarantor 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. As a condition precedent to amending
the Existing Repurchase Agreement, the Buyer has required the Guarantor to ratify and affirm the
Guaranty on the date hereof.

Accordingly, the Buyer, Sellers and Guarantor 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. Agreement and Joinder with respect to the Additional Sellers. Each of the
Additional Sellers hereby agrees to all of the provisions of the Existing Master Repurchase
Agreement, and effective on the date hereof, becomes a party to the Repurchase Agreement, as
Seller, with the same effect as if each of the undersigned were an original signatory to the
Existing Master Repurchase Agreement. Upon the execution and effectiveness of this Amendment, all
references to Seller in the Repurchase Agreement shall include the Additional Sellers. In
accordance with Section 9 of the Existing Master Repurchase Agreement, each Additional Seller
hereby pledges to Buyer as security for the performance by such Additional Seller’s of the
Obligations of such Additional Seller and hereby grants, assigns and pledges to Buyer a fully
perfected first priority security interest in the Purchased Mortgage Loans of such Additional
Seller, the related Records, and all related servicing rights, the Program Agreements (to the
extent such Program Agreements and Additional Seller’s right thereunder relate to the Purchased
Mortgage Loans), any Property relating to such Purchased Mortgage Loans, all insurance policies and
insurance proceeds relating to such Purchased Mortgage Loan or the related Mortgaged Property,
including, but not limited to, any payments or proceeds under any related primary insurance, hazard
insurance and, Income, the Collection Account, Interest Rate Protection Agreements (which interest
in the Interest Rate Protection Agreements shall be pro rata and subject to rights of other parties
holding security interests therein) accounts (including any interest of Seller in escrow accounts)
and any other contract rights, instruments, payments, rights to payment (including payments of
interest or finance charges) general intangibles and other assets relating to such Purchased
Mortgage Loans (including, without limitation, any other accounts) or any interest in the Purchased
Mortgage Loans, and any proceeds (including the related securitization proceeds) and distributions
with respect to any of the foregoing and any other property, rights, title or interests as are
specified on a Transaction Request and/or Trust Receipt and Certification, in all instances,
whether now owned or hereafter acquired, now existing or hereafter created. Notwithstanding
anything contained herein, in the Repurchase Agreement or in any other document related thereto,
each of the Additional Sellers shall be liable solely for such Additional Seller’s individual and
direct obligations as a Seller hereunder, under the Repurchase Agreement and under any other
document related thereto, and no recourse shall be had against such Additional Seller, individually
or personally, as a guarantor, surety or joint obligor, whether by levy or execution, or under any
law, or by the enforcement of any assessment or penalty or otherwise, for the payment or
performance of any other Seller’s obligations hereunder, under the Repurchase Agreement or under
any other document related thereto.

SECTION 2. References to Custodian and Custodial Agreement. All references in the
Existing Repurchase Agreement to the Custodian shall mean the applicable Custodian. All references
in the Existing Repurchase Agreement to the Custodial Agreement shall mean the applicable Custodial
Agreement.

SECTION 3. Definitions. Section 1 of the Existing Repurchase Agreement is
hereby amended by:

3.1 adding the following definitions in their proper alphabetical order:

““Additional Seller” has the meaning assigned to such term in the Recitals section of
this Amendment.”

““Assignment of Proprietary Lease” means the specific agreement creating a first lien
on and pledge of the Co-op Shares and the appurtenant Proprietary Lease securing a Co-op Loan.”

““Balloon Loan” means a Mortgage Loan which, by its terms, does not fully amortize by
the stated maturity date.”

““Co-op” means a private, cooperative housing corporation, having only one class of
stock outstanding, which owns or leases land and all or part of a building or buildings, including
apartments, spaces used for commercial purposes and common areas therein and whose board of
directors authorizes the sale of stock and the issuance of a Proprietary Lease.”

““Co-op Corporation” means, with respect to any Co-op Loan, the cooperative apartment
corporation that holds legal title to the related Co-op Project and grants occupancy rights to
units therein to stockholders through Proprietary Leases or similar arrangements.”

““Co-op Lien Search” means a search for (a) federal tax liens, mechanics’ liens, lis
pendens, judgments of record or otherwise against (i) the Co-op Corporation and (ii) the seller of
the Co-op Unit, (b) filings Uniform Commercial Code financing statements and (c) the deed of the
Co-op Project into the Co-op Corporation.”

““Co-op Loan” means a Mortgage Loan secured by the pledge of stock allocated to a
dwelling unit in a residential cooperative housing corporation and collateral assignment of the
related Proprietary Lease.”

““Co-op Project” means, with respect to any Co-op Loan, all real property and
improvements thereto and rights therein and thereto owned by a Co-op Corporation including without
limitation the land, separate dwelling units and all common elements.”

““Co-op Shares” means, with respect to any Co-op Loan, the shares of stock issued by a
Co-op Corporation and allocated to a Co-op Unit and represented by a stock certificates.”

““Co-op Unit” means, with respect to any Co-op Loan, a specific unit in a Co-op
Project.”

““High CLTV Mortgage Loan” means any Mortgage Loan that conforms to Fannie Mae
guidelines and has a CLTV greater than 100% and less than or equal to 105%.”

“Intercreditor Agreement” means the intercreditor agreement dated as of September 2,
2005, among Sellers, Buyer, Bank of America, N.A., DB Structured Products, Inc., Aspen Funding
Corp., Newport Funding Corp. and Gemini Securitization Corp., LLC as the same may be amended from
time to time.

““Proprietary Lease” means the lease on a Co-op Unit evidencing the possessory
interest of the owner in the Co-op Shares in such Co-op unit.”

““Recognition Agreement” means, an agreement among a Co-op Corporation, a lender and a
Mortgagor with respect to a Co-op Loan whereby such parties (i) acknowledge that such lender may
make, or intends to make, such Co-op Loan, and (ii) make certain agreements with respect to such
Co-op Loan.”

““Second Amendment” means the Amendment No. 2, dated as of September 2, 2005, to this
Agreement.”

““Stock Certificate” means, with respect to a Co-op Loan, the certificates evidencing
ownership of the Co-op Shares issued by the Co-op Corporation.”

““Stock Power” means, with respect to a Co-op Loan, an assignment of the Stock
Certificate or an assignment of the Co-op Shares issued by the Co-op Corporation.”

3.2 deleting the definitions of “Custodial Agreement”, “Custodian”,
“Mortgage”, “Mortgage File”, “Mortgage Loan”, “Mortgaged Property”,
“Purchased Mortgage Loans” and “Sellers” in their entirety and replacing them with
the following definitions:

““Custodial Agreement” means the custodial agreement among Sellers, Buyer and U.S.
Bank National Association, dated as of September 2, 2005, as the same may be amended from time to
time or the custodial agreement among Sellers, Buyer and Deutsche Bank National Trust Company,
dated as of December 22, 2004, as the same may be amended from time to time, as applicable.”

““Custodian” means the applicable Custodian to which the Mortgage Loan(s) was
delivered, which shall be (i) Deutsche Bank National Trust Company, or any successor thereto under
its Custodial Agreement or (ii) U.S. Bank National Association, or any successor thereto under its
Custodial Agreement.”

““Mortgage” means each mortgage, assignment of rents, security agreement and fixture
filing, or deed of trust, assignment of rents, security agreement and fixture filing, deed to
secure debt, assignment of rents, security agreement and fixture filing, or similar instrument
creating and evidencing a lien on real property and other property and rights incidental thereto,
unless such Mortgage is granted in connection with a Co-op Loan, in which case the first lien
position is in the stock of the subject cooperative association and in the tenant’s rights in the
cooperative lease relating to such stock.”

““Mortgage File” means, (i) with respect to a Mortgage Loan other than a Co-op Loan,
the documents and instruments relating to such Mortgage Loan set forth in Exhibit E-1 to
the Custodial Agreement and (ii) with respect to a Mortgage Loan that is a Co-op Loan, the
documents and instruments relating to such Mortgage Loan set forth in Exhibit E-1B to the
Custodial Agreement.”

““Mortgage Loan” means any Co-op Loan, Sub-Prime Mortgage Loan, Exception Mortgage
Loan, Jumbo Mortgage Loan, Alt A Mortgage Loan, Second Lien Mortgage Loan, HELOC or Conforming
Mortgage Loan which is a fixed or floating-rate, one-to-four-family residential mortgage or home
equity loan evidenced by a promissory note and secured by a mortgage, which satisfies the
requirements set forth in the Underwriting Guidelines and Section 14(b) hereof; provided, however,
that, except as expressly approved in writing by Buyer, Mortgage Loans shall not include any
“high-LTV” loans (i.e., a mortgage loan having a loan-to-value ratio in excess of 100% (or
with respect to High CLTV Mortgage Loans, 105%) or in excess of such lower percentage set forth in
the Underwriting Guidelines or with respect to Second Lien Mortgage Loans, a combined loan-to value
ratio in excess of the lower of (i) the percentage specified in the Underwriting Guidelines or (ii)
100% or, with respect to High CLTV Mortgage Loans, 105%) or any High Cost Mortgage Loans and;
provided, further, that the origination date with respect to such Mortgage Loan is no earlier than
thirty (30) days prior to the related Purchase Date.”

““Mortgaged Property” means the real property securing repayment or other Co-op Loan
collateral of the debt evidenced by a Mortgage Note.”

““Purchased Mortgage Loans” means the collective reference to Mortgage Loans together
with the Repurchase Assets (other than Interest Rate Protection Agreements) related to such
Mortgage Loans transferred by Sellers to Buyer in a Transaction hereunder, listed on the related
Mortgage Loan Schedule attached to the related Transaction Request, which such Mortgage Loans the
Custodian has been instructed to hold pursuant to the Custodial Agreement.”

““Sellers” means New Century Mortgage Corporation, NC Capital Corporation, NC Residual
II Corporation, New Century Credit Corporation and each Additional Seller, and each such Seller’s
permitted successors and assigns.”

SECTION 4. Conditions to All Transactions. Section 11 of the Existing
Repurchase Agreement is hereby amended by adding the following Subsection 11(a)(10) thereto:

“(10) Additional Sellers. Each Additional Seller shall deliver the following before
such Additional Seller shall be permitted to enter into a Transaction hereunder:

(a) A favorable written opinion of counsel to such Additional Seller (which shall
include, without limitation, creation and perfection of the security interests created
herein, corporate and enforceability opinions related to the execution of the Second
Amendment);

(b) A good standing certificate and certified copies of the charter and by-laws (or
equivalent documents) of such Additional Seller and of all corporate or other authority for
such Additional Seller with respect to the execution, delivery and performance of the Second
Amendment and this Agreement and each other document to be delivered by such Additional
Seller from time to time in connection herewith (and the Buyer may conclusively rely on such
certificate until it receives notice in writing from each of the Additional Sellers to the
contrary);

(c) Evidence that all other actions necessary, or in the opinion of Buyer, desirable to
perfect and protect Buyer’s interest in the Purchased Mortgage Loans and other Repurchase
Assets have been taken, including, without limitation, UCC searches and duly authorized and
filed Uniform Commercial Code financing statements on Form UCC-1 with respect to the
Additional Sellers;

SECTION 5. Events of Default. Section 16 of the Existing Repurchase Agreement
is hereby amended by deleting Subsection (m) in its entirety and replacing it with the
following:

“(m) Security Interest. This Agreement shall for any reason cease to create a valid,
first priority security interest in any material portion of the Purchased Mortgage Loans or other
Repurchase Assets purported to be covered hereby (other than Interest Rate Protection Agreements
which shall be governed by the Intercreditor Agreement).”

SECTION 6. Schedules. Schedule I to the Existing Repurchase Agreement is
hereby amended by:

6.1 deleting subsections (a), (c), (d), (h), (k), (l), (o), (r), (y) and (ff) in their
entirety and replacing them with their respective subsections listed on Exhibit A hereto.

6.2 adding subsections (aaa), (bbb), (ccc), (ddd) and (eee) listed on Exhibit A
hereto.

SECTION 7. Exhibits. Exhibit I to the Existing Repurchase Agreement is hereby
amended by deleting it in its entirety and replacing it with Exhibit B hereto.

SECTION 8. Conditions Precedent. This Amendment shall become effective as of
September 2, 2005 (the “Amendment Effective Date”), subject to the satisfaction of the
following conditions precedent:

8.1 Delivered Documents. On the date hereof, the Buyer shall have received the
following documents, each of which shall be satisfactory to the Buyer in form and substance:

(a) this Amendment, executed and delivered by the Guarantor and duly authorized
officers of the Buyer and the Sellers;

(b) Amendment No. 2 and Joinder to the Pricing Side Letter, executed and delivered by
duly authorized officers of the Buyer, the Sellers and the Guarantor;

(c) the Collection Account Control Agreement, executed and delivered by duly authorized
officers of the Buyer, Sellers and Union Bank of California, N.A.;

(d) the Custodial Agreement, executed and delivered by duly authorized officers of the
Sellers, Buyer and U.S. Bank National Association;

(e) the Intercreditor Agreement, executed and delivered by the Sellers, Bank of
America, N.A., Buyer, DB Structured Products, Inc, Aspen Funding Corp., Newport Funding
Corp. and Gemini Securitization Corp., LLC;

(f) the Electronic Tracking Agreement, executed and delivered by duly authorized
officers of the Sellers, MERSCORP, Inc., Mortgage Electronic Registration Systems, Inc. and
the Buyer;

(g) the Funding Account Control Agreement, executed and delivered by duly authorized
officers of the Sellers, Buyer and U.S. Bank National Association; and

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

SECTION 9. Representations and Warranties.

9.1 Each Seller hereby represents and warrants to the Buyer that it is in compliance with all
the terms and provisions set forth in the Existing Repurchase Agreement on its part to be observed
or performed, and that no Event of Default has occurred or is continuing, and hereby confirms and
reaffirms the representations and warranties contained in Section 14 of the Existing Repurchase
Agreement (except to the extent that such representation or warranty expressly relates to an
earlier date).

9.2 In addition, the Additional Sellers make the following representation and warranty as of
the Amendment Effective Date, and as of each Purchase Date:

“Chief Executive Office/Jurisdiction of Organization. Each of the Additional Seller’s
chief executive office is, and has been, located at 18400 Von Karman Ave., Suite 1000, Irvine, CA
92612. Except with respect to Peachtree Residential Mortgage, L.P., each Additional Seller is a
limited partnership duly organized, validly existing and in good standing under the laws of the
State of Texas. Peachtree Residential Mortgage, L.P. is a limited partnership duly organized,
validly existing and in good standing under the laws of the State of Georgia.”

SECTION 10. Joint and Several Obligations. Each of the Sellers and Buyer hereby
acknowledge and agree that the Original Sellers are each jointly and severally liable to Buyer for
all of their and the Additional Sellers’ respective representations, warranties and covenants
hereunder and under the Repurchase Agreement. The Original Sellers hereby unconditionally and
irrevocably guarantee to the Buyer the prompt and complete payment and performance by the
Additional Sellers when due (whether at the stated maturity, by acceleration or otherwise) of their
Obligations hereunder.

Each Original Seller waives any and all notice of the creation, renewal, extension or accrual
of any of the Additional Sellers’ Obligations hereunder and notice of or proof of reliance by the
Buyer upon this guaranty or acceptance of this guaranty; the Additional Sellers’ Obligations, and
any of them, shall conclusively be deemed to have been created, contracted or incurred, or renewed,
extended, amended or waived in reliance upon this guaranty; and all dealings between the Original
Sellers or the Additional Sellers, on the one hand, and the Buyer, on the other, shall likewise be
conclusively presumed to have been had or consummated in reliance upon this guaranty. Each
Original Seller waives diligence, presentment, protest, demand for payment and notice of default or
nonpayment to or upon the Additional Sellers or this guaranty with respect to the Additional
Sellers’ Obligations. This guaranty shall be construed as a continuing, absolute and unconditional
guarantee of payment without regard to (i) the validity or enforceability of the Repurchase
Agreement, the other Program Agreements, any of the Additional Sellers’ Obligations or any
collateral security therefor or guarantee or right of offset with respect thereto at any time or
from time to time held by the Buyer, (ii) any defense, set-off or counterclaim (other than a
defense of payment or performance) which may at any time be available to or be asserted by the
Additional Sellers against the Buyer, or (iii) any other circumstance whatsoever (with or without
notice to or knowledge of the Additional Sellers or the Original Sellers) which constitutes, or
might be construed to constitute, an equitable or legal discharge of the Additional Sellers for
their Obligations, or of the Original Sellers under this guaranty, in bankruptcy or in any other
instance. When pursuing its rights and remedies hereunder against the Original Sellers, the Buyer
may, but shall be under no obligation, to pursue such rights and remedies that they may have
against the Additional Sellers or any other Person or against any collateral security or guarantee
for the Additional Sellers’ Obligations or any right of offset with respect thereto, and any
failure by the Buyer to pursue such other rights or remedies or to collect any payments from
Additional Sellers or any such other Person or to realize upon any such collateral security or
guarantee or to exercise any such right of offset, or any release of the Original Sellers or any
such other Person or any such collateral security, guarantee or right of offset, shall not relieve
the Original Sellers of any liability hereunder, and shall not impair or affect the rights and
remedies, whether express, implied or available as a matter of law, of the Buyer against the
Original Sellers. This guaranty shall remain in full force and effect and be binding in accordance
with and to the extent of its terms upon the Original Sellers and their successors and assigns
thereof, and shall inure to the benefit of the Buyer, and successors, indorsees, transferees and
assigns, until all of each Additional Seller’s Obligations and the obligations of each Original
Seller under this guaranty and the Repurchase Agreement shall have been satisfied by payment in
full, notwithstanding that from time to time during the term of the Repurchase Agreement the
Additional Sellers may be free from any Obligations.

SECTION 11. Limited Effect. Except as expressly amended and modified by this
Amendment, the Existing Repurchase Agreement shall continue to be, and shall remain, in full force
and effect in accordance with its terms.

SECTION 12. 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 13. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

SECTION 14. Reaffirmation of Guaranty. The Guarantor hereby ratifies and affirms all
of the terms, covenants, conditions and obligations of the Guaranty and acknowledges and agrees
that such Guaranty shall apply to all of the Obligations under the Repurchase Agreement, as it may
be amended, modified and in effect, from time to time.

[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.

CREDIT SUISSE FIRST BOSTON

MORTGAGE CAPITAL LLC,

as Buyer

By: /s/ Bruce S. Kaiserman

Name: Bruce S. Kaiserman

Title: Vice President

NEW CENTURY MORTGAGE

CORPORATION, as Seller

By: /s/ Patrick Flanagan

Name: Patrick Flanagan

Title: President

NC CAPITAL CORPORATION, as Seller

By: /s/ Patrick Flanagan

Name: Patrick Flanagan

Title: Chief Executive Officer

NC RESIDUAL II CORPORATION, as Seller

By: /s/ Patrick Flanagan

Name: Patrick Flanagan

Title: President

NEW CENTURY CREDIT CORPORATION, as Seller

By: /s/ Patrick Flanagan

Name: Patrick Flanagan

Title: President

LOAN PARTNERS MORTGAGE, LTD, as Seller

By: Capital Standard Origination Company,

Its General Partner

/s/ Patrick Flanagan

Name: Patrick Flanagan

Title: Chief Executive Officer

KINGSTON MORTGAGE COMPANY, LTD., as Seller

By: CSOC XI, INC.,

Its General Partner

/s/ Patrick Flanagan

Name: Patrick Flanagan

Title: Chief Executive Officer

COMPUFUND MORTGAGE COMPANY, LTD, as Seller

By: CSOC XIV, INC.,

Its General Partner

/s/ Patrick Flanagan

Name: Patrick Flanagan

Title: Chief Executive Officer

WRT FINANCIAL LIMITED PARTNERSHIP, as Seller

By: CSOC XXIII, INC.,

Its General Partner

/s/ Patrick Flanagan

Name: Patrick Flanagan

Title: Chief Executive Officer

PEACHTREE RESIDENTIAL MORTGAGE, L.P., as Seller

By: CSOC XXV, INC.,

Its General Partner

/s/ Patrick Flanagan

Name: Patrick Flanagan

Title: Chief Executive Officer

RESIDENTIAL PRIME LENDING LIMITED PARTNERSHIP, as

Seller

By: CSOC XXVII, INC.,

Its General Partner

/s/ Patrick Flanagan

Name: Patrick Flanagan

Title: Chief Executive Officer

TEAM HOME LENDING LTD, as Seller

By: CSOC XXXII, INC.,

Its General Partner

/s/ Patrick Flanagan

Name: Patrick Flanagan

Title: Chief Executive Officer

SUTTER BUTTES MORTGAGE LP, as Seller

By: CSOC XXXVIII, Inc.,

Its General Partner

/s/ Patrick Flanagan

Name: Patrick Flanagan

Title: Chief Executive Officer

MIDWEST HOME MORTGAGE LTD, as Seller

By: CSOC XXXVII, Inc.

Its General Partner

/s/ Patrick Flanagan

Name: Patrick Flanagan

Title: Chief Executive Officer

AUSTIN MORTGAGE, L.P., as Seller

By: RBC GP I, Inc.,

Its General Partner

/s/ Patrick Flanagan

Name: Patrick Flanagan

Title: Chief Executive Officer

CAPITAL PACIFIC HOME LOANS, L.P., as Seller

By: RBC GP II, Inc.,

Its General Partner

/s/ Patrick Flanagan

Name: Patrick Flanagan

Title: Chief Executive Officer

GOLDEN OAK MORTGAGE, LP, as Seller

By: RBC GP III, Inc.,

Its General Partner

/s/ Patrick Flanagan

Name: Patrick Flanagan

Title: Chief Executive Officer

NORTHWEST CAPITAL MORTGAGE LP, as Seller

By: RBC GP IV, Inc.,

Its General Partner

/s/ Patrick Flanagan

Name: Patrick Flanagan

Title: Chief Executive Officer

SCIFINANCE LP, as Seller

By: RBC GP VI, Inc.,

Its General Partner

/s/ Patrick Flanagan

Name: Patrick Flanagan

Title: Chief Executive Officer

AD ASTRA MORTGAGE LTD, as Seller

By: RBC GP IX, Inc.,

Its General Partner

/s/ Patrick Flanagan

Name: Patrick Flanagan

Title: Chief Executive Officer

HOME123 CORPORATION, as Seller

By: /s/ Patrick Flanagan

Name: Patrick Flanagan

Title: Chief Executive Officer

NEW CENTURY FINANCIAL CORPORATION, as Guarantor

By: /s/ Patrick Flanagan

Name: Patrick Flanagan

Title: Executive Vice President

2EX-10.2

Exhibit 10.2

MASTER REPURCHASE AGREEMENT

This Master Repurchase Agreement, dated as of September 2, 2005 (as amended from time to time
in accordance with the terms hereof, this “Agreement”), is among DB Structured Products,
Inc. (“DBSP” or the “Committed Buyer”), Aspen Funding Corp. (“Aspen”),
Newport Funding Corp. (“Newport”), Gemini Securitization Corp., LLC (“Gemini” and,
together with Aspen and Newport, each a “Noncommitted Buyer” and collectively, the
“Noncommitted Buyers” and, together with the Committed Buyer, each a “Buyer” and
collectively, the “Buyers”), and New Century Mortgage Corporation (“NCMC”), New
Century Credit Corporation (“NC Credit”), Home123 Corporation (“Home123”) and NC
Capital Corporation (“NCCC”; together with NCMC, NC Credit and Home123, each a
“Seller” and collectively, the “Sellers”).

WHEREAS, from time to time for a period from the date hereof to the Termination Date and
subject to the terms hereof, the Committed Buyer and one or more Sellers may engage in transactions
(each, a “Transaction”) whereby a Seller sells to the Committed Buyer certain Eligible
Mortgage Loans at a price equal to the related Purchase Price and whereby the Committed Buyer
agrees to resell each Purchased Asset to such Seller and such Seller agrees to repurchase each
Purchased Asset from the Committed Buyer, on each Repurchase Date, which shall be a date certain
not later than 30 days after the date of such purchase, at the Repurchase Price, all subject to and
in accordance with the terms and conditions set forth below, provided that, at the sole
discretion of the Committed Buyer, any such purchase requested by a Seller hereunder may be made by
one of the Noncommitted Buyers on the terms set forth herein; and

WHEREAS, the Buyers and Sellers have entered into this Agreement in consideration of the
mutual agreements hereinafter set forth and for other good and valuable consideration, the receipt
and adequacy of which is hereby acknowledged.

NOW THEREFORE, in consideration of the mutual undertakings herein expressed, the parties
hereby agree as follows:

1. Definitions. As used in this Agreement, the following terms shall have the
following meanings (all terms defined in this Section 1 or in other provisions of this Agreement in
the singular to have the same meanings when used in the plural and vice versa):

“Acceptable Attorney” shall have the meaning set forth in the Custodial Agreement.

“Accepted Servicing Practices” shall mean, with respect to any Mortgage Loan, those
mortgage servicing practices of mortgage lending institutions which service mortgage loans of the
same type as such Mortgage Loan in the jurisdiction where the related Mortgaged Property is
located.

“Actual Purchase Price” shall have the meaning set forth in Section 3(h)(ii).

“Additional Eligible Mortgage Loans” shall have the meaning set forth in Section 9(a).

“Adjusted Tangible Net Worth” shall mean, as to NCFC as of a particular date:

	 	i.	 	all amounts which would be included under total
stockholders equity on a consolidated balance sheet of NCFC and its
consolidated Subsidiaries at such date, determined in accordance with
GAAP, less

	 	ii.	 	intangible assets of NCFC and its consolidated
Subsidiaries determined in accordance with GAAP.

“Affiliate” shall mean, with respect to any Person, any “affiliate” of such Person as
such term is defined in the Bankruptcy Code.

“Agency” shall mean Freddie Mac or Fannie Mae, as applicable.

“Agency Conforming Mortgage Loan” shall mean a first lien Mortgage Loan originated in
accordance with the criteria of an Agency for purchase of Mortgage Loans.

“Agreement” shall have the meaning set forth in the introductory paragraph to this
Agreement.

“Alt-A Mortgage Loan” shall mean a first and second lien Mortgage Loans originated in
accordance with the Prime Underwriting Guidelines applicable to Alt-A Mortgage Loans that does not
satisfy the criteria for Agency Conforming Mortgage Loans, Government Mortgage Loans or Jumbo Prime
Mortgage Loans.

“ALTA” shall mean the American Land Title Association.

“Alternate Base Rate” shall mean, for any day, a fluctuating rate of interest per
annum equal to the higher of: (i) the rate of interest most recently announced by Deutsche Bank AG
as its prime lending rate for unsecured commercial loans within the United States, and (ii) 0.50%
above the rate per annum at which Deutsche Bank AG, New York Branch, as a branch of a foreign bank,
in its reasonable discretion, can acquire federal funds in the interbank overnight federal funds
market, through brokers of recognized standing or otherwise, as most recently determined by
Deutsche Bank AG, New York Branch. The Alternate Base Rate is not necessarily intended to be the
lowest rate of interest determined by Deutsche Bank AG or Deutsche Bank AG, New York Branch, in
connection with extensions of credit.

“Applicable Margin” shall have the meaning set forth in the Fee Letter.

“Appraised Value” shall mean, with respect to any Mortgaged Property, the value set
forth in an appraisal made in connection with the origination of the related Mortgage Loan as the
value of such Mortgaged Property.

“Aspen” shall have the meaning set forth in the introductory paragraph to this
Agreement.

“Asset File” shall have the meaning set forth in Section 10(a).

“Asset Value” shall mean, with respect to a Purchased Asset and any day, the lesser of
(i) an amount equal to (A) the related Discount Percentage multiplied by (B) the Market Value of
such Purchased Asset on such day and (ii) an amount equal to (A) with respect to any Purchased
Asset which is a Subprime Mortgage Loan, 100% of the outstanding principal balance of such
Purchased Asset on such day or (B) with respect to any Purchased Asset which is a Prime Mortgage
Loan, the related Discount Percentage of the outstanding principal balance of such Purchased Asset
on such day.

“Assignment of Mortgage” shall mean, with respect to any Mortgage, an assignment of
the mortgage, notice of transfer or equivalent instrument in recordable form (excluding therefrom
the name of the assignee and mortgage recording information not yet returned from the applicable
recording office), sufficient under the laws of the jurisdiction wherein the related Mortgaged
Property is located to reflect the assignment and pledge of the Mortgage.

“Attorney’s Bailee Letter” shall have the meaning set forth in the Custodial
Agreement.

“Available Credit Line” shall mean, with respect to any HELOC or One Time Close Loan
and any date, the credit limit (whether drawn or undrawn) available under the related home equity
revolving line of credit or “One Time Close” manufactured housing loans or one to four family
housing loans, as applicable, on such date.

“Balloon Loan” shall mean a Mortgage Loan with a final Monthly Payment that is
significantly larger than the other scheduled Monthly Payments in respect of such Mortgage Loan.

“Bankruptcy Code” shall mean the United States Bankruptcy Code of 1978, as amended
from time to time.

“Business Day” shall mean any day other than (i) a Saturday or Sunday, or (ii) a day
on which banking and savings and loans institutions in the States of California or New York are
authorized or obligated by law or executive order to be closed.

“Buyer” shall have the meaning set forth in the introductory paragraph to this
Agreement.

“Buyer’s Designated Persons” shall mean the Persons listed on Schedule D-1 to
this Agreement.

“Capital Lease Obligations” shall mean, for any Person, all obligations of such Person
to pay rent or other amounts under a lease of (or other agreement conveying the right to use)
Property to the extent such obligations are required to be classified and accounted for as a
capital lease on a balance sheet of such Person under GAAP, and, for purposes of this Agreement,
the amount of such obligations shall be the capitalized amount thereof, determined in accordance
with GAAP.

“Cash Equivalents” shall mean any of the following: (a) marketable direct obligations
issued by, or unconditionally guaranteed by, the United States Government or issued by any agency
thereof and backed by the full faith and credit of the United States, in each case maturing within
one year from the date of acquisition; (b) certificates of deposit, time deposits, eurodollar time
deposits or overnight bank deposits having maturities of six months or less from the date of
acquisition issued by any commercial bank organized under the laws of the United States or any
state thereof having combined capital and surplus of not less than $500,000,000; (c) commercial
paper of an issuer rated at least A-1 by S&P or P-1 by Moody’s, or carrying an equivalent rating by
a nationally recognized rating agency, if both of the two named rating agencies cease publishing
ratings of commercial paper issuers generally, and maturing within six months from the date of
acquisition; (d) repurchase obligations of any commercial bank satisfying the requirements of
clause (b) of this definition, having a term of not more than 30 days, with respect to securities
issued or fully guaranteed or insured by the United States government; (e) securities with
maturities of one year or less from the date of acquisition issued or fully guaranteed by any
state, commonwealth or territory of the United States, by any political subdivision or taxing
authority of any such state, commonwealth or territory or by any foreign government, the securities
of which state, commonwealth, territory, political subdivision, taxing authority or foreign
government (as the case may be) are rated at least A by S&P or A by Moody’s; (f) securities with
maturities of six months or less from the date of acquisition backed by standby letters of credit
issued by any commercial bank satisfying the requirements of clause (b) of this definition; or (g)
shares of money market mutual or similar funds which invest exclusively in assets satisfying the
requirements of clauses (a) through (f) of this definition.

“Change in Control” means:

(a) any transaction or event as a result of which NCFC ceases to own, directly or
indirectly, beneficially or of record, 100% of the stock of any Seller, except the merger or
consolidation of one Seller with or into another Seller;

(b) any transaction or event as a result of which a Person other than an Affiliate
prior to such transaction, owns more than 20% of NCFC’s stock;

(c) the sale, transfer, or other disposition of all or substantially all of any
Seller’s or NCFC’s assets (excluding any such action taken in connection with any
Securitization Transaction or whole loan sale in the ordinary course of its business); or

(d) the consummation of a merger or consolidation of NCFC with or into another entity
or any other corporate reorganization, if more than 50% of the combined voting power of the
continuing or surviving entity’s stock outstanding immediately after such merger,
consolidation or such other reorganization is owned by Persons who were not stockholders of
NCFC, immediately prior to such merger, consolidation or other reorganization.

“Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

“Collection Account” shall have the meaning set forth in Section 11(a).

“Collection Account Bank” shall have the meaning set forth in Section 11(a).

“Combined Loan-to-Value Ratio” or “CLTV” shall mean, with respect to any
Mortgage Loan, the ratio of (i) the sum of the original principal amount of such Mortgage Loan and,
if the related Mortgaged Property is subject to another mortgage lien which is a first or second
priority lien, the aggregate outstanding principal amount on the date of origination of such
Mortgage Loan of the loans secured by such other liens to (ii) the lesser of (a) the Appraised
Value of the related Mortgaged Property at origination or (b) if the Mortgaged Property was
purchased in conjunction with the origination of such Mortgage Loan, the purchase price of the
Mortgaged Property.

“Committed Buyer” shall have the meaning set forth in the introductory paragraph to
this Agreement.

“Conduit Buyer” shall mean any Buyer whose principal business consists of issuing
commercial paper, medium term notes or other securities to fund its acquisition and maintenance of
receivables, accounts, instruments, chattel paper, general intangibles and other similar assets or
interests therein. The Buyers hereby confirm that each of Aspen, Newport and Gemini are Conduit
Buyers.

“Confirmation” has the meaning specified in Section 3(b).

“Cooperative Documents” shall mean, with respect to any Cooperative Loan, (i) the
related original promissory note, (ii) the related security agreement, (iii) the proprietary lease
or occupancy agreement, (iv) a recognition agreement from the related cooperative housing
corporation, (v) the related loan or other equivalent financing agreement, and (vi) the relevant
stock certificate and related blank stock powers.

“Cooperative Loan” shall mean a cooperative apartment loan secured by a security
interest in shares issued by a private, nonprofit, cooperative and in the related proprietary lease
or occupancy agreement granting exclusive rights to occupy a specific dwelling unit in the
cooperative housing corporation’s building.

“Costs” shall have the meaning set forth in Section 22(a).

“Credit Line Agreement” shall mean, with respect to a HELOC or One Time Close Loan,
the related home equity line of credit agreement or manufactured housing or other applicable loan
agreement, account agreement and promissory note (if any) executed by the related Mortgagor and any
amendment or modification thereof.

“Custodial Agreement” shall mean that certain Custodial Agreement, dated as of
September 2, 2005, among the Sellers, the Servicer, US Bank Corp. National Association and the
Buyers, substantially in the form of Exhibit IV hereto, as the same shall be amended,
modified and supplemented from time to time.

“Custodian” shall mean US Bank Corp. National Association, as custodian under the
Custodial Agreement, and its successors and permitted assigns thereunder.

“Cut-off Date” shall mean, with respect to any Purchase Date, the first day of the
month in which such Purchase Date occurs.

“Default” shall mean any event that, with the giving of notice or the passage of time
or both, would constitute an Event of Default.

“Discount Percentage” shall have the meaning set forth in the Fee Letter.

“Disbursement Account” shall mean the Disbursement Account maintained pursuant
to the Custodial Agreement.

“Distribution Date” shall mean the 10th day of each calendar month or, if such day is
not a Business Day, the next succeeding Business Day.

“Dollars” and “$” shall mean lawful money of the United States of America.

“Draw” shall mean, with respect to a HELOC or One Time Close Loan, an additional
borrowing by the Mortgagor in accordance with the related Credit Line Agreement.

“DTI” shall mean, with respect to any Mortgage Loan, the ratio, at the date of
origination of such Mortgage Loan, of the annual debt service of the related Mortgagor to the
annual income of the Mortgagor.

“Due Date” shall mean, with respect to any Mortgage Loan, the day of the month on
which the Monthly Payment is due on such Mortgage Loan, exclusive of any days of grace.

“Effective Date” shall mean the date upon which the conditions precedent set forth in
Section 15(a) shall have been satisfied.

“Electronic Agent” shall mean MERSCORP, Inc. or its successor in interest or assigns.

“Electronic Agent Agreement” shall mean an agreement in form and substance acceptable
to the Buyers which may be entered into among the Electronic Agent, Committed Buyer, and Sellers.

“Eligible Mortgage Loan” shall mean, as of any date, a fixed or adjustable rate
Mortgage Loan (including, without limitation, interest only Mortgage Loans) originated by a Seller
in accordance with the Underwriting Guidelines and secured by a first or second lien on a
one-to-four family residential property or, with respect to a Cooperative Loan, secured by a
security interest in shares issued by a private, nonprofit, cooperative housing corporation and in
the related proprietary lease or occupancy agreement granting exclusive rights to occupy a specific
dwelling unit in the cooperative housing corporation’s building, as to which the representations
and warranties in Schedule B hereof are correct as of such date and that, in the aggregate
with other Eligible Mortgage Loans (i) is securitizable; or (ii) is salable as a whole loan, each
as determined in the sole discretion of the Buyers, exercised in good faith; provided that no
Mortgage Loan may be an Eligible Mortgage Loan if (x) it has a Mortgagor in bankruptcy, or (y) it
has been converted to an REO Property. Each Eligible Mortgage Loan shall include all of the
related Seller’s right, title and interest in all Records and Servicing Rights related thereto and
all takeout commitments related thereto and all proceeds of such takeout commitments.

“Equity Proceeds” shall mean, with respect to NCFC, an amount equal to the net
proceeds from the issuance of any equity securities of NCFC or the net proceeds to NCFC from
contributions to capital or otherwise by another Person.

“ERISA” shall have the meaning provided in Schedule A.

“ERISA Affiliate” shall mean any corporation or trade or business that is a member of
any group of organizations (i) described in Section 414(b) or (c) of the Code of which NCFC is a
member and (ii) solely for purposes of potential liability under Section 302(c)(11) of ERISA and
Section 412(c)(11) of the Code and the lien created under Section 302(f) of ERISA and Section
412(n) of the Code, described in Section 414(m) or (o) of the Code of which NCFC is a member.

“Escrow Payments” shall mean, with respect to any Mortgage Loan, the amounts
constituting taxes and/or fire and hazard insurance premiums required to be escrowed by the related
Mortgagor with the related mortgagee pursuant to a voluntary escrow agreement between such parties.

“Estimated Purchase Price” shall have the meaning set forth in Section 3(h)(i).

“Event of Default” shall have the meaning set forth in Section 7 of this Agreement.

“Exceptions Report” shall have the meaning set forth in the Custodial Agreement.

“Fannie Mae” or “FNMA” shall mean Fannie Mae, formerly known as the Federal
National Mortgage Association, or any successor thereto.

“Fee Letter” shall mean the letter agreement, dated as of September 2, 2005, between
the Committed Buyer and the Sellers, as the same may from time to time be amended, supplemented or
otherwise modified.

“FHA” shall mean the Federal Housing Administration, an agency within HUD, or any
successor thereto and including the Federal Housing Commissioner and the Secretary of Housing and
Urban Development where appropriate under the FHA regulations.

“FHA Loan” shall mean a Mortgage Loan which was originated or purchased in
accordance with the FHA Regulations and is the subject of an FHA Mortgage Insurance Contract.

“FHA Mortgage Insurance” shall mean, mortgage insurance authorized under the National
Housing Act, as amended from time to time, and provided by the FHA.

“FHA Mortgage Insurance Contract” shall mean the contractual obligation of the FHA
respecting the insurance of a Mortgage Loan.

“FHA Regulations” shall mean the regulations promulgated by the Department of Housing
and Urban Development under the National Housing Act, as amended from time to time and codified in
24 Code of Federal Regulations, and other Department of Housing and Urban Development issuances
relating to FHA Loans, including the related handbooks, circulars, notices and mortgagee letters.

“Freddie Mac” or “FHLMC” shall mean the Federal Home Loan Mortgage
Corporation, or any successor thereto.

“GAAP” shall mean generally accepted accounting principles as in effect from time to
time in the United States. If at any time any change in GAAP would affect the computation of any
financial covenant set forth in this Agreement, and either a Seller or a Buyer shall so request,
Sellers and Buyers shall negotiate in good faith to amend such financial covenant to preserve the
original intent thereof in light of such change in GAAP; provided that, until so amended, (i) such
financial covenant shall continue to be computed in accordance with GAAP as in effect prior to such
change and (ii) the Sellers shall provide to Buyers financial statements and other documents
required or requested under this Agreement setting forth a reconciliation between calculations of
such financial covenant made before and after giving effect to such change in GAAP.

“Gemini” shall have the meaning set forth in the introductory paragraph to this
Agreement.

“Government Mortgage Loan” shall mean an FHA Loan or a VA Loan.

“Governmental Authority” shall mean any nation or government, any state or other
political subdivision thereof, any entity exercising executive, legislative, judicial, regulatory
or administrative functions of or pertaining to government and any court or arbitrator having
jurisdiction over NCFC or any Seller, any of their respective Subsidiaries or any of their
respective properties.

“Gross Margin” shall mean, with respect to each adjustable rate Mortgage Loan, the
fixed percentage amount set forth in the related Mortgage Note.

“Ground Lease” shall mean, with respect to any Mortgaged Property, a lease for all or
any portion of the real property comprising such Mortgaged Property, the lessee’s interest in which
is held by the Mortgagor of the related Mortgage Loan.

“Guarantee” shall mean, as to any Person, any obligation of such Person directly or
indirectly guaranteeing any Indebtedness of any other Person or in any manner providing for the
payment of any Indebtedness of any other Person or otherwise protecting the holder of such
Indebtedness against loss (whether by virtue of partnership arrangements, by agreement to
keep-well, to purchase assets, goods, securities or services, or to take-or-pay or otherwise);
provided that the term “Guarantee” shall not include (i) endorsements for collection or deposit in
the ordinary course of business, or (ii) obligations to make servicing advances or other
obligations in respect of a Mortgaged Property. The amount of any Guarantee of a Person shall be
deemed to be an amount equal to the stated or determinable amount of the primary obligation in
respect of which such Guarantee is made or, if such Guarantee is limited to less than the full
amount of such primary obligation or such primary obligation is not stated or determinable, the
maximum reasonably anticipated liability in respect thereof under the terms of such Guarantee as
determined by such Person in good faith. The terms “Guarantee” and “Guaranteed”
used as verbs shall have correlative meanings.

“Hedge” shall mean, with respect to any or all of the Mortgage Loans, any swap, cap or
collar agreement, forward sale contract, option contract, futures contract, interest-only security,
principal-only security or similar arrangement providing for protection against fluctuations in
interest rates or the exchange of nominal interest obligations or declines in market value, either
generally or under specific contingencies, entered into by a Seller with a Hedge Counterparty and
reasonably acceptable to the Buyers.

“Hedge Counterparty” shall mean a Person (i) (A) with long-term debt ratings of at
least “A2” by Moody’s and “A” by S&P and (B) not on credit watch with negative implications (or
similar status) and (ii) that has entered into a Hedge.

“HELOC” shall mean a Prime HELOC Mortgage Loan or a Subprime HELOC Mortgage Loan.

“Home123” shall have the meaning set forth in the introductory paragraph to this
Agreement.

“HUD” shall mean the Department of Housing and Urban Development, or any federal
agency or official thereof which may from time to time succeed to the functions thereof with regard
to FHA mortgage insurance. The term “HUD,” for purposes of this Agreement, is also deemed to
include subdivisions thereof such as the FHA and Government National Mortgage Association.

“Income” shall mean, with respect to any Purchased Asset at any time, any
principal thereof then payable and all interest, dividends or other distributions payable thereon
less any related servicing fee(s), if any (not to exceed 0.25% per annum on the outstanding
principal amount of the Purchased Assets if payable to NCFC or any of its consolidated Subsidiaries
or an amount agreed to pursuant to Section 6 of the Custodial Agreement if payable to a successor
servicer).

“Indebtedness” shall mean, for any Person: (a) obligations created, issued or incurred
by such Person for borrowed money (whether by loan, the issuance and sale of debt securities or the
sale of Property to another Person subject to an understanding or agreement, contingent or
otherwise, to repurchase such Property from such Person); (b) obligations of such Person to pay the
deferred purchase or acquisition price of Property or services, other than trade accounts payable
(other than for borrowed money) arising, and accrued expenses incurred, in the ordinary course of
business so long as such trade accounts payable are payable within 90 days after the date the
respective goods are delivered or the respective services are rendered; (c) indebtedness of others
secured by a Lien on the Property of such Person, whether or not the respective Indebtedness so
secured has been assumed by such Person; (d) obligations (contingent or otherwise) of such Person
in respect of letters of credit or similar instruments issued or accepted by banks and other
financial institutions for account of such Person; (e) Capital Lease Obligations of such Person;
(f) obligations of such Person under repurchase agreements or like arrangements; (g) indebtedness
of others Guaranteed by such Person; and (h) indebtedness of general partnerships of which such
Person is a general partner.

“Index” shall mean, with respect to each adjustable rate Mortgage Loan, the index set
forth in the related Mortgage Note for the purpose of calculating the interest rate thereon.

“Interest-Only Mortgage Loan” shall mean a Mortgage Loan which provides that for a
period of time, not in excess of 120 months, the Mortgagor shall only be required to pay the
interest accrued thereon on a monthly basis.

“Interest Period” shall mean each period commencing on and including each Distribution
Date (or, in the case of the first Interest Period, the Closing Date) and ending on but excluding
the succeeding Distribution Date (or, if earlier, the Termination Date).

“Interest Rate Adjustment Date” shall mean, with respect to any adjustable rate
Mortgage Loan, the date specified in the related Mortgage Note and the Mortgage Loan Schedule on
which the Mortgage Interest Rate is adjusted.

“Jumbo Alt-A Mortgage Loan” shall mean a first lien Mortgage Loan that has been
originated in accordance with the Prime Underwriting Guidelines for Alt-A Mortgage Loans with a
principal balance greater than the lesser of (i) the balance permitted by such Prime Underwriting
Guidelines and (ii) $650,000.

“Jumbo Mortgage Loan” shall mean a Jumbo Prime Mortgage Loan, Jumbo Alt-A Mortgage
Loan or Jumbo Subprime Mortgage Loan.

“Jumbo Prime Mortgage Loan” shall mean a first lien Mortgage Loan that has been
originated in accordance with the Prime Underwriting Guidelines for Agency Conforming Mortgage
Loans with a principal balance greater than the balance permitted by an Agency.

“Jumbo Subprime Mortgage Loan” shall mean a Subprime First Lien Mortgage Loan that has
been originated in accordance with the Subprime Underwriting Guidelines with a principal balance
greater than the lesser of (i) the balance permitted by such Subprime Underwriting Guidelines and
(ii) $650,000.

“LIBOR” shall mean, for any Interest Period, the rate per annum equal to the rate for
one month deposits in Dollars which appears on Telerate Page 3750 as of 11:00 A.M. (London time) on
the second Business Day prior to the first day of such Interest Period. If such rate does not
appear on Telerate Page 3750, the rate per annum at which DBSP is offered Dollar deposits at or
about 10:00 A.M., New York City time, on such date by prime banks in the interbank eurodollar
market where the eurodollar and foreign currency and exchange operations in respect of the DBSP’s
loans are then being conducted for delivery on such day for a period of one month and in an amount
comparable to the amount of purchases to be outstanding on such day.

“Lien” shall mean any pledge, lien, encumbrance or security interest.

“Loan-to-Value Ratio” or “LTV” shall mean, with respect to any Mortgage Loan,
the ratio of the original outstanding principal amount of such Mortgage Loan to the lesser of (a)
the Appraised Value of the related Mortgaged Property at origination or (b) if the Mortgaged
Property was purchased in conjunction with the origination of such Mortgage Loan, the purchase
price of the Mortgaged Property.

“Manufactured Home” shall mean a unit of manufactured housing (within the meaning of
Code section 25(e)(10)), a single family modular home or a single family house together with all
accessions thereto constituting a portion of the Mortgaged Property securing the indebtedness of
the Mortgagor under any Mortgage Loan.

“Margin Call” shall have the meaning set forth in Section 9(a).

“Margin Deficit” shall have the meaning set forth in Section 9(a).

“Market Value” shall have the meaning assigned in the Fee Letter.

“Material Adverse Effect” shall mean a material adverse effect on (a) the property,
business, operations, financial condition or prospects of the Sellers and NCFC, taken as a whole,
(b) the ability of NCFC to perform its obligations under any of the Transaction Documents to which
it is a party, (c) the validity or enforceability of any of the Transaction Documents, (d) the
rights and remedies of the Buyers under any of the Transaction Documents, (e) the timely payment of
the Repurchase Price of any Transaction or other amounts payable in connection therewith or (f) the
value of the Purchased Assets taken as a whole.

“Maximum Aggregate Purchase Price” shall have the meaning assigned in the Fee Letter.

“MERS” shall mean Mortgage Electronic Registration Systems, Inc. or its successors or
assigns.

“MERS® System” shall mean the Electronic Agent’s mortgage electronic
registry system, as more particularly described in the MERS Procedures Manual.

“Monthly Payment” shall mean the scheduled monthly payment of principal and interest
on a Mortgage Loan as adjusted in accordance with changes in the Mortgage Interest Rate pursuant to
the provisions of the Mortgage Note for an adjustable rate Mortgage Loan.

“Moody’s” shall mean Moody’s Investors Service, Inc. and its successors.

“Mortgage” shall mean the mortgage, deed of trust or other instrument securing a
Mortgage Note, which creates a first or second lien on the fee simple or leasehold in real property
securing the Mortgage Note.

“Mortgage Interest Rate” shall mean the annual rate of interest borne on a Mortgage
Note, which shall be adjusted from time to time with respect to adjustable rate Mortgage Loans.

“Mortgage Interest Rate Cap” shall mean, with respect to an adjustable rate Mortgage
Loan, the limit on each Mortgage Interest Rate adjustment as set forth in the related Mortgage
Note.

“Mortgage Loan” shall mean a mortgage loan or Cooperative Loan which the Custodian has
been instructed to hold for the Buyers pursuant to the Custodial Agreement, and which Mortgage Loan
includes, without limitation, (i) a Mortgage Note and related Mortgage or, in the case of a
Mortgage Loan which is a Cooperative Loan, a Mortgage Note and the related Cooperative Documents
and (ii) all of the related Seller’s right, title and interest in and to the Mortgaged Property
covered by such Mortgage or, in the case of a Mortgage Loan which is a Cooperative Loan, all of the
related Seller’s right, title and interest in and to the security interest in the shares issued by
the related cooperative housing corporation and in the related proprietary lease or occupancy
agreement described in the Cooperative Documents.

“Mortgage Loan Schedule” shall have the meaning set forth in Section 10(a).

“Mortgage Loan Schedule” shall have the meaning set forth in the Custodial Agreement.

“Mortgage Note” shall mean the original executed promissory note or other evidence of
the indebtedness of a Mortgagor with respect to a Mortgage Loan.

“Mortgaged Property” shall mean the real property (including all improvements,
buildings and fixtures and all additions, alterations and replacements made at any time with
respect to the foregoing) and all other collateral securing repayment of the debt evidenced by a
Mortgage Note.

“Mortgagor” shall mean the obligor on a Mortgage Note.

“Multiemployer Plan” shall mean a Plan which is a Multiemployer plan as defined in
Section 4001(a)(3) of ERISA.

“NCCC” shall have the meaning set forth in the introductory paragraph to this
Agreement.

“NC Credit” shall have the meaning set forth in the introductory paragraph to this
Agreement.

“NCFC” shall mean New Century Financial Corporation, a Maryland corporation.

“NCFC Guaranty” shall mean the guaranty made by NCFC in favor of the Buyers in
accordance herewith and substantially in the form attached hereto as Exhibit I.

“NCMC” shall have the meaning set forth in the introductory paragraph to this
Agreement.

“Newport” shall have the meaning set forth in the introductory paragraph to this
Agreement.

“Net Income” shall mean, for any period, the consolidated net income of NCFC and its
consolidated Subsidiaries for such period as determined in accordance with GAAP.

“Noncommitted Buyer” shall have the meaning set forth in the introductory paragraph to
this Agreement.

“Obligations” means (a) all of Sellers’ indebtedness, obligations to pay the
Repurchase Price, Price Differential, and other obligations and liabilities, to the Buyers or the
Custodian arising under, or in connection with, the Transaction Documents, whether now existing or
hereafter arising; (b) any and all sums paid by any Buyer or on behalf of any Buyer in order to
preserve any Purchased Asset or its interest therein in accordance with the terms hereof; and (c)
in the event of any proceeding for the collection or enforcement of any of Sellers’ indebtedness,
obligations or liabilities referred to in clause (a), the reasonable expenses of retaking, holding,
collecting, preparing for sale, selling or otherwise disposing of or realizing on any Purchased
Asset, or of any exercise by any Buyer of its rights under the Transaction Documents, including,
without limitation, attorneys’ fees and disbursements and court costs in accordance with the terms
hereof.

“One Time Close 1-4 Family Housing Loan” shall mean a first lien Mortgage Loan that is
secured by a one-to-four family residential property, that has been underwritten in accordance with
Fannie Mae underwriting guidelines and that has been originated in accordance with (i) the criteria
for purchase of such Mortgage Loans by a takeout investor listed on Schedule F hereto or
otherwise approved in writing by the Committed Buyer and (ii) the Prime Underwriting Guidelines for
“One Time Close” one-to-four family residential property loans.

“One Time Close Loan” shall mean a One Time Close Manufactured Housing Loan or a One
Time Close 1-4 Family Housing Loan.

“One Time Close Manufactured Housing Loan” shall mean a first lien Mortgage Loan that
is secured by a Manufactured Home, that is drawable over a period not in excess of 90 days, that
has been underwritten in accordance with Fannie Mae underwriting guidelines and that has been
originated in accordance with the Prime Underwriting Guidelines for “One Time Close” manufactured
housing loans.

“Option ARM Mortgage Loan” shall mean a first lien Mortgage Loan that has been
originated in accordance with the Prime Underwriting Guidelines for adjustable rate mortgage loans
with options for the related Mortgagor as to each Monthly Payment.

“Origination Date” shall mean, with respect to a Mortgage Loan, the date of the
Mortgage Note relating to such Mortgage Loan.

“Participants” shall have the meaning set forth in Section 18(b).

“PBGC” shall mean the Pension Benefit Guaranty Corporation or any entity succeeding to
any or all of its functions under ERISA.

“Permitted Assignee” shall mean (i) each Buyer, each Support Party and any commercial
paper conduit administered by Deutsche Bank AG, New York Branch or its Affiliates, (ii) each other
Person who has been consented to as a potential assignee by NCMC (which consent shall not be
unreasonably withheld or delayed) and (iii) after the occurrence and during the continuance of an
Event of Default, any other Person.

“Qualified Buydown Loan” shall mean an Agency Conforming Mortgage Loan, Government
Mortgage Loan, Jumbo Prime Mortgage Loan or Alt-A Mortgage Loan containing a provision established
in accordance with the applicable Prime Underwriting Guidelines under which funds are deposited by
the Mortgagor, or anyone on behalf of the Mortgagor, into an account to be applied by or on behalf
of a Seller or its successors or assigns to periodic payments of such Mortgage Loan.

“Qualified Cash Account” shall mean, with respect to a Mortgage Loan, a segregated
deposit or investment account or accounts established by the applicable Seller and approved by the
Committed Buyer, as to which (i) all of a related Mortgagor’s right, title and interest in and to
such account or accounts and any funds deposited therein are subject to a first priority, valid,
subsisting, enforceable and perfected lien and security interest in favor of the Seller of such
Mortgage Loan and its successors and assigns securing such Mortgage Loan, (ii) immediately prior to
the sale of the related Mortgage Loan to a Buyer, a Seller is the sole owner and holder of such
lien and security interest and has full right to transfer, pledge and assign such lien and security
interest to a Buyer free and clear of any encumbrance, equity, participation interest, lien,
pledge, charge, claim or security interest (other than the interest of such Mortgagor therein in
accordance with the terms of the Mortgage Loan), and (iii) following the sale of such Mortgage Loan
to a Buyer hereunder, such Buyer will hold such lien and security interest free and clear of any
encumbrance, equity, participation interest, lien, pledge, charge, claim or security interest,
(other than the interest of such Mortgagor therein in accordance with the terms of the Mortgage
Loan and except any such security interest created pursuant to the terms of this Agreement).

“Qualified Escrow Holdback” shall mean provisions of an Agency Conforming Mortgage
Loan, Government Mortgage Loan, Jumbo Prime Mortgage Loan or Alt-A Mortgage Loan under which a
portion of the proceeds thereof or cash supplied by the Mortgagor, or any one on behalf of the
Mortgagor, or both are deposited into a Qualified Cash Account to be applied in accordance with the
applicable Prime Underwriting Guidelines and such Prime Mortgage Loan to fund the costs of
completing improvements to the Mortgaged Property.

“Person” shall mean any individual, corporation, company, voluntary association,
partnership, joint venture, limited liability company, trust, unincorporated association or
government (or any agency, instrumentality or political subdivision thereof).

“Plan” shall mean at a particular time, any employee benefit plan which is covered by
ERISA and in respect of which NCFC or a commonly controlled entity is (or, if such plan were
terminated at such time, would under Section 4069 of ERISA be deemed to be) an “employer” as
defined in Section 3(5) of ERISA.

“Post-Default Rate” shall have the meaning set forth in the Fee Letter.

“Price Differential” shall mean, with respect to any Purchased Asset and any date, the
aggregate amount obtained by daily application of the Pricing Rate for the Transaction to which
such Purchased Asset is subject to the Purchase Price for such Purchased Asset on a 360 day per
year basis for the actual number of days during the period commencing on (and including) the
Purchase Date for such Transaction and ending on (but excluding) such date of determination.

“Pricing Rate” shall have the meaning set forth in the Fee Letter.

“Prime Closed End Second Lien Mortgage Loan” shall mean a Mortgage Loan secured by a
mortgage, deed of trust or other instrument creating a second lien on the related Mortgaged
Property that is underwritten in accordance with the Prime Underwriting Guidelines for second lien
Mortgage Loans.

“Prime HELOC Mortgage Loan” shall mean a home equity revolving line of credit secured
by a mortgage, deed of trust or other instrument creating a second lien on the related Mortgaged
Property, which lien secures the related line of credit and that is underwritten in accordance with
the Prime Underwriting Guidelines for home equity revolving lines of credit.

“Prime Mortgage Loans” shall mean Agency Conforming Mortgage Loans, Government
Mortgage Loans, Jumbo Prime Mortgage Loans, Alt-A Mortgage Loans, Option ARM Mortgage Loans, Prime
HELOC Mortgage Loans, One Time Close Loans and Prime Closed End Second Lien Mortgage Loans.

“Prime Underwriting Guidelines” shall mean the underwriting guidelines of NCMC and the
other Sellers used in connection with the origination of the Prime Mortgage Loans, which
underwriting guidelines are attached hereto as Exhibit III-A, as revised from time to time.

“Property” shall mean any right or interest in or to property of any kind whatsoever,
whether real, personal or mixed and whether tangible or intangible.

“Purchased Assets” shall mean the Mortgage Loans (including any additional Mortgage
Loans transferred pursuant to Section 9(a)) sold by any Seller to a Buyer in a Transaction.

“Purchase Date” shall mean, with respect to any Purchased Assets, the date on which
such Purchased Assets are transferred by a Seller to a Buyer or its designee (including the
Custodian).

“Purchase Price” shall mean, with respect to any Eligible Mortgage Loans, the Asset
Value of such Eligible Mortgage Loans on the Purchase Date with respect thereto.

“Qualified Insurer” shall mean, with respect to any Mortgaged Property, an insurance
company duly qualified as such under the laws of the states in which the Mortgaged Property is
located, duly authorized and licensed in such states to transact the applicable insurance business
and to write the insurance provided, and acceptable to FNMA and FHLMC.

“Records” shall mean all instruments, agreements and other books, records, and reports
and data generated by other media for the storage of information maintained by Sellers, Servicer or
any other person or entity with respect to a Mortgage Loan. Records with respect to any Mortgage
Loan shall include the related Mortgage Note, Mortgage, Asset File, credit files and any other
instruments necessary to document or service such Mortgage Loan.

“REO Property” shall mean real property assets purchased or acquired by a Seller as a
result of foreclosure or deed in lieu of foreclosure of a mortgage or deed of trust.

“Repurchase Date” shall mean, with respect to any Purchased Assets, the date on which
the related Seller is to repurchase the Purchased Assets from a Buyer which will be the earliest of
(a) the Termination Date, (b) the date determined by application of Section 8 and (c) the date
specified pursuant to the Confirmation delivered pursuant to Section 3(b) or specified pursuant to
Section 3(f); provided that, in no event shall such date specified in this clause (c) be
later than the succeeding Distribution Date.

“Repurchase Price” shall mean, with respect to any Purchased Asset and any date, the
sum of (i) the Purchase Price with respect to such Purchased Asset plus (ii) the Price
Differential as of the date of such determination decreased, in the case of clauses (i) and (ii),
by all cash and Income on Purchased Assets actually received by such Buyer pursuant to Sections 9
and 12 plus (iii) any Breakage Costs due pursuant to Section 3(i) with respect to such
Purchased Asset.

“Responsible Officer” shall mean, as to any Person, the chairman, chief executive
officer, president or executive vice president or, with respect to certification of financial
matters, the chief financial officer or treasurer of such Person. As of the date hereof, the
Responsible Officers of the Sellers are set forth on Schedule E attached hereto, and each
Seller shall promptly notify Buyers of any change with respect to the identity of its Responsible
Officers.

“S&P” shall mean Standard & Poor’s Ratings Services and its successors.

“Second Mortgage Loan” shall mean a Prime Closed End Second Lien Mortgage Loan or
Subprime Closed End Second Lien Mortgage Loan Mortgage Loan.

“Securitization Transaction” shall mean an underwritten offering of securities issued
by a trust sponsored by NCFC or an Affiliate thereof and backed by assets that would meet the
criteria for Eligible Mortgage Loans or by substantially similar assets owned or acquired by NCFC
or its Affiliates.

“Seller” shall have the meaning set forth in the introductory paragraph to this
Agreement.

“Seller’s Designated Persons” shall mean the Persons listed on Schedule D-2 to
this Agreement.

“Servicer” shall mean (a) NCMC, (b) RBC Centura, (c) with respect to Option ARM
Mortgage Loans and HELOCs, Countrywide Home Loans, Inc. or (d) any other person acceptable to the
Buyers named in a Servicer Extension Notice in such Person’s capacity as servicer of the Purchased
Assets pursuant to Section 11.

“Servicer Extension Notice” shall have the meaning set forth in Section 11(a).

“Servicing Agreement” shall mean any agreement (other than the Custodial Agreement)
giving rise or relating to Servicing Rights with respect to a Purchased Asset, including any
assignment or other agreement relating to such agreement.

“Servicing Fee” shall have the meaning set forth in Section 11(b).

“Servicing File” shall mean, with respect to each Mortgage Loan, the file Servicer
retains consisting of originals of all documents which are not delivered to the Custodian and
copies of the documents in the related Asset File delivered to the Custodian.

“Servicing Records” shall have the meaning set forth in Section 11(c).

“Servicing Rights” shall mean contractual, possessory or other rights of a Seller or
any other Person, whether arising under the Servicing Agreement, the Custodial Agreement or
otherwise, to administer or service a Purchased Asset or to possess related Records.

“Settlement Account” shall mean the Settlement Account maintained pursuant to the
Custodial Agreement.

“Subprime First Lien Mortgage Loans” shall mean a first lien Mortgage Loan that is
underwritten in accordance with the Subprime Underwriting Guidelines.

“Subprime Closed End Second Lien Mortgage Loan” shall mean a Mortgage Loan secured by
a mortgage, deed of trust or other instrument creating a second lien on the related Mortgaged
Property that is underwritten in accordance with the Subprime Underwriting Guidelines for second
lien Mortgage Loans.

“Subprime HELOC Mortgage Loans” shall mean a home equity revolving line of credit
secured by a mortgage, deed of trust or other instrument creating a second lien on the related
Mortgaged Property, which lien secures the related line of credit and that is underwritten in
accordance with the Subprime Underwriting Guidelines for home equity revolving lines of credit.

“Subprime Mortgage Loans” shall mean Subprime First Lien Mortgage Loans, Subprime
HELOC Mortgage Loans and Subprime Closed End Second Lien Mortgage Loans.

“Subprime Underwriting Guidelines” shall mean the underwriting guidelines of NCMC and
the other Sellers used in connection with the origination of the Subprime Mortgage Loans, which
underwriting guidelines are attached hereto as Exhibit III-B, as revised from time to time.

“Subsidiary” shall mean, as to any Person, a corporation, partnership, limited
liability company or other entity of which shares or other ownership interests having ordinary
voting power (other than stock or such other ownership interests having such power only by reason
of the happening of a contingency) to elect a majority of the board of directors or other managers
of such corporation, partnership, limited liability company or other entity are at the time owned,
or the management of which is otherwise controlled, directly or indirectly through one or more
intermediaries, or both, by such Person.

“Support Facility” shall mean any liquidity or credit support agreement with a Conduit
Buyer which relates to this Agreement and the Transactions entered into by such Conduit Buyer
hereunder (including any agreement to purchase an assignment of or participation in such
Transactions).

“Support Party” shall mean any bank or other financial institution extending or having
a commitment to extend funds to or for the account of a Conduit Buyer (including by agreement to
purchase an assignment of or participation in Transactions of such Conduit Buyer) under a Support
Facility.

“Termination Date” shall have the meaning assigned in the Fee Letter.

“Total Recourse Indebtedness” shall mean, for any date, the aggregate Indebtedness of
NCFC and its consolidated Subsidiaries on a consolidated basis on such date less any
non-recourse Indebtedness of NCFC and its consolidated Subsidiaries which is rated by either S&P or
Moody’s or which is incurred in the ordinary course of business consistent with past practice.

“Transaction” shall have the meaning specified in the recitals to this Agreement.

“Transaction Documents” shall mean this Agreement, the NCFC Guaranty, the Custodial
Agreement, the Fee Letter, any Electronic Agent Agreement, any Servicing Agreement and all other
agreements entered into by any Seller or NCFC in connection with any Transaction.

“Trust Receipt” shall mean a trust receipt issued by the Custodian to a Buyer
confirming the Custodian’s possession of certain Asset Files which are the property of and held by
the Custodian for the benefit of such Buyer or the registered holder of such trust receipt.

“Underwriting Guidelines” shall mean the Prime Underwriting Guidelines and the
Subprime Underwriting Guidelines.

“Uniform Commercial Code” or “UCC” shall mean the Uniform Commercial Code, as
in effect from time to time in the relevant jurisdiction.

“Unutilized Credit Line” shall mean, with respect to any Purchased Asset which is a
HELOC or One Time Close Loans and on any date, the Available Credit Line with respect to such
Purchased Asset on such date minus the outstanding principal amount of such Purchased Asset on such
date.

“VA” shall mean the U.S. Department of Veterans Affairs, an agency of the United
States of America, or any successor thereto including the Secretary of Veterans Affairs.

“VA Loan” shall mean a Mortgage Loan which is subject of a VA Loan Guaranty Agreement
as evidenced by a loan guaranty certificate.

“VA Loan Guaranty Agreement” shall mean the obligation of the United States to pay a
specific percentage of a Mortgage Loan (subject to a maximum amount) upon default of the Mortgagor
pursuant to the Servicemen’s Readjustment Act, as amended.

“Wet-Ink Delivery Date” shall mean, with respect to any Wet-Ink Mortgage Loan, the
seventh Business Day following the related Purchase Date.

“Wet-Ink Funding Account” shall mean an account established in the name of the
Sellers, subject to the dominion and control of the Buyers, at the Custodian pursuant to the terms
of the Custodial Agreement.

“Wet-Ink Mortgage Loan” shall mean an Eligible Mortgage Loan which the related Seller
is selling to a Buyer simultaneously with the origination thereof, or for which the Custodian is
not in possession of the related Mortgage Note.

“Wet-Ink Limit” shall mean (i) other than during the first and last five Business Days
of any calendar month, 40% of the Maximum Aggregate Purchase Price and (ii) during the first and
last five Business Days of any calendar month, 50% of the Maximum Aggregate Purchase Price.

“Wiring Schedule” shall have the meaning set forth in Section 3(h)(iii)(1).

2. Fee Letter. The Sellers agree to pay to Buyers on or prior to the dates set forth
in the Fee Letter the fees set forth therein.

3. Transactions: Initiation; Confirmation; Termination; Maximum Transaction Amounts. 

	 	(a)	 	Subject to the terms and conditions of this Agreement and the
other Transaction Documents, this Agreement is a commitment by the Committed
Buyer to purchase from Sellers certain Eligible Mortgage Loans and the
Committed Buyer agrees to enter into Transactions from time to time with any
Seller, provided the aggregate Purchase Price for all Purchased Assets
at any one time subject to then outstanding Transactions shall not exceed the
Maximum Aggregate Purchase Price minus the aggregate Unutilized Credit Line
with respect to all Purchased Assets which are HELOCs or One Time Close Loans.

	 	(b)	 	An agreement to enter into a Transaction may be entered into in
writing (a “Confirmation”) at the initiation of either a Buyer or a
Seller. The Purchase Price for any Transaction shall exceed $1,000,000. Each
Confirmation shall specify the Purchase Date, the Purchase Price and the
Repurchase Date for the related Transaction, provided that a
Confirmation with respect to Wet-Ink Mortgage Loans need only contain the
information required by paragraph (h) of this Section 3. Any Confirmation,
together with this Agreement, shall constitute conclusive evidence of the terms
agreed to between a Buyer and a Seller with respect to the Transaction to which
the Confirmation relates. In the event of any conflict between this Agreement
and a Confirmation, the terms of the Confirmation shall control with respect to
the related Transaction.

	 	(c)	 	Before 4:00 p.m. (New York City time) on the second Business
Day prior to any Purchase Date or any substitution and/or addition of Eligible
Mortgage Loans pursuant to Section 9, the related Seller shall deliver to the
applicable Buyer via electronic modem or computer tape the information related
to the Eligible Mortgage Loans to be so purchased or substituted, including,
without limitation, the tape fields as set forth in Annex I of the Custodial
Agreement, provided that the foregoing shall not apply to Wet-Ink
Mortgage Loans.

	 	(d)	 	At least one Business Day prior to any Purchase Date or any
substitution and/or addition of Eligible Mortgage Loans pursuant to Section 9,
the related Seller shall cause the Custodian to deliver to the applicable Buyer
by telecopier (with hard copy to follow promptly) a Trust Receipt for the
Eligible Mortgage Loans to be so purchased or substituted, provided
that the foregoing shall not apply to Wet-Ink Mortgage Loans.

	 	(e)	 	In the case of Transactions terminable upon demand, such demand
shall be made by the applicable Buyer or Seller by telephone or otherwise
(confirmed by fax), no later than 1:00 p.m. (New York City time) on the
Business Day prior to the day on which such termination will be effective.

	 	(f)	 	If the Repurchase Date with respect to any Transaction is a
Distribution Date, unless the related Buyer is otherwise notified by the
applicable Seller at least one (1) Business Day prior to any such Repurchase
Date, the Purchased Assets with respect to such Transaction shall automatically
become the subject of a new Transaction so long as the conditions precedent set
forth in clauses (ii) through (iv) of Section 15(b) are satisfied with respect
thereto. The Purchase Price with respect to each such new Transaction shall be
equal to the outstanding Purchase Price of the preceding Transaction after
giving effect to all distributions with respect thereto pursuant to Section 12
on such Distribution Date and the Repurchase Date with respect thereto shall be
the succeeding Distribution Date, provided that if the Repurchase Date
so determined is later than the Termination Date, the Repurchase Date for such
Transaction shall automatically reset to the Termination Date.

	 	(g)	 	If not automatically subject to a new Transaction on the
Repurchase Date pursuant to paragraph (f), on the Repurchase Date, termination
of the Transaction will be effected by transfer to the related Seller or its
designee of the Purchased Assets (and any Income in respect thereof received by
the applicable Buyer not previously credited or transferred to, or applied to
the obligations of, such Seller pursuant to Section 12) against the
simultaneous transfer of the Repurchase Price to an account of such Buyer.
Each obligation to repurchase exists without regard to any prior or intervening
liquidation or foreclosure with respect to any Purchased Loan. The aggregate
Repurchase Price payable on any Repurchase Date shall exceed $1,000,000 (or
such lesser amount as shall represent the aggregate Repurchase Price for all
Purchased Assets then subject to outstanding Transactions). The related Seller
shall obtain the Asset File related to the Transaction from such Buyer or its
designee at such Seller’s expense.

	 	(h)	 	With respect to each Wet-Ink Mortgage Loan:

	 	i.	 	At least one Business Day prior to the related
Purchase Date, the related Seller shall deliver to applicable Buyer a
notice in the form of an e-mail, fax or other writing acceptable to the
related Seller as to the approximate outstanding principal balance of
Wet-Ink Mortgage Loans to be sold to such Buyer on such Purchase Date,
and the approximate amount of the related Purchase Price (the
“Estimated Purchase Price”);

	 	ii.	 	No later than the related Purchase Date, the
related Seller shall deliver to applicable Buyer a schedule setting
forth the mortgage loan identification number, the Mortgagor name, the
outstanding principal balance of Wet-Ink Mortgage Loans to be sold to
such Buyer on such Purchase Date and the amount of the related Purchase
Price (the “Actual Purchase Price”). On the related Purchase
Date, the applicable Buyer shall remit the amount of the Estimated
Purchase Price directly to the Wet-Ink Funding Account to be disbursed
by the Custodian in accordance with the Custodial Agreement.

	 	iii.	 	With respect to Wet-Ink Mortgage Loans which
are being funded in whole or in part by means of:

	 	(1)	 	wire transfer, on or prior to the
related Purchase Date, the related Seller shall provide to
applicable Buyer a schedule (the “Wiring Schedule”)
setting forth the loan identification number, the loan amount to
be funded by wire transfer and wiring directions for each
Wet-Ink Mortgage Loan (provided, that the Sellers shall provide
such a Wiring Schedule to the Buyers not more than four (4)
times per Purchase Date). Upon receipt by applicable Buyer of
the Wiring Schedule, such Buyer shall forward the Wiring
Schedule and direct the Custodian to wire the related funding
amount to each Mortgagor from the Disbursement Account or other
account established pursuant to the Custodial Agreement; or

	 	(2)	 	one or more checks, Buyer shall
review the Mortgage Loan Schedule and the Exceptions Report with
respect to each Wet-Ink Mortgage Loan on each day.

	 	(i)	 	If a Seller repurchases Purchased Assets on any day which is
not a Repurchase Date for such Purchased Assets, such Seller shall indemnify
the related Buyer and hold such Buyer harmless from any losses, costs and/or
expenses which such Buyer may sustain or incur arising from the reemployment of
funds obtained by such Buyer hereunder or from fees payable to terminate the
deposits from which such funds were obtained (“Breakage Costs”), in
each case for the remainder of the applicable 30 day period. Such Buyer shall
deliver to such Seller a statement setting forth the amount and basis of
determination of any Breakage Costs in such detail as determined in good faith
by such Buyer to be adequate, it being agreed that such statement and the
method of its calculation shall be adequate and shall be conclusive and binding
upon such Seller, absent manifest error. The provisions of this Section 3(i)
shall survive termination of this Agreement and the repurchase of all Purchased
Assets subject to Transactions hereunder.

4. Representations and Warranties. Each Seller represents and warrants to the Buyers
that:

	 	(a)	 	General Representations and Warranties. Throughout the
term of this Agreement, each of the representations and warranties specified on
Schedule A attached hereto are true and correct in all material
respects.

	 	(b)	 	Representations and Warranties as to Mortgage Loans.
As of the related Purchase of any Mortgage Loan, each of the representations
and warranties specified on Schedule B attached hereto is true and
correct as to each of the related Mortgage Loans in all material respects; and,
with respect to each Purchase Date, each related Mortgage Loan is an Eligible
Mortgage Loan.

If a Seller breaches a representation or warranty specified on Schedule B attached
hereto or as set forth above with respect to any Purchased Asset, the related Buyer shall have the
right to accelerate to a date designated by such Buyer the related Repurchase Date of the directly
affected Mortgage Loan if such breach has not been cured in all material respects at the expiration
of 5 Business Days following the notice to or discovery thereof by a Responsible Officer of such
Seller.

5. Security Releases; Confirmations. With respect to each Transaction, the related
Seller shall deliver to the related Buyer no later than the related Purchase Date, one or more
security release certifications, if applicable and in the form of Exhibit II hereto, certifying the
release of any security interest of a third party which may have existed with respect to any of the
Mortgage Loans subject to such Transaction immediately prior to such Purchase Date unless such
Seller has delivered to the related Buyer a bailee letter evidencing such release, in form and
substance reasonably acceptable to such Buyer.

6. Title; Recordation of Mortgage Loans. Title to all Purchased Assets shall pass to
the related Buyer and such Buyer shall have free and unrestricted use of all Purchased Assets.
Nothing in this Agreement shall preclude a Buyer from engaging in repurchase transactions with the
Purchased Assets or otherwise pledging, repledging, hypothecating, or rehypothecating the Purchased
Assets, but no such transaction shall relieve such Buyer of its obligations to transfer Purchased
Assets to the related Seller pursuant to Section 3. Nothing contained in this Agreement shall
obligate a Buyer to segregate any Purchased Assets delivered to such Buyer by the Sellers.

Upon and during the continuance, but not prior to, an Event of Default and the expiration of
the related cure period or upon the failure of any Seller to repurchase any Purchased Asset on the
related Repurchase Date, the related Buyer may record any of such Purchased Asset in its name or
the name of its agent and may resell the Purchased Asset, with the right to record given to the
purchaser.

7. Events of Default. The occurrence of any of the following shall constitute an
“Event of Default” (each of which shall be deemed to continue until Buyers notify Sellers
that such Event of Default has been waived):

	 	(a)	 	Any Buyer shall reasonably request, specifying the reasons for
such request, information, and/or written responses to such requests, regarding
the financial well-being of any Seller or NCFC and such information and/or
responses shall not have been provided to the requesting party within 30 days
after such request;

	 	(b)	 	A Change of Control shall occur;

	 	(c)	 	There is (A) a material breach by any Seller or NCFC of any
material representation and warranty contained in this Agreement or any other
Transaction Document (other than a representation or warranty relating to a
particular Mortgage Loan unless the related Seller shall have made any such
representations and warranties with knowledge that they were materially false
or misleading at the time made), or (B) a failure by any Seller to repurchase
the related Purchased Assets on the related Repurchase Date or the related
Termination Date or to cure a Margin Deficit in the time permitted under
Section 9 or (C) a failure by any Seller to make any other payment payable by
it hereunder or (D) any other failure by any Seller or NCFC to observe and
perform in any material respect its material covenants, agreements and
obligations with Buyers contained in this Agreement or any other Transaction
Document to which it is a party, and such failure has not been cured in all
material respects at the expiration of five (5) Business Days following notice
to or discovery thereof by such Seller or NCFC;

	 	(d)	 	If any Seller or NCFC shall make an assignment for the benefit
of creditors, or admit in writing its inability to pay debts as they become
due, or generally not pay its debts as they become due, or file any petition,
application or answer seeking for itself any entry of an order for relief,
protective decree, reorganization, arrangement, composition, readjustment,
liquidation, dissolution or similar relief under the Bankruptcy Code or any
other federal, state or foreign, present or future, statute, law or regulation,
or be subject to any such order for relief or protective decree entered by a
court, or file any answer admitting or not controverting the material
allegations of such a petition or application filed against any Seller or NCFC,
or seek or acquiesce in the appointment or designation of, or taking possession
by, any trustee, receiver, custodian, examiner, liquidator or agent in respect
of all or a substantial part of the property of any Seller or NCFC, or the
trustees, directors, majority shareholders, partners or other principals, as
the case may be, of any Seller or NCFC thereof shall take any action looking to
the dissolution or liquidation of any Seller or NCFC or to the taking of any
action described in this subsection (e);

	 	(e)	 	If an action shall be commenced or a petition or application
shall be filed against any Seller or NCFC seeking any order for relief,
protective decree, reorganization, arrangement, winding-up, composition,
readjustment, liquidation, dissolution or similar relief under the Bankruptcy
Code, Securities Investor Protection Act or any federal, state or foreign
present or future statute, law or regulation and such action, petition or
application shall not have been dismissed or all orders or proceedings
thereunder stayed or vacated, or such stay shall be set aside, in each instance
for a period of 60 or more days, or any trustee, receiver, custodian, examiner,
liquidator or agent of all or a substantial part of the property of any Seller
or NCFC shall be appointed or designated and such appointment or designation
shall not have been vacated;

	 	(f)	 	If the uninsured portion of any judgment for the payment of
money is in excess of (x) in the case of NCFC, $25,000,000 or (y) in the case
of any Seller, $10,000,000, shall be entered or rendered against a Seller or
NCFC, or NCFC or a Seller, as the case may be, shall have received notice of
such judgment and such judgment shall not have been discharged in full or
effectively stayed as to enforcement and execution after the passage of 60 days
following the date on which it is entered;

	 	(g)	 	If any Seller or NCFC shall default (as principal, guarantor or
surety) in the payment of any principal or interest on any indebtedness in
excess of (x) in the case of NCFC, individually or in the aggregate,
$25,000,000 or (y) in the case of a Seller, $10,000,000, or in the performance
of or compliance with any agreement, instrument or other writing evidencing
such indebtedness or delivered pursuant thereto or in connection therewith,
which default shall have continued beyond any applicable period of grace and
would permit the holder of such indebtedness to accelerate payment of the
principal thereof;

	 	(h)	 	Any Seller or NCFC shall admit its inability to, or intention
not to, perform in any material respect any of its obligations under any of the
Transaction Documents to which it is a party;

	 	(i)	 	This Agreement shall for any reason not create or cease to
create a valid, perfected first priority security interest or ownership
interest upon transfer of the Purchased Assets purported to be covered hereby,
or any Seller shall grant, or suffer to exist, any Lien on any Purchased Assets
except (i) the Liens contemplated hereby and (ii) any Lien on Sellers’ Hedges
with respect to Prime Mortgage Loans which is (A) granted to any Person
entering into a repurchase agreement or loan agreement with respect to Prime
Mortgage Loans of the Sellers which are not subject to Transactions hereunder
and (B) pari passu with or junior to the Lien of the Buyers on the Sellers’
Hedges;

	 	(j)	 	The Custodial Agreement or any other Transaction Document shall
for any reason cease to be in full force and effect (other than, with respect
to the Custodial Agreement, a voluntary termination thereof, provided, that a
custodial agreement in form and substance reasonably acceptable to Committed
Buyer in its sole discretion with a successor custodian acceptable to Committed
Buyer in its sole discretion has been entered into);

	 	(k)	 	NCFC shall fail to pay when due any amounts owing under the
NCFC Guaranty or shall fail to satisfy any financial covenant set forth on
Schedule C;

	 	(l)	 	Any Seller shall fail to instruct Servicer to promptly commence
transferring servicing to the successor servicer designated by a Buyer pursuant
to Section 11 hereof following such Buyer’s instruction or Servicer shall fail
to fully transfer servicing to a successor servicer designated by such Buyer
pursuant to Section 11 hereof within 30 Business Days following such Buyer’s
instruction; or

	 	(m)	 	A Seller fails to transfer the Purchased Assets to Buyer on the
Purchase Date if Buyer has tendered the Purchase Price therefor;

	 	(n)	 	Any Governmental Authority or any person, agency or entity
acting or purporting to act under governmental authority shall have taken any
action to condemn, seize or appropriate, or to assume custody or control of,
all or any substantial part of the Property of a Seller, the Guarantor or the
Servicer, or to curtail in any material respect its authority in the conduct of
the business of a Seller, the Guarantor or the Servicer, or takes any action in
the nature of enforcement to remove, limit or restrict the approval of a
Seller, the Guarantor or the Servicer as an issuer, buyer or a seller or, in
the case of the Servicer, a servicer of Mortgage Loans or securities backed
thereby;

	 	(o)	 	NCFC’s audited annual financial statements or the notes thereto
or other opinions or conclusions stated therein shall be qualified or limited
by reference to the status of NCFC or any Seller as a “going concern” or a
reference of similar import;

	 	(p)	 	Any default by a Seller resulting in a Material Adverse Effect
shall have occurred and be continuing under a Servicing Agreement;

	 	(q)	 	Any change of a servicer of the Mortgage Loans without the
prior consent of the Buyers;

	 	(r)	 	The failure of NCFC at any time to continue to be (i) qualified
as a real estate investment trust as defined in Section 856 of the Code and
(ii) entitled to a dividend paid deduction under Section 857(b) of the Code
with respect to dividends paid by it with respect to each taxable year for
which it claims a deduction on its Form 1120 – REIT filed with the United
States Internal Revenue Service for such year, or the entering into by NCFC of
any material “prohibited transactions” as defined in Section 857(b) of the
Code; or

	 	(s)	 	The failure of NCFC to satisfy any of the following asset or
income tests. For purposes of these tests, NCFC’s gross income and the value
of the NCFC’s total assets are inclusive of the gross income and the value of
the total assets of any qualified REIT subsidiaries of NCFC (within the meaning
of Section 856(i) of the Code):

(i) At the close of each taxable year, at least 75 percent of NCFC’s gross
income consists of (A) “rents from real property” within the meaning of
Section 856(c)(3)(A) of the Code, (B) interest on obligations secured by
mortgages on real property or on interests in real property, within the
meaning of Section 856(c)(3)(B) of the Code, (C) gain from the sale or other
disposition of real property (including interests in real property and
interests in mortgages on real property) which is not property described in
Section 1221(a)(1) of the Code, within the meaning of Section 856(c)(3)(C)
of the Code, (D) dividends or other distributions on, and gain (other than
gain from “prohibited transactions” within the meaning of Section
857(b)(6)(B)(iii) of the Code) from the sale or other disposition of,
transferable shares (or transferable certificates of beneficial interest) in
other qualifying REITs within the meaning of Section 856(c)(3)(D) of the
Code, and (E) amounts described in Sections 856(c)(3)(E) through
856(c)(3)(I) of the Code;

(ii) At the close of each taxable year, at least 95 percent of NCFC’s gross
income consists of (A) the items of income described in Section 7(s)(i)
hereof (other than those described in Section 856(c)(3)(I) of the Code), (B)
gain realized from the sale or other disposition of stock or securities
which are not property described in Section 1221(a)(1) of the Code, (C)
interest, and (D) dividends, in each case within the meaning of Section
856(c)(2) of the Code;

(iii) At the close of each quarter of each of NCFC’s taxable years, at
least 75 percent of the value of NCFC’s total assets (as determined in
accordance with Treasury Regulations Section 1.856-2(d)) consists of real
estate assets within the meaning of Sections 856(c)(4) and 856(c)(5)(B) of
the Code, cash and cash items (including receivables which arise in the
ordinary course of NCFC’s operations, but not including receivables
purchased from another person), and government securities; and

(iv) At the close of each quarter of each of NCFC’s taxable years, (A) not
more than 25 percent of the value of NCFC’s total assets is represented by
securities (other than securities includible in Section 7(s)(iii) hereof and
securities of one or more qualified REIT subsidiaries (within the meaning of
Section 856(i) of the Code)), (B) not more than 20 percent of the value of
NCFC’s total assets is represented by securities of one or more taxable REIT
subsidiaries, and (C) other than securities includible in Section 7(s)(iii)
hereof, securities of qualified REIT subsidiaries (within the meaning of
Section 856(i) of the Code), and securities of taxable REIT subsidiaries,
(I) not more than 5 percent of the value of NCFC’s total assets is
represented by securities of any one issuer, and (II) neither NCFC nor any
of its qualified REIT subsidiaries (within the meaning of Section 856(i) of
the Code) hold securities possessing more than 10 percent of either the
total voting power or the total value of the outstanding securities of any
one issuer.

8. Buyer Remedies. Upon the occurrence and during the continuance of an Event of
Default, each Buyer, at its option (which option shall be deemed to have been exercised immediately
upon the occurrence of an Event of Default pursuant to Section 7(d) or (e) hereof and shall be
deemed to be an election to exercise the right described in clause (b) of this Section 8), shall
have any or all of the following rights and remedies, which may be exercised by such Buyer:

	 	(a)	 	Terminate and accelerate to a date designated by such Buyer,
the Repurchase Date of each directly affected Transaction with such Buyer; or

	 	(b)	 	Terminate and accelerate to a date designated by such Buyer the
Repurchase Date of all Transactions with such Buyer hereunder.

If a Buyer exercises or is deemed to have exercised the option to accelerate the Repurchase
Date of any or all Transactions, (i) the Sellers’ obligations in such Transactions to repurchase
all Purchased Assets, at the Repurchase Price therefor on such accelerated Repurchase Date, shall
thereupon become immediately due and payable, (ii) all Income paid after such exercise or deemed
exercise shall be retained by such Buyer and applied, in such Buyer’s sole discretion, to the
aggregate unpaid Repurchase Prices for all outstanding Transactions and any other amounts owing by
the Sellers hereunder, and (iii) the Sellers shall immediately deliver to Buyer the Asset Files
relating to any Purchased Assets subject to such Transactions then in the Sellers’ possession or
control.

Each Buyer may, on or following the first Business Day following the date on which the
Repurchase Price with respect to any Transaction became due and payable pursuant to this Section 8
above, (A) sell, on a servicing-released basis, without notice or demand of any kind, at a public
or private sale and at such price or prices as such Buyer may reasonably deem satisfactory any or
all Purchased Assets subject to such Transaction or (B) in its sole discretion elect, in lieu of
selling all or a portion of such Purchased Assets, to give the related Seller credit for such
Purchased Assets in an amount equal to the Market Value of such Purchased Assets (as determined by
such Buyer) against the aggregate unpaid related Repurchase Price and any other amounts owing by
such Seller hereunder, upon which application the Repurchase Price or any such other amounts shall
be reduced by the amount as applied and such Buyer shall be released from any obligation to sell,
return or redeliver such Purchased Assets. If any Purchased Assets remain after all obligations to
Buyers of the Sellers under this Agreement have been satisfied, Buyers or their agent shall
promptly return to the Sellers or their agent the balance of such Purchased Assets less any costs
or expenses incurred by Buyers in enforcing their rights to the Purchased Assets under this
Agreement.

Buyers may apply any proceeds from the liquidation of the Purchased Assets to the Repurchase
Prices hereunder and all other obligations of the Sellers in the manner the Buyers deem appropriate
in their sole discretion.

Upon the occurrence and during the continuance of an Event of Default, each Buyer shall have,
except as otherwise expressly provided in this Agreement, the right to exercise any of its rights
and/or remedies without presentment, demand, protest or further notice of any kind other than as
expressly set forth herein, all of which are hereby expressly waived by each Seller.

Each Seller hereby authorizes each Buyer to file such financing statement or statements
relating to the Purchased Assets without such Seller’s signature thereon as such Buyer at its
option may deem appropriate, and appoints such Buyer as such Seller’s attorney-in-fact to execute
any such financing statement or statements in such Seller’s name and to perform all other acts
which such Buyer deems appropriate to perfect and continue the lien and security interest granted
hereby and, upon the occurrence and during the continuance of an Event of Default, to protect,
preserve and realize upon the Purchased Assets, including, but not limited to, the right to endorse
notes, complete blanks in documents and execute assignments on behalf of such Seller as its
attorney-in-fact. This power of attorney is coupled with an interest and is irrevocable without
such Buyer’s consent. Each Buyer may enforce its security interest in the Purchased Assets.

Because each Seller recognizes that it may not be possible to purchase or sell all of the
Purchased Assets on a particular Business Day, or in a transaction with the same purchaser, or in
the same manner because the market for such Purchased Assets may not be liquid, each Seller agrees
that liquidation of the Purchased Assets does not require a public purchase or sale and that a good
faith private purchase or sale shall be deemed to have been made in a commercially reasonable
manner. Accordingly, a Buyer may elect, in such Buyer’s sole discretion, the time and manner of
liquidating any Purchased Assets and nothing contained herein shall (A) obligate such Buyer to
liquidate any Purchased Assets on the occurrence of an Event of Default or to liquidate all
Purchased Assets in the same manner or on the same Business Day or (B) constitute a waiver of any
of Buyer’s rights or remedies. However, in recognition of each Buyer’s agreement that the
transactions hereunder have been entered into in consideration of and in reliance upon the fact
that all Transactions hereunder constitute a single business and contractual relationship and that
each Transaction has been entered into in consideration of the other Transactions, each Buyer
agrees that it shall use its best efforts to liquidate all Purchased Assets hereunder upon the
occurrence and during the continuance of an Event of Default as quickly as is prudently possible in
such Buyer’s reasonable judgment.

To the extent permitted by applicable law, the Sellers shall be liable to the Buyers for
interest on any amounts owing by the Sellers hereunder, from the date the Sellers becomes liable
for such amounts hereunder until such amounts are (i) paid in full by the Sellers or (ii) satisfied
in full by the exercise of Buyers’ rights hereunder. Interest on any sum payable by the Sellers
under this paragraph shall be at a rate equal to the Post-Default Rate.

Each Buyer shall, without regard to the adequacy of the security for any Seller’s obligations
under this Agreement, be entitled to the appointment of a receiver by any court having
jurisdiction, without notice, to take possession of and protect, collect, manage, liquidate, and
sell the Purchased Assets or any portion thereof; and collect the payments due with respect to the
Purchased Assets or any portion thereof. The Sellers shall pay all costs and expenses incurred by
each Buyer in connection with the appointment and activities of such receiver.

Each Buyer may obtain an injunction or an order of specific performance to compel each Seller
to fulfill its obligations, if such Seller fails or refuses to perform their obligations as set
forth therein.

Each Buyer shall have the right to direct all servicers then servicing any Purchased Assets to
remit all collections thereon to such Buyer, and if any such payments are received by any Seller,
the Sellers shall not commingle the amounts received with other funds of the Sellers and shall
promptly pay them over to Buyers. Each Buyer shall also have the right to terminate any one or all
of the servicers then servicing any Purchased Assets with or without cause.

The Sellers shall be liable to Buyers for the amount of all expenses, including reasonable
legal or other expenses incurred by Buyers in connection with or as a consequence of an Event of
Default.

Upon the occurrence and during the continuance of an Event of Default, each Buyer may, at its
option and at the Sellers’ expense, using its reasonable business judgment, enter into one or more
Hedges covering all or a portion of the Purchased Assets, and the Sellers shall be responsible for
all damages, judgments, costs and expenses of any kind which may be imposed on, incurred by or
asserted against the Buyers relating to or arising out of such Hedges; including, without
limitation, any losses resulting from such Hedges.

Each Buyer shall have all the rights and remedies provided herein, provided by applicable
federal, state, foreign, and local laws (including, without limitation, the rights and remedies of
a secured party under the Uniform Commercial Code of the State of New York, to the extent that the
Uniform Commercial Code is applicable, and the right to offset any mutual debt and claim), in
equity, and under any other agreement between Buyers and Sellers.

Each Seller recognizes that a Buyer may be unable to effect a public sale of any or all of the
Purchased Assets, by reason of certain prohibitions contained in the applicable federal securities
laws and applicable state securities laws or otherwise, and may be compelled, in such Buyer’s
opinion to resort to one or more private sales thereof to a restricted group of purchasers which
will be obliged to agree, among other things, to acquire such securities for their own account for
investment and not with a view to the distribution or resale thereof.

Each Seller acknowledges and agrees that any such private sale may result in prices and other
terms less favorable than if such sale were a public sale and, notwithstanding such circumstances,
agree that any such private sale shall be deemed to have been made in a commercially reasonable
manner. No Buyer shall be under any obligation to delay a sale of any of the Purchased Assets for
the period of time necessary to permit any Seller to register such securities for public sale under
the federal securities laws, or under applicable state securities laws, even if such Seller would
agree to do so.

Each Seller further agrees to use reasonable efforts to do or cause to be done all such other
acts as may be reasonably necessary to make any sale or sales of all or any portion of the
Purchased Assets pursuant to this Agreement valid and binding and in compliance with any and all
other applicable laws other than registration under applicable securities laws.

Each Seller further agrees that a breach of any of the covenants contained in this Section 8
will cause irreparable injury to Buyers, that it has no adequate remedy at law in respect of such
breach and, as a consequence, that each and every covenant contained in this Section 8 shall be
specifically enforceable against such Seller, and each Seller hereby waives and agrees not to
assert any defenses against an action for specific performance of such covenants except for a
defense that no Event of Default has occurred under the Agreement.

No failure on the part of any Buyer to exercise, and no delay in exercising, any right, power
or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise by
such Buyer of any right, power or remedy hereunder preclude any other or further exercise thereof
or the exercise of any other right, power or remedy. All rights and remedies of any Buyer provided
for herein are cumulative and in addition to any and all other rights and remedies provided by this
Agreement and the other instruments and agreements contemplated hereby and thereby, and are not
conditional or contingent on any attempt by such Buyer to exercise any of its rights under any
other related document. Each Buyer may exercise at any time after the occurrence and during the
continuance of an Event of Default one or more remedies, as it so desires, and may thereafter at
any time and from time to time exercise any other remedy or remedies provided by this Agreement and
the other instruments and agreements contemplated hereby and thereby.

9. Margin Calls.

	 	(a)	 	If at any time the aggregate Repurchase Price of all Purchased
Assets subject to all Transactions is greater than the aggregate Asset Value of
all Purchased Assets subject to all such Transactions (a “Margin
Deficit”), then any Buyer may by notice to the Sellers require the Sellers
to transfer to such Buyer or its designee (including the Custodian) Eligible
Mortgage Loans (“Additional Eligible Mortgage Loans”) or cash, at such
Buyer’s discretion, so that the aggregate Repurchase Price of the Purchased
Assets, including any such Additional Eligible Mortgage Loans, will thereupon
be less than the sum of such cash and the aggregate Asset Value, including any
such Additional Eligible Mortgage Loans (such requirement, a “Margin
Call”).

	 	(b)	 	Notice required pursuant to Section 9(a) above may be given in
writing by any means and the related Margin Call shall be satisfied by the
Sellers prior to 4:00 p.m., New York City time, on the Business Day following
such notice. The failure of a Buyer, on any one or more occasions, to exercise
its rights hereunder, shall not change or alter the terms and conditions to
which this Agreement is subject or limit the right of such Buyer to do so at a
later date. Sellers and Buyers each agree that a failure or delay by a Buyer
to exercise its rights hereunder shall not limit or waive such Buyer’s rights
under this Agreement or otherwise existing by law or in any way create
additional rights for Sellers.

10. Delivery of Documents. 

	 	A.	 	Mortgage Loan Schedule (Dry Loans). The Mortgage Loans (other than
Wet-Ink Mortgage Loans) to be transferred under a particular Transaction shall be
identified on a detailed listing to be provided by the related Seller to the applicable
Buyer (each, a “Mortgage Loan Schedule”) by diskette or via modem or e-mail.
The Mortgage Loan Schedule shall be delivered to such Buyer not later than 4:00 p.m.,
New York City time, on the second Business Day prior to the related Purchase Date for
the related Mortgage Loans. The documents contained in the Asset File shall be
delivered to the Custodian and held by the Custodian pursuant to the terms of the
Custodial Agreement pursuant to which the Custodian shall, among other things, issue
Trust Receipts. As a condition to closing any Transaction involving Mortgage Loans on
any Purchase Date, the Custodian shall have delivered to such Buyer a Trust Receipt in
the form attached to the Custodial Agreement. The transfer of such Mortgage Loans for
the purposes of this Section 10(a) shall include the delivery to the Custodian of the
following documents (the “Asset File”) with respect to each Mortgage Loan
(other than Wet-Ink Mortgage Loans), as set forth in the Custodial Agreement:

	 	(a)	 	the original Mortgage Note bearing all intervening
endorsements, endorsed “Pay to the order of      , without
recourse,” and signed in the name of the Seller by an authorized officer (which
signature may be a mechanical or facsimile signature);

	 	(b)	 	the original Mortgage with evidence of recording thereon;

	 	(c)	 	if the Mortgage was executed pursuant to a power of attorney,
the original recorded power of attorney;

	 	(d)	 	other than with respect to Mortgage Loans which are registered
on the MERS System, the original unrecorded assignment of the Mortgage for each
Mortgage Loan executed by the related Seller in blank and without recourse;

	 	(e)	 	the originals of all intervening assignments of mortgage with
evidence of recording thereon, or the original unrecorded intervening
assignments of the Mortgage, if any;

	 	(f)	 	the originals of all assumption, modification, consolidation or
extension agreements (with evidence of recording thereon if required ), if
provided;

	 	(g)	 	the original mortgagee title insurance policy, commitment to
insure, preliminary title report, or attorney’s opinion of title and abstract
of title;

	 	(h)	 	the original of any security agreement, chattel mortgage or
equivalent document executed in connection with the mortgage, if provided; and

	 	(i)	 	the original of any guarantee executed in connection with the
Mortgage Note, if provided;

provided, that, in connection with Cooperative Loans, the Asset File shall
include the following:

	 	(a)	 	the original Mortgage Note bearing all intervening
endorsements, endorsed “Pay to the order of      , without
recourse,” and signed in the name of the Seller by an authorized officer (which
signature may be a mechanical or facsimile signature);

	 	(b)	 	the original security agreement;

	 	(c)	 	if the security agreement was executed pursuant to a power of
attorney, the original recorded power of attorney;

	 	(d)	 	the proprietary lease or occupancy agreement, if provided;

	 	(e)	 	the recognition agreement executed by the related cooperative
housing corporation, if provided;

	 	(f)	 	the originals of all assumption, modification, consolidation or
extension agreements (with evidence of recording thereon if required), if
provided;

	 	(g)	 	an executed loan or equivalent financing agreement, if
provided;

	 	(h)	 	the relevant stock certificate and related blank stock powers,
if provided or if the possession thereof is permitted or required to perfect by
means of control a lender’s security interest in the related cooperative
 shares; and

	 	(i)	 	the original of any guarantee executed in connection with the
Mortgage Note, if provided.

Notwithstanding anything to the contrary contained in this Section 10(a), in those
instances where either (x) the public recording office has not returned the original
mortgage, power of attorney or assignment of mortgage or (y) the public recording
office retains the original mortgage, power of attorney or assignment of mortgage
after it has been recorded or such document has been lost, the obligations of the
Sellers hereunder and under the Custodial Agreement shall be deemed to have been
satisfied upon (1) delivery by the related Seller to the Custodian of a copy of such
mortgage, power of attorney or assignment of mortgage certified by such Seller in
the case of (x) above or the public recording office in the case of (y) above to be
a true and complete copy of the recorded original thereof and (2) if such copy is
certified by such Seller delivery to the Custodian, promptly upon receipt thereof of
either the original or a copy of such document certified by the public recording
office to be a true and complete copy of the original. Upon delivery to a Seller
(x) by the public recording office of any recorded original mortgage, power of
attorney or assignment of mortgage or (y) by a title insurance or escrow company of
any lender’s title insurance policy, such Seller promptly shall (and in no event
later than five Business Days following such receipt) deliver such document to the
Custodian.

	 	B.	 	Payment, Transfer and Custody With Respect to Transactions.

	 	(a)	 	Unless otherwise mutually agreed in writing, all transfers of
funds in connection with Transactions hereunder shall be in immediately
available funds.

	 	(b)	 	On the Purchase Date for each Transaction, ownership of the
Purchased Assets shall be transferred to the related Buyer or its designee
(including the Custodian) against the simultaneous transfer of the Purchase
Price to an account of the related Seller specified in writing by such Seller
to the Buyers. The related Seller, simultaneously with the delivery to such
Buyer or its designee (including the Custodian) of the Purchased Assets
relating to each Transaction hereby sells, transfers, conveys and assigns to
such Buyer or its designee (including the Custodian) without recourse, but
subject to the terms of this Agreement, all the right, title and interest of
such Seller in and to such Purchased Assets together with all right, title and
interest in and to the proceeds of any related insurance policies.

	 	(c)	 	The books and records (including, without limitation, any
computer records or tapes) of each Seller or its designee shall be marked
appropriately to reflect clearly the sale of the related Purchased Assets to
the related Buyer.

11. Servicing of Mortgage Loans. 

	 	(a)	 	The Mortgage Loans sold hereunder are sold on a
servicing–released basis. Unless otherwise agreed to between the applicable
Buyer and Seller, such Seller agrees to cause Servicer to service such Mortgage
Loans for the term set forth in the succeeding sentence as a contract servicer
for the Buyers in accordance with Accepted Servicing Practices;
provided, however, that if an Event of Default shall have
occurred and be continuing, Servicer may, at the discretion of the Buyers,
immediately be terminated as contract servicer, subject to the notice
provisions contained herein. Each Seller shall cause the Servicer to service
the Mortgage Loans under this Agreement for an initial term, commencing on the
date hereof and ending on October 2, 2005, which term shall be extendible by
the Buyers for successive monthly periods by notice delivered to Sellers. Each
such notice (including each notice pursuant to standing instructions, if any,
which shall be deemed delivered at the end of successive monthly terms for so
long as such instructions are in effect) (a “Servicer Extension
Notice”) shall be delivered in writing by the Buyers to Sellers. Each
Seller hereby agrees that, as of the date hereof and upon its receipt of any
such Servicer Extension Notice, it shall cause the Servicer to become bound,
for the initial term and for the duration of the term covered by such notice,
to continue as the Servicer subject to and in accordance with the other
provisions of this Agreement. The Servicer shall deposit all collections
(other than late charges and ancillary fees) within two Business Days of
receipt in a collection account (the “Collection Account”) which the
Sellers shall have established prior to the Effective Date at Union Bank of
California, N.A. (the “Collection Account Bank”). On or prior to the
Effective Date the Sellers shall have notified and the Servicer and the
Collection Account Bank of the interest of the Buyers in the proceeds of the
Mortgage Loans deposited in the Collection Account.

	 	(b)	 	As part of its servicing duties, Servicer shall enforce
“due-on-sale” provisions to the extent permitted by law, shall administer all
escrow/impound deposits and shall make all servicing advances (not including
advances of delinquent principal and interest or advances of the Servicer
reasonably deemed not recoverable) on the Mortgage Loans. The Mortgage Loans
shall be serviced for a servicing fee not greater than 0.25% per annum payable
monthly on the then-outstanding principal balance of each Mortgage Loan (the
“Servicing Fee”), which Servicing Fee and additional servicing
compensation shall be paid in accordance with the provisions of the Servicing
Agreement from amounts released from the related Collection Account for such
purpose pursuant to Section 12. Notwithstanding the forgoing, in the event a
Seller fails to repurchase a Mortgage Loan on the related Repurchase Date or if
an Event of Default has occurred and is continuing, Servicer shall no longer be
contract servicer with respect to such Mortgage Loan or Mortgage Loans, unless
the term of servicing with respect to such Mortgage Loan or Mortgage Loans is
extended by the applicable Buyer in its sole discretion. In such event, such
Buyer shall have the right to transfer some or all of its Purchased Assets to
another servicer on a servicing released basis without payment of any release
fee to Servicer; provided, however, that Servicer shall be
entitled to the payment of all amounts owed to it in respect of its Servicing
Fees and servicing advances (if any) incurred through the servicing transfer
date from amounts released from the related Collection Account for such purpose
pursuant to the preceding paragraph. Servicer shall cooperate in good faith to
effect such servicing transfer and shall pay all costs associated with such
servicing transfer that the Servicer or successor Servicer may incur in the
normal course of conducting an agreed upon transfer.

	 	(c)	 	Each Seller agrees that each Buyer is the owner of all
Servicing Rights and Records held by such Seller or Servicer, including but not
limited to any and all servicing agreements, files, documents, records, data
bases, computer tapes, copies of computer tapes, proof of insurance coverage,
insurance policies, appraisals, other closing documentation, payment history
records, and any other records relating to or evidencing the servicing of
Purchased Assets (the “Servicing Records”).

	 	(d)	 	No Seller shall employ, or permit Servicer to employ,
sub-servicers (other than Affiliates of Servicer) to service the Purchased
Assets without the prior written approval of each Buyer, such approval not to
be unreasonably withheld. Prior to any Person (other than the Person or
Persons acting as Servicer on the Effective Date) becoming a servicer or
subservicer of the Purchased Assets, the Buyers shall have the right to approve
each such servicer or subservicer and the form of all Servicing Agreements or
servicing side letter agreements with respect to such servicer or subservicer.

	 	(e)	 	Each Seller shall cause, or cause Servicer to cause, any
sub-servicer hereunder to receive written notice of the related Buyer’s
ownership interest in the Mortgage Loans serviced by such sub-servicer.

12. Applications of Collections.

	 	(a)	 	All Income on Purchased Assets shall be the property of the
related Buyer. On each Business Day, the Sellers shall deposit, or cause to be
deposited, into the Collection Account all Income on Purchased Assets.

	 	(b)	 	The Buyers shall instruct the Collection Account Bank to apply
the amount on deposit in the Collection Account on each Distribution Date in
the following order of priority:

	 	i.	 	FIRST, to the payment of the Servicing Fee,
reimbursement of servicing advances not previously reimbursed and
additional servicing compensation with respect to the Purchased Assets;

	 	ii.	 	SECOND, to the payment of the Price
Differential accrued and unpaid on the Transactions on such
Distribution Date;

	 	iii.	 	THIRD, to the payment of the Repurchase Price
of the Transactions to the extent of any outstanding Margin Deficit on
such date;

	 	iv.	 	FOURTH, if an Event of Default has occurred and
is continuing, to the payment of the Repurchase Price for all
outstanding Transactions;

	 	v.	 	FIFTH, to the payment of any costs and expenses
and other amounts due to the Buyers hereunder; and

	 	vi.	 	SIXTH, so long as no Event of Default has
occurred and is continuing, to the Sellers.

Upon the termination of this Agreement and the repurchase of all of the related Purchased
Assets and the payment of all obligations of the Sellers to the Buyers hereunder in respect of the
outstanding Transactions, the Buyers shall instruct the Collection Account Bank to release all
remaining funds in the Collection Account to the Sellers.

13. Notices. All notices and deliveries under this Agreement shall be sufficient if
in writing and delivered personally or by overnight courier (signature required) to the party
entitled to receive such notices or deliveries, or if transmitted to such party by facsimile
transfer, at the following address or facsimile number: (i) if to the Committed Buyer: DB
Structured Products, Inc., 60 Wall Street, New York, NY 10005, Attention: Glenn Minkoff (facsimile
no.: 212-797-5160), (ii) if to Aspen: c/o AMACAR Group, L.L.C., 6525 Morrison Boulevard, Suite
318, Charlotte, North Carolina 28211, Attention: Doris Hearn/Evelyn Echevarria (facsimile no.:
(704) 365-1362), with a copy to Deutsche Bank AG, New York Branch, Administrative Agent, 60 Wall
Street, New York, New York 10005, Attention: Glenn Minkoff (facsimile no.: 212-797-5160), (iii) if
to Newport: Newport Funding Corp., c/o AMACAR Group, L.L.C., 6525 Morrison Boulevard, Suite 318,
Charlotte, North Carolina 28211, Attention: Doris Hearn/Evelyn Echevarria (facsimile no.: (704)
365-1362), with a copy to Deutsche Bank AG, New York Branch, Administrator, 60 Wall Street, New
York, New York 10005, Attention: Glenn Minkoff (facsimile no.: (212) 797-5160, telephone no.:
(212) 250-3406), (iv) if to Gemini: Gemini Securitization Corp., LLC, c/o Ropes & Gray, LLP, One
International Place, Boston, Massachusetts 02110, Attention: R. Douglas Donaldson (facsimile no.:
(617) 951-7050, telephone no.: (617) 951-7000), with a copy to Deutsche Bank AG, New York Branch,
Administrator, 60 Wall Street, New York, New York 10005, Attention: Glenn Minkoff (facsimile no.:
(212) 797-5160, telephone no.: (212) 250-3406), or (v) if to any Seller: 18400 Von Karman, Irvine,
California 92612, Attention: Kevin Cloyd (facsimile no.: (949) 440-7033), and or to such other
addresses as a party may furnish the other parties by written notice under this paragraph;
provided, that any information delivered by facsimile shall be followed by a copy delivered
by overnight courier, signature required. Written communication shall be effective upon receipt.

14. Sale Transaction; Security Interest.

	 	A.	 	It is the intention of the parties to this Agreement that the Transactions
entered into hereunder be considered purchases and sales of the related Purchased
Assets notwithstanding their treatment for certain accounting and tax purposes as
financing transactions. Notwithstanding any other provision of this Agreement, in the
event that any Transaction hereunder is deemed not to constitute a purchase and sale
(a) each Seller hereby pledges to the applicable Buyer, and grants to such Buyer a
security interest in, the following property, whether now existing or hereafter
acquired: the Purchased Assets related to such Transaction, and all records, related
servicing rights, property, insurance, income, takeout commitments, Qualified Cash
Accounts and other accounts (including any interest of such Seller in escrow accounts
with respect to the related Mortgage Loans) and any other contract rights, payments,
rights to payment (including payments of interest or finance charges) relating to such
Purchased Assets, all amounts from time to time on deposit in the Collection Account
related to such Purchased Assets, the Settlement Account and all amounts from time to
time on deposit in the Settlement Account, the Disbursement Account and all amounts
from time to time on deposit in the Disbursement Account, the Buyer Funding Account and
all amounts from time to time on deposit in the Buyer Funding Account, all Hedges
relating solely to Prime Mortgage Loans and any now existing or hereafter arising
proceeds and distributions with respect to any of the foregoing, and (b) the existence
of such pledge shall be deemed not to violate the representations and warranties in
respect of such Purchased Assets made by such Seller in Section 4(B) above.

In the event, for any reason, any purchase by Buyers hereunder on any Purchase Date
is construed by a court as a secured loan rather than a purchase and sale, the
parties intend that Buyers shall have a perfected first priority security interest
in all of the Purchased Assets then subject to such Transaction.

	 	B.	 	The Sellers shall pay all fees and expenses associated with perfecting each
Buyer’s security interest in the Purchased Assets, including, without limitation, the
cost of filing financing statements under the Uniform Commercial Code and, after the
occurrence and during the continuance of an Event of Default, of recording assignments
of mortgage, as and when required by such Buyer in its sole discretion.

	 	C.	 	Notwithstanding the grant of any other security interest pursuant to this
Section 14, each Seller grants to the related Buyer a security interest in all
servicing rights relating to the Purchased Assets and all Servicing Records to secure
the obligations of such Seller and Servicer to service in conformity with this Section
and any other obligation of the Sellers or Servicer to such Buyer. Each Seller
covenants to safeguard, or cause Servicer to safeguard, such Servicing Records and to
deliver them promptly to such Buyer or its designee (including the Custodian) at such
Buyer’s request.

15. Conditions Precedent.

	 	(a)	 	As conditions precedent to the initial Transaction, Buyers
shall have received on or before the day of such initial Transaction the
following, in form and substance satisfactory to Buyers and duly executed by
each party thereto:

	 	i.	 	This Agreement, the NCFC Guaranty, the
Custodial Agreement, the Fee Letter and any Servicing Agreements, each
duly executed and delivered by the parties thereto and being in full
force and effect, free of any modification, breach or waiver;

	 	ii.	 	Evidence that all other actions necessary or,
in the opinion of Buyers, desirable to perfect and protect each Buyer’s
interest in the Purchased Assets and other assets have been taken,
including, without limitation, filed Uniform Commercial Code financing
statements on Form UCC-1;

	 	iii.	 	A certified copy of the organizational
documents and consents or corporate or limited liability company
resolutions, as applicable, of each Seller, the Servicer and NCFC, each
approving the Transaction Documents to which it is a party (either
specifically or by general resolution), and all documents evidencing
other necessary corporate or limited liability company action or
governmental approvals as may be required in connection with this
Agreement or such Transaction Documents;

	 	iv.	 	An incumbency certificate of the secretary of
each Seller, the Servicer and NCFC certifying the names, true
signatures and titles of the representatives of each Seller, the
Servicer and NCFC duly authorized to execute the Transaction Documents
to which it is a party;

	 	v.	 	An opinion of counsel to the Sellers, the
Servicer and NCFC as to such matters as Buyers may reasonably request
and in form and substance acceptable to Buyers, including but not
limited to creation and perfection of security interests;

	 	vi.	 	Evidence of the establishment by the Sellers of
the Collection Account;

	 	vii.	 	Evidence that the Sellers and NCFC have closed
the acquisition of certain assets of RBC Mortgage Co.;

	 	viii.	 	Such information and documentation regarding
the Servicer as the Buyers may have requested;

	 	ix.	 	A copy of the Underwriting Guidelines;

	 	x.	 	Evidence of the payment by the Sellers of all
fees required to be paid on or before such date in the Fee Letter; and

	 	xi.	 	Any other documents reasonably requested by any
Buyer.

	 	(b)	 	The obligation of a Buyer to enter into each Transaction
pursuant to this Agreement is subject to the following conditions precedent:

	 	i.	 	such Buyer or its designee shall have received
on or before the Purchase Date of a Transaction with respect to such
Purchased Assets (unless otherwise specified in this Agreement) the
following, in form and substance satisfactory to the related Buyer and
(if applicable) duly executed:

	 	A.	 	A Mortgage Loan
Schedule, and an officer’s certificate of the related
Seller; and

	 	B.	 	Other than with
respect to Wet-Ink Mortgage Loans, the related Trust
Receipt.

	 	ii.	 	No Default or Event of Default shall have
occurred and be continuing.

	 	iii.	 	No Buyer shall have determined that the
introduction of or a change in any requirement of law or in the
interpretation or administration of any requirement of law applicable
to Buyer has made it unlawful, and no Governmental Authority shall have
asserted that it is unlawful, for any Buyer to enter into Transactions
with a Pricing Rate based on LIBOR.

	 	iv.	 	Satisfaction of any conditions precedent to the
initial Transaction as set forth in clause (a) of this Section 15 that
were not satisfied prior to such initial Purchase Date.

	 	v.	 	Both immediately prior to the related
Transaction and also after giving effect thereto and to the intended
use of the proceeds thereof, the representations and warranties made by
Sellers and NCFC in each Transaction Document shall be true, correct
and complete on and as of such Purchase Date in all material respects
with the same force and effect as if made on and as of such date (or,
if any such representation or warranty is expressly stated to have been
made as of a specific date, as of such specific date).

	 	vi.	 	After giving effect to the requested
Transaction, the aggregate outstanding Purchase Price for all Purchased
Assets subject to then outstanding Transactions under this Agreement
shall not exceed the Maximum Aggregate Purchase Price minus the
aggregate Unutilized Credit Line with respect to all Purchased Assets
which are HELOCs or One Time Close Loans.

	 	vii.	 	The Seller for such Transaction shall have paid
to Buyers any fees or expenses owed to Buyer in accordance with Section
22, including reimbursement of Buyers’ reasonable outside counsel fees.

	 	viii.	 	The Buyers shall have received a copy of any
material changes to the Underwriting Guidelines that have occurred
since the immediately prior Transaction. Buyers may, at their sole
discretion, refrain from entering into any Transactions under Section 3
hereof with respect to Prime Mortgage Loans originated under the
changed Underwriting Guidelines, but not with respect to Mortgage Loans
that comply with the Underwriting Guidelines as in effect on the
Effective Date or with such changes as the Buyer shall have approved
hereunder.

	 	ix.	 	There shall have been no event which has a
Material Adverse Effect.

	 	x.	 	Each secured party other than the Buyers
(including any party that has a precautionary security interest in a
Mortgage Loan) shall have released all of its right, title and interest
in, to and under such Mortgage Loan (including, without limitation, any
security interest that such secured party or secured party’s agent may
have by virtue of its possession, custody or control thereof).

	 	xi.	 	To the extent the related Seller is selling
Mortgage Loans which are registered on the MERS System, the Buyers
shall have received an Electronic Agent Agreement which shall have been
entered into, duly executed and delivered by the parties thereto and
shall be in full force and effect, free of any modification, breach or
waiver.

16. Affirmative Covenants. For so long as this Agreement is in effect:

	 	(a)	 	Each Seller shall promptly notify each Buyer of any event which
would reasonably be expected to have a Material Adverse Effect, including
without limitation, litigation or licensing issues which would reasonably be
expected to have a Material Adverse Effect.

	 	(b)	 	Each Seller shall provide each Buyer with copies of such
documentation as such Buyer may reasonably request evidencing the truthfulness
of the representations set forth in Section 4.

	 	(c)	 	Each Seller shall, at any Buyer’s request, take all action
necessary to ensure that such Buyer will have a first priority security
interest in the Purchased Assets, including, among other things, filing such
UCC financing statements, mortgages or other instruments as such Buyer may
reasonably request.

	 	(d)	 	Each Seller shall notify each Buyer no later than one Business
Day after obtaining actual knowledge thereof, if any event has occurred that
constitutes an Event of Default or a Default.

	 	(e)	 	Each Seller promptly shall provide each Buyer with a copy of
any material changes to the Underwriting Guidelines or the collection policies
with respect to the Purchased Assets.

	 	(f)	 	Each Seller shall enter into Hedges with respect to all the
Purchased Assets which are fixed rate Prime Mortgage Loans (other than fixed
rate Prime Mortgage Loans which are the subject of a mandatory takeout
commitment or other takeout commitment with locked pricing) in order to protect
adequately against interest rate risks and market value risks and shall
promptly deliver to the Committed Buyer copies of the documents evidencing all
such Hedges. If any Seller shall grant any Lien on its Hedges with respect to
Prime Mortgage Loans to any Person entering into a repurchase agreement or loan
agreement with respect to Prime Mortgage Loans of such Seller which are not
subject to Transactions hereunder, then the aggregate notional amount of Hedges
held by such Seller solely with respect to fixed rate Prime Mortgage Loans
shall equal at least the sum of (i) the outstanding principal amount of the
Purchased Assets of such Seller which are fixed rate Prime Mortgage Loans plus
(ii) the outstanding principal amount of fixed rate Prime Mortgage Loans of
such Seller which shall have been purchased or financed by such other Person or
Persons minus (iii) the outstanding principal amount of fixed rate Prime
Mortgage Loans of such Seller which are the subject of a mandatory takeout
commitment or other takeout commitment with locked pricing.

	 	(g)	 	Sellers shall provide each Buyer within five Business Days
after the end of each calendar month and at any other time at Buyer’s request,
either by direct modem electronic transmission or via a computer diskette or by
any other electronic transmission acceptable to the Buyers, servicing and
operations information, including, without limitation, those fields specified
by Buyers from time to time, on an asset-by-asset basis and in the aggregate,
with respect to all Purchased Assets that are Eligible Mortgage Loans then
subject to Transactions.

	 	(h)	 	Sellers shall provide each Buyer with the following financial
and reporting information:

	 	i.	 	Within 90 days after the last day of its fiscal
year, NCFC’s audited consolidated and consolidating statements of
income and statements of changes in cash flow for such year and balance
sheets as of the end of such year, presented fairly in accordance with
GAAP, and accompanied by an unqualified (as to scope) report of a firm
of “Big Four” independent certified public accountants or any other
nationally recognized independent certified public accounting firm
consented to by each Buyer (which consent shall not be unreasonably
withheld);

	 	ii.	 	Within 45 days after the last day of the first
three fiscal quarters in any fiscal year, NCFC’s consolidated and
consolidating statements of income and statements of changes in cash
flow for such quarter and balance sheets as of the end of such quarter,
fairly in accordance with GAAP (except for the omission of footnotes
and year-end adjustments);

	 	iii.	 	Upon request, within 45 days after the last day
of each fiscal quarter an officer’s certificate from a senior officer
of each Seller addressed to each Buyer certifying that, as of such
quarter, (x) the Sellers and NCFC are in compliance with all of the
terms, conditions and requirements of this Agreement and the other
Transaction Documents and (y) no Event of Default exists;

	 	iv.	 	On the 2nd Business Day of each
week, and at any other time upon the request of a Buyer, a secondary
marketing position report with respect to the Purchased Assets which
are Prime Mortgage Loans, including information with respect to the
Sellers’ pipeline, long and short positions and other hedges utilized
by Sellers in their risk management activities;

	 	v.	 	Within 30 days after the last day of each
calendar month, an officer’s certificate from a Responsible Officer of
NCFC addressed to each Buyer demonstrating compliance with the
financial covenants set forth on Schedule C;

	 	vi.	 	Upon request, within 30 days following such
request, copies of all proxy statements, financial statements, and
reports which NCFC sends to its stockholders, and copies of all
regular, periodic and special reports, and all registration statements
under the Securities Act of 1933, as amended, which it files with the
Securities and Exchange Commission or any Government Authority which
may be substituted therefor, or with any national securities exchange
(excluding filings related to securitization transactions);

	 	vii.	 	As soon as reasonably possible, and in any
event within thirty (30) days after a Responsible Officer knows, or
with respect to any Plan or Multiemployer Plan to which NCFC or any of
its Subsidiaries makes direct contributions, has reason to believe,
that any of the events or conditions specified below with respect to
any Plan or Multiemployer Plan has occurred or exists, a statement
signed by one of NCFC’s senior financial officers setting forth details
respecting such event or condition and the action, if any, that NCFC or
its ERISA Affiliate proposes to take with respect to NCFC or an ERISA
Affiliate with respect to such event or condition):

	 	(1)	 	any reportable event, as defined
in Section 4043(c) of ERISA and the regulations issued
thereunder, with respect to a Plan, as to which PBGC has not by
regulation waived the requirement of Section 4043(a) of ERISA
that it be notified within thirty (30) days of the occurrence
and during the continuance of such event (provided that
a failure to meet the minimum funding standard of Section 412 of
the Code or Section 302 of ERISA, including without limitation
the failure to make on or before its due date a required
installment under Section 412(m) of the Code or Section 302(e)
of ERISA, shall be a reportable event regardless of the issuance
of any waivers in accordance with Section 412(d) of the Code);
and any request for a waiver under Section 412(d) of the Code
for any Plan;

	 	(2)	 	the distribution under Section
4041(c) of ERISA of a notice of intent to terminate any Plan or
any action taken by NCFC or an ERISA Affiliate to terminate any
Plan;

	 	(3)	 	the institution by PBGC of
proceedings under Section 4042 of ERISA for the termination of,
or the appointment of a trustee to administer, any Plan, or the
receipt by NCFC or any ERISA Affiliate of a notice from a
Multiemployer Plan that such action has been taken by PBGC with
respect to such Multiemployer Plan;

	 	(4)	 	the complete or partial
withdrawal from a Multiemployer Plan by NCFC or any ERISA
Affiliate that results in liability under Section 4201 or 4204
of ERISA (including the obligation to satisfy secondary
liability as a result of a purchaser default) or the receipt by
NCFC or any ERISA Affiliate of notice from a Multiemployer Plan
that it is in reorganization or insolvency pursuant to Section
4241 or 4245 of ERISA or that it intends to terminate or has
terminated under Section 4041A of ERISA;

	 	(5)	 	the institution of a proceeding
by a fiduciary of any Multiemployer Plan against NCFC or any
ERISA Affiliate to enforce Section 515 of ERISA, which
proceeding is not dismissed within 30 days; and

	 	(6)	 	the adoption of an amendment to
any Plan that would result in the loss of tax-exempt status of
the trust of which such Plan is a part if NCFC or an ERISA
Affiliate fails to provide timely security to such Plan in
accordance with the provisions of Section 401(a)(29) of the Code
or Section 307 of ERISA; and

	 	viii.	 	Upon request, such other information as a
Buyer may reasonably request.

	 	(i)	 	Each Seller shall do all things necessary to remain duly
organized, validly existing and in good standing as a corporation or limited
liability company in its jurisdiction of organization and maintain all
requisite authority to conduct its business in each jurisdiction in which such
Seller conducts business, provided that one Seller may merge or
consolidate with or into another Seller.

	 	(j)	 	Each Seller shall pay and discharge or cause to be paid and
discharged, when due, all taxes, assessments and governmental charges or levies
imposed upon it or upon its income and profits or upon any of its property,
real, personal or mixed (including without limitation, the Purchased Assets) or
upon any part thereof, as well as any other lawful claims which, if unpaid,
might become a Lien upon such properties or any part thereof, except for any
such taxes, assessments and governmental charges, levies or claims as are
contested in good faith by appropriate proceedings diligently conducted and
with respect to which adequate reserves are provided in accordance with GAAP.
Each Seller shall file on a timely basis (including any extensions) all
federal, and material state and local tax and information returns, reports and
any other information statements or schedules required to be filed by or in
respect of it.

	 	(k)	 	Each Seller will comply with any and all requirements of any
federal, state or local predatory and abusive lending laws applicable to the
origination and servicing of mortgage loans, and each Seller has and shall
maintain in its possession, available for the inspection of the Buyers or their
designees, and shall deliver to the Buyers or their designees, within a
commercially reasonable time period following a request therefor, evidence of
compliance with such requirements.

	 	(l)	 	Each Seller will, and shall cause the Servicer to, obtain and
maintain insurance with responsible companies in such amounts and against such
risks as are customarily carried by business entities engaged in similar
businesses similarly situated, and will furnish the Buyers on request full
information as to all such insurance, and provide within (15) days after
receipt of such request the certificates or other documents evidencing renewal
of each such policy.

	 	(m)	 	Each Seller which is or shall become an approved
seller/servicer with Fannie Mae and Freddie Mac shall maintain its status with
Fannie Mae and Freddie Mac as an approved seller/servicer, in each case in good
standing. The Sellers or Servicer shall service all Purchased Mortgage Loans
which are Agency Conforming Mortgage Loans in accordance with the applicable
agency guide. Should any Seller, for any reason, cease to possess all such
applicable Agency approvals, or should notification to the relevant Agency be
required, such Seller shall so notify Buyers immediately in writing.
Notwithstanding the preceding sentence, the Sellers shall take all necessary
action to maintain all of their applicable Agency approvals at all times during
the term of this Agreement and each outstanding Transaction. Each Seller has
adequate financial standing and has or has contracted for servicing facilities,
procedures and experienced personnel necessary for the sound servicing of
mortgage loans of the same types as may from time to time constitute Mortgage
Loans and in accordance with Accepted Servicing Practices.

	 	(n)	 	Each Seller shall give Buyers at least 30 days prior written
notice of any change in the jurisdiction of its incorporation or organization.
Each Seller shall at all times maintain its principal executive office within
the United States of America.

	 	(o)	 	Each Seller will promptly, and in any event within 10 days
after service of process on such Seller, NCFC or any of its Subsidiaries, give
the Buyers notice of all legal or arbitrable proceedings affecting such Seller,
NCFC or any of its Subsidiaries that questions or challenges the validity or
enforceability of any of the Transaction Documents or as to which there is a
reasonable likelihood of adverse determination which would result in a Material
Adverse Effect.

	 	(p)	 	Each Seller shall, and shall cause Servicer to, (i) upon
reasonable notice (provided, that no notice need be given if an Event of
Default has occurred or is continuing) permit each Buyer to inspect the
servicing facilities of such Seller or Servicer, as the case may be, for the
purpose of satisfying such Buyer that such Seller or Servicer, as the case may
be, has the ability to service the Purchased Assets as provided in this
Agreement and (ii) permit each Buyer or such Buyer’s authorized representatives
during normal business hours to examine, inspect, and make copies and extracts
of, the Servicing Files and any and all documents, records, agreements,
instruments or information relating to the Purchased Assets in the possession
or under the control of such Seller or the Servicer.

	 	(q)	 	With respect to each HELOC or One Time Close Loan, if a
Mortgagor requests an increase in the related Available Credit Line, the
related Seller, shall, in its sole discretion, either accept or reject the
Mortgagor’s request in accordance with the applicable Underwriting Guidelines
and notify the related Buyer in writing of such Seller’s decision. If the
request for an Available Credit Line increase is accepted by the related
Seller, the related HELOC or One Time Close Loan will be deemed terminated and
will no longer be an Eligible Mortgage Loan, and a new HELOC or One Time Close
Loan will be deemed to be created upon such increase. Any such new HELOC or
One Time Close Manufactured Housing Loan (but not a new One Time Close 1-4
Family Housing Loan) may, subject to the terms and conditions hereof, become
the subject of a new Transaction. Notwithstanding anything to the contrary
herein, in no event shall any Buyer have any obligation to fund any Draws with
respect to any HELOC or One Time Close Loan, which obligations shall be
retained by the related Seller.

	 	(r)	 	Prior to 3:00 p.m. (New York City time) on the Business Day
prior to any Business Day on which the Sellers intend to repurchase and resell
or pool Mortgage Loans, the Sellers shall notify the Buyers of the aggregate
Repurchase Price of the Mortgage Loans to be repurchased and resold or pooled
on such following Business Day.

17. Negative Covenants. For so long as this Agreement is in effect, each Seller
covenants that it will not:

	 	(a)	 	take any action which would reasonably be expected to directly
or indirectly impair or adversely affect the related Buyer’s title to or the
value of the Purchased Assets;

	 	(b)	 	pledge, assign, convey, grant, bargain, sell, set over, deliver
or otherwise transfer any interest in the Purchased Assets to any person not a
party to this Agreement nor will such Seller create, incur or permit to exist
any lien, encumbrance or security interest in or on the Purchased Assets except
as described in Section 14(C) of this Agreement and except any Lien on the
Sellers’ Hedges with respect to fixed rate Prime Mortgage Loans which is (i)
granted to any Person entering into a repurchase agreement or loan agreement
with respect to Prime Mortgage Loans of the Sellers which are not subject to
Transactions hereunder and (ii) pari passu with or junior to the Lien of the
Buyers on the Sellers’ Hedges;

	 	(c)	 	make any material change in the nature of its business as
carried on at the date hereof and other businesses reasonably related to or
arising in connection with its existing businesses;

	 	(d)	 	at any time, directly or indirectly, except upon ninety (90)
days’ prior written notice to the Buyers, change the date on which its fiscal
year begins from the current fiscal year beginning date;

	 	(e)	 	other than (i) in connection with transfers of loans to special
purpose entities created specifically for financing arrangements done in the
ordinary course of its business, (ii) transactions specifically permitted
hereunder and (iii) mergers or consolidations of one Seller with or into
another Seller, mergers or consolidations of any Subsidiary of a Seller with or
into such Seller or transfers of all or substantially all the assets of any
Subsidiary of a Seller to such Seller, at any time, directly or indirectly,
sell, lease or otherwise transfer any property or assets to, or otherwise
acquire any property or assets from, or otherwise engage in any transactions
with, any of its Affiliates unless the terms thereof are no less favorable to
such Seller than those that could be obtained at the time of such transaction
in an arm’s length transaction with a Person who is not such an Affiliate;

	 	(f)	 	if an Event of Default has occurred and is continuing, pay any
dividends with respect to its capital stock or other equity interests, whether
now or hereafter outstanding, or make any other distribution in respect
thereof, either directly or indirectly, whether in cash or property (other than
additional stock) or in obligations of such;

	 	(g)	 	amend, alter, modify or change in any way materially adverse to
the Buyers hereunder, or permit NCFC to amend, alter, modify or change in any
way materially adverse to the Buyers hereunder, any Transaction Document; or

	 	(h)	 	change its name, identity or organizational structure in any
manner that would, make any financing statement or continuation statement filed
by such Seller in accordance with Section 14 seriously misleading within the
meaning of the Uniform Commercial Code, unless such Seller shall have given the
Buyers at least 30 days prior written notice thereof, and shall promptly file
appropriate amendments to all previously filed financing statements and
continuation statements.

18. Assignment.

	 	(a)	 	Each Buyer may assign to any Person which is a Permitted
Assignee all or any part of such Buyer’s rights and obligations hereunder, or
may grant participations to one or more banks or other entities in or to all or
any part of, any Purchased Assets or Transactions hereunder. No Seller may
assign its rights or obligations hereunder or any interest herein.

	 	(b)	 	A Buyer may, in accordance with applicable law, at any time
sell to one or more entities (“Participants”) participating interests
in any Purchased Assets or Transactions or any other interest of such Buyer
hereunder and under the other Transaction Documents. In the event of any such
sale by a Buyer of participating interests to a Participant, such Buyer’s
obligations under this Agreement to the Sellers shall remain unchanged, such
Buyer shall remain solely responsible for the performance thereof, such Buyer
shall remain the holder of the Purchased Assets for all purposes under this
Agreement and the other Transaction Documents, and the Sellers shall continue
to deal solely and directly with such Buyer in connection with such Buyer’s
rights and obligations under this Agreement and the other Transaction
Documents. Each Seller agrees that if amounts outstanding under this Agreement
are due or unpaid, or shall have been declared or shall have become due and
payable upon the occurrence and during the continuance of an Event of Default,
each Participant shall be deemed to have the right of set-off in respect of its
participating interest in amounts owing under this Agreement to the same extent
as if the amount of its participating interest were owing directly to it as a
buyer under this Agreement; provided, that such Participant shall only
be entitled to such right of set-off if it shall have agreed in the agreement
pursuant to which it shall have acquired its participating interest to share
with such Buyer the proceeds thereof. Each Seller also agrees that each
Participant shall be entitled to the benefits of Section 22 with respect to its
purchase of Purchased Assets from time to time; provided, that the
Participants shall be entitled to receive no greater amount in the aggregate
pursuant to such Section 22 than the related Buyer would have been entitled to
receive had no such transfer occurred.

	 	(c)	 	Each Buyer may, in its sole election, engage in repurchase
transactions with the Purchased Assets or otherwise pledge, hypothecate,
assign, transfer or otherwise convey the Purchased Assets with a counterparty
of such Buyer’s choice. Unless an Event of Default shall have occurred, no
such transaction shall relieve Buyer of its obligations to transfer Purchased
Assets to the Sellers on the related Repurchase Date, or of Buyer’s obligation
to credit or pay Income to, or apply Income to the obligations of, the Sellers
pursuant to Section 12 hereof. In the event any Buyer engages in a repurchase
transaction with any of the Purchased Assets or otherwise pledges or
hypothecates any of the Purchased Assets, such Buyer shall have the right to
assign to such Buyer’s counterparty any of the applicable representations or
warranties herein and the remedies for breach thereof, as they relate to the
Purchased Assets that are subject to such repurchase transaction.

	 	(d)	 	No assignment subject to Section 18(a) or 18(b) or 18(c) shall
be made to any prospective assignee or participant who is a direct competitor
of NCFC or its Affiliates. A Buyer may furnish any information concerning the
Sellers, NCFC or any of their Affiliates in such Buyer’s possession from time
to time to assignees and participants (including prospective assignees and
participants); provided, that each such prospective assignee shall
agree, pursuant to a written agreement reasonably acceptable to the Sellers, to
keep all information provided hereunder confidential and to utilize such
information for evaluation purposes only. A Buyer shall bear the costs of any
assignment pursuant to this Section 18.

	 	(e)	 	Each Seller agrees to cooperate with the Buyers in connection
with any such assignment and/or participation, to execute and deliver such
replacement notes, and to enter into such restatements of, and amendments,
supplements and other modifications to, this Agreement and the other
Transaction Documents as may be reasonable and necessary in order to give
effect to such assignment and/or participation.

19. Governing Law. This Agreement shall be binding and inure to the benefit of the
parties hereto and their respective successors and assigns, except that no Seller may assign or
transfer any of its rights or obligations under this Agreement without the prior written consent of
Buyers. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAW OF THE
STATE OF NEW YORK, INCLUDING SECTION 5-1401 AND SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS
LAW, BUT OTHERWISE WITHOUT REGARD TO THE CONFLICTS OF LAW PROVISIONS THEREOF.

Each Seller irrevocably agrees that any legal action, suit or proceeding against such Seller
arising out of this Agreement may be brought in the United States District Court located in the
City of New York, New York or in the courts of the State of New York and hereby irrevocably accepts
and submits to the non-exclusive jurisdiction of each of the aforesaid courts in personam,
generally and unconditionally with respect to any action, suit or proceeding for such Seller and in
respect of such Seller’s properties, assets and revenues. Each Seller further irrevocably agrees
to the service of any legal process, summons, notices and documents out of any of the aforesaid
courts by mailing copies thereof by certified mail, postage prepaid, to such Seller at its address
designated pursuant to this Agreement. Nothing herein shall in any way be deemed to limit any
party’s ability to serve any such legal process, summons, notices and documents in any other
manner, as may be permitted by applicable law or to obtain jurisdiction over any party, or bring
actions, suits or proceedings against any party in such other jurisdictions, and in such manner, as
may be permitted by applicable law.

20. Counterparts. This Agreement may be executed in any number of counterparts, each
of which counterparts shall constitute but one and the same instrument. Each Seller shall promptly
provide such further assurances or agreements as a Buyer may reasonably request in order to effect
the purposes of this Agreement.

21. Single Business Transaction. The Buyers and Sellers hereby acknowledge that they
consider each Transaction hereunder and all other Transactions under this Agreement to constitute a
single business and contractual relationship to have been made in consideration of each other.
Therefore, the Sellers and Buyers each agree (i) to perform all of its obligations in respect of
each Transaction hereunder and that a default in the performance of any such obligations shall
constitute a default by it in respect of all Transactions hereunder, (ii) that each of them shall
be entitled to set-off claims and apply property held by them in respect of any Transaction against
obligations owing to them in respect of any other Transactions hereunder and (iii) that payments,
deliveries and transfers made by any of them in respect of any Transaction shall be deemed to have
been made in respect of any other Transaction hereunder and the obligations to make any such
payments, deliveries and other transfers may be applied against each other and netted.

22. Indemnification and Expenses.

	 	(a)	 	The Sellers, jointly and severally, agree to hold the Buyers
harmless from, and indemnify the Buyers against, all unaffiliated third-party
liabilities, losses, damages, judgments, costs and expenses of any kind which
may be imposed on, incurred by or asserted against the Buyers as a result of
such third-party claims (collectively, the “Costs”) relating to or
arising out of this Agreement, the NCFC Guaranty, any other Transaction
Document or any transaction contemplated hereby or thereby, or any amendment,
supplement or modification of, or any waiver or consent under or in respect of,
this Agreement, the NCFC Guaranty, any other Transaction Document or any
transaction contemplated hereby or thereby, that, in each case, results from
anything other than the applicable Buyer’s gross negligence or willful
misconduct. Without limiting the generality of the foregoing the Sellers,
jointly and severally, agree to hold each Buyer harmless from, and indemnify
each Buyer against, all Costs with respect to all Purchased Assets relating to
or arising out of any violation or alleged violation of any environmental law,
any consumer credit laws, including without limitation the Truth in Lending Act
and/or the Real Estate Settlement Procedures Act, or any other rule or
regulation that, in each case, results from anything other than such Buyer’s
gross negligence or willful misconduct. In any suit, proceeding or action
brought by a Buyer in connection with any Purchased Asset for any sum owing
thereunder, or to enforce any provisions of any Purchased Asset, the Sellers,
jointly and severally, agree to save, indemnify and hold such Buyer harmless
from and against all expense, loss or damage suffered by reason of any defense,
set-off, counterclaim, recoupment or reduction or liability whatsoever of the
account debtor or obligor thereunder, arising out of a breach by such Buyer of
any obligation thereunder or arising out of any other agreement, indebtedness
or liability at any time owing to or in favor of such account debtor or obligor
or its successors from Sellers. The Sellers, jointly and severally, also agree
to reimburse each Buyer as promptly after being billed by such Buyer for all of
such Buyer’s costs and expenses incurred in connection with the enforcement or
the preservation of such Buyer’s rights under this Agreement, the NCFC
Guaranty, any other Transaction Document or any transaction contemplated hereby
or thereby, including without limitation the reasonable fees and disbursements
of its counsel.

	 	(b)	 	The Sellers, jointly and severally, agree to promptly pay after
being billed by a Buyer any legal fees, legal expenses and any fees and
expenses of third party consultants incurred by such Buyer in connection with
the development, preparation and execution of the Transaction Documents or any
other documents prepared in connection herewith or therewith, provided
that if such fees and expenses exceed $50,000 in the aggregate, the Sellers
shall only be obligated to pay to the Buyers the first $50,000 of such fees and
expenses plus 50% of such excess.

	 	(c)	 	The Sellers, jointly and severally, agree to promptly pay after
being billed by a Buyer all of the third-party out-of-pocket costs and expenses
incurred by such Buyer in connection with any amendment, supplement or
modification to, this Agreement, the NCFC Guaranty, any other Transaction
Document or any other documents prepared in connection herewith or therewith,
to the extent such amendment, supplement or modification was requested by a
Seller. The Sellers, jointly and severally, agree to pay as and when billed by
a Buyer all of the third-party out-of-pocket costs and expenses incurred in
connection with the administration of the transactions contemplated hereby and
thereby including without limitation all the reasonable fees, disbursements and
expenses of such Buyer’s counsel including, but not limited to, those costs and
expenses incurred by such Buyer pursuant to Sections 22(a) and 27.

	 	(d)	 	Requirements of Law; Increased Costs. In the event
that any change subsequent to the date hereof in any applicable law, order,
regulation, treaty or directive issued by any central bank or other
governmental authority, or in the governmental or judicial interpretation or
application thereof, or compliance by any Buyer with any request or directive
(whether or not having the force of law) by any central bank or other
governmental authority:

	 	i.	 	subjects any Buyer to any tax of any kind
whatsoever with respect to this Agreement or any Transactions
hereunder, or changes the basis of taxation of payments to such Buyer
of Repurchase Price, fee, Price Differential or any other amount
payable hereunder (except for change in the rate of tax on the overall
net income of such Buyer);

	 	ii.	 	imposes, modifies or holds applicable any
reserve, capital requirement of general application to similarly
situated financial institutions, special deposit, compulsory loan or
similar requirements against assets held by, or deposits or other
liabilities in or for the account of, Transactions or loans by, letters
of credit issued by, or other credit extended by, or any other
acquisition of funds by, any office of such Buyer which are (in the
case of Transactions) not otherwise included in the determination of
the Pricing Rate; or

	 	iii.	 	imposes on such Buyer any other condition;

and the result of any of the foregoing is to increase the cost to such Buyer
of making, renewing or maintaining any Transaction, or to reduce any amount
receivable in respect thereof or to reduce the rate of return on the capital
of such Buyer, or any Person controlling such Buyer, then, in any such case,
the Sellers shall promptly pay to such Buyer, upon its written demand, any
additional amounts necessary to compensate such Buyer or such controlling
Person for such additional cost or reduced amounts receivable or rate of
return as determined by such Buyer with respect to this Agreement or
Transactions hereunder, subject to the limitations set forth in the
following sentence and provided that the Sellers shall not be obligated to
pay additional amounts with respect to any period prior to three months
before Buyer delivered such demand. If a Buyer becomes entitled to claim
any additional amounts pursuant to this Section 22(d), it shall, promptly
after it obtains knowledge thereof and determines to request compensation
hereunder, notify the Sellers in writing of the event by reason of which it
has become so entitled, provided that such Buyer will designate a different
office for those Transactions affected by such event or take such other
action if such designation or other action will avoid the need for, or
reduce the amount of, such compensation, so long as any such designation or
other action is reasonably convenient for such Buyer. A certificate as to
any additional amounts payable pursuant to the foregoing sentence containing
the calculation thereof in reasonable detail submitted by a Buyer to Sellers
shall be conclusive in the absence of manifest error. The provisions hereof
shall survive the termination of this Agreement and payment of Repurchase
Price of the outstanding Transactions and all other amounts payable
hereunder.

23. Power of Attorney. Each Seller hereby irrevocably constitutes and appoints each
Buyer and any of such Buyer’s officers or agents, with full power of substitution, as such Seller’s
true and lawful attorney-in-fact with full irrevocable power and authority in such Seller’s place
and stead and in such Seller’s name or in such Buyer’s own name, from time to time in such Buyer’s
discretion, for the purpose of carrying out the terms of this Agreement, to take any and all
appropriate action and to execute any and all documents and instruments which may be necessary or
desirable to accomplish the purposes of this Agreement; provided that no Buyer shall exercise such
power except in the event of (a) an Event of Default, or (b) a failure by such Seller to perform
its obligations hereunder.

Each Seller hereby ratifies all that said attorneys shall lawfully do or cause to be done by
virtue hereof. This power of attorney is a power coupled with an interest and shall be
irrevocable.

The powers conferred on the Buyers pursuant to this Agreement are solely to protect each
Buyer’s interests in the Purchased Assets and shall not impose any duty upon any Buyer to exercise
any such powers. Each Buyer shall be accountable only for amounts that such Buyer actually
receives as a result of the exercise of such powers, and no Buyer nor any of any Buyer’s officers,
directors, or employees shall be responsible to any Seller for any act or failure to act hereunder,
except for such Buyer’s or their own gross negligence or willful misconduct.

24. No Petition. Each Seller hereby covenants and agrees that, prior to the date
which is one year and one day after the payment in full of all outstanding commercial paper and
medium term notes of any Noncommitted Buyer, that it will not institute against, or join any other
person or entity in instituting against any Noncommitted Buyer any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings or other similar proceeding under the laws of
the United States or any state of the United States. This provision and Sections 22 and 27 shall
survive the termination of this Agreement.

25. No Reliance. Each of Buyers and Sellers hereby represent and warrant to the other
that in connection with the negotiation of, the entering into, and the performance under, this
Agreement:

	 	A.	 	It is not relying (for purposes of making any investment decision or otherwise)
upon any advice, counsel or representations (whether written or oral) of the other
party hereto, other than the representations expressly set forth herein;

	 	B.	 	It has consulted with its own legal, regulatory, tax, business, investment,
financial and accounting advisors to the extent that it has deemed necessary, and it
has made its own investment, hedging and trading decisions (including decisions
regarding the suitability of any Transaction) based upon its own judgment and upon any
advice from such advisors as it has deemed necessary and not upon any view expressed by
the other party hereto;

	 	C.	 	It is a sophisticated and informed institution that has a full understanding of
all the terms, conditions and risks (economic and otherwise) here and is capable of
assuming and willing to assume (financially and otherwise) those risks;

	 	D.	 	It is not acting as a fiduciary or financial, investment or commodity trading
advisor for the other party hereto, and has not given the other party hereto (directly
or indirectly through any other person) any assurance, guaranty or representation
whatsoever as to the merits (either legal, regulatory, tax, business, investment,
financial accounting or otherwise) of this Agreement or any Transaction.

26. Joint and Several. Each Seller shall be jointly and severally liable for the
full, complete and punctual performance and satisfaction of all obligations of any Seller under
this Agreement. Accordingly, each Seller waives any and all notice of creation, renewal, extension
or accrual of any of the Obligations and notice of or proof of reliance by any Buyer upon such
Seller’s joint and several liability. Each Seller waives diligence, presentment, protest, demand
for payment and notice of default or nonpayment to or upon such Seller with respect to the
Obligations. When pursuing its rights and remedies hereunder against any Seller, a Buyer may, but
shall be under no obligation, to pursue such rights and remedies hereunder against any Seller or
any other Person or against any collateral security for the Obligations or any right of offset with
respect thereto, and any failure by a Buyer to pursue such other rights or remedies or to collect
any payments from such Seller or any such other Person to realize upon any such collateral security
or to exercise any such right of offset, or any release of such Seller or any such other Person or
any such collateral security, or right of offset, shall not relieve such Seller of any liability
hereunder, and shall not impair or affect the rights and remedies, whether express, implied or
available as a matter of law, of a Buyer against such Seller.

27. Periodic Due Diligence Review. Each Buyer and/or a third-party contractor will
periodically (i) perform due diligence of each Seller’s and NCFC’s origination and underwriting
standards and facilities, (ii) perform due diligence of the Servicer’s facilities and servicing
procedures, (iii) underwrite a portion of the Mortgage Loans on a sample basis and (iv) perform any
other due diligence such Buyer may deem necessary, in its sole discretion exercised in good faith.
Each Buyer shall provide notice to the related Seller of the identity of the applicable third-party
contractor prior to the performance of any due diligence by such third-party contractor. Each
Seller will reimburse each Buyer for all costs (including out of pocket costs and expenses)
associated with up to two (2) such reviews per annum (not to exceed $50,000 per annum), provided
however, that, upon the occurrence and continuation of any Event of Default, such limitation will
not apply and the Sellers shall reimburse each Buyer for all costs associated with all due
diligence reviews performed at the reasonable discretion of such Buyer. Each Seller acknowledges
that each Buyer has the right to perform continuing due diligence reviews with respect to the
Purchased Assets, for purposes of verifying compliance with the representations, warranties and
specifications made hereunder, or otherwise, and each Seller agrees that upon reasonable prior
notice to such Seller, each Buyer or its authorized representatives will be permitted during normal
business hours to examine, inspect, and make copies and extracts of, the Asset Files and any and
all documents, records, agreements, instruments or information relating to such Purchased Assets in
the possession or under the Seller’s control and/or the control of the Servicer or the Custodian.
Each Seller also shall make available to each Buyer and its authorized representations a
knowledgeable financial, credit or accounting officer for the purpose of answering questions
respecting the Asset Files and the Purchased Assets. Without limiting the generality of the
foregoing, each Seller acknowledges that each Buyer may enter into Transactions with such Seller
based solely upon the information provided by such Seller to such Buyer in a Mortgage Loan Schedule
and the representations, warranties and covenants contained herein, and that each Buyer, at its
option, has the right at any time to conduct a partial or complete due diligence review on some or
all of the Purchased Assets subject to such Transaction, including without limitation, but subject
to the requirements of applicable law, ordering new credit reports and new appraisals on the
related Mortgaged Properties and otherwise re-generating the information used to originate such
Purchased Assets. Each Buyer may underwrite such Purchased Assets itself or engage a third-party
underwriter to perform such underwriting. Each Seller agrees to cooperate with each Buyer and any
third-party underwriter in connection with such underwriting, including, but not limited to,
providing such Buyer and any third party underwriter with access to any and all documents, records,
agreements, instruments or information relating to such Purchased Assets in such Seller’s
possession, or under such Seller’s control, provided that, to the extent in form and substance
reasonably acceptable to each Buyer, Sellers may provide any of the above referenced information in
electronic format to such Buyer.

28. Set-off. In addition to any rights and remedies of such Buyer provided by law,
each Buyer shall have the right, without prior notice to the Sellers, any such notice being
expressly waived by the Sellers to the extent permitted by applicable law, upon any amount becoming
due and payable by the Sellers hereunder (whether at the stated maturity, by acceleration or
otherwise) to set-off and appropriate and apply against such amount any and all deposits (general
or special, time or demand, provisional or final), in any currency, and any other credits,
indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or
contingent, matured or unmatured, at any time held or owing by such Buyer or any branch or agency
thereof to or for the credit or the account of the Sellers. Each Buyer agrees promptly to notify
the Sellers after any such set-off and application made by such Buyer; provided, that the
failure to give such notice shall not affect the validity of such set-off and application.

29. Captions. The table of contents and captions and section headings appearing
herein are included solely for convenience of reference and are not intended to affect the
interpretation of any provision of this Agreement.

30. Counterparts. This Agreement may be executed in any number of counterparts, all
of which taken together shall constitute one and the same instrument, and any of the parties hereto
may execute this Agreement by signing any such counterpart.

31. Amendments. Except as otherwise expressly provided in this Agreement, any
provision of this Agreement may be modified or supplemented only by an instrument in writing signed
by the Sellers and Buyers and any provision of this Agreement may only be waived in a writing
signed by Buyers.

No express or implied waiver of any Event of Default by any Buyer shall constitute a waiver of
any other Event of Default and no exercise of any remedy hereunder by any party shall constitute a
waiver of its right to exercise any other remedy hereunder. Without limitation on any of the
foregoing, the failure to give a notice pursuant to Section 7, 9 or otherwise, will not constitute
a waiver of any right to do so at a later date.

32. WAIVER OF JURY TRIAL. THE SELLERS AND BUYERS HEREBY IRREVOCABLY WAIVE, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER TRANSACTION DOCUMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

33. Intent. The Sellers and Buyers recognize that each Transaction is a “repurchase
agreement” as that term is defined in Section 101 of Title 11 of the United States Code, as amended
(“USC”) (except insofar as the type of Mortgage Loans subject to such Transaction or the term of
such Transaction would render such definition inapplicable), a “forward contract” as that term is
defined in Section 101 of Title 11 of the USC and a “securities contract” as that term is defined
in Section 741 of Title 11 of the USC (except insofar as the type of Mortgage Loans subject to such
Transaction or the term of the Transaction would render such definition inapplicable).

34. Entire Agreement. This Agreement supersedes and integrates all previous
negotiations, contracts, agreements and understandings between the parties relating to a sale and
repurchase of Purchased Assets, and it, together with the other Transaction Documents, and the
other documents delivered pursuant hereto or thereto, contains the entire final agreement of the
parties. No prior negotiation, agreement, understanding or prior contract between or among the
parties related to the subject matter hereof, whether oral or written, shall have any validity.

35. Severability. If any provision of any Transaction Document is declared invalid by
any court of competent jurisdiction, such invalidity shall not affect any other provision of the
Transaction Documents, and each Transaction Document shall be enforced to the fullest extent
permitted by law.

36. Confidentiality. Buyers each individually (and not jointly or jointly and
severally) agree that material, non-public information regarding the Sellers and their respective
Subsidiaries, their operations, assets, and existing and contemplated business plans shall be
treated by Buyers in a confidential manner, and shall not be disclosed by Buyers to Persons who are
not parties to this Agreement, except: (a) to attorneys for and other advisors, accountants,
auditors, and consultants to any Buyer, (b) to Affiliates of any member of the Buyers, provided
that any such Affiliate shall have agreed to receive such information hereunder subject to the
terms of this Section 36, (c) as may be required by statute, decision, or judicial or
administrative order, rule, or regulation, (d) as may be agreed to in advance by such Person or as
requested or required by any Governmental Authority pursuant to any subpoena or other legal
process, (e) as to any such information that is or becomes generally available to the public (other
than as a result of prohibited disclosure by Buyers), (f) in connection with any assignment,
prospective assignment, sale, prospective sale, participation or prospective participations, or
pledge or prospective pledge of any Buyer’s interest under this Agreement, provided that any such
assignee, prospective assignee, purchaser, prospective purchaser, participant, prospective
participant, pledgee, or prospective pledgee shall have agreed in writing to receive such
information hereunder subject to the terms of this Section, and (g) in connection with any
litigation or other adversary proceeding involving parties hereto which such litigation or
adversary proceeding involves claims related to the rights or duties of such parties under this
Agreement. The provisions of this Section 36 shall survive for one year after the Termination
Date.

37. Reliance on Designated Persons. No party shall incur liability to any other in
acting upon any telephone, telecopy, telex or letter request or communication which such party
believes in good faith to have been given by a Buyer’s Designated Person or a Seller’s Designated
Person or in otherwise acting in good faith under this Agreement. Further, all documents required
to be executed in conjunction with Transactions under this Agreement may be signed by any Buyer’s
Designated Person or Seller’s Designated Person.

The parties hereto hereby acknowledge that Deutsche Bank AG, New York Branch acts as
administrative agent for the Noncommitted Buyers and may make determinations and otherwise act as
agent of the Noncommitted Buyers for purposes of this Agreement and the Transactions.

[Signature pages follow]

1

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

BUYERS:

DB STRUCTURED PRODUCTS, INC.

By: /s/ Glenn Minkoff

Name: Glenn Minkoff

Title: Director

By: /s/ Frank Byrne

Name: Frank Byrne

Title: Managing Director

ASPEN FUNDING CORP.

By: /s/ Evelyn Echevarria

Name: Evelyn Echevarria

Title: Vice President

NEWPORT FUNDING CORP.

By: /s/ Evelyn Echevarria

Name: Evelyn Echevarria

Title: Vice President

GEMINI SECURITIZATION CORP., LLC

By: Gemini Member Corp., as sole member

By: /s/ R. Douglas Donaldson

Name: R. Douglas Donaldson

Title: Treasurer

2

	 	 	 	SELLERS:

	 	 	 	NEW
CENTURY MORTGAGE CORPORATION

By: /s/ Patrick Flanagan

Name: Patrick Flanagan

Title: President

	 	 	 	NEW
CENTURY CREDIT CORPORATION

By: /s/ Patrick Flanagan

Name: Patrick Flanagan

Title: President

	 	 	 	HOME123 CORPORATION

By: /s/ Patrick Flanagan

Name: Patrick Flanagan

Title: Chief Executive Officer

	 	 	 	NC
CAPITAL CORPORATION

By: /s/ Patrick Flanagan

Name: Patrick Flanagan

Title: Chief Executive Officer

3

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